BOK Financial Reports 2015 released

BOK Financial Corporation (NASDAQ:BOKF) reported today net income of $288.6 million or $4.21 per diluted share for the year ended December 31, 2015. Net income for the year ended December 31, 2014 was $292.4 million or $4.22 per diluted share.

Net income for fourth quarter of 2015 totaled $59.6 million or $0.89 per diluted share compared to net income of $74.9 million or $1.09 per diluted share for the third quarter of 2015.

Steven G. Bradshaw, president and CEO, stated, “It was a disappointing finish to the year, as the downgrade of a single large borrower in our energy portfolio during the fourth quarter necessitated a higher-than-expected provision for loan losses. However, this does not detract from the fact that 2015, on balance, was a successful and profitable year with strong loan and fee income growth and very good expense management all throughout the business. While the extended bear market in energy prices may mean additional loan loss provisions in 2016 and potentially a greater spillover impact on the economies in Oklahoma, Texas, and Colorado, we believe we are well-positioned to manage through the current commodities downturn and continue to grow and build shareholder value.”

Bradshaw added, “Reflecting management’s continued confidence in our business, we are investing in our future. The acquisition of MBT Bancshares, when it is closed later this year, is expected to transform our approach in the Kansas City market. The acquisition of Weaver Wealth Management expands our wealth management reach in the important North Texas market. And the acquisition of E-Spectrum Advisors adds energy industry M&A advisory to our stable of fee-generating businesses and supplements our energy lending and energy risk management businesses. In addition, we returned $149 million of capital to shareholders during the fourth quarter through our stock buyback program as well as regular quarterly dividends.”

Highlights of the fourth quarter of 2015 included:

• Net interest revenue totaled $181.3 million for the fourth quarter of 2015, up $2.6 million over the third quarter of 2015. Net interest margin increased to 2.64 percent, compared to 2.61 percent. Average earning assets increased $256 million over the prior quarter.

• Fees and commissions revenue totaled $155.8 million for the fourth quarter of 2015, compared to $164.7 million for the third quarter of 2015. Mortgage banking revenue decreased $8.1 million due primarily to lower loan production volume.

• Change in fair value of mortgage servicing rights, net of economic hedges increased pre-tax net income in the fourth quarter of 2015 by $2.6 million and decreased pre-tax net income in the third quarter of 2015 by $4.4 million.

• Operating expenses were $232.6 million for the fourth quarter, an increase of $7.9 million over the previous quarter. Personnel expense increased $4.1 million and non-personnel expense increased $3.8 million.

• A $22.5 million provision for credit losses was recorded in the fourth quarter, compared to $7.5 million for the third quarter of 2015. The additional provision reflects continued credit migration and increased impairment in our energy loan portfolio. Net loans charged off were $3.0 million for the fourth quarter of 2015, compared to $1.8 million in the third quarter.

• The combined allowance for credit losses totaled $227 million or 1.43 percent of outstanding loans at December 31, 2015, compared to $208 million or 1.35 percent of outstanding loans at September 30, 2015. The portion of the combined allowance attributed to the energy portfolio totaled 2.89 percent of outstanding energy loans at December 31, an increase from 2.05 percent of outstanding energy loans at September 30.

• Nonperforming assets that are not guaranteed by U.S. government agencies totaled $156 million or 0.99 percent of outstanding loans and repossessed assets (excluding those guaranteed by U.S. government agencies) at December 31, 2015 and $119 million or 0.78 percent of outstanding loans and repossessed assets (excluding those guaranteed by U.S. government agencies) at September 30, 2015. The increase over the prior quarter was primarily due to a single energy credit.

• Average loans increased $395 million over the previous quarter due primarily to growth in commercial loans, partially offset by a decrease in commercial real estate loans. Period-end outstanding loan balances were $15.9 billion at December 31, 2015, an increase of $574 million over September 30, 2015. Commercial loan balances grew $455 million over the prior quarter.

• Average deposits increased $12 million over the previous quarter. Growth in demand deposit balances was partially offset by lower interest-bearing transaction and time deposits compared to the prior quarter. Period end deposits grew by $469 million over September 30, 2015 to $21.1 billion at December 31, 2015.

• The common equity Tier 1 capital ratio was 12.13 percent at December 31. In addition, the company's Tier 1 capital ratio was 12.13 percent, total capital ratio was 13.30 percent and leverage ratio was 9.25 percent. At September 30, 2015, the common equity Tier 1 capital ratio was 12.78 percent, the Tier 1 capital ratio was 12.78 percent, total capital ratio was 13.89 percent and leverage ratio was 9.55 percent. The decrease in capital ratios was primarily due to share repurchases during the fourth quarter. The company repurchased 1,874,074 common shares at an average price of $63.91 per share.

• The company paid a regular quarterly cash dividend of $29 million or $0.43 per common share during the fourth quarter of 2015. On January 26, 2016, the board of directors approved a quarterly cash dividend of $0.43 per common share payable on or about February 26, 2016 to shareholders of record as of February 12, 2016.

Net Interest Revenue

Net interest revenue increased $2.6 million over the third quarter of 2015.

Net interest margin was 2.64 percent for the fourth quarter of 2015, up from 2.61 percent for the third quarter of 2015. The yield on average earning assets was 2.86 percent, an increase of 3 basis points over the prior quarter. The yield on the available for sale securities portfolio increased 3 basis points to 2.04 percent. The loan portfolio yield increased 1 basis point to 3.55 percent. Funding costs increased 2 basis points over the prior quarter to 0.34 percent. The benefit of non-interest bearing funding sources increased by 2 basis points over the previous quarter.

Average earning assets increased $256 million during the fourth quarter of 2015. Average loan balances increased $395 million primarily due to commercial loan growth and available for sale securities increased $29 million. These increases were partially offset by a decrease in the average balance of residential mortgage loans held for sale, interest-bearing cash and cash equivalents and trading securities. Average deposits increased $12 million over the third quarter of 2015. The average balance of borrowed funds increased $132 million.

Fees and Commissions Revenue

Fees and commissions revenue totaled $155.8 million for the fourth quarter of 2015, an $8.8 million decrease compared to the third quarter of 2015 primarily due to a decrease in mortgage banking revenue.

