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

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8-K - 8-K - BOK FINANCIAL CORP	a20160930bokf8-k.htm

Exhibit 99 (a)

NASD: BOKF

For Further Information Contact:

Joseph Crivelli

Investor Relations

(918) 595-3027

BOK Financial Reports Quarterly Earnings of $74 Million

Board of Directors Approves Increase in Quarterly Cash Dividend

TULSA, Okla. (Wednesday, October 26, 2016) - BOK Financial Corporation reported net income of $74.3 million or $1.13 per diluted share for the third quarter of 2016. Net income was $65.8 million or $1.00 per diluted share for the second quarter of 2016 and $74.9 million or $1.09 per diluted share for the third quarter of 2015.

Steven G. Bradshaw, president and chief executive officer of BOK Financial, stated, “Earnings were strong in the third quarter due to record revenue combined with lower credit costs as the commodities market continues to normalize. While loan growth was a bit softer than expected, this was in large part due to one significant paydown in the energy portfolio, and we continue to forecast mid-single-digit annual loan growth for the foreseeable future.”

Bradshaw continued, “In 2016 we have seen elevated expenses from a variety of sources including foreclosure and loss mitigation in mortgage, the settlement of litigation issues, and continued investment in systems and technology. While we have tactically reduced expenses and headcount over the past few years, in October we took further decisive action to align expenses with expected revenue growth. By reducing contract labor, not backfilling some open positions, and right-sizing our workforce, we believe we will reduce annual expenses by approximately $20 million in 2017.”

Third Quarter 2016 Highlights


•	Net interest revenue totaled $187.8 million for the third quarter of 2016, up $5.2 million over the second quarter of 2016. Net interest margin was 2.64 percent for the third quarter of 2016, compared to 2.63 percent for the second quarter of 2016. Average earning assets increased $260 million during the third quarter of 2016, including a $185 million increase in average loan balances.

•

Fees and commissions revenue totaled $185.3 million for the third quarter of 2016, an increase of $1.8 million over the prior quarter. Mortgage banking revenue grew by $4.3 million and deposit service charges and fees increased $1.1 million. Brokerage and trading revenue decreased $1.5 million, transaction card revenue decreased $1.0 million and fiduciary and asset management revenue decreased $740 thousand.

•

Operating expense was $262.1 million for the third quarter, an increase of $7.4 million over the previous quarter, primarily due to a $5.0 million accrual related to a legal settlement during the quarter. All other non-personnel expenses increased $1.7 million. Deposit insurance expense was up $2.3 million, offset by a $2.5 million decrease in net losses and operating expenses of repossessed assets compared to the prior quarter. Personnel expense increased $695 thousand.

•

Income tax expense was reduced by $2.6 million during the third quarter of 2016 due to the expiration of the statute of limitations on uncertain tax positions and the annual adjustment of the previous year's current income tax liability to amounts on filed tax returns for 2015. The effective tax rate was 29.8 percent for the third quarter of 2016. Excluding these adjustments the effective tax rate would have been 32.3 percent for the third quarter, up from 31.5 percent for the second quarter of 2016.

•

A $10.0 million provision for credit losses was recorded in the third quarter of 2016 compared to a $20.0 million provision in the second 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 $6.1 million in the third quarter of 2016, compared to $7.5 million in the previous quarter.

•

The combined allowance for credit losses totaled $256 million or 1.56 percent of outstanding loans at September 30, 2016 compared to $252 million or 1.54 percent of outstanding loans at June 30, 2016. The portion of the combined allowance attributed to the energy portfolio totaled 3.67 percent of outstanding energy loans at September 30, 2016, an increase from 3.58 percent of outstanding energy loans at June 30, 2016.

•

Nonperforming assets that are not guaranteed by U.S. government agencies totaled $253 million or 1.55 percent of outstanding loans and repossessed assets (excluding those guaranteed by U.S. government agencies) at September 30, 2016 and $251 million or 1.55 percent of outstanding loans and repossessed assets (excluding those guaranteed by U.S. government agencies) at June 30, 2016. Nonaccruing energy loans decreased $25 million during the third quarter, partially offset by a $21 million increase in nonaccruing other commercial and industrial sector loans.


•	Average loans increased by $185 million over the previous quarter. Commercial real estate loans grew by $239 million, partially offset by a $156 million decrease in average commercial loan balances. Period-end outstanding loan balances increased $58 million to $16.5 billion at September 30, 2016.


•	Average deposits increased $297 million over the previous quarter primarily due to growth in demand deposit balances of $335 million. Period-end deposits were $21.1 billion at September 30, 2016, an increase of $336 million from June 30, 2016.

•

The common equity Tier 1 capital ratio at September 30, 2016 was 11.99 percent. Other regulatory capital ratios were Tier 1 capital ratio, 11.99 percent, total capital ratio, 13.65 percent and leverage ratio, 9.06 percent. At June 30, 2016, the common equity Tier 1 capital ratio was 11.86 percent, the Tier 1 capital ratio was 11.86 percent, total capital ratio was 13.51 percent, and leverage ratio was 9.06 percent.


•	The company paid a regular quarterly cash dividend of $28 million or $0.43 per common share during the third quarter of 2016. On October 25, 2016, the board of directors approved an increase in the quarterly cash dividend to $0.44 per common share payable on or about November 28, 2016 to shareholders of record as of November 14, 2016.

Net Interest Revenue

Net interest revenue was $187.8 million for the third quarter of 2016, up $5.2 million over the second quarter of 2016.

Net interest margin was 2.64 percent for the third quarter of 2016, an increase of 1 basis point over the second quarter of 2016. The yield on average earning assets was 2.93 percent, an increase of 2 basis points. The loan portfolio yield increased 5 basis points to 3.63 percent primarily due to increases in the 30 day and 90 day LIBOR and improved energy loan yields. The yield on the available for sale securities portfolio decreased 3 basis points to 2.01 percent. Funding costs were 0.44 percent, up 3 basis points.

Average earning assets increased $260 million during the third quarter of 2016. Average loan balances increased $185 million, primarily due to growth in commercial real estate balances. Average trading securities balances increased $129 million and the average balance of residential mortgage loans held for sale was up $45 million, partially offset by a $101 million decrease in the balance of fair value option securities held as an economic hedge of our mortgage servicing rights. Average interest-bearing deposit balances decreased $38 million compared to the second quarter of 2016. The average balance of borrowed funds increased $175 million.

