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Derivatives
 3 Months Ended
Mar. 31, 2017
Derivative Instrument Detail [Abstract]  
Derivatives [Text Block]
Derivatives
 
Derivative instruments may be used by the Company as part of its internal risk management programs or may be offered to customers. All derivative instruments are carried at fair value and changes in fair value are reported in earnings as they occur. Credit risk is also considered in determining fair value.

When bilateral netting agreements or similar arrangements exist between the Company and its counterparties that create a single legal claim or obligation to pay or receive the net amount in settlement of the individual derivative contracts, the Company reports derivative assets and liabilities on a net by derivative contract type by counterparty basis.

Derivative contracts may require the Company to provide or receive cash margin as collateral for derivative assets and liabilities. Derivative assets and liabilities are reported net of cash margin when certain conditions are met. In addition, derivative contracts executed with customers under Customer Risk Management Programs may be secured by non-cash collateral in conjunction with a credit agreement with that customer. Access to collateral, in the event of default is reasonably assured. As of March 31, 2017, a decrease in BOK Financial's credit rating to below investment grade would increase our obligation to post cash margin on existing contracts by approximately $10 million.
 
None of these derivative contracts have been designated as hedging instruments for accounting purposes.

Customer Risk Management Programs
 
BOK Financial offers programs to permit its customers to manage various risks, including fluctuations in energy, cattle and other agricultural products, interest rates and foreign exchange rates with derivative contracts. Customers may also manage interest rate risk through interest rate swaps used by borrowers to modify interest rate terms of their loans or to-be-announced securities used by mortgage banking customers to hedge their loan production. Derivative contracts are executed between the customers and BOK Financial. Offsetting contracts are executed between BOK Financial and other selected counterparties to minimize the risk of changes in commodity prices, interest rates or foreign exchange rates. The counterparty contracts are identical to customer contracts, except for a fixed pricing spread or fee paid to BOK Financial as profit and compensation for administrative costs and credit risk which is recognized over the life of the contracts and included in other operating revenue – brokerage and trading revenue in the Consolidated Statements of Earnings.
 
Internal Risk Management Programs
 
BOK Financial may use derivative contracts in managing its interest rate sensitivity, as part of its economic hedge of the change in the fair value of mortgage servicing rights and as an economic hedge of trading securities. As of March 31, 2017, derivative contracts under the internal risk management programs were primarily used as part of the economic hedges of the change in the fair value of the mortgage servicing rights and trading securities.

As discussed in Note 6, certain derivative contracts not designated as hedging instruments related to mortgage loan commitments and forward sales contracts are included in Residential mortgage loans held for sale on the Consolidated Balance Sheets. See Note 6 for additional discussion of notional, fair value and impact on earnings of these contracts.
The following table summarizes the fair values of derivative contracts recorded as “derivative contracts” assets and liabilities in the balance sheet at March 31, 2017 (in thousands):
 
 
Assets
 
 
Notional1
 
Gross Fair Value
 
Netting Adjustments
 
Net Fair Value Before Cash Collateral
 
Cash Collateral
 
Fair Value Net of Cash Collateral
Customer risk management programs:
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate contracts
 
 
 
 
 
 
 
 
 
 
 
 
To-be-announced residential mortgage-backed securities
 
$
14,549,828

 
$
80,272

 
$
(33,143
)
 
$
47,129

 
$
—

 
$
47,129

Interest rate swaps
 
1,491,414

 
32,286

 
—

 
32,286

 
(3,349
)
 
28,937

Energy contracts
 
886,699

 
42,598

 
(28,455
)
 
14,143

 
(543
)
 
13,600

Agricultural contracts
 
51,679

 
2,031

 
(786
)
 
1,245

 
—

 
1,245

Foreign exchange contracts
 
211,837

 
204,774

 
—

 
204,774

 
(72
)
 
204,702

Equity option contracts
 
99,031

 
4,505

 
—

 
4,505

 
(920
)
 
3,585

Total customer risk management programs
 
17,290,488

 
366,466

 
(62,384
)
 
304,082

 
(4,884
)
 
299,198

Internal risk management programs
 
2,756,963

 
5,529

 
—

 
5,529

 
—

 
5,529

Total derivative contracts
 
$
20,047,451

 
$
371,995

 
$
(62,384
)
 
$
309,611

 
$
(4,884
)
 
$
304,727

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
Notional¹
 
Gross Fair Value
 
Netting Adjustments
 
Net Fair Value Before Cash Collateral
 
Cash Collateral
 
Fair Value Net of Cash Collateral
Customer risk management programs:
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate contracts
 
