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

Attached files

file	filename
8-K - 8-K - BOK FINANCIAL CORP	a20150930bokf8-k.htm

Exhibit 99 (a)

NASD: BOKF

For Further Information Contact:

Joseph Crivelli Andrea Myers

Investor Relations Corporate Communications

(918) 595-3027 (918) 588-7794

BOK Financial Reports Quarterly Earnings of $75 Million

Board of Directors Approves Increase in Quarterly Cash Dividend

and Authorizes Additional Share Buyback

TULSA, Okla. (Wednesday, October 28, 2015) - BOK Financial Corporation reported net income of $74.9 million or $1.09 per diluted share for the third quarter of 2015. Net income was $79.2 million or $1.15 per diluted share for the second quarter of 2015 and $75.6 million or $1.09 per diluted share for the third quarter of 2014.

Steven G. Bradshaw, president and chief executive officer, stated, “BOK Financial posted solid earnings in the third quarter despite lower revenue from certain fee-generating businesses. Annualized loan growth was in the mid-single digits as expected, credit quality across our loan portfolio remained strong, and we continue to carefully manage expenses. We deployed $109 million of excess capital through dividends and share buybacks while we work to identify quality acquisition targets. To that end, our board of directors has authorized a 2.4 percent increase in our quarterly dividend and a new 5 million share buyback authorization. During the third quarter, we repurchased 1.25 million shares in the open market at a weighted average price of $63.79.”

Highlights of third quarter of 2015 included:


•	Net interest revenue totaled $178.6 million for the third quarter of 2015, up $2.9 million over the second quarter of 2015. Net interest margin was 2.61 percent for the third quarter of 2015, unchanged compared to the second quarter of 2015. Average earning assets increased $203 million during the third quarter of 2015, primarily related to a $287 million increase in average loan balances.


•	Fees and commissions revenue totaled $164.7 million for the third quarter of 2015, a decrease of $7.9 million compared to the prior quarter. Brokerage and trading revenue decreased $4.4 million and mortgage banking revenue decreased $3.7 million.


•	Changes in the fair value of mortgage servicing rights, net of economic hedges, decreased pre-tax net income by $4.4 million in the third quarter of 2015 and $1.1 million in the second quarter of 2015.


•	Operating expense was $224.6 million for the third quarter, a decrease of $2.5 million compared to the previous quarter, primarily due to lower incentive compensation expense.


•	A $7.5 million provision for credit losses was recorded in the third quarter of 2015 compared to a $4.0 million provision in the second quarter of 2015. The additional provision was primarily due to credit migration and loan portfolio growth during the third quarter. Net loans charged off totaled $1.8 million in the third quarter of 2015, compared to $671 thousand in the previous quarter.

•

The combined allowance for credit losses totaled $208 million or 1.35 percent of outstanding loans at September 30, 2015 compared to $202 million or 1.34 percent of outstanding loans at June 30, 2015. The portion of the combined allowance attributed to the energy portfolio totaled 2.05 percent of outstanding energy loans at September 30, an increase from 1.74 percent of outstanding energy loans at June 30.


•	Nonperforming assets that are not guaranteed by U.S. government agencies totaled $119 million or 0.78 percent of outstanding loans and repossessed assets (excluding those guaranteed by U.S. government agencies) at September 30, 2015 and $123 million or 0.82 percent of outstanding loans and repossessed assets (excluding those guaranteed by U.S. government agencies) at June 30, 2015.


•	Average loans increased by $287 million over the previous quarter, primarily due to growth in commercial real estate loans. Commercial and personal loans also grew over the previous quarter. Period-end outstanding loan balances also increased $243 million to $15.4 billion at September 30, 2015.


•	Average deposits decreased $401 million compared to the previous quarter, primarily due to a decrease in interest-bearing transaction accounts and time deposits. Period-end deposits were $20.6 billion at September 30, 2015, a decrease of $440 million from June 30, 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 capital ratio. The common equity Tier 1 capital ratio at September 30 was 12.78 percent. Other ratios measured under the new regulatory capital rules were Tier 1 capital ratio, 12.78 percent, total capital ratio, 13.89 percent and leverage ratio, 9.55 percent. At June 30, 2015, the common equity Tier 1 capital ratio was 13.01 percent, the Tier 1 capital ratio was 13.01 percent, total capital ratio was 14.11 percent, and leverage ratio was 9.75 percent.


•	The company paid a regular quarterly cash dividend of $29 million or $0.42 per common share during the third quarter of 2015. On October 27, 2015, the board of directors approved an increase in the quarterly cash dividend to $0.43 per common share payable on or about November 27, 2015 to shareholders of record as of November 13, 2015.

•

The company repurchased 1,258,348 common shares at an average price of $63.79 per share during the third quarter of 2015, completing the existing board approval for share repurchases. No shares were repurchased during the second quarter of 2015. On October 27, 2015, the board of directors authorized the Company to purchase up to five million additional common shares, subject to market conditions, securities law and other regulatory compliance limitations.

Net Interest Revenue

Net interest revenue was $178.6 million for the third quarter of 2015, up $2.9 million over the second quarter of 2015.

Net interest margin was 2.61 percent for the third quarter of 2015, unchanged compared to the second quarter of 2015. The yield on average earning assets was 2.83 percent, a decrease of 1 basis point compared to the prior quarter. The loan portfolio yield decreased 11 basis points compared to the previous quarter to 3.54 percent. The second quarter of 2015 included a 6 basis point benefit from $2.3 million of nonaccrual interest recoveries. Competitive loan pricing and low interest rates continue to impact loan yields. The yield on the available for sale securities portfolio increased 7 basis points to 2.01 percent. Funding costs were 0.32 percent, down 3 basis points compared to the prior quarter.

Average earning assets increased $203 million during the third quarter of 2015, primarily related to a $287 million increase in average loan portfolio balances. Trading securities, interest-bearing cash and cash equivalents and restricted equity securities also increased over the prior quarter, partially offset by a decrease in the average balance of loans held for sale. The average balance of the available for sale securities portfolio decreased by $121 million during the quarter. Average deposit balances decreased $401 million compared to the second quarter of 2015. The average balance of borrowed funds increased $684 million. The average balance of subordinated debentures decreased $82 million related to the impact of $122 million of fixed rate subordinated debt that matured on June 1, 2015.

