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

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8-K - 8-K - BOK FINANCIAL CORP	a20171231pressrelease8-k.htm

Exhibit 99 (a)

NASD: BOKF

For Further Information Contact:

Joseph Crivelli

Investor Relations

(918) 595-3027

BOK Financial Reports 2017 Fourth Quarter and Full Year Results

TULSA, Okla. (Wednesday, January 24, 2018) - BOK Financial Corporation reported net income of $334.6 million or $5.11 per diluted share for the year ended December 31, 2017. Net income for the year ended December 31, 2016 was $232.7 million or $3.53 per diluted share.

Net income for fourth quarter of 2017 totaled $72.5 million or $1.11 per diluted share compared to $85.6 million or $1.31 per diluted share for the third quarter of 2017 and $50.0 million or $0.76 per diluted share for the fourth quarter of 2016.

The Tax Cuts and Jobs Act ("the Act") signed into law on December 22, 2017 resulted in an $11.7 million or $0.18 per share reduction in net income for the fourth quarter. A decrease in the federal corporate tax rate from 35% to 21% required us to revalue deferred tax assets and liabilities. Provisions of the Act also limit the deductibility of certain other expenses.

Steven G. Bradshaw, president and chief executive officer, stated, “The fourth quarter wrapped up a very strong year for BOK Financial, in which we delivered our strongest earnings performance in the past five years. While we benefited from a healthy interest rate environment, the key to earnings leverage was maintaining expense discipline throughout the year. In addition, the benign credit environment combined with our strong underwriting minimized credit costs during the year. Finally, our wealth management business delivered record financial results in 2017 and surpassed $80 billion of assets under management and administration for the first time in company history, leading our diverse set of fee based businesses.”

Bradshaw continued, “Now that we have clarity on tax reform and healthcare, we believe the stage is set for stronger loan growth in 2018. In the fourth quarter our healthcare business grew at its strongest pace in over a year, and we are already seeing an increase in client loan demand in our commercial and industrial business. In addition, energy banking continues to benefit from the company’s long-term commitment to our energy borrowers, and our private banking division remains among our fastest-growing lending segments.”

“The write-down of our deferred tax asset was necessitated by expected lower future tax rates and negatively impacted fourth quarter earnings. However, we believe the passage of tax reform will be beneficial to economic growth across our footprint, drive increased loan demand in many of our businesses, and provide a material benefit to future profitability,” Bradshaw concluded.

Fourth Quarter 2017 Highlights

•

Net interest revenue totaled $216.9 million for the fourth quarter of 2017, compared to $218.5 million for the third quarter of 2017. Net interest margin was 2.97 percent, compared to 3.01 percent in the third quarter of 2017. Recoveries of foregone interest on nonaccruing loans added $4.7 million and 6 basis points to net interest margin in the third quarter. Average earning assets increased $122 million over the prior quarter.


•	Fees and commissions revenue totaled $168.2 million for the fourth quarter of 2017, compared to $173.5 million for the third quarter of 2017. Transaction card revenue decreased $3.3 million and other revenue decreased $1.9 million. Fiduciary and asset management revenue grew $1.1 million.


•	Operating expense was $264.0 million for the fourth quarter, a $1.9 million decrease compared to the prior quarter. Personnel costs decreased $2.6 million, partially offset by a $634 thousand increase in non-personnel expense.

•

The Company recorded a $7.0 million negative provision for credit losses in the fourth quarter, due to continued improvement in credit metric trends. No provision for credit losses was recorded in the third quarter of 2017. The company had net charge-offs of $11.7 million or 27 basis points of average loans on an annualized basis in the fourth quarter of 2017, compared to net charge-offs of $3.4 million or 8 basis points of average loans on annualized basis in the third quarter. For the full year, net charge-offs were $16.0 million or 9 basis points of average loans in 2017 and $34.8 million or 21 basis points of average loans in 2016.


•	The combined allowance for credit losses totaled $234 million or 1.37 percent of outstanding loans at December 31, 2017, compared to $253 million or 1.47 percent of outstanding loans at September 30, 2017.

•

Nonperforming assets that are not guaranteed by U.S. government agencies totaled $207 million or 1.22 percent of outstanding loans and repossessed assets at December 31, 2017 compared to $249 million or 1.46 percent of outstanding loans and repossessed assets at September 30, 2017. The decrease in nonperforming assets was primarily due to nonaccruing energy, other commercial and industrial and healthcare sector loans.


•	Average loan balances were largely unchanged compared to the previous quarter. Growth in residential mortgage and personal loans was offset by decreased commercial and commercial real estate loan balances. Period-end outstanding loan balances were $17.2 billion at December 31, 2017, a $53 million decrease compared to September 30, 2017.


•	Average deposits were largely unchanged compared to the previous quarter. Growth in interest-bearing transaction and demand deposit account balances was partially offset by a decrease in time deposits. Period end deposits increased $213 million over September 30, 2017 to $22.1 billion at December 31, 2017.

•

The common equity Tier 1 capital ratio was 11.95 percent at December 31. In addition, the Company's Tier 1 capital ratio was 11.95 percent, total capital ratio was 13.43 percent and leverage ratio was 9.31 percent. At September 30, 2017, the common equity Tier 1 capital ratio was 11.90 percent, the Tier 1 capital ratio was 11.90 percent, total capital ratio was 13.47 percent and leverage ratio was 9.30 percent.


•	The company repurchased 80,000 common shares at an average price of $92.54 per share during the fourth quarter of 2017. No shares were repurchased during the third quarter of 2017.

Tax Cuts and Jobs Act

Fourth quarter and full year 2017 earnings included an $11.7 million or $0.18 per diluted share charge as a result of the Tax Cuts and Jobs Act which was signed into law on December 22, 2017. The write-down of net deferred tax assets from a federal and state statutory tax rate of 38.9 percent to 25.5 percent totaled $9.5 million, including $6.4 million of deferred tax assets related to unrealized losses on available for sale securities. In addition, the charge included $2.2 million to write-off deferred tax assets related to the compensation of certain executive officers that will no longer be deductible.

We currently expect that the federal and state effective tax rate for 2018 will be between 22 percent and 23 percent, compared to 33.8 percent for 2017, excluding the tax effects of equity compensation arrangements and similar discrete items.

Net Interest Revenue

Net interest revenue was $216.9 million for the fourth quarter of 2017, a decrease of $1.6 million compared to the third quarter of 2017.

