TULSA, OK / ACCESSWIRE / July 26, 2023 /

CEO Commentary

Stacy Kymes, president and chief executive officer, stated, "I am proud of the exceptional second quarter financial results delivered across the board by our team. Wealth segment revenues set another record this quarter, and core loans reached an all-time high led by the commercial and industrial segments. Our growth efforts are supported by the vitality of our geographic footprint as well as our diverse business model-non-interest revenues were almost 40 percent of total revenues for the quarter.

"Using our capital and liquidity strength, we are taking advantage of market and economic uncertainty to prudently grow. Our full-service banking market expansion into San Antonio and the addition of a fixed-income sales and trading office in Memphis are just two more examples of how we are investing to build long-term shareholder value. That disciplined, long-view approach has consistently been a distinct advantage for BOK Financial."

Second Quarter 2023 Financial Highlights
_{(Unless indicated otherwise, all comparisons are to the prior quarter)}

Net income was $151.3 million or $2.27 per diluted share for the second quarter of 2023 compared to $162.4 million or $2.43 per diluted share for the first quarter of 2023.
Net interest revenue totaled $322.3 million, a decrease of $30.1 million compared to the prior quarter. Net interest margin was 3.00 percent compared to 3.45 percent. Growth in low-spread trading assets drove a 9 basis point decline in net interest margin with deposit repricing activity primarily driving the remaining 36 basis point reduction.
Fees and commissions revenue was $200.5 million, an increase of $14.5 million. Brokerage and trading revenue grew $12.6 million, driven largely by higher U.S. government agency mortgage-backed securities and related derivative contracts trading volumes.
The net cost of the changes in the fair value of mortgage servicing rights and related economic hedges was $1.2 million compared to $10.5 million for the first quarter of 2023.
Operating expense increased $12.9 million to $318.7 million. Personnel expense increased $8.5 million. Growth in regular compensation related to our annual merit increases and higher cash-based incentive compensation reflecting sales activity was partially offset by lower seasonal employee benefits costs. Non-personnel expense increased $4.4 million, led by higher mortgage banking costs.
Period-end loans grew by $488 million to $23.2 billion at June 30, 2023, primarily driven by growth in commercial loans and commercial real estate loans secured by multifamily residential properties. Average outstanding loan balances were $22.9 billion, a $413 million increase.
We recorded a $17.0 million provision for expected credit losses in the second quarter of 2023, primarily related to higher assumed commercial real estate vacancy rates during the forecast period and overall loan portfolio growth during the quarter. We recorded a $16.0 million provision for expected credit losses in the first quarter of 2023 as key economic assumptions in the base case, including projected West Texas Intermediate ("WTI") oil prices and projected commercial real estate vacancy rates, were less favorable to economic growth. The combined allowance for credit losses totaled $323 million or 1.39 percent of outstanding loans at June 30, 2023. The combined allowance for credit losses was $312 million or 1.37 percent of outstanding loans at March 31, 2023. Net charge-offs were $6.7 million or 0.12 percent of average loans on an annualized basis in the second quarter compared to net charge-offs of $769 thousand or 0.01 percent of average loans on an annualized basis in the first quarter.
Period-end deposits increased $714 million to $33.3 billion while average deposits decreased $1.1 billion to $32.4 billion. Average demand deposits declined by $1.4 billion and average interest-bearing deposits increased $295 million. The loan to deposit ratio was 70 percent at June 30, 2023, consistent with March 31, 2023.
The company's tangible common equity ratio, a non-GAAP measure, was 7.79 percent at June 30, 2023 and 8.46 percent at March 31, 2023. The tangible common equity ratio is primarily based on total shareholders' equity, which includes unrealized gains and losses on available for sale securities. Adjusted for all unrealized securities portfolio gains and losses, including those in the investment portfolio, the tangible common equity ratio would be 7.49 percent.
The company's common equity Tier 1 capital ratio was 12.13 percent at June 30, 2023. In addition, the company's Tier 1 capital ratio was 12.13 percent, total capital ratio was 13.24 percent, and leverage ratio was 9.75 percent at June 30, 2023. At March 31, 2023, the company's common equity Tier 1 capital ratio was 12.19 percent, Tier 1 capital ratio was 12.20 percent, total capital ratio was 13.21 percent, and leverage ratio was 9.94 percent.
The company repurchased 266,000 shares of common stock at an average price paid of $84.08 a share in the second quarter of 2023.

Second Quarter 2023 Segment Highlights

Commercial Banking contributed $170.2 million to net income in the second quarter of 2023, a decrease of $7.1 million compared to the first quarter of 2023. Combined net interest revenue and fee revenue decreased $3.2 million due to a decline in demand deposit balances, partially offset by increased customer hedging revenue, primarily related to our energy customers. Net loans charged-off increased $5.9 million to $6.0 million in the second quarter of 2023. Personnel expense increased $3.3 million, driven primarily by incentive compensation costs. The second quarter of 2023 included a gain on alternative investments of $8.1 million resulting from merchant banking activities. Average loans increased $409 million or 2 percent to $19.2 billion. Average deposits decreased $1.0 billion or 7 percent to $14.8 billion.
Consumer Banking contributed $60.3 million to net income in the second quarter of 2023, an increase of $9.6 million over the prior quarter. The net cost of the changes in the fair value of mortgage servicing rights and related economic hedges was $1.2 million compared to $10.5 million for the first quarter of 2023. Combined net interest revenue and fee revenue increased $5.8 million, largely due to an increase in the spread on deposits, partially offset by a decline in deposit balances. Operating expense increased $2.1 million. Increases in mortgage banking costs of $2.5 million driven by higher seasonal prepayments and personnel expense of $1.1 million were partially offset by a decline in business promotion expense. Average loans increased $15 million or 1 percent to $1.8 billion. Average deposits decreased $262 million or 3 percent to $8.0 billion.
Wealth Management contributed $57.3 million to net income in the second quarter of 2023, an increase of $4.9 million over the first quarter of 2023. Combined net interest and fee revenue increased $9.4 million, primarily due to an increase of $5.1 million in total revenue from institutional trading activities from higher U.S. agency residential mortgage-backed securities trading volumes and increases in other revenue and fiduciary and asset management revenue. These increases were partially offset by a decrease in the spread on deposits. Personnel expense increased $2.7 million due to increased cash-based incentive compensation, driven by higher trading activities, combined with higher regular compensation related to annual merit increases. Average loans increased $29 million or 1 percent to $2.2 billion. Average deposits increased $112 million or 2 percent to $7.5 billion. Assets under management or administration were $103.6 billion, an increase of $1.3 billion.

Net Interest Revenue

Net interest revenue was $322.3 million for the second quarter of 2023 compared to $352.3 million for the prior quarter. Net interest margin was 3.00 percent compared to 3.45 percent. Growth in low-spread trading assets drove a 9 basis point decline in net interest margin with deposit repricing activity primarily driving the remaining 36 basis point reduction. Deposit price competition and liability mix shift have driven compression in the net interest margin.

Average earning assets increased $2.0 billion. Average trading securities grew $1.2 billion due to favorable market opportunities. Average loan balances increased $413 million, largely due to growth in commercial and commercial real estate loans. Average available for sale securities increased $295 million. Average interest-bearing cash and cash equivalents increased $92 million. Average interest-bearing deposits increased $295 million. Average funds purchased and repurchase agreements grew $1.9 billion while other borrowings increased $763 million.

The yield on average earning assets was 5.29 percent, up 23 basis points. The loan portfolio yield increased 36 basis points to 7.03 percent while the yield on the available for sale securities portfolio increased 13 basis points to 3.00 percent. The yield on interest-bearing cash and cash equivalents increased 113 basis points to 5.41 percent.

Funding costs were 3.27 percent, an 84 basis point increase. The cost of interest-bearing deposits increased 73 basis points to 2.56 percent. The cost of funds purchased and repurchase agreements increased 125 basis points to 4.58 percent while the cost of other borrowings was up 39 basis points to 5.12 percent. The benefit to net interest margin from assets funded by non-interest liabilities was 98 basis points, an increase of 16 basis points.

