TULSA, Okla., Jan. 27, 2016 (GLOBE NEWSWIRE) -- BOK Financial Corporation (NASDAQ:BOKF) reported net income of $288.6 million or $4.21 per diluted share for the year ended December 31, 2015. Net income for the year ended December 31, 2014 was $292.4 million or $4.22 per diluted share.

Net income for fourth quarter of 2015 totaled $59.6 million or $0.89 per diluted share compared to net income of $74.9 million or $1.09 per diluted share for the third quarter of 2015.

Steven G. Bradshaw, president and CEO, stated, “It was a disappointing finish to the year, as the downgrade of a single large borrower in our energy portfolio during the fourth quarter necessitated a higher-than-expected provision for loan losses. However, this does not detract from the fact that 2015, on balance, was a successful and profitable year with strong loan and fee income growth and very good expense management all throughout the business. While the extended bear market in energy prices may mean additional loan loss provisions in 2016 and potentially a greater spillover impact on the economies in Oklahoma, Texas, and Colorado, we believe we are well-positioned to manage through the current commodities downturn and continue to grow and build shareholder value.”

Bradshaw added, “Reflecting management’s continued confidence in our business, we are investing in our future. The acquisition of MBT Bancshares, when it is closed later this year, is expected to transform our approach in the Kansas City market. The acquisition of Weaver Wealth Management expands our wealth management reach in the important North Texas market. And the acquisition of E-Spectrum Advisors adds energy industry M&A advisory to our stable of fee-generating businesses and supplements our energy lending and energy risk management businesses. In addition, we returned $149 million of capital to shareholders during the fourth quarter through our stock buyback program as well as regular quarterly dividends.”

Highlights of the fourth quarter of 2015 included:

• Net interest revenue totaled $181.3 million for the fourth quarter of 2015, up $2.6 million over the third quarter of 2015. Net interest margin increased to 2.64 percent, compared to 2.61 percent. Average earning assets increased $256 million over the prior quarter.
• Fees and commissions revenue totaled $155.8 million for the fourth quarter of 2015, compared to $164.7 million for the third quarter of 2015. Mortgage banking revenue decreased $8.1 million due primarily to lower loan production volume.
• Change in fair value of mortgage servicing rights, net of economic hedges increased pre-tax net income in the fourth quarter of 2015 by $2.6 million and decreased pre-tax net income in the third quarter of 2015 by $4.4 million.
• Operating expenses were $232.6 million for the fourth quarter, an increase of $7.9 million over the previous quarter. Personnel expense increased $4.1 million and non-personnel expense increased $3.8 million.
• A $22.5 million provision for credit losses was recorded in the fourth quarter, compared to $7.5 million for the third quarter of 2015. The additional provision reflects continued credit migration and increased impairment in our energy loan portfolio. Net loans charged off were $3.0 million for the fourth quarter of 2015, compared to $1.8 million in the third quarter.
• The combined allowance for credit losses totaled $227 million or 1.43 percent of outstanding loans at December 31, 2015, compared to $208 million or 1.35 percent of outstanding loans at September 30, 2015. The portion of the combined allowance attributed to the energy portfolio totaled 2.89 percent of outstanding energy loans at December 31, an increase from 2.05 percent of outstanding energy loans at September 30.
• Nonperforming assets that are not guaranteed by U.S. government agencies totaled $156 million or 0.99 percent of outstanding loans and repossessed assets (excluding those guaranteed by U.S. government agencies) at December 31, 2015 and $119 million or 0.78 percent of outstanding loans and repossessed assets (excluding those guaranteed by U.S. government agencies) at September 30, 2015. The increase over the prior quarter was primarily due to a single energy credit.
• Average loans increased $395 million over the previous quarter due primarily to growth in commercial loans, partially offset by a decrease in commercial real estate loans. Period-end outstanding loan balances were $15.9 billion at December 31, 2015, an increase of $574 million over September 30, 2015. Commercial loan balances grew $455 million over the prior quarter.
• Average deposits increased $12 million over the previous quarter. Growth in demand deposit balances was partially offset by lower interest-bearing transaction and time deposits compared to the prior quarter. Period end deposits grew by $469 million over September 30, 2015 to $21.1 billion at December 31, 2015.
• The common equity Tier 1 capital ratio was 12.13 percent at December 31. In addition, the company's Tier 1 capital ratio was 12.13 percent, total capital ratio was 13.30 percent and leverage ratio was 9.25 percent. At September 30, 2015, the common equity Tier 1 capital ratio was 12.78 percent, the Tier 1 capital ratio was 12.78 percent, total capital ratio was 13.89 percent and leverage ratio was 9.55 percent. The decrease in capital ratios was primarily due to share repurchases during the fourth quarter. The company repurchased 1,874,074 common shares at an average price of $63.91 per share.
• The company paid a regular quarterly cash dividend of $29 million or $0.43 per common share during the fourth quarter of 2015. On January 26, 2016, the board of directors approved a quarterly cash dividend of $0.43 per common share payable on or about February 26, 2016 to shareholders of record as of February 12, 2016.
  
  

Net Interest Revenue

Net interest revenue increased $2.6 million over the third quarter of 2015.

Net interest margin was 2.64 percent for the fourth quarter of 2015, up from 2.61 percent for the third quarter of 2015. The yield on average earning assets was 2.86 percent, an increase of 3 basis points over the prior quarter. The yield on the available for sale securities portfolio increased 3 basis points to 2.04 percent. The loan portfolio yield increased 1 basis point to 3.55 percent. Funding costs increased 2 basis points over the prior quarter to 0.34 percent. The benefit of non-interest bearing funding sources increased by 2 basis points over the previous quarter.

Average earning assets increased $256 million during the fourth quarter of 2015. Average loan balances increased $395 million primarily due to commercial loan growth and available for sale securities increased $29 million. These increases were partially offset by a decrease in the average balance of residential mortgage loans held for sale, interest-bearing cash and cash equivalents and trading securities. Average deposits increased $12 million over the third quarter of 2015. The average balance of borrowed funds increased $132 million.

Fees and Commissions Revenue

Fees and commissions revenue totaled $155.8 million for the fourth quarter of 2015, an $8.8 million decrease compared to the third quarter of 2015 primarily due to a decrease in mortgage banking revenue.

Mortgage banking revenue totaled $25.0 million for the fourth quarter of 2015, a decrease of $8.1 million compared to the third quarter of 2015. Revenue from mortgage loan production decreased $8.6 million compared to the prior quarter. Increased average mortgage interest rates along with new disclosure requirements known as TRID and seasonal factors reduced mortgage production volume. Total mortgage loans originated during the fourth quarter decreased $249 million or 15 percent compared to the previous quarter and outstanding mortgage loan commitments at December 31 decreased $142 million or 19 percent from September 30. In addition, the value of mortgage loans and commitments held at December 31, net of forward sales contracts, decreased due to rising interest rates during the fourth quarter.

