BOKF

BOK FINANCIAL CORP

Financial Services | Mid Cap

$2.13

EPS Forecast

$523.9

Revenue Forecast

Announcing earnings for the quarter ending 2024-12-31 soon
EX-99.1 2 a20220331bokfex99.htm EX-99.1 Document


Exhibit 99.1(a)
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                                                    NASD: BOKF
BOK Financial Corporation Reports Quarterly Earnings of $62 million or $0.91 Per Share in the First Quarter
CEO Commentary
Stacy Kymes, president and chief executive officer, stated, “BOK Financial has an enviable mix of business segments that are core to our strategy focused on long-term, sustainable success. Over a long period of time the company has benefited from the diversity of these segments. The overall results this quarter did not meet our expectations as the markets experienced extraordinary interest rate volatility. The markets had to digest high levels of inflation, changing sentiment around the magnitude of interest rate hikes, and the first meaningful geopolitical conflict in Europe since WWII. Several of our market segments experienced impacts as the markets appeared to reset. As we move forward, we believe we are well positioned for this new environment. We have strong momentum growing our loan portfolio with both solid actual results and strong loan pipelines. We have been intentional about positioning our balance sheet to benefit from rising interest rates and should the Federal Reserve move to hike more aggressively, we will see expanding margins and revenue. Credit quality has long been a differentiator for BOK Financial and we are well-positioned should the credit markets begin to show weakness, though there is no sign of that today."
First Quarter 2022 Financial Highlights
•Net income was $62.5 million or $0.91 per diluted share for the first quarter of 2022 and $117.3 million or $1.71 per diluted share for the fourth quarter of 2021. Interest rate volatility driven by expectations of future Federal Reserve actions to address rising inflation as well as the deepening conflict in Ukraine combined to significantly decrease our trading revenue, mortgage loan production volumes, and the net fair value of our mortgage servicing rights valuation.
•Net interest revenue totaled $268.4 million, a decrease of $8.7 million. Net interest margin was 2.44 percent compared to 2.52 percent in the fourth quarter of 2021.
•Fees and commissions revenue decreased $48.7 million to $97.6 million. Brokerage and trading revenue decreased $41.9 million while mortgage banking revenue decreased $4.6 million.
•The net cost of the changes in fair value of mortgage servicing rights and related economic hedges was $8.4 million for the first quarter of 2022 compared to a net benefit of $4.7 million for the fourth quarter of 2021.
•Operating expense decreased $21.9 million to $277.6 million. Personnel expense decreased $15.2 million, primarily due to lower incentive compensation expense, partially offset by a seasonal increase in employee benefits expense. Non-personnel expense decreased $6.6 million. The fourth quarter of 2021 included a $5.0 million charitable donation to the BOKF Foundation that did not recur in the first quarter of 2022.
•Period-end loans increased $469 million to $20.7 billion at March 31, 2022. Commercial loans increased $377 million and commercial real estate loans increased $270 million while period-end Paycheck Protection Program ("PPP") loans decreased $139 million to $137 million. Average loans were $20.5 billion, a $221 million increase compared to the fourth quarter of 2021.
•No provision for expected credit losses was necessary for the first quarter of 2022. A $17.0 million negative provision for expected credit losses was recorded in the prior quarter. The impact of continued strength in commodity prices and improved credit quality metrics was offset by higher required provision due to loan growth and changes in our economic outlook. The combined allowance for credit losses totaled $283 million or 1.37 percent of outstanding loans at March 31, 2022. The combined allowance for credit losses was $289 million or 1.43 percent of outstanding loans at December 31, 2021.
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•Average deposits increased $560 million to $40.4 billion while period-end deposits decreased $1.8 billion to $39.4 billion due to expected seasonal activity from 2021 year-end balances. Average interest-bearing deposits increased $317 million and average demand deposits grew $243 million.
•The company's common equity Tier 1 capital ratio was 11.30 percent at March 31, 2022. In addition, the company's Tier 1 capital ratio was 11.31 percent, total capital ratio was 12.25 percent, and leverage ratio was 8.47 percent at March 31, 2022. At December 31, 2021, the company's common equity Tier 1 capital ratio was 12.24 percent, Tier 1 capital ratio was 12.25 percent, total capital ratio was 13.29 percent, and leverage ratio was 8.55 percent.
•The company repurchased 475,877 shares of common stock at an average price of $101.02 a share in the first quarter of 2022.
First Quarter 2022 Segment Highlights
•Commercial Banking contributed $82.3 million to net income in the first quarter of 2022, a decrease of $1.2 million compared to the fourth quarter of 2021. Combined net interest revenue and fee revenue decreased $4.2 million, primarily due to two fewer days in the quarter and a reduction in loan fees. Net loans charged-off increased $7.3 million. Personnel expense decreased $8.3 million, primarily due to reduced incentive compensation costs. Corporate expense allocations increased $3.3 million, largely related to project resources. Average Commercial Banking loans increased $362 million or 2 percent to $16.7 billion. Average Commercial Banking deposits were consistent with prior quarter.
•Consumer Banking had a net loss of $7.3 million in the first quarter of 2022 compared to prior quarter net income of $6.8 million. Combined net interest revenue and fee revenue decreased $8.1 million. Net interest revenue decreased $3.2 million, mainly due to a 14 basis point reduction in the spread on deposits sold to our Funds Management unit. Fees and commissions revenue decreased $5.0 million due to lower mortgage production volumes combined with narrowing margins. The net cost of the changes in fair value of mortgage servicing rights and related economic hedges was $8.4 million for the first quarter of 2022 compared to a net benefit of $4.7 million for the fourth quarter of 2021. Interest rate volatility affected the effectiveness of our mortgage servicing rights hedging strategy. Operating expense decreased $3.2 million, primarily due to decreased professional fees and services expense. Average Consumer Banking loans decreased $32.9 million or 2 percent to $1.7 billion. Average Consumer Banking deposits increased $64.2 million or 1 percent to $8.7 billion in the first quarter of 2022.

