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

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8-K - 8-K - BOK FINANCIAL CORP	a20180331bokfpressrelease8.htm

Exhibit 99 (a)

NASD: BOKF

For Further Information Contact:

Joseph Crivelli

Investor Relations

(918) 595-3027

BOK Financial Reports Quarterly Earnings of $106 million

TULSA, Okla. (Wednesday, April 25, 2018) - BOK Financial Corporation reported net income of $105.6 million or $1.61 per diluted share for the first quarter of 2018. Net income was $72.5 million or $1.11 per diluted share for the fourth quarter of 2017 and $88.4 million or $1.35 per diluted share for the first quarter of 2017. Lower federal corporate income tax rates decreased income tax expense for the first quarter of 2018 by approximately $13.8 million. Accounting for the Tax Cuts and Jobs Act increased income tax expense for the fourth quarter of 2017 by $11.7 million.

Steven G. Bradshaw, president and chief executive officer, stated, “The entire company executed extremely well in the first quarter, resulting in one of the strongest quarters in company history. Loan growth accelerated, driven by growth in key lending businesses including energy, healthcare, commercial and industrial, and commercial real estate. We continued to benefit from the current interest rate environment and saw an additional uptick in net interest margin, which in conjunction with higher earning assets led to a significant increase in net interest revenue. Our fee–generating businesses benefited from higher gain–on–sale margins in the mortgage business, and our robust wealth management business surpassed $100 million in total revenue for the first time in company history. Finally, we continue to maintain expense discipline across the company, which has resulted in material earnings leverage and growth in pretax income.”

Bradshaw added, “The economy across the BOK Financial footprint is strong, the financial markets are healthy, and the credit environment remains benign with no trouble spots on the horizon. Accordingly, we are optimistic about prospects for continued earnings growth through the remainder of 2018.”

First Quarter 2018 Highlights


•	Net interest revenue totaled $219.7 million for the first quarter of 2018, an increase of $2.9 million over the fourth quarter of 2017. Net interest margin increased to 2.99 percent for the first quarter of 2018 from 2.97 percent for the fourth quarter of 2017. Average earning assets grew by $120 million over the prior quarter.

•

Fees and commissions revenue totaled $159.0 million for the first quarter of 2018, largely unchanged compared to the fourth quarter of 2017 on a comparable presentation basis. Adoption of the new revenue recognition accounting standard in the first quarter of 2018 resulted in $9.5 million of interchange fees we pay to issuing banks being netted against transaction card revenue. Previously these costs were included in data processing and communications expense. Increased mortgage banking and transaction card revenue were offset by decreased brokerage and trading revenue.

•

Operating expense was $244.4 million for the first quarter of 2018, a $10.1 million decrease compared to the fourth quarter of 2017 on a comparable presentation basis. Personnel expense decreased $5.4 million, primarily due to decreased incentive compensation expense. Non-personnel expense decreased $4.7 million. Lower professional fees and services expense and mortgage banking expense were partially offset by a write-down of certain repossessed oil and gas properties.

•

Income tax expense was $30.9 million or 22.7 percent of net income before taxes for the first quarter of 2018 compared to $54.3 million or 42.9 percent for the fourth quarter of 2017. Beginning January 1, 2018, the Tax Cuts and Jobs Act decreased the corporate income tax rate from 35% to 21%. Accounting for the Act required us to revalue our deferred tax assets and liabilities in 2017. We anticipate our effective tax rate to be between 22 percent and 23 percent for 2018.

•

The Company recorded a $5.0 million negative provision for credit losses in the first quarter of 2018, due to improved credit metric trends. A $7.0 million negative provision for credit losses was recorded in the fourth quarter of 2017. The company had net charge-offs of $1.3 million or 0.03 percent of average loans on an annualized basis in the first quarter of 2018, compared to net charge-offs of $11.7 million or 0.27 percent of average loans on an annualized basis for the fourth quarter of 2017.


•	The combined allowance for credit losses totaled $228 million or 1.32 percent of outstanding loans at March 31, 2018, compared to $234 million or 1.37 percent of outstanding loans at December 31, 2017.


•	Nonperforming assets that are not guaranteed by U.S. government agencies totaled $195 million or 1.13 percent of outstanding loans and repossessed assets at March 31, 2018 and $207 million or 1.22 percent of outstanding loans and repossessed assets at December 31, 2017. In addition, potential problem loans decreased $19 million to $222 million at March 31, 2018.


•	Average loan balances grew by $80 million over the previous quarter, primarily due to growth in commercial loan balances. Period-end outstanding loan balances totaled $17.3 billion at March 31, 2018, a $184 million increase over December 31, 2017.


•	Average deposits were largely unchanged compared to the previous quarter. Average demand deposit balances decreased by $266 million, largely offset by a $202 million increase in interest-bearing transaction deposit balances. Period-end deposits were $22.2 billion at March 31, 2018, a $144 million increase over December 31, 2017.

•

The common equity Tier 1 capital ratio at March 31, 2018 was 12.06 percent. Other regulatory capital ratios were Tier 1 capital ratio, 12.06 percent, total capital ratio, 13.49 percent, and leverage ratio, 9.40 percent. At December 31, 2017, the common equity Tier 1 capital ratio was 12.05 percent, the Tier 1 capital ratio was 12.05 percent, total capital ratio was 13.54 percent, and leverage ratio was 9.31 percent.


•	The company paid a regular cash dividend of $29.3 million or $0.45 per common share during the first quarter of 2018. On April 24, 2018, the board of directors approved a quarterly cash dividend of $0.45 per common share payable on or about May 25, 2018 to shareholders of record as of May 11, 2018.


•	The company repurchased 82,583 common shares at an average price of $91.83 per share during the first quarter of 2018. The company repurchased 80,000 common shares at an average price of $92.54 per share during the fourth quarter of 2017.

Net Interest Revenue

Net interest revenue was $219.7 million for the first quarter of 2018, a $2.9 million increase over the fourth quarter of 2017.

