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

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8-K - 8-K - BOK FINANCIAL CORP	a20160630bokf8-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 Quarterly Earnings of $66 Million

New Quarterly Record for Fees and Commissions Revenue

TULSA, Okla. (Wednesday, July 27, 2016) - BOK Financial Corporation reported net income of $65.8 million or $1.00 per diluted share for the second quarter of 2016. Net income was $42.6 million or $0.64 per diluted share for the first quarter of 2016 and $79.2 million or $1.15 per diluted share for the second quarter of 2015.

Steven G. Bradshaw, president and chief executive officer, stated, “It was a solid quarter for the company, with very strong loan growth and record fee and commission revenue led by brokerage and trading, fiduciary and asset management, and transaction processing. In addition, stability in the commodity price environment translated into lower credit costs for the quarter and reduced concern about spillover impact on the economies in energy states such as Oklahoma, Texas, and Colorado. We continue to see strong growth opportunities across our footprint, and reflecting our confidence, we continued with our stock buyback program during the quarter."

Stacy Kymes, executive vice president, Corporate Banking, added, "We continue to be fully committed to the energy business and our energy customers. During the quarter we provided $172 million of new loan commitments to 20 new borrowers in the industry, and year to date we have provided $254 million of new loan commitments to 35 new borrowers. Energy lending is core to our DNA, and our experience in previous commodity cycles has shown that is a profitable business, and when approached in a consistent and disciplined manner, losses during down cycles are manageable. This long term view has served us well, and today we remain well-positioned in the industry with a complete service offering, world-class energy lending team, and enviable customer base."

Second Quarter 2016 Highlights

•

Net interest revenue totaled $182.6 million for the second quarter of 2016, unchanged compared to the first quarter of 2016. Net interest margin was 2.63 percent for the second quarter of 2016, compared to 2.65 percent for the first quarter of 2016. Average earning assets increased $246 million during the second quarter of 2016, primarily related to a $271 million increase in average loan balances.


•	Fees and commissions revenue totaled $183.5 million for the second quarter of 2016, an increase of $17.9 million over the prior quarter. Brokerage and trading revenue was up $7.2 million and mortgage banking revenue grew by $3.8 million. Fiduciary and asset management revenue increased $2.8 million and transaction card revenue increased $2.6 million.


•	Changes in the fair value of mortgage servicing rights, net of economic hedges, decreased pre-tax net income by $1.2 million in the second quarter of 2016 and decreased pre-tax net income $11.4 million in the first quarter of 2016. Hedge coverage was increased during the second quarter.

•

Operating expense was $254.7 million for the second quarter, an increase of $9.8 million over the previous quarter. Personnel expense increased $6.6 million, primarily due to revenue-driven incentive compensation. Non-personnel expense increased $3.2 million. Mortgage banking expense, professional fees and services expense, intangible asset amortization and business promotion expense increased over the prior quarter. Non-personnel expense in the first quarter of 2016 included $6.8 million of expense related to several litigation accruals and a post-acquisition valuation adjustment.

•

A $20.0 million provision for credit losses was recorded in the second quarter of 2016 compared to a $35.0 million provision in the first quarter of 2016. The decrease in the provision for credit losses was due to improving credit metric trends, largely driven by energy price stability. Net loans charged off totaled $7.5 million in the second quarter of 2016, compared to $22.5 million in the previous quarter.

•

The combined allowance for credit losses totaled $252 million or 1.54 percent of outstanding loans at June 30, 2016 compared to $240 million or 1.50 percent of outstanding loans at March 31, 2016. The portion of the combined allowance attributed to the energy portfolio totaled 3.58 percent of outstanding energy loans at June 30, 2016, an increase from 3.19 percent of outstanding energy loans at March 31, 2016.

•

Nonperforming assets that are not guaranteed by U.S. government agencies totaled $251 million or 1.55 percent of outstanding loans and repossessed assets (excluding those guaranteed by U.S. government agencies) at June 30, 2016 and $252 million or 1.59 percent of outstanding loans and repossessed assets (excluding those guaranteed by U.S. government agencies) at March 31, 2016. Nonperforming energy loans increased $8.6 million during the second quarter.


•	Average loans increased by $271 million over the previous quarter, primarily due to an increase in commercial real estate loans. Period-end outstanding loan balances increased $384 million to $16.4 billion at June 30, 2016. Commercial loans increased $68.0 million as growth across most loan classes was partially offset by a $210.8 million decrease in outstanding energy loans.


•	Average deposits decreased $159 million compared to the previous quarter primarily due to decreased interest-bearing transaction account balances. Growth in demand deposit balances was offset by a decrease in time deposits. Period-end deposits were $20.8 billion at June 30, 2016, an increase of $341 million from March 31, 2016.

•

The common equity Tier 1 capital ratio at June 30, 2016 was 11.86 percent. Other regulatory capital ratios were Tier 1 capital ratio, 11.86 percent, total capital ratio, 13.51 percent and leverage ratio, 9.06 percent. At March 31, 2016, the common equity Tier 1 capital ratio was 12.00 percent, the Tier 1 capital ratio was 12.00 percent, total capital ratio was 13.21 percent, and leverage ratio was 9.12 percent. The total capital ratio was supported by the issuance of $150 million of 40 year, fixed rate subordinated debt during the second quarter.


•	The company paid a regular quarterly cash dividend of $28 million or $0.43 per common share during the second quarter of 2016. On July 26, 2016, the board of directors approved a quarterly cash dividend of $0.43 per common share payable on or about August 26, 2016 to shareholders of record as of August 12, 2016.


•	The company repurchased 305,169 common shares at an average price of $58.23 per share during the second quarter of 2016. No shares were repurchased during the first quarter of 2016.

Net Interest Revenue

Net interest revenue was $182.6 million for the second quarter of 2016, unchanged compared to the first quarter of 2016.

Net interest margin was 2.63 percent for the second quarter of 2016, a decrease of 2 basis points compared to the first quarter of 2016. The yield on average earning assets was 2.91 percent, a decrease of 1 basis point. The loan portfolio yield increased 1 basis point to 3.58 percent. The yield on the available for sale securities portfolio decreased 4 basis points to 2.04 percent. In addition, the yield on average earning assets decreased 1 basis point due to a governmental policy decision to reduce dividends paid on Federal Reserve Bank stock. Funding costs were 0.41 percent, up 1 basis point.

