0000875357-12-000014.txt : 20120424 0000875357-12-000014.hdr.sgml : 20120424 20120424151418 ACCESSION NUMBER: 0000875357-12-000014 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20120424 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20120424 DATE AS OF CHANGE: 20120424 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: 12775893 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_042412.htm FORM 8-K Q1/12 042412 form8k_042412.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):
April 24, 2012

BOK FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter)

 
                                         Oklahoma                       000-19341                            73-1373454
                                                                                                                                          --------                             ---------                                   ----------
                                                                                                                       (State or other jurisdiction      (Commission                          (IRS Employer
                                                                                                                                 of incorporation)              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 April 24, 2012, BOK Financial Corporation (“BOK Financial”) issued a press release announcing its financial results for the three months ended March 31, 2012 (“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 April 24, 2012, in connection with issuance of the Press Release, BOK Financial released financial information related to the three months ended March 31, 2012 (“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 April 24, 2012 titled “BOK Financial Reports Quarterly Earnings of $84 Million – Commercial Loans Up 15%; Dividend to Increase 15%”

 
99(b)
Financial Information for the Three Months Ended March 31, 2012



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.


                                                                                                               BOK FINANCIAL CORPORATION


                                                                                                               By:    /s/ Steven E. Nell                                                               
                                                                                                                         Steven E. Nell
                                                                                                                         Executive Vice President
                                                                                                                         Chief Financial Officer
Date:  April 24, 2012
 EX-99.A 2 exhibit99a_042412.htm EXHIBIT 99 (A) TEXT OF PRESS RELEASE 042412 exhibit99a_042412.htm
Exhibit 99 (a)
 
BOK Financial Reports Quarterly Earnings of $84 Million
Commercial Loans Up 15%; Dividend to Increase 15%
 
TULSA, Okla. (Tuesday, April 24, 2012) – BOK Financial Corporation reported net income of $83.6 million or $1.22 per diluted share, up 29% over the first quarter of 2011. Net income was $64.8 million or $0.94 per diluted share for the first quarter of 2011 and $67.0 million or $0.98 per diluted share for the fourth quarter of 2011.
 
“BOK Financial is pleased to announce results for the first quarter of 2012,” said President and CEO Stan Lybarger. “The year has started with strong growth in revenues and loans. Net interest revenue and fees and commissions revenue combined were up 8% over the previous year. Outstanding commercial loan balances increased 15% over March 31, 2011. In addition, net loans charged-off and nonperforming asset balances continue to decline. The Company’s sustained performance and strong capital position allows us to increase our quarterly cash dividend. This is the seventh consecutive annual increase since we paid our first cash dividend in 2005.”
 
Highlights of first quarter of 2012 included:
 
·  
Net interest revenue increased to $173.6 million for the first quarter of 2012 from $171.5 million for the fourth quarter of 2011. Net interest margin was 3.19% for the first quarter of 2012 compared to 3.20% for the fourth quarter of 2011.
 
·  
Fees and commissions revenue totaled $144.3 million, up $12.5 million over the fourth quarter of 2011. Mortgage banking revenue increased $7.6 million and brokerage and trading revenue increased $5.5 million.
 
·  
Operating expenses, excluding changes in the fair value of mortgage servicing rights, totaled $192.4 million, down $21.6 million compared to the previous quarter. Personnel expenses decreased $6.4 million and non-personnel expense decreased $15.2 million.
 
·  
No provision for credit losses was recorded in the first quarter of 2012 compared to a $15.0 million negative provision for credit losses recorded in the fourth quarter of 2011. Net charge-offs continued to decrease and other credit quality indicators continue to improve.
 
·  
The combined allowance for credit losses totaled $254 million or 2.20% of outstanding loans at March 31, 2012 compared to $263 million or 2.33% of outstanding loans at December 31, 2011. Nonperforming assets totaled $336 million or 2.87% of outstanding loans and repossessed assets at March 31, 2012 and $357 million or 3.13% of outstanding loans and repossessed assets at December 31, 2011.
 
·  
Outstanding loan balances were $11.6 billion at March 31, 2012, up $308 million over December 31, 2011. Commercial loan balances increased $371 million over December 31, 2011. Consumer loans decreased $38 million, commercial real estate loans decreased $16 million and residential mortgage loans decreased $9.6 million.
 
·  
Period end deposits totaled $18.5 billion at March 31, 2012 compared to $18.8 billion at December 31, 2011. Demand deposit accounts increased $389 million offset by a $446 million decrease in interest-bearing transaction accounts and a $216 million decrease in time deposits.
 
·  
Tangible common equity ratio was 9.75% at March 31, 2012 and 9.56% at December 31, 2011. 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. The Company and its subsidiary bank continue to exceed the regulatory definition of well capitalized. The Company’s Tier 1 capital ratios, as defined by banking regulations, were 13.03% at March 31, 2012 and 13.27% at December 31, 2011.
 
·  
The Company paid a cash dividend of $23 million or $0.33 per common share during the first quarter of 2012. The Company will increase the quarterly cash dividend to $0.38 per common share payable on or about May 29, 2012 to shareholders of record as of May 15, 2012.
 
Net Interest Revenue
 
Net interest revenue increased $2.1 million over the fourth quarter of 2011. Net interest margin decreased 1 basis point from the prior quarter to 3.19%.
 
The yield on average earning assets decreased 5 basis points compared to the preceding quarter. The available for sale securities portfolio yield increased 12 basis points to 2.50% due to slower prepayment speeds on residential mortgage-backed securities. The loan portfolio yield decreased by 15 basis points to 4.50%. The cost of interest-bearing liabilities decreased 3 basis points from the previous quarter to 0.63%.
 
The effect of lower interest rates on net interest revenue was partially offset by earning asset growth. Average earning assets increased $192 million during the first quarter of 2012. Average outstanding loans increased $284 million due primarily to a $355 million increase in commercial loan balances, partially offset by decreases in consumer, commercial real estate and residential mortgage loans. The average balance of fair value option securities decreased $105 million compared to the fourth quarter of 2011. These securities are generally used as an economic hedge against changes in the value of mortgage servicing rights and the average outstanding balance can change significantly.
 
Average interest-bearing deposits decreased $174 million compared to the previous quarter. Average time deposit account balances decreased $239 million and average interest-bearing transaction account balances increased $43 million. Average demand deposits increased $259 million. Average balances of borrowed funds increased $119 million over the fourth quarter of 2011.
 
Fees and Commissions Revenue
 
Fees and commissions revenue increased $12.5 million over the fourth quarter of 2011 to $144.3 million. Mortgage banking revenue increased $7.6 million and brokerage and trading revenue increased $5.5 million.
 
Residential mortgage loan production revenue increased $7.7 million compared to the previous quarter. The unpaid principal balance of residential mortgage loans held for sale was up $53 million or 30% and outstanding mortgage loan commitments were up $113 million or 59% over December 31, 2011. Residential mortgage loans funded for sale totaled $698 million for the first quarter of 2012 compared to $753 million for the fourth quarter of 2011. Refinanced mortgage loans were 67% of loans originated for sale in the first quarter of 2012 compared to 66% of the loans originated for sale in the fourth quarter of 2011. Revenue from interest rate derivatives used by our customers to hedge residential mortgage loan production, included in brokerage and trading revenue, increased $2.4 million.
 