Net interest margin was 2.99 percent for the first quarter of 2018, an increase of 2 basis points over the fourth quarter of 2017. Lower federal income tax rates which became effective on January 1, 2018 decreased net interest margin by approximately 3 basis points. The yield on average earning assets was 3.61 percent, an increase of 12 basis points over the prior quarter. The loan portfolio yield was 4.45 percent, up 16 basis points. The yield on the available for sale securities portfolio increased 2 basis points to 2.23 percent. The yield on interest-bearing cash and cash equivalents increased 30 basis points. Funding costs were 0.93 percent, up 14 basis points. The cost of interest-bearing deposits increased 9 basis points to 0.57 percent. The cost of other borrowed funds was up 22 basis points to 1.50 percent. The benefit to net interest margin from assets funded by non-interest liabilities increased to 31 basis points from 27 basis points in the fourth quarter of 2017.

Average earning assets increased $120 million over the first quarter of 2018. Trading securities balances increased $373 million. Average interest-bearing cash and cash equivalents balances were up $83 million. Average loan balances grew by $80 million. Available for sale securities decreased $199 million and fair value option securities held as an economic hedge of our mortgage servicing rights decreased $166 million. Average interest-bearing deposit balances increased $232 million over the fourth quarter of 2017. The average balance of borrowed funds increased $161 million.

Fees and Commissions Revenue

Fees and commissions revenue totaled $159.0 million for the first quarter of 2018. Excluding the netting impact from the implementation of the revenue recognition accounting standard, this is consistent with results from the fourth quarter of 2017.

Brokerage and trading revenue decreased $2.4 million compared to the fourth quarter of 2017 due primarily to the timing and volume of completed investment banking transactions. Many municipal and public school district customers completed offerings in the previous quarter in advance of tax law changes.

Mortgage banking revenue totaled $26.0 million for the first quarter of 2018, a $1.7 million increase compared to the fourth quarter of 2017. Revenue from mortgage loan production increased $1.7 million. Internal changes to better manage our loan production pipeline, improved values of originated servicing rights and an increase in delivery through the retail channel resulted in a 21 basis point increase in gain on sale margin. Loan production volume increased $12 million.

Operating Expense

Total operating expense was $244.4 million for the first quarter of 2018, a $10.0 million decrease compared to the fourth quarter of 2017 on a comparable presentation basis.

Personnel expense decreased $5.4 million. Incentive compensation expense decreased $10.6 million primarily due to changes in assumptions for performance compensation awards. The predominant factor used to measure performance for certain share-based and executive cash-based incentives, our earnings per share compared to peers, was impacted by tax reform. Our relative EPS growth was lower than anticipated once all peer data for 2017 became available. Employee benefits expense increased $3.0 million primarily due to a seasonal increase in payroll taxes partially offset by an overall decrease in employee healthcare costs. Regular compensation increased $2.2 million as merit increases were effective for most employees during the first quarter of 2018.

Non-personnel expense decreased $4.7 million. Professional fees and services expense decreased $5.1 million mainly due to expenses related to projects completed in the fourth quarter of 2017. Mortgage banking costs decreased $4.2 million primarily due to a $3.5 million decrease in accruals related to default servicing and loss mitigation costs on loans serviced for others. The fourth quarter also included a $2.0 million contribution to the BOKF Foundation.

Net losses and operating expenses of repossessed assets increased $7.4 million, primarily due to a $5.0 million write-down on a set of repossessed oil and gas properties based on an updated analysis of production data.

Loans, Deposits and Capital

Loans

Outstanding loans were $17.3 billion at March 31, 2018, up $184 million or 4% on an annualized basis over December 31, 2017, primarily due to growth in commercial loan balances during the quarter. Increased commercial real estate loan balances were offset by lower residential mortgage loan balances.

Outstanding commercial loan balances grew by $186 million or 7% on an annualized basis. Manufacturing sector loan balances were up $63 million. Wholesale/retail sector loan balances grew by $60 million. Healthcare sector loan balances increased $45 million. Energy loan balances grew by $39 million. Unfunded energy loan commitments increased $97 million over December 31, 2017 to $3.0 billion at March 31, 2018. Other commercial and industrial loans increased by $36 million. This growth was partially offset by a $59 million decrease in service sector loan balances.

Commercial real estate loan balances increased $27 million or 3% on an annualized basis. Loans secured by retail facilities were up $59 million. Loans secured by industrial properties grew by $41 million. Multifamily residential loans increased $29 million. This growth was partially offset by a $95 million decrease in loans secured by office buildings.

Deposits

Period-end deposits totaled $22.2 billion at March 31, 2018, a $144 million increase over December 31, 2017. Time deposit balances grew by $68 million and demand deposit balances increased $63 million. This growth was partially offset by a $23 million decrease in interest-bearing transaction account balances. Consumer Banking deposits were up $151 million and Wealth Management deposits grew by $149 million. Commercial Banking deposits decreased $49 million.

Capital

The company's common equity Tier 1 capital ratio was 12.06 percent at March 31, 2018. In addition, the company's Tier 1 capital ratio was 12.06 percent, total capital ratio was 13.49 percent and leverage ratio was 9.40 percent at March 31, 2018. At December 31, 2017, the company's common equity Tier 1 capital ratio was 12.05 percent, Tier 1 capital ratio was 12.05 percent, total capital ratio was 13.54 percent, and leverage ratio was 9.31 percent.

The company's tangible common equity ratio, a non-GAAP measure, was 9.18 percent at March 31, 2018 and 9.50 percent at December 31, 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, consistent with the treatment under the previous capital rules.

Credit Quality

Nonperforming assets totaled $278 million or 1.60 percent of outstanding loans and repossessed assets at March 31, 2018, down from $290 million or 1.69 percent at December 31, 2017. Nonperforming assets that are not guaranteed by U.S. government agencies totaled $195 million or 1.13 percent of outstanding loans and repossessed assets (excluding those guaranteed by U.S. government agencies) at March 31, 2018, compared to $207 million or 1.22 percent at December 31, 2017.

