BOK Financial Corporation Reports Quarterly Earnings of $134 million or $2.04 Per Share in the Third Quarter

Rhea-AI Summary

CEO Stacy Kymes reports solid earnings for the third quarter of 2023, driven by a diverse business model and focus on growth opportunities. Net income was $134.5 million, down from $151.3 million in the previous quarter. Net interest revenue decreased to $300.9 million, while fees and commissions revenue decreased to $197.9 million. Operating expenses increased to $324.3 million. The company repurchased 700,500 shares of common stock. Commercial Banking, Consumer Banking, and Wealth Management segments all contributed to net income.

Positive

• Solid earnings for Q3 2023 driven by diverse business model and growth opportunities
• Increased loans by almost 9% over previous year
• Core commercial and industrial loans up 8% from last year
• Repurchased 700,500 shares of common stock

Negative

• Net income decreased to $134.5 million from $151.3 million in previous quarter
• Net interest revenue decreased to $300.9 million
• Fees and commissions revenue decreased to $197.9 million
• Operating expenses increased to $324.3 million

TULSA, OK / ACCESSWIRE / October 25, 2023 /

CEO Commentary

Stacy Kymes, president and chief executive officer, stated, "We recognized another solid quarter of earnings driven by our diverse business model, which prudently balances interest revenue with non-interest revenues and allows us to perform well in a multitude of business climates. Non-interest revenues now represent 40% of our total revenues. In addition, we continue to focus on opportunities for growth given the economic vitality of our core geographic footprint as we take advantage of our capital and liquidity strengths. We have increased loans almost 9% over the previous year and our core commercial and industrial loans are up 8% from last year. We're focused on investing in growth initiatives like our San Antonio expansion, which will drive long-term shareholder value. We have consistently proven that our business diversification coupled with our outstanding team outperforms against strong headwinds."

Third Quarter 2023 Financial Highlights
(Unless indicated otherwise, all comparisons are to the prior quarter)

• Net income was $134.5 million or $2.04 per diluted share for the third quarter of 2023 compared to $151.3 million or $2.27 per diluted share for the second quarter of 2023.
• Net interest revenue totaled $300.9 million, a decrease of $21.4 million compared to the prior quarter. Net interest margin was 2.69 percent compared to 3.00 percent. Growth in low-spread U.S. government agency residential mortgage-backed trading assets drove an 8 basis point decline in net interest margin with deposit repricing activity primarily driving the remaining 23 basis point reduction. For the third quarter of 2023, our core net interest margin excluding trading activities, a non-GAAP measure, was 3.14 percent compared to 3.36 percent in the prior quarter.
• Fees and commissions revenue decreased $2.6 million to $197.9 million. Decreased brokerage and trading revenue and mortgage banking revenue were partially offset by increased other revenue.
• Operating expense increased $5.6 million to $324.3 million. Personnel expense was relatively unchanged, while non-personnel expense increased $5.5 million, primarily due to higher occupancy and equipment costs and other expenses.
• Other gains and losses, net decreased $11.1 million to $1.5 million. The prior quarter included gains on alternative investments, primarily attributable to merchant banking activity.
• Period-end loans grew by $486 million to $23.7 billion at September 30, 2023, mostly driven by growth in commercial loans and commercial real estate loans secured by multifamily properties. Average outstanding loan balances were $23.4 billion, a $525 million increase.
• The provision for credit losses of $7.0 million in the third quarter of 2023 reflects our continued loan growth and changes in our economic forecast. Net charge-offs were $6.5 million or 0.11 percent of average loans on an annualized basis in the third quarter. The resulting combined allowance for credit losses totaled $325 million or 1.37 percent of outstanding loans at September 30, 2023 compared to $323 million or 1.39 percent of outstanding loans at June 30, 2023.
• Period-end deposits increased $358 million to $33.7 billion while average deposits increased $918 million to $33.3 billion. Average interest-bearing deposits increased $1.8 billion while average demand deposits declined by $840 million. The loan to deposit ratio was 70 percent at September 30, 2023, consistent with June 30, 2023.
• The company's tangible common equity ratio, a non-GAAP measure, was 7.74 percent at September 30, 2023 and 7.79 percent at June 30, 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 7.35 percent.
• The company's common equity Tier 1 capital ratio was 12.06 percent at September 30, 2023. In addition, the company's Tier 1 capital ratio was 12.07 percent, total capital ratio was 13.16 percent, and leverage ratio was 9.52 percent at September 30, 2023. At June 30, 2023, the company's common equity Tier 1 capital ratio was 12.13 percent, Tier 1 capital ratio was 12.13 percent, total capital ratio was 13.24 percent, and leverage ratio was 9.75 percent.
• The company repurchased 700,500 shares of common stock at an average price paid of $84.17 a share in the third quarter of 2023.

Third Quarter 2023 Segment Highlights

• Commercial Banking contributed $157.9 million to net income in the third quarter of 2023, a decrease of $12.2 million compared to the second quarter of 2023. Combined net interest revenue and fee revenue decreased $7.5 million due to a shift in deposit balances from demand to interest-bearing transaction accounts combined with a decline in customer hedging revenue, primarily related to our energy customers. Net loans charged-off decreased $1.1 million to $4.9 million in the third quarter of 2023. Personnel expense increased $2.8 million, driven primarily by incentive compensation costs and market expansion. Non-personnel expense increased $1.5 million, led by the retirement of certain ATMs as we upgrade our network. The prior quarter included a gain on alternative investments of $8.1 million resulting from merchant banking activities. Average loans increased $486 million or 3 percent to $19.6 billion. Average deposits increased $276 million or 2 percent to $15.1 billion.
• Consumer Banking contributed $58.0 million to net income in the third quarter of 2023, a decrease of $2.3 million compared the prior quarter. Combined net interest revenue and fee revenue decreased $2.4 million, largely due to a decrease in mortgage banking revenue from lower production volumes combined with narrowing margins and spread compression on residential mortgage loans. Operating expense increased $2.2 million. Average loans increased $50 million or 3 percent to $1.8 billion. Average deposits were mostly unchanged from the previous quarter.
• Wealth Management contributed $43.0 million to net income in the third quarter of 2023, a decrease of $14.3 million compared to the second quarter of 2023. Combined net interest and fee revenue decreased $12.4 million, primarily due to declining spreads on loans and deposits. Total revenue from institutional trading activities decreased $4.4 million, largely related to our municipal bond trading activity. Investment banking revenue increased $4.7 million resulting from increased underwriting fees and financial advisory fees. Personnel expense increased $1.4 million due to growth in regular compensation from business expansion. Non-personnel expense increased $3.1 million, primarily due to ongoing technology project costs. Average loans were consistent with the prior quarter at $2.2 billion. Average deposits increased $343 million or 5 percent to $7.9 billion. Assets under management or administration were $99.0 billion, a decrease of $4.6 billion.

Net Interest Revenue

Net interest revenue was $300.9 million for the third quarter of 2023 compared to $322.3 million for the prior quarter. Net interest margin was 2.69 percent compared to 3.00 percent. Growth in low-spread trading assets drove an 8 basis point decline in net interest margin while deposit price competition and liability mix shift are the primary drivers of the the remaining 23 basis point decline. For the third quarter of 2023, our core net interest margin excluding trading activities, a non-GAAP measure, was 3.14 percent compared to 3.36 percent in the prior quarter.

