Exhibit

EX-99 2 a20190630bokfex99.htm EXHIBIT 99 Exhibit

Exhibit 99(a)

NASD: BOKF

BOK Financial Reports Quarterly Earnings of $138 million or $1.93 Per Share

CEO Commentary

Steven G. Bradshaw, president and chief executive officer, stated, “The second quarter was another in a long line of exceptional earnings performance for BOK Financial. By achieving the highest level of quarterly earnings in the history of the company, our diversified revenue approach was on full display this quarter as continued growth in our loan portfolio was matched by re-energized activity in our fee businesses. Combined strength in these dual pillars of revenue generation, combined with diligent expense management, drove us through a 60 percent efficiency ratio for the first time since the first quarter of 2012. These factors, along with a benign credit environment, affirm our confidence for the remainder of 2019."

Bradshaw continued, "The overall momentum we are building in Colorado and Arizona on the back of the final systems integration of CoBiz last quarter is growing. Now that we've achieved the expense synergies, we are very focused on growing our share and serving our customers in both of these markets, and are pleased to see the progress we've made already."



Second Quarter 2019 Financial Highlights	Second Quarter 2019 Business Segment Highlights


•	Net income was $137.6 million or $1.93 per diluted share for the second quarter of 2019 and $110.6 million and $1.54 per diluted share for the first quarter of 2019. The first quarter included a 13 cent per share reduction due to CoBiz integration costs.


•	Net interest revenue totaled $285.4 million, an increase of $7.3 million. Net interest margin was consistent at 3.30 percent compared to the first quarter of 2019. Recovery of foregone interest and an increase in loan discount accretion added 10 basis points to net interest margin in the second quarter.


•	Fees and commissions revenue totaled $176.1 million, an increase of $15.6 million led by increases in trading revenue and mortgage banking revenue. Lower mortgage interest rates have increased mortgage production and related trading activity.


•	Operating expense decreased $10.0 million to $277.1 million. The first quarter of 2019 included $12.7 million of integration costs. Excluding first quarter integration costs, personnel expenses decreased $5.6 million as efficiencies are recognized from the CoBiz acquisition.


•	A $5.0 million provision for credit losses was recorded in the second quarter of 2019. The combined allowance for credit losses totaled $204 million or 0.92 percent of outstanding loans compared to $207 million or 0.95 percent in the previous quarter.


•	Average loans increased $238 million to $22.0 billion and period-end loans increased $497 million to $22.3 billion. Average deposits increased $548 million to $25.2 billion and period-end deposits were relatively consistent with the prior quarter.


•	The Company repurchased 250,000 shares at an average price of $80.50 per share.

Commercial Banking


•	Contributed $106.9 million to net income, an increase of $20.8 million over the prior quarter. Net interest revenue increased by $34.0 million, primarily driven by the allocation of acquired loans to the business lines. Fee revenue increased $3.1 million, while operating expense increased $12.8 million.


•	Average loans grew by $347 million, excluding the allocation of acquired loans in the second quarter. Average deposits increased $226 million.

Consumer Banking


•	Contributed $16.3 million to net income, an increase of $1.0 million compared to the first quarter. Net interest revenue increased $1.6 million, fee revenue increased $6.0 million and operating expense increased $3.9 million.


•	The recent decrease in mortgage interest rates has spurred mortgage origination activity in the second quarter. Mortgage production volume increased $197 million to $810 million and gain on sale margin increased 18 basis points to 1.46 percent.

Wealth Management


•	Contributed $25.5 million to net income, an increase of $1.8 million compared to the prior quarter. While net interest revenue decreased slightly, fees and commissions revenue increased $12.7 million largely due to an increase in brokerage and trading revenue. Operating expense increased $7.9 million.


•	Assets under management or administration were $81.8 billion at June 30, 2019 compared to $78.9 billion at March 31, 2019. Fiduciary assets totaled $49.3 billion at June 30, 2019 and $46.4 billion at March 31, 2019.



Net Interest Revenue

Net interest revenue was $285.4 million for the second quarter of 2019, a $7.3 million increase over the first quarter of 2019. Recoveries of foregone interest on non-accruing loans added $3.4 million. The second quarter of 2019 included $13.4 million of purchase accounting discount accretion while the first quarter of 2019 included $7.8 million.

Net interest margin was 3.30 percent, consistent with the previous quarter. The recovery of foregone interest and increase in loan discount accretion added approximately 10 basis points to net interest margin in the second quarter. Excluding these items, the yield on average earning assets was 4.31 percent, a 6 basis point decrease while the yield on the loan portfolio was 5.09 percent, down 2 basis points. The yield on the available for sale securities portfolio increased 6 basis points to 2.63 percent. The yield on the trading securities portfolio, which moves with long term interest rates because it turns over rapidly, was down 29 basis points.

Funding costs were 1.70 percent, up 4 basis points. The cost of interest-bearing deposits increased 9 basis points to 1.13 percent. The cost of other borrowed funds was down 1 basis point to 2.53 percent. The benefit to net interest margin from assets funded by non-interest liabilities was relatively unchanged at 49 basis points.

Average earning assets increased $933 million compared to the first quarter of 2019. Average available for sale securities increased $553 million. Average loan balances were up $238 million. Average fair value option securities balances increased $304 million. Average trading securities balances decreased $211 million. Average interest-bearing deposit balances increased $652 million and average borrowed funds increased $169 million compared to the first quarter of 2019.



Fees and Commissions Revenue

Fees and commissions revenue totaled $176.1 million for the second quarter of 2019, an increase of $15.6 million over the first quarter of 2019.

Lower mortgage interest rates have positively affected both our brokerage and trading and mortgage banking revenue. Brokerage and trading revenue increased $8.9 million due to increased trading volumes. Mortgage banking revenue increased $4.3 million due to a $197 million increase in production volume and an 18 basis point increase in gain on sale margin.

Fiduciary and asset management revenue increased $1.7 million over the first quarter of 2019, primarily due to seasonal tax fees collected in the second quarter. Transaction card revenue increased $1.2 million due to increased transaction volume.



Operating Expense

Total operating expense was $277.1 million for the second quarter of 2019, a decrease of $10.0 million compared to the first quarter of 2019. The first quarter of 2019 included $12.7 million of CoBiz integration costs. The following discussion excludes the impact of these costs.

Personnel expense decreased $5.6 million. CoBiz system integration was completed near the end of the first quarter which enabled us to fully realize expected operating efficiencies related to the acquisition. Regular compensation decreased $1.8 million while incentive compensation expense decreased $1.7 million. Employee benefits also decreased $2.0 million.