Nonaccruing loans totaled $180 million or 1.04 percent of outstanding loans at March 31, 2018, compared to $188 million or 1.10 percent of outstanding loans at December 31, 2017. The decrease in nonaccruing loans was primarily due to a $3.0 million decrease in manufacturing sector loans and a $2.3 million decrease in energy loans. New nonaccruing loans identified in the first quarter totaled $10 million, offset by $12 million in payments received, $2.9 million in charge-offs and $3.7 million in foreclosures and repossessions. At March 31, 2018, nonaccruing commercial loans totaled $131 million or 1.20 percent of outstanding commercial loans, nonaccruing commercial real estate loans totaled $2.5 million or 0.07 percent of outstanding commercial real estate loans and nonaccruing residential mortgage loans totaled $46 million or 2.35 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 $222 million at March 31, down from $241 million at December 31. The decrease largely resulted from energy and healthcare sector loans, partially offset by an increase in wholesale/retail sector loans.

The company had net charge-offs of $1.3 million or 0.03 percent of average loans on an annualized basis for the first quarter of 2018, compared to net charge-offs of $11.7 million or 0.27 percent of average loans on an annualized basis for the fourth quarter of 2017. Gross charge-offs were $2.9 million for the first quarter, compared to $14.7 million for the previous quarter. Recoveries totaled $1.6 million for the first quarter of 2018 and $3.1 million for the fourth quarter of 2017.

Based on an evaluation of all credit factors, including changes in nonaccruing and potential problem loans, overall loan portfolio growth and net charge-offs, the company determined that a $5.0 million negative provision for credit losses was appropriate for the first quarter of 2018. The company had a $7.0 million negative provision for credit losses in the fourth quarter of 2017.

The combined allowance for credit losses totaled $228 million or 1.32 percent of outstanding loans and 133 percent of nonaccruing loans at March 31, 2018, excluding residential mortgage loans guaranteed by U.S. government agencies. The allowance for loan losses was $224 million and the accrual for off-balance sheet credit losses was $4.1 million. At December 31, 2017, the combined allowance for credit losses was $234 million or 1.37 percent of outstanding loans and 131 percent of nonaccruing loans, excluding loans guaranteed by U.S. government agencies. The allowance for loan losses was $231 million and the accrual for off-balance sheet credit losses was $3.7 million.

Securities and Derivatives

The fair value of the available for sale securities portfolio totaled $8.2 billion at March 31, 2018, a $72 million decrease compared to December 31, 2017. At March 31, 2018, the available for sale portfolio consisted primarily of $5.4 billion of residential mortgage-backed securities fully backed by U.S. government agencies and $2.7 billion of commercial mortgage-backed securities fully backed by U.S. government agencies. At March 31, 2018, the available for sale securities portfolio had a net unrealized loss of $148 million compared to a $47 million net unrealized loss at December 31, 2017.

Trading securities increased $830 million to $1.3 billion during the first quarter of 2018 as a result of expanded relationships with mortgage loan originator clients. The company holds an inventory of trading securities in support of sales to a variety of customers, including banks, corporations, insurance companies, money managers, and others.

The company also maintains a portfolio of residential mortgage-backed securities issued by U.S. government agencies and interest rate derivative contracts as an economic hedge of the changes in the fair value of our mortgage servicing rights.

The net economic cost of the changes in fair value of mortgage servicing rights and related economic hedges was $256 thousand during the first quarter of 2018, including a $21.2 million increase in the fair value of mortgage servicing rights, a $23.3 million decrease in the fair value of securities and derivative contracts held as an economic hedge and $1.8 million of related net interest revenue.

The fair value of mortgage servicing rights increased by $5.9 million during the fourth quarter of 2017. The fair value of securities and interest rate derivative contracts held as an economic hedge of mortgage servicing rights decreased by $7.3 million. Related net interest revenue was $2.7 million during the fourth quarter of 2017.

Conference Call and Webcast

The company will hold a conference call at 9 a.m. Central time on Wednesday, April 25, 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 conference ID # 13678702.

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, 2018 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, 2018			Dec. 31, 2017			March 31, 2017
ASSETS
Cash and due from banks	$	544,534		$	602,510		$	546,575
Interest-bearing cash and cash equivalents	2,054,899			1,714,544			2,220,640
Trading securities	1,292,432			462,676			677,156
Investment securities	416,672			461,793			519,402
Available for sale debt securities	8,249,432			8,321,578			8,437,291
Fair value option securities	513,668			755,054			441,714
Restricted equity securities	338,552			320,189			283,936
Residential mortgage loans held for sale	225,190			221,378			248,707
Loans:
Commercial	10,919,667			10,733,975			10,327,110
Commercial real estate	3,506,782			3,479,987			3,871,063
Residential mortgage	1,945,769			1,973,686			1,946,274
Personal	965,632			965,776			847,459
Total loans	17,337,850			17,153,424			16,991,906
Allowance for loan losses	(223,967		)	(230,682		)	(248,710		)
Loans, net of allowance	17,113,883			16,922,742			16,743,196
Premises and equipment, net	314,347			317,335			325,546
Receivables	478,027			442,897			394,394
Goodwill	447,430			447,430			445,738
Intangible assets, net	29,658			28,658			42,556
Mortgage servicing rights	274,978			252,867			249,403
Real estate and other repossessed assets, net	23,652			28,437			42,726
Derivative contracts, net	286,687			220,502			304,727
Cash surrender value of bank-owned life insurance	318,661			316,498			310,537
Receivable on unsettled securities sales	3,638			75,980			9,921
Other assets	435,152			359,092			384,767
TOTAL ASSETS	$	33,361,492		$	32,272,160		$	32,628,932

LIABILITIES AND EQUITY
Deposits:
Demand	$	9,306,023		$	9,243,338		$	9,506,573
Interest-bearing transaction	10,226,971			10,250,393			10,359,214
Savings	505,952			469,158			465,724
Time	2,166,254			2,098,416			2,243,848
Total deposits	22,205,200			22,061,305			22,575,359
Funds purchased	130,561			58,628			47,629
Repurchase agreements	415,763			516,335			508,352
Other borrowings	5,727,025			5,134,897			5,238,947
Subordinated debentures	144,687			144,677			144,649
Accrued interest, taxes and expense	156,146			164,895			140,235
Due on unsettled securities purchases	94,424			151,198			137,069
Derivative contracts, net	233,202			171,963			276,422
Other liabilities	737,142			349,928			189,376
TOTAL LIABILITIES	29,844,150			28,753,826			29,258,038
Shareholders' equity:
Capital, surplus and retained earnings	3,606,220			3,531,541			3,346,965
Accumulated other comprehensive loss	(111,191		)	(36,174		)	(5,221		)
TOTAL SHAREHOLDERS' EQUITY	3,495,029			3,495,367			3,341,744
Non-controlling interests	22,313			22,967			29,150
TOTAL EQUITY	3,517,342			3,518,334			3,370,894
TOTAL LIABILITIES AND EQUITY	$	33,361,492		$	32,272,160		$	32,628,932

