UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):
April 26, 2011

BOK FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter)

 
              Oklahoma                                                     000-19341                                              73-1373454
                --------                                                       ---------                                             ----------
    (State or other jurisdiction                                       (Commission                                            (IRS Employer
            of incorporation)                                            File Number)                                        Identification No.)
 
 

Bank of Oklahoma Tower, Boston Avenue at Second Street, Tulsa, Oklahoma 74172
(Address of principal executive offices)

Registrant's telephone number, including area code:
(918) 588-6000

_____________________N/A___________________________

(Former name or former address, if changes since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

|_| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425).

|_| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12).

|_| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)).

|_| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)).

 
 
 
 
INFORMATION TO BE INCLUDED IN THE REPORT

ITEM 2.02.  Results of Operations and Financial Condition.

On April 26, 2011, BOK Financial Corporation (“BOK Financial”) issued a press release announcing its financial results for the three months ended March 31, 2011 (“Press Release”).  The full text of the Press Release is attached as Exhibit 99(a) to this report and is incorporated herein by reference.  On April 26, 2011, in connection with issuance of the Press Release, BOK Financial released financial information related to the three months ended March 31, 2011 (“Financial Information”), which includes certain historical financial information relating to BOK Financial.  The Financial Information is attached as Exhibit 99(b) to this report and is incorporated herein by reference.

ITEM 9.01.  Financial Statements and Exhibits.

(c)  
Exhibits

 
99(a)
Text of Press Release, dated April 26, 2011 titled “BOK Financial Reports Quarterly Earnings of $65 Million or $0.94 per Share – Commercial Loan Balances Edge Upward; Dividend to Increase 10%”

 
99(b)
Financial Information for the Three Months Ended March 31, 2011


Signature

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


                                                   BOK FINANCIAL CORPORATION




                                                   By:     /s/ Steven E. Nell
                                                                                                                                                                   ___________________________    
                                                 
                                                             Steven E. Nell
                                                             E xecutive Vice President
                                                             Chief Financial Officer
Date: April 26, 2011




Exhibit 99 (a)
 
BOK Financial Reports Quarterly Earnings of $65 Million or $0.94 per Share
Commercial Loan Balances Edge Upward; Dividend to Increase 10%

TULSA, Okla. (Tuesday April 26, 2011) – BOK Financial Corporation reported net income of $64.8 million or $0.94 per diluted share for the first quarter of 2011, up from $58.8 million or $0.86 per diluted share for the fourth quarter of 2010 and $60.1 million or $0.88 per diluted share for the first quarter of 2010.

“BOK Financial is pleased to announce a strong start to 2011 with record earnings for the first quarter,” said President and CEO Stan Lybarger.  “The Company’s performance and capital position allows us to increase our quarterly cash dividend.  This is the sixth consecutive annual increase since we paid our first cash dividend in the second quarter of 2005.  Outstanding commercial loan balances were up in most of our markets and net interest revenue increased over the previous quarter.  We continue to see steady credit quality improvements.”

Highlights of first quarter of 2011 included:

·  
Net interest revenue totaled $170.6 million compared to $163.7 million for the fourth quarter of 2010.  Net interest margin increased to 3.46% for the first quarter of 2011 compared to 3.19% for the fourth quarter of 2010.  The yield on the securities portfolio improved as actual and expected prepayment speeds slowed in response to an increase in interest rates which began in the previous quarter.

·  
Fees and commissions revenue totaled $123.3 million compared to $136.0 million for the fourth quarter of 2010.  Mortgage banking revenue decreased $7.8 million due to reduced origination volumes.
 
·  
Changes in the fair value of mortgage servicing rights, net of economic hedge, decreased pre-tax net income for the first quarter of 2011 by $2.8 million and increased pre-tax net income for the fourth quarter of 2010 by $6.6 million.

·  
Operating expenses, excluding changes in the fair value of mortgage servicing rights, totaled $181.6 million, down $21.9 million compared to the prior quarter.  Personnel expenses decreased $6.8 million due primarily to lower incentive compensation expense.  Non-personnel expenses decreased $15.1 million due primarily to lower mortgage banking expenses and other operating expense.

·  
Provision for credit losses totaled $6.3 million for the first quarter of 2011 compared to $7.0 million for the fourth quarter of 2010.  Net loans charged off decreased to $10.3 million from $14.2 million for the previous quarter.
 
·  
Combined allowance for credit losses totaled $303 million or 2.86% of outstanding loans at March 31, 2011 and $307 million or 2.89% of outstanding loans at December 31, 2010.  Nonperforming assets totaled $379 million or 3.54% of outstanding loans and repossessed assets at March 31, 2011 and $394 million or 3.66% of outstanding loans and repossessed assets at December 31, 2010.

·  
Outstanding loan balances were $10.6 billion at March 31, 2011, down $53 million since December 31, 2010.  Commercial loan balances increased $114 million during the first quarter of 2011 primarily in the manufacturing, energy and healthcare sectors.  Lower outstanding construction and land development loan balances decreased commercial real estate loans by $54 million.  Residential mortgage loans decreased $51 million and consumer loans decreased $62 million.

·  
Total period end deposits increased $694 million during the first quarter of 2011 to $17.9 billion.  All categories of deposits increased during the first quarter.  Deposit growth was largely centered on commercial customers across most of our markets.

·  
Tangible common equity ratio increased to 9.54% at March 31, 2011 from 9.21% at December 31, 2010, due to retained earnings growth.  The tangible common equity ratio is a non-GAAP measure of capital strength used by the Company and investors based on shareholders’ equity minus intangible assets and equity that does not benefit common shareholders, such as equity provided by the U.S. Treasury’s Asset Relief Program (“TARP”).  BOK Financial chose not to participate in the TARP Capital Purchase Program.  The Company and each of its subsidiary banks exceeded the regulatory definition of well capitalized.  The Company’s Tier 1 capital ratios, as defined by banking regulations, were 12.97% at March 31, 2011 and 12.69% at December 31, 2010.

·  
The Company paid a cash dividend of $17.1 million or $0.25 per common share during the first quarter of 2011.  The Company will increase the quarterly cash dividend to $0.275 per common share payable on or about May 27, 2011 to shareholders of record as of May 13, 2011.

Net Interest Revenue

Net interest revenue increased $7.0 million over the fourth quarter of 2010.  Net interest margin increased 27 basis points over the prior quarter to 3.46%.  Average earning assets decreased $491 million.

The increase in net interest revenue and net interest margin resulted from improved yield on the securities portfolio.  Extremely low intermediate and long-term interest rates experienced in the early fourth quarter of 2010 increased actual and projected prepayment speeds which reduced security portfolio yields through accelerated premium amortization and lower reinvestment rates.  As intermediate and long-term interest rates increased near the end of the fourth quarter and stabilized throughout the first quarter of 2011, premium amortization slowed and reinvestment rates improved.  The securities portfolio yield increased 52 basis points to 3.25%.  The loan portfolio yield and the cost of interest-bearing liabilities were largely unchanged compared to the previous quarter.

The average balance of the securities portfolio decreased $319 million including a $239 million decrease in available for sale securities and a $78 million decrease in mortgage trading securities held as an economic hedge of mortgage servicing rights.  Average outstanding loans decreased $13 million.  The growth in average commercial loan balances was offset by decreases in commercial real estate, residential mortgage and consumer loans.

Average deposits increased $428 million over the previous quarter.  Interest-bearing transaction account balances increased $307 million, demand deposit account balances increased $94 million and time deposit account balances increased $15 million.  Average balances of borrowed funds decreased $1.0 billion from the previous quarter.

Fees and Commissions Revenue

Fees and commissions revenue decreased $12.7 million to $123.3 million for the first quarter of 2011 due primarily to a $7.8 million decrease in mortgage banking revenue and a $3.2 million decrease in brokerage and trading revenue.

The decrease in mortgage banking revenue was due to lower mortgage loan volume.  Fundings of residential mortgage loans for sale totaled $452 million in the first quarter of 2011 and $822 million in the fourth quarter of 2010.  Brokerage and trading revenue decreased due primarily to a $2.6 million credit loss on certain mortgage banking customer risk management derivative contracts and lower loan syndication fees.  The derivatives credit loss was largely offset by a decrease in related incentive compensation expense.

