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BOKF BOK Financial

Filed: 21 Jul 21, 8:01am


Exhibit 99(a)
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                                                    NASD: BOKF
BOK Financial Corporation Reports Quarterly Earnings of $166 million or $2.40 Per Share in the Second Quarter
CEO Commentary
Steven G. Bradshaw, president and chief executive officer, stated, "The organization eclipsed $160 million in net income for the first time on another stellar, broad-based contribution from our Wealth Management team and stable net interest revenues. Additionally, growth in our Healthcare portfolio and steady core C&I this quarter provides a solid foundation as we head into the back half of 2021. While growth in other areas of the loan portfolio remains somewhat constrained by near-term labor and supply chain disruptions, our customers' confidence about future growth is very high, which reaffirms our outlook for the remainder of this year."

Bradshaw continued, "While our top-line strength this quarter was impressive, equally strong was our discipline around operating costs and our excellent credit outcomes. We continue to hold the line on many expense saves gained through the pandemic, driving meaningful earnings leverage. Credit also continues to be a clear differentiator, as oil and natural gas prices rebounded to multi-year highs. Non-performing assets and potential problem loans were both down significantly, and credit costs continue to be at the low end of our historical range. Altogether, this quarter demonstrates just how effectively we can execute on both the top and bottom line and build shareholder value."

