form8k_072810.htm

0000875357-10-000026.txt : 20100728 0000875357-10-000026.hdr.sgml : 20100728 20100728113932 ACCESSION NUMBER: 0000875357-10-000026 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20100630 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20100728 DATE AS OF CHANGE: 20100728 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BOK FINANCIAL CORP ET AL CENTRAL INDEX KEY: 0000875357 STANDARD INDUSTRIAL CLASSIFICATION: NATIONAL COMMERCIAL BANKS [6021] IRS NUMBER: 731373454 STATE OF INCORPORATION: OK FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-19341 FILM NUMBER: 10973486 BUSINESS ADDRESS: STREET 1: BANK OF OKLAHOMA TOWER STREET 2: PO BOX 2300 CITY: TULSA STATE: OK ZIP: 74192 BUSINESS PHONE: 9185953025 MAIL ADDRESS: STREET 1: BANK OF OKLAHOMA TOWER STREET 2: P O BOX 2300 CITY: TULSA STATE: OK ZIP: 74192 8-K 1 form8k_072810.htm FORM 8-K Q2/10 072810 form8k_072810.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):

July 28, 2010

BOK FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter)

Oklahoma & #160; 000-19341 73-1373454

-------- & #160; --------- ----------

(State or other jurisdiction (Commission ; (IRS Employer

of incorporation) 60;File Number) Identification No.)

Bank of Oklahoma Tower, Boston Avenue at Second Street, Tulsa, Oklahoma 74172

(Address of principal executive offices)

Registrant's telephone number, including area code:

(918) 588-6000

_____________________N/A___________________________

(Former name or former address, if changes since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

|_| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425).

|_| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12).

|_| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)).

|_| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)).

INFORMATION TO BE INCLUDED IN THE REPORT

ITEM 2.02. Results of Operations and Financial Condition.

On July 28, 2010, BOK Financial Corporation (“BOK Financial”) issued a press release announcing its financial results for the three and six months ended June 30, 2010 (“Press Release”). The full text of the Press Release is attached as Exhibit 99(a) to this report and is incorporated herein by reference. On July 28, 2010, in connection with issuance of the Press Release, BOK Financial released financial information related to the three and six months ended June 30, 2010 (“Financial Information”), which includes certain historical financial information relating to BOK Financial. The Financial Information is attached as Exhibit 99(b) to this report and is incorporated herein by reference.

ITEM 9.01. Financial Statements and Exhibits.

(c)

Exhibits

99(a)

Text of Press Release, dated July 28, 2010 titled “BOK Financial Reports Record Quarterly Earnings of $64 Million – Operating Revenue Growth and Credit Quality Improvement Drive Results”

99(b)

Financial Information for the Three and Six Months Ended June 30, 2010

Signature

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

&# 160; BOK FINANCIAL CORPORATION

&# 160; By: /s/ Steven E. Nell

Steven E. Nell

&# 160; Executive Vice President

&# 160; Chief Financial Officer

Date: July 28, 2010

EX-99.A 2 exhibit99a_072810.htm EXHIBIT 99 (A) TEXT OF PRESS RELEASE 072810 exhibit99a_072810.htm

&# 160; Exhibit 99 (a)

BOK Financial Reports Record Quarterly Earnings of $64 Million

Operating Revenue Growth and Credit Quality Improvement Drive Results

TULSA, Okla. (Wednesday July 28, 2010) – BOK Financial Corporation reported net income for the second quarter of 2010 of $63.5 million or $0.93 per diluted share, up from $60.1 million or $0.88 per diluted share in the first quarter of 2010 and $52.1 million or $0.77 per diluted share for the second quarter of 2009. Net income for the six months ended June 30, 2010 totaled $123.7 million or $1.81 per diluted share compared to $107.1 million or $1.58 per diluted share for the six months ended June 30, 2009.

Net income for the first quarter of 2010 included a $6.5 million or $0.10 per share day-one gain from the purchase of the rights to service $4.2 billion of residential mortgage loans on favorable terms. Net income for the second quarter of 2009 included a $7.7 million or $0.11 per share special assessment charge by the FDIC.

“Operating revenue was especially strong in the second quarter of 2010,” said President and CEO Stan Lybarger. “Revenue for all significant fee income business lines grew over the previous quarter. Additionally, continued improvement in credit quality indicators allowed us to lower our quarterly provision for credit losses for the third consecutive quarter.”

Highlights of second quarter of 2010 included:

·	Net interest revenue totaled $182.1 million compared to $182.6 million for the first quarter of 2010. Net interest margin was 3.63% for the second quarter of 2010 and 3.68% for the first quarter of 2010.

·	Fees and commissions revenue increased $12.9 million over the previous quarter to $128.2 million. Brokerage and trading revenue was up $3.7 million and mortgage banking revenue was up $3.5 million.

·	Operating expenses, excluding changes in the fair value of mortgage servicing rights, totaled $186.5 million, up $8.8 million over the prior quarter. Net losses and operating expenses of repossessed assets increased $5.8 million.

Combined reserves for credit losses totaled $315 million or 2.89% of outstanding loans at June 30, 2010 and $314 million or 2.86% of outstanding loans at March 31, 2010. Net loans charged off and provision for credit losses were $35.6 million and $36.0 million respectively, for the second quarter of 2010 compared to $34.5 million and $42.1 million, respectively, for the first quarter of 2010.

Nonperforming assets totaled $461 million or 4.19% of outstanding loans and repossessed assets at June 30, 2010 compared to $483 million or 4.36% of outstanding loans and repossessed assets at March 31, 2010. Newly-identified nonaccruing loans totaled $58 million for the second quarter of 2010 and $81 million for the first quarter of 2010.

Available for sale securities totaled $9.2 billion at June 30, 2010, up $322 million since March 31, 2010. Other-than-temporary impairment charges on certain privately-issued residential mortgage backed securities reduced pre-tax income by $2.6 million during the second quarter of 2010 and $4.2 million during the first quarter of 2010.

·	Outstanding loan balances were $10.9 billion at June 30, 2010, down $89 million since March 31, 2010. Commercial real estate loans decreased $103 million. The outstanding balance of commercial loans and unfunded commercial loans were largely unchanged for the quarter.

·	Total period end deposits increased $560 million during the second quarter of 2010 to $16.1 billion due primarily to growth in interest-bearing transaction and demand deposits.

Tangible common equity ratio increased to 8.88% at June 30, 2010 from 8.46% at March 31, 2010, due to an increase in the fair value of the securities portfolio and retained earnings growth. The tangible common equity ratio is a non-GAAP measure of capital strength used by the Company and investors based on shareholders’ equity minus intangible assets and equity that does not benefit common shareholders, such as equity provided by the U.S. Treasury’s Asset Relief Program (“TARP”). We chose not to participate in the TARP Capital Purchase Program. The Company and each of its subsidiary banks exceeded the regulatory definition of well capitalized. The Company’s Tier 1 capital ratios as defined by banking regulations were 11.90% at June 30, 2010 and 11.45% at March 31, 2010.