Non-personnel expense increased $8.3 million. Business promotion expense increased $2.9 million, primarily due to advertising expenses related to marketing our BOK Financial brand in the Colorado and Arizona markets. Insurance expense is up $1.9 million largely due to adjustments to deposit insurance expense related to the CoBiz integration. Increases in professional fees and services of $1.7 million and mortgage banking costs of $1.6 million were partially offset by a decrease in net losses and expenses of repossessed assets of $1.4 million. In addition, a $1.0 million cash charitable donation was made to the BOKF Foundation in the second quarter.



Loans, Deposits and Capital

Loans

Outstanding loans were $22.3 billion at June 30, 2019, up $497 million over March 31, 2019, largely related to growth in commercial and commercial real estate balances.

Outstanding commercial loan balances grew by $375 million or 3 percent over March 31, 2019. Energy loan balances were up $216 million. Wholesale/retail sector loans increased $86 million. Other commercial and industrial loans increased $28 million and services sector loans increased by $22 million.

Commercial real estate loan balances increased $109 million or 2 percent compared to March 31, 2019 due to our strong ongoing commitment volume. Loans secured by multifamily residential properties increased $90 million. Loans secured by industrial properties increased $61 million. Loans secured by office buildings increased $23 million. This growth was partially offset by a $65 million decrease in retail facilities.

Deposits

Period-end deposits totaled $25.3 billion at June 30, 2019, a $27 million decrease compared to March 31, 2019. Demand deposit balances decreased $429 million. Interest-bearing transaction account balances grew by $375 million. Time deposit balances increased by $30 million. Average deposits were $25.2 billion at June 30, 2019, an increase of $548 million compared to March 31, 2019. Total interest-bearing deposits increased $652 million partially offset by a decrease in demand deposits of $104 million.

Capital

The company's common equity Tier 1 capital ratio was 10.84 percent at June 30, 2019. In addition, the company's Tier 1 capital ratio was 10.84 percent, total capital ratio was 12.34 percent, and leverage ratio was 8.75 percent at June 30, 2019. At March 31, 2019, the company's common equity Tier 1 capital ratio was 10.71 percent, Tier 1 capital ratio was 10.71 percent, total capital ratio was 12.24 percent, and leverage ratio was 8.76 percent.

The company's tangible common equity ratio, a non-GAAP measure, was 8.69 percent at June 30, 2019 and 8.64 percent at March 31, 2019. The tangible common equity ratio is primarily based on total shareholders' equity, which includes unrealized gains and losses on available for sale securities. The company has elected to exclude unrealized gains and losses from available for sale securities from its calculation of Tier 1 capital for regulatory capital purposes, consistent with the treatment under the previous capital rules.



Credit Quality

Nonperforming assets totaled $297 million or 1.33 percent of outstanding loans and repossessed assets at June 30, 2019, compared to $262 million or 1.20 percent at March 31, 2019. Nonperforming assets that are not guaranteed by U.S. government agencies totaled $194 million or 0.88 percent of outstanding loans and repossessed assets at June 30, 2019, compared to $163 million or 0.75 percent at March 31, 2019.

Nonaccruing loans were $184 million or 0.83 percent of outstanding loans at June 30, 2019. Nonaccruing commercial loans totaled $123 million or 0.86 percent of outstanding commercial loans. Nonaccruing commercial real estate loans totaled $22 million or 0.46 percent of outstanding commercial real estate loans. Nonaccruing residential mortgage loans totaled $38 million or 1.77 percent of outstanding residential mortgage loans.

Nonaccruing loans increased $31 million from March 31, 2019, primarily due to a $36 million increase in energy loans. Healthcare sector loans decreased $2.6 million. New nonaccruing loans identified in the second quarter totaled $54 million, offset by $7.1 million in payments received and $13 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 $161 million at June 30, compared to $169 million at March 31. The decrease was primarily due to energy and manufacturing loans, partially offset by an increase in other commercial and industrial loans and loans secured by multifamily commercial real estate.

Net charge-offs were $7.7 million or 0.14 percent of average loans on an annualized basis for the second quarter of 2019, compared to $10.1 million or 0.19 percent of average loans on an annualized basis for the first quarter of 2019. Net charge-offs were 0.20 percent of average loans over the last four quarters. Gross charge-offs were $13.2 million for the second quarter compared to $11.8 million for the previous quarter. Recoveries totaled $5.5 million for the second quarter of 2019 and $1.7 million for the first quarter of 2019.

Based on an evaluation of all credit factors, including overall loan portfolio growth, changes in nonaccruing and potential problem loans and net charge-offs, the company determined that a $5.0 million provision for credit losses was appropriate for the second quarter of 2019. The company recorded an $8.0 million provision for credit losses in the first quarter of 2019.

The combined allowance for credit losses totaled $204 million or 0.92 percent of outstanding loans and 115 percent of nonaccruing loans at June 30, 2019, excluding residential mortgage loans guaranteed by U.S. government agencies. Excluding loans acquired in the CoBiz acquisition, which are measured at acquisition-date fair value, the combined allowance for loan losses was 1.03 percent of outstanding loans and 126 percent of nonaccruing loans at June 30, 2019 compared to 1.09 percent of outstanding loans and 159 percent of nonaccruing loans at March 31, 2019. The allowance for loan losses was $203 million and the accrual for off-balance sheet credit losses was $1.9 million. At March 31, 2019, the combined allowance for credit losses was $207 million or 0.95 percent of outstanding loans and 142 percent of nonaccruing loans, excluding loans guaranteed by U.S. government agencies. The allowance for loan losses was $205 million and the accrual for off-balance sheet credit losses was $1.8 million.



Securities and Derivatives

The fair value of the available for sale securities portfolio totaled $10.5 billion at June 30, 2019, a $1.5 billion increase compared to March 31, 2019. At June 30, 2019, the available for sale securities portfolio consisted primarily of $7.4 billion of residential mortgage-backed securities fully backed by U.S. government agencies and $3.1 billion of commercial mortgage-backed securities fully backed by U.S. government agencies. At June 30, 2019, the available for sale securities portfolio had a net unrealized gain of $132 million compared to a $2.6 million net unrealized loss at March 31, 2019.

Trading securities decreased $240 million to $1.9 billion during the second quarter of 2019. The company holds an inventory of securities, predominately composed of U.S. agency residential mortgage-backed securities, in support of sales to a variety of customers, including banks, corporations, insurance companies, money managers, and others.

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 $431 million to $1.1 billion at June 30, 2019.

The net economic cost of the changes in fair value of mortgage servicing rights and related economic hedges was $7.3 million during the second quarter of 2019, including a $29.6 million decrease in the fair value of mortgage servicing rights, a $21.0 million increase in the fair value of securities and derivative contracts held as an economic hedge, and $1.3 million of related net interest revenue.



