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

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8-K - 8-K - BOK FINANCIAL CORP	a20151231bokf8-k.htm

Exhibit 99 (a)

NASD: BOKF

For Further Information Contact:

Joseph Crivelli Andrea Myers

Investor Relations Corporate Communications

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

BOK Financial Reports Annual and Quarterly Earnings for 2015

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

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

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

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

Highlights of the fourth quarter of 2015 included:


•	Net interest revenue totaled $181.3 million for the fourth quarter of 2015, up $2.6 million over the third quarter of 2015. Net interest margin increased to 2.64 percent, compared to 2.61 percent. Average earning assets increased $256 million over the prior quarter.


•	Fees and commissions revenue totaled $155.8 million for the fourth quarter of 2015, compared to $164.7 million for the third quarter of 2015. Mortgage banking revenue decreased $8.1 million due primarily to lower loan production volume.


•	Change in fair value of mortgage servicing rights, net of economic hedges increased pre-tax net income in the fourth quarter of 2015 by $2.6 million and decreased pre-tax net income in the third quarter of 2015 by $4.4 million.


•	Operating expenses were $232.6 million for the fourth quarter, an increase of $7.9 million over the previous quarter. Personnel expense increased $4.1 million and non-personnel expense increased $3.8 million.


•	A $22.5 million provision for credit losses was recorded in the fourth quarter, compared to $7.5 million for the third quarter of 2015. The additional provision reflects continued credit migration and increased impairment in our energy loan portfolio. Net loans charged off were $3.0 million for the fourth quarter of 2015, compared to $1.8 million in the third quarter.

•

The combined allowance for credit losses totaled $227 million or 1.43 percent of outstanding loans at December 31, 2015, compared to $208 million or 1.35 percent of outstanding loans at September 30, 2015. The portion of the combined allowance attributed to the energy portfolio totaled 2.89 percent of outstanding energy loans at December 31, an increase from 2.05 percent of outstanding energy loans at September 30.

•

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


•	Average loans increased $395 million over the previous quarter due primarily to growth in commercial loans, partially offset by a decrease in commercial real estate loans. Period-end outstanding loan balances were $15.9 billion at December 31, 2015, an increase of $574 million over September 30, 2015. Commercial loan balances grew $455 million over the prior quarter.


•	Average deposits increased $12 million over the previous quarter. Growth in demand deposit balances was partially offset by lower interest-bearing transaction and time deposits compared to the prior quarter. Period end deposits grew by $469 million over September 30, 2015 to $21.1 billion at December 31, 2015.

•

The common equity Tier 1 capital ratio was 12.13 percent at December 31. In addition, the Company's Tier 1 capital ratio was 12.13 percent, total capital ratio was 13.30 percent and leverage ratio was 9.25 percent. At September 30, 2015, the common equity Tier 1 capital ratio was 12.78 percent, the Tier 1 capital ratio was 12.78 percent, total capital ratio was 13.89 percent and leverage ratio was 9.55 percent. The decrease in capital ratios was primarily due to share repurchases during the fourth quarter. The company repurchased 1,874,074 common shares at an average price of $63.91 per share.


•	The company paid a regular quarterly cash dividend of $29 million or $0.43 per common share during the fourth quarter of 2015. On January 26, 2016, the board of directors approved a quarterly cash dividend of $0.43 per common share payable on or about February 26, 2016 to shareholders of record as of February 12, 2016.

Net Interest Revenue

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

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

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

Fees and Commissions Revenue

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

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

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

Operating Expenses

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

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

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

Loans, Deposits and Capital

Loans

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

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

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

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

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

Deposits

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

Capital

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

The company's tangible common equity ratio, a non-GAAP measure, was 9.02 percent at December 31, 2015 and 9.78 percent at September 30, 2015. The tangible common equity ratio is primarily based on total shareholders' equity which includes unrealized gains and losses on available for sale securities. The Company has elected to exclude unrealized gains and losses from available for sale securities from its calculation of Tier 1 capital for regulatory capital purposes, consistent with the treatment under the previous capital rules.

Credit Quality

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

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

Potential problem loans, which are defined as performing loans that, based on known information, cause management concern as to the borrowers' ability to continue to perform, increased to $155 million at December 31 from $120 million at September 30. The increase largely resulted from a $33 million increase in potential problem energy loans to $130 million.

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

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

Energy Portfolio Credit Quality

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

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

Securities and Derivatives

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

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

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

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

Conference Call and Webcast

The Company will hold a conference call at 9 a.m. Central time on Wednesday, January 27, 2016 to discuss the financial results with investors. The live audio webcast and presentation slides will be available on the company’s website at www.bokf.com. The conference call can also be accessed by dialing 1-412-902-6611. A conference call and webcast replay will also be available shortly after conclusion of the live call at www.bokf.com or by dialing 1-412-317-0088 and referencing conference ID # 10078587.

