GlobeNewswire Inc | Jul 22, 2020 07:55AM EDT

July 22, 2020

TULSA, Okla., July 22, 2020 (GLOBE NEWSWIRE) -- BOK Financial (NASDAQ: BOKF) today reported net earnings applicable to common shareholders for the second quarter of 2020 of $65 million, or $0.92 per diluted common share.

"The second quarter, unlike any in recent memory, demonstrated the effectiveness of our diversified revenue model," said Steven G. Bradshaw, president and chief executive officer. "Record quarters from both our Wealth Management and Mortgage businesses added more than $150 million to fee revenue this quarter, eclipsing our pre-provision net revenue from the same quarter a year ago. In fact, this quarter generated the highest level of pre-provision net revenue in the history of our company, even after normalizing for the impact of the Paycheck Protection Program. Considering the economic environment we find ourselves in today, this is truly a remarkable outcome."

Bradshaw continued, "With more than 40 percent of our company's revenues derived from a host of fee-based businesses, we have the proven ability to generate positive outcomes through all parts of the economic cycle. In this time of margin compression and credit concerns, financial institutions like BOK Financial demonstrate the real power of a diversified business model and sound underwriting methods."

-- Net income was $64.7 million or $0.92 per diluted share for the second quarter of 2020 and $62.1 million or $0.88 per diluted share for the first quarter of 2020. Pre-provision net revenue was $215.8 million for the second quarter of 2020 compared to $173.0 million for the prior quarter. The second quarter of 2020 included a pre-tax provision for expected credit losses of $135.3 million compared to $93.8 million in the prior quarter. -- Net interest revenue totaled $278.1 million, an increase of $16.7 million, largely due to the addition of loans related to the Small Business Administration's ("SBA") Paycheck Protection Program ("PPP") that began on April 3, 2020. Net interest margin was 2.83 percent compared to 2.80 percent in the first quarter of 2020. Our ability to move deposit costs down, along with LIBOR remaining elevated early in the second quarter relative to recent Federal Reserve rate cuts and the strategic positioning of our balance sheet, has allowed us to combat much of the market pressure on our margin. -- Fees and commissions revenue totaled $213.7 million, an increase of $21.0 million. Low mortgage interest rates continued to drive increases in mortgage banking revenue of $16.8 million and related bond trading activity of $9.5 million over the first quarter of 2020. These increases were partially offset by a reduction in service charges, largely due to "shelter in place" impacts coupled with proactive waivers of fees that were extended as a courtesy to our customers during the COVID-19 pandemic. -- Operating expense was $295.4 million, an increase of $26.8 million. Personnel expense increased $20.1 million, including an $11.0 million increase in incentive compensation expense reflecting the growth in our trading activity. Non-personnel expense increased $6.7 million compared to the first quarter of 2020. Increases in mortgage banking costs and occupancy and equipment expense were partially offset by a decrease in business promotion expense. -- Changes in the fair value of mortgage servicing rights and related economic hedges provided $9.3 million during the second quarter of 2020. A $7.4 million increase in the fair value of securities and derivative contracts held as an economic hedge and $2.7 million of related net interest revenue, were partially offset by a $761 thousand decrease in the fair value of mortgage servicing rights. -- We have implemented programs to help our customers through this uncertain time. We are actively participating in programs initiated by the Coronavirus Aid, Relief and Economic Security Act ("CARES Act"), including the SBA's PPP. Average loans for the second quarter increased $2.2 billion to $24.1 billion with $1.7 billion of those being PPP loans. Period-end loans increased $1.7 billion to $24.2 billion. Period-end PPP loans were $2.1 billion. We have also granted $1.2 billion in forbearance requests from customers as of June 30, including $704 million of commercial loans, $398 million in commercial real estate loans and $143 million in loans to individuals. -- The allowance for loan losses totaled $436 million or 1.80 percent of outstanding loans at June30, 2020. 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 at June30, 2020. Excluding PPP loans, the allowance for loan losses was 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 2.12 percent. At March31, 2020, the allowance for loan losses was $315 million or 1.40 percent of outstanding loans. The combined allowance for loan losses and accrual for off-balance sheet credit risk from unfunded loan commitments was $344 million or 1.53 percent of outstanding loans. -- Average deposits increased $4.5 billion to $32.7 billion and period-end deposits increased $4.6 billion to $33.9 billion. An estimated $2.7 billion of this growth was related to CARES Act funding, with the remainder due to growth from our broader customer base. -- The company's common equity Tier 1 capital ratio was 11.41 percent at June30, 2020. In addition, the company's Tier 1 capital ratio was 11.41 percent, total capital ratio was 13.40 percent, and leverage ratio was 7.74 percent at June30, 2020. At March31, 2020, the company's common equity Tier 1 capital ratio was 10.98 percent, Tier 1 capital ratio was 10.98 percent, total capital ratio was 12.65 percent, and leverage ratio was 8.15 percent.

Second Quarter 2020 Business Segment Highlights

-- Commercial Banking contributed $81.0 million to net income, an increase of $6.0 million over the first quarter. While net interest revenue decreased $6.3 million, fees and commissions revenue increased $5.1 million. Customer reaction to the volatile price environment drove an increase of $4.4 million in customer hedging revenue this quarter. Other gains (losses), net also increased $4.6 million, primarily related to an impairment of an alternative investment in the first quarter. Operating expense increased $2.2 million, largely due to incentive compensation. -- Consumer Banking contributed $31.9 million to net income, an increase of $9.0 million over the first quarter. Net interest revenue decreased $4.7 million; however, fees and commissions revenue increased $12.1 million. Mortgage banking revenue increased $16.8 million following another strong quarter for mortgage loan production. Low mortgage interest rates continue to increase volume, particularly around refinances, which is responsible for 71 percent of the volume in the second quarter. The large increase in refinance demand, which reduced industry-wide capacity, has led to the ability to increase margins. Gain on sale margin increased 159 basis points to 3.65 percent. This increase was partially offset by a decrease in service charges as we waived certain fees in the second quarter to help customers throughout this uncertain time. Changes in the fair value of mortgage servicing rights and related economic hedges provided $9.3 million during the second quarter of 2020. Operating expense increased $4.1 million, primarily due to an increase in mortgage banking costs. -- Wealth Management contributed $33.4 million to net income, an increase of $10.8 million over the first quarter. Net interest revenue increased $8.0 million and fees and commissions increased $8.9 million. Lower interest rates drove record increases in industry-wide mortgage loan production volume during the second quarter. We increased our trading pipeline to provide greater liquidity to the housing market. As a result, trading revenue increased $9.5 million. Trust fees and commissions decreased $3.2 million as we waived certain fees for our customers and market conditions led to reduction in trust revenue. Operating expense increased $2.4 million, primarily due to incentive compensation costs related to increased trading activity partially offset by lower business promotion expense.

Net Interest Revenue

Net interest revenue was $278.1 million for the second quarter of 2020, a $16.7 million increase compared to the first quarter of 2020. PPP loans added $13.6 million to net interest revenue in the second quarter.