Average earning assets increased $246 million during the second quarter of 2016. Average loan balances increased $271 million, primarily due to growth in commercial real estate balances. Average interest-bearing deposit balances decreased $215 million compared to the first quarter of 2016. The average balance of borrowed funds increased $399 million.

Fees and Commissions Revenue

Fees and commissions revenue totaled $183.5 million for the second quarter of 2016, an increase of $17.9 million over the first quarter of 2016.

Brokerage and trading revenue increased $7.2 million. Customer hedging revenue increased $4.6 million primarily due to increased volumes of contracts with our mortgage banking and energy customers. Investment banking revenue grew by $2.9 million primarily due to growth in loan syndication fees and bond underwriting fees, which are both dependent on the timing and volume of completed transactions.

Mortgage banking revenue totaled $38.2 million for the second quarter of 2016, a $3.8 million increase over the first quarter of 2016. Revenue from mortgage loan production increased $3.4 million due to growth in the volume of mortgage loans sold and mortgage loan commitments during the quarter. Average primary mortgage interest rates were 15 basis points lower than in the first quarter of 2016. Total mortgage loans originated during the second quarter increased $575 million or 46 percent over the prior quarter. Outstanding mortgage loan commitments at June 30 increased $63 million or 7 percent over March 31.

Fiduciary and asset management revenue increased $2.8 million largely due to an annual assessment of tax preparation fees and growth in assets under management. Transaction card revenue increased $2.6 million primarily due to a seasonal increase in transaction volumes along with a customer early termination fee.

Operating Expense

Total operating expense was $254.7 million for the second quarter of 2016, an increase of $9.8 million over the first quarter of 2016.

Personnel expense increased by $6.6 million over the first quarter of 2016 primarily due to an increase in incentive compensation expense. Revenue-driven cash-based incentive compensation increased $4.5 million. Share-based compensation expense increased $1.7 million primarily due to an increase in BOKF

stock price. In addition, increased regular compensation expense and employee healthcare costs were offset by a decrease in payroll tax expense.

Non-personnel expense increased $3.2 million over the first quarter of 2016. Mortgage banking expense increased $3.4 million primarily from increased prepayments of loans serviced for others due to lower mortgage interest rates. Professional fees and services expense increased $2.4 million due largely to the annual cost of wealth management customer tax preparation services and costs incurred in preparation for the mobank acquisition. Business promotion expense had a seasonal increase of $1.0 million over the prior quarter. The $1.5 million increase in intangible asset amortization expense was from an adjustment to a consolidated merchant-banking investment.

Other expense decreased $7.2 million compared to the prior quarter. The first quarter of 2016 included $4.1 million of litigation accruals and a $2.7 million post-acquisition valuation adjustment to a consolidated merchant banking investment.

Loans, Deposits and Capital

Loans

Outstanding loans were $16.4 billion at June 30, 2016, an increase of $384 million over the previous quarter, primarily due to growth in commercial real estate. Personal, commercial and residential mortgage loan balances also grew over the prior quarter.

Outstanding commercial loan balances increased $68 million over March 31, 2016. Service sector loans increased $102 million and wholesale/retail sector loans increased $81 million. Healthcare sector loans grew by $56 million and other commercial and industrial loans increased $45 million. As expected, energy loan balances decreased $211 million compared to March 31, 2016. Unfunded energy loan commitments decreased by $161 million during the second quarter to $1.9 billion.

Commercial real estate loans grew by $211 million over March 31, 2016. Loans secured by industrial facilities grew by $81 million primarily in the Oklahoma, Texas and Arizona markets. Loans secured by office buildings increased $74 million primarily in the Texas and Arizona markets. Multifamily residential loans increased $54 million. Growth in other commercial real estate balances was offset by a decrease in retail sector and residential construction and land development loan balances.

Deposits

Period-end deposits totaled $20.8 billion at June 30, 2016, an increase of $341 million over March 31, 2016. Demand deposit balances grew by $474 million, partially offset by a $94 million decrease in time deposits and a $41 million decrease in interest-bearing transaction deposit balances. Among the lines of business, Wealth Management deposits grew by $522 million over March 31, 2016. Consumer Banking deposits decreased $89 million and Commercial Banking deposits decreased $62 million. The overall decrease in Commercial Banking deposits was due to decreased balances held by our commercial and industrial customers, partially offset by increases in balances held by our energy, commercial real estate and small business customers.

Capital

The company's common equity Tier 1 capital ratio was 11.86 percent at June 30, 2016. In addition, the company's Tier 1 capital ratio was 11.86 percent, total capital ratio was 13.51 percent and leverage ratio was 9.06 percent at June 30, 2016. At March 31, 2016, the company's common equity Tier 1 capital ratio was 12.00 percent, Tier 1 capital ratio was 12.00 percent, total capital ratio was 13.21 percent, and leverage ratio was 9.12 percent.

During the second quarter BOK Financial issued $150 million of 40 year, 5.375 percent fixed rate subordinated debt. The debt is callable at any time after 5 years. Proceeds of the debt increased the total capital ratio by 60 basis points.

The company's tangible common equity ratio, a non-GAAP measure, was 9.33 percent at June 30, 2016 and 9.34 percent at March 31, 2016. 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 $350 million or 2.13 percent of outstanding loans and repossessed assets at June 30, 2016 compared to $349 million or 2.18 percent at March 31, 2016. Nonperforming assets that are not guaranteed by U.S. government agencies totaled $251 million or 1.55 percent of outstanding loans and repossessed assets (excluding those guaranteed by U.S. government agencies) at June 30, 2016 compared to $252 million or 1.59 percent at March 31, 2016.

Nonaccruing loans totaled $247 million or 1.51 percent of outstanding loans at June 30, 2016, compared to $242 million or 1.51 percent of outstanding loans at March 31, 2016. The increase in nonaccruing loans was primarily due to an $8.6 million increase in nonaccruing energy loans. New nonaccruing loans identified in the second quarter totaled $33 million, offset by $12 million in payments received, $8.8 million in charge-offs and $3.2 million in foreclosures and repossessions. At June 30, 2016, nonaccruing commercial loans totaled $182 million or 1.76 percent of outstanding commercial loans, nonaccruing commercial real estate loans totaled $7.8 million or 0.22 percent of outstanding commercial real estate loans and nonaccruing residential mortgage loans totaled $57 million or 3.03 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, increased to $501 million at June 30 from $460 million at March 31. The increase largely resulted from an $18 million increase in potential problem energy loans.