Brokerage and trading revenue totaled $30.3 million for the fourth quarter of 2015, down $1.3 million from the previous quarter. Underwriting revenue decreased $1.3 million due to the timing of completed transactions. Deposit service charges and fees totaled $22.8 million, a decrease of $793 thousand from the third quarter. The decrease was evenly distributed between commercial deposit fees that are based on transaction activity and overdraft fees.

Operating Expenses

Total operating expenses were $232.6 million for the fourth quarter of 2015, an increase of $7.9 million over the third quarter of 2015.

Personnel costs increased $4.1 million over the previous quarter. Incentive compensation increased $2.3 million, primarily due to a change in estimated share-based compensation expense. Share-based compensation includes grants with vesting criteria based on the company's earnings per share growth relative to peers over a forward looking three-year performance period. The company's forecasted earnings per share growth over the performance period increased due largely to common shares repurchased during the third and fourth quarters. Regular compensation expense increased $1.1 million. Employee benefits expense increased $757 thousand. Increased employee healthcare costs were partially offset by decreased retirement plan costs and a seasonal decrease in payroll taxes.

Non-personnel expense increased $3.8 million over the third quarter of 2015. Mortgage banking costs increased $2.4 million over the third quarter primarily due to continued resolution of outstanding claims from the servicing of defaulted government guaranteed mortgage loans. Outstanding claims decreased to $30 million at December 31, 2015 from $59 million at December 31, 2014 from these resolution efforts. Business promotion costs increased $2.5 million due to the timing of incurred expenses. Non-personnel expense for the third quarter included a $2.6 million charge to settle litigation and a $796 thousand contribution to the BOKF Foundation.

Loans, Deposits and Capital

Loans

Outstanding loans were $15.9 billion at December 31, 2015, an increase of $574 million over September 30. All loan categories grew over the prior quarter.

Outstanding commercial loan balances increased $455 million over September 30, 2015. Energy sector loans grew $259 million over September 30, 2015 and healthcare sector loans were up $142 million. Service sector loan balances grew by $78 million and other commercial and industrial loans increased $15 million. These increases were partially offset by a $40 million decrease in wholesale/retail sector loan balances. Unfunded energy loan commitments decreased by $355 million in the fourth quarter to $2.4 billion. The decrease in unfunded energy commitments largely reflects the increase in outstanding loans during the quarter. All other unfunded commercial loan commitments totaled $4.4 billion at December 31, 2015, an increase of $252 million over September 30, 2015.

Commercial real estate loans increased $24 million over September 30, 2015. Retail sector loans grew by $27 million over the prior quarter. Loans secured by office buildings increased $12 million and residential construction and land development loans increased $6.9 million. This growth was offset by a $13 million decrease in other commercial real estate loans and a $7.6 million decrease in loans secured by multifamily residential properties. Unfunded commercial real estate loan commitments totaled $1.1 billion at December 31, 2015, an increase of $128 million over September 30, 2015.

Norm Bagwell, executive vice president - Regional Banks, stated, “Loan growth was stronger than expected in the fourth quarter, driven by continued momentum in healthcare as well as growth in the energy portfolio. On a geographic basis, Kansas City, Oklahoma, and Arizona were our strongest markets, with double-digit annualized growth. To date, the business environment in our footprint has been sound despite the energy downturn, and we have yet to see any material spillover impact on the overall economy.”

Stacy Kymes, executive vice president - Corporate Banking, added, “Energy loan growth in the fourth quarter was positively impacted by advances we made to a well-secured longstanding energy client, as well as new business we generated from select, high quality opportunities. These demonstrate our continued commitment to energy lending even in the current commodity price environment. As we are now into the second year of low commodity prices, we are cognizant that credit losses may increase or even rise above what we have seen in previous cycles. However, we remain confident in our underwriting practices in energy lending, which have historically resulted in limited credit losses, and believe we are appropriately reserved and well-positioned to work through the current downturn.”

Deposits

Deposits totaled $21.1 billion at December 31, 2015, an increase of $469 million over September 30, 2015 primarily due to normal seasonality and temporary customer activity. Interest-bearing transaction account balances grew by $300 million and demand deposit balances increased $255 million. Time deposits decreased $92 million. Among the lines of business, commercial deposits increased $139 million, consumer deposits decreased $61 million and wealth management deposits increased $271 million.

Capital

New regulatory capital rules were effective for BOK Financial on January 1, 2015 and established a 7 percent threshold for the common equity Tier 1 ratio. The company's common equity Tier 1 capital ratio was 12.13 percent at December 31, 2015. In addition, the company's Tier 1 capital ratio was 12.13 percent, total capital ratio was 13.30 percent and leverage ratio was 9.25 percent at December 31, 2015. At September 30, 2015, the company’s common equity Tier 1 capital ratio was 12.78 percent, Tier 1 capital ratio was 12.78 percent, total capital ratio was 13.89 percent and leverage ratio was 9.55 percent.

The company's tangible common equity ratio, a non-GAAP measure, was 9.02 percent at December 31, 2015 and 9.78 percent at September 30, 2015. 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.

Credit Quality

Nonperforming assets totaled $252 million or 1.58 percent of outstanding loans and repossessed assets at December 31, 2015 compared to $204 million or 1.33 percent of outstanding loans and repossessed assets at September 30, 2015. Nonperforming assets that are not guaranteed by U.S. government agencies totaled $156 million or 0.99 percent of outstanding loans and repossessed assets (excluding those guaranteed by U.S. government agencies) at December 31, 2015 and $119 million or 0.78 percent at September 30, 2015. The $37 million increase over the prior quarter was primarily due to a single energy credit. 

Excluding loans guaranteed by U.S. government agencies, nonaccruing loans totaled $125 million or 0.80 percent of outstanding loans at December 31, 2015 compared to $85 million or 0.56 percent of outstanding loans at September 30, 2015. New nonaccruing loans identified in the fourth quarter totaled $55 million, offset by $7.0 million in payments received, $4.9 million in charge-offs and $3.0 million in foreclosures and repossessions. At December 31, 2015, nonaccruing commercial loans totaled $76 million or 0.75 percent of outstanding commercial loans, including $61 million or 1.98 percent of energy sector loans. Nonaccruing commercial real estate loans totaled $9.0 million or 0.28 percent of outstanding commercial real estate loans.

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, increased to $155 million at December 31 from $120 million at September 30. The increase largely resulted from a $33 million increase in potential problem energy loans to $130 million.

Net charge-offs were $3.0 million for the fourth quarter of 2015, compared to net charge-offs of $1.8 million for the third quarter of 2015. Gross charge-offs totaled $4.9 million for the fourth quarter, compared to $5.3 million for the previous quarter. Recoveries totaled $1.9 million for the fourth quarter of 2015 and $3.5 million for the third quarter of 2015.