Second Quarter 2021 Financial Highlights
Net income was $166.4 million or $2.40 per diluted share for the second quarter of 2021 and $146.1 million or $2.10 per diluted share for the first quarter of 2021.
Net interest revenue totaled $280.3 million, consistent with the prior quarter. Net interest margin was 2.60 percent compared to 2.62 percent in the first quarter of 2021.
Fees and commissions revenue totaled $169.4 million, an increase of $7.3 million. Growth in much of our fee-based business, led by brokerage and trading and fiduciary and asset management revenues, was partially offset by lower mortgage banking revenue.
Operating expense decreased $4.6 million to $291.2 million. The first quarter of 2021 included a $4.0 million charitable donation to the BOKF Foundation that did not recur in the second quarter.
Period-end loans decreased $1.1 billion to $21.4 billion at June 30, 2021. Period-end Paycheck Protection Program ("PPP") loans decreased $727 million to $1.1 billion. Paydowns of energy and commercial real estate loans were partially offset by an increase in healthcare and personal loans. Average loans were $22.2 billion, a $590 million decrease compared to the first quarter of 2021.
Forecasts for improving macroeconomic factors and credit quality metrics resulted in a $35.0 million negative provision for expected credit losses in the second quarter of 2021 and a $25.0 million negative provision in the prior quarter. The combined allowance for credit losses totaled $336 million or 1.66 percent of outstanding loans, excluding PPP loans, at June 30, 2021. The combined allowance for credit losses was $385 million or 1.86 percent of outstanding loans, excluding PPP loans, at March 31, 2021.
Average deposits increased $968 million to $37.5 billion while period-end deposits decreased $413 million to $37.4 billion. Average demand deposits grew by $877 million and average interest bearing deposits grew by $91 million.
The company's common equity Tier 1 capital ratio was 11.95 percent at June 30, 2021. In addition, the company's Tier 1 capital ratio was 12.01 percent, total capital ratio was 13.61 percent, and leverage ratio was 8.58 percent at June 30, 2021. At March 31, 2021, the company's common equity Tier 1 capital ratio was 12.14 percent, Tier 1 capital ratio was 12.21 percent, total capital ratio was 13.98 percent, and leverage ratio was 8.42 percent.
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The company repurchased 492,994 shares of common stock at an average price of $88.84 a share in the second quarter of 2021.
The company intends to redeem the subordinated debt issued in June of 2016 at the interest rate of 5.375 percent using existing capital, saving approximately $8.0 million per year in interest payments.
Commercial Banking contributed $72.6 million to net income in the second quarter of 2021, an increase of $3.0 million compared to the first quarter of 2021. Combined net interest revenue and fee revenue increased $14.4 million, largely due to an increase of $7.5 million in production revenue from repossessed oil and gas properties. This increase was supplemented by growth in customer hedging revenue, syndication fees and transaction card revenue. These increases were partially offset by a decrease in net gains on sales of repossessed assets. Operating expense increased $4.4 million, primarily due to an increase in operating expenses on repossessed assets. Average Commercial Banking loans decreased $541 million due to purposeful deleveraging by our customers. Average Commercial Banking deposits grew 6 percent to $17.0 billion in the first quarter.
Consumer Banking contributed $1.7 million to net income in the second quarter of 2021, a decrease of $5.3 million compared to the prior quarter. Combined net interest revenue and fee revenue decreased $10.6 million. Net interest revenue increased $4.0 million, mainly due to favorable yields on deposits sold to our Funds Management unit. Fees and commissions revenue decreased $14.6 million, largely due to reduced mortgage production volume and margin compression. Operating expense decreased $3.2 million, primarily due to lower mortgage banking costs. Average Consumer Banking deposits grew by 5 percent to $8.5 billion.
Wealth Management contributed $31.1 million to net income in the second quarter of 2021, an increase of $11.7 million compared to the first quarter. Combined net interest revenue and fee revenue increased $17.1 million. Brokerage and trading revenue and related net interest revenue increased $10.5 million to $62.2 million due to growth in agency residential mortgage trading volumes and higher margin market opportunities. Fiduciary and asset management revenue increased $3.7 million to $45 million, largely due to seasonal tax preparation fees combined with higher oil and gas asset management fees. Trust business line fees also grew as a result of higher client asset balances. Assets under management were $96.6 billion, an increase of $4.7 billion compared to the prior quarter.
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Net Interest Revenue
Net interest revenue was $280.3 million for the second quarter of 2021, largely unchanged compared to the first quarter of 2021. Net interest margin was 2.60 percent compared to 2.62 percent in the prior quarter.
Average earning assets decreased $354 million compared to the first quarter of 2021. Average loan balances decreased $590 million, largely due to energy and commercial real estate paydowns. Available for sale securities decreased $190 million. Average trading securities grew by $467 million. Other borrowings increased $216 million while funds purchased and repurchase agreements decreased $1.0 billion.
The yield on average earning assets was 2.75 percent, a 3 basis point decrease from the prior quarter. The yield on the available for sale securities portfolio increased 1 basis point to 1.85 percent. The loan portfolio yield decreased 1 basis point to 3.54 percent.
Funding costs were 0.21 percent, down 3 basis points. The cost of interest-bearing deposits decreased 3 basis points to 0.14 percent. The cost of other borrowed funds decreased 2 basis points to 0.28 percent. The benefit to net interest margin from assets funded by non-interest liabilities was 6 basis points for the second quarter of 2021, compared to 8 basis points for the prior quarter.
Operating Revenue
Fees and commissions revenue totaled $169.4 million for the second quarter of 2021, an increase of $7.3 million compared to the prior quarter. Brokerage and trading revenue increased $8.6 million to $29.4 million, including a $9.3 million increase in trading revenue. An increase in agency residential mortgage-backed securities trading volumes and higher margin market opportunities combined to grow trading revenue. Fiduciary and asset management revenue grew $3.5 million, primarily due to seasonal tax preparation fees. Trust business line fees also grew as a result of higher client asset balances. Transaction card revenue increased $2.5 million due to higher transaction volumes with the broader reopening of the U.S. economy. Deposit service charges increased $1.7 million, primarily related to commercial accounts where lower earnings credit rates caused by the low interest rate environment have resulted in higher service charges. Other revenue increased $6.9 million as a result of higher operating revenue from repossessed oil and gas properties.
Mortgage banking revenue decreased $15.9 million compared to the prior quarter due to lower mortgage loan production volume and gain on sale margin compression. Mortgage production volume decreased $206 million to $644 million as a result of industry-wide housing inventory constraints, changes to government-sponsored entity delivery limits on loans secured by second homes and investment properties, and overall market conditions. The realized margin on funded mortgage loans decreased 35 basis points to 2.75 percent while the gain on sale margin, which includes unrealized gains and losses on our mortgage commitment pipeline and related hedges, decreased 143 basis points to 1.55 percent. Margins were compressed largely due to competitive pricing pressure and timing of settlements.
Other gains and losses, net increased $6.3 million over the prior quarter. Increases in gains on alternative investments were partially offset by a decrease in net gains on sales of repossessed assets.
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Operating Expense
Total operating expense was $291.2 million for the second quarter of 2021, a decrease of $4.6 million compared to the prior quarter.
The first quarter of 2021 included a $4.0 million charitable donation to the BOKF Foundation that did not recur in the second quarter. Excluding this effect, non-personnel expense was largely unchanged. A decrease in mortgage banking costs related to lower prepayments and data processing and communications expense was offset by increased operating expenses on repossessed assets. Personnel expense decreased $1.0 million.
Loans, Deposits and Capital
Loans
Outstanding loans were $21.4 billion at June 30, 2021, a $1.1 billion decrease compared to March 31, 2021, led by lower PPP loan balances. Additional paydowns of energy loans and commercial real estate loans were partially offset by an increase in healthcare loans.
Outstanding commercial loan balances decreased $185 million compared to March 31, 2021, primarily due to lower energy loan balances. 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 $191 million to $3.0 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 $2.6 billion at June 30, 2021, consistent with March 31, 2021.
Healthcare sector loan balances increased $91 million compared to the prior quarter, totaling $3.4 billion or 16 percent of total loans. Our healthcare sector loans primarily consist of $2.7 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.
General business loans decreased $52 million to $2.7 billion or 13 percent of total loans. General business loans include $1.4 billion of wholesale/retail loans and $1.3 billion of loans from other commercial industries.
Services loan balances decreased $32 million to $3.4 billion or 16 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.
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Commercial real estate loan balances decreased $256 million compared to March 31, 2021 and represent 20 percent of total loans at June 30, 2021, largely due to refinancing in the long term, non-recourse markets. Multifamily residential loans, decreased $263 million to $965 million at June 30, 2021. Loans secured by office facilities decreased $21 million to $1.1 billion. Loans secured by other commercial real estate properties decreased $14 million to $471 million. Loans secured by industrial facilities increased $35 million to $825 million. Loans secured by retail facilities were largely unchanged compared to March 31, 2021.
PPP loan balances decreased $727 million to $1.1 billion or 5 percent of total loans. The rate of paydowns of the first round of PPP loans has increased in the second quarter.
Loans to individuals increased $51 million and represent 17 percent of total loans at June 30, 2021. Personal loans were up $82 million while residential mortgage loans decreased $25 million.
Deposits
Period-end deposits totaled $37.4 billion at June 30, 2021, a $413 million decrease compared to March 31, 2021. Demand deposit account balances grew by $277 million and interest-bearing transaction account balances decreased by $612 million. Average deposits were $37.5 billion at June 30, 2021, a $968 million increase compared to March 31, 2021. Demand deposit account balances increased $877 million primarily from deposits attributed to the Commercial Banking segment.
Capital
The company's common equity Tier 1 capital ratio was 11.95 percent at June 30, 2021. In addition, the company's Tier 1 capital ratio was 12.01 percent, total capital ratio was 13.61 percent, and leverage ratio was 8.58 percent at June 30, 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 19     basis points to the company's common equity tier 1 capital ratio at June 30. At March 31, 2021, the company's common equity Tier 1 capital ratio was 12.14 percent, Tier 1 capital ratio was 12.21 percent, total capital ratio was 13.98 percent, and leverage ratio was 8.42 percent.
The company's tangible common equity ratio, a non-GAAP measure, was 9.09 percent at June 30, 2021 and 8.82 percent at March 31, 2021. 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 492,994 shares of common stock at an average price of $88.84 a share in the second quarter of 2021. We view share buybacks opportunistically, but within the context of maintaining our strong capital position.
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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 $35.0 million negative provision for credit losses in the second quarter of 2021, primarily due to changes in our reasonable and supportable forecasts of macroeconomic variables as a result of continued improvement in the economic outlook related to the anticipated impact of the on-going COVID-19 pandemic and improving credit quality metrics. Decreased allowance due to lower loan balances was offset by losses during the quarter.

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. Continued easing of restrictions and the release of pent-up consumer demand results in GDP growth above historical averages throughout 2021, but begins to moderate in 2022. We expect a 4.8 percent increase in GDP over the next twelve months. This scenario also assumes the expiration of expanded unemployment insurance benefits is a catalyst for hiring activity during the second half of 2021. Our forecasted civilian unemployment rate is 5.5 percent for the third quarter of 2021, improving to 4.7 percent by the second quarter of 2022. WTI oil prices are projected to generally follow the NYMEX forward curve that existed at the end of June 2021, averaging $67.04 per barrel over the next twelve months.

The probability weighting of our base case reasonable and supportable forecast increased to 70 percent in the second quarter of 2021 compared to 60 percent in the first quarter of 2021 as the level of uncertainty in the current economic outlook continues to improve. Our downside case, probability weighted at 20 percent, assumes additional waves and hotspots emerge in areas of the country with lower vaccination rates stemming from the impact of new virus strains, such as the current Delta variant, as the U.S. enters the fall and winter months. This results in a relatively mild recession with conditions beginning to improve in the spring of 2022.

