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Section 1: 8-K (8-K)

Document
false0000875357 0000875357 2020-04-22 2020-04-22


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):
April 22, 2020

Commission File No. 0-19341

BOK FINANCIAL CORP ET AL
(Exact name of registrant as specified in its charter)

Oklahoma
 
73-1373454
(State or other jurisdiction
of Incorporation or Organization)
 
(IRS Employer
Identification No.)
 
 
 
Bank of Oklahoma Tower
 
 
Boston Avenue at Second Street
 
 
Tulsa,
Oklahoma
 
74192
(Address of Principal Executive Offices)
 
(Zip Code)
 
(918) 588-6000
(Registrant’s telephone number, including area code)

N/A
___________________________________________
(Former name or former address, if changes since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425).

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12).

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)).

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)).

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨







INFORMATION TO BE INCLUDED IN THE REPORT

ITEM 2.02. Results of Operations and Financial Condition.

On April 22, 2020, BOK Financial Corporation (“BOK Financial”) issued a press release announcing its financial results for the three months ended March 31, 2020 (“Press Release”). The full text of the Press Release is attached as Exhibit 99(a) to this report and is incorporated herein by reference. On April 22, 2020, in connection with issuance of the Press Release, BOK Financial released financial information related to the three months ended March 31, 2020 (“Financial Information”), which includes certain historical financial information relating to BOK Financial. The Financial Information is attached as Exhibit 99(b) to this report and is incorporated herein by reference.


ITEM 9.01. Financial Statements and Exhibits.

(a)
Exhibits

99
  
101        Interactive Data Files.

Signature

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


BOK FINANCIAL CORPORATION




By: /s/ Steven E. Nell            
Steven E. Nell
Executive Vice President
Chief Financial Officer
Date: April 22, 2020



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Section 2: EX-99 (EXHIBIT 99)

Exhibit



Exhibit 99(a)
403694256_image0a01a01a01a36.jpg
NASD: BOKF

BOK Financial Reports Quarterly Earnings of $62 million or $0.88 Per Share in the First Quarter

CEO Commentary
"While this quarter showcased the momentum with which we entered 2020, I am most proud of the resiliency and flexibility of our employees as we navigate this difficult time," said Steven G. Bradshaw, president, and chief executive officer. "The extreme health concerns surrounding the COVID-19 virus have created a rapidly changing work environment for our 5,000 employees, and the continued health and safety for them and their families remains our top objective. We also embrace the responsibility we have to our many clients and the communities in which we serve to maintain our high standards of customer service and community engagement. The culture of collaboration and commitment our employees have worked hard to build for many years has really revealed itself during this turbulent period. I could not be more proud of the compassion our employees have shown for our customers and those in need. This is the sustaining core of our BOKF culture."

Bradshaw continued, "While the second and third quarters of 2020 will certainly pose unprecedented economic challenges, we continue to be an organization focused on the long-term. We expect our business revenue diversity along with proven credit underwriting in all lending segments to serve as our foundation for continued shareholder value going forward.”

COVID-19 Pandemic Response
We have implemented our cross-functional crisis management team led by our Chief Human Resources Officer and Chief Risk Officer. This team has focused on ensuring employee and customer safety while continuing to meet customer needs. We have implemented social distancing measures within our internal and external operations. Employees are working from home as able, we have split remaining employees across multiple locations, and we have closed banking center lobbies and converted to drive-thru and by appointment only.
We have implemented programs to help our customers through this uncertain time. We are actively participating in programs initiated by the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act"), including the Small Business Administration's ("SBA") Paycheck Protection Program ("PPP") that began on April 3, 2020 and Mortgage Forbearance program. As of April 17, 2020, we have processed approximately 4,700 PPP applications and currently have SBA approval for $1.8 billion. We have the ability to fund PPP loans through the Federal Reserve's PPP liquidity facility. We are also evaluating participating in the Main Street Lending Program. We are waiving fees on excessive savings and money market account withdrawals as well as overdraft protection transfer fees for automatic transfers between linked accounts at BOKF through May 31, 2020. Further, we are waiving loan payment late fees on consumer loan payments, mortgage accounts and small business loans in April 2020.
We have enhanced our benefits to support our employees as they navigate changes in their working environment. We are providing a temporary child care reimbursement program for those employees that need assistance because of school closures and have also added incremental paid time off hours for employees. We expanded our telemedicine options to deliver medical and behavioral health services at no cost. Further, we have enacted premium pay for certain non-exempt employees who must remain in the office.
We are closely monitoring our loan portfolio for effects related to COVID-19. Exposure to highly affected industries include, but are not limited to, oil and gas, entertainment and leisure, and senior housing. Energy loan balances comprise 18 percent of total loans, senior housing comprises 11 percent, and entertainment and leisure comprises approximately 8 percent. While our liquidity remains strong, we have enhanced daily monitoring of liquidity by tracking deposit inflows and outflows by customer, analyzing loan advances by segment, optimizing our borrowing capacity at the Federal Home Loan Bank, and increasing our collateral at the Federal Reserve Discount Window, among other things.

1




First Quarter 2020 Financial Highlights
Net income was $62.1 million or $0.88 per diluted share for the first quarter of 2020 and $110.4 million or $1.56 per diluted share for the fourth quarter of 2019. The first quarter of 2020 included a pre-tax provision for expected credit losses of $93.8 million compared to a pre-tax provision for incurred credit losses of $19.0 million in the prior quarter. The Company adopted the current expected credit loss ("CECL") model on January 1, 2020.
Net interest revenue totaled $261.4 million, a decrease of $8.9 million. Net interest margin was 2.80 percent compared to 2.88 percent in the fourth quarter of 2019. The Federal Reserve reduced the federal funds rate by 1.50 percent in two rate cuts in March 2020.
Fees and commissions revenue totaled $192.7 million, an increase of $13.3 million. Falling mortgage interest rates increased mortgage banking revenue and related trading activity.
Operating expense decreased $20.2 million to $268.6 million. Personnel expense decreased $12.2 million, largely due to a decrease in incentive compensation expense, partially offset by a seasonal increase in employee benefits expense. Non-personnel expense decreased $7.9 million compared to the fourth quarter of 2019 led by decreases in business promotion and mortgage banking expenses.
The allowance for loan losses totaled $315 million or 1.40 percent of outstanding loans at March 31, 2020. The combined allowance for loan losses and accrual for off-balance sheet credit risk from unfunded loan commitments was $344 million or 1.53 percent of outstanding loans at March 31, 2020. At December 31, 2019, the allowance for loan losses was $211 million or 0.97 percent of outstanding loans. The combined allowance for loan losses and accrual for off-balance sheet credit risk from unfunded loan commitments was $212 million or 0.98 percent of outstanding loans.
Average loans decreased $293 million to $21.9 billion. Period-end loans increased $713 million to $22.5 billion.
Average deposits increased $1.1 billion to $28.2 billion and period-end deposits increased $1.6 billion to $29.2 billion, primarily due to a combination of our continued focus on growing core customer deposits, inflows from external money funds, and seasonal inflows.
The company's common equity Tier 1 capital ratio was 10.98 percent at March 31, 2020. In addition, the company's Tier 1 capital ratio was 10.98 percent, total capital ratio was 12.58 percent, and leverage ratio was 8.16 percent at March 31, 2020. We have elected to delay the regulatory capital impact of the transition of the allowance for credit losses from the incurred loss methodology to CECL. At December 31, 2019, the company's common equity Tier 1 capital ratio was 11.39 percent, Tier 1 capital ratio was 11.39 percent, total capital ratio was 12.94 percent, and leverage ratio was 8.40 percent.
The company repurchased 442,000 shares at an average price of $75.52 per share in the first quarter of 2020 and 280,000 shares at an average price of $81.59 in the fourth quarter of 2019. We view share buybacks opportunistically, but within the context of maintaining our strong capital position.