Average earning assets increased $1.3 billion. Average trading securities grew $1.2 billion, spurred by favorable market opportunities for U.S. government agency residential mortgage-backed securities observed primarily throughout the second quarter and extending into the early part of the third quarter. Average loan balances increased $525 million, largely due to growth in commercial and commercial real estate loans. Average fair value option securities, held as an economic hedge of the changes in fair value of our mortgage servicing rights, decreased $204 million. Average available for sale securities decreased $108 million and average interest-bearing cash and cash equivalents decreased $110 million. Average interest-bearing deposits increased $1.8 billion. Average other borrowings increased $1.7 billion while funds purchased and repurchase agreements declined $972 million.

The yield on average earning assets was 5.49 percent, up 20 basis points. The loan portfolio yield increased 22 basis points to 7.25 percent while the yield on the available for sale securities portfolio increased 11 basis points to 3.11 percent. The yield on trading securities grew 26 basis points to 4.76 percent.

Funding costs were 3.81 percent, up 54 basis points. The cost of interest-bearing deposits increased 61 basis points to 3.17 percent. The cost of other borrowings was up 36 basis points to 5.48 percent while the cost of funds purchased and repurchase agreements increased 23 basis points to 4.81 percent. The benefit to net interest margin from assets funded by non-interest liabilities was 101 basis points, an increase of 3 basis points.

Fees and Commissions Revenue

Fees and commissions revenue totaled $197.9 million for the third quarter of 2023, a decrease of $2.6 million compared to the prior quarter.

Brokerage and trading revenue decreased $2.7 million, with a $2.5 million reduction in trading revenue, primarily related to our municipal bond trading activity, which was influenced by the rising interest rate environment and evolving market expectations during the third quarter. Customer hedging revenue decreased $6.8 million following a record high in the second quarter. Investment banking revenue grew $5.7 million, primarily related to underwriting fees and financial advisory fees produced by our Public and Corporate Finance group, which underwrites municipal bonds such as independent school districts.

Mortgage banking revenue decreased $1.8 million, largely due lower mortgage production and qualifying residential mortgage loans guaranteed by U.S. government agencies previously in forbearance that have been resold into GNMA pools following the applicable performance period specified by the programs. Mortgage production volume was down $30.1 million reflecting the rise in mortgage interest rates and continued low inventory in the housing market.

Other revenue increased $1.6 million, largely due to increased margin interest fees and letter of credit fees.

Operating Expense

Total operating expense was $324.3 million for the third quarter of 2023, an increase of $5.6 million compared to the second quarter of 2023.

Personnel expense was $190.8 million, consistent with the prior quarter. A $2.0 million increase in regular compensation due to business expansion was mostly offset by a decrease in employee benefits expense driven by seasonal declines in payroll taxes.

Non-personnel expense was $133.5 million, an increase of $5.5 million. Occupancy and equipment costs grew $2.5 million driven by the retirement of certain ATMs as we upgrade our network. Other expense increased $2.9 million, primarily due to an accrual for certain disputed matters. FDIC insurance expense also increased $1.0 million.

Loans, Deposits and Capital

Loans

Outstanding loans were $23.7 billion at September 30, 2023, growing $486 million over June 30, 2023, largely due to growth in commercial and commercial real estate loans. Unfunded loan commitments decreased $575 million compared to the second quarter of 2023 due primarily to the funding of existing commercial real estate loan commitments.

Outstanding commercial loan balances, which includes healthcare, services, energy and general business loans, increased $185 million over the prior quarter.

Healthcare sector loan balances increased $92 million, totaling $4.1 billion or 17 percent of total loans. Our healthcare sector loans primarily consist of $3.4 billion of senior housing and care facilities, including independent living, assisted living and skilled nursing. Generally, we loan to borrowers with a portfolio of multiple facilities, which serves to help diversify risks specific to a single facility.

General business loans increased $131 million to $3.6 billion or 15 percent of total loans. General business loans include $2.2 billion of wholesale/retail loans and $1.4 billion of loans from other commercial industries.

Services sector loan balances decreased $19 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.

Energy loan balances decreased $18 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 69 percent of committed production loans are secured by properties primarily producing oil. The remaining 31 percent is secured by properties primarily producing natural gas. Unfunded energy loan commitments were $4.1 billion at September 30, 2023, a $219 million decrease compared June 30, 2023.

Commercial real estate loan balances grew $270 million and represent 22 percent of total loans. Loans secured by multifamily properties increased $232 million to $1.7 billion. Loans secured by industrial facilities increased $83 million to $1.4 billion. This growth was partially offset by a $24 million decrease in loans secured by office facilities. Unfunded commercial real estate loan commitments were $2.0 billion at September 30, 2023, a decrease of $411 million compared to June 30, 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 near the upper internal concentration limit, we expect continued modest growth in our commercial real estate balances as loans fund, primarily in the multifamily and industrial loan portfolios.

Loans to individuals increased $31 million and represent 16 percent of total loans. Residential mortgage loans increased $72 million while personal loans decreased $42 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 September 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 $33.7 billion at September 30, 2023, a $358 million increase. Interest-bearing transaction account balances increased $989 million while time deposits increased $221 million. Demand deposits decreased $808 million. We do not rely on brokered certificates of deposit as a significant source of funding. Time deposits included $688 million of brokered certificates of deposit, a $72 million decrease compared to June 30, 2023.

Average deposits were $33.3 billion at September 30, 2023, a $918 million increase. Average interest-bearing transaction account balances increased $1.0 billion and average time deposits increased $764 million. Average demand deposit account balances decreased $840 million. Average Commercial Banking deposits increased $276 million to $15.1 billion or 45 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 $343 million to $7.9 billion or 24 percent of total deposits. Consumer Banking deposits decreased $50 million to $7.9 billion or 24 percent of total deposits.

The company's common equity Tier 1 capital ratio was 12.06 percent at September 30, 2023. In addition, the company's Tier 1 capital ratio was 12.07 percent, total capital ratio was 13.16 percent, and leverage ratio was 9.52 percent at September 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 6 basis points to the company's common equity tier 1 capital ratio at September 30, 2023. At June 30, 2023, the company's common equity Tier 1 capital ratio was 12.13 percent, Tier 1 capital ratio was 12.13 percent, total capital ratio was 13.24 percent, and leverage ratio was 9.75 percent.

The company's tangible common equity ratio, a non-GAAP measure, was 7.74 percent at September 30, 2023 and 7.79 percent at June 30, 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 7.35 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 700,500 shares of common stock at an average price paid of $84.17 a share in the third quarter of 2023. We view share buybacks opportunistically, but within the context of maintaining our strong capital position.

Credit Quality

Nonperforming assets totaled $123 million or 0.52 percent of outstanding loans and repossessed assets at September 30, 2023, compared to $136 million or 0.59 percent at June 30, 2023. Excluding loans guaranteed by U.S. government agencies, nonperforming assets totaled $113 million or 0.48 percent of outstanding loans and repossessed assets at September 30, 2023, compared to $125 million or 0.54 percent at June 30, 2023.