The allowance for loan losses totaled $312 million or 1.46 percent of outstanding loans and 183 percent of nonaccruing loans at June 30, 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 $336 million or 1.57 percent of outstanding loans and 197 percent of nonaccruing loans at June 30, 2021. Excluding PPP loans, the allowance for loan losses was 1.54 percent of outstanding loans and the combined allowance for loan losses and accrual for off-balance sheet credit risk from unfunded loan commitments was 1.66 percent.

At March 31, 2021, the allowance for loan losses was $352 million or 1.56 percent of outstanding loans and 170 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 $385 million or 1.71 percent of outstanding loans and 186 percent of nonaccruing loans.
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Nonperforming assets totaled $408 million or 1.90 percent of outstanding loans and repossessed assets at June 30, 2021, down from $442 million or 1.95 percent at March 31, 2021. Nonperforming assets that are not guaranteed by U.S. government agencies totaled $228 million or 1.14 percent of outstanding loans and repossessed assets at June 30, 2021, compared to $278 million or 1.37 percent at March 31, 2021. The decrease in nonperforming assets was primarily related to a decrease in nonaccruing energy loans and sales of energy-related repossessed assets during the second quarter of 2021.
Nonaccruing loans were $180 million or 0.89 percent of outstanding loans, excluding PPP loans, at June 30, 2021. Nonaccruing commercial loans totaled $113 million or 0.90 percent of outstanding commercial loans. Nonaccruing commercial real estate loans totaled $26 million or 0.62 percent of outstanding commercial real estate loans. Nonaccruing loans to individuals totaled $41 million or 1.14 percent of outstanding loans to individuals.
Nonaccruing loans decreased $36 million compared to March 31, 2021, primarily due to a decrease in nonaccruing energy loans. New nonaccruing loans identified in the second quarter totaled $13 million, offset by $31 million in payments received and $18 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 $384 million at June 30, 2021, down from $422 million at March 31. Potential problem energy, services and general business loans all decreased compared to the prior quarter.
Net charge-offs were $15.4 million or 0.30 percent of average loans on an annualized basis for the second quarter of 2021, excluding PPP loans. Net charge-offs were 0.32 percent of average loans over the last four quarters. 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. Gross charge-offs were $18.3 million for the second quarter compared to $16.9 million for the previous quarter. Recoveries totaled $2.9 million for the second quarter of 2021 and $2.4 million for the first quarter of 2021.
Securities and Derivatives
The fair value of the available for sale securities portfolio totaled $13.3 billion at June 30, 2021, a $92 million decrease compared to March 31, 2021. At June 30, 2021, the available for sale securities portfolio consisted primarily of $8.6 billion of residential mortgage-backed securities fully backed by U.S. government agencies and $4.3 billion of commercial mortgage-backed securities fully backed by U.S. government agencies. At June 30, 2021, the available for sale securities portfolio had a net unrealized gain of $297 million compared to $290 million at March 31, 2021.
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 $12 million to $60 million at June 30, 2021.
The net economic benefit of the changes in the fair value of mortgage servicing rights and related economic hedges was $4.4 million during the second quarter of 2021, including a $17.1 million increase in the fair value of securities and derivative contracts held as an economic hedge, $13.0 million decrease in the fair value of mortgage servicing rights, and $341 thousand of related net interest revenue.

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Conference Call and Webcast
The company will hold a conference call at 9 a.m. Central time on Wednesday, July 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 # 13721197.
About BOK Financial Corporation
BOK Financial Corporation is a $47 billion regional financial services company headquartered in Tulsa, Oklahoma with $97 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 June 30, 2021 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 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)
June 30, 2021Mar. 31, 2021
ASSETS
Cash and due from banks$678,998 $723,983 
Interest-bearing cash and cash equivalents580,457 695,213 
Trading securities5,699,070 5,085,949 
Investment securities, net of allowance220,832 226,121 
Available for sale securities13,317,922 13,410,057 
Fair value option securities60,432 72,498 
Restricted equity securities134,885 139,614 
Residential mortgage loans held for sale200,842 284,447 
Loans:
Commercial12,472,907 12,657,784 
Commercial real estate4,246,992 4,503,347 
Paycheck protection program1,121,583 1,848,550 
Loans to individuals3,574,967 3,524,166 
Total loans21,416,449 22,533,847 
Allowance for loan losses(311,890)(352,402)
Loans, net of allowance21,104,559 22,181,445 
Premises and equipment, net556,400 555,455 
Receivables195,763 250,852 
Goodwill1,048,091 1,048,091 
Intangible assets, net105,694 110,585 
Mortgage servicing rights117,629 132,915 
Real estate and other repossessed assets, net57,337 70,911 
Derivative contracts, net1,701,443 1,289,156 
Cash surrender value of bank-owned life insurance401,163 401,320 
Receivable on unsettled securities sales70,954 67,759 
Other assets901,904 696,142 
TOTAL ASSETS$47,154,375 $47,442,513 
LIABILITIES AND EQUITY
Deposits:
Demand$13,380,409 $13,103,170 
Interest-bearing transaction21,278,719 21,890,874 
Savings875,456 854,226 
Time1,905,349 2,004,356 
Total deposits37,439,933 37,852,626 
Funds purchased and repurchase agreements730,183 795,161 
Other borrowings1,546,231 1,708,517 
Subordinated debentures276,043 276,024 
Accrued interest, taxes and expense199,014 290,328 
Due on unsettled securities purchases576,536 106,835 
Derivative contracts, net612,261 719,556 
Other liabilities419,623 431,122 
TOTAL LIABILITIES41,799,824 42,180,169 
Shareholders' equity:
Capital, surplus and retained earnings5,106,209 5,018,053 
Accumulated other comprehensive gain226,768 221,409 
TOTAL SHAREHOLDERS' EQUITY5,332,977 5,239,462 
Non-controlling interests21,574 22,882 
TOTAL EQUITY5,354,551 5,262,344 
TOTAL LIABILITIES AND EQUITY$47,154,375 $47,442,513 

