BOK FINANCIAL CORP - FORM 8-K - EX-99 - EXHIBIT 99

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8-K - 8-K - BOK FINANCIAL CORP	bokf-20141231x8xk.htm

Exhibit 99 (a)

NASD: BOKF

For Further Information Contact:

Joseph Crivelli Andrea Myers

Investor Relations Corporate Communications

(918) 595-3027 (918) 594-7794

BOK Financial Reports Annual and Quarterly Earnings for 2014

Company Provides Update on Energy Lending

TULSA, Okla. (Wednesday, January 28, 2015) - BOK Financial Corporation reported net income of $292.4 million or $4.22 per diluted share for the year ended December 31, 2014. Net income for the year ended December 31, 2013 was $316.6 million or $4.59 per diluted share.

Net income for fourth quarter of 2014 totaled $64.3 million or $0.93 per diluted share compared to net income of $75.6 million or $1.09 per diluted share for the third quarter of 2014. Branch closure costs accrued in the fourth quarter and net changes in the fair value of mortgage servicing rights between the third and fourth quarters reduced net income by $10.7 million or $0.16 per diluted share.

Steven G. Bradshaw, president and chief executive officer, stated, “Overall, 2014 was a very solid year for BOK Financial, and we executed well on the strategic objectives outlined at the start of the year. We re-energized loan growth, increased assets under management, repositioned our balance sheet to prepare for a possible rising interest rate environment, and made significant investments to further strengthen our risk and compliance infrastructure. We enter 2015 with strong momentum across the business and a sound plan to continue to enhance long-term shareholder value.”

Bradshaw continued, “The fourth quarter’s profitability was negatively impacted by two notable items. However, we posted our strongest quarter of the year from a loan growth standpoint and continued to show good revenue momentum in several key fee-generating lines of business while carefully managing expenses. All told, I am pleased with our results in 2014 and the fourth quarter. BOK Financial remains well-positioned with a strong franchise, high-quality products and services, a professional team, and a rock-solid balance sheet.”

Highlights of fourth quarter of 2014 included:


•	Net interest revenue totaled $169.7 million for the fourth quarter of 2014, up $2.9 million over the third quarter of 2014. Net interest margin was 2.61% for the fourth quarter of 2014, and 2.67% for the third quarter of 2014.


•	Fees and commissions revenue totaled $157.9 million for the fourth quarter of 2014, compared to $158.5 million for the third quarter of 2014. Brokerage and trading revenue decreased $4.7 million and mortgage banking revenue was up $3.3 million over the prior quarter.


•	Change in fair value of mortgage servicing rights, net of economic hedges decreased pre-tax net income in the fourth quarter of 2014 by $6.1 million and increased pre-tax net income in the third quarter of 2014 by $4.8 million.


•	Operating expenses were $225.9 million for the fourth quarter, an increase of $4.0 million over the previous quarter, including $4.9 million of branch closure costs. Personnel expense increased $2.7 million and non-personnel expense increased $1.3 million.


•	No provision for credit losses was recorded in the fourth or third quarters of 2014. Net charge-offs were $2.2 million for the fourth quarter of 2014, compared to net recoveries of $476 thousand in the third quarter.

•

The combined allowance for credit losses totaled $190 million or 1.34% of outstanding loans at December 31, 2014 compared to $192 million or 1.41% of outstanding loans at September 30, 2014. Nonperforming assets that are not guaranteed by U.S. government agencies totaled $129 million or 0.92% of outstanding loans and repossessed assets (excluding those guaranteed by U.S. government agencies) at December 31, 2014 and $144 million or 1.06% of outstanding loans and repossessed assets (excluding those guaranteed by U.S. government agencies) at September 30, 2014.

•

Average loans increased $363 million over the previous quarter due primarily to growth in commercial loans. Average commercial loans were up $418 million. Average commercial real estate loans decreased $26 million. Residential mortgage and consumer loans decreased by a total of $29 million. Period-end outstanding loan balances were $14.2 billion at December 31, 2014, an increase of $524 million over September 30, 2014. Commercial loan balances increased $524 million and commercial real estate loans were largely unchanged. A decrease in residential mortgage loans was partially offset by growth in consumer loans.

•

Average deposits increased $471 million over the previous quarter. Interest-bearing transaction, demand and time deposits all grew over the prior quarter. Period end deposits grew by $852 million over September 30, 2014 to $21.1 billion at December 31, 2014. Interest-bearing transaction accounts increased $870 million. Demand deposit account balances were largely unchanged and time deposits decreased $56 million.

•

The Company's Tier 1 common equity ratio, as defined by banking regulations, was 13.13% at December 31, 2014 and 13.55% at September 30, 2014. The Company and its subsidiary bank continue to exceed the regulatory definition of well capitalized. The Company's Tier 1 capital ratio was 13.29% at December 31, 2014 and 13.72% at September 30, 2014. Total capital ratio was 14.61% at December 31, 2014 and 15.11% at September 30, 2014. The Company's leverage ratio was 9.96% at December 31, 2014 and 10.22% at September 30, 2014.

•

The Company paid a regular quarterly cash dividend of $29 million or $0.42 per common share during the fourth quarter of 2014. On January 27, 2015, the board of directors approved a quarterly cash dividend of $0.42 per common share payable on or about February 27, 2015 to shareholders of record as of February 13, 2015. During the fourth quarter, the Company repurchased 200,000 common shares at an average price of $61.68 per share.

Net Interest Revenue

Net interest revenue increased $2.9 million over the third quarter of 2014. Net interest margin was 2.61% for the fourth quarter of 2014, compared to 2.67% for the third quarter of 2014.

The yield on average earning assets was 2.86%, a decrease of 7 basis points compared to the prior quarter. The loan portfolio yield decreased 5 basis points from the previous quarter to 3.73% primarily due to continued market pricing pressure. The yield on the available for sale securities portfolio increased 4 basis points to 1.99%. Excess cash flows continue to be reinvested in short-duration securities that yield around 2%. Funding costs decreased 2 basis points compared to the prior quarter to 0.39%.

Average earning assets increased $1.0 billion during the fourth quarter of 2014 primarily due to an $872 million increase in interest-bearing cash and cash equivalents. This increase was primarily driven by the full quarter impact of depositing $1.5 billion of borrowed funds in the Federal Reserve Bank to earn a spread. Average loan balances increased $363 million, offset by a $365 million decrease in the available for sale securities portfolio. Average deposits increased $471 million over the third quarter of 2014. The average balance of borrowed funds increased $407 million primarily due to increased borrowings from the Federal Home Loan Bank.