After evaluating all credit factors, including the inherent risk of falling energy prices, the company determined that a $22.5 million provision for credit losses was necessary during the fourth quarter of 2015. The additional provision was necessary due to increased impairment and continued credit migration in our energy loan portfolio. In addition, a single borrower reported steeper than expected production declines and higher lease operating expenses, leading to a $14 million impairment on the loan. The combined allowance for credit losses totaled $227 million or 1.43 percent of outstanding loans and 181.46 percent of nonaccruing loans, excluding loans guaranteed by U.S. government agencies, at December 31, 2015. The allowance for loan losses was $226 million and the accrual for off-balance sheet credit losses was $1.7 million.

Energy Portfolio Credit Quality

The company's $3.1 billion energy loan portfolio consists of 82 percent of loans to exploration and production companies, 9 percent to energy services companies and 9 percent to midstream and other energy related borrowers. Substantially all of the loans to exploration and production companies are secured by first lien positions in established energy reserves. Only $10 million of these loans are in junior lien positions. None represent higher-risk mezzanine financing or subordinated debt and none are high-yield debt.

The portion of the allowance for credit losses attributed to the energy portfolio totaled $90 million or 2.89 percent of outstanding energy loans. Management believes this is appropriate based on the current risk characteristics of the energy portfolio.

Securities and Derivatives

The fair value of the available for sale securities portfolio totaled $9.0 billion at December 31, 2015 and $8.8 billion at September 30, 2015. At December 31, 2015, the available for sale portfolio consisted primarily of $5.9 billion of residential mortgage-backed securities fully backed by U.S. government agencies and $2.9 billion of commercial mortgage-backed securities fully backed by U.S. government agencies.

The available for sale securities portfolio had a net unrealized gain of $38 million at December 31, 2015, compared to a net unrealized gain of $145 million at September 30, 2015. The decrease in the net unrealized gain was primarily due to an increase in interest rates during the fourth quarter. Net unrealized gains on residential mortgage-backed securities issued by U.S. government agencies at December 31, 2015 decreased $68 million during the fourth quarter to a net unrealized gain of $37 million at December 31, 2015. Commercial mortgage-backed securities had a net unrealized loss of $13 million at December 31, 2015, compared to a net unrealized gain of $27 million at September 30, 2015.

In the fourth quarter of 2015, the company recognized net gains of $2.1 million from sales of $436 million of available for sale securities. Securities were sold either because they had reached their expected maximum potential return or to move into securities that are expected to perform better in the current rate environment. Net gains from sales of $451 million of available for sale securities in the third quarter of 2015 totaled $2.2 million.

The company also maintains a portfolio of residential mortgage-backed securities issued by U.S. government agencies and interest rate derivative contracts designated as an economic hedge of the changes in the fair value of our mortgage servicing rights. The value of our mortgage servicing rights increased by $7.4 million due primarily to an increase in residential mortgage interest rates during the fourth quarter of 2015. The value of securities and interest rate derivative contracts held as an economic hedge decreased by $4.9 million. The fair value of mortgage servicing rights, net of economic hedge, decreased by $4.4 million in the third quarter, primarily due to a decrease in residential mortgage interest rates.

Conference Call and Webcast

The company will hold a conference call at 9 a.m. Central time on Wednesday, January 27, 2016 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 1-412-902-6611. A conference call and webcast replay will also be available shortly after conclusion of the live call at www.bokf.com or by dialing 1-412-317-0088 and referencing conference ID # 10078587.

About BOK Financial Corporation

BOK Financial is a $31 billion regional financial services company based in Tulsa, Oklahoma. The company's stock is publicly traded on NASDAQ under the Global Select market listings (symbol: BOKF). BOK Financial's holdings include BOKF, NA, BOSC, Inc. and The Milestone Group, Inc. BOKF, NA operates TransFund, Cavanal Hill Investment Management, BOK Financial Asset Management, Inc. and seven banking divisions: Bank of Albuquerque, Bank of Arizona, Bank of Arkansas, Bank of Kansas City, Bank of Oklahoma, Bank of Texas and Colorado State Bank and Trust. Through its subsidiaries, the company provides commercial and consumer banking, investment and trust services, mortgage origination and servicing, and an electronic funds transfer network. For more information, visit www.bokf.com. 

The company will continue to evaluate critical assumptions and estimates, such as the appropriateness of the allowance for credit losses and asset impairment as of December 31, 2015 through the date its financial statements are filed with the Securities and Exchange Commission and will adjust amounts reported if necessary.

This news release contains forward-looking statements that are based on management's beliefs, assumptions, current expectations, estimates and projections about BOK Financial, the financial services industry and the economy generally. Words such as “anticipates,” “believes,” “estimates,” “expects,” “forecasts,” “plans,” “projects,” variations of such words and similar expressions are intended to identify such forward-looking statements. Management judgments relating to and discussion of the provision and allowance for credit losses involve judgments as to future events and are inherently forward-looking statements. Assessments that BOK Financial's acquisitions and other growth endeavors will be profitable are necessary statements of belief as to the outcome of future events based in part on information provided by others which BOK Financial has not independently verified. These statements are not guarantees of future performance and involve certain risks, uncertainties, and assumptions which are difficult to predict with regard to timing, extent, likelihood and degree of occurrence. Therefore, actual results and outcomes may materially differ from what is expected, implied or forecasted in such forward-looking statements. Internal and external factors that might cause such a difference include, but are not limited to (1) the ability to fully realize expected cost savings from mergers within the expected time frames, (2) the ability of other companies on which BOK Financial relies to provide goods and services in a timely and accurate manner, (3) changes in interest rates and interest rate relationships, (4) demand for products and services, (5) the degree of competition by traditional and nontraditional competitors, (6) changes in banking regulations, tax laws, prices, levies and assessments, (7) the impact of technological advances and (8) trends in consumer behavior as well as their ability to repay loans. BOK Financial and its affiliates undertake no obligation to update, amend or clarify forward-looking statements, whether as a result of new information, future events, or otherwise.

