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

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8-K - 8-K - BOK FINANCIAL CORP	bokf-20150630x8xk.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 Quarterly Earnings of $79 Million

Double Digit Loan Growth, Record Fee and Commission Revenue Drive 4.6 percent EPS Growth

TULSA, Okla. (Wednesday, July 29, 2015) - BOK Financial Corporation reported net income of $79.2 million or $1.15 per diluted share for the second quarter of 2015. Net income was $74.8 million or $1.08 per diluted share for the first quarter of 2015 and $75.9 million or $1.10 per diluted share for the second quarter of 2014.

Steven G. Bradshaw, president and chief executive officer, stated, “The second quarter of 2015 was exceptionally strong for BOK Financial, with continued double-digit loan growth and net interest margin expansion. In addition, we realized record quarterly fees and commissions revenue for the second consecutive quarter, with strong performance from all of our fee-generating businesses. We are executing well all across the business, controlling expense growth, and benefiting from a continued strong economic environment throughout our footprint.

“We have not seen a noticeable impact from the downturn in energy prices,” Bradshaw continued. “Our largest markets of Oklahoma and Texas continue to have unemployment rates well below the national average, as jobs lost in the oil and gas industry are being replaced by job growth in other industries. Credit quality in our loan portfolio remains solid, and we continue to gain market share and win new business with customers and prospects. We remain optimistic about our growth opportunities through the balance of 2015 and beyond.”

Highlights of second quarter of 2015 included:


•	Net interest revenue totaled $175.7 million for the second quarter of 2015, up $8.0 million over the first quarter of 2015. Net interest margin was 2.61 percent for the second quarter of 2015 and 2.55 percent for the first quarter of 2015. Average earning assets increased $383 million during the second quarter of 2015, primarily related to a $351 million increase in average loan balances.


•	Fees and commissions revenue totaled $172.5 million for the second quarter of 2015, an increase of $6.6 million over the prior quarter. Brokerage and trading revenue grew $4.3 million. A $2.5 million decrease in mortgage banking revenue was offset by growth in all other fee-based business lines.


•	Changes in fair value of mortgage servicing rights, net of economic hedges, decreased pre-tax net income by $1.1 million in the second quarter of 2015 and $5.0 million in the first quarter of 2015.


•	Operating expense was $227.1 million for the second quarter, an increase of $6.8 million over the previous quarter, primarily due to increased incentive compensation expense.


•	A $4.0 million provision for credit losses was recorded in the second quarter of 2015. No provision was recorded in the first quarter of 2015. The additional provision was primarily due to loan portfolio growth. Net loans charged off totaled $671 thousand in the second quarter of 2015, compared to net recoveries of $8.4 million in the previous quarter.

•

The combined allowance for credit losses totaled $202 million or 1.34 percent of outstanding loans at June 30, 2015 compared to $199 million or 1.35 percent of outstanding loans at March 31, 2015. Nonperforming assets that are not guaranteed by U.S. government agencies totaled $123 million or 0.82 percent of outstanding loans and repossessed assets (excluding those guaranteed by U.S. government agencies) at June 30, 2015 and $123 million or 0.85 percent of outstanding loans and repossessed assets (excluding those guaranteed by U.S. government agencies) at March 31, 2015.


•	Average loans increased by $351 million over the previous quarter, primarily due to growth in commercial loans. Period-end outstanding loan balances also increased $440 million to $15.1 billion at June 30, 2015.


•	Average deposits decreased $155 million compared to the previous quarter, primarily due to a decrease in interest-bearing transaction accounts, partially offset by an increase in average demand deposit balances. Period-end deposits were $21.1 billion at June 30, 2015, largely unchanged compared to March 31, 2015.

•

New regulatory capital rules were effective for BOK Financial on January 1, 2015 and components of these rules will phase in through January 1, 2019. The new capital rules establish a 7 percent threshold for the common equity Tier 1 ratio. The common equity Tier 1 capital ratio at June 30 was 13.01 percent. Other ratios measured under the new regulatory capital rules were Tier 1 capital ratio, 13.01 percent, total capital ratio, 14.11 percent and leverage ratio, 9.75 percent. At March 31, 2015, the common equity Tier 1 capital ratio was 13.07 percent, the Tier 1 capital ratio was 13.07 percent, total capital ratio was 14.39 percent, and leverage ratio was 9.74 percent.


•	The company paid a regular quarterly cash dividend of $29 million or $0.42 per common share during the second quarter of 2015. On July 28, 2015, the board of directors approved a quarterly cash dividend of $0.42 per common share payable on or about August 28, 2015 to shareholders of record as of August 14, 2015.

Net Interest Revenue

Net interest revenue was $175.7 million for the second quarter of 2015, up $8.0 million over the first quarter of 2015.

Net interest margin was 2.61 percent for the second quarter of 2015, an increase of 6 basis points over the first quarter of 2015. The yield on average earning assets was 2.84 percent, an increase of 4 basis points over the prior quarter. The loan portfolio yield increased 6 basis points over the previous quarter to 3.65 percent, primarily due to $2.3 million of non-accrual interest recoveries during the quarter and increased loan fees. Competitive loan pricing and low interest rates continue to impact loan yields. The yield on the available for sale securities portfolio decreased 4 basis points to 1.94 percent. Excess cash flows continue to be reinvested in short-duration securities that are yielding near 2.00 percent. Funding costs were 0.35 percent, down 3 basis points compared to the prior quarter.

Average earning assets increased $383 million during the second quarter of 2015, primarily related to a $351 million increase in average loan portfolio balances. Residential mortgage loans held for sale, restricted equity securities and fair value option securities also increased over the prior quarter. These increases were partially offset by an $87 million decrease in interest-bearing cash and cash equivalent balances and a $38 million decrease in the average balance of the available for sale securities portfolio. Average deposit balances decreased $155 million compared to the first quarter of 2015. The average balance of borrowed funds increased $684 million. The average balance of subordinated debentures decreased $40 million as $122 million of fixed rate subordinated debt matured on June 1, 2015.

Fees and Commissions Revenue

Fees and commissions revenue totaled $172.5 million for the second quarter of 2015, an increase of $6.6 million over the first quarter of 2015, with growth in nearly all fee categories.