Steven Nell, Chief Financial Officer noted, “During the year, we remixed our balance sheet to replace fixed income securities with high-quality commercial loans, which should better position the bank in anticipation of rising interest rates in 2015. In total, the amortized cost of our securities portfolio decreased $1.3 billion, while our loan portfolio grew by $1.4 billion. We expect to continue this transition at a pace consistent with the fourth quarter. In addition, increased cash balances deposited at the Federal Reserve reduced tax equivalent net interest margin by 8 basis points compared to the third quarter. Excluding this strategy which adds net interest revenue, net interest margin increased two basis points over the third quarter."

Fees and Commissions Revenue

Fees and commissions revenue totaled $157.9 million for the fourth quarter of 2014, largely unchanged compared to the third quarter of 2014. A decrease in brokerage and trading revenue was largely offset by growth in mortgage banking revenue and fiduciary and asset management revenue.

Brokerage and trading revenue totaled $30.6 million, a $4.7 million decrease compared to the prior quarter. The fourth quarter included $562 thousand of recoveries from the Lehman bankruptcy. Excluding these recoveries, customer hedging revenue decreased $1.4 million primarily due to a decrease in energy and foreign exchange derivative contracts sold to customers. Retail brokerage fees were $2.7 million lower than the prior quarter. Investment banking revenue decreased $934 thousand and securities trading revenue decreased $179 thousand.

Mortgage banking revenue totaled $30.1 million for the fourth quarter of 2014, up $3.3 million over the third quarter of 2014. Revenue from mortgage loan production increased $2.5 million over the prior quarter. Net realized gain from loans funded and sold into the secondary market increased $571 thousand primarily due to an increase in refinanced mortgage loans. The valuation on loan commitments and loans that have closed but have not yet been sold as of the end of the fourth quarter, net of forward sales commitments was $1.9 million more than at the end of the third quarter. Revenue from mortgage loan servicing grew by $795 thousand due to an increase in the volume of loans serviced.

Fiduciary and asset management revenue was $30.6 million, a $911 thousand increase over the prior quarter, primarily due to growth in the fair value of fiduciary asset administered by the Company. Fiduciary assets were $36.0 billion at December 31, 2014 compared to $34.0 billion at September 30, 2014.

Operating Expenses

Total operating expenses were $225.9 million for the fourth quarter of 2014, an increase of $4.0 million over the third quarter of 2014. During the fourth quarter, the Company announced the discontinuation of the grocery store branch model, resulting in 29 in-store branch closures during the first quarter of 2015. The decision comes as consumer trends lean more towards use of digital banking for everyday transactions and banking center visits for in-person advice or consult. Approximately $4.9 million was expensed in the fourth quarter related to the announced closures, primarily related to facilities and severance costs.

Personnel costs increased $2.7 million over the previous quarter. Regular compensation expense increased $3.7 million and included $800 thousand of branch closure costs. This increase was partially offset by an $822 thousand seasonal decrease in payroll taxes. Incentive compensation was unchanged compared to the prior quarter.

Non-personnel expense increased $1.3 million over the third quarter of 2014. Net losses (gains) and operating expenses of repossessed assets decreased $6.5 million during the fourth quarter to a net gain of $1.5 million. Professional fees and services expense decreased $3.7 million as risk management and regulatory compliance cost stabilized. The third quarter included $2.2 million for an independent assessment of certain risk management capabilities. Net occupancy expense increased $3.8 million over the third quarter. Approximately $4.1 million was expensed in the fourth quarter related to branch closure costs. Mortgage banking costs increased $2.8 million over the third quarter primarily due to increased prepayments of loans serviced for others and accruals for loan servicing costs. The Company also made a $1.8 million contribution of developed commercial real estate to the BOKF Foundation during the fourth quarter. This contribution resulted in an $822 thousand reduction in income tax expense.

Loans, Deposits and Capital

Loans

Outstanding loans were $14.2 billion at December 31, 2014, an increase of $524 million over the previous quarter. Commercial, commercial real estate and consumer loan balances all grew over the prior quarter, partially offset by a decrease in residential mortgage loan balances.

Outstanding commercial loan balances increased $524 million over September 30, 2014. All sectors of our commercial loan portfolio grew over the prior quarter. Energy sector loans grew $309 million over September 30, 2014. Healthcare sector loans were up $73 million and manufacturing sector loans grew by $53 million. Wholesale/retail sector loans were up $40 million, service sector loans balances grew by $30 million and Other commercial and industrial loans increased $19 million. Unfunded energy loan commitments were increased by $25 million in the fourth quarter to $2.9 billion. All other unfunded commercial loan commitments totaled $4.3 billion at December 31, 2014, an increase of $494 million over September 30, 2014.

Commercial real estate loans increased $4.0 million over September 30, 2014. Loans secured by industrial facilities were up $57 million and retail sector loans grew by $56 million over the prior quarter. This growth was offset by a $35 million decrease in loans secured by multifamily residential properties, a $23 million decrease in loans secured by office buildings and construction and a $32 million decrease in residential construction and land development loans. Unfunded commercial real estate loan commitments totaled $753 million at December 31, 2014, an increase of $95 million over September 30, 2014.

Dan Ellinor, Chief Operating Officer, stated, “We continue to see strong demand for commercial loans across the business. Fourth quarter loan growth was robust, and our new deal pipelines remain full at the beginning of 2015. Accordingly, we continue to forecast low-double-digit loan growth through 2015. In particular, as we expected, loan demand in our energy lending business has accelerated due to a more rational competitive environment as well as fewer non-bank alternatives for high-quality energy borrowers.”

Energy Loan Update

At December 31, 2014, the Company's energy loan portfolio totaled $2.9 billion, up from $2.6 billion at September 30, 2014 and $2.4 billion at December 31, 2013. Loans to energy exploration and production companies represented 86% of total energy loans outstanding. Loans to energy services, midstream and retail / wholesale energy companies were 8%, 3% and 3%, respectively.

With the recent decrease in energy prices, the Company has conducted a comprehensive credit review of those areas of the energy portfolio that it deems having the highest level of risk in an energy industry downturn: energy services companies, energy borrowers with high total leverage, and those energy customers determined to be most susceptible to lower commodity prices in the Company's most recent energy portfolio stress test. The Company conducted an updated stress test of its energy portfolio, assuming starting commodity prices of $45 per barrel for oil and $2.50 per MMBTUs for natural gas. The Company also reviewed borrowers who comprised a majority of energy loan growth in the fourth quarter.

The results of the comprehensive review and updated stress test did not alter the general view that the loan portfolio is well positioned to withstand a short-term correction in oil and natural gas prices. No material near-term losses were identified.

Stacy Kymes, Chief Credit Officer, noted, “Commodity price volatility is inherent in energy lending. Oil or natural gas prices have fallen by 50% or more in a six-month period six times since 2000, and thus far by historic standards, the price drop which began in June 2014 is less severe than those previous declines. Our average gross charge-offs in the energy production portfolio are 9.9 basis points over the past 10 years and 6.4 basis points over the past 20 years, making it our best performing portfolio from a credit quality standpoint.”

