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

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8-K - 8-K - BOK FINANCIAL CORP	a20170331bokfpressrelease8.htm

Exhibit 99 (a)

NASD: BOKF

For Further Information Contact:

Joseph Crivelli

Investor Relations

(918) 595-3027

BOK Financial Reports Quarterly Earnings of $88 Million

Results Driven by Margin Expansion and Operating Expense Containment

TULSA, Okla. (Wednesday, April 26, 2017) - BOK Financial Corporation reported net income of $88.4 million or $1.35 per diluted share for the first quarter of 2017. Net income was $50.0 million or $0.76 per diluted share for the fourth quarter of 2016 and $42.6 million or $0.64 per diluted share for the first quarter of 2016.

Steven G. Bradshaw, president and chief executive officer of BOK Financial, stated, “The year is off to a very strong start, and financial results in the first quarter of 2017 represent the second-highest net income total in our company’s history. Net interest margin and net interest revenue are up substantially due to the improved interest rate environment. Fee and commissions revenue growth remains steady, driven by the strength of our diverse wealth management business. And cost containment initiatives executed last year are driving much better results in terms of expense management, with total expenses down by over $20 million sequentially despite including the first full quarter of Mobank-related operating expenses.”

Bradshaw continued, “We completed the operational conversion of Mobank in February, and this acquisition is well ahead of our financial forecasts. With Mobank, total deposits at quarter–end are up 11 percent compared to March 31, 2016; and organic deposit growth during the same period was 6.5%. Our deposit franchise provides a significant funding advantage, and while we continue to believe that some demand deposits will migrate into interest–bearing accounts in the current rising rate environment, to date we have seen very limited pressure on deposit costs.”

First Quarter 2017 Highlights


•	Net interest revenue totaled $201.2 million for the first quarter of 2017, up $7.0 million over the fourth quarter of 2016. Net interest margin was 2.81 percent for the first quarter of 2017, compared to 2.69 percent for the fourth quarter of 2016. Average earning assets increased $416 million during the first quarter of 2017, primarily due to a $412 million increase in average loan balances.

•

Fees and commissions revenue totaled $164.4 million for the first quarter of 2017, a $2.3 million increase over the prior quarter. Fiduciary and asset management revenue grew by $4.1 million due to an increase in the value of assets managed and a decrease in waived fees. Mortgage banking revenue decreased $3.2 million and transaction card revenue decreased $2.4 million. Brokerage and trading revenue was unchanged, excluding a $5.0 million loss on trading asset positions from the previous quarter.


•	The change in the fair value of mortgage servicing rights, net of economic hedges increased pre-tax net income in the first quarter of 2017 by $188 thousand. The change in the fair value of mortgage servicing rights, net of economic hedges decreased pre-tax net income in the fourth quarter of 2016 by $17.0 million.

•

Operating expense was $244.7 million for the first quarter of 2017, a decrease of $20.8 million compared to the prior quarter. Expenses related to the Mobank acquisition, severance and a contribution to the BOKF Foundation added $11.7 million to the fourth quarter of 2016. Excluding these items, operating expense decreased $9.1 million, primarily due to lower mortgage banking and deposit insurance costs.

•

Income tax expense was $38.1 million or 30.1% of net income before taxes for the first quarter of 2017, compared to $22.5 million or 31.1% in the fourth quarter of 2016. The first quarter included a $3.9 million benefit related to the implementation of a new accounting standard that includes the tax effect of vested equity compensation awards in income tax expense. Previously the tax effect of these awards was included in stockholders' equity.


•	No provision for credit losses was recorded in the first quarter of 2017 or the fourth quarter of 2016 due to continued improvement in credit metric trends. The company had a net recovery of $747 thousand in the first quarter of 2017, compared to a net recovery of $1.2 million in the previous quarter.


•	The combined allowance for credit losses totaled $258 million or 1.52 percent of outstanding loans at March 31, 2017 compared to $257 million or 1.52 percent of outstanding loans at December 31, 2016.

•

Nonperforming assets that are not guaranteed by U.S. government agencies totaled $240 million or 1.43 percent of outstanding loans and repossessed assets (excluding those guaranteed by U.S. government agencies) at March 31, 2017 and $263 million or 1.56 percent of outstanding loans and repossessed assets (excluding those guaranteed by U.S. government agencies) at December 31, 2016. The decrease in nonperforming assets was primarily due to a $22 million decrease in nonaccruing energy loans.


•	Average loans increased by $412 million over the previous quarter, primarily due to a full quarter's impact of the Mobank acquisition. Excluding this impact, average loan balances were largely unchanged compared to the fourth quarter of 2016. Period-end outstanding loan balances totaled $17.0 billion at March 31, 2017, largely unchanged compared to December 31, 2016.

•

Average deposits increased $666 million over the previous quarter, including $390 million related to the impact of a full quarter of deposits from the Mobank acquisition. Excluding this impact, average interest-bearing transaction deposits grew by $402 million and time deposit balances were up $63 million, partially offset by a $201 million decrease in demand deposits. Period-end deposits were $22.6 billion at March 31, 2017, a $173 million decrease compared to December 31, 2016.

•

The common equity Tier 1 capital ratio at March 31, 2017 was 11.60 percent. Other regulatory capital ratios were Tier 1 capital ratio, 11.60 percent, total capital ratio, 13.26 percent and leverage ratio, 8.89 percent. At December 31, 2016, the common equity Tier 1 capital ratio was 11.21 percent, the Tier 1 capital ratio was 11.21 percent, total capital ratio was 12.81 percent, and leverage ratio was 8.72 percent.


•	The company paid a regular quarterly cash dividend of $29 million or $0.44 per common share during the first quarter of 2017. On April 25, 2017, the board of directors approved a quarterly cash dividend of $0.44 per common share payable on or about May 26, 2017 to shareholders of record as of May 12, 2017.

Net Interest Revenue

Net interest revenue was $201.2 million for the first quarter of 2017, up $7.0 million over the fourth quarter of 2016.