Fees and Commissions Revenue

Fees and commissions revenue totaled $164.7 million for the third quarter of 2015, a decrease of $7.9 million compared to the second quarter of 2015.

Brokerage and trading revenue totaled $31.6 million, a decrease of $4.4 million compared to the prior quarter. Investment banking revenue, including loan syndication and underwriting fees, decreased $2.5 million primarily due to the timing and volume of transactions completed. Customer hedging revenue decreased $2.4 million primarily due to programs provided to our mortgage banking customers. Securities trading revenue increased $303 thousand and retail brokerage fees were up $113 thousand.

Mortgage banking revenue totaled $33.2 million for the third quarter of 2015, a decrease of $3.7 million compared to the second quarter of 2015. Revenue from mortgage loan production decreased $4.4 million. Increased average mortgage interest rates reduced mortgage production volume. Total mortgage loans originated during the third quarter decreased $214 million or 12 percent compared to the previous quarter and outstanding mortgage loan commitments at September 30 decreased $107 million or 13 percent from June 30. In addition, mortgage production revenue decreased due to a shift toward lower-margin correspondent lending.

Deposit service charges and fees grew by $1.3 million to $23.6 million for the third quarter, primarily due to increased overdraft fees. Fiduciary and asset management revenue decreased $1.9 million to $30.8 million for the third quarter, primarily due to the seasonal timing of tax service fees which were recognized in the previous quarter and a decrease in the fair value of assets under management.

Operating Expense

Total operating expense was $224.6 million for the third quarter of 2015, a decrease of $2.5 million compared to the second quarter of 2015.

Personnel costs decreased by $3.6 million compared to the second quarter of 2015. Incentive compensation expense decreased $2.7 million and payroll tax expense decreased $1.6 million. Regular compensation expense increased $1.1 million.

Non-personnel expense increased $1.1 million compared to the second quarter of 2015. Non-personnel expense included a $2.6 million charge to settle litigation and a $796 thousand contribution to the BOKF Foundation. Additionally, mortgage banking expense increased $1.2 million and business promotion expense decreased $1.8 million.

Loans, Deposits and Capital

Loans

Outstanding loans were $15.4 billion at September 30, 2015, an increase of $243 million over the previous quarter, primarily due to growth in commercial real estate balances. Personal loan balances grew over the prior quarter, partially offset by a decrease in residential mortgage loan balances.

Outstanding commercial loan balances were largely unchanged compared to June 30, 2015. Healthcare sector loans grew by $96 million, other commercial and industrial loans increased $60 million and service sector loans increased by $25 million over the prior quarter. Wholesale/retail sector loans decreased $72 million. Energy loan balances decreased $64 million compared to June 30, 2015. Unfunded energy loan commitments increased by $147 million during the third quarter to $2.7 billion. All other unfunded commercial loan commitments totaled $4.1 billion at September 30, 2015, a decrease of $80 million compared to June 30, 2015.

Commercial real estate loans grew by $202 million or 7 percent over June 30, 2015. Retail sector loan balances increased $81 million and loans secured by industrial facilities grew by $76 million. Loans secured by office buildings increased $63 million and multifamily residential loans increased $47 million. This growth was partially offset by a $71 million decrease in other commercial real estate balances. Unfunded commercial real estate loan commitments totaled $941 million at September 30, 2015, an increase of $129 million over June 30, 2015.

Norm Bagwell, executive vice president, regional banks, stated, “Loan growth in the third quarter was in line with our expectations, as economic conditions and deal flow remained solid across the footprint. Arizona and Texas continued their recent strong growth track record while our Kansas City market also posted double-digit annualized loan growth for the second consecutive quarter.”

Stacy Kymes, executive vice president, corporate banking, added, “Energy loans outstanding were lower in the third quarter, in line with our expectations; however, healthcare and commercial real estate grew at a double digit rate. Credit quality remains strong, as nonaccrual loans and nonperforming assets were both down on a sequential basis. Also as expected, we are seeing some continued credit migration in our energy book. However, we continue to believe that we are appropriately reserved for losses in the portfolio.”

Deposits

Deposits totaled $20.6 billion at September 30, 2015, a decrease of $440 million compared to June 30, 2015. Demand deposit balances decreased $115 million, interest-bearing transaction deposits decreased $201 million and time deposits decreased $126 million. Among the lines of business, Wealth Management deposits decreased $203 million and Commercial Banking deposits decreased $156 million compared to June 30. Consumer Banking deposits increased $38 million.

Capital

New regulatory capital rules were effective for BOK Financial on January 1, 2015 and established a 7 percent threshold for the common equity Tier 1 ratio. The Company's common equity Tier 1 capital ratio was 12.78 percent at September 30, 2015. In addition, the Company's Tier 1 capital ratio was 12.78 percent, total capital ratio was 13.89 percent and leverage ratio was 9.55 percent at September 30, 2015. At June 30, 2015, the Company's common equity Tier 1 capital ratio was 13.01 percent, Tier 1 capital ratio was 13.01 percent, total capital ratio was 14.11 percent, and leverage ratio was 9.75 percent.

In addition, the Company's tangible common equity ratio, a non-GAAP measure, was 9.78 percent at September 30, 2015 and 9.72 percent at June 30, 2015. The tangible common equity ratio is primarily based on total shareholders' equity which includes unrealized gains and losses on available for sale securities. The Company has elected to exclude unrealized gains and losses from available for sale securities from its calculation of Tier 1 capital for regulatory capital purposes, consistent with the treatment under the previous capital rules.

Credit Quality

Nonperforming assets totaled $204 million or 1.33 percent of outstanding loans and repossessed assets at September 30, 2015 compared to $209 million or 1.38 percent at June 30, 2015. Nonperforming assets that are not guaranteed by U.S. government agencies totaled $119 million or 0.78 percent of outstanding loans and repossessed assets (excluding those guaranteed by U.S. government agencies) at September 30, 2015 and $123 million or 0.82 percent at June 30, 2015, a decrease of $4.1 million.