About BOK Financial Corporation

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

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

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

Exhibit 99 (b)

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

	Dec. 31, 2015			Sept. 30, 2015			Dec. 31, 2014
ASSETS
Cash and due from banks	$	573,699		$	489,268		$	550,576
Interest-bearing cash and cash equivalents	2,069,900			1,830,105			1,925,266
Trading securities	122,404			181,131			188,700
Investment securities	597,836			612,384			652,360
Available for sale securities	9,042,733			8,801,089			8,978,945
Fair value option securities	444,217			427,760			311,597
Restricted equity securities	273,684			263,587			141,494
Residential mortgage loans held for sale	308,439			357,414			304,182
Loans:
Commercial	10,252,531			9,797,422			9,095,670
Commercial real estate	3,259,033			3,235,067			2,728,150
Residential mortgage	1,876,893			1,868,995			1,949,512
Personal	552,697			465,957			434,705
Total loans	15,941,154			15,367,441			14,208,037
Allowance for loan losses	(225,524		)	(204,116		)	(189,056		)
Loans, net of allowance	15,715,630			15,163,325			14,018,981
Premises and equipment, net	306,490			294,669			273,833
Receivables	163,480			151,451			132,408
Goodwill	385,461			385,461			377,780
Intangible assets, net	43,909			44,999			34,376
Mortgage servicing rights, net	218,605			200,049			171,976
Real estate and other repossessed assets, net	30,731			33,116			101,861
Derivative contracts, net	586,270			726,159			361,874
Cash surrender value of bank-owned life insurance	303,335			300,981			293,978
Receivable on unsettled securities sales	40,193			30,009			74,259
Other assets	249,112			273,948			195,252
TOTAL ASSETS	$	31,476,128		$	30,566,905		$	29,089,698

LIABILITIES AND EQUITY
Deposits:
Demand	$	8,296,888		$	8,041,767		$	8,066,357
Interest-bearing transaction	9,998,954			9,698,849			10,114,355
Savings	386,252			380,296			351,431
Time	2,406,064			2,498,531			2,608,716
Total deposits	21,088,158			20,619,443			21,140,859
Funds purchased	491,192			62,297			57,031
Repurchase agreements	722,444			555,677			1,187,489
Other borrowings	4,837,879			4,635,150			2,133,774
Subordinated debentures	226,350			226,314			347,983
Accrued interest, taxes, and expense	119,584			158,048			120,211
Due on unsettled securities purchases	16,897			98,351			290,540
Derivative contracts, net	581,701			636,115			354,554
Other liabilities	124,284			159,348			121,051
TOTAL LIABILITIES	28,208,489			27,150,743			25,753,492
Shareholders' equity:
Capital, surplus and retained earnings	3,208,969			3,291,450			3,245,506
Accumulated other comprehensive income	21,587			85,776			56,673
TOTAL SHAREHOLDERS' EQUITY	3,230,556			3,377,226			3,302,179
Non-controlling interests	37,083			38,936			34,027
TOTAL EQUITY	3,267,639			3,416,162			3,336,206
TOTAL LIABILITIES AND EQUITY	$	31,476,128		$	30,566,905		$	29,089,698

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

	Three Months Ended
	Dec. 31, 2015			Sept. 30, 2015			June 30, 2015			March 31, 2015			Dec. 31, 2014
ASSETS
Interest-bearing cash and cash equivalents	$	1,995,945		$	2,038,611		$	2,002,456		$	2,089,546		$	2,090,176
Trading securities	150,402			179,098			127,391			140,968			164,502
Investment securities	602,369			616,091			628,489			642,825			650,911
Available for sale securities	8,971,090			8,942,261			9,063,006			9,101,464			9,161,901
Fair value option securities	435,449			429,951			435,294			404,775			221,773
Restricted equity securities	262,461			255,610			221,911			179,385			182,737
Residential mortgage loans held for sale	310,425			401,359			464,269			348,054			321,746
Loans:
Commercial	10,024,756			9,685,768			9,634,306			9,308,307			8,886,952
Commercial real estate	3,186,629			3,198,200			2,989,615			2,909,565			2,665,547
Residential mortgage	1,835,195			1,847,696			1,857,464			1,909,998			1,904,777
Personal	540,418			460,647			423,967			426,712			424,729
Total loans	15,586,998			15,192,311			14,905,352			14,554,582			13,882,005
Allowance for loan losses	(207,156		)	(202,829		)	(198,400		)	(194,948		)	(190,787		)
Total loans, net	15,379,842			14,989,482			14,706,952			14,359,634			13,691,218
Total earning assets	28,107,983			27,852,463			27,649,768			27,266,651			26,484,964
Cash and due from banks	514,629			487,283			492,737			513,734			528,595
Derivative contracts, net	657,780			669,264			475,687			447,565			352,565
Cash surrender value of bank-owned life insurance	301,793			299,424			297,022			294,803			292,411
Receivable on unsettled securities sales	62,228			64,591			94,374			99,706			69,109
Other assets	1,435,763			1,396,708			1,454,484			1,348,245			1,404,553
TOTAL ASSETS	$	31,080,176		$	30,769,733		$	30,464,072		$	29,970,704		$	29,132,197

