BOK Financial Reports Quarterly Earnings of $108 million or

TULSA, Okla., Jan. 30, 2019 (GLOBE NEWSWIRE) --

CEO Commentary

Steven G. Bradshaw, president, and chief executive officer, stated, “Another strong quarter was the capstone on a record year for BOK Financial. This quarter, and all throughout the year, we saw growth in net interest margin and net interest income, combined with strong, broad-based, loan growth. This year’s outstanding loan production, led by our specialty lines of business like Energy, Healthcare and Commercial Real Estate, fueled the largest annual revenues in the history of the company. While we benefited from a healthy economy and stable credit environment in 2018, the key driver for our expanding earnings leverage was our success at maintaining expense discipline throughout the year. I couldn’t be more proud of the hard work and dedication of every single one of our employees.”

Bradshaw continued, “2018 also brought the largest acquisition in company history, CoBiz Financial. Integration is well underway, and we are already capitalizing on our opportunities in Colorado and Arizona - two important growth markets. I am excited for what CoBiz adds to our organization, and I am as confident in our business prospects today as I have been in years. Though there are some market headwinds that many will point to as potential roadblocks for the financial industry, I have full faith in our diversified approach to driving shareholder value. We believe we are well-positioned to continue to grow revenues and energize earnings growth in 2019.”

Fourth Quarter 2018 Financial Highlights

Net income was $108.5 million or $1.50 per diluted share for the fourth quarter of 2018 and $117.3 million and $1.79 per diluted share for the third quarter of 2018. The fourth quarter included a 15 cent per share reduction as a result of CoBiz closing and integrations costs. The third quarter included an 18 cent per share addition from a client asset management fee. The Company also issued 7.2 million shares in the fourth quarter to fund the CoBiz Financial acquisition.
Net interest revenue totaled $285.7 million, up $44.8 million. CoBiz added $43.1 million. Net interest margin increased to 3.40 percent from 3.21 percent.
Fees and commissions revenue totaled $160.1 million, a decrease of $6.1 million or 4 percent.
Operating expense increased $32.0 million or 13 percent to $284.6 million, including $14.5 million of closing and integration costs. CoBiz added $29.7 million of operating costs.
A $9.0 million provision for credit losses was recorded in the fourth quarter of 2018. The combined allowance for credit losses totaled $209 million or 0.97 percent of outstanding loans and 1.12 percent of outstanding loans, excluding acquired loans.
Period-end loans increased $3.3 billion. Excluding $2.9 billion of acquired loans, period-end loans increased $393 million or 2 percent.
The Company repurchased 525,000 shares at an average price of $85.82 per share.

Fourth Quarter 2018 Business Segment Highlights

Commercial Banking

Contributed $84.6 million to net income, consistent with the prior quarter. Increased net interest revenue was offset by increased net charge-offs.
Net interest revenue was $148 million, an increase of $3.2 million.
Average loans increased $307 million or 2 percent.

Consumer Banking

Contributed $2.7 million to net income, a decrease of $5.6 million compared to the third quarter. Interest rate volatility affected the effectiveness of our mortgage servicing rights hedging strategy.
Net interest revenue increased $2.3 million or 6 percent.
Fees and commissions revenue decreased $1.2 million or 3 percent while operating expenses decreased $1.9 million or 4 percent.

Wealth Management

Contributed $17.5 million to net income, a decrease of $11.6 million compared to the prior quarter. The third quarter included a $15.4 million fee earned on the sale of client assets.
Net interest revenue remained consistent compared to the prior quarter at $29.3 million.
Average loans grew $9.0 million or 1 percent.
Assets under management or administration were $76.3 billion at December 31, 2018 compared to $77.6 billion at September 30, 2018. Fiduciary assets totaled $44.8 billion at December 31, 2018 and $45.6 billion at September 30, 2018.

Net Interest Revenue

Net interest revenue was $285.7 million for the fourth quarter of 2018, a $44.8 million increase over the third quarter of 2018. The CoBiz acquisition added $43.1 million to net interest revenue, including $6.4 million of net purchase accounting discount accretion.

Net interest margin was 3.40 percent for the fourth quarter of 2018, up 19 basis points over the third quarter of 2018. The yield on average earning assets was 4.33 percent, a 29 basis point increase. The yield on the loan portfolio was 5.09 percent, up 29 basis points including 12 basis points from net purchase accounting discount accretion. The remaining increase is due primarily to an increase in short-term market interest rates related to the Federal Reserve's 25 basis point rate increase in September. The yield on the available for sale securities portfolio increased 14 basis points to 2.51 percent. The yield on the trading securities portfolio was up 12 basis points.

Funding costs were 1.42 percent, up 17 basis points. The cost of interest-bearing deposits increased 10 basis points to 0.87 percent. The cost of other borrowed funds was up 29 basis points to 2.33 percent. The benefit to net interest margin from assets funded by non-interest liabilities increased to 49 basis points from 42 basis points in the third quarter of 2018.

Average earning assets increased $3.8 billion compared to the third quarter of 2018, primarily related to the CoBiz acquisition. Average loan balances were up $3.4 billion. Trading securities balances increased $167 million and interest-bearing cash and cash equivalents balances decreased $126 million. Available for sale securities increased $576 million. Average interest-bearing deposit balances increased $1.8 billion compared to the third quarter of 2018 and borrowed funds increased $608 million.

Fees and Commissions Revenue

Fees and commissions revenue totaled $160.1 million for the fourth quarter of 2018, a decrease of $6.1 million due largely to a $15.4 million fee earned on the sale of client assets in the third quarter. CoBiz added $8.5 million to fees and commissions revenue in the fourth quarter of 2018. Excluding these items, fees and commissions revenue was consistent with the prior quarter.

Brokerage and trading revenue increased $1.6 million due primarily to customer risk management products.

Mortgage banking revenue decreased $1.7 million. Rising interest rates combined with seasonal production reductions and increased market competition decreased mortgage production volume by $137 million. Mortgage gain on sale margins decreased 11 basis points.

Operating Expense

Total operating expense was $284.6 million for the fourth quarter of 2018, an increase of $32.0 million compared to the third quarter of 2018. CoBiz closing and integration costs were $14.5 million in the fourth quarter of 2018. The following discussion excludes the impact of these costs.

Personnel expense increased $11.5 million including $19.3 million due to the addition of CoBiz operations. Incentive compensation expense decreased $10.8 million mainly due to changes in vesting assumptions related to the Company's earnings per share growth relative to a defined peer group.

Non-personnel expense increased $6.8 million. The fourth quarter included $10.4 million related to CoBiz operations. Excluding this impact, non-personnel expense decreased $3.6 million or 3 percent. Data processing and communications expense decreased $4.1 million, primarily due to impairment of a software license in the third quarter. Insurance expense decreased $2.0 million due to the elimination of a large bank deposit insurance surcharge assessed by the FDIC. The fourth quarter included a $2.8 million contribution to the BOKF Foundation.