Mortgage banking revenue totaled $25.0 million for the fourth quarter of 2015, a decrease of $8.1 million compared to the third quarter of 2015. Revenue from mortgage loan production decreased $8.6 million compared to the prior quarter. Increased average mortgage interest rates along with new disclosure requirements known as TRID and seasonal factors reduced mortgage production volume. Total mortgage loans originated during the fourth quarter decreased $249 million or 15 percent compared to the previous quarter and outstanding mortgage loan commitments at December 31 decreased $142 million or 19 percent from September 30. In addition, the value of mortgage loans and commitments held at December 31, net of forward sales contracts, decreased due to rising interest rates during the fourth quarter.

Brokerage and trading revenue totaled $30.3 million for the fourth quarter of 2015, down $1.3 million from the previous quarter. Underwriting revenue decreased $1.3 million due to the timing of completed transactions. Deposit service charges and fees totaled $22.8 million, a decrease of $793 thousand from the third quarter. The decrease was evenly distributed between commercial deposit fees that are based on transaction activity and overdraft fees.

Operating Expenses

Total operating expenses were $232.6 million for the fourth quarter of 2015, an increase of $7.9 million over the third quarter of 2015.

Personnel costs increased $4.1 million over the previous quarter. Incentive compensation increased $2.3 million, primarily due to a change in estimated share-based compensation expense. Share-based compensation includes grants with vesting criteria based on the company's earnings per share growth relative to peers over a forward looking three-year performance period. The company's forecasted earnings per share growth over the performance period increased due largely to common shares repurchased during the third and fourth quarters. Regular compensation expense increased $1.1 million. Employee benefits expense increased $757 thousand. Increased employee healthcare costs were partially offset by decreased retirement plan costs and a seasonal decrease in payroll taxes.

Non-personnel expense increased $3.8 million over the third quarter of 2015. Mortgage banking costs increased $2.4 million over the third quarter primarily due to continued resolution of outstanding claims from the servicing of defaulted government guaranteed mortgage loans. Outstanding claims decreased to $30 million at December 31, 2015 from $59 million at December 31, 2014 from these resolution efforts. Business promotion costs increased $2.5 million due to the timing of incurred expenses. Non-personnel expense for the third quarter included a $2.6 million charge to settle litigation and a $796 thousand contribution to the BOKF Foundation.

Loans, Deposits and Capital

Loans

Outstanding loans were $15.9 billion at December 31, 2015, an increase of $574 million over September 30. All loan categories grew over the prior quarter.

Outstanding commercial loan balances increased $455 million over September 30, 2015. Energy sector loans grew $259 million over September 30, 2015 and healthcare sector loans were up $142 million. Service sector loan balances grew by $78 million and other commercial and industrial loans increased $15 million. These increases were partially offset by a $40 million decrease in wholesale/retail sector loan balances. Unfunded energy loan commitments decreased by $355 million in the fourth quarter to $2.4 billion. The decrease in unfunded energy commitments largely reflects the increase in outstanding loans during the quarter. All other unfunded commercial loan commitments totaled $4.4 billion at December 31, 2015, an increase of $252 million over September 30, 2015.

Commercial real estate loans increased $24 million over September 30, 2015. Retail sector loans grew by $27 million over the prior quarter. Loans secured by office buildings increased $12 million and residential construction and land development loans increased $6.9 million. This growth was offset by a $13 million decrease in other commercial real estate loans and a $7.6 million decrease in loans secured by multifamily residential properties. Unfunded commercial real estate loan commitments totaled $1.1 billion at December 31, 2015, an increase of $128 million over September 30, 2015.

Norm Bagwell, executive vice president - Regional Banks, stated, “Loan growth was stronger than expected in the fourth quarter, driven by continued momentum in healthcare as well as growth in the energy portfolio. On a geographic basis, Kansas City, Oklahoma, and Arizona were our strongest markets, with double-digit annualized growth. To date, the business environment in our footprint has been sound despite the energy downturn, and we have yet to see any material spillover impact on the overall economy.”

Stacy Kymes, executive vice president - Corporate Banking, added, “Energy loan growth in the fourth quarter was positively impacted by advances we made to a well-secured longstanding energy client, as well as new business we generated from select, high quality opportunities. These demonstrate our continued commitment to energy lending even in the current commodity price environment. As we are now into the second year of low commodity prices, we are cognizant that credit losses may increase or even rise above what we have seen in previous cycles. However, we remain confident in our underwriting practices in energy lending, which have historically resulted in limited credit losses, and believe we are appropriately reserved and well-positioned to work through the current downturn.”

Deposits

Deposits totaled $21.1 billion at December 31, 2015, an increase of $469 million over September 30, 2015 primarily due to normal seasonality and temporary customer activity. Interest-bearing transaction account balances grew by $300 million and demand deposit balances increased $255 million. Time deposits decreased $92 million. Among the lines of business, commercial deposits increased $139 million, consumer deposits decreased $61 million and wealth management deposits increased $271 million.

Capital

New regulatory capital rules were effective for BOK Financial on January 1, 2015 and established a 7 percent threshold for the common equity Tier 1 ratio. The company's common equity Tier 1 capital ratio was 12.13 percent at December 31, 2015. In addition, the company's Tier 1 capital ratio was 12.13 percent, total capital ratio was 13.30 percent and leverage ratio was 9.25 percent at December 31, 2015. At September 30, 2015, the company’s common equity Tier 1 capital ratio was 12.78 percent, Tier 1 capital ratio was 12.78 percent, total capital ratio was 13.89 percent and leverage ratio was 9.55 percent.

The company's tangible common equity ratio, a non-GAAP measure, was 9.02 percent at December 31, 2015 and 9.78 percent at September 30, 2015. The tangible common equity ratio is primarily based on total shareholders' equity which includes unrealized gains and losses on available for sale securities. The company has elected to exclude unrealized gains and losses from available for sale securities from its calculation of Tier 1 capital for regulatory capital purposes, consistent with the treatment under the previous capital rules.

Credit Quality

Nonperforming assets totaled $252 million or 1.58 percent of outstanding loans and repossessed assets at December 31, 2015 compared to $204 million or 1.33 percent of outstanding loans and repossessed assets at September 30, 2015. Nonperforming assets that are not guaranteed by U.S. government agencies totaled $156 million or 0.99 percent of outstanding loans and repossessed assets (excluding those guaranteed by U.S. government agencies) at December 31, 2015 and $119 million or 0.78 percent at September 30, 2015. The $37 million increase over the prior quarter was primarily due to a single energy credit.