2



Net Interest Revenue
Net interest revenue was $261.4 million for the first quarter of 2020, an $8.9 million decrease compared to the fourth quarter of 2019. Discount accretion on acquired loans totaled $4.1 million for the first quarter of 2020 and $5.8 million for the prior quarter.
Average earning assets increased $291 million compared to the fourth quarter of 2019. Available for sale securities increased $331 million as we continue to position our balance sheet for the current rate environment. Fair value option securities, held as an economic hedge of the changes in fair value of our mortgage servicing rights, increased $272 million. Interest-bearing cash and cash equivalents increased $148 million. Average loan balances decreased $293 million. In addition, receivables from unsettled securities sales, primarily related to our U.S. agency residential mortgage-backed trading operations, increased $1.1 billion. Growth in average earning assets and non-interest bearing receivables was largely funded by a $1.5 billion increase in interest-bearing deposits.
Net interest margin was 2.80 percent compared to 2.88 percent in the previous quarter. While the Federal Reserve reduced the federal funds rate in multiple rates cuts in the latter half of 2019 and first quarter of 2020, LIBOR has remained elevated relative to the rate cuts. This, combined with our ability to move deposit costs down, has preserved a large portion of our margin.
The yield on average earning assets was 3.73 percent, a 20 basis point decrease from the prior quarter. The loan portfolio yield was 4.50 percent, down 25 basis points. The yield on the available for sale securities portfolio decreased 4 basis points to 2.48 percent while the yield on interest-bearing cash and cash equivalents decreased 29 basis points.
Funding costs were 1.19 percent, down 21 basis points. The cost of interest-bearing deposits decreased 11 basis points to 0.98 percent. The cost of other borrowed funds was down 36 basis points to 1.47 percent. The benefit to net interest margin from assets funded by non-interest liabilities was 26 basis points for the first quarter of 2020 compared to 35 basis points for the fourth quarter of 2019.
Fees and Commissions Revenue
Fees and commissions revenue totaled $192.7 million for the first quarter of 2020, an increase of $13.3 million over the fourth quarter of 2019.
Declining interest rates increased mortgage banking revenue and related trading activity. Mortgage banking revenue increased $11.8 million or 46 percent. Mortgage loan production volume increased 65 percent and the gain on sale margin increased 62 basis points to 2.06 percent. Brokerage and trading revenue increased $6.9 million to $50.8 million. Revenue from mortgage trading activity increased $15.0 million over the previous quarter. Mortgage trading revenue was partially offset by widening spreads that decreased the quarter-end fair value of asset-backed and municipal securities.
Fiduciary and asset management revenue remained relatively consistent with the prior quarter, even given the current economic environment. Approximately a third of the assets are currently exposed to equities. This diversification, combined with strong sales efforts, has continued to produce strong results during this time.

3



Other revenue decreased $3.0 million, primarily due to lower revenue from repossessed oil and gas properties. Other operating expense related to these properties decreased by a comparable amount.
Operating Expense
Total operating expense was $268.6 million for the first quarter of 2020, a decrease of $20.2 million compared to the fourth quarter of 2019.
Personnel expense decreased $12.2 million. Incentive compensation decreased $13.6 million, largely due to a decrease in deferred compensation, which is partially offset by a decrease in the value of related investments included in Other gains (losses). Cash based incentive compensation was down $4.7 million, primarily due to annual incentives incurred in the fourth quarter. Regular compensation decreased $2.2 million. The fourth quarter included approximately $2.0 million in severance costs due to realignment of personnel. Employee benefits increased $3.6 million as a seasonal increase in payroll taxes and retirement plan expenses was partially offset by a decrease in employee healthcare costs.
Non-personnel expense decreased $7.9 million compared to the fourth quarter of 2019. Mortgage banking costs decreased $3.7 million due to a reduction of mortgage servicing rights amortization. Business promotion expense decreased $2.6 million due to a seasonal decrease in advertising costs combined with reduced travel costs largely as a result of the current pandemic. The fourth quarter of 2019 included a $2.0 million charitable contribution to the BOKF Foundation, which provides support to many nonprofit partners in our communities.
Loans, Deposits and Capital
Loans
Outstanding loans were $22.5 billion at March 31, 2020, up $713 million over December 31, 2019.
Outstanding commercial loan balances grew by $764 million or 5 percent over December 31, 2019. Advances on existing commercial revolving lines of credit in the first quarter represented $751 million of this increase, due to both seasonal factors and customer responses to the COVID-19 pandemic. Although the primary source of repayment of our commercial loan portfolio is the on-going cash flow from operations of the customer's business, loans are generally governed by a borrowing base and secured by the customer’s assets.
General business loans increased $371 million to $3.6 billion or 16 percent of total loans. General business loans includes $2.0 billion of wholesale/retail loans and $698 million of manufacturing loans.
Energy loan balances increased $138 million to $4.1 billion or 18 percent of total loans. Supporting the energy industry has been a hallmark of the Company for over a century. The majority of this portfolio is first lien, senior secured, reserve-based lending to oil and gas producers, which we believe is the lowest risk form of energy lending.