Brokerage and trading revenue totaled $36.0 million, an increase of $4.3 million over the prior quarter. Investment banking revenue increased $2.4 million over the prior quarter due primarily to growth in loan syndication and underwriting fees related to the timing and volume of transactions completed. Securities trading revenue increased $1.4 million. Customer hedging revenue increased $1.3 million. Retail brokerage fees were down $880 thousand.

Mortgage banking revenue totaled $36.8 million for the second quarter of 2015, a decrease of $2.5 million compared to the first quarter of 2015. Revenue from mortgage loan production decreased $2.9 million. While loan production activity increased over the previous quarter, margin compression reduced mortgage production revenue. Total mortgage loans originated during the second quarter increased $263 million or 17 percent over the previous quarter and outstanding mortgage loan commitments at June 30 increased $26 million or 3 percent over March 31. However, mortgage interest rates increased during the second quarter which reduced higher-margin refinance activity.

Transaction card revenues grew by $1.8 million to $32.8 million due to increased transaction volumes during the second quarter. Fiduciary and asset management revenue continued to grow, up $1.2 million to $32.7 million for the second quarter. Deposit service charges and fees increased $644 thousand to $22.3 million for the second quarter, primarily due to increased overdraft fees.

Operating Expense

Total operating expense was $227.1 million for the second quarter of 2015, an increase of $6.8 million over the first quarter of 2015.

Personnel costs increased by $4.1 million over the first quarter of 2015, primarily due to a $6.3 million increase in incentive compensation expense, partially offset by a $2.5 million decrease in employee benefit expense due to decreased employee health insurance costs and payroll taxes.

Non-personnel expense increased $2.7 million compared to the first quarter of 2015. Other expense increased $2.5 million primarily due to increased recruiting expense. Business promotion expense increased $2.0 million, offset by a $1.9 million decrease in mortgage banking expense.

Loans, Deposits and Capital

Loans

Outstanding loans were $15.1 billion at June 30, 2015, an increase of $440 million over the previous quarter. Commercial and commercial real estate balances both grew over the prior quarter, partially offset by a decrease in residential mortgage loan balances.

Outstanding commercial loan balances increased $385 million or 4 percent over March 31, 2015, growing in almost every sector of our commercial loan portfolio. Healthcare sector loans grew by $135 million. Service sector loans grew by $109 million over the prior quarter. Wholesale/retail sector loans increased $107 million. Energy loan balances were largely unchanged compared to March 31, 2015. Unfunded energy loan commitments decreased by $177 million during the second quarter to $2.6 billion. All other unfunded commercial loan commitments totaled $4.2 billion at June 30, 2015, an increase of $49 million over March 31, 2015.

Commercial real estate loans grew by $98 million or 3 percent over March 31, 2015. Loans secured by office buildings increased $49 million. Other commercial real estate loan balances increased $39 million. Retail sector loan balances increased $30 million. This growth was partially offset by a $39 million decrease in multifamily residential loans. Industrial and residential construction and land development loan balances also increased over March 31, 2015. Unfunded commercial real estate loan commitments totaled $813 million at June 30, 2015, an increase of $59 million over March 31, 2015.

Norm Bagwell, EVP-Regional Banks, stated, “We saw continued robust loan growth across our footprint and in substantially all of our end markets in the second quarter. The loan production environment and our pipelines remain strong, fueled by the diverse economies of the states in our footprint, as well as our continued efforts to grow our business with new and existing customers. Accordingly, we are forecasting mid- to high-single-digit loan growth for the second half of 2015, and expect double-digit loan growth for the full year.”

Stacy Kymes, EVP-Corporate Banking, added, “In late July we updated our quarterly energy portfolio stress test and we continue to believe our portfolio is well-positioned with high quality borrowers. Potential problem energy loans increased this quarter as part of the anticipated credit migration in this environment. We do not expect significant losses if the current downturn behaves like others we have experienced over the past 20 years. In addition, the most recent decline in oil prices may ultimately be a

positive for the industry’s long-term health as it will likely serve to suppress renewed drilling until prices stabilize at a new equilibrium.”

Deposits

Deposits totaled $21.1 billion at June 30, 2015, largely unchanged compared to March 31, 2015. Demand deposit balances increased $147 million, offset by a $208 million decrease in interest-bearing transaction deposits and a $27 million decrease in time deposits. Among the lines of business, Wealth Management deposits increased $127 million over March 31. Consumer Banking deposits decreased $159 million and Commercial Banking deposits decreased $139 million.

Capital

New regulatory capital rules were effective for BOK Financial on January 1, 2015 and established a 7 percent threshold for the common equity Tier 1 ratio. The Company's common equity Tier 1 capital ratio was 13.01 percent at June 30, 2015. In addition, the Company's Tier 1 capital ratio was 13.01 percent, total capital ratio was 14.11 percent and leverage ratio was 9.75 percent at June 30, 2015. At March 31, 2015, the Company's common equity Tier 1 capital ratio was 13.07 percent, Tier 1 capital ratio was 13.07 percent, total capital ratio was 14.39 percent, and leverage ratio was 9.74 percent.

In addition, the Company's tangible common equity ratio, a non-GAAP measure, was 9.72 percent at June 30, 2015 and 9.86 percent at March 31, 2015. The tangible common equity ratio is primarily based on total shareholders' equity which includes unrealized gains and losses on available for sale securities. The Company has elected to exclude unrealized gains and losses from available for sale securities from its calculation of Tier 1 capital for regulatory capital purposes, consistent with the treatment under the previous capital rules.

Credit Quality

Nonperforming assets totaled $209 million or 1.38 percent of outstanding loans and repossessed assets at June 30, 2015 compared to $207 million or 1.40 percent at March 31, 2015. Nonperforming assets that are not guaranteed by U.S. government agencies totaled $123 million or 0.82 percent of outstanding loans and repossessed assets (excluding those guaranteed by U.S. government agencies) at June 30, 2015 and $123 million or 0.85 percent at March 31, 2015, a decrease of $355 thousand.

Nonaccruing loans totaled $91 million or 0.60 percent of outstanding loans at June 30, 2015, compared to $81 million or 0.55 percent of outstanding loans at March 31, 2015. New nonaccruing loans identified in the second quarter totaled $20 million, offset by $5.0 million in payments received, $2.9 million in charge-offs and $1.4 million in foreclosures and repossessions. At June 30, 2015, nonaccruing commercial loans totaled $24 million or 0.25 percent of outstanding commercial loans, nonaccruing commercial real estate loans totaled $20 million or 0.66 percent of outstanding commercial real estate loans and nonaccruing residential mortgage loans totaled $46 million or 2.44 percent of outstanding residential mortgage loans.

