Exhibit

EX-99 2 a20190930bokfex99.htm EXHIBIT 99 Exhibit

Exhibit 99(a)

NASD: BOKF

BOK Financial Reports Record Earnings for Second Straight Quarter

$142 million or $2.00 Per Share in the Third Quarter

CEO Commentary

“The third quarter was the second-consecutive record quarter for BOK Financial,” said Steven G. Bradshaw, president and chief executive officer. “It was a quarter that really illustrated the value of having an optimum balance between our banking and fee service businesses. This balance benefits our clients in a meaningful way as we are able to serve a broader spectrum of their needs, while reducing earnings volatility for shareholders. Our results suggest that our entire team is executing at a very high level.”

Bradshaw continued, “This counter-cyclical strength, combined with continued expense management and sound credit underwriting discipline, positions us well for the remainder of 2019 and into 2020.”



Third Quarter 2019 Financial Highlights	Third Quarter 2019 Business Segment Highlights


•	Net income was $142.2 million or $2.00 per diluted share for the third quarter of 2019 and $137.6 million or $1.93 per diluted share for the second quarter of 2019.


•	Net interest revenue totaled $279.1 million, a decrease of $6.3 million. Net interest margin was 3.01 percent compared to 3.30 percent in the second quarter of 2019. Falling interest rates compressed the net interest margin by 9 basis points.


•	Fees and commissions revenue totaled $186.1 million, an increase of $10.0 million. Falling interest rates led to growth in brokerage and trading revenue and mortgage banking revenue.


•	Operating expense increased $2.2 million to $279.3 million. Personnel expense increased $2.2 million while non-personnel expense was consistent with the second quarter of 2019.


•	A $12.0 million provision for credit losses was recorded in the third quarter of 2019. The combined allowance for credit losses totaled $206 million or 0.92 percent of outstanding loans compared to $204 million or 0.92 percent in the previous quarter.


•	Average loans increased $409 million to $22.4 billion. Period-end loans increased $30 million to $22.3 billion. Average deposits increased $538 million to $25.7 billion. Period-end deposits increased $862 million.


•	Income tax expense decreased $5.2 million during the third quarter primarily due to completion of 2018 tax filings and tax credit projects.

Commercial Banking


•	Contributed $101.6 million to net income, a decrease of $5.4 million compared to the prior quarter. Net interest revenue decreased by $5.5 million. Fee revenue increased $5.1 million, offset by an increase in operating expense of $5.7 million.


•	Average loans grew by $414 million and average deposits increased $109 million.

Consumer Banking


•	Contributed $16.6 million to net income, consistent with the second quarter. Net interest revenue decreased $4.3 million, fee revenue increased $2.6 million and operating expense increased $2.0 million.


•	The recent decrease in mortgage interest rates continues to drive mortgage origination activity. Mortgage production volume increased $102 million to $913 million and gain on sale margin increased 5 basis points to 1.51 percent.

Wealth Management


•	Contributed $23.2 million to net income, a decrease of $2.3 million compared to the prior quarter. Net interest revenue decreased $3.9 million, fees and commissions revenue increased $3.5 million and operating expense increased $2.2 million.


•	Assets under management or administration were $80.8 billion at September 30, 2019 compared to $81.8 billion at June 30, 2019. Fiduciary assets totaled $49.3 billion at September 30, 2019 and $49.3 billion at June 30, 2019.



Net Interest Revenue

Net interest revenue was $279.1 million for the third quarter of 2019, a $6.3 million decrease compared to the second quarter of 2019. Discount accretion on acquired loans totaled $10.9 million for the third quarter and $13.4 million for the second quarter. Recoveries of foregone interest on nonaccruing loans added $3.4 million to the second quarter of 2019.

Average earning assets increased $2.3 billion compared to the second quarter of 2019. Available for sale securities increased $1.3 billion during the third quarter as the balance sheet was repositioned to reduce the Company's exposure to further interest rate decreases. Fair value option securities balances, which we use as an economic hedge against changes in the fair value of mortgage servicing rights, increased $655 million. Average loan balances were up $409 million. Growth in average earning assets was largely funded by a $2.0 billion increase in borrowed funds and a $662 million increase in interest-bearing deposits.

Net interest margin was 3.01 percent compared to 3.30 percent in the previous quarter. Net interest margin was reduced 9 basis points due to available for sale securities expansion and 4 basis points due to the increase in the fair value hedge portfolio. In addition, lower foregone interest recoveries and discount accretion reduced net interest margin by 7 basis points. Falling interest rates compressed the net interest margin by an additional 9 basis points.

Excluding interest recoveries, the yield on average earning assets was 4.25 percent, a 22 basis point decrease from the second quarter. The loan portfolio yield was 5.12 percent, down 21 basis points. The yield on the available for sale securities portfolio decreased 3 basis points to 2.60 percent.

Funding costs were 1.68 percent, down 2 basis points. The cost of interest-bearing deposits increased 4 basis points to 1.17 percent. The cost of other borrowed funds was down 22 basis points to 2.31 percent. The benefit to net interest margin from assets funded by non-interest liabilities decreased 5 basis points to 44 basis points.



Fees and Commissions Revenue

Fees and commissions revenue totaled $186.1 million for the third quarter of 2019, an increase of $10.0 million over the second quarter of 2019.

Brokerage and trading revenue increased $3.3 million primarily due to higher trading volume and loan syndication activity. Mortgage banking revenue increased $2.0 million. A continued decline in primary mortgage interest rates increased mortgage loan production. Mortgage production volume increased $102 million and the gain on sale margin increased 5 basis points over the second quarter of 2019.

Other revenue increased $5.2 million. This increase is largely due to the combination of an increase in repossessed asset revenue from a certain set of oil and gas properties, which is offset by an increase in related operating expenses, a business insurance credit, and other timing variances.

Fiduciary and asset management revenue decreased $1.4 million compared to the second quarter of 2019, primarily due to seasonal tax fees earned in the second quarter.



Operating Expense

Total operating expense was $279.3 million for the third quarter of 2019, an increase of $2.2 million over the second quarter of 2019.

Personnel expense increased $2.2 million. Incentive compensation increased $5.5 million led by an increase in cash based incentive compensation primarily due to increased sales activities in wealth management and commercial banking. Increased incentive compensation was partially offset by a decrease in regular compensation of $1.2 million and employee benefits of $2.0 million. Employee benefits expense was down largely due to a seasonal decrease in payroll taxes.