Net interest margin was 2.81 percent for the first quarter of 2017, an increase of 12 basis points over the fourth quarter of 2016, due largely to a full quarter effect of the Fed's 25 basis point December increase in short-term rates. The yield on average earning assets was 3.15 percent, an increase of 17 basis points. The loan portfolio yield increased 21 basis points to 3.88 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 increased 5 basis points to 2.05 percent. The yield on interest-bearing cash and cash equivalents increased 27 basis points. Funding costs were 0.52 percent, up 8 basis points. Growth in the cost of interest-bearing deposits was limited to 3 basis points by a lack of market pricing pressure.

Average earning assets increased $416 million during the first quarter of 2017. Average loan balances increased $412 million, primarily due to a full quarter's impact of the Mobank acquisition. The average balance of fair value option securities held as an economic hedge of our mortgage servicing rights increased $206 million. Average trading securities portfolio balances increased $103 million and interest-bearing cash and cash equivalents balances were up $55 million. These increases were offset by a $200 million decrease in available for sale securities portfolio balances and a $125 million decrease in the average balance of residential mortgage loans held for sale.

Average interest-bearing deposit balances increased $689 million over the fourth quarter of 2016, including $212 million related to a full quarter's impact of the Mobank acquisition. The average balance of borrowed funds decreased $378 million.

Fees and Commissions Revenue

Fees and commissions revenue totaled $164.4 million for the first quarter of 2017, an increase of $2.3 million over the fourth quarter of 2016. Brokerage and trading revenue for the fourth quarter of 2016 included a $5.0 million decrease in the value of trading assets caused by an unexpected 85 basis point increase in the 10-year U.S. Treasury interest rate and related rates.

Fiduciary and asset management revenue grew by $4.1 million over the fourth quarter of 2016 to $38.6 million. Revenue growth was largely due to a $2.6 billion increase in the value of fiduciary assets under management to a record high of $44.4 billion at March 31, 2017. Additionally, waived fees earned as administrator and investment advisor of the Cavanal Hill Funds decreased $964 thousand compared to the previous quarter to $445 thousand.

Mortgage banking revenue totaled $25.2 million for the first quarter of 2017, a $3.2 million decrease over the fourth quarter of 2016. Revenue from mortgage loan production decreased $3.4 million due to a $103 million decrease in mortgage production volume and a 26 basis point decrease in gain on sale margin compared to the prior quarter. Production volume decreased in response to higher primary mortgage interest rates and margin narrowed due to increased competition, largely in the Home Direct online delivery channel.

Transaction card revenue was down $2.4 million, primarily due to a seasonal decrease in transaction volumes.

Operating Expense

Total operating expense was $244.7 million for the first quarter of 2017, a decrease of $20.8 million compared to the fourth quarter of 2016. Expenses related to the completion of the Mobank acquisition were $2.0 million in the first quarter of 2017 and $4.7 million in the fourth quarter of 2016. In addition, operating expense in the fourth quarter of 2016 included $5.0 million of severance and other expenses related to staff reductions and a $2.0 million contribution to the BOKF Foundation. The discussion following excludes the impact of these items.

Personnel expense increased $1.9 million over the fourth quarter of 2016. Employee benefits costs were up $4.7 million primarily due to a seasonal increase in payroll tax expense and increased employee retirement plans costs, partially offset by lower employee medical costs. Regular compensation increased $2.5 million and included a full quarter impact of the Mobank acquisition. Incentive compensation expense decreased $5.3 million.

Non-personnel expense decreased $13.1 million compared to the fourth quarter of 2016. Mortgage banking expense decreased $4.3 million primarily due to the effect of slowing actual residential mortgage loan prepayments on the fair value of mortgage servicing rights. Deposit insurance expense was $2.3 million lower due to improvements in credit quality and other risk factors. Professional fees were down $2.3 million and other expense decreased $2.3 million.

Loans, Deposits and Capital

Loans

Outstanding loans were $17.0 billion at March 31, 2017, largely unchanged compared to the previous quarter. Growth in commercial real estate was offset by a decrease in commercial loan balances.

Outstanding commercial loan balances decreased $64 million. Healthcare sector loans grew by $64 million. Energy loan balances increased $39 million. Unfunded energy loan commitments were largely unchanged at $2.7 billion. Manufacturing loans increased $28 million. This growth was offset by a $96 million decrease in service sector loan balances, a $71 million decrease in wholesale/retail sector loan balances and a $29 million decrease in other commercial and industrial loans.

Commercial real estate loans grew by $62 million. Loans secured by office buildings increased by $62 million and were broadly distributed across the Texas, New Mexico and Oklahoma markets. Multifamily residential loans increased $20 million. Growth in the Arizona and Kansas/Missouri markets was partially offset by a decrease in loans attributed to the Texas and Oklahoma markets. Retail sector loans decreased $17 million, primarily in the Texas and Arizona markets, partially offset by growth in the Oklahoma market.

Deposits

Period-end deposits totaled $22.6 billion at March 31, 2017, a $173 million decrease compared to December 31, 2016. Interest-bearing transaction account balances decreased $506 million, partially offset by a $271 million increase in demand deposit balances. In addition, both savings and time deposit balances grew over the prior quarter. Excluding the impact of allocating Mobank deposits among the lines of business, Wealth Management deposits decreased $154 million and Commercial Banking deposits decreased $101 million. Consumer Banking deposits grew by $122 million.

Capital

The company's common equity Tier 1 capital ratio was 11.60 percent at March 31, 2017. In addition, the company's Tier 1 capital ratio was 11.60 percent, total capital ratio was 13.26 percent and leverage ratio was 8.89 percent at March 31, 2017. At December 31, 2016, the company's common equity Tier 1 capital ratio was 11.21 percent, Tier 1 capital ratio was 11.21 percent, total capital ratio was 12.81 percent, and leverage ratio was 8.72 percent.

The company's tangible common equity ratio, a non-GAAP measure, was 8.88 percent at March 31, 2017 and 8.61 percent at December 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 $334 million or 1.96 percent of outstanding loans and repossessed assets at March 31, 2017 compared to $357 million or 2.09 percent at December 31, 2016. Nonperforming assets that are not guaranteed by U.S. government agencies totaled $240 million or 1.43 percent of outstanding loans and repossessed assets (excluding those guaranteed by U.S. government agencies) at March 31, 2017 compared to $263 million or 1.56 percent at December 31, 2016.