Excluding loans guaranteed by U.S. government agencies, nonaccruing loans totaled $125 million or 0.80 percent of outstanding loans at December 31, 2015 compared to $85 million or 0.56 percent of outstanding loans at September 30, 2015. New nonaccruing loans identified in the fourth quarter totaled $55 million, offset by $7.0 million in payments received, $4.9 million in charge-offs and $3.0 million in foreclosures and repossessions. At December 31, 2015, nonaccruing commercial loans totaled $76 million or 0.75 percent of outstanding commercial loans, including $61 million or 1.98 percent of energy sector loans. Nonaccruing commercial real estate loans totaled $9.0 million or 0.28 percent of outstanding commercial real estate loans.

Potential problem loans, which are defined as performing loans that, based on known information, cause management concern as to the borrowers' ability to continue to perform, increased to $155 million at December 31 from $120 million at September 30. The increase largely resulted from a $33 million increase in potential problem energy loans to $130 million.

Net charge-offs were $3.0 million for the fourth quarter of 2015, compared to net charge-offs of $1.8 million for the third quarter of 2015. Gross charge-offs totaled $4.9 million for the fourth quarter, compared to $5.3 million for the previous quarter. Recoveries totaled $1.9 million for the fourth quarter of 2015 and $3.5 million for the third quarter of 2015.

After evaluating all credit factors, including the inherent risk of falling energy prices, the company determined that a $22.5 million provision for credit losses was necessary during the fourth quarter of 2015. The additional provision was necessary due to increased impairment and continued credit migration in our energy loan portfolio. In addition, a single borrower reported steeper than expected production declines and higher lease operating expenses, leading to a $14 million impairment on the loan. The combined allowance for credit losses totaled $227 million or 1.43 percent of outstanding loans and 181.46 percent of nonaccruing loans, excluding loans guaranteed by U.S. government agencies, at December 31, 2015. The allowance for loan losses was $226 million and the accrual for off-balance sheet credit losses was $1.7 million.

Energy Portfolio Credit Quality

The company's $3.1 billion energy loan portfolio consists of 82 percent of loans to exploration and production companies, 9 percent to energy services companies and 9 percent to midstream and other energy related borrowers. Substantially all of the loans to exploration and production companies are secured by first lien positions in established energy reserves. Only $10 million of these loans are in junior lien positions. None represent higher-risk mezzanine financing or subordinated debt and none are high-yield debt.

The portion of the allowance for credit losses attributed to the energy portfolio totaled $90 million or 2.89 percent of outstanding energy loans. Management believes this is appropriate based on the current risk characteristics of the energy portfolio.

Securities and Derivatives

The fair value of the available for sale securities portfolio totaled $9.0 billion at December 31, 2015 and $8.8 billion at September 30, 2015. At December 31, 2015, the available for sale portfolio consisted primarily of $5.9 billion of residential mortgage-backed securities fully backed by U.S. government agencies and $2.9 billion of commercial mortgage-backed securities fully backed by U.S. government agencies.

The available for sale securities portfolio had a net unrealized gain of $38 million at December 31, 2015, compared to a net unrealized gain of $145 million at September 30, 2015. The decrease in the net unrealized gain was primarily due to an increase in interest rates during the fourth quarter. Net unrealized gains on residential mortgage-backed securities issued by U.S. government agencies at December 31, 2015 decreased $68 million during the fourth quarter to a net unrealized gain of $37 million at December 31, 2015. Commercial mortgage-backed securities had a net unrealized loss of $13 million at December 31, 2015, compared to a net unrealized gain of $27 million at September 30, 2015.

In the fourth quarter of 2015, the company recognized net gains of $2.1 million from sales of $436 million of available for sale securities. Securities were sold either because they had reached their expected maximum potential return or to move into securities that are expected to perform better in the current rate environment. Net gains from sales of $451 million of available for sale securities in the third quarter of 2015 totaled $2.2 million.

The company also maintains a portfolio of residential mortgage-backed securities issued by U.S. government agencies and interest rate derivative contracts designated as an economic hedge of the changes in the fair value of our mortgage servicing rights. The value of our mortgage servicing rights increased by $7.4 million due primarily to an increase in residential mortgage interest rates during the fourth quarter of 2015. The value of securities and interest rate derivative contracts held as an economic hedge decreased by $4.9 million. The fair value of mortgage servicing rights, net of economic hedge, decreased by $4.4 million in the third quarter, primarily due to a decrease in residential mortgage interest rates.

Conference Call and Webcast

The company will hold a conference call at 9 a.m. Central time on Wednesday, January 27, 2016 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 1-412-902-6611. A conference call and webcast replay will also be available shortly after conclusion of the live call at www.bokf.com or by dialing 1-412-317-0088 and referencing conference ID # 10078587.