Fees and Commissions Revenue

Fees and commissions revenue totaled $200.5 million for the second quarter of 2023, an increase of $14.5 million over the prior quarter.

Brokerage and trading revenue increased $12.6 million, with a $9.3 million increase in trading revenue, largely due to a higher volume of U.S. agency residential mortgage-backed securities and related derivatives contracts trading activity. Customer hedging revenue grew $5.3 million, primarily driven by energy customer activity. Fiduciary and asset management revenue increased $2.3 million, largely due to seasonal tax preparation fee income.

Operating Expense

Total operating expense was $318.7 million for the second quarter of 2023, an increase of $12.9 million compared to the first quarter of 2023.

Personnel expense was $190.7 million, including $2.7 million of deferred compensation expense. Excluding deferred compensation costs, personnel expense increased $7.5 million. Cash-based incentive compensation increased $6.6 million, driven by sales activities. Regular compensation increased $4.1 million, representing the full quarter impact of our annual merit increases in March. Employee benefits expense decreased $2.5 million due to a seasonal decrease in payroll taxes, partially offset by higher healthcare costs.

Non-personnel expense was $128.0 million, an increase of $4.4 million. Higher seasonal prepayments led to a $2.5 million increase in mortgage banking costs. Occupancy and equipment costs grew $1.6 million, largely related to seasonal increases in general building operating costs.

Loans, Deposits and Capital

Loans

Outstanding loans were $23.2 billion at June 30, 2023, growing $488 million over March 31, 2023, largely due to growth in commercial and commercial real estate loans. Unfunded loan commitments decreased $141 million compared to the first quarter of 2023.

Outstanding commercial loan balances, which includes healthcare, services, energy and general business loans, increased $317 million over the prior quarter.

Energy loan balances increased $111 million to $3.5 billion or 15 percent of total loans. The majority of this portfolio is first lien, senior secured, reserve-based lending to oil and gas producers, which we believe is the lowest risk form of energy lending. Approximately 67 percent of committed production loans are secured by properties primarily producing oil. The remaining 33 percent is secured by properties primarily producing natural gas. Unfunded energy loan commitments were $4.3 billion at June 30, 2023, an increase of $224 million over March 31, 2023.

General business loans increased $93 million to $3.4 billion or 15 percent of total loans. General business loans include $2.0 billion of wholesale/retail loans and $1.4 billion of loans from other commercial industries.

Healthcare sector loan balances increased $92 million, totaling $4.0 billion or 17 percent of total loans. Our healthcare sector loans primarily consist of $3.3 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, which serves to help diversify risks specific to a single facility.

Services sector loan balances increased $21 million to $3.6 billion or 15 percent of total loans. Services loans consist of a large number of loans to a variety of businesses, including Native American tribal and state and local municipal government entities, Native American tribal casino operations, foundations and not-for-profit organizations, educational services and specialty trade contractors.

Commercial real estate loan balances grew$155 million and represent 21 percent of total loans. Loans secured by multifamily residential properties increased $139 million to $1.5 billion. Loans secured by industrial facilities increased $40 million to $1.3 billion. This growth was partially offset by a $40 million decrease in loans secured by office facilities. Unfunded commercial real estate loan commitments were $2.4 billion at June 30, 2023, a decrease of $306 million compared to March 31, 2023. We take a disciplined approach to managing our concentration of commercial real estate loan commitments as a percentage of Tier 1 Capital. While loan commitments are presently at the upper concentration limit, we expect continued growth in our commercial real estate balances as loans fund, primarily in the multifamily and industrial loan portfolios.

Loans to individuals increased $15 million and represent 16 percent of total loans. Residential mortgage loans increased $29 million while personal loans decreased $14 million.

Liquidity and Capital

Our funding sources, which primarily include deposits and borrowings from the Federal Home Loan Banks, provide adequate liquidity to meet our needs. The loan to deposit ratio was 70 percent at June 30, 2023, consistent with the prior quarter, providing significant on-balance sheet liquidity to meet future loan demand and contractual obligations.

Period-end deposits totaled $33.3 billion at June 30, 2023, a $714 million increase. Time deposits increased $1.1 billion while interest-bearing transaction account balances increased $473 million. Demand deposits decreased $824 million. Average deposits were $32.4 billion at June 30, 2023, a $1.1 billion decrease. Average demand deposit account balances decreased $1.4 billion and average interest-bearing transaction account balances decreased $271 million. Average time deposits increased $598 million. Average Commercial Banking deposits decreased $1.0 billion to $14.8 billion or 46 percent of total deposits. Our commercial deposit portfolio is highly diversified across industries and customers. The highest concentration by industry within our commercial deposit portfolio is with our energy customers representing 6 percent of our total deposits. Wealth Management deposits increased $112 million to $7.5 billion or 23 percent of total deposits. Consumer Banking deposits decreased $262 million to $8.0 billion or 25 percent of total deposits.

The company's common equity Tier 1 capital ratio was 12.13 percent at June 30, 2023. In addition, the company's Tier 1 capital ratio was 12.13 percent, total capital ratio was 13.24 percent, and leverage ratio was 9.75 percent at June 30, 2023. At the beginning of 2020, we 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. This election added 7 basis points to the company's common equity tier 1 capital ratio at June 30, 2023. At March 31, 2023, the company's common equity Tier 1 capital ratio was 12.19 percent, Tier 1 capital ratio was 12.20 percent, total capital ratio was 13.21 percent, and leverage ratio was 9.94 percent.

The company's tangible common equity ratio, a non-GAAP measure, was 7.79 percent at June 30, 2023 and 8.46 percent at March 31, 2023. The tangible common equity ratio is primarily based on total shareholders' equity, which includes unrealized gains and losses on available for sale securities. Adjusted for all unrealized securities portfolio gains and losses, including those in the investment portfolio, the tangible common equity ratio would be 7.49 percent. 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 repurchased 266,000 shares of common stock at an average price paid of $84.08 a share in the second quarter of 2023. We view share buybacks opportunistically, but within the context of maintaining our strong capital position.

Credit Quality

Expected credit losses on assets carried at amortized cost are recognized over their projected lives based on models that measure the probability of default and loss given default over a 12-month reasonable and supportable forecast period. Our models incorporate base case, downside and upside macroeconomic variables such as real gross domestic product ("GDP") growth, civilian unemployment rates, commercial real estate vacancy rates and WTI oil prices on a probability weighted basis.

A $17.0 million provision for credit losses was necessary for the second quarter of 2023, primarily related to higher assumed commercial real estate vacancy rates during the forecast period and loan growth during the quarter.

The probability weighting of our base case reasonable and supportable forecast remained at 50 percent in the second quarter of 2023 as the level of uncertainty in economic forecasts remained high. Our base case reasonable and supportable forecast assumes inflation continues to improve from the peak experienced in 2022 and reaches 3.1 percent by the second quarter of 2024. We expect the impact of the Russian-Ukraine conflict remains isolated. Inflation pressures cause modest declines in real household income compared to pre-pandemic levels, resulting in below-trend GDP growth. GDP is projected to grow by 1.0 percent over the next twelve months. Job openings revert to more normalized levels and overall hiring levels decline, causing the national unemployment rate to modestly increase over the next four quarters. Our forecasted civilian unemployment rate is 3.8 percent for the third quarter of 2023, increasing to 4.2 percent by the second quarter of 2024. Our base case also assumes the Federal Reserve increases the federal funds rate once in the third quarter of 2023, resulting in a target range of 5.25 percent to 5.50 percent. No additional rate increases are anticipated for the remainder of the forecast horizon. WTI oil prices are projected to generally follow the NYMEX forward curve that existed at the end of June 30, 2023, averaging $69.39 per barrel over the next twelve months.