Nonaccruing loans totaled $208 million or 1.22 percent of outstanding loans at March 31, 2017, down from $231 million or 1.36 percent of outstanding loans at December 31, 2016. The decrease in nonaccruing loans was primarily due to a $22 million decrease in nonaccruing energy loans. New nonaccruing loans identified in the first quarter totaled $23 million, offset by $35 million in payments received, $2.2 million in charge-offs and $3.3 million in foreclosures and repossessions. Additionally, $5.9 million was returned to accruing status based on improved credit risk and performance. At March 31, 2017, nonaccruing commercial loans totaled $157 million or 1.52 percent of outstanding commercial loans, nonaccruing commercial real estate loans totaled $4.5 million or 0.12 percent of outstanding commercial real estate loans and nonaccruing residential mortgage loans totaled $46 million or 2.37 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, totaled $413 million at March 31 compared to $399 million at December 31. The increase largely resulted from healthcare and manufacturing potential problem loans, partially offset by a decrease in potential problem energy loans.

Marc Maun, chief credit officer, stated, “We continued to see a stable credit environment in the first quarter, with no segments of our loan portfolio showing any material signs of stress. We recognized net recoveries during the quarter, saw nonaccrual loans decrease by over ten percent, and have a combined allowance for credit losses to period–end loans at or near the top of our peer group of mid-sized regional banks. After evaluating all credit factors, no provision for loan losses was booked for the first quarter. Looking forward, we are forecasting $15 million to $20 million provision for the full year.”

Maun continued, “Retail commercial real estate (CRE) has been in the spotlight recently due to several high–profile retailer store closings. I’m pleased to report that as of March 31, 2017 we had minimal criticized or classified retail CRE loans in our portfolio. Our portfolio is carefully constructed to limit CRE exposure to any one retailer, is geographically diverse, and represents best–in–class retail developers with multiple sources of repayment.”

The company had a net recovery of $747 thousand for the first quarter of 2017, compared to a net recovery of $1.2 million in the fourth quarter of 2016. Gross charge-offs totaled $2.2 million for the first quarter, compared to $1.7 million for the previous quarter. Recoveries totaled $2.9 million for the first quarter of 2017 and $2.8 million for the fourth quarter of 2016.

As noted above, the company determined that no provision for credit losses was necessary during the first quarter of 2017 based on the continued improvement in credit metrics. No provision for credit losses was recorded in the previous quarter. The combined allowance for credit losses totaled $258 million or 1.52 percent of outstanding loans and 131 percent of nonaccruing loans at March 31, 2017. The allowance for loan losses was $249 million and the accrual for off-balance sheet credit losses was $9.4 million.

Securities and Derivatives

The fair value of the available for sale securities portfolio totaled $8.4 billion at March 31, 2017, a $240 million decrease compared to December 31, 2016. At March 31, 2017, the available for sale portfolio consisted primarily of $5.4 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 March 31, 2017, the available for sale securities portfolio had a net unrealized loss of $5.5 million compared to a net unrealized loss of $15 million at December 31, 2016. The decrease in net unrealized loss was primarily due to changes in interest rates during the quarter. Net unrealized losses on residential mortgage-backed securities issued by U.S. government agencies at March 31, 2017 decreased $7.7 million during the first quarter to $7.3 million. Commercial mortgage-backed securities had a net unrealized loss of $18 million at March 31, 2017, unchanged compared to December 31, 2016.

The company also maintains a portfolio of financial instruments primarily consisting 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.

The net economic benefit of the changes in fair value of mortgage servicing rights and related economic hedges was $1.5 million, including a $1.9 million increase in the fair value of the mortgage servicing rights, a $1.7 million decrease in the fair value of securities and derivative contracts held as an economic hedge and $1.3 million of related net interest revenue. The improvement over the prior quarter was due primarily to materially higher long-term interest rates and a relatively stable rate environment during the first quarter.

The fair value of mortgage servicing rights increased by $39.8 million during the fourth quarter of 2016 primarily due to an increase in residential mortgage rates during the quarter. The fair value of securities and interest rate derivative contracts held as an economic hedge of mortgage servicing rights decreased by $56.8 million. The significant increase in long-term interest rates in the fourth quarter resulted in a loss on this hedge, partially offset by an increase in the fair value of the mortgage servicing rights.

Conference Call and Webcast

The company will hold a conference call at 9 a.m. Central time on Wednesday, April 26, 2017 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 1-201-689-8471. A conference call and webcast replay will also be available shortly after conclusion of the live call at www.bokf.com or by dialing 1-844-512-2921 and referencing conference ID # 13659658.

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, Mobank, 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 March 31, 2017 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)

	March 31, 2017			Dec. 31, 2016			March 31, 2016
ASSETS
Cash and due from banks	$	546,575		$	620,846		$	481,510
Interest-bearing cash and cash equivalents	2,220,640			1,916,651			1,831,162
Trading securities	677,156			337,628			279,539
Investment securities	519,402			546,145			576,047
Available for sale securities	8,437,291			8,676,829			8,886,036
Fair value option securities	441,714			77,046			418,887
Restricted equity securities	283,936			307,240			314,590
Residential mortgage loans held for sale	248,707			301,897			332,040
Loans:
Commercial	10,327,110			10,390,824			10,288,425
Commercial real estate	3,871,063			3,809,046			3,370,507
Residential mortgage	1,946,274			1,949,832			1,869,309
Personal	847,459			839,958			494,325
Total loans	16,991,906			16,989,660			16,022,566
Allowance for loan losses	(248,710		)	(246,159		)	(233,156		)
Loans, net of allowance	16,743,196			16,743,501			15,789,410
Premises and equipment, net	325,546			325,849			311,161
Receivables	394,394			772,952			167,209
Goodwill	445,738			448,899			383,789
Intangible assets, net	42,556			46,931			44,944
Mortgage servicing rights	249,403			247,073			196,055
Real estate and other repossessed assets, net	42,726			44,287			29,896
Derivative contracts, net	304,727			689,872			790,146
Cash surrender value of bank-owned life insurance	310,537			308,430			305,510
Receivable on unsettled securities sales	9,921			7,188			5,640
Other assets	384,767			353,017			270,374
TOTAL ASSETS	$	32,628,932		$	32,772,281		$	31,413,945