LIABILITIES AND EQUITY
Deposits:
Demand	$	8,312,961		$	7,994,607		$	7,996,717		$	7,885,485		$	7,974,165
Interest-bearing transaction	9,527,491			9,760,839			10,063,589			10,338,396			9,730,564
Savings	382,284			379,828			381,833			365,835			346,132
Time	2,482,714			2,557,874			2,651,820			2,659,323			2,647,147
Total deposits	20,705,450			20,693,148			21,093,959			21,249,039			20,698,008
Funds purchased	73,220			70,281			63,312			69,730			71,728
Repurchase agreements	623,921			672,085			773,977			1,000,839			996,308
Other borrowings	4,957,175			4,779,981			4,001,479			3,084,214			3,021,094
Subordinated debentures	226,332			226,296			307,903			348,007			347,960
Derivative contracts, net	632,699			597,908			455,431			418,848			321,367
Due on unsettled securities purchases	248,811			90,135			151,369			205,096			137,566
Other liabilities	251,953			240,704			235,173			243,370			228,021
TOTAL LIABILITIES	27,719,561			27,370,538			27,082,603			26,619,143			25,822,052
Total equity	3,360,615			3,399,195			3,381,469			3,351,561			3,310,145
TOTAL LIABILITIES AND EQUITY	$	31,080,176		$	30,769,733		$	30,464,072		$	29,970,704		$	29,132,197

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

	Three Months Ended						Year Ended
	Dec. 31,						Dec. 31,
	2015			2014			2015			2014

Interest revenue	$	196,782		$	186,620		$	766,828		$	732,239
Interest expense	15,521			16,956			63,474			67,045
Net interest revenue	181,261			169,664			703,354			665,194
Provision for credit losses	22,500			—			34,000			—
Net interest revenue after provision for credit losses	158,761			169,664			669,354			665,194
Other operating revenue:
Brokerage and trading revenue	30,255			30,602			129,556			134,437
Transaction card revenue	32,319			31,467			128,621			123,689
Fiduciary and asset management revenue	31,165			30,649			126,153			115,652
Deposit service charges and fees	22,813			22,581			90,431			90,911
Mortgage banking revenue	25,039			30,105			134,375			109,093
Bank-owned life insurance	2,348			2,380			9,304			9,086
Other revenue	11,885			10,071			40,579			38,451
Total fees and commissions	155,824			157,855			659,019			621,319
Gain on other assets, net	2,329			338			5,702			2,953
Gain (loss) on derivatives, net	(732		)	1,070			430			2,776
Gain (loss) on fair value option securities, net	(4,127		)	3,685			(3,684		)	10,189
Change in fair value of mortgage servicing rights	7,416			(10,821		)	(4,853		)	(16,445		)
Gain on available for sale securities, net	2,132			149			12,058			1,539
Total other-than-temporary impairment losses	(2,114		)	(373		)	(2,895		)	(373		)
Portion of loss recognized in (reclassified from) other comprehensive income	387			—			1,076			—
Net impairment losses recognized in earnings	(1,727		)	(373		)	(1,819		)	(373		)
Total other operating revenue	161,115			151,903			666,853			621,958
Other operating expense:
Personnel	133,182			125,741			523,487			476,931
Business promotion	8,416			7,498			27,851			26,649
Charitable contributions to BOKF Foundation	—			1,847			796			4,267
Professional fees and services	10,357			11,058			40,123			44,440
Net occupancy and equipment	19,356			22,655			76,016			77,232
Insurance	5,415			4,777			20,375			18,578
Data processing and communications	31,248			30,259			122,383			115,225
Printing, postage and supplies	3,108			3,168			13,498			13,518
Net losses (gains) and operating expenses of repossessed assets	343			(1,497		)	1,446			6,019
Amortization of intangible assets	1,090			1,100			4,359			3,965
Mortgage banking costs	11,496			11,166			38,997			31,705
Other expense	8,547			8,105			35,233			28,993
Total other operating expense	232,558			225,877			904,564			847,522