·	The Company paid a cash dividend of $16.8 million or $0.25 per common share during the second quarter of 2010. On July 27, 2010, the board of directors approved a quarterly cash dividend of $0.25 per common share payable on or about August 27, 2010 to shareholders of record as of August 13, 2010.

Net Interest Revenue

Net interest revenue totaled $182.1 million, down $461 thousand from the first quarter of 2010. Net interest margin decreased over the previous quarter and average earning assets were lower.

Net interest margin was 3.63% for the second quarter of 2010 and 3.68% for the first quarter of 2010. The yield on average earning assets decreased 8 basis points primarily due to an 18 basis point decrease in securities portfolio yield. Cash flows from the securities portfolio are being reinvested at lower current interest rates. The loan portfolio yield increased 2 basis points and the cost of interest-bearing liabilities decreased 2 basis points.

Average earning assets decreased $40 million compared to the previous quarter. Securities increased $155 million, primarily from a $79 million increase in investment securities and a $69 million increase in mortgage trading securities. Residential mortgage loans held for sale increased $46 million. Outstanding loans decreased $216 million. Commercial, commercial real estate and consumer loans decreased, partially offset by an increase in residential mortgage loans.

Average deposits increased $441 million compared to the previous quarter, primarily due to a $324 million increase in interest-bearing transactions accounts and a $175 million increase in demand deposits, partially offset by a $71 million decrease in higher-costing average time deposits.

Fees and Commissions Revenue

Fees and commissions revenue increased to $128.2 million for the second quarter of 2010 compared to $115.3 million for the first quarter of 2010. Brokerage and trading revenue increased $3.7 million, mortgage banking revenue increased $3.5 million and transaction card revenue increased $2.6 million. Deposit service charges and trust fees and commissions also were up over the prior quarter.

Brokerage and trading revenue increased on higher securities trading revenue and investment banking activity. Interest rate volatility during the second quarter increased trading volumes in mortgage-backed securities. Growth in mortgage loan sales volume increased mortgage banking revenue $2.3 million compared to the previous quarter. Mortgage loans funded were $541 million for the second quarter of 2010 and $382 million in the first quarter of 2010. Mortgage servicing revenue increased $1.2 million primarily as a result of mortgage servicing rights purchased during the first quarter of 2010.

Transaction card revenues increased primarily due to a higher volume of merchant discount fees and ATM network revenue. Deposit service charges were up $2.0 million over the previous quarter due largely to a new service charge imposed on accounts that remain overdrawn for more than five days. Trust fees increased $1.4 million primarily to the timing of tax service fees.

Changes in Federal banking regulations that became effective on July 1, 2010 are expected to reduce overdraft fee revenue by $10 million to $15 million over the second half of 2010. We continue to explore options to mitigate the potential revenue decrease. In addition, the recently enacted Dodd-Frank Wall Street Reform and Consumer Protection Act gave the Federal Reserve authority to limit the amount of interchange fee that may be charged in an electronic debit transaction. The effect of this legislation on fee income and operating expenses cannot be accurately quantified at this time.

Operating Expenses

Total operating expenses were $205.9 million for the second quarter of 2010, up $42.2 million over the prior quarter. Excluding changes in the fair value of mortgage servicing rights, operating expenses totaled $186.5 million, up $8.8 million over the first quarter of 2010.

Personnel costs were flat with the prior quarter. Increases in cash-based incentive compensation of $3.5 million and salaries and wages of $1.2 million over the prior quarter were largely offset by a $4.1 million decrease in deferred compensation expense which is directly linked to the market value of Company stock and performance of other investments.

Repossessed asset expenses were $13.1 million, up $5.8 million over the previous quarter. Net losses from sales and write-downs of repossessed property increased $5.6 million during the second quarter of 2010. Operating expenses of repossessed assets were up $202 thousand. Data processing costs also increased $1.7 million over the prior quarter, driven primarily by increased transaction card volumes.

Credit Quality

Nonperforming assets decreased $22 million during the second quarter of 2010 to $461 million or 4.19% of outstanding loans and repossessed assets at June 30, 2010. Nonperforming assets at June 30, 2010 consisted of nonaccruing loans of $320 million, renegotiated residential mortgage loans of $21 million (including $18 million of residential mortgage loans guaranteed by U.S. government agencies) and $120 million of real estate and other repossessed assets. Nonaccruing loans decreased $24 million and repossessed assets decreased $2.0 million during the quarter.

Newly identified nonaccruing loans dropped to $58 million in the second quarter of 2010 from $81 million in the previous quarter. The trend of net loans charged-off remains stable. Consistent and sustained improvement will depend upon the broader U.S. economic recovery.

Nonaccruing loans totaled $320 million or 2.94% of outstanding loans at June 30, 2010 compared to $344 million or 3.13% of outstanding loans at March 31, 2010. During the second quarter of 2010, $58 million of new nonaccruing loans were identified offset by $18 million in payments received, $38 million in charge-offs and $19 million in foreclosures and repossessions. In addition, $5 million of nonaccruing loans were returned to accrual status during the second quarter of 2010 based on our expectation of full payment.

Nonaccruing commercial loans totaled $83 million or 1.38% of total commercial loans at June 30, 2010. Nonaccruing commercial loans were primarily composed of $31 million or 1.86% of total services sector loans, $26 million or 1.42% of total energy sector loans, $9 million or 1.06% of total healthcare sector loans and $8 million or 3.61% of other commercial and industrial loans. Nonaccruing commercial loans decreased $1.7 million since March 31, 2010 primarily related to a decrease in services, healthcare, manufacturing and wholesale / retail sector loans, partially offset by an increase in energy loans. Newly identified nonaccruing commercial loans totaled $20 million, offset primarily by $8 million in payments, $6 million in charge-offs and $5 million of nonaccruing commercial loans returning to accrual s tatus during the second quarter of 2010.

Nonaccruing commercial real estate loans totaled $194 million or 8.27% of outstanding commercial real estate loans at June 30, 2010. Nonaccruing commercial real estate loans attributed to our various markets included $57 million or 25% of total commercial real estate loans in Colorado, $56 million or 34% of total commercial real estate loans in Arizona, $31 million or 4.26% of total commercial real estate loans in Texas and $24 million or 3.03% of total commercial real estate loans in Oklahoma. Nonaccruing commercial real estate loans continue to be largely concentrated in land development and residential construction loans with $133 million or 24% of all land development and construction loans nonaccruing at June 30, 2010. Total nonaccruing commercial real estate loans decreased $26 million since March 31 , 2010. Newly identified nonaccruing commercial real estate loans totaled $19 million, offset by $19 million of charge-offs, $16 million of foreclosures and $10 million of cash payments received.

Nonaccruing residential mortgage loans totaled $40 million or 2.18% of outstanding residential mortgage loans at June 30, 2010, a $3.8 million increase from March 31, 2010. Residential mortgage loans past due 90 days or more and still accruing interest totaled $3.4 million. Residential mortgage loans past due 30 to 89 days totaled $24 million, down $34 thousand from March 31, 2010.