Income Taxes

The effective tax rate for the fourth quarter is less than 16 percent, nearly 7 percentage points lower than usual. The 2017 tax returns were finalized in the fourth quarter. This resolved several uncertainties caused by last year's Tax Cuts and Jobs Act. Resolution of these uncertainties and other routine adjustments reduced tax expense for the quarter by $8.6 million. This is a single-quarter impact and the tax rate will revert to a 22-23 percent level.

Loans, Deposits and Capital

Loans

Outstanding loans were $21.7 billion at December 31, 2018, up $3.3 billion over September 30, 2018. Excluding $2.9 billion of loans, net of fair value adjustments, added by the CoBiz acquisition, loans were up $393 million or 2 percent. Loan growth continued to be focused in commercial and commercial real estate. The fluctuation discussion following excludes acquired loans.

Outstanding commercial loan balances grew by $230 million or 2 percent over September 30, 2018. Energy loan balances were up $275 million, consistent with our ongoing support and commitment to the oil and gas industry. Other commercial and industrial loans were up $125 million. Service sector loans increased $50 million and healthcare sector loans increased by $47 million. This growth was partially offset by a $182 million decrease in wholesale/retail sector loans and an $82 million decrease in manufacturing sector loans.

Commercial real estate loan balances continued to grow, up $122 million or 3 percent over September 30, 2018. Loans secured by office buildings increased $79 million and loans secured by multifamily residential properties increased $40 million.

Deposits

Period-end deposits totaled $25.3 billion at December 31, 2018, a $3.6 billion increase compared to September 30, 2018, including $3.3 billion related to CoBiz. Demand deposit balances increased $1.4 billion, interest-bearing transaction account balances increased $2.2 billion and time deposit balances increased by $38 million.

Capital

The company's common equity Tier 1 capital ratio was 10.92 percent at December 31, 2018. In addition, the company's Tier 1 capital ratio was 10.92 percent, total capital ratio was 12.50 percent, and leverage ratio was 8.96 percent at December 31, 2018. At September 30, 2018, the company's common equity Tier 1 capital ratio was 12.07 percent, Tier 1 capital ratio was 12.07 percent, total capital ratio was 13.37 percent, and leverage ratio was 9.90 percent.

The company's tangible common equity ratio, a non-GAAP measure, was 8.82 percent at December 31, 2018 and 9.55 percent at September 30, 2018. 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 $267 million or 1.23 percent of outstanding loans and repossessed assets at December 31, 2018, compared to $261 million or 1.42 percent at September 30, 2018. Nonperforming assets that are not guaranteed by U.S. government agencies totaled $174 million or 0.81 percent of outstanding loans and repossessed assets (excluding those guaranteed by U.S. government agencies) at December 31, 2018, compared to $170 million or 0.93 percent at September 30, 2018. The CoBiz acquisition added $18 million to nonperforming assets during the fourth quarter, net of fair value adjustments.

Nonaccruing loans were $163 million or 0.75 percent of outstanding loans at December 31, 2018. Nonaccruing commercial loans totaled $100 million or 0.73 percent of outstanding commercial loans. Nonaccruing commercial real estate loans totaled $22 million or 0.45 percent of outstanding commercial real estate loans. Nonaccruing residential mortgage loans totaled $42 million or 1.86 percent of outstanding residential mortgage loans.

Excluding CoBiz, nonaccruing loans decreased $2.2 million from September 30, 2018. Wholesale/retail sector loans decreased $8.6 million, energy loans decreased $7.5 million and healthcare sector loans decreased $4.6 million. These decreases were partially offset by a $20 million increase in nonaccruing retail sector loans. New nonaccruing loans identified in the fourth quarter totaled $44 million, offset by $31 million in payments received and $15 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 $215 million at December 31, compared to $176 million at September 30. The increase was primarily due to the addition of $65 million of acquired potential problem loans. Potential problem loans from the legacy BOKF portfolio decreased $26 million.

Net charge-offs were $12.3 million or 0.23 percent of average loans on an annualized basis for fourth quarter of 2018, compared to $9.0 million or 0.20 percent of average loans on an annualized basis for the third quarter of 2018. Net charge-offs were 0.18 percent of average loans over the last four quarters. Net charge-offs for the fourth quarter were primarily related to a single wholesale/retail sector borrower and a single energy production borrower, both of which had previously been identified as impaired and appropriately reserved. Gross charge-offs were $14.5 million for the fourth quarter compared to $11.1 million for the previous quarter. Recoveries totaled $2.2 million for the fourth quarter of 2018 and $2.1 million for the third quarter of 2018.

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 $9.0 million provision for credit losses was appropriate for the fourth quarter of 2018. The company recorded $4.0 million provision for credit losses in the third quarter of 2018.

The combined allowance for credit losses totaled $209 million or 0.97 percent of outstanding loans and 134 percent of nonaccruing loans at December 31, excluding residential mortgage loans guaranteed by U.S. government agencies. Excluding loans from the CoBiz acquisition, which are measured at acquisition-date fair value, the combined allowance for loan losses was 1.12 percent of outstanding loans and 146 percent of nonaccruing loans at December 31. The allowance for loan losses was $207 million and the accrual for off-balance sheet credit losses was $1.8 million. At September 30, the combined allowance for credit losses was $213 million or 1.16 percent of outstanding loans and 146 percent of nonaccruing loans, excluding loans guaranteed by U.S. government agencies. The allowance for loan losses was $211 million and the accrual for off-balance sheet credit losses was $2.0 million.

Securities and Derivatives

The fair value of the available for sale securities portfolio totaled $8.9 billion at December 31, 2018, a $785 million increase compared to September 30, 2018. At December 31, 2018, the available for sale securities portfolio consisted primarily of $5.8 billion of residential mortgage-backed securities fully backed by U.S. government agencies and $3.0 billion of commercial mortgage-backed securities fully backed by U.S. government agencies. At December 31, 2018, the available for sale securities portfolio had a net unrealized loss of $95 million compared to a $217 million net unrealized loss at September 30, 2018.

Trading securities increased $344 million to $2.0 billion during the fourth quarter of 2018 as a result of the company providing continued liquidity to its core client base of mortgage originators. The company holds an inventory of trading 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.

The net economic cost of the changes in fair value of mortgage servicing rights and related economic hedges was $11.7 million during the fourth quarter of 2018, including a $24.2 million decrease in the fair value of mortgage servicing rights, a $11.9 million increase in the fair value of securities and derivative contracts held as an economic hedge, and $695 thousand of related net interest revenue largely driven by a 60 basis point drop in the primary mortgage interest rate in the last two months of the fourth quarter.