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AVERAGE BALANCE SHEETS -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands)
Three Months Ended
June 30, 2021Mar. 31, 2021Dec. 31, 2020Sept. 30, 2020June 30, 2020
ASSETS
Interest-bearing cash and cash equivalents$659,312 $711,047 $643,926 $553,070 $619,737 
Trading securities7,430,217 6,963,617 6,888,189 1,834,160 1,871,647 
Investment securities, net of allowance221,401 237,313 251,863 258,965 268,947 
Available for sale securities13,243,542 13,433,767 12,949,702 12,580,850 12,480,065 
Fair value option securities64,864 104,662 122,329 387,784 786,757 
Restricted equity securities208,692 189,921 280,428 144,415 273,922 
Residential mortgage loans held for sale218,200 207,013 229,631 213,125 288,588 
Loans:
Commercial12,402,925 12,908,461 13,113,449 13,772,217 14,502,652 
Commercial real estate4,395,848 4,547,945 4,788,393 4,754,269 4,543,511 
Paycheck protection program1,668,047 1,741,534 1,928,665 2,092,933 1,699,369 
Loans to individuals3,700,269 3,559,067 3,617,011 3,491,044 3,353,960 
Total loans22,167,089 22,757,007 23,447,518 24,110,463 24,099,492 
Allowance for loan losses(345,269)(382,734)(414,225)(441,831)(367,583)
Loans, net of allowance21,821,820 22,374,273 23,033,293 23,668,632 23,731,909 
Total earning assets43,868,048 44,221,613 44,399,361 39,641,001 40,321,572 
Cash and due from banks763,393 760,691 742,432 723,826 678,878 
Derivative contracts, net1,022,137 873,712 553,779 581,839 642,969 
Cash surrender value of bank-owned life insurance401,760 399,830 397,354 394,680 391,951 
Receivable on unsettled securities sales716,700 735,482 1,094,198 4,563,301 4,626,307 
Other assets3,424,884 3,319,305 3,200,040 3,027,108 3,095,354 
TOTAL ASSETS$50,196,922 $50,310,633 $50,387,164 $48,931,755 $49,757,031 
LIABILITIES AND EQUITY
Deposits:
Demand$13,189,954 $12,312,629 $12,136,071 $11,929,694 $11,489,322 
Interest-bearing transaction21,491,145 21,433,406 20,718,390 19,752,106 18,040,170 
Savings872,618 789,656 737,360 707,121 656,669 
Time1,936,510 1,986,425 1,930,808 2,251,012 2,464,793 
Total deposits37,490,227 36,522,116 35,522,629 34,639,933 32,650,954 
Funds purchased and repurchase agreements1,790,490 2,830,378 2,153,254 2,782,150 5,816,484 
Other borrowings3,608,369 3,392,346 5,193,656 3,382,688 3,527,303 
Subordinated debentures276,034 276,015 275,998 275,980 275,949 
Derivative contracts, net366,202 428,488 399,476 458,390 836,667 
Due on unsettled securities purchases701,495 915,410 957,642 1,516,880 887,973 
Other liabilities634,460 671,715 656,147 712,674 690,087 
TOTAL LIABILITIES44,867,277 45,036,468 45,158,802 43,768,695 44,685,417 
Total equity5,329,645 5,274,165 5,228,362 5,163,060 5,071,614 
TOTAL LIABILITIES AND EQUITY$50,196,922 $50,310,633 $50,387,164 $48,931,755 $49,757,031 

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STATEMENTS OF EARNINGS -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands, except per share data)
Three Months EndedSix Months Ended
June 30,June 30,
2021202020212020
Interest revenue$295,893 $306,384 $594,132 $655,321 
Interest expense15,584 28,280 33,403 115,857 
Net interest revenue280,309 278,104 560,729 539,464 
Provision for credit losses(35,000)135,321 (60,000)229,092 
Net interest revenue after provision for credit losses315,309 142,783 620,729 310,372 
Other operating revenue:
Brokerage and trading revenue29,408 62,022 50,190 112,801 
Transaction card revenue24,923 22,940 47,353 44,821 
Fiduciary and asset management revenue44,832 41,257 86,154 85,715 
Deposit service charges and fees25,861 22,046 50,070 48,176 
Mortgage banking revenue21,219 53,936 58,332 91,103 
Other revenue23,172 11,479 39,468 23,788 
Total fees and commissions169,415 213,680 331,567 406,404 
Other gains (losses), net16,449 7,347 26,570 (3,391)
Gain (loss) on derivatives, net18,820 21,885 (8,830)40,305 
Gain (loss) on fair value option securities, net(1,627)(14,459)(3,537)53,934 
Change in fair value of mortgage servicing rights(13,041)(761)20,833 (89,241)
Gain on available for sale securities, net1,430 5,580 1,897 5,583 
Total other operating revenue191,446 233,272 368,500 413,594 
Other operating expense:
Personnel172,035 176,235 345,045 332,416 
Business promotion2,744 1,935 4,898 8,150 
Charitable contributions to BOKF Foundation— 3,000 4,000 3,000 
Professional fees and services12,361 12,161 24,341 25,109 
Net occupancy and equipment26,633 30,675 53,295 56,736 
Insurance3,660 5,156 8,280 10,136 
Data processing and communications36,418 32,942 73,885 65,685 
Printing, postage and supplies4,285 3,502 7,725 7,774 
Amortization of intangible assets4,578 5,190 9,385 10,284 
Mortgage banking costs11,126 15,598 25,069 26,143 
Other expense17,312 9,572 31,013 19,160 
Total other operating expense291,152 295,966 586,936 564,593 
Net income before taxes215,603 80,089 402,293 159,373 
Federal and state income taxes48,496 15,803 90,878 33,103 
Net income167,107 64,286 311,415 126,270 
Net income (loss) attributable to non-controlling interests686 (407)(1,066)(502)
Net income attributable to BOK Financial Corporation shareholders$166,421 $64,693 $312,481 $126,772 
Average shares outstanding:
Basic68,815,666 69,876,043 68,975,743 69,999,865 
Diluted68,817,442 69,877,467 68,978,798 70,003,817 
Net income per share:
Basic$2.40 $0.92 $4.50 $1.80 
Diluted$2.40 $0.92 $4.50 $1.80 