Operating Expenses
 
Total operating expenses were $185.2 million for the first quarter of 2012 compared to $219.2 million for the fourth quarter of 2011. Excluding changes in the fair value of mortgage servicing rights, operating expenses totaled $192.4 million, down $21.6 million compared to the fourth quarter of 2011.
 
Personnel costs decreased $6.4 million due primarily to decreased incentive compensation expense. Stock-based incentive compensation expense decreased $7.8 million, due primarily to the timing of accruals for the BOK Financial Corporation 2011 True-Up Plan and first quarter performance of BOK Financial stock and other investments. Approved by shareholders on April 26, 2011, the True-Up Plan is designed to adjust annual and long-term performance-based incentive compensation for certain senior executives either upward or downward based on the earnings per share performance and compensation of comparable senior executives at peer banks.
 
Non-personnel expense was down $15.2 million compared to the fourth quarter of 2011 across most non-personnel expense categories. Data processing and communication expense decreased $4.5 million primarily due to the favorable resolution of a dispute with a service provider. Net losses and operating expenses of repossessed assets were down $3.9 million primarily due to decreased write-downs and net losses on sales of repossessed assets. Mortgage banking costs were down $2.6 million due primarily to lower foreclosure expenses on loans serviced for others.
 
Loans, Deposits and Capital
 
Loans
 
Outstanding loans at March 31, 2012 were $11.6 billion, up $308 million over December 31, 2011. Growth in commercial loans was partially offset by decreases in commercial real estate, residential mortgage and consumer loans.
 
Outstanding commercial loan balances increased $371 million over December 31, 2011 due primarily to $256 million in loans attributed to Oklahoma and $90 million in loans attributed to Texas. Energy sector loans increased $191 million, growing in the Oklahoma, Texas and Colorado markets. Service sector loans increased $136 million primarily in the Oklahoma market. Wholesale/retail sector loans increased $40 million primarily in the Oklahoma, Texas and Kansas/Missouri markets. Unfunded energy loan commitments increased $71 million during the first quarter to $2.0 billion. All other unfunded commercial loan commitments totaled $3.1 billion at March 31, 2012.
 
Commercial real estate loans decreased $16 million compared to the fourth quarter of 2011. Loans secured by multifamily residential properties increased $64 million primarily related to loans in the Texas and Colorado markets. Loans secured by retail properties decreased $28 million primarily in the Texas and Kansas/Missouri markets, partially offset by an increase in loans attributed to the Oklahoma market. Other real estate loans decreased $25 million primarily in the New Mexico market. Loans secured by office buildings decreased by $20 million primarily in the Texas and Colorado markets, partially offset by increased loan balances attributed to the Oklahoma market. Construction and land development loan balances continued to decline, down $16 million, primarily in the Colorado market. Unfunded commercial real estate loan commitments totaled $450 million at March 31, 2012, up $95 million over December 31, 2011.
 
Residential mortgage loans decreased $9.6 million compared to December 31, 2011. Home equity loans increased $12 million. Non-guaranteed permanent mortgage loans decreased $17 million and permanent mortgage loans guaranteed by U.S. government agencies decreased $4.1 million.
 
Consumer loans decreased $38 million from December 31, 2011. Indirect automobile loans decreased $23 million primarily due to continued runoff related to the previously announced decision to curtail that business in favor of a customer-focused direct approach to consumer lending. Approximately $82 million of indirect automobile loans remain outstanding at March 31, 2012. Other consumer loans decreased $15 million.
 
Deposits
 
Deposits totaled $18.5 billion at March 31, 2012 compared to $18.8 billion at December 31, 2011. Demand deposit balances increased $389 million, interest-bearing transaction account balances decreased $446 million and time deposits decreased $216 million. Among the lines of business, commercial deposits decreased $223 million and wealth management deposits decreased $36 million, partially offset by a $34 million seasonal increase in consumer deposits. The decrease in commercial deposit balances was largely driven by seasonal decreases in state and municipal deposits, along with lower commercial and industrial and energy account balances.
 
Capital
 
The Company and its subsidiary bank exceeded the regulatory definition of well capitalized at March 31, 2012. The Company’s Tier 1 capital ratio was 13.03% at March 31, 2012 and 13.27% at December 31, 2011. The total capital ratio was 16.16% at March 31, 2012 and 16.49% at December 31, 2011. In addition, the Company’s tangible common equity ratio, a non-GAAP measure, was 9.75% at March 31, 2012 and 9.56% at December 31, 2011. Unrealized securities gains added 57 basis points to the tangible common equity ratio at March 31, 2012. The Company repurchased 345,300 common shares at an average price of $53.38 per share during the first quarter through a previously-announced share repurchase program.
 
Credit Quality
 
Nonperforming assets decreased $21 million during the first quarter to $336 million or 2.87% of outstanding loans and repossessed assets at March 31, 2012. Nonaccruing loans decreased $18 million and real estate and other repossessed assets decreased $7.0 million. Renegotiated loans, largely consisting of residential mortgage loans guaranteed by U.S. government agencies, increased $3.9 million.
 
Nonaccruing loans totaled $183 million or 1.58% of outstanding loans at March 31, 2012 and $201 million or 1.79% of outstanding loans at December 31, 2011. During the first quarter of 2012, $21 million of new nonaccruing loans were identified offset by $20 million in payments received, $14 million in charge-offs and $8.3 million in foreclosures and repossessions.
 
Nonaccruing commercial loans totaled $62 million or 0.89% of total commercial loans at March 31, 2012, down $7.1 million since December 31, 2011. Nonaccruing manufacturing sector loans are primarily composed of a single customer relationship in the Oklahoma market totaling $21 million. Nonaccruing wholesale/retail sector loans are primarily composed of a single customer relationship in the Arkansas market totaling $11 million.
 
Nonaccruing commercial real estate loans totaled $86 million or 3.82% of outstanding commercial real estate loans at March 31, 2012, down $13 million from December 31, 2011. Nonaccruing commercial real estate loans continued to be largely concentrated in land development and residential construction loans with $52 million or 17% of all land development and construction loans nonaccruing at March 31, 2012.
 
Nonaccruing residential mortgage loans decreased $2.3 million during the first quarter of 2012 to $27 million or 1.40% of outstanding residential mortgage loans. Principally all non-guaranteed residential mortgage loans past due 90 days or more are nonaccruing. Residential mortgage loans past due 30 to 89 days and still accruing interest, excluding loans guaranteed by U.S. government agencies, totaled $15 million at March 31, 2012 and $20 million at December 31, 2011.
 
The combined allowance for credit losses totaled $254 million or 2.20% of outstanding loans and 138% of nonaccruing loans at March 31, 2012. The allowance for loan losses was $244 million and the accrual for off-balance sheet credit losses was $10 million. Quarterly net charge-offs continue to decline. Net loans charged-off against the allowance for loan loss totaled $8.5 million or 0.30% on an annualized basis for the first quarter of 2012 compared to $9.5 million or 0.34% on an annualized basis for the fourth quarter of 2011. Other credit factors also continued to improve. Most economic indicators are stable or improving in our primary markets. After evaluating all credit factors, the Company determined that no provision for credit losses was necessary during the first quarter of 2012.
 
