BOK Financial Reports Record Quarterly Earnings of $64 Million

http://www.businesswire.com/news/home/20100728005498/en

Operating Revenue Growth and Credit Quality Improvement Drive Results
TULSA, Okla.--(Business Wire)--
BOK Financial Corporation reported net income for the second quarter of 2010 of
$63.5 million or $0.93 per diluted share, up from $60.1 million or $0.88 per
diluted share in the first quarter of 2010 and $52.1 million or $0.77 per
diluted share for the second quarter of 2009. Net income for the six months
ended June 30, 2010 totaled $123.7 million or $1.81 per diluted share compared
to $107.1 million or $1.58 per diluted share for the six months ended June 30,
2009.

Net income for the first quarter of 2010 included a $6.5 million or $0.10 per
share day-one gain from the purchase of the rights to service $4.2 billion of
residential mortgage loans on favorable terms. Net income for the second quarter
of 2009 included a $7.7 million or $0.11 per share special assessment charge by
the FDIC.

"Operating revenue was especially strong in the second quarter of 2010," said
President and CEO Stan Lybarger. "Revenue for all significant fee income
business lines grew over the previous quarter. Additionally, continued
improvement in credit quality indicators allowed us to lower our quarterly
provision for credit losses for the third consecutive quarter."

Highlights of second quarter of 2010 included:

* Net interest revenue totaled $182.1 million compared to $182.6 million for the
first quarter of 2010. Net interest margin was 3.63% for the second quarter of
2010 and 3.68% for the first quarter of 2010.

* Fees and commissions revenue increased $12.9 million over the previous quarter
to $128.2 million. Brokerage and trading revenue was up $3.7 million and
mortgage banking revenue was up $3.5 million.

* Operating expenses, excluding changes in the fair value of mortgage servicing
rights, totaled $186.5 million, up $8.8 million over the prior quarter. Net
losses and operating expenses of repossessed assets increased $5.8 million.
* Combined reserves for credit losses totaled $315 million or 2.89% of
outstanding loans at June 30, 2010 and $314 million or 2.86% of outstanding
loans at March 31, 2010. Net loans charged off and provision for credit losses
were $35.6 million and $36.0 million respectively, for the second quarter of
2010 compared to $34.5 million and $42.1 million, respectively, for the first
quarter of 2010.
* Nonperforming assets totaled $461 million or 4.19% of outstanding loans and
repossessed assets at June 30, 2010 compared to $483 million or 4.36% of
outstanding loans and repossessed assets at March 31, 2010. Newly-identified
nonaccruing loans totaled $58 million for the second quarter of 2010 and $81
million for the first quarter of 2010.
* Available for sale securities totaled $9.2 billion at June 30, 2010, up $322
million since March 31, 2010. Other-than-temporary impairment charges on certain
privately-issued residential mortgage backed securities reduced pre-tax income
by $2.6 million during the second quarter of 2010 and $4.2 million during the
first quarter of 2010.
* Outstanding loan balances were $10.9 billion at June 30, 2010, down $89
million since March 31, 2010. Commercial real estate loans decreased $103
million. The outstanding balance of commercial loans and unfunded commercial
loans were largely unchanged for the quarter.
* Total period end deposits increased $560 million during the second quarter of
2010 to $16.1 billion due primarily to growth in interest-bearing transaction
and demand deposits.
* Tangible common equity ratio increased to 8.88% at June 30, 2010 from 8.46% at
March 31, 2010, due to an increase in the fair value of the securities portfolio
and 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"). We 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 11.90% at June 30, 2010 and 11.45% at March 31,
2010.
* The Company paid a cash dividend of $16.8 million or $0.25 per common share
during the second quarter of 2010. On July 27, 2010, the board of directors
approved a quarterly cash dividend of $0.25 per common share payable on or about
August 27, 2010 to shareholders of record as of August 13, 2010.

Net Interest Revenue

Net interest revenue totaled $182.1 million, down $461 thousand from the first
quarter of 2010. Net interest margin decreased over the previous quarter and
average earning assets were lower.

Net interest margin was 3.63% for the second quarter of 2010 and 3.68% for the
first quarter of 2010. The yield on average earning assets decreased 8 basis
points primarily due to an 18 basis point decrease in securities portfolio
yield. Cash flows from the securities portfolio are being reinvested at lower
current interest rates. The loan portfolio yield increased 2 basis points and
the cost of interest-bearing liabilities decreased 2 basis points.

Average earning assets decreased $40 million compared to the previous quarter.
Securities increased $155 million, primarily from a $79 million increase in
investment securities and a $69 million increase in mortgage trading securities.
Residential mortgage loans held for sale increased $46 million. Outstanding
loans decreased $216 million. Commercial, commercial real estate and consumer
loans decreased, partially offset by an increase in residential mortgage loans.

Average deposits increased $441 million compared to the previous quarter,
primarily due to a $324 million increase in interest-bearing transactions
accounts and a $175 million increase in demand deposits, partially offset by a
$71 million decrease in higher-costing average time deposits.

Fees and Commissions Revenue

Fees and commissions revenue increased to $128.2 million for the second quarter
of 2010 compared to $115.3 million for the first quarter of 2010. Brokerage and
trading revenue increased $3.7 million, mortgage banking revenue increased $3.5
million and transaction card revenue increased $2.6 million. Deposit service
charges and trust fees and commissions also were up over the prior quarter.

Brokerage and trading revenue increased on higher securities trading revenue and
investment banking activity. Interest rate volatility during the second quarter
increased trading volumes in mortgage-backed securities. Growth in mortgage loan
sales volume increased mortgage banking revenue $2.3 million compared to the
previous quarter. Mortgage loans funded were $541 million for the second quarter
of 2010 and $382 million in the first quarter of 2010. Mortgage servicing
revenue increased $1.2 million primarily as a result of mortgage servicing
rights purchased during the first quarter of 2010.

Transaction card revenues increased primarily due to a higher volume of merchant
discount fees and ATM network revenue. Deposit service charges were up $2.0
million over the previous quarter due largely to a new service charge imposed on
accounts that remain overdrawn for more than five days. Trust fees increased
$1.4 million primarily to the timing of tax service fees.

Changes in Federal banking regulations that became effective on July 1, 2010 are
expected to reduce overdraft fee revenue by $10 million to $15 million over the
second half of 2010. We continue to explore options to mitigate the potential
revenue decrease. In addition, the recently enacted Dodd-Frank Wall Street
Reform and Consumer Protection Act gave the Federal Reserve authority to limit
the amount of interchange fee that may be charged in an electronic debit
transaction. The effect of this legislation on fee income and operating expenses
cannot be accurately quantified at this time.