Fees and Commissions Revenue

Fees and commissions revenue totaled $185.3 million for the third quarter of 2016, an increase of $1.8 million over the second quarter of 2016.

Mortgage banking revenue totaled $42.5 million for the third quarter of 2016, a $4.3 million increase over the second quarter of 2016. Revenue from mortgage loan production increased $3.6 million due to growth in the volume of mortgage loans sold and increased gains on sale, partially offset by a decrease in mortgage loan commitments during the quarter. Average primary mortgage interest rates were 14 basis points lower than in the second quarter of 2016. Total mortgage loans originated during the third quarter increased $46 million or 3 percent over the prior quarter.

Outstanding mortgage loan commitments at September 30 decreased $335 million or 35 percent compared to June 30. The Company made a strategic decision to exit the correspondent lending channel based on careful consideration of continued pressure on margin due to the competitive landscape and increasing regulatory costs. This strategic decision decreased outstanding commitments by $414 million. Mortgage loan commitments continued to grow in our retail and HomeDirect online channels. The correspondent lending channel represented $4.6 million of the $26.0 million in total mortgage loan production revenue for the third quarter.

Brokerage and trading revenue decreased $1.5 million, primarily due to a $1.7 million decrease related to lower loan syndication fees and bond underwriting fees, which are both dependent on the timing and volume of completed transactions. Trading revenue decreased $307 thousand compared to the second quarter. The Company added a new group trading in U.S. government agency residential mortgage-backed securities and related to-be-announced securities. The addition of this group added $1.9 million of trading revenue during the third quarter and $426 million to the trading securities portfolio at September 30. This increase was partially offset by lower volumes of residential mortgage-backed and municipal securities sold to our institutional customers. Retail brokerage fees and customer hedging revenue were both up over the prior quarter.

Deposit service charges and fees were up $1.1 million over the prior quarter due to seasonal increases in overdraft volumes and higher commercial account service charge revenue. Transaction card revenue decreased $1.0 million, primarily due to a $1.2 million customer early termination fee recognized in the second quarter. A $740 thousand decrease in fiduciary and asset management revenue was largely due to an annual assessment of tax preparation fees in the second quarter, partially offset by growth in assets under management during the third quarter.

Operating Expense

Total operating expense was $262.1 million for the third quarter of 2016, an increase of $7.4 million over the second quarter of 2016. The Company agreed to settle a class action lawsuit concerning the manner in which the Company posted charges to certain deposit accounts for $7.8 million, $5.0 million of which was accrued in the third quarter.

Personnel expense increased by $695 thousand over the second quarter of 2016. Increased regular compensation expense and revenue-driven cash-based incentive compensation expense, was offset by a decrease in share-based compensation expense and a seasonal decrease in payroll tax expense.

Excluding the impact of the legal settlement accrual, non-personnel expense increased $1.7 million over the second quarter of 2016. Deposit insurance expense was up $2.3 million. The deposit insurance fund reached a target of 1.15 percent of insured deposits during the third quarter which triggered a new surcharge for banks with more than $10 billion in assets to bring the deposit insurance fund to 1.35 percent of insured deposits. This impact was partially offset by a reduction in the base rate.

Loans, Deposits and Capital

Loans

Outstanding loans were $16.5 billion at September 30, 2016, an increase of $58 million over the previous quarter. Growth in commercial real estate and personal loans, was partially offset by a decrease in commercial loan balances compared to the prior quarter.

Outstanding commercial loan balances decreased $236 million compared to June 30, 2016. Energy loan balances decreased $298 million compared to June 30, 2016 largely due to payments received from a single borrower. Unfunded energy loan commitments increased by $326 million during the third quarter to $2.3 billion. Service sector loans grew by $106 million, wholesale/retail sector loans increased $69 million and healthcare sector loans were up $34 million over the prior quarter. Manufacturing loans decreased $96 million and other commercial and industrial loans decreased $51 million.

Commercial real estate loans grew by $212 million over June 30, 2016. Loans secured by industrial facilities grew by $192 million and were broadly distributed across the Texas, Arizona, Colorado and Oklahoma markets. Multifamily residential loans increased $87 million primarily in the Kansas/Missouri, Texas and Arizona markets. Other commercial real estate loans decreased $59 million and loans secured by office buildings decreased $16 million.

Deposits

Period-end deposits totaled $21.1 billion at September 30, 2016, an increase of $336 million over June 30, 2016. Demand deposit balances increased by $257 million and interest-bearing transaction account balances increased $155 million, partially offset by a $77 million decrease in time deposits. Among the lines of business, Consumer Banking deposits increased $166 million, Wealth Management deposits increased by $105 million and Commercial Banking deposits increased $61 million. Growth in Consumer Banking deposits includes escrow funds associated with mortgage loan servicing. These deposits tend to grow throughout the year and are largely disbursed near year end. Growth in Wealth Management deposits include funds being held temporarily in anticipation of money market reforms. The net increase in Commercial Banking deposits was due to increased balances held by our healthcare, small business and treasury services customers, partially offset by a decrease in balances held by energy customers.

Capital

The company's common equity Tier 1 capital ratio was 11.99 percent at September 30, 2016. In addition, the company's Tier 1 capital ratio was 11.99 percent, total capital ratio was 13.65 percent and leverage ratio was 9.06 percent at September 30, 2016. At June 30, 2016, the company's common equity Tier 1 capital ratio was 11.86 percent, Tier 1 capital ratio was 11.86 percent, total capital ratio was 13.51 percent, and leverage ratio was 9.06 percent.

The company's tangible common equity ratio, a non-GAAP measure, was 9.19 percent at September 30, 2016 and 9.33 percent at June 30, 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 $349 million or 2.12 percent of outstanding loans and repossessed assets at September 30, 2016 compared to $350 million or 2.13 percent at June 30, 2016. Nonperforming assets that are not guaranteed by U.S. government agencies totaled $253 million or 1.55 percent of outstanding loans and repossessed assets (excluding those guaranteed by U.S. government agencies) at September 30, 2016 compared to $251 million or 1.55 percent at June 30, 2016.