BALANCE SHEETS -- UNAUDITED BOK FINANCIAL CORPORATION (In thousands)
		Dec. 31, 2015				Sept. 30, 2015				Dec. 31, 2014
ASSETS
Cash and due from banks		$	573,699			$	489,268				$	550,576
Interest-bearing cash and cash equivalents		2,069,900				1,830,105					1,925,266
Trading securities		122,404				181,131					188,700
Investment securities		597,836				612,384					652,360
Available for sale securities		9,042,733				8,801,089					8,978,945
Fair value option securities		444,217				427,760					311,597
Restricted equity securities		273,684				263,587					141,494
Residential mortgage loans held for sale		308,439				357,414					304,182
Loans:
Commercial		10,252,531				9,797,422					9,095,670
Commercial real estate		3,259,033				3,235,067					2,728,150
Residential mortgage		1,876,893				1,868,995					1,949,512
Personal		552,697				465,957					434,705
Total loans		15,941,154				15,367,441					14,208,037
Allowance for loan losses		(225,524		)		(204,116		)			(189,056		)
Loans, net of allowance		15,715,630				15,163,325					14,018,981
Premises and equipment, net		306,490				294,669					273,833
Receivables		163,480				151,451					132,408
Goodwill		385,461				385,461					377,780
Intangible assets, net		43,909				44,999					34,376
Mortgage servicing rights, net		218,605				200,049					171,976
Real estate and other repossessed assets, net		30,731				33,116					101,861
Derivative contracts, net		586,270				726,159					361,874
Cash surrender value of bank-owned life insurance		303,335				300,981					293,978
Receivable on unsettled securities sales		40,193				30,009					74,259
Other assets		249,112				273,948					195,252
TOTAL ASSETS		$	31,476,128			$	30,566,905				$	29,089,698
LIABILITIES AND EQUITY
Deposits:
Demand		$	8,296,888			$	8,041,767				$	8,066,357
Interest-bearing transaction		9,998,954				9,698,849					10,114,355
Savings		386,252				380,296					351,431
Time		2,406,064				2,498,531					2,608,716
Total deposits		21,088,158				20,619,443					21,140,859
Funds purchased		491,192				62,297					57,031
Repurchase agreements		722,444				555,677					1,187,489
Other borrowings		4,837,879				4,635,150					2,133,774
Subordinated debentures		226,350				226,314					347,983
Accrued interest, taxes, and expense		119,584				158,048					120,211
Due on unsettled securities purchases		16,897				98,351					290,540
Derivative contracts, net		581,701				636,115					354,554
Other liabilities		124,284				159,348					121,051
TOTAL LIABILITIES		28,208,489				27,150,743					25,753,492
Shareholders' equity:
Capital, surplus and retained earnings		3,208,969				3,291,450					3,245,506
Accumulated other comprehensive income		21,587				85,776					56,673
TOTAL SHAREHOLDERS' EQUITY		3,230,556				3,377,226					3,302,179
Non-controlling interests		37,083				38,936					34,027
TOTAL EQUITY		3,267,639				3,416,162					3,336,206
TOTAL LIABILITIES AND EQUITY		$	31,476,128			$	30,566,905				$	29,089,698

AVERAGE BALANCE SHEETS -- UNAUDITED BOK FINANCIAL CORPORATION (in thousands)
	Three Months Ended
	Dec. 31, 2015				Sept. 30, 2015				June 30, 2015				March 31, 2015				Dec. 31, 2014
ASSETS
Interest-bearing cash and cash equivalents	$	1,995,945			$	2,038,611			$	2,002,456			$	2,089,546			$	2,090,176
Trading securities	150,402				179,098				127,391				140,968				164,502
Investment securities	602,369				616,091				628,489				642,825				650,911
Available for sale securities	8,971,090				8,942,261				9,063,006				9,101,464				9,161,901
Fair value option securities	435,449				429,951				435,294				404,775				221,773
Restricted equity securities	262,461				255,610				221,911				179,385				182,737
Residential mortgage loans held for sale	310,425				401,359				464,269				348,054				321,746
Loans:
Commercial	10,024,756				9,685,768				9,634,306				9,308,307				8,886,952
Commercial real estate	3,186,629				3,198,200				2,989,615				2,909,565				2,665,547
Residential mortgage	1,835,195				1,847,696				1,857,464				1,909,998				1,904,777
Personal	540,418				460,647				423,967				426,712				424,729
Total loans	15,586,998				15,192,311				14,905,352				14,554,582				13,882,005
Allowance for loan losses	(207,156		)		(202,829		)		(198,400		)		(194,948		)		(190,787		)
Total loans, net	15,379,842				14,989,482				14,706,952				14,359,634				13,691,218
Total earning assets	28,107,983				27,852,463				27,649,768				27,266,651				26,484,964
Cash and due from banks	514,629				487,283				492,737				513,734				528,595
Derivative contracts, net	657,780				669,264				475,687				447,565				352,565
Cash surrender value of bank-owned life insurance	301,793				299,424				297,022				294,803				292,411
Receivable on unsettled securities sales	62,228				64,591				94,374				99,706				69,109
Other assets	1,435,763				1,396,708				1,454,484				1,348,245				1,404,553
TOTAL ASSETS	$	31,080,176			$	30,769,733			$	30,464,072			$	29,970,704			$	29,132,197
LIABILITIES AND EQUITY
Deposits:
Demand	$	8,312,961			$	7,994,607			$	7,996,717			$	7,885,485			$	7,974,165
Interest-bearing transaction	9,527,491				9,760,839				10,063,589				10,338,396				9,730,564
Savings	382,284				379,828				381,833				365,835				346,132
Time	2,482,714				2,557,874				2,651,820				2,659,323				2,647,147
Total deposits	20,705,450				20,693,148				21,093,959				21,249,039				20,698,008
Funds purchased	73,220				70,281				63,312				69,730				71,728
Repurchase agreements	623,921				672,085				773,977				1,000,839				996,308
Other borrowings	4,957,175				4,779,981				4,001,479				3,084,214				3,021,094
Subordinated debentures	226,332				226,296				307,903				348,007				347,960
Derivative contracts, net	632,699				597,908				455,431				418,848				321,367
Due on unsettled securities purchases	248,811				90,135				151,369				205,096				137,566
Other liabilities	251,953				240,704				235,173				243,370				228,021
TOTAL LIABILITIES	27,719,561				27,370,538				27,082,603				26,619,143				25,822,052
Total equity	3,360,615				3,399,195				3,381,469				3,351,561				3,310,145
TOTAL LIABILITIES AND EQUITY	$	31,080,176			$	30,769,733			$	30,464,072			$	29,970,704			$	29,132,197