Non-personnel expense was largely unchanged in total compared to the second quarter of 2019. Mortgage banking costs increased $3.4 million primarily due to an increase in amortization of mortgage servicing rights as lower interest rates drive an increase in prepayment speeds. In addition, data processing and communications expense increased $2.2 million. Net losses and expenses of repossessed assets increased $1.1 million.

Insurance expense decreased $2.2 million, other expense decreased $1.9 million, and business promotion expense decreased $1.3 million, all following higher activity in the second quarter of 2019 largely related to the CoBiz acquisition.



Income Taxes

The effective tax rate was 18.6 percent for the third quarter of 2019, down from 21.4 percent for the second quarter of 2019. Tax expense for the third quarter of 2019 included $5.2 million of benefits related to completion of 2018 tax returns for the Company and CoBiz, and the finalization of tax credit projects.



Loans, Deposits and Capital

Loans

Outstanding loans were $22.3 billion at September 30, 2019, up $30 million over June 30, 2019. Growth in commercial and personal loans was partially offset by a decrease in commercial real estate and residential mortgage loans.

Outstanding commercial loan balances grew by $88 million or 1 percent over June 30, 2019. Energy loan balances were up $193 million. Healthcare loans increased $106 million and wholesale/retail sector loans increased $55 million. Other commercial and industrial loans decreased $110 million, manufacturing loans decreased $63 million and public finance loans decreased by $51 million.

Commercial real estate loan balances decreased $84 million or 2 percent compared to June 30, 2019. Loans secured by industrial properties increased $45 million. Loans secured by multifamily residential properties increased $24 million. Other real estate loans decreased $79 million. Loans secured by office buildings decreased $42 million and loans secured by retail properties decreased $26 million.

Deposits

Period-end deposits totaled $26.2 billion at September 30, 2019, an $862 million increase over June 30, 2019. Interest-bearing transaction account balances grew by $670 million and demand deposit balances increased $177 million. Average deposits were $25.7 billion at September 30, 2019, an increase of $538 million compared to June 30, 2019. Total interest-bearing transaction deposits increased $619 million, partially offset by a decrease in demand deposits of $124 million.

Capital

The company's common equity Tier 1 capital ratio was 11.06 percent at September 30, 2019. In addition, the company's Tier 1 capital ratio was 11.06 percent, total capital ratio was 12.56 percent, and leverage ratio was 8.41 percent at September 30, 2019. At June 30, 2019, the company's common equity Tier 1 capital ratio was 10.84 percent, Tier 1 capital ratio was 10.84 percent, total capital ratio was 12.34 percent, and leverage ratio was 8.75 percent.

The company's tangible common equity ratio, a non-GAAP measure, was 8.72 percent at September 30, 2019 and 8.69 percent at June 30, 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.

The company repurchased 336,713 shares at an average price of $77.03 per share in the third quarter of 2019 and 250,000 shares at an average price of $80.50 in the second quarter of 2019.



Credit Quality

Nonperforming assets totaled $286 million or 1.28 percent of outstanding loans and repossessed assets at September 30, 2019, compared to $297 million or 1.33 percent at June 30, 2019. Nonperforming assets that are not guaranteed by U.S. government agencies totaled $187 million or 0.85 percent of outstanding loans and repossessed assets at September 30, 2019, compared to $194 million or 0.88 percent at June 30, 2019.

Nonaccruing loans were $172 million or 0.77 percent of outstanding loans at September 30, 2019. Nonaccruing commercial loans totaled $112 million or 0.77 percent of outstanding commercial loans. Nonaccruing commercial real estate loans totaled $23 million or 0.50 percent of outstanding commercial real estate loans. Nonaccruing residential mortgage loans totaled $37 million or 1.76 percent of outstanding residential mortgage loans.

Nonaccruing loans decreased $11 million from June 30, 2019, primarily due to a $15 million decrease in other commercial and industrial loans and a $10 million decrease in healthcare sector loans. Nonaccruing energy loans increased $17 million. New nonaccruing loans identified in the third quarter totaled $36 million, offset by $28 million in payments received and $12 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 $143 million at September 30, compared to $161 million at June 30. The decrease largely resulted from energy,

wholesale/retail sector and other commercial and industrial loans, partially offset by an increase in services and healthcare sector loans.

Net charge-offs were $10.6 million or 0.19 percent of average loans on an annualized basis for the third quarter of 2019, compared to $7.7 million or 0.14 percent of average loans on an annualized basis for the second quarter of 2019. Net charge-offs were 0.21 percent of average loans over the last four quarters. Gross charge-offs were $11.7 million for the third quarter compared to $13.2 million for the previous quarter. Recoveries totaled $1.1 million for the third quarter of 2019 and $5.5 million for the second quarter of 2019.

Based on an evaluation of all credit factors, including growth in the originated loan portfolio, changes in nonaccruing and potential problem loans and net charge-offs, the company determined that a $12.0 million provision for credit losses was appropriate for the third quarter of 2019. The company recorded a $5.0 million provision for credit losses in the second quarter of 2019.

The combined allowance for credit losses totaled $206 million or 0.92 percent of outstanding loans and 124 percent of nonaccruing loans at September 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 1.02 percent of outstanding loans and 130 percent of nonaccruing loans at September 30, 2019 compared to 1.03 percent of outstanding loans and 126 percent of nonaccruing loans at June 30, 2019. The allowance for loan losses was $204 million and the accrual for off-balance sheet credit losses was $1.4 million. At June 30, 2019, the combined allowance for credit losses was $204 million or 0.92 percent of outstanding loans and 115 percent of nonaccruing loans, excluding loans guaranteed by U.S. government agencies. The allowance for loan losses was $203 million and the accrual for off-balance sheet credit losses was $1.9 million.



Securities and Derivatives

The fair value of the available for sale securities portfolio totaled $11.0 billion at September 30, 2019, a $510 million increase compared to June 30, 2019. At September 30, 2019, the available for sale securities portfolio consisted primarily of $7.7 billion of residential mortgage-backed securities fully backed by U.S. government agencies and $3.2 billion of commercial mortgage-backed securities fully backed by U.S. government agencies. At September 30, 2019, the available for sale securities portfolio had a net unrealized gain of $178 million compared to $132 million at June 30, 2019.

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 $678 million to $1.8 billion at September 30, 2019.