Net loans charged off totaled $671 thousand for the second quarter of 2015, compared to net recoveries of $8.4 million for the first quarter of 2015. Gross charge-offs totaled $2.9 million for the second quarter, compared to $2.2 million for the previous quarter. Recoveries totaled $2.2 million for the second quarter of 2015 and $10.5 million for the first quarter of 2015.

After evaluating all credit factors, the Company recorded a $4.0 million provision for credit losses during the second quarter of 2015, primarily due to continued growth in the loan portfolio. The combined allowance for credit losses totaled $202 million or 1.34 percent of outstanding loans and 222 percent of nonaccruing loans at June 30, 2015. The allowance for loan losses was $201 million and the accrual for off-balance sheet credit losses was $882 thousand.

Real estate and other repossessed assets totaled $35 million at June 30, 2015, primarily consisting of $16 million of one-to-four family residential properties, $9.8 million of developed commercial real estate properties, $6.1 million of undeveloped land and $2.7 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 June 30, 2015, a decrease of $158 million over March 31, 2015. At June 30, 2015, the available for sale portfolio consisted primarily of $6.3 billion of residential mortgage-backed securities fully backed by U.S. government agencies and $2.4 billion of commercial mortgage-backed securities fully backed by U.S. government agencies.

At June 30, 2015 the available for sale securities portfolio had a net unrealized gain of $89 million compared to a net unrealized gain of $152 million at March 31, 2015 primarily due to changes in interest rates during the quarter. Net unrealized gains on residential mortgage-backed securities issued by U.S. government agencies at June 30, 2015 decreased $51 million during the second quarter to $79 million. Commercial mortgage-backed securities had a net unrealized loss of $4.1 million at June 30, 2015, compared to a net unrealized gain of $6.9 million at March 31, 2015.

In the second quarter of 2015, the Company recognized a $3.4 million net gain from the sale of $379 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. The Company recognized $4.3 million of net gains from sales of $335 million of available for sale securities in the first quarter of 2015.

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 fair value of mortgage servicing rights increased by $8.0 million, primarily due to an increase in mortgage interest rates during the second quarter of 2015, partially offset by increased mortgage servicing costs. The value of securities and interest rate derivative contracts held as an economic hedge decreased by $9.1 million during the quarter. The fair value of mortgage servicing rights, net of economic hedges, decreased $5.0 million in the first quarter of 2015, primarily due to changes in interest rates.

Conference Call and Webcast

The Company will hold a conference call at 9 a.m. central time on Wednesday, July 29, 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 # 10069201.

About BOK Financial Corporation

BOK Financial Corporation is a $31 billion regional financial services company based in Tulsa, Oklahoma. The Company's stock is publicly traded on NASDAQ under the Global Select market listings (symbol: BOKF). BOK Financial's holdings include BOKF, NA, BOSC, Inc. and The Milestone Group, Inc. BOKF, NA operates TransFund, Cavanal Hill Investment Management, 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 June 30, 2015 through the date its financial statements are filed with the Securities and Exchange Commission and will adjust amounts reported if necessary.

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

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

	June 30, 2015			March 31, 2015			June 30, 2014
ASSETS
Cash and due from banks	$	443,577		$	490,683		$	615,479
Interest-bearing cash and cash equivalents	2,119,072			2,119,987			732,395
Trading securities	158,209			118,044			101,097
Investment securities	625,664			634,587			649,937
Available for sale securities	9,000,117			9,158,175			9,699,146
Fair value option securities	436,324			434,077			185,674
Restricted equity securities	231,520			212,685			91,213
Residential mortgage loans held for sale	502,571			513,196			325,875
Loans:
Commercial	9,775,721			9,391,163			8,367,661
Commercial real estate	3,033,497			2,935,464			2,654,978
Residential mortgage	1,884,728			1,926,999			2,008,215
Consumer	430,190			430,510			396,004
Total loans	15,124,136			14,684,136			13,426,858
Allowance for loan losses	(201,087		)	(197,686		)	(190,690		)
Loans, net of allowance	14,923,049			14,486,450			13,236,168
Premises and equipment, net	284,238			279,075			280,286
Receivables	149,629			183,447			115,991
Goodwill	385,454			377,780			377,780
Intangible assets, net	46,061			33,286			36,576
Mortgage servicing rights	198,694			175,051			155,740
Real estate and other repossessed assets, net	35,499			45,551			100,111
Derivative contracts, net	630,435			462,386			357,680
Cash surrender value of bank-owned life insurance	298,606			296,192			289,231
Receivable on unsettled securities sales	8,693			9,598			14,025
Other assets	248,151			269,728			479,366
TOTAL ASSETS	$	30,725,563		$	30,299,978		$	27,843,770

LIABILITIES AND EQUITY
Deposits:
Demand	$	8,156,401		$	8,009,577		$	7,908,005
Interest-bearing transaction	9,899,777			10,108,202			9,698,404
Savings	379,172			383,790			349,629
Time	2,624,379			2,651,778			2,615,826
Total deposits	21,059,729			21,153,347			20,571,864
Funds purchased	64,677			66,320			705,573
Repurchase agreements	712,033			897,663			1,072,375
Other borrowings	4,332,162			3,727,050			1,231,662
Subordinated debentures	226,278			348,030			347,890
Accrued interest, taxes and expense	124,568			147,184			100,227
Due on unsettled securities purchases	37,571			25,935			124,537
Derivative contracts, net	620,277			419,351			297,851
Other liabilities	135,435			124,846			144,145
TOTAL LIABILITIES	27,312,730			26,909,726			24,596,124
Shareholders' equity:
Capital, surplus and retained earnings	3,323,840			3,266,858			3,163,101
Accumulated other comprehensive income	51,792			90,303			49,416
TOTAL SHAREHOLDERS' EQUITY	3,375,632			3,357,161			3,212,517
Non-controlling interests	37,201			33,091			35,129
TOTAL EQUITY	3,412,833			3,390,252			3,247,646
TOTAL LIABILITIES AND EQUITY	$	30,725,563		$	30,299,978		$	27,843,770

