Fees and Commissions Revenue Fees and Commissions Revenue

6 Months Ended

Jun. 30, 2024

Revenue from Contract with Customer [Abstract]

Fees and Commissions Revenue [Text Block]

Fees and Commissions Revenue

Fees and commissions revenue is generated through the sales of products, consisting primarily of financial instruments, and the performance of services for customers under contractual obligations. Revenue from providing services for customers is recognized at the time services are provided in an amount that reflects the consideration we expect to be entitled to for those services. Revenue is recognized based on the application of five steps:

•Identify the contract with a customer

•Identify the performance obligations in the contract

•Determine the transaction price

•Allocate the transaction price to the performance obligations in the contract

•Recognize revenue when (or as) the Company satisfies a performance obligation

For contracts with multiple performance obligations, individual performance obligations are accounted for separately if the customer can benefit from the good or service on its own or with other resources readily available to the customer, and the promise to transfer goods and services to the customer is separately identifiable in the contract. The transaction price is allocated to the performance obligations based on relative standalone selling prices.

Revenue is recognized on a gross basis whenever we have primary responsibility and risk in providing the services or products to our customers and have discretion in establishing the price for the services or products. Revenue is recognized on a net basis whenever we act as an agent for products or services of others.

Brokerage and trading revenue includes revenues from trading, customer hedging, retail brokerage and investment banking. Trading revenue includes net realized and unrealized gains primarily related to sales of securities to institutional customers and related derivative contracts. Customer hedging revenue includes realized and unrealized changes in the fair value of derivative contracts held for customer risk management programs including credit valuation adjustments, as necessary. We offer commodity, interest rate, foreign exchange and equity derivatives to our customers. These customer contracts are offset with contracts with selected counterparties and exchanges to minimize changes in market risk from changes in commodity prices, interest rates or foreign exchange rates. Retail brokerage revenue represents fees and commissions earned on sales of fixed income securities, annuities, mutual funds and other financial instruments to retail customers. Investment banking revenue includes fees earned upon completion of underwriting and financial advisory services. Investment banking revenue also includes fees earned in conjunction with loan syndications. Insurance brokerage revenues represents fees and commissions earned on placement of insurance products with carriers for property and casualty and health coverage.

Transaction card revenue includes merchant discount fees and electronic funds transfer network fees, net of interchange fees paid to card issuers and assessments paid to card networks. Merchant discount fees represent fees paid by customers for account management and electronic processing of card transactions. Merchant discount fees are recognized at the time the customer's transactions are processed or other services are performed. The Company also maintains the TransFund electronic funds transfer network for the benefit of its members, which includes BOKF, NA. Electronic funds transfer fees are recognized as electronic transactions processed on behalf of its members. 

Fiduciary and asset management revenue includes fees from asset management, custody, recordkeeping, investment advisory and administration services. Revenue is recognized on an accrual basis at the time the services are performed and may be based on either the fair value of the account or the service provided.

Deposit service charges and fees include commercial account service charges, overdraft fees, check card fee revenue and automated service charge and other deposit service fees. Fees are recognized at least quarterly in accordance with published deposit account agreements and disclosure statements for retail accounts or contractual agreements for commercial accounts. Item charges for overdraft or non-sufficient funds items are recognized as items are presented for payment. Account balance charges and activity fees are accrued monthly and collected in arrears. Commercial account activity fees may be offset by an earnings credit based on account balances. Check card fees represent interchange fees paid by a merchant bank for transactions processed from cards issued by the Company. Check card fees are recognized when transactions are processed.

Mortgage banking revenue includes revenues recognized in conjunction with the origination, marketing and servicing of conventional and government-sponsored residential mortgage loans. Mortgage production revenue includes net realized gains (losses) on sales of residential mortgage loans in the secondary market and the net change in unrealized gains (losses) on residential mortgage loans held for sale. Mortgage production revenue also includes changes in the fair value of derivative contracts not designated as hedging instruments related to residential mortgage loan commitments and forward sales contracts. Mortgage servicing revenue includes servicing fee income and late charges on loans serviced for others.