 
 
 
 
 
 
 
 
 
 
 
To-be-announced residential mortgage-backed securities
 
$
14,322,223

 
$
76,971

 
$
(33,143
)
 
$
43,828

 
$
(34,310
)
 
$
9,518

Interest rate swaps
 
1,491,414

 
33,036

 
—

 
33,036

 
—

 
33,036

Energy contracts
 
844,406

 
40,604

 
(28,455
)
 
12,149

 
(258
)
 
11,891

Agricultural contracts
 
51,509

 
2,015

 
(786
)
 
1,229

 
(1,040
)
 
189

Foreign exchange contracts
 
208,236

 
201,043

 
—

 
201,043

 
(3,726
)
 
197,317

Equity option contracts
 
99,031

 
4,505

 
—

 
4,505

 
—

 
4,505

Total customer risk management programs
 
17,016,819

 
358,174

 
(62,384
)
 
295,790

 
(39,334
)
 
256,456

Internal risk management programs
 
1,090,867

 
19,966

 
—

 
19,966

 
—

 
19,966

Total derivative contracts
 
$
18,107,686

 
$
378,140

 
$
(62,384
)
 
$
315,756

 
$
(39,334
)
 
$
276,422

1 
Notional amounts for commodity contracts are converted into dollar-equivalent amounts based on dollar prices at the inception of the contract.


The following table summarizes the fair values of derivative contracts recorded as “derivative contracts” assets and liabilities in the balance sheet at December 31, 2016 (in thousands):

 
 
Assets
 
 
Notional 1
 
Gross Fair Value
 
Netting Adjustments
 
Net Fair Value Before Cash Collateral
 
Cash Collateral
 
Fair Value Net of Cash Collateral
Customer risk management programs:
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate contracts
 
 
 
 
 
 
 
 
 
 
 
 
To-be-announced residential mortgage-backed securities
 
$
16,949,152

 
$
180,695

 
$
(60,555
)
 
$
120,140

 
$
—

 
$
120,140

Interest rate swaps
 
1,403,408

 
34,442

 
—

 
34,442

 
(4,567
)
 
29,875

Energy contracts
 
835,566

 
64,140

 
(28,298
)
 
35,842

 
(71
)
 
35,771

Agricultural contracts
 
53,209

 
1,382

 
(515
)
 
867

 
—

 
867

Foreign exchange contracts
 
580,886

 
494,349

 
—

 
494,349

 
(5,183
)
 
489,166

Equity option contracts
 
100,924

 
4,357

 
—

 
4,357

 
(730
)
 
3,627

Total customer risk management programs
 
19,923,145

 
779,365

 
(89,368
)
 
689,997

 
(10,551
)
 
679,446

Internal risk management programs
 
2,514,169

 
10,426

 
—

 
10,426

 
—

 
10,426

Total derivative contracts
 
$
22,437,314

 
$
789,791

 
$
(89,368
)
 
$
700,423

 
$
(10,551
)
 
$
689,872

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
Notional 1
 
Gross Fair Value
 
Netting Adjustments
 
Net Fair Value Before Cash Collateral
 
Cash Collateral
 
Fair Value Net of Cash Collateral
Customer risk management programs:
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate contracts
 
 
 
 
 
 
 
 
 
 
 
 
To-be-announced residential mortgage-backed securities
 
$
16,637,532

 
$
176,928

 
$
(60,555
)
 
$
116,373

 
$
—

 
$
116,373

Interest rate swaps
 
1,403,408

 
34,442

 
—

 
34,442

 
(11,977
)
 
22,465

Energy contracts
 
820,365

 
64,306

 
(28,298
)
 
36,008

 
(31,534
)
 
4,474

Agricultural contracts
 
53,216

 
1,365

 
(515
)
 
850

 
(769
)
 
81

Foreign exchange contracts
 
580,712

 
494,695

 
—

 
494,695

 
(3,630
)
 
491,065

Equity option contracts
 
100,924

 
4,357

 
—

 
4,357

 
—

 
4,357

Total customer risk management programs
 
19,596,157

 
776,093

 
(89,368
)
 
686,725

 
(47,910
)
 
638,815

Internal risk management programs
 
2,582,202

 
25,716

 
—

 
25,716

 
—

 
25,716

Total derivative contracts
 
$
22,178,359

 
$
801,809

 
$
(89,368
)
 
$
712,441

 
$
(47,910
)
 
$
664,531

1 
Notional amounts for commodity contracts are converted into dollar-equivalent amounts based on dollar prices at the inception of the contract.