The net economic cost of the changes in fair value of mortgage servicing rights and related economic hedges was $3.0 million during the third quarter of 2019, including a $12.6 million decrease in the fair value of mortgage servicing rights, an $8.3 million increase in the fair value of securities and derivative contracts held as an economic hedge, and $1.2 million of related net interest revenue.



Commercial Banking

Net income for Commercial Banking was $101.6 million for the third quarter of 2019, a decrease of $5.4 million compared to the second quarter of 2019.

Net interest revenue decreased $5.5 million largely as a result of a decrease in interest recoveries on loans paired with a change in the mix of deposits from non-interest bearing to interest bearing. Average loans increased $414 million or 2 percent while average customer deposits increased $109 million or 1 percent.

Fees and commissions revenue increased $5.1 million over the second quarter of 2019. Loan syndication revenue increased $1.9 million based on the timing of completed transactions. Operating expense increased $5.7 million. Personnel expense increased $1.4 million primarily due to incentive compensation related to syndication activity. Non-personnel expense increased $4.3 million. Other revenue increased $3.3 million, offset by an increase in repossession expense of $2.4 million, largely due to expenses related to repossessed assets on certain oil and gas properties.



Consumer Banking

Net income from Consumer Banking was $16.6 million in the third quarter of 2019, consistent with the second quarter of 2019.

Net interest revenue from Consumer Banking activities decreased $4.3 million largely due to decrease in the yield on deposits sold to our Funds Management unit. Average loans decreased $23 million or 1 percent and average deposits were relatively consistent with the previous quarter.

Revenues from mortgage banking activities increased $2.0 million over the prior quarter due to lower interest rates which have led to an increase in mortgage production and improved gain on sale margin.

Operating expenses increased $2.0 million. Mortgage banking costs increased $3.4 million related to increased payoffs as mortgage interest rates declined during the quarter. This increase was partially offset by a decrease in business promotion expense and personnel expense.



Wealth Management

Net income for Wealth Management decreased $2.3 million to $23.2 million during the third quarter of 2019.

Net interest revenue decreased $3.9 million primarily due to a change in deposit mix to interest bearing deposits along with an increase in unsettled securities receivables. Brokerage and trading revenue increased $3.0 million due to higher trading activity and volumes as a result of interest rate changes. Operating expenses increased $2.2 million, largely related to an increase in incentive compensation.

Average loans increased $23 million to $1.7 billion. Average deposits increased $369 million to $6.6 billion, primarily due to an increase in interest-bearing transaction account balances. Assets under management or administration were $80.8 billion at September 30, 2019 compared to $81.8 billion at June 30, 2019. Fiduciary assets totaled $49.3 billion at September 30, 2019 and $49.3 billion at June 30, 2019.



Conference Call and Webcast

The company will hold a conference call at 9 a.m. Central time on Wednesday, October 23, 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 # 13695151.



About BOK Financial Corporation

BOK Financial Corporation is a $43 billion regional financial services company headquartered in Tulsa, Oklahoma with $81 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 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 September 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)

	Sept. 30, 2019			June 30, 2019
ASSETS
Cash and due from banks	$	761,130		$	739,109
Interest-bearing cash and cash equivalents	465,458			596,382
Trading securities	1,675,212			1,900,395
Investment securities	304,224			327,677
Available for sale securities	11,024,551			10,514,414
Fair value option securities	1,816,398			1,138,819
Restricted equity securities	479,018			461,017
Residential mortgage loans held for sale	282,487			193,570
Loans:
Commercial	14,424,625			14,336,908
Commercial real estate	4,626,057			4,710,033
Residential mortgage	2,117,303			2,170,822
Personal	1,117,382			1,037,889
Total loans	22,285,367			22,255,652
Allowance for loan losses	(204,432		)	(202,534		)
Loans, net of allowance	22,080,935			22,053,118
Premises and equipment, net	516,597			468,368
Receivables	219,420			213,608
Goodwill	1,048,091			1,048,091
Intangible assets, net	124,320			124,473
Mortgage servicing rights	193,661			208,308
Real estate and other repossessed assets, net	21,026			16,940
Derivative contracts, net	352,019			415,221
Cash surrender value of bank-owned life insurance	387,035			384,193
Receivable on unsettled securities sales	904,630			583,421
Other assets	470,993			505,949
TOTAL ASSETS	$	43,127,205		$	41,893,073

LIABILITIES AND EQUITY
Deposits:
Demand	$	9,844,397		$	9,667,557
Interest-bearing transaction	13,521,545			12,851,943
Savings	557,593			557,683
Time	2,243,541			2,227,938
Total deposits	26,167,076			25,305,121
Funds purchased and repurchase agreements	3,413,051			2,331,947
Other borrowings	6,822,334			7,823,809
Subordinated debentures	275,909			275,892
Accrued interest, taxes and expense	218,775			181,413
Due on unsettled securities purchases	703,448			565,268
Derivative contracts, net	336,791			381,454
Other liabilities	352,156			309,694
TOTAL LIABILITIES	38,289,540			37,174,598
Shareholders' equity:
Capital, surplus and retained earnings	4,695,263			4,610,869
Accumulated other comprehensive gain	133,753			98,569
TOTAL SHAREHOLDERS' EQUITY	4,829,016			4,709,438
Non-controlling interests	8,649			9,037
TOTAL EQUITY	4,837,665			4,718,475
TOTAL LIABILITIES AND EQUITY	$	43,127,205		$	41,893,073