The fair value of mortgage servicing rights increased by $6.0 million during the third quarter of 2018. The fair value of securities and interest rate derivative contracts held as an economic hedge of mortgage servicing rights decreased by $7.2 million. Related net interest revenue was $1.1 million during the third quarter of 2018.

Commercial Banking

Net income for Commercial Banking was $84.6 million for the fourth quarter of 2018, consistent with the third quarter of 2018. Increased net interest revenue was offset by increased net charge-offs.

Average loan balances increased $307 million or 2 percent, largely due to increases in energy and commercial real estate loans. Average customer deposits were $8.4 billion, a decrease of $240 million or 3 percent, mostly due to the energy and real estate sectors. The fourth quarter of 2018 saw a shift in the deposit mix with demand deposit balances declining $330 million and interest-bearing transaction deposits increasing $95 million.

Both fees and commissions revenue and operating expenses were consistent with the third quarter of 2018. There has been continued success in leading syndicated loan transactions, which has led to a record year for syndication revenue.

Consumer Banking

Net income from Consumer Banking was $2.7 million in the fourth quarter of 2018, a decrease of $5.6 million or 67 percent. The net economic cost of the changes in fair value of mortgage servicing rights and related economic hedges was $11.7 million for the fourth quarter of 2018 compared to $156 thousand for the third quarter of 2018.

Net interest revenue from Consumer Banking activities increased $2.3 million. Average loans increased $26 million or 2 percent over the third quarter of 2018. Average deposits decreased $38 million or 1 percent due to a seasonal reduction in mortgage escrow accounts related to annual property tax payments.

Revenues from mortgage banking activities decreased $1.6 million from the prior quarter due to rising interest rates, increased market competition and seasonal production decreases. Mortgage production volume declined 21 percent compared to the prior quarter. Operating expenses decreased $1.9 million as expenses are reduced to align with lower mortgage production.

Wealth Management

Net income for Wealth Management decreased $11.6 million to $17.5 million during the fourth quarter of 2018. This decrease included an after tax benefit of $11.5 million as a result of a fee earned on the sale of client assets in the third quarter. Excluding this fee, fiduciary and asset management fees produced relatively consistent results compared to the third quarter of 2018.

Average loans increased $9 million or 1 percent to $1.4 billion. Average deposits were stable at $5.5 billion. Assets under management or administration were $76.3 billion at December 31, 2018 compared to $77.6 billion at September 30, 2018. Fiduciary assets totaled $44.8 billion at December 31, 2018 and $45.6 billion at September 30, 2018.

Conference Call and Webcast

The company will hold a conference call at 9 a.m. Central time on Wednesday, January 30, 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 # 13686207.

About BOK Financial Corporation

BOK Financial Corporation is a $38 billion regional financial services company based in Tulsa, Oklahoma. The company's stock is publicly traded on NASDAQ under the Global Select market listings (symbol: BOKF). BOK Financial's holdings include BOKF, NA, CoBiz Bank, BOK Financial Securities, Inc. and The Milestone Group, Inc. BOKF, NA operates TransFund, Cavanal Hill Investment Management, BOK Financial Asset Management, Inc. and seven banking divisions: Bank of Albuquerque, Bank of Arizona, Bank of Arkansas, Mobank, Bank of Oklahoma, Bank of Texas and Colorado State Bank and Trust. Through its subsidiaries, the company provides commercial and consumer banking, investment and trust 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 December 31, 2018 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.

BALANCE SHEETS -- UNAUDITED BOK FINANCIAL CORPORATION (In thousands)
	Dec. 31, 2018			Sept. 30, 2018			Dec. 31, 2017
ASSETS
Cash and due from banks	$	741,749		$	815,458		$	602,510
Interest-bearing cash and cash equivalents	401,675			430,789			1,714,544
Trading securities	1,956,923			1,613,400			462,676
Investment securities	355,187			374,039			461,793
Available for sale securities	8,857,120			8,072,014			8,321,578
Fair value option securities	283,235			452,150			755,054
Restricted equity securities	344,447			311,189			320,189
Residential mortgage loans held for sale	149,221			175,866			221,378
Loans:
Commercial	13,636,078			11,576,101			10,733,975
Commercial real estate	4,764,813			3,804,675			3,479,987
Residential mortgage	2,230,033			1,971,742			1,973,686
Personal	1,025,806			996,941			965,776
Total loans	21,656,730			18,349,459			17,153,424
Allowance for loan losses	(207,457		)	(210,569		)	(230,682		)
Loans, net of allowance	21,449,273			18,138,890			16,922,742
Premises and equipment, net	330,033			327,129			317,335
Receivables	204,960			277,738			178,800
Goodwill	1,049,263			447,430			447,430
Intangible assets, net	134,849			33,370			28,658
Mortgage servicing rights	259,254			284,673			252,867
Real estate and other repossessed assets, net	17,487			24,515			28,437
Derivative contracts, net	320,929			349,481			220,502
Cash surrender value of bank-owned life insurance	381,608			323,628			316,498
Receivable on unsettled securities sales	336,400			421,313			340,077
Other assets	446,891			416,792			359,092
TOTAL ASSETS	$	38,020,504		$	33,289,864		$	32,272,160

LIABILITIES AND EQUITY
Deposits:
Demand	$	10,414,592		$	9,063,623		$	9,243,338
Interest-bearing transaction	12,206,576			9,990,219			10,250,393
Savings	529,215			502,601			469,158
Time	2,113,380			2,075,846			2,098,416
Total deposits	25,263,763			21,632,289			22,061,305
Funds purchased and repurchase agreements	1,018,411			790,741			574,963
Other borrowings	6,124,390			6,025,483			5,134,897
Subordinated debentures	275,913			144,707			144,677
Accrued interest, taxes and expense	192,826			231,592			164,895
Due on unsettled securities purchases	156,370			414,283			338,745
Derivative contracts, net	362,306			252,387			171,963
Other liabilities	183,480			172,622			162,381
TOTAL LIABILITIES	33,577,459			29,664,104			28,753,826
Shareholders' equity:
Capital, surplus and retained earnings	4,504,694			3,777,394			3,531,541
Accumulated other comprehensive loss	(72,585		)	(162,362		)	(36,174		)
TOTAL SHAREHOLDERS' EQUITY	4,432,109			3,615,032			3,495,367
Non-controlling interests	10,936			10,728			22,967
TOTAL EQUITY	4,443,045			3,625,760			3,518,334
TOTAL LIABILITIES AND EQUITY	$	38,020,504		$	33,289,864		$	32,272,160