4



Demand declines related to the COVID-19 pandemic coupled with the OPEC Plus production conflict have led to price declines of current spot and future oil prices. Approximately 62 percent of committed production loans are secured by properties primarily producing oil. The remaining 38 percent is secured by properties primarily producing natural gas, which are not as significantly impacted by the recent downturn. As we have said in the past, the duration of the downturn is a more significant factor affecting performance than the level of prices. If drivers of this decline are short term, meaning less than twelve months, then our expected losses in the portfolio will not be overly impactful to the company.
We also conduct quarterly stress tests of our energy borrowers with more than 50 percent funding on their lines of credit and all criticized loans using a price deck discounted at 20 percent. This stress test helps us identify potential issues, although the most recent test resulted in no surprises once hedging was taken into consideration. Of all the energy customers that we stress test, which makes up 92 percent of production loans outstanding, 95 percent of our customers have some level of hedging in the 12-month range and many of them carry into the 24-month range. We believe our disciplined underwriting approach and doing business with high-quality borrowers will work to weather this downturn as we have previous downturns.
Healthcare sector loan balances increased $131 million to $3.2 billion or 14 percent of total loans. Our healthcare sector loans primarily consist of $2.4 billion of senior housing and care facilities, including independent living, assisted living and skilled nursing. Generally we loan to borrowers with a portfolio of multiple facilities that serves to help diversify risks specific to a single facility. The remaining balance is composed of hospitals and other medical service providers impacted by a deferral of elective procedures to ensure adequate protective equipment and ventilators for those providing acute care to virus patients. The CARES Act does include multiple revenue enhancement measures for both hospitals and skilled nursing facilities as they manage through the risks of the virus.
Services loan balances increased $124 million to $4.0 billion or 18 percent of total loans. Services loans consist of a large number of loans to a variety of businesses, including Native American tribal and state and local municipal government entities, Native American tribal casino operations, educational services, consumer services and commercial services.

Our services and general business loans include areas we consider to be more exposed to the economic slowdown as a result of the social distancing measures in place to combat the COVID-19 pandemic such as entertainment and recreation, retail, hotels, churches, airline travel, and higher education that are dependent on large social gatherings to remain profitable. This represents approximately 8 percent of our total portfolio. This risk may be further mitigated as some of these borrowers participate in the Paycheck Protection Program. We will continue to monitor these areas closely in the coming months.
Commercial real estate loan balances were largely unchanged compared to December 31, 2019 and represent 20 percent of total loans at March 31, 2020. Loans secured by other commercial real estate properties increased $107 million to $564 million. Loans secured by office buildings increased $34 million to $962 million. Loans secured by industrial facilities decreased $128 million to $728 million. Multifamily residential loans are our largest exposure in commercial real estate loans totaling $1.3 billion at March 31, 2020. Loans secured by retail facilities were $774 million at March 31, 2020. Loans secured by retail facilities are clearly the most vulnerable to the impacts of measures being taken to hinder the spread of the virus, the extent of which is dependent upon the duration of various governmental orders and adjustments in consumer behavior after these orders are lifted. While office and multifamily may also be impacted, we believe our geographic footprint will help in the long term because of strong in-migration over time.

5



Loans to individuals decreased $68 million, including a $38 million decrease in home equity loans and a $26 million decrease in personal loans. Loans to individuals represent 14 percent of total loans at March 31, 2020.
Deposits
Period-end deposits totaled $29.2 billion at March 31, 2020, a $1.6 billion increase over December 31, 2019. Strong deposit growth was driven by a combination of our continued focus on growing core customer deposits, inflows from external money funds, and seasonal inflows. Interest-bearing transaction account balances grew by $1.2 billion and demand deposit balances increased $360 million. Average deposits were $28.2 billion at March 31, 2020, an increase of $1.1 billion compared to December 31, 2019. Total interest-bearing transaction deposits increased $1.5 billion, partially offset by a decrease in demand deposits of $380 million.
Capital
The company's common equity Tier 1 capital ratio was 10.98 percent at March 31, 2020. In addition, the company's Tier 1 capital ratio was 10.98 percent, total capital ratio was 12.58 percent, and leverage ratio was 8.16 percent at March 31, 2020. We have elected to delay the regulatory capital impact of the transition of the allowance for credit losses from the incurred loss methodology to CECL for two years, followed by a three-year transition period. At December 31, 2019, the company's common equity Tier 1 capital ratio was 11.39 percent, Tier 1 capital ratio was 11.39 percent, total capital ratio was 12.94 percent, and leverage ratio was 8.40 percent.
The company's tangible common equity ratio, a non-GAAP measure, was 8.39 percent at March 31, 2020 and 8.98 percent at December 31, 2019. 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.

The company repurchased 442,000 shares at an average price of $75.52 per share in the first quarter of 2020 and 280,000 shares at an average price of $81.59 in the fourth quarter of 2019. We view share buybacks opportunistically, but within the context of maintaining our strong capital position.
Credit Quality
The Company adopted FASB Accounting Standard Update No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Assets Measured at Amortized Cost ("CECL") on January 1, 2020 through a pre-tax cumulative-effect adjustment to equity of $61.4 million. CECL requires recognition of expected credit losses on assets carried at amortized cost over their expected lives. The previous incurred loss model incorporated only known information as of the balance sheet date. CECL uses models to measure the probability of default and loss given default over a 12-month reasonable and supportable forecast period. Models incorporate base case, downside and upside macroeconomic variables such as real gross domestic product ("GDP") growth, civilian unemployment rate and West Texas Intermediate ("WTI") oil prices on a probability weighted basis.

6



The provision for credit losses was $93.8 million for the first quarter of 2020, with $99.3 million related to lending activity. Changes in our reasonable and supportable forecasts of macroeconomic variables, primarily due to the impact of the COVID-19 pandemic, oil price declines, and other assumptions, required a provision of $66.2 million. All other changes totaled $33.1 million, which included portfolio changes of $15.9 million and net charge-offs of $17.2 million.
Our base case reasonable and supportable forecast includes a 20 percent decrease in GDP and an 8.3 percent civilian unemployment rate in the second quarter of 2020. Our forward twelve month forecast through the first quarter of 2021 assumes a 4.6 percent decrease in GDP and a 6.5 percent civilian unemployment rate. WTI oil prices are projected to generally follow the NYMEX forward curve that existed at the end of March 2020, $25.10 per barrel for delivery in the second quarter of 2020 and increasing to $34.73 per barrel for delivery in the first quarter of 2021. Our downside reasonable and supportable forecast reflects a more severe and prolonged disruption in economic activity than the base case and includes a 30 percent decrease in GDP and a 9.5 percent civilian unemployment rate in the second quarter of 2020. Our forward twelve month forecast through the first quarter of 2021 assumes a 10.9 percent decrease in GDP and an 8.0 percent civilian unemployment rate. WTI oil prices are projected to range from $19.10 per barrel for delivery in the second quarter of 2020 to $31.73 per barrel for delivery in the first quarter of 2021.

The allowance for loan losses totaled $315 million or 1.40 percent of outstanding loans and 199 percent of nonaccruing loans at March 31, 2020, excluding residential mortgage loans guaranteed by U.S. government agencies. The combined allowance for loan losses and accrual for off-balance sheet credit risk from unfunded loan commitments was $344 million or 1.53 percent of outstanding loans and 217 percent of nonaccruing loans at March 31, 2020. The combined allowance for credit losses attributed to energy was 2.43 percent of outstanding energy loans at March 31.