Commercial Banking

Net income for Commercial Banking was $106.9 million for the second quarter of 2019, an increase of $20.8 million over the first quarter of 2019. Net interest revenue increased $34.0 million largely as a result of the allocation of acquired loans to the business line during the second quarter.

Excluding acquired loans and deposits, average loans increased $347 million or 2 percent while average customer deposits increased $226 million or 2 percent. We continue to see a shift in the deposit mix from demand deposit balances to interest bearing deposit balances.

Fees and commissions revenue increased $3.1 million, primarily due to an increase in loan syndication fees based on the timing of completed transactions and increased transaction card revenues related to a seasonal increase in transaction volume. Operating expense increased $12.8 million primarily due to an increase in personnel expenses as a result of the allocation of CoBiz personnel to the business line.



Consumer Banking

Net income from Consumer Banking was $16.3 million in the second quarter of 2019, an increase of $1.0 million.

Net interest revenue from Consumer Banking activities increased $1.6 million largely due to an increase in interest earned on the fair value option portfolio combined with increased deposits sold to our Funds Management unit. Average loans increased $46 million or 3 percent and average deposits increased $454 million or 7 percent.

Revenues from mortgage banking activities increased $4.3 million over the prior quarter due to lower interest rates. Mortgage production volume increased $197 million or 32 percent and the gain on sale margin climbed to 1.46 percent from 1.28 percent. Deposit service charges also increased $1.1 million due to two more days in the quarter compared to the previous quarter.

Operating expenses increased $3.9 million, nearly all related to non-personnel expenses. Mortgage banking costs increased $1.6 million related to increased payoffs as mortgage interest rates declined during the quarter. Business promotion expense increased $1.6 million primarily due to additional brand marketing.



Wealth Management

Net income for Wealth Management increased $1.8 million to $25.5 million during the second quarter of 2019. An increase in brokerage and trading revenue was partially offset by a decrease in net interest revenue and an increase in operating expenses.

Brokerage and trading revenue increased $8.4 million due to an increase in trading activity and volumes as a result of favorable interest rate changes. This increase was partially offset by a decrease in interest received on trading securities and an increase in funding costs. Fiduciary and asset management revenue increased $3.4 million largely due to a seasonal increase related to tax fees collected in the second quarter as well as increased assets under management. Operating expenses increased $7.9 million, including $6.1 million related to personnel expenses and $1.9 million related to other operating expenses.

Average loans increased $199 million to $1.6 billion. Average deposits increased $561 million to $6.2 billion, primarily due to an increase in interest-bearing transaction account balances. Assets under management or administration were $81.8 billion at June 30, 2019 compared to $78.9 billion at March 31, 2019. Fiduciary assets totaled $49.3 billion at June 30, 2019 and $46.4 billion at March 31, 2019.



Conference Call and Webcast

The company will hold a conference call at 9 a.m. Central time on Wednesday, July 24, 2019 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 # 13692252.



About BOK Financial Corporation

BOK Financial Corporation is a $42 billion regional financial services company headquartered in Tulsa, Oklahoma with $82 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., The Milestone Group, Inc., CoBiz Wealth, LLC and BOK Financial Insurance, Inc. BOKF, NA operates TransFund, Cavanal Hill Investment Management and BOK Financial Asset Management, Inc. BOKF, NA operates banking divisions across eight states as: Bank of Albuquerque; Bank of Arkansas; Bank of Oklahoma; Bank of Texas; BOK Financial in Colorado and Arizona; and Mobank in Kansas and Missouri; as well as having limited purpose offices in Nebraska, Milwaukee and Connecticut. Through its subsidiaries, BOK Financial Corporation provides commercial and consumer banking, brokerage trading, investment, trust and insurance services, mortgage origination and servicing, and an electronic funds transfer network. For more information, visit www.bokf.com.

The company will continue to evaluate critical assumptions and estimates, such as the appropriateness of the allowance for credit losses and asset impairment as of June 30, 2019 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, the financial services industry and the economy generally. 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 BOK Financial's acquisitions, including its latest acquisition of CoBiz Financial, Inc., and other 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 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 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. There may also be difficulties and delays in integrating CoBiz Financial Inc.'s business or fully realizing cost savings and other benefits including, but

not limited to, business disruption and customer acceptance of BOK Financial Corporation's products and services. BOK Financial 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.

Exhibit 99(b)

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

	June 30, 2019			Mar. 31, 2019
ASSETS
Cash and due from banks	$	739,109		$	718,297
Interest-bearing cash and cash equivalents	596,382			564,404
Trading securities	1,900,395			2,140,326
Investment securities	327,677			331,466
Available for sale securities	10,514,414			9,025,198
Fair value option securities	1,138,819			707,994
Restricted equity securities	461,017			376,429
Residential mortgage loans held for sale	193,570			160,157
Loans:
Commercial	14,336,908			13,961,975
Commercial real estate	4,710,033			4,600,651
Residential mortgage	2,170,822			2,192,620
Personal	1,037,889			1,003,734
Total loans	22,255,652			21,758,980
Allowance for loan losses	(202,534		)	(205,340		)
Loans, net of allowance	22,053,118			21,553,640
Premises and equipment, net	468,368			468,293
Receivables	213,608			224,887
Goodwill	1,048,091			1,048,091
Intangible assets, net	124,473			129,482
Mortgage servicing rights	208,308			238,193
Real estate and other repossessed assets, net	16,940			17,139
Derivative contracts, net	415,221			359,223
Cash surrender value of bank-owned life insurance	384,193			384,174
Receivable on unsettled securities sales	583,421			966,455
Other assets	505,949			469,114
TOTAL ASSETS	$	41,893,073		$	39,882,962

LIABILITIES AND EQUITY
Deposits:
Demand	$	9,667,557		$	10,096,552
Interest-bearing transaction	12,851,943			12,476,977
Savings	557,683			559,884
Time	2,227,938			2,198,389
Total deposits	25,305,121			25,331,802
Funds purchased and repurchase agreements	2,331,947			1,439,673
Other borrowings	7,823,809			7,341,093
Subordinated debentures	275,892			275,880
Accrued interest, taxes and expense	181,413			173,434
Due on unsettled securities purchases	565,268			186,401
Derivative contracts, net	381,454			299,698
Other liabilities	309,694			303,272
TOTAL LIABILITIES	37,174,598			35,351,253
Shareholders' equity:
Capital, surplus and retained earnings	4,610,869			4,526,404
Accumulated other comprehensive gain (loss)	98,569			(3,531		)
TOTAL SHAREHOLDERS' EQUITY	4,709,438			4,522,873
Non-controlling interests	9,037			8,836
TOTAL EQUITY	4,718,475			4,531,709
TOTAL LIABILITIES AND EQUITY	$	41,893,073		$	39,882,962

