GlobeNewswire Inc | Oct 21, 2020 07:55AM EDT

October 21, 2020

TULSA, Okla., Oct. 21, 2020 (GLOBE NEWSWIRE) -- BOK Financial (NASDAQ: BOKF) today reported net earnings applicable to common shareholders for the third quarter of 2020 of $154 million, or $2.19 per diluted common share.

CEO Commentary

"Building off prior quarters, our large percentage of fee-based revenues provided a differentiated earnings outcome compared to many similar-sized financial institutions," said Steven G. Bradshaw, president and chief executive officer. "Both our Wealth Management and Mortgage businesses delivered impressively in a time of compressed net interest margin and unsure credit outcomes across the industry."

Bradshaw continued, "Beyond the financial success we've had this quarter, I'm incredibly proud of the impact we've made in our communities. We have increased our charitable investments from the BOKF Foundation and our employees also stepped up their collective volunteer hours to help address needs across our communities. Our top ranking in the 2020 American Banker reputation survey is a testament to the level of leadership and engagement our employees provide in our banking communities. We have earned the reputation as an organization known for unwavering integrity, and that is demonstrated in everything that we do. Whether it's the role we play in our communities or the financial results for our shareholders - it's more about actions than words at BOK Financial."

Third Quarter 2020 Financial Highlights

-- Net income was $154.0 million or $2.19 per diluted share for the third quarter of 2020 and $64.7 million or $0.92 per diluted share for the second quarter of 2020. Pre-provision net revenue was $204.6 million for the third quarter of 2020 compared to $215.0 million for the prior quarter. No provision for expected credit losses was necessary in the third quarter, while the second quarter of 2020 included a pre-tax provision for expected credit losses of $135.3 million. Our forecasts of economic conditions have improved since the previous quarter. -- Net interest revenue totaled $271.8 million, a decrease of $6.4 million. Discount accretion on acquired loans totaled $13.3 million in the third quarter of 2020 and $3.3 million in the prior quarter. Net interest margin was 2.81 percent compared to 2.83 percent in the second quarter of 2020. Excluding discount accretion, net interest margin was 2.67 percent compared to 2.80 percent in the prior quarter. -- Fees and commissions revenue totaled $222.9 million, an increase of $9.2 million. Brokerage and trading revenue increased $7.5 million, largely due to an increase trading revenue and customer hedging revenue. -- Operating expense was $301.3 million, an increase of $5.9 million. Personnel expense increased $3.6 million. Incentive compensation increased $5.6 million, largely related to vesting assumptions regarding the Company's earnings per share growth relative to a defined peer group. Non-personnel expense increased $2.3 million compared to the second quarter of 2020. Increases in net losses and expenses on two repossessed properties, professional fees and data processing and communications expense were partially offset by decreases in occupancy and equipment expense and other expenses. In addition, the second quarter of 2020 included a $3.0 million charitable contribution to the BOKF Foundation. -- Changes in the fair value of mortgage servicing rights and related economic hedges added $6.5 million during the third quarter of 2020 and $9.3 million in the prior quarter. -- Period-end loans decreased $353 million to $23.8 billion at September30, 2020, primarily due to continued paydowns of commercial loans. Average loans were relatively consistent with the second quarter at $24.1 billion. -- The allowance for loan losses totaled $420 million or 1.76 percent of outstanding loans at September30, 2020. The combined allowance for loan losses and accrual for off-balance sheet credit risk from unfunded loan commitments was $448 million or 1.88 percent of outstanding loans at September30, 2020. Excluding Paycheck Protection Program (PPP) loans, the allowance for loan losses was 1.93 percent of outstanding loans and the combined allowance for loan losses and accrual for off-balance sheet credit risk from unfunded loan commitments was 2.06 percent. Excluding PPP loans, the allowance for loan losses was $436 million or 1.97 percent of outstanding loans and the combined allowance for loan losses and accrual for off-balance sheet credit risk from unfunded loan commitments was $469 million or 2.12 percent of outstanding loans at June30, 2020. -- Average deposits increased $2.0 billion to $34.6 billion and period-end deposits increased $1.1 billion to $35.0 billion, largely due to growth in commercial and wealth management balances. Continued deposit growth was due primarily to customers retaining higher balances in the current economic environment. -- The company's common equity Tier 1 capital ratio was 12.07 percent at September30, 2020. In addition, the company's Tier 1 capital ratio was 12.07 percent, total capital ratio was 14.05 percent, and leverage ratio was 8.39 percent at September30, 2020. At June30, 2020, the company's common equity Tier 1 capital ratio was 11.44 percent, Tier 1 capital ratio was 11.44 percent, total capital ratio was 13.43 percent, and leverage ratio was 7.74 percent.

Third Quarter 2020 Business Segment Highlights

-- Commercial Banking contributed $75.1 million to net income, a decrease of $5.9 million compared to the second quarter. Net interest revenue increased $4.8 million, including higher discount accretion. Net loans charged off increased $8.8 million. Fees and commissions revenue increased $3.6 million led by increased customer hedging and loan syndication activity. Operating expense increased $3.9 million, largely due to increases in incentive compensation and deposit insurance expense. Net losses and expenses on repossessed assets also increased $4.5 million due to impairment of a set of oil and gas properties and a retail commercial real estate property. Average Commercial Banking loans decreased $585 million due to repayment of defensive draws taken earlier in the year and purposeful deleveraging by our customers. Commercial deposits grew more than 5 percent to $14.6 billion in the third quarter. -- Consumer Banking contributed $26.3 million to net income, a decrease of $5.6 million compared to the second quarter. Net interest revenue decreased $6.1 million, largely due to lower yields on deposits sold to our Funds Management unit and compressed loan spreads. Fees and commissions revenue was largely unchanged compared to the prior quarter. While mortgage production revenue decreased slightly compared to the prior quarter, it was another strong quarter for our mortgage banking business. Low mortgage interest rates continue to result in high volumes and increased margins. Deposit service charges increased in the current quarter as many "stay at home" orders have been lifted and consumer activity starts to return to more normal levels. Changes in the fair value of mortgage servicing rights and related economic hedges provided $6.5 million during the third quarter of 2020 and $9.3 million in the prior quarter. -- Wealth Management contributed $31.2 million to net income, a decrease of $2.2 million compared to the second quarter. This segment produced another record quarter for total revenue. While net interest revenue decreased $3.9 million due to lower yields on deposits sold to our Funds Management unit, fees and commissions grew by $4.9 million. Increases in trading revenue of $3.0 million and other revenue of $2.3 million were partially offset by a decrease in fiduciary and asset management revenue. We continue to maintain an increased trading pipeline to provide greater liquidity to the housing market during this time of low interest rates. Deposit growth remains strong with total average deposits growing $704 million or 8 percent compared to the previous quarter. Assets under management or administration totaled $82.4 billion, up $3.0 billion since June 30.

Net Interest Revenue

Net interest revenue was $271.8 million for the third quarter of 2020, a $6.4 million decrease compared to the second quarter of 2020. Net purchase accounting discount accretion on acquired loans totaled $13.3 million in the third quarter of 2020 and $3.3 million in the second quarter of 2020. Increased accretion was primarily due to early payoffs of acquired loans.

Average earning assets decreased $681 million compared to the second quarter of 2020. Fair value option securities, held as an economic hedge of the changes in fair value of our mortgage servicing rights, decreased $399 million and restricted equity securities decreased $130 million. Residential mortgage loans held for sale decreased $75 million while interest-bearing cash and cash equivalents decreased $67 million. Average loan balances remained largely unchanged. Available for sale securities increased $101 million. Average interest-bearing deposits grew by $1.5 billion, primarily due to interest-bearing transaction deposits. Funds purchased and repurchase agreements decreased $3.0 billion and other borrowings decreased $145 million.