LIABILITIES AND EQUITY
Deposits:
Demand	$	9,506,573		$	9,235,720		$	7,950,675
Interest-bearing transaction	10,359,214			10,865,105			9,709,766
Savings	465,724			425,470			416,505
Time	2,243,848			2,221,800			2,341,374
Total deposits	22,575,359			22,748,095			20,418,320
Funds purchased	47,629			57,929			62,755
Repurchase agreements	508,352			668,661			630,101
Other borrowings	5,238,947			4,846,072			5,633,862
Subordinated debentures	144,649			144,640			226,385
Accrued interest, taxes and expense	140,235			146,704			148,711
Due on unsettled securities purchases	137,069			6,508			19,508
Derivative contracts, net	276,422			664,531			705,578
Other liabilities	189,376			182,784			212,460
TOTAL LIABILITIES	29,258,038			29,465,924			28,057,680
Shareholders' equity:
Capital, surplus and retained earnings	3,346,965			3,285,821			3,228,446
Accumulated other comprehensive income (loss)	(5,221		)	(10,967		)	93,109
TOTAL SHAREHOLDERS' EQUITY	3,341,744			3,274,854			3,321,555
Non-controlling interests	29,150			31,503			34,710
TOTAL EQUITY	3,370,894			3,306,357			3,356,265
TOTAL LIABILITIES AND EQUITY	$	32,628,932		$	32,772,281		$	31,413,945

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

	Three Months Ended
	March 31, 2017			Dec. 31, 2016			Sept. 30, 2016			June 30, 2016			March 31, 2016
ASSETS
Interest-bearing cash and cash equivalents	$	2,087,964		$	2,032,785		$	2,047,991		$	2,022,028		$	2,052,840
Trading securities	579,549			476,498			366,545			237,808			188,100
Investment securities	530,936			542,869			552,592			562,391			587,465
Available for sale securities	8,567,049			8,766,555			8,862,590			8,890,112			8,951,435
Fair value option securities	416,524			210,733			266,998			368,434			450,478
Restricted equity securities	312,498			334,114			335,812			319,136			294,529
Residential mortgage loans held for sale	220,325			345,066			445,930			401,114			289,743
Loans:
Commercial	10,414,579			10,228,095			10,109,692			10,265,782			10,268,793
Commercial real estate	3,903,850			3,749,393			3,789,673			3,550,611			3,364,076
Residential mortgage	1,962,759			1,919,296			1,870,855			1,864,458			1,865,742
Personal	854,637			826,804			677,530			582,281			493,382
Total loans	17,135,825			16,723,588			16,447,750			16,263,132			15,991,993
Allowance for loan losses	(249,379		)	(246,977		)	(247,901		)	(245,448		)	(234,116		)
Total loans, net	16,886,446			16,476,611			16,199,849			16,017,684			15,757,877
Total earning assets	29,601,291			29,185,231			29,078,307			28,818,707			28,572,467
Cash and due from banks	547,104			578,694			511,534			507,085			505,522
Derivative contracts, net	401,886			681,455			766,671			823,584			632,102
Cash surrender value of bank-owned life insurance	309,223			309,532			308,670			306,318			304,141
Receivable on unsettled securities sales	62,641			33,813			259,906			49,568			115,101
Other assets	2,032,844			2,172,351			1,721,385			1,480,780			1,379,138
TOTAL ASSETS	$	32,954,989		$	32,961,076		$	32,646,473		$	31,986,042		$	31,508,471

LIABILITIES AND EQUITY
Deposits:
Demand	$	9,101,763		$	9,124,595		$	8,497,037		$	8,162,134		$	8,105,756
Interest-bearing transaction	10,567,475			9,980,132			9,650,618			9,590,855			9,756,843
Savings	441,254			421,654			420,009			417,122			397,479
Time	2,258,930			2,177,035			2,197,350			2,297,621			2,366,543
Total deposits	22,369,422			21,703,416			20,765,014			20,467,732			20,626,621
Funds purchased	55,508			62,004			68,280			70,682			112,211
Repurchase agreements	523,561			560,891			522,822			611,264			662,640
Other borrowings	5,737,955			6,072,150			6,342,369			6,076,028			5,583,917
Subordinated debentures	144,644			144,635			255,890			232,795			226,368
Derivative contracts, net	405,444			682,808			747,187			791,313			544,722
Due on unsettled securities purchases	91,529			77,575			200,574			93,812			158,050
Other liabilities	299,534			321,404			352,671			298,170			268,705
TOTAL LIABILITIES	29,627,597			29,624,883			29,254,807			28,641,796			28,183,234
Total equity	3,327,392			3,336,193			3,391,666			3,344,246			3,325,237
TOTAL LIABILITIES AND EQUITY	$	32,954,989		$	32,961,076		$	32,646,473		$	31,986,042		$	31,508,471

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

	Three Months Ended
	March 31,
	2017			2016

Interest revenue	$	226,390		$	201,796
Interest expense	25,208			19,224
Net interest revenue	201,182			182,572
Provision for credit losses	—			35,000
Net interest revenue after provision for credit losses	201,182			147,572
Other operating revenue:
Brokerage and trading revenue	33,623			32,341
Transaction card revenue	32,127			32,354
Fiduciary and asset management revenue	38,631			32,056
Deposit service charges and fees	23,030			22,542
Mortgage banking revenue	25,191			32,100
Other revenue	11,752			11,904
Total fees and commissions	164,354			163,297
Other gains, net	3,627			1,560
Gain (loss) on derivatives, net	(450		)	7,138
Gain (loss) on fair value option securities, net	(1,140		)	9,443
Change in fair value of mortgage servicing rights	1,856			(27,988		)
Gain on available for sale securities, net	2,049			3,964
Total other operating revenue	170,296			157,414
Other operating expense:
Personnel	136,425			133,562
Business promotion	6,717			5,696
Professional fees and services	12,379			11,759
Net occupancy and equipment	21,624			18,766
Insurance	6,404			7,265
Data processing and communications	33,940			32,017
Printing, postage and supplies	3,851			3,907
Net losses and operating expenses of repossessed assets	1,009			1,070
Amortization of intangible assets	1,802			1,159
Mortgage banking costs	13,003			12,330
Other expense	7,557			15,039
Total other operating expense	244,711			242,570

Net income before taxes	126,767			62,416
Federal and state income taxes	38,103			21,428