Kymes continued, “We believe the duration of the downturn is the key question to assess credit risk or risk of an economic slowdown in our footprint. To that end, we see two distinct risk periods: if commodity prices return to a normalized, stable level over the next 6-12 months, we expect to see some credits migrate to potential problem loan or non-accrual status, but few, if any material actual losses in the portfolio. In addition, we expect a more modest impact on economic growth in our footprint. If the downturn extends beyond 12 months, outcomes are obviously more difficult to predict. At that point, we would be more likely to see loss content in the portfolio and a greater impact on the overall economy, and in turn lower loan demand. However, at present our portfolio is strong, we are doing business with high-quality borrowers, and we do not view the current commodity price decline as inherently different than previous declines we have experienced since 2000.”

Deposits

Deposits totaled $21.1 billion at December 31, 2014, an increase of $852 million over September 30, 2014 primarily due to normal seasonality and temporary customer activity. Interest-bearing transaction account balances grew by $870 million. Demand deposit balances were largely unchanged compared to the prior quarter. Time deposits decreased $56 million. Among the lines of business, commercial deposits increased $173 million, consumer deposits decreased $5.9 million and wealth management deposits increased $298 million.

Capital

The Company and its subsidiary bank exceeded the regulatory definition of well capitalized at December 31, 2014. The Company's Tier 1 capital ratio was 13.29% at December 31, 2014 and 13.72% at September 30, 2014. The total capital ratio was 14.61% at December 31, 2014 and 15.11% at September 30, 2014. In addition, the Company's tangible common equity ratio, a non-GAAP measure, was 10.08% at December 31, 2014 and 9.86% at September 30, 2014.

In July 2013, banking regulators issued the final rule revising regulatory capital rules for substantially all U.S. banking organizations. The new capital rules, which were effective for BOK Financial on January 1, 2015, establish a 7% threshold for the Tier 1 common equity ratio. The Company will elect to exclude unrealized gains and losses from available for sale securities from its calculation of Tier 1 capital, consistent with the treatment under current capital rules. BOK Financial's Tier 1 common equity ratio based on the existing Basel I standards was 13.13% as of December 31, 2014. Based on our interpretation of the new capital rule, our estimated Tier 1 common equity ratio on a fully phased-in basis would be approximately 12.25%, nearly 525 basis points above the 7% regulatory threshold.

Credit Quality

Nonperforming assets totaled $257 million or 1.79% of outstanding loans and repossessed assets at December 31, 2014 compared to $265 million or 1.92% of outstanding loans and repossessed assets at September 30, 2014. Nonperforming assets that are not guaranteed by U.S. government agencies totaled $129 million or 0.92% of outstanding loans and repossessed assets (excluding those guaranteed by U.S. government agencies) at December 31, 2014 and $144 million or 1.06% at September 30, 2014, a decrease of $15 million or 10%.

Nonaccruing loans totaled $81 million or 0.57% of outstanding loans at December 31, 2014 compared to $97 million or 0.71% of outstanding loans at September 30, 2014. New nonaccruing loans identified in the fourth quarter totaled $14 million, offset by $17 million in payments received, $7.2 million in charge-offs and $5.7 million in foreclosures and repossessions. At December 31, 2014, nonaccruing commercial loans totaled $14 million or 0.15% of outstanding commercial loans and nonaccruing commercial real estate loans totaled $19 million or 0.68% of outstanding commercial real estate loans. Nonaccruing residential mortgage loans totaled $48 million or 2.47% of outstanding residential mortgage loans.

Net charge-offs were $2.2 million for the fourth quarter of 2014, compared to net recoveries of $476 thousand for the third quarter of 2014. Gross charge-offs totaled $7.2 million for the fourth quarter, compared to $2.6 million for the previous quarter. Recoveries totaled $5.0 million for the fourth quarter of 2014 and $3.1 million for the third quarter of 2014.

After evaluating all credit factors, including the inherent risk of falling energy prices, the Company determined that no provision for credit losses was necessary during the fourth quarter of 2014. The combined allowance for credit losses totaled $190 million or 1.34% of outstanding loans and 235.59% of nonaccruing loans at December 31, 2014. The allowance for loan losses was $189 million and the accrual for off-balance sheet credit losses was $1.2 million.

Real estate and other repossessed assets totaled $102 million at December 31, 2014, primarily consisting of $68 million of 1-4 family residential properties (including $50 million guaranteed by U.S. government agencies), $21 million of developed commercial real estate properties, $7.9 million of undeveloped land and $4.9 million of residential land and land development properties.

Securities and Derivatives

The fair value of the available for sale securities portfolio totaled $9.0 billion at December 31, 2014 and $9.3 billion at September 30, 2014. At December 31, 2014, the available for sale portfolio consisted primarily of $6.6 billion of residential mortgage-backed securities fully backed by U.S. government agencies and $2.0 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 $97 million at December 31, 2014, compared to a net unrealized gain of $43 million at September 30, 2014. Net unrealized gains on residential mortgage-backed securities issued by U.S. government agencies at September 30, 2014 increased $41 million during the fourth quarter to a net unrealized gain of $98 million at December 31, 2014. Commercial mortgage-backed securities had a net unrealized loss of $15 million at December 31, 2014, compared to a net unrealized loss of $27 million at September 30, 2014.

In the fourth quarter of 2014, the Company recognized net gains of $149 thousand from sales of $772 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 will perform better in a rising rate environment. Net gains from sales of $553 million of available for sale securities in the third quarter of 2014 totaled $146 thousand.

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 decreased by $10.8 million due primarily to a nearly 40 basis point decrease in residential mortgage interest rates during the fourth quarter of 2014. The value of securities and interest rate derivative contracts held as an economic hedge increased by $4.8 million. Mortgage interest rate changes increased the fair value of mortgage servicing rights net of economic hedges by $4.8 million in the third quarter.

Conference Call and Webcast

The Company will hold a conference call at 9:00 a.m. central time on Wednesday, January 28, 2015 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 # 10058729.

About BOK Financial Corporation

BOK Financial is a $29 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, MBM Advisors 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, 2014 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.