About BOK Financial Corporation

BOK Financial is a $31 billion regional financial services company based in Tulsa, Oklahoma. The company's stock is publicly traded on NASDAQ under the Global Select market listings (symbol: BOKF). BOK Financial's holdings include BOKF, NA, BOSC, Inc. and The Milestone Group, Inc. BOKF, NA operates TransFund, Cavanal Hill Investment Management, BOK Financial Asset Management, Inc. and seven banking divisions: Bank of Albuquerque, Bank of Arizona, Bank of Arkansas, Bank of Kansas City, Bank of Oklahoma, Bank of Texas and Colorado State Bank and Trust. Through its subsidiaries, the company provides commercial and consumer banking, investment and trust 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 December 31, 2015 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 -- UNAUDITED BOK FINANCIAL CORPORATION (In thousands) Dec. 31, 2015 Sept. 30, 2015 Dec. 31, 2014 ASSETS Cash and due from banks $ 573,699 $ 489,268 $ 550,576 Interest-bearing cash and cash equivalents 2,069,900 1,830,105 1,925,266 Trading securities 122,404 181,131 188,700 Investment securities 597,836 612,384 652,360 Available for sale securities 9,042,733 8,801,089 8,978,945 Fair value option securities 444,217 427,760 311,597 Restricted equity securities 273,684 263,587 141,494 Residential mortgage loans held for sale 308,439 357,414 304,182 Loans: Commercial 10,252,531 9,797,422 9,095,670 Commercial real estate 3,259,033 3,235,067 2,728,150 Residential mortgage 1,876,893 1,868,995 1,949,512 Personal 552,697 465,957 434,705 Total loans 15,941,154 15,367,441 14,208,037 Allowance for loan losses (225,524 ) (204,116 ) (189,056 ) Loans, net of allowance 15,715,630 15,163,325 14,018,981 Premises and equipment, net 306,490 294,669 273,833 Receivables 163,480 151,451 132,408 Goodwill 385,461 385,461 377,780 Intangible assets, net 43,909 44,999 34,376 Mortgage servicing rights, net 218,605 200,049 171,976 Real estate and other repossessed assets, net 30,731 33,116 101,861 Derivative contracts, net 586,270 726,159 361,874 Cash surrender value of bank-owned life insurance 303,335 300,981 293,978 Receivable on unsettled securities sales 40,193 30,009 74,259 Other assets 249,112 273,948 195,252 TOTAL ASSETS $ 31,476,128 $ 30,566,905 $ 29,089,698 LIABILITIES AND EQUITY Deposits: Demand $ 8,296,888 $ 8,041,767 $ 8,066,357 Interest-bearing transaction 9,998,954 9,698,849 10,114,355 Savings 386,252 380,296 351,431 Time 2,406,064 2,498,531 2,608,716 Total deposits 21,088,158 20,619,443 21,140,859 Funds purchased 491,192 62,297 57,031 Repurchase agreements 722,444 555,677 1,187,489 Other borrowings 4,837,879 4,635,150 2,133,774 Subordinated debentures 226,350 226,314 347,983 Accrued interest, taxes, and expense 119,584 158,048 120,211 Due on unsettled securities purchases 16,897 98,351 290,540 Derivative contracts, net 581,701 636,115 354,554 Other liabilities 124,284 159,348 121,051 TOTAL LIABILITIES 28,208,489 27,150,743 25,753,492 Shareholders' equity: Capital, surplus and retained earnings 3,208,969 3,291,450 3,245,506 Accumulated other comprehensive income 21,587 85,776 56,673 TOTAL SHAREHOLDERS' EQUITY 3,230,556 3,377,226 3,302,179 Non-controlling interests 37,083 38,936 34,027 TOTAL EQUITY 3,267,639 3,416,162 3,336,206 TOTAL LIABILITIES AND EQUITY $ 31,476,128 $ 30,566,905 $ 29,089,698   AVERAGE BALANCE SHEETS -- UNAUDITED BOK FINANCIAL CORPORATION (in thousands) Three Months Ended Dec. 31, 2015 Sept. 30, 2015 June 30, 2015 March 31, 2015 Dec. 31, 2014 ASSETS Interest-bearing cash and cash equivalents $ 1,995,945 $ 2,038,611 $ 2,002,456 $ 2,089,546 $ 2,090,176 Trading securities 150,402 179,098 127,391 140,968 164,502 Investment securities 602,369 616,091 628,489 642,825 650,911 Available for sale securities 8,971,090 8,942,261 9,063,006 9,101,464 9,161,901 Fair value option securities 435,449 429,951 435,294 404,775 221,773 Restricted equity securities 262,461 255,610 221,911 179,385 182,737 Residential mortgage loans held for sale 310,425 401,359 464,269 348,054 321,746 Loans: Commercial 10,024,756 9,685,768 9,634,306 9,308,307 8,886,952 Commercial real estate 3,186,629 3,198,200 2,989,615 2,909,565 2,665,547 Residential mortgage 1,835,195 1,847,696 1,857,464 1,909,998 1,904,777 Personal 540,418 460,647 423,967 426,712 424,729 Total loans 15,586,998 15,192,311 14,905,352 14,554,582 13,882,005 Allowance for loan losses (207,156 ) (202,829 ) (198,400 ) (194,948 ) (190,787 ) Total loans, net 15,379,842 14,989,482 14,706,952 14,359,634 13,691,218 Total earning assets 28,107,983 27,852,463 27,649,768 27,266,651 26,484,964 Cash and due from banks 514,629 487,283 492,737 513,734 528,595 Derivative contracts, net 657,780 669,264 475,687 447,565 352,565 Cash surrender value of bank-owned life insurance 301,793 299,424 297,022 294,803 292,411 Receivable on unsettled securities sales 62,228 64,591 94,374 99,706 69,109 Other assets 1,435,763 1,396,708 1,454,484 1,348,245 1,404,553 TOTAL ASSETS $ 31,080,176 $ 30,769,733 $ 30,464,072 $ 29,970,704 $ 29,132,197 LIABILITIES AND EQUITY Deposits: Demand $ 8,312,961 $ 7,994,607 $ 7,996,717 $ 7,885,485 $ 7,974,165 Interest-bearing transaction 9,527,491 9,760,839 10,063,589 10,338,396 9,730,564 Savings 382,284 379,828 381,833 365,835 346,132 Time 2,482,714 2,557,874 2,651,820 2,659,323 2,647,147 Total deposits 20,705,450 20,693,148 21,093,959 21,249,039 20,698,008 Funds purchased 73,220 70,281 63,312 69,730 71,728 Repurchase agreements 623,921 672,085 773,977 1,000,839 996,308 Other borrowings 4,957,175 4,779,981 4,001,479 3,084,214 3,021,094 Subordinated debentures 226,332 226,296 307,903 348,007 347,960 Derivative contracts, net 632,699 597,908 455,431 418,848 321,367 Due on unsettled securities purchases 248,811 90,135 151,369 205,096 137,566 Other liabilities 251,953 240,704 235,173 243,370 228,021 TOTAL LIABILITIES 27,719,561 27,370,538 27,082,603 26,619,143 25,822,052 Total equity 3,360,615 3,399,195 3,381,469 3,351,561 3,310,145 TOTAL LIABILITIES AND EQUITY $ 31,080,176 $ 30,769,733 $ 30,464,072 $ 29,970,704 $ 29,132,197   STATEMENTS OF EARNINGS -- UNAUDITED BOK FINANCIAL CORPORATION (in thousands, except per share data) Three Months Ended Year Ended Dec. 31, Dec. 31, 2015 2014 2015 2014 Interest revenue $ 196,782 $ 186,620 $ 766,828 $ 732,239 Interest expense 15,521 16,956 63,474 67,045 Net interest revenue 181,261 169,664 703,354 665,194 Provision for credit losses 22,500 — 34,000 — Net interest revenue after provision for credit losses 158,761 169,664 669,354 665,194 Other operating revenue: Brokerage and trading revenue 30,255 30,602 129,556 134,437 Transaction card revenue 32,319 31,467 128,621 123,689 Fiduciary and asset management revenue 31,165 30,649 126,153 115,652 Deposit service charges and fees 22,813 22,581 90,431 90,911 Mortgage banking revenue 25,039 30,105 134,375 109,093 Bank-owned life insurance 2,348 2,380 9,304 9,086 Other revenue 11,885 10,071 40,579 38,451 Total fees and commissions 155,824 157,855 659,019 621,319 Gain on other assets, net 2,329 338 5,702 2,953 Gain (loss) on derivatives, net (732 ) 1,070 430 2,776 Gain (loss) on fair value option securities, net (4,127 ) 3,685 (3,684 ) 10,189 Change in fair value of mortgage servicing rights 7,416 (10,821 ) (4,853 ) (16,445 ) Gain on available for sale securities, net 2,132 149 12,058 1,539 Total other-than-temporary impairment losses (2,114 ) (373 ) (2,895 ) (373 ) Portion of loss recognized in (reclassified from) other comprehensive income 387 — 1,076 — Net impairment losses recognized in earnings (1,727 ) (373 ) (1,819 ) (373 ) Total other operating revenue 161,115 151,903 666,853 621,958 Other operating expense: Personnel 133,182 125,741 523,487 476,931 Business promotion 8,416 7,498 27,851 26,649 Charitable contributions to BOKF Foundation — 1,847 796 4,267 Professional fees and services 10,357 11,058 40,123 44,440 Net occupancy and equipment 19,356 22,655 76,016 77,232 Insurance 5,415 4,777 20,375 18,578 Data processing and communications 31,248 30,259 122,383 115,225 Printing, postage and supplies 3,108 3,168 13,498 13,518 Net losses (gains) and operating expenses of repossessed assets 343 (1,497 ) 1,446 6,019 Amortization of intangible assets 1,090 1,100 4,359 3,965 Mortgage banking costs 11,496 11,166 38,997 31,705 Other expense 8,547 8,105 35,233 28,993 Total other operating expense 232,558 225,877 904,564 847,522 Net income before taxes 87,318 95,690 431,643 439,630 Federal and state income taxes 26,242 30,109 139,384 144,151 Net income 61,076 65,581 292,259 295,479 Net income attributable to non-controlling interests 1,475 1,263 3,694 3,044 Net income attributable to BOK Financial Corporation shareholders $ 59,601 $ 64,318 $ 288,565 $ 292,435 Average shares outstanding: Basic 66,378,380 68,481,630 67,594,689 68,394,194 Diluted 66,467,729 68,615,808 67,691,658 68,544,770 Net income per share: Basic $ 0.89 $ 0.93 $ 4.22 $ 4.23 Diluted $ 0.89 $ 0.93 $ 4.21 $ 4.22   FINANCIAL HIGHLIGHTS -- UNAUDITED BOK FINANCIAL CORPORATION (in thousands, except ratio and share data) Three Months Ended Dec. 31, 2015 Sept. 30, 2015 June 30, 2015 March 31, 2015 Dec. 31, 2014 Capital: Period-end shareholders' equity $ 3,230,556 $ 3,377,226 $ 3,375,632 $ 3,357,161 $ 3,302,179 Risk weighted assets $ 23,429,897 $ 22,706,537 $ 22,533,295 $ 22,053,246 $ 21,290,908 Risk-based capital ratios1: Common equity tier 1 12.13 % 12.78 % 13.01 % 13.07 % N/A Tier 1 12.13 % 12.78 % 13.01 % 13.07 % 13.33 % Total capital 13.30 % 13.89 % 14.11 % 14.39 % 14.66 % Leverage ratio 9.25 % 9.55 % 9.75 % 9.74 % 9.96 % Tangible common equity ratio2 9.02 % 9.78 % 9.72 % 9.86 % 10.08 % Common stock: Book value per share $ 49.03 $ 49.88 $ 48.96 $ 48.71 $ 47.78 Market value per share: High $ 74.73 $ 70.26 $ 71.66 $ 61.78 $ 68.69 Low $ 58.25 $ 57.04 $ 59.59 $ 52.63 $ 56.87 Cash dividends paid $ 28,967 $ 28,766 $ 28,841 $ 28,952 $ 29,114 Dividend payout ratio 48.60 % 38.41 % 36.40 % 38.68 % 45.27 % Shares outstanding, net 65,894,032 67,713,031 68,945,139 68,922,314 69,113,736 Stock buy-back program: Shares repurchased 1,874,074 1,258,348 — 502,156 200,000 Amount $ 119,780 $ 80,276 $ — $ 29,484 $ 12,337 Average price per