Operating Expenses

Total operating expenses were $178.4 million for both the first quarter of 2011 and the fourth quarter of 2010.  Excluding changes in the fair value of mortgage servicing rights, operating expenses totaled $181.6 million, down $21.9 million from the fourth quarter of 2010.

Personnel costs decreased $6.8 million from the prior quarter, primarily due to reduced incentive compensation.  Cash-based incentive compensation decreased $6.9 million, including a decrease in incentive compensation related to derivative losses.  Deferred compensation expense, which is directly linked to changes in the market value of Company stock and performance of other investments, decreased $2.2 million.

Non-personnel expenses decreased $15.1 million from the fourth quarter of 2010.  Mortgage banking expenses decreased $5.5 million primarily due to lower provisions for losses on loans sold with recourse and foreclosure costs on loans serviced for others.  Other expenses decreased $5.3 million due largely to a reduction in depreciation expense on equipment used in our leasing business.  All other non-personnel expenses decreased by $4.3 million primarily due to decreases in professional fees, data processing costs and net losses and expenses on repossessed assets.

Credit Quality

Nonperforming assets decreased $15 million during the first quarter to $379 million or 3.54% of outstanding loans and repossessed assets at March 31, 2011.  Nonaccruing loans decreased $4.9 million and repossessed assets decreased $10 million.

Nonaccruing loans totaled $226 million or 2.13% of outstanding loans at March 31, 2011 compared to $231 million or 2.17% of outstanding loans at December 31, 2010.  During the first quarter of 2011, $55 million of new nonaccruing loans were identified offset by $24 million in payments received, $15 million in charge-offs and $21 million in foreclosures and repossessions .

Nonaccruing commercial loans totaled $57 million or 0.95% of total commercial loans at March 31, 2011.  Nonaccruing loans in the wholesale/retail sector totaled $30 million or 3.09% of total wholesale/retail sector loans and nonaccruing services sector loans totaled $16 million or 0.99% of total services sector loans.  Nonaccruing commercial loans increased $19 million over December 31, 2010 primarily due to a $22 million increase in nonaccruing wholesale/retail sector loans largely due to a single customer relationship.  Newly identified nonaccruing commercial loans totaled $31 million, offset by $8.4 million in payments, $2.4 million in charge-offs and $1.1 million in foreclosures.

Nonaccruing commercial real estate loans totaled $126 million or 5.65% of outstanding commercial real estate loans at March 31, 2011, down $25 million from December 31, 2010.  Nonaccruing commercial real estate loans attributed to various markets included $44 million or 21% of total commercial real estate loans in Arizona and $34 million or 20% of total commercial real estate loans in Colorado.  Nonaccruing commercial real estate loans continued to be largely concentrated in land development and residential construction loans with $91 million or 23% of all land development and construction loans nonaccruing at March 31, 2011.  Newly identified nonaccruing commercial real estate loans totaled $6.9 million, offset by $12 million of cash payments received, $6.9 million of charge-offs and $13 million of foreclosures.

Nonaccruing residential mortgage loans totaled $38 million or 2.13% of outstanding residential mortgage loans at March 31, 2011, up $398 thousand over December 31, 2010.  Residential mortgage loans past due 90 days or more and still accruing interest totaled $1.2 million, down from $2.0 million at December 31, 2010.  Residential mortgage loans past due 30 to 89 days totaled $14 million, down $9.3 million from December 31, 2010.

The combined allowance for credit losses totaled $303 million or 2.86% of outstanding loans and 134% of nonaccruing loans at March 31, 2011.  The allowance for loan losses was $290 million and the allowance for off-balance sheet credit losses was $13 million.  Approximately $66 million of impaired loans, which consist primarily of nonaccruing commercial and commercial real estate loans, have been charged-down to the amount management expects to recover and accordingly have no allowance for loan loss attributed to them.  The remaining $132 million of impaired loans have $9.8 million of the allowance for loan losses attributed to them.

Real estate and other repossessed assets totaled $131 million at March 31, 2011 primarily consisting of $56 million of 1-4 family residential properties and residential land development properties, $46 million of developed commercial real estate properties and $25 million of undeveloped land.  The distribution of real estate owned and other repossessed assets among various markets included $42 million attributed to Arizona, $32 million attributed to Texas, $16 million attributed to Colorado and $12 million attributed to Oklahoma.  Real estate and other repossessed assets decreased by $10 million during the first quarter due to additions of $21 million partially offset by $15 million in sales and $4.3 million in write-downs and losses.  In addition, the $12 million cost basis of shares of the entity in which we hold an equity interest were transferred to the available for sale securities portfolio as the shares are listed for trading on a national stock exchange.

The Company also has off-balance sheet obligations related to certain community development residential mortgage loans sold to U.S. government agencies with recourse.  These mortgage loans were underwritten to standards approved by the agencies, including full documentation and originated under programs available only for owner-occupied properties.  The outstanding principal balance of these loans totaled $284 million at March 31, 2011, down from $289 million at December 31, 2010.  The loans are primarily to borrowers in our primary market areas, including $200 million in Oklahoma, $30 million in Arkansas, $17 million in New Mexico, $15 million in Kansas/Missouri and $13 million in Texas.  At March 31, 2011, approximately 6% of these loans are nonperforming and 5% were past due 30 to 89 days.  A separate allowance for credit risk of $16 million is available for losses on these loans.

Securities and Derivatives

The fair value of available for sale securities totaled $9.7 billion at March 31, 2011, a $397 million increase over December 31, 2010.  The available for sale portfolio consisted primarily of residential mortgage-backed securities, including $8.9 billion fully backed by U.S. government agencies and $573 million privately issued by publicly owned financial institutions.  Privately issued mortgage-backed securities included $391 million backed by Jumbo-A residential mortgage loans and $182 million backed by Alt-A residential mortgage loans.

Net unrealized gains on available for sale securities totaled $201 million at March 31, 2011 and $200 million at December 31, 2010.  Net unrealized gains on residential mortgage-backed securities issued by U.S. government agencies decreased $26 million to $227 million at March 31, 2011.  Net unrealized losses on privately-issued residential mortgage-backed securities decreased $14 million to $57 million at March 31, 2011.  Net unrealized gains on equity securities and mutual funds increased $13 million to $27 million at March 31, 2011.

The amortized cost of privately issued residential mortgage-backed securities totaled $630 million at March 31, 2011, down $85 million since December 31, 2010 due primarily to cash received.  Approximately $498 million of the privately issued residential mortgage-backed securities were rated below investment grade by at least one nationally-recognized rating agency.   Cash received during the first quarter reduced the amortized cost of privately issued residential mortgage-backed securities rated below investment grade by $25 million.  Amortized cost of these securities was also reduced by $4.6 million for credit-related impairment charges during the first quarter.  Aggregate unrealized losses on privately-issued residential mortgage-backed securities rated below investment grade totaled $51 million at March 31, 2011.  Aggregate unrealized losses on these same below investment grade securities were $62 million at December 31, 2010.

The Company recognized $4.9 million of net gains on sale of $793 million of available for sale securities in the first quarter of 2011 and $953 thousand of net gains on the sale of $536 million of available for sale securities in the fourth quarter of 2010.  Securities were sold either to mitigate extension exposure from rising interest rates or because they had reached their expected maximum potential total return.

Certain residential mortgage-backed securities and derivative contracts are held by the Company as an economic hedge against the changes in the fair value of the mortgage servicing rights that fluctuates due to changes in prepayment speeds and other assumptions.  Changes in the fair value of mortgage servicing rights, net of economic hedge reduced pre-tax net income by $2.8 million in the first quarter of 2011 compared to an increase in pre-tax net income of $6.6 million in the fourth quarter of 2010.