AVERAGE BALANCE SHEETS -- UNAUDITED BOK FINANCIAL CORPORATION (in thousands)
	Three Months Ended
	Dec. 31, 2018			Sept. 30, 2018			June 30, 2018			Mar. 31, 2018			Dec. 31, 2017
ASSETS
Interest-bearing cash and cash equivalents	$	563,132		$	688,872		$	1,673,387		$	2,059,517		$	1,976,395
Trading securities	1,929,601			1,762,794			1,482,302			933,404			560,321
Investment securities	364,737			379,566			399,088			441,207			462,869
Available for sale securities	8,704,963			8,129,214			8,163,142			8,236,938			8,435,916
Fair value option securities	277,575			469,398			487,192			626,251			792,647
Restricted equity securities	362,729			328,842			348,546			349,176			337,673
Residential mortgage loans held for sale	179,553			207,488			218,600			199,380			257,927
Loans:
Commercial	13,587,344			11,484,200			11,189,899			10,871,569			10,751,235
Commercial real estate	4,747,784			3,774,470			3,660,166			3,491,335			3,485,583
Residential mortgage	2,222,063			1,956,089			1,915,015			1,937,198			1,976,860
Personal	1,022,140			989,026			986,162			961,379			967,329
Total loans	21,579,331			18,203,785			17,751,242			17,261,481			17,181,007
Allowance for loan losses	(209,613		)	(214,160		)	(222,856		)	(228,996		)	(246,143		)
Total loans, net	21,369,718			17,989,625			17,528,386			17,032,485			16,934,864
Total earning assets	33,752,008			29,955,799			30,300,643			29,878,358			29,758,612
Cash and due from banks	731,700			578,905			571,333			564,585			576,737
Derivative contracts, net	299,319			294,126			318,375			278,694			292,961
Cash surrender value of bank-owned life insurance	379,893			322,038			319,507			317,334			315,034
Receivable on unsettled securities sales	799,548			768,785			618,240			998,803			821,275
Other assets	2,423,275			1,776,164			1,777,937			1,687,178			1,687,496
TOTAL ASSETS	$	38,385,743		$	33,695,817		$	33,906,035		$	33,724,952		$	33,452,115

LIABILITIES AND EQUITY
Deposits:
Demand	$	10,648,683		$	9,325,002		$	9,223,327		$	9,151,272		$	9,417,351
Interest-bearing transaction	11,773,651			10,010,031			10,189,354			10,344,469			10,142,744
Savings	526,275			503,821			503,671			480,110			466,496
Time	2,146,786			2,097,441			2,138,880			2,151,044			2,134,469
Total deposits	25,095,395			21,936,295			22,055,232			22,126,895			22,161,060
Funds purchased and repurchase agreements	1,205,568			1,193,583			593,250			532,412			488,330
Other borrowings	6,361,141			5,765,440			6,497,020			6,326,967			6,209,903
Subordinated debentures	276,378			144,702			144,692			144,682			144,673
Derivative contracts, net	268,848			185,029			235,543			223,373			288,408
Due on unsettled securities purchases	493,887			544,263			527,804			558,898			332,155
Other liabilities	341,438			311,605			340,322			333,151			312,196
TOTAL LIABILITIES	34,042,655			30,080,917			30,393,863			30,246,378			29,936,725
Total equity	4,343,088			3,614,900			3,512,172			3,478,574			3,515,390
TOTAL LIABILITIES AND EQUITY	$	38,385,743		$	33,695,817		$	33,906,035		$	33,724,952		$	33,452,115

STATEMENTS OF EARNINGS -- UNAUDITED BOK FINANCIAL CORPORATION (in thousands, except per share data)
	Three Months Ended						Year Ended
	Dec. 31,						Dec. 31,
	2018			2017			2018			2017

Interest revenue	$	365,592		$	255,767		$	1,228,426		$	972,751
Interest expense	79,906			38,904			243,559			131,050
Net interest revenue	285,686			216,863			984,867			841,701
Provision for credit losses	9,000			(7,000		)	8,000			(7,000		)
Net interest revenue after provision for credit losses	276,686			223,863			976,867			848,701
Other operating revenue:
Brokerage and trading revenue	28,101			33,045			108,323			131,601
Transaction card revenue¹	20,664			20,028			84,025			81,143
Fiduciary and asset management revenue	43,665			41,773			184,703			162,889
Deposit service charges and fees	29,393			27,679			112,153			112,079
Mortgage banking revenue	21,880			24,362			97,787			104,719
Other revenue	16,430			11,013			56,651			49,959
Total fees and commissions	160,133			157,900			643,642			642,390
Other gains (losses), net	(8,331		)	1,301			(2,731		)	11,213
Gain (loss) on derivatives, net	11,167			(3,045		)	(422		)	779
Loss on fair value option securities, net	(282		)	(4,238		)	(25,572		)	(2,733		)
Change in fair value of mortgage servicing rights	(24,233		)	5,898			4,668			172
Gain (loss) on available for sale securities, net	(1,999		)	(488		)	(2,801		)	4,428
Total other operating revenue	136,455			157,328			616,784			656,249
Other operating expense:
Personnel	160,706			145,329			583,131			573,408
Business promotion	9,207			7,317			30,523			28,877
Charitable contributions to BOKF Foundation	2,846			2,000			2,846			2,000
Professional fees and services	20,712			15,344			59,099			51,067
Net occupancy and equipment	27,780			22,403			97,981			86,477
Insurance	4,248			6,555			23,318			19,653
Data processing and communications¹	27,575			28,903			114,796			108,125
Printing, postage and supplies	5,232			3,781			17,169			15,689
Net losses and operating expenses of repossessed assets	2,581			340			17,052			9,687
Amortization of intangible assets	5,331			1,430			9,620			6,779
Mortgage banking costs	11,518			14,331			46,298			52,856
Other expense	6,907			6,746			26,333			32,054
Total other operating expense	284,643			254,479			1,028,166			986,672

Net income before taxes	128,498			126,712			565,485			518,278
Federal and state income taxes	20,121			54,347			119,061			182,593

Net income	108,377			72,365			446,424			335,685
Net income (loss) attributable to non-controlling interests	(79		)	(127		)	778			1,041
Net income attributable to BOK Financial Corporation shareholders	$	108,456		$	72,492		$	445,646		$	334,644

Average shares outstanding:
Basic	71,808,029			64,793,005			66,628,640			64,745,364
Diluted	71,833,334			64,843,179			66,662,273			64,806,284

Net income per share:
Basic	$	1.50		$	1.11		$	6.63		$	5.11
Diluted	$	1.50		$	1.11		$	6.63		$	5.11

¹Non-GAAP measure to net interchange charges for periods prior to 2018 between transaction card revenue and data processing and communications expense. This measure has no effect on net income or earnings per share.