Net loans charged off totaled $7.5 million for the second quarter of 2016, compared to $22.5 million in the first quarter of 2016. Gross charge-offs totaled $8.8 million for the second quarter, compared to $24.0 million for the previous quarter. Charge-offs in both the second and first quarters largely came from the energy loan portfolio. Recoveries totaled $1.4 million for the second quarter of 2016 and $1.5 million for the first quarter of 2016.

After evaluating all credit factors, the company recorded a $20.0 million provision for credit losses during the second quarter of 2016. The company recorded a $35.0 million provision for credit losses in the previous quarter. The lower provision reflects improvement in credit metrics over the previous quarter, largely driven by energy price stability and decreased rates of newly identified nonaccruing and potential problem loans.

The combined allowance for credit losses totaled $252 million or 1.54 percent of outstanding loans and 111 percent of nonaccruing loans at June 30, 2016. The allowance for loan losses was $243 million and the accrual for off-balance sheet credit losses was $9.0 million.

Energy Portfolio Credit Quality

The company's $2.8 billion energy portfolio consists of 79 percent of loans to exploration and production companies, 9 percent to energy services companies and 12 percent to midstream and other energy 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 company completed an energy loan portfolio redetermination during the second quarter. The redetermination supported that $136 million of impaired energy loans required no allowance for credit losses based on the adequacy of collateral, including $123 million that are current on all payments due. At June 30, 2016, the portion of the combined allowance for credit losses attributed to the energy portfolio totaled $101 million or 3.58 percent of outstanding energy loans.

Marc Maun, chief credit officer, noted, "We are pleased to see energy asset quality stabilize in the second quarter. Total criticized energy loans decreased from the first quarter and charge-offs were down significantly. We recognize that macroeconomic factors may result in additional pressure on commodity prices but we are pleased with how our portfolio has performed through the extended energy downturn."

Securities and Derivatives

The fair value of the available for sale securities portfolio totaled $8.8 billion at June 30, 2016, a $55 million decrease compared to March 31, 2016. At June 30, 2016, the available for sale portfolio consisted primarily of $5.7 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.

At June 30, 2016, the available for sale securities portfolio had a net unrealized gain of $195 million compared to a net unrealized gain of $155 million at March 31, 2016. The increase in net unrealized gain was primarily due to changes in interest rates during the quarter. Net unrealized gains on residential mortgage-backed securities issued by U.S. government agencies at June 30, 2016 increased $19 million during the second quarter to $123 million. Commercial mortgage-backed securities had a net unrealized gain of $58 million at June 30, 2016, up from $38 million at March 31, 2016.

In the second quarter of 2016, the company recognized $5.3 million of net gains from sales of $326 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 $4.0 million of net gains from sales of $469 million of available for sale securities in the first quarter of 2016.

The company also maintains a portfolio of residential mortgage-backed securities issued by U.S. government agencies and interest rate derivative contracts as an economic hedge of the changes in the fair value of our mortgage servicing rights. Changes in the fair value of mortgage servicing rights are highly dependent on primary mortgage interest rates offered to borrowers and other factors. Changes in the fair value of securities and interest rate derivatives are highly dependent on secondary mortgage rates, or rates required by investors. Changes in the spread between primary and secondary mortgage rates cannot be effectively hedged and can cause significant earnings volatility.

The fair value of mortgage servicing rights decreased by $16.3 million during the second quarter of 2016 as primary mortgage rates fell during the quarter. The fair value of securities and interest rate derivative contracts held as an economic hedge increased by $15.0 million during the quarter due to a decrease in average secondary mortgage and interest rate swap rates. Hedge coverage was increased during the second quarter to improve its effectiveness. The fair value of mortgage servicing rights, net of economic hedges, decreased $11.4 million in the first quarter of 2016, primarily due to falling primary residential mortgage interest rates and we narrowed the forward-looking spread between primary mortgage interest rates and yields on mortgage-backed securities.

Conference Call and Webcast

The company will hold a conference call at 9 a.m. Central time on Wednesday, July 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 # 10088478.

About BOK Financial Corporation

BOK Financial Corporation is a $32 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, BOK Financial Securities, 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 June 30, 2016 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,” “will,” “intends,” variations of such words and similar expressions are intended to identify such forward-looking statements. Management judgments relating to and discussion of the provision and allowance for credit losses, allowance for uncertain tax positions, accruals for loss contingencies and valuation of mortgage servicing rights involve judgments as to expected events and are inherently forward-looking statements. Assessments that 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 changes in commodity prices, interest rates and interest rate relationships, demand for products and services, the degree of competition by traditional and nontraditional competitors, changes in banking regulations, tax laws, prices, levies and assessments, the impact of technological advances, and trends in customer behavior as well as their ability to repay loans. BOK Financial 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)

	June 30, 2016			Mar. 31, 2016			June 30, 2015
ASSETS
Cash and due from banks	$	498,713		$	481,510		$	443,577
Interest-bearing cash and cash equivalents	1,907,838			1,831,162			2,119,072
Trading securities	211,622			279,539			158,209
Investment securities	560,711			576,047			625,664
Available for sale securities	8,830,689			8,886,036			9,000,117
Fair value option securities	263,265			418,887			436,324
Restricted equity securities	319,639			314,590			231,520
Residential mortgage loans held for sale	430,728			332,040			502,571
Loans:
Commercial	10,356,437			10,288,425			9,775,721
Commercial real estate	3,581,966			3,370,507			3,033,497
Residential mortgage	1,880,923			1,869,309			1,884,728
Personal	587,423			494,325			430,190
Total loans	16,406,749			16,022,566			15,124,136
Allowance for loan losses	(243,259		)	(233,156		)	(201,087		)
Loans, net of allowance	16,163,490			15,789,410			14,923,049
Premises and equipment, net	315,199			311,161			284,238
Receivables	173,638			167,209			149,629
Goodwill	382,739			383,789			385,454
Intangible assets, net	43,372			44,944			46,061
Mortgage servicing rights	190,747			196,055			198,694
Real estate and other repossessed assets, net	24,054			29,896			35,499
Derivative contracts, net	883,673			790,146			630,435
Cash surrender value of bank-owned life insurance	307,860			305,510			298,606
Receivable on unsettled securities sales	142,820			5,640			8,693
Other assets	319,653			270,374			248,151
TOTAL ASSETS	$	31,970,450		$	31,413,945		$	30,725,563