   
Three Months Ended
 
   
March 31, 2011
   
Dec. 31, 2010
   
March 31, 2010
 
                   
Loss on mortgage hedge derivative contracts
  $ (2,419 )   $ (7,392 )   $ (659 )
Gain (loss) on mortgage trading securities
    (3,518 )     (11,117 )     448  
Total loss on financial instruments held as an
    economic hedge of mortgage servicing rights
    (5,937 )     (18,509 )     (211 )
Gain on change in fair value of mortgage servicing rights
    3,129       25,111       2,100 1
Gain (loss) on changes in fair value of mortgage
   servicing rights, net of economic hedges
  $ (2,808 )   $ 6,602     $ 1,889  
                         
Net interest revenue on mortgage trading securities
  $ 3,058     $ 4,232     $ 4,237  
1
Excludes $11.8 million day-one gain on the purchase of mortgage servicing rights

Loans, Deposits and Capital

Loans

Outstanding loans at March 31, 2011 were $10.6 billion, down $53 million from December 31, 2010.  Commercial loan balances were up $114 million primarily in the manufacturing, energy and healthcare sectors.  Construction and land development commercial real estate loans decreased $54 million, residential mortgage loans decreased $51 million and consumer loans decreased $62 million during the first quarter of 2011.

Outstanding commercial loans grew to $6.0 billion at March 31, 2011.  Manufacturing sector loans increased $55 million, energy sector loans increased $48 million and healthcare sector loans increased $31 million.  Wholesale/retail sector loans decreased by $26 million from December 31, 2010.  Unfunded energy loan commitments decreased $118 million to $1.9 billion.  Unfunded commercial loan commitments, excluding the energy sector of the portfolio, remained at $2.5 billion at March 31, 2011.

Commercial real estate loans totaled $2.2 billion at March 31, 2011, down $54 million from December 31, 2010.  Residential construction and land development loans continued to decrease, down $54 million during the first quarter.  The decrease in commercial real estate loans was largely concentrated in the Oklahoma and Colorado markets, partially offset by an increase commercial real estate loans in the Arizona and Texas markets.  Unfunded commercial real estate loan commitments increased $44 million during the first quarter to $281 million.

Permanent residential mortgage loans decreased $58 million.  The residential mortgage loan portfolio generally represents variable rate jumbo mortgage loans that exceed the maximum principal balances set by government sponsored agency standards, but otherwise generally conform to those standards.  Low interest rates in the first quarter continued a trend in increased demand to refinance these mortgage loans into long-term fixed rate loans.  Generally we do not offer this type of loan because of excessive future interest rate risk.  Additionally, home equity loans increased $7.2 million.

Consumer loans decreased $62 million compared to the prior quarter primarily due to $41 million in continued runoff of indirect automobile loans related to the previously announced decision to curtail that business in favor of a customer-focused direct approach to consumer lending.  The outstanding balance of other consumer loans decreased $21 million.

Deposits

Total deposits increased $694 million during the first quarter to $17.9 billion at March 31, 2011.  Interest-bearing transaction account balances increased $274 million, demand deposit balances increased $236 million and time deposits increased $168 million.  Among the lines of business, commercial deposits increased $1.3 billion, partially offset by seasonal decreases in consumer deposits of $547 million and wealth management deposits of $115 million.  Growth in commercial deposit balances was largely driven by small business and commercial and industrial customers.

Capital

The Company and its subsidiary bank exceeded the regulatory definition of well capitalized at March 31, 2011.  The Company’s Tier 1 and total capital ratios were 12.97% and 16.48%, respectively, at March 31, 2011.  Tier 1 and total capital ratios were 12.69% and 16.20%, respectively, at December 31, 2010.  In addition the Company’s tangible common equity ratio, a non-GAAP measure, was 9.54% at March 31, 2011 and 9.21% at December 31, 2010.  Unrealized securities gains added 45 basis points to the tangible common equity ratio at March 31, 2011.

Effective January 1, 2011, the Company combined each of its subsidiary banks into a newly-named entity, BOKF, NA.  Divisions of BOKF, NA will continue to operate in each market under established bank trade names.  Regulatory capital ratios for BOKF, NA will be more closely aligned with consolidated regulatory capital ratios for BOK Financial Corporation.

About BOK Financial Corporation

BOK Financial is a regional financial services company that provides commercial and consumer banking, investment and trust services, mortgage origination and servicing, and an electronic funds transfer network.  Holdings include BOKF, NA, BOSC, Inc., Cavanal Hill Investment Management, Inc., and Southwest Trust Company, N.A.  Operating divisions of BOKF, NA include Bank of Albuquerque, Bank of Arizona, Bank of Arkansas, Bank of Oklahoma, Bank of Texas, Colorado State Bank and Trust, Bank of Kansas City and the TransFund electronic funds network.  Shares of BOK Financial are traded on the NASDAQ under the symbol BOKF. For more information, visit www.bokf.com .

The Company will continue to evaluate critical assumptions and estimates, such as the adequacy of the allowance for credit losses and asset impairment as of March 31, 2011 through the date its financial statements are filed with the Securities and Exchange Commission and will adjust amounts reported if necessary.

This news release contains forward-looking statements that are based on management’s beliefs, assumptions, current expectations, estimates and projections about BOK Financial, the financial services industry and the economy generally.  Words such as “anticipates,” “believes,” “estimates,” “expects,”  “forecasts,” “plans,” “projects,” 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 involve judgments as to future events and are inherently forward-looking statements.  Assessments that BOK Financial’s acquisitions and other growth endeavors will be profitable are necessary statements of belief as to the outcome of future events based in part on information provided by others which BOK Financial has not independently verified.  These statements are not guarantees of future performance and involve certain risks, uncertainties, and assumptions which are difficult to predict with regard to timing, extent, likelihood and degree of occurrence.  Therefore, actual results and outcomes may materially differ from what is expected, implied or forecasted in such forward-looking statements.  Internal and external factors that might cause such a difference include, but are not limited to (1) the ability to fully realize expected cost savings from mergers within the expected time frames, (2) the ability of other companies on which BOK Financial relies to provide goods and services in a timely and accurate manner, (3) changes in interest rates and interest rate relationships, (4) demand for products and services, (5) the degree of competition by traditional and nontraditional competitors, (6) changes in banking regulations, tax laws, prices, levies and assessments, (7) the impact of technological advances and (8) trends in consumer behavior as well as their ability to repay loans.  BOK Financial and its affiliates undertake no obligation to update, amend or clarify forward-looking statements, whether as a result of new information, future events, or otherwise.





 
 
 

Exhibit 99 (b)


 BALANCE SHEETS
           
 BOK FINANCIAL CORPORATION
           
 (In thousands)
           
      Period Ended    
 
 March 31,
   
December 31,
 March 31,
 
2011
   
2010
 
2010
 
(Unaudited)
       
(Unaudited)
 ASSETS
           
 Cash and due from banks
 $         805,928
  $
1,247,946
 
 $        902,575
 Funds sold and resell agreements
                2,462
   
                21,458
 
             29,410
 Trading securities
              80,719
   
                55,467
 
           115,641
 Securities:
           
   Available for sale
         9,707,825
   
           9,311,252
 
        8,904,395
   Investment
            343,401
   
              339,553
 
           309,910
   Mortgage trading securities
            326,624
   
              428,021
 
           427,196
 Total securities
       10,377,850
   
         10,078,826
 
        9,641,501
 Residential mortgage loans held for sale
            127,119
   
              263,413
 
           178,362
 Loans:
           
   Commercial
         6,048,257
   
           5,933,996
 
        6,014,739
   Commercial real estate
         2,222,982
   
           2,277,350
 
        2,443,848
   Residential mortgage
         1,777,321
   
           1,828,248
 
        1,797,711
   Consumer
            541,275
   
              603,442
 
           714,926
   Total loans
       10,589,835
   
         10,643,036
 
      10,971,224
 Less allowance for loan losses
           (289,549)
   
            (292,971)
 
