EX-99 2 a20210331bokfex99.htm EX-99 Document


Exhibit 99(a)
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                                                    NASD: BOKF
BOK Financial Corporation Reports Quarterly Earnings of $146 million or $2.10 Per Share in the First Quarter
CEO Commentary
Steven G. Bradshaw, president and chief executive officer stated, "Not since the energy downturn in 2016 have we had an opportunity to demonstrate how valuable our organization's differentiated credit culture is to shareholder outcomes. Exceptional credit outcomes coupled with improving economic metrics led us to release $25 million in reserves in the quarter. This is a testament not only to how well we've managed the ongoing crisis, but more importantly, our ability to remain disciplined with credit decisions in more favorable parts of the cycle."

Bradshaw continued, "While loan growth remains challenged industry-wide during a time of unprecedented liquidity and heightened uncertainty, BOK Financial Corporation remains focused on the long-term. We have a longstanding track record of loan growth outpacing U.S. GDP growth, and with the economic recovery underway, we see a clear path to growing loans this year. With substantial capital levels, a strong competitive position and a favorable footprint, we remain confident in our ability to serve both our clients and our shareholders well in 2021.

As always, we are closely monitoring our expense levels, striving for balance between expense reductions and containment while keeping our level of long term investments in people and technology a top priority. We believe the company is extremely well positioned to attract and expand new relationships as the economy expands and further opens in 2021."

First Quarter 2021 Financial Highlights
•Net income was $146.1 million or $2.10 per diluted share for the first quarter of 2021 and $154.2 million or $2.21 per diluted share for the fourth quarter of 2020.
•Net interest revenue totaled $280.4 million, a decrease of $16.8 million. Net interest margin was 2.62 percent compared to 2.72 percent in the fourth quarter of 2020. A reduction in average outstanding loan balances and the timing of certain loan fees, combined with reinvestment of cash flows from our available for sale securities portfolio at current rates, led to lower net interest revenue and compressed net interest margin in the first quarter.
•Fees and commissions revenue totaled $162.2 million, a decrease of $18.9 million. Brokerage and trading revenue decreased $18.7 million, largely due to a decrease in trading volume and margin compression. While still strong, mortgage banking revenue decreased $2.2 million, primarily the result of increasing mortgage interest rates coupled with margin compression.
•Operating expense decreased $18.0 million to $282.6 million. Personnel expense decreased $3.2 million, primarily due to lower incentive compensation, partially offset by a seasonal increase in employee benefits expense. Non-personnel expense decreased $14.8 million primarily due to a gain on sale of repossessed oil and gas assets. Decreases in professional fees, business promotion, occupancy and equipment expense and other expenses were partially offset by an increase in data processing and communications expense.
•Period-end loans decreased $474 million to $22.5 billion at March 31, 2021, primarily due to paydowns of commercial loans and commercial real estate loans. Period-end Paycheck Protection Program ("PPP") loans increased $166 million to $1.8 billion. Average loans were $22.8 billion, a $691 million decrease compared to the fourth quarter of 2020.
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•Forecasts for improving macroeconomic factors as the pace of COVID-19 vaccinations accelerates and energy prices stabilize resulted in a $25.0 million negative provision for expected credit losses in the first quarter of 2021. A $6.5 million negative provision for expected credit losses was recorded in the prior quarter. The allowance for loan losses totaled $352 million or 1.70 percent of outstanding loans, excluding PPP loans, at March 31, 2021. The allowance for loan losses was $389 million or 1.82 percent of outstanding loans, excluding PPP loans, at December 31, 2020.
•Average deposits increased $1.0 billion to $36.5 billion and period-end deposits increased $1.7 billion to $37.9 billion, largely due to growth in commercial balances. Clients across all of our business segments continued to maintain higher deposit balances during this period of economic uncertainty, supplemented by inflows from government stimulus payments.
•The company's common equity Tier 1 capital ratio was 12.14 percent at March 31, 2021. In addition, the company's Tier 1 capital ratio was 12.21 percent, total capital ratio was 13.98 percent, and leverage ratio was 8.51 percent at March 31, 2021. At December 31, 2020, the company's common equity Tier 1 capital ratio was 11.95 percent, Tier 1 capital ratio was 11.95 percent, total capital ratio was 13.82 percent, and leverage ratio was 8.28 percent.
•The company repurchased 260,000 shares of common stock at an average price of $77.20 a share in the first quarter of 2021.
•Commercial Banking contributed $69.7 million to net income, a decrease of $5.3 million compared to the fourth quarter of 2020. Combined net interest revenue and fee revenue decreased $11.2 million. Net interest revenue decreased $12.0 million, primarily due to a reduction in outstanding loan balances, timing of certain loan fees, and lower yields on deposits sold to our Funds Management unit. Average Commercial Banking loans decreased $578 million due to purposeful deleveraging by our customers. Average Commercial deposits grew 5 percent to $16.1 billion in the first quarter.
•Consumer Banking contributed $6.8 million to net income in the first quarter of 2021, a decrease of $7.9 million compared to the fourth quarter of 2020. Combined net interest revenue and fee revenue decreased $12.7 million. Net interest revenue decreased $9.7 million, mainly due to lower yields on deposits sold to our Funds Management unit. Fees and commissions revenue decreased $3.0 million, largely due to reduced mortgage gain on sale margins. While mortgage production revenue decreased, mortgage production volumes remained strong in the first quarter.
•Wealth Management contributed $19.4 million to net income in the first quarter of 2021, a decrease of $9.1 million compared to the fourth quarter of 2020. Combined net interest revenue and fee revenue decreased $17.4 million. Net interest revenue was relatively consistent with the previous quarter. However, brokerage and trading revenue decreased $15.0 million due to narrowing margins and a reduction in trading volumes. While our agency residential mortgage trading activity has slowed from the record levels in 2020, combined net interest revenue and fee revenue has grown compared to the first quarter of 2020. Operating expense decreased $5.4 million, primarily due to incentive compensation costs related to decreased trading activity. Average Wealth Management loans grew by $78.3 million compared to the prior quarter while average deposits increased $116 million. Assets under management or administration totaled $92.0 billion compared to $91.6 billion in the prior quarter.
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Net Interest Revenue
Net interest revenue was $280.4 million for the first quarter of 2021, a $16.8 million decrease compared to the fourth quarter of 2020. The decrease in net interest revenue was primarily driven by lower average outstanding loan balances. Net interest margin was 2.62 percent compared to 2.72 percent in the fourth quarter of 2020. Reinvestment of cash flows from our available for sale securities portfolio to current interest rates and timing of PPP and other loan fees also contributed to a decrease in net interest revenue and net interest margin in the first quarter.
Average earning assets decreased $178 million compared to the fourth quarter of 2020. Average loan balances decreased $691 million, primarily from commercial and commercial real estate loan paydowns. Available for sale securities increased $484 million. Average interest-bearing deposits grew by $823 million, primarily due to higher interest-bearing transaction deposits in the wake of the most recent government stimulus program. Other borrowings decreased $1.8 billion while funds purchased and repurchase agreements increased $677 million.
The yield on average earning assets was 2.78 percent, a 14 basis point decrease from the prior quarter. The yield on the available for sale securities portfolio decreased 14 basis points to 1.84 percent. Cash flows received from these securities are currently being reinvested at 95 - 105 basis points. The loan portfolio yield decreased 13 basis points to 3.55 percent, largely due to the timing of certain loan fees, including Paycheck Protection Program loans.
Funding costs were 0.24 percent, down 4 basis points. The cost of other borrowed funds was down 8 basis points to 0.30 percent. The cost of interest-bearing deposits decreased 2 basis points to 0.17 percent. The benefit to net interest margin from assets funded by non-interest liabilities was 8 basis points for the first quarter of 2021, consistent with the prior quarter.
Fees and Commissions Revenue
Fees and commissions revenue totaled $162.2 million for the first quarter of 2021, a decrease of $18.9 million compared to the fourth quarter of 2020. Brokerage and trading revenue decreased $18.7 million to $20.8 million, including a $15.4 million reduction in trading revenue. Agency residential mortgage trading volumes have slowed from record levels in 2020 and margins compressed due to market conditions during the first quarter of 2021. In addition, customer hedging revenue decreased $2.1 million, primarily due to decreased energy customer hedging activities. Investment banking revenue decreased $2.1 million, mainly due to timing of loan syndication activity.
Mortgage banking revenue decreased $2.2 million compared to the prior quarter, down to a level comparable to the first quarter of 2020. While mortgage production volumes remained consistent with the prior quarter, mortgage interest rates began to increase and margins compressed. The gain on sale margin decreased 28 basis points to 2.98 percent.
Other revenue increased $2.1 million, primarily due to production revenue from repossessed oil and gas properties.

