Reportable Segments

12 Months Ended

Dec. 31, 2012

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

(17)  Reportable Segments

BOK Financial operates three principal lines of business: Commercial Banking, Consumer Banking and Wealth Management. Commercial Banking includes lending, treasury and cash management services and customer risk management products to small businesses, middle market and larger commercial customers. Commercial Banking also includes the TransFund EFT network. Consumer Banking includes retail lending and deposit services and all mortgage banking activities. Wealth Management provides fiduciary services, brokerage and trading, private bank services and investment advisory services in all markets. Wealth Management also originates loans for high net worth clients.

In addition to its lines of business, BOK Financial has a Funds Management unit. The primary purpose of this unit is to manage the overall liquidity needs and interest rate risk. Each line of business borrows funds from and provides funds to the Funds Management unit as needed to support their operations. Operating results for Funds Management and other include the effect of interest rate risk positions and risk management activities, securities gains and losses including impairment charges, the provision for credit losses in excess of net loans charged off, tax planning strategies and certain executive compensation costs that are not attributed to the lines of business. 

BOK Financial allocates resources and evaluates performance of its lines of business after allocation of funds, certain indirect expenses, taxes based on statutory rates, actual net credit losses and capital costs. The cost of funds borrowed from the Funds Management unit by the operating lines of business is transfer priced at rates that approximate market rates for funds with similar duration. Market rates are generally based on the applicable LIBOR or interest rate swap rates, adjusted for prepayment risk. This method of transfer-pricing funds that support assets of the operating lines of business tends to insulate them from interest rate risk.

The value of funds provided by the operating lines of business to the Funds Management unit is based on rates which approximate the wholesale market rates for funds with similar duration and re-pricing characteristics. Market rates are generally based on LIBOR or interest rate swap rates. The funds credit formula applied to deposit products with indeterminate maturities is established based on their re-pricing characteristics reflected in a combination of the short-term LIBOR rates and a moving average of an intermediate term swap rate, with an appropriate spread applied to both. Shorter duration products are weighted towards the short-term LIBOR rate and longer duration products are weighted towards intermediate swap rates. The expected duration ranges from 30 days for certain rate-sensitive deposits to five years.

Economic capital is assigned to the business units by a capital allocation model that reflects management's assessment of risk. This model assigns capital based upon credit, operating, interest rate and market risk inherent in our business lines and recognizes the diversification benefits among the units. The level of assigned economic capital is a combination of the risk taken by each business line, based on its actual exposures and calibrated to its own loss history where possible. Average invested capital includes economic capital and amounts we have invested in the lines of business.

Substantially all revenue is from domestic customers. No single external customer accounts for more than 10% of total revenue.

Net loans charged off and provision for credit losses represents net loans charged off as attributed to the lines of business and the provision for credit losses in excess of net charge-offs included attributed to Funds Management and Other.

Reportable segments reconciliation to the Consolidated Financial Statements for the year ended December 31, 2012 is as follows (in thousands):

	Commercial			Consumer			Wealth Management			Funds Management and Other			BOK Financial Consolidated
Net interest revenue from external sources	$	367,412		$	90,036		$	27,754		$	219,124		$	704,326
Net interest revenue (expense) from internal sources	(46,414		)	25,120			21,432			(138		)	—
Net interest revenue	320,998			115,156			49,186			218,986			704,326
Provision for credit losses	10,852			9,345			2,284			(44,481		)	(22,000		)
Net interest revenue after provision for credit losses	310,146			105,811			46,902			263,467			726,326
Other operating revenue	171,131			272,118			200,007			22,855			666,111
Other operating expense	246,888			256,315			214,385			131,985			849,573
Income before taxes	234,389			121,614			32,524			154,337			542,864
Federal and state income tax	91,177			47,308			12,652			37,603			188,740
Net income	143,212			74,306			19,872			116,734			354,124
Net income attributable to non-controlling interest	—			—			—			2,933			2,933
Net income attributable to BOK Financial Corp.	$	143,212		$	74,306		$	19,872		$	113,801		$	351,191
Average assets	$	9,949,735		$	5,727,267		$	4,357,523		$	6,254,626		$	26,289,151
Average invested capital	882,288			287,972			184,622			1,551,073			2,905,955
Performance measurements:
Return on average assets	1.44		%	1.30		%	0.46		%				1.34		%
Return on average invested capital	16.23		%	25.73		%	10.76		%				12.09		%
Efficiency ratio	51.68		%	64.73		%	86.24		%				62.03		%