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

	Three Months Ended
	June 30, 2019			Mar. 31, 2019			Dec. 31, 2018			Sept. 30, 2018			June 30, 2018
ASSETS
Interest-bearing cash and cash equivalents	$	535,491		$	537,903		$	563,132		$	688,872		$	1,673,387
Trading securities	1,757,335			1,968,399			1,929,601			1,762,794			1,482,302
Investment securities	328,482			343,282			364,737			379,566			399,088
Available for sale securities	9,435,668			8,883,054			8,704,963			8,129,214			8,163,142
Fair value option securities	898,772			594,349			277,575			469,398			487,192
Restricted equity securities	413,812			395,432			362,729			328,842			348,546
Residential mortgage loans held for sale	192,102			145,040			179,553			207,488			218,600
Loans:
Commercial	14,175,057			13,966,521			13,587,344			11,484,200			11,189,899
Commercial real estate	4,656,861			4,602,149			4,747,784			3,774,470			3,660,166
Residential mortgage	2,146,315			2,193,334			2,222,063			1,956,089			1,915,015
Personal	1,026,172			1,004,061			1,022,140			989,026			986,162
Total loans	22,004,405			21,766,065			21,579,331			18,203,785			17,751,242
Allowance for loan losses	(205,532		)	(206,092		)	(209,613		)	(214,160		)	(222,856		)
Total loans, net	21,798,873			21,559,973			21,369,718			17,989,625			17,528,386
Total earning assets	35,360,535			34,427,432			33,752,008			29,955,799			30,300,643
Cash and due from banks	703,294			705,411			731,700			578,905			571,333
Derivative contracts, net	328,802			262,927			299,319			294,126			318,375
Cash surrender value of bank-owned life insurance	384,974			382,538			379,893			322,038			319,507
Receivable on unsettled securities sales	1,437,462			1,224,700			799,548			768,785			618,240
Other assets	2,629,710			2,669,673			2,423,275			1,776,164			1,777,937
TOTAL ASSETS	$	40,844,777		$	39,672,681		$	38,385,743		$	33,695,817		$	33,906,035

LIABILITIES AND EQUITY
Deposits:
Demand	$	9,883,965		$	9,988,088		$	10,648,683		$	9,325,002		$	9,223,327
Interest-bearing transaction	12,512,282			11,931,539			11,773,651			10,010,031			10,189,354
Savings	558,738			541,575			526,275			503,821			503,671
Time	2,207,391			2,153,277			2,146,786			2,097,441			2,138,880
Total deposits	25,162,376			24,614,479			25,095,395			21,936,295			22,055,232
Funds purchased and repurchase agreements	2,066,950			2,033,036			1,205,568			1,193,583			593,250
Other borrowings	7,175,617			7,040,279			6,361,141			5,765,440			6,497,020
Subordinated debentures	275,887			275,882			276,378			144,702			144,692
Derivative contracts, net	283,484			273,786			268,848			185,029			235,543
Due on unsettled securities purchases	821,688			453,937			493,887			544,263			527,804
Other liabilities	460,732			501,788			341,438			311,605			340,322
TOTAL LIABILITIES	36,246,734			35,193,187			34,042,655			30,080,917			30,393,863
Total equity	4,598,043			4,479,494			4,343,088			3,614,900			3,512,172
TOTAL LIABILITIES AND EQUITY	$	40,844,777		$	39,672,681		$	38,385,743		$	33,695,817		$	33,906,035

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

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2019			2018			2019			2018

Interest revenue	$	390,820		$	294,180		$	766,894		$	559,587
Interest expense	105,388			55,618			203,360			101,289
Net interest revenue	285,432			238,562			563,534			458,298
Provision for credit losses	5,000			—			13,000			(5,000		)
Net interest revenue after provision for credit losses	280,432			238,562			550,534			463,298
Other operating revenue:
Brokerage and trading revenue	40,526			26,488			72,143			57,136
Transaction card revenue	21,915			20,975			42,653			41,965
Fiduciary and asset management revenue	45,025			41,692			88,383			83,524
Deposit service charges and fees	28,074			27,834			56,317			54,994
Mortgage banking revenue	28,131			26,346			51,965			52,371
Other revenue	12,437			13,923			25,199			26,882
Total fees and commissions	176,108			157,258			336,660			316,872
Other gains, net	3,480			4,578			6,456			3,286
Gain (loss) on derivatives, net	11,150			(3,057		)	15,817			(8,742		)
Gain (loss) on fair value option securities, net	9,853			(3,341		)	19,518			(20,905		)
Change in fair value of mortgage servicing rights	(29,555		)	1,723			(50,221		)	22,929
Gain (loss) on available for sale securities, net	1,029			(762		)	1,105			(1,052		)
Total other operating revenue	172,065			156,399			329,335			312,388
Other operating expense:
Personnel	160,342			138,947			329,570			278,894
Business promotion	10,142			7,686			18,016			13,696
Charitable contributions to BOKF Foundation	1,000			—			1,000			—
Professional fees and services	13,002			14,978			29,141			25,178
Net occupancy and equipment	26,880			22,761			56,401			46,807
Insurance	6,454			6,245			11,293			12,838
Data processing and communications	29,735			27,739			61,184			55,556
Printing, postage and supplies	4,107			4,011			8,992			8,100
Net losses and operating expenses of repossessed assets	580			2,722			2,576			10,427
Amortization of intangible assets	5,138			1,386			10,329			2,686
Mortgage banking costs	11,545			12,890			21,451			23,039
Other expense	8,212			7,111			14,341			13,685
Total other operating expense	277,137			246,476			564,294			490,906

Net income before taxes	175,360			148,485			315,575			284,780
Federal and state income taxes	37,580			33,330			67,530			64,278

Net income	137,780			115,155			248,045			220,502
Net gain (loss) attributable to non-controlling interests	217			783			(130		)	568
Net income attributable to BOK Financial Corporation shareholders	$	137,563		$	114,372		$	248,175		$	219,934

Average shares outstanding:
Basic	70,887,063			64,901,975			71,135,414			64,874,567
Diluted	70,902,033			64,937,226			71,151,558			64,912,552

Net income per share:
Basic	$	1.93		$	1.75		$	3.47		$	3.36
Diluted	$	1.93		$	1.75		$	3.46		$	3.36