LIABILITIES AND EQUITY
Deposits:
Demand	$	8,424,609		$	7,950,675		$	8,156,401
Interest-bearing transaction	9,668,869			9,709,766			9,899,777
Savings	419,262			416,505			379,172
Time	2,247,061			2,341,374			2,624,379
Total deposits	20,759,801			20,418,320			21,059,729
Funds purchased	56,780			62,755			64,677
Repurchase agreements	472,683			630,101			712,033
Other borrowings	5,830,736			5,633,862			4,332,162
Subordinated debentures	371,812			226,385			226,278
Accrued interest, taxes and expense	197,742			148,711			124,568
Due on unsettled securities purchases	11,757			19,508			37,571
Derivative contracts, net	719,159			705,578			620,277
Other liabilities	147,242			212,460			135,435
TOTAL LIABILITIES	28,567,712			28,057,680			27,312,730
Shareholders' equity:
Capital, surplus and retained earnings	3,251,201			3,228,446			3,323,840
Accumulated other comprehensive income	117,632			93,109			51,792
TOTAL SHAREHOLDERS' EQUITY	3,368,833			3,321,555			3,375,632
Non-controlling interests	33,905			34,710			37,201
TOTAL EQUITY	3,402,738			3,356,265			3,412,833
TOTAL LIABILITIES AND EQUITY	$	31,970,450		$	31,413,945		$	30,725,563

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

	Three Months Ended
	June 30, 2016			Mar. 31, 2016			Dec. 31, 2015			Sept. 30, 2015			June 30, 2015
ASSETS
Interest-bearing cash and cash equivalents	$	2,022,028		$	2,052,840		$	1,995,945		$	2,038,611		$	2,002,456
Trading securities	237,808			188,100			150,402			179,098			127,391
Investment securities	562,391			587,465			602,369			616,091			628,489
Available for sale securities	8,890,112			8,951,435			8,971,090			8,942,261			9,063,006
Fair value option securities	368,434			450,478			435,449			429,951			435,294
Restricted equity securities	319,136			294,529			262,461			255,610			221,911
Residential mortgage loans held for sale	401,114			289,743			310,425			401,359			464,269
Loans:
Commercial	10,265,782			10,268,793			10,024,756			9,685,768			9,634,306
Commercial real estate	3,550,611			3,364,076			3,186,629			3,198,200			2,989,615
Residential mortgage	1,864,458			1,865,742			1,835,195			1,847,696			1,857,464
Personal	582,281			493,382			540,418			460,647			423,967
Total loans	16,263,132			15,991,993			15,586,998			15,192,311			14,905,352
Allowance for loan losses	(245,448		)	(234,116		)	(207,156		)	(202,829		)	(198,400		)
Total loans, net	16,017,684			15,757,877			15,379,842			14,989,482			14,706,952
Total earning assets	28,818,707			28,572,467			28,107,983			27,852,463			27,649,768
Cash and due from banks	507,085			505,522			514,629			487,283			492,737
Derivative contracts, net	823,584			632,102			657,780			669,264			475,687
Cash surrender value of bank-owned life insurance	306,318			304,141			301,793			299,424			297,022
Receivable on unsettled securities sales	49,568			115,101			62,228			64,591			94,374
Other assets	1,480,780			1,379,138			1,435,763			1,396,708			1,454,484
TOTAL ASSETS	$	31,986,042		$	31,508,471		$	31,080,176		$	30,769,733		$	30,464,072

LIABILITIES AND EQUITY
Deposits:
Demand	$	8,162,134		$	8,105,756		$	8,312,961		$	7,994,607		$	7,996,717
Interest-bearing transaction	9,590,855			9,756,843			9,527,491			9,760,839			10,063,589
Savings	417,122			397,479			382,284			379,828			381,833
Time	2,297,621			2,366,543			2,482,714			2,557,874			2,651,820
Total deposits	20,467,732			20,626,621			20,705,450			20,693,148			21,093,959
Funds purchased	70,682			112,211			73,220			70,281			63,312
Repurchase agreements	611,264			662,640			623,921			672,085			773,977
Other borrowings	6,076,028			5,583,917			4,957,175			4,779,981			4,001,479
Subordinated debentures	232,795			226,368			226,332			226,296			307,903
Derivative contracts, net	791,313			544,722			632,699			597,908			455,431
Due on unsettled securities purchases	93,812			158,050			248,811			90,135			151,369
Other liabilities	298,170			268,705			251,953			240,704			235,173
TOTAL LIABILITIES	28,641,796			28,183,234			27,719,561			27,370,538			27,082,603
Total equity	3,344,246			3,325,237			3,360,615			3,399,195			3,381,469
TOTAL LIABILITIES AND EQUITY	$	31,986,042		$	31,508,471		$	31,080,176		$	30,769,733		$	30,464,072

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

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2016			2015			2016			2015

Interest revenue	$	202,267		$	191,813		$	404,063		$	376,382
Interest expense	19,655			16,082			38,879			32,925
Net interest revenue	182,612			175,731			365,184			343,457
Provision for credit losses	20,000			4,000			55,000			4,000
Net interest revenue after provision for credit losses	162,612			171,731			310,184			339,457
Other operating revenue:
Brokerage and trading revenue	39,530			36,012			71,871			67,719
Transaction card revenue	34,950			32,778			67,304			63,788
Fiduciary and asset management revenue	34,813			32,712			66,869			64,181
Deposit service charges and fees	22,618			22,328			45,160			44,012
Mortgage banking revenue	38,224			36,846			72,654			76,166
Other revenue	13,352			11,871			25,256			22,672
Total fees and commissions	183,487			172,547			349,114			338,538
Other gains, net	1,307			1,457			2,867			2,212
Gain (loss) on derivatives, net	10,766			(1,032		)	17,904			(121		)
Gain (loss) on fair value option securities, net	4,279			(8,130		)	13,722			(5,483		)
Change in fair value of mortgage servicing rights	(16,283		)	8,010			(44,271		)	(512		)
Gain on available for sale securities, net	5,326			3,433			9,290			7,760
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	188,882			176,285			348,626			342,302
Other operating expense:
Personnel	142,490			132,695			278,333			261,243
Business promotion	6,703			7,765			12,399			13,513
Professional fees and services	14,158			9,560			25,917			19,619
Net occupancy and equipment	19,677			18,927			38,443			37,971
Insurance	7,129			5,116			14,394			10,096
Data processing and communications	32,802			30,655			64,819			60,427
Printing, postage and supplies	3,889			3,553			7,796			7,014
Net losses and operating expenses of repossessed assets	1,588			223			2,658			836
Amortization of intangible assets	2,624			1,090			3,783			2,180
Mortgage banking costs	15,809			8,227			28,188			18,394
Other expense	7,856			9,302			22,895			16,085
Total other operating expense	254,725			227,113			499,625			447,378