At December 31, 2019, the allowance for loan losses was $211 million or 0.97 percent of outstanding loans and 121 percent of nonaccruing loans, excluding loans guaranteed by U.S. government agencies. The combined allowance for loan losses and accrual for off-balance sheet credit risk from unfunded loan commitments was $212 million or 0.98 percent of outstanding loans and 121 percent of nonaccruing loans.
Nonperforming assets totaled $292 million or 1.30 percent of outstanding loans and repossessed assets at March 31, 2020, compared to $294 million or 1.35 percent at December 31, 2019. Nonperforming assets that are not guaranteed by U.S. government agencies totaled $195 million or 0.87 percent of outstanding loans and repossessed assets at March 31, 2020, compared to $195 million or 0.90 percent at December 31, 2019.
Nonaccruing loans were $163 million or 0.73 percent of outstanding loans at March 31, 2020. Nonaccruing commercial loans totaled $119 million or 0.80 percent of outstanding commercial loans. Nonaccruing commercial real estate loans totaled $8.5 million or 0.19 percent of outstanding commercial real estate loans. Nonaccruing loans to individuals totaled $36 million or 1.12 percent of outstanding loans to individuals.
Nonaccruing loans decreased $18 million from December 31, 2019, primarily due to a $19 million decrease in nonaccruing commercial real estate loans. Nonaccruing energy loans increased $4.7 million. New nonaccruing loans identified in the first quarter totaled $30 million, offset by $8.9 million in payments received, $19 million in charge-offs and $18 million of foreclosures.

7



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 $293 million at March 31, compared to $160 million at December 31. The increase largely resulted from energy and service sector loans.
Net charge-offs were $17.2 million or 0.31 percent of average loans on an annualized basis for the first quarter of 2020, compared to $12.5 million or 0.22 percent of average loans on an annualized basis for the fourth quarter of 2019. Net charge-offs were 0.24 percent of average loans over the last four quarters. Gross charge-offs were $18.9 million for the first quarter compared to $14.3 million for the previous quarter. Recoveries totaled $1.7 million for the first quarter of 2020 and $1.8 million for the fourth quarter of 2019.
Securities and Derivatives
The fair value of the available for sale securities portfolio totaled $12.7 billion at March 31, 2020, a $1.4 billion increase compared to December 31, 2019. At March 31, 2020, the available for sale securities portfolio consisted primarily of $9.3 billion of residential mortgage-backed securities fully backed by U.S. government agencies and $3.4 billion of commercial mortgage-backed securities fully backed by U.S. government agencies. At March 31, 2020, the available for sale securities portfolio had a net unrealized gain of $436 million compared to $138 million at December 31, 2019.
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. This portfolio of fair value option securities increased $605 million to $1.7 billion at March 31, 2020.
The net economic benefit of the changes in fair value of mortgage servicing rights and related economic hedges was $2.6 million during the first quarter of 2020. The magnitude of declines in mortgage rates resulted in an $88.5 million decrease in the fair value of mortgage servicing rights. However, our securities and derivatives hedges held as the economic hedge offset that decrease by $86.8 million. We also had $4.3 million of related net interest revenue.

Conference Call and Webcast

The company will hold a conference call at 9 a.m. Central time on Wednesday, April 22, 2020 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 # 13701466.

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About BOK Financial Corporation
BOK Financial Corporation is a $47 billion regional financial services company headquartered in Tulsa, Oklahoma with $76 billion in assets under management and administration. The company's stock is publicly traded on NASDAQ under the Global Select market listings (BOKF). BOK Financial Corporation's holdings include BOKF, NA; BOK Financial Securities, Inc., BOK Financial Private Wealth, Inc. and BOK Financial Insurance, Inc. BOKF, NA operates TransFund, Cavanal Hill Investment Management and BOK Financial Asset Management, Inc. BOKF, NA operates banking divisions across eight states as: Bank of Albuquerque; Bank of Oklahoma; Bank of Texas; and BOK Financial in Arizona, Arkansas, Colorado, Kansas and Missouri; as well as having limited purpose offices in Nebraska, Milwaukee and Connecticut. Through its subsidiaries, BOK Financial Corporation provides commercial and consumer banking, brokerage trading, investment, trust and insurance 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, 2020 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 Corporation, the financial services industry, the economy generally and the expected or potential impact of the novel coronavirus (COVID-19) pandemic, and the related responses of the government, consumers, and others, on our business, financial condition and results of operations. 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 acquisitions and 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 various forward-looking 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 government, consumer or business responses to, and ability to treat or prevent further outbreak of the COVID-19 pandemic, changes in commodity prices, interest rates and interest rate relationships, inflation, 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 Corporation 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.



9

                                            
Exhibit 99(b)

BALANCE SHEETS -- UNAUDITED
BOK FINANCIAL CORPORATION
(In thousands)
 
Mar. 31, 2020
 
Dec. 31, 2019
ASSETS
 
 
 
Cash and due from banks
$
670,500

 
$
735,836

Interest-bearing cash and cash equivalents
302,577

 
522,985

Trading securities
2,110,585

 
1,623,921

Investment securities, net of allowance
272,576

 
293,418

Available for sale securities
12,694,277

 
11,269,643

Fair value option securities
1,703,238

 
1,098,577

Restricted equity securities
390,042

 
460,552

Residential mortgage loans held for sale
204,720

 
182,271

Loans:
 
 
 
Commercial
14,795,975

 
14,031,650

Commercial real estate
4,450,085

 
4,433,783

Loans to individuals
3,217,910

 
3,285,554

Total loans
22,463,970

 
21,750,987

Allowance for loan losses
(315,311
)
 
(210,759
)
Loans, net of allowance
22,148,659

 
21,540,228

Premises and equipment, net
546,093

 
535,519

Receivables
207,341

 
231,811

Goodwill
1,048,091

 
1,048,091

Intangible assets, net
121,807

 
125,271

Mortgage servicing rights
110,828

 
201,886

Real estate and other repossessed assets, net
36,744

 
20,359

Derivative contracts, net
922,716

 
323,375

Cash surrender value of bank-owned life insurance
391,006

 
389,879

Receivable on unsettled securities sales
2,171,881

 
1,020,404

Other assets
1,065,481

 
547,995

TOTAL ASSETS
$
47,119,162

 
$
42,172,021

 
 
 
 
LIABILITIES AND EQUITY
 
 
 
Deposits:
 
 
 
Demand
$
9,821,582

 
$
9,461,291

Interest-bearing transaction
16,596,292

 
15,391,752

Savings
593,805

 
550,276

Time
2,232,473

 
2,217,849

Total deposits
29,244,152

 
27,621,168

Funds purchased and repurchase agreements
4,583,768

 
3,818,350

Other borrowings
5,529,554

 
4,527,055

Subordinated debentures
275,942

 
275,923

Accrued interest, taxes and expense
309,236

 
259,701

Due on unsettled securities purchases
537,709

 
182,547

Derivative contracts, net
1,213,445

 
251,128

Other liabilities
391,196

 
372,230

TOTAL LIABILITIES
42,085,002

 
37,308,102

Shareholders' equity:
 