Average earning assets increased $1.9 billion compared to the first quarter of 2020. Average loan balances increased $2.2 billion, largely due to the influx of PPP loans. Available for sale securities increased $816 million as we have adjusted our balance sheet for the current rate environment. Fair value option securities, held as an economic hedge of the changes in fair value of our mortgage servicing rights, decreased $1.0 billion. In addition, receivables from unsettled securities sales, primarily related to our U.S. agency residential mortgage-backed trading operations, increased $1.6 billion. Growth in average earning assets and non-interest bearing receivables was largely funded by a $2.2 billion increase in interest-bearing deposits. Other borrowings decreased $3.0 billion, primarily due to a decrease in funds borrowed from the Federal Home Loan Bank, partially offset by an increase in PPP loans funded through the Federal Reserve's PPP Liquidity Facility. Funds purchased and repurchase agreements increased $2.0 billion.

Net interest margin was 2.83 percent compared to 2.80 percent in the previous quarter. The reduction in deposit costs, LIBOR remaining elevated early in the second quarter, and the strategic positioning of our balance sheet, have combined to reduce the pressure on margin. PPP loans added one basis point to net interest margin.

The yield on average earning assets was 3.12 percent, a 61 basis point decrease from the prior quarter as we start to see the effects of the recent Federal Reserve rate cuts. The loan portfolio yield was 3.63 percent, down 87 basis points. The yield on the available for sale securities portfolio decreased 19 basis points to 2.29 percent.

Funding costs were 0.37 percent, down 82 basis points. The cost of interest-bearing deposits decreased 64 basis points to 0.34 percent. The cost of other borrowed funds was down 117 basis points to 0.30 percent. The benefit to net interest margin from assets funded by non-interest liabilities was 8 basis points for the second quarter of 2020 compared to 26 basis points for the first quarter of 2020.

Fees and Commissions Revenue

Fees and commissions revenue totaled $213.7 million for the second quarter of 2020, an increase of $21.0 million over the first quarter of 2020, led by significant growth in mortgage banking and brokerage and trading revenue.

Declining interest rates have propelled mortgage production, particularly refinance activities, and have allowed for margin expansion. Mortgage banking revenue increased $16.8 million to $53.9 million compared to the prior quarter. Mortgage loan production volume was $1.1 billion for the second quarter of 2020, an increase of 2 percent over an already very strong first quarter. Refinances grew to 71 percent of our production volume compared to 57 percent in the prior quarter. Gain on sale margin increased 159 basis points to 3.65 percent as industry-wide capacity constraints have eased pricing competition.

Brokerage and trading revenue increased $11.2 million to $62.0 million. We continue to grow our relationships with mortgage originators by providing liquidity and financial instruments to help them manage their pipeline risk. Trading revenue, primarily related to sales of residential mortgage-backed securities guaranteed by U.S. government agencies and related derivative instruments, increased $9.5 million. Industry-wide mortgage loan production increased in the second quarter driven by the lower rates as the Federal Reserve stepped in to provide market stability. We increased our bond trading pipeline to provide greater liquidity to the housing market during a time of record loan production volumes. Customer hedging revenue also increased $3.0 million as existing customers increased hedging activities in the volatile environment.

Deposit service charges decreased $4.1 million compared to the first quarter. In order to help our customers during uncertain times, we proactively waived certain fees during the second quarter.

Fiduciary and asset management revenue decreased $3.2 million compared to the first quarter of 2020. As a result of the significant decline in interest rates, we provided $1.1 million in fee waivers during the second quarter. In addition, asset volumes and market conditions have affected our trust revenues. These decreases were partially offset by an increase in seasonal tax preparation fees.

Operating Expense

Total operating expense was $295.4 million for the second quarter of 2020, an increase of $26.8 million compared to the first quarter of 2020.

Personnel expense increased $20.1 million. Incentive compensation increased $22.3 million. Cash based incentive compensation increased $11.0 million, primarily due to increased residential mortgage-backed securities trading activity. Deferred compensation, which is largely offset by an increase in the value of related investments included in Other gains (losses), net, increased $11.6 million. Regular compensation increased $1.5 million. Employee benefits decreased $3.8 million, primarily due to a seasonal decrease in payroll taxes.

Non-personnel expense increased $6.7 million compared to the first quarter of 2020. Mortgage banking costs increased $5.1 million. Accruals related to default servicing and loss mitigation costs on loans serviced for others increased $2.8 million due to changes in our portfolio and loan counts, delinquency levels, and additional accruals related to losses on loans in forbearance. Increased amortization of mortgage servicing rights from actual prepayments also added $1.7 million to mortgage banking costs during the second quarter of 2020. Occupancy and equipment expense increased $4.6 million as impairment charges were incurred on two leases where assumptions regarding subleasing changed due to deteriorating economic conditions. We also made a charitable contribution of $3.0 million to the BOKF Foundation in the second quarter. These increases were partially offset by a decrease of $4.3 million in business promotion costs, largely related to reduced travel and entertainment expenses.

Loans, Deposits and Capital

Loans

Outstanding loans were $24.2 billion at June30, 2020, up $1.7 billion over March31, 2020, primarily due to a $2.1 billion increase from PPP loans, partially offset by paydowns in the commercial portfolio.

Outstanding core commercial loan balances decreased $637 million or 4 percent compared to March31, 2020, primarily due to paydowns during the second quarter. 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.

General business loans decreased $448 million to $3.1 billion or 13 percent of total loans. General business loans include $1.7 billion of wholesale/retail loans and $780 million of loans from other commercial industries. Broad paydowns across our core commercial and industrial loan book contracted the portfolio.

Services loan balances decreased $176 million to $3.8 billion or 16 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.

Energy loan balances decreased $138 million to $4.0 billion or 16 percent of total loans as the current commodity price environment dampened demand for new loans and borrowers focused on paying down debt to reduce leverage. Supporting the energy industry has been a hallmark of the Company for over a century. 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 62 percent of committed production loans are secured by properties primarily producing oil. The remaining 38 percent is secured by properties primarily producing natural gas. Unfunded energy loan commitments were $2.5 billion at June30, 2020, a $222 million decrease compared to March31, 2020, primarily due to semi-annual borrowing base redeterminations completed during the second quarter.

Healthcare sector loan balances increased $124 million to $3.3 billion or 14 percent of total loans, primarily due to growth in balances from hospital systems. Our healthcare sector loans primarily consist of $2.4 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.

Commercial real estate loan balances were up $104 million over March31, 2020 and represent 19 percent of total loans at June30, 2020. Multifamily residential loans, our largest exposure in commercial real estate, increased $125 million to $1.4 billion at June30, 2020. Paydowns from refinances into the permanent market slowed during the second quarter. Loans secured by office buildings increased $12 million to $974 million. Loans secured by other commercial real estate properties decreased $32 million to $533 million. Loans secured by retail facilities were $780 million at June30, 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 $144 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 June30, 2020.

Deposits

Period-end deposits totaled $33.9 billion at June30, 2020, a $4.6 billion increase over March31, 2020. Inflows resulting from PPP loans and government stimulus payments during the pandemic, along with additional core deposit growth as customers maintain higher balances, have all contributed to the significant increase in deposits. Interest-bearing transaction account balances grew by $2.3 billion and demand deposit balances increased $2.2 billion. Average deposits were $32.7 billion at June30, 2020, a $4.5 billion increase compared to March31, 2020. Average demand deposit balances grew by $2.3 billion and interest-bearing transaction deposits increased $1.9 billion.