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

	Three Months Ended
	June 30, 2015			Mar. 31, 2015			Dec. 31, 2014			Sept. 30, 2014			June 30, 2014
ASSETS
Interest-bearing cash and cash equivalents	$	2,002,456		$	2,089,546		$	2,090,176		$	1,217,942		$	635,140
Trading securities	127,391			140,968			164,502			107,909			116,186
Investment securities	628,489			642,825			650,911			641,375			658,793
Available for sale securities	9,063,006			9,101,464			9,161,901			9,526,727			9,800,934
Fair value option securities	435,294			404,775			221,773			180,268			164,684
Restricted equity securities	221,911			179,385			182,737			142,418			97,016
Residential mortgage loans held for sale	464,269			348,054			321,746			310,924			219,308
Loans:
Commercial	9,634,306			9,308,307			8,886,952			8,468,575			8,266,455
Commercial real estate	2,989,615			2,909,565			2,665,547			2,691,318			2,622,866
Residential mortgage	1,857,464			1,909,998			1,904,777			1,955,769			1,983,926
Consumer	423,967			426,712			424,729			402,916			391,214
Total loans	14,905,352			14,554,582			13,882,005			13,518,578			13,264,461
Allowance for loan losses	(198,400		)	(194,948		)	(190,787		)	(191,141		)	(189,329		)
Total loans, net	14,706,952			14,359,634			13,691,218			13,327,437			13,075,132
Total earning assets	27,649,768			27,266,651			26,484,964			25,455,000			24,767,193
Cash and due from banks	492,737			513,734			528,595			493,200			481,944
Derivative contracts, net	475,687			447,565			352,565			288,682			291,325
Cash surrender value of bank-owned life insurance	297,022			294,803			292,411			290,044			287,725
Receivable on unsettled securities sales	94,374			99,706			69,109			63,277			108,825
Other assets	1,454,484			1,348,245			1,404,553			1,525,354			1,549,809
TOTAL ASSETS	$	30,464,072		$	29,970,704		$	29,132,197		$	28,115,557		$	27,486,821

LIABILITIES AND EQUITY
Deposits:
Demand	$	7,996,717		$	7,885,485		$	7,974,165		$	7,800,350		$	7,654,225
Interest-bearing transaction	10,063,589			10,338,396			9,730,564			9,473,575			9,850,991
Savings	381,833			365,835			346,132			342,488			355,459
Time	2,651,820			2,659,323			2,647,147			2,610,561			2,636,444
Total deposits	21,093,959			21,249,039			20,698,008			20,226,974			20,497,119
Funds purchased	63,312			69,730			71,728			320,817			574,926
Repurchase agreements	773,977			1,000,839			996,308			1,027,206			914,892
Other borrowings	4,001,479			3,084,214			3,021,094			2,333,961			1,294,932
Subordinated debentures	307,903			348,007			347,960			347,914			347,868
Derivative contracts, net	455,431			418,848			321,367			270,998			243,619
Due on unsettled securities purchases	151,369			205,096			137,566			124,952			166,521
Other liabilities	235,173			243,370			228,021			214,306			270,220
TOTAL LIABILITIES	27,082,603			26,619,143			25,822,052			24,867,128			24,310,097
Total equity	3,381,469			3,351,561			3,310,145			3,248,429			3,176,724
TOTAL LIABILITIES AND EQUITY	$	30,464,072		$	29,970,704		$	29,132,197		$	28,115,557		$	27,486,821

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

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2015			2014			2015			2014

Interest revenue	$	191,813		$	182,631		$	376,382		$	361,751
Interest expense	16,082			16,534			32,925			33,012
Net interest revenue	175,731			166,097			343,457			328,739
Provision for credit losses	4,000			—			4,000			—
Net interest revenue after provision for credit losses	171,731			166,097			339,457			328,739
Other operating revenue:
Brokerage and trading revenue	36,012			39,056			67,719			68,572
Transaction card revenue	32,778			31,510			63,788			60,644
Fiduciary and asset management revenue	32,712			29,543			64,181			55,265
Deposit service charges and fees	22,328			23,133			44,012			45,822
Mortgage banking revenue	36,846			29,330			76,166			52,174
Bank-owned life insurance	2,398			2,274			4,596			4,380
Other revenue	9,473			9,208			18,076			18,060
Total fees and commissions	172,547			164,054			338,538			304,917
Gain (loss) on other assets, net	1,457			3,521			2,212			1,193
Gain (loss) on derivatives, net	(1,032		)	831			(121		)	1,799
Gain (loss) on fair value option securities, net	(8,130		)	4,176			(5,483		)	6,836
Change in fair value of mortgage servicing rights	8,010			(6,444		)	(512		)	(10,905		)
Gain on available for sale securities, net	3,433			4			7,760			1,244
Total other-than-temporary impairment losses	—			—			(781		)	—
Portion of loss recognized in (reclassified from) other comprehensive income	—			—			689			—
Net impairment losses recognized in earnings	—			—			(92		)	—
Total other operating revenue	176,285			166,142			342,302			305,084
Other operating expense:
Personnel	132,695			123,714			261,243			228,147
Business promotion	7,765			7,150			13,513			12,991
Charitable contributions to BOKF Foundation	—			—			—			2,420
Professional fees and services	9,560			11,054			19,619			18,619
Net occupancy and equipment	18,927			18,789			37,971			35,685
Insurance	5,116			4,467			10,096			9,008
Data processing and communications	31,463			29,071			62,083			56,206
Printing, postage and supplies	3,553			3,429			7,014			6,970
Net losses and operating expenses of repossessed assets	223			1,118			836			2,550
Amortization of intangible assets	1,090			949			2,180			1,765
Mortgage banking costs	7,419			7,960			16,738			11,594
Other expense	9,302			7,006			16,085			13,856
Total other operating expense	227,113			214,707			447,378			399,811

Net income before taxes	120,903			117,532			234,381			234,012
Federal and state income taxes	40,630			40,803			79,014			80,240

Net income	80,273			76,729			155,367			153,772
Net income attributable to non-controlling interests	1,043			834			1,294			1,287
Net income attributable to BOK Financial Corporation shareholders	$	79,230		$	75,895		$	154,073		$	152,485

Average shares outstanding:
Basic	68,096,341			68,359,945			68,175,327			68,318,689
Diluted	68,210,353			68,511,378			68,277,386			68,475,802

Net income per share:
Basic	$	1.15		$	1.10		$	2.23		$	2.21
Diluted	$	1.15		$	1.10		$	2.23		$	2.20