Our downside case, probability weighted at 40 percent, assumes that inflation moderates from the peak experienced in 2022, but remains elevated through the forecast horizon ending at 3.8 percent by the second quarter of 2024. Higher levels of inflation force the Federal Reserve to adopt a more aggressive monetary policy as compared to the base case scenario. This results in a federal funds target range of 6.00 to 6.25 percent by the second quarter of 2024. The United States economy is pushed into a recession, with a contraction in economic activity and a sharp increase in the unemployment rate from 4.7 percent in the third quarter of 2023 to 6.1 percent in the second quarter of 2024. In this scenario, real GDP is expected to contract 2.0 percent over the next four quarters. WTI oil prices are projected to average $55.78 per barrel over the next twelve months, peaking at $62.31 in the third quarter of 2023 and falling 19 percent over the following three quarters.

Nonperforming assets totaled $136 million or 0.59 percent of outstanding loans and repossessed assets at June 30, 2023, compared to $133 million or 0.58 percent at March 31, 2023. Excluding loans guaranteed by U.S. government agencies, nonperforming assets totaled $125 million or 0.54 percent of outstanding loans and repossessed assets at June 30, 2023, compared to $119 million or 0.53 percent at March 31, 2023.

Nonaccruing loans were $132 million or 0.57 percent of outstanding loans at June 30, 2023. Nonaccruing commercial loans totaled $73 million or 0.50 percent of outstanding commercial loans. Nonaccruing commercial real estate loans totaled $17 million or 0.35 percent of outstanding commercial real estate loans. Nonaccruing loans to individuals totaled $42 million or 1.11 percent of outstanding loans to individuals.

Nonaccruing loans increased $12.0 million compared to March 31, 2023. Nonaccruing energy loans increased $20 million and nonaccruing general business loans increased $3.0 million. These increases were partially offset by a $4.3 million decrease in nonaccruing commercial real estate loans and a $3.6 million decrease in nonaccruing services loans. New nonaccruing loans identified in the second quarter totaled $28 million, offset by $5.9 million in payments received and $8.0 million of charge-offs.

Potential problem loans, which are defined as performing loans that, based on known information, cause management concern as to the borrowers' ability to continue to perform, totaled $109 million at June 30, 2023. The $28 million decrease compared to March 31, 2023 was primarily related to potential problem energy and general business loans.

At June 30, 2023, the combined allowance for loan losses and accrual for off-balance sheet credit risk from unfunded loan commitments was $323 million or 1.39 percent of outstanding loans and 267 percent of nonaccruing loans. The allowance for loan losses totaled $263 million or 1.13 percent of outstanding loans and 218 percent of nonaccruing loans. At March 31, 2023, the combined allowance for loan losses and accrual for off-balance sheet credit risk from unfunded loan commitments was $312 million or 1.37 percent of outstanding loans and 295 percent of nonaccruing loans. The allowance for loan losses was $249 million or 1.10 percent of outstanding loans and 235 percent of nonaccruing loans. The allowance to nonaccruing loan percentages referenced above omit residential mortgage loans guaranteed by U.S. government agencies.

Gross charge-offs were $8.0 million for the second quarter compared to $3.7 million for the first quarter of 2023. Gross charge-offs for the second quarter were primarily related to a single commercial real estate borrower and a single commercial services borrower. Recoveries totaled $1.3 million for the second quarter of 2023 and $2.9 million for the prior quarter. Net charge-offs were $6.7 million or 0.12 percent of average loans on an annualized basis in the second quarter compared to net charge-offs of $769 thousand or 0.01 percent of average loans on an annualized basis in the first quarter. Net charge-offs were 0.10 percent of average loans over the last four quarters.

Securities and Derivatives

The fair value of the available for sale securities portfolio totaled $11.9 billion at June 30, 2023, largely unchanged compared to March 31, 2023. At June 30, 2023, the available for sale securities portfolio consisted primarily of $6.1 billion of residential mortgage-backed securities fully backed by U.S. government agencies and $4.6 billion of commercial mortgage-backed securities fully backed by U.S. government agencies. At June 30, 2023, the available for sale securities portfolio had a net unrealized loss of $899 million compared to $742 million at March 31, 2023.

We hold an inventory of trading securities in support of sales to a variety of customers. At June 30, 2023, the trading securities portfolio totaled $5.4 billion compared to $2.3 billion at March 31, 2023.

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 $114 million to $212 million at June 30, 2023.

Derivative contracts are carried at fair value. At June 30, 2023, the net fair values of derivative contracts, before consideration of cash margin, reported as assets under our customer derivative programs totaled $538 million compared to $572 million at March 31, 2023. The aggregate net fair value of derivative contracts, before consideration of cash margin, held under these programs reported as liabilities totaled $526 million at June 30, 2023 and $578 million at March 31, 2023.

The net cost of the changes in the fair value of mortgage servicing rights and related economic hedges was $1.2 million during the second quarter of 2023, including a $10.3 million decrease in the fair value of securities and derivative contracts held as an economic hedge, a $9.3 million increase in the fair value of mortgage servicing rights and $232 thousand of related net interest expense.

Conference Call and Webcast

The company will hold a conference call at 9 a.m. Central time on Wednesday, July 26, 2023 to discuss the financial results with investors. The live audio webcast and presentation slides will be available on the company's website at www.bokf.com. The conference call can also be accessed by dialing 1-201-689-8471. A conference call and webcast replay will also be available shortly after conclusion of the live call at www.bokf.com or by dialing 1-844-512-2921 and referencing conference ID # 13739748.

About BOK Financial Corporation

BOK Financial Corporation is a $49 billion regional financial services company headquartered in Tulsa, Oklahoma with $104 billion in assets under management or 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's holdings include TransFund, Cavanal Hill Investment Management, Inc. 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, Wisconsin, Connecticut and Tennessee. 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 June 30, 2023 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 and the economy generally. Words such as "anticipates," "believes," "estimates," "expects," "forecasts," "plans," "projects," "will," "intends," variations of such words and similar expressions are intended to identify such forward-looking statements. Management judgments relating to and discussion of the provision and allowance for credit losses, allowance for uncertain tax positions, accruals for loss contingencies and valuation of mortgage servicing rights involve judgments as to expected events and are inherently forward-looking statements. Assessments that 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, 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 - UNAUDITED
BOK FINANCIAL CORPORATION
(In thousands)

	Jun. 30, 2023		Mar. 31, 2023
ASSETS
Cash and due from banks	$	875,714	$	792,371
Interest-bearing cash and cash equivalents		571,616		571,613
Trading securities		5,442,364		2,294,358
Investment securities, net of allowance		2,374,071		2,448,136
Available for sale securities		11,938,523		11,937,841
Fair value option securities		212,321		326,390
Restricted equity securities		330,086		288,181
Residential mortgage loans held for sale		94,820		74,175
Loans:
Commercial		14,534,516		14,217,349
Commercial real estate		4,970,801		4,815,316
Loans to individuals		3,732,342		3,717,388
Total loans		23,237,659		22,750,053
Allowance for loan losses		(262,714)		(249,460)
Loans, net of allowance		22,974,945		22,500,593
Premises and equipment, net		617,918		623,112
Receivables		263,915		265,680
Goodwill		1,044,749		1,044,749
Intangible assets, net		69,246		72,689
Mortgage servicing rights		304,722		299,803
Real estate and other repossessed assets, net		4,227		12,651
Derivative contracts, net		353,037		394,291
Cash surrender value of bank-owned life insurance		411,084		408,614
Receivable on unsettled securities sales		133,909		18,186
Other assets		1,220,653		1,150,689
TOTAL ASSETS	$	49,237,920	$	45,524,122