Net income before taxes	87,318			95,690			431,643			439,630
Federal and state income taxes	26,242			30,109			139,384			144,151

Net income	61,076			65,581			292,259			295,479
Net income attributable to non-controlling interests	1,475			1,263			3,694			3,044
Net income attributable to BOK Financial Corporation shareholders	$	59,601		$	64,318		$	288,565		$	292,435

Average shares outstanding:
Basic	66,378,380			68,481,630			67,594,689			68,394,194
Diluted	66,467,729			68,615,808			67,691,658			68,544,770

Net income per share:
Basic	$	0.89		$	0.93		$	4.22		$	4.23
Diluted	$	0.89		$	0.93		$	4.21		$	4.22

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

	Three Months Ended
	Dec. 31, 2015			Sept. 30, 2015			June 30, 2015			March 31, 2015			Dec. 31, 2014
Capital:
Period-end shareholders' equity	$	3,230,556		$	3,377,226		$	3,375,632		$	3,357,161		$	3,302,179
Risk weighted assets	$	23,429,897		$	22,706,537		$	22,533,295		$	22,053,246		$	21,290,908
Risk-based capital ratios¹:
Common equity tier 1	12.13		%	12.78		%	13.01		%	13.07		%	N/A
Tier 1	12.13		%	12.78		%	13.01		%	13.07		%	13.33		%
Total capital	13.30		%	13.89		%	14.11		%	14.39		%	14.66		%
Leverage ratio	9.25		%	9.55		%	9.75		%	9.74		%	9.96		%
Tangible common equity ratio²	9.02		%	9.78		%	9.72		%	9.86		%	10.08		%

Common stock:
Book value per share	$	49.03		$	49.88		$	48.96		$	48.71		$	47.78
Market value per share:
High	$	74.73		$	70.26		$	71.66		$	61.78		$	68.69
Low	$	58.25		$	57.04		$	59.59		$	52.63		$	56.87
Cash dividends paid	$	28,967		$	28,766		$	28,841		$	28,952		$	29,114
Dividend payout ratio	48.60		%	38.41		%	36.40		%	38.68		%	45.27		%
Shares outstanding, net	65,894,032			67,713,031			68,945,139			68,922,314			69,113,736

Stock buy-back program:
Shares repurchased	1,874,074			1,258,348			—			502,156			200,000
Amount	$	119,780		$	80,276		$	—		$	29,484		$	12,337
Average price per share	$	63.91		$	63.79		$	—		$	58.71		$	61.68

Performance ratios (quarter annualized):
Return on average assets	0.76		%	0.97		%	1.04		%	1.01		%	0.88		%
Return on average equity	7.12		%	8.84		%	9.50		%	9.15		%	7.79		%
Net interest margin	2.64		%	2.61		%	2.61		%	2.55		%	2.61		%
Efficiency ratio	67.93		%	64.34		%	64.21		%	64.91		%	67.95		%

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

Reconciliation of non-GAAP measures:
² Tangible common equity ratio:
Total shareholders' equity	$	3,230,556		$	3,377,226		$	3,375,632		$	3,357,161		$	3,302,179
Less: Goodwill and intangible assets, net	429,370			430,460			431,515			411,066			412,156
Tangible common equity	$	2,801,186		$	2,946,766		$	2,944,117		$	2,946,095		$	2,890,023

Total assets	$	31,476,128		$	30,566,905		$	30,725,563		$	30,299,978		$	29,089,698
Less: Goodwill and intangible assets, net	429,370			430,460			431,515			411,066			412,156
Tangible assets	$	31,046,758		$	30,136,445		$	30,294,048		$	29,888,912		$	28,677,542

Tangible common equity ratio	9.02		%	9.78		%	9.72		%	9.86		%	10.08		%

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

	Three Months Ended
	Dec. 31, 2015			Sept. 30, 2015			June 30, 2015			March 31, 2015			Dec. 31, 2014
Other data:
Fiduciary assets	$	38,333,638		$	37,780,669		$	38,772,018		$	37,511,746		$	35,997,877
Tax equivalent adjustment	$	3,222		$	3,244		$	3,035		$	2,956		$	2,859
Net unrealized gain on available for sale securities	$	38,109		$	144,884		$	89,158		$	152,107		$	96,955

Mortgage banking:
Mortgage servicing portfolio	$	19,678,226		$	18,928,726		$	17,979,623		$	16,937,128		$	16,162,887
Mortgage commitments	$	601,147		$	742,742		$	849,619		$	824,036		$	627,505
Mortgage loans funded for sale	$	1,365,431		$	1,614,225		$	1,828,230		$	1,565,016		$	1,264,269
Mortgage loan refinances to total fundings	41		%	30		%	40		%	56		%	37		%
Mortgage loans sold	$	1,424,527		$	1,778,099		$	1,861,968		$	1,382,042		$	1,350,529