The combined allowance for credit losses totaled $315 million or 2.89% of outstanding loans and 98% of nonaccruing loans at June 30, 2010. The allowance for loan losses was $300 million and the reserve for off-balance sheet credit losses was $15 million. Approximately $90 million of impaired loans, which consist primarily of nonaccruing commercial and commercial real estate loans, have been charged-down to the amount management expects to recover and accordingly have no reserve for loan loss attributed to them. The remaining $203 million of impaired loans have $20 million of the reserve for loan losses attributed to them. During the second quarter of 2010, the Company recognized a $36.0 million provision for credit losses. Net losses charged against the allowance for loan losses totaled $35.6 million or 1.30% annualized of average outstanding loans. Net loans charged off and provision for credit losses were $34.5 million and $42.1 million, respectively, for the first quarter of 2010.

Real estate and other repossessed assets totaled $120 million at June 30, 2010 consisting of $58 million of 1-4 family residential properties and residential land development properties, $37 million of developed commercial real estate properties, $13 million of equity interest received in partial satisfaction of debts, $8 million of undeveloped land, $3 million of equipment and $1 million of automobiles. The distribution of real estate owned and other repossessed assets among various markets included $44 million in Arizona, $25 million in Texas, $25 million in Oklahoma, $8 million in Arkansas, $7 million in Colorado, $7 million in New Mexico, and $4 million in Kansas/Missouri. Real estate and other repossessed assets decreased by $2.0 million during the second quarter due to additions of $19 million offset by $9 mill ion in sales and $12 million in write-downs.

The Company also has off-balance sheet obligations related to certain community development residential mortgage loans sold to U.S. government agencies with recourse. These mortgage loans were underwritten to standards approved by the agencies, including full documentation and originated under programs available only for owner-occupied properties. The outstanding principal balance of these loans totaled $311 million at June 30, 2010, down from $324 million at March 31, 2010. The loans are primarily to borrowers in our primary market areas, including $219 million in Oklahoma, $33 million in Arkansas, $18 million in New Mexico, $16 million in Kansas/Missouri and $14 million in Texas. At June 30, 2010, approximately 5% of these loans are nonperforming and 5% were past due 30 to 89 days. A separate reserve for credit risk of $14 million is available for losses on these loans.

Securities and Derivatives

The fair value of available for sale securities totaled $9.2 billion at June 30, 2010, up $322 million since March 31, 2010. The available for sale portfolio consisted primarily of residential mortgage-backed securities, including $8.2 billion fully backed by U.S. government agencies and $736 million privately issued by publicly owned financial institutions. The portfolio does not hold any securities backed by sub-prime mortgage loans, collateralized debt obligations or collateralized loan obligations.

The portfolio of available for sale securities had net unrealized gains of $215 million at June 30, 2010 compared to $108 million at March 31, 2010. Net unrealized gains on residential mortgage-backed securities issued by U.S. government agencies increased $85 million to $315 million at June 30, 2010. Net unrealized losses on privately-issued residential mortgage-backed securities decreased $30 million to $114 million at June 30, 2010.

The amortized cost of privately issued residential mortgage-backed securities totaled $849 million at June 30, 2010, down $60 million since March 31, 2010 due primarily to cash received. Approximately $594 million of the privately issued residential mortgage-backed securities were rated below investment grade by at least one nationally-recognized rating agency. The aggregate unrealized losses on privately-issued residential mortgage-backed securities rated below investment grade totaled $106 million at June 30, 2010. Aggregate unrealized losses on these same below investment grade securities were $124 million at March 31, 2010. The amortized cost of privately issued residential mortgage-backed securities rated below investment grade decreased $30 million during the second quarter due primarily t o cash received and a $2.6 million other-than-temporary impairment charge against earnings in the second quarter related to these securities due to further declines in projected cash flows as a result of worsening trends in delinquencies and foreclosures.

The Company added $43 million to its investment (held-to-maturity) securities portfolio during the second quarter of 2010 comprised primarily of qualifying school construction bonds. These bonds were issued with the Company’s assistance by several school districts in our Texas markets under a program authorized by the U.S. Treasury Department. Interest on these bonds is primarily payable through federal income tax credits.

The Company recognized $8.5 million of gains on the sale of $595 million of available for sale securities in the second quarter of 2010 and $4.1 million of gains on the sale of $286 million of available for sale securities in the first quarter of 2010. Securities were sold either to mitigate extension exposure from rising interest rates or because they had reached their expected maximum potential total return.

Certain residential mortgage-backed securities and derivative contracts are held by the Company as an economic hedge against the changes in the fair value of the mortgage servicing rights that fluctuates due to changes in prepayment speeds and other assumptions.

	Three Months Ended
	June 30, 2010			March 31, 2010			June 30, 2009

Gain (loss) on mortgage hedge derivative contracts	$	7,800		$	(659	)	$	–
Gain (loss) on mortgage hedge securities		14,631			448			(10,199	)
Total gain (loss) on financial instruments held as an economic hedge of mortgage servicing rights		22,431			(211	)		(10,199	)

Gain (loss) on change in fair value of mortgage
servicing rights		(19,458	)		2,100	(1)		7,865
Gain (loss) on changes in fair value of mortgage servicing rights, net of economic hedges	$	2,973		$	1,889		$	(2,334	)

(1) Excluding $11.8 million day-one gain on the purchase of mortgage servicing rights.

The Company has a portfolio of derivative contracts held for customer risk management programs and internal interest rate risk management programs. At June 30, 2010, the fair value of all asset contracts totaled $335 million, net of cash margin held by the Company. The largest net amount due from a single counterparty, a subsidiary of an international energy company, to these contracts at June 30 was $54 million. Letters of credit issued by independent financial institutions offset $46 million of this amount.

Loans, Deposits and Capital

Outstanding loans at June 30, 2010 were $10.9 billion, down $89 million from March 31, 2010. Commercial real estate loans were down $103 million across all geographic regions. Outstanding commercial loan balances were largely unchanged. Residential mortgage loans increased $37 million over March 31, 2010.

Commercial real estate loans totaled $2.3 billion at June 30, 2010. The decrease in outstanding commercial real estate loans was primarily due to a $60 million decrease in residential construction and land development loans, a $31 million decrease in loans secured by multifamily properties and a $16 million decrease in loans secured by retail facilities. The decrease in commercial real estate loans was largely concentrated in the Texas and Arizona markets. Unfunded commercial real estate loan commitments decreased $3.7 million to $152 million as existing commitments continue to mature.

Outstanding commercial loans totaled $6.0 billion at June 30, 2010, down $3.2 million at March 31, 2010. During the second quarter of 2010, wholesale/retail sector loans grew $91 million, other commercial and industrial loans were up $44 million and healthcare sector loans increased $28 million. These increases were primarily offset by a $73 million decrease in services sector loans, a $47 million decrease in energy sector loans and a $38 million decrease in manufacturing sector loans. Commercial loans in the Oklahoma market increased $88 million during the quarter offset by a $40 million decrease in commercial loans in the New Mexico market and a $33 million decrease in commercial loans in the Texas market. Total unfunded commercial loan commitments decreased $20 million to $4.3 billion. Unfund ed energy loan commitments increased $1.2 million to $1.9 billion. All other unfunded commercial loan commitments decreased $21 million.