Net interest margin was 2.81 percent compared to 2.83 percent in the second quarter of 2020. Excluding discount accretion on acquired loans, net interest margin was 2.67 percent compared to 2.80 percent in the prior quarter. Recent interest rate cuts continue to compress the net interest margin. While the company has been proactive in reducing deposit costs and implementing LIBOR floors in loan agreements to support the margin, funds received from available for sale securities continue to be reinvested at lower rates.

The yield on average earning assets was 3.04 percent, an 8 basis point decrease from the prior quarter. The yield on the available for sale securities portfolio decreased 18 basis points to 2.11 percent and the loan portfolio yield decreased 3 basis points to 3.60 percent. Excluding loan discount accretion, the yield on average earning assets was 2.91 percent, down 18 basis points and the loan portfolio yield was 3.38 percent, down 20 basis points from the previous quarter. The yield on fair value option securities decreased 8 basis points to 1.92 percent.

Funding costs were 0.31 percent, down 6 basis points. The cost of interest-bearing deposits decreased 8 basis points to 0.26 percent. The cost of other borrowed funds was down 1 basis point to 0.31 percent. The benefit to net interest margin from assets funded by non-interest liabilities was 8 basis points for the third quarter of 2020, consistent with the prior quarter.

Fees and Commissions Revenue

Fees and commissions revenue totaled $222.9 million for the third quarter of 2020, an increase of $9.2 million over the second quarter of 2020, led by continued growth in brokerage and trading revenue.

Brokerage and trading revenue increased $7.5 million to $69.5 million. Trading revenue increased $3.0 million. The low mortgage interest rate environment continues to drive our U.S. agency mortgage-backed securities trading activity. Customer hedging revenue increased $2.4 million as energy customers increased hedging activities in the volatile environment. Investment banking revenue also grew by $1.8 million largely due to loan syndication activity.

Deposit service charges increased $2.2 million compared to the first quarter. As "stay at home" orders have been lifted and customer activity returns to normal, we have seen service charges return to a more normal level as well. Other revenue increased $2.2 million.

Mortgage banking revenue decreased $2.0 million to $52.0 million, primarily due to a reduction of mortgage servicing revenue. During the second quarter of 2020, we completed a sale of mortgage servicing rights on $1.6 billion of unpaid principal balance, primarily related to loans guaranteed by the Veteran's Administration. Mortgage production revenue remained very strong at $38.4 million, decreasing only slightly from the previous quarter.

Fiduciary and asset management revenue decreased $1.3 million compared to the second quarter of 2020, largely due to a decrease from seasonal tax preparation fees earned in the second quarter.

Operating Expense

Total operating expense was $301.3 million for the third quarter of 2020, an increase of $5.9 million compared to the second quarter of 2020.

Personnel expense increased $3.6 million. Stock based incentive compensation increased $5.9 million due to changes related to vesting assumptions regarding the Company's earnings per share growth relative to a defined peer group. Cash based incentive compensation increased $3.1 million, primarily due to increased securities trading activity. Deferred compensation, which is largely offset by a decrease in the value of related investments included in Other gains (losses), decreased $3.5 million. Regular compensation decreased $2.6 million, primarily related to unfilled positions due to attrition.

Non-personnel expense increased $2.3 million over the second quarter of 2020. Net losses and expenses on repossessed assets increased $4.5 million, largely due to write-downs on a set of oil and gas properties and a retail commercial real estate property. Professional fees and services expense increased $1.9 million due mainly to higher legal fees. Data processing and communications expense increased $1.8 million due to continued investment in technology.

Occupancy and equipment expense decreased $2.6 million, primarily related to impairment charges incurred in the second quarter and other expense decreased $1.8 million. We also made a charitable contribution of $3.0 million to the BOKF Foundation in the second quarter.

Income Taxes

The effective tax rate was 24.7 percent for the third quarter of 2020, an increase from 19.7 percent for the second quarter of 2020. An increase in forecasted pre-tax income for 2020 and the completion of 2019 tax returns drove the increase in effective tax rate for the quarter. The effective tax rate excluding these items was 21.7 percent.

Loans, Deposits and Capital

Loans

Outstanding loans were $23.8 billion at September30, 2020, a $353 million decrease compared to June30, 2020, primarily due to commercial loan payoffs.

Outstanding core commercial loan balances decreased $593 million or 4 percent compared to June30, 2020, primarily due to continued pay downs. Although the primary source of repayment of our commercial loan portfolio is the on-going cash flow from operations of the customer's business, loans are generally governed by a borrowing base and secured by the customers assets.

Energy loan balances decreased $257 million to $3.7 billion or 16 percent of total loans. The current commodity price environment is continuing to dampen demand for new loans and borrowers are paying down debt to reduce leverage. The majority of this portfolio is first lien, senior secured, reserve-based lending to oil and gas producers, which we believe is the lowest risk form of energy lending. Approximately 67 percent of committed production loans are secured by properties primarily producing oil. The remaining 33 percent is secured by properties primarily producing natural gas. Unfunded energy loan commitments were $2.3 billion at September30, 2020, a $214 million decrease compared to June30, 2020, and a $660 million decrease compared to December 31, 2019, largely as a result of the semi-annual borrowing base redetermination process in the second quarter.

Healthcare sector loan balances increased $36 million to $3.3 billion or 14 percent of total loans, primarily due to growth in loans to senior housing and care facilities. Our healthcare sector loans primarily consist of $2.5 billion of senior housing and care facilities, including independent living, assisted living and skilled nursing. Generally we loan to borrowers with a portfolio of multiple facilities that serves to help diversify risks specific to a single facility. The remaining balance is composed of hospitals and other medical service providers impacted by a deferral of elective procedures. The CARES Act does include multiple revenue enhancement measures for both hospitals and skilled nursing facilities as they manage through the risks of the virus.

General business loans decreased $138 million to $3.0 billion or 13 percent of total loans. General business loans include $1.7 billion of wholesale/retail loans and $748 million of loans from other commercial industries. Broad pay downs across our core commercial and industrial loan book contracted the portfolio.

Services loan balances decreased $234 million to $3.5 billion or 15 percent of total loans. Services loans consist of a large number of loans to a variety of businesses, including Native American tribal and state and local municipal government entities, Native American tribal casino operations, educational services, consumer services and commercial services.

Although not a significant portion of our commercial portfolio, our services and general business loans also include areas we consider to be more exposed to the economic slowdown as a result of the social distancing measures in place to combat the COVID-19 pandemic such as entertainment and recreation, retail, hotels, churches, airline travel, and higher education that are dependent on large social gatherings to remain profitable. This represents less than 7 percent of our total portfolio. Some of these borrowers have participated in the PPP, which has provided some measure of relief. We will continue to monitor these areas closely in the coming months.

Commercial real estate loan balances were up $140 million over June30, 2020 and represent 20 percent of total loans at September30, 2020. Loans secured by office buildings increased $126 million to $1.1 billion. Loans secured by industrial facilities increased $69 million. Loans secured by other commercial real estate properties decreased $26 million to $507 million. Multifamily residential loans, our largest exposure in commercial real estate, decreased $20 million to $1.4 billion at September30, 2020. Loans secured by retail facilities were $786 million at September30, 2020, largely unchanged from the prior quarter. Loans secured by retail facilities and office buildings may be impacted by measures being taken to hinder the spread of the virus as well as changes in consumer behavior.