Nonaccruing loans totaled $89 million or 0.58 percent of outstanding loans at September 30, 2015, compared to $91 million or 0.60 percent of outstanding loans at June 30, 2015. An $11 million increase in nonaccruing energy loans was largely offset by a $9.2 million decrease in nonaccruing commercial real estate loans. Overall, new nonaccruing loans identified in the third quarter totaled $23 million, offset by $12 million in payments received, $6.4 million in foreclosures and repossessions and $5.3 million in charge-offs. At September 30, 2015, nonaccruing commercial loans totaled $34 million or 0.34 percent of outstanding commercial loans, nonaccruing commercial real estate loans totaled $11 million or 0.34 percent of outstanding commercial real estate loans and nonaccruing residential mortgage loans totaled $44 million or 2.36 percent of outstanding residential mortgage loans.

Potential problem loans, which are defined as performing loans that based on known information cause management concern as to the borrowers' ability to continue to perform, decreased to $120 million at September 30 from $181 million at June 30. The decrease largely resulted from $64 million of payments received during the third quarter. Potential problem energy loans decreased to $96 million from $124 million.

Net loans charged off totaled $1.8 million for the third quarter of 2015, compared to $671 thousand for the second quarter of 2015. Gross charge-offs totaled $5.3 million for the third quarter, compared to $2.9 million for the previous quarter. Recoveries totaled $3.5 million for the third quarter of 2015 and $2.2 million for the second quarter of 2015.

After evaluating all credit factors, the Company recorded a $7.5 million provision for credit losses during the third quarter of 2015, primarily due to credit migration in the energy portfolio and loan portfolio growth. The Company recorded a $4.0 million provision for credit losses in the previous quarter.

The combined allowance for credit losses totaled $208 million or 1.35 percent of outstanding loans and 232 percent of nonaccruing loans at September 30, 2015. The allowance for loan losses was $204 million and the accrual for off-balance sheet credit losses was $3.6 million. The portion of the combined allowance attributed to the energy portfolio totaled 2.05 percent of outstanding energy loans at September 30, an increase from 1.74 percent of outstanding energy loans at June 30.

Real estate and other repossessed assets totaled $33 million at September 30, 2015, primarily consisting of $16 million of one-to-four family residential properties and $11 million of developed commercial real estate properties.

Securities and Derivatives

The fair value of the available for sale securities portfolio totaled $8.8 billion at September 30, 2015, a decrease of $199 million compared to June 30, 2015. At September 30, 2015, the available for sale portfolio consisted primarily of $5.8 billion of residential mortgage-backed securities fully backed by U.S. government agencies and $2.7 billion of commercial mortgage-backed securities fully backed by U.S. government agencies.

At September 30, 2015 the available for sale securities portfolio had a net unrealized gain of $145 million compared to a net unrealized gain of $89 million at June 30, 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 September 30, 2015 increased $26 million during the third quarter to $105 million. Commercial mortgage-backed securities had a net unrealized gain of $27 million at September 30, 2015, compared to a net unrealized loss of $4.1 million at June 30, 2015.

In the third quarter of 2015, the Company recognized a $2.2 million net gain from the sale of $451 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 the current rate environment. The Company recognized $3.4 million of net gains from sales of $379 million of available for sale securities in the second 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 decreased by $11.8 million during the third quarter of 2015, primarily due to a decrease in the short-term escrow earnings rates and a decrease in the period-end 30 year mortgage interest rates at September 30 compared to June 30. The value of securities and interest rate derivative contracts held as an economic hedge increased by $7.4 million during the quarter. The fair value of mortgage servicing rights, net of economic hedges, decreased $1.1 million in the second quarter of 2015, primarily due to changes in interest rates partially offset by increased mortgage servicing costs.

Conference Call and Webcast

The Company will hold a conference call at 9 a.m. central time on Wednesday, October 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 # 10074072.

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 September 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)

	Sept. 30, 2015			June 30, 2015			Sept. 30, 2014
ASSETS
Cash and due from banks	$	489,268		$	443,577		$	557,658
Interest-bearing cash and cash equivalents	1,830,105			2,119,072			2,007,901
Trading securities	181,131			158,209			169,712
Investment securities	612,384			625,664			655,091
Available for sale securities	8,801,089			9,000,117			9,306,886
Fair value option securities	427,760			436,324			175,761
Restricted equity securities	263,587			231,520			189,587
Residential mortgage loans held for sale	357,414			502,571			373,253
Loans:
Commercial	9,797,422			9,775,721			8,572,038
Commercial real estate	3,235,067			3,033,497			2,724,199
Residential mortgage	1,868,995			1,884,728			1,979,663
Personal	465,957			430,190			407,839
Total loans	15,367,441			15,124,136			13,683,739
Allowance for loan losses	(204,116		)	(201,087		)	(191,244		)
Loans, net of allowance	15,163,325			14,923,049			13,492,495
Premises and equipment, net	294,669			284,238			275,718
Receivables	151,451			149,629			114,374
Goodwill	385,461			385,454			377,780
Intangible assets, net	44,999			46,061			35,476
Mortgage servicing rights	200,049			198,694			173,286
Real estate and other repossessed assets, net	33,116			35,499			97,871
Derivative contracts, net	726,159			630,435			360,809
Cash surrender value of bank-owned life insurance	300,981			298,606			291,583
Receivable on unsettled securities sales	30,009			8,693			94,881
Other assets	273,948			248,151			354,898
TOTAL ASSETS	$	30,566,905		$	30,725,563		$	29,105,020

LIABILITIES AND EQUITY
Deposits:
Demand	$	8,041,767		$	8,156,401		$	8,038,129
Interest-bearing transaction	9,698,849			9,899,777			9,244,709
Savings	380,296			379,172			341,638
Time	2,498,531			2,624,379			2,664,580
Total deposits	20,619,443			21,059,729			20,289,056
Funds purchased	62,297			64,677			85,135
Repurchase agreements	555,677			712,033			1,026,009
Other borrowings	4,635,150			4,332,162			3,484,487
Subordinated debentures	226,314			226,278			347,936
Accrued interest, taxes and expense	158,048			124,568			100,664
Due on unsettled securities purchases	98,351			37,571			8,126
Derivative contracts, net	636,115			620,277			348,687
Other liabilities	159,348			135,435			137,608
TOTAL LIABILITIES	27,150,743			27,312,730			25,827,708
Shareholders' equity:
Capital, surplus and retained earnings	3,291,450			3,323,840			3,219,798
Accumulated other comprehensive income	85,776			51,792			23,295
TOTAL SHAREHOLDERS' EQUITY	3,377,226			3,375,632			3,243,093
Non-controlling interests	38,936			37,201			34,219
TOTAL EQUITY	3,416,162			3,412,833			3,277,312
TOTAL LIABILITIES AND EQUITY	$	30,566,905		$	30,725,563		$	29,105,020