Net interest margin was 2.97 percent for the fourth quarter of 2017, compared to 3.01 percent for the third quarter of 2017. Recoveries of foregone interest primarily related to nonaccruing energy loans added $4.7 million to net interest revenue and 6 basis points to net interest margin for the third quarter. Excluding the impact of interest recoveries in the third quarter, the yield on average earning assets was 3.49 percent, a 5 basis point increase over the prior quarter and the yield on the loan portfolio increased 9 basis points to 4.29 percent. The yield on the available for sale securities portfolio increased 4 basis points to 2.21 percent. Funding costs were 0.79 percent, up 4 basis points. The cost of interest-bearing deposits increased 3 basis points to 0.48 percent as market pricing pressure remained relatively subdued. The cost of other borrowed funds was up 5 basis points to 1.28 percent.

Average earning assets increased $122 million during the fourth quarter of 2017. Fair value option securities held as an economic hedge of our mortgage servicing rights increased $108 million. Average trading securities balances increased $69 million. This growth was partially offset by a $76 million decrease in average loan balances primarily due to lower commercial and commercial real estate balances, partially offset by growth in residential mortgage and personal loans. Average interest-bearing deposits increased $14 million over the third quarter of 2017. The average balance of borrowed funds increased $124 million.

Fees and Commissions Revenue

Fees and commissions revenue totaled $168.2 million for the fourth quarter of 2017, a $5.3 million decrease compared to the third quarter of 2017.

Fiduciary and asset management revenue grew $1.1 million or 3 percent over the third quarter of 2017. Total assets under management or in custody totaled $81.8 billion, up 5 percent since September 30 due to a combination of net cash inflows and higher asset valuation.

Mortgage banking revenue totaled $24.4 million, unchanged from the previous quarter. Production volume was down 9 percent from the previous quarter due primarily to the effect of higher interest rates. The impact of decreased production volume on revenue was offset by improved pricing margin.

Transaction card revenue decreased $3.3 million compared to the third quarter of 2017 primarily due to a customer early termination fee received in the third quarter. Additionally, other revenue decreased $1.9 million primarily as a result of the sale of a consolidated merchant banking investment. Other expense also decreased as a result of the sale.

Operating Expenses

Total operating expenses were $264.0 million for the fourth quarter of 2017, a decrease of $1.9 million compared to the third quarter of 2017.

Personnel costs decreased $2.6 million compared to the previous quarter. Employee benefits expense decreased $1.8 million primarily due to lower pension costs. Regular salary expense decreased $798 thousand while incentive compensation expense remained relatively flat.

Non-personnel expense increased $634 thousand over the third quarter of 2017. Professional fees increased $3.1 million primarily due to project costs related to the new online account opening product. The fourth quarter also included a $2.0 million contribution to the BOKF Foundation. Net losses and operating expenses of repossessed assets decreased $5.7 million. A $4.7 million write-down of a set of oil and gas properties was recognized in the third quarter.

Loans, Deposits and Capital

Loans

Outstanding loans were $17.2 billion at December 31, 2017, a $53 million decrease compared to September 30. Decreased commercial and commercial real estate loan balances were partially offset by growth in residential mortgage and personal loans.

Outstanding commercial loan balances decreased $62 million compared to September 30, 2017. Wholesale/retail sector loan balances decreased $187 million and manufacturing sector loan balances decreased $23 million. Healthcare sector loans grew by $75 million over the prior quarter and energy sector loans were up $62 million over September 30, 2017.

Unfunded energy loan commitments grew by $182 million in the fourth quarter to $2.9 billion. All other unfunded commercial loan commitments totaled $4.8 billion at December 31, 2017, largely unchanged compared to September 30, 2017.

Commercial real estate loans decreased by $38 million compared to September 30, 2017 due primarily to continued pay-down activity as borrowers took advantage of favorable long-term rates and refinanced into the permanent market. Retail sector loans decreased by $34 million, multifamily residential loans decreased by $19 million and loans secured by industrial facilities decreased by $18 million. Loans secured by office buildings increased $35 million. Unfunded commercial real estate loan commitments totaled $1.2 billion at December 31, 2017, a $112 million increase over September 30, 2017.

Residential mortgage loans grew by $28 million and personal loans were up $19 million over the prior quarter.

Deposits

Period-end deposits totaled $22.1 billion at December 31, 2017, a $213 million increase over September 30, 2017. Interest-bearing transaction account balances grew by $225 million and demand deposit balances increased $58 million, partially offset by a $74 million decrease in time deposits. Among the lines of business, Commercial Banking deposits increased $220 million and Wealth Management deposits increased $163 million, partially offset by a $147 million decrease in Consumer Banking deposits.

Capital

The company's common equity Tier 1 capital ratio was 11.95 percent at December 31, 2017. In addition, the Company's Tier 1 capital ratio was 11.95 percent, total capital ratio was 13.43 percent and leverage ratio was 9.31 percent at December 31, 2017. At September 30, 2017, the Company's common equity Tier 1 capital ratio was 11.90 percent, Tier 1 capital ratio was 11.90 percent, total capital ratio was 13.47 percent and leverage ratio was 9.30 percent.

The company's tangible common equity ratio, a non-GAAP measure, was 9.50 percent at December 31, 2017 and 9.23 percent at September 30, 2017. 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.

Credit Quality

Nonperforming assets totaled $290 million or 1.69 percent of outstanding loans and repossessed assets at December 31, 2017, down from $328 million or 1.90 percent of outstanding loans and repossessed assets at September 30, 2017. Nonperforming assets that are not guaranteed by U.S. government agencies totaled $207 million or 1.22 percent of outstanding loans and repossessed assets (excluding those guaranteed by U.S. government agencies) at December 31, 2017 and $249 million or 1.46 percent at September 30, 2017.

Nonaccruing loans totaled $188 million or 1.10 percent of outstanding loans at December 31, 2017, compared to $226 million or 1.31 percent of outstanding loans at September 30, 2017. New nonaccruing loans identified in the fourth quarter totaled $33 million, offset by $53 million in payments received, $14.7 million in charge-offs and $1.9 million in foreclosures and repossessions. At December 31, 2017, nonaccruing commercial loans totaled $137 million or 1.28 percent of outstanding commercial loans. Nonaccruing commercial real estate loans were only $2.9 million or 0.08 percent of outstanding commercial real estate loans. Nonaccruing residential mortgage loans not guaranteed by U.S. government agencies totaled $38 million or 2.15 percent of outstanding residential mortgage loans.