Net income	88,664			40,988
Net income (loss) attributable to non-controlling interests	308			(1,576		)
Net income attributable to BOK Financial Corporation shareholders	$	88,356		$	42,564

Average shares outstanding:
Basic	64,639,437			65,296,541
Diluted	64,707,210			65,331,428

Net income per share:
Basic	$	1.35		$	0.64
Diluted	$	1.35		$	0.64

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

	Three Months Ended
	March 31, 2017			Dec. 31, 2016			Sept. 30, 2016			June 30, 2016			March 31, 2016
Capital:
Period-end shareholders' equity	$	3,341,744		$	3,274,854		$	3,398,311		$	3,368,833		$	3,321,555
Risk weighted assets	$	24,882,046		$	25,274,848		$	24,358,385		$	24,191,016		$	23,707,824
Risk-based capital ratios:
Common equity tier 1	11.60		%	11.21		%	11.99		%	11.86		%	12.00		%
Tier 1	11.60		%	11.21		%	11.99		%	11.86		%	12.00		%
Total capital	13.26		%	12.81		%	13.65		%	13.51		%	13.21		%
Leverage ratio	8.89		%	8.72		%	9.06		%	9.06		%	9.12		%
Tangible common equity ratio¹	8.88		%	8.61		%	9.19		%	9.33		%	9.34		%

Common stock:
Book value per share	$	51.09		$	50.12		$	51.56		$	51.15		$	50.21
Tangible book value per share	43.63			42.53			45.12			44.68			43.73
Market value per share:
High	$	85.25		$	85.00		$	70.05		$	65.14		$	60.16
Low	$	73.44		$	67.11		$	56.36		$	51.00		$	43.74
Cash dividends paid	$	28,646		$	28,860		$	28,181		$	28,241		$	28,294
Dividend payout ratio	32.42		%	57.69		%	37.94		%	42.92		%	66.47		%
Shares outstanding, net	65,408,019			65,337,432			65,910,454			65,866,317			66,155,103
Stock buy-back program:
Shares repurchased	—			700,000			—			305,169			—
Amount	$	—		$	49,021		$	—		$	17,771		$	—
Average price per share	$	—		$	70.03		$	—		$	58.23		$	—

Performance ratios (quarter annualized):
Return on average assets	1.09		%	0.60		%	0.91		%	0.83		%	0.54		%
Return on average equity	10.86		%	6.03		%	8.80		%	8.00		%	5.21		%
Net interest margin	2.81		%	2.69		%	2.64		%	2.63		%	2.65		%
Efficiency ratio	65.77		%	72.93		%	68.88		%	68.16		%	68.84		%

Reconciliation of non-GAAP measures:
¹ Tangible common equity ratio:
Total shareholders' equity	$	3,341,744		$	3,274,854		$	3,398,311		$	3,368,833		$	3,321,555
Less: Goodwill and intangible assets, net	488,294			495,830			424,716			426,111			428,733
Tangible common equity	$	2,853,450		$	2,779,024		$	2,973,595		$	2,942,722		$	2,892,822

Total assets	$	32,628,932		$	32,772,281		$	32,779,231		$	31,970,450		$	31,413,945
Less: Goodwill and intangible assets, net	488,294			495,830			424,716			426,111			428,733
Tangible assets	$	32,140,638		$	32,276,451		$	32,354,515		$	31,544,339		$	30,985,212

Tangible common equity ratio	8.88		%	8.61		%	9.19		%	9.33		%	9.34		%

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

	Three Months Ended
	March 31, 2017			Dec. 31, 2016			Sept. 30, 2016			June 30, 2016			March 31, 2016
Other data:
Fiduciary assets	$	44,371,510		$	41,781,564		$	41,222,162		$	39,924,734		$	39,113,305
Tax equivalent interest	$	4,428		$	4,389		$	4,455		$	4,372		$	4,385
Net unrealized gain (loss) on available for sale securities	$	(5,537	)	$	(14,899	)	$	159,533		$	195,385		$	155,236

Mortgage banking:
Mortgage production revenue	$	8,543		$	11,937		$	21,958		$	19,086		$	16,647

Mortgage loans funded for sale	$	711,019		$	1,189,975		$	1,864,583		$	1,818,844		$	1,244,015
Add: current period-end outstanding commitments	381,732			318,359			630,804			965,631			902,986
Less: prior period end outstanding commitments	318,359			630,804			965,631			902,986			601,147
Total mortgage production volume	$	774,392		$	877,530		$	1,529,756		$	1,881,489		$	1,545,854

Mortgage loan refinances to mortgage loans funded for sale	44		%	63		%	51		%	44		%	49		%
Gain on sale margin	1.10		%	1.36		%	1.44		%	1.01		%	1.08		%

Mortgage servicing revenue	$	16,648		$	16,477		$	16,558		$	15,798		$	15,453
Average outstanding principal balance of mortgage loans service for others	22,006,295			21,924,552			21,514,962			20,736,525			19,986,444
Average mortgage servicing revenue rates	0.31		%	0.30		%	0.31		%	0.31		%	0.31		%

Gain (loss) on mortgage servicing rights, net of economic hedge:
Gain (loss) on mortgage hedge derivative contracts, net	$	(528	)	$	(35,868	)	$	2,268		$	10,766		$	7,138
Gain (loss) on fair value option securities, net	(1,140		)	(20,922		)	(3,355		)	4,279			9,443
Gain (loss) on economic hedge of mortgage servicing rights	(1,668		)	(56,790		)	(1,087		)	15,045			16,581
Gain (loss) on changes in fair value of mortgage servicing rights	1,856			39,751			2,327			(16,283		)	(27,988		)
Gain (loss) on changes in fair value of mortgage servicing rights, net of economic hedges, included in other operating revenue	188			(17,039		)	1,240			(1,238		)	(11,407		)
Net interest revenue on fair value option securities²	1,271			114			861			1,348			2,033
Total economic benefit (cost) of changes in the fair value of mortgage servicing rights, net of economic hedges	$	1,459		$	(16,925	)	$	2,101		$	110		$	(9,374	)

²Actual interest earned on fair value option securities less internal transfer-priced cost of funds.