STATEMENTS OF EARNINGS -- UNAUDITED BOK FINANCIAL CORPORATION (in thousands, except per share data)
	Three Months Ended								Year Ended
	Dec. 31,								Dec. 31,
	2015				2014				2015				2014
Interest revenue	$	196,782			$	186,620			$	766,828			$	732,239
Interest expense	15,521				16,956				63,474				67,045
Net interest revenue	181,261				169,664				703,354				665,194
Provision for credit losses	22,500				—				34,000				—
Net interest revenue after provision for credit losses	158,761				169,664				669,354				665,194
Other operating revenue:
Brokerage and trading revenue	30,255				30,602				129,556				134,437
Transaction card revenue	32,319				31,467				128,621				123,689
Fiduciary and asset management revenue	31,165				30,649				126,153				115,652
Deposit service charges and fees	22,813				22,581				90,431				90,911
Mortgage banking revenue	25,039				30,105				134,375				109,093
Bank-owned life insurance	2,348				2,380				9,304				9,086
Other revenue	11,885				10,071				40,579				38,451
Total fees and commissions	155,824				157,855				659,019				621,319
Gain on other assets, net	2,329				338				5,702				2,953
Gain (loss) on derivatives, net	(732		)		1,070				430				2,776
Gain (loss) on fair value option securities, net	(4,127		)		3,685				(3,684		)		10,189
Change in fair value of mortgage servicing rights	7,416				(10,821		)		(4,853		)		(16,445		)
Gain on available for sale securities, net	2,132				149				12,058				1,539
Total other-than-temporary impairment losses	(2,114		)		(373		)		(2,895		)		(373		)
Portion of loss recognized in (reclassified from) other comprehensive income	387				—				1,076				—
Net impairment losses recognized in earnings	(1,727		)		(373		)		(1,819		)		(373		)
Total other operating revenue	161,115				151,903				666,853				621,958
Other operating expense:
Personnel	133,182				125,741				523,487				476,931
Business promotion	8,416				7,498				27,851				26,649
Charitable contributions to BOKF Foundation	—				1,847				796				4,267
Professional fees and services	10,357				11,058				40,123				44,440
Net occupancy and equipment	19,356				22,655				76,016				77,232
Insurance	5,415				4,777				20,375				18,578
Data processing and communications	31,248				30,259				122,383				115,225
Printing, postage and supplies	3,108				3,168				13,498				13,518
Net losses (gains) and operating expenses of repossessed assets	343				(1,497		)		1,446				6,019
Amortization of intangible assets	1,090				1,100				4,359				3,965
Mortgage banking costs	11,496				11,166				38,997				31,705
Other expense	8,547				8,105				35,233				28,993
Total other operating expense	232,558				225,877				904,564				847,522
Net income before taxes	87,318				95,690				431,643				439,630
Federal and state income taxes	26,242				30,109				139,384				144,151
Net income	61,076				65,581				292,259				295,479
Net income attributable to non-controlling interests	1,475				1,263				3,694				3,044
Net income attributable to BOK Financial Corporation shareholders	$	59,601			$	64,318			$	288,565			$	292,435
Average shares outstanding:
Basic	66,378,380				68,481,630				67,594,689				68,394,194
Diluted	66,467,729				68,615,808				67,691,658				68,544,770
Net income per share:
Basic	$	0.89			$	0.93			$	4.22			$	4.23
Diluted	$	0.89			$	0.93			$	4.21			$	4.22

FINANCIAL HIGHLIGHTS -- UNAUDITED BOK FINANCIAL CORPORATION (in thousands, except ratio and share data)
	Three Months Ended
	Dec. 31, 2015				Sept. 30, 2015				June 30, 2015				March 31, 2015				Dec. 31, 2014
Capital:
Period-end shareholders' equity	$	3,230,556			$	3,377,226			$	3,375,632			$	3,357,161			$	3,302,179
Risk weighted assets	$	23,429,897			$	22,706,537			$	22,533,295			$	22,053,246			$	21,290,908
Risk-based capital ratios1:
Common equity tier 1	12.13		%		12.78		%		13.01		%		13.07		%			N/A
Tier 1	12.13		%		12.78		%		13.01		%		13.07		%		13.33		%
Total capital	13.30		%		13.89		%		14.11		%		14.39		%		14.66		%
Leverage ratio	9.25		%		9.55		%		9.75		%		9.74		%		9.96		%
Tangible common equity ratio2	9.02		%		9.78		%		9.72		%		9.86		%		10.08		%
Common stock:
Book value per share	$	49.03			$	49.88			$	48.96			$	48.71			$	47.78
Market value per share:
High	$	74.73			$	70.26			$	71.66			$	61.78			$	68.69
Low	$	58.25			$	57.04			$	59.59			$	52.63			$	56.87
Cash dividends paid	$	28,967			$	28,766			$	28,841			$	28,952			$	29,114
Dividend payout ratio	48.60		%		38.41		%		36.40		%		38.68		%		45.27		%
Shares outstanding, net	65,894,032				67,713,031				68,945,139				68,922,314				69,113,736
Stock buy-back program:
Shares repurchased	1,874,074				1,258,348				—				502,156				200,000
Amount	$	119,780			$	80,276			$	—			$	29,484			$	12,337
Average price per share	$	63.91			$	63.79			$	—			$	58.71			$	61.68
Performance ratios (quarter annualized):
Return on average assets	0.76		%		0.97		%		1.04		%		1.01		%		0.88		%
Return on average equity	7.12		%		8.84		%		9.50		%		9.15		%		7.79		%
Net interest margin	2.64		%		2.61		%		2.61		%		2.55		%		2.61		%
Efficiency ratio	67.93		%		64.34		%		64.21		%		64.91		%		67.95		%
1  Risk-based capital ratios March 31, 2015 and thereafter calculated under revised regulatory capital rules issued July 2013 and effective for the Company January 1, 2015. Previous risk-based capital ratios presented are calculated in accordance with then current regulatory capital rules.
Reconciliation of non-GAAP measures:
2  Tangible common equity ratio:
Total shareholders' equity	$	3,230,556			$	3,377,226			$	3,375,632			$	3,357,161			$	3,302,179
Less: Goodwill and intangible assets, net	429,370				430,460				431,515				411,066				412,156
Tangible common equity	$	2,801,186			$	2,946,766			$	2,944,117			$	2,946,095			$	2,890,023
Total assets	$	31,476,128			$	30,566,905			$	30,725,563			$	30,299,978			$	29,089,698
Less: Goodwill and intangible assets, net	429,370				430,460				431,515				411,066				412,156
Tangible assets	$	31,046,758			$	30,136,445			$	30,294,048			$	29,888,912			$	28,677,542
Tangible common equity ratio	9.02		%		9.78		%		9.72		%		9.86		%		10.08		%
Other data:
Fiduciary assets	$	38,333,638			$	37,780,669			$	38,772,018			$	37,511,746			$	35,997,877
Tax equivalent adjustment	$	3,222			$	3,244			$	3,035			$	2,956			$	2,859
Net unrealized gain on available for sale securities	$	38,109			$	144,884			$	89,158			$	152,107			$	96,955
Mortgage banking:
Mortgage servicing portfolio	$	19,678,226			$	18,928,726			$	17,979,623			$	16,937,128			$	16,162,887
Mortgage commitments	$	601,147			$	742,742			$	849,619			$	824,036			$	627,505
Mortgage loans funded for sale	$	1,365,431			$	1,614,225			$	1,828,230			$	1,565,016			$	1,264,269
Mortgage loan refinances to total fundings	41		%		30		%		40		%		56		%		37		%
Mortgage loans sold	$	1,424,527			$	1,778,099			$	1,861,968			$	1,382,042			$	1,350,529
Net realized gains on mortgage loans sold	$	15,705			$	18,968			$	23,856			$	17,251			$	17,671
Change in net unrealized gain on mortgage loans held for sale	(5,615		)		(251		)		(743		)		8,789				(482		)
Total production revenue	10,090				18,717				23,113				26,040				17,189
Servicing revenue	14,949				14,453				13,733				13,280				12,916
Total mortgage banking revenue	$	25,039			$	33,170			$	36,846			$	39,320			$	30,105
Gain (loss) on mortgage servicing rights, net of economic hedge:
Gain (loss) on mortgage hedge derivative contracts, net	$	(732	)		$	1,460			$	(1,005	)		$	911			$	1,070
Gain (loss) on fair value option securities, net	(4,127		)		5,926				(8,130		)		2,647				3,685
Gain (loss) on economic hedge of mortgage servicing rights	(4,859		)		7,386				(9,135		)		3,558				4,755
Gain (loss) on changes in fair value of mortgage servicing rights	7,416				(11,757		)		8,010				(8,522		)		(10,821		)
Gain (loss) on changes in fair value of mortgage servicing rights, net of economic hedges	$	2,557			$	(4,371	)		$	(1,125	)		$	(4,964	)		$	(6,066	)
Net interest revenue on fair value option securities	$	2,137			$	2,140			$	1,985			$	1,739			$	912