 
 
Capital, surplus and retained earnings
4,694,956

 
4,750,872

Accumulated other comprehensive gain
331,292

 
104,923

TOTAL SHAREHOLDERS' EQUITY
5,026,248

 
4,855,795

Non-controlling interests
7,912

 
8,124

TOTAL EQUITY
5,034,160

 
4,863,919

TOTAL LIABILITIES AND EQUITY
$
47,119,162

 
$
42,172,021



10



AVERAGE BALANCE SHEETS -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands)
 
Three Months Ended
 
Mar. 31, 2020
 
Dec. 31, 2019
 
Sept. 30, 2019
 
June 30, 2019
 
Mar. 31, 2019
ASSETS
 
 
 
 
 
 
 
 
 
Interest-bearing cash and cash equivalents
$
721,659

 
$
573,203

 
$
500,823

 
$
535,491

 
$
537,903

Trading securities
1,690,104

 
1,672,426

 
1,696,568

 
1,757,335

 
1,968,399

Investment securities, net of allowance
282,265

 
298,567

 
308,090

 
328,482

 
343,282

Available for sale securities
11,664,521

 
11,333,524

 
10,747,439

 
9,435,668

 
8,883,054

Fair value option securities
1,793,480

 
1,521,528

 
1,553,879

 
898,772

 
594,349

Restricted equity securities
429,133

 
479,687

 
476,781

 
413,812

 
395,432

Residential mortgage loans held for sale
129,708

 
203,535

 
203,319

 
192,102

 
145,040

Loans:
 
 
 
 
 
 
 
 
 
Commercial
14,452,851

 
14,344,534

 
14,507,185

 
14,175,057

 
13,966,521

Commercial real estate
4,346,886

 
4,532,649

 
4,652,534

 
4,656,861

 
4,602,149

Loans to individuals
3,143,286

 
3,358,817

 
3,253,199

 
3,172,487

 
3,197,395

Total loans
21,943,023

 
22,236,000

 
22,412,918

 
22,004,405

 
21,766,065

Allowance for loan losses
(250,338
)
 
(205,417
)
 
(201,714
)
 
(205,532
)
 
(206,092
)
Loans, net of allowance
21,692,685

 
22,030,583

 
22,211,204

 
21,798,873

 
21,559,973

Total earning assets
38,403,555

 
38,113,053

 
37,698,103

 
35,360,535

 
34,427,432

Cash and due from banks
669,369

 
690,806

 
717,338

 
703,294

 
705,411

Derivative contracts, net
376,621

 
311,542

 
331,834

 
328,802

 
262,927

Cash surrender value of bank-owned life insurance
390,009

 
388,012

 
385,190

 
384,974

 
382,538

Receivable on unsettled securities sales
3,046,111

 
1,973,604

 
1,742,794

 
1,437,462

 
1,224,700

Other assets
2,834,953

 
2,736,337

 
2,705,089

 
2,629,710

 
2,669,673

TOTAL ASSETS
$
45,720,618

 
$
44,213,354

 
$
43,580,348

 
$
40,844,777

 
$
39,672,681

 
 
 
 
 
 
 
 
 
 
LIABILITIES AND EQUITY
 
 
 
 
 
 
 
 
 
Deposits:
 
 
 
 
 
 
 
 
 
Demand
$
9,232,859

 
$
9,612,533

 
$
9,759,710

 
$
9,883,965

 
$
9,988,088

Interest-bearing transaction
16,159,654

 
14,685,385

 
13,131,542

 
12,512,282

 
11,931,539

Savings
563,821

 
554,605

 
557,122

 
558,738

 
541,575

Time
2,239,234

 
2,247,717

 
2,251,800

 
2,207,391

 
2,153,277

Total deposits
28,195,568

 
27,100,240

 
25,700,174

 
25,162,376

 
24,614,479

Funds purchased and repurchase agreements
3,815,941

 
4,120,610

 
3,106,163

 
2,066,950

 
2,033,036

Other borrowings
6,542,325

 
6,247,194

 
8,125,023

 
7,175,617

 
7,040,279

Subordinated debentures
275,932

 
275,916

 
275,900

 
275,887

 
275,882

Derivative contracts, net
379,342

 
276,078

 
300,051

 
283,484

 
273,786

Due on unsettled securities purchases
960,780

 
784,174

 
745,893

 
821,688

 
453,937

Other liabilities
642,764

 
561,654

 
547,144

 
460,732

 
501,788

TOTAL LIABILITIES
40,812,652

 
39,365,866

 
38,800,348

 
36,246,734

 
35,193,187

Total equity
4,907,966

 
4,847,488

 
4,780,000

 
4,598,043

 
4,479,494

TOTAL LIABILITIES AND EQUITY
$
45,720,618

 
$
44,213,354

 
$
43,580,348

 
$
40,844,777

 
$
39,672,681



11



STATEMENTS OF EARNINGS -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands, except per share data)
 
Three Months Ended
 
March 31,
 
2020
 
2019
 
 
 
 
Interest revenue
$
348,937

 
$
376,074

Interest expense
87,577

 
97,972

Net interest revenue
261,360

 
278,102

Provision for credit losses
93,771

 
8,000

Net interest revenue after provision for credit losses
167,589

 
270,102

Other operating revenue:
 
 
 
Brokerage and trading revenue
50,779

 
31,617

Transaction card revenue
21,881

 
20,738

Fiduciary and asset management revenue
44,458

 
43,358

Deposit service charges and fees
26,130

 
28,243

Mortgage banking revenue
37,167

 
23,834

Other revenue
12,309

 
12,762

Total fees and commissions
192,724

 
160,552

Other gains (losses), net
(10,741
)
 
2,976

Gain on derivatives, net
18,420

 
4,667

Gain on fair value option securities, net
68,393

 
9,665

Change in fair value of mortgage servicing rights
(88,480
)
 
(20,666
)
Gain on available for sale securities, net
3

 
76

Total other operating revenue
180,319

 
157,270

Other operating expense:
 
 
 
Personnel
156,181

 
169,228

Business promotion
6,215

 
7,874

Professional fees and services
12,948

 
16,139

Net occupancy and equipment
26,061

 
29,521

Insurance
4,980

 
4,839

Data processing and communications
32,743

 
31,449

Printing, postage and supplies
4,272

 
4,885

Net losses and operating expenses of repossessed assets
1,531

 
1,996

Amortization of intangible assets
5,094

 
5,191

Mortgage banking costs
10,545

 
9,906

Other expense
8,054

 
6,129

Total other operating expense
268,624

 
287,157

 
 
 
 