LIABILITIES AND EQUITY
Deposits:
Demand	$	10,782,548	$	11,606,975
Interest-bearing transaction		18,907,981		18,434,489
Savings		897,937		962,673
Time		2,706,377		1,576,610
Total deposits		33,294,843		32,580,747
Funds purchased and repurchase agreements		5,446,864		1,599,724
Other borrowings		3,777,056		4,735,885
Subordinated debentures		131,154		131,148
Accrued interest, taxes and expense		228,797		268,449
Due on unsettled securities purchases		400,430		262,492
Derivative contracts, net		550,653		510,483
Other liabilities		540,726		557,167
TOTAL LIABILITIES		44,370,523		40,646,095
Shareholders' equity:
Capital, surplus and retained earnings		5,700,526		5,603,340
Accumulated other comprehensive loss		(836,672)		(728,554)
TOTAL SHAREHOLDERS' EQUITY		4,863,854		4,874,786
Non-controlling interests		3,543		3,241
TOTAL EQUITY		4,867,397		4,878,027
TOTAL LIABILITIES AND EQUITY	$	49,237,920	$	45,524,122

AVERAGE BALANCE SHEETS - UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands)

	Three Months Ended
	Jun. 30, 2023		Mar. 31, 2023		Dec. 31, 2022		Sep. 30, 2022		Jun. 30, 2022
ASSETS
Interest-bearing cash and cash equivalents	$	708,475	$	616,596	$	568,307	$	748,263	$	843,619
Trading securities		4,274,803		3,031,969		3,086,985		3,178,068		4,166,954
Investment securities, net of allowance		2,408,122		2,473,796		2,535,305		2,593,989		610,983
Available for sale securities		12,033,597		11,738,693		10,953,851		10,306,257		12,258,072
Fair value option securities		245,469		300,372		92,012		36,846		54,832
Restricted equity securities		351,944		316,724		216,673		173,656		167,732
Residential mortgage loans held for sale		72,959		65,769		98,613		132,685		148,183
Loans:
Commercial		14,316,474		14,046,237		13,846,339		13,508,325		13,472,488
Commercial real estate		4,896,230		4,757,362		4,488,091		4,434,650		4,061,129
Loans to individuals		3,676,350		3,672,648		3,641,574		3,656,257		3,524,097
Total loans		22,889,054		22,476,247		21,976,004		21,599,232		21,057,714
Allowance for loan losses		(252,890)		(238,909)		(242,450)		(241,136)		(246,064)
Loans, net of allowance		22,636,164		22,237,338		21,733,554		21,358,096		20,811,650
Total earning assets		42,731,533		40,781,257		39,285,300		38,527,860		39,062,025
Cash and due from banks		875,280		857,771		865,796		821,801		822,599
Derivative contracts, net		410,793		546,018		1,239,717		2,019,905		3,051,429
Cash surrender value of bank-owned life insurance		409,313		408,124		406,826		410,667		408,489
Receivable on unsettled securities sales		163,903		177,312		194,996		219,113		457,165
Other assets		3,317,285		3,211,986		3,216,983		3,119,856		3,486,691
TOTAL ASSETS	$	47,908,107	$	45,982,468	$	45,209,618	$	45,119,202	$	47,288,398

LIABILITIES AND EQUITY
Deposits:
Demand	$	10,998,201	$	12,406,408	$	14,176,189	$	15,105,305	$	15,202,597
Interest-bearing transaction		18,368,592		18,639,900		18,898,315		19,556,806		21,037,294
Savings		926,882		958,443		969,275		978,596		981,493
Time		2,076,037		1,477,720		1,417,606		1,409,069		1,373,036
Total deposits		32,369,712		33,482,471		35,461,385		37,049,776		38,594,420
Funds purchased and repurchase agreements		3,670,994		1,759,237		1,046,447		800,759		1,224,134
Other borrowings		5,275,291		4,512,280		2,523,195		1,528,887		1,301,358
Subordinated debentures		131,153		131,166		131,180		131,199		131,219
Derivative contracts, net		576,558		428,023		445,105		105,221		535,574
Due on unsettled securities purchases		436,353		316,738		575,957		331,428		380,332
Other liabilities		503,134		511,530		408,029		396,510		389,031
TOTAL LIABILITIES		42,963,195		41,141,445		40,591,298		40,343,780		42,556,068
Total equity		4,944,912		4,841,023		4,618,320		4,775,422		4,732,330
TOTAL LIABILITIES AND EQUITY	$	47,908,107	$	45,982,468	$	45,209,618	$	45,119,202	$	47,288,398

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

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2023			2022			2023			2022

Interest revenue	$	570,367		$	294,247		$	1,087,096		$	577,346
Interest expense		248,106			20,229			412,487			34,917
Net interest revenue		322,261			274,018			674,609			542,429
Provision for credit losses		17,000			-			33,000			-
Net interest revenue after provision for credit losses		305,261			274,018			641,609			542,429
Other operating revenue:
Brokerage and trading revenue		65,006			44,043			117,402			16,964
Transaction card revenue		26,003			26,940			51,624			51,156
Fiduciary and asset management revenue		52,997			49,838			103,654			96,237
Deposit service charges and fees		27,100			28,500			53,068			55,504
Mortgage banking revenue		15,141			11,368			29,508			28,018
Other revenue		14,250			12,684			31,220			23,129
Total fees and commissions		200,497			173,373			386,476			271,008
Other gains (losses), net		12,618			(7,639	)		14,869			(9,283	)
Loss on derivatives, net		(8,159	)		(13,569	)		(9,503	)		(60,550	)
Loss on fair value option securities, net		(2,158	)		(2,221	)		(5,120	)		(13,422	)
Change in fair value of mortgage servicing rights		9,261			17,485			3,202			66,595
Gain (loss) on available for sale securities, net		(3,010	)		1,188			(3,010	)		2,125
Total other operating revenue		209,049			168,617			386,914			256,473
Other operating expense:
Personnel		190,652			154,923			372,797			314,151
Business promotion		7,640			6,325			16,209			12,838
Charitable contributions to BOKF Foundation		1,142			-			1,142			-
Professional fees and services		12,777			12,475			25,825			23,888
Net occupancy and equipment		30,105			27,489			58,564			58,344
Insurance		6,974			4,728			14,289			9,011
Data processing and communications		45,307			41,280			90,109			81,116
Printing, postage and supplies		3,728			3,929			7,621			7,618
Amortization of intangible assets		3,474			4,049			6,865			8,013
Mortgage banking costs		8,300			9,437			14,082			17,314
Other expense		8,574			9,020			16,982			18,980
Total other operating expense		318,673			273,655			624,485			551,273

Net income before taxes		195,637			168,980			404,038			247,629
Federal and state income taxes		44,001			36,122			89,906			52,319

Net income		151,636			132,858			314,132			195,310
Net income (loss) attributable to non-controlling interests		328			12			456			(24	)
Net income attributable to BOK Financial Corporation shareholders	$	151,308		$	132,846		$	313,676		$	195,334

Average shares outstanding:
Basic		65,994,132			67,453,748			66,162,048			67,616,396
Diluted		65,994,132			67,455,172			66,162,048			67,617,834

Net income per share:
Basic	$	2.27		$	1.96		$	4.70		$	2.87
Diluted	$	2.27		$	1.96		$	4.70		$	2.87

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

	Three Months Ended
	Jun. 30, 2023		Mar. 31, 2023		Dec. 31, 2022		Sep. 30, 2022		Jun. 30, 2022