Capital

The company's common equity Tier 1 capital ratio was 11.41 percent at June30, 2020. In addition, the company's Tier 1 capital ratio was 11.41 percent, total capital ratio was 13.40 percent, and leverage ratio was 7.74 percent at June30, 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 30 basis points to the company's common equity tier 1 capital ratio at June 30. At March31, 2020, the company's common equity Tier 1 capital ratio was 10.98 percent, Tier 1 capital ratio was 10.98 percent, total capital ratio was 12.65 percent, and leverage ratio was 8.15 percent.

The company's tangible common equity ratio, a non-GAAP measure, was 8.79 percent at June30, 2020 and 8.39 percent at March31, 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.

The company paused share repurchases through the second quarter of 2020. The company repurchased 442,000 shares at an average price of $75.52 in the first quarter of 2020. We view share buybacks opportunistically, but within the context of maintaining our strong capital position.

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. The previous incurred loss model incorporated only known information as of the balance sheet date. CECL uses models to 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.

The provision for credit losses was $135.3 million for the second quarter of 2020, with $138.8 million related to lending activities. Changes in our reasonable and supportable forecasts of macroeconomic variables, primarily due to the anticipated impact of the on-going COVID-19 pandemic, and other assumptions, required a provision of $54.6 million. All other changes totaled $84.2 million, which included $14.4 million primarily due to increased specific impairment of energy loans, portfolio changes of $55.7 million primarily due to changes in risk grades related to energy loans, partially offset by the impact of a decrease in loan balances, and net charge-offs of $14.1 million. The provision related to lending activities was partially offset by a $3.6 million decrease in the accrual for expected credit losses from mortgage banking activities. During the second quarter, the Company sold certain mortgage servicing rights related to residential mortgage loans transferred to mortgage-backed securities. These servicing rights expose the Company to credit risk for amounts that exceed the U.S. government agency guarantees.

Our base case reasonable and supportable forecast includes an 18 percent increase in GDP and an 8.4 percent civilian unemployment rate in the third quarter of 2020, as adjusted for the impact of government stimulus programs. Our forward twelve month forecast through the second quarter of 2021 assumes a 5.0 percent increase in GDP and an 8.5 percent civilian unemployment rate. WTI oil prices are projected to generally follow the NYMEX forward curve that existed at the end of June 2020, $38.99 per barrel for delivery in the third quarter of 2020 and increasing to $40.13 per barrel for delivery in the second quarter of 2021. Our downside reasonable and supportable forecast reflects a more severe and prolonged disruption in economic activity than the base case and includes a 6.0 percent increase in GDP and a 9.7 percent adjusted civilian unemployment rate in the third quarter of 2020. Our forward twelve month forecast through the second quarter of 2021 assumes a 6.0 percent increase in GDP and a 10.0 percent civilian unemployment rate. WTI oil prices are projected to range from $33.99 per barrel for delivery in the third quarter of 2020 to $34.63 per barrel for delivery in the second quarter of 2021.

The allowance for loan losses totaled $436 million or 1.80 percent of outstanding loans and 175 percent of nonaccruing loans at June30, 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 $469 million or 1.94 percent of outstanding loans and 188 percent of nonaccruing loans at June30, 2020. The combined allowance for credit losses attributed to energy was 4.44 percent of outstanding energy loans at June30. Excluding PPP loans, the allowance for loan losses was 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 2.12 percent.

At March31, 2020, the allowance for loan losses was $315 million or 1.40 percent of outstanding loans and 199 percent of nonaccruing 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 $344 million or 1.53 percent of outstanding loans and 217 percent of nonaccruing loans.

Nonperforming assets totaled $405 million or 1.68 percent of outstanding loans and repossessed assets at June30, 2020, compared to $292 million or 1.30 percent at March31, 2020. Nonperforming assets that are not guaranteed by U.S. government agencies totaled $285 million or 1.19 percent of outstanding loans and repossessed assets at June30, 2020, compared to $195 million or 0.87 percent at March31, 2020.

Nonaccruing loans were $255 million or 1.16 percent of outstanding loans at June30, 2020. Nonaccruing commercial loans totaled $202 million or 1.43 percent of outstanding commercial loans. Nonaccruing commercial real estate loans totaled $14.0 million or 0.31 percent of outstanding commercial real estate loans. Nonaccruing loans to individuals totaled $39 million or 1.17 percent of outstanding loans to individuals.

Nonaccruing loans increased $92 million from March31, 2020, primarily due to a $67 million increase in nonaccruing energy loans and a $13 million increase in nonaccruing services loans. New nonaccruing loans identified in the second quarter totaled $124 million, offset by $16 million in payments received, $16 million in charge-offs and $1.1 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 $626 million at June30, compared to $293 million at March31. The increase largely resulted from energy and service sector loans. Oil prices remained depressed during April and May during our semi-annual borrowing base redeterminations resulting in credit quality migration in the energy portfolio. While prices have subsequently improved, the pricing environment remains fragile and tied to the continued economic recovery.

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. Net charge-offs were $17.2 million or 0.31 percent of average loans on an annualized basis for the first quarter of 2020. Gross charge-offs were $15.6 million for the second quarter compared to $18.9 million for the previous quarter. Recoveries totaled $1.5 million for the second quarter of 2020 and $1.7 million for the first quarter of 2020.

Securities and Derivatives

The fair value of the available for sale securities portfolio totaled $12.5 billion at June30, 2020, a $218 million decrease compared to March31, 2020. At June30, 2020, the available for sale securities portfolio consisted primarily of $9.1 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 June30, 2020, the available for sale securities portfolio had a net unrealized gain of $487 million compared to $436 million at March31, 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 $981 million to $723 million at June30, 2020.

The net economic benefit of the changes in the fair value of mortgage servicing rights and related economic hedges was $9.3 million during the second quarter of 2020, including a $7.4 million increase in the fair value of securities and derivative contracts held as an economic hedge, $761 thousand decrease in the fair value of mortgage servicing rights, and $2.7 million of related net interest revenue. The completion of a sale of mortgage servicing rights on $1.6 billion of unpaid principal balance, primarily related to loans guaranteed by the Veteran's Administration, was a large contributor to the increase in the fair value of contracts held as an economic hedge. Interest rate movements between the date we established the transaction price and the closing date of the sale produced positive results.

Conference Call and Webcast

The company will hold a conference call at 9 a.m. Central time on July 22, 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 # 13706496.