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

	Three Months Ended
	Sept. 30, 2019			June 30, 2019			Mar. 31, 2019			Dec. 31, 2018			Sept. 30, 2018
ASSETS
Interest-bearing cash and cash equivalents	$	500,823		$	535,491		$	537,903		$	563,132		$	688,872
Trading securities	1,696,568			1,757,335			1,968,399			1,929,601			1,762,794
Investment securities	308,090			328,482			343,282			364,737			379,566
Available for sale securities	10,747,439			9,435,668			8,883,054			8,704,963			8,129,214
Fair value option securities	1,553,879			898,772			594,349			277,575			469,398
Restricted equity securities	476,781			413,812			395,432			362,729			328,842
Residential mortgage loans held for sale	203,319			192,102			145,040			179,553			207,488
Loans:
Commercial	14,507,185			14,175,057			13,966,521			13,587,344			11,484,200
Commercial real estate	4,652,534			4,656,861			4,602,149			4,747,784			3,774,470
Residential mortgage	2,129,421			2,146,315			2,193,334			2,222,063			1,956,089
Personal	1,123,778			1,026,172			1,004,061			1,022,140			989,026
Total loans	22,412,918			22,004,405			21,766,065			21,579,331			18,203,785
Allowance for loan losses	(201,714		)	(205,532		)	(206,092		)	(209,613		)	(214,160		)
Total loans, net	22,211,204			21,798,873			21,559,973			21,369,718			17,989,625
Total earning assets	37,698,103			35,360,535			34,427,432			33,752,008			29,955,799
Cash and due from banks	717,338			703,294			705,411			731,700			578,905
Derivative contracts, net	331,834			328,802			262,927			299,319			294,126
Cash surrender value of bank-owned life insurance	385,190			384,974			382,538			379,893			322,038
Receivable on unsettled securities sales	1,742,794			1,437,462			1,224,700			799,548			768,785
Other assets	2,705,089			2,629,710			2,669,673			2,423,275			1,776,164
TOTAL ASSETS	$	43,580,348		$	40,844,777		$	39,672,681		$	38,385,743		$	33,695,817

LIABILITIES AND EQUITY
Deposits:
Demand	$	9,759,710		$	9,883,965		$	9,988,088		$	10,648,683		$	9,325,002
Interest-bearing transaction	13,131,542			12,512,282			11,931,539			11,773,651			10,010,031
Savings	557,122			558,738			541,575			526,275			503,821
Time	2,251,800			2,207,391			2,153,277			2,146,786			2,097,441
Total deposits	25,700,174			25,162,376			24,614,479			25,095,395			21,936,295
Funds purchased and repurchase agreements	3,106,163			2,066,950			2,033,036			1,205,568			1,193,583
Other borrowings	8,125,023			7,175,617			7,040,279			6,361,141			5,765,440
Subordinated debentures	275,900			275,887			275,882			276,378			144,702
Derivative contracts, net	300,051			283,484			273,786			268,848			185,029
Due on unsettled securities purchases	745,893			821,688			453,937			493,887			544,263
Other liabilities	547,144			460,732			501,788			341,438			311,605
TOTAL LIABILITIES	38,800,348			36,246,734			35,193,187			34,042,655			30,080,917
Total equity	4,780,000			4,598,043			4,479,494			4,343,088			3,614,900
TOTAL LIABILITIES AND EQUITY	$	43,580,348		$	40,844,777		$	39,672,681		$	38,385,743		$	33,695,817

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

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2019			2018			2019			2018

Interest revenue	$	395,207		$	303,247		$	1,162,101		$	862,834
Interest expense	116,111			62,364			319,471			163,653
Net interest revenue	279,096			240,883			842,630			699,181
Provision for credit losses	12,000			4,000			25,000			(1,000		)
Net interest revenue after provision for credit losses	267,096			236,883			817,630			700,181
Other operating revenue:
Brokerage and trading revenue	43,840			23,086			115,983			80,222
Transaction card revenue	22,015			21,396			64,668			63,361
Fiduciary and asset management revenue	43,621			57,514			132,004			141,038
Deposit service charges and fees	28,837			27,765			85,154			82,760
Mortgage banking revenue	30,180			23,536			82,145			75,907
Other revenue	17,626			12,900			42,825			39,781
Total fees and commissions	186,119			166,197			522,779			483,069
Other gains, net	4,544			2,754			11,000			6,040
Gain (loss) on derivatives, net	3,778			(2,847		)	19,595			(11,589		)
Gain (loss) on fair value option securities, net	4,597			(4,385		)	24,115			(25,290		)
Change in fair value of mortgage servicing rights	(12,593		)	5,972			(62,814		)	28,901
Gain (loss) on available for sale securities, net	5			250			1,110			(802		)
Total other operating revenue	186,450			167,941			515,785			480,329
Other operating expense:
Personnel	162,573			143,531			492,143			422,425
Business promotion	8,859			7,620			26,875			21,316
Charitable contributions to BOKF Foundation	—			—			1,000			—
Professional fees and services	12,312			13,209			41,453			38,387
Net occupancy and equipment	27,558			23,394			83,959			70,201
Insurance	4,220			6,232			15,513			19,070
Data processing and communications	31,915			31,665			93,099			87,221
Printing, postage and supplies	3,825			3,837			12,817			11,937
Net losses and operating expenses of repossessed assets	1,728			4,044			4,304			14,471
Amortization of intangible assets	5,064			1,603			15,393			4,289
Mortgage banking costs	14,975			11,741			36,426			34,780
Other expense	6,263			5,741			20,604			19,426
Total other operating expense	279,292			252,617			843,586			743,523

Net income before taxes	174,254			152,207			489,829			436,987
Federal and state income taxes	32,396			34,662			99,926			98,940

Net income	141,858			117,545			389,903			338,047
Net income (loss) attributable to non-controlling interests	(373		)	289			(503		)	857
Net income attributable to BOK Financial Corporation shareholders	$	142,231		$	117,256		$	390,406		$	337,190

Average shares outstanding:
Basic	70,596,307			64,901,095			70,953,544			64,883,319
Diluted	70,609,924			64,934,351			70,968,845			64,919,728

Net income per share:
Basic	$	2.00		$	1.79		$	5.47		$	5.15
Diluted	$	2.00		$	1.79		$	5.47		$	5.15

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

	Three Months Ended
	Sept. 30, 2019			June 30, 2019			Mar. 31, 2019			Dec. 31, 2018			Sept. 30, 2018
Capital:
Period-end shareholders' equity	$	4,829,016		$	4,709,438		$	4,522,873		$	4,432,109		$	3,615,032
Risk weighted assets	$	32,159,139		$	32,040,741		$	31,601,558		$	30,742,295		$	27,398,072
Risk-based capital ratios:
Common equity tier 1	11.06		%	10.84		%	10.71		%	10.92		%	12.07		%
Tier 1	11.06		%	10.84		%	10.71		%	10.92		%	12.07		%
Total capital	12.56		%	12.34		%	12.24		%	12.50		%	13.37		%
Leverage ratio	8.41		%	8.75		%	8.76		%	8.96		%	9.90		%
Tangible common equity ratio¹	8.72		%	8.69		%	8.64		%	8.82		%	9.55		%