FINANCIAL HIGHLIGHTS -- UNAUDITED BOK FINANCIAL CORPORATION (in thousands, except ratio and share data)
	Three Months Ended
	Dec. 31, 2018			Sept. 30, 2018			June 30, 2018			Mar. 31, 2018			Dec. 31, 2017
Capital:
Period-end shareholders' equity	$	4,432,109		$	3,615,032		$	3,553,431		$	3,495,029		$	3,495,367
Risk weighted assets	$	30,742,095		$	27,398,072		$	27,004,559		$	26,025,660		$	25,733,711
Risk-based capital ratios:
Common equity tier 1	10.92		%	12.07		%	11.92		%	12.06		%	12.05		%
Tier 1	10.92		%	12.07		%	11.92		%	12.06		%	12.05		%
Total capital	12.50		%	13.37		%	13.26		%	13.49		%	13.54		%
Leverage ratio	8.96		%	9.90		%	9.57		%	9.40		%	9.31		%
Tangible common equity ratio¹	8.82		%	9.55		%	9.21		%	9.18		%	9.50		%

Common stock:
Book value per share	$	61.45		$	55.25		$	54.30		$	53.39		$	53.45
Tangible book value per share	45.03			47.90			46.95			46.10			46.17
Market value per share:
High	$	98.29		$	105.22		$	106.65		$	107.00		$	93.97
Low	$	69.96		$	92.40		$	92.39		$	89.82		$	79.67
Cash dividends paid	$	35,977		$	32,591		$	29,340		$	29,342		$	29,328
Dividend payout ratio	33.17		%	27.79		%	25.65		%	27.80		%	40.46		%
Shares outstanding, net	72,122,932			65,434,258			65,439,090			65,459,505			65,394,937
Stock buy-back program:
Shares repurchased	525,000			—			8,257			82,583			80,000
Amount	$	45,057		$	—		$	824		$	7,584		$	7,403
Average price per share	$	85.82		$	—		$	99.84		$	91.83		$	92.54

Performance ratios (quarter annualized):
Return on average assets	1.12		%	1.38		%	1.35		%	1.27		%	0.86		%
Return on average equity	9.93		%	12.95		%	13.14		%	12.39		%	8.24		%
Net interest margin	3.40		%	3.21		%	3.17		%	2.99		%	2.97		%
Efficiency ratio³	63.24		%	61.59		%	61.76		%	64.93		%	66.07		%

Reconciliation of non-GAAP measures:
¹ Tangible common equity ratio:
Total shareholders' equity	$	4,432,109		$	3,615,032		$	3,553,431		$	3,495,029		$	3,495,367
Less: Goodwill and intangible assets, net	1,184,112			480,800			481,366			477,088			476,088
Tangible common equity	$	3,247,997		$	3,134,232		$	3,072,065		$	3,017,941		$	3,019,279

Total assets	$	38,020,504		$	33,289,864		$	33,833,107		$	33,361,492		$	32,272,160
Less: Goodwill and intangible assets, net	1,184,112			480,800			481,366			477,088			476,088
Tangible assets	$	36,836,392		$	32,809,064		$	33,351,741		$	32,884,404		$	31,796,072

Tangible common equity ratio	8.82		%	9.55		%	9.21		%	9.18		%	9.50		%

FINANCIAL HIGHLIGHTS -- UNAUDITED BOK FINANCIAL CORPORATION (in thousands, except ratio and share data)
	Three Months Ended
	Dec. 31, 2018			Sept. 30, 2018			June 30, 2018			Mar. 31, 2018			Dec. 31, 2017
Other data:
Fiduciary assets	$	44,841,339		$	45,560,107		$	46,531,900		$	46,648,290		$	48,761,477
Tax equivalent interest	$	3,069		$	1,894		$	1,983		$	2,010		$	4,131
Net unrealized loss on available for sale securities	$	(95,271	)	$	(216,793	)	$	(180,602	)	$	(148,247	)	$	(47,497	)

Mortgage banking:
Mortgage production revenue	$	5,073		$	7,250		$	9,915		$	9,452		$	7,786

Mortgage loans funded for sale	$	497,353		$	651,076		$	773,910		$	664,958		$	840,080
Add: current period-end outstanding commitments	160,848			197,752			251,231			298,318			222,919
Less: prior period end outstanding commitments	197,752			251,231			298,318			222,919			334,337
Total mortgage production volume	$	460,449		$	597,597		$	726,823		$	740,357		$	728,662

Mortgage loan refinances to mortgage loans funded for sale	23		%	23		%	22		%	42		%	47		%
Gain on sale margin	1.10		%	1.21		%	1.36		%	1.28		%	1.07		%

Mortgage servicing revenue	$	16,807		$	16,286		$	16,431		$	16,573		$	16,576
Average outstanding principal balance of mortgage loans serviced for others	21,706,541			21,895,041			21,986,065			22,027,726			22,054,877
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	$	12,162		$	(2,843	)	$	(3,070	)	$	(5,698	)	$	(3,057	)
Loss on fair value option securities, net	(282		)	(4,385		)	(3,341		)	(17,564		)	(4,238		)
Gain (loss) on economic hedge of mortgage servicing rights	11,880			(7,228		)	(6,411		)	(23,262		)	(7,295		)
Gain (loss) on changes in fair value of mortgage servicing rights	(24,233		)	5,972			1,723			21,206			5,898
Loss on changes in fair value of mortgage servicing rights, net of economic hedges, included in other operating revenue	(12,353		)	(1,256		)	(4,688		)	(2,056		)	(1,397		)
Net interest revenue on fair value option securities²	695			1,100			1,203			1,800			2,656
Total economic benefit (cost) of changes in the fair value of mortgage servicing rights, net of economic hedges	$	(11,658	)	$	(156	)	$	(3,485	)	$	(256	)	$	1,259

²Actual interest earned on fair value option securities less internal transfer-priced cost of funds.
³Periods prior to 2018 are shown on a comparable basis to net interchange charges between transaction card revenue and data processing and communications expense.