About BOK Financial Corporation

BOK Financial Corporation is a $46 billion regional financial services company headquartered in Tulsa, Oklahoma with $79 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 June30, 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)

June 30, 2020 Mar. 31, 2020ASSETS Cash and due from banks $ 762,453 $ 670,500 Interest-bearing cash and cash equivalents 485,319 302,577 Trading securities 1,196,105 2,110,585 Investment securities, net of allowance 267,988 272,576 Available for sale securities 12,475,919 12,694,277 Fair value option securities 722,657 1,703,238 Restricted equity securities 125,683 390,042 Residential mortgage loans held for sale 319,357 204,720 Loans: Commercial 14,158,510 14,795,975 Commercial real estate 4,554,144 4,450,085 Paycheck protection program 2,081,428 ? Loans to individuals 3,361,808 3,217,910 Total loans 24,155,890 22,463,970 Allowance for loan losses (435,597 ) (315,311 ) Loans, net of allowance 23,720,293 22,148,659 Premises and equipment, net 550,230 546,093 Receivables 226,934 207,341 Goodwill 1,048,091 1,048,091 Intangible assets, net 123,595 121,807 Mortgage servicing rights 97,971 110,828 Real estate and other repossessed assets, 35,330 36,744 netDerivative contracts, net 651,553 922,716 Cash surrender value of bank-owned life 393,741 391,006 insuranceReceivable on unsettled securities sales 1,863,719 2,171,881 Other assets 752,936 1,065,481 TOTAL ASSETS $ 45,819,874 $ 47,119,162 LIABILITIES AND EQUITY Deposits: Demand $ 11,992,165 $ 9,821,582 Interest-bearing transaction 18,850,418 16,596,292 Savings 696,971 593,805 Time 2,352,760 2,232,473 Total deposits 33,892,314 29,244,152 Funds purchased and repurchase agreements 1,357,602 4,583,768 Other borrowings 3,173,563 5,529,554 Subordinated debentures 275,973 275,942 Accrued interest, taxes and expense 365,634 309,236 Due on unsettled securities purchases 599,510 537,709 Derivative contracts, net 610,020 1,213,445 Other liabilities 440,835 391,196 TOTAL LIABILITIES 40,715,451 42,085,002 Shareholders' equity: Capital, surplus and retained earnings 4,726,679 4,694,956 Accumulated other comprehensive gain 370,316 331,292 TOTAL SHAREHOLDERS' EQUITY 5,096,995 5,026,248 Non-controlling interests 7,428 7,912 TOTAL EQUITY 5,104,423 5,034,160 TOTAL LIABILITIES AND EQUITY $ 45,819,874 $ 47,119,162

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

Three Months Ended June 30, 2020 Mar. 31, 2020 Dec. 31, 2019 Sept. 30, 2019 June 30, 2019ASSETS Interest-bearingcash and cash $ 619,737 $ 721,659 $ 573,203 $ 500,823 $ 535,491 equivalentsTrading 1,871,647 1,690,104 1,672,426 1,696,568 1,757,335 securitiesInvestmentsecurities, net 268,947 282,265 298,567 308,090 328,482 of allowanceAvailable for 12,480,065 11,664,521 11,333,524 10,747,439 9,435,668 sale securitiesFair valueoption 786,757 1,793,480 1,521,528 1,553,879 898,772 securitiesRestrictedequity 273,922 429,133 479,687 476,781 413,812 securitiesResidentialmortgage loans 288,588 129,708 203,535 203,319 192,102 held for saleLoans: Commercial 14,502,652 14,452,851 14,344,534 14,507,185 14,175,057 Commercial real 4,543,511 4,346,886 4,532,649 4,652,534 4,656,861 estatePaycheckprotection 1,699,369 ? ? ? ? programLoans to 3,353,960 3,143,286 3,358,817 3,253,199 3,172,487 individualsTotal loans 24,099,492 21,943,023 22,236,000 22,412,918 22,004,405 Allowance for (367,583 ) (250,338 ) (205,417 ) (201,714 ) (205,532 ) loan lossesLoans, net of 23,731,909 21,692,685 22,030,583 22,211,204 21,798,873 allowanceTotal earning 40,321,572 38,403,555 38,113,053 37,698,103 35,360,535 assetsCash and due 678,878 669,369 690,806 717,338 703,294 from banksDerivative 642,969 376,621 311,542 331,834 328,802 contracts, netCash surrendervalue of 391,951 390,009 388,012 385,190 384,974 bank-owned lifeinsuranceReceivable onunsettled 4,626,307 3,046,111 1,973,604 1,742,794 1,437,462 securities salesOther assets 3,095,354 2,834,953 2,736,337 2,705,089 2,629,710 TOTAL ASSETS $ 49,757,031 $ 45,720,618 $ 44,213,354 $ 43,580,348 $ 40,844,777 LIABILITIES AND EQUITYDeposits: Demand $ 11,489,322 $ 9,232,859 $ 9,612,533 $ 9,759,710 $ 9,883,965 Interest-bearing 18,040,170 16,159,654 14,685,385 13,131,542 12,512,282 transactionSavings 656,669 563,821 554,605 557,122 558,738 Time 2,464,793 2,239,234 2,247,717 2,251,800 2,207,391 Total deposits 32,650,954 28,195,568 27,100,240 25,700,174 25,162,376 Funds purchasedand repurchase 5,816,484 3,815,941 4,120,610 3,106,163 2,066,950 agreementsOther borrowings 3,527,303 6,542,325 6,247,194 8,125,023 7,175,617 Subordinated 275,949 275,932 275,916 275,900 275,887 debenturesDerivative 836,667 379,342 276,078 300,051 283,484 contracts, netDue on unsettledsecurities 887,973 960,780 784,174 745,893 821,688 purchasesOther 690,087 642,764 561,654 547,144 460,732 liabilitiesTOTAL 44,685,417 40,812,652 39,365,866 38,800,348 36,246,734 LIABILITIESTotal equity 5,071,614 4,907,966 4,847,488 4,780,000 4,598,043 TOTALLIABILITIES AND $ 49,757,031 $ 45,720,618 $ 44,213,354 $ 43,580,348 $ 40,844,777 EQUITY