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Operating Expense
Total operating expense was $282.6 million for the first quarter of 2021, a decrease of $18.0 million compared to the fourth quarter of 2020.
Personnel expense decreased $3.2 million, led by a $10.3 million decrease in incentive compensation expense, partially offset by a $6.4 million seasonal increase in payroll taxes and retirement plan costs. Cash based incentive compensation expense decreased $8.2 million, primarily in relation to decreased trading revenue. Deferred compensation expense, which is largely offset by a decrease in the value of related investments included in Other gains (losses), net, decreased $3.4 million.
Non-personnel expense decreased $14.8 million compared to the fourth quarter of 2020. Net losses and expenses on repossessed assets decreased $7.8 million, largely due to $14.1 million gain on the sale of an equity interest received as part of the workout of a defaulted energy loan. Smaller reductions in expenses in professional fees and services, business promotion, and occupancy and equipment also supplemented the overall decrease in non-personnel expense. These were partially offset by a $2.4 million increase in data processing and communications expense as we continue to invest in technology.
We made a charitable contribution of $4.0 million in the first quarter and a contribution of $6.0 million in the prior quarter to the BOKF Foundation as we continue to focus on the communities we serve and the extreme needs created by the pandemic.
Loans, Deposits and Capital
Loans
Outstanding loans were $22.5 billion at March 31, 2021, a $474 million decrease compared to December 31, 2020, primarily due to payoffs of commercial and commercial real estate loans.
Outstanding commercial loan balances decreased $420 million or 3 percent compared to December 31, 2020. Borrowers continue to reduce leverage in this challenging economic environment. Although the primary source of repayment of our commercial loan portfolio is the on-going cash flow from operations of the customer's business, loans are generally governed by a borrowing base and secured by the customer’s assets.
Energy loan balances decreased $267 million to $3.2 billion or 14 percent of total loans. While commodity prices have continued to improve and stabilize, sourcing new loans sufficient to offset paydowns remains a challenge. The majority of this portfolio is first lien, senior secured, reserve-based lending to oil and gas producers, which we believe is the lowest risk form of energy lending. Approximately 66 percent of committed production loans are secured by properties primarily producing oil. The remaining 34 percent is secured by properties primarily producing natural gas. Unfunded energy loan commitments were $2.4 billion at March 31, 2021, consistent with December 31, 2020.
Healthcare sector loan balances were largely unchanged compared to the prior quarter, totaling $3.3 billion or 15 percent of total loans. Our healthcare sector loans primarily consist of $2.6 billion of senior housing and care facilities, including independent living, assisted living and skilled nursing. Generally we loan to borrowers with a portfolio of multiple facilities that serves to help diversify risks specific to a single facility. The most recent stimulus bill, like the CARES Act, has multiple revenue enhancement measures for both hospitals and skilled nursing facilities as they manage through the risks of the virus.
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General business loans decreased $51 million to $2.7 billion or 12 percent of total loans. General business loans include $1.5 billion of wholesale/retail loans and $1.2 billion of loans from other commercial industries.
Services loan balances decreased $87 million to $3.4 billion or 15 percent of total loans. Services loans consist of a large number of loans to a variety of businesses, including Native American tribal and state and local municipal government entities, Native American tribal casino operations, foundations and not-for-profit organizations, educational services and specialty trade contractors.
Commercial real estate loan balances decreased $195 million compared to December 31, 2020 and represent 20 percent of total loans at March 31, 2021. Multifamily residential loans, our largest exposure in commercial real estate, decreased $100 million to $1.2 billion at March 31, 2021. Loans secured by other commercial real estate properties decreased $74 million to $485 million. Loans secured by industrial facilities decreased $21 million to $789 million. Loans secured by retail facilities and office buildings were largely unchanged compared to December 31, 2020.
PPP loan balances increased $166 million to $1.8 billion or 8 percent of total loans. We originated $544 million of new PPP loans during the first quarter of 2021, maintaining our strategy of focusing on our existing client base to timely support our existing client needs. Growth from new originations was partially offset by paydowns from the first round of loans.
Loans to individuals decreased $25 million and represent 16 percent of total loans at March 31, 2021. Residential mortgage loans decreased $66 million. Personal loans were up $29 million and residential mortgage loans guaranteed by U.S. government agencies increased $11 million. The Company may repurchase loans previously sold into GNMA mortgage pools when certain defined delinquency criteria are met. Because of this repurchase right, we have regained effective control over these loans and must include them on the Consolidated Balance Sheet.
Deposits
Period-end deposits totaled $37.9 billion at March 31, 2021, a $1.7 billion increase over December 31, 2020. Continued deposit growth was due primarily to customers retaining higher balances in the current economic environment supplemented by the most recent government stimulus program. Demand deposit account balances grew by $837 million and interest-bearing transaction account balances grew by $732 million. Period-end commercial deposits grew by $1.0 billion, consumer deposits increased $474 million and wealth management deposits were up $566 million. Average deposits were $36.5 billion at March 31, 2021, a $1.0 billion increase compared to December 31, 2020. Interest-bearing transaction deposits increased $715 million.
Capital
The company's common equity Tier 1 capital ratio was 12.14 percent at March 31, 2021. In addition, the company's Tier 1 capital ratio was 12.21 percent, total capital ratio was 13.98 percent, and leverage ratio was 8.51 percent at March 31, 2021. We have elected to delay the regulatory capital impact of the transition of the allowance for credit losses from the incurred loss methodology to CECL for two years, followed by a three-year transition period, which added 23     basis points to the company's common equity tier 1 capital ratio at March 31. At December 31, 2020, the company's common equity Tier 1 capital ratio was 11.95 percent, Tier 1 capital ratio was 11.95 percent, total capital ratio was 13.82 percent, and leverage ratio was 8.28 percent.
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The company's tangible common equity ratio, a non-GAAP measure, was 8.82 percent at March 31, 2021 and 9.02 percent at December 31, 2020. The tangible common equity ratio is primarily based on total shareholders' equity, which includes unrealized gains and losses on available for sale securities. The company has elected to exclude unrealized gains and losses from available for sale securities from its calculation of Tier 1 capital for regulatory capital purposes, consistent with the treatment under the previous capital rules.
The company repurchased 260,000 shares of common stock at an average price of $77.20 a share in the first quarter of 2021. We view share buybacks opportunistically, but within the context of maintaining our strong capital position.
Credit Quality
Expected credit losses on assets carried at amortized cost are recognized over their expected lives based on models that measure the probability of default and loss given default over a 12-month reasonable and supportable forecast period. Our models incorporate base case, downside and upside macroeconomic variables such as real gross domestic product ("GDP") growth, civilian unemployment rate and West Texas Intermediate ("WTI") oil prices on a probability weighted basis.
We recorded a $25.0 million negative provision for credit losses in the first quarter of 2021. Changes in our reasonable and supportable forecasts of macroeconomic variables, primarily due to an improved economic outlook related to the anticipated impact of the on-going COVID-19 pandemic, resulted in a $31.1 million decrease in the allowance for credit losses from lending activities. Changes in the loan portfolio characteristics, including specific impairment and losses, risk grading and loan balances resulted in a $5.2 million increase in the allowance for credit losses from lending activities.