Net income before taxes	96,769			120,903			159,185			234,381
Federal and state income taxes	30,497			40,630			51,925			79,014

Net income	66,272			80,273			107,260			155,367
Net income (loss) attributable to non-controlling interests	471			1,043			(1,105		)	1,294
Net income attributable to BOK Financial Corporation shareholders	$	65,801		$	79,230		$	108,365		$	154,073

Average shares outstanding:
Basic	65,245,887			68,096,341			65,271,214			68,175,327
Diluted	65,302,927			68,210,353			65,317,177			68,277,386

Net income per share:
Basic	$	1.00		$	1.15		$	1.64		$	2.23
Diluted	$	1.00		$	1.15		$	1.64		$	2.23

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

	Three Months Ended
	June 30, 2016			Mar. 31, 2016			Dec. 31, 2015			Sept. 30, 2015			June 30, 2015
Capital:
Period-end shareholders' equity	$	3,368,833		$	3,321,555		$	3,230,556		$	3,377,226		$	3,375,632
Risk weighted assets	$	24,191,016		$	23,707,824		$	23,429,897		$	22,706,537		$	22,533,295
Risk-based capital ratios:
Common equity tier 1	11.86		%	12.00		%	12.13		%	12.78		%	13.01		%
Tier 1	11.86		%	12.00		%	12.13		%	12.78		%	13.01		%
Total capital	13.51		%	13.21		%	13.30		%	13.89		%	14.11		%
Leverage ratio	9.06		%	9.12		%	9.25		%	9.55		%	9.75		%
Tangible common equity ratio¹	9.33		%	9.34		%	9.02		%	9.78		%	9.72		%

Common stock:
Book value per share	$	51.15		$	50.21		$	49.03		$	49.88		$	48.96
Tangible book value per share	44.68			43.73			42.51			43.52			42.70
Market value per share:
High	$	65.14		$	60.16		$	74.73		$	70.26		$	71.66
Low	$	51.00		$	43.74		$	58.25		$	57.04		$	59.59
Cash dividends paid	$	28,241		$	28,294		$	28,967		$	28,766		$	28,841
Dividend payout ratio	42.92		%	66.47		%	48.60		%	38.41		%	36.40		%
Shares outstanding, net	65,866,317			66,155,103			65,894,032			67,713,031			68,945,139
Stock buy-back program:
Shares repurchased	305,169			—			1,874,074			1,258,348			—
Amount	$	17,771		$	—		$	119,780		$	80,276		$	—
Average price per share	$	58.23		$	—		$	63.91		$	63.79		$	—

Performance ratios (quarter annualized):
Return on average assets	0.83		%	0.54		%	0.76		%	0.97		%	1.04		%
Return on average equity	8.00		%	5.21		%	7.12		%	8.84		%	9.50		%
Net interest margin	2.63		%	2.65		%	2.64		%	2.61		%	2.61		%
Efficiency ratio	68.45		%	69.05		%	67.93		%	64.34		%	64.21		%

Reconciliation of non-GAAP measures:
¹ Tangible common equity ratio:
Total shareholders' equity	$	3,368,833		$	3,321,555		$	3,230,556		$	3,377,226		$	3,375,632
Less: Goodwill and intangible assets, net	426,111			428,733			429,370			430,460			431,515
Tangible common equity	$	2,942,722		$	2,892,822		$	2,801,186		$	2,946,766		$	2,944,117

Total assets	$	31,970,450		$	31,413,945		$	31,476,128		$	30,566,905		$	30,725,563
Less: Goodwill and intangible assets, net	426,111			428,733			429,370			430,460			431,515
Tangible assets	$	31,544,339		$	30,985,212		$	31,046,758		$	30,136,445		$	30,294,048

Tangible common equity ratio	9.33		%	9.34		%	9.02		%	9.78		%	9.72		%

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

	Three Months Ended
	June 30, 2016			Mar. 31, 2016			Dec. 31, 2015			Sept. 30, 2015			June 30, 2015
Other data:
Fiduciary assets	$	39,924,734		$	39,113,305		$	38,333,638		$	37,780,669		$	38,772,018
Tax equivalent adjustment	$	4,372		$	4,385		$	3,222		$	3,244		$	3,035
Net unrealized gain on available for sale securities	$	195,385		$	155,236		$	38,109		$	144,884		$	89,158

Mortgage banking:
Mortgage servicing portfolio	$	21,178,387		$	20,294,662		$	19,678,226		$	18,928,726		$	17,979,623
Mortgage commitments	$	965,631		$	902,986		$	601,147		$	742,742		$	849,619
Mortgage loans funded for sale	$	1,818,844		$	1,244,015		$	1,365,431		$	1,614,225		$	1,828,230
Mortgage loan refinances to total fundings	44		%	49		%	41		%	30		%	40		%
Mortgage loans sold	$	1,742,582		$	1,239,391		$	1,424,527		$	1,778,099		$	1,861,968

Net realized gains on mortgage loans sold	$	19,205		$	10,779		$	15,705		$	18,968		$	23,856
Change in net unrealized gain on mortgage loans held for sale	3,221			8,198			(5,615		)	(251		)	(743		)
Total production revenue	22,426			18,977			10,090			18,717			23,113
Servicing revenue	15,798			15,453			14,949			14,453			13,733
Total mortgage banking revenue	$	38,224		$	34,430		$	25,039		$	33,170		$	36,846

Gain (loss) on mortgage servicing rights, net of economic hedge:
Gain (loss) on mortgage hedge derivative contracts, net	$	10,766		$	7,138		$	(732	)	$	1,460		$	(1,005	)
Gain (loss) on fair value option securities, net	4,279			9,443			(4,127		)	5,926			(8,130		)
Gain (loss) on economic hedge of mortgage servicing rights	15,045			16,581			(4,859		)	7,386			(9,135		)
Gain (loss) on changes in fair value of mortgage servicing rights	(16,283		)	(27,988		)	7,416			(11,757		)	8,010
Gain (loss) on changes in fair value of mortgage servicing rights, net of economic hedges	$	(1,238	)	$	(11,407	)	$	2,557		$	(4,371	)	$	(1,125	)