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

	Three Months Ended
	Sept. 30, 2015			June 30, 2015			March 31, 2015			Dec. 31, 2014			Sept. 30, 2014
ASSETS
Interest-bearing cash and cash equivalents	$	2,038,611		$	2,002,456		$	2,089,546		$	2,090,176		$	1,217,942
Trading securities	179,098			127,391			140,968			164,502			107,909
Investment securities	616,091			628,489			642,825			650,911			641,375
Available for sale securities	8,942,261			9,063,006			9,101,464			9,161,901			9,526,727
Fair value option securities	429,951			435,294			404,775			221,773			180,268
Restricted equity securities	255,610			221,911			179,385			182,737			142,418
Residential mortgage loans held for sale	401,359			464,269			348,054			321,746			310,924
Loans:
Commercial	9,685,768			9,634,306			9,308,307			8,886,952			8,468,575
Commercial real estate	3,198,200			2,989,615			2,909,565			2,665,547			2,691,318
Residential mortgage	1,847,696			1,857,464			1,909,998			1,904,777			1,955,769
Personal	460,647			423,967			426,712			424,729			402,916
Total loans	15,192,311			14,905,352			14,554,582			13,882,005			13,518,578
Allowance for loan losses	(202,829		)	(198,400		)	(194,948		)	(190,787		)	(191,141		)
Total loans, net	14,989,482			14,706,952			14,359,634			13,691,218			13,327,437
Total earning assets	27,852,463			27,649,768			27,266,651			26,484,964			25,455,000
Cash and due from banks	487,283			492,737			513,734			528,595			493,200
Derivative contracts, net	669,264			475,687			447,565			352,565			288,682
Cash surrender value of bank-owned life insurance	299,424			297,022			294,803			292,411			290,044
Receivable on unsettled securities sales	64,591			94,374			99,706			69,109			63,277
Other assets	1,396,708			1,454,484			1,348,245			1,404,553			1,525,354
TOTAL ASSETS	$	30,769,733		$	30,464,072		$	29,970,704		$	29,132,197		$	28,115,557

LIABILITIES AND EQUITY
Deposits:
Demand	$	7,994,607		$	7,996,717		$	7,885,485		$	7,974,165		$	7,800,350
Interest-bearing transaction	9,760,839			10,063,589			10,338,396			9,730,564			9,473,575
Savings	379,828			381,833			365,835			346,132			342,488
Time	2,557,874			2,651,820			2,659,323			2,647,147			2,610,561
Total deposits	20,693,148			21,093,959			21,249,039			20,698,008			20,226,974
Funds purchased	70,281			63,312			69,730			71,728			320,817
Repurchase agreements	672,085			773,977			1,000,839			996,308			1,027,206
Other borrowings	4,779,981			4,001,479			3,084,214			3,021,094			2,333,961
Subordinated debentures	226,296			307,903			348,007			347,960			347,914
Derivative contracts, net	597,908			455,431			418,848			321,367			270,998
Due on unsettled securities purchases	90,135			151,369			205,096			137,566			124,952
Other liabilities	240,704			235,173			243,370			228,021			214,306
TOTAL LIABILITIES	27,370,538			27,082,603			26,619,143			25,822,052			24,867,128
Total equity	3,399,195			3,381,469			3,351,561			3,310,145			3,248,429
TOTAL LIABILITIES AND EQUITY	$	30,769,733		$	30,464,072		$	29,970,704		$	29,132,197		$	28,115,557

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

	Three Months Ended						Nine Months Ended
	Sept. 30,						Sept. 30,
	2015			2014			2015			2014

Interest revenue	$	193,664		$	183,868		$	570,046		$	545,619
Interest expense	15,028			17,077			47,953			50,089
Net interest revenue	178,636			166,791			522,093			495,530
Provision for credit losses	7,500			—			11,500			—
Net interest revenue after provision for credit losses	171,136			166,791			510,593			495,530
Other operating revenue:
Brokerage and trading revenue	31,582			35,263			99,301			103,835
Transaction card revenue	32,514			31,578			96,302			92,222
Fiduciary and asset management revenue	30,807			29,738			94,988			85,003
Deposit service charges and fees	23,606			22,508			67,618			68,330
Mortgage banking revenue	33,170			26,814			109,336			78,988
Bank-owned life insurance	2,360			2,326			6,956			6,706
Other revenue	10,618			10,320			28,694			28,380
Total fees and commissions	164,657			158,547			503,195			463,464
Gain on other assets, net	1,161			1,422			3,373			2,615
Gain (loss) on derivatives, net	1,283			(93		)	1,162			1,706
Gain (loss) on fair value option securities, net	5,926			(332		)	443			6,504
Change in fair value of mortgage servicing rights	(11,757		)	5,281			(12,269		)	(5,624		)
Gain on available for sale securities, net	2,166			146			9,926			1,390
Total other-than-temporary impairment losses	—			—			(781		)	—
Portion of loss recognized in other comprehensive income	—			—			689			—
Net impairment losses recognized in earnings	—			—			(92		)	—
Total other operating revenue	163,436			164,971			505,738			470,055
Other operating expense:
Personnel	129,062			123,043			390,305			351,190
Business promotion	5,922			6,160			19,435			19,151
Charitable contributions to BOKF Foundation	796			—			796			2,420
Professional fees and services	10,147			14,763			29,766			33,382
Net occupancy and equipment	18,689			18,892			56,660			54,577
Insurance	4,864			4,793			14,960			13,801
Data processing and communications	31,228			29,971			93,311			86,177
Printing, postage and supplies	3,376			3,380			10,390			10,350
Net losses and operating expenses of repossessed assets	267			4,966			1,103			7,516
Amortization of intangible assets	1,089			1,100			3,269			2,865
Mortgage banking costs	8,587			7,734			25,325			19,328
Other expense	10,601			7,032			26,686			20,888
Total other operating expense	224,628			221,834			672,006			621,645