Operating Expenses

Total operating expenses were $205.9 million for the second quarter of 2010, up
$42.2 million over the prior quarter. Excluding changes in the fair value of
mortgage servicing rights, operating expenses totaled $186.5 million, up $8.8
million over the first quarter of 2010.

Personnel costs were flat with the prior quarter. Increases in cash-based
incentive compensation of $3.5 million and salaries and wages of $1.2 million
over the prior quarter were largely offset by a $4.1 million decrease in
deferred compensation expense which is directly linked to the market value of
Company stock and performance of other investments.

Repossessed asset expenses were $13.1 million, up $5.8 million over the previous
quarter. Net losses from sales and write-downs of repossessed property increased
$5.6 million during the second quarter of 2010. Operating expenses of
repossessed assets were up $202 thousand. Data processing costs also increased
$1.7 million over the prior quarter, driven primarily by increased transaction
card volumes.

Credit Quality

Nonperforming assets decreased $22 million during the second quarter of 2010 to
$461 million or 4.19% of outstanding loans and repossessed assets at June 30,
2010. Nonperforming assets at June 30, 2010 consisted of nonaccruing loans of
$320 million, renegotiated residential mortgage loans of $21 million (including
$18 million of residential mortgage loans guaranteed by U.S. government
agencies) and $120 million of real estate and other repossessed assets.
Nonaccruing loans decreased $24 million and repossessed assets decreased $2.0
million during the quarter.

Newly identified nonaccruing loans dropped to $58 million in the second quarter
of 2010 from $81 million in the previous quarter. The trend of net loans
charged-off remains stable. Consistent and sustained improvement will depend
upon the broader U.S. economic recovery.

Nonaccruing loans totaled $320 million or 2.94% of outstanding loans at June 30,
2010 compared to $344 million or 3.13% of outstanding loans at March 31, 2010.
During the second quarter of 2010, $58 million of new nonaccruing loans were
identified offset by $18 million in payments received, $38 million in
charge-offs and $19 million in foreclosures and repossessions. In addition, $5
million of nonaccruing loans were returned to accrual status during the second
quarter of 2010 based on our expectation of full payment.

Nonaccruing commercial loans totaled $83 million or 1.38% of total commercial
loans at June 30, 2010. Nonaccruing commercial loans were primarily composed of
$31 million or 1.86% of total services sector loans, $26 million or 1.42% of
total energy sector loans, $9 million or 1.06% of total healthcare sector loans
and $8 million or 3.61% of other commercial and industrial loans. Nonaccruing
commercial loans decreased $1.7 million since March 31, 2010 primarily related
to a decrease in services, healthcare, manufacturing and wholesale / retail
sector loans, partially offset by an increase in energy loans. Newly identified
nonaccruing commercial loans totaled $20 million, offset primarily by $8 million
in payments, $6 million in charge-offs and $5 million of nonaccruing commercial
loans returning to accrual status during the second quarter of 2010.

Nonaccruing commercial real estate loans totaled $194 million or 8.27% of
outstanding commercial real estate loans at June 30, 2010. Nonaccruing
commercial real estate loans attributed to our various markets included $57
million or 25% of total commercial real estate loans in Colorado, $56 million or
34% of total commercial real estate loans in Arizona, $31 million or 4.26% of
total commercial real estate loans in Texas and $24 million or 3.03% of total
commercial real estate loans in Oklahoma. Nonaccruing commercial real estate
loans continue to be largely concentrated in land development and residential
construction loans with $133 million or 24% of all land development and
construction loans nonaccruing at June 30, 2010. Total nonaccruing commercial
real estate loans decreased $26 million since March 31, 2010. Newly identified
nonaccruing commercial real estate loans totaled $19 million, offset by $19
million of charge-offs, $16 million of foreclosures and $10 million of cash
payments received.

Nonaccruing residential mortgage loans totaled $40 million or 2.18% of
outstanding residential mortgage loans at June 30, 2010, a $3.8 million increase
from March 31, 2010. Residential mortgage loans past due 90 days or more and
still accruing interest totaled $3.4 million. Residential mortgage loans past
due 30 to 89 days totaled $24 million, down $34 thousand from March 31, 2010.

The combined allowance for credit losses totaled $315 million or 2.89% of
outstanding loans and 98% of nonaccruing loans at June 30, 2010. The allowance
for loan losses was $300 million and the reserve for off-balance sheet credit
losses was $15 million. Approximately $90 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 reserve for loan loss attributed to them. The remaining $203
million of impaired loans have $20 million of the reserve for loan losses
attributed to them. During the second quarter of 2010, the Company recognized a
$36.0 million provision for credit losses. Net losses charged against the
allowance for loan losses totaled $35.6 million or 1.30% annualized of average
outstanding loans. Net loans charged off and provision for credit losses were
$34.5 million and $42.1 million, respectively, for the first quarter of 2010.

Real estate and other repossessed assets totaled $120 million at June 30, 2010
consisting of $58 million of 1-4 family residential properties and residential
land development properties, $37 million of developed commercial real estate
properties, $13 million of equity interest received in partial satisfaction of
debts, $8 million of undeveloped land, $3 million of equipment and $1 million of
automobiles. The distribution of real estate owned and other repossessed assets
among various markets included $44 million in Arizona, $25 million in Texas, $25
million in Oklahoma, $8 million in Arkansas, $7 million in Colorado, $7 million
in New Mexico, and $4 million in Kansas/Missouri. Real estate and other
repossessed assets decreased by $2.0 million during the second quarter due to
additions of $19 million offset by $9 million in sales and $12 million in
write-downs.

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 $311 million at June 30, 2010, down from $324 million at March 31,
2010. The loans are primarily to borrowers in our primary market areas,
including $219 million in Oklahoma, $33 million in Arkansas, $18 million in New
Mexico, $16 million in Kansas/Missouri and $14 million in Texas. At June 30,
2010, approximately 5% of these loans are nonperforming and 5% were past due 30
to 89 days. A separate reserve for credit risk of $14 million is available for
losses on these loans.

Securities and Derivatives

The fair value of available for sale securities totaled $9.2 billion at June 30,
2010, up $322 million since March 31, 2010. The available for sale portfolio
consisted primarily of residential mortgage-backed securities, including $8.2
billion fully backed by U.S. government agencies and $736 million privately
issued by publicly owned financial institutions. The portfolio does not hold any
securities backed by sub-prime mortgage loans, collateralized debt obligations
or collateralized loan obligations.