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

	Three Months Ended
	June 30, 2019			Mar. 31, 2019			Dec. 31, 2018			Sept. 30, 2018			June 30, 2018
Capital:
Period-end shareholders' equity	$	4,709,438		$	4,522,873		$	4,432,109		$	3,615,032		$	3,553,431
Risk weighted assets	$	32,040,741		$	31,601,558		$	30,742,295		$	27,398,072		$	27,004,559
Risk-based capital ratios:
Common equity tier 1	10.84		%	10.71		%	10.92		%	12.07		%	11.92		%
Tier 1	10.84		%	10.71		%	10.92		%	12.07		%	11.92		%
Total capital	12.34		%	12.24		%	12.50		%	13.37		%	13.26		%
Leverage ratio	8.75		%	8.76		%	8.96		%	9.90		%	9.57		%
Tangible common equity ratio¹	8.69		%	8.64		%	8.82		%	9.55		%	9.21		%

Common stock:
Book value per share	$	66.15		$	63.30		$	61.45		$	55.25		$	54.30
Tangible book value per share	49.68			46.82			45.03			47.90			46.95
Market value per share:
High	$	88.17		$	93.72		$	98.29		$	105.22		$	106.65
Low	$	72.60		$	72.11		$	69.96		$	92.40		$	92.39
Cash dividends paid	$	35,631		$	35,885		$	35,977		$	32,591		$	29,340
Dividend payout ratio	25.90		%	32.44		%	33.17		%	27.79		%	25.65		%
Shares outstanding, net	71,198,270			71,449,982			72,122,932			65,434,258			65,439,090
Stock buy-back program:
Shares repurchased	250,000			705,609			525,000			—			8,257
Amount	$	20,125		$	60,577		$	45,057		$	—		$	824
Average price per share	$	80.50		$	85.85		$	85.82		$	—		$	99.84

Performance ratios (quarter annualized):
Return on average assets	1.35		%	1.13		%	1.12		%	1.38		%	1.35		%
Return on average equity	12.02		%	10.04		%	9.93		%	12.95		%	13.14		%
Net interest margin	3.30		%	3.30		%	3.40		%	3.21		%	3.17		%
Efficiency ratio	59.51		%	64.80		%	63.25		%	61.60		%	61.77		%

Reconciliation of non-GAAP measures:
¹ Tangible common equity ratio:
Total shareholders' equity	$	4,709,438		$	4,522,873		$	4,432,109		$	3,615,032		$	3,553,431
Less: Goodwill and intangible assets, net	1,172,564			1,177,573			1,184,112			480,800			481,366
Tangible common equity	$	3,536,874		$	3,345,300		$	3,247,997		$	3,134,232		$	3,072,065

Total assets	$	41,893,073		$	39,882,962		$	38,020,504		$	33,289,864		$	33,833,107
Less: Goodwill and intangible assets, net	1,172,564			1,177,573			1,184,112			480,800			481,366
Tangible assets	$	40,720,509		$	38,705,389		$	36,836,392		$	32,809,064		$	33,351,741

Tangible common equity ratio	8.69		%	8.64		%	8.82		%	9.55		%	9.21		%

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

	Three Months Ended
	June 30, 2019			Mar. 31, 2019			Dec. 31, 2018			Sept. 30, 2018			June 30, 2018
Other data:
Tax equivalent interest	$	3,481		$	2,529		$	3,067		$	1,894		$	1,983
Net unrealized gain (loss) on available for sale securities	$	131,780		$	(2,609	)	$	(95,271	)	$	(216,793	)	$	(180,602	)

Mortgage banking:
Mortgage production revenue	$	11,869		$	7,868		$	5,073		$	7,250		$	9,915

Mortgage loans funded for sale	$	729,841		$	510,527		$	497,353		$	651,076		$	773,910
Add: current period-end outstanding commitments	344,087			263,434			160,848			197,752			251,231
Less: prior period end outstanding commitments	263,434			160,848			197,752			251,231			298,318
Total mortgage production volume	$	810,494		$	613,113		$	460,449		$	597,597		$	726,823

Mortgage loan refinances to mortgage loans funded for sale	31		%	30		%	23		%	23		%	22		%
Gain on sale margin	1.46		%	1.28		%	1.10		%	1.21		%	1.36		%

Mortgage servicing revenue	$	16,262		$	15,966		$	16,807		$	16,286		$	16,431
Average outstanding principal balance of mortgage loans serviced for others	21,418,690			21,581,835			21,706,541			21,895,041			21,986,065
Average mortgage servicing revenue rates	0.30		%	0.30		%	0.31		%	0.30		%	0.30		%

Gain (loss) on mortgage servicing rights, net of economic hedge:
Gain (loss) on mortgage hedge derivative contracts, net	$	11,128		$	4,432		$	12,162		$	(2,843	)	$	(3,070	)
Gain (loss) on fair value option securities, net	9,853			9,665			(282		)	(4,385		)	(3,341		)
Gain (loss) on economic hedge of mortgage servicing rights	20,981			14,097			11,880			(7,228		)	(6,411		)
Gain (loss) on changes in fair value of mortgage servicing rights	(29,555		)	(20,666		)	(24,233		)	5,972			1,723
Loss on changes in fair value of mortgage servicing rights, net of economic hedges, included in other operating revenue	(8,574		)	(6,569		)	(12,353		)	(1,256		)	(4,688		)
Net interest revenue on fair value option securities²	1,296			1,129			695			1,100			1,203
Total economic cost of changes in the fair value of mortgage servicing rights, net of economic hedges	$	(7,278	)	$	(5,440	)	$	(11,658	)	$	(156	)	$	(3,485	)


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
	June 30, 2019			Mar. 31, 2019			Dec. 31, 2018			Sept. 30, 2018			June 30, 2018