11


FINANCIAL HIGHLIGHTS -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands, except ratio and share data)
Three Months Ended
June 30, 2021Mar. 31, 2021Dec. 31, 2020Sept. 30, 2020June 30, 2020
Capital:
Period-end shareholders' equity$5,332,977 $5,239,462 $5,266,266 $5,218,787 $5,096,995 
Risk weighted assets$33,824,860 $32,623,108 $32,492,277 $31,529,826 $32,180,602 
Risk-based capital ratios:
Common equity tier 111.95 %12.14 %11.95 %12.07 %11.44 %
Tier 112.01 %12.21 %11.95 %12.07 %11.44 %
Total capital13.61 %13.98 %13.82 %14.05 %13.43 %
Leverage ratio8.58 %8.42 %8.28 %8.39 %7.74 %
Tangible common equity ratio1
9.09 %8.82 %9.02 %9.02 %8.79 %
Common stock:
Book value per share$77.20 $75.33 $75.62 $74.23 $72.50 
Tangible book value per share$60.50 $58.67 $58.94 $57.64 $55.83 
Market value per share:
High$93.00 $98.95 $73.07 $62.86 $67.62 
Low$83.59 $67.57 $50.09 $48.41 $37.80 
Cash dividends paid$35,925 $36,038 $36,219 $35,799 $35,769 
Dividend payout ratio21.59 %24.67 %23.48 %23.24 %55.29 %
Shares outstanding, net69,078,458 69,557,873 69,637,600 70,305,833 70,306,690 
Stock buy-back program:
Shares repurchased492,994 260,000 665,100 — — 
Amount$43,797 $20,071 $42,450 $— $— 
Average price per share$88.84 $77.20 $63.82 $— $— 
Performance ratios (quarter annualized):
Return on average assets1.33 %1.18 %1.22 %1.25 %0.52 %
Return on average equity12.58 %11.28 %11.75 %11.89 %5.14 %
Net interest margin2.60 %2.62 %2.72 %2.81 %2.83 %
Efficiency ratio64.20 %66.26 %62.77 %59.57 %59.68 %
Reconciliation of non-GAAP measures:
1 Tangible common equity ratio:
Total shareholders' equity$5,332,977 $5,239,462 $5,266,266 $5,218,787 $5,096,995 
Less: Goodwill and intangible assets, net1,153,785 1,158,676 1,161,527 1,166,615 1,171,686 
Tangible common equity$4,179,192 $4,080,786 $4,104,739 $4,052,172 $3,925,309 
Total assets$47,154,375 $47,442,513 $46,671,088 $46,067,224 $45,819,874 
Less: Goodwill and intangible assets, net1,153,785 1,158,676 1,161,527 1,166,615 1,171,686 
Tangible assets$46,000,590 $46,283,837 $45,509,561 $44,900,609 $44,648,188 
Tangible common equity ratio9.09 %8.82 %9.02 %9.02 %8.79 %
12


Three Months Ended
June 30, 2021Mar. 31, 2021Dec. 31, 2020Sept. 30, 2020June 30, 2020
Pre-provision net revenue:
Net income before taxes$215,603 $186,690 $199,847 $204,644 $80,089 
Provision for expected credit losses(35,000)(25,000)(6,500)— 135,321 
Net income (loss) attributable to non-controlling interests686 (1,752)485 58 (407)
Pre-provision net revenue$179,917 $163,442 $192,862 $204,586 $215,817 
Other data:
Tax equivalent interest$2,320 $2,301 $2,414 $2,457 $2,630 
Net unrealized gain on available for sale securities$297,267 $290,217 $440,814 $480,563 $487,334 
Mortgage banking:
Mortgage production revenue$10,004 $25,287 $26,662 $38,431 $39,185 
Mortgage loans funded for sale$754,893 $843,053 $998,435 $1,032,472 $1,184,249 
Add: current period-end outstanding commitments276,154 387,465 380,637 560,493 546,304 
Less: prior period end outstanding commitments387,465 380,637 560,493 546,304 657,570 
Total mortgage production volume$643,582 $849,881 $818,579 $1,046,661 $1,072,983 
Mortgage loan refinances to mortgage loans funded for sale48 %65 %58 %54 %71 %
Realized margin on funded mortgage loans2.75 %3.10 %3.78 %3.52 %2.04 %
Gain on sale margin1.55 %2.98 %3.26 %3.67 %3.65 %
Mortgage servicing revenue$11,215 $11,826 $12,636 $13,528 $14,751 
Average outstanding principal balance of mortgage loans serviced for others15,065,173 15,723,231 16,518,208 17,434,215 19,319,872 
Average mortgage servicing revenue rates0.30 %0.31 %0.30 %0.31 %0.31 %
Gain (loss) on mortgage servicing rights, net of economic hedge:
Gain (loss) on mortgage hedge derivative contracts, net$18,764 $(27,705)$(385)$2,295 $21,815 
Gain (loss) on fair value option securities, net(1,627)(1,910)68 (754)(14,459)
Gain (loss) on economic hedge of mortgage servicing rights17,137 (29,615)(317)1,541 7,356 
Gain (loss) on changes in fair value of mortgage servicing rights(13,041)33,874 6,276 3,441 (761)
Gain on changes in fair value of mortgage servicing rights, net of economic hedges, included in other operating revenue4,096 4,259 5,959 4,982 6,595 
Net interest revenue on fair value option securities2
341 393 550 1,565 2,702 
Total economic benefit of changes in the fair value of mortgage servicing rights, net of economic hedges$4,437 $4,652 $6,509 $6,547 $9,297 
2     Actual interest earned on fair value option securities less internal transfer-priced cost of funds.


13


QUARTERLY EARNINGS TREND -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands, except ratio and per share data)
Three Months Ended
June 30, 2021Mar. 31, 2021Dec. 31, 2020Sept. 30, 2020June 30, 2020
Interest revenue$295,893 $298,239 $319,020 $294,659 $306,384 
Interest expense15,584 17,819 21,790 22,909 28,280 
Net interest revenue280,309 280,420 297,230 271,750 278,104 
Provision for credit losses(35,000)(25,000)(6,500)— 135,321 
Net interest revenue after provision for credit losses315,309 305,420 303,730 271,750 142,783 
Other operating revenue:
Brokerage and trading revenue29,408 20,782 39,506 69,526 62,022 
Transaction card revenue24,923 22,430 21,896 23,465 22,940 
Fiduciary and asset management revenue44,832 41,322 41,799 39,931 41,257 
Deposit service charges and fees25,861 24,209 24,343 24,286 22,046 
Mortgage banking revenue21,219 37,113 39,298 51,959 53,936 
Other revenue23,172 16,296 14,209 13,698 11,479 
Total fees and commissions169,415 162,152 181,051 222,865 213,680 
Other gains, net16,449 10,121 7,394 2,044 7,347 
Gain (loss) on derivatives, net18,820 (27,650)(339)2,354 21,885 
Gain (loss) on fair value option securities, net(1,627)(1,910)68 (754)(14,459)
Change in fair value of mortgage servicing rights(13,041)33,874 6,276 3,441 (761)
Gain (loss) on available for sale securities, net1,430 467 4,339 (12)5,580 
Total other operating revenue191,446 177,054 198,789 229,938 233,272 
Other operating expense:
Personnel172,035 173,010 176,198 179,860 176,235 
Business promotion2,744 2,154 3,728 2,633 1,935 
Charitable contributions to BOKF Foundation— 4,000 6,000 — 3,000 
Professional fees and services12,361 11,980 14,254 14,074 12,161 
Net occupancy and equipment26,633 26,662 27,875 28,111 30,675 
Insurance3,660 4,620 4,006 5,848 5,156 
Data processing and communications36,418 37,467 35,061 34,751 32,942 
Printing, postage and supplies4,285 3,440 3,805 3,482 3,502 
Amortization of intangible assets4,578 4,807 5,088 5,071 5,190 
Mortgage banking costs11,126 13,943 14,765 15,803 15,598 
Other expense17,312 13,701 11,892 7,411 9,572 
Total other operating expense291,152 295,784 302,672 297,044 295,966 
Net income before taxes215,603 186,690 199,847 204,644 80,089 
Federal and state income taxes48,496 42,382 45,138 50,552 15,803 
Net income167,107 144,308 154,709 154,092 64,286 
Net income (loss) attributable to non-controlling interests686 (1,752)485 58 (407)
Net income attributable to BOK Financial Corporation shareholders$166,421 $146,060 $154,224 $154,034 $64,693 
Average shares outstanding:
Basic68,815,666 69,137,375 69,489,597 69,877,866 69,876,043 
Diluted68,817,442 69,141,710 69,493,050 69,879,290 69,877,467 
Net income per share:
Basic$2.40 $2.10 $2.21 $2.19 $0.92 
Diluted$2.40 $2.10 $2.21 $2.19 $0.92 
14