Residential mortgage loans increased $37 million from the prior quarter including a $17 million increase in permanent mortgage loans and a $20 million increase in home equity loans. Consumer loans decreased $19 million compared to the prior quarter primarily due to a $58 million decrease in indirect automobile loans related to the previously announced decision to curtail that business during the first quarter of 2009 in favor of a customer-focused direct approach to consumer lending, partially offset by a $39 million increase in other consumer loans.

Total deposits increased $560 million during the second quarter and totaled $16.1 billion at June 30, 2010. Interest-bearing transaction account balances increased $394 million and demand deposit balances increased $135 million and time deposit balances increased $19 million. Among the lines of business, commercial deposits increased $299 million, wealth management deposits increased $71 million and consumer deposits increased $6.8 million.

The Company and each of its subsidiary banks exceeded the regulatory definition of well capitalized at June 30, 2010. The Company’s Tier 1 and total capital ratios were 11.90% and 15.38%, respectively, at June 30, 2010. The Company’s Tier 1 and total capital ratios were 11.45% and 15.09%, respectively, at March 31, 2010. In addition the Company’s tangible common equity ratio, a non-GAAP measure, was 8.88% at June 30, 2010 and 8.46% at March 31, 2010.

About BOK Financial Corporation

BOK Financial is a regional financial services company that provides commercial and consumer banking, investment and trust services, mortgage origination and servicing, and an electronic funds transfer network. Holdings include Bank of Albuquerque, N.A., Bank of Arizona, N.A., Bank of Arkansas, N.A., Bank of Oklahoma, N.A., Bank of Texas, N.A., Colorado State Bank & Trust, N.A., Bank of Kansas City, N.A., BOSC, Inc., Cavanal Hill Investment Management, Inc., the TransFund electronic funds network, and Southwest Trust Company, N.A. Shares of BOK Financial are traded on the NASDAQ under the symbol BOKF. For more information, visit www.bokf.com.

The Company will continue to evaluate critical assumptions and estimates, such as the adequacy of the allowance for credit losses and asset impairment as of June 30, 2010 through the date its financial statements are filed with the Securities and Exchange Commission and will adjust amounts reported if necessary.

This news release contains forward-looking statements that are based on management’s beliefs, assumptions, current expectations, estimates and projections about BOK Financial, the financial services industry and the economy generally. Words such as “anticipates,” “believes,” “estimates,” “expects,” “forecasts,” “plans,” “projects,” variations of such words and similar expressions are intended to identify such forward-looking statements. Management judgments relating to and discussion of the provision and allowance for credit losses involve judgments as to future events and are inherently forward-looking statements. Assessments that BOK Financial’s acquisitions and other growth endeavors will be profit able are necessary statements of belief as to the outcome of future events based in part on information provided by others which BOK Financial has not independently verified. These statements are not guarantees of future performance and involve certain risks, uncertainties, and assumptions which are difficult to predict with regard to timing, extent, likelihood and degree of occurrence. Therefore, actual results and outcomes may materially differ from what is expected, implied or forecasted in such forward-looking statements. Internal and external factors that might cause such a difference include, but are not limited to (1) the ability to fully realize expected cost savings from mergers within the expected time frames, (2) the ability of other companies on which BOK Financial relies to provide goods and services in a timely and accurate manner, (3) changes in interest rates and interest rate relationships, (4) demand for products and services, (5) the degree of competition b y traditional and nontraditional competitors, (6) changes in banking regulations, tax laws, prices, levies and assessments, (7) the impact of technological advances and (8) trends in consumer behavior as well as their ability to repay loans. BOK Financial and its affiliates undertake no obligation to update, amend or clarify forward-looking statements, whether as a result of new information, future events, or otherwise.

EX-99.B 3 exhibit99b_072810.htm EXHIBIT 99 (B) Q2/10 FINANCIALS 072810 exhibit99b_072810.htm

Exhibit 99 (b)

BALANCE SHEETS
BOK FINANCIAL CORPORATION
(In thousands)
		Period Ended
	June 30,	March 31,	June 30,
	2010	2010	2009
	(Unaudited)	(Unaudited)	(Unaudited)
ASSETS
Cash and due from banks	$ 834,972	$ 902,575	$ 470,553
Trading securities	62,159	115,641	84,548
Funds sold and resell agreements	17,554	29,410	112,128
Securities:
Available for sale	9,226,720	8,904,395	7,224,673
Investment	353,277	309,910	269,844
Mortgage trading securities	534,641	427,196	222,864
Total securities	10,114,638	9,641,501	7,717,381
Residential mortgage loans held for sale	227,574	178,362	326,363
Loans:
Commercial	6,011,528	6,014,739	6,715,851
Commercial real estate	2,340,909	2,443,848	2,611,693
Residential mortgage	1,834,246	1,797,711	1,833,975
Consumer	696,034	714,926	908,409
Total loans	10,882,717	10,971,224	12,069,928
Less reserve for loan losses	(299,489)	(299,717)	(263,309)
Loans, net of reserve	10,583,228	10,671,507	11,806,619
Premises and equipment, net	277,225	279,152	286,295
Accrued revenue receivable	126,149	107,300	118,718
Goodwill	335,601	335,601	335,829
Intangible assets, net	15,991	17,315	22,009
Mortgage servicing rights, net	98,942	119,066	67,413
Real estate and other repossessed assets	119,908	121,933	75,243
Bankers' acceptances	2,885	2,945	8,260
Derivative contracts	334,576	325,364	462,971
Cash surrender value of bank-owned life insurance	251,857	248,927	241,792
Receivable on unsettled securities trades	-	-	237,200
Other assets	333,469	405,377	394,997
TOTAL ASSETS	$ 23,736,728	$ 23,501,976	$ 22,768,319



LIABILITIES AND EQUITY
Deposits:
Demand	$ 3,735,289	$ 3,599,981	$ 2,825,179
Interest-bearing transaction	8,488,159	8,093,725	7,091,471
Savings	190,964	179,554	166,806
Time	3,673,088	3,654,256	4,571,933
Total deposits	16,087,500	15,527,516	14,655,389
Funds purchased and
repurchase agreements	2,262,475	2,638,263	2,798,274
Other borrowings	1,708,295	1,909,934	2,152,177
Subordinated debentures	398,617	398,578	398,465
Accrued interest, taxes, and expense	91,471	117,179	119,003
Bankers' acceptances	2,885	2,945	8,260
Due on unsettled securities trades	266,470	103,186	-
Derivative contracts	299,851	311,685	445,463
Other liabilities	169,137	159,973	125,126
TOTAL LIABILITIES	21,286,701	21,169,259	20,702,157
Shareholders' equity:
Capital, surplus and retained earnings	2,314,967	2,264,786	2,149,020
Accumulated other comprehensive income (loss)	113,771	47,657	(98,448)
TOTAL SHAREHOLDERS' EQUITY	2,428,738	2,312,443	2,050,572
Non-controlling interest	21,289	20,274	15,590
TOTAL EQUITY	2,450,027	2,332,717	2,066,162
TOTAL LIABILITIES AND EQUITY	$ 23,736,728	$ 23,501,976	$ 22,768,319