QUARTERLY EARNINGS TREND -- UNAUDITED BOK FINANCIAL CORPORATION (in thousands, except ratio and per share data)
	Three Months Ended
	Dec. 31, 2015				Sept. 30, 2015				June 30, 2015				March 31, 2015				Dec. 31, 2014
Interest revenue	$	196,782			$	193,664			$	191,813			$	184,569			$	186,620
Interest expense	15,521				15,028				16,082				16,843				16,956
Net interest revenue	181,261				178,636				175,731				167,726				169,664
Provision for credit losses	22,500				7,500				4,000				—				—
Net interest revenue after provision for credit losses	158,761				171,136				171,731				167,726				169,664
Other operating revenue:
Brokerage and trading revenue	30,255				31,582				36,012				31,707				30,602
Transaction card revenue	32,319				32,514				32,778				31,010				31,467
Fiduciary and asset management revenue	31,165				30,807				32,712				31,469				30,649
Deposit service charges and fees	22,813				23,606				22,328				21,684				22,581
Mortgage banking revenue	25,039				33,170				36,846				39,320				30,105
Bank-owned life insurance	2,348				2,360				2,398				2,198				2,380
Other revenue	11,885				10,618				9,473				8,603				10,071
Total fees and commissions	155,824				164,657				172,547				165,991				157,855
Gain on other assets, net	2,329				1,161				1,457				755				338
Gain (loss) on derivatives, net	(732		)		1,283				(1,032		)		911				1,070
Gain (loss) on fair value option securities, net	(4,127		)		5,926				(8,130		)		2,647				3,685
Change in fair value of mortgage servicing rights	7,416				(11,757		)		8,010				(8,522		)		(10,821		)
Gain on available for sale securities, net	2,132				2,166				3,433				4,327				149
Total other-than-temporary impairment losses	(2,114		)		—				—				(781		)		(373		)
Portion of loss recognized in (reclassified from) other comprehensive income	387				—				—				689				—
Net impairment losses recognized in earnings	(1,727		)		—				—				(92		)		(373		)
Total other operating revenue	161,115				163,436				176,285				166,017				151,903
Other operating expense:
Personnel	133,182				129,062				132,695				128,548				125,741
Business promotion	8,416				5,922				7,765				5,748				7,498
Contribution to BOKF Foundation	—				796				—				—				1,847
Professional fees and services	10,357				10,147				9,560				10,059				11,058
Net occupancy and equipment	19,356				18,689				18,927				19,044				22,655
Insurance	5,415				4,864				5,116				4,980				4,777
Data processing and communications	31,248				30,708				30,655				29,772				30,259
Printing, postage and supplies	3,108				3,376				3,553				3,461				3,168
Net losses (gains) and operating expenses of repossessed assets	343				267				223				613				(1,497		)
Amortization of intangible assets	1,090				1,089				1,090				1,090				1,100
Mortgage banking costs	11,496				9,107				8,227				10,167				11,166
Other expense	8,547				10,601				9,302				6,783				8,105
Total other operating expense	232,558				224,628				227,113				220,265				225,877
Net income before taxes	87,318				109,944				120,903				113,478				95,690
Federal and state income taxes	26,242				34,128				40,630				38,384				30,109
Net income	61,076				75,816				80,273				75,094				65,581
Net income attributable to non-controlling interests	1,475				925				1,043				251				1,263
Net income attributable to BOK Financial Corporation shareholders	$	59,601			$	74,891			$	79,230			$	74,843			$	64,318
Average shares outstanding:
Basic	66,378,380				67,668,076				68,096,341				68,254,780				68,481,630
Diluted	66,467,729				67,762,483				68,210,353				68,344,886				68,615,808
Net income per share:
Basic	$	0.89			$	1.09			$	1.15			$	1.08			$	0.93
Diluted	$	0.89			$	1.09			$	1.15			$	1.08			$	0.93

LOANS TREND -- UNAUDITED BOK FINANCIAL CORPORATION (In thousands)
		Dec. 31, 2015				Sept. 30, 2015				June 30, 2015				March 31, 2015				Dec. 31, 2014
Commercial:
Energy		$	3,097,328			$	2,838,167			$	2,902,143			$	2,902,994			$	2,860,428
Services		2,784,276				2,706,624				2,681,126				2,592,876				2,391,530
Healthcare		1,883,380				1,741,680				1,646,025				1,511,177				1,454,969
Wholesale/retail		1,422,064				1,461,936				1,533,730				1,405,800				1,440,015
Manufacturing		556,729				555,677				579,549				560,925				532,594
Other commercial and industrial		508,754				493,338				433,148				417,391				416,134
Total commercial		10,252,531				9,797,422				9,775,721				9,391,163				9,095,670
Commercial real estate:
Retail		796,499				769,449				688,447				658,860				666,889
Multifamily		751,085				758,658				711,333				749,986				704,298
Office		637,707				626,151				563,085				513,862				415,544
Industrial		563,169				563,871				488,054				478,584				428,817
Residential construction and land development		160,426				153,510				148,574				139,152				143,591
Other real estate		350,147				363,428				434,004				395,020				369,011
Total commercial real estate		3,259,033				3,235,067				3,033,497				2,935,464				2,728,150
Residential mortgage:
Permanent mortgage		945,336				937,664				946,324				964,264				969,951
Permanent mortgages guaranteed by U.S. government agencies		196,937				192,712				190,839				200,179				205,950
Home equity		734,620				738,619				747,565				762,556				773,611
Total residential mortgage		1,876,893				1,868,995				1,884,728				1,926,999				1,949,512
Personal		552,697				465,957				430,190				430,510				434,705
Total		$	15,941,154			$	15,367,441			$	15,124,136			$	14,684,136			$	14,208,037