Net realized gains on mortgage loans sold	$	15,705		$	18,968		$	23,856		$	17,251		$	17,671
Change in net unrealized gain on mortgage loans held for sale	(5,615		)	(251		)	(743		)	8,789			(482		)
Total production revenue	10,090			18,717			23,113			26,040			17,189
Servicing revenue	14,949			14,453			13,733			13,280			12,916
Total mortgage banking revenue	$	25,039		$	33,170		$	36,846		$	39,320		$	30,105

Gain (loss) on mortgage servicing rights, net of economic hedge:
Gain (loss) on mortgage hedge derivative contracts, net	$	(732	)	$	1,460		$	(1,005	)	$	911		$	1,070
Gain (loss) on fair value option securities, net	(4,127		)	5,926			(8,130		)	2,647			3,685
Gain (loss) on economic hedge of mortgage servicing rights	(4,859		)	7,386			(9,135		)	3,558			4,755
Gain (loss) on changes in fair value of mortgage servicing rights	7,416			(11,757		)	8,010			(8,522		)	(10,821		)
Gain (loss) on changes in fair value of mortgage servicing rights, net of economic hedges	$	2,557		$	(4,371	)	$	(1,125	)	$	(4,964	)	$	(6,066	)

Net interest revenue on fair value option securities	$	2,137		$	2,140		$	1,985		$	1,739		$	912

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

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

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

Average shares outstanding:
Basic	66,378,380			67,668,076			68,096,341			68,254,780			68,481,630
Diluted	66,467,729			67,762,483			68,210,353			68,344,886			68,615,808
Net income per share:
Basic	$	0.89		$	1.09		$	1.15		$	1.08		$	0.93
Diluted	$	0.89		$	1.09		$	1.15		$	1.08		$	0.93

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

	Dec. 31, 2015		Sept. 30, 2015		June 30, 2015		March 31, 2015		Dec. 31, 2014
Commercial:
Energy	$	3,097,328	$	2,838,167	$	2,902,143	$	2,902,994	$	2,860,428
Services	2,784,276		2,706,624		2,681,126		2,592,876		2,391,530
Healthcare	1,883,380		1,741,680		1,646,025		1,511,177		1,454,969
Wholesale/retail	1,422,064		1,461,936		1,533,730		1,405,800		1,440,015
Manufacturing	556,729		555,677		579,549		560,925		532,594
Other commercial and industrial	508,754		493,338		433,148		417,391		416,134
Total commercial	10,252,531		9,797,422		9,775,721		9,391,163		9,095,670

Commercial real estate:
Retail	796,499		769,449		688,447		658,860		666,889
Multifamily	751,085		758,658		711,333		749,986		704,298
Office	637,707		626,151		563,085		513,862		415,544
Industrial	563,169		563,871		488,054		478,584		428,817
Residential construction and land development	160,426		153,510		148,574		139,152		143,591
Other real estate	350,147		363,428		434,004		395,020		369,011
Total commercial real estate	3,259,033		3,235,067		3,033,497		2,935,464		2,728,150

Residential mortgage:
Permanent mortgage	945,336		937,664		946,324		964,264		969,951
Permanent mortgages guaranteed by U.S. government agencies	196,937		192,712		190,839		200,179		205,950
Home equity	734,620		738,619		747,565		762,556		773,611
Total residential mortgage	1,876,893		1,868,995		1,884,728		1,926,999		1,949,512

Personal	552,697		465,957		430,190		430,510		434,705

Total	$	15,941,154	$	15,367,441	$	15,124,136	$	14,684,136	$	14,208,037

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

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

Bank of Oklahoma:
Commercial	$	3,782,687	$	3,514,391	$	3,529,406	$	3,276,553	$	3,142,689
Commercial real estate	739,829		677,372		614,995		612,639		603,610
Residential mortgage	1,409,114		1,405,235		1,413,690		1,442,340		1,467,096
Personal	255,387		185,463		190,909		205,496		206,115
Total Bank of Oklahoma	6,187,017		5,782,461		5,749,000		5,537,028		5,419,510

Bank of Texas:
Commercial	3,908,425		3,752,193		3,738,742		3,709,467		3,549,128
Commercial real estate	1,204,202		1,257,741		1,158,056		1,130,973		1,027,817
Residential mortgage	219,126		222,395		228,683		237,985		235,948
Personal	203,496		194,051		156,260		149,827		154,363
Total Bank of Texas	5,535,249		5,426,380		5,281,741		5,228,252		4,967,256

