BOK Financial Corporation Reports Quarterly Earnings of $188 million or $2.74 Per Share in the Third Quarter

ソース: Nasdaq GlobeNewswire / 20 10 2021 06:55:01 America/Chicago

TULSA, Okla., Oct. 20, 2021 (GLOBE NEWSWIRE) -- BOK Financial Corporation (NASD: BOKF) -

CEO Commentary

Steven G. Bradshaw, president and chief executive officer, stated, “The third quarter was BOKF’s second-consecutive record quarter with net income of $188 million or $2.74 per share. This quarter exhibits many of the benefits achieved from our strategy to generate revenue growth through long-term commitments and investments. Our diversified Wealth Management business, built over 30+ years, largely through organic growth, led the way with a record $153 million in total revenues, a 14% increase from their previous high set during the same quarter last year. Our alternative investment practice, which began in 2005 and provides equity and debt capital to growing businesses, experienced significant gains during the third quarter adding $31 million to pretax revenue. These types of long-term differentiators set us apart and demonstrate the force of a diversified business model.”

Bradshaw continued, “Equally impressive to our revenue generating opportunities this year has been our firm hold on expense management, which has grown at a rate just slightly above 2% over the last two trailing twelve month periods, despite significant technology and cyber-related investments.

“While loan growth continues to be a challenge, and our line utilization levels at five year lows, we believe that the inevitable return to normalized levels will result in significant earnings growth potential. Our strong results today leave us well-positioned to aggressively add customers throughout our loan portfolio.”

Third Quarter 2021 Financial Highlights

Net income was $188.3 million or $2.74 per diluted share for the third quarter of 2021 and $166.4 million or $2.40 per diluted share for the second quarter of 2021.
Net interest revenue totaled $280.2 million, consistent with the prior quarter. Net interest margin was 2.66 percent compared to 2.60 percent in the second quarter of 2021.
Operating revenue totaled $229.8 million, an increase of $38.4 million. Growth in much of our fee-based businesses, led by brokerage and trading and mortgage banking revenues, was partially offset by lower operating revenues from repossessed assets related to oil and gas properties sold during the quarter. In addition, we recognized a $31.1 million pre-tax gain on the sale of an alternative investment. This gain was partially offset by losses on the extinguishment of subordinated debt and sale of repossessed assets.
Operating expense totaled $291.3 million, consistent with the prior quarter, as a $3.8 million increase in personnel expense was offset by a $3.7 million decrease in non-personnel expense, primarily due to a reduction of operating expenses related to oil and gas properties sold during the quarter.
Period-end loans decreased $1.1 billion to $20.3 billion at September 30, 2021. Period-end Paycheck Protection Program ("PPP") loans decreased $586 million to $536 million. The remaining decrease was primarily due to paydowns of commercial energy loans and commercial real estate loans. Average loans were $20.8 billion, a $1.3 billion decrease compared to the second quarter of 2021.
Continued improvement in credit quality metrics and lower loan balances coupled with strength in commodity prices and a continued optimistic outlook for growth in gross domestic product and the labor markets resulted in a $23.0 million negative provision for expected credit losses in the third quarter of 2021. A $35.0 million negative provision for expected credit losses was recorded in the prior quarter. The combined allowance for credit losses totaled $306 million or 1.54 percent of outstanding loans, excluding PPP loans, at September 30, 2021. The combined allowance for credit losses was $336 million or 1.66 percent of outstanding loans, excluding PPP loans, at June 30, 2021.
Average deposits increased $344 million to $37.8 billion and period-end deposits increased $1.1 billion to $38.5 billion, largely due to growth in commercial balances. Average demand deposits grew by $481 million and average interest bearing deposits decreased by $137 million.
The company's common equity Tier 1 capital ratio was 12.26 percent at September 30, 2021. In addition, the company's Tier 1 capital ratio was 12.29 percent, total capital ratio was 13.38 percent, and leverage ratio was 8.77 percent at September 30, 2021. At June 30, 2021, the company's common equity Tier 1 capital ratio was 11.95 percent, Tier 1 capital ratio was 12.01 percent, total capital ratio was 13.61 percent, and leverage ratio was 8.58 percent.
The company repurchased 478,141 shares of common stock at an average price of $85.00 a share in the third quarter of 2021.
On August 23, 2021, the company redeemed the subordinated debt issued in June of 2016 at the interest rate of 5.375 percent using existing capital, saving approximately $8.0 million per year in interest payments. The repayment resulted in a realized loss on extinguishment of debt of $5.2 million.
Commercial Banking contributed $102.7 million to net income in the third quarter of 2021, an increase of $30.1 million compared to the second quarter of 2021. The sale of an alternative investment resulted in a $31.1 million pre-tax gain, net of non-controlling interest. Combined net interest revenue and fee revenue decreased $3.7 million, largely due to a decrease of $6.0 million in production revenue from repossessed oil and gas properties, which was partially offset by a decrease in expenses on the same properties. In addition, favorable yields on deposits sold to our Funds Management unit dampened the reduction of total revenue. Average Commercial Banking loans decreased $393 million due to purposeful deleveraging by our customers. Average Commercial Banking deposits grew 5 percent to $17.9 billion in the third quarter of 2021.
Consumer Banking contributed $12.4 million to net income in the third quarter of 2021, an increase of $10.7 million compared to the prior quarter. Combined net interest revenue and fee revenue increased $9.0 million. Net interest revenue increased $2.3 million, mainly due to favorable yields on deposits sold to our Funds Management unit. Fees and commissions revenue increased $6.7 million, largely due to mortgage production revenue. Lower mortgage banking costs largely drove a $3.0 million decrease in operating expense. Average Consumer Banking deposits were consistent with the prior quarter.
Wealth Management contributed a record $41.4 million to net income in the third quarter of 2021, an increase of $10.3 million compared to the prior quarter. Our diverse set of investment-focused businesses including fixed income trading, private wealth, institutional wealth, financial risk management, and multiple fiduciary businesses combined to provide total net interest and fee revenues of $153.2 million, an increase of $22.0 million over the second quarter of 2021. Revenue primarily from agency residential mortgage trading activity increased $15.4 million to $77.3 million due to higher margin market opportunities. Operating expense increased $8.0 million, primarily due to incentive compensation costs related to increased trading activity. Average Wealth Management deposits decreased 6 percent to $9.1 billion in the third quarter of 2021. Assets under management were $98.8 billion, an increase of $2.2 billion compared to the prior quarter.

Net Interest Revenue

Net interest revenue was $280.2 million for the third quarter of 2021, largely unchanged compared to the second quarter of 2021. Net interest margin was 2.66 percent compared to 2.60 percent in the prior quarter.

Average earning assets decreased $892 million compared to the second quarter of 2021. Average loan balances decreased $1.3 billion, largely due to paydowns of PPP loans. Available for sale securities increased $203 million. Average trading securities grew by $187 million. Other borrowings decreased $1.1 billion while funds purchased and repurchase agreements decreased $342 million.