At December 31, 2017, approximately $51 million of nonaccruing loans required a specific allowance of $8.8 million. No specific allowance was necessary for the remaining $137 million of nonaccruing loans based on estimated cash flows or collateral value. At September 30, 2017, $90 million of nonaccruing loans required a specific allowance of $13 million and no specific allowance was necessary on the remaining $136 million of nonaccruing 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 $241 million at December 31, 2017 from $285 million at September 30, 2017. This decrease largely resulted from energy loans, partially offset by an increase in services and healthcare sector loans.

The company had net charge-offs of $11.7 million or 27 basis points of average loans on an annualized basis for the fourth quarter of 2017, compared to net charge-offs of $3.4 million or 8 basis points of average loans on annualized basis for the third quarter of 2017. Gross charge-offs totaled $14.7 million for the fourth quarter, compared to $5.8 million for the previous quarter. Recoveries totaled $3.1 million for the fourth quarter of 2017 and $2.4 million for the third quarter of 2017.

After evaluating all credit factors, including continued improvement in nonaccruing and potential problem loans, the company determined that a $7.0 million negative provision for credit losses was appropriate during the fourth quarter of 2017. No provision for credit losses was recorded in the third quarter of 2017.

The combined allowance for credit losses totaled $234 million or 1.37 percent of outstanding loans and 131 percent of nonaccruing loans, excluding loans guaranteed by U.S. government agencies, at December 31, 2017. The allowance for loan losses was $231 million and the accrual for off-balance sheet credit losses was $3.7 million. At September 30, 2017, the combined allowance for credit losses was $253 million or 1.47 percent of outstanding loans and 117 percent of nonaccruing loans, excluding loans guaranteed by U.S. government agencies. The allowance for loan losses was $248 million and the accrual for off-balance sheet credit losses was $5.4 million.

Securities and Derivatives

The fair value of the available for sale securities portfolio totaled $8.3 billion at December 31, 2017 and $8.4 billion at September 30, 2017. At December 31, 2017, the available for sale portfolio consisted primarily of $5.3 billion of residential mortgage-backed securities fully backed by U.S. government agencies and $2.8 billion of commercial mortgage-backed securities fully backed by U.S. government agencies.

The available for sale securities portfolio had a net unrealized loss of $47 million at December 31, 2017, compared to a net unrealized gain of $14 million at September 30, 2017. The increase in net unrealized loss was primarily due to an increase in interest rates during the fourth quarter.

The Company also maintains a portfolio of financial instruments consisting primarily of residential mortgage-backed securities issued by U.S. government agencies and interest rate derivative contracts held 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 $1.3 million during the fourth quarter of 2017, including a $5.9 million increase in the fair value of mortgage servicing rights, a $7.3 million decrease in the fair value of securities and derivative contracts held as an economic hedge and $2.7 million of related net interest revenue.

The fair value of mortgage servicing rights, net of economic hedge, increased by $1.0 million in the third quarter. The fair value of securities and interest rate derivative contracts held as an economic hedge of mortgage servicing rights increased by $1.7 million. Related net interest revenue was $2.5 million during the third quarter of 2017.

Conference Call and Webcast

The Company will hold a conference call at 9 a.m. Central time on Wednesday, January 24, 2018 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 1-412-317-6671 and referencing replay PIN number 13675236.

About BOK Financial Corporation

BOK Financial is a $32 billion regional financial services company based in Tulsa, Oklahoma. The Company's stock is publicly traded on NASDAQ under the Global Select market listings (symbol: BOKF). BOK Financial's holdings include BOKF, NA, BOK Financial Securities, Inc. and The Milestone Group, Inc. BOKF, NA operates TransFund, Cavanal Hill Investment Management, BOK Financial Asset Management, Inc. and seven banking divisions: Bank of Albuquerque, Bank of Arizona, Bank of Arkansas, 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 December 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, 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)

	Dec. 31, 2017			Sept. 30, 2017			Dec. 31, 2016
ASSETS
Cash and due from banks	$	602,510		$	547,203		$	620,846
Interest-bearing cash and cash equivalents	1,714,544			1,926,779			1,916,651
Trading securities	462,676			614,117			337,628
Investment securities	461,793			466,562			546,145
Available for sale securities	8,321,578			8,383,199			8,676,829
Fair value option securities	755,054			819,531			77,046
Restricted equity securities	320,189			347,542			307,240
Residential mortgage loans held for sale	221,378			275,643			301,897
Loans:
Commercial	10,733,975			10,795,934			10,390,824
Commercial real estate	3,479,987			3,518,142			3,809,046
Residential mortgage	1,973,686			1,945,750			1,949,832
Personal	965,776			947,008			839,958
Total loans	17,153,424			17,206,834			16,989,660
Allowance for loan losses	(230,682		)	(247,703		)	(246,159		)
Loans, net of allowance	16,922,742			16,959,131			16,743,501
Premises and equipment, net	317,335			320,060			325,849
Receivables	442,897			314,251			772,952
Goodwill	447,430			446,697			448,899
Intangible assets, net	28,658			39,013			46,931
Mortgage servicing rights, net	252,867			245,858			247,073
Real estate and other repossessed assets, net	28,437			32,535			44,287
Derivative contracts, net	220,502			352,559			689,872
Cash surrender value of bank-owned life insurance	316,498			314,201			308,430
Receivable on unsettled securities sales	75,980			230,225			7,188
Other assets	359,092			370,409			353,017
TOTAL ASSETS	$	32,272,160		$	33,005,515		$	32,772,281