LOANS TREND -- UNAUDITED
BOK FINANCIAL CORPORATION
(In thousands)
June 30, 2021Mar. 31, 2021Dec. 31, 2020Sept. 30, 2020June 30, 2020
Commercial:     
Services$3,389,756 $3,421,948 $3,508,583 $3,545,825 $3,779,881 
Healthcare3,381,261 3,290,758 3,305,990 3,325,790 3,289,343 
Energy3,011,331 3,202,488 3,469,194 3,717,101 3,974,174 
General business2,690,559 2,742,590 2,793,768 2,976,990 3,115,112 
Total commercial12,472,907 12,657,784 13,077,535 13,565,706 14,158,510 
Commercial real estate:
Office1,073,346 1,094,060 1,085,257 1,099,563 973,995 
Multifamily964,824 1,227,915 1,328,045 1,387,461 1,407,107 
Industrial824,577 789,437 810,510 792,389 723,005 
Retail784,445 787,648 796,223 786,211 780,467 
Residential construction and land development128,939 119,079 119,394 121,258 136,911 
Other commercial real estate470,861 485,208 559,109 506,818 532,659 
Total commercial real estate4,246,992 4,503,347 4,698,538 4,693,700 4,554,144 
Paycheck protection program1,121,583 1,848,550 1,682,310 2,097,325 2,081,428 
Loans to individuals:     
Residential mortgage1,772,627 1,797,478 1,863,003 1,849,144 1,813,442 
Residential mortgages guaranteed by U.S. government agencies413,806 420,051 408,687 384,247 322,269 
Personal1,388,534 1,306,637 1,277,447 1,213,178 1,226,097 
Total loans to individuals3,574,967 3,524,166 3,549,137 3,446,569 3,361,808 
Total$21,416,449 $22,533,847 $23,007,520 $23,803,300 $24,155,890 
15


LOANS MANAGED BY PRINCIPAL MARKET AREA -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands)
June 30, 2021Mar. 31, 2021Dec. 31, 2020Sept. 30, 2020June 30, 2020
Texas:
Commercial$5,690,901 $5,748,345 $5,926,534 $6,135,471 $6,359,206 
Commercial real estate1,403,751 1,511,714 1,519,217 1,523,226 1,413,108 
Paycheck protection program342,933 537,899 501,079 614,970 612,133 
Loans to individuals885,619 848,194 855,410 794,055 749,531 
Total Texas8,323,204 8,646,152 8,802,240 9,067,722 9,133,978 
Oklahoma:
Commercial2,840,560 2,975,477 3,144,782 3,332,244 3,489,259 
Commercial real estate552,673 597,840 597,733 608,448 596,419 
Paycheck protection program242,880 468,002 413,108 487,247 442,518 
Loans to individuals2,063,419 2,043,705 2,052,784 2,034,576 1,966,032 
Total Oklahoma5,699,532 6,085,024 6,208,407 6,462,515 6,494,228 
Colorado:
Commercial1,904,182 1,910,826 1,929,320 1,993,364 2,085,294 
Commercial real estate656,521 777,786 879,648 893,626 940,622 
Paycheck protection program299,712 436,540 377,111 494,910 488,279 
Loans to individuals262,796 264,759 264,295 257,832 265,359 
Total Colorado3,123,211 3,389,911 3,450,374 3,639,732 3,779,554 
Arizona:
Commercial1,239,270 1,207,089 1,219,072 1,218,769 1,346,037 
Commercial real estate705,497 667,766 726,111 702,291 698,818 
Paycheck protection program104,946 208,481 211,725 272,114 318,961 
Loans to individuals178,481 179,031 177,948 166,203 177,155 
Total Arizona2,228,194 2,262,367 2,334,856 2,359,377 2,540,971 
Kansas/Missouri:
Commercial388,291 421,974 455,914 493,606 481,162 
Commercial real estate406,055 395,590 366,821 352,663 314,926 
Paycheck protection program41,954 60,741 56,011 80,230 76,724 
Loans to individuals103,092 104,954 105,995 96,598 102,577 
Total Kansas/Missouri939,392 983,259 984,741 1,023,097 975,389 
New Mexico:
Commercial304,804 307,395 303,833 288,374 308,090 
Commercial real estate437,996 448,298 473,204 473,697 458,230 
Paycheck protection program86,716 124,059 109,881 133,244 128,058 
Loans to individuals68,177 70,491 75,665 79,890 83,470 
Total New Mexico897,693 950,243 962,583 975,205 977,848 
Arkansas:
Commercial104,899 86,678 98,080 103,878 89,462 
Commercial real estate84,499 104,353 135,804 139,749 132,021 
Paycheck protection program2,442 12,828 13,395 14,610 14,755 
Loans to individuals13,383 13,032 17,040 17,415 17,684 
Total Arkansas205,223 216,891 264,319 275,652 253,922 
TOTAL BOK FINANCIAL$21,416,449 $22,533,847 $23,007,520 $23,803,300 $24,155,890 
Loans attributed to a principal market may not always represent the location of the borrower or the collateral.
16