Our base case reasonable and supportable forecast assumes that the COVID-19 pandemic continues to improve as virus immunity becomes increasingly more widespread and vaccines prove to be effective against new virus strains. This scenario assumes vaccine distribution continues to accelerate through the first half of 2021, with a large share of the U.S. population vaccinated by the end of the third quarter of 2021. Continued easing of restrictions and the release of pent-up consumer demand results in GDP growth above historical averages, with GDP recovering to pre-COVID levels in the second quarter of 2021. We expect a 5.6 percent increase in GDP over the next twelve months. Our forecasted civilian unemployment rate is 6.0 percent for the second quarter of 2021, improving to 5.0 percent by the first quarter of 2022. WTI oil prices are projected to generally follow the NYMEX forward curve that existed at the end of March 2021, averaging $57.87 per barrel over the next twelve months.

The probability weighting of our base case reasonable and supportable forecast was unchanged compared to the fourth quarter of 2020 as there continues to be a high level of uncertainty in the current economic outlook. Our downside case assumes additional waves and hotspots emerge stemming from new virus strains throughout the second and third quarter of 2021 and more constrained distribution of vaccines not reaching widespread distribution until the end of 2021. This results in no GDP growth over the next twelve months and unemployment rates remaining elevated through the first quarter of 2022.

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The allowance for loan losses totaled $352 million or 1.56 percent of outstanding loans and 170 percent of nonaccruing loans at March 31, 2021, excluding residential mortgage loans guaranteed by U.S. government agencies. The combined allowance for loan losses and accrual for off-balance sheet credit risk from unfunded loan commitments was $385 million or 1.71 percent of outstanding loans and 186 percent of nonaccruing loans at March 31, 2021. The combined allowance for credit losses attributed to energy was 3.29 percent of outstanding energy loans at March 31 compared to 3.61 at December 31. Excluding PPP loans, the allowance for loan losses was 1.70 percent of outstanding loans and the combined allowance for loan losses and accrual for off-balance sheet credit risk from unfunded loan commitments was 1.86 percent.

At December 31, 2020, the allowance for loan losses was $389 million or 1.69 percent of outstanding loans and 171 percent of nonaccruing loans, excluding loans guaranteed by U.S. government agencies. The combined allowance for loan losses and accrual for off-balance sheet credit risk from unfunded loan commitments was $426 million or 1.85 percent of outstanding loans and 188 percent of nonaccruing loans.
Nonperforming assets totaled $442 million or 1.95 percent of outstanding loans and repossessed assets at March 31, 2021, down from $477 million or 2.07 percent at December 31, 2020. Nonperforming assets that are not guaranteed by U.S. government agencies totaled $278 million or 1.37 percent of outstanding loans and repossessed assets at March 31, 2021, compared to $317 million or 1.51 percent at December 31, 2020. The decrease in nonperforming assets was primarily related to a decrease in nonaccruing energy loans and sales of energy-related repossessed assets during the first quarter of 2021.
Nonaccruing loans were $216 million or 1.04 percent of outstanding loans, excluding PPP loans, at March 31, 2021. Nonaccruing commercial loans totaled $147 million or 1.16 percent of outstanding commercial loans. Nonaccruing commercial real estate loans totaled $27 million or 0.60 percent of outstanding commercial real estate loans. Nonaccruing loans to individuals totaled $42 million or 1.18 percent of outstanding loans to individuals.
Nonaccruing loans decreased $19 million compared to December 31, 2020, primarily due to a decrease in nonaccruing energy loans. New nonaccruing loans identified in the first quarter totaled $25 million, offset by $26 million in payments received and $17 million in charge-offs.
Potential problem loans, which are defined as performing loans that, based on known information, cause management concern as to the borrowers' ability to continue to perform, totaled $422 million at March 31, down from $478 million at December 31. Lower energy and services potential problem loans, were partially offset by an increase in potential problem healthcare loans.
Net charge-offs were $14.5 million or 0.28 percent of average loans on an annualized basis for the first quarter of 2021, excluding PPP loans. Net charge-offs were 0.31 percent of average loans over the last four quarters. Net charge-offs were $16.7 million or 0.31 percent of average loans on an annualized basis for the fourth quarter of 2020, excluding PPP loans. Gross charge-offs were $16.9 million for the first quarter compared to $18.3 million for the previous quarter. Recoveries totaled $2.4 million for the first quarter of 2021 and $1.6 million for the fourth quarter of 2020.
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Securities and Derivatives
The fair value of the available for sale securities portfolio totaled $13.4 billion at March 31, 2021, a $359 million increase compared to December 31, 2020. At March 31, 2021, the available for sale securities portfolio consisted primarily of $9.7 billion of residential mortgage-backed securities fully backed by U.S. government agencies and $3.4 billion of commercial mortgage-backed securities fully backed by U.S. government agencies. At March 31, 2021, the available for sale securities portfolio had a net unrealized gain of $290 million compared to $441 million at December 31, 2020.
The company also maintains a portfolio of residential mortgage-backed securities issued by U.S. government agencies and interest rate derivative contracts as an economic hedge of the changes in the fair value of our mortgage servicing rights. This portfolio of fair value option securities decreased $42 million to $72 million at March 31, 2021.
The net economic benefit of the changes in the fair value of mortgage servicing rights and related economic hedges was $4.7 million during the first quarter of 2021, including a $33.9 million increase in the fair value of mortgage servicing rights, $29.6 million decrease in the fair value of securities and derivative contracts held as an economic hedge, and $393 thousand of related net interest revenue.

Conference Call and Webcast
The company will hold a conference call at 9 a.m. Central time on April 21, 2021 to discuss the financial results with investors. The live audio webcast and presentation slides will be available on the company’s website at www.bokf.com. The conference call can also be accessed by dialing 1-201-689-8471. A conference call and webcast replay will also be available shortly after conclusion of the live call at www.bokf.com or by dialing 1-412-317-6671 and referencing conference ID # 13718312.
About BOK Financial Corporation
BOK Financial Corporation is a $47 billion regional financial services company headquartered in Tulsa, Oklahoma with $92 billion in assets under management and administration. The company's stock is publicly traded on NASDAQ under the Global Select market listings (BOKF). BOK Financial Corporation's holdings include BOKF, NA; BOK Financial Securities, Inc., BOK Financial Private Wealth, Inc. and BOK Financial Insurance, Inc. BOKF, NA operates TransFund, Cavanal Hill Investment Management and BOK Financial Asset Management, Inc. BOKF, NA operates banking divisions across eight states as: Bank of Albuquerque; Bank of Oklahoma; Bank of Texas; and BOK Financial in Arizona, Arkansas, Colorado, Kansas and Missouri; as well as having limited purpose offices in Nebraska, Wisconsin and Connecticut. Through its subsidiaries, BOK Financial Corporation provides commercial and consumer banking, brokerage trading, investment, trust and insurance 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 appropriateness of the allowance for credit losses and asset impairment as of March 31, 2021 through the date its financial statements are filed with the Securities and Exchange Commission and will adjust amounts reported if necessary.