Interest revenue	$	570,367	$	516,729	$	451,606	$	363,150	$	294,247
Interest expense		248,106		164,381		98,980		46,825		20,229
Net interest revenue		322,261		352,348		352,626		316,325		274,018
Provision for credit losses		17,000		16,000		15,000		15,000		-
Net interest revenue after provision for credit losses		305,261		336,348		337,626		301,325		274,018
Other operating revenue:
Brokerage and trading revenue		65,006		52,396		63,008		61,006		44,043
Transaction card revenue		26,003		25,621		27,136		25,974		26,940
Fiduciary and asset management revenue		52,997		50,657		49,899		50,190		49,838
Deposit service charges and fees		27,100		25,968		26,429		28,703		28,500
Mortgage banking revenue		15,141		14,367		10,065		11,282		11,368
Other revenue		14,250		16,970		17,034		15,479		12,684
Total fees and commissions		200,497		185,979		193,571		192,634		173,373
Other gains (losses), net		12,618		2,251		8,427		979		(7,639)
Gain (loss) on derivatives, net		(8,159)		(1,344)		4,548		(17,009)		(13,569)
Loss on fair value option securities, net		(2,158)		(2,962)		(2,568)		(4,368)		(2,221)
Change in fair value of mortgage servicing rights		9,261		(6,059)		(2,904)		16,570		17,485
Gain (loss) on available for sale securities, net		(3,010)		-		(3,988)		892		1,188
Total other operating revenue		209,049		177,865		197,086		189,698		168,617
Other operating expense:
Personnel		190,652		182,145		186,419		170,348		154,923
Business promotion		7,640		8,569		7,470		6,127		6,325
Charitable contributions to BOKF Foundation		1,142		-		2,500		-		-
Professional fees and services		12,777		13,048		18,365		14,089		12,475
Net occupancy and equipment		30,105		28,459		29,227		29,296		27,489
Insurance		6,974		7,315		4,677		4,306		4,728
Data processing and communications		45,307		44,802		43,048		41,743		41,280
Printing, postage and supplies		3,728		3,893		3,890		4,349		3,929
Amortization of intangible assets		3,474		3,391		3,736		3,943		4,049
Mortgage banking costs		8,300		5,782		9,016		9,504		9,437
Other expense		8,574		8,408		10,108		11,046		9,020
Total other operating expense		318,673		305,812		318,456		294,751		273,655
Net income before taxes		195,637		208,401		216,256		196,272		168,980
Federal and state income taxes		44,001		45,905		47,864		39,681		36,122
Net income		151,636		162,496		168,392		156,591		132,858
Net income (loss) attributable to non-controlling interests		328		128		(37)		81		12
Net income attributable to BOK Financial Corporation shareholders	$	151,308	$	162,368	$	168,429	$	156,510	$	132,846

Average shares outstanding:
Basic		65,994,132		66,331,775		66,627,955		67,003,199		67,453,748
Diluted		65,994,132		66,331,775		66,627,955		67,004,623		67,455,172
Net income per share:
Basic	$	2.27	$	2.43	$	2.51	$	2.32	$	1.96
Diluted	$	2.27	$	2.43	$	2.51	$	2.32	$	1.96

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

	Three Months Ended
	Jun. 30, 2023		Mar. 31, 2023		Dec. 31, 2022		Sep. 30, 2022		Jun. 30, 2022
Capital:
Period-end shareholders' equity	$	4,863,854	$	4,874,786	$	4,682,649	$	4,509,934	$	4,737,339
Risk weighted assets	$	38,218,164	$	37,192,197	$	38,142,231	$	36,866,994	$	36,787,092
Risk-based capital ratios:
Common equity tier 1		12.13%		12.19%		11.69%		11.80%		11.61%
Tier 1		12.13%		12.20%		11.71%		11.82%		11.63%
Total capital		13.24%		13.21%		12.67%		12.81%		12.59%
Leverage ratio		9.75%		9.94%		9.91%		9.76%		9.12%
Tangible common equity ratio¹		7.79%		8.46%		7.63%		7.96%		8.16%
Adjusted tangible common equity ratio¹		7.49%		8.22%		7.36%		7.66%		8.10%

Common stock:
Book value per share	$	73.28	$	73.19	$	69.93	$	67.06	$	69.87
Tangible book value per share	$	56.50	$	56.42	$	53.19	$	50.34	$	53.22
Market value per share:
High	$	90.91	$	106.47	$	110.28	$	95.51	$	94.76
Low	$	74.40	$	80.00	$	88.46	$	69.82	$	74.03
Cash dividends paid	$	35,879	$	36,006	$	36,188	$	35,661	$	35,892
Dividend payout ratio		23.71%		22.18%		21.49%		22.79%		27.02%
Shares outstanding, net		66,369,208		66,600,833		66,958,634		67,254,383		67,806,005
Stock buy-back program:
Shares repurchased		266,000		447,071		314,406		548,034		294,084
Amount	$	22,366	$	44,100	$	32,429	$	49,980	$	24,404
Average price paid per share²	$	84.08	$	98.64	$	103.14	$	91.20	$	82.98

Performance ratios (quarter annualized):
Return on average assets		1.27%		1.43%		1.48%		1.38%		1.13%
Return on average equity		12.28%		13.61%		14.48%		13.01%		11.27%
Return on average tangible common equity¹		15.86%		17.71%		19.14%		17.04%		14.81%
Net interest margin		3.00%		3.45%		3.54%		3.24%		2.76%
Efficiency ratio^1,3		58.75%		56.79%		56.61%		57.33%		60.79%

Other data:
Tax equivalent interest	$	2,200	$	2,285	$	2,287	$	2,163	$	2,040
Net unrealized loss on available for sale securities	$	(898,906)	$	(741,508)	$	(865,553)	$	(935,788)	$	(522,812)

Mortgage banking:
Mortgage production revenue	$	(284)	$	(633)	$	(3,983)	$	(2,406)	$	(504)

Mortgage loans funded for sale	$	214,785	$	138,624	$	141,090	$	260,210	$	360,237
Add: current period-end outstanding commitments		55,031		71,693		45,492		75,779		106,004
Less: prior period end outstanding commitments		71,693		45,492		75,779		106,004		160,260
Total mortgage production volume	$	198,123	$	164,825	$	110,803	$	229,985	$	305,981

Mortgage loan refinances to mortgage loans funded for sale		8%		9%		10%		10%		19%
Realized margin on funded mortgage loans		(0.14)%		(1.25)%		(1.10)%		(0.41)%		0.88%
Production revenue as a percentage of production volume		(0.14)%		(0.38)%		(3.59)%		(1.05)%		(0.16)%

Mortgage servicing revenue	$	15,425	$	15,000	$	14,048	$	13,688	$	11,872
Average outstanding principal balance of mortgage loans serviced for others		20,807,044		21,121,319		18,923,078		19,070,221		17,336,596
Average mortgage servicing revenue rates		0.30%		0.29%		0.29%		0.28%		0.27%

Gain (loss) on mortgage servicing rights, net of economic hedge:
Gain (loss) on mortgage hedge derivative contracts, net	$	(8,099)	$	(1,711)	$	4,373	$	(17,027)	$	(13,639)
Loss on fair value option securities, net		(2,158)		(2,962)		(2,568)		(4,368)		(2,221)
Gain (loss) on economic hedge of mortgage servicing rights		(10,257)		(4,673)		1,805		(21,395)		(15,860)
Gain (loss) on changes in fair value of mortgage servicing rights		9,261		(6,059)		(2,904)		16,570		17,485
Gain (loss) on changes in fair value of mortgage servicing rights, net of economic hedges, included in other operating revenue		(996)		(10,732)		(1,099)		(4,825)		1,625
Net interest revenue (expense) on fair value option securities⁴		(232)		187		(118)		29		275
Total economic benefit (cost) of changes in the fair value of mortgage servicing rights, net of economic hedges	$	(1,228)	$	(10,545)	$	(1,217)	$	(4,796)	$	1,900

¹See Reconciliation of Non-GAAP Measures following.
²Excludes 1 percent excise tax on corporate stock repurchases.
³ Prior period ratios have been adjusted to be consistent with the current period presentation.
⁴Actual interest earned on fair value option securities less internal transfer-priced cost of funds.