Exhibit 99 (b)

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

	December 31, 2014			September 30, 2014			December 31, 2013
ASSETS
Cash and due from banks	$	550,576		$	557,658		$	512,931
Interest-bearing cash and cash equivalents	1,925,266			2,007,901			574,282
Trading securities	188,700			169,712			91,616
Investment securities	652,360			655,091			677,878
Available for sale securities	8,978,945			9,306,886			10,147,162
Fair value option securities	311,597			175,761			167,125
Restricted equity securities	141,494			189,587			85,240
Residential mortgage loans held for sale	304,182			373,253			200,546
Loans:
Commercial	9,095,670			8,572,038			7,943,221
Commercial real estate	2,728,150			2,724,199			2,415,353
Residential mortgage	1,949,512			1,979,663			2,052,026
Consumer	434,705			407,839			381,664
Total loans	14,208,037			13,683,739			12,792,264
Allowance for loan losses	(189,056		)	(191,244		)	(185,396		)
Loans, net of allowance	14,018,981			13,492,495			12,606,868
Premises and equipment, net	273,833			275,718			277,849
Receivables	132,408			114,374			117,126
Goodwill	377,780			377,780			359,759
Intangible assets, net	34,376			35,476			24,564
Mortgage servicing rights, net	171,976			173,286			153,333
Real estate and other repossessed assets, net	101,861			97,871			92,272
Derivative contracts, net	361,874			360,809			265,012
Cash surrender value of bank-owned life insurance	293,978			291,583			284,801
Receivable on unsettled securities sales	74,259			94,881			17,174
Other assets	195,252			354,898			359,894
TOTAL ASSETS	$	29,089,698		$	29,105,020		$	27,015,432

LIABILITIES AND EQUITY
Deposits:
Demand	$	8,066,357		$	8,038,129		$	7,316,277
Interest-bearing transaction	10,114,355			9,244,709			9,934,051
Savings	351,431			341,638			323,006
Time	2,608,716			2,664,580			2,695,993
Total deposits	21,140,859			20,289,056			20,269,327
Funds purchased	57,031			85,135			868,081
Repurchase agreements	1,187,489			1,026,009			813,454
Other borrowings	2,133,774			3,484,487			1,040,353
Subordinated debentures	347,983			347,936			347,802
Accrued interest, taxes, and expense	120,211			100,664			194,870
Due on unsettled securities purchases	290,540			8,126			45,740
Derivative contracts, net	354,554			348,687			247,185
Other liabilities	121,051			137,608			133,647
TOTAL LIABILITIES	25,753,492			25,827,708			23,960,459
Shareholders' equity:
Capital, surplus and retained earnings	3,245,506			3,219,798			3,045,672
Accumulated other comprehensive income (loss)	56,673			23,295			(25,623		)
TOTAL SHAREHOLDERS' EQUITY	3,302,179			3,243,093			3,020,049
Non-controlling interests	34,027			34,219			34,924
TOTAL EQUITY	3,336,206			3,277,312			3,054,973
TOTAL LIABILITIES AND EQUITY	$	29,089,698		$	29,105,020		$	27,015,432

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

	Three Months Ended
	December 31, 2014			September 30, 2014			June 30, 2014			March 31, 2014			December 31, 2013
ASSETS
Interest-bearing cash and cash equivalents	$	2,090,176		$	1,217,942		$	635,140		$	549,473		$	559,918
Trading securities	164,502			107,909			116,186			92,409			127,011
Investment securities	650,911			641,375			658,793			671,756			672,722
Available for sale securities	9,161,901			9,526,727			9,800,934			10,076,942			10,434,810
Fair value option securities	221,773			180,268			164,684			165,515			167,490
Restricted equity securities	182,737			142,418			97,016			85,234			123,009
Residential mortgage loans held for sale	321,746			310,924			219,308			185,196			217,811
Loans:
Commercial	8,886,952			8,468,575			8,266,455			7,971,712			7,737,883
Commercial real estate	2,665,547			2,691,318			2,622,866			2,605,264			2,352,915
Residential mortgage	1,904,777			1,955,769			1,983,926			1,998,620			1,998,980
Consumer	424,729			402,916			391,214			372,330			371,798
Total loans	13,882,005			13,518,578			13,264,461			12,947,926			12,461,576
Allowance for loan losses	(190,787		)	(191,141		)	(189,329		)	(186,979		)	(193,309		)
Total loans, net	13,691,218			13,327,437			13,075,132			12,760,947			12,268,267
Total earning assets	26,484,964			25,455,000			24,767,193			24,587,472			24,571,038
Cash and due from banks	528,595			493,200			481,944			473,758			324,349
Derivative contracts, net	352,565			288,682			291,325			287,363			314,530
Cash surrender value of bank-owned life insurance	292,411			290,044			287,725			285,592			283,289
Receivable on unsettled securities sales	69,109			63,277			108,825			114,708			83,016
Other assets	1,404,553			1,525,354			1,549,809			1,489,875			1,526,566
TOTAL ASSETS	$	29,132,197		$	28,115,557		$	27,486,821		$	27,238,768		$	27,102,788

LIABILITIES AND EQUITY
Deposits:
Demand	$	7,974,165		$	7,800,350		$	7,654,225		$	7,312,076		$	7,356,063
Interest-bearing transaction	9,730,564			9,473,575			9,850,991			9,900,823			9,486,136
Savings	346,132			342,488			355,459			336,576			323,123
Time	2,647,147			2,610,561			2,636,444			2,686,041			2,710,019
Total deposits	20,698,008			20,226,974			20,497,119			20,235,516			19,875,341
Funds purchased	71,728			320,817			574,926			1,021,755			748,074
Repurchase agreements	996,308			1,027,206			914,892			773,127			752,286
Other borrowings	3,021,094			2,333,961			1,294,932			1,038,747			1,551,591
Subordinated debentures	347,960			347,914			347,868			347,824			347,781
Derivative contracts, net	321,367			270,998			243,619			258,729			294,315
Due on unsettled securities purchases	137,566			124,952			166,521			116,295			152,078
Other liabilities	228,021			214,306			270,220			341,701			327,519
TOTAL LIABILITIES	25,822,052			24,867,128			24,310,097			24,133,694			24,048,985
Total equity	3,310,145			3,248,429			3,176,724			3,105,074			3,053,803
TOTAL LIABILITIES AND EQUITY	$	29,132,197		$	28,115,557		$	27,486,821		$	27,238,768		$	27,102,788

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

	Three Months Ended						Year Ended
	December 31,						December 31,
	2014			2013			2014			2013