Net interest revenue on fair value option securities	$	1,348		$	2,033		$	2,137		$	2,140		$	1,985

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

	Three Months Ended
	June 30, 2016			Mar. 31, 2016			Dec. 31, 2015			Sept. 30, 2015			June 30, 2015

Interest revenue	$	202,267		$	201,796		$	196,782		$	193,664		$	191,813
Interest expense	19,655			19,224			15,521			15,028			16,082
Net interest revenue	182,612			182,572			181,261			178,636			175,731
Provision for credit losses	20,000			35,000			22,500			7,500			4,000
Net interest revenue after provision for credit losses	162,612			147,572			158,761			171,136			171,731
Other operating revenue:
Brokerage and trading revenue	39,530			32,341			30,255			31,582			36,012
Transaction card revenue	34,950			32,354			32,319			32,514			32,778
Fiduciary and asset management revenue	34,813			32,056			31,165			30,807			32,712
Deposit service charges and fees	22,618			22,542			22,813			23,606			22,328
Mortgage banking revenue	38,224			34,430			25,039			33,170			36,846
Other revenue	13,352			11,904			14,233			12,978			11,871
Total fees and commissions	183,487			165,627			155,824			164,657			172,547
Other gains, net	1,307			1,560			2,329			1,161			1,457
Gain (loss) on derivatives, net	10,766			7,138			(732		)	1,283			(1,032		)
Gain (loss) on fair value option securities, net	4,279			9,443			(4,127		)	5,926			(8,130		)
Change in fair value of mortgage servicing rights	(16,283		)	(27,988		)	7,416			(11,757		)	8,010
Gain on available for sale securities, net	5,326			3,964			2,132			2,166			3,433
Total other-than-temporary impairment losses	—			—			(2,114		)	—			—
Portion of loss recognized in other comprehensive income	—			—			387			—			—
Net impairment losses recognized in earnings	—			—			(1,727		)	—			—
Total other operating revenue	188,882			159,744			161,115			163,436			176,285
Other operating expense:
Personnel	142,490			135,843			133,182			129,062			132,695
Business promotion	6,703			5,696			8,416			5,922			7,765
Charitable contributions to BOKF Foundation	—			—			—			796			—
Professional fees and services	14,158			11,759			10,357			10,147			9,560
Net occupancy and equipment	19,677			18,766			19,356			18,689			18,927
Insurance	7,129			7,265			5,415			4,864			5,116
Data processing and communications	32,802			32,017			31,248			30,708			30,655
Printing, postage and supplies	3,889			3,907			3,108			3,376			3,553
Net losses and operating expenses of repossessed assets	1,588			1,070			343			267			223
Amortization of intangible assets	2,624			1,159			1,090			1,089			1,090
Mortgage banking costs	15,809			12,379			11,496			9,107			8,227
Other expense	7,856			15,039			8,547			10,601			9,302
Total other operating expense	254,725			244,900			232,558			224,628			227,113
Net income before taxes	96,769			62,416			87,318			109,944			120,903
Federal and state income taxes	30,497			21,428			26,242			34,128			40,630
Net income	66,272			40,988			61,076			75,816			80,273
Net income (loss) attributable to non-controlling interests	471			(1,576		)	1,475			925			1,043
Net income attributable to BOK Financial Corporation shareholders	$	65,801		$	42,564		$	59,601		$	74,891		$	79,230

Average shares outstanding:
Basic	65,245,887			65,296,541			66,378,380			67,668,076			68,096,341
Diluted	65,302,927			65,331,428			66,467,729			67,762,483			68,210,353
Net income per share:
Basic	$	1.00		$	0.64		$	0.89		$	1.09		$	1.15
Diluted	$	1.00		$	0.64		$	0.89		$	1.09		$	1.15

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

	June 30, 2016		Mar. 31, 2016		Dec. 31, 2015		Sept. 30, 2015		June 30, 2015
Commercial:
Energy	$	2,818,656	$	3,029,420	$	3,097,328	$	2,838,167	$	2,902,143
Services	2,830,864		2,728,891		2,784,276		2,706,624		2,681,126
Healthcare	2,051,146		1,995,425		1,883,380		1,741,680		1,646,025
Wholesale/retail	1,532,957		1,451,846		1,422,064		1,461,936		1,533,730
Manufacturing	595,403		600,645		556,729		555,677		579,549
Other commercial and industrial	527,411		482,198		508,754		493,338		433,148
Total commercial	10,356,437		10,288,425		10,252,531		9,797,422		9,775,721

Commercial real estate:
Retail	795,419		810,522		796,499		769,449		688,447
Multifamily	787,200		733,689		751,085		758,658		711,333
Office	769,112		695,552		637,707		626,151		563,085
Industrial	645,586		564,467		563,169		563,871		488,054
Residential construction and land development	157,576		171,949		160,426		153,510		148,574
Other commercial real estate	427,073		394,328		350,147		363,428		434,004
Total commercial real estate	3,581,966		3,370,507		3,259,033		3,235,067		3,033,497

Residential mortgage:
Permanent mortgage	969,007		948,405		945,336		937,664		946,324
Permanent mortgages guaranteed by U.S. government agencies	192,732		197,350		196,937		192,712		190,839
Home equity	719,184		723,554		734,620		738,619		747,565
Total residential mortgage	1,880,923		1,869,309		1,876,893		1,868,995		1,884,728

Personal	587,423		494,325		552,697		465,957		430,190

Total	$	16,406,749	$	16,022,566	$	15,941,154	$	15,367,441	$	15,124,136

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

	June 30, 2016		Mar. 31, 2016		Dec. 31, 2015		Sept. 30, 2015		June 30, 2015

Bank of Oklahoma:
Commercial	$	3,698,215	$	3,656,034	$	3,782,687	$	3,514,391	$	3,529,406
Commercial real estate	781,458		747,689		739,829		677,372		614,995
Residential mortgage	1,415,766		1,411,409		1,409,114		1,405,235		1,413,690
Personal	246,229		204,158		255,387		185,463		190,909
Total Bank of Oklahoma	6,141,668		6,019,290		6,187,017		5,782,461		5,749,000

Bank of Texas:
Commercial	3,901,632		3,936,809		3,908,425		3,752,193		3,738,742
Commercial real estate	1,311,408		1,211,978		1,204,202		1,257,741		1,158,056
Residential mortgage	222,548		217,539		219,126		222,395		228,683
Personal	233,304		210,456		203,496		194,051		156,260
Total Bank of Texas	5,668,892		5,576,782		5,535,249		5,426,380		5,281,741