Nonaccruing loans totaled $237 million or 1.44 percent of outstanding loans at September 30, 2016, compared to $247 million or 1.51 percent of outstanding loans at June 30, 2016. The decrease in nonaccruing loans was primarily due to a $25 million decrease in nonaccruing energy loans, partially offset by a $21 million increase in nonaccruing other commercial and industrial sector loans. New nonaccruing loans identified in the third quarter totaled $29 million, offset by $15 million in foreclosures and repossessions, $11 million in payments received and $8.1 million in charge-offs. At September 30, 2016, nonaccruing commercial loans totaled $176 million or 1.74 percent of outstanding commercial loans, nonaccruing commercial real estate loans totaled $7.4 million or 0.19 percent of outstanding commercial real estate loans and nonaccruing residential mortgage loans totaled $52 million or 2.80 percent of outstanding residential mortgage loans.

Potential problem loans, which are defined as performing loans that based on known information cause management concern as to the borrowers' ability to continue to perform, decreased to $478 million at September 30 from $501 million at June 30. The decrease largely resulted from a decrease in potential problem energy loans, partially offset by an increase in potential problem services loans.

Net loans charged off totaled $6.1 million for the third quarter of 2016, compared to $7.5 million in the second quarter of 2016. Gross charge-offs totaled $8.1 million for the third quarter, compared to $8.8 million for the previous quarter. Charge-offs in both quarters largely came from the energy loan portfolio. Recoveries totaled $2.0 million for the third quarter of 2016 and $1.4 million for the second quarter of 2016.

After evaluating all credit factors, the company recorded a $10.0 million provision for credit losses during the third quarter of 2016. The company recorded a $20.0 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 $256 million or 1.56 percent of outstanding loans and 116 percent of nonaccruing loans at September 30, 2016. The allowance for loan losses was $245 million and the accrual for off-balance sheet credit losses was $11.1 million.

Energy Portfolio Credit Quality

The company's $2.5 billion energy portfolio consists of 79 percent of loans to exploration and production companies, 8 percent to energy services companies and 13 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.

Credit quality metrics in the energy portfolio continued to improve during the third quarter. Nonaccruing energy loans decreased $25 million to $143 million or 5.67 percent of outstanding energy loans. Potential problem energy loans decreased $60 million to $361 million and other loans especially mentioned decreased $50 million to $147 million. Approximately $100 million of the nonaccruing energy loans require no allowance for loan losses based on underlying collateral values and $85 million of the nonaccruing energy loans are current on all payments due. At September 30, 2016, the portion of the combined allowance for credit losses attributed to the energy portfolio totaled $92 million or 3.67 percent of outstanding energy loans compared to $101 million or 3.58 percent of outstanding energy loans at June 30, 2016.

Marc Maun, chief credit officer added, “There were continued positive trends in our energy portfolio in the third quarter. Line of credit utilization, criticized loans and charge-offs were all down, and while we saw a decrease in overall commitments and outstandings, our energy banking team booked $200 million of new commitments to high–quality borrowers. If oil and natural gas prices remain in recent ranges, we expect the positive trends to continue in the fourth quarter.”

Securities and Derivatives

The fair value of the available for sale securities portfolio totaled $8.9 billion at September 30, 2016, a $32 million increase compared to June 30, 2016. At September 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 $3.0 billion of commercial mortgage-backed securities fully backed by U.S. government agencies.

At September 30, 2016, the available for sale securities portfolio had a net unrealized gain of $160 million compared to a net unrealized gain of $195 million at June 30, 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 September 30, 2016 decreased $25 million during the third quarter to $98 million. Commercial mortgage-backed securities had a net unrealized gain of $44 million at September 30, 2016, compared to $58 million at June 30, 2016.

The company also maintains a portfolio of U.S. Treasury securities, 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 increased by $2.3 million during the third quarter of 2016 primarily due to changes in short term interest rates. The fair value of securities and interest rate derivative contracts held as an economic hedge decreased by $1.1 million during the quarter due to an increase in interest rate swap rates, partially offset by a decrease in average secondary mortgage rates. The fair value of mortgage servicing rights, net of economic hedges, decreased $1.2 million in the second quarter of 2016, primarily due to a decrease in secondary mortgage and interest rate swap rates. Hedge coverage was increased during the second quarter to improve its effectiveness.

Conference Call and Webcast

The company will hold a conference call at 9 a.m. Central time on Wednesday, October 26, 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 1-201-689-8597. A conference call and webcast replay will also be available shortly after conclusion of the live call at www.bokf.com or by dialing 1-201-612-7415

and referencing conference ID # 13646085.

About BOK Financial Corporation

BOK Financial Corporation is a $33 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 September 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)

	Sept. 30, 2016			June 30, 2016			Sept. 30, 2015
ASSETS
Cash and due from banks	$	535,916		$	498,713		$	489,268
Interest-bearing cash and cash equivalents	2,080,978			1,907,838			1,830,105
Trading securities	546,615			211,622			181,131
Investment securities	546,457			560,711			612,384
Available for sale securities	8,862,283			8,830,689			8,801,089
Fair value option securities	222,409			263,265			427,760
Restricted equity securities	333,391			319,639			263,587
Residential mortgage loans held for sale	447,592			430,728			357,414
Loans:
Commercial	10,120,163			10,356,437			9,797,422
Commercial real estate	3,793,598			3,581,966			3,235,067
Residential mortgage	1,872,793			1,880,923			1,868,995
Personal	678,232			587,423			465,957
Total loans	16,464,786			16,406,749			15,367,441
Allowance for loan losses	(245,103		)	(243,259		)	(204,116		)
Loans, net of allowance	16,219,683			16,163,490			15,163,325
Premises and equipment, net	318,196			315,199			294,669
Receivables	650,368			173,638			151,451
Goodwill	382,739			382,739			385,461
Intangible assets, net	41,977			43,372			44,999
Mortgage servicing rights	203,621			190,747			200,049
Real estate and other repossessed assets, net	31,941			24,054			33,116
Derivative contracts, net	655,078			883,673			726,159
Cash surrender value of bank-owned life insurance	310,211			307,860			300,981
Receivable on unsettled securities sales	19,642			142,820			30,009
Other assets	370,134			319,653			273,948
TOTAL ASSETS	$	32,779,231		$	31,970,450		$	30,566,905