Interest revenue	$	186,620		$	183,120		$	732,239		$	745,371
Interest expense	16,956			16,876			67,045			70,894
Net interest revenue	169,664			166,244			665,194			674,477
Provision for credit losses	—			(11,400		)	—			(27,900		)
Net interest revenue after provision for credit losses	169,664			177,644			665,194			702,377
Other operating revenue:
Brokerage and trading revenue	30,602			28,515			134,437			125,478
Transaction card revenue	31,467			29,134			123,689			116,823
Fiduciary and asset management revenue	30,649			25,074			115,652			96,082
Deposit service charges and fees	22,581			23,440			90,911			95,110
Mortgage banking revenue	30,105			21,876			109,093			121,934
Bank-owned life insurance	2,380			2,285			9,086			10,155
Other revenue	10,071			12,048			38,451			38,262
Total fees and commissions	157,855			142,372			621,319			603,844
Gain (loss) on other assets, net	(1,529		)	651			(6,346		)	(925		)
Gain (loss) on derivatives, net	1,070			(930		)	2,776			(4,367		)
Gain (loss) on fair value option securities, net	3,685			(2,805		)	10,189			(15,212		)
Change in fair value of mortgage servicing rights	(10,821		)	6,093			(16,445		)	22,720
Gain on available for sale securities, net	149			1,634			1,539			10,720
Total other-than-temporary impairment losses	(373		)	—			(373		)	(2,574		)
Portion of loss recognized in (reclassified from) other comprehensive income	—			—			—			266
Net impairment losses recognized in earnings	(373		)	—			(373		)	(2,308		)
Total other operating revenue	150,036			147,015			612,659			614,472
Other operating expense:
Personnel	125,741			125,662			476,931			505,225
Business promotion	7,498			6,020			26,649			22,598
Contribution to BOKF Foundation	1,847			—			4,267			2,062
Professional fees and services	11,058			10,003			44,440			32,552
Net occupancy and equipment	22,655			19,103			77,232			69,773
Insurance	4,777			4,394			18,578			16,122
Data processing and communications	30,872			28,196			117,049			106,075
Printing, postage and supplies	3,168			3,126			13,518			13,885
Net losses (gains) and operating expenses of repossessed assets	(1,497		)	1,618			6,019			5,160
Amortization of intangible assets	1,100			842			3,965			3,428
Mortgage banking costs	10,553			7,071			29,881			31,088
Other expense	8,105			9,384			28,993			32,652
Total other operating expense	225,877			215,419			847,522			840,620

Net income before taxes	93,823			109,240			430,331			476,229
Federal and state income taxes	28,242			35,318			134,852			157,298

Net income	65,581			73,922			295,479			318,931
Net income attributable to non-controlling interests	1,263			946			3,044			2,322
Net income attributable to BOK Financial Corporation shareholders	$	64,318		$	72,976		$	292,435		$	316,609

Average shares outstanding:
Basic	68,481,630			68,095,254			68,394,194			67,988,897
Diluted	68,615,808			68,293,758			68,544,770			68,205,519

Net income per share:
Basic	$	0.93		$	1.06		$	4.23		$	4.61
Diluted	$	0.93		$	1.06		$	4.22		$	4.59

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

	Three Months Ended
	December 31, 2014			September 30, 2014			June 30, 2014			March 31, 2014			December 31, 2013
Capital:
Period-end shareholders' equity	$	3,302,179		$	3,243,093		$	3,212,517		$	3,109,925		$	3,020,049
Risk weighted assets	$	21,358,938		$	20,491,089		$	20,216,268		$	19,720,418		$	19,389,381
Risk-based capital ratios:
Tier 1	13.29		%	13.72		%	13.63		%	13.77		%	13.77		%
Total capital	14.61		%	15.11		%	15.38		%	15.55		%	15.56		%
Leverage ratio	9.96		%	10.22		%	10.26		%	10.17		%	10.05		%
Tangible common equity ratio¹	10.08		%	9.86		%	10.20		%	10.06		%	9.90		%
Tier 1 common equity ratio	13.13		%	13.55		%	13.46		%	13.59		%	13.59		%

Common stock:
Book value per share	$	47.78		$	46.77		$	46.39		$	45.00		$	43.88
Market value per share:
High	$	68.69		$	69.56		$	70.66		$	69.69		$	66.32
Low	$	56.87		$	63.36		$	61.64		$	62.34		$	60.81
Cash dividends paid	$	29,114		$	27,705		$	27,706		$	27,637		$	27,523
Dividend payout ratio	45.27		%	36.63		%	36.51		%	36.08		%	37.72		%
Shares outstanding, net	69,113,736			69,344,082			69,256,958			69,111,167			68,829,450

Stock buy-back program:
Shares repurchased	200,000			—			—			—			—
Amount	$	12,337		$	—		$	—		$	—		$	—
Average price per share	$	61.68		$	—		$	—		$	—		$	—

Performance ratios (quarter annualized):
Return on average assets	0.88		%	1.07		%	1.11		%	1.14		%	1.07		%
Return on average equity	7.71		%	9.24		%	9.58		%	10.00		%	9.48		%
Net interest margin	2.61		%	2.67		%	2.75		%	2.71		%	2.74		%
Efficiency ratio	67.57		%	66.79		%	63.62		%	59.69		%	68.50		%

Reconciliation of non-GAAP measures:
¹ Tangible common equity ratio:
Total shareholders' equity	$	3,302,179		$	3,243,093		$	3,212,517		$	3,109,925		$	3,020,049
Less: Goodwill and intangible assets, net	412,156			413,256			414,356			396,131			384,323
Tangible common equity	$	2,890,023		$	2,829,837		$	2,798,161		$	2,713,794		$	2,635,726

Total assets	$	29,089,698		$	29,105,020		$	27,843,770		$	27,364,714		$	27,015,432
Less: Goodwill and intangible assets, net	412,156			413,256			414,356			396,131			384,323
Tangible assets	$	28,677,542		$	28,691,764		$	27,429,414		$	26,968,583		$	26,631,109

Tangible common equity ratio	10.08		%	9.86		%	10.20		%	10.06		%	9.90		%

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

	Three Months Ended
	December 31, 2014			September 30, 2014			June 30, 2014			March 31, 2014			December 31, 2013

Estimated Tier 1 common equity ratio under fully phased-in Basel III:
Tier 1 common under existing Basel I	$	2,804,102
Estimated adjustments	(31,250		)
Estimated Tier 1 common equity under fully phased-in Basel III	$	2,772,852

Risk weighted assets	$	21,358,938
Estimated adjustments	1,270,601
Estimated risk weighted assets under fully phased-in Basel III	$	22,629,539

Estimated Tier 1 common equity under fully phased-in Basel III	12.25		%

Other data:
Fiduciary assets	$	35,997,877		$	34,020,442		$	32,716,648		$	31,296,565		$	30,137,092
Tax equivalent adjustment	$	2,857		$	2,739		$	2,803		$	2,551		$	2,467
Net unrealized gain (loss) on available for sale securities	$	96,955		$	42,935		$	85,480		$	15,446		$	(37,929	)

Mortgage banking:
Mortgage servicing portfolio	$	16,162,887		$	15,499,653		$	14,626,291		$	14,045,642		$	13,718,942
Mortgage commitments	$	520,829		$	537,975		$	546,864		$	387,755		$	258,873
Mortgage loans funded for sale	$	1,264,269		$	1,394,211		$	1,090,629		$	727,516		$	848,870
Mortgage loan refinances to total fundings	37		%	26		%	25		%	32		%	29		%

Net realized gains on mortgage loans sold	$	17,671		$	17,100		$	12,746		$	9,179		$	12,162
Net unrealized gains (losses) on mortgage loans held for resale	618			(3,110		)	5,052			2,797			(6,808		)
Change in fair value of mortgage loan commitments	1,491			(5,136		)	7,581			3,379			(8,292		)
Change in fair value of forward sales contracts	(2,591		)	5,839			(7,652		)	(3,903		)	13,669
Total production revenue	17,189			14,693			17,727			11,452			10,731
Servicing revenue	12,916			12,121			11,603			11,392			11,145
Total mortgage banking revenue	$	30,105		$	26,814		$	29,330		$	22,844		$	21,876