Interest revenue	$	390,820		$	376,074		$	365,592		$	303,247		$	294,180
Interest expense	105,388			97,972			79,906			62,364			55,618
Net interest revenue	285,432			278,102			285,686			240,883			238,562
Provision for credit losses	5,000			8,000			9,000			4,000			—
Net interest revenue after provision for credit losses	280,432			270,102			276,686			236,883			238,562
Other operating revenue:
Brokerage and trading revenue	40,526			31,617			28,101			23,086			26,488
Transaction card revenue	21,915			20,738			20,664			21,396			20,975
Fiduciary and asset management revenue	45,025			43,358			43,665			57,514			41,692
Deposit service charges and fees	28,074			28,243			29,393			27,765			27,834
Mortgage banking revenue	28,131			23,834			21,880			23,536			26,346
Other revenue	12,437			12,762			16,404			12,900			13,923
Total fees and commissions	176,108			160,552			160,107			166,197			157,258
Other gains (losses), net	3,480			2,976			(8,305		)	2,754			4,578
Gain (loss) on derivatives, net	11,150			4,667			11,167			(2,847		)	(3,057		)
Gain (loss) on fair value option securities, net	9,853			9,665			(282		)	(4,385		)	(3,341		)
Change in fair value of mortgage servicing rights	(29,555		)	(20,666		)	(24,233		)	5,972			1,723
Gain (loss) on available for sale securities, net	1,029			76			(1,999		)	250			(762		)
Total other operating revenue	172,065			157,270			136,455			167,941			156,399
Other operating expense:
Personnel	160,342			169,228			160,706			143,531			138,947
Business promotion	10,142			7,874			9,207			7,620			7,686
Charitable contributions to BOKF Foundation	1,000			—			2,846			—			—
Professional fees and services	13,002			16,139			20,712			13,209			14,978
Net occupancy and equipment	26,880			29,521			27,780			23,394			22,761
Insurance	6,454			4,839			4,248			6,232			6,245
Data processing and communications	29,735			31,449			27,575			31,665			27,739
Printing, postage and supplies	4,107			4,885			5,232			3,837			4,011
Net losses and operating expenses of repossessed assets	580			1,996			2,581			4,044			2,722
Amortization of intangible assets	5,138			5,191			5,331			1,603			1,386
Mortgage banking costs	11,545			9,906			11,518			11,741			12,890
Other expense	8,212			6,129			6,907			5,741			7,111
Total other operating expense	277,137			287,157			284,643			252,617			246,476
Net income before taxes	175,360			140,215			128,498			152,207			148,485
Federal and state income taxes	37,580			29,950			20,121			34,662			33,330
Net income	137,780			110,265			108,377			117,545			115,155
Net income (loss) attributable to non-controlling interests	217			(347		)	(79		)	289			783
Net income attributable to BOK Financial Corporation shareholders	$	137,563		$	110,612		$	108,456		$	117,256		$	114,372

Average shares outstanding:
Basic	70,887,063			71,387,070			71,808,029			64,901,095			64,901,975
Diluted	70,902,033			71,404,388			71,833,334			64,934,351			64,937,226
Net income per share:
Basic	$	1.93		$	1.54		$	1.50		$	1.79		$	1.75
Diluted	$	1.93		$	1.54		$	1.50		$	1.79		$	1.75

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

	June 30, 2019		Mar. 31, 2019		Dec. 31, 2018		Sept. 30, 2018		June 30, 2018
Commercial:
Energy	$	3,921,353	$	3,705,099	$	3,590,333	$	3,294,867	$	3,147,219
Services	3,309,458		3,287,563		3,258,192		2,603,862		2,516,676
Healthcare	2,926,510		2,915,885		2,799,277		2,437,323		2,353,722
Wholesale/retail	1,793,118		1,706,900		1,621,158		1,650,729		1,699,554
Public finance	795,659		803,083		804,550		418,578		433,408
Manufacturing	761,357		742,374		730,521		660,582		647,816
Other commercial and industrial	829,453		801,071		832,047		510,160		550,644
Total commercial	14,336,908		13,961,975		13,636,078		11,576,101		11,349,039

Commercial real estate:
Multifamily	1,300,372		1,210,358		1,288,065		1,120,166		1,056,984
Office	1,056,306		1,033,158		1,072,920		824,829		820,127
Retail	825,399		890,685		919,082		759,423		768,024
Industrial	828,569		767,757		778,106		696,774		653,384
Residential construction and land development	141,509		149,686		148,584		101,872		118,999
Other commercial real estate	557,878		549,007		558,056		301,611		294,702
Total commercial real estate	4,710,033		4,600,651		4,764,813		3,804,675		3,712,220

Residential mortgage:
Permanent mortgage	1,088,370		1,098,481		1,122,610		1,094,926		1,068,412
Permanent mortgages guaranteed by U.S. government agencies	195,373		193,308		190,866		180,718		169,653
Home equity	887,079		900,831		916,557		696,098		704,185
Total residential mortgage	2,170,822		2,192,620		2,230,033		1,971,742		1,942,250

Personal	1,037,889		1,003,734		1,025,806		996,941		1,000,187

Total	$	22,255,652	$	21,758,980	$	21,656,730	$	18,349,459	$	18,003,696

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

	June 30, 2019		Mar. 31, 2019		Dec. 31, 2018		Sept. 30, 2018		June 30, 2018

Oklahoma:
Commercial	$	3,762,234	$	3,551,054	$	3,491,117	$	3,609,109	$	3,465,407
Commercial real estate	717,970		665,190		700,756		651,315		662,665
Residential mortgage	1,403,398		1,417,381		1,440,566		1,429,843		1,403,658
Personal	382,764		374,807		375,543		376,201		362,846
Total Oklahoma	6,266,366		6,008,432		6,007,982		6,066,468		5,894,576

Texas:
Commercial	5,877,265		5,754,018		5,438,133		5,115,646		4,922,451
Commercial real estate	1,341,609		1,344,810		1,341,783		1,354,679		1,336,101
Residential mortgage	272,878		265,927		266,805		253,265		243,400
Personal	400,585		396,794		394,743		381,452		394,021
Total Texas	7,892,337		7,761,549		7,441,464		7,105,042		6,895,973

New Mexico:
Commercial	350,520		342,915		340,489		325,048		305,167
Commercial real estate	385,058		371,416		383,670		392,494		386,878
Residential mortgage	82,390		85,326		87,346		88,110		90,581
Personal	10,236		11,065		10,662		11,659		11,107
Total New Mexico	828,204		810,722		822,167		817,311		793,733

Arkansas:
Commercial	87,896		79,286		111,338		102,237		93,217
Commercial real estate	149,300		142,551		141,898		106,701		90,807
Residential mortgage	7,463		7,731		7,537		7,278		6,927
Personal	11,208		11,550		11,955		12,126		12,331
Total Arkansas	255,867		241,118		272,728		228,342		203,282

Colorado:
Commercial	2,325,742		2,231,703		2,275,069		1,132,500		1,165,721
Commercial real estate	1,023,410		957,348		963,575		354,543		267,065
Residential mortgage	241,780		241,722		251,849		68,694		64,839
Personal	72,537		65,812		72,916		56,999		60,504
Total Colorado	3,663,469		3,496,585		3,563,409		1,612,736		1,558,129

Arizona:
Commercial	1,330,415		1,335,140		1,320,139		621,658		681,852
Commercial real estate	761,243		791,466		889,903		666,562		710,784
Residential mortgage	91,684		98,973		97,959		44,659		47,010
Personal	76,335		61,875		68,546		67,280		65,541
Total Arizona	2,259,677		2,287,454		2,376,547		1,400,159		1,505,187

Kansas/Missouri:
Commercial	602,836		667,859		659,793		669,903		715,224
Commercial real estate	331,443		327,870		343,228		278,381		257,920
Residential mortgage	71,229		75,560		77,971		79,893		85,835
Personal	84,224		81,831		91,441		91,224		93,837
Total Kansas/Missouri	1,089,732		1,153,120		1,172,433		1,119,401		1,152,816

TOTAL BOK FINANCIAL	$	22,255,652	$	21,758,980	$	21,656,730	$	18,349,459	$	18,003,696

Loans attributed to a geographical region may not always represent the location of the borrower or the collateral.