Real estate and other repossessed assets totaled $116 million at March 31, 2012, primarily consisting of $42 million of 1-4 family residential properties (including $20 million guaranteed by U.S. government agencies), $36 million of developed commercial real estate properties, $19 million of undeveloped land and $17 million of residential land and land development properties. The distribution of real estate owned and other repossessed assets among various markets included $32 million attributed to Arizona, $25 million attributed to Texas, $15 million attributed to New Mexico, $15 million attributed to Oklahoma and $11 million attributed to Colorado. Real estate and other repossessed assets decreased by $7.0 million during the first quarter. Sales of $33 million were partially offset by $26 million of additions. Additions included $18 million and sales included $15 million of 1-4 family residential properties guaranteed by U.S. government agencies. Write-downs and net losses on sales of real estate and other repossessed assets totaled $520 thousand.
 
The Company also has off-balance sheet credit risk related to residential mortgage loans sold prior to 2008 to U.S. government agencies under various community development programs with full recourse for the life of the loans. The outstanding principal balance of these loans decreased to $248 million at March 31, 2012 from $259 million at December 31, 2011. The loans are primarily to borrowers in our market areas, including $177 million in Oklahoma. At March 31, 2012, approximately 5% of these loans are nonperforming and 4% were past due 30 to 89 days. A separate accrual for credit risk of $19 million is available to absorb losses on these loans.
 
Securities and Derivatives
 
The fair value of the available for sale securities portfolio totaled $10.2 billion at March 31, 2012 and December 31, 2011. The available for sale portfolio consisted primarily of residential mortgage-backed securities, including $9.7 billion fully backed by U.S. government agencies and $326 million privately issued by publicly owned financial institutions. Privately issued mortgage-backed securities included $206 million backed by Jumbo-A residential mortgage loans and $120 million backed by Alt-A residential mortgage loans.
 
Net unrealized gains on available for sale securities totaled $277 million at March 31, 2012 and $222 million at December 31, 2011. Net unrealized gains on residential mortgage-backed securities issued by U.S. government agencies increased $8.2 million to $299 million at March 31, 2012. Net unrealized losses on privately issued residential mortgage-backed securities totaled $45 million at March 31, 2012 and $84 million at December 31, 2011.
 
The amortized cost of privately issued residential mortgage-backed securities totaled $371 million at March 31, 2012, down $132 million since December 31, 2011. All of these securities are rated below investment grade by at least one nationally-recognized rating agency. In response to price increases during the first quarter of 2012, the Company sold $107 million of privately issued residential mortgage-backed securities at a $7.4 million loss. The amortized cost of these securities also decreased $21 million from cash payments received and $3.7 million for credit-related impairment charges. Unrealized losses on privately issued mortgage-backed securities decreased $28 million due to changes in fair value during the quarter.
 
The Company also recognized $11.7 million of gains on sales of $892 million of available for sale securities in the first quarter of 2012 and $7.1 million of net gains on sales of $667 million of available for sale securities in the fourth quarter of 2011. Certain of these securities were sold based on consideration of this price strength and their expected potential return. Other securities were sold either because they had reached their expected maximum potential total return or to mitigate exposure to prepayment risk.
 
The Company also maintains a portfolio of residential mortgage-backed securities issued by U.S. government agencies and interest rate derivative contracts designated as an economic hedge of the changes in the fair value of our mortgage servicing rights. Residential mortgage interest rates increased during the first quarter of 2012, causing prepayment speeds to slow and the value of our mortgage servicing rights to increase by $7.1 million. This increase was partially offset by a $4.8 million decrease in the value of securities and interest rate derivative contracts held as an economic hedge.


About BOK Financial Corporation
 
BOK Financial is a $25 billion regional financial services company based in Tulsa, Oklahoma. The Company’s stock is publicly traded on NASDAQ under the Global Select market listings (symbol: BOKF). BOK Financial’s holdings include BOKF, NA, BOSC, Inc. and Cavanal Hill Investment Management, Inc. BOKF, NA operates the TransFund electronic funds network and seven banking divisions: Bank of Albuquerque, Bank of Arizona, Bank of Arkansas, Bank of Kansas City, Bank of Oklahoma, Bank of Texas and Colorado State Bank and Trust. Through its subsidiaries, the Company provides commercial and consumer banking, investment and trust services, mortgage origination and servicing, and an electronic funds transfer network. 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 March 31, 2012 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 profitable 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 by 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_042412.htm EXHIBIT 99 (B) Q1/12 FINANCIALS 042412 exhibit99b_042412.htm
Exhibit 99 (b)
 
 BALANCE SHEETS
                  
 BOK FINANCIAL CORPORATION
                  
 (In thousands)
                  
                   
   
March 31,
    
December 31,
    
March 31,
  
   
2012
    
2011
    
2011
  
   
(Unaudited)
    
(Unaudited)
    
(Unaudited)
  
 ASSETS
                  
 Cash and due from banks
   $ 691,697     $ 976,191     $ 805,928  
 Funds sold and resell agreements
     14,609       10,174       2,462  
 Trading securities
     128,376       76,800       80,719  
 Investment securities
     427,259       439,236       343,401  
 Available for sale securities
     10,186,597       10,179,365       9,665,901  
 Fair value option securities
     347,952       651,226       326,624  
 Residential mortgage loans held for sale
     247,039       188,125       127,119  
 Loans:
                        
   Commercial
     6,942,641       6,571,454       6,048,257  
   Commercial real estate
     2,264,103       2,279,909       2,222,982  
   Residential mortgage
     1,960,888       1,970,461       1,777,321  
   Consumer
     409,812       447,919       541,275  
   Total loans
     11,577,444       11,269,743       10,589,835  
 Less allowance for loan losses
     (244,209 )     (253,481 )     (289,549 )
   Loans, net of allowance
     11,333,235       11,016,262       10,300,286  
 Premises and equipment, net
     263,579       262,735       265,532  
 Receivables
     138,325       123,257       113,060  
 Goodwill
     335,601       335,601       335,601  
 Intangible assets, net
     9,645       10,219       12,906  
 Mortgage servicing rights, net
     98,138       86,783       120,345  
 Real estate and other repossessed assets
     115,790       122,753       131,420  
 Bankers' acceptances
     3,493       1,881       1,884  
 Derivative contracts
     384,996       293,859       245,124  
 Cash surrender value of bank-owned life insurance
     266,227       263,318       258,322  
 Receivable on unsettled securities sales
     511,288       75,151       242,828  
 Other assets
     380,327       381,010       321,561  
 TOTAL ASSETS
   $ 25,884,173     $ 25,493,946     $ 23,701,023  
                         
                         
 LIABILITIES AND EQUITY
                        
 Deposits:
                        