Loans to individuals increased $85 million, primarily due to an increase in residential mortgage loans guaranteed by U.S. government agencies. The Company may repurchase loans previously sold into GNMA mortgage pools when certain defined delinquency criteria are met. Because of this repurchase right, the Company is deemed to have regained effective control over these loans and must include them on the Consolidated Balance Sheet. Loans to individuals represent 14 percent of total loans at September30, 2020.

Deposits

Period-end deposits totaled $35.0 billion at September30, 2020, a $1.1 billion increase over June30, 2020. Continued deposit growth was due primarily to customers retaining higher balances in the current economic environment. Interest-bearing transaction account balances grew by $1.3 billion. Average deposits were $34.6 billion at September30, 2020, a $2.0 billion increase compared to June30, 2020. Interest-bearing transaction deposits increased $1.7 billion.

Capital

The company's common equity Tier 1 capital ratio was 12.07 percent at September30, 2020. In addition, the company's Tier 1 capital ratio was 12.07 percent, total capital ratio was 14.05 percent, and leverage ratio was 8.39 percent at September30, 2020. We have elected to delay the regulatory capital impact of the transition of the allowance for credit losses from the incurred loss methodology to CECL for two years, followed by a three-year transition period, which added 29 basis points to the company's common equity tier 1 capital ratio at September 30. At June30, 2020, the company's common equity Tier 1 capital ratio was 11.44 percent, Tier 1 capital ratio was 11.44 percent, total capital ratio was 13.43 percent, and leverage ratio was 7.74 percent.

The company's tangible common equity ratio, a non-GAAP measure, was 9.02 percent at September30, 2020 and 8.79 percent at June30, 2020. 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

The Company adopted FASB Accounting Standard Update No. 2016-13, Financial Instruments Credit Losses (Topic 326): Assets Measured at Amortized Cost ("CECL") on January 1, 2020. CECL requires recognition of expected credit losses on assets carried at amortized cost over their expected lives. Our CECL models measure the probability of default and loss given default over a 12-month reasonable and supportable forecast period. Models incorporate base case, downside and upside macroeconomic variables such as real gross domestic product ("GDP") growth, civilian unemployment rate and West Texas Intermediate ("WTI") oil prices on a probability weighted basis.

No provision for credit losses was necessary for the third quarter of 2020. A $1.7 million provision related to lending activities was offset by a decrease in the accrual for expected credit losses from mortgage banking activities and allowance for credit losses from investment securities. Changes in our reasonable and supportable forecasts of macroeconomic variables, primarily due to an improved economic outlook related to the anticipated impact of the on-going COVID-19 pandemic, and other assumptions, resulted in a $12.8 million decrease in the provision for credit losses from lending activities. Changes in the loan portfolio characteristics, including specific impairment and losses, loan balances and risk grading resulted in a $14.5 million increase in the provision for credit losses from lending activities.

Our base case reasonable and supportable forecast assumes that the COVID-19 pandemic maintains its current trajectory with localized and state-level hotspots. This scenario assumes approval of a vaccine prior to the end of 2020, with a large share of the U.S. population vaccinated by the end of the third quarter of 2021. After a strong increase in GDP in the third quarter, we expect GDP growth to moderate to rates consistent with historical averages and recovering to pre-COVID levels by the end of 2021. We expect a 4 percent increase in GDP over the next twelve months. Our forecasted civilian unemployment rate is 8.0 percent for the fourth quarter of 2020, improving to 6.9 percent by the third quarter of 2021. WTI oil prices are projected to generally follow the NYMEX forward curve that existed at the end of September 2020, averaging $41.65 per barrel over the next twelve months.

The allowance for loan losses totaled $420 million or 1.76 percent of outstanding loans and 195 percent of non-accruing loans at September30, 2020, excluding residential mortgage loans guaranteed by U.S. government agencies. The combined allowance for loan losses and accrual for off-balance sheet credit risk from unfunded loan commitments was $448 million or 1.88 percent of outstanding loans and 208 percent of non-accruing loans at September30, 2020. The combined allowance for credit losses attributed to energy was 4.30 percent of outstanding energy loans at September30. Excluding PPP loans, the allowance for loan losses was 1.93 percent of outstanding loans and the combined allowance for loan losses and accrual for off-balance sheet credit risk from unfunded loan commitments was 2.06 percent.

At June30, 2020, the allowance for loan losses was $436 million or 1.80 percent of outstanding loans and 175 percent of non-accruing loans, excluding loans guaranteed by U.S. government agencies. The combined allowance for loan losses and accrual for off-balance sheet credit risk from unfunded loan commitments was $469 million or 1.94 percent of outstanding loans and 188 percent of non-accruing loans.

Non-performing assets totaled $417 million or 1.75 percent of outstanding loans and repossessed assets at September30, 2020, compared to $405 million or 1.68 percent at June30, 2020. Non-performing assets that are not guaranteed by U.S. government agencies totaled $268 million or 1.25 percent of outstanding loans and repossessed assets at September30, 2020, down from $285 million or 1.31 percent at June30, 2020.

Non-accruing loans were $221 million or 1.02 percent of outstanding loans, excluding PPP loans, at September30, 2020. Non-accruing commercial loans totaled $170 million or 1.25 percent of outstanding commercial loans. Non-accruing commercial real estate loans totaled $13 million or 0.28 percent of outstanding commercial real estate loans. Non-accruing loans to individuals totaled $38 million or 1.11 percent of outstanding loans to individuals.

Non-accruing loans decreased $34 million compared to June30, 2020, primarily due to a $36 million decrease in non-accruing energy loans. New non-accruing loans identified in the third quarter totaled $45 million, offset by $30 million in payments received, $27 million in charge-offs and $23 million of foreclosures.

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 $623 million at September30, compared to $626 million at June30. A decrease in potential problem energy loans was partially offset by an increase in general business loans and commercial real estate loans.

Net charge-offs were $22.4 million or 0.41 percent of average loans on an annualized basis for the third quarter of 2020, excluding PPP loans. Net charge-offs were 0.30 percent of average loans over the last four quarters. Net charge-offs were $14.1 million or 0.25 percent of average loans on an annualized basis for the second quarter of 2020, excluding PPP loans. Gross charge-offs were $26.7 million for the third quarter compared to $15.6 million for the previous quarter. Recoveries totaled $4.2 million for the third quarter of 2020 and $1.5 million for the second quarter of 2020.

Loans in deferral status have dropped to just over 1 percent of total loans from a peak of more than 7 percent. More than 80 percent of the loans that were deferred have now moved back to payment status. Of the loans that remain in deferral, approximately half are in the Commercial Real Estate portfolio.

Securities and Derivatives

The fair value of the available for sale securities portfolio totaled $12.8 billion at September30, 2020, a $341 million increase compared to June30, 2020. At September30, 2020, the available for sale securities portfolio consisted primarily of $9.4 billion of residential mortgage-backed securities fully backed by U.S. government agencies and $3.3 billion of commercial mortgage-backed securities fully backed by U.S. government agencies. At September30, 2020, the available for sale securities portfolio had a net unrealized gain of $481 million compared to $487 million at June30, 2020.

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 decreased $588 million to $135 million at September30, 2020.

The net economic benefit of the changes in the fair value of mortgage servicing rights and related economic hedges was $6.5 million during the third quarter of 2020, including a $3.4 million increase in the fair value of mortgage servicing rights, $1.5 million increase in the fair value of securities and derivative contracts held as an economic hedge, and $1.6 million of related net interest revenue.

Conference Call and Webcast

The company will hold a conference call at 9 a.m. Central time on October 21, 2020 to discuss the financial results with investors.The live audio webcast and presentation slides will be available on the companys 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.comor by dialing 1-412-317-6671and referencing conference ID # 13711391.