The portfolio of available for sale securities had net unrealized gains of $215
million at June 30, 2010 compared to $108 million at March 31, 2010. Net
unrealized gains on residential mortgage-backed securities issued by U.S.
government agencies increased $85 million to $315 million at June 30, 2010. Net
unrealized losses on privately-issued residential mortgage-backed securities
decreased $30 million to $114 million at June 30, 2010.

The amortized cost of privately issued residential mortgage-backed securities
totaled $849 million at June 30, 2010, down $60 million since March 31, 2010 due
primarily to cash received. Approximately $594 million of the privately issued
residential mortgage-backed securities were rated below investment grade by at
least one nationally-recognized rating agency. The aggregate unrealized losses
on privately-issued residential mortgage-backed securities rated below
investment grade totaled $106 million at June 30, 2010. Aggregate unrealized
losses on these same below investment grade securities were $124 million at
March 31, 2010. The amortized cost of privately issued residential
mortgage-backed securities rated below investment grade decreased $30 million
during the second quarter due primarily to cash received and a $2.6 million
other-than-temporary impairment charge against earnings in the second quarter
related to these securities due to further declines in projected cash flows as a
result of worsening trends in delinquencies and foreclosures.

The Company added $43 million to its investment (held-to-maturity) securities
portfolio during the second quarter of 2010 comprised primarily of qualifying
school construction bonds. These bonds were issued with the Company`s assistance
by several school districts in our Texas markets under a program authorized by
the U.S. Treasury Department. Interest on these bonds is primarily payable
through federal income tax credits.

The Company recognized $8.5 million of gains on the sale of $595 million of
available for sale securities in the second quarter of 2010 and $4.1 million of
gains on the sale of $286 million of available for sale securities in the first
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.

Three Months Ended
June 30, March 31, June 30,
2010 2010
2009

Gain (loss) on mortgage hedge derivative contracts $ 7,800 $ (659 ) $ -
Gain (loss) on mortgage hedge securities 14,631 448 (10,199 )
Total gain (loss) on financial instruments held as an economic hedge of mortgage servicing rights 22,431 (211 ) (10,199 )

Gain (loss) on change in fair value of mortgage servicing rights (19,458 ) 2,100 (1) 7,865
Gain (loss) on changes in fair value of mortgage servicing rights, net of economic hedges $ 2,973 $ 1,889 $ (2,334 )
(1) Excluding $11.8 million day-one gain on the purchase of mortgage servicing rights.

The Company has a portfolio of derivative contracts held for customer risk
management programs and internal interest rate risk management programs. At June
30, 2010, the fair value of all asset contracts totaled $335 million, net of
cash margin held by the Company. The largest net amount due from a single
counterparty, a subsidiary of an international energy company, to these
contracts at June 30 was $54 million. Letters of credit issued by independent
financial institutions offset $46 million of this amount.

Loans, Deposits and Capital

Outstanding loans at June 30, 2010 were $10.9 billion, down $89 million from
March 31, 2010. Commercial real estate loans were down $103 million across all
geographic regions. Outstanding commercial loan balances were largely unchanged.
Residential mortgage loans increased $37 million over March 31, 2010.

Commercial real estate loans totaled $2.3 billion at June 30, 2010. The decrease
in outstanding commercial real estate loans was primarily due to a $60 million
decrease in residential construction and land development loans, a $31 million
decrease in loans secured by multifamily properties and a $16 million decrease
in loans secured by retail facilities. The decrease in commercial real estate
loans was largely concentrated in the Texas and Arizona markets. Unfunded
commercial real estate loan commitments decreased $3.7 million to $152 million
as existing commitments continue to mature.

Outstanding commercial loans totaled $6.0 billion at June 30, 2010, down $3.2
million at March 31, 2010. During the second quarter of 2010, wholesale/retail
sector loans grew $91 million, other commercial and industrial loans were up $44
million and healthcare sector loans increased $28 million. These increases were
primarily offset by a $73 million decrease in services sector loans, a $47
million decrease in energy sector loans and a $38 million decrease in
manufacturing sector loans. Commercial loans in the Oklahoma market increased
$88 million during the quarter offset by a $40 million decrease in commercial
loans in the New Mexico market and a $33 million decrease in commercial loans in
the Texas market. Total unfunded commercial loan commitments decreased $20
million to $4.3 billion. Unfunded energy loan commitments increased $1.2 million
to $1.9 billion. All other unfunded commercial loan commitments decreased $21
million.

Residential mortgage loans increased $37 million from the prior quarter
including a $17 million increase in permanent mortgage loans and a $20 million
increase in home equity loans. Consumer loans decreased $19 million compared to
the prior quarter primarily due to a $58 million decrease in indirect automobile
loans related to the previously announced decision to curtail that business
during the first quarter of 2009 in favor of a customer-focused direct approach
to consumer lending, partially offset by a $39 million increase in other
consumer loans.

Total deposits increased $560 million during the second quarter and totaled
$16.1 billion at June 30, 2010. Interest-bearing transaction account balances
increased $394 million and demand deposit balances increased $135 million and
time deposit balances increased $19 million. Among the lines of business,
commercial deposits increased $299 million, wealth management deposits increased
$71 million and consumer deposits increased $6.8 million.

The Company and each of its subsidiary banks exceeded the regulatory definition
of well capitalized at June 30, 2010. The Company`s Tier 1 and total capital
ratios were 11.90% and 15.38%, respectively, at June 30, 2010. The Company`s
Tier 1 and total capital ratios were 11.45% and 15.09%, respectively, at March
31, 2010. In addition the Company`s tangible common equity ratio, a non-GAAP
measure, was 8.88% at June 30, 2010 and 8.46% at March 31, 2010.

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 Bank of
Albuquerque, N.A., Bank of Arizona, N.A., Bank of Arkansas, N.A., Bank of
Oklahoma, N.A., Bank of Texas, N.A., Colorado State Bank & Trust, N.A., Bank of
Kansas City, N.A., BOSC, Inc., Cavanal Hill Investment Management, Inc., the
TransFund electronic funds network, and Southwest Trust Company, N.A. 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
June 30, 2010 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.