The yield on average earning assets was 2.78 percent, a 3 basis point increase from the prior quarter. The loan portfolio yield increased 14 basis points to 3.68 percent, primarily due to non-use fees related to lower credit line utilization. The yield on the available for sale securities portfolio decreased 5 basis points to 1.80 percent.

Funding costs were 0.19 percent, down 2 basis points. The cost of interest-bearing deposits decreased 1 basis point to 0.13 percent. The cost of other borrowed funds increased 2 basis points to 0.30 percent. The cost of subordinated debentures decreased 24 basis points due to the redemption of $150 million in the third quarter. The benefit to net interest margin from assets funded by non-interest liabilities was 7 basis points for the third quarter of 2021, compared to 6 basis points for the prior quarter.

Operating Revenue

Growing $21.0 million over the prior quarter, fees and commissions revenue totaled $190.4 million for the third quarter of 2021. Brokerage and trading revenue increased $18.5 million to $47.9 million. Higher margin market opportunities led to an $11.1 million increase in trading revenue. Customer hedging revenue increased $5.1 million, primarily attributed to energy customers. Investment banking revenue increased $1.9 million, largely due to the timing of financial advisory fees.

Mortgage banking revenue increased $5.1 million compared to the prior quarter. While mortgage production volume decreased $28 million to $615 million, production revenue as a percentage of production volume, which includes unrealized gains and losses on our mortgage commitment pipeline and related hedges, increased to 2.50 percent. An increase in consumer activity following the pandemic shut downs resulted in a $1.6 million increase in deposit service charges.

Other gains and losses, net increased $14.6 million over the prior quarter. The sale of an alternative investment resulted in a $31.1 million gain, net of non-controlling interest, which was partially offset by a $5.2 million loss on the extinguishment of subordinated debentures and a $3.9 million loss on the sale of a repossessed oil and gas asset. The prior quarter included a $7.4 million gain on the sale of a repossessed asset.

Other revenue decreased $4.3 million as a result of lower operating revenue from repossessed oil and gas assets due to the sale of a property, which was largely offset by a reduction of expenses on the same properties.

Operating Expense

Total operating expense remained consistent with the prior quarter at $291.3 million with a $3.8 million increase in personnel expense offset by a $3.7 million decrease in non-personnel expense.

Cash based incentive compensation increased $8.8 million, primarily in relation to increased trading revenue. Deferred compensation expense, which is largely offset by a decrease in the value of related investments included in Other gains (losses), net, decreased $2.4 million. Employee benefits expense decreased $3.3 million due to reduced payroll taxes and employee healthcare costs.

Other expense decreased $6.8 million as a result of lower operating expenses on repossessed assets. Mortgage banking costs decreased $2.2 million due to a decrease in prepayments. These decreases were partially offset by a $2.2 million increase in business promotion costs, a $2.0 million increase in data processing and communications expense and a $1.8 million increase in occupancy and equipment expense.

Loans, Deposits and Capital

Loans

Outstanding loans were $20.3 billion at September 30, 2021, a $1.1 billion decrease compared to June 30, 2021, led by lower PPP loan balances and to a lesser extent, energy and commercial real estate loans.

Outstanding commercial loan balances decreased $298 million compared to June 30, 2021, primarily due to lower energy loan balances. 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.

Energy loan balances decreased $197 million to $2.8 billion or 14 percent of total loans. While commodity prices have continued to improve and stabilize, sourcing new loans sufficient to offset paydowns remains a challenge. 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. Approximately 67 percent of committed production loans are secured by properties primarily producing oil. The remaining 33 percent is secured by properties primarily producing natural gas. Unfunded energy loan commitments were $2.8 billion at September 30, 2021, an increase of $109 million over June 30, 2021.

Services loan balances decreased $66 million to $3.3 billion or 16 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, foundations and not-for-profit organizations, educational services and specialty trade contractors.

Healthcare sector loan balances decreased $34 million compared to the prior quarter, totaling $3.3 billion or 16 percent of total loans. Our healthcare sector loans primarily consist of $2.6 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.

Commercial real estate loan balances decreased $130 million compared to June 30, 2021 and represent 20 percent of total loans at September 30, 2021, largely due to refinancing in the long term, non-recourse markets. Multifamily residential loans, decreased $89 million to $876 million at September 30, 2021. Loans secured by office facilities decreased $43 million to $1.0 billion. Loans secured by other commercial real estate properties decreased $35 million to $435 million. Loans secured by industrial facilities increased $66 million to $890 million.

PPP loan balances decreased $586 million to $536 million or 3 percent of total loans.

Loans to individuals decreased $55 million and represent 17 percent of total loans at September 30, 2021. Residential mortgage loans decreased $62 million, largely due to the re-sale of loans previously sold into GNMA mortgage pools that the Company repurchased when certain defined delinquency criteria were met. Many loans repurchased during the pandemic have since been cured and meet the re-sale qualifications. Personal loans were up $7.1 million.

Deposits

Period-end deposits totaled $38.5 billion at September 30, 2021, a $1.1 billion increase compared to June 30, 2021. Demand deposit account balances grew by $710 million and interest-bearing transaction account balances increased by $474 million. Average deposits were $37.8 billion at September 30, 2021, a $344 million increase compared to June 30, 2021. Demand deposit account balances increased $481 million primarily from deposits attributed to the Commercial Banking segment while interest-bearing deposits decreased $137 million.

Capital

The company's common equity Tier 1 capital ratio was 12.26 percent at September 30, 2021. In addition, the company's Tier 1 capital ratio was 12.29 percent, total capital ratio was 13.38 percent, and leverage ratio was 8.77 percent at September 30, 2021. 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, which added 20 basis points to the company's common equity tier 1 capital ratio at September 30. At June 30, 2021, the company's common equity Tier 1 capital ratio was 11.95 percent, Tier 1 capital ratio was 12.01 percent, total capital ratio was 13.61 percent, and leverage ratio was 8.58 percent.

The company's tangible common equity ratio, a non-GAAP measure, was 9.28 percent at September 30, 2021 and 9.09 percent at June 30, 2021. 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 478,141 shares of common stock at an average price of $85.00 a share in the third quarter of 2021. We view share buybacks opportunistically, but within the context of maintaining our strong capital position.

Credit Quality

Expected credit losses on assets carried at amortized cost are recognized over their expected lives based on models that measure the probability of default and loss given default over a 12-month reasonable and supportable forecast period. Our 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.

We recorded a $23.0 million negative provision for credit losses in the third quarter of 2021. Changes in our reasonable and supportable forecasts of macroeconomic variables, primarily due to continued strength in commodity prices and a continued optimistic outlook for economic growth in GDP and labor markets resulted in a $12.3 million decrease in the allowance for credit losses related to lending activities. Changes in loan portfolio characteristics, primarily related to improving credit quality metrics and lower loan balances resulted in a $10.1 million decrease in the allowance for credit losses related to lending activities.