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This news release contains forward-looking statements that are based on management's beliefs, assumptions, current expectations, estimates and projections about BOK Financial Corporation, the financial services industry, the economy generally and the expected or potential impact of the novel coronavirus (COVID-19) pandemic, and the related responses of the government, consumers, and others, on our business, financial condition and results of operations. Words such as “anticipates,” “believes,” “estimates,” “expects,” “forecasts,” “plans,” “projects,” “will,” “intends,” 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, allowance for uncertain tax positions, accruals for loss contingencies and valuation of mortgage servicing rights involve judgments as to expected events and are inherently forward-looking statements. Assessments that acquisitions and 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 various forward-looking 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 changes in government, consumer or business responses to, and ability to treat or prevent further outbreak of the COVID-19 pandemic, changes in commodity prices, interest rates and interest rate relationships, inflation, demand for products and services, the degree of competition by traditional and nontraditional competitors, changes in banking regulations, tax laws, prices, levies and assessments, the impact of technological advances, and trends in customer behavior as well as their ability to repay loans. BOK Financial Corporation 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.

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                                                Exhibit 99(b)

BALANCE SHEETS -- UNAUDITED
BOK FINANCIAL CORPORATION
(In thousands)
Mar. 31, 2021Dec. 31, 2020
ASSETS
Cash and due from banks$723,983 $798,757 
Interest-bearing cash and cash equivalents695,213 381,816 
Trading securities5,085,949 4,707,975 
Investment securities, net of allowance226,121 244,843 
Available for sale securities13,410,057 13,050,665 
Fair value option securities72,498 114,982 
Restricted equity securities139,614 171,391 
Residential mortgage loans held for sale284,447 252,316 
Loans:
Commercial12,657,784 13,077,535 
Commercial real estate4,503,347 4,698,538 
Paycheck protection program1,848,550 1,682,310 
Loans to individuals3,524,166 3,549,137 
Total loans22,533,847 23,007,520 
Allowance for loan losses(352,402)(388,640)
Loans, net of allowance22,181,445 22,618,880 
Premises and equipment, net555,455 551,308 
Receivables250,852 245,880 
Goodwill1,048,091 1,048,091 
Intangible assets, net110,585 113,436 
Mortgage servicing rights132,915 101,172 
Real estate and other repossessed assets, net70,911 90,526 
Derivative contracts, net1,289,156 810,688 
Cash surrender value of bank-owned life insurance401,320 398,758 
Receivable on unsettled securities sales67,759 62,386 
Other assets696,142 907,218 
TOTAL ASSETS$47,442,513 $46,671,088 
LIABILITIES AND EQUITY
Deposits:
Demand$13,103,170 $12,266,338 
Interest-bearing transaction21,890,874 21,158,422 
Savings854,226 751,992 
Time2,004,356 1,967,128 
Total deposits37,852,626 36,143,880 
Funds purchased and repurchase agreements795,161 1,662,386 
Other borrowings1,708,517 1,882,970 
Subordinated debentures276,024 276,005 
Accrued interest, taxes and expense290,328 323,667 
Due on unsettled securities purchases106,835 257,627 
Derivative contracts, net719,556 405,779 
Other liabilities431,122 427,213 
TOTAL LIABILITIES42,180,169 41,379,527 
Shareholders' equity:
Capital, surplus and retained earnings5,018,053 4,930,398 
Accumulated other comprehensive gain
221,409 335,868 
TOTAL SHAREHOLDERS' EQUITY5,239,462 5,266,266 
Non-controlling interests22,882 25,295 
TOTAL EQUITY5,262,344 5,291,561 
TOTAL LIABILITIES AND EQUITY$47,442,513 $46,671,088 

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AVERAGE BALANCE SHEETS -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands)
Three Months Ended
Mar. 31, 2021Dec. 31, 2020Sept. 30, 2020June 30, 2020Mar. 31, 2020
ASSETS
Interest-bearing cash and cash equivalents$711,047 $643,926 $553,070 $619,737 $721,659 
Trading securities6,963,617 6,888,189 1,834,160 1,871,647 1,690,104 
Investment securities, net of allowance237,313 251,863 258,965 268,947 282,265 
Available for sale securities13,433,767 12,949,702 12,580,850 12,480,065 11,664,521 
Fair value option securities104,662 122,329 387,784 786,757 1,793,480 
Restricted equity securities189,921 280,428 144,415 273,922 429,133 
Residential mortgage loans held for sale207,013 229,631 213,125 288,588 129,708 
Loans:
Commercial12,908,461 13,113,449 13,772,217 14,502,652 14,452,851 
Commercial real estate4,547,945 4,788,393 4,754,269 4,543,511 4,346,886 
Paycheck protection program1,741,534 1,928,665 2,092,933 1,699,369 — 
Loans to individuals3,559,067 3,617,011 3,491,044 3,353,960 3,143,286 
Total loans22,757,007 23,447,518 24,110,463 24,099,492 21,943,023 
Allowance for loan losses(382,734)(414,225)(441,831)(367,583)(250,338)
Loans, net of allowance22,374,273 23,033,293 23,668,632 23,731,909 21,692,685 
Total earning assets44,221,613 44,399,361 39,641,001 40,321,572 38,403,555 
Cash and due from banks760,691 742,432 723,826 678,878 669,369 
Derivative contracts, net
873,712 553,779 581,839 642,969 376,621 
Cash surrender value of bank-owned life insurance
399,830 397,354 394,680 391,951 390,009 
Receivable on unsettled securities sales735,482 1,094,198 4,563,301 4,626,307 3,046,111 
Other assets3,319,305 3,200,040 3,027,108 3,095,354 2,834,953 
TOTAL ASSETS$50,310,633 $50,387,164 $48,931,755 $49,757,031 $45,720,618 
LIABILITIES AND EQUITY
Deposits:
Demand$12,312,629 $12,136,071 $11,929,694 $11,489,322 $9,232,859 
Interest-bearing transaction21,433,406 20,718,390 19,752,106 18,040,170 16,159,654 
Savings789,656 737,360 707,121 656,669 563,821 
Time1,986,425 1,930,808 2,251,012 2,464,793 2,239,234 
Total deposits36,522,116 35,522,629 34,639,933 32,650,954 28,195,568 
Funds purchased and repurchase agreements
2,830,378 2,153,254 2,782,150 5,816,484 3,815,941 
Other borrowings3,392,346 5,193,656 3,382,688 3,527,303 6,542,325 
Subordinated debentures276,015 275,998 275,980 275,949 275,932 
Derivative contracts, net428,488 399,476 458,390 836,667 379,342 
Due on unsettled securities purchases915,410 957,642 1,516,880 887,973 960,780 
Other liabilities671,715 656,147 712,674 690,087 642,764 
TOTAL LIABILITIES45,036,468 45,158,802 43,768,695 44,685,417 40,812,652 
Total equity5,274,165 5,228,362 5,163,060 5,071,614 4,907,966 
TOTAL LIABILITIES AND EQUITY$50,310,633 $50,387,164 $48,931,755 $49,757,031 $45,720,618 