share $ 63.91 $ 63.79 $ — $ 58.71 $ 61.68 Performance ratios (quarter annualized): Return on average assets 0.76 % 0.97 % 1.04 % 1.01 % 0.88 % Return on average equity 7.12 % 8.84 % 9.50 % 9.15 % 7.79 % Net interest margin 2.64 % 2.61 % 2.61 % 2.55 % 2.61 % Efficiency ratio 67.93 % 64.34 % 64.21 % 64.91 % 67.95 % 1  Risk-based capital ratios March 31, 2015 and thereafter calculated under revised regulatory capital rules issued July 2013 and effective for the Company January 1, 2015. Previous risk-based capital ratios presented are calculated in accordance with then current regulatory capital rules. Reconciliation of non-GAAP measures: 2  Tangible common equity ratio: Total shareholders' equity $ 3,230,556 $ 3,377,226 $ 3,375,632 $ 3,357,161 $ 3,302,179 Less: Goodwill and intangible assets, net 429,370 430,460 431,515 411,066 412,156 Tangible common equity $ 2,801,186 $ 2,946,766 $ 2,944,117 $ 2,946,095 $ 2,890,023 Total assets $ 31,476,128 $ 30,566,905 $ 30,725,563 $ 30,299,978 $ 29,089,698 Less: Goodwill and intangible assets, net 429,370 430,460 431,515 411,066 412,156 Tangible assets $ 31,046,758 $ 30,136,445 $ 30,294,048 $ 29,888,912 $ 28,677,542 Tangible common equity ratio 9.02 % 9.78 % 9.72 % 9.86 % 10.08 % Other data: Fiduciary assets $ 38,333,638 $ 37,780,669 $ 38,772,018 $ 37,511,746 $ 35,997,877 Tax equivalent adjustment $ 3,222 $ 3,244 $ 3,035 $ 2,956 $ 2,859 Net unrealized gain on available for sale securities $ 38,109 $ 144,884 $ 89,158 $ 152,107 $ 96,955 Mortgage banking: Mortgage servicing portfolio $ 19,678,226 $ 18,928,726 $ 17,979,623 $ 16,937,128 $ 16,162,887 Mortgage commitments $ 601,147 $ 742,742 $ 849,619 $ 824,036 $ 627,505 Mortgage loans funded for sale $ 1,365,431 $ 1,614,225 $ 1,828,230 $ 1,565,016 $ 1,264,269 Mortgage loan refinances to total fundings 41 % 30 % 40 % 56 % 37 % Mortgage loans sold $ 1,424,527 $ 1,778,099 $ 1,861,968 $ 1,382,042 $ 1,350,529 Net realized gains on mortgage loans sold $ 15,705 $ 18,968 $ 23,856 $ 17,251 $ 17,671 Change in net unrealized gain on mortgage loans held for sale (5,615 ) (251 ) (743 ) 8,789 (482 ) Total production revenue 10,090 18,717 23,113 26,040 17,189 Servicing revenue 14,949 14,453 13,733 13,280 12,916 Total mortgage banking revenue $ 25,039 $ 33,170 $ 36,846 $ 39,320 $ 30,105 Gain (loss) on mortgage servicing rights, net of economic hedge: Gain (loss) on mortgage hedge derivative contracts, net $ (732 ) $ 1,460 $ (1,005 ) $ 911 $ 1,070 Gain (loss) on fair value option securities, net (4,127 ) 5,926 (8,130 ) 2,647 3,685 Gain (loss) on economic hedge of mortgage servicing rights (4,859 ) 7,386 (9,135 ) 3,558 4,755 Gain (loss) on changes in fair value of mortgage servicing rights 7,416 (11,757 ) 8,010 (8,522 ) (10,821 ) Gain (loss) on changes in fair value of mortgage servicing rights, net of economic hedges $ 2,557 $ (4,371 ) $ (1,125 ) $ (4,964 ) $ (6,066 ) Net interest revenue on fair value option securities $ 2,137 $ 2,140 $ 1,985 $ 1,739 $ 912   QUARTERLY EARNINGS TREND -- UNAUDITED BOK FINANCIAL CORPORATION (in thousands, except ratio and per share data) Three Months Ended Dec. 31, 2015 Sept. 30, 2015 June 30, 2015 March 31, 2015 Dec. 31, 2014 Interest revenue $ 196,782 $ 193,664 $ 191,813 $ 184,569 $ 186,620 Interest expense 15,521 15,028 16,082 16,843 16,956 Net interest revenue 181,261 178,636 175,731 167,726 169,664 Provision for credit losses 22,500 7,500 4,000 — — Net interest revenue after provision for credit losses 158,761 171,136 171,731 167,726 169,664 Other operating revenue: Brokerage and trading revenue 30,255 31,582 36,012 31,707 30,602 Transaction card revenue 32,319 32,514 32,778 31,010 31,467 Fiduciary and asset management revenue 31,165 30,807 32,712 31,469 30,649 Deposit service charges and fees 22,813 23,606 22,328 21,684 22,581 Mortgage banking revenue 25,039 33,170 36,846 39,320 30,105 Bank-owned life insurance 2,348 2,360 2,398 2,198 2,380 Other revenue 11,885 10,618 9,473 8,603 10,071 Total fees and commissions 155,824 164,657 172,547 165,991 157,855 Gain on other assets, net 2,329 1,161 1,457 755 338 Gain (loss) on derivatives, net (732 ) 1,283 (1,032 ) 911 1,070 Gain (loss) on fair value option securities, net (4,127 ) 5,926 (8,130 ) 2,647 3,685 Change in fair value of mortgage servicing rights 7,416 (11,757 ) 8,010 (8,522 ) (10,821 ) Gain on available for sale securities, net 2,132 2,166 3,433 4,327 149 Total other-than-temporary impairment losses (2,114 ) — — (781 ) (373 ) Portion of loss recognized in (reclassified from) other comprehensive income 387 — — 689 — Net impairment losses recognized in earnings (1,727 ) — — (92 ) (373 ) Total other operating revenue 161,115 163,436 176,285 166,017 151,903 Other operating expense: Personnel 133,182 129,062 132,695 128,548 125,741 Business promotion 8,416 5,922 7,765 5,748 7,498 Contribution to BOKF Foundation — 796 — — 1,847 Professional fees and services 10,357 10,147 9,560 10,059 11,058 Net occupancy and equipment 19,356 18,689 18,927 19,044 22,655 Insurance 5,415 4,864 5,116 4,980 4,777 Data processing and communications 31,248 30,708 30,655 