Nonaccruing loans decreased $13 million compared to June 30, 2023. New nonaccruing loans identified in the third quarter totaled $11 million, offset by $12 million in payments received and $11 million of charge-offs. Nonaccruing commercial real estate loans decreased $10 million and nonaccruing general business loans decreased $5.5 million, partially offset by a $5.1 million increase in nonaccruing healthcare loans.

Net charge-offs were $6.5 million or 0.11 percent of average loans on an annualized basis in the third quarter. Charge-offs for the third quarter were primarily composed of a $4.6 million general business loan, a $2.2 million commercial real estate loan and a $1.5 million services loan.

The provision for credit losses of $7.0 million in the third quarter of 2023 reflects continued loan growth and changes in our economic forecast. The provision for credit losses was $17.0 million in the second quarter of 2023.

At September 30, 2023, the combined allowance for loan losses and accrual for off-balance sheet credit risk from unfunded loan commitments was $325 million or 1.37 percent of outstanding loans and 298 percent of nonaccruing loans.

Securities and Derivatives

The fair value of the available for sale securities portfolio totaled $11.9 billion at September 30, 2023, largely unchanged compared to June 30, 2023. At September 30, 2023, the available for sale securities portfolio consisted primarily of $6.2 billion of residential mortgage-backed securities fully backed by U.S. government agencies and $4.5 billion of commercial mortgage-backed securities fully backed by U.S. government agencies. At September 30, 2023, the available for sale securities portfolio had a net unrealized loss of $1.0 billion compared to $899 million at June 30, 2023.

We hold an inventory of trading securities in support of sales to a variety of customers. At September 30, 2023, the trading securities portfolio totaled $4.7 billion compared to $5.4 billion at June 30, 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 $192 million to $20 million at September 30, 2023.

Derivative contracts are carried at fair value. At September 30, 2023, the net fair values of derivative contracts, before consideration of cash margin, reported as assets under our customer derivative programs totaled $594 million compared to $538 million at June 30, 2023. The aggregate net fair value of derivative contracts, before consideration of cash margin, held under these programs reported as liabilities totaled $582 million at September 30, 2023 and $526 million at June 30, 2023.

The net cost of the changes in the fair value of mortgage servicing rights and related economic hedges was $1.3 million during the third quarter of 2023, including a $9.2 million decrease in the fair value of securities and derivative contracts held as an economic hedge, an $8.0 million increase in the fair value of mortgage servicing rights and $112 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, October 25, 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 # 13741617.

About BOK Financial Corporation

BOK Financial Corporation is a $49 billion regional financial services company headquartered in Tulsa, Oklahoma with $99 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 September 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)

		Sep. 30, 2023				June 30, 2023
ASSETS
Cash and due from banks		$	854,161			$	875,714
Interest-bearing cash and cash equivalents			520,774				571,616
Trading securities			4,748,101				5,442,364
Investment securities, net of allowance			2,298,418				2,374,071
Available for sale securities			11,906,647				11,938,523
Fair value option securities			20,215				212,321
Restricted equity securities			435,112				330,086
Residential mortgage loans held for sale			72,489				94,820
Loans:
Commercial			14,719,839				14,534,516
Commercial real estate			5,241,300				4,970,801
Loans to individuals			3,762,879				3,732,342
Total loans			23,724,018				23,237,659
Allowance for loan losses			(272,114	)			(262,714	)
Loans, net of allowance			23,451,904				22,974,945
Premises and equipment, net			616,439				617,918
Receivables			255,164				263,915
Goodwill			1,044,749				1,044,749
Intangible assets, net			65,804				69,246
Mortgage servicing rights			311,382				304,722
Real estate and other repossessed assets, net			3,753				4,227
Derivative contracts, net			546,109				353,037
Cash surrender value of bank-owned life insurance			406,623				411,084
Receivable on unsettled securities sales			28,707				133,909
Other assets			1,344,846				1,220,653
TOTAL ASSETS		$	48,931,397			$	49,237,920
LIABILITIES AND EQUITY
Deposits:
Demand		$	9,974,223			$	10,782,548
Interest-bearing transaction			19,897,179				18,907,981
Savings			853,933				897,937
Time			2,927,217				2,706,377
Total deposits			33,652,552				33,294,843
Funds purchased and repurchase agreements			2,722,998				5,446,864
Other borrowings			6,201,644				3,777,056
Subordinated debentures			131,152				131,154
Accrued interest, taxes and expense			244,105				228,797
Due on unsettled securities purchases			235,473				400,430
Derivative contracts, net			403,947				550,653
Other liabilities			522,318				540,726
TOTAL LIABILITIES			44,114,189				44,370,523
Shareholders' equity:
Capital, surplus and retained earnings			5,743,004				5,700,526
Accumulated other comprehensive loss			(928,985	)			(836,672	)
TOTAL SHAREHOLDERS' EQUITY			4,814,019				4,863,854
Non-controlling interests			3,189				3,543
TOTAL EQUITY			4,817,208				4,867,397
TOTAL LIABILITIES AND EQUITY		$	48,931,397			$	49,237,920

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

		Three Months Ended
		Sep. 30, 2023				June 30, 2023				Mar. 31, 2023				Dec. 31, 2022				Sep. 30, 2022
ASSETS
Interest-bearing cash and cash equivalents		$	598,734			$	708,475			$	616,596			$	568,307			$	748,263
Trading securities			5,444,587				4,274,803				3,031,969				3,086,985				3,178,068
Investment securities, net of allowance			2,331,595				2,408,122				2,473,796				2,535,305				2,593,989
Available for sale securities			11,925,800				12,033,597				11,738,693				10,953,851				10,306,257
Fair value option securities			41,741				245,469				300,372				92,012				36,846
Restricted equity securities			445,532				351,944				316,724				216,673				173,656
Residential mortgage loans held for sale			77,208				72,959				65,769				98,613				132,685
Loans:
Commercial			14,527,676				14,316,474				14,046,237				13,846,339				13,508,325
Commercial real estate			5,172,876				4,896,230				4,757,362				4,488,091				4,434,650
Loans to individuals			3,713,756				3,676,350				3,672,648				3,641,574				3,656,257
Total loans			23,414,308				22,889,054				22,476,247				21,976,004				21,599,232
Allowance for loan losses			(267,205	)			(252,890	)			(238,909	)			(242,450	)			(241,136	)
Loans, net of allowance			23,147,103				22,636,164				22,237,338				21,733,554				21,358,096
Total earning assets			44,012,300				42,731,533				40,781,257				39,285,300				38,527,860
Cash and due from banks			799,291				875,280				857,771				865,796				821,801
Derivative contracts, net			412,707				410,793				546,018				1,239,717				2,019,905
Cash surrender value of bank-owned life insurance			408,295				409,313				408,124				406,826				410,667
Receivable on unsettled securities sales			268,344				163,903				177,312				194,996				219,113
Other assets			3,418,615				3,317,285				3,211,986				3,216,983				3,119,856
TOTAL ASSETS		$	49,319,552			$	47,908,107			$	45,982,468			$	45,209,618			$	45,119,202
LIABILITIES AND EQUITY
Deposits:
Demand		$	10,157,821			$	10,998,201			$	12,406,408			$	14,176,189			$	15,105,305
Interest-bearing transaction			19,415,599				18,368,592				18,639,900				18,898,315				19,556,806
Savings			874,530				926,882				958,443				969,275				978,596
Time			2,839,947				2,076,037				1,477,720				1,417,606				1,409,069
Total deposits			33,287,897				32,369,712				33,482,471				35,461,385				37,049,776
Funds purchased and repurchase agreements			2,699,027				3,670,994				1,759,237				1,046,447				800,759
Other borrowings			6,968,309				5,275,291				4,512,280				2,523,195				1,528,887
Subordinated debentures			131,151				131,153				131,166				131,180				131,199
Derivative contracts, net			429,989				576,558				428,023				445,105				105,221
Due on unsettled securities purchases			435,927				436,353				316,738				575,957				331,428
Other liabilities			461,686				503,134				511,530				408,029				396,510
TOTAL LIABILITIES			44,413,986				42,963,195				41,141,445				40,591,298				40,343,780
Total equity			4,905,566				4,944,912				4,841,023				4,618,320				4,775,422
TOTAL LIABILITIES AND EQUITY		$	49,319,552			$	47,908,107			$	45,982,468			$	45,209,618			$	45,119,202