          (299,717)
   Loans, net of allowance
       10,300,286
   
         10,350,065
 
      10,671,507
 Premises and equipment, net
            265,532
   
              265,465
 
           279,152
 Accrued revenue receivable
            113,060
   
              148,940
 
           107,300
 Goodwill
            335,601
   
              335,601
 
           335,601
 Intangible assets, net
              12,906
   
                13,803
 
             17,315
 Mortgage servicing rights, net
            120,345
   
              115,723
 
           119,066
 Real estate and other repossessed assets
            131,420
   
              141,394
 
           121,933
 Bankers' acceptances
                1,884
   
                  1,222
 
               2,945
 Derivative contracts
            245,124
   
              270,445
 
           325,364
 Cash surrender value of bank-owned life insurance
            258,322
   
              255,442
 
           248,927
 Receivable on unsettled securities sales
            242,828
   
              135,059
 
                     -
 Other assets
            279,637
   
              241,334
 
           405,377
 TOTAL ASSETS
 $    23,701,023
  $
23,941,603
 
 $   23,501,976
             
             
             
 LIABILITIES AND EQUITY
           
 Deposits:
           
   Demand
 $      4,457,187
  $
4,220,764
 
 $     3,599,981
   Interest-bearing transaction
9,528,864
   
9,255,362
 
8,093,725
   Savings
            209,264
   
              193,767
 
           179,554
   Time
         3,677,611
   
           3,509,168
 
        3,654,256
 Total deposits
       17,872,926
   
         17,179,061
 
      15,527,516
 Funds purchased
            466,749
   
           1,025,018
 
        1,465,983
 Repurchase agreements
         1,006,051
   
           1,258,762
 
        1,172,280
 Other borrowings
              36,864
   
              833,578
 
        1,909,934
 Subordinated debentures
            398,744
   
              398,701
 
           398,578
 Accrued interest, taxes, and expense
            135,486
   
              134,107
 
           117,179
 Bankers' acceptances
                1,884
   
                  1,222
 
               2,945
 Due on unsettled securities purchases
            843,904
   
              160,425
 
           103,186
 Derivative contracts
            156,038
   
              215,420
 
           311,685
 Other liabilities
            184,689
   
              191,431
 
           159,973
 TOTAL LIABILITIES
       21,103,335
   
         21,397,725
 
      21,169,259
 Shareholders' equity:
           
   Capital, surplus and retained earnings
         2,467,820
   
           2,413,887
 
        2,264,786
   Accumulated other comprehensive income
            108,313
   
              107,839
 
             47,657
 TOTAL SHAREHOLDERS' EQUITY
         2,576,133
   
           2,521,726
 
        2,312,443
   Non-controlling interest
              21,555
   
                22,152
 
             20,274
 TOTAL EQUITY
         2,597,688
   
           2,543,878
 
        2,332,717
 TOTAL LIABILITIES AND EQUITY
 $    23,701,023
  $
23,941,603
 
 $   23,501,976

 
 
 

 AVERAGE BALANCE SHEETS - UNAUDITED
                     
 BOK FINANCIAL CORPORATION
                     
 (In thousands)
                     
            Quarter Ended          
 
 March 31,
   
December 31,
September 30,
 June 30,
 
 March 31,
 
2011
   
2010
 
2010
   
2010
 
2010
                       
ASSETS
                     
Funds sold and resell agreements
 $           20,680
  $
21,128
 
 $          18,882
  $
22,776
 
 $             32,363
Trading securities
              60,768
   
                74,084
 
             69,315
   
                58,722
 
                70,979
Securities:
                     
  Available for sale
         9,423,201
   
           9,662,055
 
        9,270,710
   
           8,892,175
 
           8,884,678
  Investment
            339,246
   
              341,941
 
           336,455
   
              335,117
 
              256,003
  Mortgage trading securities
            397,093
   
              474,731
 
           602,049
   
              435,693
 
              366,845
Total securities
       10,159,540
   
         10,478,727
 
      10,209,214
   
           9,662,985
 
           9,507,526
Residential mortgage loans held for sale
            125,494
   
              282,734
 
           242,559
   
              183,489
 
              137,404
Loans:
                     
  Commercial
         6,084,765
   
           5,946,960
 
        6,003,159
   
           6,060,642
 
           6,132,889
  Commercial real estate
         2,236,400
   
           2,282,779
 
        2,335,226
   
           2,359,958
 
           2,492,535
  Residential mortgage
         1,788,049
   
           1,832,624
 
        1,893,162
   
           1,848,692
 
           1,833,602
  Consumer
            544,542
   
              604,830
 
           629,968
   
              702,174
 
              728,294
Total loans
       10,653,756
   
         10,667,193
 
      10,861,515
   
         10,971,466
 
         11,187,320
Less allowance for loan losses
           (295,014)
   
            (307,223)
 
          (308,139)
   
            (312,595)
 
            (309,194)
Total loans, net
       10,358,742
   
         10,359,970
 
      10,553,376
   
         10,658,871
 
         10,878,126
Total earning assets
       20,725,224
   
         21,216,643
 
      21,093,346
   
         20,586,843
 
         20,626,398
Cash and due from banks
         1,095,910
   
           1,092,979
 
           989,782
   
              903,555
 
           1,089,971
Cash surrender value of bank-owned life insurance
            256,456
   
              255,530
 
           252,912
   
              249,914
 
              247,415
Derivative contracts
            211,895
   
              249,861
 
           267,952
   
              288,853
 
              300,865
Other assets
         1,450,289
   
           1,467,938
 
        1,588,298
   
           1,415,642
 
           1,448,098
TOTAL ASSETS
 $    23,739,774
  $
24,282,951
 
 $   24,192,290
  $
23,444,807
 
 $      23,712,747
                       
LIABILITIES AND EQUITY
                     
Deposits:
                     
  Demand
 $      4,265,657
  $
4,171,595
 
 $     3,831,486
  $
3,660,910
 
 $        3,485,504
  Interest-bearing transaction
         9,632,595
   
           9,325,573
 
        8,699,495
   
           8,287,296
 
           7,963,752
  Savings
            203,638
   
              191,235
 
           189,512
   
              184,376
 
              170,990
  Time
         3,616,991
   
           3,602,150
 
        3,774,136
   
           3,701,167
 
           3,772,295
Total deposits
       17,718,881
   
         17,290,553
 
      16,494,629
   
         15,833,749
 
         15,392,541
Funds purchased
            820,969
   
              775,620
 
        1,096,873
   
           1,359,937
 
           1,519,689
Repurchase agreements
         1,062,359
   
           1,201,760
 
        1,130,215
   
           1,131,147
 
           1,055,597
Other borrowings
            144,987
   
              829,756
 
        1,465,516
   
           1,619,745
 
           2,249,470
Subordinated debentures
            398,723
   
              398,680
 
           398,638
   
              398,598
 
              398,559
Derivative contracts
            144,492
   
              197,330
 
           228,297
   
              243,089
 
              276,696
Other liabilities
            884,566
   
           1,053,695
 
           895,703
   
              479,813
 
              521,567
TOTAL LIABILITIES
       21,174,977
   
         21,747,394
 
      21,709,871
   
         21,066,078
 
         21,414,119
Total equity
         2,564,797
   
           2,535,557
 
        2,482,419
   
           2,378,729
 
           2,298,628
TOTAL LIABILITIES AND EQUITY
 $    23,739,774
  $
24,282,951
 
 $   24,192,290
  $
23,444,807
 
 $      23,712,747

 
 
 


STATEMENTS OF EARNINGS - UNAUDITED
     
BOK FINANCIAL CORPORATION
       
(In thousands, except per share data)
       
     
Quarter Ended
     
March 31,
     
2011
 
2010
           
           
 Interest revenue
  $
202,089
 
 $           219,370
 Interest expense
   
              31,450
 
                36,796
 Net interest revenue
   
            170,639
 
              182,574
Provision for credit losses
 
                6,250
 
                42,100
         
Net interest revenue after provision for credit losses
 
            164,389
 
              140,474
           
Other operating revenue
         
  Brokerage and trading revenue
 
              25,376
 
                21,035
  Transaction card revenue
 
              28,445
 
                25,687
  Trust fees and commissions
 
              18,422
 
                16,320
  Deposit service charges and fees
 
              22,480
 
                26,792
  Mortgage banking revenue
 
              17,356
 
                14,871
  Bank-owned life insurance
 
                2,863
 
                  2,972
  Other revenue
   
                8,332
 
                  7,638
Total fees and commissions
 
            123,274
 
              115,315
  Loss on other assets, net
 
                    (68)
 
                (1,390)
  Loss on derivatives, net
 
               (2,413)
 