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

	Three Months Ended
	Mar. 31, 2018			Dec. 31, 2017			Sept. 30, 2017			June 30, 2017			Mar. 31, 2017
ASSETS
Interest-bearing cash and cash equivalents	$	2,059,517		$	1,976,395		$	1,965,645		$	2,007,746		$	2,087,964
Trading securities	933,404			560,321			491,613			456,028			579,549
Investment securities	441,207			462,869			475,705			499,372			530,936
Available for sale debt securities	8,236,938			8,435,916			8,428,353			8,384,057			8,567,049
Fair value option securities	626,251			792,647			684,571			476,102			416,524
Restricted equity securities	349,176			337,673			328,677			295,743			312,498
Residential mortgage loans held for sale	199,380			257,927			256,343			245,401			220,325
Loans:
Commercial	10,871,569			10,751,235			10,827,198			10,604,456			10,414,579
Commercial real estate	3,491,335			3,485,583			3,528,330			3,676,976			3,903,850
Residential mortgage	1,937,198			1,976,860			1,951,385			1,933,091			1,962,759
Personal	961,379			967,329			949,750			915,010			854,637
Total loans	17,261,481			17,181,007			17,256,663			17,129,533			17,135,825
Allowance for loan losses	(228,996		)	(246,143		)	(250,590		)	(251,632		)	(249,379		)
Total loans, net	17,032,485			16,934,864			17,006,073			16,877,901			16,886,446
Total earning assets	29,878,358			29,758,612			29,636,980			29,242,350			29,601,291
Cash and due from banks	564,585			576,737			546,653			530,352			547,104
Derivative contracts, net	278,694			292,961			238,583			248,168			401,886
Cash surrender value of bank-owned life insurance	317,334			315,034			313,079			311,310			309,223
Receivable on unsettled securities sales	51,549			49,219			76,622			79,248			62,641
Other assets	2,634,432			2,459,552			2,196,253			1,957,143			2,032,844
TOTAL ASSETS	$	33,724,952		$	33,452,115		$	33,008,170		$	32,368,571		$	32,954,989

LIABILITIES AND EQUITY
Deposits:
Demand	$	9,151,272		$	9,417,351		$	9,389,849		$	9,338,683		$	9,101,763
Interest-bearing transaction	10,344,469			10,142,744			10,088,522			10,087,640			10,567,475
Savings	480,110			466,496			464,130			461,586			441,254
Time	2,151,044			2,134,469			2,176,820			2,204,422			2,258,930
Total deposits	22,126,895			22,161,060			22,119,321			22,092,331			22,369,422
Funds purchased	106,361			63,713			49,774			63,263			55,508
Repurchase agreements	426,051			424,617			361,512			427,353			523,561
Other borrowings	6,326,967			6,209,903			6,162,641			5,572,031			5,737,955
Subordinated debentures	144,682			144,673			144,663			144,654			144,644
Derivative contracts, net	223,373			288,408			221,371			178,695			405,444
Due on unsettled securities purchases	144,077			218,684			145,155			157,438			91,529
Other liabilities	747,972			425,667			319,092			323,373			299,534
TOTAL LIABILITIES	30,246,378			29,936,725			29,523,529			28,959,138			29,627,597
Total equity	3,478,574			3,515,390			3,484,641			3,409,433			3,327,392
TOTAL LIABILITIES AND EQUITY	$	33,724,952		$	33,452,115		$	33,008,170		$	32,368,571		$	32,954,989

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

	Three Months Ended
	March 31,
	2018			2017

Interest revenue	$	265,407		$	226,390
Interest expense	45,671			25,208
Net interest revenue	219,736			201,182
Provision for credit losses	(5,000		)	—
Net interest revenue after provision for credit losses	224,736			201,182
Other operating revenue:
Brokerage and trading revenue	30,648			33,623
Transaction card revenue¹	20,990			18,177
Fiduciary and asset management revenue	41,832			38,631
Deposit service charges and fees	27,161			27,777
Mortgage banking revenue	26,025			25,191
Other revenue	12,330			11,752
Total fees and commissions	158,986			155,151
Other gains (losses), net	(664		)	3,627
Gain (loss) on derivatives, net	(5,685		)	(450		)
Gain (loss) on fair value option securities, net	(17,564		)	(1,140		)
Change in fair value of mortgage servicing rights	21,206			1,856
Gain (loss) on available for sale securities, net	(290		)	2,049
Total other operating revenue	155,989			161,093
Other operating expense:
Personnel	139,947			136,425
Business promotion	6,010			6,717
Professional fees and services	10,200			11,417
Net occupancy and equipment	24,046			21,624
Insurance	6,593			6,404
Data processing and communications¹	27,817			25,699
Printing, postage and supplies	4,089			3,851
Net losses and operating expenses of repossessed assets	7,705			1,009
Amortization of intangible assets	1,300			1,802
Mortgage banking costs	10,149			13,003
Other expense	6,574			7,557
Total other operating expense	244,430			235,508

Net income before taxes	136,295			126,767
Federal and state income taxes	30,948			38,103

Net income	105,347			88,664
Net income (loss) attributable to non-controlling interests	(215		)	308
Net income attributable to BOK Financial Corporation shareholders	$	105,562		$	88,356

Average shares outstanding:
Basic	64,847,334			64,715,964
Diluted	64,888,033			64,783,737

Net income per share:
Basic	$	1.61		$	1.35
Diluted	$	1.61		$	1.35

¹Non-GAAP measure to net interchange charges from prior quarters between transaction card revenue and data processing and communications expense. This measure has no effect on net income or earnings per share.