LIABILITIES AND EQUITY
Deposits:
Demand	$	9,243,338		$	9,185,481		$	9,235,720
Interest-bearing transaction	10,250,393			10,025,084			10,865,105
Savings	469,158			465,225			425,470
Time	2,098,416			2,172,289			2,221,800
Total deposits	22,061,305			21,848,079			22,748,095
Funds purchased	58,628			62,356			57,929
Repurchase agreements	516,335			328,189			668,661
Other borrowings	5,134,897			6,241,275			4,846,072
Subordinated debentures	144,677			144,668			144,640
Accrued interest, taxes, and expense	164,895			152,029			146,704
Due on unsettled securities purchases	151,198			160,781			6,508
Derivative contracts, net	171,963			336,327			664,531
Other liabilities	349,928			217,372			182,784
TOTAL LIABILITIES	28,753,826			29,491,076			29,465,924
Shareholders' equity:
Capital, surplus and retained earnings	3,524,991			3,482,057			3,285,821
Accumulated other comprehensive income (loss)	(29,624		)	6,757			(10,967		)
TOTAL SHAREHOLDERS' EQUITY	3,495,367			3,488,814			3,274,854
Non-controlling interests	22,967			25,625			31,503
TOTAL EQUITY	3,518,334			3,514,439			3,306,357
TOTAL LIABILITIES AND EQUITY	$	32,272,160		$	33,005,515		$	32,772,281

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

	Three Months Ended
	Dec. 31, 2017			Sept. 30, 2017			June 30, 2017			Mar. 31, 2017			Dec. 31, 2016
ASSETS
Interest-bearing cash and cash equivalents	$	1,976,395		$	1,965,645		$	2,007,746		$	2,087,964		$	2,032,785
Trading securities	560,321			491,613			456,028			579,549			476,498
Investment securities	462,869			475,705			499,372			530,936			542,869
Available for sale securities	8,435,916			8,428,353			8,384,057			8,567,049			8,766,555
Fair value option securities	792,647			684,571			476,102			416,524			210,733
Restricted equity securities	337,673			328,677			295,743			312,498			334,114
Residential mortgage loans held for sale	257,927			256,343			245,401			220,325			345,066
Loans:
Commercial	10,751,235			10,827,198			10,604,456			10,414,579			10,228,095
Commercial real estate	3,485,583			3,528,330			3,676,976			3,903,850			3,749,393
Residential mortgage	1,976,860			1,951,385			1,933,091			1,962,759			1,919,296
Personal	967,329			949,750			915,010			854,637			826,804
Total loans	17,181,007			17,256,663			17,129,533			17,135,825			16,723,588
Allowance for loan losses	(246,143		)	(250,590		)	(251,632		)	(249,379		)	(246,977		)
Total loans, net	16,934,864			17,006,073			16,877,901			16,886,446			16,476,611
Total earning assets	29,758,612			29,636,980			29,242,350			29,601,291			29,185,231
Cash and due from banks	576,737			546,653			530,352			547,104			578,694
Derivative contracts, net	292,961			238,583			248,168			401,886			681,455
Cash surrender value of bank-owned life insurance	315,034			313,079			311,310			309,223			309,532
Receivable on unsettled securities sales	49,219			76,622			79,248			62,641			33,813
Other assets	2,459,552			2,196,253			1,957,143			2,032,844			2,172,351
TOTAL ASSETS	$	33,452,115		$	33,008,170		$	32,368,571		$	32,954,989		$	32,961,076

LIABILITIES AND EQUITY
Deposits:
Demand	$	9,417,351		$	9,389,849		$	9,338,683		$	9,101,763		$	9,124,595
Interest-bearing transaction	10,142,744			10,088,522			10,087,640			10,567,475			9,980,132
Savings	466,496			464,130			461,586			441,254			421,654
Time	2,134,469			2,176,820			2,204,422			2,258,930			2,177,035
Total deposits	22,161,060			22,119,321			22,092,331			22,369,422			21,703,416
Funds purchased	63,713			49,774			63,263			55,508			62,004
Repurchase agreements	424,617			361,512			427,353			523,561			560,891
Other borrowings	6,209,903			6,162,641			5,572,031			5,737,955			6,072,150
Subordinated debentures	144,673			144,663			144,654			144,644			144,635
Derivative contracts, net	288,408			221,371			178,695			405,444			682,808
Due on unsettled securities purchases	218,684			145,155			157,438			91,529			77,575
Other liabilities	425,667			319,092			323,373			299,534			321,404
TOTAL LIABILITIES	29,936,725			29,523,529			28,959,138			29,627,597			29,624,883
Total equity	3,515,390			3,484,641			3,409,433			3,327,392			3,336,193
TOTAL LIABILITIES AND EQUITY	$	33,452,115		$	33,008,170		$	32,368,571		$	32,954,989		$	32,961,076

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

	Three Months Ended							Year Ended
	Dec. 31,							Dec. 31,
	2017				2016			2017				2016

Interest revenue	$	255,767			$	215,737		$	972,751			$	829,117
Interest expense	38,904				21,539			131,050				81,889
Net interest revenue	216,863				194,198			841,701				747,228
Provision for credit losses	(7,000		)		—			(7,000		)		65,000
Net interest revenue after provision for credit losses	223,863				194,198			848,701				682,228
Other operating revenue:
Brokerage and trading revenue	33,045				28,500			131,601				138,377
Transaction card revenue¹	29,536				29,682			119,988				116,452
Fiduciary and asset management revenue	41,767				34,535			162,893				135,477
Deposit service charges and fees¹	27,685				28,204			112,075				111,499
Mortgage banking revenue	24,362				28,414			104,719				133,914
Other revenue	11,762				12,693			52,168				51,029
Total fees and commissions	168,157				162,028			683,444				686,748
Other gains (losses), net	552				(1,279		)	9,004				4,030
Gain (loss) on derivatives, net	(3,045		)		(35,815		)	779				(15,685		)
Loss on fair value option securities, net	(4,238		)		(20,922		)	(2,733		)		(10,555		)
Change in fair value of mortgage servicing rights	5,898				39,751			172				(2,193		)
Gain (loss) on available for sale securities, net	(488		)		(9		)	4,428				11,675
Total other operating revenue	166,836				143,754			695,094				674,020
Other operating expense:
Personnel	145,329				141,132			573,408				553,119
Business promotion	7,317				7,344			28,877				26,582
Charitable contributions to BOKF Foundation	2,000				2,000			2,000				2,000
Professional fees and services	15,344				16,828			51,067				56,783
Net occupancy and equipment	22,403				21,470			86,477				80,024
Insurance	6,555				8,705			19,653				32,489
Data processing and communications	38,411				33,691			146,970				131,841
Printing, postage and supplies	3,781				3,998			15,689				15,584
Net losses and operating expenses of repossessed assets	340				1,627			9,687				3,359
Amortization of intangible assets	1,430				1,558			6,779				6,862
Mortgage banking costs	14,331				17,348			52,856				61,387
Other expense	6,746				9,846			32,054				47,560
Total other operating expense	263,987				265,547			1,025,517				1,017,590

Net income before taxes	126,712				72,405			518,278				338,658
Federal and state income taxes	54,347				22,496			182,593				106,377

Net income	72,365				49,909			335,685				232,281
Net income (loss) attributable to non-controlling interests	(127		)		(117		)	1,041				(387		)
Net income attributable to BOK Financial Corporation shareholders	$	72,492			$	50,026		$	334,644			$	232,668

Average shares outstanding:
Basic	64,793,005				64,719,018			64,745,364				65,085,627
Diluted	64,843,179				64,787,728			64,806,284				65,143,898

Net income per share:
Basic	$	1.11		²	$	0.76		$	5.11		^2.00	$	3.53
Diluted	$	1.11		²	$	0.76		$	5.11		^2.00	$	3.53


¹	Checkcard revenue was reclassified from transaction card revenue to deposit service charges and fees.