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

Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Interest $ 306,384 $ 390,820 $ 655,321 $ 766,894 revenueInterest 28,280 105,388 115,857 203,360 expenseNet interest 278,104 285,432 539,464 563,534 revenueProvision for 135,321 5,000 229,092 13,000 credit lossesNet interestrevenue after 142,783 280,432 310,372 550,534 provision forcredit lossesOther operating revenue:Brokerage and 62,022 40,526 112,801 72,143 trading revenueTransaction 22,940 21,915 44,821 42,653 card revenueFiduciary andasset 41,257 45,025 85,715 88,383 managementrevenueDeposit servicecharges and 22,046 28,074 48,176 56,317 feesMortgage 53,936 28,131 91,103 51,965 banking revenueOther revenue 11,479 12,437 23,788 25,199 Total fees and 213,680 176,108 406,404 336,660 commissionsOther gains 6,768 3,480 (3,973 ) 6,456 (losses), netGain onderivatives, 21,885 11,150 40,305 15,817 netGain (loss) onfair value (14,459 ) 9,853 53,934 19,518 optionsecurities, netChange in fairvalue ofmortgage (761 ) (29,555 ) (89,241 ) (50,221 ) servicingrightsGain onavailable for 5,580 1,029 5,583 1,105 salesecurities, netTotal otheroperating 232,693 172,065 413,012 329,335 revenueOther operating expense:Personnel 176,235 160,342 332,416 329,570 Business 1,935 10,142 8,150 18,016 promotionProfessionalfees and 12,161 13,002 25,109 29,141 servicesNet occupancy 30,675 26,880 56,736 56,401 and equipmentInsurance 5,156 6,454 10,136 11,293 Data processingand 32,942 29,735 65,685 61,184 communicationsPrinting,postage and 3,502 4,107 7,774 8,992 suppliesNet losses andoperatingexpenses of 1,766 580 3,297 2,576 repossessedassetsAmortization ofintangible 5,190 5,138 10,284 10,329 assetsMortgage 15,598 11,545 26,143 21,451 banking costsOther expense 7,227 8,212 15,281 14,341 Total otheroperating 295,387 277,137 564,011 564,294 expense Net income 80,089 175,360 159,373 315,575 before taxesFederal andstate income 15,803 37,580 33,103 67,530 taxes Net income 64,286 137,780 126,270 248,045 Net income(loss)attributable to (407 ) 217 (502 ) (130 ) non-controllinginterestsNet incomeattributable toBOK Financial $ 64,693 $ 137,563 $ 126,772 $ 248,175 Corporationshareholders Average shares outstanding:Basic 69,876,043 70,887,063 69,999,865 71,135,414 Diluted 69,877,467 70,902,033 70,003,817 71,151,558 Net income per share:Basic $ 0.92 $ 1.93 $ 1.80 $ 3.47 Diluted $ 0.92 $ 1.93 $ 1.80 $ 3.46

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

Three Months Ended June 30, 2020 Mar. 31, 2020 Dec. 31, 2019 Sept. 30, 2019 June 30, 2019Capital: Period-endshareholders' $ 5,096,995 $ 5,026,248 $ 4,855,795 $ 4,829,016 $ 4,709,438 equityRisk weighted $ 32,258,548 $ 32,973,242 $ 31,673,425 $ 32,159,139 $ 32,040,741 assetsRisk-based capital ratios:Common equity 11.41 % 10.98 % 11.39 % 11.06 % 10.84 %tier 1Tier 1 11.41 % 10.98 % 11.39 % 11.06 % 10.84 %Total capital 13.40 % 12.65 % 12.94 % 12.56 % 12.34 %Leverage ratio 7.74 % 8.15 % 8.40 % 8.41 % 8.75 %Tangible common 8.79 % 8.39 % 8.98 % 8.72 % 8.69 %equity ratio^1 Common stock: Book value per $ 72.50 $ 71.49 $ 68.80 $ 68.15 $ 66.15 shareTangible book 55.83 54.85 52.17 51.60 49.68 value per shareMarket value per share:High $ 67.62 $ 87.40 $ 88.28 $ 84.35 $ 88.17 Low $ 37.80 $ 34.57 $ 71.85 $ 72.96 $ 72.60 Cash dividends $ 35,769 $ 35,949 $ 36,011 $ 35,472 $ 35,631 paidDividend payout 55.29 % 57.91 % 32.63 % 24.94 % 25.90 %ratioSharesoutstanding, 70,306,690 70,308,532 70,579,598 70,858,010 71,193,770 netStock buy-back program:Shares ? 442,000 280,000 336,713 250,000 repurchasedAmount $ ? $ 33,380 $ 22,844 $ 25,937 $ 20,125 Average price $ ? $ 75.52 $ 81.59 $ 77.03 $ 80.50 per share Performance ratios (quarter annualized):Return on 0.52 % 0.55 % 0.99 % 1.29 % 1.35 %average assetsReturn on 5.14 % 5.10 % 9.05 % 11.83 % 12.02 %average equityNet interest 2.83 % 2.80 % 2.88 % 3.01 % 3.30 %marginEfficiency 59.57 % 58.62 % 63.65 % 59.31 % 59.51 %ratio Reconciliation of non-GAAP measures:^1 Tangiblecommon equity ratio:Totalshareholders' $ 5,096,995 $ 5,026,248 $ 4,855,795 $ 4,829,016 $ 4,709,438 equityLess: Goodwilland intangible 1,171,686 1,169,898 1,173,362 1,172,411 1,172,564 assets, netTangible common $ 3,925,309 $ 3,856,350 $ 3,682,433 $ 3,656,605 $ 3,536,874 equity Total assets $ 45,819,874 $ 47,119,162 $ 42,172,021 $ 43,127,205 $ 41,893,073 Less: Goodwilland intangible 1,171,686 1,169,898 1,173,362 1,172,411 1,172,564 assets, netTangible assets $ 44,648,188 $ 45,949,264 $ 40,998,659 $ 41,954,794 $ 40,720,509 Tangible common 8.79 % 8.39 % 8.98 % 8.72 % 8.69 %equity ratio Pre-provision net revenue:Net income $ 80,089 $ 79,284 $ 141,039 $ 174,254 $ 175,360 before taxesProvision forexpected credit 135,321 93,771 19,000 12,000 5,000 lossesNet income(loss)attributable to (407 ) (95 ) 430 (373 ) 217 non-controllinginterestsPre-provision $ 215,817 $ 173,150 $ 159,609 $ 186,627 $ 180,143 net revenue Other data: Tax equivalent $ 2,630 $ 2,715 $ 2,726 $ 2,936 $ 3,481 interestNet unrealizedgain (loss) on $ 487,334 $ 435,989 $ 138,149 $ 178,060 $ 131,780 available forsale securities Mortgage banking:Mortgageproduction $ 39,185 $ 21,570 $ 9,169 $ 13,814 $ 11,869 revenue Mortgage loans $ 1,184,249 $ 548,956 $ 855,643 $ 877,280 $ 729,841 funded for saleAdd: currentperiod-end 546,304 657,570 158,460 379,377 344,087 outstandingcommitmentsLess: priorperiod end 657,570 158,460 379,377 344,087 263,434 outstandingcommitmentsTotal mortgageproduction $ 1,072,983 $ 1,048,066 $ 634,726 $ 912,570 $ 810,494 volume Mortgage loanrefinances to 71 % 57 % 57 % 56 % 31 %mortgage loansfunded for saleGain on sale 3.65 % 2.06 % 1.44 % 1.51 % 1.46 %margin Mortgageservicing $ 14,751 $ 15,597 $ 16,227 $ 16,366 $ 16,262 revenueAverageoutstandingprincipalbalance of 19,319,872 20,416,546 20,856,446 21,172,874 21,418,690 mortgage loansserviced forothersAveragemortgage 0.31 % 0.31 % 0.31 % 0.31 % 0.30 %servicingrevenue rates Gain (loss) on mortgage servicing rights, net of economic hedge:Gain (loss) onmortgage hedge $ 21,815 $ 18,371 $ (4,714 ) $ 3,742 $ 11,128 derivativecontracts, netGain (loss) onfair value (14,459 ) 68,393 (8,328 ) 4,597 9,853 optionsecurities, netGain (loss) oneconomic hedgeof mortgage 7,356 86,764 (13,042 ) 8,339 20,981 servicingrightsGain (loss) onchanges in fairvalue of (761 ) (88,480 ) 9,297 (12,593 ) (29,555 ) mortgageservicingrightsGain (loss) onchanges in fairvalue ofmortgageservicingrights, net of 6,595 (1,716 ) (3,745 ) (4,254 ) (8,574 ) economichedges,included inother operatingrevenueNet interestrevenue on fair 2,702 4,268 1,544 1,245 1,296 value optionsecurities^2Total economicbenefit (cost)of changes inthe fair value $ 9,297 $ 2,552 $ (2,201 ) $ (3,009 ) $ (7,278 ) 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 June 30, 2020 Mar. 31, 2020 Dec. 31, 2019 Sept. 30, 2019 June 30, 2019 Interest $ 306,384 $ 348,937 $ 369,857 $ 395,207 $ 390,820 revenueInterest 28,280 87,577 99,608 116,111 105,388 expenseNet interest 278,104 261,360 270,249 279,096 285,432 revenueProvision for 135,321 93,771 19,000 12,000 5,000 credit lossesNet interestrevenue after 142,783 167,589 251,249 267,096 280,432 provision forcredit lossesOther operating revenue:Brokerage and 62,022 50,779 43,843 43,840 40,526 trading revenueTransaction 22,940 21,881 22,548 22,015 21,915 card revenueFiduciary andasset 41,257 44,458 45,021 43,621 45,025 managementrevenueDeposit servicecharges and 22,046 26,130 27,331 28,837 28,074 feesMortgage 53,936 37,167 25,396 30,180 28,131 banking revenueOther revenue 11,479 12,309 15,283 17,626 12,437 Total fees and 213,680 192,724 179,422 186,119 176,108 commissionsOther gains 6,768 (10,741 ) (1,649 ) 4,544 3,480 (losses), netGain (loss) onderivatives, 21,885 18,420 (4,644 ) 3,778 11,150 netGain (loss) onfair value (14,459 ) 68,393 (8,328 ) 4,597 9,853 optionsecurities, netChange in fairvalue ofmortgage (761 ) (88,480 ) 9,297 (12,593 ) (29,555 ) servicingrightsGain onavailable for 5,580 3 4,487 5 1,029 salesecurities, netTotal otheroperating 232,693 180,319 178,585 186,450 172,065 revenueOther operating expense:Personnel 176,235 156,181 168,422 162,573 160,342 Business 1,935 6,215 8,787 8,859 10,142 promotionCharitablecontributions 3,000 ? 2,000 ? 1,000 to BOKFFoundationProfessionalfees and 12,161 12,948 13,408 12,312 13,002 servicesNet occupancy 30,675 26,061 26,316 27,558 26,880 and equipmentInsurance 5,156 4,980 5,393 4,220 6,454 Data processingand 32,942 32,743 31,884 31,915 29,735 communicationsPrinting,postage and 3,502 4,272 3,700 3,825 4,107 suppliesNet losses andoperatingexpenses of 1,766 1,531 2,403 1,728 580 repossessedassetsAmortization ofintangible 5,190 5,094 5,225 5,064 5,138 assetsMortgage 15,598 10,545 14,259 14,975 11,545 banking costsOther expense 7,227 8,054 6,998 6,263 8,212 Total otheroperating 295,387 268,624 288,795 279,292 277,137 expenseNet income 80,089 79,284 141,039 174,254 175,360 before taxesFederal andstate income 15,803 17,300 30,257 32,396 37,580 taxesNet income 64,286 61,984 110,782 141,858 137,780 Net income(loss)attributable to (407 ) (95 ) 430 (373 ) 217 non-controllinginterestsNet incomeattributable toBOK Financial $ 64,693 $ 62,079 $ 110,352 $ 142,231 $ 137,563 Corporationshareholders Average shares outstanding:Basic 69,876,043 70,123,685 70,295,899 70,596,307 70,887,063 Diluted 69,877,467 70,130,166 70,309,644 70,609,924 70,902,033 Net income per share:Basic $ 0.92 $ 0.88 $ 1.56 $ 2.00 $ 1.93 Diluted $ 0.92 $ 0.88 $ 1.56 $ 2.00 $ 1.93