AVERAGE BALANCE SHEETS - UNAUDITED
BOK FINANCIAL CORPORATION
(In thousands)
			Quarter Ended
	June 30,	March 31,	December 31,	September 30,		June 30,
	2010	2010	2009	2009		2009

ASSETS
Trading securities	$ 58,722	$ 70,979	$ 68,027	$ 64,763	$	112,960
Funds sold and resell agreements	22,776	32,363	30,358	67,032		29,277
Securities:
Available for sale	8,892,175	8,884,678	8,583,032	7,782,254		7,242,931
Investment	335,117	256,003	238,479	235,967		271,068
Mortgage trading securities	435,693	366,845	340,456	267,591		365,434
Total securities	9,662,985	9,507,526	9,161,967	8,285,812		7,879,433
Residential mortgage loans held for sale	183,489	137,404	194,760	176,403		286,077
Loans:
Commercial	6,060,642	6,132,889	6,325,580	6,521,438		6,901,057
Commercial real estate	2,359,958	2,492,535	2,538,737	2,621,176		2,684,020
Residential mortgage	1,848,692	1,833,602	1,827,339	1,873,457		1,884,023
Consumer	702,174	728,294	801,040	871,347		933,950
Total loans	10,971,466	11,187,320	11,492,696	11,887,418		12,403,050
Less allowance for loan losses	(312,595)	(309,194)	(298,157)	(281,289)		(273,335)
Total loans, net	10,658,871	10,878,126	11,194,539	11,606,129		12,129,715
Total earning assets	20,586,843	20,626,398	20,649,651	20,200,139		20,437,462
Cash and due from banks	903,555	1,089,971	1,095,087	828,965		638,791
Cash surrender value of bank-owned life insurance	249,914	247,415	245,460	242,715		240,199
Derivative contracts	288,853	300,865	352,143	401,887		493,448
Other assets	1,415,642	1,448,098	1,353,393	1,376,828		1,264,131
TOTAL ASSETS	$ 23,444,807	$ 23,712,747	$ 23,695,734	$ 23,050,534	$	23,074,031

LIABILITIES AND EQUITY
Deposits:
Demand	$ 3,660,910	$ 3,485,504	$ 3,666,663	$ 3,392,578	$	3,183,338
Interest-bearing transaction	8,287,296	7,963,752	7,734,678	7,162,477		6,854,003
Savings	184,376	170,990	167,572	167,677		167,813
Time	3,701,167	3,772,295	4,002,337	4,404,854		5,123,947
Total deposits	15,833,749	15,392,541	15,571,250	15,127,586		15,329,101
Funds purchased and
repurchase agreements	2,491,084	2,575,286	2,173,476	2,284,985		2,316,990
Other borrowings	1,619,745	2,249,470	2,380,938	2,173,103		1,951,699
Subordinated debentures	398,598	398,559	398,522	398,484		398,456
Derivative contracts	243,089	276,696	318,809	392,277		536,232
Other liabilities	479,813	521,567	605,994	539,129		534,889
TOTAL LIABILITIES	21,066,078	21,414,119	21,448,989	20,915,564		21,067,367
Total equity	2,378,729	2,298,628	2,246,745	2,134,970		2,006,664
TOTAL LIABILITIES AND EQUITY	$ 23,444,807	$ 23,712,747	$ 23,695,734	$ 23,050,534	$	23,074,031


STATEMENTS OF EARNINGS - UNAUDITED
BOK FINANCIAL CORPORATION
(In thousands, except per share data)
	Quarter Ended		Six Months Ended
	June 30,		June 30,
	2010	2009	2010	2009


Interest revenue	$ 217,597	$ 230,685	$ 436,967	$ 463,912
Interest expense	35,484	55,105	72,280	118,487
Net interest revenue	182,113	175,580	364,687	345,425
Provision for credit losses	36,040	47,120	78,140	92,160
Net interest revenue after
provision for credit losses	146,073	128,460	286,547	253,265

Other operating revenue
Brokerage and trading revenue	24,754	21,794	45,789	46,493
Transaction card revenue	28,263	27,533	53,950	52,961
Trust fees and commissions	17,737	16,860	34,057	33,370
Deposit service charges and fees	28,797	28,421	55,589	55,826
Mortgage banking revenue	18,335	19,882	33,206	38,380
Bank-owned life insurance	2,908	2,418	5,880	4,735
Margin asset fees	69	68	105	135
Other revenue	7,305	6,124	14,907	12,707
Total fees and commissions	128,168	123,100	243,483	244,607
Gain (loss) on other assets	1,545	973	155	1,116
Gain (loss) on derivatives, net	7,272	(1,037)	6,931	(2,701)
Gain (loss) on securities, net	23,100	6,471	27,624	26,579
Total other-than-temporary impairment losses	(10,959)	(1,263)	(20,667)	(55,631)
Portion of loss recognized in other comprehensive income	(8,313)	279	(13,796)	(39,087)
Net impairment losses recognized in earnings	(2,646)	(1,542)	(6,871)	(16,544)
Total other operating revenue	157,439	127,965	271,322	253,057

Other operating expense
Personnel	97,054	96,191	193,878	188,818
Business promotion	4,945	4,569	8,923	8,997
Professional fees and services	6,668	7,363	13,069	13,875
Net occupancy and equipment	15,691	15,973	31,202	32,231
Insurance	5,596	5,898	12,129	11,536
FDIC special assessment	-	11,773	-	11,773
Data processing and communications	21,940	20,452	42,249	39,758
Printing, postage and supplies	3,525	4,072	6,847	8,643
Net (gains) losses and operating expenses
of repossessed assets	13,067	996	20,287	2,802
Amortization of intangible assets	1,323	1,686	2,647	3,372
Mortgage banking costs	10,380	9,336	19,647	16,803
Change in fair value of mortgage servicing rights	19,458	(7,865)	5,526	(9,820)
Other expense	6,265	5,326	13,240	12,776
Total other operating expense	205,912	175,770	369,644	341,564

Net income before taxes	97,600	80,655	188,225	164,758
Federal and state income taxes	32,042	28,315	62,325	57,153

Net income	65,558	52,340	125,900	107,605
Net income attributable to non-controlling interest	2,036	225	2,245	458

Net income attributable to BOK Financial Corporation	$ 63,522	$ 52,115	$ 123,655	$ 107,147

Average shares outstanding:
Basic	67,605,807	67,344,577	67,599,349	67,330,590
Diluted	67,880,587	67,448,029	67,835,606	67,417,874

Net income per share:
Basic	$ 0.93	$ 0.77	$ 1.82	$ 1.59
Diluted	$ 0.93	$ 0.77	$ 1.81	$ 1.58





FINANCIAL HIGHLIGHTS - UNAUDITED
BOK FINANCIAL CORPORATION
(In thousands, except ratio and share data)
			Quarter Ended
	June 30,	March 31,	December 31,	September 30,		June 30,
	2010	2010	2009	2009		2009