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

	Three Months Ended
	March 31, 2017			Dec. 31, 2016			Sept. 30, 2016			June 30, 2016			March 31, 2016

Interest revenue	$	226,390		$	215,737		$	209,317		$	202,267		$	201,796
Interest expense	25,208			21,539			21,471			19,655			19,224
Net interest revenue	201,182			194,198			187,846			182,612			182,572
Provision for credit losses	—			—			10,000			20,000			35,000
Net interest revenue after provision for credit losses	201,182			194,198			177,846			162,612			147,572
Other operating revenue:
Brokerage and trading revenue	33,623			28,500			38,006			39,530			32,341
Transaction card revenue	32,127			34,521			33,933			34,950			32,354
Fiduciary and asset management revenue	38,631			34,535			34,073			34,813			32,056
Deposit service charges and fees	23,030			23,365			23,668			22,618			22,542
Mortgage banking revenue	25,191			28,414			38,516			34,884			32,100
Other revenue	11,752			12,693			13,080			13,352			11,904
Total fees and commissions	164,354			162,028			181,276			180,147			163,297
Other gains (losses), net	3,627			(1,279		)	2,442			1,307			1,560
Gain (loss) on derivatives, net	(450		)	(35,815		)	2,226			10,766			7,138
Gain (loss) on fair value option securities, net	(1,140		)	(20,922		)	(3,355		)	4,279			9,443
Change in fair value of mortgage servicing rights	1,856			39,751			2,327			(16,283		)	(27,988		)
Gain (loss) on available for sale securities, net	2,049			(9		)	2,394			5,326			3,964
Total other operating revenue	170,296			143,754			187,310			185,542			157,414
Other operating expense:
Personnel	136,425			141,132			139,212			139,213			133,562
Business promotion	6,717			7,344			6,839			6,703			5,696
Charitable contributions to BOKF Foundation	—			2,000			—			—			—
Professional fees and services	12,379			16,828			14,038			14,158			11,759
Net occupancy and equipment	21,624			21,470			20,111			19,677			18,766
Insurance	6,404			8,705			9,390			7,129			7,265
Data processing and communications	33,940			33,691			33,331			32,802			32,017
Printing, postage and supplies	3,851			3,998			3,790			3,889			3,907
Net losses (gains) and operating expenses of repossessed assets	1,009			1,627			(926		)	1,588			1,070
Amortization of intangible assets	1,802			1,558			1,521			2,624			1,159
Mortgage banking costs	13,003			17,348			15,963			15,746			12,330
Other expense	7,557			9,846			14,819			7,856			15,039
Total other operating expense	244,711			265,547			258,088			251,385			242,570
Net income before taxes	126,767			72,405			107,068			96,769			62,416
Federal and state income taxes	38,103			22,496			31,956			30,497			21,428
Net income	88,664			49,909			75,112			66,272			40,988
Net income (loss) attributable to non-controlling interests	308			(117		)	835			471			(1,576		)
Net income attributable to BOK Financial Corporation shareholders	$	88,356		$	50,026		$	74,277		$	65,801		$	42,564

Average shares outstanding:
Basic	64,639,437			64,719,018			65,085,392			65,245,887			65,296,541
Diluted	64,707,210			64,787,728			65,157,841			65,302,926			65,331,428
Net income per share:
Basic	$	1.35		$	0.76		$	1.13		$	1.00		$	0.64
Diluted	$	1.35		$	0.76		$	1.13		$	1.00		$	0.64

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

	March 31, 2017		Dec. 31, 2016		Sept. 30, 2016		June 30, 2016		March 31, 2016
Commercial:
Energy	$	2,537,112	$	2,497,868	$	2,520,804	$	2,818,656	$	3,029,420
Services	3,013,375		3,108,990		2,936,599		2,830,864		2,728,891
Healthcare	2,265,604		2,201,916		2,085,046		2,051,146		1,995,425
Wholesale/retail	1,506,243		1,576,818		1,602,030		1,532,957		1,451,846
Manufacturing	543,430		514,975		499,486		595,403		600,645
Other commercial and industrial	461,346		490,257		476,198		527,411		482,198
Total commercial	10,327,110		10,390,824		10,120,163		10,356,437		10,288,425

Commercial real estate:
Retail	745,046		761,888		801,377		795,419		810,522
Multifamily	922,991		903,272		873,773		787,200		733,689
Office	860,889		798,888		752,705		769,112		695,552
Industrial	871,463		871,749		838,021		645,586		564,467
Residential construction and land development	135,994		135,533		159,946		157,576		171,949
Other commercial real estate	334,680		337,716		367,776		427,073		394,328
Total commercial real estate	3,871,063		3,809,046		3,793,598		3,581,966		3,370,507

Residential mortgage:
Permanent mortgage	977,743		1,006,820		969,558		969,007		948,405
Permanent mortgages guaranteed by U.S. government agencies	204,181		199,387		190,309		192,732		197,350
Home equity	764,350		743,625		712,926		719,184		723,554
Total residential mortgage	1,946,274		1,949,832		1,872,793		1,880,923		1,869,309

Personal	847,459		839,958		678,232		587,423		494,325

Total	$	16,991,906	$	16,989,660	$	16,464,786	$	16,406,749	$	16,022,566

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

	March 31, 2017		Dec. 31, 2016		Sept. 30, 2016		June 30, 2016		March 31, 2016

Bank of Oklahoma:
Commercial	$	3,189,183	$	3,370,259	$	3,545,924	$	3,698,215	$	3,656,034
Commercial real estate	691,332		684,381		795,806		781,458		747,689
Residential mortgage	1,404,054		1,407,197		1,401,166		1,415,766		1,411,409
Personal	310,708		303,823		271,420		246,229		204,158
Total Bank of Oklahoma	5,595,277		5,765,660		6,014,316		6,141,668		6,019,290

Bank of Texas:
Commercial	4,148,316		4,022,455		3,903,218		3,901,632		3,936,809
Commercial real estate	1,452,988		1,415,011		1,400,709		1,311,408		1,211,978
Residential mortgage	231,647		233,981		229,345		222,548		217,539
Personal	312,092		306,748		278,167		233,304		210,456
Total Bank of Texas	6,145,043		5,978,195		5,811,439		5,668,892		5,576,782

Bank of Albuquerque:
Commercial	407,403		399,256		398,147		398,427		402,082
Commercial real estate	307,927		284,603		299,785		322,956		323,059
Residential mortgage	106,432		108,058		110,478		114,226		117,655
Personal	11,305		11,483		11,333		10,569		10,823
Total Bank of Albuquerque	833,067		803,400		819,743		846,178		853,619