•Wealth Management had a net loss of $4.4 million in the first quarter of 2022 compared to net income of $21.7 million in the fourth quarter of 2021. 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 $80.8 million, a decrease of $33.7 million compared to the fourth quarter of 2021. Total revenue from trading activities decreased $43.3 million primarily due to reduced demand for U.S. government agency residential mortgage-backed securities. Investment banking and insurance brokerage revenue increased over the previous quarter. Fiduciary and asset management revenue and retail brokerage revenue were relatively consistent with the prior quarter. Decreases in revenue related to assets under management or administration were offset by improved money market fund fees. Operating expense was consistent with the prior quarter. Average Wealth Management loans increased $53.5 million or 3 percent to $2.1 billion. Average Wealth Management deposits increased $425 million or 5 percent to $9.6 billion. Deposit balances began to decline in the second half of March 2022. Assets under management were $101.1 billion, a decrease of $3.8 billion compared to the prior quarter.
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Net Interest Revenue
Net interest revenue was $268.4 million for the first quarter of 2022 compared to $277.1 million for the fourth quarter of 2021. Net interest margin was 2.44 percent compared to 2.52 percent in the prior quarter. PPP loan fees of $3.9 million were recognized in the first quarter of 2022 compared to $7.7 million in the previous quarter. PPP loan fees remaining to be recognized were $3.5 million as of March 31, 2022.
Average earning assets decreased $744 million compared to the fourth quarter of 2021. Average trading securities decreased $723 million. Average loan balances increased $221 million, largely due to growth in commercial and commercial real estate loans, partially offset by a decrease in PPP loans. Average interest bearing cash and cash equivalents were reduced by $158 million. Available for sale securities decreased $155 million. Funds purchased and repurchase agreements decreased $889 million, while other borrowings increased $268 million.
The yield on average earning assets was 2.58 percent, an 8 basis point decrease from the prior quarter. The loan portfolio yield decreased 13 basis points to 3.57 percent. Yields related to loan fees decreased 17 points from the prior quarter while core loan yields increased 4 basis points. The yield on trading securities was down 18 basis points to 1.71 percent, largely due to a decrease in the weighted average coupon rate. The yield on the available for sale securities portfolio increased 5 basis points to 1.77 percent.
Funding costs were 0.21 percent, consistent with the prior quarter. The cost of interest-bearing deposits was unchanged at 0.12 percent. The cost of funds purchased and repurchase agreements increased 22 basis points to 0.95 percent while the cost of other borrowings decreased 11 basis points to 0.38 percent. The benefit to net interest margin from assets funded by non-interest liabilities was 7 basis points for the first quarter of 2022, consistent with the prior quarter.
Operating Revenue
Fees and commissions revenue totaled $97.6 million for the first quarter of 2022, a $48.7 million decrease compared to the fourth quarter of 2021.
Brokerage and trading revenue decreased $41.9 million to a net loss of $27.1 million. Beginning in the second quarter of 2021, to meet customer demand in response to expected tightening by the Federal Reserve and increasing rates, we increased the trading volume of short duration, low coupon U.S. government agency residential mortgage-backed securities. These actions led to record trading revenues in the third quarter of 2021. As inflation pressure increased in the first quarter of 2022 and the conflict in Ukraine intensified, fixed income markets were disrupted reducing the demand for these securities. As of March 31, 2022, we have reduced our exposure to these securities by approximately 70 percent compared to December 31, 2021. Customer hedging revenue increased $1.8 million, primarily related to interest rate contracts, partially offset by a decline in energy contracts. Investment banking revenue decreased $3.9 million, largely due to the timing of syndication activity.
Mortgage banking revenue decreased $4.6 million compared to the prior quarter due to lower loan production volume combined with narrowing margins. Interest rate volatility and continued inventory shortages have resulted in fewer refinance opportunities and heightened competitive pricing pressure. Mortgage loan production volume decreased $93 million to $408 million. Production revenue as a percentage of production volume, which includes unrealized gains and losses on our mortgage commitment pipeline and related hedges, decreased 76 basis points to 1.24 percent.
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Other gains and losses, net decreased $7.7 million compared to the prior quarter, primarily related to the change in fair value of the rabbi trust investments, which is offset by a decrease in related deferred compensation expense.
Operating Expense
Total operating expense was $277.6 million for the first quarter of 2022, a decrease of $21.9 million compared to the fourth quarter of 2021.
Personnel expense decreased $15.2 million. Cash-based incentive compensation expense decreased $11.2 million from elevated levels in the fourth quarter of 2021. Deferred compensation expense, which is largely offset by a decrease in the value of related rabbi trust investments, decreased $4.2 million. Share-based incentive compensation expense decreased $3.8 million resulting from changes in vesting assumptions. Employee benefits expense increased $3.2 million due to a seasonal increase in payroll taxes and retirement plan costs, partially offset by a decrease in employee healthcare costs.
Non-personnel expense decreased $6.6 million compared to the fourth quarter of 2021. The fourth quarter of 2021 included a $5.0 million charitable donation to the BOKF Foundation that did not recur in the first quarter of 2022. Decreases in professional fees and services expense and other expense were partially offset by an increase in net occupancy and equipment expense.
Loans, Deposits and Capital
Loans
Outstanding loans were $20.7 billion at March 31, 2022, a $469 million increase compared to December 31, 2021 due to growth in both commercial and commercial real estate loans.
Outstanding commercial loan balances increased $377 million compared to December 31, 2021, led by growth in energy and general business loans. Although the primary source of repayment of our commercial loan portfolio is the ongoing 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 increased $191 million to $3.2 billion or 15 percent of total loans. 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 72 percent of committed production loans are secured by properties primarily producing oil. The remaining 28 percent is secured by properties primarily producing natural gas. Unfunded energy loan commitments were $3.0 billion at March 31, 2022, an increase of $23 million over December 31, 2021.
General business loans increased $175 million to $2.9 billion or 14 percent of total loans. General business loans include $1.5 billion of wholesale/retail loans and $1.4 billion of loans from other commercial industries.
Healthcare sector loan balances increased $27 million compared to the prior quarter, totaling $3.4 billion or 17 percent of total loans. Our healthcare sector loans primarily consist of $2.7 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, which serves to help diversify risks specific to a single facility.
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Services sector loan balances decreased $16 million to $3.4 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.
Commercial real estate loan balances increased $270 million compared to December 31, 2021 and represent 20 percent of total loans at March 31, 2022. Loans secured by industrial facilities increased $146 million to $912 million. Multifamily residential loans increased $81 million to $867 million at March 31, 2022. Loans secured by office facilities increased $57 million to $1.1 billion.
PPP loan balances decreased $139 million to $137 million or less than 1 percent of total loans. PPP loan balances have decreased $2.0 billion since their peak in the third quarter of 2020.
Loans to individuals decreased $39 million and represent 17 percent of total loans at March 31, 2022. Personal loans decreased $8.4 million while residential mortgage loans guaranteed by U.S. government agencies decreased $32 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. The balance of these loans peaked in the second quarter of 2021 at $421 million and since have been reduced by a total of $98 million.
Deposits
Period-end deposits totaled $39.4 billion at March 31, 2022, a $1.8 billion decrease compared to December 31, 2021 due to expected seasonal activity. Interest-bearing transaction account balances decreased by $1.6 billion. Period-end Commercial Banking deposits decreased $909 million and Wealth Management deposits reduced $1.2 billion while Consumer Banking deposits grew $208 million. Average deposits were $40.4 billion at March 31, 2022, a $560 million increase compared to December 31, 2021. Interest-bearing transaction account balances increased $437 million and demand deposit account balances increased $243 million.
Capital
The company's common equity Tier 1 capital ratio was 11.30 percent at March 31, 2022. In addition, the company's Tier 1 capital ratio was 11.31 percent, total capital ratio was 12.25 percent, and leverage ratio was 8.47 percent at March 31, 2022. 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. This election added 11 basis points to the company's common equity tier 1 capital ratio at March 31. At December 31, 2021, the company's common equity Tier 1 capital ratio was 12.24 percent, Tier 1 capital ratio was 12.25 percent, total capital ratio was 13.29 percent, and leverage ratio was 8.55 percent.
The company's tangible common equity ratio, a non-GAAP measure, was 8.13 percent at March 31, 2022 and 8.61 percent at December 31, 2021. This decrease is primarily due to unrealized losses related to available for sale securities. 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.
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The company repurchased 475,877 shares of common stock at an average price of $101.02 a share in the first quarter of 2022. 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 projected 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.
No provision for credit losses was necessary for the first quarter of 2022. Changes in our reasonable and supportable forecasts of macroeconomic variables resulted in a $7.3 million decrease in the allowance for credit losses related to lending activities. Continued strength in commodity prices was partially offset by changes in our economic outlook. Changes in loan portfolio characteristics, primarily related to growth in loan balances resulted in a $6.6 million increase in the allowance for credit losses related to lending activities. Continued improvements in credit quality metrics were offset by net charge-offs and changes in specific impairment and payment profile characteristics.
Our base case reasonable and supportable forecast assumes inflation peaks in the second quarter of 2022 and begins to normalize thereafter. We expect the Russian-Ukraine conflict remains isolated and conditions improve by mid-year 2022. We expect a 2.2 percent increase in GDP over the next twelve months as 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 supports consumer spending and GDP growth consistent with pre-pandemic levels. Our forecasted civilian unemployment rate is 3.9 percent for the second quarter of 2022, improving to 3.8 percent by the first quarter of 2023. Our base case also assumes the Federal Reserve begins balance sheet reduction in mid-year 2022 and increases federal funds rates at each meeting through March 2023, which results in a target range of 2.75 percent to 3.00 percent. WTI oil prices are projected to generally follow the NYMEX forward curve that existed at the end of March 2022, averaging $94.98 per barrel over the next twelve months.
The probability weighting of our base case reasonable and supportable forecast decreased to 60 percent in the first quarter of 2022 compared to 65 percent in the fourth quarter of 2021 as the level of uncertainty in economic forecasts increased. Our downside case, probability weighted at 30 percent, assumes the Russia-Ukraine conflict persists through 2022, but does remain isolated. Additional surges in commodity prices and exacerbated supply chain dislocations create higher levels of inflation forcing the Federal Reserve to adopt a more aggressive monetary policy to combat the inflationary environment. This results in a federal funds target range of 4.00 percent to 4.25 percent. This pushes the United States into a recession with a contraction in economic activity and a sharp increase in the unemployment rate. Real GDP is expected to contract 1.3 percent over the next four quarters in this scenario. WTI oil prices are projected to average $109.67 per barrel over the next twelve months in this scenario.
At March 31, 2022, the allowance for loan losses totaled $246 million or 1.19 percent of outstanding loans and 230 percent of nonaccruing loans 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 $283 million or 1.37 percent of outstanding loans and 264 percent of nonaccruing loans at March 31, 2022.
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At December 31, 2021, the allowance for loan losses was $256 million or 1.27 percent of outstanding loans and 213 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 $289 million or 1.43 percent of outstanding loans and 241 percent of nonaccruing loans.
Nonperforming assets totaled $353 million or 1.70 percent of outstanding loans and repossessed assets at March 31, 2022, compared to $369 million or 1.83 percent at December 31, 2021. Nonperforming assets that are not guaranteed by U.S. government agencies totaled $132 million or 0.65 percent of outstanding loans and repossessed assets at March 31, 2022, compared to $145 million or 0.74 percent at December 31, 2021.
Nonaccruing loans were $124 million or 0.60 percent of outstanding loans at March 31, 2022. Nonaccruing commercial loans totaled $60 million or 0.47 percent of outstanding commercial loans. Nonaccruing commercial real estate loans totaled $16 million or 0.39 percent of outstanding commercial real estate loans. Nonaccruing loans to individuals totaled $48 million or 1.35 percent of outstanding loans to individuals.
Nonaccruing loans decreased $9.8 million compared to December 31, 2021 primarily related to nonaccruing general business and energy loans. New nonaccruing loans identified in the first quarter totaled $12 million, offset by $14 million in payments received and $7.8 million in gross 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 $169 million at March 31, 2022, down from $222 million at December 31. Potential problem energy loans decreased $37 million. Potential problem commercial real estate loans decreased $8.8 million and potential problem services loans decreased $6.1 million.
Net charge-offs were $6.0 million or 0.12 percent of average loans on an annualized basis for the first quarter of 2022. Net charge-offs were 0.14 percent of average loans over the last four quarters. Net recoveries were $714 thousand or (0.01) percent of average loans on an annualized basis for the fourth quarter of 2021. Gross charge-offs were $7.8 million for the first quarter compared to $6.6 million for the previous quarter. Recoveries totaled $1.8 million for the first quarter of 2022 and $7.3 million for the fourth quarter of 2021.
Securities and Derivatives
The fair value of the available for sale securities portfolio totaled $12.9 billion at March 31, 2022, a $263 million decrease compared to December 31, 2021. At March 31, 2022, the available for sale securities portfolio consisted primarily of $7.6 billion of residential mortgage-backed securities fully backed by U.S. government agencies and $4.4 billion of commercial mortgage-backed securities fully backed by U.S. government agencies. At March 31, 2022, the available for sale securities portfolio had a net unrealized loss of $547 million compared to a net unrealized gain of $93 million at December 31, 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 increased $141 million to $185 million at March 31, 2022 as hedges that were previously held as derivatives were settled into the fair value option securities portfolio.
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The net fair values of derivative contracts, before consideration of cash margin, totaled $2.7 billion at March 31, 2022, a $1.6 billion increase compared to December 31, 2021. Energy contracts increased $1.3 billion driven by recent increases in oil and gas prices.
The net cost of the changes in the fair value of mortgage servicing rights and related economic hedges was $8.4 million during the first quarter of 2022, including a $57.9 million decrease in the fair value of securities and derivative contracts held as an economic hedge, $49.1 million increase in the fair value of mortgage servicing rights, and $383 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, April 27, 2022 to discuss the financial results with investors. The live audio webcast and presentation slides will be available on the company’s website at www.bokf.com. The conference call can also be accessed by dialing 1-201-689-8471. A conference call and webcast replay will also be available shortly after conclusion of the live call at www.bokf.com or by dialing 1-844-512-2921 and referencing conference ID # 13728424.
About BOK Financial Corporation
BOK Financial Corporation is a $47 billion regional financial services company headquartered in Tulsa, Oklahoma with $101 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 March 31, 2022 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
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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.
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                                                Exhibit 99.1(b)