Capital:
Period-end shareholders' equity	$ 2,428,738	$ 2,312,443	$ 2,205,813	$ 2,185,013	$	2,050,572
Risk weighted assets	$ 16,611,662	$ 16,787,566	$ 17,275,808	$ 17,515,147	$	18,338,540
Risk-based capital ratios:
Tier 1	11.90%	11.45%	10.86%	10.56%		9.86%
Total capital	15.38%	15.09%	14.43%	14.10%		13.34%
Leverage ratio	8.57%	8.25%	8.05%	8.16%		7.97%
Tangible common equity ratio (A)	8.88%	8.46%	7.99%	7.78%		7.55%
Tier 1 common equity ratio (B)	11.77%	11.33%	10.75%	10.45%		9.77%

Common stock:
Book value per share	$ 35.67	$ 33.99	$ 32.53	$ 32.27	$	30.30

Market value per share:
High	$ 55.60	$ 53.11	$ 47.91	$ 48.10	$	43.02
Low	$ 47.45	$ 45.43	$ 41.87	$ 34.81	$	34.46

Cash dividends paid	$ 16,834	$ 16,304	$ 16,201	$ 16,280	$	16,184
Dividend payout ratio	26.50%	27.11%	37.88%	32.14%		31.05%
Shares outstanding, net	68,080,797	68,042,918	67,802,807	67,707,547		67,674,442
Stock buy-back program:
Shares repurchased	-	-	-	-		-
Amount	$ -	$ -	$ -	$ -	$	-
Average price per share	$ -	$ -	$ -	$ -	$	-

Performance ratios (quarter annualized):
Return on average assets	1.09%	1.03%	0.72%	0.87%		0.91%
Return on average equity	10.71%	10.61%	7.55%	9.41%		10.42%
Net interest margin	3.63%	3.68%	3.64%	3.63%		3.55%
Efficiency ratio	59.56%	59.11%	60.02%	58.09%		61.02%

Other data:
Gain (loss) on economic hedge of mortgage servicing rights	$ 22,431	$ (211)	$ (4,440)	$ 3,560	$	(10,199)
Trust assets	$ 29,825,608	$ 30,739,254	$ 30,385,365	$ 29,945,585	$	29,288,041
Mortgage servicing portfolio	$ 11,057,385	$ 10,895,182	$ 6,603,132	$ 6,339,764	$	6,082,501
Mortgage loan fundings during the quarter	$ 540,741	$ 382,028	$ 560,254	$ 536,173	$	1,023,272
Mortgage loan refinances to total fundings	34.00%	55.00%	47.00%	49.00%		71.00%
Tax equivalent adjustment	$ 2,327	$ 2,416	$ 2,196	$ 1,982	$	1,791
Unrealized gain (loss) on available for sale securities	$ 215,438	$ 107,754	$ 13,226	$ 30,898	$	(128,492)

(A) Tangible common equity ratio is a non-GAAP measure.
Reconciliation to a GAAP financial measure follows:
Total shareholders' equity	$ 2,428,738	$ 2,312,443	$ 2,205,813	$ 2,185,013	$	2,050,572
Less: intangible assets, net	(351,592)	(352,916)	(354,239)	(356,152)		(357,838)
Tangible common equity	$ 2,077,146	$ 1,959,527	$ 1,851,574	$ 1,828,861	$	1,692,734

Total assets	$ 23,736,728	$ 23,501,976	$ 23,516,831	$ 23,876,841	$	22,768,319
Less: intangible assets, net	(351,592)	(352,916)	(354,239)	(356,152)		(357,838)
	$ 23,385,136	$ 23,149,060	$ 23,162,592	$ 23,520,689	$	22,410,481

Tangible common equity ratio	8.88%	8.46%	7.99%	7.78%		7.55%

(B) Tier 1 common equity ratio is a non-GAAP measure.
Reconciliation to a GAAP financial measure follows:
Tier 1 capital	$ 1,976,588	$ 1,922,783	$ 1,876,778	$ 1,849,254	$	1,807,705
Less: non-controlling interest	(21,289)	(20,274)	(19,561)	(18,981)		(15,590)
Tier 1 common equity	$ 1,955,299	$ 1,902,509	$ 1,857,217	$ 1,830,273	$	1,792,115

Risk weighted assets	$ 16,611,662	$ 16,787,566	$ 17,275,808	$ 17,515,147	$	18,338,540

Tier 1 common equity ratio	11.77%	11.33%	10.75%	10.45%		9.77%

QUARTERLY EARNINGS TRENDS - UNAUDITED
BOK FINANCIAL CORPORATION
(In thousands, except ratio and per share data)
			Quarter Ended
	June 30,	March 31,	December 31,	September 30,		June 30,
	2010	2010	2009	2009		2009

Interest revenue	$ 217,597	$ 219,370	$ 224,411	$ 226,246	$	230,685
Interest expense	35,484	36,796	39,933	45,785		55,105
Net interest revenue	182,113	182,574	184,478	180,461		175,580
Provision for credit losses	36,040	42,100	48,620	55,120		47,120
Net interest revenue after
provision for credit losses	146,073	140,474	135,858	125,341		128,460

Other operating revenue
Brokerage and trading revenue	24,754	21,035	20,240	24,944		21,794
Transaction card revenue	28,263	25,687	26,292	26,264		27,533
Trust fees and commissions	17,737	16,320	16,492	16,315		16,860
Deposit service charges and fees	28,797	26,792	29,501	30,464		28,421
Mortgage banking revenue	18,335	14,871	13,403	13,197		19,882
Bank-owned life insurance	2,908	2,972	2,870	2,634		2,418
Margin asset fees	69	36	50	51		68
Other revenue	7,305	7,602	7,101	6,087		6,124
Total fees and commissions	128,168	115,315	115,949	119,956		123,100
Gain (loss) on other assets	1,545	(1,390)	(205)	3,223		973
Gain (loss) on derivatives, net	7,272	(341)	(370)	(294)		(1,037)
Gain (loss) on securities, net	23,100	4,524	7,277	12,266		6,471
Total other-than-temporary impairment losses	(10,959)	(9,708)	(67,390)	(6,133)		(1,263)
Portion of loss recognized in other comprehensive income	(8,313)	(5,483)	(52,902)	(2,752)		279
Net impairment losses recognized in earnings	(2,646)	(4,225)	(14,488)	(3,381)		(1,542)
Total other operating revenue	157,439	113,883	108,163	131,770		127,965

Other operating expense
Personnel	97,054	96,824	93,687	98,012		96,191
Business promotion	4,945	3,978	5,758	4,827		4,569
Professional fees and services	6,668	6,401	8,813	7,555		7,363
Net occupancy and equipment	15,691	15,511	17,600	15,884		15,973
Insurance	5,596	6,533	6,412	6,092		5,898
FDIC special assessment	-	-	-	-		11,773
Data processing and communications	21,940	20,309	21,121	20,413		20,452
Printing, postage and supplies	3,525	3,322	3,601	3,716		4,072
Net (gains) losses and operating expenses
of repossessed assets	13,067	7,220	5,101	3,497		996
Amortization of intangible assets	1,323	1,324	1,912	1,686		1,686
Mortgage banking costs	10,380	9,267	11,436	8,065		9,336
Change in fair value of mortgage servicing rights	19,458	(13,932)	(5,285)	2,981		(7,865)
Other expense	6,265	6,975	6,281	6,004		5,326
Total other operating expense	205,912	163,732	176,437	178,732		175,770