Our base case reasonable and supportable forecast assumes that the COVID-19 pandemic continues to improve from the Delta variant as global virus immunity continues to be more widespread and vaccines prove to be effective against severe virus outcomes as well as new virus strains. Elevated consumer consumption and the need for inventory restocking is expected to result in GDP growth above historical averages throughout mid-year 2022, but begins to moderate thereafter. We expect a 4.1 percent increase in GDP over the next twelve months. We expect labor force participants will continue to re-enter the job market to help meet record job openings. This increase in employment helps maintain household income above its pre-pandemic trend and prevents a sharp drop-off in spending. Our forecasted civilian unemployment rate is 4.9 percent for the fourth quarter of 2021, improving to 4.5 percent by the third quarter of 2022. WTI oil prices are projected to generally follow the NYMEX forward curve that existed at the end of September 2021, averaging $68.38 per barrel over the next twelve months.

The probability weighting of our base case reasonable and supportable forecast decreased to 65 percent in the third quarter of 2021 compared to 70 percent in the second quarter of 2021 as the level of uncertainty in the current economic outlook worsened slightly. Our downside case, probability weighted at 25 percent, assumes additional waves and hotspots emerge in areas of the country with lower vaccination rates stemming from the impact of new virus strains, such as the current Delta variant, as the U.S. enters the fall and winter months. This results in a relatively mild recession with conditions beginning to improve in the summer of 2022.

The allowance for loan losses totaled $277 million or 1.36 percent of outstanding loans and 208 percent of nonaccruing loans at September 30, 2021, 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 $306 million or 1.50 percent of outstanding loans and 230 percent of nonaccruing loans at September 30, 2021. Excluding PPP loans, the allowance for loan losses was 1.40 percent of outstanding loans and the combined allowance for loan losses and accrual for off-balance sheet credit risk from unfunded loan commitments was 1.54 percent.

At June 30, 2021, the allowance for loan losses was $312 million or 1.46 percent of outstanding loans and 183 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 $336 million or 1.57 percent of outstanding loans and 197 percent of nonaccruing loans.

Nonperforming assets totaled $349 million or 1.71 percent of outstanding loans and repossessed assets at September 30, 2021, down from $408 million or 1.90 percent at June 30, 2021. Nonperforming assets that are not guaranteed by U.S. government agencies totaled $162 million or 0.83 percent of outstanding loans and repossessed assets at September 30, 2021, compared to $228 million or 1.14 percent at June 30, 2021. The decrease in nonperforming assets was primarily related to a decrease in nonaccruing energy loans and sales of energy-related repossessed assets during the third quarter of 2021.

Nonaccruing loans were $142 million or 0.72 percent of outstanding loans, excluding PPP loans, at September 30, 2021. Nonaccruing commercial loans totaled $81 million or 0.66 percent of outstanding commercial loans. Nonaccruing commercial real estate loans totaled $21 million or 0.52 percent of outstanding commercial real estate loans. Nonaccruing loans to individuals totaled $40 million or 1.14 percent of outstanding loans to individuals.

Nonaccruing loans decreased $38 million compared to June 30, 2021, primarily due to a decrease in nonaccruing energy loans. New nonaccruing loans identified in the third quarter totaled $22 million, offset by $42 million in payments received and $10 million in charge-offs.

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 $333 million at September 30, 2021, down significantly from $384 million at June 30. Potential problem energy and services loans decreased compared to the prior quarter, partially offset by an increase in potential problem commercial real estate loans.

Net charge-offs were $7.8 million or 0.16 percent of average loans on an annualized basis for the third quarter of 2021, excluding PPP loans. Net charge-offs were 0.26 percent of average loans over the last four quarters. Net charge-offs were $15.4 million or 0.30 percent of average loans on an annualized basis for the second quarter of 2021, excluding PPP loans. Gross charge-offs were $9.6 million for the third quarter compared to $18.3 million for the previous quarter. Recoveries totaled $1.8 million for the third quarter of 2021 and $2.9 million for the second quarter of 2021.

Securities and Derivatives

The fair value of the available for sale securities portfolio totaled $13.3 billion at September 30, 2021, a $24 million increase compared to June 30, 2021. At September 30, 2021, the available for sale securities portfolio consisted primarily of $8.2 billion of residential mortgage-backed securities fully backed by U.S. government agencies and $4.7 billion of commercial mortgage-backed securities fully backed by U.S. government agencies. At September 30, 2021, the available for sale securities portfolio had a net unrealized gain of $221 million compared to $297 million at June 30, 2021.

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 decreased $9.4 million to $51 million at September 30, 2021.

The net economic benefit of the changes in the fair value of mortgage servicing rights and related economic hedges was $7.3 million during the third quarter of 2021, including a $12.9 million increase in the fair value of mortgage servicing rights, a $5.9 million decrease in the fair value of securities and derivative contracts held as an economic hedge, and $286 thousand of related net interest revenue.

Conference Call and Webcast

The company will hold a conference call at 9 a.m. Central time on Wednesday, October 20, 2021 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 # 13723814.

About BOK Financial Corporation

BOK Financial Corporation is a $47 billion regional financial services company headquartered in Tulsa, Oklahoma with $99 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's holdings include TransFund, Cavanal Hill Investment Management, Inc. 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, Wisconsin 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 September 30, 2021 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.

BALANCE SHEETS -- UNAUDITED
BOK FINANCIAL CORPORATION
(In thousands)

	Sept. 30, 2021			June 30, 2021
ASSETS
Cash and due from banks	$	729,285		$	678,998
Interest-bearing cash and cash equivalents	1,162,477			580,457
Trading securities	5,554,040			5,699,070
Investment securities, net of allowance	215,592			220,832
Available for sale securities	13,342,113			13,317,922
Fair value option securities	51,019			60,432
Restricted equity securities	77,542			134,885
Residential mortgage loans held for sale	176,813			200,842
Loans:
Commercial	12,175,140			12,472,907
Commercial real estate	4,116,892			4,246,992
Paycheck protection program	536,052			1,121,583
Loans to individuals	3,519,852			3,574,967
Total loans	20,347,936			21,416,449
Allowance for loan losses	(276,680		)	(311,890		)
Loans, net of allowance	20,071,256			21,104,559
Premises and equipment, net	558,126			556,400
Receivables	171,505			195,763
Goodwill	1,044,749			1,048,091
Intangible assets, net	96,186			105,694
Mortgage servicing rights	133,308			117,629
Real estate and other repossessed assets, net	28,770			57,337
Derivative contracts, net	1,901,136			1,701,443
Cash surrender value of bank-owned life insurance	403,369			401,163
Receivable on unsettled securities sales	215,755			70,954
Other assets	990,368			901,904
TOTAL ASSETS	$	46,923,409		$	47,154,375

LIABILITIES AND EQUITY
Deposits:
Demand	$	14,090,229		$	13,380,409
Interest-bearing transaction	21,753,110			21,278,719
Savings	900,497			875,456
Time	1,780,715			1,905,349
Total deposits	38,524,551			37,439,933
Funds purchased and repurchase agreements	843,273			730,183
Other borrowings	37,426			1,546,231
Subordinated debentures	131,220			276,043
Accrued interest, taxes and expense	220,266			199,014
Due on unsettled securities purchases	614,598			576,536
Derivative contracts, net	739,641			612,261
Other liabilities	415,986			419,623
TOTAL LIABILITIES	41,526,961			41,799,824
Shareholders' equity:
Capital, surplus and retained earnings	5,219,801			5,106,209
Accumulated other comprehensive gain	169,172			226,768
TOTAL SHAREHOLDERS' EQUITY	5,388,973			5,332,977
Non-controlling interests	7,475			21,574
TOTAL EQUITY	5,396,448			5,354,551
TOTAL LIABILITIES AND EQUITY	$	46,923,409		$	47,154,375