Gain (loss) on mortgage servicing rights, net of economic hedge:
Gain (loss) on mortgage hedge derivative contracts, net	$	1,070		$	(93	)	$	831		$	968		$	(931	)
Gain (loss) on fair value option securities, net	3,685			(341		)	4,074			2,585			(3,013		)
Gain (loss) on economic hedge of mortgage servicing rights	4,755			(434		)	4,905			3,553			(3,944		)
Gain (loss) on changes in fair value of mortgage servicing rights	(10,821		)	5,281			(6,444		)	(4,461		)	6,093
Gain (loss) on changes in fair value of mortgage servicing rights, net of economic hedges	$	(6,066	)	$	4,847		$	(1,539	)	$	(908	)	$	2,149

Net interest revenue on fair value option securities	$	912		$	830		$	721		$	790		$	811

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

	Three Months Ended
	December 31, 2014			September 30, 2014			June 30, 2014			March 31, 2014			December 31, 2013

Interest revenue	$	186,620		$	183,868		$	182,631		$	179,120		$	183,120
Interest expense	16,956			17,077			16,534			16,478			16,876
Net interest revenue	169,664			166,791			166,097			162,642			166,244
Provision for credit losses	—			—			—			—			(11,400		)
Net interest revenue after provision for credit losses	169,664			166,791			166,097			162,642			177,644
Other operating revenue:
Brokerage and trading revenue	30,602			35,263			39,056			29,516			28,515
Transaction card revenue	31,467			31,578			31,510			29,134			29,134
Fiduciary and asset management revenue	30,649			29,738			29,543			25,722			25,074
Deposit service charges and fees	22,581			22,508			23,133			22,689			23,440
Mortgage banking revenue	30,105			26,814			29,330			22,844			21,876
Bank-owned life insurance	2,380			2,326			2,274			2,106			2,285
Other revenue	10,071			10,320			9,208			8,852			12,048
Total fees and commissions	157,855			158,547			164,054			140,863			142,372
Gain (loss) on other assets, net	(1,529		)	(501		)	(52		)	(4,264		)	651
Gain (loss) on derivatives, net	1,070			(93		)	831			968			(930		)
Gain (loss) on fair value option securities, net	3,685			(332		)	4,176			2,660			(2,805		)
Change in fair value of mortgage servicing rights	(10,821		)	5,281			(6,444		)	(4,461		)	6,093
Gain (loss) on available for sale securities, net	149			146			4			1,240			1,634
Total other-than-temporary impairment losses	(373		)	—			—			—			—
Portion of loss recognized in (reclassified from) other comprehensive income	—			—			—			—			—
Net impairment losses recognized in earnings	(373		)	—			—			—			—
Total other operating revenue	150,036			163,048			162,569			137,006			147,015
Other operating expense:
Personnel	125,741			123,043			123,714			104,433			125,662
Business promotion	7,498			6,160			7,150			5,841			6,020
Contribution to BOKF Foundation	1,847			—			—			2,420			—
Professional fees and services	11,058			14,763			11,054			7,565			10,003
Net occupancy and equipment	22,655			18,892			18,789			16,896			19,103
Insurance	4,777			4,793			4,467			4,541			4,394
Data processing and communications	30,872			29,971			29,071			27,135			28,196
Printing, postage and supplies	3,168			3,380			3,429			3,541			3,126
Net losses (gains) and operating expenses of repossessed assets	(1,497		)	4,966			1,118			1,432			1,618
Amortization of intangible assets	1,100			1,100			949			816			842
Mortgage banking costs	10,553			7,734			7,960			3,634			7,071
Other expense	8,105			7,032			7,006			6,850			9,384
Total other operating expense	225,877			221,834			214,707			185,104			215,419
Net income before taxes	93,823			108,005			113,959			114,544			109,240
Federal and state income taxes	28,242			31,879			37,230			37,501			35,318
Net income	65,581			76,126			76,729			77,043			73,922
Net income attributable to non-controlling interests	1,263			494			834			453			946
Net income attributable to BOK Financial Corporation shareholders	$	64,318		$	75,632		$	75,895		$	76,590		$	72,976

Average shares outstanding:
Basic	68,481,630			68,455,866			68,359,945			68,273,685			68,095,254
Diluted	68,615,808			68,609,765			68,511,378			68,436,478			68,293,758
Net income per share:
Basic	$	0.93		$	1.09		$	1.10		$	1.11		$	1.06
Diluted	$	0.93		$	1.09		$	1.10		$	1.11		$	1.06

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

	December 31, 2014		September 30, 2014		June 30, 2014		March 31, 2014		December 31, 2013
Commercial:
Energy	$	2,860,428	$	2,551,699	$	2,419,788	$	2,344,072	$	2,351,760
Services	2,518,229		2,487,817		2,377,065		2,232,471		2,282,210
Wholesale/retail	1,313,316		1,273,241		1,318,151		1,225,990		1,201,364
Manufacturing	532,594		479,543		452,866		444,215		391,751
Healthcare	1,454,969		1,382,399		1,394,156		1,396,562		1,274,246
Other commercial and industrial	416,134		397,339		405,635		408,396		441,890
Total commercial	9,095,670		8,572,038		8,367,661		8,051,706		7,943,221

Commercial real estate:
Residential construction and land development	143,591		175,228		184,779		184,820		206,258
Retail	666,889		611,265		642,110		640,506		586,047
Office	415,544		438,909		394,217		436,264		411,499
Multifamily	704,298		739,757		677,403		662,674		576,502
Industrial	428,817		371,426		342,080		305,207		243,877
Other real estate	369,011		387,614		414,389		401,936		391,170
Total commercial real estate	2,728,150		2,724,199		2,654,978		2,631,407		2,415,353

Residential mortgage:
Permanent mortgage	969,951		991,107		1,020,928		1,033,572		1,062,744
Permanent mortgages guaranteed by U.S. government agencies	205,950		198,488		188,087		184,822		181,598
Home equity	773,611		790,068		799,200		800,281		807,684
Total residential mortgage	1,949,512		1,979,663		2,008,215		2,018,675		2,052,026

Consumer	434,705		407,839		396,004		376,066		381,664

Total	$	14,208,037	$	13,683,739	$	13,426,858	$	13,077,854	$	12,792,264

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

	December 31, 2014		September 30, 2014		June 30, 2014		March 31, 2014		December 31, 2013