Bank of Albuquerque:
Commercial	375,839		368,027		392,362		388,005		383,439
Commercial real estate	313,422		312,953		291,953		296,696		296,358
Residential mortgage	120,507		121,232		123,376		127,326		127,999
Personal	11,557		10,477		11,939		12,095		10,899
Total Bank of Albuquerque	821,325		812,689		819,630		824,122		818,695

Bank of Arkansas:
Commercial	92,359		76,044		99,086		91,485		95,510
Commercial real estate	69,320		82,225		85,997		87,034		88,301
Residential mortgage	8,169		8,063		6,999		6,807		7,261
Personal	819		4,921		5,189		5,114		5,169
Total Bank of Arkansas	170,667		171,253		197,271		190,440		196,241

Colorado State Bank & Trust:
Commercial	987,076		1,029,694		1,019,454		1,008,316		977,961
Commercial real estate	223,946		229,835		229,721		209,272		194,553
Residential mortgage	53,782		50,138		54,135		55,925		57,119
Personal	23,384		30,683		30,373		27,792		27,918
Total Colorado State Bank & Trust	1,288,188		1,340,350		1,333,683		1,301,305		1,257,551

Bank of Arizona:
Commercial	606,733		608,235		572,477		519,767		547,524
Commercial real estate	507,523		482,918		472,061		432,269		355,140
Residential mortgage	44,047		41,722		37,493		36,161		35,872
Personal	31,060		17,609		12,875		12,394		12,883
Total Bank of Arizona	1,189,363		1,150,484		1,094,906		1,000,591		951,419

Bank of Kansas City:
Commercial	499,412		448,838		424,194		397,570		399,419
Commercial real estate	200,791		192,023		180,714		166,581		162,371
Residential mortgage	22,148		20,210		20,352		20,455		18,217
Personal	26,994		22,753		22,645		17,792		17,358
Total Bank of Kansas City	749,345		683,824		647,905		602,398		597,365

TOTAL BOK FINANCIAL	$	15,941,154	$	15,367,441	$	15,124,136	$	14,684,136	$	14,208,037

Loans attributed to a geographical region may not always represent the location of the borrower or the collateral.

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

	Dec. 31, 2015		Sept. 30, 2015		June 30, 2015		March 31, 2015		Dec. 31, 2014
Bank of Oklahoma:
Demand	$	4,133,520	$	3,834,145	$	4,068,088	$	3,982,534	$	3,828,819
Interest-bearing:
Transaction	5,971,819		5,783,258		6,018,381		6,199,468		6,117,886
Savings	226,733		225,580		225,694		227,855		206,357
Time	1,202,274		1,253,137		1,380,566		1,372,250		1,301,194
Total interest-bearing	7,400,826		7,261,975		7,624,641		7,799,573		7,625,437
Total Bank of Oklahoma	11,534,346		11,096,120		11,692,729		11,782,107		11,454,256

Bank of Texas:
Demand	2,627,764		2,689,493		2,565,234		2,511,032		2,639,732
Interest-bearing:
Transaction	2,132,099		1,996,223		2,020,817		2,062,063		2,065,723
Savings	77,902		74,674		74,373		76,128		72,037
Time	549,740		554,106		536,844		547,371		547,316
Total interest-bearing	2,759,741		2,625,003		2,632,034		2,685,562		2,685,076
Total Bank of Texas	5,387,505		5,314,496		5,197,268		5,196,594		5,324,808

Bank of Albuquerque:
Demand	487,286		520,785		508,224		537,466		487,819
Interest-bearing:
Transaction	563,723		529,862		537,156		535,791		519,544
Savings	43,672		41,380		41,802		42,088		37,471
Time	267,821		281,426		285,890		290,706		295,798
Total interest-bearing	875,216		852,668		864,848		868,585		852,813
Total Bank of Albuquerque	1,362,502		1,373,453		1,373,072		1,406,051		1,340,632

Bank of Arkansas:
Demand	27,252		25,397		19,731		31,002		35,996
Interest-bearing:
Transaction	202,857		290,728		284,349		253,691		158,115
Savings	1,747		1,573		1,712		1,677		1,936
Time	24,983		26,203		28,220		28,277		28,520
Total interest-bearing	229,587		318,504		314,281		283,645		188,571
Total Bank of Arkansas	256,839		343,901		334,012		314,647		224,567