                   (341)
  Gain on securities, net
   
                1,384
 
                  4,524
  Total other-than-temporary impairment losses
                      -
 
                (9,708)
  Portion of loss recognized in (reclassified from)
     
      other comprehensive income
 
               (4,599)
 
                  5,483
  Net impairment losses recognized in                     
               (4,599)
 
                (4,225)
Total other operating revenue
 
            117,578
 
              113,883
           
Other operating expense
       
   Personnel
   
              99,994
 
                96,824
   Business promotion
   
                4,624
 
                  3,978
   Professional fees and services
 
                7,458
 
                  6,401
   Net occupancy and equipment
 
              15,604
 
                15,511
   Insurance
   
                6,186
 
                  6,533
   Data processing and communications
 
              22,503
 
                20,309
   Printing, postage and supplies
 
                3,082
 
                  3,322
   Net losses and operating expenses
       
     of repossessed assets
   
                6,015
 
                  7,220
   Amortization of intangible assets
 
                   896
 
                  1,324
   Mortgage banking costs
 
                6,471
 
                  9,267
   Change in fair value of mortgage servicing rights
               (3,129)
 
              (13,932)
   Other expense
   
                8,745
 
                  6,975
Total other operating expense
 
            178,449
 
              163,732
           
Net income before taxes
 
            103,518
 
                90,625
Federal and state income taxes
 
              38,752
 
                30,283
           
Net income
   
              64,766
 
                60,342
Net income (loss) attributable to non-controlling interest
                      (8)
 
                     209
           
Net income attributable to BOK Financial Corporation
 $           64,774
 
 $             60,133
           
Average shares outstanding:
       
    Basic
   
       67,901,722
 
         67,592,315
    Diluted
   
       68,176,527
 
         67,790,049
           
Net income per share:
       
   Basic
  $
0.95
 
 $                 0.88
   Diluted
  $
0.94
 
 $                 0.88

 
 
 

 FINANCIAL HIGHLIGHTS - UNAUDITED
                     
 BOK FINANCIAL CORPORATION
                     
 (In thousands, except ratio and share data)
                     
            Quarter Ended          
 
 March 31,
   
December 31,
September 30,
 June 30,
 
 March 31,
 
2011
   
2010
 
2010
   
2010
 
2010
                       
 Capital:
                     
   Period-end shareholders' equity
 $      2,576,133
  $
2,521,726
 
 $     2,503,650
  $
2,428,738
 
 $        2,312,443
   Risk weighted assets
 $    16,416,387
  $
16,368,976
 
 $   16,484,702
  $
16,611,662
 
 $      16,787,566
   Risk-based capital ratios:
                     
   Tier 1
12.97%
   
12.69%
 
12.30%
   
11.90%
 
11.45%
   Total capital
16.48%
   
16.20%
 
15.79%
   
15.38%
 
15.09%
   Leverage ratio
9.13%
   
8.74%
 
8.61%
   
8.57%
 
8.25%
   Tangible common equity ratio (A)
9.54%
   
9.21%
 
8.96%
   
8.88%
 
8.46%
   Tier 1 common equity ratio (B)
12.84%
   
12.55%
 
12.17%
   
11.77%
 
11.33%
                       
 Common stock:
                     
   Book value per share
 $             37.64
  $
36.97
 
 $            36.77
  $
35.67
 
 $               33.99
                       
   Market value per share:
                     
        High
 $             56.32
  $
54.86
 
 $            50.58
  $
55.60
 
 $               53.11
        Low
 $             50.37
  $
44.83
 
 $            42.89
  $
47.45
 
 $               45.43
                       
   Cash dividends paid
 $           17,102
  $
17,025
 
 $          16,856
  $
16,834
 
 $             16,304
   Dividend payout ratio
26.40%
   
28.94%
 
26.23%
   
26.50%
 
27.11%
   Shares outstanding, net
       68,438,422
   
         68,207,689
 
      68,091,126
   
         68,080,797
 
         68,042,918
   Stock buy-back program:
                     
       Shares repurchased
                      -
   
                        -
 
                     -
   
                       -
 
                        -
       Amount
 $                   -
  $
-
 
 $                  -
    $
-
 
 $                     -
       Average price per share
 $                   -
  $
-
 
$ -
$                                   -
 $                     -
                       
 Performance ratios (quarter annualized):
                     
  Return on average assets
1.11%
   
0.96%
 
1.05%
   
1.09%
 
1.03%
  Return on average equity
10.24%
   
9.21%
 
10.27%
   
10.71%
 
10.61%
  Net interest margin
3.46%
   
3.19%
 
3.50%
   
3.63%
 
3.68%
  Efficiency ratio
61.15%
   
65.60%
 
59.07%
   
59.56%
 
59.11%
                       
 Other data:
                     
     Gain (loss) on economic hedge of mortgage servicing rights
 $          (5,937)
  $
(18,509)
 
 $            8,045
  $
22,431
 
 $               (211)
     Trust assets
 $    32,013,487
  $
32,751,501
 
 $   31,460,021
  $
29,825,608
 
 $      30,739,254
     Mortgage servicing portfolio
 $    11,202,626
  $
11,263,130
 
 $   11,190,802
  $
11,057,385
 
 $      10,895,182
     Mortgage loans funded for sale
 $         451,821
  $
821,921
 
 $        756,022
  $
540,835
 
 $           383,293
     Mortgage loan refinances to total fundings
49%
   
72%
 
64%
   
34%
 
55%
     Tax equivalent adjustment
 $             2,321
  $
2,263
 
 $            2,152
  $
2,327
 
 $               2,416
     Net unrealized gain on available for sale securities
 $         201,340
  $
200,203
 
 $        255,421
  $
215,439
 
 $           107,754
                       
 (A) Tangible common equity ratio is a non-GAAP measure.
                   
        Reconciliation to a GAAP financial measure follows:
                   
         Total shareholders' equity
 $      2,576,133
  $
2,521,726
 
 $     2,503,650
  $
2,428,738
 
 $        2,312,443
         Less:  Goodwill and intangible assets, net
           (348,507)
   
            (349,404)
 
          (350,769)
   
            (351,592)
 
            (352,916)
         Tangible common equity
 $      2,227,626
  $
2,172,322
 
 $     2,152,881
  $
2,077,146
 
 $        1,959,527
                       
         Total assets
 $    23,701,023
  $
23,941,603
 
 $   24,385,952
  $
23,736,728
 
 $      23,501,976
         Less:  Goodwill and intangible assets, net
           (348,507)
   
            (349,404)
 
          (350,769)
   
            (351,592)
 
            (352,916)
 
 $    23,352,516
  $
23,592,199
 
 $   24,035,183
  $
23,385,136
 
 $      23,149,060
                       
         Tangible common equity ratio
9.54%
   
9.21%
 
8.96%
   
8.88%
 
8.46%
                       
 (B) Tier 1 common equity ratio is a non-GAAP measure.
                   
        Reconciliation to a GAAP financial measure follows:
                   
         Tier 1 capital
 $      2,129,998
  $
2,076,525
 
 $     2,027,226
  $
1,976,588
 
 $        1,922,783
         Less:  Non-controlling interest
             (21,555)
   
              (22,152)
 
            (20,338)
   
              (21,289)
 
              (20,274)
         Tier 1 common equity
 $      2,108,443
  $
2,054,373
 
 $     2,006,888
  $
1,955,299
 
 $        1,902,509
                       
         Risk weighted assets
 $    16,416,387
  $
16,368,976
 
 $   16,484,702
  $
16,611,662
 
 $      16,787,566
                       
         Tier 1 common equity ratio
12.84%
   
12.55%
 
12.17%
   
11.77%
 
11.33%

 
 
 

 QUARTERLY EARNINGS TRENDS - UNAUDITED
                   
 BOK FINANCIAL CORPORATION
                     
 (In thousands, except ratio and per share data)
                     