The following table summarizes the fair values of derivative contracts recorded as “derivative contracts” assets and liabilities in the balance sheet at March 31, 2016 (in thousands):
 
 
Assets
 
 
Notional1
 
Gross Fair Value
 
Netting Adjustments
 
Net Fair Value Before Cash Collateral
 
Cash Collateral
 
Fair Value Net of Cash Collateral
Customer risk management programs:
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate contracts
 
 
 
 
 
 
 
 
 
 
 
 
To-be-announced residential mortgage-backed securities
 
$
16,235,517

 
$
111,188

 
$
(44,570
)
 
$
66,618

 
$
—

 
$
66,618

Interest rate swaps
 
1,335,259

 
48,270

 
—

 
48,270

 
—

 
48,270

Energy contracts
 
533,355

 
62,365

 
(21,374
)
 
40,991

 
(11,340
)
 
29,651

Agricultural contracts
 
104,927

 
1,859

 
(1,175
)
 
684

 
—

 
684

Foreign exchange contracts
 
682,457

 
639,322

 
—

 
639,322

 
(4,970
)
 
634,352

Equity option contracts
 
128,623

 
4,006

 
—

 
4,006

 
(376
)
 
3,630

Total customer risk management programs
 
19,020,138

 
867,010

 
(67,119
)
 
799,891

 
(16,686
)
 
783,205

Internal risk management programs
 
772,000

 
6,941

 
—

 
6,941

 
—

 
6,941

Total derivative contracts
 
$
19,792,138

 
$
873,951

 
$
(67,119
)
 
$
806,832

 
$
(16,686
)
 
$
790,146

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
Notional1
 
Gross Fair Value
 
Netting Adjustments
 
Net Fair Value Before Cash Collateral
 
Cash Collateral
 
Fair Value Net of Cash Collateral
Customer risk management programs:
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate contracts
 
 
 
 
 
 
 
 
 
 
 
 
To-be-announced residential mortgage-backed securities
 
$
16,323,807

 
$
107,541

 
$
(44,570
)
 
$
62,971

 
$
(61,380
)
 
$
1,591

Interest rate swaps
 
1,335,259

 
48,619

 
—

 
48,619

 
(28,572
)
 
20,047

Energy contracts
 
526,103

 
62,528

 
(21,374
)
 
41,154

 
—

 
41,154

Agricultural contracts
 
104,922

 
1,847

 
(1,175
)
 
672

 
(420
)
 
252

Foreign exchange contracts
 
682,354

 
638,892

 
—

 
638,892

 
(364
)
 
638,528

Equity option contracts
 
128,623

 
4,006

 
—

 
4,006

 
—

 
4,006

Total customer risk management programs
 
19,101,068

 
863,433

 
(67,119
)
 
796,314

 
(90,736
)
 
705,578

Internal risk management programs
 
—

 
—

 
—

 
—

 
—

 
—

Total derivative contracts
 
$
19,101,068

 
$
863,433

 
$
(67,119
)
 
$
796,314

 
$
(90,736
)
 
$
705,578

1 
Notional amounts for commodity contracts are converted into dollar-equivalent amounts based on dollar prices at the inception of the contract.






The following summarizes the pre-tax net gains (losses) on derivative instruments and where they are recorded in the income statement (in thousands):
 
 
Three Months Ended
 
 
March 31, 2017
 
March 31, 2016
 
 
Brokerage
and Trading Revenue
 
Gain (Loss) on Derivatives, Net
 
Brokerage
and Trading
Revenue
 
Gain (Loss)on Derivatives, Net
Customer risk management programs:
 
 
 
 
 
 
 
 
Interest rate contracts
 
 
 
 
 
 
 
 
To-be-announced residential mortgage-backed securities
 
$
8,027

 
$
—

 
$
7,440

 
$
—

Interest rate swaps
 
459

 
—

 
325

 
—

Energy contracts
 
2,873

 
—

 
696

 
—

Agricultural contracts
 
9

 
—

 
29

 
—

Foreign exchange contracts
 
270

 
—

 
378

 
—

Equity option contracts
 
—

 
—

 
—

 
—

Total customer risk management programs
 
11,638

 
—

 
8,868

 
—

Interest risk management programs
 
(467
)
 
(450
)
 
—

 
7,138

Total derivative contracts
 
$
11,171

 
$
(450
)
 
$
8,868

 
$
7,138