11

STATEMENTS OF EARNINGS -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands, except per share data)
Three Months Ended
March 31,
20212020
Interest revenue$298,239 $348,937 
Interest expense17,819 87,577 
Net interest revenue280,420 261,360 
Provision for credit losses(25,000)93,771 
Net interest revenue after provision for credit losses
305,420 167,589 
Other operating revenue:
Brokerage and trading revenue20,782 50,779 
Transaction card revenue22,430 21,881 
Fiduciary and asset management revenue41,322 44,458 
Deposit service charges and fees24,209 26,130 
Mortgage banking revenue37,113 37,167 
Other revenue16,296 12,309 
Total fees and commissions162,152 192,724 
Other gains (losses), net(3,036)(10,741)
Gain (loss) on derivatives, net(27,650)18,420 
Gain (loss) on fair value option securities, net(1,910)68,393 
Change in fair value of mortgage servicing rights33,874 (88,480)
Gain on available for sale securities, net467 3 
Total other operating revenue163,897 180,319 
Other operating expense:
Personnel173,010 156,181 
Business promotion2,154 6,215 
Charitable contributions to BOKF Foundation4,000 — 
Professional fees and services11,980 12,948 
Net occupancy and equipment26,662 26,061 
Insurance4,620 4,980 
Data processing and communications37,467 32,743 
Printing, postage and supplies3,440 4,272 
Net losses (gains) and operating expenses of repossessed assets(6,588)1,531 
Amortization of intangible assets4,807 5,094 
Mortgage banking costs13,943 10,545 
Other expense7,132 8,054 
Total other operating expense282,627 268,624 
Net income before taxes186,690 79,284 
Federal and state income taxes42,382 17,300 
Net income144,308 61,984 
Net loss attributable to non-controlling interests(1,752)(95)
Net income attributable to BOK Financial Corporation shareholders
$146,060 $62,079 
Average shares outstanding:
Basic69,137,375 70,123,685 
Diluted69,141,710 70,130,166 
Net income per share:
Basic$2.10 $0.88 
Diluted$2.10 $0.88 


12

FINANCIAL HIGHLIGHTS -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands, except ratio and share data)
Three Months Ended
Mar. 31, 2021Dec. 31, 2020Sept. 30, 2020June 30, 2020Mar. 31, 2020
Capital:
Period-end shareholders' equity$5,239,462 $5,266,266 $5,218,787 $5,096,995 $5,026,248 
Risk weighted assets$32,623,108 $32,492,277 $31,529,826 $32,180,602 $32,973,242 
Risk-based capital ratios:
Common equity tier 112.14 %11.95 %12.07 %11.44 %10.98 %
Tier 112.21 %11.95 %12.07 %11.44 %10.98 %
Total capital13.98 %13.82 %14.05 %13.43 %12.65 %
Leverage ratio8.51 %8.28 %8.39 %7.74 %8.15 %
Tangible common equity ratio1
8.82 %9.02 %9.02 %8.79 %8.39 %
Common stock:
Book value per share$75.33 $75.62 $74.23 $72.50 $71.49 
Tangible book value per share$58.67 $58.94 $57.64 $55.83 $54.85 
Market value per share:
High$98.95 $73.07 $62.86 $67.62 $87.40 
Low$67.57 $50.09 $48.41 $37.80 $34.57 
Cash dividends paid$36,038 $36,219 $35,799 $35,769 $35,949 
Dividend payout ratio24.67 %23.48 %23.24 %55.29 %57.91 %
Shares outstanding, net69,557,873 69,637,600 70,305,833 70,306,690 70,308,532 
Stock buy-back program:
Shares repurchased260,000 665,100 — — 442,000 
Amount$20,071 $42,450 $— $— $33,380 
Average price per share$77.20 $63.82 $— $— $75.52 
Performance ratios (quarter annualized):
Return on average assets1.18 %1.22 %1.25 %0.52 %0.55 %
Return on average equity11.28 %11.75 %11.89 %5.14 %5.10 %
Net interest margin2.62 %2.72 %2.81 %2.83 %2.80 %
Efficiency ratio63.32 %62.36 %60.41 %59.57 %58.62 %
Reconciliation of non-GAAP measures:
1 Tangible common equity ratio:
Total shareholders' equity$5,239,462 $5,266,266 $5,218,787 $5,096,995 $5,026,248 
Less: Goodwill and intangible assets, net
1,158,676 1,161,527 1,166,615 1,171,686 1,169,898 
Tangible common equity$4,080,786 $4,104,739 $4,052,172 $3,925,309 $3,856,350 
Total assets$47,442,513 $46,671,088 $46,067,224 $45,819,874 $47,119,162 
Less: Goodwill and intangible assets, net
1,158,676 1,161,527 1,166,615 1,171,686 1,169,898 
Tangible assets$46,283,837 $45,509,561 $44,900,609 $44,648,188 $45,949,264 
Tangible common equity ratio8.82 %9.02 %9.02 %8.79 %8.39 %
13

Three Months Ended
Mar. 31, 2021Dec. 31, 2020Sept. 30, 2020June 30, 2020Mar. 31, 2020
Pre-provision net revenue:
Net income before taxes$186,690 $199,847 $204,644 $80,089 $79,284 
Provision for expected credit losses(25,000)(6,500)— 135,321 93,771 
Net income (loss) attributable to non-controlling interests(1,752)485 58 (407)(95)
Pre-provision net revenue$163,442 $192,862 $204,586 $215,817 $173,150 
Other data:
Tax equivalent interest$2,301 $2,414 $2,457 $2,630 $2,715 
Net unrealized gain on available for sale securities$290,217 $440,814 $480,563 $487,334 $435,989 
Mortgage banking:
Mortgage production revenue$25,287 $26,662 $38,431 $39,185 $21,570 
Mortgage loans funded for sale$843,053 $998,435 $1,032,472 $1,184,249 $548,956 
Add: current period-end outstanding commitments
387,465 380,637 560,493 546,304 657,570 
Less: prior period end outstanding commitments
380,637 560,493 546,304 657,570 158,460 
Total mortgage production volume
$849,881 $818,579 $1,046,661 $1,072,983 $1,048,066 
Mortgage loan refinances to mortgage loans funded for sale
65 %58 %54 %71 %57 %
Gain on sale margin2.98 %3.26 %3.67 %3.65 %2.06 %
Mortgage servicing revenue$11,826 $12,636 $13,528 $14,751 $15,597 
Average outstanding principal balance of mortgage loans serviced for others
15,723,231 16,518,208 17,434,215 19,319,872 20,416,546 
Average mortgage servicing revenue rates0.31 %0.30 %0.31 %0.31 %0.31 %
Gain (loss) on mortgage servicing rights, net of economic hedge:
Gain (loss) on mortgage hedge derivative contracts, net
$(27,705)$(385)$2,295 $21,815 $18,371 
Gain (loss) on fair value option securities, net
(1,910)68 (754)(14,459)68,393 
Gain (loss) on economic hedge of mortgage servicing rights
(29,615)(317)1,541 7,356 86,764 
Gain (loss) on changes in fair value of mortgage servicing rights
33,874 6,276 3,441 (761)(88,480)
Gain (loss) on changes in fair value of mortgage servicing rights, net of economic hedges, included in other operating revenue
4,259 5,959 4,982 6,595 (1,716)
Net interest revenue on fair value option securities2
393 550 1,565 2,702 4,268 
Total economic benefit of changes in the fair value of mortgage servicing rights, net of economic hedges$4,652 $6,509 $6,547 $9,297 $2,552 
2     Actual interest earned on fair value option securities less internal transfer-priced cost of funds.