Bank of Albuquerque:
Commercial	398,427		402,082		375,839		368,027		392,362
Commercial real estate	322,956		323,059		313,422		312,953		291,953
Residential mortgage	114,226		117,655		120,507		121,232		123,376
Personal	10,569		10,823		11,557		10,477		11,939
Total Bank of Albuquerque	846,178		853,619		821,325		812,689		819,630

Bank of Arkansas:
Commercial	81,227		79,808		92,359		76,044		99,086
Commercial real estate	69,235		66,674		69,320		82,225		85,997
Residential mortgage	6,874		7,212		8,169		8,063		6,999
Personal	7,025		918		819		4,921		5,189
Total Bank of Arkansas	164,361		154,612		170,667		171,253		197,271

Colorado State Bank & Trust:
Commercial	1,076,620		1,030,348		987,076		1,029,694		1,019,454
Commercial real estate	237,569		219,078		223,946		229,835		229,721
Residential mortgage	59,425		52,961		53,782		50,138		54,135
Personal	35,064		24,497		23,384		30,683		30,373
Total Colorado State Bank & Trust	1,408,678		1,326,884		1,288,188		1,340,350		1,333,683

Bank of Arizona:
Commercial	670,814		656,527		606,733		608,235		572,477
Commercial real estate	639,112		605,383		507,523		482,918		472,061
Residential mortgage	38,998		40,338		44,047		41,722		37,493
Personal	24,248		18,372		31,060		17,609		12,875
Total Bank of Arizona	1,373,172		1,320,620		1,189,363		1,150,484		1,094,906

Bank of Kansas City:
Commercial	529,502		526,817		499,412		448,838		424,194
Commercial real estate	220,228		196,646		200,791		192,023		180,714
Residential mortgage	23,086		22,195		22,148		20,210		20,352
Personal	30,984		25,101		26,994		22,753		22,645
Total Bank of Kansas City	803,800		770,759		749,345		683,824		647,905

TOTAL BOK FINANCIAL	$	16,406,749	$	16,022,566	$	15,941,154	$	15,367,441	$	15,124,136

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

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

	June 30, 2016		March 31, 2016		Dec. 31, 2015		Sept. 30, 2015		June 30, 2015
Bank of Oklahoma:
Demand	$	4,020,181	$	3,813,128	$	4,133,520	$	3,834,145	$	4,068,088
Interest-bearing:
Transaction	5,741,302		5,706,067		5,971,819		5,783,258		6,018,381
Savings	247,984		246,122		226,733		225,580		225,694
Time	1,167,271		1,198,022		1,202,274		1,253,137		1,380,566
Total interest-bearing	7,156,557		7,150,211		7,400,826		7,261,975		7,624,641
Total Bank of Oklahoma	11,176,738		10,963,339		11,534,346		11,096,120		11,692,729

Bank of Texas:
Demand	2,677,253		2,571,883		2,627,764		2,689,493		2,565,234
Interest-bearing:
Transaction	2,035,634		2,106,905		2,132,099		1,996,223		2,020,817
Savings	83,862		83,263		77,902		74,674		74,373
Time	516,231		530,657		549,740		554,106		536,844
Total interest-bearing	2,635,727		2,720,825		2,759,741		2,625,003		2,632,034
Total Bank of Texas	5,312,980		5,292,708		5,387,505		5,314,496		5,197,268

Bank of Albuquerque:
Demand	530,853		557,200		487,286		520,785		508,224
Interest-bearing:
Transaction	573,690		560,684		563,723		529,862		537,156
Savings	49,200		47,187		43,672		41,380		41,802
Time	250,068		259,630		267,821		281,426		285,890
Total interest-bearing	872,958		867,501		875,216		852,668		864,848
Total Bank of Albuquerque	1,403,811		1,424,701		1,362,502		1,373,453		1,373,072

Bank of Arkansas:
Demand	30,607		31,318		27,252		25,397		19,731
Interest-bearing:
Transaction	278,335		265,803		202,857		290,728		284,349
Savings	1,853		1,929		1,747		1,573		1,712
Time	18,911		21,035		24,983		26,203		28,220
Total interest-bearing	299,099		288,767		229,587		318,504		314,281
Total Bank of Arkansas	329,706		320,085		256,839		343,901		334,012

Colorado State Bank & Trust:
Demand	528,124		413,506		497,318		430,675		403,491
Interest-bearing:
Transaction	625,240		610,077		616,697		655,206		601,741
Savings	31,509		33,108		31,927		31,398		31,285
Time	254,164		271,475		296,224		320,279		322,432
Total interest-bearing	910,913		914,660		944,848		1,006,883		955,458
Total Colorado State Bank & Trust	1,439,037		1,328,166		1,442,166		1,437,558		1,358,949

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

	June 30, 2016		March 31, 2016		Dec. 31, 2015		Sept. 30, 2015		June 30, 2015
Bank of Arizona:
Demand	396,837		341,828		326,324		306,425		352,024
Interest-bearing:
Transaction	302,297		313,825		358,556		293,319		298,073
Savings	3,198		3,277		2,893		4,121		2,726
Time	28,681		29,053		29,498		26,750		28,165
Total interest-bearing	334,176		346,155		390,947		324,190		328,964
Total Bank of Arizona	731,013		687,983		717,271		630,615		680,988

Bank of Kansas City:
Demand	240,754		221,812		197,424		234,847		239,609
Interest-bearing:
Transaction	112,371		146,405		153,203		150,253		139,260
Savings	1,656		1,619		1,378		1,570		1,580
Time	11,735		31,502		35,524		36,630		42,262
Total interest-bearing	125,762		179,526		190,105		188,453		183,102
Total Bank of Kansas City	366,516		401,338		387,529		423,300		422,711

TOTAL BOK FINANCIAL	$	20,759,801	$	20,418,320	$	21,088,158	$	20,619,443	$	21,059,729

NET INTEREST MARGIN TREND -- UNAUDITED BOK FINANCIAL CORPORATION

	Three Months Ended
	June 30, 2016		Mar. 31, 2016		Dec. 31, 2015		Sept. 30, 2015		June 30, 2015