Net income before taxes	109,944			109,928			344,325			343,940
Federal and state income taxes	34,128			33,802			113,142			114,042

Net income	75,816			76,126			231,183			229,898
Net income attributable to non-controlling interests	925			494			2,219			1,781
Net income attributable to BOK Financial Corporation shareholders	$	74,891		$	75,632		$	228,964		$	228,117

Average shares outstanding:
Basic	67,668,076			68,455,866			68,004,508			68,364,549
Diluted	67,762,483			68,609,765			68,104,017			68,520,591

Net income per share:
Basic	$	1.09		$	1.09		$	3.33		$	3.30
Diluted	$	1.09		$	1.09		$	3.32		$	3.29

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

	Three Months Ended
	Sept. 30, 2015			June 30, 2015			March 31, 2015			Dec. 31, 2014			Sept. 30, 2014
Capital:
Period-end shareholders' equity	$	3,377,226		$	3,375,632		$	3,357,161		$	3,302,179		$	3,243,093
Risk weighted assets	$	22,706,537		$	22,533,295		$	22,053,246		$	21,290,908		$	20,491,089
Risk-based capital ratios¹:
Common equity tier 1	12.78		%	13.01		%	13.07		%	N/A			N/A
Tier 1	12.78		%	13.01		%	13.07		%	13.33		%	13.72		%
Total capital	13.89		%	14.11		%	14.39		%	14.66		%	15.11		%
Leverage ratio	9.55		%	9.75		%	9.74		%	9.96		%	10.22		%
Tangible common equity ratio²	9.78		%	9.72		%	9.86		%	10.08		%	9.86		%

Common stock:
Book value per share	$	49.88		$	48.96		$	48.71		$	47.78		$	46.77
Market value per share:
High	$	70.26		$	71.66		$	61.78		$	68.69		$	69.56
Low	$	57.04		$	59.59		$	52.63		$	56.87		$	63.36
Cash dividends paid	$	28,766		$	28,841		$	28,952		$	29,114		$	27,705
Dividend payout ratio	38.41		%	36.40		%	38.68		%	45.27		%	36.63		%
Shares outstanding, net	67,713,031			68,945,139			68,922,314			69,113,736			69,344,082
Stock buy-back program:
Shares repurchased	1,258,348			—			502,156			200,000			—
Amount	$	80,276		$	—		$	29,484		$	12,337		$	—
Average price per share	$	63.79		$	—		$	58.71		$	61.68		$	—

Performance ratios (quarter annualized):
Return on average assets	0.97		%	1.04		%	1.01		%	0.88		%	1.07		%
Return on average equity	8.84		%	9.50		%	9.15		%	7.79		%	9.34		%
Net interest margin	2.61		%	2.61		%	2.55		%	2.61		%	2.67		%
Efficiency ratio	64.34		%	64.21		%	64.91		%	67.95		%	67.18		%

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

Reconciliation of non-GAAP measures:
² Tangible common equity ratio:
Total shareholders' equity	$	3,377,226		$	3,375,632		$	3,357,161		$	3,302,179		$	3,243,093
Less: Goodwill and intangible assets, net	430,460			431,515			411,066			412,156			413,256
Tangible common equity	$	2,946,766		$	2,944,117		$	2,946,095		$	2,890,023		$	2,829,837

Total assets	$	30,566,905		$	30,725,563		$	30,299,978		$	29,089,698		$	29,105,020
Less: Goodwill and intangible assets, net	430,460			431,515			411,066			412,156			413,256
Tangible assets	$	30,136,445		$	30,294,048		$	29,888,912		$	28,677,542		$	28,691,764

Tangible common equity ratio	9.78		%	9.72		%	9.86		%	10.08		%	9.86		%

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

	Three Months Ended
	Sept. 30, 2015			June 30, 2015			March 31, 2015			Dec. 31, 2014			Sept. 30, 2014
Other data:
Fiduciary assets	$	37,780,669		$	38,772,018		$	37,511,746		$	35,997,877		$	34,020,442
Tax equivalent adjustment	$	3,244		$	3,035		$	2,956		$	2,859		$	2,739
Net unrealized gain on available for sale securities	$	144,884		$	89,158		$	152,107		$	96,955		$	42,935

Mortgage banking:
Mortgage servicing portfolio	$	18,928,726		$	17,979,623		$	16,937,128		$	16,162,887		$	15,499,653
Mortgage commitments	$	742,742		$	849,619		$	824,036		$	627,505		$	638,925
Mortgage loans funded for sale	$	1,614,225		$	1,828,230		$	1,565,016		$	1,264,269		$	1,394,211
Mortgage loan refinances to total fundings	30		%	40		%	56		%	37		%	26		%
Mortgage loans sold	$	1,778,099		$	1,861,968		$	1,382,042		$	1,350,529		$	1,369,295

Net realized gains on mortgage loans sold	$	18,968		$	23,856		$	17,251		$	17,671		$	17,100
Change in net unrealized gain on mortgage loans held for sale	(251		)	(743		)	8,789			(482		)	(2,407		)
Total production revenue	18,717			23,113			26,040			17,189			14,693
Servicing revenue	14,453			13,733			13,280			12,916			12,121
Total mortgage banking revenue	$	33,170		$	36,846		$	39,320		$	30,105		$	26,814

Gain (loss) on mortgage servicing rights, net of economic hedge:
Gain (loss) on mortgage hedge derivative contracts, net	$	1,460		$	(1,005	)	$	911		$	1,070		$	(93	)
Gain (loss) on fair value option securities, net	5,926			(8,130		)	2,647			3,685			(341		)
Gain (loss) on economic hedge of mortgage servicing rights	7,386			(9,135		)	3,558			4,755			(434		)
Gain (loss) on changes in fair value of mortgage servicing rights	(11,757		)	8,010			(8,522		)	(10,821		)	5,281
Gain (loss) on changes in fair value of mortgage servicing rights, net of economic hedges	$	(4,371	)	$	(1,125	)	$	(4,964	)	$	(6,066	)	$	4,847

Net interest revenue on fair value option securities	$	2,140		$	1,985		$	1,739		$	912		$	830