QUARTERLY EARNINGS TREND -- UNAUDITED BOK FINANCIAL CORPORATION (in thousands, except ratio and per share data)
	Three Months Ended
	Dec. 31, 2018			Sept. 30, 2018			June 30, 2018			Mar. 31, 2018			Dec. 31, 2017

Interest revenue	$	365,592		$	303,247		$	294,180		$	265,407		$	255,767
Interest expense	79,906			62,364			55,618			45,671			38,904
Net interest revenue	285,686			240,883			238,562			219,736			216,863
Provision for credit losses	9,000			4,000			—			(5,000		)	(7,000		)
Net interest revenue after provision for credit losses	276,686			236,883			238,562			224,736			223,863
Other operating revenue:
Brokerage and trading revenue	28,101			23,086			26,488			30,648			33,045
Transaction card revenue¹	20,664			21,396			20,975			20,990			20,028
Fiduciary and asset management revenue	43,665			57,514			41,692			41,832			41,773
Deposit service charges and fees	29,393			27,765			27,834			27,161			27,679
Mortgage banking revenue	21,880			23,536			26,346			26,025			24,362
Other revenue	16,430			12,968			13,996			13,257			11,013
Total fees and commissions	160,133			166,265			157,331			159,913			157,900
Other gains (losses), net	(8,331		)	2,686			4,505			(1,591		)	1,301
Gain (loss) on derivatives, net	11,167			(2,847		)	(3,057		)	(5,685		)	(3,045		)
Loss on fair value option securities, net	(282		)	(4,385		)	(3,341		)	(17,564		)	(4,238		)
Change in fair value of mortgage servicing rights	(24,233		)	5,972			1,723			21,206			5,898
Gain (loss) on available for sale securities, net	(1,999		)	250			(762		)	(290		)	(488		)
Total other operating revenue	136,455			167,941			156,399			155,989			157,328
Other operating expense:
Personnel	160,706			143,531			138,947			139,947			145,329
Business promotion	9,207			7,620			7,686			6,010			7,317
Charitable contributions to BOKF Foundation	2,846			—			—			—			2,000
Professional fees and services	20,712			13,209			14,978			10,200			15,344
Net occupancy and equipment	27,780			23,394			22,761			24,046			22,403
Insurance	4,248			6,232			6,245			6,593			6,555
Data processing and communications¹	27,575			31,665			27,739			27,817			28,903
Printing, postage and supplies	5,232			3,837			4,011			4,089			3,781
Net losses (gains) and operating expenses of repossessed assets	2,581			4,044			2,722			7,705			340
Amortization of intangible assets	5,331			1,603			1,386			1,300			1,430
Mortgage banking costs	11,518			11,741			12,890			10,149			14,331
Other expense	6,907			5,741			7,111			6,574			6,746
Total other operating expense	284,643			252,617			246,476			244,430			254,479
Net income before taxes	128,498			152,207			148,485			136,295			126,712
Federal and state income taxes	20,121			34,662			33,330			30,948			54,347
Net income	108,377			117,545			115,155			105,347			72,365
Net income (loss) attributable to non-controlling interests	(79		)	289			783			(215		)	(127		)
Net income attributable to BOK Financial Corporation shareholders	$	108,456		$	117,256		$	114,372		$	105,562		$	72,492

Average shares outstanding:
Basic	71,808,029			64,901,095			64,901,975			64,847,334			64,793,005
Diluted	71,833,334			64,934,351			64,937,226			64,888,033			64,843,179
Net income per share:
Basic	$	1.50		$	1.79		$	1.75		$	1.61		$	1.11
Diluted	$	1.50		$	1.79		$	1.75		$	1.61		$	1.11

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

	Dec. 31, 2018		Sept. 30, 2018		June 30, 2018		Mar. 31, 2018		Dec. 31, 2017
Commercial:
Energy	$	3,590,333	$	3,294,867	$	3,147,219	$	2,969,618	$	2,930,156
Services	3,252,146		2,597,711		2,510,445		2,481,754		2,522,025
Healthcare	2,733,537		2,370,455		2,285,732		2,289,779		2,243,487
Wholesale/retail	1,621,158		1,650,729		1,699,554		1,531,576		1,471,256
Public finance	876,336		491,597		507,629		522,274		541,775
Manufacturing	730,521		660,582		647,816		559,695		496,774
Other commercial and industrial	832,047		510,160		550,644		564,971		528,502
Total commercial	13,636,078		11,576,101		11,349,039		10,919,667		10,733,975

Commercial real estate:
Multifamily	1,288,065		1,120,166		1,056,984		1,008,903		980,017
Office	1,072,920		824,829		820,127		737,144		831,770
Retail	919,082		759,423		768,024		750,396		691,532
Industrial	778,106		696,774		653,384		613,608		573,014
Residential construction and land development	148,584		101,872		118,999		117,458		117,245
Other commercial real estate	558,056		301,611		294,702		279,273		286,409
Total commercial real estate	4,764,813		3,804,675		3,712,220		3,506,782		3,479,987

Residential mortgage:
Permanent mortgage	1,320,165		1,094,926		1,068,412		1,047,785		1,043,435
Permanent mortgages guaranteed by U.S. government agencies	190,866		180,718		169,653		177,880		197,506
Home equity	719,002		696,098		704,185		720,104		732,745
Total residential mortgage	2,230,033		1,971,742		1,942,250		1,945,769		1,973,686

Personal	1,025,806		996,941		1,000,187		965,632		965,776

Total	$	21,656,730	$	18,349,459	$	18,003,696	$	17,337,850	$	17,153,424

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

	Dec. 31, 2018		Sept. 30, 2018		June 30, 2018		Mar. 31, 2018		Dec. 31, 2017

Oklahoma:
Commercial	$	3,491,117	$	3,609,109	$	3,465,407	$	3,265,013	$	3,238,720
Commercial real estate	700,756		651,315		662,665		668,031		682,037
Residential mortgage	1,440,566		1,429,843		1,403,658		1,419,281		1,435,432
Personal	375,543		376,201		362,846		353,128		342,212
Total Oklahoma	6,007,982		6,066,468		5,894,576		5,705,453		5,698,401

Texas:
Commercial	5,438,133		5,115,646		4,922,451		4,715,841		4,520,401
Commercial real estate	1,341,783		1,354,679		1,336,101		1,254,421		1,261,864
Residential mortgage	266,805		253,265		243,400		229,761		233,675
Personal	394,743		381,452		394,021		363,608		375,084
Total Texas	7,441,464		7,105,042		6,895,973		6,563,631		6,391,024

New Mexico:
Commercial	340,489		325,048		305,167		315,701		343,296
Commercial real estate	383,670		392,494		386,878		348,485		341,282
Residential mortgage	87,346		88,110		90,581		93,490		98,018
Personal	10,662		11,659		11,107		11,667		11,721
Total New Mexico	822,167		817,311		793,733		769,343		794,317

Arkansas:
Commercial	111,338		102,237		93,217		94,430		95,644
Commercial real estate	141,898		106,701		90,807		88,700		87,393
Residential mortgage	7,537		7,278		6,927		7,033		6,596
Personal	11,955		12,126		12,331		9,916		9,992
Total Arkansas	272,728		228,342		203,282		200,079		199,625

Colorado:
Commercial	2,275,069		1,132,500		1,165,721		1,180,655		1,130,714
Commercial real estate	963,575		354,543		267,065		210,801		174,201
Residential mortgage	251,849		68,694		64,839		64,530		63,350
Personal	72,916		56,999		60,504		63,118		63,115
Total Colorado	3,563,409		1,612,736		1,558,129		1,519,104		1,431,380