Common stock:
Book value per share	$	68.15		$	66.15		$	63.30		$	61.45		$	55.25
Tangible book value per share	51.60			49.68			46.82			45.03			47.90
Market value per share:
High	$	84.35		$	88.17		$	93.72		$	98.29		$	105.22
Low	$	72.96		$	72.60		$	72.11		$	69.96		$	92.40
Cash dividends paid	$	35,472		$	35,631		$	35,885		$	35,977		$	32,591
Dividend payout ratio	24.94		%	25.90		%	32.44		%	33.17		%	27.79		%
Shares outstanding, net	70,858,010			71,193,770			71,449,982			72,122,932			65,434,258
Stock buy-back program:
Shares repurchased	336,713			250,000			705,609			525,000			—
Amount	$	25,937		$	20,125		$	60,577		$	45,057		$	—
Average price per share	$	77.03		$	80.50		$	85.85		$	85.82		$	—

Performance ratios (quarter annualized):
Return on average assets	1.29		%	1.35		%	1.13		%	1.12		%	1.38		%
Return on average equity	11.83		%	12.02		%	10.04		%	9.93		%	12.95		%
Net interest margin	3.01		%	3.30		%	3.30		%	3.40		%	3.21		%
Efficiency ratio	59.31		%	59.51		%	64.80		%	63.25		%	61.60		%

Reconciliation of non-GAAP measures:
¹ Tangible common equity ratio:
Total shareholders' equity	$	4,829,016		$	4,709,438		$	4,522,873		$	4,432,109		$	3,615,032
Less: Goodwill and intangible assets, net	1,172,411			1,172,564			1,177,573			1,184,112			480,800
Tangible common equity	$	3,656,605		$	3,536,874		$	3,345,300		$	3,247,997		$	3,134,232

Total assets	$	43,127,205		$	41,893,073		$	39,882,962		$	38,020,504		$	33,289,864
Less: Goodwill and intangible assets, net	1,172,411			1,172,564			1,177,573			1,184,112			480,800
Tangible assets	$	41,954,794		$	40,720,509		$	38,705,389		$	36,836,392		$	32,809,064

Tangible common equity ratio	8.72		%	8.69		%	8.64		%	8.82		%	9.55		%

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

	Three Months Ended
	Sept. 30, 2019			June 30, 2019			Mar. 31, 2019			Dec. 31, 2018			Sept. 30, 2018
Other data:
Tax equivalent interest	$	2,936		$	3,481		$	2,529		$	3,067		$	1,894
Net unrealized gain (loss) on available for sale securities	$	178,060		$	131,780		$	(2,609	)	$	(95,271	)	$	(216,793	)

Mortgage banking:
Mortgage production revenue	$	13,814		$	11,869		$	7,868		$	5,073		$	7,250

Mortgage loans funded for sale	$	877,280		$	729,841		$	510,527		$	497,353		$	651,076
Add: current period-end outstanding commitments	379,377			344,087			263,434			160,848			197,752
Less: prior period end outstanding commitments	344,087			263,434			160,848			197,752			251,231
Total mortgage production volume	$	912,570		$	810,494		$	613,113		$	460,449		$	597,597

Mortgage loan refinances to mortgage loans funded for sale	56		%	31		%	30		%	23		%	23		%
Gain on sale margin	1.51		%	1.46		%	1.28		%	1.10		%	1.21		%

Mortgage servicing revenue	$	16,366		$	16,262		$	15,966		$	16,807		$	16,286
Average outstanding principal balance of mortgage loans serviced for others	21,172,874			21,418,690			21,581,835			21,706,541			21,895,041
Average mortgage servicing revenue rates	0.31		%	0.30		%	0.30		%	0.31		%	0.30		%

Gain (loss) on mortgage servicing rights, net of economic hedge:
Gain (loss) on mortgage hedge derivative contracts, net	$	3,742		$	11,128		$	4,432		$	12,162		$	(2,843	)
Gain (loss) on fair value option securities, net	4,597			9,853			9,665			(282		)	(4,385		)
Gain (loss) on economic hedge of mortgage servicing rights	8,339			20,981			14,097			11,880			(7,228		)
Gain (loss) on changes in fair value of mortgage servicing rights	(12,593		)	(29,555		)	(20,666		)	(24,233		)	5,972
Loss on changes in fair value of mortgage servicing rights, net of economic hedges, included in other operating revenue	(4,254		)	(8,574		)	(6,569		)	(12,353		)	(1,256		)
Net interest revenue on fair value option securities²	1,245			1,296			1,129			695			1,100
Total economic cost of changes in the fair value of mortgage servicing rights, net of economic hedges	$	(3,009	)	$	(7,278	)	$	(5,440	)	$	(11,658	)	$	(156	)


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

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

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

Interest revenue	$	395,207		$	390,820		$	376,074		$	365,592		$	303,247
Interest expense	116,111			105,388			97,972			79,906			62,364
Net interest revenue	279,096			285,432			278,102			285,686			240,883
Provision for credit losses	12,000			5,000			8,000			9,000			4,000
Net interest revenue after provision for credit losses	267,096			280,432			270,102			276,686			236,883
Other operating revenue:
Brokerage and trading revenue	43,840			40,526			31,617			28,101			23,086
Transaction card revenue	22,015			21,915			20,738			20,664			21,396
Fiduciary and asset management revenue	43,621			45,025			43,358			43,665			57,514
Deposit service charges and fees	28,837			28,074			28,243			29,393			27,765
Mortgage banking revenue	30,180			28,131			23,834			21,880			23,536
Other revenue	17,626			12,437			12,762			16,404			12,900
Total fees and commissions	186,119			176,108			160,552			160,107			166,197
Other gains (losses), net	4,544			3,480			2,976			(8,305		)	2,754
Gain (loss) on derivatives, net	3,778			11,150			4,667			11,167			(2,847		)
Gain (loss) on fair value option securities, net	4,597			9,853			9,665			(282		)	(4,385		)
Change in fair value of mortgage servicing rights	(12,593		)	(29,555		)	(20,666		)	(24,233		)	5,972
Gain (loss) on available for sale securities, net	5			1,029			76			(1,999		)	250
Total other operating revenue	186,450			172,065			157,270			136,455			167,941
Other operating expense:
Personnel	162,573			160,342			169,228			160,706			143,531
Business promotion	8,859			10,142			7,874			9,207			7,620
Charitable contributions to BOKF Foundation	—			1,000			—			2,846			—
Professional fees and services	12,312			13,002			16,139			20,712			13,209
Net occupancy and equipment	27,558			26,880			29,521			27,780			23,394
Insurance	4,220			6,454			4,839			4,248			6,232
Data processing and communications	31,915			29,735			31,449			27,575			31,665
Printing, postage and supplies	3,825			4,107			4,885			5,232			3,837
Net losses and operating expenses of repossessed assets	1,728			580			1,996			2,581			4,044
Amortization of intangible assets	5,064			5,138			5,191			5,331			1,603
Mortgage banking costs	14,975			11,545			9,906			11,518			11,741
Other expense	6,263			8,212			6,129			6,907			5,741
Total other operating expense	279,292			277,137			287,157			284,643			252,617
Net income before taxes	174,254			175,360			140,215			128,498			152,207
Federal and state income taxes	32,396			37,580			29,950			20,121			34,662
Net income	141,858			137,780			110,265			108,377			117,545
Net income (loss) attributable to non-controlling interests	(373		)	217			(347		)	(79		)	289
Net income attributable to BOK Financial Corporation shareholders	$	142,231		$	137,563		$	110,612		$	108,456		$	117,256