Fees and commissions revenue by reportable segment and primary service line is as follows for the three months ended June 30, 2024 (in thousands):

	Commercial		Consumer		Wealth Management		Funds Management & Other		Consolidated		Out of Scope1		In Scope2
Trading revenue	$	—	$	—	$	27,695	$	—	$	27,695	$	27,695	$	—
Customer hedging revenue	3,408		—		3,047		310		6,765		6,765		—
Retail brokerage revenue	—		—		4,838		—		4,838		—		4,838
Investment banking revenue	4,106		—		9,613		—		13,719		3,942		9,777
Brokerage and trading revenue	7,514		—		45,193		310		53,017		38,402		14,615
TransFund EFT network revenue	21,883		776		(19)		—		22,640		—		22,640
Merchant services revenue	2,502		8		—		—		2,510		—		2,510
Corporate card revenue	1,868		—		161		67		2,096		—		2,096
Transaction card revenue	26,253		784		142		67		27,246		—		27,246
Personal trust revenue	—		—		26,770		—		26,770		—		26,770
Corporate trust revenue	—		—		8,646		—		8,646		—		8,646
Institutional trust & retirement plan services revenue	—		—		16,519		—		16,519		—		16,519
Investment management services and other revenue	—		—		5,641		—		5,641		—		5,641
Fiduciary and asset management revenue	—		—		57,576		—		57,576		—		57,576
Commercial account service charge revenue	15,395		552		603		—		16,550		—		16,550
Overdraft fee revenue	27		5,374		32		—		5,433		—		5,433
Check card revenue	—		6,049		—		—		6,049		—		6,049
Automated service charge and other deposit fee revenue	259		1,189		92		—		1,540		—		1,540
Deposit service charges and fees	15,681		13,164		727		—		29,572		—		29,572
Mortgage production revenue	—		2,369		—		—		2,369		2,369		—
Mortgage servicing revenue	—		16,964		—		(705)		16,259		16,259		—
Mortgage banking revenue	—		19,333		—		(705)		18,628		18,628		—
Other revenue	4,272		2,971		9,570		(2,825)		13,988		8,400		5,588
Total fees and commissions revenue	$	53,720	$	36,252	$	113,208	$	(3,153)	$	200,027	$	65,430	$	134,597

1     Out of scope revenue generally relates to financial instruments or contractual rights and obligations within the scope of other applicable accounting guidance.

2    In scope revenue represents revenue subject to FASB ASC Topic 606, Revenue from Contracts with Customers.

Fees and commissions revenue by reportable segment and primary service line is as follows for the six months ended June 30, 2024 (in thousands):

	Commercial		Consumer		Wealth Management		Funds Management & Other		Consolidated		Out of Scope1		In Scope2
Trading revenue	$	—	$	—	$	65,152	$	—	$	65,152	$	65,152	$	—
Customer hedging revenue	7,151		—		5,067		872		13,090		13,090		—
Retail brokerage revenue	—		—		9,531		—		9,531		—		9,531
Investment banking revenue	7,925		—		16,498		—		24,423		7,036		17,387
Brokerage and trading revenue	15,076		—		96,248		872		112,196		85,278		26,918
TransFund EFT network revenue	42,349		1,602		(37)		—		43,914		—		43,914
Merchant services revenue	4,682		17		—		—		4,699		—		4,699
Corporate card revenue	3,606		—		340		180		4,126		—		4,126
Transaction card revenue	50,637		1,619		303		180		52,739		—		52,739
Personal trust revenue	—		—		51,115		—		51,115		—		51,115
Corporate trust revenue	—		—		17,906		—		17,906		—		17,906
Institutional trust & retirement plan services revenue	—		—		32,667		—		32,667		—		32,667
Investment management services and other revenue	—		—		11,193		—		11,193		—		11,193
Fiduciary and asset management revenue	—		—		112,881		—		112,881		—		112,881
Commercial account service charge revenue	30,295		1,083		1,149		—		32,527		—		32,527
Overdraft fee revenue	63		10,768		62		—		10,893		—		10,893
Check card revenue	—		11,719		—		—		11,719		—		11,719
Automated service charge and other deposit fee revenue	528		2,425		165		—		3,118		—		3,118
Deposit service charges and fees	30,886		25,995		1,376		—		58,257		—		58,257
Mortgage production revenue	—		5,894		—		—		5,894		5,894		—
Mortgage servicing revenue	—		33,079		—		(1,378)		31,701		31,701		—
Mortgage banking revenue	—		38,973		—		(1,378)		37,595		37,595		—
Other revenue	7,751		5,872		21,104		(7,804)		26,923		16,312		10,611
Total fees and commissions revenue	$	104,350	$	72,459	$	231,912	$	(8,130)	$	400,591	$	139,185	$	261,406

1     Out of scope revenue generally relates to financial instruments or contractual rights and obligations within the scope of other applicable accounting guidance.