BALANCE SHEETS -- UNAUDITED
BOK FINANCIAL CORPORATION
(In thousands)
Mar. 31, 2022Dec. 31, 2021
ASSETS
Cash and due from banks$767,805 $712,067 
Interest-bearing cash and cash equivalents599,976 2,125,343 
Trading securities4,891,096 9,136,813 
Investment securities, net of allowance183,824 210,444 
Available for sale securities12,894,534 13,157,817 
Fair value option securities185,003 43,770 
Restricted equity securities77,389 83,113 
Residential mortgage loans held for sale169,474 192,295 
Loans:
Commercial12,883,189 12,506,465 
Commercial real estate4,100,956 3,831,325 
Paycheck protection program137,365 276,341 
Loans to individuals3,552,919 3,591,549 
Total loans20,674,429 20,205,680 
Allowance for loan losses(246,473)(256,421)
Loans, net of allowance20,427,956 19,949,259 
Premises and equipment, net574,786 574,148 
Receivables238,694 223,021 
Goodwill1,044,749 1,044,749 
Intangible assets, net87,761 91,778 
Mortgage servicing rights209,563 163,198 
Real estate and other repossessed assets, net24,492 24,589 
Derivative contracts, net2,680,207 1,097,297 
Cash surrender value of bank-owned life insurance407,763 405,607 
Receivable on unsettled securities sales229,404 56,172 
Other assets1,132,031 957,951 
TOTAL ASSETS$46,826,507 $50,249,431 
LIABILITIES AND EQUITY
Deposits:
Demand$15,242,341 $15,344,423 
Interest-bearing transaction21,689,829 23,268,573 
Savings979,365 924,735 
Time1,514,416 1,704,328 
Total deposits39,425,951 41,242,059 
Funds purchased and repurchase agreements1,068,329 2,326,449 
Other borrowings36,246 36,753 
Subordinated debentures131,209 131,226 
Accrued interest, taxes and expense238,048 273,041 
Due on unsettled securities purchases81,016 160,686 
Derivative contracts, net557,834 275,625 
Other liabilities434,350 435,221 
TOTAL LIABILITIES41,972,983 44,881,060 
Shareholders' equity:
Capital, surplus and retained earnings5,267,408 5,291,361 
Accumulated other comprehensive gain (loss)(417,826)72,371 
TOTAL SHAREHOLDERS' EQUITY4,849,582 5,363,732 
Non-controlling interests3,942 4,639 
TOTAL EQUITY4,853,524 5,368,371 
TOTAL LIABILITIES AND EQUITY$46,826,507 $50,249,431 