LOANS BY PRINCIPAL MARKET AREA -- UNAUDITED BOK FINANCIAL CORPORATION (in thousands)
	Dec. 31, 2015				Sept. 30, 2015				June 30, 2015				March 31, 2015				Dec. 31, 2014
Bank of Oklahoma:
Commercial	$	3,782,687			$	3,514,391			$	3,529,406			$	3,276,553			$	3,142,689
Commercial real estate	739,829				677,372				614,995				612,639				603,610
Residential mortgage	1,409,114				1,405,235				1,413,690				1,442,340				1,467,096
Personal	255,387				185,463				190,909				205,496				206,115
Total Bank of Oklahoma	6,187,017				5,782,461				5,749,000				5,537,028				5,419,510
Bank of Texas:
Commercial	3,908,425				3,752,193				3,738,742				3,709,467				3,549,128
Commercial real estate	1,204,202				1,257,741				1,158,056				1,130,973				1,027,817
Residential mortgage	219,126				222,395				228,683				237,985				235,948
Personal	203,496				194,051				156,260				149,827				154,363
Total Bank of Texas	5,535,249				5,426,380				5,281,741				5,228,252				4,967,256
Bank of Albuquerque:
Commercial	375,839				368,027				392,362				388,005				383,439
Commercial real estate	313,422				312,953				291,953				296,696				296,358
Residential mortgage	120,507				121,232				123,376				127,326				127,999
Personal	11,557				10,477				11,939				12,095				10,899
Total Bank of Albuquerque	821,325				812,689				819,630				824,122				818,695
Bank of Arkansas:
Commercial	92,359				76,044				99,086				91,485				95,510
Commercial real estate	69,320				82,225				85,997				87,034				88,301
Residential mortgage	8,169				8,063				6,999				6,807				7,261
Personal	819				4,921				5,189				5,114				5,169
Total Bank of Arkansas	170,667				171,253				197,271				190,440				196,241
Colorado State Bank & Trust:
Commercial	987,076				1,029,694				1,019,454				1,008,316				977,961
Commercial real estate	223,946				229,835				229,721				209,272				194,553
Residential mortgage	53,782				50,138				54,135				55,925				57,119
Personal	23,384				30,683				30,373				27,792				27,918
Total Colorado State Bank & Trust	1,288,188				1,340,350				1,333,683				1,301,305				1,257,551
Bank of Arizona:
Commercial	606,733				608,235				572,477				519,767				547,524
Commercial real estate	507,523				482,918				472,061				432,269				355,140
Residential mortgage	44,047				41,722				37,493				36,161				35,872
Personal	31,060				17,609				12,875				12,394				12,883
Total Bank of Arizona	1,189,363				1,150,484				1,094,906				1,000,591				951,419
Bank of Kansas City:
Commercial	499,412				448,838				424,194				397,570				399,419
Commercial real estate	200,791				192,023				180,714				166,581				162,371
Residential mortgage	22,148				20,210				20,352				20,455				18,217
Personal	26,994				22,753				22,645				17,792				17,358
Total Bank of Kansas City	749,345				683,824				647,905				602,398				597,365
TOTAL BOK FINANCIAL	$	15,941,154			$	15,367,441			$	15,124,136			$	14,684,136			$	14,208,037
Loans attributed to a geographical region may not always represent the location of the borrower or the collateral.

DEPOSITS BY PRINCIPAL MARKET AREA -- UNAUDITED BOK FINANCIAL CORPORATION (in thousands)
	Dec. 31, 2015				Sept. 30, 2015				June 30, 2015				March 31, 2015				Dec. 31, 2014
Bank of Oklahoma:
Demand	$	4,133,520			$	3,834,145			$	4,068,088			$	3,982,534			$	3,828,819
Interest-bearing:
Transaction	5,971,819				5,783,258				6,018,381				6,199,468				6,117,886
Savings	226,733				225,580				225,694				227,855				206,357
Time	1,202,274				1,253,137				1,380,566				1,372,250				1,301,194
Total interest-bearing	7,400,826				7,261,975				7,624,641				7,799,573				7,625,437
Total Bank of Oklahoma	11,534,346				11,096,120				11,692,729				11,782,107				11,454,256
Bank of Texas:
Demand	2,627,764				2,689,493				2,565,234				2,511,032				2,639,732
Interest-bearing:
Transaction	2,132,099				1,996,223				2,020,817				2,062,063				2,065,723
Savings	77,902				74,674				74,373				76,128				72,037
Time	549,740				554,106				536,844				547,371				547,316
Total interest-bearing	2,759,741				2,625,003				2,632,034				2,685,562				2,685,076
Total Bank of Texas	5,387,505				5,314,496				5,197,268				5,196,594				5,324,808
Bank of Albuquerque:
Demand	487,286				520,785				508,224				537,466				487,819
Interest-bearing:
Transaction	563,723				529,862				537,156				535,791				519,544
Savings	43,672				41,380				41,802				42,088				37,471
Time	267,821				281,426				285,890				290,706				295,798
Total interest-bearing	875,216				852,668				864,848				868,585				852,813
Total Bank of Albuquerque	1,362,502				1,373,453				1,373,072				1,406,051				1,340,632
Bank of Arkansas:
Demand	27,252				25,397				19,731				31,002				35,996
Interest-bearing:
Transaction	202,857				290,728				284,349				253,691				158,115
Savings	1,747				1,573				1,712				1,677				1,936
Time	24,983				26,203				28,220				28,277				28,520
Total interest-bearing	229,587				318,504				314,281				283,645				188,571
Total Bank of Arkansas	256,839				343,901				334,012				314,647				224,567
Colorado State Bank & Trust:
Demand	497,318				430,675				403,491				412,532				445,755
Interest-bearing:
Transaction	616,697				655,206				601,741				604,665				631,874
Savings	31,927				31,398				31,285				31,524				29,811
Time	296,224				320,279				322,432				340,006				353,998
Total interest-bearing	944,848				1,006,883				955,458				976,195				1,015,683
Total Colorado State Bank & Trust	1,442,166				1,437,558				1,358,949				1,388,727				1,461,438
Bank of Arizona:
Demand	326,324				306,425				352,024				271,091				369,115
Interest-bearing:
Transaction	358,556				293,319				298,073				295,480				347,214
Savings	2,893				4,121				2,726				2,900				2,545
Time	29,498				26,750				28,165				28,086				36,680
Total interest-bearing	390,947				324,190				328,964				326,466				386,439
Total Bank of Arizona	717,271				630,615				680,988				597,557				755,554
Bank of Kansas City:
Demand	197,424				234,847				239,609				263,920				259,121
Interest-bearing:
Transaction	153,203				150,253				139,260				157,044				273,999
Savings	1,378				1,570				1,580				1,618				1,274
Time	35,524				36,630				42,262				45,082				45,210
Total interest-bearing	190,105				188,453				183,102				203,744				320,483
Total Bank of Kansas City	387,529				423,300				422,711				467,664				579,604
TOTAL BOK FINANCIAL	$	21,088,158			$	20,619,443			$	21,059,729			$	21,153,347			$	21,140,859