About BOK Financial Corporation

BOK Financial Corporation is a $46 billion regional financial services company headquartered in Tulsa, Oklahoma with $82 billion in assets under management and administration. The company's stock is publicly traded on NASDAQ under the Global Select market listings (BOKF). BOK Financial Corporation's holdings include BOKF, NA; BOK Financial Securities, Inc., 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 Oklahoma; Bank of Texas; and BOK Financial in Arizona, Arkansas, Colorado, 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 September30, 2020 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 Corporation, the financial services industry, the economy generally and the expected or potential impact of the novel coronavirus (COVID-19) pandemic, and the related responses of the government, consumers, and others, on our business, financial condition and results of operations. 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 acquisitions and 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 various forward-looking 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 government, consumer or business responses to, and ability to treat or prevent further outbreak of the COVID-19 pandemic, 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. BOK Financial Corporation 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 -- UNAUDITEDBOK FINANCIAL CORPORATION(In thousands)

Sept. 30, 2020 June 30, 2020ASSETS Cash and due from banks $ 658,612 $ 762,453 Interest-bearing cash and cash 347,759 485,319 equivalentsTrading securities 2,245,480 1,196,105 Investment securities, net of allowance 256,001 267,988 Available for sale securities 12,817,269 12,475,919 Fair value option securities 134,756 722,657 Restricted equity securities 111,656 125,683 Residential mortgage loans held for sale 295,290 319,357 Loans: Commercial 13,565,706 14,158,510 Commercial real estate 4,693,700 4,554,144 Paycheck protection program 2,097,325 2,081,428 Loans to individuals 3,446,569 3,361,808 Total loans 23,803,300 24,155,890 Allowance for loan losses (419,777 ) (435,597 ) Loans, net of allowance 23,383,523 23,720,293 Premises and equipment, net 542,625 550,230 Receivables 245,514 226,934 Goodwill 1,048,091 1,048,091 Intangible assets, net 118,524 123,595 Mortgage servicing rights 97,644 97,971 Real estate and other repossessed 52,847 35,330 assets, netDerivative contracts, net 593,568 651,553 Cash surrender value of bank-owned life 396,497 393,741 insuranceReceivable on unsettled securities sales 1,934,495 1,863,719 Other assets 787,073 752,936 TOTAL ASSETS $ 46,067,224 $ 45,819,874 LIABILITIES AND EQUITY Deposits: Demand $ 12,047,338 $ 11,992,165 Interest-bearing transaction 20,196,740 18,850,418 Savings 720,949 696,971 Time 2,007,973 2,352,760 Total deposits 34,973,000 33,892,314 Funds purchased and repurchase 973,652 1,357,602 agreementsOther borrowings 2,771,429 3,173,563 Subordinated debentures 275,986 275,973 Accrued interest, taxes and expense 335,914 365,634 Due on unsettled securities purchases 641,817 599,510 Derivative contracts, net 446,328 610,020 Other liabilities 422,989 440,835 TOTAL LIABILITIES 40,841,115 40,715,451 Shareholders' equity: Capital, surplus and retained earnings 4,853,617 4,726,679 Accumulated other comprehensive gain 365,170 370,316 TOTAL SHAREHOLDERS' EQUITY 5,218,787 5,096,995 Non-controlling interests 7,322 7,428 TOTAL EQUITY 5,226,109 5,104,423 TOTAL LIABILITIES AND EQUITY $ 46,067,224 $ 45,819,874

AVERAGE BALANCE SHEETS -- UNAUDITEDBOK FINANCIAL CORPORATION(in thousands)

Three Months Ended Sept. 30, 2020 June 30, 2020 Mar. 31, 2020 Dec. 31, 2019 Sept. 30, 2019ASSETS Interest-bearingcash and cash $ 553,070 $ 619,737 $ 721,659 $ 573,203 $ 500,823 equivalentsTrading 1,834,160 1,871,647 1,690,104 1,672,426 1,696,568 securitiesInvestmentsecurities, net 258,965 268,947 282,265 298,567 308,090 of allowanceAvailable for 12,580,850 12,480,065 11,664,521 11,333,524 10,747,439 sale securitiesFair valueoption 387,784 786,757 1,793,480 1,521,528 1,553,879 securitiesRestrictedequity 144,415 273,922 429,133 479,687 476,781 securitiesResidentialmortgage loans 213,125 288,588 129,708 203,535 203,319 held for saleLoans: Commercial 13,772,217 14,502,652 14,452,851 14,344,534 14,507,185 Commercial real 4,754,269 4,543,511 4,346,886 4,532,649 4,652,534 estatePaycheckprotection 2,092,933 1,699,369 ? ? ? programLoans to 3,491,044 3,353,960 3,143,286 3,358,817 3,253,199 individualsTotal loans 24,110,463 24,099,492 21,943,023 22,236,000 22,412,918 Allowance for (441,831 ) (367,583 ) (250,338 ) (205,417 ) (201,714 ) loan lossesLoans, net of 23,668,632 23,731,909 21,692,685 22,030,583 22,211,204 allowanceTotal earning 39,641,001 40,321,572 38,403,555 38,113,053 37,698,103 assetsCash and due 723,826 678,878 669,369 690,806 717,338 from banksDerivative 581,839 642,969 376,621 311,542 331,834 contracts, netCash surrendervalue of 394,680 391,951 390,009 388,012 385,190 bank-owned lifeinsuranceReceivable onunsettled 4,563,301 4,626,307 3,046,111 1,973,604 1,742,794 securities salesOther assets 3,027,108 3,095,354 2,834,953 2,736,337 2,705,089 TOTAL ASSETS $ 48,931,755 $ 49,757,031 $ 45,720,618 $ 44,213,354 $ 43,580,348 LIABILITIES AND EQUITYDeposits: Demand $ 11,929,694 $ 11,489,322 $ 9,232,859 $ 9,612,533 $ 9,759,710 Interest-bearing 19,752,106 18,040,170 16,159,654 14,685,385 13,131,542 transactionSavings 707,121 656,669 563,821 554,605 557,122 Time 2,251,012 2,464,793 2,239,234 2,247,717 2,251,800 Total deposits 34,639,933 32,650,954 28,195,568 27,100,240 25,700,174 Funds purchasedand repurchase 2,782,150 5,816,484 3,815,941 4,120,610 3,106,163 agreementsOther borrowings 3,382,688 3,527,303 6,542,325 6,247,194 8,125,023 Subordinated 275,980 275,949 275,932 275,916 275,900 debenturesDerivative 458,390 836,667 379,342 276,078 300,051 contracts, netDue on unsettledsecurities 1,516,880 887,973 960,780 784,174 745,893 purchasesOther 712,674 690,087 642,764 561,654 547,144 liabilitiesTOTAL 43,768,695 44,685,417 40,812,652 39,365,866 38,800,348 LIABILITIESTotal equity 5,163,060 5,071,614 4,907,966 4,847,488 4,780,000 TOTALLIABILITIES AND $ 48,931,755 $ 49,757,031 $ 45,720,618 $ 44,213,354 $ 43,580,348 EQUITY