14

QUARTERLY EARNINGS TREND -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands, except ratio and per share data)
Three Months Ended
Mar. 31, 2021Dec. 31, 2020Sept. 30, 2020June 30, 2020Mar. 31, 2020
Interest revenue$298,239 $319,020 $294,659 $306,384 $348,937 
Interest expense17,819 21,790 22,909 28,280 87,577 
Net interest revenue280,420 297,230 271,750 278,104 261,360 
Provision for credit losses(25,000)(6,500)— 135,321 93,771 
Net interest revenue after provision for credit losses
305,420 303,730 271,750 142,783 167,589 
Other operating revenue:
Brokerage and trading revenue20,782 39,506 69,526 62,022 50,779 
Transaction card revenue22,430 21,896 23,465 22,940 21,881 
Fiduciary and asset management revenue41,322 41,799 39,931 41,257 44,458 
Deposit service charges and fees24,209 24,343 24,286 22,046 26,130 
Mortgage banking revenue37,113 39,298 51,959 53,936 37,167 
Other revenue16,296 14,209 13,698 11,479 12,309 
Total fees and commissions162,152 181,051 222,865 213,680 192,724 
Other gains (losses), net(3,036)5,383 6,265 6,768 (10,741)
Gain (loss) on derivatives, net(27,650)(339)2,354 21,885 18,420 
Gain (loss) on fair value option securities, net
(1,910)68 (754)(14,459)68,393 
Change in fair value of mortgage servicing rights
33,874 6,276 3,441 (761)(88,480)
Gain (loss) on available for sale securities, net467 4,339 (12)5,580 3 
Total other operating revenue163,897 196,778 234,159 232,693 180,319 
Other operating expense:
Personnel173,010 176,198 179,860 176,235 156,181 
Business promotion2,154 3,728 2,633 1,935 6,215 
Charitable contributions to BOKF Foundation
4,000 6,000 — 3,000 — 
Professional fees and services11,980 14,254 14,074 12,161 12,948 
Net occupancy and equipment26,662 27,875 28,111 30,675 26,061 
Insurance4,620 4,006 5,848 5,156 4,980 
Data processing and communications
37,467 35,061 34,751 32,942 32,743 
Printing, postage and supplies3,440 3,805 3,482 3,502 4,272 
Net losses (gains) and operating expenses of repossessed assets(6,588)1,168 6,244 1,766 1,531 
Amortization of intangible assets
4,807 5,088 5,071 5,190 5,094 
Mortgage banking costs13,943 14,765 15,803 15,598 10,545 
Other expense7,132 8,713 5,388 7,227 8,054 
Total other operating expense282,627 300,661 301,265 295,387 268,624 
Net income before taxes186,690 199,847 204,644 80,089 79,284 
Federal and state income taxes42,382 45,138 50,552 15,803 17,300 
Net income144,308 154,709 154,092 64,286 61,984 
Net income (loss) attributable to non-controlling interests
(1,752)485 58 (407)(95)
Net income attributable to BOK Financial Corporation shareholders
$146,060 $154,224 $154,034 $64,693 $62,079 
Average shares outstanding:
Basic69,137,375 69,489,597 69,877,866 69,876,043 70,123,685 
Diluted69,141,710 69,493,050 69,879,290 69,877,467 70,130,166 
Net income per share:
Basic$2.10 $2.21 $2.19 $0.92 $0.88 
Diluted$2.10 $2.21 $2.19 $0.92 $0.88 
15

LOANS TREND -- UNAUDITED
BOK FINANCIAL CORPORATION
(In thousands)
Mar. 31, 2021Dec. 31, 2020Sept. 30, 2020June 30, 2020Mar. 31, 2020
Commercial:     
Services$3,421,948 $3,508,583 $3,545,825 $3,779,881 $3,955,748 
Energy3,202,488 3,469,194 3,717,101 3,974,174 4,111,676 
Healthcare3,290,758 3,305,990 3,325,790 3,289,343 3,165,096 
General business2,742,590 2,793,768 2,976,990 3,115,112 3,563,455 
Total commercial12,657,784 13,077,535 13,565,706 14,158,510 14,795,975 
Commercial real estate:
Multifamily1,227,915 1,328,045 1,387,461 1,407,107 1,282,457 
Office1,094,060 1,085,257 1,099,563 973,995 962,004 
Industrial789,437 810,510 792,389 723,005 728,026 
Retail787,648 796,223 786,211 780,467 774,198 
Residential construction and land development
119,079 119,394 121,258 136,911 138,958 
Other commercial real estate485,208 559,109 506,818 532,659 564,442 
Total commercial real estate4,503,347 4,698,538 4,693,700 4,554,144 4,450,085 
Paycheck protection program1,848,550 1,682,310 2,097,325 2,081,428 — 
Loans to individuals:     
Residential mortgage1,797,478 1,863,003 1,849,144 1,813,442 1,844,555 
Residential mortgages guaranteed by U.S. government agencies420,051 408,687 384,247 322,269 197,889 
Personal1,306,637 1,277,447 1,213,178 1,226,097 1,175,466 
Total loans to individuals3,524,166 3,549,137 3,446,569 3,361,808 3,217,910 
Total$22,533,847 $23,007,520 $23,803,300 $24,155,890 $22,463,970 
16

LOANS MANAGED BY PRINCIPAL MARKET AREA -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands)
Mar. 31, 2021Dec. 31, 2020Sept. 30, 2020June 30, 2020Mar. 31, 2020
Texas:
Commercial$5,748,345 $5,926,534 $6,135,471 $6,359,206 $6,350,690 
Commercial real estate1,511,714 1,519,217 1,523,226 1,413,108 1,296,266 
Paycheck protection program537,899 501,079 614,970 612,133 — 
Loans to individuals848,194 855,410 794,055 749,531 756,634 
Total Texas8,646,152 8,802,240 9,067,722 9,133,978 8,403,590 
Oklahoma:
Commercial2,975,477 3,144,782 3,332,244 3,489,259 3,886,086 
Commercial real estate597,840 597,733 608,448 596,419 593,473 
Paycheck protection program468,002 413,108 487,247 442,518 — 
Loans to individuals2,043,705 2,052,784 2,034,576 1,966,032 1,788,518 
Total Oklahoma6,085,024 6,208,407 6,462,515 6,494,228 6,268,077 
Colorado:
Commercial1,910,826 1,929,320 1,993,364 2,085,294 2,181,309 
Commercial real estate777,786 879,648 893,626 940,622 955,608 
Paycheck protection program436,540 377,111 494,910 488,279 — 
Loans to individuals264,759 264,295 257,832 265,359 268,674 
Total Colorado3,389,911 3,450,374 3,639,732 3,779,554 3,405,591 
Arizona:
Commercial1,207,089 1,219,072 1,218,769 1,346,037 1,396,582 
Commercial real estate667,766 726,111 702,291 698,818 714,161 
Paycheck protection program208,481 211,725 272,114 318,961 — 
Loans to individuals179,031 177,948 166,203 177,155 181,821 
Total Arizona2,262,367 2,334,856 2,359,377 2,540,971 2,292,564 
Kansas/Missouri:
Commercial421,974 455,914 493,606 481,162 556,255 
Commercial real estate395,590 366,821 352,663 314,926 310,799 
Paycheck protection program60,741 56,011 80,230 76,724 — 
Loans to individuals104,954 105,995 96,598 102,577 116,734 
Total Kansas/Missouri983,259 984,741 1,023,097 975,389 983,788 
New Mexico:
Commercial307,395 303,833 288,374 308,090 327,164 
Commercial real estate448,298 473,204 473,697 458,230 434,150 
Paycheck protection program124,059 109,881 133,244 128,058 — 
Loans to individuals70,491 75,665 79,890 83,470 87,110 
Total New Mexico950,243 962,583 975,205 977,848 848,424 
Arkansas:
Commercial86,678 98,080 103,878 89,462 97,889 
Commercial real estate104,353 135,804 139,749 132,021 145,628 
Paycheck protection program12,828 13,395 14,610 14,755 — 
Loans to individuals13,032 17,040 17,415 17,684 18,419 
Total Arkansas216,891 264,319 275,652 253,922 261,936 
TOTAL BOK FINANCIAL$22,533,847 $23,007,520 $23,803,300 $24,155,890 $22,463,970 
Loans attributed to a principal market may not always represent the location of the borrower or the collateral.
17