Bank of Oklahoma:
Commercial	$	3,142,689	$	3,106,264	$	3,101,513	$	2,782,997	$	2,902,140
Commercial real estate	603,610		592,865		598,790		593,282		602,010
Residential mortgage	1,467,096		1,481,264		1,490,171		1,505,702		1,524,212
Consumer	206,115		193,207		187,914		179,733		192,283
Total Bank of Oklahoma	5,419,510		5,373,600		5,378,388		5,061,714		5,220,645

Bank of Texas:
Commercial	3,549,128		3,169,458		3,107,808		3,161,203		3,052,274
Commercial real estate	1,027,817		1,046,322		995,182		969,804		816,574
Residential mortgage	235,948		247,117		251,290		256,332		260,544
Consumer	154,363		148,965		147,322		136,782		131,297
Total Bank of Texas	4,967,256		4,611,862		4,501,602		4,524,121		4,260,689

Bank of Albuquerque:
Commercial	383,439		378,663		381,843		351,454		342,336
Commercial real estate	296,358		313,905		309,421		305,080		308,829
Residential mortgage	127,999		130,045		137,110		131,932		133,900
Consumer	10,899		11,714		12,346		12,972		13,842
Total Bank of Albuquerque	818,695		834,327		840,720		801,438		798,907

Bank of Arkansas:
Commercial	95,510		74,866		71,859		73,804		81,556
Commercial real estate	88,301		96,874		85,633		81,181		78,264
Residential mortgage	7,261		7,492		8,334		7,898		7,922
Consumer	5,169		5,508		6,323		6,881		8,023
Total Bank of Arkansas	196,241		184,740		172,149		169,764		175,765

Colorado State Bank & Trust:
Commercial	977,961		957,917		856,323		825,315		735,626
Commercial real estate	194,553		190,812		200,995		213,850		190,355
Residential mortgage	57,119		56,705		60,360		57,345		62,821
Consumer	27,918		24,812		23,330		22,095		22,686
Total Colorado State Bank & Trust	1,257,551		1,230,246		1,141,008		1,118,605		1,011,488

Bank of Arizona:
Commercial	547,524		500,208		446,814		453,799		417,702
Commercial real estate	355,140		316,698		292,799		301,266		257,477
Residential mortgage	35,872		39,256		41,059		42,899		47,111
Consumer	12,883		11,201		7,821		7,145		7,887
Total Bank of Arizona	951,419		867,363		788,493		805,109		730,177

Bank of Kansas City:
Commercial	399,419		384,662		401,501		403,134		411,587
Commercial real estate	162,371		166,723		172,158		166,944		161,844
Residential mortgage	18,217		17,784		19,891		16,567		15,516
Consumer	17,358		12,432		10,948		10,458		5,646
Total Bank of Kansas City	597,365		581,601		604,498		597,103		594,593

TOTAL BOK FINANCIAL	$	14,208,037	$	13,683,739	$	13,426,858	$	13,077,854	$	12,792,264

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)

	December 31, 2014		September 30, 2014		June 30, 2014		March 31, 2014		December 31, 2013
Bank of Oklahoma:
Demand	$	3,828,819	$	3,915,560	$	3,785,922	$	3,476,876	$	3,432,940
Interest-bearing:
Transaction	6,117,886		5,450,692		5,997,474		6,148,712		6,318,045
Savings	206,357		201,690		210,330		211,770		191,880
Time	1,301,194		1,292,738		1,195,586		1,209,002		1,214,507
Total interest-bearing	7,625,437		6,945,120		7,403,390		7,569,484		7,724,432
Total Bank of Oklahoma	11,454,256		10,860,680		11,189,312		11,046,360		11,157,372

Bank of Texas:
Demand	2,639,732		2,636,713		2,617,194		2,513,729		2,481,603
Interest-bearing:
Transaction	2,065,723		2,020,737		1,957,236		1,967,107		1,966,580
Savings	72,037		66,798		67,012		70,890		64,632
Time	547,316		569,929		606,248		621,925		638,465
Total interest-bearing	2,685,076		2,657,464		2,630,496		2,659,922		2,669,677
Total Bank of Texas	5,324,808		5,294,177		5,247,690		5,173,651		5,151,280

Bank of Albuquerque:
Demand	487,819		480,023		515,554		524,191		502,395
Interest-bearing:
Transaction	519,544		502,787		489,378		516,734		529,140
Savings	37,471		36,127		36,442		37,481		33,944
Time	295,798		303,074		309,540		320,352		327,281
Total interest-bearing	852,813		841,988		835,360		874,567		890,365
Total Bank of Albuquerque	1,340,632		1,322,011		1,350,914		1,398,758		1,392,760

Bank of Arkansas:
Demand	35,996		35,075		44,471		40,026		38,566
Interest-bearing:
Transaction	158,115		234,063		205,216		212,144		144,018
Savings	1,936		2,222		2,287		2,264		1,986
Time	28,520		38,811		41,155		32,312		32,949
Total interest-bearing	188,571		275,096		248,658		246,720		178,953
Total Bank of Arkansas	224,567		310,171		293,129		286,746		217,519

Colorado State Bank & Trust:
Demand	445,755		422,044		396,185		399,820		409,942
Interest-bearing:
Transaction	631,874		571,807		566,320		536,438		541,675
Savings	29,811		29,768		29,234		28,973		26,880
Time	353,998		372,401		385,252		399,948		407,088
Total interest-bearing	1,015,683		973,976		980,806		965,359		975,643
Total Colorado State Bank & Trust	1,461,438		1,396,020		1,376,991		1,365,179		1,385,585

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

	December 31, 2014		September 30, 2014		June 30, 2014		March 31, 2014		December 31, 2013
Bank of Arizona:
Demand	369,115		279,811		293,836		265,149		204,092
Interest-bearing:
Transaction	347,214		336,584		379,170		409,200		364,736
Savings	2,545		3,718		2,813		2,711		2,432
Time	36,680		38,842		37,666		37,989		34,391
Total interest-bearing	386,439		379,144		419,649		449,900		401,559
Total Bank of Arizona	755,554		658,955		713,485		715,049		605,651

Bank of Kansas City:
Demand	259,121		268,903		254,843		252,496		246,739
Interest-bearing:
Transaction	273,999		128,039		103,610		109,321		69,857
Savings	1,274		1,315		1,511		1,507		1,252
Time	45,210		48,785		40,379		40,646		41,312
Total interest-bearing	320,483		178,139		145,500		151,474		112,421
Total Bank of Kansas City	579,604		447,042		400,343		403,970		359,160

TOTAL BOK FINANCIAL	$	21,140,859	$	20,289,056	$	20,571,864	$	20,389,713	$	20,269,327

NET INTEREST MARGIN TREND -- UNAUDITED BOK FINANCIAL CORPORATION

	Three Months Ended
	December 31, 2014		September 30, 2014		June 30, 2014		March 31, 2014		December 31, 2013