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

	Three Months Ended
	Sept. 30, 2021			June 30, 2021			Mar. 31, 2021			Dec. 31, 2020			Sept. 30, 2020
ASSETS
Interest-bearing cash and cash equivalents	$	682,788		$	659,312		$	711,047		$	643,926		$	553,070
Trading securities	7,617,236			7,430,217			6,963,617			6,888,189			1,834,160
Investment securities, net of allowance	218,117			221,401			237,313			251,863			258,965
Available for sale securities	13,446,095			13,243,542			13,433,767			12,949,702			12,580,850
Fair value option securities	56,307			64,864			104,662			122,329			387,784
Restricted equity securities	245,485			208,692			189,921			280,428			144,415
Residential mortgage loans held for sale	167,620			218,200			207,013			229,631			213,125
Loans:
Commercial	12,231,230			12,402,925			12,908,461			13,113,449			13,772,217
Commercial real estate	4,218,190			4,395,848			4,547,945			4,788,393			4,754,269
Paycheck protection program	792,728			1,668,047			1,741,534			1,928,665			2,092,933
Loans to individuals	3,606,460			3,700,269			3,559,067			3,617,011			3,491,044
Total loans	20,848,608			22,167,089			22,757,007			23,447,518			24,110,463
Allowance for loan losses	(306,125		)	(345,269		)	(382,734		)	(414,225		)	(441,831		)
Loans, net of allowance	20,542,483			21,821,820			22,374,273			23,033,293			23,668,632
Total earning assets	42,976,131			43,868,048			44,221,613			44,399,361			39,641,001
Cash and due from banks	766,688			763,393			760,691			742,432			723,826
Derivative contracts, net	1,501,736			1,022,137			873,712			553,779			581,839
Cash surrender value of bank-owned life insurance	401,926			401,760			399,830			397,354			394,680
Receivable on unsettled securities sales	632,539			716,700			735,482			1,094,198			4,563,301
Other assets	3,220,129			3,424,884			3,319,305			3,200,040			3,027,108
TOTAL ASSETS	$	49,499,149		$	50,196,922		$	50,310,633		$	50,387,164		$	48,931,755

LIABILITIES AND EQUITY
Deposits:
Demand	$	13,670,656		$	13,189,954		$	12,312,629		$	12,136,071		$	11,929,694
Interest-bearing transaction	21,435,736			21,491,145			21,433,406			20,718,390			19,752,106
Savings	888,011			872,618			789,656			737,360			707,121
Time	1,839,983			1,936,510			1,986,425			1,930,808			2,251,012
Total deposits	37,834,386			37,490,227			36,522,116			35,522,629			34,639,933

Funds purchased and repurchase agreements	1,448,800			1,790,490			2,830,378			2,153,254			2,782,150
Other borrowings	2,546,083			3,608,369			3,392,346			5,193,656			3,382,688
Subordinated debentures	214,654			276,034			276,015			275,998			275,980
Derivative contracts, net	434,334			366,202			428,488			399,476			458,390
Due on unsettled securities purchases	957,538			701,495			915,410			957,642			1,516,880
Other liabilities	619,913			634,460			671,715			656,147			712,674
TOTAL LIABILITIES	44,055,708			44,867,277			45,036,468			45,158,802			43,768,695
Total equity	5,443,441			5,329,645			5,274,165			5,228,362			5,163,060
TOTAL LIABILITIES AND EQUITY	$	49,499,149		$	50,196,922		$	50,310,633		$	50,387,164		$	48,931,755

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

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2021			2020			2021			2020

Interest revenue	$	293,463		$	294,659		$	887,595		$	949,980
Interest expense	13,236			22,909			46,639			138,766
Net interest revenue	280,227			271,750			840,956			811,214
Provision for credit losses	(23,000		)	—			(83,000		)	229,092
Net interest revenue after provision for credit losses	303,227			271,750			923,956			582,122
Other operating revenue:
Brokerage and trading revenue	47,930			69,526			98,120			182,327
Transaction card revenue	24,632			23,465			71,985			68,286
Fiduciary and asset management revenue	45,248			39,931			131,402			125,646
Deposit service charges and fees	27,429			24,286			77,499			72,462
Mortgage banking revenue	26,286			51,959			84,618			143,062
Other revenue	18,896			13,698			58,364			37,486
Total fees and commissions	190,421			222,865			521,988			629,269
Other gains (losses), net	31,091			2,044			57,661			(1,347		)
Gain (loss) on derivatives, net	(5,760		)	2,354			(14,590		)	42,659
Gain (loss) on fair value option securities, net	(120		)	(754		)	(3,657		)	53,180
Change in fair value of mortgage servicing rights	12,945			3,441			33,778			(85,800		)
Gain (loss) on available for sale securities, net	1,255			(12		)	3,152			5,571
Total other operating revenue	229,832			229,938			598,332			643,532
Other operating expense:
Personnel	175,863			179,860			520,908			512,276
Business promotion	4,939			2,633			9,837			10,783
Charitable contributions to BOKF Foundation	—			—			4,000			3,000
Professional fees and services	12,436			14,074			36,777			39,183
Net occupancy and equipment	28,395			28,111			81,690			84,847
Insurance	3,712			5,848			11,992			15,984
Data processing and communications	38,371			34,751			112,256			100,436
Printing, postage and supplies	3,558			3,482			11,283			11,256
Amortization of intangible assets	4,488			5,071			13,873			15,355
Mortgage banking costs	8,962			15,803			34,031			41,946
Other expense	10,553			7,411			41,566			26,571
Total other operating expense	291,277			297,044			878,213			861,637

Net income before taxes	241,782			204,644			644,075			364,017
Federal and state income taxes	54,061			50,552			144,939			83,655

Net income	187,721			154,092			499,136			280,362
Net income (loss) attributable to non-controlling interests	(601		)	58			(1,667		)	(444		)
Net income attributable to BOK Financial Corporation shareholders	$	188,322		$	154,034		$	500,803		$	280,806

Average shares outstanding:
Basic	68,359,125			69,877,866			68,768,044			69,958,944
Diluted	68,360,871			69,879,290			68,770,663			69,962,053

Net income per share:
Basic	$	2.74		$	2.19		$	7.23		$	3.99
Diluted	$	2.74		$	2.19		$	7.23		$	3.99