DEPOSITS BY PRINCIPAL MARKET AREA -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands)
Mar. 31, 2021Dec. 31, 2020Sept. 30, 2020June 30, 2020Mar. 31, 2020
Oklahoma:
    Demand$4,822,895 $4,328,619 $4,493,691 $4,378,559 $3,669,558 
    Interest-bearing:
       Transaction12,827,914 12,603,603 12,586,401 11,438,489 9,955,697 
       Savings487,862 420,996 401,062 387,557 329,631 
       Time1,197,517 1,134,453 1,081,176 1,330,619 1,137,802 
    Total interest-bearing14,513,293 14,159,052 14,068,639 13,156,665 11,423,130 
Total Oklahoma19,336,188 18,487,671 18,562,330 17,535,224 15,092,688 
Texas:
    Demand3,593,510 3,450,468 3,152,393 3,070,955 2,767,399 
    Interest-bearing:
       Transaction4,257,390 3,800,482 3,482,603 3,358,090 2,874,362 
       Savings154,406 139,173 136,787 128,892 115,039 
       Time368,086 383,062 438,337 476,867 505,565 
    Total interest-bearing4,779,882 4,322,717 4,057,727 3,963,849 3,494,966 
Total Texas8,373,392 7,773,185 7,210,120 7,034,804 6,262,365 
Colorado:
    Demand2,115,354 2,168,404 2,057,603 2,096,075 1,579,764 
    Interest-bearing:
       Transaction2,100,135 2,170,485 1,861,763 1,816,604 1,759,384 
       Savings73,446 69,384 68,230 67,477 58,000 
       Time204,973 208,778 226,780 254,845 279,105 
    Total interest-bearing2,378,554 2,448,647 2,156,773 2,138,926 2,096,489 
Total Colorado4,493,908 4,617,051 4,214,376 4,235,001 3,676,253 
New Mexico:
    Demand1,131,713 941,074 964,908 965,877 750,052 
    Interest-bearing:
       Transaction736,923 733,007 713,418 752,565 563,891 
       Savings103,591 91,646 85,463 80,242 67,553 
       Time181,863 186,307 200,525 222,370 235,778 
    Total interest-bearing1,022,377 1,010,960 999,406 1,055,177 867,222 
Total New Mexico2,154,090 1,952,034 1,964,314 2,021,054 1,617,274 
Arizona:
    Demand915,439 905,201 928,671 985,757 665,396 
    Interest-bearing:
       Transaction835,795 768,220 771,319 780,500 729,603 
       Savings13,235 12,174 11,498 15,669 8,832 
       Time30,997 32,721 36,929 42,318 47,081 
    Total interest-bearing880,027 813,115 819,746 838,487 785,516 
Total Arizona1,795,466 1,718,316 1,748,417 1,824,244 1,450,912 
18

Mar. 31, 2021Dec. 31, 2020Sept. 30, 2020June 30, 2020Mar. 31, 2020
Kansas/Missouri:
    Demand478,370 426,738 405,360 427,795 318,985 
    Interest-bearing:
       Transaction991,510 960,237 616,797 526,635 537,552 
       Savings18,686 16,286 15,520 15,033 12,888 
       Time13,898 14,610 16,430 17,746 19,137 
    Total interest-bearing1,024,094 991,133 648,747 559,414 569,577 
Total Kansas/Missouri1,502,464 1,417,871 1,054,107 987,209 888,562 
Arkansas:
    Demand45,889 45,834 44,712 67,147 70,428 
    Interest-bearing:
       Transaction141,207 122,388 164,439 177,535 175,803 
       Savings3,000 2,333 2,389 2,101 1,862 
       Time7,022 7,197 7,796 7,995 8,005 
    Total interest-bearing151,229 131,918 174,624 187,631 185,670 
Total Arkansas197,118 177,752 219,336 254,778 256,098 
TOTAL BOK FINANCIAL$37,852,626 $36,143,880 $34,973,000 $33,892,314 $29,244,152 

19

NET INTEREST MARGIN TREND -- UNAUDITED
BOK FINANCIAL CORPORATION
Three Months Ended
Mar. 31, 2021Dec. 31, 2020Sept. 30, 2020June 30, 2020Mar. 31, 2020
TAX-EQUIVALENT ASSETS YIELDS
Interest-bearing cash and cash equivalents0.10 %0.10 %0.12 %0.07 %1.33 %
Trading securities2.06 %2.02 %1.92 %2.46 %2.89 %
Investment securities, net of allowance4.88 %4.88 %4.85 %4.77 %4.73 %
Available for sale securities1.84 %1.98 %2.11 %2.29 %2.48 %
Fair value option securities1.95 %2.27 %1.92 %2.00 %2.67 %
Restricted equity securities2.86 %3.25 %2.53 %2.75 %5.49 %
Residential mortgage loans held for sale2.71 %2.75 %3.01 %3.10 %3.50 %
Loans3.55 %3.68 %3.60 %3.63 %4.50 %
Allowance for loan losses
Loans, net of allowance3.62 %3.75 %3.67 %3.69 %4.55 %
Total tax-equivalent yield on earning assets2.78 %2.92 %3.04 %3.12 %3.73 %
COST OF INTEREST-BEARING LIABILITIES
Interest-bearing deposits:
  Interest-bearing transaction0.12 %0.14 %0.17 %0.21 %0.89 %
  Savings0.04 %0.05 %0.05 %0.05 %0.09 %
  Time0.70 %0.89 %1.13 %1.36 %1.83 %
Total interest-bearing deposits0.17 %0.19 %0.26 %0.34 %0.98 %
Funds purchased and repurchase agreements0.19 %0.28 %0.17 %0.14 %1.14 %
Other borrowings0.39 %0.42 %0.43 %0.56 %1.66 %
Subordinated debt4.92 %4.87 %4.89 %5.16 %5.30 %
Total cost of interest-bearing liabilities0.24 %0.28 %0.31 %0.37 %1.19 %
Tax-equivalent net interest revenue spread2.54 %2.64 %2.73 %2.75 %2.54 %
Effect of noninterest-bearing funding sources and other
0.08 %0.08 %0.08 %0.08 %0.26 %
Tax-equivalent net interest margin2.62 %2.72 %2.81 %2.83 %2.80 %

Yield calculations are shown on a tax equivalent basis at the statutory federal and state rates for the periods presented. The yield calculations exclude security trades that have been recorded on trade date with no corresponding interest income and the unrealized gains and losses. The yield calculation also includes average loan balances for which the accrual of interest has been discontinued and are net of unearned income. Yield/rate calculations are generally based on the conventions that determine how interest income and expense is accrued.