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AVERAGE BALANCE SHEETS -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands)
Three Months Ended
Mar. 31, 2022Dec. 31, 2021Sept. 30, 2021June 30, 2021Mar. 31, 2021
ASSETS
Interest-bearing cash and cash equivalents$1,050,409 $1,208,552 $682,788 $659,312 $711,047 
Trading securities8,537,390 9,260,778 7,617,236 7,430,217 6,963,617 
Investment securities, net of allowance195,198 213,188 218,117 221,401 237,313 
Available for sale securities13,092,422 13,247,607 13,446,095 13,243,542 13,433,767 
Fair value option securities75,539 46,458 56,307 64,864 104,662 
Restricted equity securities164,484 137,874 245,485 208,692 189,921 
Residential mortgage loans held for sale179,697 163,433 167,620 218,200 207,013 
Loans:
Commercial12,677,706 12,401,935 12,231,230 12,402,925 12,908,461 
Commercial real estate4,059,148 3,838,336 4,218,190 4,395,848 4,547,945 
Paycheck protection program210,110 404,261 792,728 1,668,047 1,741,534 
Loans to individuals3,516,698 3,598,121 3,606,460 3,700,269 3,559,067 
Total loans20,463,662 20,242,653 20,848,608 22,167,089 22,757,007 
Allowance for loan losses(254,191)(271,794)(306,125)(345,269)(382,734)
Loans, net of allowance20,209,471 19,970,859 20,542,483 21,821,820 22,374,273 
Total earning assets43,504,610 44,248,749 42,976,131 43,868,048 44,221,613 
Cash and due from banks790,440 783,670 766,688 763,393 760,691 
Derivative contracts, net
2,126,282 1,441,869 1,501,736 1,022,137 873,712 
Cash surrender value of bank-owned life insurance
406,379 404,149 401,926 401,760 399,830 
Receivable on unsettled securities sales375,616 585,901 632,539 716,700 735,482 
Other assets3,357,747 3,139,718 3,220,129 3,424,884 3,319,305 
TOTAL ASSETS$50,561,074 $50,604,056 $49,499,149 $50,196,922 $50,310,633 
LIABILITIES AND EQUITY
Deposits:
Demand$15,062,282 $14,818,841 $13,670,656 $13,189,954 $12,312,629 
Interest-bearing transaction22,763,479 22,326,401 21,435,736 21,491,145 21,433,406 
Savings947,407 909,131 888,011 872,618 789,656 
Time1,589,039 1,747,715 1,839,983 1,936,510 1,986,425 
Total deposits40,362,207 39,802,088 37,834,386 37,490,227 36,522,116 
Funds purchased and repurchase agreements
2,004,466 2,893,128 1,448,800 1,790,490 2,830,378 
Other borrowings1,148,440 880,837 2,546,083 3,608,369 3,392,346 
Subordinated debentures131,228 131,224 214,654 276,034 276,015 
Derivative contracts, net682,435 320,757 434,334 366,202 428,488 
Due on unsettled securities purchases519,097 629,642 957,538 701,495 915,410 
Other liabilities565,350 578,091 619,913 634,460 671,715 
TOTAL LIABILITIES45,413,223 45,235,767 44,055,708 44,867,277 45,036,468 
Total equity5,147,851 5,368,289 5,443,441 5,329,645 5,274,165 
TOTAL LIABILITIES AND EQUITY$50,561,074 $50,604,056 $49,499,149 $50,196,922 $50,310,633 

11

STATEMENTS OF EARNINGS -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands, except per share data)
Three Months Ended
March 31,
20222021
Interest revenue$283,099 $298,239 
Interest expense14,688 17,819 
Net interest revenue268,411 280,420 
Provision for credit losses— (25,000)
Net interest revenue after provision for credit losses
268,411 305,420 
Other operating revenue:
Brokerage and trading revenue(27,079)20,782 
Transaction card revenue24,216 22,430 
Fiduciary and asset management revenue46,399 41,322 
Deposit service charges and fees27,004 24,209 
Mortgage banking revenue16,650 37,113 
Other revenue10,445 16,296 
Total fees and commissions97,635 162,152 
Other gains (losses), net(1,644)10,121 
Loss on derivatives, net(46,981)(27,650)
Loss on fair value option securities, net(11,201)(1,910)
Change in fair value of mortgage servicing rights49,110 33,874 
Gain on available for sale securities, net937 467 
Total other operating revenue87,856 177,054 
Other operating expense:
Personnel159,228 173,010 
Business promotion6,513 2,154 
Charitable contributions to BOKF Foundation— 4,000 
Professional fees and services11,413 11,980 
Net occupancy and equipment30,855 26,662 
Insurance4,283 4,620 
Data processing and communications39,836 37,467 
Printing, postage and supplies3,689 3,440 
Amortization of intangible assets3,964 4,807 
Mortgage banking costs7,877 13,943 
Other expense9,960 13,701 
Total other operating expense277,618 295,784 
Net income before taxes78,649 186,690 
Federal and state income taxes16,197 42,382 
Net income62,452 144,308 
Net loss attributable to non-controlling interests(36)(1,752)
Net income attributable to BOK Financial Corporation shareholders
$62,488 $146,060 
Average shares outstanding:
Basic67,812,400 69,137,375 
Diluted67,813,851 69,141,710 
Net income per share:
Basic$0.91 $2.10 
Diluted$0.91 $2.10 