EXPLANATION AND RECONCILIATION OF NON-GAAP MEASURES - UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands, except ratio and share data)

	Three Months Ended
	Jun. 30, 2023		Mar. 31, 2023		Dec. 31, 2022		Sep. 30, 2022		Jun. 30, 2022
Reconciliation of tangible common equity ratio and adjusted tangible common equity ratio:
Total shareholders' equity	$	4,863,854	$	4,874,786	$	4,682,649	$	4,509,934	$	4,737,339
Less: Goodwill and intangible assets, net		1,113,995		1,117,438		1,120,880		1,124,582		1,128,493
Tangible common equity		3,749,859		3,757,348		3,561,769		3,385,352		3,608,846
Add: Unrealized gain (loss) on investment securities, net		(189,152)		(140,947)		(167,477)		(165,206)		(30,305)
Add: Tax effect on unrealized gain (loss) on investment securities, net		44,486		33,149		39,196		38,665		7,093
Adjusted tangible common equity	$	3,605,193	$	3,649,550	$	3,433,488	$	3,258,811	$	3,585,634

Total assets	$	49,237,920	$	45,524,122	$	47,790,642	$	43,645,446	$	45,377,072
Less: Goodwill and intangible assets, net		1,113,995		1,117,438		1,120,880		1,124,582		1,128,493
Tangible assets	$	48,123,925	$	44,406,684	$	46,669,762	$	42,520,864	$	44,248,579

Tangible common equity ratio		7.79%		8.46%		7.63%		7.96%		8.16%

Adjusted tangible common equity ratio		7.49%		8.22%		7.36%		7.66%		8.10%

Reconciliation of return on average tangible common equity:
Total average shareholders' equity	$	4,941,352	$	4,837,567	$	4,613,929	$	4,771,123	$	4,728,311
Less: Average goodwill and intangible assets, net		1,115,652		1,119,123		1,122,680		1,126,440		1,130,430
Average tangible common equity	$	3,825,700	$	3,718,444	$	3,491,249	$	3,644,683	$	3,597,881

Net Income		151,308		162,368		168,429		156,510		132,846

Return on average tangible common equity		15.86%		17.71%		19.14%		17.04%		14.81%

Reconciliation of pre-provision net revenue:
Net income before taxes	$	195,637	$	208,401	$	216,256	$	196,272	$	168,980
Provision for expected credit losses		17,000		16,000		15,000		15,000		-
Net income (loss) attributable to non-controlling interests		328		128		(37)		81		12
Pre-provision net revenue	$	212,309	$	224,273	$	231,293	$	211,191	$	168,968

Calculation of efficiency ratio:
Total other operating expense	$	318,673	$	305,812	$	318,456	$	294,751	$	273,655
Less: Amortization of intangible assets		3,474		3,391		3,736		3,943		4,049
Adjusted total other operating expense	$	315,199	$	302,421	$	314,720	$	290,808	$	269,606

Net interest revenue	$	322,261	$	352,348	$	352,626	$	316,325	$	274,018
Tax-equivalent adjustment		2,200		2,285		2,287		2,163		2,040
Tax-equivalent net interest revenue		324,461		354,633		354,913		318,488		276,058
Total other operating revenue		209,049		177,865		197,086		189,698		168,617
Less: Gain (loss) on available for sale securities, net		(3,010)		-		(3,988)		892		1,188
Adjusted revenue	$	536,520	$	532,498	$	555,987	$	507,294	$	443,487

Efficiency ratio		58.75%		56.79%		56.61%		57.33%		60.79%


Information on net interest revenue and net interest margin excluding trading activities:
Net interest revenue	$	322,261	$	352,348	$	352,626	$	316,325	$	274,018
Less: Trading activities net interest revenue		(3,461)		70		(860)		4,478		15,073
Net interest revenue excluding trading activities		325,722		352,278		353,486		311,847		258,945
Tax-equivalent adjustment		2,200		2,285		2,287		2,163		2,040
Tax-equivalent net interest revenue excluding trading activities	$	327,922	$	354,563	$	355,773	$	314,010	$	260,985

Average total earning assets	$	42,731,533	$	40,781,257	$	39,285,300	$	38,527,860	$	39,062,025
Less: Average trading activities interest-earning assets		4,274,803		3,031,969		3,086,985		3,178,068		4,166,954
Average interest-earning assets excluding trading activities	$	38,456,730	$	37,749,288	$	36,198,315	$	35,349,792	$	34,895,071

Net interest margin on average interest-earning assets		3.00%		3.45%		3.54%		3.24%		2.76%
Net interest margin on average trading activities interest-earning assets		(0.34)%		0.00%		(0.12)%		0.53%		1.31%
Net interest margin on average interest-earning assets excluding trading activities		3.36%		3.72%		3.84%		3.49%		2.95%

Explanation of Non-GAAP Measures

The tangible common equity ratio and return on average tangible common equity are primarily based on total shareholders' equity, which includes unrealized gains and losses on available for sale securities, less intangible assets and equity that does not benefit common shareholders. The adjusted tangible common equity ratio also includes unrealized gains and losses on the investment portfolio. These measures are valuable indicators of a financial institution's capital strength since they eliminate intangible assets from shareholders' equity and retain the effect of unrealized losses on securities and other components of accumulated other comprehensive income in shareholders' equity.

Pre-provision net revenue is a measure of revenue less expenses, and is calculated before provision for credit losses and income tax expense. This financial measure is frequently used by investors and analysts and enables them to assess a company's ability to generate earnings to cover credit losses through a credit cycle. It also provides an additional basis for comparing the results of operations between periods by isolating the impact of the provision for credit losses, which can vary significantly between periods.

The efficiency ratio measures the Company's ability to use its assets and manage its liabilities effectively in the current period. Prior to the second quarter of 2023, the efficiency ratio did not exclude amortization of intangible assets and only included tax-equivalent net interest revenue and fees and commissions as part of total revenue. All prior periods were adjusted to conform with the current methodology.

Net interest revenue and net interest margin excluding trading activities removes the effect of trading activities on these metrics allowing management and investors to assess the performance of the Company's core lending and deposit activities without the associated volatility from trading activities.

LOANS TREND - UNAUDITED
BOK FINANCIAL CORPORATION
(In thousands)

	Jun. 30, 2023		Mar. 31, 2023		Dec. 31, 2022		Sep. 30, 2022		Jun. 30, 2022
Commercial:
Healthcare	$	3,991,387	$	3,899,341	$	3,845,017	$	3,826,623	$	3,696,963
Services		3,585,169		3,563,702		3,431,521		3,280,925		3,421,493
Energy		3,508,752		3,398,057		3,424,790		3,371,588		3,393,072
General business		3,449,208		3,356,249		3,511,171		3,148,783		3,110,309
Total commercial		14,534,516		14,217,349		14,212,499		13,627,919		13,621,837

Commercial real estate:
Multifamily		1,502,971		1,363,881		1,212,883		1,126,700		878,565
Industrial		1,349,709		1,309,435		1,221,501		1,103,905		953,626
Office		1,005,660		1,045,700		1,053,331		1,086,615		1,100,115
Retail		617,886		618,264		620,518		635,021		637,304
Residential construction and land development		106,370		102,828		95,684		91,690		111,575
Other commercial real estate		388,205		375,208		402,860		429,980		424,963
Total commercial real estate		4,970,801		4,815,316		4,606,777		4,473,911		4,106,148

Loans to individuals:
Residential mortgage		1,993,690		1,926,027		1,890,784		1,851,836		1,784,729
Residential mortgages guaranteed by U.S. government agencies		186,170		224,753		245,940		262,466		293,838
Personal		1,552,482		1,566,608		1,601,150		1,574,325		1,484,596
Total loans to individuals		3,732,342		3,717,388		3,737,874		3,688,627		3,563,163

Total	$	23,237,659	$	22,750,053	$	22,557,150	$	21,790,457	$	21,291,148

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

	Jun. 30, 2023		Mar. 31, 2023		Dec. 31, 2022		Sep. 30, 2022		Jun. 30, 2022

Texas:
Commercial	$	7,223,820	$	7,103,166	$	6,878,618	$	6,644,890	$	6,645,698
Commercial real estate		1,748,796		1,675,831		1,555,508		1,448,590		1,339,452
Loans to individuals		974,911		992,343		982,700		970,459		934,856
Total Texas		9,947,527		9,771,340		9,416,826		9,063,939		8,920,006