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

	Three Months Ended
	Mar. 31, 2018			Dec. 31, 2017			Sept. 30, 2017			June 30, 2017			Mar. 31, 2017
Capital:
Period-end shareholders' equity	$	3,495,029		$	3,495,367		$	3,488,814		$	3,422,469		$	3,341,744
Risk weighted assets	$	26,025,660		$	25,733,711		$	25,409,728		$	25,130,802		$	24,901,019
Risk-based capital ratios:
Common equity tier 1	12.06		%	12.05		%	11.90		%	11.76		%	11.59		%
Tier 1	12.06		%	12.05		%	11.90		%	11.76		%	11.59		%
Total capital	13.49		%	13.54		%	13.47		%	13.36		%	13.25		%
Leverage ratio	9.40		%	9.31		%	9.30		%	9.27		%	8.89		%
Tangible common equity ratio¹	9.18		%	9.50		%	9.23		%	9.24		%	8.88		%

Common stock:
Book value per share	$	53.39		$	53.45		$	53.30		$	52.32		$	51.09
Tangible book value per share	46.10			46.17			45.88			44.87			43.63
Market value per share:
High	$	107.00		$	93.97		$	90.69		$	88.31		$	85.25
Low	$	89.82		$	79.67		$	77.10		$	74.09		$	73.44
Cash dividends paid	$	29,342		$	29,328		$	28,655		$	28,652		$	28,646
Dividend payout ratio	27.80		%	40.46		%	33.46		%	32.50		%	32.42		%
Shares outstanding, net	65,459,505			65,394,937			65,456,786			65,416,403			65,408,019
Stock buy-back program:
Shares repurchased	82,583			80,000			—			—			—
Amount	$	7,584		$	7,403		$	—		$	—		$	—
Average price per share	$	91.83		$	92.54		$	—		$	—		$	—

Performance ratios (quarter annualized):
Return on average assets	1.27		%	0.86		%	1.03		%	1.09		%	1.09		%
Return on average equity	12.39		%	8.24		%	9.83		%	10.46		%	10.86		%
Net interest margin	2.99		%	2.97		%	3.01		%	2.89		%	2.81		%
Efficiency ratio³	65.09		%	66.07		%	65.92		%	63.66		%	64.90		%

Reconciliation of non-GAAP measures:
¹ Tangible common equity ratio:
Total shareholders' equity	$	3,495,029		$	3,495,367		$	3,488,814		$	3,422,469		$	3,341,744
Less: Goodwill and intangible assets, net	477,088			476,088			485,710			487,452			488,294
Tangible common equity	$	3,017,941		$	3,019,279		$	3,003,104		$	2,935,017		$	2,853,450

Total assets	$	33,361,492		$	32,272,160		$	33,005,515		$	32,263,532		$	32,628,932
Less: Goodwill and intangible assets, net	477,088			476,088			485,710			487,452			488,294
Tangible assets	$	32,884,404		$	31,796,072		$	32,519,805		$	31,776,080		$	32,140,638

Tangible common equity ratio	9.18		%	9.50		%	9.23		%	9.24		%	8.88		%

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

	Three Months Ended
	Mar. 31, 2018			Dec. 31, 2017			Sept. 30, 2017			June 30, 2017			Mar. 31, 2017
Other data:
Fiduciary assets	$	46,648,290		$	48,761,477		$	45,177,185		$	45,089,153		$	44,992,920
Tax equivalent interest	$	2,010		$	4,131		$	4,314		$	4,330		$	4,428
Net unrealized gain (loss) on available for sale securities	$	(148,247	)	$	(47,497	)	$	14,061		$	16,041		$	(5,537	)

Mortgage banking:
Mortgage production revenue	$	9,452		$	7,786		$	8,329		$	13,840		$	8,543

Mortgage loans funded for sale	$	664,958		$	840,080		$	832,796		$	902,978		$	711,019
Add: current period-end outstanding commitments	298,318			222,919			334,337			362,088			381,732
Less: prior period end outstanding commitments	222,919			334,337			362,088			381,732			318,359
Total mortgage production volume	$	740,357		$	728,662		$	805,045		$	883,334		$	774,392

Mortgage loan refinances to mortgage loans funded for sale	42		%	47		%	38		%	33		%	44		%
Gain on sale margin	1.28		%	1.07		%	1.03		%	1.57		%	1.10		%

Mortgage servicing revenue	$	16,573		$	16,576		$	16,561		$	16,436		$	16,648
Average outstanding principal balance of mortgage loans serviced for others	22,027,726			22,054,877			22,079,177			22,055,127			22,006,295
Average mortgage servicing revenue rates	0.31		%	0.30		%	0.30		%	0.30		%	0.31		%

Gain (loss) on mortgage servicing rights, net of economic hedge:
Gain (loss) on mortgage hedge derivative contracts, net	$	(5,698	)	$	(3,057	)	$	1,025		$	3,241		$	(528	)
Gain (loss) on fair value option securities, net	(17,564		)	(4,238		)	661			1,984			(1,140		)
Gain (loss) on economic hedge of mortgage servicing rights	(23,262		)	(7,295		)	1,686			5,225			(1,668		)
Gain (loss) on changes in fair value of mortgage servicing rights	21,206			5,898			(639		)	(6,943		)	1,856
Gain (loss) on changes in fair value of mortgage servicing rights, net of economic hedges, included in other operating revenue	(2,056		)	(1,397		)	1,047			(1,718		)	188
Net interest revenue on fair value option securities²	1,800			2,656			2,543			1,965			1,271
Total economic benefit (cost) of changes in the fair value of mortgage servicing rights, net of economic hedges	$	(256	)	$	1,259		$	3,590		$	247		$	1,459


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


³	Prior periods shown on a comparable basis to net interchange charges between transaction card revenue and data processing and communications expense.