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

		Three Months Ended								Nine Months Ended
		September 30,								September 30,
		2023				2022				2023				2022
Interest revenue		$	617,044			$	363,150			$	1,704,140			$	940,496
Interest expense			316,148				46,825				728,635				81,742
Net interest revenue			300,896				316,325				975,505				858,754
Provision for credit losses			7,000				15,000				40,000				15,000
Net interest revenue after provision for credit losses			293,896				301,325				935,505				843,754
Other operating revenue:
Brokerage and trading revenue			62,312				61,006				179,714				77,970
Transaction card revenue			26,387				25,974				78,011				77,130
Fiduciary and asset management revenue			52,256				50,190				155,910				146,427
Deposit service charges and fees			27,676				28,703				80,744				84,207
Mortgage banking revenue			13,356				11,282				42,864				39,300
Other revenue			15,865				15,479				47,085				38,608
Total fees and commissions			197,852				192,634				584,328				463,642
Other gains (losses), net			1,474				979				16,343				(8,304	)
Loss on derivatives, net			(9,010	)			(17,009	)			(18,513	)			(77,559	)
Loss on fair value option securities, net			(203	)			(4,368	)			(5,323	)			(17,790	)
Change in fair value of mortgage servicing rights			8,039				16,570				11,241				83,165
Gain (loss) on available for sale securities, net			-				892				(3,010	)			3,017
Total other operating revenue			198,152				189,698				585,066				446,171
Other operating expense:
Personnel			190,791				170,348				563,588				484,499
Business promotion			6,958				6,127				23,167				18,965
Charitable contributions to BOKF Foundation			23				-				1,165				-
Professional fees and services			13,224				14,089				39,049				37,977
Net occupancy and equipment			32,583				29,296				91,147				87,640
Insurance			7,996				4,306				22,285				13,317
Data processing and communications			45,672				41,743				135,781				122,859
Printing, postage and supplies			3,760				4,349				11,381				11,967
Amortization of intangible assets			3,474				3,943				10,339				11,956
Mortgage banking costs			8,357				9,504				22,439				26,818
Other expense			11,475				11,046				28,457				30,026
Total other operating expense			324,313				294,751				948,798				846,024
Net income before taxes			167,735				196,272				571,773				443,901
Federal and state income taxes			33,256				39,681				123,162				92,000
Net income			134,479				156,591				448,611				351,901
Net income (loss) attributable to non-controlling interests			(16	)			81				440				57
Net income attributable to BOK Financial Corporation shareholders		$	134,495			$	156,510			$	448,171			$	351,844
Average shares outstanding:
Basic			65,548,307				67,003,199				65,955,294				67,409,789
Diluted			65,548,307				67,004,623				65,955,294				67,411,222
Net income per share:
Basic		$	2.04			$	2.32			$	6.74			$	5.18
Diluted		$	2.04			$	2.32			$	6.74			$	5.18

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

		Three Months Ended
		Sep. 30, 2023				June 30, 2023				Mar. 31, 2023				Dec. 31, 2022				Sep. 30, 2022
Interest revenue		$	617,044			$	570,367			$	516,729			$	451,606			$	363,150
Interest expense			316,148				248,106				164,381				98,980				46,825
Net interest revenue			300,896				322,261				352,348				352,626				316,325
Provision for credit losses			7,000				17,000				16,000				15,000				15,000
Net interest revenue after provision for credit losses			293,896				305,261				336,348				337,626				301,325
Other operating revenue:
Brokerage and trading revenue			62,312				65,006				52,396				63,008				61,006
Transaction card revenue			26,387				26,003				25,621				27,136				25,974
Fiduciary and asset management revenue			52,256				52,997				50,657				49,899				50,190
Deposit service charges and fees			27,676				27,100				25,968				26,429				28,703
Mortgage banking revenue			13,356				15,141				14,367				10,065				11,282
Other revenue			15,865				14,250				16,970				17,034				15,479
Total fees and commissions			197,852				200,497				185,979				193,571				192,634
Other gains (losses), net			1,474				12,618				2,251				8,427				979
Gain (loss) on derivatives, net			(9,010	)			(8,159	)			(1,344	)			4,548				(17,009	)
Loss on fair value option securities, net			(203	)			(2,158	)			(2,962	)			(2,568	)			(4,368	)
Change in fair value of mortgage servicing rights			8,039				9,261				(6,059	)			(2,904	)			16,570
Gain (loss) on available for sale securities, net			-				(3,010	)			-				(3,988	)			892
Total other operating revenue			198,152				209,049				177,865				197,086				189,698
Other operating expense:
Personnel			190,791				190,652				182,145				186,419				170,348
Business promotion			6,958				7,640				8,569				7,470				6,127
Charitable contributions to BOKF Foundation			23				1,142				-				2,500				-
Professional fees and services			13,224				12,777				13,048				18,365				14,089
Net occupancy and equipment			32,583				30,105				28,459				29,227				29,296
Insurance			7,996				6,974				7,315				4,677				4,306
Data processing and communications			45,672				45,307				44,802				43,048				41,743
Printing, postage and supplies			3,760				3,728				3,893				3,890				4,349
Amortization of intangible assets			3,474				3,474				3,391				3,736				3,943
Mortgage banking costs			8,357				8,300				5,782				9,016				9,504
Other expense			11,475				8,574				8,408				10,108				11,046
Total other operating expense			324,313				318,673				305,812				318,456				294,751
Net income before taxes			167,735				195,637				208,401				216,256				196,272
Federal and state income taxes			33,256				44,001				45,905				47,864				39,681
Net income			134,479				151,636				162,496				168,392				156,591
Net income (loss) attributable to non-controlling interests			(16	)			328				128				(37	)			81
Net income attributable to BOK Financial Corporation shareholders		$	134,495			$	151,308			$	162,368			$	168,429			$	156,510
Average shares outstanding:
Basic			65,548,307				65,994,132				66,331,775				66,627,955				67,003,199
Diluted			65,548,307				65,994,132				66,331,775				66,627,955				67,004,623
Net income per share:
Basic		$	2.04			$	2.27			$	2.43			$	2.51			$	2.32
Diluted		$	2.04			$	2.27			$	2.43			$	2.51			$	2.32