DEPOSITS BY PRINCIPAL MARKET AREA -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands)
June 30, 2021Mar. 31, 2021Dec. 31, 2020Sept. 30, 2020June 30, 2020
Oklahoma:
    Demand$4,985,542 $4,823,436 $4,329,205 $4,493,978 $4,378,786 
    Interest-bearing:
       Transaction12,065,844 12,828,070 12,603,658 12,586,449 11,438,549 
       Savings500,344 487,862 420,996 401,062 387,557 
       Time1,139,980 1,197,517 1,134,453 1,081,176 1,330,619 
    Total interest-bearing13,706,168 14,513,449 14,159,107 14,068,687 13,156,725 
Total Oklahoma18,691,710 19,336,885 18,488,312 18,562,665 17,535,511 
Texas:
    Demand3,752,790 3,592,969 3,449,882 3,152,106 3,070,728 
    Interest-bearing:
       Transaction4,335,113 4,257,234 3,800,427 3,482,555 3,358,030 
       Savings160,805 154,406 139,173 136,787 128,892 
       Time346,577 368,086 383,062 438,337 476,867 
    Total interest-bearing4,842,495 4,779,726 4,322,662 4,057,679 3,963,789 
Total Texas8,595,285 8,372,695 7,772,544 7,209,785 7,034,517 
Colorado:
    Demand1,991,343 2,115,354 2,168,404 2,057,603 2,096,075 
    Interest-bearing:
       Transaction2,159,819 2,100,135 2,170,485 1,861,763 1,816,604 
       Savings73,990 73,446 69,384 68,230 67,477 
       Time193,787 204,973 208,778 226,780 254,845 
    Total interest-bearing2,427,596 2,378,554 2,448,647 2,156,773 2,138,926 
Total Colorado4,418,939 4,493,908 4,617,051 4,214,376 4,235,001 
New Mexico:
    Demand1,197,412 1,131,713 941,074 964,908 965,877 
    Interest-bearing:
       Transaction723,757 736,923 733,007 713,418 752,565 
       Savings105,837 103,591 91,646 85,463 80,242 
       Time174,665 181,863 186,307 200,525 222,370 
    Total interest-bearing1,004,259 1,022,377 1,010,960 999,406 1,055,177 
Total New Mexico2,201,671 2,154,090 1,952,034 1,964,314 2,021,054 
Arizona:
    Demand943,511 915,439 905,201 928,671 985,757 
    Interest-bearing:
       Transaction820,901 835,795 768,220 771,319 780,500 
       Savings13,496 13,235 12,174 11,498 15,669 
       Time30,012 30,997 32,721 36,929 42,318 
    Total interest-bearing864,409 880,027 813,115 819,746 838,487 
Total Arizona1,807,920 1,795,466 1,718,316 1,748,417 1,824,244 
17


June 30, 2021Mar. 31, 2021Dec. 31, 2020Sept. 30, 2020June 30, 2020
Kansas/Missouri:
    Demand463,339 478,370 426,738 405,360 427,795 
    Interest-bearing:
       Transaction978,160 991,510 960,237 616,797 526,635 
       Savings17,539 18,686 16,286 15,520 15,033 
       Time13,509 13,898 14,610 16,430 17,746 
    Total interest-bearing1,009,208 1,024,094 991,133 648,747 559,414 
Total Kansas/Missouri1,472,547 1,502,464 1,417,871 1,054,107 987,209 
Arkansas:
    Demand46,472 45,889 45,834 44,712 67,147 
    Interest-bearing:
       Transaction195,125 141,207 122,388 164,439 177,535 
       Savings3,445 3,000 2,333 2,389 2,101 
       Time6,819 7,022 7,197 7,796 7,995 
    Total interest-bearing205,389 151,229 131,918 174,624 187,631 
Total Arkansas251,861 197,118 177,752 219,336 254,778 
TOTAL BOK FINANCIAL$37,439,933 $37,852,626 $36,143,880 $34,973,000 $33,892,314 

18


NET INTEREST MARGIN TREND -- UNAUDITED
BOK FINANCIAL CORPORATION
Three Months Ended
June 30, 2021Mar. 31, 2021Dec. 31, 2020Sept. 30, 2020June 30, 2020
TAX-EQUIVALENT ASSETS YIELDS
Interest-bearing cash and cash equivalents0.10 %0.10 %0.10 %0.12 %0.07 %
Trading securities1.95 %2.06 %2.02 %1.92 %2.46 %
Investment securities, net of allowance5.01 %4.88 %4.88 %4.85 %4.77 %
Available for sale securities1.85 %1.84 %1.98 %2.11 %2.29 %
Fair value option securities2.60 %1.95 %2.27 %1.92 %2.00 %
Restricted equity securities3.36 %2.86 %3.25 %2.53 %2.75 %
Residential mortgage loans held for sale2.91 %2.71 %2.75 %3.01 %3.10 %
Loans3.54 %3.55 %3.68 %3.60 %3.63 %
Allowance for loan losses
Loans, net of allowance3.60 %3.62 %3.75 %3.67 %3.69 %
Total tax-equivalent yield on earning assets2.75 %2.78 %2.92 %3.04 %3.12 %
COST OF INTEREST-BEARING LIABILITIES
Interest-bearing deposits:
  Interest-bearing transaction0.10 %0.12 %0.14 %0.17 %0.21 %
  Savings0.04 %0.04 %0.05 %0.05 %0.05 %
  Time0.58 %0.70 %0.89 %1.13 %1.36 %
Total interest-bearing deposits0.14 %0.17 %0.19 %0.26 %0.34 %
Funds purchased and repurchase agreements0.16 %0.19 %0.28 %0.17 %0.14 %
Other borrowings0.34 %0.39 %0.42 %0.43 %0.56 %
Subordinated debt4.87 %4.92 %4.87 %4.89 %5.16 %
Total cost of interest-bearing liabilities0.21 %0.24 %0.28 %0.31 %0.37 %
Tax-equivalent net interest revenue spread2.54 %2.54 %2.64 %2.73 %2.75 %
Effect of noninterest-bearing funding sources and other0.06 %0.08 %0.08 %0.08 %0.08 %
Tax-equivalent net interest margin2.60 %2.62 %2.72 %2.81 %2.83 %

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.