NET INTEREST MARGIN TREND -- UNAUDITED BOK FINANCIAL CORPORATION
	Three Months Ended
	Dec. 31, 2015			Sept. 30, 2015			June 30, 2015			March 31, 2015			Dec. 31, 2014
TAX-EQUIVALENT ASSETS YIELDS
Interest-bearing cash and cash equivalents	0.29	%		0.28	%		0.25	%		0.27	%		0.28	%
Trading securities	2.86	%		2.70	%		1.85	%		2.55	%		2.48	%
Investment securities:
Taxable	5.41	%		5.49	%		5.49	%		5.51	%		5.68	%
Tax-exempt	1.53	%		1.54	%		1.56	%		1.56	%		1.56	%
Total investment securities	3.03	%		3.04	%		3.05	%		3.04	%		3.11	%
Available for sale securities:
Taxable	2.02	%		1.99	%		1.92	%		1.95	%		1.97	%
Tax-exempt	4.22	%		4.15	%		4.21	%		4.40	%		4.23	%
Total available for sale securities	2.04	%		2.01	%		1.94	%		1.98	%		1.99	%
Fair value option securities	2.32	%		2.30	%		2.17	%		2.28	%		2.18	%
Restricted equity securities	5.95	%		5.95	%		5.82	%		5.79	%		5.77	%
Residential mortgage loans held for sale	3.85	%		3.79	%		3.37	%		3.41	%		3.87	%
Loans	3.55	%		3.54	%		3.65	%		3.59	%		3.73	%
Allowance for loan losses
Loans, net of allowance	3.60	%		3.59	%		3.70	%		3.64	%		3.78	%
Total tax-equivalent yield on earning assets	2.86	%		2.83	%		2.84	%		2.80	%		2.86	%
COST OF INTEREST-BEARING LIABILITIES
Interest-bearing deposits:
Interest-bearing transaction	0.09	%		0.08	%		0.09	%		0.10	%		0.09	%
Savings	0.09	%		0.10	%		0.11	%		0.10	%		0.11	%
Time	1.26	%		1.33	%		1.36	%		1.46	%		1.47	%
Total interest-bearing deposits	0.32	%		0.34	%		0.35	%		0.37	%		0.38	%
Funds purchased	0.11	%		0.08	%		0.08	%		0.09	%		0.08	%
Repurchase agreements	0.04	%		0.03	%		0.03	%		0.04	%		0.04	%
Other borrowings	0.38	%		0.30	%		0.31	%		0.32	%		0.32	%
Subordinated debt	1.13	%		1.04	%		2.21	%		2.52	%		2.50	%
Total cost of interest-bearing liabilities	0.34	%		0.32	%		0.35	%		0.38	%		0.39	%
Tax-equivalent net interest revenue spread	2.52	%		2.51	%		2.49	%		2.42	%		2.47	%
Effect of noninterest-bearing funding sources and other	0.12	%		0.10	%		0.12	%		0.13	%		0.14	%
Tax-equivalent net interest margin	2.64	%		2.61	%		2.61	%		2.55	%		2.61	%
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.

CREDIT QUALITY INDICATORS BOK FINANCIAL CORPORATION (in thousands, except ratios)
	Three Months Ended
	Dec. 31, 2015				Sept. 30, 2015				June 30, 2015				March 31, 2015				Dec. 31, 2014
Nonperforming assets:
Nonaccruing loans:
Commercial	$	76,424			$	33,798			$	24,233			$	13,880			$	13,527
Commercial real estate	9,001				10,956				20,139				19,902				18,557
Residential mortgage	61,240				44,099				45,969				46,487				48,121
Personal	463				494				550				464				566
Total nonaccruing loans	147,128				89,347				90,891				80,733				80,771
Accruing renegotiated loans guaranteed by U.S. government agencies	74,049				81,598				82,368				80,287				73,985
Real estate and other repossessed assets:
Guaranteed by U.S. government agencies1	—				—				—				—				49,898
Other	30,731				33,116				35,499				45,551				51,963
Total real estate and other repossessed assets	30,731				33,116				35,499				45,551				101,861
Total nonperforming assets	$	251,908			$	204,061			$	208,758			$	206,571			$	256,617
Total nonperforming assets excluding those guaranteed by U.S. government agencies	$	155,959			$	118,578			$	122,673			$	123,028			$	129,022
Nonaccruing loans by loan portfolio sector:
Commercial:
Energy	$	61,189			$	17,880			$	6,841			$	1,875			$	1,416
Services	10,290				10,692				10,944				4,744				5,201
Healthcare	1,072				1,218				1,278				1,558				1,380
Wholesale/retail	2,919				3,058				4,166				4,401				4,149
Manufacturing	331				352				379				417				450
Other commercial and industrial	623				598				625				885				931
Total commercial	76,424				33,798				24,233				13,880				13,527
Commercial real estate:
Retail	1,319				1,648				3,826				3,857				3,926
Multifamily	274				185				195				—				—
Office	651				684				2,360				2,410				3,420
Industrial	76				76				76				76				—
Residential construction and land development	4,409				4,748				9,367				9,598				5,299
Other commercial real estate	2,272				3,615				4,315				3,961				5,912
Total commercial real estate	9,001				10,956				20,139				19,902				18,557
Residential mortgage:
Permanent mortgage	28,984				30,660				32,187				33,365				34,845
Permanent mortgage guaranteed by U.S. government agencies	21,900				3,885				3,717				3,256				3,712
Home equity	10,356				9,554				10,065				9,866				9,564
Total residential mortgage	61,240				44,099				45,969				46,487				48,121
Personal	463				494				550				464				566
Total nonaccruing loans	$	147,128			$	89,347			$	90,891			$	80,733			$	80,771
Performing loans 90 days past due2	$	1,207			$	101			$	99			$	523			$	125
Gross charge-offs	$	(4,851	)		$	(5,274	)		$	(2,877	)		$	(2,169	)		$	(7,224	)
Recoveries	1,870				3,521				2,206				10,523				5,036
Net recoveries (charge-offs)	$	(2,981	)		$	(1,753	)		$	(671	)		$	8,354			$	(2,188	)
Provision for credit losses	$	22,500			$	7,500			$	4,000			$	—			$	—
Allowance for loan losses to period end loans	1.41		%		1.33		%		1.33		%		1.35		%		1.33		%
Combined allowance for credit losses to period end loans	1.43		%		1.35		%		1.34		%		1.35		%		1.34		%
Nonperforming assets to period end loans and repossessed assets	1.58		%		1.33		%		1.38		%		1.40		%		1.79		%
Net charge-offs (annualized) to average loans	0.08		%		0.05		%		0.02		%		(0.23		)%		0.06		%
Allowance for loan losses to nonaccruing loans2	180.09		%		238.84		%		230.67		%		255.15		%		245.34		%
Combined allowance for credit losses to nonaccruing loans2	181.46		%		243.05		%		231.68		%		256.39		%		246.94		%
1  Approximately $50 million was reclassified from Real estate and other repossessed assets to Receivables on the balance sheet on January 1, 2015 with the adoption of Financial Accounting Standards Board Update No. 2014-14, Classification of Certain Government Guaranteed Mortgage Loans Upon Foreclosure ("ASU 2014-14"). Upon foreclosure of loans for which the loan balance is expected to be recovered from the guarantee by a U.S. government agency, the loan balance will be directly reclassified to other receivables without including such foreclosed assets in real estate and other repossessed assets.
2  Excludes residential mortgage loans guaranteed by agencies of the U.S. government.

 

For Further Information Contact:
Joseph Crivelli
Investor Relations
(918) 595-3027

Andrea Myers
Corporate Communications
(918) 594-7794

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