          Quarter Ended          
 
 March 31,
   
December 31,
September 30,
 June 30,
 
 March 31,
 
2011
   
2010
 
2010
   
2010
 
2010
                       
 Interest revenue
 $         202,089
  $
197,148
 
 $        216,967
  $
217,597
 
 $           219,370
 Interest expense
              31,450
   
                33,498
 
             36,252
   
                35,484
 
                36,796
 Net interest revenue
            170,639
   
              163,650
 
           180,715
   
              182,113
 
              182,574
 Provision for credit losses
                6,250
   
                  6,999
 
             20,000
   
                36,040
 
                42,100
 Net interest revenue after
                     
   provision for credit losses
            164,389
   
              156,651
 
           160,715
   
              146,073
 
              140,474
                       
 Other operating revenue
                     
   Brokerage and trading revenue
              25,376
   
                28,610
 
             27,072
   
                24,754
 
                21,035
   Transaction card revenue
              28,445
   
                29,500
 
             28,852
   
                28,263
 
                25,687
   Trust fees and commissions
              18,422
   
                18,145
 
             16,774
   
                17,737
 
                16,320
   Deposit service charges and fees
              22,480
   
                23,732
 
             24,290
   
                28,797
 
                26,792
   Mortgage banking revenue
              17,356
   
                25,158
 
             29,236
   
                18,335
 
                14,871
   Bank-owned life insurance
                2,863
   
                  3,182
 
               3,004
   
                  2,908
 
                  2,972
   Other revenue
                8,332
   
                  7,648
 
               7,708
   
                  7,374
 
                  7,638
  Total fees and commissions
            123,274
   
              135,975
 
           136,936
   
              128,168
 
              115,315
   Gain (loss) on other assets, net
                    (68)
   
                       15
 
              (1,331)
   
                  1,545
 
                (1,390)
   Gain (loss) on derivatives, net
               (2,413)
   
                (7,286)
 
               4,626
   
                  7,272
 
                   (341)
   Gain (loss) on securities, net
                1,384
   
              (10,164)
 
             11,753
   
                23,100
 
                  4,524
   Total other-than-temporary impairment losses
                      -
   
                (4,768)
 
              (4,525)
   
              (10,959)
 
                (9,708)
   Portion of loss recognized in (reclassified from)
                     
     other comprehensive income
               (4,599)
   
                (1,859)
 
              (9,786)
   
                  8,313
 
                  5,483
   Net impairment losses recognized in earnings
               (4,599)
   
                (6,627)
 
            (14,311)
   
                (2,646)
 
                (4,225)
   Total other operating revenue
            117,578
   
              111,913
 
           137,673
   
              157,439
 
              113,883
                       
 Other operating expense
                     
   Personnel
              99,994
   
              106,770
 
           101,216
   
                97,054
 
                96,824
   Business promotion
                4,624
   
                  4,377
 
               4,426
   
                  4,945
 
                  3,978
   Professional fees and services
                7,458
   
                  9,527
 
               7,621
   
                  6,668
 
                  6,401
   Net occupancy and equipment
              15,604
   
                16,331
 
             16,436
   
                15,691
 
                15,511
   Insurance
                6,186
   
                  6,139
 
               6,052
   
                  5,596
 
                  6,533
   Data processing and communications
              22,503
   
                23,902
 
             21,601
   
                21,940
 
                20,309
   Printing, postage and supplies
                3,082
   
                  3,170
 
               3,648
   
                  3,525
 
                  3,322
   Net losses and operating expenses
                     
     of repossessed assets
                6,015
   
                  6,966
 
               7,230
   
                13,067
 
                  7,220
   Amortization of intangible assets
                   896
   
                  1,365
 
               1,324
   
                  1,323
 
                  1,324
   Mortgage banking costs
                6,471
   
                11,999
 
               9,093
   
                10,380
 
                  9,267
   Change in fair value of mortgage servicing rights
               (3,129)
   
              (25,111)
 
             15,924
   
                19,458
 
              (13,932)
   Visa retrospective responsibility obligation
                      -
   
                (1,103)
 
               1,103
   
                       -
 
                        -
   Other expense
                8,745
   
                14,029
 
               9,491
   
                  6,265
 
                  6,975
 Total other operating expense
            178,449
   
              178,361
 
           205,165
   
              205,912
 
              163,732
                       
 Net income before taxes
            103,518
   
                90,203
 
             93,223
   
                97,600
 
                90,625
 Federal and state income taxes
              38,752
   
                31,097
 
             29,935
   
                32,042
 
                30,283
                       
 Net income
              64,766
   
                59,106
 
             63,288
   
                65,558
 
                60,342
 Net income (loss) attributable to non-controlling interest
                      (8)
   
                     274
 
                 (979)
   
                  2,036
 
                     209
                       
 Net income attributable to BOK Financial Corporation
 $           64,774
  $
58,832
 
 $          64,267
  $
63,522
 
 $             60,133
                       
 Average shares outstanding:
                     
    Basic
       67,901,722
   
         67,685,434
 
      67,625,378
   
         67,605,807
 
         67,592,315
    Diluted
       68,176,527
   
         67,888,950
 
      67,765,344
   
         67,880,587
 
         67,790,049
                       
 Net income per share:
                     
   Basic
 $               0.95
  $
0.86
 
 $              0.94
  $
0.93
 
 $                 0.88
   Diluted
 $               0.94
  $
0.86
 
 $              0.94
  $
0.93
 
 $                 0.88

 
 
 
 LOANS BY PRINCIPAL MARKET AREA - UNAUDITED
                   
 BOK FINANCIAL CORPORATION
                     
 (In thousands)
                     
          Quarter Ended          
 
 March 31,
   
December 31,
September 30,
 June 30,
 
 March 31,
 
2011
   
2010
 
2010
   
2010
 
2010
                       
Oklahoma:
                     
    Commercial
 $      2,618,045
  $
2,581,082
 
 $     2,662,347
  $
2,704,460
 
 $        2,616,086
    Commercial real estate
            661,254
   
              726,409
 
           748,501
   
              784,549
 
              787,543
    Residential mortgage
         1,219,237
   
           1,253,466
 
        1,293,334
   
           1,257,497
 
           1,235,788
    Consumer
            291,412
   
              336,492
 
           349,720
   
              395,274
 
              404,570
        Total Oklahoma
         4,789,948
   
           4,897,449
 
        5,053,902
   
           5,141,780
 
           5,043,987
                       
Texas:
                     
    Commercial
         1,916,270
   
           1,888,635
 
        1,876,994
   
           1,902,934
 
           1,935,819
    Commercial real estate
            687,817
   
              686,956
 
           715,859
   
              731,399
 
              769,682
    Residential mortgage
            283,925
   
              297,027
 
           309,815
   
              308,496
 
              307,643
    Consumer
            141,199
   
              146,986
 
           151,434
   
              160,377
 
              160,449
        Total Texas
         3,029,211
   
           3,019,604
 
        3,054,102
   
           3,103,206
 
           3,173,593
                       
New Mexico:
                     
    Commercial
            262,597
   
              279,432
 
           289,368
   
              286,555
 
              326,203
    Commercial real estate
            326,104
   
              314,781
 
           314,957
   
              294,425
 
              298,197
    Residential mortgage
              90,466
   
                88,392
 
             87,851
   
                87,549
 
                85,629
    Consumer
              19,242
   
                19,583
 
             20,153
   
                20,542
 
                16,713
        Total New Mexico
            698,409
   
              702,188
 
           712,329
   
              689,071
 
              726,742
                       
Arkansas:
                     
    Commercial
              75,889
   
                84,775
 
             91,752
   
                89,376
 
                86,566
    Commercial real estate
            124,875
   
              116,989
 
           117,137
   
              114,576
 
              129,125
    Residential mortgage
              14,114
   
                13,155
 
             14,937
   
                15,823
 
                17,071
    Consumer
              61,746
   
                72,787
 
             84,869
   
                96,189
 
              110,123
        Total Arkansas
            276,624
   
              287,706
 
           308,695
   
              315,964
 
              342,885
                       
Colorado:
                     
    Commercial
            514,100
   
              470,500
 
           457,421
   
              484,188
 
              495,916
    Commercial real estate
            172,416
   
              197,180
 
           203,866
   
              225,758
 
              228,998
    Residential mortgage
              67,975
   
                72,310
 
             75,152
   
                69,325
 
                68,049
    Consumer
              20,145
   
                21,409
 
             15,402
   
                18,548
 
                17,991
        Total Colorado
            774,636
   
              761,399
 
           751,841
   
              797,819
 
              810,954
                       
Arizona:
                     