LIABILITIES AND EQUITY
Deposits:
Demand	$	8,681,364		$	8,424,609		$	8,041,767
Interest-bearing transaction	9,824,160			9,668,869			9,698,849
Savings	420,349			419,262			380,296
Time	2,169,631			2,247,061			2,498,531
Total deposits	21,095,504			20,759,801			20,619,443
Funds purchased	109,031			56,780			62,297
Repurchase agreements	504,573			472,683			555,677
Other borrowings	6,533,443			5,830,736			4,635,150
Subordinated debentures	144,631			371,812			226,314
Accrued interest, taxes and expense	191,276			197,742			158,048
Due on unsettled securities purchases	677			11,757			98,351
Derivative contracts, net	573,987			719,159			636,115
Other liabilities	193,698			147,242			159,348
TOTAL LIABILITIES	29,346,820			28,567,712			27,150,743
Shareholders' equity:
Capital, surplus and retained earnings	3,302,584			3,251,201			3,291,450
Accumulated other comprehensive income	95,727			117,632			85,776
TOTAL SHAREHOLDERS' EQUITY	3,398,311			3,368,833			3,377,226
Non-controlling interests	34,100			33,905			38,936
TOTAL EQUITY	3,432,411			3,402,738			3,416,162
TOTAL LIABILITIES AND EQUITY	$	32,779,231		$	31,970,450		$	30,566,905

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

	Three Months Ended
	Sept. 30,2016			June 30, 2016			Mar. 31, 2016			Dec. 31, 2015			Sept. 30,2015
ASSETS
Interest-bearing cash and cash equivalents	$	2,047,991		$	2,022,028		$	2,052,840		$	1,995,945		$	2,038,611
Trading securities	366,545			237,808			188,100			150,402			179,098
Investment securities	552,592			562,391			587,465			602,369			616,091
Available for sale securities	8,862,590			8,890,112			8,951,435			8,971,090			8,942,261
Fair value option securities	266,998			368,434			450,478			435,449			429,951
Restricted equity securities	335,812			319,136			294,529			262,461			255,610
Residential mortgage loans held for sale	445,930			401,114			289,743			310,425			401,359
Loans:
Commercial	10,109,692			10,265,782			10,268,793			10,024,756			9,685,768
Commercial real estate	3,789,673			3,550,611			3,364,076			3,186,629			3,198,200
Residential mortgage	1,870,855			1,864,458			1,865,742			1,835,195			1,847,696
Personal	677,530			582,281			493,382			540,418			460,647
Total loans	16,447,750			16,263,132			15,991,993			15,586,998			15,192,311
Allowance for loan losses	(247,901		)	(245,448		)	(234,116		)	(207,156		)	(202,829		)
Total loans, net	16,199,849			16,017,684			15,757,877			15,379,842			14,989,482
Total earning assets	29,078,307			28,818,707			28,572,467			28,107,983			27,852,463
Cash and due from banks	511,534			507,085			505,522			514,629			487,283
Derivative contracts, net	766,671			823,584			632,102			657,780			669,264
Cash surrender value of bank-owned life insurance	308,670			306,318			304,141			301,793			299,424
Receivable on unsettled securities sales	259,906			49,568			115,101			62,228			64,591
Other assets	1,721,385			1,480,780			1,379,138			1,435,763			1,396,708
TOTAL ASSETS	$	32,646,473		$	31,986,042		$	31,508,471		$	31,080,176		$	30,769,733

LIABILITIES AND EQUITY
Deposits:
Demand	$	8,497,037		$	8,162,134		$	8,105,756		$	8,312,961		$	7,994,607
Interest-bearing transaction	9,650,618			9,590,855			9,756,843			9,527,491			9,760,839
Savings	420,009			417,122			397,479			382,284			379,828
Time	2,197,350			2,297,621			2,366,543			2,482,714			2,557,874
Total deposits	20,765,014			20,467,732			20,626,621			20,705,450			20,693,148
Funds purchased	68,280			70,682			112,211			73,220			70,281
Repurchase agreements	522,822			611,264			662,640			623,921			672,085
Other borrowings	6,342,369			6,076,028			5,583,917			4,957,175			4,779,981
Subordinated debentures	255,890			232,795			226,368			226,332			226,296
Derivative contracts, net	747,187			791,313			544,722			632,699			597,908
Due on unsettled securities purchases	200,574			93,812			158,050			248,811			90,135
Other liabilities	352,671			298,170			268,705			251,953			240,704
TOTAL LIABILITIES	29,254,807			28,641,796			28,183,234			27,719,561			27,370,538
Total equity	3,391,666			3,344,246			3,325,237			3,360,615			3,399,195
TOTAL LIABILITIES AND EQUITY	$	32,646,473		$	31,986,042		$	31,508,471		$	31,080,176		$	30,769,733

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

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2016			2015			2016			2015

Interest revenue	$	209,317		$	193,664		$	613,380		$	570,046
Interest expense	21,471			15,028			60,350			47,953
Net interest revenue	187,846			178,636			553,030			522,093
Provision for credit losses	10,000			7,500			65,000			11,500
Net interest revenue after provision for credit losses	177,846			171,136			488,030			510,593
Other operating revenue:
Brokerage and trading revenue	38,006			31,582			109,877			99,301
Transaction card revenue	33,933			32,514			101,237			96,302
Fiduciary and asset management revenue	34,073			30,807			100,942			94,988
Deposit service charges and fees	23,668			23,606			68,828			67,618
Mortgage banking revenue	42,548			33,170			115,202			109,336
Other revenue	13,080			12,978			38,336			35,650
Total fees and commissions	185,308			164,657			534,422			503,195
Other gains, net	2,442			1,161			5,309			3,373
Gain on derivatives, net	2,226			1,283			20,130			1,162
Gain (loss) on fair value option securities, net	(3,355		)	5,926			10,367			443
Change in fair value of mortgage servicing rights	2,327			(11,757		)	(41,944		)	(12,269		)
Gain on available for sale securities, net	2,394			2,166			11,684			9,926
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	191,342			163,436			539,968			505,738
Other operating expense:
Personnel	143,185			129,062			421,518			390,305
Business promotion	6,839			5,922			19,238			19,435
Charitable contributions to BOKF Foundation	—			796			—			796
Professional fees and services	14,038			10,147			39,955			29,766
Net occupancy and equipment	20,111			18,689			58,554			56,660
Insurance	9,390			4,864			23,784			14,960
Data processing and communications	33,331			30,708			98,150			91,135
Printing, postage and supplies	3,790			3,376			11,586			10,390
Net losses (gains) and operating expenses of repossessed assets	(926		)	267			1,732			1,103
Amortization of intangible assets	1,521			1,089			5,304			3,269
Mortgage banking costs	16,022			9,107			44,210			27,501
Other expense	14,819			10,601			37,714			26,686
Total other operating expense	262,120			224,628			761,745			672,006