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

		Three Months Ended
		Sep. 30, 2023				June 30, 2023				Mar. 31, 2023				Dec. 31, 2022				Sep. 30, 2022
Capital:
Period-end shareholders' equity		$	4,814,019			$	4,863,854			$	4,874,786			$	4,682,649			$	4,509,934
Risk weighted assets		$	38,791,023			$	38,218,164			$	37,192,197			$	38,142,231			$	36,866,994
Risk-based capital ratios:
Common equity tier 1			12.06	%			12.13	%			12.19	%			11.69	%			11.80	%
Tier 1			12.07	%			12.13	%			12.20	%			11.71	%			11.82	%
Total capital			13.16	%			13.24	%			13.21	%			12.67	%			12.81	%
Leverage ratio			9.52	%			9.75	%			9.94	%			9.91	%			9.76	%
Tangible common equity ratio 1			7.74	%			7.79	%			8.46	%			7.63	%			7.96	%
Adjusted tangible common equity ratio 1			7.35	%			7.49	%			8.22	%			7.36	%			7.66	%
Common stock:
Book value per share		$	73.31			$	73.28			$	73.19			$	69.93			$	67.06
Tangible book value per share		$	56.40			$	56.50			$	56.42			$	53.19			$	50.34
Market value per share:
High		$	92.41			$	90.91			$	106.47			$	110.28			$	95.51
Low		$	77.61			$	74.40			$	80.00			$	88.46			$	69.82
Cash dividends paid		$	35,655			$	35,879			$	36,006			$	36,188			$	35,661
Dividend payout ratio			26.51	%			23.71	%			22.18	%			21.49	%			22.79	%
Shares outstanding, net			65,664,840				66,369,208				66,600,833				66,958,634				67,254,383
Stock buy-back program:
Shares repurchased			700,500				266,000				447,071				314,406				548,034
Amount		$	58,961			$	22,366			$	44,100			$	32,429			$	49,980
Average price paid per share 2		$	84.17			$	84.08			$	98.64			$	103.14			$	91.20
Performance ratios (quarter annualized):
Return on average assets			1.08	%			1.27	%			1.43	%			1.48	%			1.38	%
Return on average equity			10.88	%			12.28	%			13.61	%			14.48	%			13.01	%
Return on average tangible common equity 1			14.08	%			15.86	%			17.71	%			19.14	%			17.04	%
Net interest margin			2.69	%			3.00	%			3.45	%			3.54	%			3.24	%
Efficiency ratio 1,3			64.01	%			58.75	%			56.79	%			56.61	%			57.33	%
Other data:
Tax equivalent interest		$	2,214			$	2,200			$	2,285			$	2,287			$	2,163
Net unrealized loss on available for sale securities		$	(1,034,520	)		$	(898,906	)		$	(741,508	)		$	(865,553	)		$	(935,788	)
Mortgage banking:
Mortgage production revenue		$	(1,887	)		$	(284	)		$	(633	)		$	(3,983	)		$	(2,406	)
Mortgage loans funded for sale		$	173,727			$	214,785			$	138,624			$	141,090			$	260,210
Add: current period-end outstanding commitments			49,284				55,031				71,693				45,492				75,779
Less: prior period end outstanding commitments			55,031				71,693				45,492				75,779				106,004
Total mortgage production volume		$	167,980			$	198,123			$	164,825			$	110,803			$	229,985
Mortgage loan refinances to mortgage loans funded for sale			9	%			8	%			9	%			10	%			10	%
Realized margin on funded mortgage loans			(0.94)	%			(0.14)	%			(1.25)	%			(1.10)	%			(0.41)	%
Production revenue as a percentage of production volume			(1.12)	%			(0.14)	%			(0.38)	%			(3.59)	%			(1.05)	%
Mortgage servicing revenue		$	15,243			$	15,425			$	15,000			$	14,048			$	13,688
Average outstanding principal balance of mortgage loans serviced for others			20,719,116				20,807,044				21,121,319				18,923,078				19,070,221
Average mortgage servicing revenue rates			0.29	%			0.30	%			0.29	%			0.29	%			0.28	%
Gain (loss) on mortgage servicing rights, net of economic hedge:
Gain (loss) on mortgage hedge derivative contracts, net		$	(8,980	)		$	(8,099	)		$	(1,711	)		$	4,373			$	(17,027	)
Loss on fair value option securities, net			(203	)			(2,158	)			(2,962	)			(2,568	)			(4,368	)
Gain (loss) on economic hedge of mortgage servicing rights			(9,183	)			(10,257	)			(4,673	)			1,805				(21,395	)
Gain (loss) on changes in fair value of mortgage servicing rights			8,039				9,261				(6,059	)			(2,904	)			16,570
Gain (loss) on changes in fair value of mortgage servicing rights, net of economic hedges, included in other operating revenue			(1,144	)			(996	)			(10,732	)			(1,099	)			(4,825	)
Net interest revenue (expense) on fair value option securities 4			(112	)			(232	)			187				(118	)			29
Total economic benefit (cost) of changes in the fair value of mortgage servicing rights, net of economic hedges		$	(1,256	)		$	(1,228	)		$	(10,545	)		$	(1,217	)		$	(4,796	)

¹ See Reconciliation of Non-GAAP Measures following.

² Excludes 1 percent excise tax on corporate stock repurchases.

³ Prior period ratios have been adjusted to be consistent with the current period presentation.