Colorado State Bank & Trust:
Demand	497,318		430,675		403,491		412,532		445,755
Interest-bearing:
Transaction	616,697		655,206		601,741		604,665		631,874
Savings	31,927		31,398		31,285		31,524		29,811
Time	296,224		320,279		322,432		340,006		353,998
Total interest-bearing	944,848		1,006,883		955,458		976,195		1,015,683
Total Colorado State Bank & Trust	1,442,166		1,437,558		1,358,949		1,388,727		1,461,438

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

	Dec. 31, 2015		Sept. 30, 2015		June 30, 2015		March 31, 2015		Dec. 31, 2014
Bank of Arizona:
Demand	326,324		306,425		352,024		271,091		369,115
Interest-bearing:
Transaction	358,556		293,319		298,073		295,480		347,214
Savings	2,893		4,121		2,726		2,900		2,545
Time	29,498		26,750		28,165		28,086		36,680
Total interest-bearing	390,947		324,190		328,964		326,466		386,439
Total Bank of Arizona	717,271		630,615		680,988		597,557		755,554

Bank of Kansas City:
Demand	197,424		234,847		239,609		263,920		259,121
Interest-bearing:
Transaction	153,203		150,253		139,260		157,044		273,999
Savings	1,378		1,570		1,580		1,618		1,274
Time	35,524		36,630		42,262		45,082		45,210
Total interest-bearing	190,105		188,453		183,102		203,744		320,483
Total Bank of Kansas City	387,529		423,300		422,711		467,664		579,604

TOTAL BOK FINANCIAL	$	21,088,158	$	20,619,443	$	21,059,729	$	21,153,347	$	21,140,859

NET INTEREST MARGIN TREND -- UNAUDITED BOK FINANCIAL CORPORATION

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

TAX-EQUIVALENT ASSETS YIELDS
Interest-bearing cash and cash equivalents	0.29	%	0.28	%	0.25	%	0.27	%	0.28	%
Trading securities	2.86	%	2.70	%	1.85	%	2.55	%	2.48	%
Investment securities:
Taxable	5.41	%	5.49	%	5.49	%	5.51	%	5.68	%
Tax-exempt	1.53	%	1.54	%	1.56	%	1.56	%	1.56	%
Total investment securities	3.03	%	3.04	%	3.05	%	3.04	%	3.11	%
Available for sale securities:
Taxable	2.02	%	1.99	%	1.92	%	1.95	%	1.97	%
Tax-exempt	4.22	%	4.15	%	4.21	%	4.40	%	4.23	%
Total available for sale securities	2.04	%	2.01	%	1.94	%	1.98	%	1.99	%
Fair value option securities	2.32	%	2.30	%	2.17	%	2.28	%	2.18	%
Restricted equity securities	5.95	%	5.95	%	5.82	%	5.79	%	5.77	%
Residential mortgage loans held for sale	3.85	%	3.79	%	3.37	%	3.41	%	3.87	%
Loans	3.55	%	3.54	%	3.65	%	3.59	%	3.73	%
Allowance for loan losses
Loans, net of allowance	3.60	%	3.59	%	3.70	%	3.64	%	3.78	%
Total tax-equivalent yield on earning assets	2.86	%	2.83	%	2.84	%	2.80	%	2.86	%

COST OF INTEREST-BEARING LIABILITIES
Interest-bearing deposits:
Interest-bearing transaction	0.09	%	0.08	%	0.09	%	0.10	%	0.09	%
Savings	0.09	%	0.10	%	0.11	%	0.10	%	0.11	%
Time	1.26	%	1.33	%	1.36	%	1.46	%	1.47	%
Total interest-bearing deposits	0.32	%	0.34	%	0.35	%	0.37	%	0.38	%
Funds purchased	0.11	%	0.08	%	0.08	%	0.09	%	0.08	%
Repurchase agreements	0.04	%	0.03	%	0.03	%	0.04	%	0.04	%
Other borrowings	0.38	%	0.30	%	0.31	%	0.32	%	0.32	%
Subordinated debt	1.13	%	1.04	%	2.21	%	2.52	%	2.50	%
Total cost of interest-bearing liabilities	0.34	%	0.32	%	0.35	%	0.38	%	0.39	%
Tax-equivalent net interest revenue spread	2.52	%	2.51	%	2.49	%	2.42	%	2.47	%
Effect of noninterest-bearing funding sources and other	0.12	%	0.10	%	0.12	%	0.13	%	0.14	%
Tax-equivalent net interest margin	2.64	%	2.61	%	2.61	%	2.55	%	2.61	%

Yield calculations are shown on a tax equivalent basis at the statutory federal and state rates for the periods presented. The yield calculations exclude security trades that have been recorded on trade date with no corresponding interest income and the unrealized gains and losses. The yield calculation also includes average loan balances for which the accrual of interest has been discontinued and are net of unearned income. Yield/rate calculations are generally based on the conventions that determine how interest income and expense is accrued.