Reportable segments reconciliation to the Consolidated Financial Statements for the year ended December 31, 2011 is as follows (in thousands):

	Commercial			Consumer			Wealth Management			Funds Management and Other			BOK Financial Consolidated
Net interest revenue from external sources	$	342,833		$	89,745		$	30,813		$	228,103		$	691,494
Net interest revenue (expense) from internal sources	(30,676		)	33,109			16,540			(18,973		)	—
Net interest revenue	312,157			122,854			47,353			209,130			691,494
Provision for credit losses	20,760			13,451			2,960			(43,221		)	(6,050		)
Net interest revenue after provision for credit losses	291,397			109,403			44,393			252,351			697,544
Other operating revenue	147,545			223,322			171,873			27,795			570,535
Other operating expense	230,451			277,891			190,706			120,696			819,744
Income before taxes	208,491			54,834			25,560			159,450			448,335
Federal and state income tax	81,103			21,330			9,943			46,135			158,511
Net income	127,388			33,504			15,617			113,315			289,824
Net income attributable to non-controlling interest	—			—			—			3,949			3,949
Net income attributable to BOK Financial Corp.	$	127,388		$	33,504		$	15,617		$	109,366		$	285,875
Average assets	$	9,383,528		$	5,937,585		$	4,073,623		$	5,100,125		$	24,494,861
Average invested capital	884,169			273,906			174,877			1,348,913			2,681,865
Performance measurements:
Return on average assets	1.36		%	0.56		%	0.38		%				1.17		%
Return on average invested capital	14.41		%	12.23		%	8.93		%				10.66		%
Efficiency ratio	50.22		%	74.17		%	87.21		%				63.13		%

Reportable segments reconciliation to the Consolidated Financial Statements for the year ended December 31, 2010 is as follows (in thousands):

	Commercial			Consumer			Wealth Management			Funds Management and Other			BOK Financial Consolidated
Net interest revenue from external sources	$	338,391		$	86,292		$	36,012		$	248,357		$	709,052
Net interest revenue (expense) from internal sources	(45,317		)	47,624			12,546			(14,853		)	—
Net interest revenue	293,074			133,916			48,558			233,504			709,052
Provision for credit losses	70,489			24,705			10,831			(886		)	105,139
Net interest revenue after provision for credit losses	222,585			109,211			37,727			234,390			603,913
Other operating revenue	138,992			215,057			165,528			(1,519		)	518,058
Other operating expense	230,116			242,065			179,825			98,314			750,320
Income before taxes	131,461			82,203			23,430			134,557			371,651
Federal and state income tax	51,138			31,977			9,114			31,128			123,357
Net income	80,323			50,226			14,316			103,429			248,294
Net income attributable to non-controlling interest	—			—			—			1,540			1,540
Net income attributable to BOK Financial Corp.	$	80,323		$	50,226		$	14,316		$	101,889		$	246,754
Average assets	$	8,893,868		$	6,243,746		$	3,686,133		$	4,982,052		$	23,805,799
Average invested capital	899,005			277,837			169,775			1,078,026			2,424,643
Performance measurements:
Return on average assets	0.90		%	0.80		%	0.39		%				1.04		%
Return on average invested capital	8.93		%	18.08		%	8.43		%				10.18		%
Efficiency ratio	52.94		%	72.69		%	84.29		%				60.83		%