12

FINANCIAL HIGHLIGHTS -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands, except ratio and share data)
Three Months Ended
Mar. 31, 2022Dec. 31, 2021Sept. 30, 2021June 30, 2021Mar. 31, 2021
Capital:
Period-end shareholders' equity$4,849,582 $5,363,732 $5,388,973 $5,332,977 $5,239,462 
Risk weighted assets$37,160,258 $34,575,277 $33,916,456 $33,824,860 $32,623,108 
Risk-based capital ratios:
Common equity tier 111.30 %12.24 %12.26 %11.95 %12.14 %
Tier 111.31 %12.25 %12.29 %12.01 %12.21 %
Total capital12.25 %13.29 %13.38 %13.61 %13.98 %
Leverage ratio8.47 %8.55 %8.77 %8.58 %8.42 %
Tangible common equity ratio1
8.13 %8.61 %9.28 %9.09 %8.82 %
Common stock:
Book value per share$71.21 $78.34 $78.56 $77.20 $75.33 
Tangible book value per share$54.58 $61.74 $61.93 $60.50 $58.67 
Market value per share:
High$119.59 $110.21 $92.97 $93.00 $98.95 
Low$93.76 $89.01 $77.20 $83.59 $67.57 
Cash dividends paid$36,093 $36,256 $35,725 $35,925 $36,038 
Dividend payout ratio57.76 %30.90 %18.97 %21.59 %24.67 %
Shares outstanding, net68,104,043 68,467,772 68,596,764 69,078,458 69,557,873 
Stock buy-back program:
Shares repurchased475,877 128,522 478,141 492,994 260,000 
Amount$48,074 $13,426 $40,644 $43,797 $20,071 
Average price per share$101.02 $104.46 $85.00 $88.84 $77.20 
Performance ratios (quarter annualized):
Return on average assets0.50 %0.92 %1.51 %1.33 %1.18 %
Return on average equity4.93 %8.68 %13.78 %12.58 %11.28 %
Net interest margin2.44 %2.52 %2.66 %2.60 %2.62 %
Efficiency ratio75.07 %70.14 %61.23 %64.20 %66.26 %
Reconciliation of non-GAAP measures:
1 Tangible common equity ratio:
Total shareholders' equity$4,849,582 $5,363,732 $5,388,973 $5,332,977 $5,239,462 
Less: Goodwill and intangible assets, net
1,132,510 1,136,527 1,140,935 1,153,785 1,158,676 
Tangible common equity$3,717,072 $4,227,205 $4,248,038 $4,179,192 $4,080,786 
Total assets$46,826,507 $50,249,431 $46,923,409 $47,154,375 $47,442,513 
Less: Goodwill and intangible assets, net
1,132,510 1,136,527 1,140,935 1,153,785 1,158,676 
Tangible assets$45,693,997 $49,112,904 $45,782,474 $46,000,590 $46,283,837 
Tangible common equity ratio8.13 %8.61 %9.28 %9.09 %8.82 %
13

Three Months Ended
Mar. 31, 2022Dec. 31, 2021Sept. 30, 2021June 30, 2021Mar. 31, 2021
Pre-provision net revenue:
Net income before taxes$78,649 $152,025 $241,782 $215,603 $186,690 
Provision for expected credit losses— (17,000)(23,000)(35,000)(25,000)
Net income (loss) attributable to non-controlling interests(36)(129)(601)686 (1,752)
Pre-provision net revenue$78,685 $135,154 $219,383 $179,917 $163,442 
Other data:
Tax equivalent interest$1,973 $2,104 $2,217 $2,320 $2,301 
Net unrealized gain (loss) on available for sale securities$(546,598)$93,381 $221,487 $297,267 $290,217 
Mortgage banking:
Mortgage production revenue$5,055 $10,018 $15,403 $10,004 $25,287 
Mortgage loans funded for sale$418,866 $568,507 $652,336 $754,893 $843,053 
Add: current period-end outstanding commitments
160,260 171,412 239,066 276,154 387,465 
Less: prior period end outstanding commitments
171,412 239,066 276,154 387,465 380,637 
Total mortgage production volume
$407,714 $500,853 $615,248 $643,582 $849,881 
Mortgage loan refinances to mortgage loans funded for sale
45 %51 %48 %48 %65 %
Realized margin on funded mortgage loans1.64 %2.34 %2.48 %2.75 %3.10 %
Production revenue as a percentage of production volume1.24 %2.00 %2.50 %1.55 %2.98 %
Mortgage servicing revenue$11,595 $11,260 $10,883 $11,215 $11,826 
Average outstanding principal balance of mortgage loans serviced for others
16,155,329 15,930,480 14,899,306 15,065,173 15,723,231 
Average mortgage servicing revenue rates0.29 %0.28 %0.29 %0.30 %0.31 %
Gain (loss) on mortgage servicing rights, net of economic hedge:
Gain (loss) on mortgage hedge derivative contracts, net
$(46,694)$(4,862)$(5,829)$18,764 $(27,705)
Gain (loss) on fair value option securities, net
(11,201)1,418 (120)(1,627)(1,910)
Gain (loss) on economic hedge of mortgage servicing rights
(57,895)(3,444)(5,949)17,137 (29,615)
Gain (loss) on changes in fair value of mortgage servicing rights
49,110 7,859 12,945 (13,041)33,874 
Gain (loss) on changes in fair value of mortgage servicing rights, net of economic hedges, included in other operating revenue(8,785)4,415 6,996 4,096 4,259 
Net interest revenue on fair value option securities2
383 259 286 341 393 
Total economic benefit (cost) of changes in the fair value of mortgage servicing rights, net of economic hedges$(8,402)$4,674 $7,282 $4,437 $4,652 
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, 2022Dec. 31, 2021Sept. 30, 2021June 30, 2021Mar. 31, 2021
Interest revenue$283,099 $292,334 $293,463 $295,893 $298,239 
Interest expense14,688 15,257 13,236 15,584 17,819 
Net interest revenue268,411 277,077 280,227 280,309 280,420 
Provision for credit losses— (17,000)(23,000)(35,000)(25,000)
Net interest revenue after provision for credit losses
268,411 294,077 303,227 315,309 305,420 
Other operating revenue:
Brokerage and trading revenue(27,079)14,869 47,930 29,408 20,782 
Transaction card revenue24,216 24,998 24,632 24,923 22,430 
Fiduciary and asset management revenue46,399 46,872 45,248 44,832 41,322 
Deposit service charges and fees27,004 26,718 27,429 25,861 24,209 
Mortgage banking revenue16,650 21,278 26,286 21,219 37,113 
Other revenue10,445 11,586 18,896 23,172 16,296 
Total fees and commissions97,635 146,321 190,421 169,415 162,152 
Other gains (losses), net(1,644)6,081 31,091 16,449 10,121 
Gain (loss) on derivatives, net(46,981)(4,788)(5,760)18,820 (27,650)
Gain (loss) on fair value option securities, net
(11,201)1,418 (120)(1,627)(1,910)
Change in fair value of mortgage servicing rights
49,110 7,859 12,945 (13,041)33,874 
Gain on available for sale securities, net937 552 1,255 1,430 467 
Total other operating revenue87,856 157,443 229,832 191,446 177,054 
Other operating expense:
Personnel159,228 174,474 175,863 172,035 173,010 
Business promotion6,513 6,452 4,939 2,744 2,154 
Charitable contributions to BOKF Foundation
— 5,000 — — 4,000 
Professional fees and services11,413 14,129 12,436 12,361 11,980 
Net occupancy and equipment30,855 26,897 28,395 26,633 26,662 
Insurance4,283 3,889 3,712 3,660 4,620 
Data processing and communications
39,836 39,358 38,371 36,418 37,467 
Printing, postage and supplies3,689 2,935 3,558 4,285 3,440 
Amortization of intangible assets
3,964 4,438 4,488 4,578 4,807 
Mortgage banking costs7,877 8,667 8,962 11,126 13,943 
Other expense9,960 13,256 10,553 17,312 13,701 
Total other operating expense277,618 299,495 291,277 291,152 295,784 
Net income before taxes78,649 152,025 241,782 215,603 186,690 
Federal and state income taxes16,197 34,836 54,061 48,496 42,382 
Net income62,452 117,189 187,721 167,107 144,308 
Net income (loss) attributable to non-controlling interests
(36)(129)(601)686 (1,752)
Net income attributable to BOK Financial Corporation shareholders
$62,488 $117,318 $188,322 $166,421 $146,060 
Average shares outstanding:
Basic67,812,400 68,069,160 68,359,125 68,815,666 69,137,375 
Diluted67,813,851 68,070,910 68,360,871 68,817,442 69,141,710 
Net income per share:
Basic$0.91 $1.71 $2.74 $2.40 $2.10 
Diluted$0.91 $1.71 $2.74 $2.40 $2.10 
15