Net income before taxes	97,600	90,625	67,584	78,379		80,655
Federal and state income taxes	32,042	30,283	24,780	24,772		28,315

Net income	65,558	60,342	42,804	53,607		52,340
Net income attributable to non-controlling interest	2,036	209	33	2,947		225

Net income attributable to BOK Financial Corporation	$ 63,522	$ 60,133	$ 42,771	$ 50,660	$	52,115

Average shares outstanding:
Basic	67,605,807	67,592,315	67,446,326	67,392,059		67,344,577
Diluted	67,880,587	67,790,049	67,600,344	67,513,700		67,448,029

Net income per share:
Basic	$ 0.93	$ 0.88	$ 0.63	$ 0.75	$	0.77
Diluted	$ 0.93	$ 0.88	$ 0.63	$ 0.75	$	0.77


LOANS BY PRINCIPAL MARKET AREA - UNAUDITED
BOK FINANCIAL CORPORATION
(In thousands)
			Quarter Ended
	June 30,	March 31,	December 31,	September 30,		June 30,
	2010	2010	2009	2009		2009

Oklahoma:
Commercial	$ 2,704,460	$ 2,616,086	$ 2,649,252	$ 2,738,217	$	2,918,478
Commercial real estate	784,549	787,543	820,578	815,362		855,742
Residential mortgage	1,257,497	1,235,788	1,228,822	1,245,917		1,249,104
Consumer	395,274	404,570	451,829	483,369		521,431
Total Oklahoma	5,141,780	5,043,987	5,150,481	5,282,865		5,544,755

Texas:
Commercial	1,902,934	1,935,819	2,017,081	2,075,379		2,182,756
Commercial real estate	731,399	769,682	735,338	734,742		741,199
Residential mortgage	308,496	307,643	313,113	335,797		345,780
Consumer	160,377	160,449	170,062	188,374		196,752
Total Texas	3,103,206	3,173,593	3,235,594	3,334,292		3,466,487

New Mexico:
Commercial	286,555	326,203	341,802	344,910		380,378
Commercial real estate	294,425	298,197	305,061	344,988		313,190
Residential mortgage	87,549	85,629	86,415	88,271		90,944
Consumer	20,542	16,713	17,473	18,176		18,826
Total New Mexico	689,071	726,742	750,751	796,345		803,338

Arkansas:
Commercial	89,376	86,566	103,443	99,559		97,676
Commercial real estate	114,576	129,125	132,436	128,984		133,026
Residential mortgage	15,823	17,071	16,849	19,128		19,015
Consumer	96,189	110,123	124,265	136,461		152,620
Total Arkansas	315,964	342,885	376,993	384,132		402,337

Colorado:
Commercial	484,188	495,916	545,724	569,549		595,858
Commercial real estate	225,758	228,998	239,970	249,879		269,923
Residential mortgage	69,325	68,049	66,504	68,667		58,557
Consumer	18,548	17,991	17,362	18,272		14,097
Total Colorado	797,819	810,954	869,560	906,367		938,435

Arizona:
Commercial	204,326	209,019	199,143	219,330		215,540
Commercial real estate	163,374	202,192	227,249	257,169		262,607
Residential mortgage	78,890	68,015	65,047	57,304		58,265
Consumer	2,971	3,068	3,461	4,826		3,229
Total Arizona	449,561	482,294	494,900	538,629		539,641

Kansas:
Commercial	339,689	345,130	351,395	323,112		325,165
Commercial real estate	26,828	28,111	30,802	29,211		36,006
Residential mortgage	16,666	15,516	16,872	14,740		12,310
Consumer	2,133	2,012	2,350	1,871		1,454
Total Kansas	385,316	390,769	401,419	368,934		374,935

TOTAL BOK FINANCIAL	$ 10,882,717	$ 10,971,224	$ 11,279,698	$ 11,611,564	$	12,069,928

DEPOSITS BY PRINCIPAL MARKET AREA - UNAUDITED
BOK FINANCIAL CORPORATION
(In thousands)
			Quarter Ended
	June 30,	March 31,	December 31,	September 30,		June 30,
	2010	2010	2009	2009		2009

Oklahoma:
Demand	$ 2,101,994	$ 2,062,084	$ 2,068,908	$ 1,895,980	$	1,451,057
Interest-bearing:
Transaction	5,562,287	5,237,983	5,134,902	4,566,058		4,374,089
Savings	102,590	101,708	93,006	93,443		94,048
Time	1,442,525	1,360,756	1,397,240	1,765,980		2,033,312
Total interest-bearing	7,107,402	6,700,447	6,625,148	6,425,481		6,501,449
Total Oklahoma	9,209,396	8,762,531	8,694,056	8,321,461		7,952,506

Texas:
Demand	1,150,495	1,068,656	1,108,401	1,138,794		1,002,266
Interest-bearing:
Transaction	1,674,519	1,675,759	1,748,319	1,716,460		1,660,642
Savings	36,814	37,175	35,129	35,724		33,992
Time	1,003,936	1,043,813	1,100,602	1,007,579		1,035,919
Total interest-bearing	2,715,269	2,756,747	2,884,050	2,759,763		2,730,553
Total Texas	3,865,764	3,825,403	3,992,451	3,898,557		3,732,819

New Mexico:
Demand	223,869	222,685	209,090	216,330		175,033
Interest-bearing:
Transaction	491,708	480,189	444,247	424,528		434,498
Savings	30,231	20,036	17,563	18,039		18,255
Time	476,155	495,243	510,202	511,507		542,388
Total interest-bearing	998,094	995,468	972,012	954,074		995,141
Total New Mexico	1,221,963	1,218,153	1,181,102	1,170,404		1,170,174

Arkansas:
Demand	14,919	17,599	21,526	19,077		17,261
Interest-bearing:
Transaction	108,104	61,398	50,879	85,061		73,972
Savings	1,288	1,266	1,346	1,131		1,031
Time	119,472	105,794	101,839	137,109		162,505
Total interest-bearing	228,864	168,458	154,064	223,301		237,508
Total Arkansas	243,783	186,057	175,590	242,378		254,769

Colorado:
Demand	143,783	136,048	146,929	121,555		113,895
Interest-bearing:
Transaction	441,085	456,508	448,846	477,418		445,521
Savings	18,869	18,118	17,802	18,518		18,144
Time	497,538	509,410	525,844	520,906		579,709
Total interest-bearing	957,492	984,036	992,492	1,016,842		1,043,374
Total Colorado	1,101,275	1,120,084	1,139,421	1,138,397		1,157,269

Arizona:
Demand	71,711	61,183	68,651	54,046		55,975
Interest-bearing:
Transaction	94,033	81,851	81,909	95,242		89,842
Savings	1,062	1,105	958	971		1,282
Time	63,643	64,592	60,768	56,809		59,775
Total interest-bearing	158,738	147,548	143,635	153,022		150,899
Total Arizona	230,449	208,731	212,286	207,068		206,874