BALANCE SHEETS
BOK FINANCIAL CORPORATION
(In thousands)
Period Ended
June 30, March 31, June 30,
2010 2010 2009
(Unaudited) (Unaudited) (Unaudited)
ASSETS
Cash and due from banks $ 834,972 $ 902,575 $ 470,553
Trading securities 62,159 115,641 84,548
Funds sold and resell agreements 17,554 29,410 112,128
Securities:
Available for sale 9,226,720 8,904,395 7,224,673
Investment 353,277 309,910 269,844
Mortgage trading securities 534,641 427,196 222,864
Total securities 10,114,638 9,641,501 7,717,381
Residential mortgage loans held for sale 227,574 178,362 326,363
Loans:
Commercial 6,011,528 6,014,739 6,715,851
Commercial real estate 2,340,909 2,443,848 2,611,693
Residential mortgage 1,834,246 1,797,711 1,833,975
Consumer 696,034 714,926 908,409
Total loans 10,882,717 10,971,224 12,069,928
Less reserve for loan losses (299,489 ) (299,717 ) (263,309 )
Loans, net of reserve 10,583,228 10,671,507 11,806,619
Premises and equipment, net 277,225 279,152 286,295
Accrued revenue receivable 126,149 107,300 118,718
Goodwill 335,601 335,601 335,829
Intangible assets, net 15,991 17,315 22,009
Mortgage servicing rights, net 98,942 119,066 67,413
Real estate and other repossessed assets 119,908 121,933 75,243
Bankers' acceptances 2,885 2,945 8,260
Derivative contracts 334,576 325,364 462,971
Cash surrender value of bank-owned life insurance 251,857 248,927 241,792
Receivable on unsettled securities trades - - 237,200
Other assets 333,469 405,377 394,997
TOTAL ASSETS $ 23,736,728 $ 23,501,976 $ 22,768,319

LIABILITIES AND EQUITY
Deposits:
Demand $ 3,735,289 $ 3,599,981 $ 2,825,179
Interest-bearing transaction 8,488,159 8,093,725 7,091,471
Savings 190,964 179,554 166,806
Time 3,673,088 3,654,256 4,571,933
Total deposits 16,087,500 15,527,516 14,655,389
Funds purchased and repurchase agreements 2,262,475 2,638,263 2,798,274
Other borrowings 1,708,295 1,909,934 2,152,177
Subordinated debentures 398,617 398,578 398,465
Accrued interest, taxes, and expense 91,471 117,179 119,003
Bankers' acceptances 2,885 2,945 8,260
Due on unsettled securities trades 266,470 103,186 -
Derivative contracts 299,851 311,685 445,463
Other liabilities 169,137 159,973 125,126
TOTAL LIABILITIES 21,286,701 21,169,259 20,702,157
Shareholders' equity:
Capital, surplus and retained earnings 2,314,967 2,264,786 2,149,020
Accumulated other comprehensive income (loss) 113,771 47,657 (98,448 )
TOTAL SHAREHOLDERS' EQUITY 2,428,738 2,312,443 2,050,572
Non-controlling interest 21,289 20,274 15,590
TOTAL EQUITY 2,450,027 2,332,717 2,066,162
TOTAL LIABILITIES AND EQUITY $ 23,736,728 $ 23,501,976 $ 22,768,319

AVERAGE BALANCE SHEETS - UNAUDITED
BOK FINANCIAL CORPORATION
(In thousands)
Quarter Ended
June 30, March 31, December 31, September 30, June 30,
2010 2010 2009 2009 2009

ASSETS
Trading securities $ 58,722 $ 70,979 $ 68,027 $ 64,763 $ 112,960
Funds sold and resell agreements 22,776 32,363 30,358 67,032 29,277
Securities:
Available for sale 8,892,175 8,884,678 8,583,032 7,782,254 7,242,931
Investment 335,117 256,003 238,479 235,967 271,068
Mortgage trading securities 435,693 366,845 340,456 267,591 365,434
Total securities 9,662,985 9,507,526 9,161,967 8,285,812 7,879,433
Residential mortgage loans held for sale 183,489 137,404 194,760 176,403 286,077
Loans:
Commercial 6,060,642 6,132,889 6,325,580 6,521,438 6,901,057
Commercial real estate 2,359,958 2,492,535 2,538,737 2,621,176 2,684,020
Residential mortgage 1,848,692 1,833,602 1,827,339 1,873,457 1,884,023
Consumer 702,174 728,294 801,040 871,347 933,950
Total loans 10,971,466 11,187,320 11,492,696 11,887,418 12,403,050
Less allowance for loan losses (312,595 ) (309,194 ) (298,157 ) (281,289 ) (273,335 )
Total loans, net 10,658,871 10,878,126 11,194,539 11,606,129 12,129,715
Total earning assets 20,586,843 20,626,398 20,649,651 20,200,139 20,437,462
Cash and due from banks 903,555 1,089,971 1,095,087 828,965 638,791
Cash surrender value of bank-owned life insurance 249,914 247,415 245,460 242,715 240,199
Derivative contracts 288,853 300,865 352,143 401,887 493,448
Other assets 1,415,642 1,448,098 1,353,393 1,376,828 1,264,131
TOTAL ASSETS $ 23,444,807 $ 23,712,747 $ 23,695,734 $ 23,050,534 $ 23,074,031

LIABILITIES AND EQUITY
Deposits:
Demand $ 3,660,910 $ 3,485,504 $ 3,666,663 $ 3,392,578 $ 3,183,338
Interest-bearing transaction 8,287,296 7,963,752 7,734,678 7,162,477 6,854,003
Savings 184,376 170,990 167,572 167,677 167,813
Time 3,701,167 3,772,295 4,002,337 4,404,854 5,123,947
Total deposits 15,833,749 15,392,541 15,571,250 15,127,586 15,329,101
Funds purchased and repurchase agreements 2,491,084 2,575,286 2,173,476 2,284,985 2,316,990
Other borrowings 1,619,745 2,249,470 2,380,938 2,173,103 1,951,699
Subordinated debentures 398,598 398,559 398,522 398,484 398,456
Derivative contracts 243,089 276,696 318,809 392,277 536,232
Other liabilities 479,813 521,567 605,994 539,129 534,889
TOTAL LIABILITIES 21,066,078 21,414,119 21,448,989 20,915,564 21,067,367
Total equity 2,378,729 2,298,628 2,246,745 2,134,970 2,006,664
TOTAL LIABILITIES AND EQUITY $ 23,444,807 $ 23,712,747 $ 23,695,734 $ 23,050,534 $ 23,074,031