   Demand
   $ 6,189,172     $ 5,799,785     $ 4,457,187  
   Interest-bearing transaction
     8,908,397       9,354,456       9,528,864  
   Savings
     259,619       226,357       209,264  
   Time
     3,166,099       3,381,982       3,677,611  
 Total deposits
     18,523,287       18,762,580       17,872,926  
 Funds purchased
     1,784,940       1,063,318       466,749  
 Repurchase agreements
     1,162,546       1,233,064       1,006,051  
 Other borrowings
     209,230       74,485       36,864  
 Subordinated debentures
     394,760       398,881       398,744  
 Accrued interest, taxes, and expense
     180,840       149,508       135,486  
 Bankers' acceptances
     3,493       1,881       1,884  
 Due on unsettled securities purchases
     305,166       653,371       843,904  
 Derivative contracts
     305,290       236,522       156,038  
 Other liabilities
     144,220       133,684       184,689  
 TOTAL LIABILITIES
     23,013,772       22,707,294       21,103,335  
 Shareholders' equity:
                        
   Capital, surplus and retained earnings
     2,673,001       2,621,489       2,467,820  
   Accumulated other comprehensive income
     161,418       128,979       108,313  
 TOTAL SHAREHOLDERS' EQUITY
     2,834,419       2,750,468       2,576,133  
   Non-controlling interest
     35,982       36,184       21,555  
 TOTAL EQUITY
     2,870,401       2,786,652       2,597,688  
 TOTAL LIABILITIES AND EQUITY
   $ 25,884,173     $ 25,493,946     $ 23,701,023  
 
 
 AVERAGE BALANCE SHEETS - UNAUDITED
                              
 BOK FINANCIAL CORPORATION
                              
 (In thousands)
                              
                 Quarter Ended              
   
March 31,
    
December 31,
    
September 30,
    
June 30,
    
March 31,
  
   
2012
    
2011
    
2011
    
2011
    
2011
  
                               
ASSETS
                              
Funds sold and resell agreements
   $ 11,385     $ 12,035     $ 12,344     $ 8,814     $ 20,680  
Trading securities
     95,293       97,972       88,576       80,113       60,768  
Investment securities
     430,890       443,326       329,627       357,698       339,246  
Available for sale securities
     9,947,227       9,914,523       9,656,592       9,543,482       9,376,674  
Fair value option securities
     555,233       660,025       594,629       518,073       397,093  
Residential mortgage loans held for sale
     182,372       201,242       156,621       134,876       125,494  
Loans:
                                        
  Commercial
     6,858,308       6,502,981       6,329,135       6,145,918       6,084,765  
  Commercial real estate
     2,236,601       2,256,153       2,208,757       2,172,166       2,236,400  
  Residential mortgage
     1,937,069       1,949,929       1,868,627       1,858,117       1,788,049  
  Consumer
     404,834       443,252       466,285       504,553       544,542  
Total loans
     11,436,811       11,152,315       10,872,805       10,680,755       10,653,756  
Less allowance for loan losses
     (252,538 )     (266,473 )     (285,570 )     (291,308 )     (295,014 )
Total loans, net
     11,184,273       10,885,842       10,587,235       10,389,447       10,358,742  
Total earning assets
     22,406,673       22,214,965       21,425,624       21,032,503       20,678,697  
Cash and due from banks
     908,628       1,234,312       1,045,450       764,806       1,095,910  
Cash surrender value of bank-owned life insurance
     264,354       261,496       260,505       259,337       256,456  
Derivative contracts
     311,178       247,411       228,466       253,163       211,895  
Other assets
     1,625,750       1,679,256       1,661,693       1,669,426       1,496,816  
TOTAL ASSETS
   $ 25,516,583     $ 25,637,440     $ 24,621,738     $ 23,979,235     $ 23,739,774  
                                         
LIABILITIES AND EQUITY
                                        
Deposits:
                                        
  Demand
   $ 5,847,682     $ 5,588,596     $ 5,086,538     $ 4,554,000     $ 4,265,657  
  Interest-bearing transaction
     9,319,978       9,276,608       9,310,046       9,184,141       9,632,595  
  Savings
     241,442       220,236       214,979       210,707       203,638  
  Time
     3,246,362       3,485,059       3,617,731       3,632,130       3,616,991  
Total deposits
     18,655,464       18,570,499       18,229,294       17,580,978       17,718,881  
Funds purchased
     1,337,614       1,197,154       994,099       1,168,670       820,969  
Repurchase agreements
     1,183,778       1,189,861       1,128,275       1,004,217       1,062,359  
Other borrowings
     72,911       88,489       128,288       187,441       144,987  
Subordinated debentures
     397,440       398,858       398,812       398,767       398,723  
Derivative contracts
     207,864       180,623       187,515       175,199       144,492  
Other liabilities
     826,279       1,241,469       817,049       813,074       884,566  
TOTAL LIABILITIES
     22,681,350       22,866,953       21,883,332       21,328,346       21,174,977  
Total equity
     2,835,233       2,770,487       2,738,406       2,650,889       2,564,797  
TOTAL LIABILITIES AND EQUITY
   $ 25,516,583     $ 25,637,440     $ 24,621,738     $ 23,979,235     $ 23,739,774  
 
 
 STATEMENTS OF EARNINGS - UNAUDITED
            
 BOK FINANCIAL CORPORATION
            
 (In thousands, except per share data)
            
   
Quarter Ended
  
   
March 31,
  
   
2012
    
2011
  
             
             
 Interest revenue
   $ 198,208     $ 202,089  
 Interest expense
     24,639       31,450  
 Net interest revenue
     173,569       170,639  
 Provision for (reduction of) allowances for credit losses
     –       6,250  
 Net interest revenue after
                
   provision for credit losses
     173,569       164,389  
                 
 Other operating revenue
                
   Brokerage and trading revenue
     31,111       25,376  
   Transaction card revenue
     25,430       28,445  
   Trust fees and commissions
     18,438       18,422  
   Deposit service charges and fees
     24,379       22,480  
   Mortgage banking revenue
     33,078       17,356  
   Bank-owned life insurance
     2,871       2,863  
   Other revenue
     9,027       8,332  
  Total fees and commissions
     144,334       123,274  
   Gain (loss) on other assets, net
     (356 )     (68 )
   Gain (loss) on derivatives, net
     (2,473 )     (2,413 )
   Gain (loss) on fair value option securities, net
     (1,733 )     (3,518 )
   Gain on available for sale securities, net
     4,331       4,902  
   Total other-than-temporary impairment losses
     (505 )     –  
   Portion of loss recognized in (reclassified from)
                
     other comprehensive income
     (3,217 )     (4,599 )
   Net impairment losses recognized in earnings
     (3,722 )     (4,599 )
   Total other operating revenue
     140,381       117,578  
                 
 Other operating expense
                
   Personnel
     114,769       99,994  
   Business promotion
     4,388       4,624  
   Professional fees and services
     7,599       7,458  
   Net occupancy and equipment
     16,023       15,604  
   Insurance
     3,866       6,186  
   Data processing and communications
     22,144       22,503  
   Printing, postage and supplies
     3,311       3,082  
   Net losses and operating expenses
                
     of repossessed assets
     2,245       6,015  
   Amortization of intangible assets
     575       896  
   Mortgage banking costs
     7,573       6,471  
   Change in fair value of mortgage servicing rights
     (7,127 )     (3,129 )
   Other expense
     9,871       8,745  
 Total other operating expense
     185,237       178,449  
                 