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

	Three Months Ended
	June 30, 2015			Mar. 31, 2015			Dec. 31, 2014			Sept. 30, 2014			June 30, 2014
Capital:
Period-end shareholders' equity	$	3,375,632		$	3,357,161		$	3,302,179		$	3,243,093		$	3,212,517
Risk weighted assets	$	22,533,295		$	22,053,246		$	21,290,908		$	20,491,089		$	20,216,268
Risk-based capital ratios¹:
Common equity tier 1	13.01		%	13.07		%	N/A			N/A			N/A
Tier 1	13.01		%	13.07		%	13.33		%	13.72		%	13.63		%
Total capital	14.11		%	14.39		%	14.66		%	15.11		%	15.38		%
Leverage ratio	9.75		%	9.74		%	9.96		%	10.22		%	10.26		%
Tangible common equity ratio²	9.72		%	9.86		%	10.08		%	9.86		%	10.20		%

Common stock:
Book value per share	$	48.96		$	48.71		$	47.78		$	46.77		$	46.39
Market value per share:
High	$	71.66		$	61.78		$	68.69		$	69.56		$	70.66
Low	$	59.59		$	52.63		$	56.87		$	63.36		$	61.64
Cash dividends paid	$	28,841		$	28,952		$	29,114		$	27,705		$	27,706
Dividend payout ratio	36.40		%	38.68		%	45.27		%	36.63		%	36.51		%
Shares outstanding, net	68,945,139			68,922,314			69,113,736			69,344,082			69,256,958
Stock buy-back program:
Shares repurchased	—			502,156			200,000			—			—
Amount	$	—		$	29,484		$	12,337		$	—		$	—
Average price per share	$	—		$	58.71		$	61.68		$	—		$	—

Performance ratios (quarter annualized):
Return on average assets	1.04		%	1.01		%	0.88		%	1.07		%	1.11		%
Return on average equity	9.50		%	9.15		%	7.79		%	9.34		%	9.69		%
Net interest margin	2.61		%	2.55		%	2.61		%	2.67		%	2.75		%
Efficiency ratio	64.21		%	64.91		%	67.95		%	67.18		%	64.30		%

¹ March 31, 2015 risk-based capital ratios calculated under revised regulatory capital rules issued July 2013 and effective for the Company January 1, 2015. Previous risk-based capital ratios presented are calculated in accordance with then current regulatory capital rules.

Reconciliation of non-GAAP measures:
² Tangible common equity ratio:
Total shareholders' equity	$	3,375,632		$	3,357,161		$	3,302,179		$	3,243,093		$	3,212,517
Less: Goodwill and intangible assets, net	431,515			411,066			412,156			413,256			414,356
Tangible common equity	$	2,944,117		$	2,946,095		$	2,890,023		$	2,829,837		$	2,798,161

Total assets	$	30,725,563		$	30,299,978		$	29,089,698		$	29,105,020		$	27,843,770
Less: Goodwill and intangible assets, net	431,515			411,066			412,156			413,256			414,356
Tangible assets	$	30,294,048		$	29,888,912		$	28,677,542		$	28,691,764		$	27,429,414

Tangible common equity ratio	9.72		%	9.86		%	10.08		%	9.86		%	10.20		%

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

	Three Months Ended
	June 30, 2015			Mar. 31, 2015			Dec. 31, 2014			Sept. 30, 2014			June 30, 2014
Other data:
Fiduciary assets	$	38,772,018		$	37,511,746		$	35,997,877		$	34,020,442		$	32,716,648
Tax equivalent adjustment	$	3,035		$	2,956		$	2,859		$	2,739		$	2,803
Net unrealized gain on available for sale securities	$	89,158		$	152,107		$	96,955		$	42,935		$	85,480

Mortgage banking:
Mortgage servicing portfolio	$	17,979,623		$	16,937,128		$	16,162,887		$	15,499,653		$	14,626,291
Mortgage commitments	$	849,619		$	824,036		$	627,505		$	638,925		$	546,864
Mortgage loans funded for sale	$	1,828,230		$	1,565,016		$	1,264,269		$	1,394,211		$	1,090,629
Mortgage loan refinances to total fundings	40		%	56		%	37		%	26		%	25		%
Mortgage loans sold	$	1,861,968		$	1,382,042		$	1,350,529		$	1,369,295		$	1,008,993

Net realized gains on mortgage loans sold	$	23,856		$	17,251		$	17,671		$	17,100		$	12,745
Net unrealized gain (loss) on mortgage loans held for sale	(743		)	8,789			(482		)	(2,407		)	4,982
Total production revenue	23,113			26,040			17,189			14,693			17,727
Servicing revenue	13,733			13,280			12,916			12,121			11,603
Total mortgage banking revenue	$	36,846		$	39,320		$	30,105		$	26,814		$	29,330

Gain (loss) on mortgage servicing rights, net of economic hedge:
Gain (loss) on mortgage hedge derivative contracts, net	$	(1,005	)	$	911		$	1,070		$	(93	)	$	831
Gain (loss) on fair value option securities, net	(8,130		)	2,647			3,685			(341		)	4,074
Gain (loss) on economic hedge of mortgage servicing rights	(9,135		)	3,558			4,755			(434		)	4,905
Gain (loss) on changes in fair value of mortgage servicing rights	8,010			(8,522		)	(10,821		)	5,281			(6,444		)
Gain (loss) on changes in fair value of mortgage servicing rights, net of economic hedges	$	(1,125	)	$	(4,964	)	$	(6,066	)	$	4,847		$	(1,539	)

Net interest revenue on fair value option securities	$	1,985		$	1,739		$	912		$	830		$	721

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

	Three Months Ended
	June 30, 2015			Mar. 31, 2015			Dec. 31, 2014			Sept. 30, 2014			June 30, 2014