⁴ Actual 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
		Sep. 30, 2023				June 30, 2023				Mar. 31, 2023				Dec. 31, 2022				Sep. 30, 2022
Reconciliation of tangible common equity ratio and adjusted tangible common equity ratio:
Total shareholders' equity		$	4,814,019			$	4,863,854			$	4,874,786			$	4,682,649			$	4,509,934
Less: Goodwill and intangible assets, net			1,110,553				1,113,995				1,117,438				1,120,880				1,124,582
Tangible common equity			3,703,466				3,749,859				3,757,348				3,561,769				3,385,352
Add: Unrealized gain (loss) on investment securities, net			(246,395	)			(189,152	)			(140,947	)			(167,477	)			(165,206	)
Add: Tax effect on unrealized gain (loss) on investment securities, net			57,949				44,486				33,149				39,196				38,665
Adjusted tangible common equity		$	3,515,020			$	3,605,193			$	3,649,550			$	3,433,488			$	3,258,811
Total assets		$	48,931,397			$	49,237,920			$	45,524,122			$	47,790,642			$	43,645,446
Less: Goodwill and intangible assets, net			1,110,553				1,113,995				1,117,438				1,120,880				1,124,582
Tangible assets		$	47,820,844			$	48,123,925			$	44,406,684			$	46,669,762			$	42,520,864
Tangible common equity ratio			7.74	%			7.79	%			8.46	%			7.63	%			7.96	%
Adjusted tangible common equity ratio			7.35	%			7.49	%			8.22	%			7.36	%			7.66	%
Reconciliation of return on average tangible common equity:
Total average shareholders' equity		$	4,902,119			$	4,941,352			$	4,837,567			$	4,613,929			$	4,771,123
Less: Average goodwill and intangible assets, net			1,112,217				1,115,652				1,119,123				1,122,680				1,126,440
Average tangible common equity		$	3,789,902			$	3,825,700			$	3,718,444			$	3,491,249			$	3,644,683
Net Income			134,495				151,308				162,368				168,429				156,510
Return on average tangible common equity			14.08	%			15.86	%			17.71	%			19.14	%			17.04	%
Reconciliation of pre-provision net revenue:
Net income before taxes		$	167,735			$	195,637			$	208,401			$	216,256			$	196,272
Provision for expected credit losses			7,000				17,000				16,000				15,000				15,000
Net income (loss) attributable to non-controlling interests			(16	)			328				128				(37	)			81
Pre-provision net revenue		$	174,751			$	212,309			$	224,273			$	231,293			$	211,191
Calculation of efficiency ratio:
Total other operating expense		$	324,313			$	318,673			$	305,812			$	318,456			$	294,751
Less: Amortization of intangible assets			3,474				3,474				3,391				3,736				3,943
Adjusted total other operating expense		$	320,839			$	315,199			$	302,421			$	314,720			$	290,808
Net interest revenue		$	300,896			$	322,261			$	352,348			$	352,626			$	316,325
Tax-equivalent adjustment			2,214				2,200				2,285				2,287				2,163
Tax-equivalent net interest revenue			303,110				324,461				354,633				354,913				318,488
Total other operating revenue			198,152				209,049				177,865				197,086				189,698
Less: Gain (loss) on available for sale securities, net			-				(3,010	)			-				(3,988	)			892
Adjusted revenue		$	501,262			$	536,520			$	532,498			$	555,987			$	507,294
Efficiency ratio			64.01	%			58.75	%			56.79	%			56.61	%			57.33	%
Information on net interest revenue and net interest margin excluding trading activities:
Net interest revenue		$	300,896			$	322,261			$	352,348			$	352,626			$	316,325
Less: Trading activities net interest revenue			(7,343	)			(3,461	)			70				(860	)			4,478
Net interest revenue excluding trading activities			308,239				325,722				352,278				353,486				311,847
Tax-equivalent adjustment			2,214				2,200				2,285				2,287				2,163
Tax-equivalent net interest revenue excluding trading activities		$	310,453			$	327,922			$	354,563			$	355,773			$	314,010
Average total earning assets		$	44,012,300			$	42,731,533			$	40,781,257			$	39,285,300			$	38,527,860
Less: Average trading activities interest-earning assets			5,444,587				4,274,803				3,031,969				3,086,985				3,178,068
Average interest-earning assets excluding trading activities		$	38,567,713			$	38,456,730			$	37,749,288			$	36,198,315			$	35,349,792
Net interest margin on average interest-earning assets			2.69	%			3.00	%			3.45	%			3.54	%			3.24	%
Net interest margin on average trading activities interest-earning assets			(0.49)	%			(0.34)	%			-	%			(0.12)	%			0.53	%
Net interest margin on average interest-earning assets excluding trading activities			3.14	%			3.36	%			3.72	%			3.84	%			3.49	%

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)

		Sep. 30, 2023				June 30, 2023				Mar. 31, 2023				Dec. 31, 2022				Sep. 30, 2022
Commercial:
Healthcare		$	4,083,134			$	3,991,387			$	3,899,341			$	3,845,017			$	3,826,623
Services			3,566,361				3,585,169				3,563,702				3,431,521				3,280,925
Energy			3,490,602				3,508,752				3,398,057				3,424,790				3,371,588
General business			3,579,742				3,449,208				3,356,249				3,511,171				3,148,783
Total commercial			14,719,839				14,534,516				14,217,349				14,212,499				13,627,919
Commercial real estate:
Multifamily			1,734,688				1,502,971				1,363,881				1,212,883				1,126,700
Industrial			1,432,629				1,349,709				1,309,435				1,221,501				1,103,905
Office			981,876				1,005,660				1,045,700				1,053,331				1,086,615
Retail			608,073				617,886				618,264				620,518				635,021
Residential construction and land development			100,465				106,370				102,828				95,684				91,690
Other commercial real estate			383,569				388,205				375,208				402,860				429,980
Total commercial real estate			5,241,300				4,970,801				4,815,316				4,606,777				4,473,911
Loans to individuals:
Residential mortgage			2,090,992				1,993,690				1,926,027				1,890,784				1,851,836
Residential mortgages guaranteed by U.S. government agencies			161,092				186,170				224,753				245,940				262,466
Personal			1,510,795				1,552,482				1,566,608				1,601,150				1,574,325
Total loans to individuals			3,762,879				3,732,342				3,717,388				3,737,874				3,688,627
Total		$	23,724,018			$	23,237,659			$	22,750,053			$	22,557,150			$	21,790,457

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

		Sep. 30, 2023				June 30, 2023				Mar. 31, 2023				Dec. 31, 2022				Sep. 30, 2022
Texas:
Commercial		$	7,249,963			$	7,223,820			$	7,103,166			$	6,878,618			$	6,644,890
Commercial real estate			1,873,477				1,748,796				1,675,831				1,555,508				1,448,590
Loans to individuals			961,299				974,911				992,343				982,700				970,459
Total Texas			10,084,739				9,947,527				9,771,340				9,416,826				9,063,939
Oklahoma:
Commercial			3,384,627				3,251,547				3,178,934				3,382,577				3,108,608
Commercial real estate			601,087				573,559				574,708				582,109				608,856
Loans to individuals			2,100,974				2,079,311				2,049,472				2,077,124				2,054,362
Total Oklahoma			6,086,688				5,904,417				5,803,114				6,041,810				5,771,826
Colorado:
Commercial			2,219,460				2,179,473				2,148,066				2,149,199				2,117,181
Commercial real estate			710,552				683,973				646,537				613,912				565,057
Loans to individuals			227,569				223,200				231,368				241,902				237,981
Total Colorado			3,157,581				3,086,646				3,025,971				3,005,013				2,920,219
Arizona:
Commercial			1,173,491				1,177,778				1,115,973				1,124,289				1,103,000
Commercial real estate			1,014,151				926,750				881,465				860,947				850,319
Loans to individuals			260,282				242,102				240,556				229,872				225,981
Total Arizona			2,447,924				2,346,630				2,237,994				2,215,108				2,179,300
Kansas/Missouri:
Commercial			307,725				309,148				318,782				310,715				307,456
Commercial real estate			547,708				516,299				489,951				479,968				466,955
Loans to individuals			132,137				138,960				129,580				131,307				125,039
Total Kansas/Missouri			987,570				964,407				938,313				921,990				899,450
New Mexico:
Commercial			297,714				287,443				280,945				263,349				258,754
Commercial real estate			405,989				425,472				449,715				417,008				426,367
Loans to individuals			69,418				64,803				65,770				67,163				68,095
Total New Mexico			773,121				777,718				796,430				747,520				753,216
Arkansas:
Commercial			86,859				105,307				71,483				103,752				88,030
Commercial real estate			88,336				95,952				97,109				97,325				107,767
Loans to individuals			11,200				9,055				8,299				7,806				6,710
Total Arkansas			186,395				210,314				176,891				208,883				202,507
TOTAL BOK FINANCIAL		$	23,724,018			$	23,237,659			$	22,750,053			$	22,557,150			$	21,790,457