 Net income before taxes
     128,713       103,518  
 Federal and state income taxes
     45,520       38,752  
                 
 Net income
     83,193       64,766  
 Net income (loss) attributable to non-controlling interest
     (422 )     (8 )
                 
 Net income attributable to BOK Financial Corporation
   $ 83,615     $ 64,774  
                 
 Average shares outstanding:
                
    Basic
     67,665,300       67,901,722  
    Diluted
     67,941,895       68,176,527  
                 
 Net income per share:
                
   Basic
   $ 1.22     $ 0.95  
   Diluted
   $ 1.22     $ 0.94  
 
 
 FINANCIAL HIGHLIGHTS - UNAUDITED
                              
 BOK FINANCIAL CORPORATION
                              
 (In thousands, except ratio and share data)
                              
                 Quarter Ended              
   
March 31,
    
December 31,
    
September 30,
    
June 30,
    
March 31,
  
   
2012
    
2011
    
2011
    
2011
    
2011
  
 Capital:
                              
   Period-end shareholders' equity
   $ 2,834,419     $ 2,750,468     $ 2,732,592     $ 2,667,717     $ 2,576,133  
   Risk weighted assets
   $ 17,993,379     $ 17,291,105     $ 17,106,533     $ 16,452,305     $ 16,416,387  
   Risk-based capital ratios:
                                        
     Tier 1
     13.03 %     13.27 %     13.14 %     13.30 %     12.97 %
     Total capital
     16.16 %     16.49 %     16.54 %     16.80 %     16.48 %
   Leverage ratio
     9.35 %     9.15 %     9.37 %     9.29 %     9.13 %
   Tangible common equity ratio (A)
     9.75 %     9.56 %     9.65 %     9.71 %     9.54 %
   Tier 1 common equity ratio (B)
     12.83 %     13.06 %     12.94 %     13.15 %     12.84 %
                                         
 Common stock:
                                        
   Book value per share
   $ 41.61     $ 40.36     $ 40.18     $ 38.97     $ 37.64  
   Market value per share:
                                        
        High
   $ 59.02     $ 55.90     $ 55.81     $ 54.72     $ 56.32  
        Low
   $ 52.56     $ 45.68     $ 44.00     $ 50.13     $ 50.37  
   Cash dividends paid
   $ 22,571     $ 22,451     $ 18,836     $ 18,823     $ 17,102  
   Dividend payout ratio
     26.99 %     33.51 %     22.13 %     27.28 %     26.40 %
   Shares outstanding, net
     68,116,893       68,153,044       68,006,390       68,462,869       68,438,422  
   Stock buy-back program:
                                        
       Shares repurchased
     345,300       69,581       492,444       –       –  
       Amount
   $ 18,432     $ 3,579     $ 22,866     $ –     $ –  
       Average price per share
   $ 53.38     $ 51.44     $ 46.43     $ –     $ –  
                                         
 Performance ratios (quarter annualized):
                                        
  Return on average assets
     1.32 %     1.04 %     1.37 %     1.15 %     1.11 %
  Return on average equity
     11.86 %     9.59 %     12.33 %     10.44 %     10.24 %
  Net interest margin
     3.19 %     3.20 %     3.34 %     3.40 %     3.47 %
  Efficiency ratio
     59.77 %     69.73 %     60.13 %     62.23 %     61.15 %
                                         
 Other data:
                                        
     Trust assets
   $ 35,650,798     $ 34,398,796     $ 31,750,636     $ 33,075,456     $ 32,013,487  
     Mortgage servicing portfolio
   $ 11,378,806     $ 11,300,986     $ 11,249,503     $ 11,283,442     $ 11,202,626  
     Mortgage loans funded for sale
   $ 698,062     $ 753,215     $ 637,127     $ 483,808     $ 419,684  
     Mortgage loan refinances to total fundings
     67 %     66 %     54 %     36 %     49 %
     Tax equivalent adjustment
   $ 2,094     $ 2,274     $ 2,233     $ 2,261     $ 2,321  
     Net unrealized gain on available for sale securities
   $ 277,277     $ 222,160     $ 278,616     $ 263,199     $ 201,340  
                                         
Gain (loss) on mortgage servicing rights, net of economic hedge:
                                  
    Gain (loss) on mortgage hedge derivative contracts
   $ (2,445 )   $ 121     $ 4,048     $ 1,224     $ (2,419 )
    Gain (loss) on mortgage trading securities
     (2,393 )     222       17,788       9,921       (3,518 )
    Gain (loss) on economic hedge of mortgage servicing rights
     (4,838 )     343       21,836       11,145       (5,937 )
    Gain (loss) on changes in fair value of mortgage servicing rights
     7,127       (5,261 )     (24,822 )     (13,493 )     3,129  
     Gain (loss) on changes in fair value of mortgage servicing
       rights, net of economic hedges
   $ 2,289     $ (4,918 )   $ (2,986 )   $ (2,348 )   $ (2,808 )
    Net interest revenue on mortgage trading securities
   $ 3,165     $ 4,436     $ 5,036     $ 5,120     $ 3,058  
                                         
 Reconciliation of non-GAAP measures:
                                        
 (A) Tangible common equity ratio:
                                        
         Total shareholders' equity
   $ 2,834,419     $ 2,750,468     $ 2,732,592     $ 2,667,717     $ 2,576,133  
         Less:  Goodwill and intangible assets, net
     (345,246 )     (345,820 )     (346,716 )     (347,611 )     (348,507 )
         Tangible common equity
   $ 2,489,173     $ 2,404,648     $ 2,385,876     $ 2,320,106     $ 2,227,626  
                                         
         Total assets
   $ 25,884,173     $ 25,493,946     $ 25,066,265     $ 24,238,182     $ 23,701,023  
         Less:  Goodwill and intangible assets, net
     (345,246 )     (345,820 )     (346,716 )     (347,611 )     (348,507 )
    $ 25,538,927     $ 25,148,126     $ 24,719,549     $ 23,890,571     $ 23,352,516  
         Tangible common equity ratio
     9.75 %     9.56 %     9.65 %     9.71 %     9.54 %
                                         
 (B) Tier 1 common equity ratio:
                                        
         Tier 1 capital
   $ 2,344,779     $ 2,295,061     $ 2,248,743     $ 2,188,199     $ 2,129,998  
         Less:  Non-controlling interest
     (35,982 )     (36,184 )     (34,958 )     (24,457 )     (21,555 )
         Tier 1 common equity
   $ 2,308,797     $ 2,258,877     $ 2,213,785     $ 2,163,742     $ 2,108,443  
                                         
         Risk weighted assets
   $ 17,993,379     $ 17,291,105     $ 17,106,533     $ 16,452,305     $ 16,416,387  
                                         
         Tier 1 common equity ratio
     12.83 %     13.06 %     12.94 %     13.15 %     12.84 %
 
