• BOK Financial Corporation Reports Quarterly Earnings of $166 million or $2.40 Per Share in the Second Quarter

    Источник: Nasdaq GlobeNewswire / 21 июл 2021 07:55:01   America/New_York

    TULSA, Okla., July 21, 2021 (GLOBE NEWSWIRE) -- BOK Financial Corporation (NASDAQ: BOKF) today reported net earnings applicable to common shareholders for the second quarter of 2021 of $166.4 million, or $2.40 per diluted common share.

    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.
    • 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.
    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.

    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.

    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.

    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.

    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.

    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.


    BALANCE SHEETS -- UNAUDITED
    BOK FINANCIAL CORPORATION
    (In thousands)

     June 30, 2021 Mar. 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  

    AVERAGE BALANCE SHEETS -- UNAUDITED
    BOK FINANCIAL CORPORATION
    (in thousands)

     Three Months Ended
     June 30, 2021 Mar. 31, 2021 Dec. 31, 2020 Sept. 30, 2020 June 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 

    STATEMENTS OF EARNINGS -- UNAUDITED
    BOK FINANCIAL CORPORATION
    (in thousands, except per share data)

     Three Months Ended Six Months Ended
     June 30, June 30,
     2021 2020 2021 2020
            
    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 

    FINANCIAL HIGHLIGHTS -- UNAUDITED
    BOK FINANCIAL CORPORATION
    (in thousands, except ratio and share data)

     Three Months Ended
     June 30, 2021 Mar. 31, 2021 Dec. 31, 2020 Sept. 30, 2020 June 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 ratio19.09% 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%
              
              
     Three Months Ended         
      June 30, 2021  Mar. 31, 2021  Dec. 31, 2020  Sept. 30, 2020  June 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 revenue    		4,096  4,259  5,959  4,982  6,595 
    Net interest revenue on fair value option securities2341  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.

    QUARTERLY EARNINGS TREND -- UNAUDITED
    BOK FINANCIAL CORPORATION
    (in thousands, except ratio and per share data)

     Three Months Ended
     June 30, 2021 Mar. 31, 2021 Dec. 31, 2020 Sept. 30, 2020 June 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 losses    		315,309   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 

    LOANS TREND -- UNAUDITED
    BOK FINANCIAL CORPORATION
    (In thousands)

     June 30, 2021 Mar. 31, 2021 Dec. 31, 2020 Sept. 30, 2020 June 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
     development    		128,939  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 agencies    		413,806  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 

    LOANS MANAGED BY PRINCIPAL MARKET AREA -- UNAUDITED
    BOK FINANCIAL CORPORATION
    (in thousands)

     June 30, 2021 Mar. 31, 2021 Dec. 31, 2020 Sept. 30, 2020 June 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.

    DEPOSITS BY PRINCIPAL MARKET AREA -- UNAUDITED
    BOK FINANCIAL CORPORATION
    (in thousands)

     June 30, 2021 Mar. 31, 2021 Dec. 31, 2020 Sept. 30, 2020 June 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 
              
              
    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 

    NET INTEREST MARGIN TREND -- UNAUDITED
    BOK FINANCIAL CORPORATION

     Three Months Ended
     June 30, 2021 Mar. 31, 2021 Dec. 31, 2020 Sept. 30, 2020 June 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.

    CREDIT QUALITY INDICATORS -- UNAUDITED
    BOK FINANCIAL CORPORATION
    (in thousands, except ratios)

     Three Months Ended
     June 30, 2021 Mar. 31, 2021 Dec. 31, 2020 Sept. 30, 2020 June 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 agencies    		9,207  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 agencies    		171,324  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  
              
              
     Three Months Ended        
      June 30, 2021  Mar. 31, 2021  Dec. 31, 2020  Sept. 30, 2020  June 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 loans    		1.57% 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 assets    		1.90% 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 loans1183.00% 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.

    SEGMENTS -- UNAUDITED
    BOK FINANCIAL CORPORATION
    (in thousands, except ratios)

      Three Months Ended 2Q21 vs 1Q21 2Q21 vs 2Q20
      June 30, 2021 Mar. 31, 2021  June 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 revenue 63,368  49,847  46,515  13,521  27.1% 16,853  36.2%
    Combined net interest and fee revenue 194,269  179,852  191,624  14,417  8.0% 2,645  1.4%
    Other operating expense 71,351  66,979  62,933  4,372  6.5% 8,418  13.4%
    Corporate expense allocations 12,512  12,734  5,437  (222) (1.7)% 7,075  130.1%
    Net income 72,632  69,673  80,992  2,959  4.2% (8,360) (10.3)%
                   
    Average assets 28,160,594  28,047,052  27,575,652  113,542  0.4% 584,942  2.1%
    Average loans 16,981,888  17,522,520  19,262,827  (540,632) (3.1)% (2,280,939) (11.8)%
    Average deposits 17,049,772  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 revenue 37,714  52,300  67,192  (14,586) (27.9)% (29,478) (43.9)%
    Combined net interest and fee revenue 62,659  73,274  106,462  (10,615) (14.5)% (43,803) (41.1)%
    Other operating expense 52,453  55,622  58,249  (3,169) (5.7)% (5,796) (10.0)%
    Corporate expense allocations 11,599  11,475  10,692  124  1.1% 907  8.5%
    Net income 1,698  6,948  32,501  (5,250) (75.6)% (30,803) (94.8)%
                   
    Average assets 10,087,488  9,755,539  9,920,005  331,949  3.4% 167,483  1.7%
    Average loans 1,786,242  1,823,732  1,679,164  (37,490) (2.1)% 107,078  6.4%
    Average deposits 8,469,043  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 revenue 78,841  65,684  106,757  13,157  20.0% (27,916) (26.1)%
    Combined net interest and fee revenue 131,134  114,038  133,637  17,096  15.0% (2,503) (1.9)%
    Other operating expense 79,429  78,565  80,567  864  1.1% (1,138) (1.4)%
    Corporate expense allocations 10,343  9,887  8,204  456  4.6% 2,139  26.1%
    Net income 31,061  19,382  33,394  11,679  60.3% (2,333) (7.0)%
                   
    Average assets 19,201,041  18,645,865  15,721,452  555,176  3.0% 3,479,589  22.1%
    Average loans 1,968,513  1,917,973  1,709,363  50,540  2.6% 259,150  15.2%
    Average deposits 9,695,319  9,706,295  8,385,681  (10,976) (0.1)% 1,309,638  15.6%
    Fiduciary assets 58,654,788  56,227,268  46,748,292  2,427,520  4.3% 11,906,496  25.5%
    Assets under management or administration 96,632,748  91,956,188  79,452,502  4,676,560  5.1% 17,180,246  21.6%

    Contact:

    Cody McAlester
    Vice President, Investor Relations
    918-595-3030


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