Net income before taxes	107,068			109,944			266,253			344,325
Federal and state income taxes	31,956			34,128			83,881			113,142

Net income	75,112			75,816			182,372			231,183
Net income (loss) attributable to non-controlling interests	835			925			(270		)	2,219
Net income attributable to BOK Financial Corporation shareholders	$	74,277		$	74,891		$	182,642		$	228,964

Average shares outstanding:
Basic	65,085,392			67,668,076			65,208,774			68,004,508
Diluted	65,157,841			67,762,483			65,263,566			68,104,017

Net income per share:
Basic	$	1.13		$	1.09		$	2.77		$	3.33
Diluted	$	1.13		$	1.09		$	2.76		$	3.32

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

	Three Months Ended
	Sept. 30,2016			June 30, 2016			Mar. 31, 2016			Dec. 31, 2015			Sept. 30,2015
Capital:
Period-end shareholders' equity	$	3,398,311		$	3,368,833		$	3,321,555		$	3,230,556		$	3,377,226
Risk weighted assets	$	24,358,342		$	24,191,016		$	23,707,824		$	23,429,897		$	22,706,537
Risk-based capital ratios:
Common equity tier 1	11.99		%	11.86		%	12.00		%	12.13		%	12.78		%
Tier 1	11.99		%	11.86		%	12.00		%	12.13		%	12.78		%
Total capital	13.65		%	13.51		%	13.21		%	13.30		%	13.89		%
Leverage ratio	9.06		%	9.06		%	9.12		%	9.25		%	9.55		%
Tangible common equity ratio¹	9.19		%	9.33		%	9.34		%	9.02		%	9.78		%

Common stock:
Book value per share	$	51.56		$	51.15		$	50.21		$	49.03		$	49.88
Tangible book value per share	45.12			44.68			43.73			42.51			43.52
Market value per share:
High	$	70.05		$	65.14		$	60.16		$	74.73		$	70.26
Low	$	56.36		$	51.00		$	43.74		$	58.25		$	57.04
Cash dividends paid	$	28,181		$	28,241		$	28,294		$	28,967		$	28,766
Dividend payout ratio	37.94		%	42.92		%	66.47		%	48.60		%	38.41		%
Shares outstanding, net	65,910,454			65,866,317			66,155,103			65,894,032			67,713,031
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	0.91		%	0.83		%	0.54		%	0.76		%	0.97		%
Return on average equity	8.80		%	8.00		%	5.21		%	7.12		%	8.84		%
Net interest margin	2.64		%	2.63		%	2.65		%	2.64		%	2.61		%
Efficiency ratio	69.21		%	68.45		%	69.05		%	67.93		%	64.34		%

Reconciliation of non-GAAP measures:
¹ Tangible common equity ratio:
Total shareholders' equity	$	3,398,311		$	3,368,833		$	3,321,555		$	3,230,556		$	3,377,226
Less: Goodwill and intangible assets, net	424,716			426,111			428,733			429,370			430,460
Tangible common equity	$	2,973,595		$	2,942,722		$	2,892,822		$	2,801,186		$	2,946,766

Total assets	$	32,779,231		$	31,970,450		$	31,413,945		$	31,476,128		$	30,566,905
Less: Goodwill and intangible assets, net	424,716			426,111			428,733			429,370			430,460
Tangible assets	$	32,354,515		$	31,544,339		$	30,985,212		$	31,046,758		$	30,136,445

Tangible common equity ratio	9.19		%	9.33		%	9.34		%	9.02		%	9.78		%

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

	Three Months Ended
	Sept. 30,2016			June 30, 2016			Mar. 31, 2016			Dec. 31, 2015			Sept. 30,2015
Other data:
Fiduciary assets	$	41,222,162		$	39,924,734		$	39,113,305		$	38,333,638		$	37,780,669
Tax equivalent adjustment	$	4,455		$	4,372		$	4,385		$	3,222		$	3,244
Net unrealized gain on available for sale securities	$	159,533		$	195,385		$	155,236		$	38,109		$	144,884

Mortgage banking:
Mortgage servicing portfolio	$	21,851,536		$	21,178,387		$	20,294,662		$	19,678,226		$	18,928,726
Mortgage commitments	$	630,804		$	965,631		$	902,986		$	601,147		$	742,742
Mortgage loans funded for sale	$	1,864,583		$	1,818,844		$	1,244,015		$	1,365,431		$	1,614,225
Mortgage loan refinances to total fundings	51		%	44		%	49		%	41		%	30		%
Mortgage loans sold	$	1,873,709		$	1,742,582		$	1,239,391		$	1,424,527		$	1,778,099

Net realized gains on mortgage loans sold	$	27,142		$	19,205		$	10,779		$	15,705		$	18,968
Change in net unrealized gain on mortgage loans held for sale	(1,152		)	3,221			8,198			(5,615		)	(251		)
Total production revenue	25,990			22,426			18,977			10,090			18,717
Servicing revenue	16,558			15,798			15,453			14,949			14,453
Total mortgage banking revenue	$	42,548		$	38,224		$	34,430		$	25,039		$	33,170

Gain (loss) on mortgage servicing rights, net of economic hedge:
Gain (loss) on mortgage hedge derivative contracts, net	$	2,268		$	10,766		$	7,138		$	(732	)	$	1,460
Gain (loss) on fair value option securities, net	(3,355		)	4,279			9,443			(4,127		)	5,926
Gain (loss) on economic hedge of mortgage servicing rights	(1,087		)	15,045			16,581			(4,859		)	7,386
Gain (loss) on changes in fair value of mortgage servicing rights	2,327			(16,283		)	(27,988		)	7,416			(11,757		)
Gain (loss) on changes in fair value of mortgage servicing rights, net of economic hedges	$	1,240		$	(1,238	)	$	(11,407	)	$	2,557		$	(4,371	)