STATEMENTS OF EARNINGS - UNAUDITED
BOK FINANCIAL CORPORATION
(In thousands, except per share data)
Quarter Ended Six Months Ended
June 30, June 30,
2010 2009 2010 2009

Interest revenue $ 217,597 $ 230,685 $ 436,967 $ 463,912
Interest expense 35,484 55,105 72,280 118,487
Net interest revenue 182,113 175,580 364,687 345,425
Provision for credit losses 36,040 47,120 78,140 92,160
Net interest revenue after provision for credit losses 146,073 128,460 286,547 253,265

Other operating revenue
Brokerage and trading revenue 24,754 21,794 45,789 46,493
Transaction card revenue 28,263 27,533 53,950 52,961
Trust fees and commissions 17,737 16,860 34,057 33,370
Deposit service charges and fees 28,797 28,421 55,589 55,826
Mortgage banking revenue 18,335 19,882 33,206 38,380
Bank-owned life insurance 2,908 2,418 5,880 4,735
Margin asset fees 69 68 105 135
Other revenue 7,305 6,124 14,907 12,707
Total fees and commissions 128,168 123,100 243,483 244,607
Gain (loss) on other assets 1,545 973 155 1,116
Gain (loss) on derivatives, net 7,272 (1,037 ) 6,931 (2,701 )
Gain (loss) on securities, net 23,100 6,471 27,624 26,579
Total other-than-temporary impairment losses (10,959 ) (1,263 ) (20,667 ) (55,631 )
Portion of loss recognized in other comprehensive income (8,313 ) 279 (13,796 ) (39,087 )
Net impairment losses recognized in earnings (2,646 ) (1,542 ) (6,871 ) (16,544 )
Total other operating revenue 157,439 127,965 271,322 253,057

Other operating expense
Personnel 97,054 96,191 193,878 188,818
Business promotion 4,945 4,569 8,923 8,997
Professional fees and services 6,668 7,363 13,069 13,875
Net occupancy and equipment 15,691 15,973 31,202 32,231
Insurance 5,596 5,898 12,129 11,536
FDIC special assessment - 11,773 - 11,773
Data processing and communications 21,940 20,452 42,249 39,758
Printing, postage and supplies 3,525 4,072 6,847 8,643
Net (gains) losses and operating expenses of repossessed assets 13,067 996 20,287 2,802
Amortization of intangible assets 1,323 1,686 2,647 3,372
Mortgage banking costs 10,380 9,336 19,647 16,803
Change in fair value of mortgage servicing rights 19,458 (7,865 ) 5,526 (9,820 )
Other expense 6,265 5,326 13,240 12,776
Total other operating expense 205,912 175,770 369,644 341,564

Net income before taxes 97,600 80,655 188,225 164,758
Federal and state income taxes 32,042 28,315 62,325 57,153

Net income 65,558 52,340 125,900 107,605
Net income attributable to non-controlling interest 2,036 225 2,245 458

Net income attributable to BOK Financial Corporation $ 63,522 $ 52,115 $ 123,655 $ 107,147

Average shares outstanding:
Basic 67,605,807 67,344,577 67,599,349 67,330,590
Diluted 67,880,587 67,448,029 67,835,606 67,417,874

Net income per share:
Basic $ 0.93 $ 0.77 $ 1.82 $ 1.59
Diluted $ 0.93 $ 0.77 $ 1.81 $ 1.58

FINANCIAL HIGHLIGHTS - UNAUDITED
BOK FINANCIAL CORPORATION
(In thousands, except ratio and share data)
Quarter Ended
June 30, March 31, December 31, September 30, June 30,
2010 2010 2009 2009 2009

Capital:
Period-end shareholders' equity $ 2,428,738 $ 2,312,443 $ 2,205,813 $ 2,185,013 $ 2,050,572
Risk weighted assets $ 16,611,662 $ 16,787,566 $ 17,275,808 $ 17,515,147 $ 18,338,540
Risk-based capital ratios:
Tier 1 11.90 % 11.45 % 10.86 % 10.56 % 9.86 %
Total capital 15.38 % 15.09 % 14.43 % 14.10 % 13.34 %
Leverage ratio 8.57 % 8.25 % 8.05 % 8.16 % 7.97 %
Tangible common equity ratio (A) 8.88 % 8.46 % 7.99 % 7.78 % 7.55 %
Tier 1 common equity ratio (B) 11.77 % 11.33 % 10.75 % 10.45 % 9.77 %

Common stock:
Book value per share $ 35.67 $ 33.99 $ 32.53 $ 32.27 $ 30.30

Market value per share:
High $ 55.60 $ 53.11 $ 47.91 $ 48.10 $ 43.02
Low $ 47.45 $ 45.43 $ 41.87 $ 34.81 $ 34.46

Cash dividends paid $ 16,834 $ 16,304 $ 16,201 $ 16,280 $ 16,184
Dividend payout ratio 26.50 % 27.11 % 37.88 % 32.14 % 31.05 %
Shares outstanding, net 68,080,797 68,042,918 67,802,807 67,707,547 67,674,442
Stock buy-back program:
Shares repurchased - - - - -
Amount $ - $ - $ - $ - $ -
Average price per share $ - $ - $ - $ - $ -

Performance ratios (quarter annualized):
Return on average assets 1.09 % 1.03 % 0.72 % 0.87 % 0.91 %
Return on average equity 10.71 % 10.61 % 7.55 % 9.41 % 10.42 %
Net interest margin 3.63 % 3.68 % 3.64 % 3.63 % 3.55 %
Efficiency ratio 59.56 % 59.11 % 60.02 % 58.09 % 61.02 %

Other data:
Gain (loss) on economic hedge of mortgage servicing rights $ 22,431 $ (211 ) $ (4,440 ) $ 3,560 $ (10,199 )
Trust assets $ 29,825,608 $ 30,739,254 $ 30,385,365 $ 29,945,585 $ 29,288,041
Mortgage servicing portfolio $ 11,057,385 $ 10,895,182 $ 6,603,132 $ 6,339,764 $ 6,082,501
Mortgage loan fundings during the quarter $ 540,741 $ 382,028 $ 560,254 $ 536,173 $ 1,023,272
Mortgage loan refinances to total fundings 34.00 % 55.00 % 47.00 % 49.00 % 71.00 %
Tax equivalent adjustment $ 2,327 $ 2,416 $ 2,196 $ 1,982 $ 1,791
Unrealized gain (loss) on available for sale securities $ 215,438 $ 107,754 $ 13,226 $ 30,898 $ (128,492 )