Kansas / Missouri:
Demand	28,518	31,726	30,339	16,406		9,692
Interest-bearing:
Transaction	116,423	100,037	21,337	15,682		12,907
Savings	110	146	148	70		54
Time	69,819	74,648	71,498	84,923		158,325
Total interest-bearing	186,352	174,831	92,983	100,675		171,286
Total Kansas / Missouri	214,870	206,557	123,322	117,081		180,978

TOTAL BOK FINANCIAL	$ 16,087,500	$ 15,527,516	$ 15,518,228	$ 15,095,346	$	14,655,389

NET INTEREST MARGIN TREND - UNAUDITED
BOK FINANCIAL CORPORATION
			Quarter Ended
	June 30,	March 31,	December 31,	September 30,		June 30,
	2010	2010	2009	2009		2009
TAX-EQUIVALENT ASSETS YIELDS
Trading securities	4.51%	4.53%	5.41%	4.72%		3.49%
Funds sold and resell agreements	0.14%	0.10%	0.21%	0.11%		0.19%
Securities:
Taxable	3.56%	3.73%	3.83%	4.18%		4.50%
Tax-exempt	4.89%	5.28%	5.16%	5.03%		5.69%
Total securities	3.60%	3.78%	3.87%	4.21%		4.54%
Residential mortgage loans held for sale	4.76%	5.16%	4.71%	4.94%		4.51%
Loans	4.83%	4.81%	4.74%	4.67%		4.64%
Less reserve for loan losses	-	-	-	-		-
Loans, net of reserve	4.97%	4.95%	4.86%	4.78%		4.75%
Total tax-equivalent yield on earning assets	4.33%	4.41%	4.42%	4.54%		4.65%
COST OF INTEREST-BEARING LIABILITIES
Interest-bearing deposits:
Interest-bearing transaction	0.49%	0.52%	0.57%	0.65%		0.78%
Savings	0.40%	0.42%	0.47%	0.48%		0.25%
Time	1.74%	1.86%	1.95%	2.20%		2.48%
Total interest-bearing deposits	0.87%	0.94%	1.03%	1.23%		1.49%
Funds purchased and repurchase agreements	0.36%	0.32%	0.30%	0.32%		0.35%
Other borrowings	0.35%	0.29%	0.29%	0.38%		0.49%
Subordinated debt	5.57%	5.66%	5.52%	5.53%		5.67%
Total cost of interest-bearing liabilities	0.85%	0.87%	0.94%	1.09%		1.31%
Tax-equivalent net interest revenue spread	3.48%	3.54%	3.48%	3.45%		3.34%
Effect of noninterest-bearing funding sources and other	0.15%	0.14%	0.16%	0.18%		0.21%
Tax-equivalent net interest margin	3.63%	3.68%	3.64%	3.63%		3.55%

CREDIT QUALITY INDICATORS
BOK FINANCIAL CORPORATION
(In thousands, except ratios)			Quarter Ended
	June 30,	March 31,	December 31,	September 30,		June 30,
	2010	2010	2009	2009		2009

Nonperforming assets:
Nonaccruing loans (B):
Commercial	$ 82,775	$ 84,491	$ 101,384	$ 128,266	$	126,510
Commercial real estate	193,698	219,639	204,924	212,418		189,586
Residential mortgage	40,033	36,281	29,989	38,220		35,860
Consumer	3,188	3,164	3,058	3,897		1,037
Total nonaccruing loans	$ 319,694	$ 343,575	$ 339,355	$ 382,801	$	352,993
Renegotiated loans (A)	21,327	17,763	15,906	17,426		17,479
Real estate and other repossessed assets	119,908	121,933	129,034	89,507		75,243
Total nonperforming assets	$ 460,929	$ 483,271	$ 484,295	$ 489,734	$	445,715

Nonaccruing loans by principal market (B):
Oklahoma	$ 93,898	$ 102,231	$ 83,176	$ 112,610	$	108,490
Texas	49,695	58,067	66,892	65,911		51,582
New Mexico	26,956	23,021	26,693	35,541		29,640
Arkansas	10,933	14,652	13,820	5,911		3,888
Colorado	66,040	66,883	60,082	50,432		45,794
Arizona	72,111	78,656	84,559	108,161		106,076
Kansas	61	65	4,133	4,235		7,523
Total nonaccruing loans	$ 319,694	$ 343,575	$ 339,355	$ 382,801	$	352,993

Nonaccruing loans by loan portfolio sector (B):
Commercial:
Energy	$ 26,259	$ 17,182	$ 22,692	$ 48,992	$	53,842
Manufacturing	3,237	4,834	15,765	17,429		16,975
Wholesale / retail	5,561	6,629	12,057	7,623		10,983
Agriculture	58	65	65	98		105
Services	31,062	35,535	30,926	30,094		24,713
Healthcare	8,568	10,538	13,103	13,758		14,222
Other	8,030	9,708	6,776	10,272		5,670
Total commercial	82,775	84,491	101,384	128,266		126,510
Commercial real estate:
Land development and construction	132,686	140,508	109,779	113,868		97,425
Retail	4,967	14,843	26,236	22,254		17,474
Office	24,764	26,660	25,861	31,406		27,685
Multifamily	7,253	15,725	26,540	28,223		27,827
Industrial	4,223	-	279	527		527
Other commercial real estate	19,805	21,903	16,229	16,140		18,648
Total commercial real estate	193,698	219,639	204,924	212,418		189,586
Residential mortgage:
Permanent mortgage	37,978	34,134	28,314	36,431		34,149
Home equity	2,055	2,147	1,675	1,789		1,711
Total residential mortgage	40,033	36,281	29,989	38,220		35,860
Consumer	3,188	3,164	3,058	3,897		1,037
Total nonaccruing loans	$ 319,694	$ 343,575	$ 339,355	$ 382,801	$	352,993

Performing loans 90 days past due	$ 12,474	$ 12,915	$ 10,308	$ 24,238	$	32,479

Gross charge-offs	$ 38,168	$ 40,328	$ 37,974	$ 38,581	$	37,409
Recoveries	2,614	5,850	2,950	2,594		2,472
Net charge-offs	$ 35,554	$ 34,478	$ 35,024	$ 35,987	$	34,937

Provision for credit losses	$ 36,040	$ 42,100	$ 48,620	$ 55,120	$	47,120

Reserve for loan losses to period end loans	2.75%	2.73%	2.59%	2.42%		2.18%
Combined reserves for credit losses to period end loans	2.89%	2.86%	2.72%	2.52%		2.27%
Nonperforming assets to period end loans
and repossessed assets	4.19%	4.36%	4.24%	4.19%		3.67%
Net charge-offs (annualized) to average loans	1.30%	1.23%	1.22%	1.21%		1.13%
Reserve for loan losses to nonaccruing loans	93.68%	87.23%	86.07%	73.38%		74.59%
Combined reserves for credit losses to nonaccruing loans	98.40%	91.42%	90.31%	76.51%		77.55%

(A) includes residential mortgage loans guaranteed by	$ 17,598	$ 14,083	$ 12,799	$ 11,234	$	11,079
agencies of the U.S. government. These loans
have been modified to extend payment terms and/or
reduce interest rates to current market.
(B) includes loans subject to First United Bank sellers escrow	$ -	$ 4,281	$ 4,311	$ 4,173	$	8,305