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

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

Interest revenue	$	193,664		$	191,813		$	184,569		$	186,620		$	183,868
Interest expense	15,028			16,082			16,843			16,956			17,077
Net interest revenue	178,636			175,731			167,726			169,664			166,791
Provision for credit losses	7,500			4,000			—			—			—
Net interest revenue after provision for credit losses	171,136			171,731			167,726			169,664			166,791
Other operating revenue:
Brokerage and trading revenue	31,582			36,012			31,707			30,602			35,263
Transaction card revenue	32,514			32,778			31,010			31,467			31,578
Fiduciary and asset management revenue	30,807			32,712			31,469			30,649			29,738
Deposit service charges and fees	23,606			22,328			21,684			22,581			22,508
Mortgage banking revenue	33,170			36,846			39,320			30,105			26,814
Bank-owned life insurance	2,360			2,398			2,198			2,380			2,326
Other revenue	10,618			9,473			8,603			10,071			10,320
Total fees and commissions	164,657			172,547			165,991			157,855			158,547
Gain on other assets, net	1,161			1,457			755			338			1,422
Gain (loss) on derivatives, net	1,283			(1,032		)	911			1,070			(93		)
Gain (loss) on fair value option securities, net	5,926			(8,130		)	2,647			3,685			(332		)
Change in fair value of mortgage servicing rights	(11,757		)	8,010			(8,522		)	(10,821		)	5,281
Gain on available for sale securities, net	2,166			3,433			4,327			149			146
Total other-than-temporary impairment losses	—			—			(781		)	(373		)	—
Portion of loss recognized in other comprehensive income	—			—			689			—			—
Net impairment losses recognized in earnings	—			—			(92		)	(373		)	—
Total other operating revenue	163,436			176,285			166,017			151,903			164,971
Other operating expense:
Personnel	129,062			132,695			128,548			125,741			123,043
Business promotion	5,922			7,765			5,748			7,498			6,160
Charitable contributions to BOKF Foundation	796			—			—			1,847			—
Professional fees and services	10,147			9,560			10,059			11,058			14,763
Net occupancy and equipment	18,689			18,927			19,044			22,655			18,892
Insurance	4,864			5,116			4,980			4,777			4,793
Data processing and communications	31,228			31,463			30,620			30,872			29,971
Printing, postage and supplies	3,376			3,553			3,461			3,168			3,380
Net losses (gains) and operating expenses of repossessed assets	267			223			613			(1,497		)	4,966
Amortization of intangible assets	1,089			1,090			1,090			1,100			1,100
Mortgage banking costs	8,587			7,419			9,319			10,553			7,734
Other expense	10,601			9,302			6,783			8,105			7,032
Total other operating expense	224,628			227,113			220,265			225,877			221,834
Net income before taxes	109,944			120,903			113,478			95,690			109,928
Federal and state income taxes	34,128			40,630			38,384			30,109			33,802
Net income	75,816			80,273			75,094			65,581			76,126
Net income attributable to non-controlling interests	925			1,043			251			1,263			494
Net income attributable to BOK Financial Corporation shareholders	$	74,891		$	79,230		$	74,843		$	64,318		$	75,632

Average shares outstanding:
Basic	67,668,076			68,096,341			68,254,780			68,481,630			68,455,866
Diluted	67,762,483			68,210,353			68,344,886			68,615,808			68,609,765
Net income per share:
Basic	$	1.09		$	1.15		$	1.08		$	0.93		$	1.09
Diluted	$	1.09		$	1.15		$	1.08		$	0.93		$	1.09

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

	Sept. 30, 2015		June 30, 2015		March 31, 2015		Dec. 31, 2014		Sept. 30, 2014
Commercial:
Energy	$	2,838,167	$	2,902,143	$	2,902,994	$	2,860,428	$	2,551,699
Services	2,706,624		2,681,126		2,592,876		2,391,530		2,339,951
Wholesale/retail	1,461,936		1,533,730		1,405,800		1,440,015		1,421,107
Manufacturing	555,677		579,549		560,925		532,594		479,543
Healthcare	1,741,680		1,646,025		1,511,177		1,454,969		1,382,399
Other commercial and industrial	493,338		433,148		417,391		416,134		397,339
Total commercial	9,797,422		9,775,721		9,391,163		9,095,670		8,572,038

Commercial real estate:
Residential construction and land development	153,510		148,574		139,152		143,591		175,228
Retail	769,449		688,447		658,860		666,889		611,265
Office	626,151		563,085		513,862		415,544		438,909
Multifamily	758,658		711,333		749,986		704,298		739,757
Industrial	563,871		488,054		478,584		428,817		371,426
Other commercial real estate	363,428		434,004		395,020		369,011		387,614
Total commercial real estate	3,235,067		3,033,497		2,935,464		2,728,150		2,724,199

Residential mortgage:
Permanent mortgage	937,664		946,324		964,264		969,951		991,107
Permanent mortgages guaranteed by U.S. government agencies	192,712		190,839		200,179		205,950		198,488
Home equity	738,619		747,565		762,556		773,611		790,068
Total residential mortgage	1,868,995		1,884,728		1,926,999		1,949,512		1,979,663

Personal	465,957		430,190		430,510		434,705		407,839

Total	$	15,367,441	$	15,124,136	$	14,684,136	$	14,208,037	$	13,683,739

Certain commercial loans previously classified as Services in the prior periods have been reclassified to Wholesale / Retail to conform with current classification guidelines.

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

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

Bank of Oklahoma:
Commercial	$	3,514,391	$	3,529,406	$	3,276,553	$	3,142,689	$	3,106,264
Commercial real estate	677,372		614,995		612,639		603,610		592,865
Residential mortgage	1,405,235		1,413,690		1,442,340		1,467,096		1,481,264
Personal	185,463		190,909		205,496		206,115		193,207
Total Bank of Oklahoma	5,782,461		5,749,000		5,537,028		5,419,510		5,373,600

Bank of Texas:
Commercial	3,752,193		3,738,742		3,709,467		3,549,128		3,169,458
Commercial real estate	1,257,741		1,158,056		1,130,973		1,027,817		1,046,322
Residential mortgage	222,395		228,683		237,985		235,948		247,117
Personal	194,051		156,260		149,827		154,363		148,965
Total Bank of Texas	5,426,380		5,281,741		5,228,252		4,967,256		4,611,862