TAX-EQUIVALENT ASSETS YIELDS
Interest-bearing cash and cash equivalents	0.28	%	0.20	%	0.24	%	0.20	%	0.18	%
Trading securities	2.48	%	2.67	%	2.40	%	2.85	%	1.73	%
Investment securities:
Taxable	5.68	%	5.66	%	5.64	%	5.64	%	5.75	%
Tax-exempt	1.56	%	1.56	%	1.63	%	1.67	%	1.66	%
Total investment securities	3.11	%	3.03	%	3.01	%	3.04	%	3.12	%
Available for sale securities:
Taxable	1.97	%	1.94	%	1.94	%	1.90	%	1.89	%
Tax-exempt	4.23	%	3.14	%	4.44	%	3.11	%	2.74	%
Total available for sale securities	1.99	%	1.95	%	1.96	%	1.91	%	1.89	%
Fair value option securities	2.18	%	2.05	%	1.94	%	1.99	%	2.06	%
Restricted equity securities	5.77	%	5.99	%	5.26	%	4.68	%	5.06	%
Residential mortgage loans held for sale	3.87	%	3.79	%	4.63	%	3.46	%	4.16	%
Loans	3.73	%	3.78	%	3.85	%	3.89	%	4.01	%
Allowance for loan losses
Loans, net of allowance	3.78	%	3.83	%	3.91	%	3.95	%	4.07	%
Total tax-equivalent yield on earning assets	2.86	%	2.93	%	3.02	%	2.99	%	3.02	%

COST OF INTEREST-BEARING LIABILITIES
Interest-bearing deposits:
Interest-bearing transaction	0.09	%	0.10	%	0.10	%	0.10	%	0.11	%
Savings	0.11	%	0.12	%	0.12	%	0.12	%	0.12	%
Time	1.47	%	1.56	%	1.55	%	1.56	%	1.55	%
Total interest-bearing deposits	0.38	%	0.41	%	0.40	%	0.41	%	0.42	%
Funds purchased	0.08	%	0.07	%	0.07	%	0.06	%	0.08	%
Repurchase agreements	0.04	%	0.05	%	0.08	%	0.08	%	0.06	%
Other borrowings	0.32	%	0.34	%	0.40	%	0.40	%	0.31	%
Subordinated debt	2.50	%	2.46	%	2.52	%	2.52	%	2.48	%
Total cost of interest-bearing liabilities	0.39	%	0.41	%	0.42	%	0.41	%	0.42	%
Tax-equivalent net interest revenue spread	2.47	%	2.52	%	2.60	%	2.58	%	2.60	%
Effect of noninterest-bearing funding sources and other	0.14	%	0.15	%	0.15	%	0.13	%	0.14	%
Tax-equivalent net interest margin	2.61	%	2.67	%	2.75	%	2.71	%	2.74	%

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
	December 31, 2014		September 30, 2014		June 30, 2014		March 31, 2014		December 31, 2013
Nonperforming assets:
Nonaccruing loans:
Commercial	$	13,527	$	16,404	$	17,103	$	19,047	$	16,760
Commercial real estate	18,557		30,660		34,472		39,305		40,850
Residential mortgage	48,121		48,907		44,340		45,380		42,320
Consumer	566		580		765		974		1,219
Total nonaccruing loans	80,771		96,551		96,680		104,706		101,149
Accruing renegotiated loans guaranteed by U.S. government agencies	73,985		70,459		57,818		55,507		54,322
Real estate and other repossessed assets:
Guaranteed by U.S. government agencies	49,898		46,809		49,720		45,638		37,431
Other	51,963		51,062		50,391		49,877		54,841
Total real estate and other repossessed assets	101,861		97,871		100,111		95,515		92,272
Total nonperforming assets	$	256,617	$	264,881	$	254,609	$	255,728	$	247,743
Total nonperforming assets excluding those guaranteed by U.S. government agencies	$	129,022	$	143,778	$	145,124	$	153,011	$	155,213

Nonaccruing loans by loan portfolio sector:
Commercial:
Energy	$	1,416	$	1,508	$	1,619	$	1,759	$	1,860
Manufacturing	450		3,482		3,507		3,565		592
Wholesale/retail	4,149		5,502		5,885		6,854		6,969
Services	5,201		3,584		3,669		4,581		4,922
Healthcare	1,380		1,417		1,422		1,443		1,586
Other commercial and industrial	931		911		1,001		845		831
Total commercial	13,527		16,404		17,103		19,047		16,760
Commercial real estate:
Residential construction and land development	5,299		14,634		15,146		16,547		17,377
Retail	3,926		4,009		4,199		4,626		4,857
Office	3,420		3,499		3,591		6,301		6,391
Multifamily	—		—		—		—		7
Industrial	—		—		631		886		252
Other commercial real estate	5,912		8,518		10,905		10,945		11,966
Total commercial real estate	18,557		30,660		34,472		39,305		40,850
Residential mortgage:
Permanent mortgage	34,845		35,137		32,952		36,342		34,279
Permanent mortgage guaranteed by U.S. government agencies	3,712		3,835		1,947		1,572		777
Home equity	9,564		9,935		9,441		7,466		7,264
Total residential mortgage	48,121		48,907		44,340		45,380		42,320
Consumer	566		580		765		974		1,219
Total nonaccruing loans	$	80,771	$	96,551	$	96,680	$	104,706	$	101,149

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

	Three Months Ended
	December 31, 2014			September 30, 2014			June 30, 2014			March 31, 2014			December 31, 2013

Performing loans 90 days past due¹	$	125		$	25		$	67		$	1,991		$	1,415

Gross charge-offs	$	(7,224	)	$	(2,638	)	$	(3,522	)	$	(2,848	)	$	(3,113	)
Recoveries	5,036			3,114			5,524			5,360			6,068
Net recoveries (charge-offs)	$	(2,188	)	$	476		$	2,002		$	2,512		$	2,955

Provision for credit losses	$	—		$	—		$	—		$	—		$	(11,400	)

Allowance for loan losses to period end loans	1.33		%	1.40		%	1.42		%	1.44		%	1.45		%
Combined allowance for credit losses to period end loans	1.34		%	1.41		%	1.43		%	1.45		%	1.47		%
Nonperforming assets to period end loans and repossessed assets	1.79		%	1.92		%	1.88		%	1.94		%	1.92		%
Net charge-offs (annualized) to average loans	0.06		%	(0.01		)%	(0.06		)%	(0.08		)%	(0.09		)%
Allowance for loan losses to nonaccruing loans	234.06		%	198.08		%	197.24		%	179.86		%	183.29		%
Combined allowance for credit losses to nonaccruing loans	235.59		%	199.35		%	198.59		%	181.46		%	185.35		%

¹ Excludes residential mortgage loans guaranteed by agencies of the U.S. government.

BOK FINANCIAL CORP - FORM 8-K - EX-99 - EXHIBIT 99 - January 28, 2015

Attached files