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)

		Sep. 30, 2023				June 30, 2023				Mar. 31, 2023				Dec. 31, 2022				Sep. 30, 2022
Oklahoma:
Demand		$	4,019,019			$	4,273,136			$	4,369,944			$	4,585,963			$	5,143,405
Interest-bearing:
Transaction			9,970,955				9,979,534				9,468,100				9,475,528				9,619,419
Savings			508,619				531,536				564,829				555,407				558,256
Time			2,019,749				1,945,916				942,787				794,002				776,306
Total interest-bearing			12,499,323				12,456,986				10,975,716				10,824,937				10,953,981
Total Oklahoma			16,518,342				16,730,122				15,345,660				15,410,900				16,097,386
Texas:
Demand			2,599,998				2,876,568				3,154,789				3,873,759				4,609,255
Interest-bearing:
Transaction			5,046,288				4,532,093				4,366,932				4,878,482				4,781,920
Savings			154,863				162,704				175,012				178,356				179,049
Time			436,218				377,424				321,774				356,538				343,015
Total interest-bearing			5,637,369				5,072,221				4,863,718				5,413,376				5,303,984
Total Texas			8,237,367				7,948,789				8,018,507				9,287,135				9,913,239
Colorado:
Demand			1,598,622				1,726,130				1,869,194				2,462,891				2,510,179
Interest-bearing:
Transaction			1,888,026				1,825,295				2,126,435				2,123,218				2,221,796
Savings			63,129				66,968				72,548				77,961				80,542
Time			185,030				148,840				128,583				135,043				151,064
Total interest-bearing			2,136,185				2,041,103				2,327,566				2,336,222				2,453,402
Total Colorado			3,734,807				3,767,233				4,196,760				4,799,113				4,963,581
New Mexico:
Demand			853,571				912,218				997,364				1,141,958				1,296,410
Interest-bearing:
Transaction			1,049,903				712,541				674,328				691,915				717,492
Savings			97,753				102,729				111,771				112,430				113,056
Time			217,535				179,548				137,875				133,625				142,856
Total interest-bearing			1,365,191				994,818				923,974				937,970				973,404
Total New Mexico			2,218,762				1,907,036				1,921,338				2,079,928				2,269,814
Arizona:
Demand			522,142				592,144				780,051				844,327				903,296
Interest-bearing:
Transaction			903,535				800,970				687,527				739,628				788,142
Savings			12,340				14,489				16,993				16,496				18,258
Time			36,689				31,248				27,755				24,846				26,704
Total interest-bearing			952,564				846,707				732,275				780,970				833,104
Total Arizona			1,474,706				1,438,851				1,512,326				1,625,297				1,736,400
Kansas/Missouri:
Demand			351,236				363,534				393,321				436,259				479,459
Interest-bearing:
Transaction			981,091				1,014,247				1,040,009				694,163				747,981
Savings			14,331				16,316				18,292				20,678				19,375
Time			22,437				16,176				13,061				12,963				13,258
Total interest-bearing			1,017,859				1,046,739				1,071,362				727,804				780,614
Total Kansas/Missouri			1,369,095				1,410,273				1,464,683				1,164,063				1,260,073
Arkansas:
Demand			29,635				38,818				42,312				50,180				43,111
Interest-bearing:
Transaction			57,381				43,301				71,158				56,181				123,273
Savings			2,898				3,195				3,228				3,083				3,098
Time			9,559				7,225				4,775				4,825				5,940
Total interest-bearing			69,838				53,721				79,161				64,089				132,311
Total Arkansas			99,473				92,539				121,473				114,269				175,422
TOTAL BOK FINANCIAL		$	33,652,552			$	33,294,843			$	32,580,747			$	34,480,705			$	36,415,915

NET INTEREST MARGIN TREND - UNAUDITED
BOK FINANCIAL CORPORATION

		Three Months Ended
		Sep. 30, 2023				June 30, 2023				Mar. 31, 2023				Dec. 31, 2022				Sep. 30, 2022
TAX-EQUIVALENT ASSETS YIELDS
Interest-bearing cash and cash equivalents			5.43	%			5.41	%			4.28	%			4.06	%			1.87	%
Trading securities			4.76	%			4.50	%			4.52	%			3.70	%			2.72	%
Investment securities, net of allowance			1.43	%			1.44	%			1.46	%			1.46	%			1.42	%
Available for sale securities			3.11	%			3.00	%			2.87	%			2.54	%			2.21	%
Fair value option securities			4.61	%			5.07	%			5.17	%			4.40	%			2.98	%
Restricted equity securities			7.88	%			7.31	%			7.34	%			5.70	%			6.23	%
Residential mortgage loans held for sale			6.27	%			5.85	%			5.79	%			5.56	%			5.05	%
Loans			7.25	%			7.03	%			6.67	%			5.99	%			4.89	%
Allowance for loan losses
Loans, net of allowance			7.33	%			7.10	%			6.74	%			6.06	%			4.94	%
Total tax-equivalent yield on earning assets			5.49	%			5.29	%			5.06	%			4.53	%			3.71	%
Interest-bearing deposits:
Interest-bearing transaction			3.18	%			2.60	%			1.91	%			1.28	%			0.63	%
Savings			0.47	%			0.21	%			0.10	%			0.08	%			0.05	%
Time			3.96	%			3.27	%			1.95	%			1.25	%			0.93	%
Total interest-bearing deposits			3.17	%			2.56	%			1.83	%			1.22	%			0.63	%
Funds purchased and repurchase agreements			4.81	%			4.58	%			3.33	%			2.05	%			0.72	%
Other borrowings			5.48	%			5.12	%			4.73	%			4.08	%			2.33	%
Subordinated debt			7.02	%			6.79	%			6.40	%			6.16	%			5.07	%
Total cost of interest-bearing liabilities			3.81	%			3.27	%			2.43	%			1.57	%			0.76	%
Tax-equivalent net interest revenue spread			1.68	%			2.02	%			2.63	%			2.96	%			2.95	%
Effect of noninterest-bearing funding sources and other			1.01	%			0.98	%			0.82	%			0.58	%			0.29	%
Tax-equivalent net interest margin			2.69	%			3.00	%			3.45	%			3.54	%			3.24	%