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

	Three Months Ended
	Mar. 31, 2018			Dec. 31, 2017			Sept. 30, 2017			June 30, 2017			Mar. 31, 2017

Interest revenue	$	265,407		$	255,767		$	255,413		$	235,181		$	226,390
Interest expense	45,671			38,904			36,961			29,977			25,208
Net interest revenue	219,736			216,863			218,452			205,204			201,182
Provision for credit losses	(5,000		)	(7,000		)	—			—			—
Net interest revenue after provision for credit losses	224,736			223,863			218,452			205,204			201,182
Other operating revenue:
Brokerage and trading revenue	30,648			33,045			33,169			31,764			33,623
Transaction card revenue¹	20,990			20,028			22,929			20,009			18,177
Fiduciary and asset management revenue	41,832			41,767			40,687			41,808			38,631
Deposit service charges and fees	27,161			27,685			28,191			28,422			27,777
Mortgage banking revenue	26,025			24,362			24,890			30,276			25,191
Other revenue	12,330			11,762			13,670			14,984			11,752
Total fees and commissions	158,986			158,649			163,536			167,263			155,151
Other gains (losses), net	(664		)	552			(1,283		)	6,108			3,627
Gain (loss) on derivatives, net	(5,685		)	(3,045		)	1,033			3,241			(450		)
Gain (loss) on fair value option securities, net	(17,564		)	(4,238		)	661			1,984			(1,140		)
Change in fair value of mortgage servicing rights	21,206			5,898			(639		)	(6,943		)	1,856
Gain (loss) on available for sale securities, net	(290		)	(488		)	2,487			380			2,049
Total other operating revenue	155,989			157,328			165,795			172,033			161,093
Other operating expense:
Personnel	139,947			145,329			147,910			143,744			136,425
Business promotion	6,010			7,317			7,105			7,738			6,717
Charitable contributions to BOKF Foundation	—			2,000			—			—			—
Professional fees and services	10,200			15,344			11,887			12,419			11,417
Net occupancy and equipment	24,046			22,403			21,325			21,125			21,624
Insurance	6,593			6,555			6,005			689			6,404
Data processing and communications¹	27,817			28,903			27,412			26,111			25,699
Printing, postage and supplies	4,089			3,781			3,917			4,140			3,851
Net losses (gains) and operating expenses of repossessed assets	7,705			340			6,071			2,267			1,009
Amortization of intangible assets	1,300			1,430			1,744			1,803			1,802
Mortgage banking costs	10,149			14,331			13,450			12,072			13,003
Other expense	6,574			6,746			9,193			8,558			7,557
Total other operating expense	244,430			254,479			256,019			240,666			235,508
Net income before taxes	136,295			126,712			128,228			136,571			126,767
Federal and state income taxes	30,948			54,347			42,438			47,705			38,103
Net income	105,347			72,365			85,790			88,866			88,664
Net income (loss) attributable to non-controlling interests	(215		)	(127		)	141			719			308
Net income attributable to BOK Financial Corporation shareholders	$	105,562		$	72,492		$	85,649		$	88,147		$	88,356

Average shares outstanding:
Basic	64,847,334			64,793,005			64,742,822			64,729,752			64,715,964
Diluted	64,888,033			64,843,179			64,805,172			64,793,134			64,783,737
Net income per share:
Basic	$	1.61		$	1.11		$	1.31		$	1.35		$	1.35
Diluted	$	1.61		$	1.11		$	1.31		$	1.35		$	1.35


¹	Non-GAAP measure to net interchange charges from prior quarters between transaction card revenue and data processing and communications expense. This measure has no effect on net income or earnings per share.

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

	Mar. 31, 2018		Dec. 31, 2017		Sept. 30, 2017		June 30, 2017		Mar. 31, 2017
Commercial:
Energy	$	2,969,618	$	2,930,156	$	2,867,981	$	2,847,240	$	2,537,112
Services	2,928,294		2,986,949		2,967,513		2,958,827		3,013,375
Healthcare	2,359,928		2,314,753		2,239,451		2,221,518		2,265,604
Wholesale/retail	1,531,576		1,471,256		1,658,098		1,543,695		1,506,243
Manufacturing	559,695		496,774		519,446		546,137		543,430
Other commercial and industrial	570,556		534,087		543,445		520,538		461,346
Total commercial	10,919,667		10,733,975		10,795,934		10,637,955		10,327,110

Commercial real estate:
Multifamily	1,008,903		980,017		999,009		952,380		922,991
Retail	750,396		691,532		725,865		722,805		745,046
Office	737,144		831,770		797,089		862,973		860,889
Industrial	613,608		573,014		591,080		693,635		871,463
Residential construction and land development	117,458		117,245		112,102		141,592		135,994
Other commercial real estate	279,273		286,409		292,997		315,207		334,680
Total commercial real estate	3,506,782		3,479,987		3,518,142		3,688,592		3,871,063

Residential mortgage:
Permanent mortgage	1,047,785		1,043,435		1,013,965		989,040		977,743
Permanent mortgages guaranteed by U.S. government agencies	177,880		197,506		187,370		191,729		204,181
Home equity	720,104		732,745		744,415		758,429		764,350
Total residential mortgage	1,945,769		1,973,686		1,945,750		1,939,198		1,946,274

Personal	965,632		965,776		947,008		917,900		847,459

Total	$	17,337,850	$	17,153,424	$	17,206,834	$	17,183,645	$	16,991,906

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

	Mar. 31, 2018		Dec. 31, 2017		Sept. 30, 2017		June 30, 2017		Mar. 31, 2017

Bank of Oklahoma:
Commercial	$	3,265,013	$	3,238,720	$	3,408,973	$	3,369,967	$	3,189,183
Commercial real estate	668,031		682,037		712,915		667,932		691,332
Residential mortgage	1,419,281		1,435,432		1,405,900		1,398,021		1,404,054
Personal	353,128		342,212		322,320		318,016		310,708
Total Bank of Oklahoma	5,705,453		5,698,401		5,850,108		5,753,936		5,595,277

Bank of Texas:
Commercial	4,715,841		4,520,401		4,434,595		4,339,634		4,148,316
Commercial real estate	1,254,421		1,261,864		1,236,702		1,360,164		1,452,988
Residential mortgage	229,761		233,675		229,993		232,074		231,647
Personal	363,608		375,084		375,173		354,222		312,092
Total Bank of Texas	6,563,631		6,391,024		6,276,463		6,286,094		6,145,043

Bank of Albuquerque:
Commercial	315,701		343,296		367,747		369,370		407,403
Commercial real estate	348,485		341,282		319,208		324,405		307,927
Residential mortgage	93,490		98,018		101,983		103,849		106,432
Personal	11,667		11,721		12,953		12,439		11,305
Total Bank of Albuquerque	769,343		794,317		801,891		810,063		833,067

