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Derivatives
 9 Months Ended
Sep. 30, 2021
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. Deterioration in the credit rating of customer or other counterparties reduced the fair value of asset contracts. Deterioration of our credit rating could decrease the fair value of our derivative liabilities.

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.
 
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. 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.
 
Trading

BOK Financial may offer derivative instruments such as to-be-announced securities to mortgage banking customers to enable them to manage their market risk or to mitigate the Company's market risk of holding trading securities. Changes in the fair value of derivative instruments for trading purposes or used to mitigate the market risk of holding trading securities are included in Other operating revenue – Brokerage and trading revenue.

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. Changes in the fair value of derivative instruments used in managing interest rate sensitivity and as part of the economic hedge of changes in the fair value of mortgage servicing rights are included in Other operating revenue – Gain (loss) on derivatives, net in the Consolidated Statements of Earnings.

As discussed in Note 5, 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 5 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 September 30, 2021 (in thousands):
Assets
 
Notional1
Gross Fair ValueNetting AdjustmentsNet Fair Value Before Cash CollateralCash CollateralFair Value Net of Cash Collateral
Customer risk management programs:   
Interest rate contracts$3,010,596 $70,372 $(6,971)$63,401 $— $63,401 
Energy contracts5,901,682 1,743,938 (412,176)1,331,762 — 1,331,762 
Agricultural contracts— — — — — — 
Foreign exchange contracts301,216 299,335 — 299,335 (666)298,669 
Equity option contracts48,713 865 — 865 (266)599 
Total customer risk management programs9,262,207 2,114,510 (419,147)1,695,363 (932)1,694,431 
Trading66,331,907 589,601 (383,764)205,837 (1,126)204,711 
Internal risk management programs270,877 7,606 (5,612)1,994 — 1,994 
Total derivative contracts$75,864,991 $2,711,717 $(808,523)$1,903,194 $(2,058)$1,901,136 
Liabilities
 
Notional1
Gross Fair ValueNetting AdjustmentsNet Fair Value Before Cash CollateralCash CollateralFair Value Net of Cash Collateral
Customer risk management programs:   
Interest rate contracts$3,010,596 $70,612 $(6,971)$63,641 $(56,405)$7,236 
Energy contracts5,787,366 1,778,045 (412,176)1,365,869 (1,096,209)269,660 
Agricultural contracts— — — — — — 
Foreign exchange contracts300,212 298,208 — 298,208 — 298,208 
Equity option contracts48,713 865 — 865 — 865 
Total customer risk management programs9,146,887 2,147,730 (419,147)1,728,583 (1,152,614)575,969 
Trading61,791,246 562,083 (383,764)178,319 (16,046)162,273 
Internal risk management programs1,303,792 15,419 (5,612)9,807 (8,408)1,399 
Total derivative contracts$72,241,925 $2,725,232 $(808,523)$1,916,709 $(1,177,068)$739,641 
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, 2020 (in thousands):
Assets
 
Notional 1
Gross Fair ValueNetting AdjustmentsNet Fair Value Before Cash CollateralCash CollateralFair Value Net of Cash Collateral
Customer risk management programs:   
Interest rate contracts$3,212,469 $113,524 $(144)$113,380 $— $113,380 
Energy contracts3,791,565 386,008 (211,468)174,540 — 174,540 
Agricultural contracts14,765 3,859 — 3,859 — 3,859 
Foreign exchange contracts337,001 332,257 — 332,257 (420)331,837 
Equity option contracts70,199 1,222 — 1,222 (285)937 
Total customer risk management programs7,425,999 836,870 (211,612)625,258 (705)624,553 
Trading84,997,593 440,627 (240,655)199,972 (26,958)173,014 
Internal risk management programs995,123 17,352 (4,231)13,121 — 13,121 
Total derivative contracts$93,418,715 $1,294,849 $(456,498)$838,351 $(27,663)$810,688 
Liabilities
 
Notional 1
Gross Fair ValueNetting AdjustmentsNet Fair Value Before Cash CollateralCash CollateralFair Value Net of Cash Collateral
Customer risk management programs:   
Interest rate contracts$3,212,469 $113,900 $(144)$113,756 $(104,202)$9,554 
Energy contracts3,617,678 361,334 (211,468)149,866 (114,070)35,796 
Agricultural contracts14,781 3,844 — 3,844 (3,844)— 
Foreign exchange contracts336,223 331,035 — 331,035 (1,165)329,870 
Equity option contracts70,199 1,222 — 1,222 — 1,222 
Total customer risk management programs7,251,350 811,335 (211,612)599,723 (223,281)376,442 
Trading88,929,916 414,801 (240,655)174,146 (145,692)28,454 
Internal risk management programs145,256 5,529 (4,231)1,298 (415)883 
Total derivative contracts$96,326,522 $1,231,665 $(456,498)$775,167 $(369,388)$405,779 
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
September 30, 2021September 30, 2020
 Brokerage
and Trading Revenue		Gain (Loss) on Derivatives, NetBrokerage
and Trading
Revenue		Gain (Loss) on Derivatives, Net
Customer risk management programs:    
Interest rate contracts$1,283 $— $1,014 $— 
Energy contracts5,528 — 7,460 — 
Agricultural contracts(1)— 6 — 
Foreign exchange contracts120 — 162 — 
Equity option contracts— — — — 
Total customer risk management programs6,930 — 8,642 — 
Trading1
9,952 — (468)— 
Internal risk management programs— (5,760)— 2,354 
Total derivative contracts$16,882 $(5,760)$8,174 $2,354 
1    Represents changes in fair value of to-be-announced securities and other derivative instruments held to mitigate market risk of trading securities portfolio, which is offset by changes in fair value of trading securities also included in Brokerage and Trading Revenue in the Consolidated Statements of Earnings.
 Nine Months Ended
September 30, 2021September 30, 2020
 Brokerage
and Trading Revenue		Gain (Loss) on Derivatives, NetBrokerage
and Trading
Revenue		Gain (Loss) on Derivatives, Net
Customer risk management programs:    
Interest rate contracts3,687 — 2,702 — 
Energy contracts7,142 — 14,850 — 
Agricultural contracts27 — 27 — 
Foreign exchange contracts471 — 527 — 
Equity option contracts— — — — 
Total customer risk management programs11,327 — 18,106 — 
Trading1
(1,976)— (8,546)— 
Internal risk management programs— (14,590)— 42,659 
Total derivative contracts$9,351 $(14,590)$9,560 $42,659 
1    Represents changes in fair value of to-be-announced securities and other derivative instruments held to mitigate market risk of trading securities portfolio, which is offset by changes in fair value of trading securities also included in Brokerage and Trading Revenue in the Consolidated Statements of Earnings.