Average shares outstanding:
Basic	70,596,307			70,887,063			71,387,070			71,808,029			64,901,095
Diluted	70,609,924			70,902,033			71,404,388			71,833,334			64,934,351
Net income per share:
Basic	$	2.00		$	1.93		$	1.54		$	1.50		$	1.79
Diluted	$	2.00		$	1.93		$	1.54		$	1.50		$	1.79

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

	Sept. 30, 2019		June 30, 2019		Mar. 31, 2019		Dec. 31, 2018		Sept. 30, 2018
Commercial:
Energy	$	4,114,269	$	3,921,353	$	3,705,099	$	3,590,333	$	3,294,867
Services	3,266,249		3,309,458		3,287,563		3,258,192		2,603,862
Healthcare	3,032,968		2,926,510		2,915,885		2,799,277		2,437,323
Wholesale/retail	1,848,617		1,793,118		1,706,900		1,621,158		1,650,729
Public finance	744,840		795,659		803,083		804,550		418,578
Manufacturing	698,408		761,357		742,374		730,521		660,582
Other commercial and industrial	719,274		829,453		801,071		832,047		510,160
Total commercial	14,424,625		14,336,908		13,961,975		13,636,078		11,576,101

Commercial real estate:
Multifamily	1,324,839		1,300,372		1,210,358		1,288,065		1,120,166
Office	1,014,275		1,056,306		1,033,158		1,072,920		824,829
Retail	799,169		825,399		890,685		919,082		759,423
Industrial	873,536		828,569		767,757		778,106		696,774
Residential construction and land development	135,361		141,509		149,686		148,584		101,872
Other commercial real estate	478,877		557,878		549,007		558,056		301,611
Total commercial real estate	4,626,057		4,710,033		4,600,651		4,764,813		3,804,675

Residential mortgage:
Permanent mortgage	1,066,460		1,088,370		1,098,481		1,122,610		1,094,926
Permanent mortgages guaranteed by U.S. government agencies	191,764		195,373		193,308		190,866		180,718
Home equity	859,079		887,079		900,831		916,557		696,098
Total residential mortgage	2,117,303		2,170,822		2,192,620		2,230,033		1,971,742

Personal	1,117,382		1,037,889		1,003,734		1,025,806		996,941

Total	$	22,285,367	$	22,255,652	$	21,758,980	$	21,656,730	$	18,349,459

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

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

Oklahoma:
Commercial	$	3,690,100	$	3,762,234	$	3,551,054	$	3,491,117	$	3,609,109
Commercial real estate	679,786		717,970		665,190		700,756		651,315
Residential mortgage	1,370,452		1,403,398		1,417,381		1,440,566		1,429,843
Personal	383,246		382,764		374,807		375,543		376,201
Total Oklahoma	6,123,584		6,266,366		6,008,432		6,007,982		6,066,468

Texas:
Commercial	6,220,227		5,877,265		5,754,018		5,438,133		5,115,646
Commercial real estate	1,292,116		1,341,609		1,344,810		1,341,783		1,354,679
Residential mortgage	273,931		272,878		265,927		266,805		253,265
Personal	475,430		400,585		396,794		394,743		381,452
Total Texas	8,261,704		7,892,337		7,761,549		7,441,464		7,105,042

New Mexico:
Commercial	335,409		350,520		342,915		340,489		325,048
Commercial real estate	374,331		385,058		371,416		383,670		392,494
Residential mortgage	81,383		82,390		85,326		87,346		88,110
Personal	10,887		10,236		11,065		10,662		11,659
Total New Mexico	802,010		828,204		810,722		822,167		817,311

Arkansas:
Commercial	87,588		87,896		79,286		111,338		102,237
Commercial real estate	158,538		149,300		142,551		141,898		106,701
Residential mortgage	7,509		7,463		7,731		7,537		7,278
Personal	10,905		11,208		11,550		11,955		12,126
Total Arkansas	264,540		255,867		241,118		272,728		228,342

Colorado:
Commercial	2,247,798		2,325,742		2,231,703		2,275,069		1,132,500
Commercial real estate	975,066		1,023,410		957,348		963,575		354,543
Residential mortgage	224,872		241,780		241,722		251,849		68,694
Personal	78,733		72,537		65,812		72,916		56,999
Total Colorado	3,526,469		3,663,469		3,496,585		3,563,409		1,612,736

Arizona:
Commercial	1,276,534		1,330,415		1,335,140		1,320,139		621,658
Commercial real estate	771,425		761,243		791,466		889,903		666,562
Residential mortgage	92,121		91,684		98,973		97,959		44,659
Personal	78,694		76,335		61,875		68,546		67,280
Total Arizona	2,218,774		2,259,677		2,287,454		2,376,547		1,400,159

Kansas/Missouri:
Commercial	566,969		602,836		667,859		659,793		669,903
Commercial real estate	374,795		331,443		327,870		343,228		278,381
Residential mortgage	67,035		71,229		75,560		77,971		79,893
Personal	79,487		84,224		81,831		91,441		91,224
Total Kansas/Missouri	1,088,286		1,089,732		1,153,120		1,172,433		1,119,401