Net interest revenue on fair value option securities	$	861		$	1,348		$	2,033		$	2,137		$	2,140

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

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

Interest revenue	$	209,317		$	202,267		$	201,796		$	196,782		$	193,664
Interest expense	21,471			19,655			19,224			15,521			15,028
Net interest revenue	187,846			182,612			182,572			181,261			178,636
Provision for credit losses	10,000			20,000			35,000			22,500			7,500
Net interest revenue after provision for credit losses	177,846			162,612			147,572			158,761			171,136
Other operating revenue:
Brokerage and trading revenue	38,006			39,530			32,341			30,255			31,582
Transaction card revenue	33,933			34,950			32,354			32,319			32,514
Fiduciary and asset management revenue	34,073			34,813			32,056			31,165			30,807
Deposit service charges and fees	23,668			22,618			22,542			22,813			23,606
Mortgage banking revenue	42,548			38,224			34,430			25,039			33,170
Other revenue	13,080			13,352			11,904			14,233			12,978
Total fees and commissions	185,308			183,487			165,627			155,824			164,657
Other gains, net	2,442			1,307			1,560			2,329			1,161
Gain (loss) on derivatives, net	2,226			10,766			7,138			(732		)	1,283
Gain (loss) on fair value option securities, net	(3,355		)	4,279			9,443			(4,127		)	5,926
Change in fair value of mortgage servicing rights	2,327			(16,283		)	(27,988		)	7,416			(11,757		)
Gain on available for sale securities, net	2,394			5,326			3,964			2,132			2,166
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	191,342			188,882			159,744			161,115			163,436
Other operating expense:
Personnel	143,185			142,490			135,843			133,182			129,062
Business promotion	6,839			6,703			5,696			8,416			5,922
Charitable contributions to BOKF Foundation	—			—			—			—			796
Professional fees and services	14,038			14,158			11,759			10,357			10,147
Net occupancy and equipment	20,111			19,677			18,766			19,356			18,689
Insurance	9,390			7,129			7,265			5,415			4,864
Data processing and communications	33,331			32,802			32,017			31,248			30,708
Printing, postage and supplies	3,790			3,889			3,907			3,108			3,376
Net losses (gains) and operating expenses of repossessed assets	(926		)	1,588			1,070			343			267
Amortization of intangible assets	1,521			2,624			1,159			1,090			1,089
Mortgage banking costs	16,022			15,809			12,379			11,496			9,107
Other expense	14,819			7,856			15,039			8,547			10,601
Total other operating expense	262,120			254,725			244,900			232,558			224,628
Net income before taxes	107,068			96,769			62,416			87,318			109,944
Federal and state income taxes	31,956			30,497			21,428			26,242			34,128
Net income	75,112			66,272			40,988			61,076			75,816
Net income (loss) attributable to non-controlling interests	835			471			(1,576		)	1,475			925
Net income attributable to BOK Financial Corporation shareholders	$	74,277		$	65,801		$	42,564		$	59,601		$	74,891

Average shares outstanding:
Basic	65,085,392			65,245,887			65,296,541			66,378,380			67,668,076
Diluted	65,157,841			65,302,926			65,331,428			66,467,729			67,762,483
Net income per share:
Basic	$	1.13		$	1.00		$	0.64		$	0.89		$	1.09
Diluted	$	1.13		$	1.00		$	0.64		$	0.89		$	1.09

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

	Sept. 30,2016		June 30, 2016		Mar. 31, 2016		Dec. 31, 2015		Sept. 30,2015
Commercial:
Energy	$	2,520,804	$	2,818,656	$	3,029,420	$	3,097,328	$	2,838,167
Services	2,936,599		2,830,864		2,728,891		2,784,276		2,706,624
Healthcare	2,085,046		2,051,146		1,995,425		1,883,380		1,741,680
Wholesale/retail	1,602,030		1,532,957		1,451,846		1,422,064		1,461,936
Manufacturing	499,486		595,403		600,645		556,729		555,677
Other commercial and industrial	476,198		527,411		482,198		508,754		493,338
Total commercial	10,120,163		10,356,437		10,288,425		10,252,531		9,797,422

Commercial real estate:
Retail	801,377		795,419		810,522		796,499		769,449
Multifamily	873,773		787,200		733,689		751,085		758,658
Office	752,705		769,112		695,552		637,707		626,151
Industrial	838,021		645,586		564,467		563,169		563,871
Residential construction and land development	159,946		157,576		171,949		160,426		153,510
Other commercial real estate	367,776		427,073		394,328		350,147		363,428
Total commercial real estate	3,793,598		3,581,966		3,370,507		3,259,033		3,235,067

Residential mortgage:
Permanent mortgage	969,558		969,007		948,405		945,336		937,664
Permanent mortgages guaranteed by U.S. government agencies	190,309		192,732		197,350		196,937		192,712
Home equity	712,926		719,184		723,554		734,620		738,619
Total residential mortgage	1,872,793		1,880,923		1,869,309		1,876,893		1,868,995

Personal	678,232		587,423		494,325		552,697		465,957

Total	$	16,464,786	$	16,406,749	$	16,022,566	$	15,941,154	$	15,367,441

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

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

Bank of Oklahoma:
Commercial	$	3,545,924	$	3,698,215	$	3,656,034	$	3,782,687	$	3,514,391
Commercial real estate	795,806		781,458		747,689		739,829		677,372
Residential mortgage	1,401,166		1,415,766		1,411,409		1,409,114		1,405,235
Personal	271,420		246,229		204,158		255,387		185,463
Total Bank of Oklahoma	6,014,316		6,141,668		6,019,290		6,187,017		5,782,461

Bank of Texas:
Commercial	3,903,218		3,901,632		3,936,809		3,908,425		3,752,193
Commercial real estate	1,400,709		1,311,408		1,211,978		1,204,202		1,257,741
Residential mortgage	229,345		222,548		217,539		219,126		222,395
Personal	278,167		233,304		210,456		203,496		194,051
Total Bank of Texas	5,811,439		5,668,892		5,576,782		5,535,249		5,426,380