LOANS TREND -- UNAUDITED
BOK FINANCIAL CORPORATION
(In thousands)
Mar. 31, 2022Dec. 31, 2021Sept. 30, 2021June 30, 2021Mar. 31, 2021
Commercial:     
Healthcare$3,441,732 $3,414,940 $3,347,641 $3,381,261 $3,290,758 
Services3,351,495 3,367,193 3,323,422 3,389,756 3,421,948 
Energy3,197,667 3,006,884 2,814,059 3,011,331 3,202,488 
General business2,892,295 2,717,448 2,690,018 2,690,559 2,742,590 
Total commercial12,883,189 12,506,465 12,175,140 12,472,907 12,657,784 
Commercial real estate:
Office1,097,516 1,040,963 1,030,755 1,073,346 1,094,060 
Industrial911,928 766,125 890,316 824,577 789,437 
Multifamily867,288 786,404 875,586 964,824 1,227,915 
Retail667,561 679,917 766,402 784,445 787,648 
Residential construction and land development
120,506 120,016 118,416 128,939 119,079 
Other commercial real estate436,157 437,900 435,417 470,861 485,208 
Total commercial real estate4,100,956 3,831,325 4,116,892 4,246,992 4,503,347 
Paycheck protection program137,365 276,341 536,052 1,121,583 1,848,550 
Loans to individuals:     
Residential mortgage1,723,506 1,722,170 1,747,243 1,772,627 1,797,478 
Residential mortgages guaranteed by U.S. government agencies322,581 354,173 376,986 413,806 420,051 
Personal1,506,832 1,515,206 1,395,623 1,388,534 1,306,637 
Total loans to individuals3,552,919 3,591,549 3,519,852 3,574,967 3,524,166 
Total$20,674,429 $20,205,680 $20,347,936 $21,416,449 $22,533,847 
16