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

	Three Months Ended
	Sept. 30, 2021			June 30, 2021			Mar. 31, 2021			Dec. 31, 2020			Sept. 30, 2020
Capital:
Period-end shareholders' equity	$	5,388,973		$	5,332,977		$	5,239,462		$	5,266,266		$	5,218,787
Risk weighted assets	$	33,916,456		$	33,824,860		$	32,623,108		$	32,492,277		$	31,529,826
Risk-based capital ratios:
Common equity tier 1	12.26		%	11.95		%	12.14		%	11.95		%	12.07		%
Tier 1	12.29		%	12.01		%	12.21		%	11.95		%	12.07		%
Total capital	13.38		%	13.61		%	13.98		%	13.82		%	14.05		%
Leverage ratio	8.77		%	8.58		%	8.42		%	8.28		%	8.39		%
Tangible common equity ratio¹	9.28		%	9.09		%	8.82		%	9.02		%	9.02		%

Common stock:
Book value per share	$	78.56		$	77.20		$	75.33		$	75.62		$	74.23
Tangible book value per share	$	61.93		$	60.50		$	58.67		$	58.94		$	57.64
Market value per share:
High	$	92.97		$	93.00		$	98.95		$	73.07		$	62.86
Low	$	77.20		$	83.59		$	67.57		$	50.09		$	48.41
Cash dividends paid	$	35,725		$	35,925		$	36,038		$	36,219		$	35,799
Dividend payout ratio	18.97		%	21.59		%	24.67		%	23.48		%	23.24		%
Shares outstanding, net	68,596,764			69,078,458			69,557,873			69,637,600			70,305,833
Stock buy-back program:
Shares repurchased	478,141			492,994			260,000			665,100			—
Amount	$	40,644		$	43,797		$	20,071		$	42,450		$	—
Average price per share	$	85.00		$	88.84		$	77.20		$	63.82		$	—

Performance ratios (quarter annualized):
Return on average assets	1.51		%	1.33		%	1.18		%	1.22		%	1.25		%
Return on average equity	13.78		%	12.58		%	11.28		%	11.75		%	11.89		%
Net interest margin	2.66		%	2.60		%	2.62		%	2.72		%	2.81		%
Efficiency ratio	61.23		%	64.20		%	66.26		%	62.77		%	59.57		%

Reconciliation of non-GAAP measures:
¹ Tangible common equity ratio:
Total shareholders' equity	$	5,388,973		$	5,332,977		$	5,239,462		$	5,266,266		$	5,218,787
Less: Goodwill and intangible assets, net	1,140,935			1,153,785			1,158,676			1,161,527			1,166,615
Tangible common equity	$	4,248,038		$	4,179,192		$	4,080,786		$	4,104,739		$	4,052,172

Total assets	$	46,923,409		$	47,154,375		$	47,442,513		$	46,671,088		$	46,067,224
Less: Goodwill and intangible assets, net	1,140,935			1,153,785			1,158,676			1,161,527			1,166,615
Tangible assets	$	45,782,474		$	46,000,590		$	46,283,837		$	45,509,561		$	44,900,609

Tangible common equity ratio	9.28		%	9.09		%	8.82		%	9.02		%	9.02		%

	Three Months Ended
	Sept. 30, 2021				June 30, 2021				Mar. 31, 2021				Dec. 31, 2020				Sept. 30, 2020
Pre-provision net revenue:
Net income before taxes	$	241,782			$	215,603			$	186,690			$	199,847			$	204,644
Provision for expected credit losses	(23,000		)		(35,000		)		(25,000		)		(6,500		)		—
Net income (loss) attributable to non-controlling interests	(601		)		686				(1,752		)		485				58
Pre-provision net revenue	$	219,383			$	179,917			$	163,442			$	192,862			$	204,586

Other data:
Tax equivalent interest	$	2,217			$	2,320			$	2,301			$	2,414			$	2,457
Net unrealized gain on available for sale securities	$	221,487			$	297,267			$	290,217			$	440,814			$	480,563

Mortgage banking:
Mortgage production revenue	$	15,403			$	10,004			$	25,287			$	26,662			$	38,431

Mortgage loans funded for sale	$	652,336			$	754,893			$	843,053			$	998,435			$	1,032,472
Add: current period-end outstanding commitments	239,066				276,154				387,465				380,637				560,493
Less: prior period end outstanding commitments	276,154				387,465				380,637				560,493				546,304
Total mortgage production volume	$	615,248			$	643,582			$	849,881			$	818,579			$	1,046,661

Mortgage loan refinances to mortgage loans funded for sale	48			%	48			%	65			%	58			%	54			%
Realized margin on funded mortgage loans	2.48			%	2.75			%	3.10			%	3.78			%	3.52			%
Production revenue as a percentage of production volume	2.50			%	1.55			%	2.98			%	3.26			%	3.67			%

Mortgage servicing revenue	$	10,883			$	11,215			$	11,826			$	12,636			$	13,528
Average outstanding principal balance of mortgage loans serviced for others	14,899,306				15,065,173				15,723,231				16,518,208				17,434,215
Average mortgage servicing revenue rates	0.29			%	0.30			%	0.31			%	0.30			%	0.31			%

Gain (loss) on mortgage servicing rights, net of economic hedge:
Gain (loss) on mortgage hedge derivative contracts, net	$	(5,829	)		$	18,764			$	(27,705	)		$	(385	)		$	2,295
Gain (loss) on fair value option securities, net	(120		)		(1,627		)		(1,910		)		68				(754		)
Gain (loss) on economic hedge of mortgage servicing rights	(5,949		)		17,137				(29,615		)		(317		)		1,541
Gain (loss) on changes in fair value of mortgage servicing rights	12,945				(13,041		)		33,874				6,276				3,441
Gain on changes in fair value of mortgage servicing rights, net of economic hedges, included in other operating revenue	6,996				4,096				4,259				5,959				4,982
Net interest revenue on fair value option securities²	286				341				393				550				1,565
Total economic benefit of changes in the fair value of mortgage servicing rights, net of economic hedges	$	7,282			$	4,437			$	4,652			$	6,509			$	6,547

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

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

	Three Months Ended
	Sept. 30, 2021			June 30, 2021			Mar. 31, 2021			Dec. 31, 2020			Sept. 30, 2020