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

Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Interest $ 294,659 $ 395,207 $ 949,980 $ 1,162,101 revenueInterest 22,909 116,111 138,766 319,471 expenseNet interest 271,750 279,096 811,214 842,630 revenueProvision for ? 12,000 229,092 25,000 credit lossesNet interestrevenue after 271,750 267,096 582,122 817,630 provision forcredit lossesOther operating revenue:Brokerage and 69,526 43,840 182,327 115,983 trading revenueTransaction 23,465 22,015 68,286 64,668 card revenueFiduciary andasset 39,931 43,621 125,646 132,004 managementrevenueDeposit servicecharges and 24,286 28,837 72,462 85,154 feesMortgage 51,959 30,180 143,062 82,145 banking revenueOther revenue 13,698 17,626 37,486 42,825 Total fees and 222,865 186,119 629,269 522,779 commissionsOther gains, 6,265 4,544 2,292 11,000 netGain onderivatives, 2,354 3,778 42,659 19,595 netGain (loss) onfair value (754 ) 4,597 53,180 24,115 optionsecurities, netChange in fairvalue ofmortgage 3,441 (12,593 ) (85,800 ) (62,814 ) servicingrightsGain (loss) onavailable for (12 ) 5 5,571 1,110 salesecurities, netTotal otheroperating 234,159 186,450 647,171 515,785 revenueOther operating expense:Personnel 179,860 162,573 512,276 492,143 Business 2,633 8,859 10,783 26,875 promotionCharitablecontributions ? ? 3,000 1,000 to BOKFFoundationProfessionalfees and 14,074 12,312 39,183 41,453 servicesNet occupancy 28,111 27,558 84,847 83,959 and equipmentInsurance 5,848 4,220 15,984 15,513 Data processingand 34,751 31,915 100,436 93,099 communicationsPrinting,postage and 3,482 3,825 11,256 12,817 suppliesNet losses andoperatingexpenses of 6,244 1,728 9,541 4,304 repossessedassetsAmortization ofintangible 5,071 5,064 15,355 15,393 assetsMortgage 15,803 14,975 41,946 36,426 banking costsOther expense 5,388 6,263 20,669 20,604 Total otheroperating 301,265 279,292 865,276 843,586 expenseNet income 204,644 174,254 364,017 489,829 before taxesFederal andstate income 50,552 32,396 83,655 99,926 taxesNet income 154,092 141,858 280,362 389,903 Net income(loss)attributable to 58 (373 ) (444 ) (503 ) non-controllinginterestsNet incomeattributable toBOK Financial $ 154,034 $ 142,231 $ 280,806 $ 390,406 Corporationshareholders Average shares outstanding:Basic 69,877,866 70,596,307 69,958,944 70,953,544 Diluted 69,879,290 70,609,924 69,962,053 70,968,845 Net income per share:Basic $ 2.19 $ 2.00 $ 3.99 $ 5.47 Diluted $ 2.19 $ 2.00 $ 3.99 $ 5.47

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

Three Months Ended Sept. 30, 2020 June 30, 2020 Mar. 31, 2020 Dec. 31, 2019 Sept. 30, 2019Capital: Period-endshareholders' $ 5,218,787 $ 5,096,995 $ 5,026,248 $ 4,855,795 $ 4,829,016 equityRisk weighted $ 31,529,826 $ 32,180,602 $ 32,973,242 $ 31,673,425 $ 32,159,139 assetsRisk-basedcapital ratios:Common equity 12.07 % 11.44 % 10.98 % 11.39 % 11.06 %tier 1Tier 1 12.07 % 11.44 % 10.98 % 11.39 % 11.06 %Total capital 14.05 % 13.43 % 12.65 % 12.94 % 12.56 %Leverage ratio 8.39 % 7.74 % 8.15 % 8.40 % 8.41 %Tangiblecommon equity 9.02 % 8.79 % 8.39 % 8.98 % 8.72 %ratio^1 Common stock: Book value per $ 74.23 $ 72.50 $ 71.49 $ 68.80 $ 68.15 shareTangible bookvalue per 57.64 55.83 54.85 52.17 51.60 shareMarket value per share:High $ 62.86 $ 67.62 $ 87.40 $ 88.28 $ 84.35 Low $ 48.41 $ 37.80 $ 34.57 $ 71.85 $ 72.96 Cash dividends $ 35,799 $ 35,769 $ 35,949 $ 36,011 $ 35,472 paidDividend 23.24 % 55.29 % 57.91 % 32.63 % 24.94 %payout ratioSharesoutstanding, 70,305,833 70,306,690 70,308,532 70,579,598 70,858,010 netStock buy-back program:Shares ? ? 442,000 280,000 336,713 repurchasedAmount $ ? $ ? $ 33,380 $ 22,844 $ 25,937 Average price $ ? $ ? $ 75.52 $ 81.59 $ 77.03 per share Performanceratios (quarterannualized):Return on 1.25 % 0.52 % 0.55 % 0.99 % 1.29 %average assetsReturn on 11.89 % 5.14 % 5.10 % 9.05 % 11.83 %average equityNet interest 2.81 % 2.83 % 2.80 % 2.88 % 3.01 %marginEfficiency 60.41 % 59.57 % 58.62 % 63.65 % 59.31 %ratio Reconciliationof non-GAAP measures:^1 Tangible common equityratio:Totalshareholders' $ 5,218,787 $ 5,096,995 $ 5,026,248 $ 4,855,795 $ 4,829,016 equityLess: Goodwilland intangible 1,166,615 1,171,686 1,169,898 1,173,362 1,172,411 assets, netTangible $ 4,052,172 $ 3,925,309 $ 3,856,350 $ 3,682,433 $ 3,656,605 common equity Total assets $ 46,067,224 $ 45,819,874 $ 47,119,162 $ 42,172,021 $ 43,127,205 Less: Goodwilland intangible 1,166,615 1,171,686 1,169,898 1,173,362 1,172,411 assets, netTangible $ 44,900,609 $ 44,648,188 $ 45,949,264 $ 40,998,659 $ 41,954,794 assets Tangiblecommon equity 9.02 % 8.79 % 8.39 % 8.98 % 8.72 %ratio

Three Months Ended Sept. 30, June 30, 2020 Mar. 31, 2020 Dec. 31, Sept. 30, 2020 2019 2019 Pre-provision net revenue:Net income $ 204,644 $ 80,089 $ 79,284 $ 141,039 $ 174,254 before taxesProvision forexpected credit ? 135,321 93,771 19,000 12,000 lossesNet income(loss)attributable to 58 (407 ) (95 ) 430 (373 )non-controllinginterestsPre-provision $ 204,586 $ 215,817 $ 173,150 $ 159,609 $ 186,627 net revenue Other data: Tax equivalent $ 2,457 $ 2,630 $ 2,715 $ 2,726 $ 2,936 interestNet unrealizedgain (loss) on $ 480,563 $ 487,334 $ 435,989 $ 138,149 $ 178,060 available forsale securities Mortgage banking:Mortgageproduction $ 38,431 $ 39,185 $ 21,570 $ 9,169 $ 13,814 revenue Mortgage loans $ 1,032,472 $ 1,184,249 $ 548,956 $ 855,643 $ 877,280 funded for saleAdd: currentperiod-end 560,493 546,304 657,570 158,460 379,377 outstandingcommitmentsLess: priorperiod end 546,304 657,570 158,460 379,377 344,087 outstandingcommitmentsTotal mortgageproduction $ 1,046,661 $ 1,072,983 $ 1,048,066 $ 634,726 $ 912,570 volume Mortgage loanrefinances to 54 % 71 % 57 % 57 % 56 %mortgage loansfunded for saleGain on sale 3.67 % 3.65 % 2.06 % 1.44 % 1.51 %margin Mortgageservicing $ 13,528 $ 14,751 $ 15,597 $ 16,227 $ 16,366 revenueAverageoutstandingprincipalbalance of 17,434,215 19,319,872 20,416,546 20,856,446 21,172,874 mortgage loansserviced forothersAveragemortgage 0.31 % 0.31 % 0.31 % 0.31 % 0.31 %servicingrevenue rates Gain (loss) onmortgageservicing rights, net ofeconomic hedge:Gain (loss) onmortgage hedge $ 2,295 $ 21,815 $ 18,371 $ (4,714 ) $ 3,742 derivativecontracts, netGain (loss) onfair value (754 ) (14,459 ) 68,393 (8,328 ) 4,597 optionsecurities, netGain (loss) oneconomic hedgeof mortgage 1,541 7,356 86,764 (13,042 ) 8,339 servicingrightsGain (loss) onchanges in fairvalue of 3,441 (761 ) (88,480 ) 9,297 (12,593 )mortgageservicingrightsGain (loss) onchanges in fairvalue ofmortgageservicingrights, net of 4,982 6,595 (1,716 ) (3,745 ) (4,254 )economichedges,included inother operatingrevenueNet interestrevenue on fair 1,565 2,702 4,268 1,544 1,245 value optionsecurities2Total economicbenefit (cost)of changes inthe fair value $ 6,547 $ 9,297 $ 2,552 $ (2,201 ) $ (3,009 )of mortgageservicingrights, net ofeconomic hedges