    Commercial
            251,390
   
              231,117
 
           234,739
   
              204,326
 
              209,019
    Commercial real estate
            213,442
   
              201,018
 
           188,943
   
              163,374
 
              202,192
    Residential mortgage
              89,384
   
                89,245
 
             85,184
   
                78,890
 
                68,015
    Consumer
                5,266
   
                  3,445
 
               3,061
   
                  2,971
 
                  3,068
        Total Arizona
            559,482
   
              524,825
 
           511,927
   
              449,561
 
              482,294
                       
Kansas / Missouri:
                     
    Commercial
            409,966
   
              398,455
 
           359,387
   
              339,689
 
              345,130
    Commercial real estate
              37,074
   
                34,017
 
             33,859
   
                26,828
 
                28,111
    Residential mortgage
              12,220
   
                14,653
 
             17,635
   
                16,666
 
                15,516
    Consumer
                2,265
   
                  2,740
 
               2,167
   
                  2,133
 
                  2,012
        Total Kansas / Missouri
            461,525
   
              449,865
 
           413,048
   
              385,316
 
              390,769
                       
TOTAL BOK FINANCIAL
 $    10,589,835
  $
10,643,036
 
 $   10,805,844
  $
10,882,717
 
 $      10,971,224

 
 
 


 DEPOSITS BY PRINCIPAL MARKET AREA - UNAUDITED
                   
 BOK FINANCIAL CORPORATION
                     
 (In thousands)
                     
          Quarter Ended          
 
 March 31,
   
December 31,
September 30,
 June 30,
 
 March 31,
 
2011
   
2010
 
2010
   
2010
 
2010
                       
Oklahoma:
                     
    Demand
 $      2,420,210
  $
2,271,375
 
 $     2,238,303
  $
2,101,994
 
 $        2,062,084
    Interest-bearing:
                     
       Transaction
         6,068,304
   
           6,061,626
 
        5,609,811
   
           5,562,287
 
           5,237,983
       Savings
            120,020
   
              106,411
 
           103,524
   
              102,590
 
              101,708
       Time
         1,465,506
   
           1,373,307
 
        1,497,344
   
           1,442,525
 
           1,360,756
    Total interest-bearing
         7,653,830
   
           7,541,344
 
        7,210,679
   
           7,107,402
 
           6,700,447
Total Oklahoma
       10,074,040
   
           9,812,719
 
        9,448,982
   
           9,209,396
 
           8,762,531
                       
Texas:
                     
    Demand
         1,405,892
   
           1,389,876
 
        1,238,103
   
           1,150,495
 
           1,068,656
    Interest-bearing:
                     
       Transaction
         1,977,850
   
           1,791,810
 
        1,786,979
   
           1,674,519
 
           1,675,759
       Savings
              40,313
   
                36,429
 
             35,614
   
                36,814
 
                37,175
       Time
         1,015,754
   
              966,116
 
        1,031,877
   
           1,003,936
 
           1,043,813
    Total interest-bearing
         3,033,917
   
           2,794,355
 
        2,854,470
   
           2,715,269
 
           2,756,747
Total Texas
         4,439,809
   
           4,184,231
 
        4,092,573
   
           3,865,764
 
           3,825,403
                       
New Mexico:
                     
    Demand
            282,708
   
              270,916
 
           262,567
   
              223,869
 
              222,685
    Interest-bearing:
                     
       Transaction
            498,355
   
              530,244
 
           535,012
   
              491,708
 
              480,189
       Savings
              24,455
   
                28,342
 
             27,906
   
                30,231
 
                20,036
       Time
            453,580
   
              450,177
 
           469,493
   
              476,155
 
              495,243
    Total interest-bearing
            976,390
   
           1,008,763
 
        1,032,411
   
              998,094
 
              995,468
Total New Mexico
         1,259,098
   
           1,279,679
 
        1,294,978
   
           1,221,963
 
           1,218,153
                       
Arkansas:
                     
    Demand
              15,144
   
                15,310
 
             17,604
   
                14,919
 
                17,599
    Interest-bearing:
                     
       Transaction
            130,613
   
              129,580
 
           137,797
   
              108,104
 
                61,398
       Savings
                1,514
   
                  1,266
 
               1,522
   
                  1,288
 
                  1,266
       Time
              94,889
   
              100,998
 
           116,536
   
              119,472
 
              105,794
    Total interest-bearing
            227,016
   
              231,844
 
           255,855
   
              228,864
 
              168,458
Total Arkansas
            242,160
   
              247,154
 
           273,459
   
              243,783
 
              186,057
                       
Colorado:
                     
    Demand
            197,579
   
              157,742
 
           156,685
   
              143,783
 
              136,048
    Interest-bearing:
                     
       Transaction
            528,948
   
              522,207
 
           501,405
   
              441,085
 
              456,508
       Savings
              21,655
   
                20,310
 
             19,681
   
                18,869
 
                18,118
       Time
            546,586
   
              502,889
 
           495,899
   
              497,538
 
              509,410
    Total interest-bearing
         1,097,189
   
           1,045,406
 
        1,016,985
   
              957,492
 
              984,036
Total Colorado
         1,294,768
   
           1,203,148
 
        1,173,670
   
           1,101,275
 
           1,120,084
                       
Arizona:
                     
    Demand
            106,880
   
                74,887
 
             97,384
   
                71,711
 
                61,183
    Interest-bearing:
                     
       Transaction
            102,089
   
                95,890
 
             94,108
   
                94,033
 
                81,851
       Savings
                   984
   
                     809
 
                  812
   
                  1,062
 
                  1,105
       Time
              50,060
   
                52,227
 
             59,678
   
                63,643
 
                64,592
    Total interest-bearing
            153,133
   
              148,926
 
           154,598
   
              158,738
 
              147,548
Total Arizona
            260,013
   
              223,813
 
           251,982
   
              230,449
 
              208,731
                       
Kansas / Missouri:
                     
    Demand
              28,774
   
                40,658
 
             35,869
   
                28,518
 
                31,726
    Interest-bearing:
                     
       Transaction
            222,705
   
              124,005
 
           180,273
   
              116,423
 
              100,037
       Savings
                   323
   
                     200
 
                  132
   
                     110
 
                     146
       Time
              51,236
   
                63,454
 
             70,673
   
                69,819
 
                74,648
    Total interest-bearing
            274,264
   
              187,659
 
           251,078
   
              186,352
 
              174,831
Total Kansas / Missouri
            303,038
   
              228,317
 
           286,947
   
              214,870
 
              206,557
                       
TOTAL BOK FINANCIAL
 $    17,872,926
  $
17,179,061
 
 $   16,822,591
  $
16,087,500
 
 $      15,527,516

 
 
 

 NET INTEREST MARGIN TREND - UNAUDITED
                   
 BOK FINANCIAL CORPORATION
                     
            Quarter Ended          
 
 March 31,
   
December 31,
September 30,
 June 30,
 
 March 31,
 
2011
   
2010
 
2010
   
2010
 
2010
TAX-EQUIVALENT ASSETS YIELDS
                     
Trading securities
3.84%
   
4.06%
 
3.26%
   
4.51%
 
4.53%
Funds sold and resell agreements
0.08%
   
0.13%
 
0.08%
   
0.14%
 
0.10%
Securities:
                     
    Taxable (A)
3.20%
   
2.67%
 
3.28%
   
3.56%
 
3.73%
    Tax-exempt (A)
5.07%
   
4.95%
 
4.87%
   
4.89%
 
5.28%
Total securities (A)
3.25%
   
2.73%
 
3.32%
   
3.60%
 
3.78%
Residential mortgage loans held for sale
4.33%
   
3.85%
 
4.24%
   
4.76%
 
5.16%
Loans
4.75%
   
4.76%
 
4.87%
   
4.83%
 
4.81%
Less allowance for loan losses
                      -
   
                        -
 
                     -
   
                       -
 
                        -
Loans, net of allowance
4.89%
   
4.90%
 
5.01%
   
4.97%
 
4.95%
Total tax-equivalent yield on earning assets (A)
4.09%
   
3.84%
 
4.19%
   
4.33%
 
4.41%
COST OF INTEREST-BEARING LIABILITIES
                     
Interest-bearing deposits:
                     