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

	Three Months Ended
	Dec. 31, 2015		Sept. 30, 2015		June 30, 2015		March 31, 2015		Dec. 31, 2014
Nonperforming assets:
Nonaccruing loans:
Commercial	$	76,424	$	33,798	$	24,233	$	13,880	$	13,527
Commercial real estate	9,001		10,956		20,139		19,902		18,557
Residential mortgage	61,240		44,099		45,969		46,487		48,121
Personal	463		494		550		464		566
Total nonaccruing loans	147,128		89,347		90,891		80,733		80,771
Accruing renegotiated loans guaranteed by U.S. government agencies	74,049		81,598		82,368		80,287		73,985
Real estate and other repossessed assets:
Guaranteed by U.S. government agencies¹	—		—		—		—		49,898
Other	30,731		33,116		35,499		45,551		51,963
Total real estate and other repossessed assets	30,731		33,116		35,499		45,551		101,861
Total nonperforming assets	$	251,908	$	204,061	$	208,758	$	206,571	$	256,617
Total nonperforming assets excluding those guaranteed by U.S. government agencies	$	155,959	$	118,578	$	122,673	$	123,028	$	129,022

Nonaccruing loans by loan portfolio sector:
Commercial:
Energy	$	61,189	$	17,880	$	6,841	$	1,875	$	1,416
Services	10,290		10,692		10,944		4,744		5,201
Healthcare	1,072		1,218		1,278		1,558		1,380
Wholesale/retail	2,919		3,058		4,166		4,401		4,149
Manufacturing	331		352		379		417		450
Other commercial and industrial	623		598		625		885		931
Total commercial	76,424		33,798		24,233		13,880		13,527
Commercial real estate:
Retail	1,319		1,648		3,826		3,857		3,926
Multifamily	274		185		195		—		—
Office	651		684		2,360		2,410		3,420
Industrial	76		76		76		76		—
Residential construction and land development	4,409		4,748		9,367		9,598		5,299
Other commercial real estate	2,272		3,615		4,315		3,961		5,912
Total commercial real estate	9,001		10,956		20,139		19,902		18,557
Residential mortgage:
Permanent mortgage	28,984		30,660		32,187		33,365		34,845
Permanent mortgage guaranteed by U.S. government agencies	21,900		3,885		3,717		3,256		3,712
Home equity	10,356		9,554		10,065		9,866		9,564
Total residential mortgage	61,240		44,099		45,969		46,487		48,121
Personal	463		494		550		464		566
Total nonaccruing loans	$	147,128	$	89,347	$	90,891	$	80,733	$	80,771

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

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

Performing loans 90 days past due²	$	1,207		$	101		$	99		$	523		$	125

Gross charge-offs	$	(4,851	)	$	(5,274	)	$	(2,877	)	$	(2,169	)	$	(7,224	)
Recoveries	1,870			3,521			2,206			10,523			5,036
Net recoveries (charge-offs)	$	(2,981	)	$	(1,753	)	$	(671	)	$	8,354		$	(2,188	)

Provision for credit losses	$	22,500		$	7,500		$	4,000		$	—		$	—

Allowance for loan losses to period end loans	1.41		%	1.33		%	1.33		%	1.35		%	1.33		%
Combined allowance for credit losses to period end loans	1.43		%	1.35		%	1.34		%	1.35		%	1.34		%
Nonperforming assets to period end loans and repossessed assets	1.58		%	1.33		%	1.38		%	1.40		%	1.79		%
Net charge-offs (annualized) to average loans	0.08		%	0.05		%	0.02		%	(0.23		)%	0.06		%
Allowance for loan losses to nonaccruing loans²	180.09		%	238.84		%	230.67		%	255.15		%	245.34		%
Combined allowance for credit losses to nonaccruing loans²	181.46		%	243.05		%	231.68		%	256.39		%	246.94		%

¹ Approximately $50 million was reclassified from Real estate and other repossessed assets to Receivables on the balance sheet on January 1, 2015 with the adoption of Financial Accounting Standards Board Update No. 2014-14, Classification of Certain Government Guaranteed Mortgage Loans Upon Foreclosure ("ASU 2014-14"). Upon foreclosure of loans for which the loan balance is expected to be recovered from the guarantee by a U.S. government agency, the loan balance will be directly reclassified to other receivables without including such foreclosed assets in real estate and other repossessed assets.
² Excludes residential mortgage loans guaranteed by agencies of the U.S. government.

BOK FINANCIAL CORP - FORM 8-K - EX-99 - EXHIBIT 99 - January 27, 2016

Attached files