 
 QUARTERLY EARNINGS TRENDS - UNAUDITED
                              
 BOK FINANCIAL CORPORATION
                              
 (In thousands, except ratio and per share data)
                              
                 Quarter Ended              
   
March 31,
    
December 31,
    
September 30,
    
June 30,
    
March 31,
  
   
2012
    
2011
    
2011
    
2011
    
2011
  
                               
 Interest revenue
   $ 198,208     $ 198,040     $ 205,749     $ 205,717     $ 202,089  
 Interest expense
     24,639       26,570       30,365       31,716       31,450  
 Net interest revenue
     173,569       171,470       175,384       174,001       170,639  
 Provision for (reduction of) allowances for credit losses
     –       (15,000 )     –       2,700       6,250  
 Net interest revenue after
                                        
   provision for credit losses
     173,569       186,470       175,384       171,301       164,389  
                                         
 Other operating revenue
                                        
   Brokerage and trading revenue
     31,111       25,629       29,451       23,725       25,376  
   Transaction card revenue
     25,430       25,960       31,328       31,024       28,445  
   Trust fees and commissions
     18,438       17,865       17,853       19,150       18,422  
   Deposit service charges and fees
     24,379       24,921       24,614       23,857       22,480  
   Mortgage banking revenue
     33,078       25,438       29,493       19,356       17,356  
   Bank-owned life insurance
     2,871       2,784       2,761       2,872       2,863  
   Other revenue
     9,027       9,189       10,535       7,842       8,332  
  Total fees and commissions
     144,334       131,786       146,035       127,826       123,274  
   Gain (loss) on other assets, net
     (356 )     1,897       712       3,344       (68 )
   Gain (loss) on derivatives, net
     (2,473 )     (174 )     4,048       1,225       (2,413 )
   Gain (loss) on fair value option securities, net
     (1,733 )     222       17,788       9,921       (3,518 )
   Gain on available for sale securities, net
     4,331       7,080       16,694       5,468       4,902  
   Total other-than-temporary impairment losses
     (505 )     (1,037 )     (9,467 )     (74 )     –  
   Portion of loss recognized in (reclassified from)
                                        
     other comprehensive income
     (3,217 )     (1,747 )     (1,833 )     (4,750 )     (4,599 )
   Net impairment losses recognized in earnings
     (3,722 )     (2,784 )     (11,300 )     (4,824 )     (4,599 )
   Total other operating revenue
     140,381       138,027       173,977       142,960       117,578  
                                         
 Other operating expense
                                        
   Personnel
     114,769       121,129       103,260       105,603       99,994  
   Business promotion
     4,388       5,868       5,280       4,777       4,624  
   Contribution to BOKF Charitable Foundation
     –       –       4,000       –       –  
   Professional fees and services
     7,599       7,664       7,418       6,258       7,458  
   Net occupancy and equipment
     16,023       16,826       16,627       15,554       15,604  
   Insurance
     3,866       3,636       2,206       4,771       6,186  
   Data processing and communications
     22,144       26,599       24,446       24,428       22,503  
   Printing, postage and supplies
     3,311       3,637       3,780       3,586       3,082  
   Net losses and operating expenses
                                        
     of repossessed assets
     2,245       6,180       5,939       5,859       6,015  
   Amortization of intangible assets
     575       895       896       896       896  
   Mortgage banking costs
     7,573       10,154       9,349       8,968       6,471  
   Change in fair value of mortgage servicing rights
     (7,127 )     5,261       24,822       13,493       (3,129 )
   Visa retrospective responsibility obligation
     -       -       -       -       -  
   Other expense
     9,871       11,348       12,873       9,016       8,745  
 Total other operating expense
     185,237       219,197       220,896       203,209       178,449  
                                         
 Net income before taxes
     128,713       105,300       128,465       111,052       103,518  
 Federal and state income taxes
     45,520       37,396       43,006       39,357       38,752  
                                         
 Net income
     83,193       67,904       85,459       71,695       64,766  
 Net income (loss) attributable to non-controlling interest
     (422 )     911       358       2,688       (8 )
                                         
 Net income attributable to BOK Financial Corporation
   $ 83,615     $ 66,993     $ 85,101     $ 69,007     $ 64,774  
                                         
 Average shares outstanding:
                                        
    Basic
     67,665,300       67,526,009       67,827,591       67,898,483       67,901,722  
    Diluted
     67,941,895       67,774,721       68,037,419       68,169,485       68,176,527  
                                         
 Net income per share:
                                        
   Basic
   $ 1.22     $ 0.98     $ 1.24     $ 1.01     $ 0.95  
   Diluted
   $ 1.22     $ 0.98     $ 1.24     $ 1.00     $ 0.94  
 
 
LOANS BY PRINCIPAL MARKET AREA - UNAUDITED
                          
 BOK FINANCIAL CORPORATION
                              
 (In thousands)
                              
                 Quarter Ended              
   
March 31,
    
December 31,
    
September 30,
    
June 30,
    
March 31,
  
   
2012
    
2011
    
2011
    
2011
    
2011
  
                               
Oklahoma:
                              
    Commercial
   $ 2,953,637     $ 2,697,623     $ 2,807,979     $ 2,594,502     $ 2,618,045  
    Commercial real estate
     667,503       600,703       624,990       619,201       661,254  
    Residential mortgage
     1,436,766       1,429,069       1,366,953       1,309,110       1,219,237  
    Consumer
     210,361       236,056       248,851       267,550       291,412  
        Total Oklahoma
     5,268,267       4,963,451       5,048,773       4,790,363       4,789,948  
                                         
Texas:
                                        
    Commercial
     2,304,162       2,214,462       2,069,117       2,003,847       1,916,270  
    Commercial real estate
     812,209       830,831       741,984       711,906       687,817  
    Residential mortgage
     259,173       266,050       273,025       282,934       283,925  
    Consumer
     123,604       126,280       133,286       140,044       141,199  
        Total Texas
     3,499,148       3,437,623       3,217,412       3,138,731       3,029,211  
                                         
New Mexico:
                                        
    Commercial
     274,224       252,367       269,690       280,306       262,597  
    Commercial real estate
     282,966       316,853       314,701       311,565       326,104  
    Residential mortgage
     104,495       100,581       93,444       95,021       90,466  
    Consumer
     18,185       18,519       18,142       18,536       19,242  
        Total New Mexico
     679,870       688,320       695,977       705,428       698,409  
                                         
Arkansas:
                                        
    Commercial
     74,364       86,111       89,262       74,677       75,889  
    Commercial real estate
     129,980       127,687       124,393       121,286       124,875  
    Residential mortgage
     13,778       14,511       14,428       13,939       14,114  
    Consumer
     28,932       36,061       44,163       52,439       61,746  
        Total Arkansas
     247,054       264,370       272,246       262,341       276,624  
                                         
Colorado:
                                        
    Commercial
     555,703       559,127       508,222       515,829       514,100  
    Commercial real estate
     143,753       153,855       188,659       167,414       172,416  
    Residential mortgage
     60,527       64,437       65,327       66,985       67,975  
    Consumer
     19,813       21,651       22,024       19,507       20,145  
        Total Colorado
     779,796       799,070       784,232       769,735       774,636  
                                         