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

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

Three Months Ended Sept. 30, June 30, Mar. 31, Dec. 31, Sept. 30, 2020 2020 2020 2019 2019 Interest $ 294,659 $ 306,384 $ 348,937 $ 369,857 $ 395,207 revenueInterest 22,909 28,280 87,577 99,608 116,111 expenseNet interest 271,750 278,104 261,360 270,249 279,096 revenueProvision for ? 135,321 93,771 19,000 12,000 credit lossesNet interestrevenue after 271,750 142,783 167,589 251,249 267,096 provision forcredit lossesOther operating revenue:Brokerage and 69,526 62,022 50,779 43,843 43,840 trading revenueTransaction 23,465 22,940 21,881 22,548 22,015 card revenueFiduciary andasset 39,931 41,257 44,458 45,021 43,621 managementrevenueDeposit servicecharges and 24,286 22,046 26,130 27,331 28,837 feesMortgage 51,959 53,936 37,167 25,396 30,180 banking revenueOther revenue 13,698 11,479 12,309 15,283 17,626 Total fees and 222,865 213,680 192,724 179,422 186,119 commissionsOther gains 6,265 6,768 (10,741 ) (1,649 ) 4,544 (losses), netGain (loss) onderivatives, 2,354 21,885 18,420 (4,644 ) 3,778 netGain (loss) onfair value (754 ) (14,459 ) 68,393 (8,328 ) 4,597 optionsecurities, netChange in fairvalue ofmortgage 3,441 (761 ) (88,480 ) 9,297 (12,593 )servicingrightsGain (loss) onavailable for (12 ) 5,580 3 4,487 5 salesecurities, netTotal otheroperating 234,159 232,693 180,319 178,585 186,450 revenueOther operating expense:Personnel 179,860 176,235 156,181 168,422 162,573 Business 2,633 1,935 6,215 8,787 8,859 promotionCharitablecontributions ? 3,000 ? 2,000 ? to BOKFFoundationProfessionalfees and 14,074 12,161 12,948 13,408 12,312 servicesNet occupancy 28,111 30,675 26,061 26,316 27,558 and equipmentInsurance 5,848 5,156 4,980 5,393 4,220 Data processingand 34,751 32,942 32,743 31,884 31,915 communicationsPrinting,postage and 3,482 3,502 4,272 3,700 3,825 suppliesNet losses andoperatingexpenses of 6,244 1,766 1,531 2,403 1,728 repossessedassetsAmortization ofintangible 5,071 5,190 5,094 5,225 5,064 assetsMortgage 15,803 15,598 10,545 14,259 14,975 banking costsOther expense 5,388 7,227 8,054 6,998 6,263 Total otheroperating 301,265 295,387 268,624 288,795 279,292 expenseNet income 204,644 80,089 79,284 141,039 174,254 before taxesFederal andstate income 50,552 15,803 17,300 30,257 32,396 taxesNet income 154,092 64,286 61,984 110,782 141,858 Net income(loss)attributable to 58 (407 ) (95 ) 430 (373 )non-controllinginterestsNet incomeattributable toBOK Financial $ 154,034 $ 64,693 $ 62,079 $ 110,352 $ 142,231 Corporationshareholders Average shares outstanding:Basic 69,877,866 69,876,043 70,123,685 70,295,899 70,596,307 Diluted 69,879,290 69,877,467 70,130,166 70,309,644 70,609,924 Net income per share:Basic $ 2.19 $ 0.92 $ 0.88 $ 1.56 $ 2.00 Diluted $ 2.19 $ 0.92 $ 0.88 $ 1.56 $ 2.00

LOANS TREND -- UNAUDITEDBOK FINANCIAL CORPORATION(In thousands)

Sept. 30, 2020 June 30, 2020 Mar. 31, 2020 Dec. 31, 2019 Sept. 30, 2019Commercial: Energy $ 3,717,101 $ 3,974,174 $ 4,111,676 $ 3,973,377 $ 4,114,269 Services 3,545,825 3,779,881 3,955,748 3,832,031 4,011,089 Healthcare 3,325,790 3,289,343 3,165,096 3,033,916 3,032,968 General 2,976,990 3,115,112 3,563,455 3,192,326 3,266,299 businessTotal 13,565,706 14,158,510 14,795,975 14,031,650 14,424,625 commercial Commercial real estate:Multifamily 1,387,461 1,407,107 1,282,457 1,265,562 1,324,839 Office 1,099,563 973,995 962,004 928,379 1,014,275 Retail 786,211 780,467 774,198 775,521 799,169 Industrial 792,389 723,005 728,026 856,117 873,536 Residentialconstruction 121,258 136,911 138,958 150,879 135,361 and landdevelopmentOthercommercial 506,818 532,659 564,442 457,325 478,877 real estateTotalcommercial 4,693,700 4,554,144 4,450,085 4,433,783 4,626,057 real estate Paycheckprotection 2,097,325 2,081,428 ? ? ? program Loans to individuals:Residential 1,849,144 1,813,442 1,844,555 1,886,378 1,925,539 mortgageResidentialmortgagesguaranteed 384,247 322,269 197,889 197,794 191,764 by U.S.governmentagenciesPersonal 1,213,178 1,226,097 1,175,466 1,201,382 1,117,382 Total loansto 3,446,569 3,361,808 3,217,910 3,285,554 3,234,685 individuals Total $ 23,803,300 $ 24,155,890 $ 22,463,970 $ 21,750,987 $ 22,285,367

LOANS MANAGED BY PRINCIPAL MARKET AREA -- UNAUDITEDBOK FINANCIAL CORPORATION(in thousands)