Bank of Arkansas:
Commercial	94,430		95,644		91,051		85,020		88,010
Commercial real estate	88,700		87,393		80,917		73,943		74,469
Residential mortgage	7,033		6,596		6,318		6,395		6,829
Personal	9,916		9,992		10,388		11,993		6,279
Total Bank of Arkansas	200,079		199,625		188,674		177,351		175,587

Colorado State Bank & Trust:
Commercial	1,180,655		1,130,714		1,124,200		1,065,780		998,216
Commercial real estate	210,801		174,201		186,427		255,379		266,218
Residential mortgage	64,530		63,350		63,734		63,346		62,313
Personal	63,118		63,115		60,513		56,187		49,523
Total Colorado State Bank & Trust	1,519,104		1,431,380		1,434,874		1,440,692		1,376,270

Bank of Arizona:
Commercial	624,106		687,792		634,809		617,759		643,222
Commercial real estate	672,319		660,094		706,188		705,858		737,088
Residential mortgage	39,227		41,771		40,730		37,034		36,737
Personal	57,023		57,140		55,050		55,528		51,386
Total Bank of Arizona	1,392,675		1,446,797		1,436,777		1,416,179		1,468,433

Mobank (Kansas City):
Commercial	723,921		717,408		734,559		790,425		852,760
Commercial real estate	264,025		273,116		275,785		300,911		341,041
Residential mortgage	92,447		94,844		97,092		98,479		98,262
Personal	107,172		106,512		110,611		109,515		106,166
Total Mobank (Kansas City)	1,187,565		1,191,880		1,218,047		1,299,330		1,398,229

TOTAL BOK FINANCIAL	$	17,337,850	$	17,153,424	$	17,206,834	$	17,183,645	$	16,991,906

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)

	Mar. 31, 2018		Dec. 31, 2017		Sept. 30, 2017		June 30, 2017		Mar. 31, 2017
Bank of Oklahoma:
Demand	$	4,201,842	$	3,885,008	$	4,061,612	$	4,353,421	$	4,320,666
Interest-bearing:
Transaction	6,051,302		5,901,293		5,909,259		5,998,787		6,114,288
Savings	289,351		265,870		265,023		263,664		265,014
Time	1,203,534		1,092,133		1,131,547		1,170,014		1,189,144
Total interest-bearing	7,544,187		7,259,296		7,305,829		7,432,465		7,568,446
Total Bank of Oklahoma	11,746,029		11,144,304		11,367,441		11,785,886		11,889,112

Bank of Texas:
Demand	3,015,869		3,239,098		3,094,184		3,121,890		3,091,258
Interest-bearing:
Transaction	2,208,480		2,397,071		2,272,987		2,272,185		2,317,576
Savings	98,852		93,620		93,400		91,491		89,640
Time	475,967		502,879		521,072		502,128		511,037
Total interest-bearing	2,783,299		2,993,570		2,887,459		2,865,804		2,918,253
Total Bank of Texas	5,799,168		6,232,668		5,981,643		5,987,694		6,009,511

Bank of Albuquerque:
Demand	695,060		663,353		659,793		612,117		593,117
Interest-bearing:
Transaction	555,414		552,393		551,884		558,523		623,677
Savings	60,596		55,647		53,532		54,136		53,683
Time	216,306		216,743		224,773		229,616		233,506
Total interest-bearing	832,316		824,783		830,189		842,275		910,866
Total Bank of Albuquerque	1,527,376		1,488,136		1,489,982		1,454,392		1,503,983

Bank of Arkansas:
Demand	35,291		30,384		31,442		40,511		42,622
Interest-bearing:
Transaction	94,206		85,095		126,746		129,848		106,804
Savings	1,960		1,881		1,876		2,135		2,304
Time	11,878		14,045		14,434		14,876		15,067
Total interest-bearing	108,044		101,021		143,056		146,859		124,175
Total Bank of Arkansas	143,335		131,405		174,498		187,370		166,797

Colorado State Bank & Trust:
Demand	521,963		633,714		540,300		577,617		601,778
Interest-bearing:
Transaction	687,785		657,629		628,807		626,343		610,510
Savings	37,232		35,223		34,776		35,651		37,801
Time	215,330		224,962		231,927		228,458		234,740
Total interest-bearing	940,347		917,814		895,510		890,452		883,051
Total Colorado State Bank & Trust	1,462,310		1,551,528		1,435,810		1,468,069		1,484,829

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

	Mar. 31, 2018		Dec. 31, 2017		Sept. 30, 2017		June 30, 2017		Mar. 31, 2017
Bank of Arizona:
Demand	330,196		334,701		335,740		366,866		342,854
Interest-bearing:
Transaction	248,337		274,846		174,010		154,457		180,254
Savings	4,116		3,343		4,105		3,638		3,858
Time	21,009		20,394		20,831		19,911		26,112
Total interest-bearing	273,462		298,583		198,946		178,006		210,224
Total Bank of Arizona	603,658		633,284		534,686		544,872		553,078

Mobank (Kansas City):
Demand	505,802		457,080		462,410		496,473		514,278
Interest-bearing:
Transaction	381,447		382,066		361,391		346,996		406,105
Savings	13,845		13,574		12,513		13,603		13,424
Time	22,230		27,260		27,705		31,119		34,242
Total interest-bearing	417,522		422,900		401,609		391,718		453,771
Total Mobank (Kansas City)	923,324		879,980		864,019		888,191		968,049

TOTAL BOK FINANCIAL	$	22,205,200	$	22,061,305	$	21,848,079	$	22,316,474	$	22,575,359

NET INTEREST MARGIN TREND -- UNAUDITED BOK FINANCIAL CORPORATION

	Three Months Ended
	Mar. 31, 2018		Dec. 31, 2017		Sept. 30, 2017		June 30, 2017		Mar. 31, 2017