TOTAL BOK FINANCIAL	$	22,285,367	$	22,255,652	$	21,758,980	$	21,656,730	$	18,349,459

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)

	Sept. 30, 2019		June 30, 2019		Mar. 31, 2019		Dec. 31, 2018		Sept. 30, 2018
Oklahoma:
Demand	$	3,515,312	$	3,279,359	$	3,432,239	$	3,610,593	$	3,564,307
Interest-bearing:
Transaction	7,447,799		7,020,484		6,542,548		6,445,831		6,010,972
Savings	308,103		307,785		309,875		288,210		288,080
Time	1,198,170		1,253,804		1,217,371		1,118,643		1,128,810
Total interest-bearing	8,954,072		8,582,073		8,069,794		7,852,684		7,427,862
Total Oklahoma	12,469,384		11,861,432		11,502,033		11,463,277		10,992,169

Texas:
Demand	2,870,429		2,974,005		2,966,743		3,291,433		3,357,669
Interest-bearing:
Transaction	2,589,511		2,453,619		2,385,305		2,295,169		2,182,114
Savings	100,597		103,125		101,849		99,624		97,909
Time	464,264		425,253		419,269		423,880		453,119
Total interest-bearing	3,154,372		2,981,997		2,906,423		2,818,673		2,733,142
Total Texas	6,024,801		5,956,002		5,873,166		6,110,106		6,090,811

New Mexico:
Demand	645,698		630,861		662,362		691,692		722,188
Interest-bearing:
Transaction	539,260		557,881		573,203		571,347		593,760
Savings	62,863		62,636		61,497		58,194		57,794
Time	236,135		232,569		228,212		224,515		221,513
Total interest-bearing	838,258		853,086		862,912		854,056		873,067
Total New Mexico	1,483,956		1,483,947		1,525,274		1,545,748		1,595,255

Arkansas:
Demand	39,513		29,176		31,624		36,800		36,579
Interest-bearing:
Transaction	149,506		148,485		147,964		91,593		128,001
Savings	1,747		1,783		1,785		1,632		1,826
Time	7,877		7,810		8,321		8,726		10,214
Total interest-bearing	159,130		158,078		158,070		101,951		140,041
Total Arkansas	198,643		187,254		189,694		138,751		176,620

Colorado:
Demand	1,694,044		1,621,820		1,897,547		1,658,473		593,442
Interest-bearing:
Transaction	1,910,874		1,800,271		1,844,632		1,899,203		622,520
Savings	60,107		57,263		58,919		57,289		40,308
Time	273,622		246,198		261,235		274,877		217,628
Total interest-bearing	2,244,603		2,103,732		2,164,786		2,231,369		880,456
Total Colorado	3,938,647		3,725,552		4,062,333		3,889,842		1,473,898

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

	Sept. 30, 2019		June 30, 2019		Mar. 31, 2019		Dec. 31, 2018		Sept. 30, 2018
Arizona:
Demand	703,381		700,480		695,238		707,402		365,878
Interest-bearing:
Transaction	599,655		560,429		621,735		575,567		130,105
Savings	12,487		11,966		12,144		10,545		3,559
Time	44,347		43,099		44,004		43,051		23,927
Total interest-bearing	656,489		615,494		677,883		629,163		157,591
Total Arizona	1,359,870		1,315,974		1,373,121		1,336,565		523,469

Kansas/Missouri:
Demand	376,020		431,856		410,799		418,199		423,560
Interest-bearing:
Transaction	284,940		310,774		361,590		327,866		322,747
Savings	11,689		13,125		13,815		13,721		13,125
Time	19,126		19,205		19,977		19,688		20,635
Total interest-bearing	315,755		343,104		395,382		361,275		356,507
Total Kansas/Missouri	691,775		774,960		806,181		779,474		780,067

TOTAL BOK FINANCIAL	$	26,167,076	$	25,305,121	$	25,331,802	$	25,263,763	$	21,632,289

NET INTEREST MARGIN TREND -- UNAUDITED BOK FINANCIAL CORPORATION

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

TAX-EQUIVALENT ASSETS YIELDS
Interest-bearing cash and cash equivalents	2.42	%	2.57	%	2.56	%	2.23	%	1.98	%
Trading securities	3.49	%	3.59	%	3.88	%	4.10	%	3.98	%
Investment securities	4.46	%	4.41	%	4.50	%	4.26	%	4.06	%
Available for sale securities	2.60	%	2.63	%	2.57	%	2.51	%	2.37	%
Fair value option securities	2.79	%	3.34	%	3.62	%	3.56	%	3.25	%
Restricted equity securities	6.34	%	6.30	%	6.42	%	6.39	%	6.36	%
Residential mortgage loans held for sale	3.73	%	3.65	%	4.58	%	4.00	%	4.27	%
Loans	5.12	%	5.39	%	5.26	%	5.09	%	4.80	%
Allowance for loan losses
Loans, net of allowance	5.17	%	5.45	%	5.31	%	5.14	%	4.86	%
Total tax-equivalent yield on earning assets	4.25	%	4.51	%	4.46	%	4.33	%	4.04	%

COST OF INTEREST-BEARING LIABILITIES
Interest-bearing deposits:
Interest-bearing transaction	1.08	%	1.04	%	0.94	%	0.79	%	0.67	%
Savings	0.14	%	0.12	%	0.12	%	0.11	%	0.09	%
Time	1.94	%	1.90	%	1.80	%	1.54	%	1.40	%
Total interest-bearing deposits	1.17	%	1.13	%	1.04	%	0.87	%	0.77	%
Funds purchased and repurchase agreements	2.01	%	2.08	%	2.07	%	1.36	%	1.25	%
Other borrowings	2.42	%	2.67	%	2.68	%	2.51	%	2.20	%
Subordinated debt	5.48	%	5.53	%	5.51	%	5.38	%	5.55	%
Total cost of interest-bearing liabilities	1.68	%	1.70	%	1.66	%	1.42	%	1.25	%
Tax-equivalent net interest revenue spread	2.57	%	2.81	%	2.80	%	2.91	%	2.79	%
Effect of noninterest-bearing funding sources and other	0.44	%	0.49	%	0.50	%	0.49	%	0.42	%
Tax-equivalent net interest margin	3.01	%	3.30	%	3.30	%	3.40	%	3.21	%

Yield calculations are shown on a tax equivalent basis at the statutory federal and state rates for the periods presented. The yield calculations exclude security trades that have been recorded on trade date with no corresponding interest income and the unrealized gains and losses. The yield calculation also includes average loan balances for which the accrual of interest has been discontinued and are net of unearned income. Yield/rate calculations are generally based on the conventions that determine how interest income and expense is accrued.