Sept. 30, 2020 June 30, 2020 Mar. 31, 2020 Dec. 31, 2019 Sept. 30, 2019 Texas: Commercial $ 5,545,158 $ 5,771,691 $ 6,350,690 $ 6,174,894 $ 6,220,227 Commercial 1,499,630 1,389,547 1,296,266 1,259,117 1,292,116 real estatePaycheckprotection 614,970 612,133 ? ? ? programLoans to 792,994 748,474 756,634 727,175 749,361 individualsTotal Texas 8,452,752 8,521,845 8,403,590 8,161,186 8,261,704 Oklahoma: Commercial 4,901,666 5,086,934 3,886,086 3,454,825 3,690,100 Commercial 647,228 636,021 593,473 631,026 679,786 real estatePaycheckprotection 487,247 442,518 ? ? ? programLoans to 2,036,452 1,967,665 1,788,518 1,854,864 1,753,698 individualsTotal 8,072,593 8,133,138 6,268,077 5,940,715 6,123,584 Oklahoma Colorado: Commercial 1,501,821 1,600,382 2,181,309 2,169,598 2,247,798 Commercial 890,746 937,742 955,608 927,826 975,066 real estatePaycheckprotection 494,910 488,279 ? ? ? programLoans to 257,345 264,872 268,674 276,939 303,605 individualsTotal 3,144,822 3,291,275 3,405,591 3,374,363 3,526,469 Colorado Arizona: Commercial 956,047 1,036,862 1,396,582 1,307,073 1,276,534 Commercial 692,987 689,121 714,161 728,832 771,425 real estatePaycheckprotection 272,114 318,961 ? ? ? programLoans to 166,115 177,066 181,821 186,539 170,815 individualsTotal 2,087,263 2,222,010 2,292,564 2,222,444 2,218,774 Arizona Kansas/ Missouri:Commercial 414,038 404,860 556,255 527,872 566,969 Commercial 352,241 314,504 310,799 322,541 374,795 real estatePaycheckprotection 80,230 76,724 ? ? ? programLoans to 96,358 102,577 116,734 131,069 146,522 individualsTotalKansas/ 942,867 898,665 983,788 981,482 1,088,286 Missouri New Mexico: Commercial 157,322 182,688 327,164 305,320 335,409 Commercial 471,505 455,574 434,150 402,148 374,331 real estatePaycheckprotection 133,244 128,058 ? ? ? programLoans to 79,890 83,470 87,110 90,257 92,270 individualsTotal New 841,961 849,790 848,424 797,725 802,010 Mexico Arkansas: Commercial 89,654 75,093 97,889 92,068 87,588 Commercial 139,363 131,635 145,628 162,293 158,538 real estatePaycheckprotection 14,610 14,755 ? ? ? programLoans to 17,415 17,684 18,419 18,711 18,414 individualsTotal 261,042 239,167 261,936 273,072 264,540 Arkansas TOTAL BOK $ 23,803,300 $ 24,155,890 $ 22,463,970 $ 21,750,987 $ 22,285,367 FINANCIAL

Loans attributed to a principal market may not always represent the location of the borrower or the collateral.

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

Sept. 30, 2020 June 30, 2020 Mar. 31, 2020 Dec. 31, 2019 Sept. 30, 2019Oklahoma: Demand $ 4,493,691 $ 4,378,559 $ 3,669,558 $ 3,257,337 $ 3,515,312 Interest-bearing: Transaction 12,586,401 11,438,489 9,955,697 8,574,912 7,447,799 Savings 401,062 387,557 329,631 306,194 308,103 Time 1,081,176 1,330,619 1,137,802 1,125,446 1,198,170 Total 14,068,639 13,156,665 11,423,130 10,006,552 8,954,072 interest-bearingTotal Oklahoma 18,562,330 17,535,224 15,092,688 13,263,889 12,469,384 Texas: Demand 3,152,393 3,070,955 2,767,399 2,757,376 2,867,915 Interest-bearing: Transaction 3,482,603 3,358,090 2,874,362 2,911,731 2,589,063 Savings 136,787 128,892 115,039 102,456 100,597 Time 438,337 476,867 505,565 495,343 464,264 Total 4,057,727 3,963,849 3,494,966 3,509,530 3,153,924 interest-bearingTotal Texas 7,210,120 7,034,804 6,262,365 6,266,906 6,021,839 Colorado: Demand 2,057,603 2,096,075 1,579,764 1,729,674 1,694,044 Interest-bearing: Transaction 1,861,763 1,816,604 1,759,384 1,769,037 1,910,874 Savings 68,230 67,477 58,000 53,307 60,107 Time 226,780 254,845 279,105 283,517 273,622 Total 2,156,773 2,138,926 2,096,489 2,105,861 2,244,603 interest-bearingTotal Colorado 4,214,376 4,235,001 3,676,253 3,835,535 3,938,647 New Mexico: Demand 964,908 965,877 750,052 623,722 645,698 Interest-bearing: Transaction 713,418 752,565 563,891 558,493 539,260 Savings 85,463 80,242 67,553 63,999 62,863 Time 200,525 222,370 235,778 238,140 236,135 Total 999,406 1,055,177 867,222 860,632 838,258 interest-bearingTotal New Mexico 1,964,314 2,021,054 1,617,274 1,484,354 1,483,956 Arizona: Demand 928,671 985,757 665,396 681,268 705,895 Interest-bearing: Transaction 771,319 780,500 729,603 684,929 600,103 Savings 11,498 15,669 8,832 10,314 12,487 Time 36,929 42,318 47,081 49,676 44,347 Total 819,746 838,487 785,516 744,919 656,937 interest-bearingTotal Arizona 1,748,417 1,824,244 1,450,912 1,426,187 1,362,832

Sept. 30, 2020 June 30, 2020 Mar. 31, 2020 Dec. 31, 2019 Sept. 30, 2019Kansas/Missouri: Demand 405,360 427,795 318,985 384,533 376,020 Interest-bearing: Transaction 616,797 526,635 537,552 784,574 284,940 Savings 15,520 15,033 12,888 12,169 11,689 Time 16,430 17,746 19,137 17,877 19,126 Total 648,747 559,414 569,577 814,620 315,755 interest-bearingTotal Kansas/ 1,054,107 987,209 888,562 1,199,153 691,775 Missouri Arkansas: Demand 44,712 67,147 70,428 27,381 39,513 Interest-bearing: Transaction 164,439 177,535 175,803 108,076 149,506 Savings 2,389 2,101 1,862 1,837 1,747 Time 7,796 7,995 8,005 7,850 7,877 Total 174,624 187,631 185,670 117,763 159,130 interest-bearingTotal Arkansas 219,336 254,778 256,098 145,144 198,643 TOTAL BOK FINANCIAL $ 34,973,000 $ 33,892,314 $ 29,244,152 $ 27,621,168 $ 26,167,076

NET INTEREST MARGIN TREND -- UNAUDITEDBOK FINANCIAL CORPORATION

Three Months Ended Sept. June Mar. Dec. Sept. 30, 2020 30, 31, 31, 30, 2019 2020 2020 2019 TAX-EQUIVALENT ASSETS YIELDSInterest-bearing cash and 0.12 % 0.07 % 1.33 % 1.62 % 2.42 %cash equivalentsTrading securities 1.92 % 2.46 % 2.89 % 3.19 % 3.49 %Investment securities, 4.85 % 4.77 % 4.73 % 4.69 % 4.46 %net of allowanceAvailable for sale 2.11 % 2.29 % 2.48 % 2.52 % 2.60 %securitiesFair value option 1.92 % 2.00 % 2.67 % 2.62 % 2.79 %securitiesRestricted equity 2.53 % 2.75 % 5.49 % 5.37 % 6.34 %securitiesResidential mortgage 3.01 % 3.10 % 3.50 % 3.55 % 3.73 %loans held for saleLoans 3.60 % 3.63 % 4.50 % 4.75 % 5.12 %Allowance for loan losses Loans, net of allowance 3.67 % 3.69 % 4.55 % 4.80 % 5.17 %Total tax-equivalent 3.04 % 3.12 % 3.73 % 3.93 % 4.25 %yield on earning assets COST OF INTEREST-BEARING LIABILITIESInterest-bearing deposits:Interest-bearing 0.17 % 0.21 % 0.89 % 1.00 % 1.08 %transactionSavings 0.05 % 0.05 % 0.09 % 0.11 % 0.14 %Time 1.13 % 1.36 % 1.83 % 1.94 % 1.94 %Total interest-bearing 0.26 % 0.34 % 0.98 % 1.09 % 1.17 %depositsFunds purchased and 0.17 % 0.14 % 1.14 % 1.56 % 2.01 %repurchase agreementsOther borrowings 0.43 % 0.56 % 1.66 % 2.01 % 2.42 %Subordinated debt 4.89 % 5.16 % 5.30 % 5.40 % 5.48 %Total cost ofinterest-bearing 0.31 % 0.37 % 1.19 % 1.40 % 1.68 %liabilitiesTax-equivalent net 2.73 % 2.75 % 2.54 % 2.53 % 2.57 %interest revenue spreadEffect ofnoninterest-bearing 0.08 % 0.08 % 0.26 % 0.35 % 0.44 %funding sources and otherTax-equivalent net 2.81 % 2.83 % 2.80 % 2.88 % 3.01 %interest margin