²	EPS decreased $0.18 due to tax reform.

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

	Three Months Ended
	Dec. 31, 2017			Sept. 30, 2017			June 30, 2017			Mar. 31, 2017			Dec. 31, 2016
Capital:
Period-end shareholders' equity	$	3,495,367		$	3,488,814		$	3,422,469		$	3,341,744		$	3,274,854
Risk weighted assets	$	25,733,711		$	25,409,728		$	25,130,802		$	24,901,019		$	25,274,848
Risk-based capital ratios:
Common equity tier 1	11.95		%	11.90		%	11.76		%	11.59		%	11.21		%
Tier 1	11.95		%	11.90		%	11.76		%	11.59		%	11.21		%
Total capital	13.43		%	13.47		%	13.36		%	13.25		%	12.81		%
Leverage ratio	9.31		%	9.30		%	9.27		%	8.89		%	8.72		%
Tangible common equity ratio¹	9.50		%	9.23		%	9.24		%	8.88		%	8.61		%

Common stock:
Book value per share	$	53.45		$	53.30		$	52.32		$	51.09		$	50.12
Tangible book value per share	46.17			45.88			44.87			43.63			42.53
Market value per share:
High	$	93.97		$	90.69		$	88.31		$	85.25		$	85.00
Low	$	79.67		$	77.10		$	74.09		$	73.44		$	67.11
Cash dividends paid	$	29,328		$	28,655		$	28,652		$	28,646		$	28,860
Dividend payout ratio	40.46		%	33.46		%	32.50		%	32.42		%	57.69		%
Shares outstanding, net	65,394,937			65,456,786			65,416,403			65,408,019			65,337,432

Stock buy-back program:
Shares repurchased	80,000			—			—			—			700,000
Amount	$	7,403		$	—		$	—		$	—		$	49,021
Average price per share	$	92.54		$	—		$	—		$	—		$	70.03

Performance ratios (quarter annualized):
Return on average assets	0.86		%	1.03		%	1.09		%	1.09		%	0.60		%
Return on average equity	8.24		%	9.83		%	10.46		%	10.86		%	6.03		%
Net interest margin	2.97		%	3.01		%	2.89		%	2.81		%	2.69		%
Efficiency ratio	66.89		%	66.77		%	64.61		%	65.77		%	72.93		%

Reconciliation of non-GAAP measures:
¹ Tangible common equity ratio:
Total shareholders' equity	$	3,495,367		$	3,488,814		$	3,422,469		$	3,341,744		$	3,274,854
Less: Goodwill and intangible assets, net	476,088			485,710			487,452			488,294			495,830
Tangible common equity	$	3,019,279		$	3,003,104		$	2,935,017		$	2,853,450		$	2,779,024

Total assets	$	32,272,160		$	33,005,515		$	32,263,532		$	32,628,932		$	32,772,281
Less: Goodwill and intangible assets, net	476,088			485,710			487,452			488,294			495,830
Tangible assets	$	31,796,072		$	32,519,805		$	31,776,080		$	32,140,638		$	32,276,451

Tangible common equity ratio	9.50		%	9.23		%	9.24		%	8.88		%	8.61		%

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

	Three Months Ended
	Dec. 31, 2017			Sept. 30, 2017			June 30, 2017			Mar. 31, 2017			Dec. 31, 2016
Other data:
Fiduciary assets	$	48,761,477		$	45,177,185		$	45,089,153		$	44,992,920		$	42,378,053
Tax equivalent adjustment	$	4,131		$	4,314		$	4,330		$	4,428		$	4,389
Net unrealized gain (loss) on available for sale securities	$	(47,497	)	$	14,061		$	16,041		$	(5,537	)	$	(14,899	)

Mortgage banking:
Mortgage production revenue	$	7,786		$	8,329		$	13,840		$	8,543		$	11,937
Mortgage loans funded for sale	$	840,080		$	832,796		$	902,978		$	711,019		$	1,189,975
Add: current period-end outstanding commitments	222,919			334,337			362,088			381,732			318,359
Less: prior period end outstanding commitments	334,337			362,088			381,732			318,359			630,804
Total mortgage production volume	$	728,662		$	805,045		$	883,334		$	774,392		$	877,530

Mortgage loan refinances to mortgage loans funded for sale	47		%	38		%	33		%	44		%	63		%
Gain on sale margin	1.07		%	1.03		%	1.57		%	1.10		%	1.36		%
Mortgage servicing revenue	$	16,576		$	16,561		$	16,436		$	16,648		$	16,477
Average outstanding principal balance of mortgage loans serviced for others	22,054,877			22,079,177			22,055,127			22,006,295			21,924,552
Average mortgage servicing revenue rates	0.30		%	0.30		%	0.30		%	0.31		%	0.30		%

Gain (loss) on mortgage servicing rights, net of economic hedge:
Gain (loss) on mortgage hedge derivative contracts, net	$	(3,057	)	$	1,025		$	3,241		$	(528	)	$	(35,868	)
Gain (loss) on fair value option securities, net	(4,238		)	661			1,984			(1,140		)	(20,922		)
Gain (loss) on economic hedge of mortgage servicing rights	(7,295		)	1,686			5,225			(1,668		)	(56,790		)
Gain (loss) on changes in fair value of mortgage servicing rights	5,898			(639		)	(6,943		)	1,856			39,751
Gain (loss) on changes in fair value of mortgage servicing rights, net of economic hedges, included in other operating revenue	(1,397		)	1,047			(1,718		)	188			(17,039		)
Net interest revenue on fair value option securities²	2,656			2,543			1,965			1,271			114
Total economic benefit (cost) of changes in the fair value of mortgage servicing rights, net of economic hedges	$	1,259		$	3,590		$	247		$	1,459		$	(16,925	)