Interest revenue	$	191,813		$	184,569		$	186,620		$	183,868		$	182,631
Interest expense	16,082			16,843			16,956			17,077			16,534
Net interest revenue	175,731			167,726			169,664			166,791			166,097
Provision for credit losses	4,000			—			—			—			—
Net interest revenue after provision for credit losses	171,731			167,726			169,664			166,791			166,097
Other operating revenue:
Brokerage and trading revenue	36,012			31,707			30,602			35,263			39,056
Transaction card revenue	32,778			31,010			31,467			31,578			31,510
Fiduciary and asset management revenue	32,712			31,469			30,649			29,738			29,543
Deposit service charges and fees	22,328			21,684			22,581			22,508			23,133
Mortgage banking revenue	36,846			39,320			30,105			26,814			29,330
Bank-owned life insurance	2,398			2,198			2,380			2,326			2,274
Other revenue	9,473			8,603			10,071			10,320			9,208
Total fees and commissions	172,547			165,991			157,855			158,547			164,054
Gain (loss) on other assets, net	1,457			755			338			1,422			3,521
Gain (loss) on derivatives, net	(1,032		)	911			1,070			(93		)	831
Gain (loss) on fair value option securities, net	(8,130		)	2,647			3,685			(332		)	4,176
Change in fair value of mortgage servicing rights	8,010			(8,522		)	(10,821		)	5,281			(6,444		)
Gain on available for sale securities, net	3,433			4,327			149			146			4
Total other-than-temporary impairment losses	—			(781		)	(373		)	—			—
Portion of loss recognized in (reclassified from) other comprehensive income	—			689			—			—			—
Net impairment losses recognized in earnings	—			(92		)	(373		)	—			—
Total other operating revenue	176,285			166,017			151,903			164,971			166,142
Other operating expense:
Personnel	132,695			128,548			125,741			123,043			123,714
Business promotion	7,765			5,748			7,498			6,160			7,150
Charitable contributions to BOKF Foundation	—			—			1,847			—			—
Professional fees and services	9,560			10,059			11,058			14,763			11,054
Net occupancy and equipment	18,927			19,044			22,655			18,892			18,789
Insurance	5,116			4,980			4,777			4,793			4,467
Data processing and communications	31,463			30,620			30,872			29,971			29,071
Printing, postage and supplies	3,553			3,461			3,168			3,380			3,429
Net losses (gains) and operating expenses of repossessed assets	223			613			(1,497		)	4,966			1,118
Amortization of intangible assets	1,090			1,090			1,100			1,100			949
Mortgage banking costs	7,419			9,319			10,553			7,734			7,960
Other expense	9,302			6,783			8,105			7,032			7,006
Total other operating expense	227,113			220,265			225,877			221,834			214,707
Net income before taxes	120,903			113,478			95,690			109,928			117,532
Federal and state income taxes	40,630			38,384			30,109			33,802			40,803
Net income	80,273			75,094			65,581			76,126			76,729
Net income attributable to non-controlling interests	1,043			251			1,263			494			834
Net income attributable to BOK Financial Corporation shareholders	$	79,230		$	74,843		$	64,318		$	75,632		$	75,895

Average shares outstanding:
Basic	68,096,341			68,254,780			68,481,630			68,455,866			68,359,945
Diluted	68,210,353			68,344,886			68,615,808			68,609,765			68,511,378
Net income per share:
Basic	$	1.15		$	1.08		$	0.93		$	1.09		$	1.10

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

Diluted	$	1.15	$	1.08	$	0.93	$	1.09	$	1.10

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

	June 30, 2015		Mar. 31, 2015		Dec. 31, 2014		Sept. 30, 2014		June 30, 2014
Commercial:
Energy	$	2,902,143	$	2,902,994	$	2,860,428	$	2,551,699	$	2,419,788
Services	2,837,553		2,728,354		2,518,229		2,487,817		2,377,065
Wholesale/retail	1,377,303		1,270,322		1,313,316		1,273,241		1,318,151
Manufacturing	579,549		560,925		532,594		479,543		452,866
Healthcare	1,646,025		1,511,177		1,454,969		1,382,399		1,394,156
Other commercial and industrial	433,148		417,391		416,134		397,339		405,635
Total commercial	9,775,721		9,391,163		9,095,670		8,572,038		8,367,661

Commercial real estate:
Residential construction and land development	148,574		139,152		143,591		175,228		184,779
Retail	688,447		658,860		666,889		611,265		642,110
Office	563,085		513,862		415,544		438,909		394,217
Multifamily	711,333		749,986		704,298		739,757		677,403
Industrial	488,054		478,584		428,817		371,426		342,080
Other commercial real estate	434,004		395,020		369,011		387,614		414,389
Total commercial real estate	3,033,497		2,935,464		2,728,150		2,724,199		2,654,978

Residential mortgage:
Permanent mortgage	946,324		964,264		969,951		991,107		1,020,928
Permanent mortgages guaranteed by U.S. government agencies	190,839		200,179		205,950		198,488		188,087
Home equity	747,565		762,556		773,611		790,068		799,200
Total residential mortgage	1,884,728		1,926,999		1,949,512		1,979,663		2,008,215

Consumer	430,190		430,510		434,705		407,839		396,004

Total	$	15,124,136	$	14,684,136	$	14,208,037	$	13,683,739	$	13,426,858

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

	June 30, 2015		Mar. 31, 2015		Dec. 31, 2014		Sept. 30, 2014		June 30, 2014

Bank of Oklahoma:
Commercial	$	3,529,406	$	3,276,553	$	3,142,689	$	3,106,264	$	3,101,513
Commercial real estate	614,995		612,639		603,610		592,865		598,790
Residential mortgage	1,413,690		1,442,340		1,467,096		1,481,264		1,490,171
Consumer	190,909		205,496		206,115		193,207		187,914
Total Bank of Oklahoma	5,749,000		5,537,028		5,419,510		5,373,600		5,378,388

Bank of Texas:
Commercial	3,738,742		3,709,467		3,549,128		3,169,458		3,107,808
Commercial real estate	1,158,056		1,130,973		1,027,817		1,046,322		995,182
Residential mortgage	228,683		237,985		235,948		247,117		251,290
Consumer	156,260		149,827		154,363		148,965		147,322
Total Bank of Texas	5,281,741		5,228,252		4,967,256		4,611,862		4,501,602

Bank of Albuquerque:
Commercial	392,362		388,005		383,439		378,663		381,843
Commercial real estate	291,953		296,696		296,358		313,905		309,421
Residential mortgage	123,376		127,326		127,999		130,045		137,110
Consumer	11,939		12,095		10,899		11,714		12,346
Total Bank of Albuquerque	819,630		824,122		818,695		834,327		840,720

Bank of Arkansas:
Commercial	99,086		91,485		95,510		74,866		71,859
Commercial real estate	85,997		87,034		88,301		96,874		85,633
Residential mortgage	6,999		6,807		7,261		7,492		8,334
Consumer	5,189		5,114		5,169		5,508		6,323
Total Bank of Arkansas	197,271		190,440		196,241		184,740		172,149