TAX-EQUIVALENT ASSETS YIELDS
Interest-bearing cash and cash equivalents	1.57	%	1.27	%	1.29	%	1.04	%	0.82	%
Trading securities	3.40	%	3.38	%	3.47	%	3.23	%	3.87	%
Investment securities:
Taxable	5.21	%	5.31	%	5.31	%	5.34	%	5.44	%
Tax-exempt	2.25	%	2.69	%	2.60	%	2.51	%	2.45	%
Total investment securities	3.78	%	3.98	%	3.86	%	3.76	%	3.70	%
Available for sale securities:
Taxable	2.22	%	2.19	%	2.16	%	2.09	%	2.02	%
Tax-exempt	3.26	%	5.41	%	5.27	%	6.09	%	5.37	%
Total available for sale securities	2.23	%	2.21	%	2.17	%	2.11	%	2.05	%
Fair value option securities	2.95	%	2.90	%	2.97	%	2.92	%	2.27	%
Restricted equity securities	5.86	%	5.87	%	5.87	%	5.95	%	5.52	%
Residential mortgage loans held for sale	3.71	%	3.72	%	3.36	%	3.92	%	3.35	%
Loans	4.45	%	4.29	%	4.31	%	4.03	%	3.88	%
Allowance for loan losses
Loans, net of allowance	4.51	%	4.35	%	4.38	%	4.09	%	3.94	%
Total tax-equivalent yield on earning assets	3.61	%	3.49	%	3.50	%	3.30	%	3.15	%

COST OF INTEREST-BEARING LIABILITIES
Interest-bearing deposits:
Interest-bearing transaction	0.45	%	0.35	%	0.32	%	0.26	%	0.20	%
Savings	0.07	%	0.07	%	0.08	%	0.08	%	0.08	%
Time	1.25	%	1.17	%	1.16	%	1.11	%	1.09	%
Total interest-bearing deposits	0.57	%	0.48	%	0.45	%	0.40	%	0.35	%
Funds purchased	1.20	%	0.90	%	0.92	%	0.61	%	0.47	%
Repurchase agreements	0.20	%	0.18	%	0.15	%	0.06	%	0.02	%
Other borrowings	1.60	%	1.36	%	1.29	%	1.09	%	0.83	%
Subordinated debt	5.61	%	5.55	%	5.68	%	5.55	%	5.68	%
Total cost of interest-bearing liabilities	0.93	%	0.79	%	0.75	%	0.63	%	0.52	%
Tax-equivalent net interest revenue spread	2.68	%	2.70	%	2.75	%	2.67	%	2.63	%
Effect of noninterest-bearing funding sources and other	0.31	%	0.27	%	0.26	%	0.22	%	0.18	%
Tax-equivalent net interest margin	2.99	%	2.97	%	3.01	%	2.89	%	2.81	%

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
	Mar. 31, 2018		Dec. 31, 2017		Sept. 30, 2017		June 30, 2017		Mar. 31, 2017
Nonperforming assets:
Nonaccruing loans:
Commercial	$	131,460	$	137,303	$	176,900	$	197,157	$	156,825
Commercial real estate	2,470		2,855		2,975		3,775		4,475
Residential mortgage	45,794		47,447		45,506		44,235		46,081
Personal	340		269		255		272		235
Total nonaccruing loans	180,064		187,874		225,636		245,439		207,616
Accruing renegotiated loans guaranteed by U.S. government agencies	74,418		73,994		69,440		80,624		83,577
Real estate and other repossessed assets	23,652		28,437		32,535		39,436		42,726
Total nonperforming assets	$	278,134	$	290,305	$	327,611	$	365,499	$	333,919
Total nonperforming assets excluding those guaranteed by U.S. government agencies	$	194,833	$	207,132	$	249,280	$	275,823	$	240,234

Nonaccruing loans by loan class:
Commercial:
Energy	$	89,942	$	92,284	$	110,683	$	123,992	$	110,425
Services	2,109		2,620		1,174		7,754		7,713
Healthcare	15,342		14,765		24,446		24,505		909
Wholesale/retail	2,564		2,574		1,893		10,620		11,090
Manufacturing	3,002		5,962		9,059		9,656		5,907
Other commercial and industrial	18,501		19,098		29,645		20,630		20,781
Total commercial	131,460		137,303		176,900		197,157		156,825
Commercial real estate:
Multifamily	—		—		—		10		24
Retail	264		276		289		301		314
Office	275		275		275		396		413
Industrial	—		—		—		—		76
Residential construction and land development	1,613		1,832		1,924		2,051		2,616
Other commercial real estate	318		472		487		1,017		1,032
Total commercial real estate	2,470		2,855		2,975		3,775		4,475
Residential mortgage:
Permanent mortgage	24,578		25,193		24,623		23,415		24,188
Permanent mortgage guaranteed by U.S. government agencies	8,883		9,179		8,891		9,052		10,108
Home equity	12,333		13,075		11,992		11,768		11,785
Total residential mortgage	45,794		47,447		45,506		44,235		46,081
Personal	340		269		255		272		235
Total nonaccruing loans	$	180,064	$	187,874	$	225,636	$	245,439	$	207,616

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

	Three Months Ended
	Mar. 31, 2018			Dec. 31, 2017			Sept. 30, 2017			June 30, 2017			Mar. 31, 2017

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

Gross charge-offs	$	(2,890	)	$	(14,749	)	$	(5,825	)	$	(2,872	)	$	(2,153	)
Recoveries	1,576			3,061			2,437			1,214			2,900
Net recoveries (charge-offs)	$	(1,314	)	$	(11,688	)	$	(3,388	)	$	(1,658	)	$	747

Provision for credit losses	$	(5,000	)	$	(7,000	)	$	—		$	—		$	—

Allowance for loan losses to period end loans	1.29		%	1.34		%	1.44		%	1.46		%	1.46		%
Combined allowance for credit losses to period end loans	1.32		%	1.37		%	1.47		%	1.49		%	1.52		%
Nonperforming assets to period end loans and repossessed assets	1.60		%	1.69		%	1.90		%	2.12		%	1.96		%
Net charge-offs (annualized) to average loans	0.03		%	0.27		%	0.08		%	0.04		%	(0.02		)%
Allowance for loan losses to nonaccruing loans¹	130.84		%	129.09		%	114.28		%	105.78		%	125.92		%
Combined allowance for credit losses to nonaccruing loans¹	133.25		%	131.18		%	116.78		%	108.51		%	130.70		%


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

BOK FINANCIAL CORP - FORM 8-K - EX-99 - EXHIBIT 99 - April 25, 2018

Attached files