LOANS TREND -- UNAUDITEDBOK FINANCIAL CORPORATION(In thousands)

June 30, 2020 Mar. 31, 2020 Dec. 31, 2019 Sept. 30, 2019 June 30, 2019Commercial: Energy $ 3,974,174 $ 4,111,676 $ 3,973,377 $ 4,114,269 $ 3,921,353 Services 3,779,881 3,955,748 3,832,031 4,011,089 4,105,117 Healthcare 3,289,343 3,165,096 3,033,916 3,032,968 2,926,510 General 3,115,112 3,563,455 3,192,326 3,266,299 3,383,928 businessTotal 14,158,510 14,795,975 14,031,650 14,424,625 14,336,908 commercial Commercial real estate:Multifamily 1,407,107 1,282,457 1,265,562 1,324,839 1,300,372 Office 973,995 962,004 928,379 1,014,275 1,056,306 Retail 780,467 774,198 775,521 799,169 825,399 Industrial 723,005 728,026 856,117 873,536 828,569 Residentialconstruction 136,911 138,958 150,879 135,361 141,509 and landdevelopmentOthercommercial 532,659 564,442 457,325 478,877 557,878 real estateTotalcommercial 4,554,144 4,450,085 4,433,783 4,626,057 4,710,033 real estate Paycheckprotection 2,081,428 ? ? ? ? program Loans to individuals:Permanent 1,813,442 1,844,555 1,886,378 1,925,539 1,975,449 mortgagePermanentmortgagesguaranteed 322,269 197,889 197,794 191,764 195,373 by U.S.governmentagenciesPersonal 1,226,097 1,175,466 1,201,382 1,117,382 1,037,889 Total loansto 3,361,808 3,217,910 3,285,554 3,234,685 3,208,711 individuals Total $ 24,155,890 $ 22,463,970 $ 21,750,987 $ 22,285,367 $ 22,255,652