TAX-EQUIVALENT ASSETS YIELDS
Interest-bearing cash and cash equivalents	0.51	%	0.53	%	0.29	%	0.28	%	0.25	%
Trading securities	1.89	%	2.47	%	2.86	%	2.70	%	1.85	%
Investment securities:
Taxable	5.41	%	5.53	%	5.41	%	5.49	%	5.49	%
Tax-exempt	2.25	%	2.22	%	1.53	%	1.54	%	1.56	%
Total investment securities	3.52	%	3.51	%	3.03	%	3.04	%	3.05	%
Available for sale securities:
Taxable	2.01	%	2.06	%	2.02	%	1.99	%	1.92	%
Tax-exempt	5.06	%	4.95	%	4.22	%	4.15	%	4.21	%
Total available for sale securities	2.04	%	2.08	%	2.04	%	2.01	%	1.94	%
Fair value option securities	2.19	%	2.38	%	2.32	%	2.30	%	2.17	%
Restricted equity securities	4.84	%	5.85	%	5.95	%	5.95	%	5.82	%
Residential mortgage loans held for sale	3.53	%	3.75	%	3.85	%	3.79	%	3.37	%
Loans	3.58	%	3.57	%	3.55	%	3.54	%	3.65	%
Allowance for loan losses
Loans, net of allowance	3.63	%	3.63	%	3.60	%	3.59	%	3.70	%
Total tax-equivalent yield on earning assets	2.91	%	2.92	%	2.86	%	2.83	%	2.84	%

COST OF INTEREST-BEARING LIABILITIES
Interest-bearing deposits:
Interest-bearing transaction	0.14	%	0.14	%	0.09	%	0.08	%	0.09	%
Savings	0.10	%	0.09	%	0.09	%	0.10	%	0.11	%
Time	1.16	%	1.21	%	1.26	%	1.33	%	1.36	%
Total interest-bearing deposits	0.33	%	0.34	%	0.32	%	0.34	%	0.35	%
Funds purchased	0.19	%	0.27	%	0.11	%	0.08	%	0.08	%
Repurchase agreements	0.05	%	0.05	%	0.04	%	0.03	%	0.03	%
Other borrowings	0.57	%	0.56	%	0.38	%	0.30	%	0.31	%
Subordinated debt	1.52	%	1.26	%	1.13	%	1.04	%	2.21	%
Total cost of interest-bearing liabilities	0.41	%	0.40	%	0.34	%	0.32	%	0.35	%
Tax-equivalent net interest revenue spread	2.50	%	2.52	%	2.52	%	2.51	%	2.49	%
Effect of noninterest-bearing funding sources and other	0.13	%	0.13	%	0.12	%	0.10	%	0.12	%
Tax-equivalent net interest margin	2.63	%	2.65	%	2.64	%	2.61	%	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 -- UNAUDITED BOK FINANCIAL CORPORATION (in thousands, except ratios)

	Three Months Ended
	June 30, 2016		Mar. 31, 2016		Dec. 31, 2015		Sept. 30, 2015		June 30, 2015
Nonperforming assets:
Nonaccruing loans:
Commercial	$	181,989	$	174,652	$	76,424	$	33,798	$	24,233
Commercial real estate	7,780		9,270		9,001		10,956		20,139
Residential mortgage	57,061		57,577		61,240		44,099		45,969
Personal	354		331		463		494		550
Total nonaccruing loans	247,184		241,830		147,128		89,347		90,891
Accruing renegotiated loans guaranteed by U.S. government agencies	78,806		77,597		74,049		81,598		82,368
Real estate and other repossessed assets	24,054		29,896		30,731		33,116		35,499
Total nonperforming assets	$	350,044	$	349,323	$	251,908	$	204,061	$	208,758
Total nonperforming assets excluding those guaranteed by U.S. government agencies	$	251,497	$	252,176	$	155,959	$	118,578	$	122,673

Nonaccruing loans by loan class:
Commercial:
Energy	$	168,145	$	159,553	$	61,189	$	17,880	$	6,841
Services	9,388		9,512		10,290		10,692		10,944
Wholesale / retail	2,772		3,685		2,919		3,058		4,166
Manufacturing	293		312		331		352		379
Healthcare	875		1,023		1,072		1,218		1,278
Other commercial and industrial	516		567		623		598		625
Total commercial	181,989		174,652		76,424		33,798		24,233
Commercial real estate:
Residential construction and land development	4,261		4,789		4,409		4,748		9,367
Retail	1,265		1,302		1,319		1,648		3,826
Office	606		629		651		684		2,360
Multifamily	65		250		274		185		195
Industrial	76		76		76		76		76
Other commercial real estate	1,507		2,224		2,272		3,615		4,315
Total commercial real estate	7,780		9,270		9,001		10,956		20,139
Residential mortgage:
Permanent mortgage	27,228		27,497		28,984		30,660		32,187
Permanent mortgage guaranteed by U.S. government agencies	19,741		19,550		21,900		3,885		3,717
Home equity	10,092		10,530		10,356		9,554		10,065
Total residential mortgage	57,061		57,577		61,240		44,099		45,969
Personal	354		331		463		494		550
Total nonaccruing loans	$	247,184	$	241,830	$	147,128	$	89,347	$	90,891

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

	Three Months Ended
	June 30, 2016			Mar. 31, 2016			Dec. 31, 2015			Sept. 30, 2015			June 30, 2015

Performing loans 90 days past due¹	$	2,899		$	8,019		$	1,207		$	101		$	99

Gross charge-offs	$	(8,845	)	$	(23,991	)	$	(4,851	)	$	(5,274	)	$	(2,877	)
Recoveries	1,386			1,519			1,870			3,521			2,206
Net charge-offs	$	(7,459	)	$	(22,472	)	$	(2,981	)	$	(1,753	)	$	(671	)

Provision for credit losses	$	20,000		$	35,000		$	22,500		$	7,500		$	4,000

Allowance for loan losses to period end loans	1.48		%	1.46		%	1.41		%	1.33		%	1.33		%
Combined allowance for credit losses to period end loans	1.54		%	1.50		%	1.43		%	1.35		%	1.34		%
Nonperforming assets to period end loans and repossessed assets	2.13		%	2.18		%	1.58		%	1.33		%	1.38		%
Net charge-offs (annualized) to average loans	0.18		%	0.56		%	0.08		%	0.05		%	0.02		%
Allowance for loan losses to nonaccruing loans¹	106.95		%	104.89		%	180.09		%	238.84		%	230.67		%
Combined allowance for credit losses to nonaccruing loans¹	110.93		%	107.87		%	181.46		%	243.05		%	231.68		%


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

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

Attached files