Net income before taxes
79,284

 
140,215

Federal and state income taxes
17,300

 
29,950

 
 
 
 
Net income
61,984

 
110,265

Net loss attributable to non-controlling interests
(95
)
 
(347
)
Net income attributable to BOK Financial Corporation shareholders
$
62,079

 
$
110,612

 
 
 
 
Average shares outstanding:
 
 
 
Basic
70,123,685

 
71,387,070

Diluted
70,130,166

 
71,404,388

 
 
 
 
Net income per share:
 
 
 
Basic
$
0.88

 
$
1.54

Diluted
$
0.88

 
$
1.54




12



FINANCIAL HIGHLIGHTS -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands, except ratio and share data)
 
Three Months Ended
 
Mar. 31, 2020
 
Dec. 31, 2019
 
Sept. 30, 2019
 
June 30, 2019
 
Mar. 31, 2019
Capital:
 
 
 
 
 
 
 
 
 
Period-end shareholders' equity
$
5,026,248

 
$
4,855,795

 
$
4,829,016

 
$
4,709,438

 
$
4,522,873

Risk weighted assets
$
32,973,242

 
$
31,673,425

 
$
32,159,139

 
$
32,040,741

 
$
31,601,558

Risk-based capital ratios:
 
 
 
 
 
 
 
 
 
Common equity tier 1
10.98
%
 
11.39
%
 
11.06
%
 
10.84
%
 
10.71
%
Tier 1
10.98
%
 
11.39
%
 
11.06
%
 
10.84
%
 
10.71
%
Total capital
12.58
%
 
12.94
%
 
12.56
%
 
12.34
%
 
12.24
%
Leverage ratio
8.16
%
 
8.40
%
 
8.41
%
 
8.75
%
 
8.76
%
Tangible common equity ratio1
8.39
%
 
8.98
%
 
8.72
%
 
8.69
%
 
8.64
%
 
 
 
 
 
 
 
 
 
 
Common stock:
 
 
 
 
 
 
 
 
 
Book value per share
$
71.49

 
$
68.80

 
$
68.15

 
$
66.15

 
$
63.30

Tangible book value per share
54.85

 
52.17

 
51.60

 
49.68

 
46.82

Market value per share:
 
 
 
 
 
 
 
 
 
High
$
87.40

 
$
88.28

 
$
84.35

 
$
88.17

 
$
93.72

Low
$
34.57

 
$
71.85

 
$
72.96

 
$
72.60

 
$
72.11

Cash dividends paid
$
35,949

 
$
36,011

 
$
35,472

 
$
35,631

 
$
35,885

Dividend payout ratio
57.91
%
 
32.63
%
 
24.94
%
 
25.90
%
 
32.44
%
Shares outstanding, net
70,308,532

 
70,579,598

 
70,858,010

 
71,193,770

 
71,449,982

Stock buy-back program:
 
 
 
 
 
 
 
 
 
Shares repurchased
442,000

 
280,000

 
336,713

 
250,000

 
705,609

Amount
$
33,380

 
$
22,844

 
$
25,937

 
$
20,125

 
$
60,577

Average price per share
$
75.52

 
$
81.59

 
$
77.03

 
$
80.50

 
$
85.85

 
 
 
 
 
 
 
 
 
 
Performance ratios (quarter annualized):
Return on average assets
0.55
%
 
0.99
%
 
1.29
%
 
1.35
%
 
1.13
%
Return on average equity
5.10
%
 
9.05
%
 
11.83
%
 
12.02
%
 
10.04
%
Net interest margin
2.80
%
 
2.88
%
 
3.01
%
 
3.30
%
 
3.30
%
Efficiency ratio
58.62
%
 
63.65
%
 
59.31
%
 
59.51
%
 
64.80
%
 
 
 
 
 
 
 
 
 
 
Reconciliation of non-GAAP measures:
1      Tangible common equity ratio:
 
 
 
 
 
 
 
 
 
Total shareholders' equity
$
5,026,248

 
$
4,855,795

 
$
4,829,016

 
$
4,709,438

 
$
4,522,873

Less: Goodwill and intangible assets, net
1,169,898

 
1,173,362

 
1,172,411

 
1,172,564

 
1,177,573

Tangible common equity
$
3,856,350

 
$
3,682,433

 
$
3,656,605

 
$
3,536,874

 
$
3,345,300

 
 
 
 
 
 
 
 
 
 
Total assets
$
47,119,162

 
$
42,172,021

 
$
43,127,205

 
$
41,893,073

 
$
39,882,962

Less: Goodwill and intangible assets, net
1,169,898

 
1,173,362

 
1,172,411

 
1,172,564

 
1,177,573

Tangible assets
$
45,949,264

 
$
40,998,659

 
$
41,954,794

 
$
40,720,509

 
$
38,705,389

 
 
 
 
 
 
 
 
 
 
Tangible common equity ratio
8.39
%
 
8.98
%
 
8.72
%
 
8.69
%
 
8.64
%
 
 
 
 
 
 
 
 
 
 

13



FINANCIAL HIGHLIGHTS -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands, except ratio and share data)
 
Three Months Ended
 
Mar. 31, 2020
 
Dec. 31, 2019
 
Sept. 30, 2019
 
June 30, 2019
 
Mar. 31, 2019
Other data:
 
 
 
 
 
 
 
 
 
Tax equivalent interest
$
2,715

 
$
2,726

 
$
2,936

 
$
3,481

 
$
2,529

Net unrealized gain (loss) on available for sale securities
$
435,989

 
$
138,149

 
$
178,060

 
$
131,780

 
$
(2,609
)
 
 
 
 
 
 
 
 
 
 
Mortgage banking:
 
 
 
 
 
 
 
 
 
Mortgage production revenue
$
21,570

 
$
9,169

 
$
13,814

 
$
11,869

 
$
7,868

 
 
 
 
 
 
 
 
 
 
Mortgage loans funded for sale
$
548,956

 
$
855,643

 
$
877,280

 
$
729,841

 
$
510,527

Add: current period-end outstanding commitments
657,570

 
158,460

 
379,377

 
344,087

 
263,434

Less: prior period end outstanding commitments
158,460

 
379,377

 
344,087

 
263,434

 
160,848

Total mortgage production volume
$
1,048,066

 
$
634,726

 
$
912,570

 
$
810,494

 
$
613,113

 
 
 
 
 
 
 
 
 
 
Mortgage loan refinances to mortgage loans funded for sale
57
%
 
57
%
 
56
%
 
31
%
 
30
%
Gain on sale margin
2.06
%
 
1.44
%
 
1.51
%
 
1.46
%
 
1.28
%
 
 
 
 
 
 
 
 
 
 
Mortgage servicing revenue
$
15,597

 
$
16,227

 
$
16,366

 
$
16,262

 
$
15,966

Average outstanding principal balance of mortgage loans serviced for others
20,416,546