  Interest-bearing transaction
0.32%
   
0.37%
 
0.45%
   
0.49%
 
0.52%
  Savings
0.37%
   
0.35%
 
0.39%
   
0.40%
 
0.42%
  Time
1.82%
   
1.78%
 
1.80%
   
1.74%
 
1.86%
Total interest-bearing deposits
0.72%
   
0.76%
 
0.85%
   
0.87%
 
0.94%
Funds purchased
0.16%
   
0.25%
 
0.19%
   
0.20%
 
0.14%
Repurchase agreements
0.40%
   
0.49%
 
0.52%
   
0.56%
 
0.57%
Other borrowings
1.31%
   
0.37%
 
0.36%
   
0.35%
 
0.29%
Subordinated debt
5.67%
   
5.64%
 
5.64%
   
5.57%
 
5.66%
Total cost of interest-bearing liabilities
0.80%
   
0.81%
 
0.86%
   
0.85%
 
0.87%
Tax-equivalent net interest revenue spread
3.29%
   
3.03%
 
3.33%
   
3.48%
 
3.54%
Effect of noninterest-bearing funding sources and other
0.17%
   
0.16%
 
0.17%
   
0.15%
 
0.14%
Tax-equivalent net interest margin
3.46%
   
3.19%
 
3.50%
   
3.63%
 
3.68%
                       
(A) Yield calculations exclude security trades that have been recorded on trade date with no corresponding interest income.

 
 
 

 CREDIT QUALITY INDICATORS
                     
 BOK FINANCIAL CORPORATION
                     
 (In thousands, except ratios)
          Quarter Ended          
 
 March 31,
   
December 31,
September 30,
 June 30,
 
 March 31,
 
2011
   
2010
 
2010
   
2010
 
2010
                       
 Nonperforming assets:
                     
   Nonaccruing loans (B):
                     
       Commercial
 $           57,449
  $
38,455
 
 $          49,361
  $
82,775
 
 $             84,491
       Commercial real estate
            125,504
   
              150,366
 
           177,709
   
              193,698
 
              219,639
       Residential mortgage
              37,824
   
                37,426
 
             38,898
   
                40,033
 
                36,281
       Consumer
                5,185
   
                  4,567
 
               2,784
   
                  3,188
 
                  3,164
   Total nonaccruing loans
            225,962
   
              230,814
 
           268,752
   
              319,694
 
              343,575
   Renegotiated loans (A)
              21,705
   
                22,261
 
             25,252
   
                21,327
 
                17,763
   Real estate and other repossessed assets
            131,420
   
              141,394
 
           126,859
   
              119,908
 
              121,933
       Total nonperforming assets
 $         379,087
  $
394,469
 
 $        420,863
  $
460,929
 
 $           483,271
                       
 Nonaccruing loans by principal market (B):
                     
    Oklahoma
 $           49,585
  $
60,805
 
 $          72,264
  $
93,898
 
 $           102,231
    Texas
              34,404
   
                33,157
 
             36,979
   
                49,695
 
                58,067
    New Mexico
              17,510
   
                19,283
 
             23,792
   
                26,956
 
                23,021
    Arkansas
              29,769
   
                  7,914
 
               9,990
   
                10,933
 
                14,652
    Colorado
              40,629
   
                49,416
 
             55,631
   
                66,040
 
                66,883
    Arizona
              54,065
   
                60,239
 
             70,038
   
                72,111
 
                78,656
    Kansas / Missouri
                      -
   
                        -
 
                    58
   
                       61
 
                       65
       Total nonaccruing loans
 $         225,962
  $
230,814
 
 $        268,752
  $
319,694
 
 $           343,575
 
                                   -
   
                                      -
 
                                  -
   
                                     -
 
                                      -
 Nonaccruing loans by loan portfolio sector (B):
                     
 Commercial:
                     
    Energy
 $                415
  $
465
 
 $            8,189
  $
26,259
 
 $             17,182
    Manufacturing
                4,545
   
                  2,116
 
               2,454
   
                  3,237
 
                  4,834
    Wholesale / retail
              30,411
   
                  8,486
 
               5,584
   
                  5,561
 
                  6,629
    Integrated food services
                       6
   
                       13
 
                    58
   
                       58
 
                       65
    Services
              15,720
   
                19,262
 
             23,925
   
                31,062
 
                35,535
    Healthcare
                2,574
   
                  3,534
 
               2,608
   
                  8,568
 
                10,538
    Other commercial and industrial
                3,778
   
                  4,579
 
               6,543
   
                  8,030
 
                  9,708
       Total commercial
              57,449
   
                38,455
 
             49,361
   
                82,775
 
                84,491
 Commercial real estate:
                     
    Construction and land development
              90,707
   
                99,579
 
           116,252
   
              132,686
 
              140,508
    Retail
                5,276
   
                  4,978
 
               8,041
   
                  4,967
 
                14,843
    Office
              14,628
   
                19,654
 
             24,942
   
                24,764
 
                26,660
    Multifamily
                1,900
   
                  6,725
 
               6,924
   
                  7,253
 
                15,725
    Industrial
                        -
   
                  4,087
 
               4,151
   
                  4,223
 
                          -
     Other commercial real estate
              12,993
   
                15,343
 
             17,399
   
                19,805
 
                21,903
       Total commercial real estate
            125,504
   
              150,366
 
           177,709
   
              193,698
 
              219,639
 Residential mortgage:
                     
    Permanent mortgage
              33,466
   
                32,111
 
             36,654
   
                37,978
 
                34,134
    Home equity
                4,358
   
                  5,315
 
               2,244
   
                  2,055
 
                  2,147
       Total residential mortgage
              37,824
   
                37,426
 
             38,898
   
                40,033
 
                36,281
 Consumer
                5,185
   
                  4,567
 
               2,784
   
                  3,188
 
                  3,164
       Total nonaccruing loans
 $         225,962
  $
230,814
 
 $        268,752
  $
319,694
 
 $           343,575
 
                                   -
   
                                      -
 
                                  -
   
                                     -
 
                                      -
 Performing loans 90 days past due
 $             9,291
  $
9,961
 
 $            6,433
  $
12,474
 
 $             12,915
                       
 Gross charge-offs
 $           15,232
  $
20,152
 
 $          25,340
  $
38,168
 
 $             40,328
 Recoveries
                4,914
   
                  5,939
 
               5,205
   
                  2,614
 
                  5,850
 Net charge-offs
 $           10,318
  $
14,213
 
 $          20,135
  $
35,554
 
 $             34,478
                       
 Provision for credit losses
 $             6,250
  $
6,999
 
 $          20,000
  $
36,040
 
 $             42,100
                       
 Allowance for loan losses to period end loans
2.73%
   
2.75%
 
2.77%
   
2.75%
 
2.73%
 Combined allowance for credit losses to period end loans
2.86%
   
2.89%
 
2.91%
   
2.89%
 
2.86%
 Nonperforming assets to period end loans
                     
     and repossessed assets
3.54%
   
3.66%
 
3.85%
   
4.19%
 
4.36%
 Net charge-offs (annualized) to average loans
0.39%
   
0.53%
 
0.74%
   
1.30%
 
1.23%
 Allowance for loan losses to nonaccruing loans
128.14%
   
126.93%
 
111.31%
   
93.68%
 
87.23%
 Combined allowance for credit losses to nonaccruing loans
134.17%
   
133.11%
 
117.01%
   
98.40%
 
91.42%
 
                     
 (A) includes residential mortgage loans guaranteed by
 $           18,304
  $
18,551
 
 $          21,706
  $
17,598
 
 $             14,083
        agencies of the U.S. government.  These loans
                     
        have been modified to extend payment terms and/or
                   
        reduce interest rates to current market.
                     
 (B) includes loans subject to First United Bank sellers escrow
 $                   -
  $
-
 
 $                  -
  $
-
 
 $               4,281