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

June 30, 2020 Mar. 31, 2020 Dec. 31, 2019 Sept. 30, 2019 June 30, 2019 Texas: Commercial $ 5,771,691 $ 6,350,690 $ 6,174,894 $ 6,220,227 $ 5,877,265 Commercial 1,389,547 1,296,266 1,259,117 1,292,116 1,341,609 real estatePaycheckprotection 612,133 ? ? ? ? programLoans to 748,474 756,634 727,175 749,361 673,463 individualsTotal Texas 8,521,845 8,403,590 8,161,186 8,261,704 7,892,337 Oklahoma: Commercial 5,086,934 3,886,086 3,454,825 3,690,100 3,762,234 Commercial 636,021 593,473 631,026 679,786 717,970 real estatePaycheckprotection 442,518 ? ? ? ? programLoans to 1,967,665 1,788,518 1,854,864 1,753,698 1,786,162 individualsTotal 8,133,138 6,268,077 5,940,715 6,123,584 6,266,366 Oklahoma Colorado: Commercial 1,600,382 2,181,309 2,169,598 2,247,798 2,325,742 Commercial 937,742 955,608 927,826 975,066 1,023,410 real estatePaycheckprotection 488,279 ? ? ? ? programLoans to 264,872 268,674 276,939 303,605 314,317 individualsTotal 3,291,275 3,405,591 3,374,363 3,526,469 3,663,469 Colorado Arizona: Commercial 1,036,862 1,396,582 1,307,073 1,276,534 1,330,415 Commercial 689,121 714,161 728,832 771,425 761,243 real estatePaycheckprotection 318,961 ? ? ? ? programLoans to 177,066 181,821 186,539 170,815 168,019 individualsTotal 2,222,010 2,292,564 2,222,444 2,218,774 2,259,677 Arizona Kansas/ Missouri:Commercial 404,860 556,255 527,872 566,969 602,836 Commercial 314,504 310,799 322,541 374,795 331,443 real estatePaycheckprotection 76,724 ? ? ? ? programLoans to 102,577 116,734 131,069 146,522 155,453 individualsTotalKansas/ 898,665 983,788 981,482 1,088,286 1,089,732 Missouri New Mexico: Commercial 182,688 327,164 305,320 335,409 350,520 Commercial 455,574 434,150 402,148 374,331 385,058 real estatePaycheckprotection 128,058 ? ? ? ? programLoans to 83,470 87,110 90,257 92,270 92,626 individualsTotal New 849,790 848,424 797,725 802,010 828,204 Mexico Arkansas: Commercial 75,093 97,889 92,068 87,588 87,896 Commercial 131,635 145,628 162,293 158,538 149,300 real estatePaycheckprotection 14,755 ? ? ? ? programLoans to 17,684 18,419 18,711 18,414 18,671 individualsTotal 239,167 261,936 273,072 264,540 255,867 Arkansas TOTAL BOK $ 24,155,890 $ 22,463,970 $ 21,750,987 $ 22,285,367 $ 22,255,652 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)

June 30, 2020 Mar. 31, 2020 Dec. 31, 2019 Sept. 30, 2019 June 30, 2019Oklahoma: Demand $ 4,378,559 $ 3,669,558 $ 3,257,337 $ 3,515,312 $ 3,279,360 Interest-bearing: Transaction 11,438,489 9,955,697 8,574,912 7,447,799 7,020,484 Savings 387,557 329,631 306,194 308,103 307,785 Time 1,330,619 1,137,802 1,125,446 1,198,170 1,253,804 Total 13,156,665 11,423,130 10,006,552 8,954,072 8,582,073 interest-bearingTotal Oklahoma 17,535,224 15,092,688 13,263,889 12,469,384 11,861,433 Texas: Demand 3,070,955 2,767,399 2,757,376 2,867,915 2,970,340 Interest-bearing: Transaction 3,358,090 2,874,362 2,911,731 2,589,063 2,453,187 Savings 128,892 115,039 102,456 100,597 103,125 Time 476,867 505,565 495,343 464,264 425,253 Total 3,963,849 3,494,966 3,509,530 3,153,924 2,981,565 interest-bearingTotal Texas 7,034,804 6,262,365 6,266,906 6,021,839 5,951,905 Colorado: Demand 2,096,075 1,579,764 1,729,674 1,694,044 1,621,820 Interest-bearing: Transaction 1,816,604 1,759,384 1,769,037 1,910,874 1,800,271 Savings 67,477 58,000 53,307 60,107 57,263 Time 254,845 279,105 283,517 273,622 246,198 Total 2,138,926 2,096,489 2,105,861 2,244,603 2,103,732 interest-bearingTotal Colorado 4,235,001 3,676,253 3,835,535 3,938,647 3,725,552 New Mexico: Demand 965,877 750,052 623,722 645,698 630,861 Interest-bearing: Transaction 752,565 563,891 558,493 539,260 557,881 Savings 80,242 67,553 63,999 62,863 62,636 Time 222,370 235,778 238,140 236,135 232,569 Total 1,055,177 867,222 860,632 838,258 853,086 interest-bearingTotal New Mexico 2,021,054 1,617,274 1,484,354 1,483,956 1,483,947 Arizona: Demand 985,757 665,396 681,268 705,895 704,144 Interest-bearing: Transaction 780,500 729,603 684,929 600,103 560,861 Savings 15,669 8,832 10,314 12,487 11,966 Time 42,318 47,081 49,676 44,347 43,099 Total 838,487 785,516 744,919 656,937 615,926 interest-bearingTotal Arizona 1,824,244 1,450,912 1,426,187 1,362,832 1,320,070

June 30, 2020 Mar. 31, 2020 Dec. 31, 2019 Sept. 30, 2019 June 30, 2019Kansas/Missouri: Demand 427,795 318,985 384,533 376,020 431,856 Interest-bearing: Transaction 526,635 537,552 784,574 284,940 310,774 Savings 15,033 12,888 12,169 11,689 13,125 Time 17,746 19,137 17,877 19,126 19,205 Total 559,414 569,577 814,620 315,755 343,104 interest-bearingTotal Kansas/Missouri 987,209 888,562 1,199,153 691,775 774,960 Arkansas: Demand 67,147 70,428 27,381 39,513 29,176 Interest-bearing: Transaction 177,535 175,803 108,076 149,506 148,485 Savings 2,101 1,862 1,837 1,747 1,783 Time 7,995 8,005 7,850 7,877 7,810 Total 187,631 185,670 117,763 159,130 158,078 interest-bearingTotal Arkansas 254,778 256,098 145,144 198,643 187,254 TOTAL BOK FINANCIAL $ 33,892,314 $ 29,244,152 $ 27,621,168 $ 26,167,076 $ 25,305,121