Arizona:
Commercial	1,320,139		621,658		681,852		624,106		687,792
Commercial real estate	889,903		666,562		710,784		672,319		660,094
Residential mortgage	97,959		44,659		47,010		39,227		41,771
Personal	68,546		67,280		65,541		57,023		57,140
Total Arizona	2,376,547		1,400,159		1,505,187		1,392,675		1,446,797

Kansas/Missouri:
Commercial	659,793		669,903		715,224		723,921		717,408
Commercial real estate	343,228		278,381		257,920		264,025		273,116
Residential mortgage	77,971		79,893		85,835		92,447		94,844
Personal	91,441		91,224		93,837		107,172		106,512
Total Kansas/Missouri	1,172,433		1,119,401		1,152,816		1,187,565		1,191,880

TOTAL BOK FINANCIAL	$	21,656,730	$	18,349,459	$	18,003,696	$	17,337,850	$	17,153,424

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)

	Dec. 31, 2018		Sept. 30, 2018		June 30, 2018		Mar. 31, 2018		Dec. 31, 2017
Oklahoma:
Demand	$	3,610,593	$	3,564,307	$	3,867,933	$	4,201,842	$	3,885,008
Interest-bearing:
Transaction	6,445,831		6,010,972		5,968,460		6,051,302		5,901,293
Savings	288,210		288,080		289,202		289,351		265,870
Time	1,118,643		1,128,810		1,207,471		1,203,534		1,092,133
Total interest-bearing	7,852,684		7,427,862		7,465,133		7,544,187		7,259,296
Total Oklahoma	11,463,277		10,992,169		11,333,066		11,746,029		11,144,304

Texas:
Demand	3,289,659		3,353,248		3,317,656		3,015,869		3,239,098
Interest-bearing:
Transaction	2,294,740		2,181,382		2,168,488		2,208,480		2,397,071
Savings	99,624		97,909		97,809		98,852		93,620
Time	423,880		453,119		445,500		475,967		502,879
Total interest-bearing	2,818,244		2,732,410		2,711,797		2,783,299		2,993,570
Total Texas	6,107,903		6,085,658		6,029,453		5,799,168		6,232,668

New Mexico:
Demand	691,692		722,188		770,974		695,060		663,353
Interest-bearing:
Transaction	571,347		593,760		586,593		555,414		552,393
Savings	58,194		57,794		59,415		60,596		55,647
Time	224,515		221,513		212,689		216,306		216,743
Total interest-bearing	854,056		873,067		858,697		832,316		824,783
Total New Mexico	1,545,748		1,595,255		1,629,671		1,527,376		1,488,136

Arkansas:
Demand	36,800		36,579		39,896		35,291		30,384
Interest-bearing:
Transaction	91,593		128,001		143,298		94,206		85,095
Savings	1,632		1,826		1,885		1,960		1,881
Time	8,726		10,214		10,771		11,878		14,045
Total interest-bearing	101,951		140,041		155,954		108,044		101,021
Total Arkansas	138,751		176,620		195,850		143,335		131,405

Colorado:
Demand	1,658,473		593,442		529,912		521,963		633,714
Interest-bearing:
Transaction	1,899,203		622,520		701,362		687,785		657,629
Savings	57,289		40,308		38,176		37,232		35,223
Time	274,877		217,628		208,049		215,330		224,962
Total interest-bearing	2,231,369		880,456		947,587		940,347		917,814
Total Colorado	3,889,842		1,473,898		1,477,499		1,462,310		1,551,528

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

	Dec. 31, 2018		Sept. 30, 2018		June 30, 2018		Mar. 31, 2018		Dec. 31, 2017
Arizona:
Demand	709,176		370,299		387,952		330,196		334,701
Interest-bearing:
Transaction	575,996		130,837		194,353		248,337		274,846
Savings	10,545		3,559		3,935		4,116		3,343
Time	43,051		23,927		22,447		21,009		20,394
Total interest-bearing	629,592		158,323		220,735		273,462		298,583
Total Arizona	1,338,768		528,622		608,687		603,658		633,284

Kansas/Missouri:
Demand	418,199		423,560		459,636		505,802		457,080
Interest-bearing:
Transaction	327,866		322,747		401,545		381,447		382,066
Savings	13,721		13,125		13,052		13,845		13,574
Time	19,688		20,635		20,805		22,230		27,260
Total interest-bearing	361,275		356,507		435,402		417,522		422,900
Total Kansas/Missouri	779,474		780,067		895,038		923,324		879,980

TOTAL BOK FINANCIAL	$	25,263,763	$	21,632,289	$	22,169,264	$	22,205,200	$	22,061,305

NET INTEREST MARGIN TREND -- UNAUDITED BOK FINANCIAL CORPORATION
	Three Months Ended
	Dec. 31, 2018		Sept. 30, 2018		June 30, 2018		Mar. 31, 2018		Dec. 31, 2017

TAX-EQUIVALENT ASSETS YIELDS
Interest-bearing cash and cash equivalents	2.23	%	1.98	%	1.86	%	1.57	%	1.27	%
Trading securities	4.10	%	3.98	%	3.63	%	3.40	%	3.38	%
Investment securities	4.26	%	4.06	%	3.95	%	3.78	%	3.98	%
Available for sale securities	2.51	%	2.37	%	2.30	%	2.23	%	2.21	%
Fair value option securities	3.56	%	3.25	%	3.16	%	2.95	%	2.90	%
Restricted equity securities	6.39	%	6.36	%	6.21	%	5.86	%	5.87	%
Residential mortgage loans held for sale	4.00	%	4.27	%	4.28	%	3.71	%	3.72	%
Loans	5.09	%	4.80	%	4.80	%	4.45	%	4.29	%
Allowance for loan losses
Loans, net of allowance	5.14	%	4.86	%	4.86	%	4.51	%	4.35	%
Total tax-equivalent yield on earning assets	4.33	%	4.04	%	3.91	%	3.61	%	3.49	%

COST OF INTEREST-BEARING LIABILITIES
Interest-bearing deposits:
Interest-bearing transaction	0.79	%	0.67	%	0.55	%	0.45	%	0.35	%
Savings	0.11	%	0.09	%	0.08	%	0.07	%	0.07	%
Time	1.54	%	1.40	%	1.29	%	1.25	%	1.17	%
Total interest-bearing deposits	0.87	%	0.77	%	0.66	%	0.57	%	0.48	%
Funds purchased and repurchase agreements	1.36	%	1.25	%	0.53	%	0.40	%	0.28	%
Other borrowings	2.51	%	2.20	%	1.96	%	1.60	%	1.36	%
Subordinated debt	5.38	%	5.55	%	5.67	%	5.61	%	5.55	%
Total cost of interest-bearing liabilities	1.42	%	1.25	%	1.11	%	0.93	%	0.79	%
Tax-equivalent net interest revenue spread	2.91	%	2.79	%	2.80	%	2.68	%	2.70	%
Effect of noninterest-bearing funding sources and other	0.49	%	0.42	%	0.37	%	0.31	%	0.27	%
Tax-equivalent net interest margin	3.40	%	3.21	%	3.17	%	2.99	%	2.97	%