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

	June 30, 2019		Mar. 31, 2019		Dec. 31, 2018		Sept. 30, 2018		June 30, 2018
Oklahoma:
Demand	$	3,279,359	$	3,432,239	$	3,610,593	$	3,564,307	$	3,867,934
Interest-bearing:
Transaction	7,020,484		6,542,548		6,445,831		6,010,972		5,968,459
Savings	307,785		309,875		288,210		288,080		289,202
Time	1,253,804		1,217,371		1,118,643		1,128,810		1,207,471
Total interest-bearing	8,582,073		8,069,794		7,852,684		7,427,862		7,465,132
Total Oklahoma	11,861,432		11,502,033		11,463,277		10,992,169		11,333,066

Texas:
Demand	2,974,005		2,966,743		3,291,433		3,357,669		3,321,980
Interest-bearing:
Transaction	2,453,619		2,385,305		2,295,169		2,182,114		2,169,155
Savings	103,125		101,849		99,624		97,909		97,809
Time	425,253		419,269		423,880		453,119		445,500
Total interest-bearing	2,981,997		2,906,423		2,818,673		2,733,142		2,712,464
Total Texas	5,956,002		5,873,166		6,110,106		6,090,811		6,034,444

New Mexico:
Demand	630,861		662,362		691,692		722,188		770,974
Interest-bearing:
Transaction	557,881		573,203		571,347		593,760		586,593
Savings	62,636		61,497		58,194		57,794		59,415
Time	232,569		228,212		224,515		221,513		212,689
Total interest-bearing	853,086		862,912		854,056		873,067		858,697
Total New Mexico	1,483,947		1,525,274		1,545,748		1,595,255		1,629,671

Arkansas:
Demand	29,176		31,624		36,800		36,579		39,896
Interest-bearing:
Transaction	148,485		147,964		91,593		128,001		143,298
Savings	1,783		1,785		1,632		1,826		1,885
Time	7,810		8,321		8,726		10,214		10,771
Total interest-bearing	158,078		158,070		101,951		140,041		155,954
Total Arkansas	187,254		189,694		138,751		176,620		195,850

Colorado:
Demand	1,621,820		1,897,547		1,658,473		593,442		529,912
Interest-bearing:
Transaction	1,800,271		1,844,632		1,899,203		622,520		701,362
Savings	57,263		58,919		57,289		40,308		38,176
Time	246,198		261,235		274,877		217,628		208,049
Total interest-bearing	2,103,732		2,164,786		2,231,369		880,456		947,587
Total Colorado	3,725,552		4,062,333		3,889,842		1,473,898		1,477,499

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

	June 30, 2019		Mar. 31, 2019		Dec. 31, 2018		Sept. 30, 2018		June 30, 2018
Arizona:
Demand	700,480		695,238		707,402		365,878		383,627
Interest-bearing:
Transaction	560,429		621,735		575,567		130,105		193,687
Savings	11,966		12,144		10,545		3,559		3,935
Time	43,099		44,004		43,051		23,927		22,447
Total interest-bearing	615,494		677,883		629,163		157,591		220,069
Total Arizona	1,315,974		1,373,121		1,336,565		523,469		603,696

Kansas/Missouri:
Demand	431,856		410,799		418,199		423,560		459,636
Interest-bearing:
Transaction	310,774		361,590		327,866		322,747		401,545
Savings	13,125		13,815		13,721		13,125		13,052
Time	19,205		19,977		19,688		20,635		20,805
Total interest-bearing	343,104		395,382		361,275		356,507		435,402
Total Kansas/Missouri	774,960		806,181		779,474		780,067		895,038

TOTAL BOK FINANCIAL	$	25,305,121	$	25,331,802	$	25,263,763	$	21,632,289	$	22,169,264

NET INTEREST MARGIN TREND -- UNAUDITED BOK FINANCIAL CORPORATION

	Three Months Ended
	June 30, 2019		Mar. 31, 2019		Dec. 31, 2018		Sept. 30, 2018		June 30, 2018

TAX-EQUIVALENT ASSETS YIELDS
Interest-bearing cash and cash equivalents	2.57	%	2.56	%	2.23	%	1.98	%	1.86	%
Trading securities	3.59	%	3.88	%	4.10	%	3.98	%	3.63	%
Investment securities	4.41	%	4.50	%	4.26	%	4.06	%	3.95	%
Available for sale securities	2.63	%	2.57	%	2.51	%	2.37	%	2.30	%
Fair value option securities	3.34	%	3.62	%	3.56	%	3.25	%	3.16	%
Restricted equity securities	6.30	%	6.42	%	6.39	%	6.36	%	6.21	%
Residential mortgage loans held for sale	3.65	%	4.58	%	4.00	%	4.27	%	4.28	%
Loans	5.39	%	5.26	%	5.09	%	4.80	%	4.80	%
Allowance for loan losses
Loans, net of allowance	5.45	%	5.31	%	5.14	%	4.86	%	4.86	%
Total tax-equivalent yield on earning assets	4.51	%	4.46	%	4.33	%	4.04	%	3.91	%

COST OF INTEREST-BEARING LIABILITIES
Interest-bearing deposits:
Interest-bearing transaction	1.04	%	0.94	%	0.79	%	0.67	%	0.55	%
Savings	0.12	%	0.12	%	0.11	%	0.09	%	0.08	%
Time	1.90	%	1.80	%	1.54	%	1.40	%	1.29	%
Total interest-bearing deposits	1.13	%	1.04	%	0.87	%	0.77	%	0.66	%
Funds purchased and repurchase agreements	2.08	%	2.07	%	1.36	%	1.25	%	0.53	%
Other borrowings	2.67	%	2.68	%	2.51	%	2.20	%	1.96	%
Subordinated debt	5.53	%	5.51	%	5.38	%	5.55	%	5.67	%
Total cost of interest-bearing liabilities	1.70	%	1.66	%	1.42	%	1.25	%	1.11	%
Tax-equivalent net interest revenue spread	2.81	%	2.80	%	2.91	%	2.79	%	2.80	%
Effect of noninterest-bearing funding sources and other	0.49	%	0.50	%	0.49	%	0.42	%	0.37	%
Tax-equivalent net interest margin	3.30	%	3.30	%	3.40	%	3.21	%	3.17	%