Interest revenue	$	293,463		$	295,893		$	298,239		$	319,020		$	294,659
Interest expense	13,236			15,584			17,819			21,790			22,909
Net interest revenue	280,227			280,309			280,420			297,230			271,750
Provision for credit losses	(23,000		)	(35,000		)	(25,000		)	(6,500		)	—
Net interest revenue after provision for credit losses	303,227			315,309			305,420			303,730			271,750
Other operating revenue:
Brokerage and trading revenue	47,930			29,408			20,782			39,506			69,526
Transaction card revenue	24,632			24,923			22,430			21,896			23,465
Fiduciary and asset management revenue	45,248			44,832			41,322			41,799			39,931
Deposit service charges and fees	27,429			25,861			24,209			24,343			24,286
Mortgage banking revenue	26,286			21,219			37,113			39,298			51,959
Other revenue	18,896			23,172			16,296			14,209			13,698
Total fees and commissions	190,421			169,415			162,152			181,051			222,865
Other gains, net	31,091			16,449			10,121			7,394			2,044
Gain (loss) on derivatives, net	(5,760		)	18,820			(27,650		)	(339		)	2,354
Gain (loss) on fair value option securities, net	(120		)	(1,627		)	(1,910		)	68			(754		)
Change in fair value of mortgage servicing rights	12,945			(13,041		)	33,874			6,276			3,441
Gain (loss) on available for sale securities, net	1,255			1,430			467			4,339			(12		)
Total other operating revenue	229,832			191,446			177,054			198,789			229,938
Other operating expense:
Personnel	175,863			172,035			173,010			176,198			179,860
Business promotion	4,939			2,744			2,154			3,728			2,633
Charitable contributions to BOKF Foundation	—			—			4,000			6,000			—
Professional fees and services	12,436			12,361			11,980			14,254			14,074
Net occupancy and equipment	28,395			26,633			26,662			27,875			28,111
Insurance	3,712			3,660			4,620			4,006			5,848
Data processing and communications	38,371			36,418			37,467			35,061			34,751
Printing, postage and supplies	3,558			4,285			3,440			3,805			3,482
Amortization of intangible assets	4,488			4,578			4,807			5,088			5,071
Mortgage banking costs	8,962			11,126			13,943			14,765			15,803
Other expense	10,553			17,312			13,701			11,892			7,411
Total other operating expense	291,277			291,152			295,784			302,672			297,044
Net income before taxes	241,782			215,603			186,690			199,847			204,644
Federal and state income taxes	54,061			48,496			42,382			45,138			50,552
Net income	187,721			167,107			144,308			154,709			154,092
Net income (loss) attributable to non-controlling interests	(601		)	686			(1,752		)	485			58
Net income attributable to BOK Financial Corporation shareholders	$	188,322		$	166,421		$	146,060		$	154,224		$	154,034

Average shares outstanding:
Basic	68,359,125			68,815,666			69,137,375			69,489,597			69,877,866
Diluted	68,360,871			68,817,442			69,141,710			69,493,050			69,879,290
Net income per share:
Basic	$	2.74		$	2.40		$	2.10		$	2.21		$	2.19
Diluted	$	2.74		$	2.40		$	2.10		$	2.21		$	2.19

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

	Sept. 30, 2021		June 30, 2021		Mar. 31, 2021		Dec. 31, 2020		Sept. 30, 2020
Commercial:
Healthcare	$	3,347,641	$	3,381,261	$	3,290,758	$	3,305,990	$	3,325,790
Services	3,323,422		3,389,756		3,421,948		3,508,583		3,545,825
Energy	2,814,059		3,011,331		3,202,488		3,469,194		3,717,101
General business	2,690,018		2,690,559		2,742,590		2,793,768		2,976,990
Total commercial	12,175,140		12,472,907		12,657,784		13,077,535		13,565,706

Commercial real estate:
Office	1,030,755		1,073,346		1,094,060		1,085,257		1,099,563
Industrial	890,316		824,577		789,437		810,510		792,389
Multifamily	875,586		964,824		1,227,915		1,328,045		1,387,461
Retail	766,402		784,445		787,648		796,223		786,211
Residential construction and land development	118,416		128,939		119,079		119,394		121,258
Other commercial real estate	435,417		470,861		485,208		559,109		506,818
Total commercial real estate	4,116,892		4,246,992		4,503,347		4,698,538		4,693,700

Paycheck protection program	536,052		1,121,583		1,848,550		1,682,310		2,097,325

Loans to individuals:
Residential mortgage	1,747,243		1,772,627		1,797,478		1,863,003		1,849,144
Residential mortgages guaranteed by U.S. government agencies	376,986		413,806		420,051		408,687		384,247
Personal	1,395,623		1,388,534		1,306,637		1,277,447		1,213,178
Total loans to individuals	3,519,852		3,574,967		3,524,166		3,549,137		3,446,569

Total	$	20,347,936	$	21,416,449	$	22,533,847	$	23,007,520	$	23,803,300

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

	Sept. 30, 2021		June 30, 2021		Mar. 31, 2021		Dec. 31, 2020		Sept. 30, 2020

Texas:
Commercial	$	5,815,562	$	5,690,901	$	5,748,345	$	5,926,534	$	6,135,471
Commercial real estate	1,383,871		1,403,751		1,511,714		1,519,217		1,523,226
Paycheck protection program	115,623		342,933		537,899		501,079		614,970
Loans to individuals	901,121		885,619		848,194		855,410		794,055
Total Texas	8,216,177		8,323,204		8,646,152		8,802,240		9,067,722

Oklahoma:
Commercial	2,590,887		2,840,560		2,975,477		3,144,782		3,332,244
Commercial real estate	552,184		552,673		597,840		597,733		608,448
Paycheck protection program	192,474		242,880		468,002		413,108		487,247
Loans to individuals	2,014,099		2,063,419		2,043,705		2,052,784		2,034,576
Total Oklahoma	5,349,644		5,699,532		6,085,024		6,208,407		6,462,515

Colorado:
Commercial	1,874,613		1,904,182		1,910,826		1,929,320		1,993,364
Commercial real estate	526,653		656,521		777,786		879,648		893,626
Paycheck protection program	140,470		299,712		436,540		377,111		494,910
Loans to individuals	249,298		262,796		264,759		264,295		257,832
Total Colorado	2,791,034		3,123,211		3,389,911		3,450,374		3,639,732

Arizona:
Commercial	1,194,801		1,239,270		1,207,089		1,219,072		1,218,769
Commercial real estate	734,174		705,497		667,766		726,111		702,291
Paycheck protection program	42,815		104,946		208,481		211,725		272,114
Loans to individuals	182,506		178,481		179,031		177,948		166,203
Total Arizona	2,154,296		2,228,194		2,262,367		2,334,856		2,359,377

Kansas/Missouri:
Commercial	336,414		388,291		421,974		455,914		493,606
Commercial real estate	408,001		406,055		395,590		366,821		352,663
Paycheck protection program	6,920		41,954		60,741		56,011		80,230
Loans to individuals	100,920		103,092		104,954		105,995		96,598
Total Kansas/Missouri	852,255		939,392		983,259		984,741		1,023,097

New Mexico:
Commercial	287,695		304,804		307,395		303,833		288,374
Commercial real estate	437,302		437,996		448,298		473,204		473,697
Paycheck protection program	31,444		86,716		124,059		109,881		133,244
Loans to individuals	66,651		68,177		70,491		75,665		79,890
Total New Mexico	823,092		897,693		950,243		962,583		975,205

Arkansas:
Commercial	75,168		104,899		86,678		98,080		103,878
Commercial real estate	74,707		84,499		104,353		135,804		139,749
Paycheck protection program	6,306		2,442		12,828		13,395		14,610
Loans to individuals	5,257		13,383		13,032		17,040		17,415
Total Arkansas	161,438		205,223		216,891		264,319		275,652