Bank of Albuquerque:
Commercial	398,147		398,427		402,082		375,839		368,027
Commercial real estate	299,785		322,956		323,059		313,422		312,953
Residential mortgage	110,478		114,226		117,655		120,507		121,232
Personal	11,333		10,569		10,823		11,557		10,477
Total Bank of Albuquerque	819,743		846,178		853,619		821,325		812,689

Bank of Arkansas:
Commercial	83,544		81,227		79,808		92,359		76,044
Commercial real estate	72,649		69,235		66,674		69,320		82,225
Residential mortgage	6,936		6,874		7,212		8,169		8,063
Personal	6,757		7,025		918		819		4,921
Total Bank of Arkansas	169,886		164,361		154,612		170,667		171,253

Colorado State Bank & Trust:
Commercial	1,013,314		1,076,620		1,030,348		987,076		1,029,694
Commercial real estate	254,078		237,569		219,078		223,946		229,835
Residential mortgage	59,838		59,425		52,961		53,782		50,138
Personal	42,901		35,064		24,497		23,384		30,683
Total Colorado State Bank & Trust	1,370,131		1,408,678		1,326,884		1,288,188		1,340,350

Bank of Arizona:
Commercial	680,447		670,814		656,527		606,733		608,235
Commercial real estate	726,542		639,112		605,383		507,523		482,918
Residential mortgage	39,206		38,998		40,338		44,047		41,722
Personal	31,205		24,248		18,372		31,060		17,609
Total Bank of Arizona	1,477,400		1,373,172		1,320,620		1,189,363		1,150,484

Bank of Kansas City:
Commercial	495,569		529,502		526,817		499,412		448,838
Commercial real estate	244,029		220,228		196,646		200,791		192,023
Residential mortgage	25,824		23,086		22,195		22,148		20,210
Personal	36,449		30,984		25,101		26,994		22,753
Total Bank of Kansas City	801,871		803,800		770,759		749,345		683,824

TOTAL BOK FINANCIAL	$	16,464,786	$	16,406,749	$	16,022,566	$	15,941,154	$	15,367,441

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

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

	Sept. 30, 2016		June 30, 2016		March 31, 2016		Dec. 31, 2015		Sept. 30, 2015
Bank of Oklahoma:
Demand	$	4,158,273	$	4,020,181	$	3,813,128	$	4,133,520	$	3,834,145
Interest-bearing:
Transaction	5,701,983		5,741,302		5,706,067		5,971,819		5,783,258
Savings	242,959		247,984		246,122		226,733		225,580
Time	1,091,464		1,167,271		1,198,022		1,202,274		1,253,137
Total interest-bearing	7,036,406		7,156,557		7,150,211		7,400,826		7,261,975
Total Bank of Oklahoma	11,194,679		11,176,738		10,963,339		11,534,346		11,096,120

Bank of Texas:
Demand	2,734,981		2,677,253		2,571,883		2,627,764		2,689,493
Interest-bearing:
Transaction	2,240,040		2,035,634		2,106,905		2,132,099		1,996,223
Savings	84,642		83,862		83,263		77,902		74,674
Time	528,380		516,231		530,657		549,740		554,106
Total interest-bearing	2,853,062		2,635,727		2,720,825		2,759,741		2,625,003
Total Bank of Texas	5,588,043		5,312,980		5,292,708		5,387,505		5,314,496

Bank of Albuquerque:
Demand	584,681		530,853		557,200		487,286		520,785
Interest-bearing:
Transaction	555,326		573,690		560,684		563,723		529,862
Savings	54,480		49,200		47,187		43,672		41,380
Time	244,706		250,068		259,630		267,821		281,426
Total interest-bearing	854,512		872,958		867,501		875,216		852,668
Total Bank of Albuquerque	1,439,193		1,403,811		1,424,701		1,362,502		1,373,453

Bank of Arkansas:
Demand	32,203		30,607		31,318		27,252		25,397
Interest-bearing:
Transaction	313,480		278,335		265,803		202,857		290,728
Savings	2,051		1,853		1,929		1,747		1,573
Time	17,534		18,911		21,035		24,983		26,203
Total interest-bearing	333,065		299,099		288,767		229,587		318,504
Total Bank of Arkansas	365,268		329,706		320,085		256,839		343,901

Colorado State Bank & Trust:
Demand	517,063		528,124		413,506		497,318		430,675
Interest-bearing:
Transaction	623,055		625,240		610,077		616,697		655,206
Savings	31,613		31,509		33,108		31,927		31,398
Time	247,667		254,164		271,475		296,224		320,279
Total interest-bearing	902,335		910,913		914,660		944,848		1,006,883
Total Colorado State Bank & Trust	1,419,398		1,439,037		1,328,166		1,442,166		1,437,558

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

	Sept. 30, 2016		June 30, 2016		March 31, 2016		Dec. 31, 2015		Sept. 30, 2015
Bank of Arizona:
Demand	418,718		396,837		341,828		326,324		306,425
Interest-bearing:
Transaction	303,750		302,297		313,825		358,556		293,319
Savings	2,959		3,198		3,277		2,893		4,121
Time	27,935		28,681		29,053		29,498		26,750
Total interest-bearing	334,644		334,176		346,155		390,947		324,190
Total Bank of Arizona	753,362		731,013		687,983		717,271		630,615

Bank of Kansas City:
Demand	235,445		240,754		221,812		197,424		234,847
Interest-bearing:
Transaction	86,526		112,371		146,405		153,203		150,253
Savings	1,645		1,656		1,619		1,378		1,570
Time	11,945		11,735		31,502		35,524		36,630
Total interest-bearing	100,116		125,762		179,526		190,105		188,453
Total Bank of Kansas City	335,561		366,516		401,338		387,529		423,300