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
	June 30, 2019		Mar. 31, 2019		Dec. 31, 2018		Sept. 30, 2018		June 30, 2018
Nonperforming assets:
Nonaccruing loans:
Commercial	$	123,395	$	90,358	$	99,841	$	109,490	$	120,978
Commercial real estate	21,670		21,508		21,621		1,316		1,996
Residential mortgage	38,477		40,409		41,555		41,917		42,343
Personal	237		302		230		269		340
Total nonaccruing loans	183,779		152,577		163,247		152,992		165,657
Accruing renegotiated loans guaranteed by U.S. government agencies	95,989		91,787		86,428		83,347		75,374
Real estate and other repossessed assets	16,940		17,139		17,487		24,515		27,891
Total nonperforming assets	$	296,708	$	261,503	$	267,162	$	260,854	$	268,922
Total nonperforming assets excluding those guaranteed by U.S. government agencies	$	193,976	$	162,770	$	173,602	$	169,717	$	185,981

Nonaccruing loans by loan class:
Commercial:
Energy	$	71,632	$	35,332	$	47,494	$	54,033	$	65,597
Services	10,087		9,555		8,567		4,097		4,377
Healthcare	16,148		18,768		16,538		15,704		16,125
Manufacturing	8,613		9,548		8,919		9,202		2,991
Wholesale/retail	1,390		1,425		1,316		9,249		14,095
Public finance	—		—		—		—		—
Other commercial and industrial	15,525		15,730		17,007		17,205		17,793
Total commercial	123,395		90,358		99,841		109,490		120,978
Commercial real estate:
Retail	20,057		20,159		20,279		777		1,068
Residential construction and land development	350		350		350		350		350
Multifamily	275		—		301		—		—
Office	855		855		—		—		275
Industrial	—		—		—		—		—
Other commercial real estate	133		144		691		189		303
Total commercial real estate	21,670		21,508		21,621		1,316		1,996
Residential mortgage:
Permanent mortgage	21,803		22,937		23,951		22,855		23,105
Permanent mortgage guaranteed by U.S. government agencies	6,743		6,946		7,132		7,790		7,567
Home equity	9,931		10,526		10,472		11,272		11,671
Total residential mortgage	38,477		40,409		41,555		41,917		42,343
Personal	237		302		230		269		340
Total nonaccruing loans	$	183,779	$	152,577	$	163,247	$	152,992	$	165,657

CREDIT QUALITY INDICATORS -- UNAUDITED BOK FINANCIAL CORPORATION (in thousands, except ratios)

	Three Months Ended
	June 30, 2019			Mar. 31, 2019			Dec. 31, 2018			Sept. 30, 2018			June 30, 2018

Performing loans 90 days past due¹	$	2,698		$	610		$	1,338		$	518		$	879

Gross charge-offs	$	13,227		$	11,775		$	14,515		$	11,073		$	15,105
Recoveries	(5,503		)	(1,689		)	(2,168		)	(2,092		)	(4,578		)
Net charge-offs	$	7,724		$	10,086		$	12,347		$	8,981		$	10,527

Provision for credit losses	$	5,000		$	8,000		$	9,000		$	4,000		$	—

Allowance for loan losses to period end loans	0.91		%	0.94		%	0.96		%	1.15		%	1.19		%
Combined allowance for credit losses to period end loans	0.92		%	0.95		%	0.97		%	1.16		%	1.21		%
Nonperforming assets to period end loans and repossessed assets	1.33		%	1.20		%	1.23		%	1.42		%	1.49		%
Net charge-offs (annualized) to average loans	0.14		%	0.19		%	0.23		%	0.20		%	0.24		%
Allowance for loan losses to nonaccruing loans¹	114.40		%	141.00		%	132.89		%	145.02		%	136.09		%
Combined allowance for credit losses to nonaccruing loans¹	115.48		%	142.25		%	134.03		%	146.41		%	137.63		%


¹	Excludes residential mortgage loans guaranteed by agencies of the U.S. government.

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

	Three Months Ended						Change
Commercial Banking	June 30, 2019		Mar. 31, 2019		June 30, 2018		2Q19 vs 1Q19		2Q19 vs 2Q18
Net interest revenue	$	185,610	$	151,648	$	145,025	22.4	%	28.0	%
Fees and commissions revenue	41,105		38,046		42,874		8.0	%	(4.1	)%
Other operating expense	62,947		50,177		49,386		25.4	%	27.5	%
Corporate expense allocations	11,384		10,148		9,366		12.2	%	21.5	%
Net income	106,932		86,143		87,577		24.1	%	22.1	%

Average assets	22,910,071		19,936,895		18,072,155		14.9	%	26.8	%
Average loans	18,812,800		15,988,843		14,900,918		17.7	%	26.3	%
Average deposits	10,724,206		8,261,543		8,379,584		29.8	%	28.0	%

Consumer Banking
Net interest revenue	$	52,717	$	51,102	$	39,295	3.2	%	34.2	%
Fees and commissions revenue	48,830		42,821		46,332		14.0	%	5.4	%
Other operating expense	57,694		53,821		61,146		7.2	%	(5.6	)%
Corporate expense allocations	11,695		11,900		11,042		(1.7	)%	5.9	%
Net income	16,344		15,337		5,793		6.6	%	182.1	%

Average assets	9,212,667		8,371,683		8,353,558		10.0	%	10.3	%
Average loans	1,796,823		1,750,642		1,716,259		2.6	%	4.7	%
Average deposits	6,998,677		6,544,665		6,579,635		6.9	%	6.4	%

Wealth Management
Net interest revenue	$	26,943	$	28,256	$	28,986	(4.6	)%	(7.0	)%
Fees and commissions revenue	85,925		73,256		70,489		17.3	%	21.9	%
Other operating expense	69,452		61,507		61,491		12.9	%	12.9	%
Corporate expense allocations	9,168		8,360		11,142		9.7	%	(17.7	)%
Net income	25,545		23,719		20,119		7.7	%	27.0	%

Average assets	9,849,396		9,328,986		8,495,557		5.6	%	15.9	%
Average loans	1,647,680		1,448,718		1,413,170		13.7	%	16.6	%
Average deposits	6,220,848		5,659,771		5,834,669		9.9	%	6.6	%
Fiduciary assets	49,296,896		46,401,149		46,531,900		6.2	%	5.9	%
Assets under management or administration	81,774,602		78,852,284		78,873,446		3.7	%	3.7	%

Acquired assets and liabilities were allocated to segments in the second quarter of 2019.