Bank of Arkansas:
Commercial	88,010		86,577		83,544		81,227		79,808
Commercial real estate	74,469		73,616		72,649		69,235		66,674
Residential mortgage	6,829		7,015		6,936		6,874		7,212
Personal	6,279		6,524		6,757		7,025		918
Total Bank of Arkansas	175,587		173,732		169,886		164,361		154,612

Colorado State Bank & Trust:
Commercial	998,216		1,018,208		1,013,314		1,076,620		1,030,348
Commercial real estate	266,218		265,264		254,078		237,569		219,078
Residential mortgage	62,313		59,631		59,838		59,425		52,961
Personal	49,523		50,372		42,901		35,064		24,497
Total Colorado State Bank & Trust	1,376,270		1,393,475		1,370,131		1,408,678		1,326,884

Bank of Arizona:
Commercial	643,222		686,253		680,447		670,814		656,527
Commercial real estate	737,088		747,409		726,542		639,112		605,383
Residential mortgage	36,737		36,265		39,206		38,998		40,338
Personal	51,386		52,553		31,205		24,248		18,372
Total Bank of Arizona	1,468,433		1,522,480		1,477,400		1,373,172		1,320,620

Mobank:
Commercial	852,760		807,816		495,569		529,502		526,817
Commercial real estate	341,041		338,762		244,029		220,228		196,646
Residential mortgage	98,262		97,685		25,824		23,086		22,195
Personal	106,166		108,455		36,449		30,984		25,101
Total Mobank	1,398,229		1,352,718		801,871		803,800		770,759

TOTAL BOK FINANCIAL	$	16,991,906	$	16,989,660	$	16,464,786	$	16,406,749	$	16,022,566

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)

	March 31, 2017		Dec. 31, 2016		Sept. 30, 2016		June 30, 2016		March 31, 2016
Bank of Oklahoma:
Demand	$	4,320,666	$	3,993,170	$	4,158,273	$	4,020,181	$	3,813,128
Interest-bearing:
Transaction	6,114,288		6,345,536		5,701,983		5,741,302		5,706,067
Savings	265,014		241,696		242,959		247,984		246,122
Time	1,189,144		1,118,355		1,091,464		1,167,271		1,198,022
Total interest-bearing	7,568,446		7,705,587		7,036,406		7,156,557		7,150,211
Total Bank of Oklahoma	11,889,112		11,698,757		11,194,679		11,176,738		10,963,339

Bank of Texas:
Demand	3,091,258		3,137,009		2,734,981		2,677,253		2,571,883
Interest-bearing:
Transaction	2,317,576		2,388,812		2,240,040		2,035,634		2,106,905
Savings	89,640		83,101		84,642		83,862		83,263
Time	511,037		535,642		528,380		516,231		530,657
Total interest-bearing	2,918,253		3,007,555		2,853,062		2,635,727		2,720,825
Total Bank of Texas	6,009,511		6,144,564		5,588,043		5,312,980		5,292,708

Bank of Albuquerque:
Demand	593,117		627,979		584,681		530,853		557,200
Interest-bearing:
Transaction	623,677		590,571		555,326		573,690		560,684
Savings	53,683		49,963		54,480		49,200		47,187
Time	233,506		238,408		244,706		250,068		259,630
Total interest-bearing	910,866		878,942		854,512		872,958		867,501
Total Bank of Albuquerque	1,503,983		1,506,921		1,439,193		1,403,811		1,424,701

Bank of Arkansas:
Demand	42,622		26,389		32,203		30,607		31,318
Interest-bearing:
Transaction	106,804		105,232		313,480		278,335		265,803
Savings	2,304		2,192		2,051		1,853		1,929
Time	15,067		16,696		17,534		18,911		21,035
Total interest-bearing	124,175		124,120		333,065		299,099		288,767
Total Bank of Arkansas	166,797		150,509		365,268		329,706		320,085

Colorado State Bank & Trust:
Demand	601,778		576,000		517,063		528,124		413,506
Interest-bearing:
Transaction	610,510		616,679		623,055		625,240		610,077
Savings	37,801		32,866		31,613		31,509		33,108
Time	234,740		242,782		247,667		254,164		271,475
Total interest-bearing	883,051		892,327		902,335		910,913		914,660
Total Colorado State Bank & Trust	1,484,829		1,468,327		1,419,398		1,439,037		1,328,166

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

	March 31, 2017		Dec. 31, 2016		Sept. 30, 2016		June 30, 2016		March 31, 2016
Bank of Arizona:
Demand	342,854		366,755		418,718		396,837		341,828
Interest-bearing:
Transaction	180,254		305,099		303,750		302,297		313,825
Savings	3,858		2,973		2,959		3,198		3,277
Time	26,112		27,765		27,935		28,681		29,053
Total interest-bearing	210,224		335,837		334,644		334,176		346,155
Total Bank of Arizona	553,078		702,592		753,362		731,013		687,983

Mobank:
Demand	514,278		508,418		235,445		240,755		221,812
Interest-bearing:
Transaction	406,105		513,176		86,526		112,371		146,405
Savings	13,424		12,679		1,645		1,656		1,619
Time	34,242		42,152		11,945		11,735		31,502
Total interest-bearing	453,771		568,007		100,116		125,762		179,526
Total Mobank	968,049		1,076,425		335,561		366,517		401,338

TOTAL BOK FINANCIAL	$	22,575,359	$	22,748,095	$	21,095,504	$	20,759,802	$	20,418,320

ce Call

NET INTEREST MARGIN TREND -- UNAUDITED BOK FINANCIAL CORPORATION

	Three Months Ended
	March 31, 2017		Dec. 31, 2016		Sept. 30, 2016		June 30, 2016		March 31, 2016