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
	Dec. 31, 2018			Sept. 30, 2018			June 30, 2018			Mar. 31, 2018			Dec. 31, 2017
Nonperforming assets:
Nonaccruing loans:
Commercial	$	99,841		$	109,490		$	120,978		$	131,460		$	137,303
Commercial real estate	21,621			1,316			1,996			2,470			2,855
Residential mortgage	41,555			41,917			42,343			45,794			47,447
Personal	230			269			340			340			269
Total nonaccruing loans	163,247			152,992			165,657			180,064			187,874
Accruing renegotiated loans guaranteed by U.S. government agencies	86,428			83,347			75,374			74,418			73,994
Real estate and other repossessed assets	17,487			24,515			27,891			23,652			28,437
Total nonperforming assets	$	267,162		$	260,854		$	268,922		$	278,134		$	290,305
Total nonperforming assets excluding those guaranteed by U.S. government agencies	$	173,602		$	169,717		$	185,981		$	194,833		$	207,132

Nonaccruing loans by loan class:
Commercial:
Energy	$	47,494		$	54,033		$	65,597		$	89,942		$	92,284
Services	8,567			4,097			4,377			2,109			2,620
Healthcare	16,538			15,704			16,125			15,342			14,765
Manufacturing	8,919			9,202			2,991			3,002			5,962
Wholesale/retail	1,316			9,249			14,095			2,564			2,574
Public finance	—			—			—			—			—
Other commercial and industrial	17,007			17,205			17,793			18,501			19,098
Total commercial	99,841			109,490			120,978			131,460			137,303
Commercial real estate:
Retail	20,279			777			1,068			264			276
Residential construction and land development	350			350			350			1,613			1,832
Multifamily	301			—			—			—			—
Office	—			—			275			275			275
Industrial	—			—			—			—			—
Other commercial real estate	691			189			303			318			472
Total commercial real estate	21,621			1,316			1,996			2,470			2,855
Residential mortgage:
Permanent mortgage	23,951			22,855			23,105			24,578			25,193
Permanent mortgage guaranteed by U.S. government agencies	7,132			7,790			7,567			8,883			9,179
Home equity	10,472			11,272			11,671			12,333			13,075
Total residential mortgage	41,555			41,917			42,343			45,794			47,447
Personal	230			269			340			340			269
Total nonaccruing loans	$	163,247		$	152,992		$	165,657		$	180,064		$	187,874


Performing loans 90 days past due¹	$	1,338		$	518		$	879		$	90		$	633

Gross charge-offs	$	14,515		$	11,073		$	15,105		$	2,890		$	14,749
Recoveries	(2,168		)	(2,092		)	(4,578		)	(1,576		)	(3,061		)
Net charge-offs	$	12,347		$	8,981		$	10,527		$	1,314		$	11,688

Provision for credit losses	$	9,000		$	4,000		$	—		$	(5,000	)	$	(7,000	)

Allowance for loan losses to period end loans	0.96		%	1.15		%	1.19		%	1.29		%	1.34		%
Combined allowance for credit losses to period end loans	0.97		%	1.16		%	1.21		%	1.32		%	1.37		%
Nonperforming assets to period end loans and repossessed assets	1.23		%	1.42		%	1.49		%	1.60		%	1.69		%
Net charge-offs (annualized) to average loans	0.23		%	0.20		%	0.24		%	0.03		%	0.27		%
Allowance for loan losses to nonaccruing loans¹	132.89		%	145.02		%	136.09		%	130.84		%	129.09		%
Combined allowance for credit losses to nonaccruing loans¹	134.03		%	146.41		%	137.63		%	133.25		%	131.18		%

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	Dec. 31, 2018		Sept. 30, 2018		Dec. 31, 2017		4Q18 vs 3Q18		4Q18 vs 4Q17
Net interest revenue	$	148,359	$	145,147	$	132,185	2.2	%	12.2	%
Fees and commissions revenue	39,667		39,391		41,317		0.7	%	(4.0	)%
Other operating expense	49,725		49,135		48,849		1.2	%	1.8	%
Corporate expense allocations	11,015		11,028		7,846		(0.1	)%	40.4	%
Net income	84,588		84,965		62,138		(0.4	)%	36.1	%

Average assets	19,341,927		18,499,979		17,708,194		4.6	%	9.2	%
Average loans	15,628,731		15,321,600		14,385,927		2.0	%	8.6	%
Average deposits	8,393,016		8,633,204		8,799,166		(2.8	)%	(4.6	)%

Consumer Banking
Net interest revenue	$	41,364	$	39,044	$	37,044	5.9	%	11.7	%
Fees and commissions revenue	42,840		44,040		44,085		(2.7	)%	(2.8	)%
Other operating expense	51,240		53,186		57,542		(3.7	)%	(11.0	)%
Corporate expense allocations	15,939		15,863		16,743		0.5	%	(4.8	)%
Net income	2,741		8,365		2,500		(67.2	)%	9.6	%

Average assets	8,071,978		8,323,542		8,766,423		(3.0	)%	(7.9	)%
Average loans	1,745,642		1,719,679		1,741,148		1.5	%	0.3	%
Average deposits	6,542,188		6,580,395		6,622,149		(0.6	)%	(1.2	)%

Wealth Management
Net interest revenue	$	29,292	$	29,095	$	21,454	0.7	%	36.5	%
Fees and commissions revenue	67,607		83,562		76,095		(19.1	)%	(11.2	)%
Other operating expense	62,410		62,255		63,809		0.2	%	(2.2	)%
Corporate expense allocations	10,967		11,126		10,125		(1.4	)%	8.3	%
Net income	17,472		29,105		14,528		(40.0	)%	20.3	%

Average assets	8,687,234		8,498,363		7,373,081		2.2	%	17.8	%
Average loans	1,448,805		1,439,774		1,352,694		0.6	%	7.1	%
Average deposits	5,483,455		5,492,048		5,457,566		(0.2	)%	0.5	%
Fiduciary assets	44,841,339		45,560,107		48,761,477		(1.6	)%	(8.0	)%
Assets under management or administration	76,279,777		77,628,015		81,827,797		(1.7	)%	(6.8	)%

Contact:
Cody McAlester
+1 918-295-0486
cmcalester@bokf.com

BOK Financial Reports Quarterly Earnings of $108 million or $1.50 Per Share

Record Annual Earnings of $446 million or $6.63 Per Share

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