LOANS MANAGED BY PRINCIPAL MARKET AREA -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands)
Mar. 31, 2022Dec. 31, 2021Sept. 30, 2021June 30, 2021Mar. 31, 2021
Texas:
Commercial$6,254,883 $6,068,700 $5,815,562 $5,690,901 $5,748,345 
Commercial real estate1,345,105 1,253,439 1,383,871 1,403,751 1,511,714 
Paycheck protection program31,242 81,654 115,623 342,933 537,899 
Loans to individuals957,320 942,982 901,121 885,619 848,194 
Total Texas8,588,550 8,346,775 8,216,177 8,323,204 8,646,152 
Oklahoma:
Commercial2,883,663 2,633,014 2,590,887 2,840,560 2,975,477 
Commercial real estate552,310 546,021 552,184 552,673 597,840 
Paycheck protection program52,867 69,817 192,474 242,880 468,002 
Loans to individuals1,977,886 2,024,404 2,014,099 2,063,419 2,043,705 
Total Oklahoma5,466,726 5,273,256 5,349,644 5,699,532 6,085,024 
Colorado:
Commercial1,977,773 1,936,149 1,874,613 1,904,182 1,910,826 
Commercial real estate480,740 470,937 526,653 656,521 777,786 
Paycheck protection program28,584 82,781 140,470 299,712 436,540 
Loans to individuals236,125 256,533 249,298 262,796 264,759 
Total Colorado2,723,222 2,746,400 2,791,034 3,123,211 3,389,911 
Arizona:
Commercial1,074,551 1,130,798 1,194,801 1,239,270 1,207,089 
Commercial real estate719,970 674,309 734,174 705,497 667,766 
Paycheck protection program11,644 21,594 42,815 104,946 208,481 
Loans to individuals190,746 186,528 182,506 178,481 179,031 
Total Arizona1,996,911 2,013,229 2,154,296 2,228,194 2,262,367 
Kansas/Missouri:
Commercial334,371 338,697 336,414 388,291 421,974 
Commercial real estate436,740 382,761 408,001 406,055 395,590 
Paycheck protection program2,595 4,718 6,920 41,954 60,741 
Loans to individuals121,247 110,889 100,920 103,092 104,954 
Total Kansas/Missouri894,953 837,065 852,255 939,392 983,259 
New Mexico:
Commercial262,533 306,964 287,695 304,804 307,395 
Commercial real estate504,632 442,128 437,302 437,996 448,298 
Paycheck protection program9,713 13,510 31,444 86,716 124,059 
Loans to individuals63,299 63,930 66,651 68,177 70,491 
Total New Mexico840,177 826,532 823,092 897,693 950,243 
Arkansas:
Commercial95,415 92,143 75,168 104,899 86,678 
Commercial real estate61,459 61,730 74,707 84,499 104,353 
Paycheck protection program720 2,267 6,306 2,442 12,828 
Loans to individuals6,296 6,283 5,257 13,383 13,032 
Total Arkansas163,890 162,423 161,438 205,223 216,891 
TOTAL BOK FINANCIAL$20,674,429 $20,205,680 $20,347,936 $21,416,449 $22,533,847 
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, 2022Dec. 31, 2021Sept. 30, 2021June 30, 2021Mar. 31, 2021
Oklahoma:
    Demand$5,205,806 $5,433,405 $5,080,162 $4,985,542 $4,823,436 
    Interest-bearing:
       Transaction11,410,709 12,689,367 11,692,679 12,065,844 12,828,070 
       Savings558,634 521,439 510,906 500,344 487,862 
       Time817,744 978,822 1,039,866 1,139,980 1,197,517 
    Total interest-bearing12,787,087 14,189,628 13,243,451 13,706,168 14,513,449 
Total Oklahoma17,992,893 19,623,033 18,323,613 18,691,710 19,336,885 
Texas:
    Demand4,552,001 4,552,983 3,987,503 3,752,790 3,592,969 
    Interest-bearing:
       Transaction4,963,118 5,345,461 4,985,465 4,335,113 4,257,234 
       Savings182,536 178,458 165,043 160,805 154,406 
       Time329,931 337,559 337,389 346,577 368,086 
    Total interest-bearing5,475,585 5,861,478 5,487,897 4,842,495 4,779,726 
Total Texas10,027,586 10,414,461 9,475,400 8,595,285 8,372,695 
Colorado:
    Demand2,673,352 2,526,855 2,158,596 1,991,343 2,115,354 
    Interest-bearing:
       Transaction2,387,304 2,334,371 2,337,354 2,159,819 2,100,135 
       Savings81,762 78,636 79,873 73,990 73,446 
       Time165,401 174,351 184,002 193,787 204,973 
    Total interest-bearing2,634,467 2,587,358 2,601,229 2,427,596 2,378,554 
Total Colorado5,307,819 5,114,213 4,759,825 4,418,939 4,493,908 
New Mexico:
    Demand1,271,264 1,196,057 1,222,895 1,197,412 1,131,713 
    Interest-bearing:
       Transaction888,257 858,394 837,630 723,757 736,923 
       Savings115,457 107,963 107,615 105,837 103,591 
       Time156,140 163,871 168,879 174,665 181,863 
    Total interest-bearing1,159,854 1,130,228 1,114,124 1,004,259 1,022,377 
Total New Mexico2,431,118 2,326,285 2,337,019 2,201,671 2,154,090 
Arizona:
    Demand947,775 934,282 1,110,884 943,511 915,439 
    Interest-bearing:
       Transaction810,896 834,491 784,614 820,901 835,795 
       Savings18,122 16,182 16,468 13,496 13,235 
       Time27,259 31,274 30,862 30,012 30,997 
    Total interest-bearing856,277 881,947 831,944 864,409 880,027 
Total Arizona1,804,052 1,816,229 1,942,828 1,807,920 1,795,466 
18

Mar. 31, 2022Dec. 31, 2021Sept. 30, 2021June 30, 2021Mar. 31, 2021
Kansas/Missouri:
    Demand553,345 658,342 488,595 463,339 478,370 
    Interest-bearing:
       Transaction1,107,525 1,086,946 965,757 978,160 991,510 
       Savings19,589 18,844 17,303 17,539 18,686 
       Time11,527 12,255 13,040 13,509 13,898 
    Total interest-bearing1,138,641 1,118,045 996,100 1,009,208 1,024,094 
Total Kansas/Missouri1,691,986 1,776,387 1,484,695 1,472,547 1,502,464 
Arkansas:
    Demand38,798 42,499 41,594 46,472 45,889 
    Interest-bearing:
       Transaction122,020 119,543 149,611 195,125 141,207 
       Savings3,265 3,213 3,289 3,445 3,000 
       Time6,414 6,196 6,677 6,819 7,022 
    Total interest-bearing131,699 128,952 159,577 205,389 151,229 
Total Arkansas170,497 171,451 201,171 251,861 197,118 
TOTAL BOK FINANCIAL$39,425,951 $41,242,059 $38,524,551 $37,439,933 $37,852,626 

19

NET INTEREST MARGIN TREND -- UNAUDITED
BOK FINANCIAL CORPORATION
Three Months Ended
Mar. 31, 2022Dec. 31, 2021Sept. 30, 2021June 30, 2021Mar. 31, 2021
TAX-EQUIVALENT ASSETS YIELDS
Interest-bearing cash and cash equivalents0.18 %0.16 %0.14 %0.10 %0.10 %
Trading securities1.71 %1.89 %2.04 %1.95 %2.06 %
Investment securities, net of allowance5.07 %4.99 %5.02 %5.01 %4.88 %
Available for sale securities1.77 %1.72 %1.80 %1.85 %1.84 %
Fair value option securities2.81 %2.71 %2.62 %2.60 %1.95 %
Restricted equity securities2.69 %2.98 %2.55 %3.36 %2.86 %
Residential mortgage loans held for sale3.11 %3.06 %3.06 %2.91 %2.71 %
Loans3.57 %3.70 %3.68 %3.54 %3.55 %
Allowance for loan losses
Loans, net of allowance3.61 %3.75 %3.73 %3.60 %3.62 %
Total tax-equivalent yield on earning assets2.58 %2.66 %2.78 %2.75 %2.78 %
COST OF INTEREST-BEARING LIABILITIES
Interest-bearing deposits:
  Interest-bearing transaction0.10 %0.09 %0.09 %0.10 %0.12 %
  Savings0.03 %0.04 %0.04 %0.04 %0.04 %
  Time0.56 %0.53 %0.55 %0.58 %0.70 %
Total interest-bearing deposits0.12 %0.12 %0.13 %0.14 %0.17 %
Funds purchased and repurchase agreements0.95 %0.73 %0.20 %0.16 %0.19 %
Other borrowings0.38 %0.49 %0.37 %0.34 %0.39 %
Subordinated debt4.02 %4.02 %4.63 %4.87 %4.92 %
Total cost of interest-bearing liabilities0.21 %0.21 %0.19 %0.21 %0.24 %
Tax-equivalent net interest revenue spread2.37 %2.45 %2.59 %2.54 %2.54 %
Effect of noninterest-bearing funding sources and other
0.07 %0.07 %0.07 %0.06 %0.08 %
Tax-equivalent net interest margin2.44 %2.52 %2.66 %2.60 %2.62 %

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.