TAX-EQUIVALENT ASSETS YIELDS
Interest-bearing cash and cash equivalents	0.82	%	0.55	%	0.51	%	0.51	%	0.53	%
Trading securities	3.87	%	3.91	%	2.71	%	1.89	%	2.47	%
Investment securities:
Taxable	5.44	%	5.39	%	5.34	%	5.41	%	5.53	%
Tax-exempt	2.45	%	2.33	%	2.26	%	2.25	%	2.22	%
Total investment securities	3.70	%	3.60	%	3.51	%	3.52	%	3.51	%
Available for sale securities:
Taxable	2.02	%	1.98	%	1.99	%	2.01	%	2.06	%
Tax-exempt	5.37	%	5.27	%	5.47	%	5.06	%	4.95	%
Total available for sale securities	2.05	%	2.00	%	2.01	%	2.04	%	2.08	%
Fair value option securities	2.27	%	0.99	%	1.70	%	2.19	%	2.38	%
Restricted equity securities	5.52	%	5.45	%	5.37	%	4.84	%	5.85	%
Residential mortgage loans held for sale	3.35	%	3.31	%	3.28	%	3.53	%	3.75	%
Loans	3.88	%	3.67	%	3.63	%	3.58	%	3.57	%
Allowance for loan losses
Loans, net of allowance	3.94	%	3.72	%	3.69	%	3.63	%	3.63	%
Total tax-equivalent yield on earning assets	3.15	%	2.98	%	2.93	%	2.91	%	2.92	%

COST OF INTEREST-BEARING LIABILITIES
Interest-bearing deposits:
Interest-bearing transaction	0.20	%	0.16	%	0.14	%	0.14	%	0.14	%
Savings	0.08	%	0.09	%	0.09	%	0.10	%	0.09	%
Time	1.09	%	1.12	%	1.14	%	1.16	%	1.21	%
Total interest-bearing deposits	0.35	%	0.32	%	0.32	%	0.33	%	0.34	%
Funds purchased	0.47	%	0.28	%	0.19	%	0.19	%	0.27	%
Repurchase agreements	0.02	%	0.02	%	0.04	%	0.05	%	0.05	%
Other borrowings	0.83	%	0.61	%	0.57	%	0.57	%	0.56	%
Subordinated debt	5.68	%	5.51	%	3.84	%	1.52	%	1.26	%
Total cost of interest-bearing liabilities	0.52	%	0.44	%	0.44	%	0.41	%	0.40	%
Tax-equivalent net interest revenue spread	2.63	%	2.54	%	2.49	%	2.50	%	2.52	%
Effect of noninterest-bearing funding sources and other	0.18	%	0.15	%	0.15	%	0.13	%	0.13	%
Tax-equivalent net interest margin	2.81	%	2.69	%	2.64	%	2.63	%	2.65	%

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
	March 31, 2017		Dec. 31, 2016		Sept. 30, 2016		June 30, 2016		March 31, 2016
Nonperforming assets:
Nonaccruing loans:
Commercial	$	156,825	$	178,953	$	176,464	$	181,989	$	174,652
Commercial real estate	4,475		5,521		7,350		7,780		9,270
Residential mortgage	46,081		46,220		52,452		57,061		57,577
Personal	235		290		686		354		331
Total nonaccruing loans	207,616		230,984		236,952		247,184		241,830
Accruing renegotiated loans guaranteed by U.S. government agencies	83,577		81,370		80,306		78,806		77,597
Real estate and other repossessed assets	42,726		44,287		31,941		24,054		29,896
Total nonperforming assets	$	333,919	$	356,641	$	349,199	$	350,044	$	349,323
Total nonperforming assets excluding those guaranteed by U.S. government agencies	$	240,234	$	263,425	$	253,461	$	251,497	$	252,176

Nonaccruing loans by loan class:
Commercial:
Energy	$	110,425	$	132,499	$	142,966	$	168,145	$	159,553
Services	7,713		8,173		8,477		9,388		9,512
Wholesale / retail	11,090		11,407		2,453		2,772		3,685
Manufacturing	5,907		4,931		274		293		312
Healthcare	909		825		855		875		1,023
Other commercial and industrial	20,781		21,118		21,439		516		567
Total commercial	156,825		178,953		176,464		181,989		174,652
Commercial real estate:
Residential construction and land development	2,616		3,433		3,739		4,261		4,789
Retail	314		326		1,249		1,265		1,302
Office	413		426		882		606		629
Multifamily	24		38		51		65		250
Industrial	76		76		76		76		76
Other commercial real estate	1,032		1,222		1,353		1,507		2,224
Total commercial real estate	4,475		5,521		7,350		7,780		9,270
Residential mortgage:
Permanent mortgage	24,188		22,855		25,956		27,228		27,497
Permanent mortgage guaranteed by U.S. government agencies	10,108		11,846		15,432		19,741		19,550
Home equity	11,785		11,519		11,064		10,092		10,530
Total residential mortgage	46,081		46,220		52,452		57,061		57,577
Personal	235		290		686		354		331
Total nonaccruing loans	$	207,616	$	230,984	$	236,952	$	247,184	$	241,830

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

	Three Months Ended
	March 31, 2017			Dec. 31, 2016			Sept. 30, 2016			June 30, 2016			March 31, 2016

Performing loans 90 days past due¹	$	95		$	5		$	3,839		$	2,899		$	8,019

Gross charge-offs	$	(2,153	)	$	(1,651	)	$	(8,101	)	$	(8,845	)	$	(23,991	)
Recoveries	2,900			2,813			2,038			1,386			1,519
Net recoveries (charge-offs)	$	747		$	1,162		$	(6,063	)	$	(7,459	)	$	(22,472	)

Provision for credit losses	$	—		$	—		$	10,000		$	20,000		$	35,000

Allowance for loan losses to period end loans	1.46		%	1.45		%	1.49		%	1.48		%	1.46		%
Combined allowance for credit losses to period end loans	1.52		%	1.52		%	1.56		%	1.54		%	1.50		%
Nonperforming assets to period end loans and repossessed assets	1.96		%	2.09		%	2.12		%	2.13		%	2.18		%
Net charge-offs (annualized) to average loans	(0.02		)%	(0.03		)%	0.15		%	0.18		%	0.56		%
Allowance for loan losses to nonaccruing loans¹	125.92		%	112.33		%	110.65		%	106.95		%	104.89		%
Combined allowance for credit losses to nonaccruing loans¹	130.70		%	117.46		%	115.67		%	110.93		%	107.87		%


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

BOK FINANCIAL CORP - FORM 8-K - EX-99 - EXHIBIT 99 - April 26, 2017

Attached files