29,772 30,259 Printing, postage and supplies 3,108 3,376 3,553 3,461 3,168 Net losses (gains) and operating expenses of repossessed assets 343 267 223 613 (1,497 ) Amortization of intangible assets 1,090 1,089 1,090 1,090 1,100 Mortgage banking costs 11,496 9,107 8,227 10,167 11,166 Other expense 8,547 10,601 9,302 6,783 8,105 Total other operating expense 232,558 224,628 227,113 220,265 225,877 Net income before taxes 87,318 109,944 120,903 113,478 95,690 Federal and state income taxes 26,242 34,128 40,630 38,384 30,109 Net income 61,076 75,816 80,273 75,094 65,581 Net income attributable to non-controlling interests 1,475 925 1,043 251 1,263 Net income attributable to BOK Financial Corporation shareholders $ 59,601 $ 74,891 $ 79,230 $ 74,843 $ 64,318 Average shares outstanding: Basic 66,378,380 67,668,076 68,096,341 68,254,780 68,481,630 Diluted 66,467,729 67,762,483 68,210,353 68,344,886 68,615,808 Net income per share: Basic $ 0.89 $ 1.09 $ 1.15 $ 1.08 $ 0.93 Diluted $ 0.89 $ 1.09 $ 1.15 $ 1.08 $ 0.93   LOANS TREND -- UNAUDITED BOK FINANCIAL CORPORATION (In thousands) Dec. 31, 2015 Sept. 30, 2015 June 30, 2015 March 31, 2015 Dec. 31, 2014 Commercial: Energy $ 3,097,328 $ 2,838,167 $ 2,902,143 $ 2,902,994 $ 2,860,428 Services 2,784,276 2,706,624 2,681,126 2,592,876 2,391,530 Healthcare 1,883,380 1,741,680 1,646,025 1,511,177 1,454,969 Wholesale/retail 1,422,064 1,461,936 1,533,730 1,405,800 1,440,015 Manufacturing 556,729 555,677 579,549 560,925 532,594 Other commercial and industrial 508,754 493,338 433,148 417,391 416,134 Total commercial 10,252,531 9,797,422 9,775,721 9,391,163 9,095,670 Commercial real estate: Retail 796,499 769,449 688,447 658,860 666,889 Multifamily 751,085 758,658 711,333 749,986 704,298 Office 637,707 626,151 563,085 513,862 415,544 Industrial 563,169 563,871 488,054 478,584 428,817 Residential construction and land development 160,426 153,510 148,574 139,152 143,591 Other real estate 350,147 363,428 434,004 395,020 369,011 Total commercial real estate 3,259,033 3,235,067 3,033,497 2,935,464 2,728,150 Residential mortgage: Permanent mortgage 945,336 937,664 946,324 964,264 969,951 Permanent mortgages guaranteed by U.S. government agencies 196,937 192,712 190,839 200,179 205,950 Home equity 734,620 738,619 747,565 762,556 773,611 Total residential mortgage 1,876,893 1,868,995 1,884,728 1,926,999 1,949,512 Personal 552,697 465,957 430,190 430,510 434,705 Total $ 15,941,154 $ 15,367,441 $ 15,124,136 $ 14,684,136 $ 14,208,037   LOANS BY PRINCIPAL MARKET AREA -- UNAUDITED BOK FINANCIAL CORPORATION (in thousands) Dec. 31, 2015 Sept. 30, 2015 June 30, 2015 March 31, 2015 Dec. 31, 2014 Bank of Oklahoma: Commercial $ 3,782,687 $ 3,514,391 $ 3,529,406 $ 3,276,553 $ 3,142,689 Commercial real estate 739,829 677,372 614,995 612,639 603,610 Residential mortgage 1,409,114 1,405,235 1,413,690 1,442,340 1,467,096 Personal 255,387 185,463 190,909 205,496 206,115 Total Bank of Oklahoma 6,187,017 5,782,461 5,749,000 5,537,028 5,419,510 Bank of Texas: Commercial 3,908,425 3,752,193 3,738,742 3,709,467 3,549,128 Commercial real estate 1,204,202 1,257,741 1,158,056 1,130,973 1,027,817 Residential mortgage 219,126 222,395 228,683 237,985 235,948 Personal 203,496 194,051 156,260 149,827 154,363 Total Bank of Texas 5,535,249 5,426,380 5,281,741 5,228,252 4,967,256 Bank of Albuquerque: Commercial 375,839 368,027 392,362 388,005 383,439 Commercial real estate 313,422 312,953 291,953 296,696 296,358 Residential mortgage 120,507 121,232 123,376 127,326 127,999 Personal 11,557 10,477 11,939 12,095 10,899 Total Bank of Albuquerque 821,325 812,689 819,630 824,122 818,695 Bank of Arkansas: Commercial 92,359 76,044 99,086 91,485 95,510 Commercial real estate 69,320 82,225 85,997 87,034 88,301 Residential mortgage 8,169 8,063 6,999 6,807 7,261 Personal 819 4,921 5,189 5,114 5,169 Total Bank of Arkansas 170,667 171,253 197,271 190,440 196,241 Colorado State Bank & Trust: Commercial 987,076 1,029,694 1,019,454 1,008,316 977,961 Commercial real estate 223,946 229,835 229,721 209,272 194,553 Residential mortgage 53,782 50,138 54,135 55,925 57,119 Personal 23,384 30,683 30,373 27,792 27,918 Total Colorado State Bank & Trust 1,288,188 1,340,350 1,333,683 1,301,305 1,257,551 Bank of Arizona: Commercial 606,733 608,235 572,477 519,767 547,524 Commercial real estate 507,523 482,918 472,061 432,269 355,140 Residential mortgage 44,047 41,722 37,493 36,161 35,872 Personal 31,060 17,609 12,875 12,394 12,883 Total Bank of Arizona 1,189,363 1,150,484 1,094,906 1,000,591 951,419 Bank of Kansas City: Commercial 499,412 448,838 424,194 397,570 399,419 Commercial real estate 200,791 192,023 180,714 166,581 162,371 Residential mortgage 22,148 20,210 20,352 20,455 18,217 Personal 26,994 22,753 22,645 17,792 17,358 Total Bank of Kansas City 749,345 683,824 647,905 602,398 597,365 TOTAL BOK FINANCIAL $ 15,941,154 $ 15,367,441 $ 15,124,136 $ 14,684,136 $ 14,208,037 Loans attributed to a geographical region may not always represent the location of the borrower or the collateral.   