Arizona:
                                        
    Commercial
     284,353       288,536       283,867       291,515       251,390  
    Commercial real estate
     178,633       192,731       222,249       205,269       213,442  
    Residential mortgage
     73,704       82,202       85,243       86,415       89,384  
    Consumer
     5,381       5,505       6,625       6,772       5,266  
        Total Arizona
     542,071       568,974       597,984       589,971       559,482  
                                         
Kansas / Missouri:
                                        
    Commercial
     496,198       473,228       447,552       417,920       409,966  
    Commercial real estate
     49,059       57,249       42,926       47,074       37,074  
    Residential mortgage
     12,445       13,611       13,476       13,593       12,220  
    Consumer
     3,536       3,847       3,991       2,388       2,265  
        Total Kansas / Missouri
     561,238       547,935       507,945       480,975       461,525  
                                         
TOTAL BOK FINANCIAL
   $ 11,577,444     $ 11,269,743     $ 11,124,569     $ 10,737,544     $ 10,589,835  
 
 
DEPOSITS BY PRINCIPAL MARKET AREA - UNAUDITED
                          
 BOK FINANCIAL CORPORATION
                              
 (In thousands)
                              
                 Quarter Ended              
   
March 31,
    
December 31,
    
September 30,
    
June 30,
    
March 31,
  
   
2012
    
2011
    
2011
    
2011
    
2011
  
                               
Oklahoma:
                              
    Demand
   $ 3,445,424     $ 3,223,201     $ 2,953,410     $ 2,486,671     $ 2,420,210  
    Interest-bearing:
                                        
       Transaction
     5,889,625       6,050,986       6,038,770       5,916,784       6,068,304  
       Savings
     148,556       126,763       122,829       120,278       120,020  
       Time
     1,370,868       1,450,571       1,489,486       1,462,137       1,465,506  
    Total interest-bearing
     7,409,049       7,628,320       7,651,085       7,499,199       7,653,830  
Total Oklahoma
     10,854,473       10,851,521       10,604,495       9,985,870       10,074,040  
                                         
Texas:
                                        
    Demand
     1,876,133       1,808,491       1,710,315       1,528,772       1,405,892  
    Interest-bearing:
                                        
       Transaction
     1,734,655       1,940,819       1,820,116       1,741,176       1,977,850  
       Savings
     50,331       45,872       42,272       42,185       40,313  
       Time
     789,860       867,664       938,200       992,366       1,015,754  
    Total interest-bearing
     2,574,846       2,854,355       2,800,588       2,775,727       3,033,917  
Total Texas
     4,450,979       4,662,846       4,510,903       4,304,499       4,439,809  
                                         
New Mexico:
                                        
    Demand
     333,707       319,269       325,612       299,305       282,708  
    Interest-bearing:
                                        
       Transaction
     503,015       491,068       480,816       483,026       498,355  
       Savings
     32,688       27,487       26,127       24,613       24,455  
       Time
     392,234       410,722       431,436       449,618       453,580  
    Total interest-bearing
     927,937       929,277       938,379       957,257       976,390  
Total New Mexico
     1,261,644       1,248,546       1,263,991       1,256,562       1,259,098  
                                         
Arkansas:
                                        
    Demand
     22,843       18,513       21,809       17,452       15,144  
    Interest-bearing:
                                        
       Transaction
     151,708       131,181       181,486       138,954       130,613  
       Savings
     2,358       1,727       1,735       1,673       1,514  
       Time
     54,157       61,329       74,163       82,112       94,889  
    Total interest-bearing
     208,223       194,237       257,384       222,739       227,016  
Total Arkansas
     231,066       212,750       279,193       240,191       242,160  
                                         
Colorado:
                                        
    Demand
     311,057       272,565       217,394       196,915       197,579  
    Interest-bearing:
                                        
       Transaction
     476,718       511,993       520,743       509,738       528,948  
       Savings
     23,409       22,771       22,599       21,406       21,655  
       Time
     498,124       523,969       547,481       563,642       546,586  
    Total interest-bearing
     998,251       1,058,733       1,090,823       1,094,786       1,097,189  
Total Colorado
     1,309,308       1,331,298       1,308,217       1,291,701       1,294,768  
                                         
Arizona:
                                        
    Demand
     131,539       106,741       138,971       150,194       106,880  
    Interest-bearing:
                                        
       Transaction
     95,010       104,961       101,933       107,961       102,089  
       Savings
     1,772       1,192       1,366       1,364       984  
       Time
     34,199       37,641       40,007       44,619       50,060  
    Total interest-bearing
     130,981       143,794       143,306       153,944       153,133  
Total Arizona
     262,520       250,535       282,277       304,138       260,013  
                                         
Kansas / Missouri:
                                        
    Demand
     68,469       51,004       46,773       46,668       28,774  
    Interest-bearing:
                                        
       Transaction
     57,666       123,449       108,973       115,684       222,705  
       Savings
     505       545       503       358       323  
       Time
     26,657       30,086       33,697       40,206       51,236  
    Total interest-bearing
     84,828       154,080       143,173       156,248       274,264  
Total Kansas / Missouri
     153,297       205,084       189,946       202,916       303,038  
                                         
TOTAL BOK FINANCIAL
   $ 18,523,287     $ 18,762,580     $ 18,439,022     $ 17,585,877     $ 17,872,926  
 
 
 NET INTEREST MARGIN TREND - UNAUDITED
                  
 BOK FINANCIAL CORPORATION
                  
 
 
         Quarter Ended        
 
 March 31,
  
 December 31,
 September 30,
  
 June 30,
  
 March 31,
 
2012
  
2011
  
2011
  
2011
  
2011
TAX-EQUIVALENT ASSETS YIELDS
                  
Funds sold and resell agreements
0.07%
  
0.10%
  
0.16%
  
0.14%
  
0.08%
Trading securities
1.88%
  
2.79%
  
2.85%
  
2.92%
  
3.84%
Investment securities:
                  
    Taxable (A)
5.89%
  
5.91%
  
5.63%
  
6.13%
  
6.15%
    Tax-exempt (A)
4.87%
  
4.81%
  
4.94%
  
4.82%
  
4.88%
Total investment securities (A)
5.59%
  
5.59%
  
5.35%
  
5.49%
  
5.46%
Available for sale securities:
                  
    Taxable (A)
2.48%
  
2.36%
  
2.82%
  
3.02%
  
3.15%
    Tax-exempt (A)
5.17%
  
5.14%
  
4.92%
  
5.12%
  
5.68%
Total available for sale securities (A)
2.50%
  
2.38%
  
2.83%
  
3.04%
  
3.17%
Fair value option securities
2.79%
  
2.98%
  
3.66%
  
4.42%
  
3.74%
Residential mortgage loans held for sale
3.90%
  
4.01%
  
4.09%
  
4.48%
  
4.33%
Loans
4.50%
  
4.65%
  
4.71%
  
4.69%
  
4.75%
Less allowance for loan losses
                        –
  
                       –
  
                           –
  
                       –
  
                       –
Loans, net of allowance
4.61%
  
4.76%
  
4.84%
  
4.82%
  
4.89%
Total tax-equivalent yield on earning assets (A)
3.64%
  
3.69%
  
3.91%
  
4.01%
  
4.10%
COST OF INTEREST-BEARING LIABILITIES
                  
Interest-bearing deposits:
                  