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

Interest revenue	$	255,767			$	255,413		$	235,181		$	226,390		$	215,737
Interest expense	38,904				36,961			29,977			25,208			21,539
Net interest revenue	216,863				218,452			205,204			201,182			194,198
Provision for credit losses	(7,000		)		—			—			—			—
Net interest revenue after provision for credit losses	223,863				218,452			205,204			201,182			194,198
Other operating revenue:
Brokerage and trading revenue	33,045				33,169			31,764			33,623			28,500
Transaction card revenue¹	29,536				32,844			30,228			27,380			29,682
Fiduciary and asset management revenue	41,767				40,687			41,808			38,631			34,535
Deposit service charges and fees¹	27,685				28,191			28,422			27,777			28,204
Mortgage banking revenue	24,362				24,890			30,276			25,191			28,414
Other revenue	11,762				13,670			14,984			11,752			12,693
Total fees and commissions	168,157				173,451			177,482			164,354			162,028
Other gains (losses), net	552				(1,283		)	6,108			3,627			(1,279		)
Gain (loss) on derivatives, net	(3,045		)		1,033			3,241			(450		)	(35,815		)
Gain (loss) on fair value option securities, net	(4,238		)		661			1,984			(1,140		)	(20,922		)
Change in fair value of mortgage servicing rights	5,898				(639		)	(6,943		)	1,856			39,751
Gain (loss) on available for sale securities, net	(488		)		2,487			380			2,049			(9		)
Total other operating revenue	166,836				175,710			182,252			170,296			143,754
Other operating expense:
Personnel	145,329				147,910			143,744			136,425			141,132
Business promotion	7,317				7,105			7,738			6,717			7,344
Contribution to BOKF Foundation	2,000				—			—			—			2,000
Professional fees and services	15,344				11,887			12,419			11,417			16,828
Net occupancy and equipment	22,403				21,325			21,125			21,624			21,470
Insurance	6,555				6,005			689			6,404			8,705
Data processing and communications	38,411				37,327			36,330			34,902			33,691
Printing, postage and supplies	3,781				3,917			4,140			3,851			3,998
Net losses and operating expenses of repossessed assets	340				6,071			2,267			1,009			1,627
Amortization of intangible assets	1,430				1,744			1,803			1,802			1,558
Mortgage banking costs	14,331				13,450			12,072			13,003			17,348
Other expense	6,746				9,193			8,558			7,557			9,846
Total other operating expense	263,987				265,934			250,885			244,711			265,547
Net income before taxes	126,712				128,228			136,571			126,767			72,405
Federal and state income taxes	54,347				42,438			47,705			38,103			22,496
Net income	72,365				85,790			88,866			88,664			49,909
Net income (loss) attributable to non-controlling interests	(127		)		141			719			308			(117		)
Net income attributable to BOK Financial Corporation shareholders	$	72,492			$	85,649		$	88,147		$	88,356		$	50,026

Average shares outstanding:
Basic	64,793,005				64,742,822			64,729,752			64,715,964			64,719,018
Diluted	64,843,179				64,805,172			64,793,134			64,783,737			64,787,728
Net income per share:
Basic	$	1.11		^2.00	$	1.31		$	1.35		$	1.35		$	0.76
Diluted	$	1.11		^2.00	$	1.31		$	1.35		$	1.35		$	0.76


¹	Checkcard revenue was reclassified from transaction card revenue to deposit service charges and fees.


²	EPS decreased $0.18 due to tax reform.

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

	Dec. 31, 2017		Sept. 30, 2017		June 30, 2017		Mar. 31, 2017		Dec. 31, 2016
Commercial:
Services	$	2,986,949	$	2,967,513	$	2,958,827	$	3,013,375	$	3,108,990
Energy	2,930,156		2,867,981		2,847,240		$	2,537,112	2,497,868
Healthcare	2,314,753		2,239,451		2,221,518		2,265,604		2,201,916
Wholesale/retail	1,471,256		1,658,098		1,543,695		1,506,243		1,576,818
Manufacturing	496,774		519,446		546,137		543,430		514,975
Other commercial and industrial	534,087		543,445		520,538		461,346		490,257
Total commercial	10,733,975		10,795,934		10,637,955		10,327,110		10,390,824

Commercial real estate:
Multifamily	980,017		999,009		952,380		922,991		903,272
Office	831,770		797,089		862,973		860,889		798,888
Retail	691,532		725,865		722,805		745,046		761,888
Industrial	573,014		591,080		693,635		871,463		871,749
Residential construction and land development	117,245		112,102		141,592		135,994		135,533
Other real estate	286,409		292,997		315,207		334,680		337,716
Total commercial real estate	3,479,987		3,518,142		3,688,592		3,871,063		3,809,046

Residential mortgage:
Permanent mortgage	1,043,435		1,013,965		989,040		977,743		1,006,820
Permanent mortgages guaranteed by U.S. government agencies	197,506		187,370		191,729		204,181		199,387
Home equity	732,745		744,415		758,429		764,350		743,625
Total residential mortgage	1,973,686		1,945,750		1,939,198		1,946,274		1,949,832

Personal	965,776		947,008		917,900		847,459		839,958

Total	$	17,153,424	$	17,206,834	$	17,183,645	$	16,991,906	$	16,989,660

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

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

Bank of Oklahoma:
Commercial	$	3,238,720	$	3,408,973	$	3,369,967	$	3,189,183	$	3,370,259
Commercial real estate	682,037		712,915		667,932		691,332		684,381
Residential mortgage	1,435,432		1,405,900		1,398,021		1,404,054		1,407,197
Personal	342,212		322,320		318,016		310,708		303,823
Total Bank of Oklahoma	5,698,401		5,850,108		5,753,936		5,595,277		5,765,660

Bank of Texas:
Commercial	4,520,401		4,434,595		4,339,634		4,148,316		4,022,455
Commercial real estate	1,261,864		1,236,702		1,360,164		1,452,988		1,415,011
Residential mortgage	233,675		229,993		232,074		231,647		233,981
Personal	375,084		375,173		354,222		312,092		306,748
Total Bank of Texas	6,391,024		6,276,463		6,286,094		6,145,043		5,978,195