(A) Tangible common equity ratio is a non-GAAP measure.
Reconciliation to a GAAP financial measure follows:
Total shareholders' equity $ 2,428,738 $ 2,312,443 $ 2,205,813 $ 2,185,013 $ 2,050,572
Less: intangible assets, net (351,592 ) (352,916 ) (354,239 ) (356,152 ) (357,838 )
Tangible common equity $ 2,077,146 $ 1,959,527 $ 1,851,574 $ 1,828,861 $ 1,692,734

Total assets $ 23,736,728 $ 23,501,976 $ 23,516,831 $ 23,876,841 $ 22,768,319
Less: intangible assets, net (351,592 ) (352,916 ) (354,239 ) (356,152 ) (357,838 )
$ 23,385,136 $ 23,149,060 $ 23,162,592 $ 23,520,689 $ 22,410,481

Tangible common equity ratio 8.88 % 8.46 % 7.99 % 7.78 % 7.55 %

(B) Tier 1 common equity ratio is a non-GAAP measure.
Reconciliation to a GAAP financial measure follows:
Tier 1 capital $ 1,976,588 $ 1,922,783 $ 1,876,778 $ 1,849,254 $ 1,807,705
Less: non-controlling interest (21,289 ) (20,274 ) (19,561 ) (18,981 ) (15,590 )
Tier 1 common equity $ 1,955,299 $ 1,902,509 $ 1,857,217 $ 1,830,273 $ 1,792,115

Risk weighted assets $ 16,611,662 $ 16,787,566 $ 17,275,808 $ 17,515,147 $ 18,338,540

Tier 1 common equity ratio 11.77 % 11.33 % 10.75 % 10.45 % 9.77 %

QUARTERLY EARNINGS TRENDS - UNAUDITED
BOK FINANCIAL CORPORATION
(In thousands, except ratio and per share data)
Quarter Ended
June 30, March 31, December 31, September 30, June 30,
2010 2010 2009 2009 2009

Interest revenue $ 217,597 $ 219,370 $ 224,411 $ 226,246 $ 230,685
Interest expense 35,484 36,796 39,933 45,785 55,105
Net interest revenue 182,113 182,574 184,478 180,461 175,580
Provision for credit losses 36,040 42,100 48,620 55,120 47,120
Net interest revenue after provision for credit losses 146,073 140,474 135,858 125,341 128,460

Other operating revenue
Brokerage and trading revenue 24,754 21,035 20,240 24,944 21,794
Transaction card revenue 28,263 25,687 26,292 26,264 27,533
Trust fees and commissions 17,737 16,320 16,492 16,315 16,860
Deposit service charges and fees 28,797 26,792 29,501 30,464 28,421
Mortgage banking revenue 18,335 14,871 13,403 13,197 19,882
Bank-owned life insurance 2,908 2,972 2,870 2,634 2,418
Margin asset fees 69 36 50 51 68
Other revenue 7,305 7,602 7,101 6,087 6,124
Total fees and commissions 128,168 115,315 115,949 119,956 123,100
Gain (loss) on other assets 1,545 (1,390 ) (205 ) 3,223 973
Gain (loss) on derivatives, net 7,272 (341 ) (370 ) (294 ) (1,037 )
Gain (loss) on securities, net 23,100 4,524 7,277 12,266 6,471
Total other-than-temporary impairment losses (10,959 ) (9,708 ) (67,390 ) (6,133 ) (1,263 )
Portion of loss recognized in other comprehensive income (8,313 ) (5,483 ) (52,902 ) (2,752 ) 279
Net impairment losses recognized in earnings (2,646 ) (4,225 ) (14,488 ) (3,381 ) (1,542 )
Total other operating revenue 157,439 113,883 108,163 131,770 127,965

Other operating expense
Personnel 97,054 96,824 93,687 98,012 96,191
Business promotion 4,945 3,978 5,758 4,827 4,569
Professional fees and services 6,668 6,401 8,813 7,555 7,363
Net occupancy and equipment 15,691 15,511 17,600 15,884 15,973
Insurance 5,596 6,533 6,412 6,092 5,898
FDIC special assessment - - - - 11,773
Data processing and communications 21,940 20,309 21,121 20,413 20,452
Printing, postage and supplies 3,525 3,322 3,601 3,716 4,072
Net (gains) losses and operating expenses of repossessed assets 13,067 7,220 5,101 3,497 996
Amortization of intangible assets 1,323 1,324 1,912 1,686 1,686
Mortgage banking costs 10,380 9,267 11,436 8,065 9,336
Change in fair value of mortgage servicing rights 19,458 (13,932 ) (5,285 ) 2,981 (7,865 )
Other expense 6,265 6,975 6,281 6,004 5,326
Total other operating expense 205,912 163,732 176,437 178,732 175,770

Net income before taxes 97,600 90,625 67,584 78,379 80,655
Federal and state income taxes 32,042 30,283 24,780 24,772 28,315

Net income 65,558 60,342 42,804 53,607 52,340
Net income attributable to non-controlling interest 2,036 209 33 2,947 225

Net income attributable to BOK Financial Corporation $ 63,522 $ 60,133 $ 42,771 $ 50,660 $ 52,115

Average shares outstanding:
Basic 67,605,807 67,592,315 67,446,326 67,392,059 67,344,577
Diluted 67,880,587 67,790,049 67,600,344 67,513,700 67,448,029

Net income per share:
Basic $ 0.93 $ 0.88 $ 0.63 $ 0.75 $ 0.77
Diluted $ 0.93 $ 0.88 $ 0.63 $ 0.75 $ 0.77

LOANS BY PRINCIPAL MARKET AREA - UNAUDITED
BOK FINANCIAL CORPORATION
(In thousands)
Quarter Ended
June 30, March 31, December 31, September 30, June 30,
2010 2010 2009 2009 2009

Oklahoma:
Commercial $ 2,704,460 $ 2,616,086 $ 2,649,252 $ 2,738,217 $ 2,918,478
Commercial real estate 784,549 787,543 820,578 815,362 855,742
Residential mortgage 1,257,497 1,235,788 1,228,822 1,245,917 1,249,104
Consumer 395,274 404,570 451,829 483,369 521,431
Total Oklahoma 5,141,780 5,043,987 5,150,481 5,282,865 5,544,755