Oklahoma:
Commercial		3,251,547		3,178,934		3,382,577		3,108,608		3,139,093
Commercial real estate		573,559		574,708		582,109		608,856		576,458
Loans to individuals		2,079,311		2,049,472		2,077,124		2,054,362		1,982,247
Total Oklahoma		5,904,417		5,803,114		6,041,810		5,771,826		5,697,798

Colorado:
Commercial		2,179,473		2,148,066		2,149,199		2,117,181		2,082,688
Commercial real estate		683,973		646,537		613,912		565,057		473,231
Loans to individuals		223,200		231,368		241,902		237,981		234,105
Total Colorado		3,086,646		3,025,971		3,005,013		2,920,219		2,790,024

Arizona:
Commercial		1,177,778		1,115,973		1,124,289		1,103,000		1,085,401
Commercial real estate		926,750		881,465		860,947		850,319		766,767
Loans to individuals		242,102		240,556		229,872		225,981		212,870
Total Arizona		2,346,630		2,237,994		2,215,108		2,179,300		2,065,038

Kansas/Missouri:
Commercial		309,148		318,782		310,715		307,456		338,910
Commercial real estate		516,299		489,951		479,968		466,955		458,157
Loans to individuals		138,960		129,580		131,307		125,039		125,584
Total Kansas/Missouri		964,407		938,313		921,990		899,450		922,651

New Mexico:
Commercial		287,443		280,945		263,349		258,754		253,825
Commercial real estate		425,472		449,715		417,008		426,367		431,606
Loans to individuals		64,803		65,770		67,163		68,095		67,026
Total New Mexico		777,718		796,430		747,520		753,216		752,457

Arkansas:
Commercial		105,307		71,483		103,752		88,030		76,222
Commercial real estate		95,952		97,109		97,325		107,767		60,477
Loans to individuals		9,055		8,299		7,806		6,710		6,475
Total Arkansas		210,314		176,891		208,883		202,507		143,174

TOTAL BOK FINANCIAL	$	23,237,659	$	22,750,053	$	22,557,150	$	21,790,457	$	21,291,148

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

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

	Jun. 30, 2023		Mar. 31, 2023		Dec. 31, 2022		Sep. 30, 2022		Jun. 30, 2022
Oklahoma:
Demand	$	4,273,136	$	4,369,944	$	4,585,963	$	5,143,405	$	5,422,593
Interest-bearing:
Transaction		9,979,534		9,468,100		9,475,528		9,619,419		10,240,378
Savings		531,536		564,829		555,407		558,256		561,413
Time		1,945,916		942,787		794,002		776,306		678,127
Total interest-bearing		12,456,986		10,975,716		10,824,937		10,953,981		11,479,918
Total Oklahoma		16,730,122		15,345,660		15,410,900		16,097,386		16,902,511

Texas:
Demand		2,876,568		3,154,789		3,873,759		4,609,255		4,670,535
Interest-bearing:
Transaction		4,532,093		4,366,932		4,878,482		4,781,920		5,344,326
Savings		162,704		175,012		178,356		179,049		183,708
Time		377,424		321,774		356,538		343,015		333,038
Total interest-bearing		5,072,221		4,863,718		5,413,376		5,303,984		5,861,072
Total Texas		7,948,789		8,018,507		9,287,135		9,913,239		10,531,607

Colorado:
Demand		1,726,130		1,869,194		2,462,891		2,510,179		2,799,798
Interest-bearing:
Transaction		1,825,295		2,126,435		2,123,218		2,221,796		2,277,563
Savings		66,968		72,548		77,961		80,542		82,976
Time		148,840		128,583		135,043		151,064		160,795
Total interest-bearing		2,041,103		2,327,566		2,336,222		2,453,402		2,521,334
Total Colorado		3,767,233		4,196,760		4,799,113		4,963,581		5,321,132

New Mexico:
Demand		912,218		997,364		1,141,958		1,296,410		1,347,600
Interest-bearing:
Transaction		712,541		674,328		691,915		717,492		845,442
Savings		102,729		111,771		112,430		113,056		115,660
Time		179,548		137,875		133,625		142,856		148,532
Total interest-bearing		994,818		923,974		937,970		973,404		1,109,634
Total New Mexico		1,907,036		1,921,338		2,079,928		2,269,814		2,457,234

Arizona:
Demand		592,144		780,051		844,327		903,296		901,543
Interest-bearing:
Transaction		800,970		687,527		739,628		788,142		792,269
Savings		14,489		16,993		16,496		18,258		17,999
Time		31,248		27,755		24,846		26,704		28,774
Total interest-bearing		846,707		732,275		780,970		833,104		839,042
Total Arizona		1,438,851		1,512,326		1,625,297		1,736,400		1,740,585

Kansas/Missouri:
Demand		363,534		393,321		436,259		479,459		537,143
Interest-bearing:
Transaction		1,014,247		1,040,009		694,163		747,981		913,921
Savings		16,316		18,292		20,678		19,375		19,943
Time		16,176		13,061		12,963		13,258		13,962
Total interest-bearing		1,046,739		1,071,362		727,804		780,614		947,826
Total Kansas/Missouri		1,410,273		1,464,683		1,164,063		1,260,073		1,484,969

Arkansas:
Demand		38,818		42,312		50,180		43,111		41,084
Interest-bearing:
Transaction		43,301		71,158		56,181		123,273		130,300
Savings		3,195		3,228		3,083		3,098		3,125
Time		7,225		4,775		4,825		5,940		6,371
Total interest-bearing		53,721		79,161		64,089		132,311		139,796
Total Arkansas		92,539		121,473		114,269		175,422		180,880

TOTAL BOK FINANCIAL	$	33,294,843	$	32,580,747	$	34,480,705	$	36,415,915	$	38,618,918

NET INTEREST MARGIN TREND - UNAUDITED
BOK FINANCIAL CORPORATION

	Three Months Ended
	Jun. 30, 2023		Mar. 31, 2023		Dec. 31, 2022		Sep. 30, 2022		Jun. 30, 2022

TAX-EQUIVALENT ASSETS YIELDS
Interest-bearing cash and cash equivalents	5.41	%	4.28	%	4.06	%	1.87	%	0.83	%
Trading securities	4.50	%	4.52	%	3.70	%	2.72	%	2.00	%
Investment securities, net of allowance	1.44	%	1.46	%	1.46	%	1.42	%	2.35	%
Available for sale securities	3.00	%	2.87	%	2.54	%	2.21	%	1.84	%
Fair value option securities	5.07	%	5.17	%	4.40	%	2.98	%	2.92	%
Restricted equity securities	7.31	%	7.34	%	5.70	%	6.23	%	3.30	%
Residential mortgage loans held for sale	5.85	%	5.79	%	5.56	%	5.05	%	4.22	%
Loans	7.03	%	6.67	%	5.99	%	4.89	%	3.92	%
Allowance for loan losses
Loans, net of allowance	7.10	%	6.74	%	6.06	%	4.94	%	3.96	%
Total tax-equivalent yield on earning assets	5.29	%	5.06	%	4.53	%	3.71	%	2.96	%

COST OF INTEREST-BEARING LIABILITIES
Interest-bearing deposits:
Interest-bearing transaction	2.60	%	1.91	%	1.28	%	0.63	%	0.22	%
Savings	0.21	%	0.10	%	0.08	%	0.05	%	0.03	%
Time	3.27	%	1.95	%	1.25	%	0.93	%	0.68	%
Total interest-bearing deposits	2.56	%	1.83	%	1.22	%	0.63	%	0.24	%
Funds purchased and repurchase agreements	4.58	%	3.33	%	2.05	%	0.72	%	0.53	%
Other borrowings	5.12	%	4.73	%	4.08	%	2.33	%	1.01	%
Subordinated debt	6.79	%	6.40	%	6.16	%	5.07	%	4.50	%
Total cost of interest-bearing liabilities	3.27	%	2.43	%	1.57	%	0.76	%	0.31	%
Tax-equivalent net interest revenue spread	2.02	%	2.63	%	2.96	%	2.95	%	2.65	%
Effect of noninterest-bearing funding sources and other	0.98	%	0.82	%	0.58	%	0.29	%	0.11	%
Tax-equivalent net interest margin	3.00	%	3.45	%	3.54	%	3.24	%	2.76	%

Yield calculations are shown on a tax equivalent basis at the statutory federal and state rates for the periods presented. The yield calculations exclude security trades that have been recorded on trade date with no corresponding interest income and the unrealized gains and losses. The yield calculation also includes average loan balances for which the accrual of interest has been discontinued and are net of unearned income. Yield/rate calculations are generally based on the conventions that determine how interest income and expense is accrued.