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CREDIT QUALITY INDICATORS -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands, except ratios)
Three Months Ended
Mar. 31, 2022Dec. 31, 2021Sept. 30, 2021June 30, 2021Mar. 31, 2021
Nonperforming assets:
Nonaccruing loans:
Commercial:
Energy$24,976 $31,091 $45,500 $70,341 $101,800 
Services16,535 17,170 25,714 29,913 28,033 
Healthcare15,076 15,762 509 527 3,187 
General business3,750 10,081 8,951 11,823 14,053 
Total commercial60,337 74,104 80,674 112,604 147,073 
Commercial real estate15,989 14,262 21,223 26,123 27,243 
Loans to individuals:
Permanent mortgage30,757 31,574 30,674 31,473 32,884 
Permanent mortgage guaranteed by U.S. government agencies
16,992 13,861 9,188 9,207 8,564 
Personal171 258 188 229 255 
Total loans to individuals47,920 45,693 40,050 40,909 41,703 
Total nonaccruing loans$124,246 $134,059 $141,947 $179,636 $216,019 
Accruing renegotiated loans guaranteed by U.S. government agencies
204,121 210,618 178,554 171,324 154,591 
Real estate and other repossessed assets24,492 24,589 28,770 57,337 70,911 
Total nonperforming assets$352,859 $369,266 $349,271 $408,297 $441,521 
Total nonperforming assets excluding those guaranteed by U.S. government agencies
$131,746 $144,787 $161,529 $227,766 $278,366 
Accruing loans 90 days past due1
$307 $313 $223 $252 $395 
Gross charge-offs$7,805 $6,558 $9,584 $18,304 $16,905 
Recoveries(1,824)(7,272)(1,769)(2,856)(2,437)
Net charge-offs (recoveries)$5,981 $(714)$7,815 $15,448 $14,468 
Provision for loan losses
$(3,967)$(20,973)$(27,395)$(25,064)$(21,770)
Provision for credit losses from off-balance sheet unfunded loan commitments
3,268 3,738 4,952 (8,590)(4,044)
Provision for expected credit losses from mortgage banking activities621 150 (534)(1,222)885 
Provision for credit losses related to held-to maturity (investment) securities portfolio78 85 (23)(124)(71)
Total provision for credit losses$— $(17,000)$(23,000)$(35,000)$(25,000)
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Three Months Ended
Mar. 31, 2022Dec. 31, 2021Sept. 30, 2021June 30, 2021Mar. 31, 2021
Allowance for loan losses to period end loans
1.19 %1.27 %1.36 %1.46 %1.56 %
Allowance for loan losses to period end loans excluding PPP loans2
1.20 %1.29 %1.40 %1.54 %1.70 %
Combined allowance for loan losses and accrual for off-balance sheet credit risk from unfunded loan commitments to period end loans
1.37 %1.43 %1.50 %1.57 %1.71 %
Combined allowance for loan losses and accrual for off-balance sheet credit risk from unfunded loan commitments to period end loans excluding PPP loans2
1.38 %1.45 %1.54 %1.66 %1.86 %
Nonperforming assets to period end loans and repossessed assets
1.70 %1.83 %1.71 %1.90 %1.95 %
Net charge-offs (annualized) to average loans
0.12 %(0.01)%0.15 %0.28 %0.25 %
Net charge-offs (annualized) to average loans excluding PPP loans2
0.12 %(0.01)%0.16 %0.30 %0.28 %
Allowance for loan losses to nonaccruing loans1
229.80 %213.33 %208.41 %183.00 %169.87 %
Combined allowance for loan losses and accrual for off-balance sheet credit risk from unfunded loan commitments to nonaccruing loans1
263.60 %240.77 %230.43 %197.25 %185.72 %
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.
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SEGMENTS -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands, except ratios)
Three Months Ended1Q22 vs 4Q211Q22 vs 1Q21
Mar. 31, 2022Dec. 31, 2021Mar. 31, 2021$ change% change$ change% change
Commercial Banking
Net interest revenue$137,011 $140,723 $130,005 $(3,712)(2.6)%$7,006 5.4 %
Fees and commissions revenue56,964 57,414 49,847 (450)(0.8)%7,117 14.3 %
Combined net interest and fee revenue193,975 198,137 179,852 (4,162)(2.1)%14,123 7.9 %
Other operating expense65,114 74,459 66,979 (9,345)(12.6)%(1,865)(2.8)%
Corporate expense allocations16,246 12,926 12,734 3,320 25.7 %3,512 27.6 %
Net income82,344 83,514 69,673 (1,170)(1.4)%12,671 18.2 %
Average assets29,823,905 29,451,007 28,047,052 372,898 1.3 %1,776,853 6.3 %
Average loans16,696,428 16,334,695 17,522,520 361,733 2.2 %(826,092)(4.7)%
Average deposits19,595,260 19,537,285 16,130,168 57,975 0.3 %3,465,092 21.5 %
Consumer Banking
Net interest revenue$27,207 $30,385 $20,974 $(3,178)(10.5)%$6,233 29.7 %
Fees and commissions revenue33,977 38,944 52,300 (4,967)(12.8)%(18,323)(35.0)%
Combined net interest and fee revenue61,184 69,329 73,274 (8,145)(11.7)%(12,090)(16.5)%
Other operating expense48,789 52,036 55,622 (3,247)(6.2)%(6,833)(12.3)%
Corporate expense allocations12,080 11,420 11,475 660 5.8 %605 5.3 %
Net income (loss)(7,317)6,810 6,948 (14,127)(207.4)%(14,265)(205.3)%
Average assets10,273,890 10,186,797 9,755,539 87,093 0.9 %518,351 5.3 %
Average loans1,672,346 1,705,222 1,823,732 (32,876)(1.9)%(151,386)(8.3)%
Average deposits8,746,622 8,682,437 8,082,443 64,185 0.7 %664,179 8.2 %
Wealth Management
Net interest revenue$55,766 $58,229 $48,354 $(2,463)(4.2)%$7,412 15.3 %
Fees and commissions revenue25,023 56,275 65,684 (31,252)(55.5)%(40,661)(61.9)%
Combined net interest and fee revenue80,789 114,504 114,038 (33,715)(29.4)%(33,249)(29.2)%
Other operating expense74,495 74,947 78,565 (452)(0.6)%(4,070)(5.2)%
Corporate expense allocations12,062 9,971 9,887 2,091 21.0 %2,175 22.0 %
Net income (loss)(4,419)21,700 19,382 (26,119)(120.4)%(23,801)(122.8)%
Average assets19,526,382 20,725,903 18,645,865 (1,199,521)(5.8)%880,517 4.7 %
Average loans2,118,780 2,065,261 1,917,973 53,519 2.6 %200,807 10.5 %
Average deposits9,619,323 9,194,019 9,706,295 425,304 4.6 %(86,972)(0.9)%
Fiduciary assets61,095,320 64,536,833 56,227,268 (3,441,513)(5.3)%4,868,052 8.7 %
Assets under management or administration101,081,355 104,917,721 91,956,188 (3,836,366)(3.7)%9,125,167 9.9 %


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