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CREDIT QUALITY INDICATORS -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands, except ratios)
Three Months Ended
Mar. 31, 2021Dec. 31, 2020Sept. 30, 2020June 30, 2020Mar. 31, 2020
Nonperforming assets:
Nonaccruing loans:
Commercial:
Energy$101,800 $125,059 $126,816 $162,989 $96,448 
Services28,033 25,598 25,817 21,032 8,425 
Healthcare3,187 3,645 3,645 3,645 4,070 
General business14,053 12,857 13,675 14,333 9,681 
Total commercial147,073 167,159 169,953 201,999 118,624 
Commercial real estate27,243 27,246 12,952 13,956 8,545 
Loans to individuals:
Permanent mortgage32,884 32,228 31,599 33,098 30,721 
Permanent mortgage guaranteed by U.S. government agencies
8,564 7,741 6,397 6,110 5,005 
Personal255 319 252 233 277 
Total loans to individuals41,703 40,288 38,248 39,441 36,003 
Total nonaccruing loans$216,019 $234,693 $221,153 $255,396 $163,172 
Accruing renegotiated loans guaranteed by U.S. government agencies
154,591 151,775 142,770 114,571 91,757 
Real estate and other repossessed assets70,911 90,526 52,847 35,330 36,744 
Total nonperforming assets$441,521 $476,994 $416,770 $405,297 $291,673 
Total nonperforming assets excluding those guaranteed by U.S. government agencies
$278,366 $317,478 $267,603 $284,616 $194,911 
Accruing loans 90 days past due1
$395 $10,369 $7,684 $10,992 $3,706 
Gross charge-offs$16,905 $18,251 $26,661 $15,570 $18,917 
Recoveries(2,437)(1,592)(4,232)(1,491)(1,696)
Net charge-offs$14,468 $16,659 $22,429 $14,079 $17,221 
Provision for loan losses
$(21,770)$(14,478)$6,609 $134,365 $95,964 
Provision for credit losses from off-balance sheet unfunded loan commitments
(4,044)8,952 (4,950)4,405 3,377 
Provision for expected credit losses from mortgage banking activities885 (923)(770)(3,575)(6,020)
Provision for credit losses related to held-to maturity (investment) securities portfolio(71)(51)(889)126 450 
Total provision for credit losses$(25,000)$(6,500)$— $135,321 $93,771 
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Three Months Ended
Mar. 31, 2021Dec. 31, 2020Sept. 30, 2020June 30, 2020Mar. 31, 2020
Allowance for loan losses to period end loans
1.56 %1.69 %1.76 %1.80 %1.40 %
Allowance for loan losses to period end loans excluding PPP loans2
1.70 %1.82 %1.93 %1.97 %1.40 %
Combined allowance for loan losses and accrual for off-balance sheet credit risk from unfunded loan commitments to period end loans
1.71 %1.85 %1.88 %1.94 %1.53 %
Combined allowance for loan losses and accrual for off-balance sheet credit risk from unfunded loan commitments to period end loans excluding PPP loans2
1.86 %2.00 %2.06 %2.12 %1.53 %
Nonperforming assets to period end loans and repossessed assets
1.95 %2.07 %1.75 %1.68 %1.30 %
Net charge-offs (annualized) to average loans
0.25 %0.28 %0.37 %0.23 %0.31 %
Net charge-offs (annualized) to average loans excluding PPP loans2
0.28 %0.31 %0.41 %0.25 %0.31 %
Allowance for loan losses to nonaccruing loans1
169.87 %171.24 %195.47 %174.74 %199.35 %
Combined allowance for loan losses and accrual for off-balance sheet credit risk from unfunded loan commitments to nonaccruing loans1
185.72 %187.51 %208.49 %187.94 %217.38 %
1    Excludes residential mortgage loans guaranteed by agencies of the U.S. government.
2    Metric meaningful due to the unique characteristics and short-term nature of the PPP loans.
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SEGMENTS -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands, except ratios)
Three Months Ended1Q21 vs 4Q201Q21 vs 1Q20
Mar. 31, 2021Dec. 31, 2020Mar. 31, 2020$ change% change$ change% change
Commercial Banking
Net interest revenue$130,005 $142,026 $151,407 $(12,021)(8.5)%$(21,402)(14.1)%
Fees and commissions revenue49,847 49,060 41,459 787 1.6 %8,388 20.2 %
Combined net interest and fee revenue179,852 191,086 192,866 (11,234)(5.9)%(13,014)(6.7)%
Other operating expense66,979 68,372 60,752 (1,393)(2.0)%6,227 10.2 %
Corporate expense allocations12,734 5,348 8,905 7,386 138.1 %3,829 43.0 %
Net income69,673 74,941 74,975 (5,268)(7.0)%(5,302)(7.1)%
Average assets28,047,052 27,693,742 24,687,976 353,310 1.3 %3,359,076 13.6 %
Average loans17,522,520 18,100,333 18,812,015 (577,813)(3.2)%(1,289,495)(6.9)%
Average deposits16,130,168 15,373,673 11,907,386 756,495 4.9 %4,222,782 35.5 %
Consumer Banking
Net interest revenue$20,974 $30,672 $43,932 $(9,698)(31.6)%$(22,958)(52.3)%
Fees and commissions revenue52,300 55,326 55,062 (3,026)(5.5)%(2,762)(5.0)%
Combined net interest and fee revenue73,274 85,998 98,994 (12,724)(14.8)%(25,720)(26.0)%
Other operating expense55,743 59,306 53,844 (3,563)(6.0)%1,899 3.5 %
Corporate expense allocations11,487 10,428 10,389 1,059 10.2 %1,098 10.6 %
Net income6,849 14,768 23,701 (7,919)(53.6)%(16,852)(71.1)%
Average assets9,755,539 9,700,428 9,850,853 55,111 0.6 %(95,314)(1.0)%
Average loans1,823,732 1,840,492 1,711,703 (16,760)(0.9)%112,029 6.5 %
Average deposits8,082,443 7,993,971 6,869,481 88,472 1.1 %1,212,962 17.7 %
Wealth Management
Net interest revenue$48,354 $48,521 $18,904 $(167)(0.3)%$29,450 155.8 %
Fees and commissions revenue65,684 82,936 97,881 (17,252)(20.8)%(32,197)(32.9)%
Combined net interest and fee revenue114,038 131,457 116,785 (17,419)(13.3)%(2,747)(2.4)%
Other operating expense78,565 84,000 78,192 (5,435)(6.5)%373 0.5 %
Corporate expense allocations9,887 9,465 8,265 422 4.5 %1,622 19.6 %
Net income19,382 28,435 22,573 (9,053)(31.8)%(3,191)(14.1)%
Average assets18,645,865 18,101,182 12,723,412 544,683 3.0 %5,922,453 46.5 %
Average loans1,917,973 1,839,695 1,705,735 78,278 4.3 %212,238 12.4 %
Average deposits9,706,295 9,589,814 7,623,986 116,481 1.2 %2,082,309 27.3 %
Fiduciary assets56,227,268 55,486,492 43,688,036 740,776 1.3 %12,539,232 28.7 %
Assets under management or administration91,956,188 91,592,247 75,783,829 363,941 0.4 %16,172,359 21.3 %


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