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
		Sep. 30, 2023				June 30, 2023				Mar. 31, 2023				Dec. 31, 2022				Sep. 30, 2022
Nonperforming assets:
Nonaccruing loans:
Commercial:
Healthcare		$	41,836			$	36,753			$	37,247			$	41,034			$	41,438
Energy			19,559				20,037				127				1,399				4,164
Services			2,820				4,541				8,097				16,228				27,315
General business			6,483				11,946				8,961				1,636				2,753
Total commercial			70,698				73,277				54,432				60,297				75,670
Commercial real estate			7,418				17,395				21,668				16,570				7,971
Loans to individuals:
Permanent mortgage			30,954				29,973				29,693				29,791				30,066
Permanent mortgage guaranteed by U.S. government agencies			10,436				11,473				14,302				15,005				16,957
Personal			79				133				200				134				136
Total loans to individuals			41,469				41,579				44,195				44,930				47,159
Total nonaccruing loans		$	119,585			$	132,251			$	120,295			$	121,797			$	130,800
Accruing renegotiated loans guaranteed by U.S. government agencies 1			-				-				-				163,535				176,022
Real estate and other repossessed assets			3,753				4,227				12,651				14,304				29,676
Total nonperforming assets		$	123,338			$	136,478			$	132,946			$	299,636			$	336,498
Total nonperforming assets excluding those guaranteed by U.S. government agencies		$	112,902			$	125,005			$	118,644			$	121,096			$	143,519
Accruing loans 90 days past due 2		$	64			$	220			$	76			$	510			$	120
Gross charge-offs		$	10,593			$	8,049			$	3,667			$	17,807			$	1,766
Recoveries			(4,062	)			(1,346	)			(2,898	)			(2,301	)			(1,309	)
Net charge-offs (recoveries)		$	6,531			$	6,703			$	769			$	15,506			$	457
Provision for loan losses		$	15,931			$	19,957			$	14,525			$	9,442			$	1,111
Provision for credit losses from off-balance sheet unfunded loan commitments			(7,336	)			(3,003	)			2,024				4,609				14,060
Provision for expected credit losses from mortgage banking activities			(1,474	)			78				(488	)			1,003				(66	)
Provision for credit losses related to held-to maturity (investment) securities portfolio			(121	)			(32	)			(61	)			(54	)			(105	)
Total provision for credit losses		$	7,000			$	17,000			$	16,000			$	15,000			$	15,000
Allowance for loan losses to period end loans			1.15	%			1.13	%			1.10	%			1.04	%			1.11	%
Combined allowance for loan losses and accrual for off-balance sheet credit risk from unfunded loan commitments to period end loans			1.37	%			1.39	%			1.37	%			1.31	%			1.37	%
Nonperforming assets to period end loans and repossessed assets			0.52	%			0.59	%			0.58	%			1.33	%			1.54	%
Net charge-offs (annualized) to average loans			0.11	%			0.12	%			0.01	%			0.28	%			0.01	%
Allowance for loan losses to nonaccruing loans 2			249.31	%			217.52	%			235.36	%			220.71	%			212.37	%
Combined allowance for loan losses and accrual for off-balance sheet credit risk from unfunded loan commitments to nonaccruing loans 2			297.50	%			267.15	%			294.74	%			277.76	%			261.83	%

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												3Q23 vs 2Q23								3Q23 vs 3Q22
		Sep. 30, 2023				June 30, 2023				Sep. 30, 2022				$ change				% change				$ change				% change
Commercial Banking
Net interest revenue		$	254,464			$	260,099			$	208,065			$	(5,635	)			(2.2)	%		$	46,399				22.3	%
Fees and commissions revenue			57,858				59,704				58,147				(1,846	)			(3.1)	%			(289	)			(0.5	)%
Combined net interest and fee revenue			312,322				319,803				266,212				(7,481	)			(2.3)	%			46,110				17.3	%
Other operating expense			81,751				77,479				75,490				4,272				5.5	%			6,261				8.3	%
Corporate expense allocations			17,834				21,404				16,438				(3,570	)			(16.7)	%			1,396				8.5	%
Net income			157,930				170,179				134,134				(12,249	)			(7.2)	%			23,796				17.7	%
Average assets			28,849,597				28,170,869				28,890,429				678,728				2.4	%			(40,832	)			(0.1	)%
Average loans			19,645,259				19,158,984				17,904,779				486,275				2.5	%			1,740,480				9.7	%
Average deposits			15,098,038				14,822,093				17,966,661				275,945				1.9	%			(2,868,623	)			(16.0	)%
Consumer Banking
Net interest revenue		$	112,608			$	113,391			$	43,951			$	(783	)			(0.7)	%		$	68,657				156.2	%
Fees and commissions revenue			30,715				32,361				30,230				(1,646	)			(5.1)	%			485				1.6	%
Combined net interest and fee revenue			143,323				145,752				74,181				(2,429	)			(1.7)	%			69,142				93.2	%
Other operating expense			54,497				52,340				53,236				2,157				4.1	%			1,261				2.4	%
Corporate expense allocations			11,920				12,318				10,792				(398	)			(3.2)	%			1,128				10.5	%
Net income			58,009				60,332				2,970				(2,323	)			(3.9)	%			55,039				1,853.2	%
Average assets			9,379,478				9,597,723				10,233,401				(218,245	)			(2.3)	%			(853,923	)			(8.3	)%
Average loans			1,812,606				1,762,568				1,686,498				50,038				2.8	%			126,108				7.5	%
Average deposits			7,936,186				7,986,674				8,812,884				(50,488	)			(0.6)	%			(876,698	)			(9.9	)%
Wealth Management
Net interest revenue		$	36,437			$	49,352			$	33,584			$	(12,915	)			(26.2)	%		$	2,853				8.5	%
Fees and commissions revenue			123,614				123,050				113,113				564				0.5	%			10,501				9.3	%
Combined net interest and fee revenue			160,051				172,402				146,697				(12,351	)			(7.2)	%			13,354				9.1	%
Other operating expense			89,367				84,859				79,151				4,508				5.3	%			10,216				12.9	%
Corporate expense allocations			14,331				12,574				12,934				1,757				14.0	%			1,397				10.8	%
Net income			43,029				57,317				41,808				(14,288	)			(24.9)	%			1,221				2.9	%
Average assets			14,740,641				12,949,258				13,818,299				1,791,383				13.8	%			922,342				6.7	%
Average loans			2,219,829				2,230,906				2,163,975				(11,077	)			(0.5)	%			55,854				2.6	%
Average deposits			7,886,962				7,544,143				7,999,074				342,819				4.5	%			(112,112	)			(1.4	)%
Fiduciary assets			56,380,009				57,873,868				54,714,705				(1,493,859	)			(2.6)	%			1,665,304				3.0	%
Assets under management or administration			99,004,179				103,618,940				95,401,638				(4,614,761	)			(4.5)	%			3,602,541				3.8	%

SOURCE: BOK Financial Corp

View source version on accesswire.com:
https://www.accesswire.com/796015/bok-financial-corporation-reports-quarterly-earnings-of-134-million-or-204-per-share-in-the-third-quarter

FAQ

What was the net income for the third quarter of 2023?

The net income for the third quarter of 2023 was $134.5 million.

What were the highlights of the company's financial performance in Q3 2023?

The company reported solid earnings driven by a diverse business model and growth opportunities. They increased loans by almost 9% over the previous year, and core commercial and industrial loans were up 8% from last year.

Did the company repurchase any shares of common stock?

Yes, the company repurchased 700,500 shares of common stock.

How did net interest revenue and fees and commissions revenue change in Q3 2023?

Net interest revenue decreased to $300.9 million, and fees and commissions revenue decreased to $197.9 million.

What was the change in operating expenses in Q3 2023?

Operating expenses increased to $324.3 million.

Which segments contributed to the company's net income?

Commercial Banking, Consumer Banking, and Wealth Management segments all contributed to net income.