TOTAL BOK FINANCIAL	$	20,347,936	$	21,416,449	$	22,533,847	$	23,007,520	$	23,803,300

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

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

	Sept. 30, 2021		June 30, 2021		Mar. 31, 2021		Dec. 31, 2020		Sept. 30, 2020
Oklahoma:
Demand	$	5,080,162	$	4,985,542	$	4,823,436	$	4,329,205	$	4,493,978
Interest-bearing:
Transaction	11,692,679		12,065,844		12,828,070		12,603,658		12,586,449
Savings	510,906		500,344		487,862		420,996		401,062
Time	1,039,866		1,139,980		1,197,517		1,134,453		1,081,176
Total interest-bearing	13,243,451		13,706,168		14,513,449		14,159,107		14,068,687
Total Oklahoma	18,323,613		18,691,710		19,336,885		18,488,312		18,562,665

Texas:
Demand	3,987,503		3,752,790		3,592,969		3,449,882		3,152,106
Interest-bearing:
Transaction	4,985,465		4,335,113		4,257,234		3,800,427		3,482,555
Savings	165,043		160,805		154,406		139,173		136,787
Time	337,389		346,577		368,086		383,062		438,337
Total interest-bearing	5,487,897		4,842,495		4,779,726		4,322,662		4,057,679
Total Texas	9,475,400		8,595,285		8,372,695		7,772,544		7,209,785

Colorado:
Demand	2,158,596		1,991,343		2,115,354		2,168,404		2,057,603
Interest-bearing:
Transaction	2,337,354		2,159,819		2,100,135		2,170,485		1,861,763
Savings	79,873		73,990		73,446		69,384		68,230
Time	184,002		193,787		204,973		208,778		226,780
Total interest-bearing	2,601,229		2,427,596		2,378,554		2,448,647		2,156,773
Total Colorado	4,759,825		4,418,939		4,493,908		4,617,051		4,214,376

New Mexico:
Demand	1,222,895		1,197,412		1,131,713		941,074		964,908
Interest-bearing:
Transaction	837,630		723,757		736,923		733,007		713,418
Savings	107,615		105,837		103,591		91,646		85,463
Time	168,879		174,665		181,863		186,307		200,525
Total interest-bearing	1,114,124		1,004,259		1,022,377		1,010,960		999,406
Total New Mexico	2,337,019		2,201,671		2,154,090		1,952,034		1,964,314

Arizona:
Demand	1,110,884		943,511		915,439		905,201		928,671
Interest-bearing:
Transaction	784,614		820,901		835,795		768,220		771,319
Savings	16,468		13,496		13,235		12,174		11,498
Time	30,862		30,012		30,997		32,721		36,929
Total interest-bearing	831,944		864,409		880,027		813,115		819,746
Total Arizona	1,942,828		1,807,920		1,795,466		1,718,316		1,748,417

	Sept. 30, 2021		June 30, 2021		Mar. 31, 2021		Dec. 31, 2020		Sept. 30, 2020
Kansas/Missouri:
Demand	488,595		463,339		478,370		426,738		405,360
Interest-bearing:
Transaction	965,757		978,160		991,510		960,237		616,797
Savings	17,303		17,539		18,686		16,286		15,520
Time	13,040		13,509		13,898		14,610		16,430
Total interest-bearing	996,100		1,009,208		1,024,094		991,133		648,747
Total Kansas/Missouri	1,484,695		1,472,547		1,502,464		1,417,871		1,054,107

Arkansas:
Demand	41,594		46,472		45,889		45,834		44,712
Interest-bearing:
Transaction	149,611		195,125		141,207		122,388		164,439
Savings	3,289		3,445		3,000		2,333		2,389
Time	6,677		6,819		7,022		7,197		7,796
Total interest-bearing	159,577		205,389		151,229		131,918		174,624
Total Arkansas	201,171		251,861		197,118		177,752		219,336

TOTAL BOK FINANCIAL	$	38,524,551	$	37,439,933	$	37,852,626	$	36,143,880	$	34,973,000

NET INTEREST MARGIN TREND -- UNAUDITED
BOK FINANCIAL CORPORATION

	Three Months Ended
	Sept. 30, 2021		June 30, 2021		Mar. 31, 2021		Dec. 31, 2020		Sept. 30, 2020

TAX-EQUIVALENT ASSETS YIELDS
Interest-bearing cash and cash equivalents	0.14	%	0.10	%	0.10	%	0.10	%	0.12	%
Trading securities	2.04	%	1.95	%	2.06	%	2.02	%	1.92	%
Investment securities, net of allowance	5.02	%	5.01	%	4.88	%	4.88	%	4.85	%
Available for sale securities	1.80	%	1.85	%	1.84	%	1.98	%	2.11	%
Fair value option securities	2.62	%	2.60	%	1.95	%	2.27	%	1.92	%
Restricted equity securities	2.55	%	3.36	%	2.86	%	3.25	%	2.53	%
Residential mortgage loans held for sale	3.06	%	2.91	%	2.71	%	2.75	%	3.01	%
Loans	3.68	%	3.54	%	3.55	%	3.68	%	3.60	%
Allowance for loan losses
Loans, net of allowance	3.73	%	3.60	%	3.62	%	3.75	%	3.67	%
Total tax-equivalent yield on earning assets	2.78	%	2.75	%	2.78	%	2.92	%	3.04	%

COST OF INTEREST-BEARING LIABILITIES
Interest-bearing deposits:
Interest-bearing transaction	0.09	%	0.10	%	0.12	%	0.14	%	0.17	%
Savings	0.04	%	0.04	%	0.04	%	0.05	%	0.05	%
Time	0.55	%	0.58	%	0.70	%	0.89	%	1.13	%
Total interest-bearing deposits	0.13	%	0.14	%	0.17	%	0.19	%	0.26	%
Funds purchased and repurchase agreements	0.20	%	0.16	%	0.19	%	0.28	%	0.17	%
Other borrowings	0.37	%	0.34	%	0.39	%	0.42	%	0.43	%
Subordinated debt	4.63	%	4.87	%	4.92	%	4.87	%	4.89	%
Total cost of interest-bearing liabilities	0.19	%	0.21	%	0.24	%	0.28	%	0.31	%
Tax-equivalent net interest revenue spread	2.59	%	2.54	%	2.54	%	2.64	%	2.73	%
Effect of noninterest-bearing funding sources and other	0.07	%	0.06	%	0.08	%	0.08	%	0.08	%
Tax-equivalent net interest margin	2.66	%	2.60	%	2.62	%	2.72	%	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
	Sept. 30, 2021			June 30, 2021			Mar. 31, 2021			Dec. 31, 2020			Sept. 30, 2020
Nonperforming assets:
Nonaccruing loans:
Commercial:
Energy	$	45,500		$	70,341		$	101,800		$	125,059		$	126,816
Services	25,714			29,913			28,033			25,598			25,817
Healthcare	509			527			3,187			3,645			3,645
General business	8,951			11,823			14,053			12,857			13,675
Total commercial	80,674			112,604			147,073			167,159			169,953

Commercial real estate	21,223			26,123			27,243			27,246			12,952

Loans to individuals:
Permanent mortgage	30,674			31,473			32,884			32,228			31,599
Permanent mortgage guaranteed by U.S. government agencies	9,188			9,207			8,564			7,741			6,397
Personal	188			229			255			319			252
Total loans to individuals	40,050			40,909			41,703			40,288			38,248