Colorado State Bank & Trust:
Commercial	1,019,454		1,008,316		977,961		957,917		856,323
Commercial real estate	229,721		209,272		194,553		190,812		200,995
Residential mortgage	54,135		55,925		57,119		56,705		60,360
Consumer	30,373		27,792		27,918		24,812		23,330
Total Colorado State Bank & Trust	1,333,683		1,301,305		1,257,551		1,230,246		1,141,008

Bank of Arizona:
Commercial	572,477		519,767		547,524		500,208		446,814
Commercial real estate	472,061		432,269		355,140		316,698		292,799
Residential mortgage	37,493		36,161		35,872		39,256		41,059
Consumer	12,875		12,394		12,883		11,201		7,821
Total Bank of Arizona	1,094,906		1,000,591		951,419		867,363		788,493

Bank of Kansas City:
Commercial	424,194		397,570		399,419		384,662		401,501
Commercial real estate	180,714		166,581		162,371		166,723		172,158
Residential mortgage	20,352		20,455		18,217		17,784		19,891
Consumer	22,645		17,792		17,358		12,432		10,948
Total Bank of Kansas City	647,905		602,398		597,365		581,601		604,498

TOTAL BOK FINANCIAL	$	15,124,136	$	14,684,136	$	14,208,037	$	13,683,739	$	13,426,858

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)

	June 30, 2015		Mar. 31, 2015		Dec. 31, 2014		Sept. 30, 2014		June 30, 2014
Bank of Oklahoma:
Demand	$	4,068,088	$	3,982,534	$	3,828,819	$	3,915,560	$	3,785,922
Interest-bearing:
Transaction	6,018,381		6,199,468		6,117,886		5,450,692		5,997,474
Savings	225,694		227,855		206,357		201,690		210,330
Time	1,380,566		1,372,250		1,301,194		1,292,738		1,195,586
Total interest-bearing	7,624,641		7,799,573		7,625,437		6,945,120		7,403,390
Total Bank of Oklahoma	11,692,729		11,782,107		11,454,256		10,860,680		11,189,312

Bank of Texas:
Demand	2,565,234		2,511,032		2,639,732		2,636,713		2,617,194
Interest-bearing:
Transaction	2,020,817		2,062,063		2,065,723		2,020,737		1,957,236
Savings	74,373		76,128		72,037		66,798		67,012
Time	536,844		547,371		547,316		569,929		606,248
Total interest-bearing	2,632,034		2,685,562		2,685,076		2,657,464		2,630,496
Total Bank of Texas	5,197,268		5,196,594		5,324,808		5,294,177		5,247,690

Bank of Albuquerque:
Demand	508,224		537,466		487,819		480,023		515,554
Interest-bearing:
Transaction	537,156		535,791		519,544		502,787		489,378
Savings	41,802		42,088		37,471		36,127		36,442
Time	285,890		290,706		295,798		303,074		309,540
Total interest-bearing	864,848		868,585		852,813		841,988		835,360
Total Bank of Albuquerque	1,373,072		1,406,051		1,340,632		1,322,011		1,350,914

Bank of Arkansas:
Demand	19,731		31,002		35,996		35,075		44,471
Interest-bearing:
Transaction	284,349		253,691		158,115		234,063		205,216
Savings	1,712		1,677		1,936		2,222		2,287
Time	28,220		28,277		28,520		38,811		41,155
Total interest-bearing	314,281		283,645		188,571		275,096		248,658
Total Bank of Arkansas	334,012		314,647		224,567		310,171		293,129

Colorado State Bank & Trust:
Demand	403,491		412,532		445,755		422,044		396,185
Interest-bearing:
Transaction	601,741		604,665		631,874		571,807		566,320
Savings	31,285		31,524		29,811		29,768		29,234
Time	322,432		340,006		353,998		372,401		385,252
Total interest-bearing	955,458		976,195		1,015,683		973,976		980,806
Total Colorado State Bank & Trust	1,358,949		1,388,727		1,461,438		1,396,020		1,376,991

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

	June 30, 2015		Mar. 31, 2015		Dec. 31, 2014		Sept. 30, 2014		June 30, 2014
Bank of Arizona:
Demand	352,024		271,091		369,115		279,811		293,836
Interest-bearing:
Transaction	298,073		295,480		347,214		336,584		379,170
Savings	2,726		2,900		2,545		3,718		2,813
Time	28,165		28,086		36,680		38,842		37,666
Total interest-bearing	328,964		326,466		386,439		379,144		419,649
Total Bank of Arizona	680,988		597,557		755,554		658,955		713,485

Bank of Kansas City:
Demand	239,609		263,920		259,121		268,903		254,843
Interest-bearing:
Transaction	139,260		157,044		273,999		128,039		103,610
Savings	1,580		1,618		1,274		1,315		1,511
Time	42,262		45,082		45,210		48,785		40,379
Total interest-bearing	183,102		203,744		320,483		178,139		145,500
Total Bank of Kansas City	422,711		467,664		579,604		447,042		400,343

TOTAL BOK FINANCIAL	$	21,059,729	$	21,153,347	$	21,140,859	$	20,289,056	$	20,571,864

NET INTEREST MARGIN TREND -- UNAUDITED BOK FINANCIAL CORPORATION

	Three Months Ended
	June 30, 2015		Mar. 31, 2015		Dec. 31, 2014		Sept. 30, 2014		June 30, 2014

TAX-EQUIVALENT ASSETS YIELDS
Interest-bearing cash and cash equivalents	0.25	%	0.27	%	0.28	%	0.20	%	0.24	%
Trading securities	1.85	%	2.55	%	2.48	%	2.67	%	2.40	%
Investment securities:
Taxable	5.49	%	5.51	%	5.68	%	5.66	%	5.64	%
Tax-exempt	1.56	%	1.56	%	1.56	%	1.56	%	1.63	%
Total investment securities	3.05	%	3.04	%	3.11	%	3.03	%	3.01	%
Available for sale securities:
Taxable	1.92	%	1.95	%	1.97	%	1.94	%	1.94	%
Tax-exempt	4.21	%	4.40	%	4.23	%	3.14	%	4.44	%
Total available for sale securities	1.94	%	1.98	%	1.99	%	1.95	%	1.96	%
Fair value option securities	2.17	%	2.28	%	2.18	%	2.05	%	1.94	%
Restricted equity securities	5.82	%	5.79	%	5.77	%	5.99	%	5.26	%
Residential mortgage loans held for sale	3.37	%	3.41	%	3.87	%	3.79	%	4.63	%
Loans	3.65	%	3.59	%	3.73	%	3.78	%	3.85	%
Allowance for loan losses
Loans, net of allowance	3.70	%	3.64	%	3.78	%	3.83	%	3.91	%
Total tax-equivalent yield on earning assets	2.84	%	2.80	%	2.86	%	2.93	%	3.02	%