Texas:
Commercial 1,902,934 1,935,819 2,017,081 2,075,379 2,182,756
Commercial real estate 731,399 769,682 735,338 734,742 741,199
Residential mortgage 308,496 307,643 313,113 335,797 345,780
Consumer 160,377 160,449 170,062 188,374 196,752
Total Texas 3,103,206 3,173,593 3,235,594 3,334,292 3,466,487

New Mexico:
Commercial 286,555 326,203 341,802 344,910 380,378
Commercial real estate 294,425 298,197 305,061 344,988 313,190
Residential mortgage 87,549 85,629 86,415 88,271 90,944
Consumer 20,542 16,713 17,473 18,176 18,826
Total New Mexico 689,071 726,742 750,751 796,345 803,338

Arkansas:
Commercial 89,376 86,566 103,443 99,559 97,676
Commercial real estate 114,576 129,125 132,436 128,984 133,026
Residential mortgage 15,823 17,071 16,849 19,128 19,015
Consumer 96,189 110,123 124,265 136,461 152,620
Total Arkansas 315,964 342,885 376,993 384,132 402,337

Colorado:
Commercial 484,188 495,916 545,724 569,549 595,858
Commercial real estate 225,758 228,998 239,970 249,879 269,923
Residential mortgage 69,325 68,049 66,504 68,667 58,557
Consumer 18,548 17,991 17,362 18,272 14,097
Total Colorado 797,819 810,954 869,560 906,367 938,435

Arizona:
Commercial 204,326 209,019 199,143 219,330 215,540
Commercial real estate 163,374 202,192 227,249 257,169 262,607
Residential mortgage 78,890 68,015 65,047 57,304 58,265
Consumer 2,971 3,068 3,461 4,826 3,229
Total Arizona 449,561 482,294 494,900 538,629 539,641

Kansas:
Commercial 339,689 345,130 351,395 323,112 325,165
Commercial real estate 26,828 28,111 30,802 29,211 36,006
Residential mortgage 16,666 15,516 16,872 14,740 12,310
Consumer 2,133 2,012 2,350 1,871 1,454
Total Kansas 385,316 390,769 401,419 368,934 374,935

TOTAL BOK FINANCIAL $ 10,882,717 $ 10,971,224 $ 11,279,698 $ 11,611,564 $ 12,069,928

DEPOSITS BY PRINCIPAL MARKET AREA - UNAUDITED
BOK FINANCIAL CORPORATION
(In thousands)
Quarter Ended
June 30, March 31, December 31, September 30, June 30,
2010 2010 2009 2009 2009

Oklahoma:
Demand $ 2,101,994 $ 2,062,084 $ 2,068,908 $ 1,895,980 $ 1,451,057
Interest-bearing:
Transaction 5,562,287 5,237,983 5,134,902 4,566,058 4,374,089
Savings 102,590 101,708 93,006 93,443 94,048
Time 1,442,525 1,360,756 1,397,240 1,765,980 2,033,312
Total interest-bearing 7,107,402 6,700,447 6,625,148 6,425,481 6,501,449
Total Oklahoma 9,209,396 8,762,531 8,694,056 8,321,461 7,952,506

Texas:
Demand 1,150,495 1,068,656 1,108,401 1,138,794 1,002,266
Interest-bearing:
Transaction 1,674,519 1,675,759 1,748,319 1,716,460 1,660,642
Savings 36,814 37,175 35,129 35,724 33,992
Time 1,003,936 1,043,813 1,100,602 1,007,579 1,035,919
Total interest-bearing 2,715,269 2,756,747 2,884,050 2,759,763 2,730,553
Total Texas 3,865,764 3,825,403 3,992,451 3,898,557 3,732,819

New Mexico:
Demand 223,869 222,685 209,090 216,330 175,033
Interest-bearing:
Transaction 491,708 480,189 444,247 424,528 434,498
Savings 30,231 20,036 17,563 18,039 18,255
Time 476,155 495,243 510,202 511,507 542,388
Total interest-bearing 998,094 995,468 972,012 954,074 995,141
Total New Mexico 1,221,963 1,218,153 1,181,102 1,170,404 1,170,174

Arkansas:
Demand 14,919 17,599 21,526 19,077 17,261
Interest-bearing:
Transaction 108,104 61,398 50,879 85,061 73,972
Savings 1,288 1,266 1,346 1,131 1,031
Time 119,472 105,794 101,839 137,109 162,505
Total interest-bearing 228,864 168,458 154,064 223,301 237,508
Total Arkansas 243,783 186,057 175,590 242,378 254,769

Colorado:
Demand 143,783 136,048 146,929 121,555 113,895
Interest-bearing:
Transaction 441,085 456,508 448,846 477,418 445,521
Savings 18,869 18,118 17,802 18,518 18,144
Time 497,538 509,410 525,844 520,906 579,709
Total interest-bearing 957,492 984,036 992,492 1,016,842 1,043,374
Total Colorado 1,101,275 1,120,084 1,139,421 1,138,397 1,157,269

Arizona:
Demand 71,711 61,183 68,651 54,046 55,975
Interest-bearing:
Transaction 94,033 81,851 81,909 95,242 89,842
Savings 1,062 1,105 958 971 1,282
Time 63,643 64,592 60,768 56,809 59,775
Total interest-bearing 158,738 147,548 143,635 153,022 150,899
Total Arizona 230,449 208,731 212,286 207,068 206,874

Kansas / Missouri:
Demand 28,518 31,726 30,339 16,406 9,692
Interest-bearing:
Transaction 116,423 100,037 21,337 15,682 12,907
Savings 110 146 148 70 54
Time 69,819 74,648 71,498 84,923 158,325
Total interest-bearing 186,352 174,831 92,983 100,675 171,286
Total Kansas / Missouri 214,870 206,557 123,322 117,081 180,978