  Interest-bearing transaction
0.17%
  
0.18%
  
0.23%
  
0.27%
  
0.32%
  Savings
0.24%
  
0.26%
  
0.34%
  
0.39%
  
0.37%
  Time
1.68%
  
1.70%
  
1.84%
  
1.86%
  
1.82%
Total interest-bearing deposits
0.55%
  
0.59%
  
0.68%
  
0.71%
  
0.72%
Funds purchased
0.09%
  
0.06%
  
0.05%
  
0.09%
  
0.16%
Repurchase agreements
0.09%
  
0.13%
  
0.17%
  
0.20%
  
0.40%
Other borrowings
5.58%
  
4.75%
  
5.26%
  
4.76%
  
1.31%
Subordinated debt
5.62%
  
5.61%
  
5.60%
  
5.57%
  
5.67%
Total cost of interest-bearing liabilities
0.63%
  
0.66%
  
0.76%
  
0.81%
  
0.80%
Tax-equivalent net interest revenue spread
3.01%
  
3.03%
  
3.15%
  
3.20%
  
3.30%
Effect of noninterest-bearing funding sources and other
0.18%
  
0.17%
  
0.19%
  
0.20%
  
0.17%
Tax-equivalent net interest margin
3.19%
  
3.20%
  
3.34%
  
3.40%
  
3.47%
                   
 (A) Yield calculations exclude security trades that have been recorded on trade date with no corresponding interest income.
 
 
 CREDIT QUALITY INDICATORS
                              
 BOK FINANCIAL CORPORATION
                              
 (In thousands, except ratios)
                Quarter Ended              
   
March 31,
    
December 31,
    
September 30,
    
June 30,
    
March 31,
  
   
2012
    
2011
    
2011
    
2011
    
2011
  
                               
 Nonperforming assets:
                              
   Nonaccruing loans:
                              
       Commercial
   $ 61,750     $ 68,811     $ 83,736     $ 53,365     $ 57,449  
       Commercial real estate
     86,475       99,193       110,048       110,363       125,504  
       Residential mortgage
     27,462       29,767       31,731       31,693       37,824  
       Consumer
     7,672       3,515       3,960       4,749       5,185  
   Total nonaccruing loans
     183,359       201,286       229,475       200,170       225,962  
   Renegotiated loans (A)
     36,764       32,893       30,477       22,261       21,705  
   Real estate and other repossessed assets
     115,790       122,753       127,943       129,026       131,420  
       Total nonperforming assets
   $ 335,913     $ 356,932     $ 387,895     $ 351,457     $ 379,087  
                                         
 Nonaccruing loans by principal market:
                                        
    Oklahoma
   $ 64,097     $ 65,261     $ 73,794     $ 41,411     $ 49,585  
    Texas
     29,745       28,083       29,783       32,385       34,404  
    New Mexico
     15,029       15,297       17,242       17,244       17,510  
    Arkansas
     18,066       23,450       26,831       24,842       29,769  
    Colorado
     28,990       33,522       36,854       37,472       40,629  
    Arizona
     27,397       35,673       44,929       43,307       54,065  
    Kansas / Missouri
     35       -       42       3,509       -  
       Total nonaccruing loans
   $ 183,359     $ 201,286     $ 229,475     $ 200,170     $ 225,962  
                                         
 Nonaccruing loans by loan portfolio sector:
                                        
 Commercial:
                                        
    Energy
   $ 336     $ 336     $ 3,900     $ 345     $ 415  
    Manufacturing
     23,402       23,051       27,691       4,366       4,545  
    Wholesale / retail
     15,388       21,180       27,088       25,138       30,411  
    Integrated food services
     –       –       –       –       6  
    Services
     12,890       16,968       18,181       16,254       15,720  
    Healthcare
     7,946       5,486       5,715       5,962       2,574  
    Other commercial and industrial
     1,788       1,790       1,161       1,300       3,778  
       Total commercial
     61,750       68,811       83,736       53,365       57,449  
 Commercial real estate:
                                        
    Construction and land development
     52,416       61,874       72,207       76,265       90,707  
    Retail
     6,193       6,863       6,492       4,642       5,276  
    Office
     10,733       11,457       11,967       11,473       14,628  
    Multifamily
     3,414       3,513       4,036       4,717       1,900  
    Industrial
     –       –       –       –       –  
     Other commercial real estate
     13,719       15,486       15,346       13,266       12,993  
       Total commercial real estate
     86,475       99,193       110,048       110,363       125,504  
 Residential mortgage:
                                        
    Permanent mortgage
     22,822       25,366       27,486       27,991       33,466  
    Home equity
     4,640       4,401       4,245       3,702       4,358  
       Total residential mortgage
     27,462       29,767       31,731       31,693       37,824  
 Consumer
     7,672       3,515       3,960       4,749       5,185  
       Total nonaccruing loans
   $ 183,359     $ 201,286     $ 229,475     $ 200,170     $ 225,962  
 
                                        
 Performing loans 90 days past due (B)
   $ 6,140     $ 2,498     $ 1,401     $ 2,341     $ 8,043  
                                         
 Gross charge-offs
   $ 13,674     $ 14,771     $ 14,023     $ 12,774     $ 15,232  
 Recoveries
     5,189       5,311       3,869       4,256       4,914  
 Net charge-offs
   $ 8,485     $ 9,460     $ 10,154     $ 8,518     $ 10,318  
                                         
 Provision for (reduction of) allowances for credit losses
   $ –     $ (15,000 )   $ –     $ 2,700     $ 6,250  
                                         
 Allowance for loan losses to period end loans
     2.11 %     2.25 %     2.44 %     2.67 %     2.73 %
 Combined allowance for credit losses to period end loans
     2.20 %     2.33 %     2.58 %     2.77 %     2.86 %
 Nonperforming assets to period end loans
    and repossessed assets
     2.87 %     3.13 %     3.45 %     3.23 %     3.54 %
 Net charge-offs (annualized) to average loans
     0.30 %     0.34 %     0.37 %     0.32 %     0.39 %
 Allowance for loan losses to nonaccruing loans
     133.19 %     125.93 %     118.29 %     143.18 %     128.14 %
 Combined allowance for credit losses to nonaccruing loans
     138.24 %     130.53 %     125.16 %     148.55 %     134.17 %
 
                                        
 (A) includes residential mortgage loans guaranteed by
   $ 32,770     $ 28,974     $ 26,670     $ 18,716     $ 18,304  
        agencies of the U.S. government.  These loans
                                        
        have been modified to extend payment terms and/or
                                        
        reduce interest rates to current market.
                                        
                                         
 (B) Excludes residential mortgage loans guaranteed by
                                        
       agencies of the U.S. government