Bank of Albuquerque:
Commercial	343,296		367,747		369,370		407,403		399,256
Commercial real estate	341,282		319,208		324,405		307,927		284,603
Residential mortgage	98,018		101,983		103,849		106,432		108,058
Personal	11,721		12,953		12,439		11,305		11,483
Total Bank of Albuquerque	794,317		801,891		810,063		833,067		803,400

Bank of Arkansas:
Commercial	95,644		91,051		85,020		88,010		86,577
Commercial real estate	87,393		80,917		73,943		74,469		73,616
Residential mortgage	6,596		6,318		6,395		6,829		7,015
Personal	9,992		10,388		11,993		6,279		6,524
Total Bank of Arkansas	199,625		188,674		177,351		175,587		173,732

Colorado State Bank & Trust:
Commercial	1,130,714		1,124,200		1,065,780		998,216		1,018,208
Commercial real estate	174,201		186,427		255,379		266,218		265,264
Residential mortgage	63,350		63,734		63,346		62,313		59,631
Personal	63,115		60,513		56,187		49,523		50,372
Total Colorado State Bank & Trust	1,431,380		1,434,874		1,440,692		1,376,270		1,393,475

Bank of Arizona:
Commercial	687,792		634,809		617,759		643,222		686,253
Commercial real estate	660,094		706,188		705,858		737,088		747,409
Residential mortgage	41,771		40,730		37,034		36,737		36,265
Personal	57,140		55,050		55,528		51,386		52,553
Total Bank of Arizona	1,446,797		1,436,777		1,416,179		1,468,433		1,522,480

Mobank (Kansas City):
Commercial	717,408		734,559		790,425		852,760		807,816
Commercial real estate	273,116		275,785		300,911		341,041		338,762
Residential mortgage	94,844		97,092		98,479		98,262		97,685
Personal	106,512		110,611		109,515		106,166		108,455
Total Mobank (Kansas City)	1,191,880		1,218,047		1,299,330		1,398,229		1,352,718

TOTAL BOK FINANCIAL	$	17,153,424	$	17,206,834	$	17,183,645	$	16,991,906	$	16,989,660

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

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

	Dec. 31, 2017		Sept. 30, 2017		June 30, 2017		Mar. 31, 2017		Dec. 31, 2016
Bank of Oklahoma:
Demand	$	3,885,008	$	4,061,612	$	4,353,421	$	4,320,666	$	3,993,170
Interest-bearing:
Transaction	5,901,293		5,909,259		5,998,787		6,114,288		6,345,536
Savings	265,870		265,023		263,664		265,014		241,696
Time	1,092,133		1,131,547		1,170,014		1,189,144		1,118,355
Total interest-bearing	7,259,296		7,305,829		7,432,465		7,568,446		7,705,587
Total Bank of Oklahoma	11,144,304		11,367,441		11,785,886		11,889,112		11,698,757

Bank of Texas:
Demand	3,239,098		3,094,184		3,121,890		3,091,258		3,137,009
Interest-bearing:
Transaction	2,397,071		2,272,987		2,272,185		2,317,576		2,388,812
Savings	93,620		93,400		91,491		89,640		83,101
Time	502,879		521,072		502,128		511,037		535,642
Total interest-bearing	2,993,570		2,887,459		2,865,804		2,918,253		3,007,555
Total Bank of Texas	6,232,668		5,981,643		5,987,694		6,009,511		6,144,564

Bank of Albuquerque:
Demand	663,353		659,793		612,117		593,117		627,979
Interest-bearing:
Transaction	552,393		551,884		558,523		623,677		590,571
Savings	55,647		53,532		54,136		53,683		49,963
Time	216,743		224,773		229,616		233,506		238,408
Total interest-bearing	824,783		830,189		842,275		910,866		878,942
Total Bank of Albuquerque	1,488,136		1,489,982		1,454,392		1,503,983		1,506,921

Bank of Arkansas:
Demand	30,384		31,442		40,511		42,622		26,389
Interest-bearing:
Transaction	85,095		126,746		129,848		106,804		105,232
Savings	1,881		1,876		2,135		2,304		2,192
Time	14,045		14,434		14,876		15,067		16,696
Total interest-bearing	101,021		143,056		146,859		124,175		124,120
Total Bank of Arkansas	131,405		174,498		187,370		166,797		150,509

Colorado State Bank & Trust:
Demand	633,714		540,300		577,617		601,778		576,000
Interest-bearing:
Transaction	657,629		628,807		626,343		610,510		616,679
Savings	35,223		34,776		35,651		37,801		32,866
Time	224,962		231,927		228,458		234,740		242,782
Total interest-bearing	917,814		895,510		890,452		883,051		892,327
Total Colorado State Bank & Trust	1,551,528		1,435,810		1,468,069		1,484,829		1,468,327

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

	Dec. 31, 2017		Sept. 30, 2017		June 30, 2017		Mar. 31, 2017		Dec. 31, 2016
Bank of Arizona:
Demand	334,701		335,740		366,866		342,854		366,755
Interest-bearing:
Transaction	274,846		174,010		154,457		180,254		305,099
Savings	3,343		4,105		3,638		3,858		2,973
Time	20,394		20,831		19,911		26,112		27,765
Total interest-bearing	298,583		198,946		178,006		210,224		335,837
Total Bank of Arizona	633,284		534,686		544,872		553,078		702,592

Mobank (Kansas City):
Demand	457,080		462,410		496,473		514,278		508,418
Interest-bearing:
Transaction	382,066		361,391		346,996		406,105		513,176
Savings	13,574		12,513		13,603		13,424		12,679
Time	27,260		27,705		31,119		34,242		42,152
Total interest-bearing	422,900		401,609		391,718		453,771		568,007
Total Mobank (Kansas City)	879,980		864,019		888,191		968,049		1,076,425

