Other Borrowings

12 Months Ended

Dec. 31, 2018

Other Borrowings

Information relating to other borrowings is summarized as follows (dollars in thousands):



	As of				Year Ended
	December 31, 2018				December 31, 2018
	Balance		Rate		Average Balance		Rate		Maximum Outstanding At Any Month End
Parent company and other non-bank subsidiaries:
Other borrowings	$	5,207	1.57	%	$	2,660	1.35	%	$	5,335
Subordinated debentures	275,913		5.34	%	177,884		5.52	%	275,913
Total parent company and other non-bank subsidiaries	281,120				180,544		5.46	%

Subsidiary banks:
Funds purchased	402,450		2.34	%	419,322		1.89	%	949,531
Repurchase agreements	615,961		0.36	%	464,582		0.28	%	615,961
Other borrowings:
Federal Home Loan Bank advances	6,100,000		2.65	%	6,207,142		2.06	%	6,500,000
GNMA repurchase liability	15,552		4.43	%	14,783		4.47	%	16,529
Other	3,631		4.80	%	11,856		4.45	%	15,096
Total other borrowings	6,119,183				6,233,781		2.07	%
Subordinated debentures	—		—	%	—		—	%	—
Total Subsidiary banks	7,137,594				7,117,685		1.94	%

Total other borrowed funds	$	7,418,714			$	7,298,229	2.03	%



	As of				Year Ended
	December 31, 2017				December 31, 2017
	Balance		Rate		Average Balance		Rate		Maximum Outstanding At Any Month End
Parent company and other non-bank subsidiaries:
Other borrowings	$	—	—	%	$	935	11.11	%	$	3,104
Subordinated debentures	144,677		5.60	%	147,954		5.57	%	151,875
Total parent company and other non-bank subsidiaries	144,677				148,889		5.65	%

Subsidiary banks:
Funds purchased	58,628		1.00	%	58,064		0.73	%	80,967
Repurchase agreements	516,335		0.17	%	433,791		0.10	%	536,094
Other borrowings:
Federal Home Loan Bank advances	5,100,000		1.47	%	5,882,466		1.13	%	6,200,000
GNMA repurchase liability	19,947		4.22	%	20,509		4.59	%	24,139
Other	14,950		2.61	%	15,382		2.38	%	15,506
Total other borrowings	5,134,897				5,918,357		1.14	%
Subordinated debentures	—		—	%	—		—	%	—
Total Subsidiary banks	5,709,860				6,410,212		1.07	%

Total other borrowed funds	$	5,854,537			$	6,559,101	1.18	%



	As of				Year Ended
	December 31, 2016				December 31, 2016
	Balance		Rate		Average Balance		Rate		Maximum Outstanding At Any Month End
Parent company and other non-bank subsidiaries:
Other borrowings	$	1,092	8.27	%	$	2,073	16.11	%	$	3,157
Subordinated debentures	151,857		5.49	%	75,039		5.57	%	151,857
Total parent company and other non-bank subsidiaries	152,949				77,112		5.86	%

Subsidiary banks:
Funds purchased	57,929		0.38	%	78,222		0.24	%	567,103
Repurchase agreements	668,661		0.02	%	589,145		0.04	%	668,661
Other borrowings:
Federal Home Loan Bank advances	4,800,000		0.72	%	5,985,656		0.55	%	6,500,000
GNMA repurchase liability	22,471		4.26	%	15,637		4.74	%	22,471
Other	15,292		2.66	%	15,670		2.41	%	15,797
Total other borrowings	4,837,763				6,016,963		0.57	%
Subordinated debentures	—		—	%	140,414		1.35	%	226,434
Total Subsidiary banks	5,564,353				6,824,744		0.54	%

Total other borrowed funds	$	5,717,302			$	6,901,856	0.60	%

Aggregate annual principal repayments at December 31, 2018 are as follows (in thousands):



	Parent Company and Other Non-bank Subsidiaries		Subsidiary Banks
2019	$	—	$	7,134,538
2020	—		575
2021	—		575
2022	—		575
2023	—		625
Thereafter	281,120		706
Total	$	281,120	$	7,137,594

Funds purchased are unsecured and generally mature within one day to ninety days from the transaction date. Securities repurchase agreements are recorded as secured borrowings that generally mature within ninety days and are secured by certain available for sale securities.