Total nonaccruing loans	$	141,947		$	179,636		$	216,019		$	234,693		$	221,153
Accruing renegotiated loans guaranteed by U.S. government agencies	178,554			171,324			154,591			151,775			142,770
Real estate and other repossessed assets	28,770			57,337			70,911			90,526			52,847
Total nonperforming assets	$	349,271		$	408,297		$	441,521		$	476,994		$	416,770
Total nonperforming assets excluding those guaranteed by U.S. government agencies	$	161,529		$	227,766		$	278,366		$	317,478		$	267,603

Accruing loans 90 days past due¹	$	223		$	252		$	395		$	10,369		$	7,684

Gross charge-offs	$	9,584		$	18,304		$	16,905		$	18,251		$	26,661
Recoveries	(1,769		)	(2,856		)	(2,437		)	(1,592		)	(4,232		)
Net charge-offs	$	7,815		$	15,448		$	14,468		$	16,659		$	22,429

Provision for loan losses	$	(27,395	)	$	(25,064	)	$	(21,770	)	$	(14,478	)	$	6,609
Provision for credit losses from off-balance sheet unfunded loan commitments	4,952			(8,590		)	(4,044		)	8,952			(4,950		)
Provision for expected credit losses from mortgage banking activities	(534		)	(1,222		)	885			(923		)	(770		)
Provision for credit losses related to held-to maturity (investment) securities portfolio	(23		)	(124		)	(71		)	(51		)	(889		)
Total provision for credit losses	$	(23,000	)	$	(35,000	)	$	(25,000	)	$	(6,500	)	$	—

	Three Months Ended
	Sept. 30, 2021		June 30, 2021		Mar. 31, 2021		Dec. 31, 2020		Sept. 30, 2020
Allowance for loan losses to period end loans	1.36	%	1.46	%	1.56	%	1.69	%	1.76	%
Allowance for loan losses to period end loans excluding PPP loans²	1.40	%	1.54	%	1.70	%	1.82	%	1.93	%
Combined allowance for loan losses and accrual for off-balance sheet credit risk from unfunded loan commitments to period end loans	1.50	%	1.57	%	1.71	%	1.85	%	1.88	%
Combined allowance for loan losses and accrual for off-balance sheet credit risk from unfunded loan commitments to period end loans excluding PPP loans²	1.54	%	1.66	%	1.86	%	2.00	%	2.06	%
Nonperforming assets to period end loans and repossessed assets	1.71	%	1.90	%	1.95	%	2.07	%	1.75	%
Net charge-offs (annualized) to average loans	0.15	%	0.28	%	0.25	%	0.28	%	0.37	%
Net charge-offs (annualized) to average loans excluding PPP loans²	0.16	%	0.30	%	0.28	%	0.31	%	0.41	%
Allowance for loan losses to nonaccruing loans¹	208.41	%	183.00	%	169.87	%	171.24	%	195.47	%
Combined allowance for loan losses and accrual for off-balance sheet credit risk from unfunded loan commitments to nonaccruing loans¹	230.43	%	197.25	%	185.72	%	187.51	%	208.49	%

¹ Excludes residential mortgage loans guaranteed by agencies of the U.S. government.
² Metric meaningful due to the unique characteristics and short-term nature of the PPP loans.

SEGMENTS -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands, except ratios)

	Three Months Ended						3Q21 vs 2Q21						3Q21 vs 3Q20
	Sept. 30, 2021		June 30, 2021		Sept. 30, 2020		$ change			% change			$ change			% change
Commercial Banking
Net interest revenue	$	134,104	$	130,901	$	149,946	$	3,203		2.4		%	$	(15,842	)	(10.6	)	%
Fees and commissions revenue	56,452		63,368		50,085		(6,916		)	(10.9	)	%	6,367			12.7		%
Combined net interest and fee revenue	190,556		194,269		200,031		(3,713		)	(1.9	)	%	(9,475		)	(4.7	)	%
Other operating expense	68,301		71,351		66,846		(3,050		)	(4.3	)	%	1,455			2.2		%
Corporate expense allocations	11,769		12,512		5,172		(743		)	(5.9	)	%	6,597			127.6		%
Net income	102,694		72,632		75,097		30,062			41.4		%	27,597			36.7		%

Average assets	28,474,182		28,160,594		28,000,183		313,588			1.1		%	473,999			1.7		%
Average loans	16,588,875		16,981,888		18,677,401		(393,013		)	(2.3	)	%	(2,088,526		)	(11.2	)	%
Average deposits	17,881,673		17,049,772		15,375,450		831,901			4.9		%	2,506,223			16.3		%

Consumer Banking
Net interest revenue	$	27,222	$	24,945	$	33,130	$	2,277		9.1		%	$	(5,908	)	(17.8	)	%
Fees and commissions revenue	44,405		37,714		67,974		6,691			17.7		%	(23,569		)	(34.7	)	%
Combined net interest and fee revenue	71,627		62,659		101,104		8,968			14.3		%	(29,477		)	(29.2	)	%
Other operating expense	49,483		52,453		59,155		(2,970		)	(5.7	)	%	(9,672		)	(16.4	)	%
Corporate expense allocations	11,516		11,599		10,691		(83		)	(0.7	)	%	825			7.7		%
Net income	12,432		1,698		26,855		10,734			632.2		%	(14,423		)	(53.7	)	%

Average assets	10,083,593		10,087,488		9,898,112		(3,895		)	—		%	185,481			1.9		%
Average loans	1,763,705		1,786,242		1,825,865		(22,537		)	(1.3	)	%	(62,160		)	(3.4	)	%
Average deposits	8,516,942		8,469,043		7,940,973		47,899			0.6		%	575,969			7.3		%

Wealth Management
Net interest revenue	$	55,196	$	52,293	$	22,985	$	2,903		5.6		%	$	32,211		140.1		%
Fees and commissions revenue	97,966		78,841		111,655		19,125			24.3		%	(13,689		)	(12.3	)	%
Combined net interest and fee revenue	153,162		131,134		134,640		22,028			16.8		%	18,522			13.8		%
Other operating expense	87,417		79,429		82,868		7,988			10.1		%	4,549			5.5		%
Corporate expense allocations	10,101		10,343		9,397		(242		)	(2.3	)	%	704			7.5		%
Net income	41,406		31,061		31,212		10,345			33.3		%	10,194			32.7		%

Average assets	19,109,700		19,201,041		16,204,510		(91,341		)	(0.5	)	%	2,905,190			17.9		%
Average loans	1,971,380		1,968,513		1,777,008		2,867			0.1		%	194,372			10.9		%
Average deposits	9,120,446		9,695,319		9,090,116		(574,873		)	(5.9	)	%	30,330			0.3		%
Fiduciary assets	60,497,576		58,654,788		48,887,513		1,842,788			3.1		%	11,610,063			23.7		%
Assets under management or administration	98,842,789		96,632,748		82,419,932		2,210,041			2.3		%	16,422,857			19.9		%

Contact:

Sue Hermann
Senior Vice President, Corporate Communications, BOK Financial
303-312-3488

BOK Financial Corporation Reports Quarterly Earnings of $188 million or $2.74 Per Share in the Third Quarter

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