TOTAL BOK FINANCIAL	$	22,061,305	$	21,848,079	$	22,316,474	$	22,575,359	$	22,748,095

NET INTEREST MARGIN TREND -- UNAUDITED BOK FINANCIAL CORPORATION

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

TAX-EQUIVALENT ASSETS YIELDS
Interest-bearing cash and cash equivalents	1.27	%	1.29	%	1.04	%	0.82	%	0.55	%
Trading securities	3.38	%	3.47	%	3.23	%	3.87	%	3.91	%
Investment securities:
Taxable	5.31	%	5.31	%	5.34	%	5.44	%	5.39	%
Tax-exempt	2.69	%	2.60	%	2.51	%	2.45	%	2.33	%
Total investment securities	3.98	%	3.86	%	3.76	%	3.70	%	3.60	%
Available for sale securities:
Taxable	2.19	%	2.16	%	2.09	%	2.02	%	1.98	%
Tax-exempt	5.41	%	5.27	%	6.09	%	5.37	%	5.27	%
Total available for sale securities	2.21	%	2.17	%	2.11	%	2.05	%	2.00	%
Fair value option securities	2.90	%	2.97	%	2.92	%	2.27	%	0.99	%
Restricted equity securities	5.87	%	5.87	%	5.95	%	5.52	%	5.45	%
Residential mortgage loans held for sale	3.72	%	3.36	%	3.92	%	3.35	%	3.31	%
Loans	4.29	%	4.31	%	4.03	%	3.88	%	3.67	%
Allowance for loan losses
Loans, net of allowance	4.35	%	4.38	%	4.09	%	3.94	%	3.72	%
Total tax-equivalent yield on earning assets	3.49	%	3.50	%	3.30	%	3.15	%	2.98	%

COST OF INTEREST-BEARING LIABILITIES
Interest-bearing deposits:
Interest-bearing transaction	0.35	%	0.32	%	0.26	%	0.20	%	0.16	%
Savings	0.07	%	0.08	%	0.08	%	0.08	%	0.09	%
Time	1.17	%	1.16	%	1.11	%	1.09	%	1.12	%
Total interest-bearing deposits	0.48	%	0.45	%	0.40	%	0.35	%	0.32	%
Funds purchased	0.90	%	0.92	%	0.61	%	0.47	%	0.28	%
Repurchase agreements	0.18	%	0.15	%	0.06	%	0.02	%	0.02	%
Other borrowings	1.36	%	1.29	%	1.09	%	0.83	%	0.61	%
Subordinated debt	5.55	%	5.68	%	5.55	%	5.68	%	5.51	%
Total cost of interest-bearing liabilities	0.79	%	0.75	%	0.63	%	0.52	%	0.44	%
Tax-equivalent net interest revenue spread	2.70	%	2.75	%	2.67	%	2.63	%	2.54	%
Effect of noninterest-bearing funding sources and other	0.27	%	0.26	%	0.22	%	0.18	%	0.15	%
Tax-equivalent net interest margin	2.97	%	3.01	%	2.89	%	2.81	%	2.69	%

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

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

	Three Months Ended
	Dec. 31, 2017		Sept. 30, 2017		June 30, 2017		Mar. 31, 2017		Dec. 31, 2016
Nonperforming assets:
Nonaccruing loans:
Commercial	$	137,303	$	176,900	$	197,157	$	156,825	$	178,953
Commercial real estate	2,855		2,975		3,775		4,475		5,521
Residential mortgage	47,447		45,506		44,235		46,081		46,220
Personal	269		255		272		235		290
Total nonaccruing loans	187,874		225,636		245,439		207,616		230,984
Accruing renegotiated loans guaranteed by U.S. government agencies	73,994		69,440		80,624		83,577		81,370
Real estate and other repossessed assets:	28,437		32,535		39,436		42,726		44,287
Total nonperforming assets	$	290,305	$	327,611	$	365,499	$	333,919	$	356,641
Total nonperforming assets excluding those guaranteed by U.S. government agencies	$	207,132	$	249,280	$	275,823	$	240,234	$	263,425

Nonaccruing loans by loan portfolio sector:
Commercial:
Energy	$	92,284	$	110,683	$	123,992	$	110,425	$	132,499
Services	2,620		1,174		7,754		7,713		8,173
Healthcare	14,765		24,446		24,505		909		825
Wholesale/retail	2,574		1,893		10,620		11,090		11,407
Manufacturing	5,962		9,059		9,656		5,907		4,931
Other commercial and industrial	19,098		29,645		20,630		20,781		21,118
Total commercial	137,303		176,900		197,157		156,825		178,953
Commercial real estate:
Construction and land development	1,832		1,924		2,051		2,616		3,433
Retail	276		289		301		314		326
Office	275		275		396		413		426
Multifamily	—		—		10		24		38
Industrial	—		—		—		76		76
Other commercial real estate	472		487		1,017		1,032		1,222
Total commercial real estate	2,855		2,975		3,775		4,475		5,521
Residential mortgage:
Permanent mortgage	25,193		24,623		23,415		24,188		22,855
Permanent mortgage guaranteed by U.S. government agencies	9,179		8,891		9,052		10,108		11,846
Home equity	13,075		11,992		11,768		11,785		11,519
Total residential mortgage	47,447		45,506		44,235		46,081		46,220
Personal	269		255		272		235		290
Total nonaccruing loans	$	187,874	$	225,636	$	245,439	$	207,616	$	230,984

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

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

Performing loans 90 days past due¹	$	633		$	253		$	1,414		$	95		$	5

Gross charge-offs	$	(14,749	)	$	(5,825	)	$	(2,872	)	$	(2,153	)	$	(1,651	)
Recoveries	3,061			2,437			1,214			2,900			2,813
Net recoveries (charge-offs)	$	(11,688	)	$	(3,388	)	$	(1,658	)	$	747		$	1,162

Provision for credit losses	$	(7,000	)	$	—		$	—		$	—		$	—

Allowance for loan losses to period end loans	1.34		%	1.44		%	1.46		%	1.46		%	1.45		%
Combined allowance for credit losses to period end loans	1.37		%	1.47		%	1.49		%	1.52		%	1.52		%
Nonperforming assets to period end loans and repossessed assets	1.69		%	1.90		%	2.12		%	1.96		%	2.09		%
Net charge-offs (annualized) to average loans	0.27		%	0.08		%	0.04		%	(0.02		)%	(0.03		)%
Allowance for loan losses to nonaccruing loans¹	129.09		%	114.28		%	105.78		%	125.92		%	112.33		%
Combined allowance for credit losses to nonaccruing loans¹	131.18		%	116.78		%	108.51		%	130.70		%	117.46		%

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

BOK FINANCIAL CORP - FORM 8-K - EX-99 - EXHIBIT 99 - January 24, 2018

Attached files