19


CREDIT QUALITY INDICATORS -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands, except ratios)
Three Months Ended
June 30, 2021Mar. 31, 2021Dec. 31, 2020Sept. 30, 2020June 30, 2020
Nonperforming assets:
Nonaccruing loans:
Commercial:
Energy$70,341 $101,800 $125,059 $126,816 $162,989 
Services29,913 28,033 25,598 25,817 21,032 
Healthcare527 3,187 3,645 3,645 3,645 
General business11,823 14,053 12,857 13,675 14,333 
Total commercial112,604 147,073 167,159 169,953 201,999 
Commercial real estate26,123 27,243 27,246 12,952 13,956 
Loans to individuals:
Permanent mortgage31,473 32,884 32,228 31,599 33,098 
Permanent mortgage guaranteed by U.S. government agencies9,207 8,564 7,741 6,397 6,110 
Personal229 255 319 252 233 
Total loans to individuals40,909 41,703 40,288 38,248 39,441 
Total nonaccruing loans$179,636 $216,019 $234,693 $221,153 $255,396 
Accruing renegotiated loans guaranteed by U.S. government agencies171,324 154,591 151,775 142,770 114,571 
Real estate and other repossessed assets57,337 70,911 90,526 52,847 35,330 
Total nonperforming assets$408,297 $441,521 $476,994 $416,770 $405,297 
Total nonperforming assets excluding those guaranteed by U.S. government agencies$227,766 $278,366 $317,478 $267,603 $284,616 
Accruing loans 90 days past due1
$252 $395 $10,369 $7,684 $10,992 
Gross charge-offs$18,304 $16,905 $18,251 $26,661 $15,570 
Recoveries(2,856)(2,437)(1,592)(4,232)(1,491)
Net charge-offs$15,448 $14,468 $16,659 $22,429 $14,079 
Provision for loan losses$(25,064)$(21,770)$(14,478)$6,609 $134,365 
Provision for credit losses from off-balance sheet unfunded loan commitments(8,590)(4,044)8,952 (4,950)4,405 
Provision for expected credit losses from mortgage banking activities(1,222)885 (923)(770)(3,575)
Provision for credit losses related to held-to maturity (investment) securities portfolio(124)(71)(51)(889)126 
Total provision for credit losses$(35,000)$(25,000)$(6,500)$— $135,321 
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Three Months Ended
June 30, 2021Mar. 31, 2021Dec. 31, 2020Sept. 30, 2020June 30, 2020
Allowance for loan losses to period end loans1.46 %1.56 %1.69 %1.76 %1.80 %
Allowance for loan losses to period end loans excluding PPP loans2
1.54 %1.70 %1.82 %1.93 %1.97 %
Combined allowance for loan losses and accrual for off-balance sheet credit risk from unfunded loan commitments to period end loans1.57 %1.71 %1.85 %1.88 %1.94 %
Combined allowance for loan losses and accrual for off-balance sheet credit risk from unfunded loan commitments to period end loans excluding PPP loans2
1.66 %1.86 %2.00 %2.06 %2.12 %
Nonperforming assets to period end loans and repossessed assets1.90 %1.95 %2.07 %1.75 %1.68 %
Net charge-offs (annualized) to average loans0.28 %0.25 %0.28 %0.37 %0.23 %
Net charge-offs (annualized) to average loans excluding PPP loans2
0.30 %0.28 %0.31 %0.41 %0.25 %
Allowance for loan losses to nonaccruing loans1
183.00 %169.87 %171.24 %195.47 %174.74 %
Combined allowance for loan losses and accrual for off-balance sheet credit risk from unfunded loan commitments to nonaccruing loans1
197.25 %185.72 %187.51 %208.49 %187.94 %
1    Excludes residential mortgage loans guaranteed by agencies of the U.S. government.
2    Metric meaningful due to the unique characteristics and short-term nature of the PPP loans.
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SEGMENTS -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands, except ratios)
Three Months Ended2Q21 vs 1Q212Q21 vs 2Q20
June 30, 2021Mar. 31, 2021June 30, 2020$ change% change$ change% change
Commercial Banking
Net interest revenue$130,901 $130,005 $145,109 $896 0.7 %$(14,208)(9.8)%
Fees and commissions revenue63,368 49,847 46,515 13,521 27.1 %16,853 36.2 %
Combined net interest and fee revenue194,269 179,852 191,624 14,417 8.0 %2,645 1.4 %
Other operating expense71,351 66,979 62,933 4,372 6.5 %8,418 13.4 %
Corporate expense allocations12,512 12,734 5,437 (222)(1.7)%7,075 130.1 %
Net income72,632 69,673 80,992 2,959 4.2 %(8,360)(10.3)%
Average assets28,160,594 28,047,052 27,575,652 113,542 0.4 %584,942 2.1 %
Average loans16,981,888 17,522,520 19,262,827 (540,632)(3.1)%(2,280,939)(11.8)%
Average deposits17,049,772 16,130,168 14,599,225 919,604 5.7 %2,450,547 16.8 %
Consumer Banking
Net interest revenue$24,945 $20,974 $39,270 $3,971 18.9 %$(14,325)(36.5)%
Fees and commissions revenue37,714 52,300 67,192 (14,586)(27.9)%(29,478)(43.9)%
Combined net interest and fee revenue62,659 73,274 106,462 (10,615)(14.5)%(43,803)(41.1)%
Other operating expense52,453 55,622 58,249 (3,169)(5.7)%(5,796)(10.0)%
Corporate expense allocations11,599 11,475 10,692 124 1.1 %907 8.5 %
Net income1,698 6,948 32,501 (5,250)(75.6)%(30,803)(94.8)%
Average assets10,087,488 9,755,539 9,920,005 331,949 3.4 %167,483 1.7 %
Average loans1,786,242 1,823,732 1,679,164 (37,490)(2.1)%107,078 6.4 %
Average deposits8,469,043 8,082,443 7,587,246 386,600 4.8 %881,797 11.6 %
Wealth Management
Net interest revenue$52,293 $48,354 $26,880 $3,939 8.1 %$25,413 94.5 %
Fees and commissions revenue78,841 65,684 106,757 13,157 20.0 %(27,916)(26.1)%
Combined net interest and fee revenue131,134 114,038 133,637 17,096 15.0 %(2,503)(1.9)%
Other operating expense79,429 78,565 80,567 864 1.1 %(1,138)(1.4)%
Corporate expense allocations10,343 9,887 8,204 456 4.6 %2,139 26.1 %
Net income31,061 19,382 33,394 11,679 60.3 %(2,333)(7.0)%
Average assets19,201,041 18,645,865 15,721,452 555,176 3.0 %3,479,589 22.1 %
Average loans1,968,513 1,917,973 1,709,363 50,540 2.6 %259,150 15.2 %
Average deposits9,695,319 9,706,295 8,385,681 (10,976)(0.1)%1,309,638 15.6 %
Fiduciary assets58,654,788 56,227,268 46,748,292 2,427,520 4.3 %11,906,496 25.5 %
Assets under management or administration96,632,748 91,956,188 79,452,502 4,676,560 5.1 %17,180,246 21.6 %


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