TOTAL BOK FINANCIAL	$	21,095,504	$	20,759,801	$	20,418,320	$	21,088,158	$	20,619,443

NET INTEREST MARGIN TREND -- UNAUDITED BOK FINANCIAL CORPORATION

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

TAX-EQUIVALENT ASSETS YIELDS
Interest-bearing cash and cash equivalents	0.51	%	0.51	%	0.53	%	0.29	%	0.28	%
Trading securities	2.71	%	1.89	%	2.47	%	2.86	%	2.70	%
Investment securities:
Taxable	5.34	%	5.41	%	5.53	%	5.41	%	5.49	%
Tax-exempt	2.26	%	2.25	%	2.22	%	1.53	%	1.54	%
Total investment securities	3.51	%	3.52	%	3.51	%	3.03	%	3.04	%
Available for sale securities:
Taxable	1.99	%	2.01	%	2.06	%	2.02	%	1.99	%
Tax-exempt	5.47	%	5.06	%	4.95	%	4.22	%	4.15	%
Total available for sale securities	2.01	%	2.04	%	2.08	%	2.04	%	2.01	%
Fair value option securities	1.70	%	2.19	%	2.38	%	2.32	%	2.30	%
Restricted equity securities	5.37	%	4.84	%	5.85	%	5.95	%	5.95	%
Residential mortgage loans held for sale	3.28	%	3.53	%	3.75	%	3.85	%	3.79	%
Loans	3.63	%	3.58	%	3.57	%	3.55	%	3.54	%
Allowance for loan losses
Loans, net of allowance	3.69	%	3.63	%	3.63	%	3.60	%	3.59	%
Total tax-equivalent yield on earning assets	2.93	%	2.91	%	2.92	%	2.86	%	2.83	%

COST OF INTEREST-BEARING LIABILITIES
Interest-bearing deposits:
Interest-bearing transaction	0.14	%	0.14	%	0.14	%	0.09	%	0.08	%
Savings	0.09	%	0.10	%	0.09	%	0.09	%	0.10	%
Time	1.14	%	1.16	%	1.21	%	1.26	%	1.33	%
Total interest-bearing deposits	0.32	%	0.33	%	0.34	%	0.32	%	0.34	%
Funds purchased	0.19	%	0.19	%	0.27	%	0.11	%	0.08	%
Repurchase agreements	0.04	%	0.05	%	0.05	%	0.04	%	0.03	%
Other borrowings	0.57	%	0.57	%	0.56	%	0.38	%	0.30	%
Subordinated debt	3.84	%	1.52	%	1.26	%	1.13	%	1.04	%
Total cost of interest-bearing liabilities	0.44	%	0.41	%	0.40	%	0.34	%	0.32	%
Tax-equivalent net interest revenue spread	2.49	%	2.50	%	2.52	%	2.52	%	2.51	%
Effect of noninterest-bearing funding sources and other	0.15	%	0.13	%	0.13	%	0.12	%	0.10	%
Tax-equivalent net interest margin	2.64	%	2.63	%	2.65	%	2.64	%	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
	Sept. 30, 2016		June 30, 2016		March 31, 2016		Dec. 31, 2015		Sept. 30, 2015
Nonperforming assets:
Nonaccruing loans:
Commercial	$	176,464	$	181,989	$	174,652	$	76,424	$	33,798
Commercial real estate	7,350		7,780		9,270		9,001		10,956
Residential mortgage	52,452		57,061		57,577		61,240		44,099
Personal	686		354		331		463		494
Total nonaccruing loans	236,952		247,184		241,830		147,128		89,347
Accruing renegotiated loans guaranteed by U.S. government agencies	80,306		78,806		77,597		74,049		81,598
Real estate and other repossessed assets	31,941		24,054		29,896		30,731		33,116
Total nonperforming assets	$	349,199	$	350,044	$	349,323	$	251,908	$	204,061
Total nonperforming assets excluding those guaranteed by U.S. government agencies	$	253,461	$	251,497	$	252,176	$	155,959	$	118,578

Nonaccruing loans by loan class:
Commercial:
Energy	$	142,966	$	168,145	$	159,553	$	61,189	$	17,880
Services	8,477		9,388		9,512		10,290		10,692
Wholesale / retail	2,453		2,772		3,685		2,919		3,058
Manufacturing	274		293		312		331		352
Healthcare	855		875		1,023		1,072		1,218
Other commercial and industrial	21,439		516		567		623		598
Total commercial	176,464		181,989		174,652		76,424		33,798
Commercial real estate:
Residential construction and land development	3,739		4,261		4,789		4,409		4,748
Retail	1,249		1,265		1,302		1,319		1,648
Office	882		606		629		651		684
Multifamily	51		65		250		274		185
Industrial	76		76		76		76		76
Other commercial real estate	1,353		1,507		2,224		2,272		3,615
Total commercial real estate	7,350		7,780		9,270		9,001		10,956
Residential mortgage:
Permanent mortgage	25,956		27,228		27,497		28,984		30,660
Permanent mortgage guaranteed by U.S. government agencies	15,432		19,741		19,550		21,900		3,885
Home equity	11,064		10,092		10,530		10,356		9,554
Total residential mortgage	52,452		57,061		57,577		61,240		44,099
Personal	686		354		331		463		494
Total nonaccruing loans	$	236,952	$	247,184	$	241,830	$	147,128	$	89,347

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

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

Performing loans 90 days past due¹	$	3,839		$	2,899		$	8,019		$	1,207		$	101

Gross charge-offs	$	(8,101	)	$	(8,845	)	$	(23,991	)	$	(4,851	)	$	(5,274	)
Recoveries	2,038			1,386			1,519			1,870			3,521
Net charge-offs	$	(6,063	)	$	(7,459	)	$	(22,472	)	$	(2,981	)	$	(1,753	)

Provision for credit losses	$	10,000		$	20,000		$	35,000		$	22,500		$	7,500

Allowance for loan losses to period end loans	1.49		%	1.48		%	1.46		%	1.41		%	1.33		%
Combined allowance for credit losses to period end loans	1.56		%	1.54		%	1.50		%	1.43		%	1.35		%
Nonperforming assets to period end loans and repossessed assets	2.12		%	2.13		%	2.18		%	1.58		%	1.33		%
Net charge-offs (annualized) to average loans	0.15		%	0.18		%	0.56		%	0.08		%	0.05		%
Allowance for loan losses to nonaccruing loans¹	110.65		%	106.95		%	104.89		%	180.09		%	238.84		%
Combined allowance for credit losses to nonaccruing loans¹	115.67		%	110.93		%	107.87		%	181.46		%	243.05		%


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

BOK FINANCIAL CORP - FORM 8-K - EX-99 - EXHIBIT 99 - October 26, 2016

Attached files