CREDIT QUALITY INDICATORS - UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands, except ratios)

	Three Months Ended
	Jun. 30, 2023		Mar. 31, 2023		Dec. 31, 2022		Sep. 30, 2022		Jun. 30, 2022
Nonperforming assets:
Nonaccruing loans:
Commercial:
Healthcare	$	36,753	$	37,247	$	41,034	$	41,438	$	14,886
Services		4,541		8,097		16,228		27,315		15,259
Energy		20,037		127		1,399		4,164		20,924
General business		11,946		8,961		1,636		2,753		3,539
Total commercial		73,277		54,432		60,297		75,670		54,608

Commercial real estate		17,395		21,668		16,570		7,971		10,939

Loans to individuals:
Permanent mortgage		29,973		29,693		29,791		30,066		30,460
Permanent mortgage guaranteed by U.S. government agencies		11,473		14,302		15,005		16,957		18,000
Personal		133		200		134		136		132
Total loans to individuals		41,579		44,195		44,930		47,159		48,592

Total nonaccruing loans	$	132,251	$	120,295	$	121,797	$	130,800	$	114,139
Accruing renegotiated loans guaranteed by U.S. government agencies¹		-		-		163,535		176,022		196,420
Real estate and other repossessed assets		4,227		12,651		14,304		29,676		22,221
Total nonperforming assets	$	136,478	$	132,946	$	299,636	$	336,498	$	332,780
Total nonperforming assets excluding those guaranteed by U.S. government agencies	$	125,005	$	118,644	$	121,096	$	143,519	$	118,360

Accruing loans 90 days past due²	$	220	$	76	$	510	$	120	$	3

Gross charge-offs	$	8,049	$	3,667	$	17,807	$	1,766	$	1,368
Recoveries		(1,346)		(2,898)		(2,301)		(1,309)		(2,167)
Net charge-offs (recoveries)	$	6,703	$	769	$	15,506	$	457	$	(799)

Provision for loan losses	$	19,957	$	14,525	$	9,442	$	1,111	$	(6,158)
Provision for credit losses from off-balance sheet unfunded loan commitments		(3,003)		2,024		4,609		14,060		6,005
Provision for expected credit losses from mortgage banking activities		78		(488)		1,003		(66)		69
Provision for credit losses related to held-to maturity (investment) securities portfolio		(32)		(61)		(54)		(105)		84
Total provision for credit losses	$	17,000	$	16,000	$	15,000	$	15,000	$	-

Allowance for loan losses to period end loans		1.13%		1.10%		1.04%		1.11%		1.13%
Combined allowance for loan losses and accrual for off-balance sheet credit risk from unfunded loan commitments to period end loans		1.39%		1.37%		1.31%		1.37%		1.33%
Nonperforming assets to period end loans and repossessed assets		0.59%		0.58%		1.33%		1.54%		1.56%
Net charge-offs (annualized) to average loans		0.12%		0.01%		0.28%		0.01%		(0.02)%
Allowance for loan losses to nonaccruing loans²		217.52%		235.36%		220.71%		212.37%		250.80%
Combined allowance for loan losses and accrual for off-balance sheet credit risk from unfunded loan commitments to nonaccruing loans²		267.15%		294.74%		277.76%		261.83%		294.74%

¹ The Company adopted FASB Accounting Standards Update No. 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures, which eliminates designation of these loans as troubled debt restructurings effective January 1, 2023.

² Excludes residential mortgage loans guaranteed by agencies of the U.S. government.

SEGMENTS - UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands, except ratios)

	Three Months Ended						2Q23 vs 1Q23			2Q23 vs 2Q22
	Jun. 30, 2023		Mar. 31, 2023		Jun. 30, 2022		$ change		% change	$ change		% change
Commercial Banking
Net interest revenue	$	260,099	$	267,157	$	166,543	$	(7,058)	(2.6)	$	93,556	56.2%
Fees and commissions revenue		59,704		55,835		59,881		3,869	6.9%		(177)	(0.3)%
Combined net interest and fee revenue		319,803		322,992		226,424		(3,189)	(1.0)%		93,379	41.2%
Other operating expense		77,479		73,134		69,631		4,345	5.9%		7,848	11.3%
Corporate expense allocations		21,404		17,718		16,617		3,686	20.8%		4,787	28.8%
Net income		170,179		177,306		105,115		(7,127)	(4.0)%		65,064	61.9%

Average assets		28,170,869		28,162,934		29,269,712		7,935	-%		(1,098,843)	(3.8)%
Average loans		19,158,984		18,750,426		17,336,841		408,558	2.2%		1,822,143	10.5%
Average deposits		14,822,093		15,861,285		18,933,766		(1,039,192)	(6.6)%		(4,111,673)	(21.7)%

Consumer Banking
Net interest revenue	$	113,391	$	109,381	$	33,786	$	4,010	3.7%	$	79,605	235.6%
Fees and commissions revenue		32,361		30,581		30,101		1,780	5.8%		2,260	7.5%
Combined net interest and fee revenue		145,752		139,962		63,887		5,790	4.1%		81,865	128.1%
Other operating expense		52,340		50,198		52,660		2,142	4.3%		(320)	(0.6)%
Corporate expense allocations		12,318		11,622		10,120		696	6.0%		2,198	21.7%
Net income		60,332		50,683		1,239		9,649	19.0%		59,093	4,769.4%

Average assets		9,597,723		9,934,511		10,338,191		(336,788)	(3.4)%		(740,468)	(7.2)%
Average loans		1,762,568		1,747,237		1,669,830		15,331	0.9%		92,738	5.6%
Average deposits		7,986,674		8,248,541		8,876,469		(261,867)	(3.2)%		(889,795)	(10.0)%

Wealth Management
Net interest revenue	$	49,352	$	54,106	$	37,747	$	(4,754)	(8.8)%	$	11,605	30.7%
Fees and commissions revenue		123,050		108,911		86,771		14,139	13.0%		36,279	41.8%
Combined net interest and fee revenue		172,402		163,017		124,518		9,385	5.8%		47,884	38.5%
Other operating expense		84,859		82,039		76,393		2,820	3.4%		8,466	11.1%
Corporate expense allocations		12,574		12,360		12,503		214	1.7%		71	0.6%
Net income		57,317		52,447		27,287		4,870	9.3%		30,030	110.1%

Average assets		12,949,258		11,663,096		16,902,721		1,286,162	11.0%		(3,953,463)	(23.4)%
Average loans		2,230,906		2,201,622		2,157,771		29,284	1.3%		73,135	3.4%
Average deposits		7,544,143		7,432,413		8,482,785		111,730	1.5%		(938,642)	(11.1)%
Fiduciary assets		57,873,868		57,457,925		55,972,584		415,943	0.7%		1,901,284	3.4%
Assets under management or administration		103,618,940		102,310,126		95,981,289		1,308,814	1.3%		7,637,651	8.0%

SOURCE: BOK Financial Corp

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https://www.accesswire.com/770335/BOK-Financial-Corporation-Reports-Quarterly-Earnings-of-151-Million-or-227-Per-Share-in-the-Second-Quarter

BOK Financial Corporation Reports Quarterly Earnings of $151 Million or $2.27 Per Share in the Second Quarter