2    In scope revenue represents revenue subject to FASB ASC Topic 606, Revenue from Contracts with Customers.

Fees and commissions revenue by reportable segment and primary service line is as follows for the three months ended June 30, 2023 (in thousands):

	Commercial		Consumer		Wealth Management		Funds Management & Other		Consolidated		Out of Scope1		In Scope2
Trading revenue	$	—	$	—	$	36,921	$	—	$	36,921	$	36,921	$	—
Customer hedging revenue	12,839		—		(159)		962		13,642		13,642		—
Retail brokerage revenue	—		—		3,321		—		3,321		—		3,321
Insurance brokerage revenue	—		—		2,857		—		2,857		—		2,857
Investment banking revenue	3,514		—		4,751		—		8,265		3,452		4,813
Brokerage and trading revenue	16,353		—		47,691		962		65,006		54,015		10,991
TransFund EFT network revenue	20,483		907		(17)		2		21,375		—		21,375
Merchant services revenue	2,494		10		—		—		2,504		—		2,504
Corporate card revenue	1,834		—		184		106		2,124		—		2,124
Transaction card revenue	24,811		917		167		108		26,003		—		26,003
Personal trust revenue	—		—		25,315		—		25,315		—		25,315
Corporate trust revenue	—		—		7,201		—		7,201		—		7,201
Institutional trust & retirement plan services revenue	—		—		13,707		—		13,707		—		13,707
Investment management services and other revenue	—		—		6,775		(1)		6,774		—		6,774
Fiduciary and asset management revenue	—		—		52,998		(1)		52,997		—		52,997
Commercial account service charge revenue	13,364		530		488		(2)		14,380		—		14,380
Overdraft fee revenue	32		5,066		42		1		5,141		—		5,141
Check card revenue	—		5,976		—		(1)		5,975		—		5,975
Automated service charge and other deposit fee revenue	267		1,233		103		1		1,604		—		1,604
Deposit service charges and fees	13,663		12,805		633		(1)		27,100		—		27,100
Mortgage production revenue	—		(284)		—		—		(284)		(284)		—
Mortgage servicing revenue	—		15,993		—		(568)		15,425		15,425		—
Mortgage banking revenue	—		15,709		—		(568)		15,141		15,141		—
Other revenue	4,877		2,930		21,561		(15,118)		14,250		8,166		6,084
Total fees and commissions revenue	$	59,704	$	32,361	$	123,050	$	(14,618)	$	200,497	$	77,322	$	123,175

1     Out of scope revenue generally relates to financial instruments or contractual rights and obligations within the scope of other applicable accounting guidance.

2    In scope revenue represents revenue subject to FASB ASC Topic 606, Revenue from Contracts with Customers.

Fees and commissions revenue by reportable segment and primary service line is as follows for the six months ended June 30, 2023 (in thousands):

	Commercial		Consumer		Wealth Management		Funds Management & Other		Consolidated		Out of Scope1		In Scope2
Trading revenue	$	—	$	—	$	64,519	$	—	$	64,519	$	64,519	$	—
Customer hedging revenue	19,326		—		(59)		2,729		21,996		21,996		—
Retail brokerage revenue	—		—		7,165		—		7,165		—		7,165
Insurance brokerage revenue	—		—		6,163		—		6,163		—		6,163
Investment banking revenue	7,212		—		10,347		—		17,559		7,050		10,509
Brokerage and trading revenue	26,538		—		88,135		2,729		117,402		93,565		23,837
TransFund EFT network revenue	40,982		1,815		(34)		4		42,767		—		42,767
Merchant services revenue	4,644		18		—		—		4,662		—		4,662
Corporate card revenue	3,619		—		361		215		4,195		—		4,195
Transaction card revenue	49,245		1,833		327		219		51,624		—		51,624
Personal trust revenue	—		—		48,842		—		48,842		—		48,842
Corporate trust revenue	—		—		14,861		—		14,861		—		14,861
Institutional trust & retirement plan services revenue	—		—		26,960		—		26,960		—		26,960
Investment management services and other revenue	—		—		13,013		(22)		12,991		—		12,991
Fiduciary and asset management revenue	—		—		103,676		(22)		103,654		—		103,654
Commercial account service charge revenue	26,235		1,029		965		(2)		28,227		—		28,227
Overdraft fee revenue	57		9,894		62		1		10,014		—		10,014
Check card revenue	—		11,614		—		—		11,614		—		11,614
Automated service charge and other deposit fee revenue	504		2,546		162		1		3,213		—		3,213
Deposit service charges and fees	26,796		25,083		1,189		—		53,068		—		53,068
Mortgage production revenue	—		(917)		—		—		(917)		(917)		—
Mortgage servicing revenue	—		31,551		—		(1,126)		30,425		30,425		—
Mortgage banking revenue	—		30,634		—		(1,126)		29,508		29,508		—
Other revenue	12,960		5,392		38,634		(25,766)		31,220		16,727		14,493
Total fees and commissions revenue	$	115,539	$	62,942	$	231,961	$	(23,966)	$	386,476	$	139,800	$	246,676