COST OF INTEREST-BEARING LIABILITIES
Interest-bearing deposits:
Interest-bearing transaction	0.09	%	0.10	%	0.09	%	0.10	%	0.10	%
Savings	0.11	%	0.10	%	0.11	%	0.12	%	0.12	%
Time	1.36	%	1.46	%	1.47	%	1.56	%	1.55	%
Total interest-bearing deposits	0.35	%	0.37	%	0.38	%	0.41	%	0.40	%
Funds purchased	0.08	%	0.09	%	0.08	%	0.07	%	0.07	%
Repurchase agreements	0.03	%	0.04	%	0.04	%	0.05	%	0.08	%
Other borrowings	0.31	%	0.32	%	0.32	%	0.34	%	0.40	%
Subordinated debt	2.21	%	2.52	%	2.50	%	2.46	%	2.52	%
Total cost of interest-bearing liabilities	0.35	%	0.38	%	0.39	%	0.41	%	0.42	%
Tax-equivalent net interest revenue spread	2.49	%	2.42	%	2.47	%	2.52	%	2.60	%
Effect of noninterest-bearing funding sources and other	0.12	%	0.13	%	0.14	%	0.15	%	0.15	%
Tax-equivalent net interest margin	2.61	%	2.55	%	2.61	%	2.67	%	2.75	%

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, 2015		Mar. 31, 2015		Dec. 31, 2014		Sept. 30, 2014		June 30, 2014
Nonperforming assets:
Nonaccruing loans:
Commercial	$	24,233	$	13,880	$	13,527	$	16,404	$	17,103
Commercial real estate	20,139		19,902		18,557		30,660		34,472
Residential mortgage	45,969		46,487		48,121		48,907		44,340
Consumer	550		464		566		580		765
Total nonaccruing loans	90,891		80,733		80,771		96,551		96,680
Accruing renegotiated loans guaranteed by U.S. government agencies	82,368		80,287		73,985		70,459		57,818
Real estate and other repossessed assets:
Guaranteed by U.S. government agencies²	—		—		49,898		46,809		49,720
Other	35,499		45,551		51,963		51,062		50,391
Total real estate and other repossessed assets	35,499		45,551		101,861		97,871		100,111
Total nonperforming assets	$	208,758	$	206,571	$	256,617	$	264,881	$	254,609
Total nonperforming assets excluding those guaranteed by U.S. government agencies	$	122,673	$	123,028	$	129,022	$	143,778	$	145,124

Nonaccruing loans by loan class:
Commercial:
Energy	$	6,841	$	1,875	$	1,416	$	1,508	$	1,619
Services	10,944		4,744		5,201		3,584		3,669
Wholesale / retail	4,166		4,401		4,149		5,502		5,885
Manufacturing	379		417		450		3,482		3,507
Healthcare	1,278		1,558		1,380		1,417		1,422
Other commercial and industrial	625		885		931		911		1,001
Total commercial	24,233		13,880		13,527		16,404		17,103
Commercial real estate:
Residential construction and land development	9,367		9,598		5,299		14,634		15,146
Retail	3,826		3,857		3,926		4,009		4,199
Office	2,360		2,410		3,420		3,499		3,591
Multifamily	195		—		—		—		—
Industrial	76		76		—		—		631
Other commercial real estate	4,315		3,961		5,912		8,518		10,905
Total commercial real estate	20,139		19,902		18,557		30,660		34,472
Residential mortgage:
Permanent mortgage	32,187		33,365		34,845		35,137		32,952
Permanent mortgage guaranteed by U.S. government agencies	3,717		3,256		3,712		3,835		1,947
Home equity	10,065		9,866		9,564		9,935		9,441
Total residential mortgage	45,969		46,487		48,121		48,907		44,340
Consumer	550		464		566		580		765
Total nonaccruing loans	$	90,891	$	80,733	$	80,771	$	96,551	$	96,680

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

	Three Months Ended
	June 30, 2015			Mar. 31, 2015			Dec. 31, 2014			Sept. 30, 2014			June 30, 2014

Performing loans 90 days past due¹	$	99		$	523		$	125		$	25		$	67

Gross charge-offs	$	(2,877	)	$	(2,169	)	$	(7,224	)	$	(2,638	)	$	(3,522	)
Recoveries	2,206			10,523			5,036			3,114			5,524
Net recoveries (charge-offs)	$	(671	)	$	8,354		$	(2,188	)	$	476		$	2,002

Provision for credit losses	$	4,000		$	—		$	—		$	—		$	—

Allowance for loan losses to period end loans	1.33		%	1.35		%	1.33		%	1.40		%	1.42		%
Combined allowance for credit losses to period end loans	1.34		%	1.35		%	1.34		%	1.41		%	1.43		%
Nonperforming assets to period end loans and repossessed assets	1.38		%	1.40		%	1.79		%	1.92		%	1.88		%
Net charge-offs (annualized) to average loans	0.02		%	(0.23		)%	0.06		%	(0.01		)%	(0.06		)%
Allowance for loan losses to nonaccruing loans	221.24		%	244.86		%	234.06		%	198.08		%	197.24		%
Combined allowance for credit losses to nonaccruing loans	222.21		%	246.05		%	235.59		%	199.35		%	198.59		%


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

Approximately $50 million was reclassified from Real estate and other repossessed assets to Receivables on the balance sheet on January 1, 2015 with the adoption of Financial Accounting Standards Board Update No. 2014-14, Classification of Certain Government-Guaranteed Mortgage Loans Upon Foreclosure ("ASU 2014-14"). Upon foreclosure of loans for which the loan balance is expected to be recovered from the guarantee by a U.S. government agency, the loan balance will be directly reclassified to other receivables without including such foreclosed assets in real estate and other repossessed assets.

BOK FINANCIAL CORP - FORM 8-K - EX-99 - EXHIBIT 99 - July 29, 2015

Attached files