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 -- UNAUDITEDBOK FINANCIAL CORPORATION(in thousands, except ratios)

Three Months Ended Sept. 30, June 30, 2020 Mar. 31, 2020 Dec. 31, 2019 Sept. 30, 2020 2019Nonperforming assets:Nonaccruing loans:Commercial: Energy $ 126,816 $ 162,989 $ 96,448 $ 91,722 $ 88,894 Healthcare 3,645 3,645 4,070 4,480 5,978 Services 25,817 21,032 8,425 7,483 6,119 General 13,675 14,333 9,681 11,731 10,715 businessTotal 169,953 201,999 118,624 115,416 111,706 commercial Commercial 12,952 13,956 8,545 27,626 23,185 real estate Loans to individuals:Permanent 31,599 33,098 30,721 31,522 30,972 mortgagePermanentmortgageguaranteed by 6,397 6,110 5,005 6,100 6,332 U.S.governmentagenciesPersonal 252 233 277 287 271 Total loansto 38,248 39,441 36,003 37,909 37,575 individuals Totalnonaccruing $ 221,153 $ 255,396 $ 163,172 $ 180,951 $ 172,466 loansAccruingrenegotiatedloansguaranteed by 142,770 114,571 91,757 92,452 92,718 U.S.governmentagenciesReal estateand other 52,847 35,330 36,744 20,359 21,026 repossessedassetsTotalnonperforming $ 416,770 $ 405,297 $ 291,673 $ 293,762 $ 286,210 assetsTotalnonperformingassetsexcludingthose 267,603 284,616 194,911 195,210 187,160 guaranteed byU.S.governmentagencies Accruingloans 90 days 7,684 10,992 3,706 7,680 1,541 past due^1 Gross $ 26,661 $ 15,570 $ 18,917 $ 14,268 $ 11,707 charge-offsRecoveries (4,232 ) (1,491 ) (1,696 ) (1,816 ) (1,066 ) Net $ 22,429 $ 14,079 $ 17,221 $ 12,452 $ 10,641 charge-offs Provision for $ 6,609 $ 134,365 $ 95,964 $ 18,779 $ 12,539 loan lossesProvision forcredit lossesfromoff-balance (4,950 ) 4,405 3,377 221 (539 ) sheetunfunded loancommitmentsProvision forexpectedcredit losses (770 ) (3,575 ) (6,020 ) ? ? from mortgagebankingacitivities^2Provision forcredit lossesrelated toheld-to (889 ) 126 450 ? ? maturity(investment)securitiesportfolio^2Totalprovision for $ ? $ 135,321 $ 93,771 $ 19,000 $ 12,000 credit losses

Three Months Ended Sept. June 30, Mar. 31, Dec. 31, Sept. 30, 2020 2020 2020 2019 30, 2019Allowance for loanlosses to period end 1.76 % 1.80 % 1.40 % 0.97 % 0.92 %loansAllowance for loanlosses to period end 1.93 % 1.97 % 1.40 % 0.97 % 0.92 %loans excluding PPPloans^3Combined allowance forloan losses andaccrual foroff-balance sheet 1.88 % 1.94 % 1.53 % 0.98 % 0.92 %credit risk fromunfunded loancommitments to periodend loansCombined allowance forloan losses andaccrual foroff-balance sheetcredit risk from 2.06 % 2.12 % 1.53 % 0.98 % 0.92 %unfunded loancommitments to periodend loans excludingPPP loans^3Nonperforming assetsto period end loans 1.75 % 1.68 % 1.30 % 1.35 % 1.28 %and repossessed assetsNet charge-offs(annualized) to 0.37 % 0.23 % 0.31 % 0.22 % 0.19 %average loansNet charge-offs(annualized) to 0.41 % 0.25 % 0.31 % 0.22 % 0.19 %average loansexcluding PPP loans^3Allowance for loanlosses to nonaccruing 195.47 % 174.74 % 199.35 % 120.54 % 123.05 %loans^1Combined allowance forloan losses andaccrual foroff-balance sheet 208.49 % 187.94 % 217.38 % 121.44 % 123.87 %credit risk fromunfunded loancommitments tononaccruing loans^1

1 Excludes residential mortgage loans guaranteed by agencies of the U.S. government.2 Included in Provision for credit losses effective with implementation of CECL on January 1, 2020.3 Represents a non-GAAP measure meaningful due to the unique characteristics and short-term nature of the PPP loans.

SEGMENTS -- UNAUDITEDBOK FINANCIAL CORPORATION(in thousands, except ratios)

Three Months Ended ChangeCommercial Sept. 30, June 30, Sept. 30, 3Q20 vs 3Q20 vsBanking 2020 2020 2019 2Q20 3Q19Net interest $ 149,946 $ 145,109 $ 178,960 3.3 % (16.2 )revenue %Fees andcommissions 50,085 46,515 46,159 7.7 % 8.5 %revenueOther )operating 66,846 62,933 69,127 6.2 % (3.3 %expenseCorporate ) )expense 5,172 5,437 11,772 (4.9 % (56.1 %allocationsNet income 75,097 80,992 100,986 (7.3 ) (25.6 ) % % Average assets 28,000,183 27,575,652 23,973,925 1.5 % 16.8 %Average loans 18,677,401 19,262,827 19,226,347 (3.0 ) (2.9 ) % %Average 15,375,450 14,599,225 10,833,057 5.3 % 41.9 %deposits Consumer BankingNet interest $ 33,130 $ 39,270 $ 48,462 (15.6 ) (31.6 )revenue % %Fees andcommissions 67,974 67,192 51,461 1.2 % 32.1 %revenueOtheroperating 59,839 58,936 59,699 1.5 % 0.2 %expenseCorporate )expense 10,812 10,812 11,776 ? % (8.2 %allocationsNet income 26,256 31,900 16,640 (17.7 ) 57.8 % % Average assets 9,898,119 9,920,005 9,827,130 (0.2 ) 0.7 % %Average loans 1,825,865 1,679,164 1,773,831 8.7 % 2.9 %Average 7,940,973 7,587,246 6,983,018 4.7 % 13.7 %deposits Wealth ManagementNet interest $ 22,985 $ 26,880 $ 23,066 (14.5 ) (0.4 )revenue % %Fees andcommissions 111,655 106,757 89,422 4.6 % 24.9 %revenueOtheroperating 82,868 80,567 71,619 2.9 % 15.7 %expenseCorporate )expense 9,397 8,204 9,416 14.5 % (0.2 %allocationsNet income 31,212 33,394 23,206 (6.5 ) 34.5 % % Average assets 16,206,522 15,721,452 10,391,225 3.1 % 56.0 %Average loans 1,777,008 1,709,363 1,671,102 4.0 % 6.3 %Average 9,090,116 8,385,681 6,590,332 8.4 % 37.9 %depositsFiduciary 52,935,646 50,560,584 49,259,697 4.7 % 7.5 %assetsAssets undermanagement or 82,419,932 79,452,502 80,796,949 3.7 % 2.0 %administration