Premises and Equipment and Leases

12 Months Ended

Dec. 31, 2021

Property, Plant and Equipment [Abstract]

Premises and Equipment Disclosure [Text Block]

Premises and Equipment and Leases

Premises and equipment at December 31 are summarized as follows (in thousands):

	December 31,
	2021		2020
Land	$	69,776	$	69,776
Buildings and improvements	472,450		440,528
Software and related integration	159,063		120,444
Furniture and equipment	186,092		165,344
Construction in progress	36,917		46,949
Premises and equipment	924,298		843,041
Less accumulated depreciation	350,150		291,733
Premises and equipment, net of accumulated depreciation	$	574,148	$	551,308

Depreciation expense of premises and equipment was $63.4 million, $54.3 million and $51.6 million for the years ended December 31, 2021, 2020 and 2019, respectively.

Premises and equipment included right-of-use assets for leased office space and facilities. Leases are at market rates at inception and may contain escalations based on consumer price index or similar benchmarks and options to renew at then market rates.

Right-of-use assets of $181 million at December 31, 2021 and $166 million at December 31, 2020 are included in buildings and improvements and related right-of-use liabilities are included in other liabilities. At December 31, 2021, the weighted-average remaining lease term was 10.9 years and the weighted average discount rate on operating leases was 2.9%. At December 31, 2021, un-discounted operating lease liabilities are scheduled to mature as follows: $23.8 million in 2022, $24.7 million in 2023, $24.3 million in 2024, $23.6 million in 2025, $22.6 million in 2026 and $130 million thereafter.

Total lease expense for BOK Financial was $35.8 million in 2021, $42.0 million in 2020 and $43.0 million in 2019. Rent expense and right of use asset amortization recognized as occupancy and equipment expense was $23.4 million in 2021, $25.0 million in 2020 and $24.2 million in 2019. Operating cash flows from operating leases were $25.3 million and $25.6 million for the years ended December 31, 2021 and December 31, 2020, respectively. Operating expenses related to leased assets and short term lease costs totaled $11.5 million, $13.4 million and $12.6 million for the years ended December 31, 2021, 2020 and 2019, respectively.

BOKF, NA is obligated under a long-term lease for its bank premises in downtown Tulsa. The original lease dated November 1, 1976 was renegotiated on July 1, 2019. The new lease will terminate on December 31, 2034. The Company has the option to renew for an additional 10 years. Premises leases may include options to renew at then current market rates and may include escalation provisions based upon changes in consumer price index or similar benchmarks.

The Company may lease owned properties or sublease unoccupied leased facilities. Income on these leases is immaterial.