Bank of Albuquerque:
Commercial	368,027		392,362		388,005		383,439		378,663
Commercial real estate	312,953		291,953		296,696		296,358		313,905
Residential mortgage	121,232		123,376		127,326		127,999		130,045
Personal	10,477		11,939		12,095		10,899		11,714
Total Bank of Albuquerque	812,689		819,630		824,122		818,695		834,327

Bank of Arkansas:
Commercial	76,044		99,086		91,485		95,510		74,866
Commercial real estate	82,225		85,997		87,034		88,301		96,874
Residential mortgage	8,063		6,999		6,807		7,261		7,492
Personal	4,921		5,189		5,114		5,169		5,508
Total Bank of Arkansas	171,253		197,271		190,440		196,241		184,740

Colorado State Bank & Trust:
Commercial	1,029,694		1,019,454		1,008,316		977,961		957,917
Commercial real estate	229,835		229,721		209,272		194,553		190,812
Residential mortgage	50,138		54,135		55,925		57,119		56,705
Personal	30,683		30,373		27,792		27,918		24,812
Total Colorado State Bank & Trust	1,340,350		1,333,683		1,301,305		1,257,551		1,230,246

Bank of Arizona:
Commercial	608,235		572,477		519,767		547,524		500,208
Commercial real estate	482,918		472,061		432,269		355,140		316,698
Residential mortgage	41,722		37,493		36,161		35,872		39,256
Personal	17,609		12,875		12,394		12,883		11,201
Total Bank of Arizona	1,150,484		1,094,906		1,000,591		951,419		867,363

Bank of Kansas City:
Commercial	448,838		424,194		397,570		399,419		384,662
Commercial real estate	192,023		180,714		166,581		162,371		166,723
Residential mortgage	20,210		20,352		20,455		18,217		17,784
Personal	22,753		22,645		17,792		17,358		12,432
Total Bank of Kansas City	683,824		647,905		602,398		597,365		581,601

TOTAL BOK FINANCIAL	$	15,367,441	$	15,124,136	$	14,684,136	$	14,208,037	$	13,683,739

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)

	Sept. 30, 2015		June 30, 2015		March 31, 2015		Dec. 31, 2014		Sept. 30, 2014
Bank of Oklahoma:
Demand	$	3,834,145	$	4,068,088	$	3,982,534	$	3,828,819	$	3,915,560
Interest-bearing:
Transaction	5,783,258		6,018,381		6,199,468		6,117,886		5,450,692
Savings	225,580		225,694		227,855		206,357		201,690
Time	1,253,137		1,380,566		1,372,250		1,301,194		1,292,738
Total interest-bearing	7,261,975		7,624,641		7,799,573		7,625,437		6,945,120
Total Bank of Oklahoma	11,096,120		11,692,729		11,782,107		11,454,256		10,860,680

Bank of Texas:
Demand	2,689,493		2,565,234		2,511,032		2,639,732		2,636,713
Interest-bearing:
Transaction	1,996,223		2,020,817		2,062,063		2,065,723		2,020,737
Savings	74,674		74,373		76,128		72,037		66,798
Time	554,106		536,844		547,371		547,316		569,929
Total interest-bearing	2,625,003		2,632,034		2,685,562		2,685,076		2,657,464
Total Bank of Texas	5,314,496		5,197,268		5,196,594		5,324,808		5,294,177

Bank of Albuquerque:
Demand	520,785		508,224		537,466		487,819		480,023
Interest-bearing:
Transaction	529,862		537,156		535,791		519,544		502,787
Savings	41,380		41,802		42,088		37,471		36,127
Time	281,426		285,890		290,706		295,798		303,074
Total interest-bearing	852,668		864,848		868,585		852,813		841,988
Total Bank of Albuquerque	1,373,453		1,373,072		1,406,051		1,340,632		1,322,011

Bank of Arkansas:
Demand	25,397		19,731		31,002		35,996		35,075
Interest-bearing:
Transaction	290,728		284,349		253,691		158,115		234,063
Savings	1,573		1,712		1,677		1,936		2,222
Time	26,203		28,220		28,277		28,520		38,811
Total interest-bearing	318,504		314,281		283,645		188,571		275,096
Total Bank of Arkansas	343,901		334,012		314,647		224,567		310,171

Colorado State Bank & Trust:
Demand	430,675		403,491		412,532		445,755		422,044
Interest-bearing:
Transaction	655,206		601,741		604,665		631,874		571,807
Savings	31,398		31,285		31,524		29,811		29,768
Time	320,279		322,432		340,006		353,998		372,401
Total interest-bearing	1,006,883		955,458		976,195		1,015,683		973,976
Total Colorado State Bank & Trust	1,437,558		1,358,949		1,388,727		1,461,438		1,396,020

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

	Sept. 30, 2015		June 30, 2015		March 31, 2015		Dec. 31, 2014		Sept. 30, 2014
Bank of Arizona:
Demand	306,425		352,024		271,091		369,115		279,811
Interest-bearing:
Transaction	293,319		298,073		295,480		347,214		336,584
Savings	4,121		2,726		2,900		2,545		3,718
Time	26,750		28,165		28,086		36,680		38,842
Total interest-bearing	324,190		328,964		326,466		386,439		379,144
Total Bank of Arizona	630,615		680,988		597,557		755,554		658,955

Bank of Kansas City:
Demand	234,847		239,609		263,920		259,121		268,903
Interest-bearing:
Transaction	150,253		139,260		157,044		273,999		128,039
Savings	1,570		1,580		1,618		1,274		1,315
Time	36,630		42,262		45,082		45,210		48,785
Total interest-bearing	188,453		183,102		203,744		320,483		178,139
Total Bank of Kansas City	423,300		422,711		467,664		579,604		447,042