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

	Three Months Ended
	Sept. 30, 2019		June 30, 2019		Mar. 31, 2019		Dec. 31, 2018		Sept. 30, 2018
Nonperforming assets:
Nonaccruing loans:
Commercial	$	111,706	$	123,395	$	90,358	$	99,841	$	109,490
Commercial real estate	23,185		21,670		21,508		21,621		1,316
Residential mortgage	37,304		38,477		40,409		41,555		41,917
Personal	271		237		302		230		269
Total nonaccruing loans	172,466		183,779		152,577		163,247		152,992
Accruing renegotiated loans guaranteed by U.S. government agencies	92,718		95,989		91,787		86,428		83,347
Real estate and other repossessed assets	21,026		16,940		17,139		17,487		24,515
Total nonperforming assets	$	286,210	$	296,708	$	261,503	$	267,162	$	260,854
Total nonperforming assets excluding those guaranteed by U.S. government agencies	$	187,160	$	193,976	$	162,770	$	173,602	$	169,717

Nonaccruing loans by loan class:
Commercial:
Energy	$	88,894	$	71,632	$	35,332	$	47,494	$	54,033
Services	6,119		10,087		9,555		8,567		4,097
Healthcare	5,978		16,148		18,768		16,538		15,704
Manufacturing	8,741		8,613		9,548		8,919		9,202
Wholesale/retail	1,504		1,390		1,425		1,316		9,249
Public finance	—		—		—		—		—
Other commercial and industrial	470		15,525		15,730		17,007		17,205
Total commercial	111,706		123,395		90,358		99,841		109,490
Commercial real estate:
Retail	20,132		20,057		20,159		20,279		777
Residential construction and land development	350		350		350		350		350
Multifamily	286		275		—		301		—
Office	855		855		855		—		—
Industrial	909		—		—		—		—
Other commercial real estate	653		133		144		691		189
Total commercial real estate	23,185		21,670		21,508		21,621		1,316
Residential mortgage:
Permanent mortgage	20,165		21,803		22,937		23,951		22,855
Permanent mortgage guaranteed by U.S. government agencies	6,332		6,743		6,946		7,132		7,790
Home equity	10,807		9,931		10,526		10,472		11,272
Total residential mortgage	37,304		38,477		40,409		41,555		41,917
Personal	271		237		302		230		269
Total nonaccruing loans	$	172,466	$	183,779	$	152,577	$	163,247	$	152,992

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

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

Performing loans 90 days past due¹	$	1,541		$	2,698		$	610		$	1,338		$	518

Gross charge-offs	$	11,707		$	13,227		$	11,775		$	14,515		$	11,073
Recoveries	(1,066		)	(5,503		)	(1,689		)	(2,168		)	(2,092		)
Net charge-offs	$	10,641		$	7,724		$	10,086		$	12,347		$	8,981

Provision for credit losses	$	12,000		$	5,000		$	8,000		$	9,000		$	4,000

Allowance for loan losses to period end loans	0.92		%	0.91		%	0.94		%	0.96		%	1.15		%
Combined allowance for credit losses to period end loans	0.92		%	0.92		%	0.95		%	0.97		%	1.16		%
Nonperforming assets to period end loans and repossessed assets	1.28		%	1.33		%	1.20		%	1.23		%	1.42		%
Net charge-offs (annualized) to average loans	0.19		%	0.14		%	0.19		%	0.23		%	0.20		%
Allowance for loan losses to nonaccruing loans¹	123.05		%	114.40		%	141.00		%	132.89		%	145.02		%
Combined allowance for credit losses to nonaccruing loans¹	123.87		%	115.48		%	142.25		%	134.03		%	146.41		%


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	Sept. 30, 2019		June 30, 2019		Sept. 30, 2018		3Q19 vs 2Q19		3Q19 vs 3Q18
Net interest revenue	$	180,147	$	185,614	$	145,147	(2.9	)%	24.1	%
Fees and commissions revenue	46,159		41,105		39,391		12.3	%	17.2	%
Other operating expense	68,685		62,947		51,039		9.1	%	34.6	%
Corporate expense allocations	12,613		11,385		9,124		10.8	%	38.2	%
Net income	101,573		106,935		84,964		(5.0	)%	19.5	%

Average assets	23,973,067		22,910,071		18,499,979		4.6	%	29.6	%
Average loans	19,226,347		18,812,800		15,321,600		2.2	%	25.5	%
Average deposits	10,833,057		10,724,206		8,633,204		1.0	%	25.5	%

Consumer Banking
Net interest revenue	$	48,462	$	52,715	$	39,044	(8.1	)%	24.1	%
Fees and commissions revenue	51,460		48,830		44,039		5.4	%	16.9	%
Other operating expense	59,699		57,694		58,482		3.5	%	2.1	%
Corporate expense allocations	11,776		11,695		11,037		0.7	%	6.7	%
Net income	16,640		16,342		8,015		1.8	%	107.6	%

Average assets	9,827,130		9,212,667		8,323,543		6.7	%	18.1	%
Average loans	1,773,831		1,796,823		1,719,679		(1.3	)%	3.1	%
Average deposits	6,983,018		6,998,677		6,580,395		(0.2	)%	6.1	%

Wealth Management
Net interest revenue	$	23,066	$	26,941	$	28,776	(14.4	)%	(19.8	)%
Fees and commissions revenue	89,422		85,925		83,562		4.1	%	7.0	%
Other operating expense	71,619		69,452		62,256		3.1	%	15.0	%
Corporate expense allocations	9,416		9,168		11,127		2.7	%	(15.4	)%
Net income	23,206		25,544		28,866		(9.2	)%	(19.6	)%

Average assets	10,392,988		9,849,396		8,498,363		5.5	%	22.3	%
Average loans	1,671,102		1,647,680		1,439,774		1.4	%	16.1	%
Average deposits	6,590,332		6,220,848		5,492,048		5.9	%	20.0	%
Fiduciary assets	49,259,697		49,296,896		45,560,107		(0.1	)%	8.1	%
Assets under management or administration	80,796,949		81,774,602		77,628,015		(1.2	)%	4.1	%

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