TOTAL BOK FINANCIAL $ 16,087,500 $ 15,527,516 $ 15,518,228 $ 15,095,346 $ 14,655,389

NET INTEREST MARGIN TREND - UNAUDITED
BOK FINANCIAL CORPORATION
Quarter Ended
June 30, March 31, December 31, September 30, June 30,
2010 2010 2009 2009 2009
TAX-EQUIVALENT ASSETS YIELDS
Trading securities 4.51% 4.53% 5.41% 4.72% 3.49%
Funds sold and resell agreements 0.14% 0.10% 0.21% 0.11% 0.19%
Securities:
Taxable 3.56% 3.73% 3.83% 4.18% 4.50%
Tax-exempt 4.89% 5.28% 5.16% 5.03% 5.69%
Total securities 3.60% 3.78% 3.87% 4.21% 4.54%
Residential mortgage loans held for sale 4.76% 5.16% 4.71% 4.94% 4.51%
Loans 4.83% 4.81% 4.74% 4.67% 4.64%
Less reserve for loan losses - - - - -
Loans, net of reserve 4.97% 4.95% 4.86% 4.78% 4.75%
Total tax-equivalent yield on earning assets 4.33% 4.41% 4.42% 4.54% 4.65%
COST OF INTEREST-BEARING LIABILITIES
Interest-bearing deposits:
Interest-bearing transaction 0.49% 0.52% 0.57% 0.65% 0.78%
Savings 0.40% 0.42% 0.47% 0.48% 0.25%
Time 1.74% 1.86% 1.95% 2.20% 2.48%
Total interest-bearing deposits 0.87% 0.94% 1.03% 1.23% 1.49%
Funds purchased and repurchase agreements 0.36% 0.32% 0.30% 0.32% 0.35%
Other borrowings 0.35% 0.29% 0.29% 0.38% 0.49%
Subordinated debt 5.57% 5.66% 5.52% 5.53% 5.67%
Total cost of interest-bearing liabilities 0.85% 0.87% 0.94% 1.09% 1.31%
Tax-equivalent net interest revenue spread 3.48% 3.54% 3.48% 3.45% 3.34%
Effect of noninterest-bearing funding sources and other 0.15% 0.14% 0.16% 0.18% 0.21%
Tax-equivalent net interest margin 3.63% 3.68% 3.64% 3.63% 3.55%

CREDIT QUALITY INDICATORS
BOK FINANCIAL CORPORATION
(In thousands, except ratios)

Quarter Ended
June 30, March 31, December 31, September 30, June 30,
2010 2010 2009 2009 2009

Nonperforming assets:
Nonaccruing loans (B):
Commercial $ 82,775 $ 84,491 $ 101,384 $ 128,266 $ 126,510
Commercial real estate 193,698 219,639 204,924 212,418 189,586
Residential mortgage 40,033 36,281 29,989 38,220 35,860
Consumer 3,188 3,164 3,058 3,897 1,037
Total nonaccruing loans $ 319,694 $ 343,575 $ 339,355 $ 382,801 $ 352,993
Renegotiated loans (A) 21,327 17,763 15,906 17,426 17,479
Real estate and other repossessed assets 119,908 121,933 129,034 89,507 75,243
Total nonperforming assets $ 460,929 $ 483,271 $ 484,295 $ 489,734 $ 445,715

Nonaccruing loans by principal market (B):
Oklahoma $ 93,898 $ 102,231 $ 83,176 $ 112,610 $ 108,490
Texas 49,695 58,067 66,892 65,911 51,582
New Mexico 26,956 23,021 26,693 35,541 29,640
Arkansas 10,933 14,652 13,820 5,911 3,888
Colorado 66,040 66,883 60,082 50,432 45,794
Arizona 72,111 78,656 84,559 108,161 106,076
Kansas 61 65 4,133 4,235 7,523
Total nonaccruing loans $ 319,694 $ 343,575 $ 339,355 $ 382,801 $ 352,993

Nonaccruing loans by loan portfolio sector (B):
Commercial:
Energy $ 26,259 $ 17,182 $ 22,692 $ 48,992 $ 53,842
Manufacturing 3,237 4,834 15,765 17,429 16,975
Wholesale / retail 5,561 6,629 12,057 7,623 10,983
Agriculture 58 65 65 98 105
Services 31,062 35,535 30,926 30,094 24,713
Healthcare 8,568 10,538 13,103 13,758 14,222
Other 8,030 9,708 6,776 10,272 5,670
Total commercial 82,775 84,491 101,384 128,266 126,510
Commercial real estate:
Land development and construction 132,686 140,508 109,779 113,868 97,425
Retail 4,967 14,843 26,236 22,254 17,474
Office 24,764 26,660 25,861 31,406 27,685
Multifamily 7,253 15,725 26,540 28,223 27,827
Industrial 4,223 - 279 527 527
Other commercial real estate 19,805 21,903 16,229 16,140 18,648
Total commercial real estate 193,698 219,639 204,924 212,418 189,586
Residential mortgage:
Permanent mortgage 37,978 34,134 28,314 36,431 34,149
Home equity 2,055 2,147 1,675 1,789 1,711
Total residential mortgage 40,033 36,281 29,989 38,220 35,860
Consumer 3,188 3,164 3,058 3,897 1,037
Total nonaccruing loans $ 319,694 $ 343,575 $ 339,355 $ 382,801 $ 352,993

Performing loans 90 days past due $ 12,474 $ 12,915 $ 10,308 $ 24,238 $ 32,479

Gross charge-offs $ 38,168 $ 40,328 $ 37,974 $ 38,581 $ 37,409
Recoveries 2,614 5,850 2,950 2,594 2,472
Net charge-offs $ 35,554 $ 34,478 $ 35,024 $ 35,987 $ 34,937

Provision for credit losses $ 36,040 $ 42,100 $ 48,620 $ 55,120 $ 47,120

Reserve for loan losses to period end loans 2.75 % 2.73 % 2.59 % 2.42 % 2.18 %
Combined reserves for credit losses to period end loans 2.89 % 2.86 % 2.72 % 2.52 % 2.27 %
Nonperforming assets to period end loans and repossessed assets 4.19 % 4.36 % 4.24 % 4.19 % 3.67 %
Net charge-offs (annualized) to average loans 1.30 % 1.23 % 1.22 % 1.21 % 1.13 %
Reserve for loan losses to nonaccruing loans 93.68 % 87.23 % 86.07 % 73.38 % 74.59 %
Combined reserves for credit losses to nonaccruing loans 98.40 % 91.42 % 90.31 % 76.51 % 77.55 %

(A) includes residential mortgage loans guaranteed by agencies of the U.S. government. These loans have been modified to extend payment terms and/or reduce interest rates to current market. $ 17,598 $ 14,083 $ 12,799 $ 11,234 $ 11,079
(B) includes loans subject to First United Bank sellers escrow $ - $ 4,281 $ 4,311 $ 4,173 $ 8,305

BOK Financial Corporation
Steven Nell, Chief Financial Officer, 918-588-6752
or
Jesse Boudiette, Corporate Communications Director, 918-588-6532

Copyright Business Wire 2010