TOTAL BOK FINANCIAL	$	20,619,443	$	21,059,729	$	21,153,347	$	21,140,859	$	20,289,056

NET INTEREST MARGIN TREND -- UNAUDITED BOK FINANCIAL CORPORATION

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

TAX-EQUIVALENT ASSETS YIELDS
Interest-bearing cash and cash equivalents	0.28	%	0.25	%	0.27	%	0.28	%	0.20	%
Trading securities	2.70	%	1.85	%	2.55	%	2.48	%	2.67	%
Investment securities:
Taxable	5.49	%	5.49	%	5.51	%	5.68	%	5.66	%
Tax-exempt	1.54	%	1.56	%	1.56	%	1.56	%	1.56	%
Total investment securities	3.04	%	3.05	%	3.04	%	3.11	%	3.03	%
Available for sale securities:
Taxable	1.99	%	1.92	%	1.95	%	1.97	%	1.94	%
Tax-exempt	4.15	%	4.21	%	4.40	%	4.23	%	3.14	%
Total available for sale securities	2.01	%	1.94	%	1.98	%	1.99	%	1.95	%
Fair value option securities	2.30	%	2.17	%	2.28	%	2.18	%	2.05	%
Restricted equity securities	5.95	%	5.82	%	5.79	%	5.77	%	5.99	%
Residential mortgage loans held for sale	3.79	%	3.37	%	3.41	%	3.87	%	3.79	%
Loans	3.54	%	3.65	%	3.59	%	3.73	%	3.78	%
Allowance for loan losses
Loans, net of allowance	3.59	%	3.70	%	3.64	%	3.78	%	3.83	%
Total tax-equivalent yield on earning assets	2.83	%	2.84	%	2.80	%	2.86	%	2.93	%

COST OF INTEREST-BEARING LIABILITIES
Interest-bearing deposits:
Interest-bearing transaction	0.08	%	0.09	%	0.10	%	0.09	%	0.10	%
Savings	0.10	%	0.11	%	0.10	%	0.11	%	0.12	%
Time	1.33	%	1.36	%	1.46	%	1.47	%	1.56	%
Total interest-bearing deposits	0.34	%	0.35	%	0.37	%	0.38	%	0.41	%
Funds purchased	0.08	%	0.08	%	0.09	%	0.08	%	0.07	%
Repurchase agreements	0.03	%	0.03	%	0.04	%	0.04	%	0.05	%
Other borrowings	0.30	%	0.31	%	0.32	%	0.32	%	0.34	%
Subordinated debt	1.04	%	2.21	%	2.52	%	2.50	%	2.46	%
Total cost of interest-bearing liabilities	0.32	%	0.35	%	0.38	%	0.39	%	0.41	%
Tax-equivalent net interest revenue spread	2.51	%	2.49	%	2.42	%	2.47	%	2.52	%
Effect of noninterest-bearing funding sources and other	0.10	%	0.12	%	0.13	%	0.14	%	0.15	%
Tax-equivalent net interest margin	2.61	%	2.61	%	2.55	%	2.61	%	2.67	%

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
	Sept. 30, 2015		June 30, 2015		March 31, 2015		Dec. 31, 2014		Sept. 30, 2014
Nonperforming assets:
Nonaccruing loans:
Commercial	$	33,798	$	24,233	$	13,880	$	13,527	$	16,404
Commercial real estate	10,956		20,139		19,902		18,557		30,660
Residential mortgage	44,099		45,969		46,487		48,121		48,907
Personal	494		550		464		566		580
Total nonaccruing loans	89,347		90,891		80,733		80,771		96,551
Accruing renegotiated loans guaranteed by U.S. government agencies	81,598		82,368		80,287		73,985		70,459
Real estate and other repossessed assets:
Guaranteed by U.S. government agencies²	—		—		—		49,898		46,809
Other	33,116		35,499		45,551		51,963		51,062
Total real estate and other repossessed assets	33,116		35,499		45,551		101,861		97,871
Total nonperforming assets	$	204,061	$	208,758	$	206,571	$	256,617	$	264,881
Total nonperforming assets excluding those guaranteed by U.S. government agencies	$	118,578	$	122,673	$	123,028	$	129,022	$	143,778

Nonaccruing loans by loan class:
Commercial:
Energy	$	17,880	$	6,841	$	1,875	$	1,416	$	1,508
Services	10,692		10,944		4,744		5,201		3,584
Wholesale / retail	3,058		4,166		4,401		4,149		5,502
Manufacturing	352		379		417		450		3,482
Healthcare	1,218		1,278		1,558		1,380		1,417
Other commercial and industrial	598		625		885		931		911
Total commercial	33,798		24,233		13,880		13,527		16,404
Commercial real estate:
Residential construction and land development	4,748		9,367		9,598		5,299		14,634
Retail	1,648		3,826		3,857		3,926		4,009
Office	684		2,360		2,410		3,420		3,499
Multifamily	185		195		—		—		—
Industrial	76		76		76		—		—
Other commercial real estate	3,615		4,315		3,961		5,912		8,518
Total commercial real estate	10,956		20,139		19,902		18,557		30,660
Residential mortgage:
Permanent mortgage	30,660		32,187		33,365		34,845		35,137
Permanent mortgage guaranteed by U.S. government agencies	3,885		3,717		3,256		3,712		3,835
Home equity	9,554		10,065		9,866		9,564		9,935
Total residential mortgage	44,099		45,969		46,487		48,121		48,907
Personal	494		550		464		566		580
Total nonaccruing loans	$	89,347	$	90,891	$	80,733	$	80,771	$	96,551

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

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

Performing loans 90 days past due¹	$	101		$	99		$	523		$	125		$	25

Gross charge-offs	$	(5,274	)	$	(2,877	)	$	(2,169	)	$	(7,224	)	$	(2,638	)
Recoveries	3,521			2,206			10,523			5,036			3,114
Net recoveries (charge-offs)	$	(1,753	)	$	(671	)	$	8,354		$	(2,188	)	$	476

Provision for credit losses	$	7,500		$	4,000		$	—		$	—		$	—

Allowance for loan losses to period end loans	1.33		%	1.33		%	1.35		%	1.33		%	1.40		%
Combined allowance for credit losses to period end loans	1.35		%	1.34		%	1.35		%	1.34		%	1.41		%
Nonperforming assets to period end loans and repossessed assets	1.33		%	1.38		%	1.40		%	1.79		%	1.92		%
Net charge-offs (annualized) to average loans	0.05		%	0.02		%	(0.23		)%	0.06		%	(0.01		)%
Allowance for loan losses to nonaccruing loans	228.45		%	221.24		%	244.86		%	234.06		%	198.08		%
Combined allowance for credit losses to nonaccruing loans	232.48		%	222.21		%	246.05		%	235.59		%	199.35		%


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 - October 28, 2015

Attached files