 
20,856,446

 
21,172,874

 
21,418,690

 
21,581,835

Average mortgage servicing revenue rates
0.31
%
 
0.31
%
 
0.31
%
 
0.30
%
 
0.30
%
 
 
 
 
 
 
 
 
 
 
Gain (loss) on mortgage servicing rights, net of economic hedge:
Gain (loss) on mortgage hedge derivative contracts, net
$
18,371

 
$
(4,714
)
 
$
3,742

 
$
11,128

 
$
4,432

Gain (loss) on fair value option securities, net
68,393

 
(8,328
)
 
4,597

 
9,853

 
9,665

Gain (loss) on economic hedge of mortgage servicing rights
86,764

 
(13,042
)
 
8,339

 
20,981

 
14,097

Gain (loss) on changes in fair value of mortgage servicing rights
(88,480
)
 
9,297

 
(12,593
)
 
(29,555
)
 
(20,666
)
Loss on changes in fair value of mortgage servicing rights, net of economic hedges, included in other operating revenue
(1,716
)
 
(3,745
)
 
(4,254
)
 
(8,574
)
 
(6,569
)
Net interest revenue on fair value option securities2
4,268

 
1,544

 
1,245

 
1,296

 
1,129

Total economic cost of changes in the fair value of mortgage servicing rights, net of economic hedges
$
2,552

 
$
(2,201
)
 
$
(3,009
)
 
$
(7,278
)
 
$
(5,440
)
2  
Actual interest earned on fair value option securities less internal transfer-priced cost of funds.



14



QUARTERLY EARNINGS TREND -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands, except ratio and per share data)
 
Three Months Ended
 
Mar. 31, 2020
 
Dec. 31, 2019
 
Sept. 30, 2019
 
June 30, 2019
 
Mar. 31, 2019
 
 
 
 
 
 
 
 
 
 
Interest revenue
$
348,937

 
$
369,857

 
$
395,207

 
$
390,820

 
$
376,074

Interest expense
87,577

 
99,608

 
116,111

 
105,388

 
97,972

Net interest revenue
261,360

 
270,249

 
279,096

 
285,432

 
278,102

Provision for credit losses
93,771

 
19,000

 
12,000

 
5,000

 
8,000

Net interest revenue after provision for credit losses
167,589

 
251,249

 
267,096

 
280,432

 
270,102

Other operating revenue:
 
 
 
 
 
 
 
 
 
Brokerage and trading revenue
50,779

 
43,843

 
43,840

 
40,526

 
31,617

Transaction card revenue
21,881

 
22,548

 
22,015

 
21,915

 
20,738

Fiduciary and asset management revenue
44,458

 
45,021

 
43,621

 
45,025

 
43,358

Deposit service charges and fees
26,130

 
27,331

 
28,837

 
28,074

 
28,243

Mortgage banking revenue
37,167

 
25,396

 
30,180

 
28,131

 
23,834

Other revenue
12,309

 
15,283

 
17,626

 
12,437

 
12,762

Total fees and commissions
192,724

 
179,422

 
186,119

 
176,108

 
160,552

Other gains (losses), net
(10,741
)
 
(1,649
)
 
4,544

 
3,480

 
2,976

Gain (loss) on derivatives, net
18,420

 
(4,644
)
 
3,778

 
11,150

 
4,667

Gain (loss) on fair value option securities, net
68,393

 
(8,328
)
 
4,597

 
9,853

 
9,665

Change in fair value of mortgage servicing rights
(88,480
)
 
9,297

 
(12,593
)
 
(29,555
)
 
(20,666
)
Gain on available for sale securities, net
3

 
4,487

 
5

 
1,029

 
76

Total other operating revenue
180,319

 
178,585

 
186,450

 
172,065

 
157,270

Other operating expense:
 
 
 
 
 
 
 
 
 
Personnel
156,181

 
168,422

 
162,573

 
160,342

 
169,228

Business promotion
6,215

 
8,787

 
8,859

 
10,142

 
7,874

Charitable contributions to BOKF Foundation

 
2,000

 

 
1,000

 

Professional fees and services
12,948

 
13,408

 
12,312

 
13,002

 
16,139

Net occupancy and equipment
26,061

 
26,316

 
27,558

 
26,880

 
29,521

Insurance
4,980

 
5,393

 
4,220

 
6,454

 
4,839

Data processing and communications
32,743

 
31,884

 
31,915

 
29,735

 
31,449

Printing, postage and supplies
4,272

 
3,700

 
3,825

 
4,107

 
4,885

Net losses and operating expenses of repossessed assets
1,531

 
2,403

 
1,728

 
580

 
1,996

Amortization of intangible assets
5,094

 
5,225

 
5,064

 
5,138

 
5,191

Mortgage banking costs
10,545

 
14,259

 
14,975

 
11,545

 
9,906

Other expense
8,054

 
6,998

 
6,263

 
8,212

 
6,129

Total other operating expense
268,624

 
288,795

 
279,292

 
277,137

 
287,157

Net income before taxes
79,284

 
141,039

 
174,254

 
175,360

 
140,215

Federal and state income taxes
17,300

 
30,257

 
32,396

 
37,580

 
29,950

Net income
61,984

 
110,782

 
141,858

 
137,780

 
110,265

Net income (loss) attributable to non-controlling interests
(95
)
 
430

 
(373
)
 
217

 
(347
)
Net income attributable to BOK Financial Corporation shareholders
$
62,079

 
$
110,352

 
$
142,231

 
$
137,563

 
$
110,612

 
 
 
 
 
 
 
 
 
 
Average shares outstanding:
 
 
 
 
 
 
 
 
 
Basic
70,123,685

 
70,295,899

 
70,596,307

 
70,887,063

 
71,387,070

Diluted
70,130,166

 
70,309,644

 
70,609,924

 
70,902,033

 
71,404,388

Net income per share:
 
 
 
 
 
 
 
 
 
Basic
$
0.88

 
$
1.56

 
$
2.00

 
$
1.93

 
$
1.54

Diluted
$
0.88

 
$
1.56

 
$
2.00

 
$
1.93

 
$
1.54


15



LOANS TREND -- UNAUDITED
BOK FINANCIAL CORPORATION
(In thousands)
 
 
Mar. 31, 2020
 
Dec. 31, 2019
 
Sept. 30, 2019
 
June 30, 2019
 
Mar. 31, 2019
Commercial:
 
 
 
 
 
 
 
 
 
 
Energy
 
$
4,111,676

 
$
3,973,377

 
$
4,114,269

 
$
3,921,353

 
$
3,705,099

Healthcare
 
3,165,096

 
3,033,916

 
3,032,968

 
2,926,510

 
2,915,885

Services
 
3,955,748

 
3,832,031

 
4,011,089

 
4,105,117

 
4,090,646

General business
 
3,563,455

 
3,192,326

 
3,266,299

 
3,383,928

 
3,250,345

Total commercial
 
14,795,975

 
14,031,650

 
14,424,625

 
14,336,908

 
13,961,975

 
 