Additional information relating to securities sold under agreements to repurchase and related liabilities at December 31, 2018 and 2017 is as follows (dollars in thousands):



	December 31, 2018
	Amortized		Fair		Repurchase		Average
Security Sold/Maturity	Cost		Value		Liability¹		Rate

U.S. government agency mortgage-backed securities:
Overnight¹	$	636,864	$	628,229	$	615,961	0.36	%
Long-term	—		—		—		—	%
Total Agency Securities	$	636,864	$	628,229	$	615,961	0.36	%

	December 31, 2017
	Amortized		Fair		Repurchase		Average
Security Sold/Maturity	Cost		Value		Liability¹		Rate

U.S. government agency mortgage-backed securities:
Overnight¹	$	525,452	$	523,914	$	516,335	0.17	%
Long-term	—		—		—		—	%
Total Agency Securities	$	525,452	$	523,914	$	516,335	0.17	%


¹	BOK Financial maintains control over the securities underlying overnight repurchase agreements and generally transfers control over securities underlying longer-term dealer repurchase agreements to the respective counterparty.

Borrowings from the Federal Home Loan Banks are used for funding purposes. In accordance with policies of the Federal Home Loan Banks, BOK Financial has granted a blanket pledge of eligible assets (generally unencumbered U.S. Treasury and residential mortgage-backed securities, 1-4 family loans and multifamily loans) as collateral for these advances. The Federal Home Loan Banks have issued letters of credit totaling $266 million to secure BOK Financial’s obligations to depositors of public funds. The unused credit available to BOK Financial at December 31, 2018 pursuant to the Federal Home Loan Bank’s collateral policies is $1.9 billion.

In 2016, BOK Financial issued $150 million of subordinated debt that will mature on June 30, 2056. Interest on this debt bears an interest rate of 5.375%, payable quarterly. On June 30, 2021, BOK Financial will have the option to redeem the debt at the principal amount plus accrued interest, subject to regulatory approval.

As a result of the acquisition of CoBiz Financial, we obtained $60 million of subordinated debt issued in June 2015 that will mature on June 25, 2030. This debt bears interest at the rate of 5.625% through June 2025 and thereafter, the notes will bear interest at an annual floating rate equal to three-month LIBOR plus 3.17%. The debt contains a call option that allows for repayment prior to contractual maturity. The call option is available on June 25, 2025 and quarterly thereafter at 100% of the principal amount.

Also through CoBiz Financial, we acquired junior subordinated debentures split across three issuance tranches. Junior subordinated debentures of $21 million will mature September 17, 2033 and bear an interest rate of three-month LIBOR plus 2.95% that resets quarterly. Junior subordinated debentures of $31 million will mature on July 23, 2034 and bear an interest rate of three-month LIBOR plus 2.60% that resets quarterly. Junior subordinated debentures of $20 million will mature on September 30, 2035 and bear an interest rate of three-month LIBOR plus 1.45% that resets quarterly. The junior subordinated debentures are subject to early redemption prior to maturity.

In conjunction with the acquisition of MBT, BOK Financial assumed $7.2 million of variable rate subordinated trust preferred debt. Interest was payable quarterly at three-month LIBOR plus 2.95% on $3.1 million and three-month LIBOR plus 1.82% on $4.1 million. This trust preferred debt was redeemed during 2017.

BOK Financial Securities, Inc. may borrow funds from Pershing, LLC ("Pershing"), a clearing broker/dealer and a wholly owned subsidiary of Bank of New York Mellon, for the purposes of financing securities purchases or to facilitate funding of investment banking activities, on terms to be negotiated at the time of the borrowing. BOK Financial Securities, Inc. had no borrowings from Pershing outstanding at December 31, 2018 or December 31, 2017.

In 2007, BOKF, NA issued $250 million of subordinated debt due May 15, 2017. Interest on this debt was based upon a fixed rate of 5.75% through May 14, 2012 and is based on a floating rate of three-month LIBOR plus 0.69% thereafter. The outstanding balance was called during 2016.

The Company has a liability related to the repurchase of certain delinquent residential mortgage loans previously sold into GNMA mortgage pools. Interest is payable at rates contractually due to investors.