NET INTEREST MARGIN TREND -- UNAUDITEDBOK FINANCIAL CORPORATION

Three Months Ended June Mar. Dec. Sept. June 30, 31, 31, 30, 2019 30, 2020 2020 2019 2019 TAX-EQUIVALENT ASSETS YIELDSInterest-bearing cash and 0.07 % 1.33 % 1.62 % 2.42 % 2.57 %cash equivalentsTrading securities 2.46 % 2.89 % 3.19 % 3.49 % 3.59 %Investment securities, net 4.77 % 4.73 % 4.69 % 4.46 % 4.41 %of allowanceAvailable for sale 2.29 % 2.48 % 2.52 % 2.60 % 2.63 %securitiesFair value option 2.00 % 2.67 % 2.62 % 2.79 % 3.34 %securitiesRestricted equity 2.75 % 5.49 % 5.37 % 6.34 % 6.30 %securitiesResidential mortgage loans 3.10 % 3.50 % 3.55 % 3.73 % 3.65 %held for saleLoans 3.63 % 4.50 % 4.75 % 5.12 % 5.39 %Allowance for loan losses Loans, net of allowance 3.69 % 4.55 % 4.80 % 5.17 % 5.45 %Total tax-equivalent yield 3.12 % 3.73 % 3.93 % 4.25 % 4.51 %on earning assets COST OF INTEREST-BEARING LIABILITIESInterest-bearing deposits: Interest-bearing 0.21 % 0.89 % 1.00 % 1.08 % 1.04 %transaction Savings 0.05 % 0.09 % 0.11 % 0.14 % 0.12 % Time 1.36 % 1.83 % 1.94 % 1.94 % 1.90 %Total interest-bearing 0.34 % 0.98 % 1.09 % 1.17 % 1.13 %depositsFunds purchased and 0.14 % 1.14 % 1.56 % 2.01 % 2.08 %repurchase agreementsOther borrowings 0.56 % 1.66 % 2.01 % 2.42 % 2.67 %Subordinated debt 5.16 % 5.30 % 5.40 % 5.48 % 5.53 %Total cost ofinterest-bearing 0.37 % 1.19 % 1.40 % 1.68 % 1.70 %liabilitiesTax-equivalent net 2.75 % 2.54 % 2.53 % 2.57 % 2.81 %interest revenue spreadEffect ofnoninterest-bearing 0.08 % 0.26 % 0.35 % 0.44 % 0.49 %funding sources and otherTax-equivalent net 2.83 % 2.80 % 2.88 % 3.01 % 3.30 %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 June 30, 2020 Mar. 31, 2020 Dec. 31, 2019 Sept. 30, 2019 June 30, 2019Nonperforming assets:Nonaccruing loans:Commercial: Energy $ 162,989 $ 96,448 $ 91,722 $ 88,894 $ 71,632 Healthcare 3,645 4,070 4,480 5,978 16,148 Services 21,032 8,425 7,483 6,119 10,087 General 14,333 9,681 11,731 10,715 25,528 businessTotal 201,999 118,624 115,416 111,706 123,395 commercial Commercial 13,956 8,545 27,626 23,185 21,670 real estate Loans to individuals:Permanent 33,098 30,721 31,522 30,972 31,734 mortgagePermanentmortgageguaranteed by 6,110 5,005 6,100 6,332 6,743 U.S.governmentagenciesPersonal 233 277 287 271 237 Total loansto 39,441 36,003 37,909 37,575 38,714 individuals Totalnonaccruing $ 255,396 $ 163,172 $ 180,951 $ 172,466 $ 183,779 loansAccruingrenegotiatedloansguaranteed by 114,571 91,757 92,452 92,718 95,989 U.S.governmentagenciesReal estateand other 35,330 36,744 20,359 21,026 16,940 repossessedassetsTotalnonperforming $ 405,297 $ 291,673 $ 293,762 $ 286,210 $ 296,708 assetsTotalnonperformingassetsexcludingthose 284,616 194,911 195,210 187,160 193,976 guaranteed byU.S.governmentagencies Accruingloans 90 days 11,316 3,706 7,680 1,541 2,698 past due^1 Gross $ 15,570 $ 18,917 $ 14,268 $ 11,707 $ 13,227 charge-offsRecoveries (1,491 ) (1,696 ) (1,816 ) (1,066 ) (5,503 ) Net $ 14,079 $ 17,221 $ 12,452 $ 10,641 $ 7,724 charge-offs Provision for $ 134,365 $ 95,964 $ 18,779 $ 12,539 $ 4,918 loan lossesProvision forcredit lossesfromoff-balance 4,405 3,377 221 (539 ) 82 sheetunfunded loancommitmentsProvision forexpectedcredit losses (3,575 ) (6,020 ) ? ? ? from mortgagebankingactivities^2Provision forcredit lossesrelated toheld-to 126 450 ? ? ? maturity(investment)securitiesportfolio^2Totalprovision for $ 135,321 $ 93,771 $ 19,000 $ 12,000 $ 5,000 credit losses Allowance forloan losses 1.80 % 1.40 % 0.97 % 0.92 % 0.91 %to period endloansAllowance forloan lossesto period end 1.97 % 1.40 % 0.97 % 0.92 % 0.91 %loansexcluding PPPloans^3Combinedallowance forloan lossesand accrualforoff-balance 1.94 % 1.53 % 0.98 % 0.92 % 0.92 %sheet creditrisk fromunfunded loancommitmentsto period endloansCombinedallowance forloan lossesand accrualforoff-balancesheet credit 2.12 % 1.53 % 0.98 % 0.92 % 0.92 %risk fromunfunded loancommitmentsto period endloansexcluding PPPloans^3Nonperformingassets toperiod end 1.68 % 1.30 % 1.35 % 1.28 % 1.33 %loans andrepossessedassetsNetcharge-offs(annualized) 0.23 % 0.31 % 0.22 % 0.19 % 0.14 %to averageloansNetcharge-offs(annualized)to average 0.25 % 0.31 % 0.22 % 0.19 % 0.14 %loansexcluding PPPloans^3Allowance forloan lossesto 174.74 % 199.35 % 120.54 % 123.05 % 114.40 %nonaccruingloans^1Combinedallowance forloan lossesand accrualforoff-balancesheet credit 187.94 % 217.38 % 121.44 % 123.87 % 115.48 %risk fromunfunded loancommitmentstononaccruingloans^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 2Q20 2Q20 vsBanking June 30, 2020 Mar. 31, 2020 June 30, 2019 vs 2Q19 1Q20Net interest $ 145,109 $ 151,407 $ 184,471 (4.2)% (21.3)%revenueFees andcommissions 46,515 41,459 41,105 12.2% 13.2%revenueOtheroperating 62,933 60,752 63,415 3.6% (0.8)%expenseCorporate (38.9)expense 5,437 8,905 10,652 % (49.0)%allocationsNet income 80,992 74,975 106,280 8.0% (23.8)% Average assets 27,575,652 24,687,976 22,910,724 11.7% 20.4%Average loans 19,262,827 18,812,015 18,812,800 2.4% 2.4%Average 14,599,225 11,907,386 10,724,206 22.6% 36.1%deposits Consumer BankingNet interest $ 39,270 $ 43,932 $ 52,715 (10.6) (25.5)%revenue %Fees andcommissions 67,192 55,062 48,830 22.0% 37.6%revenueOtheroperating 58,936 54,793 57,694 7.6% 2.2%expenseCorporateexpense 10,812 10,487 11,695 3.1% (7.6)%allocationsNet income 31,900 22,921 16,342 39.2% 95.2% Average assets 9,920,005 9,850,853 9,212,667 0.7% 7.7%Average loans 1,679,164 1,711,703 1,796,823 (1.9)% (6.5)%Average 7,587,246 6,869,481 6,998,677 10.4% 8.4%deposits Wealth ManagementNet interest $ 26,880 $ 18,904 $ 26,941 42.2% (0.2)%revenueFees andcommissions 106,757 97,881 85,925 9.1% 24.2%revenueOtheroperating 80,567 78,192 69,452 3.0% 16.0%expenseCorporateexpense 8,204 8,265 9,168 (0.7)% (10.5)%allocationsNet income 33,394 22,573 25,544 47.9% 30.7% Average assets 15,721,452 12,723,412 9,849,396 23.6% 59.6%Average loans 1,709,363 1,705,735 1,647,680 0.2% 3.7%Average 8,385,681 7,623,986 6,220,848 10.0% 34.8%depositsFiduciary 50,560,584 47,053,101 49,296,896 7.5% 2.6%assetsAssets undermanagement or 79,452,502 75,783,829 81,774,602 4.8% (2.8)%administration

Contact:

Cody McAlester Vice President, Investor Relations 918-595-3030