 
 
 
 
 
 
 
 
 
Commercial real estate
 
4,450,085

 
4,433,783

 
4,626,057

 
4,710,033

 
4,600,651

 
 
 
 
 
 
 
 
 
 
 
Loans to individuals:
 
 

 
 

 
 

 
 

 
 

Permanent mortgage
 
1,844,555

 
1,886,378

 
1,925,539

 
1,975,449

 
1,999,312

Permanent mortgages guaranteed by U.S. government agencies
 
197,889

 
197,794

 
191,764

 
195,373

 
193,308

Personal
 
1,175,466

 
1,201,382

 
1,117,382

 
1,037,889

 
1,003,734

Total loans to individuals
 
3,217,910

 
3,285,554

 
3,234,685

 
3,208,711

 
3,196,354

 
 
 
 
 
 
 
 
 
 
 
Total
 
$
22,463,970

 
$
21,750,987

 
$
22,285,367

 
$
22,255,652

 
$
21,758,980


16



LOANS MANAGED BY PRINCIPAL MARKET AREA -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands)
 
Mar. 31, 2020
 
Dec. 31, 2019
 
Sept. 30, 2019
 
June 30, 2019
 
Mar. 31, 2019
 
 
 
 
 
 
 
 
 
 
Texas:
 
 
 
 
 
 
 
 
 
Commercial
$
6,350,690

 
$
6,174,894

 
$
6,220,227

 
$
5,877,265

 
$
5,754,018

Commercial real estate
1,296,266

 
1,259,117

 
1,292,116

 
1,341,609

 
1,344,810

Loans to individuals
756,634

 
727,175

 
749,361

 
673,463

 
662,721

Total Texas
8,403,590

 
8,161,186

 
8,261,704

 
7,892,337

 
7,761,549

 
 
 
 
 
 
 
 
 
 
Oklahoma:
 
 
 
 
 
 
 
 
 
Commercial
3,886,086

 
3,454,825

 
3,690,100

 
3,762,234

 
3,551,054

Commercial real estate
593,473

 
631,026

 
679,786

 
717,970

 
665,190

Loans to individuals
1,788,518

 
1,854,864

 
1,753,698

 
1,786,162

 
1,792,188

Total Oklahoma
6,268,077

 
5,940,715

 
6,123,584

 
6,266,366

 
6,008,432

 
 
 
 
 
 
 
 
 
 
Colorado:
 
 
 
 
 
 
 
 
 
Commercial
2,181,309

 
2,169,598

 
2,247,798

 
2,325,742

 
2,231,703

Commercial real estate
955,608

 
927,826

 
975,066

 
1,023,410

 
957,348

Loans to individuals
268,674

 
276,939

 
303,605

 
314,317

 
307,534

Total Colorado
3,405,591

 
3,374,363

 
3,526,469

 
3,663,469

 
3,496,585

 
 
 
 
 
 
 
 
 
 
Arizona:
 
 
 
 
 
 
 
 
 
Commercial
1,396,582

 
1,307,073

 
1,276,534

 
1,330,415

 
1,335,140

Commercial real estate
714,161

 
728,832

 
771,425

 
761,243

 
791,466

Loans to individuals
181,821

 
186,539

 
170,815

 
168,019

 
160,848

Total Arizona
2,292,564

 
2,222,444

 
2,218,774

 
2,259,677

 
2,287,454

 
 
 
 
 
 
 
 
 
 
Kansas/Missouri:
 
 
 
 
 
 
 
 
 
Commercial
556,255

 
527,872

 
566,969

 
602,836

 
667,859

Commercial real estate
310,799

 
322,541

 
374,795

 
331,443

 
327,870

Loans to individuals
116,734

 
131,069

 
146,522

 
155,453

 
157,391

Total Kansas/Missouri
983,788

 
981,482

 
1,088,286

 
1,089,732

 
1,153,120

 
 
 
 
 
 
 
 
 
 
New Mexico:
 
 
 
 
 
 
 
 
 
Commercial
327,164

 
305,320

 
335,409

 
350,520

 
342,915

Commercial real estate
434,150

 
402,148

 
374,331

 
385,058

 
371,416

Loans to individuals
87,110

 
90,257

 
92,270

 
92,626

 
96,391

Total New Mexico
848,424

 
797,725

 
802,010

 
828,204

 
810,722

 
 
 
 
 
 
 
 
 
 
Arkansas:
 
 
 
 
 
 
 
 
 
Commercial
97,889

 
92,068

 
87,588

 
87,896

 
79,286

Commercial real estate
145,628

 
162,293

 
158,538

 
149,300

 
142,551

Loans to individuals
18,419

 
18,711

 
18,414

 
18,671

 
19,281

Total Arkansas
261,936

 
273,072

 
264,540

 
255,867

 
241,118

 
 
 
 
 
 
 
 
 
 
TOTAL BOK FINANCIAL
$
22,463,970

 
$
21,750,987

 
$
22,285,367

 
$
22,255,652

 
$
21,758,980


Loans attributed to a principal market may not always represent the location of the borrower or the collateral.

17



DEPOSITS BY PRINCIPAL MARKET AREA -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands)
 
Mar. 31, 2020
 
Dec. 31, 2019
 
Sept. 30, 2019
 
June 30, 2019
 
Mar. 31, 2019
Oklahoma:
 
 
 
 
 
 
 
 
 
    Demand
$
3,669,558

 
$
3,257,337

 
$
3,515,312

 
$
3,279,360

 
$
3,432,239

    Interest-bearing:
 
 
 
 
 
 
 
 
 
       Transaction
9,955,697

 
8,574,912

 
7,447,799

 
7,020,484

 
6,542,548

       Savings
329,631

 
306,194

 
308,103

 
307,785

 
309,875

       Time
1,137,802

 
1,125,446

 
1,198,170

 
1,253,804

 
1,217,371

    Total interest-bearing
11,423,130

 
10,006,552

 
8,954,072

 
8,582,073

 
8,069,794

Total Oklahoma
15,092,688

 
13,263,889

 
12,469,384

 
11,861,433

 
11,502,033

 
 
 
 
 
 
 
 
 
 
Texas:
 
 
 
 
 
 
 
 
 
    Demand
2,767,399

 
2,757,376

 
2,867,915

 
2,970,340

 
2,964,600

    Interest-bearing:
 
 
 
 
 
 
 
 
 
       Transaction
2,874,362

 
2,911,731

 
2,589,063

 
2,453,187

 
2,385,001

       Savings
115,039

 
102,456

 
100,597

 
103,125

 
101,849

       Time
505,565

 
495,343

 
464,264