DEPOSITS BY PRINCIPAL MARKET AREA -- UNAUDITED BOK FINANCIAL CORPORATION (in thousands) Dec. 31, 2015 Sept. 30, 2015 June 30, 2015 March 31, 2015 Dec. 31, 2014 Bank of Oklahoma: Demand $ 4,133,520 $ 3,834,145 $ 4,068,088 $ 3,982,534 $ 3,828,819 Interest-bearing: Transaction 5,971,819 5,783,258 6,018,381 6,199,468 6,117,886 Savings 226,733 225,580 225,694 227,855 206,357 Time 1,202,274 1,253,137 1,380,566 1,372,250 1,301,194 Total interest-bearing 7,400,826 7,261,975 7,624,641 7,799,573 7,625,437 Total Bank of Oklahoma 11,534,346 11,096,120 11,692,729 11,782,107 11,454,256 Bank of Texas: Demand 2,627,764 2,689,493 2,565,234 2,511,032 2,639,732 Interest-bearing: Transaction 2,132,099 1,996,223 2,020,817 2,062,063 2,065,723 Savings 77,902 74,674 74,373 76,128 72,037 Time 549,740 554,106 536,844 547,371 547,316 Total interest-bearing 2,759,741 2,625,003 2,632,034 2,685,562 2,685,076 Total Bank of Texas 5,387,505 5,314,496 5,197,268 5,196,594 5,324,808 Bank of Albuquerque: Demand 487,286 520,785 508,224 537,466 487,819 Interest-bearing: Transaction 563,723 529,862 537,156 535,791 519,544 Savings 43,672 41,380 41,802 42,088 37,471 Time 267,821 281,426 285,890 290,706 295,798 Total interest-bearing 875,216 852,668 864,848 868,585 852,813 Total Bank of Albuquerque 1,362,502 1,373,453 1,373,072 1,406,051 1,340,632 Bank of Arkansas:   Demand 27,252 25,397 19,731 31,002 35,996   Interest-bearing:   Transaction 202,857 290,728 284,349 253,691 158,115   Savings 1,747 1,573 1,712 1,677 1,936   Time 24,983 26,203 28,220 28,277 28,520   Total interest-bearing 229,587 318,504 314,281 283,645 188,571 Total Bank of Arkansas 256,839 343,901 334,012 314,647 224,567 Colorado State Bank & Trust: Demand 497,318 430,675 403,491 412,532 445,755 Interest-bearing: Transaction 616,697 655,206 601,741 604,665 631,874 Savings 31,927 31,398 31,285 31,524 29,811 Time 296,224 320,279 322,432 340,006 353,998 Total interest-bearing 944,848 1,006,883 955,458 976,195 1,015,683 Total Colorado State Bank & Trust 1,442,166 1,437,558 1,358,949 1,388,727 1,461,438 Bank of Arizona: Demand 326,324 306,425 352,024 271,091 369,115 Interest-bearing: Transaction 358,556 293,319 298,073 295,480 347,214 Savings 2,893 4,121 2,726 2,900 2,545 Time 29,498 26,750 28,165 28,086 36,680 Total interest-bearing 390,947 324,190 328,964 326,466 386,439 Total Bank of Arizona 717,271 630,615 680,988 597,557 755,554 Bank of Kansas City: Demand 197,424 234,847 239,609 263,920 259,121 Interest-bearing: Transaction 153,203 150,253 139,260 157,044 273,999 Savings 1,378 1,570 1,580 1,618 1,274 Time 35,524 36,630 42,262 45,082 45,210 Total interest-bearing 190,105 188,453 183,102 203,744 320,483 Total Bank of Kansas City 387,529 423,300 422,711 467,664 579,604 TOTAL BOK FINANCIAL $ 21,088,158 $ 20,619,443 $ 21,059,729 $ 21,153,347 $ 21,140,859   NET INTEREST MARGIN TREND -- UNAUDITED BOK FINANCIAL CORPORATION Three Months Ended Dec. 31, 2015 Sept. 30, 2015 June 30, 2015 March 31, 2015 Dec. 31, 2014 TAX-EQUIVALENT ASSETS YIELDS Interest-bearing cash and cash equivalents 0.29 % 0.28 % 0.25 % 0.27 % 0.28 % Trading securities 2.86 % 2.70 % 1.85 % 2.55 % 2.48 % Investment securities: Taxable 5.41 % 5.49 % 5.49 % 5.51 % 5.68 % Tax-exempt 1.53 % 1.54 % 1.56 % 1.56 % 1.56 % Total investment securities 3.03 % 3.04 % 3.05 % 3.04 % 3.11 % Available for sale securities: Taxable 2.02 % 1.99 % 1.92 % 1.95 % 1.97 % Tax-exempt 4.22 % 4.15 % 4.21 % 4.40 % 4.23 % Total available for sale securities 2.04 % 2.01 % 1.94 % 1.98 % 1.99 % Fair value option securities 2.32 % 2.30 % 2.17 % 2.28 % 2.18 % Restricted equity securities 5.95 % 5.95 % 5.82 % 5.79 % 5.77 % Residential mortgage loans held for sale 3.85 % 3.79 % 3.37 % 3.41 % 3.87 % Loans 3.55 % 3.54 % 3.65 % 3.59 % 3.73 % Allowance for loan losses Loans, net of allowance 3.60 % 3.59 % 3.70 % 3.64 % 3.78 % Total tax-equivalent yield on earning assets 2.86 % 2.83 % 2.84 % 2.80 % 2.86 % COST OF INTEREST-BEARING LIABILITIES Interest-bearing deposits: Interest-bearing transaction 0.09 % 0.08 % 0.09 % 0.10 % 0.09 % Savings 0.09 % 0.10 % 0.11 % 0.10 % 0.11 % Time 1.26 % 1.33 % 1.36 % 1.46 % 1.47 % Total interest-bearing deposits 0.32 % 0.34 % 0.35 % 0.37 % 0.38 % Funds purchased 0.11 % 0.08 % 0.08 % 0.09 % 0.08 % Repurchase agreements 0.04 % 0.03 % 0.03 % 0.04 % 0.04 % Other borrowings 0.38 % 0.30 % 0.31 % 0.32 % 0.32 % Subordinated debt 1.13 % 1.04 % 2.21 % 2.52 % 2.50 % Total cost of interest-bearing liabilities 0.34 % 0.32 % 0.35 % 0.38 % 0.39 % Tax-equivalent net interest revenue spread 2.52 % 2.51 % 2.49 % 2.42 % 2.47 % Effect of noninterest-bearing funding sources and other 0.12 % 0.10 % 0.12 % 0.13 % 0.14 % Tax-equivalent net interest margin 2.64 % 2.61 % 2.61 % 2.55 % 2.61 % 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 BOK FINANCIAL CORPORATION (in thousands, except ratios) Three Months Ended Dec. 31, 2015 Sept. 30, 2015 June 30, 2015 March 31, 2015 Dec. 31, 2014 Nonperforming assets: Nonaccruing loans: Commercial $ 76,424 $ 33,798 $ 24,233 $ 13,880 $ 13,527 Commercial real estate 9,001 10,956 20,139 19,902 18,557 Residential mortgage 61,240 44,099 45,969 46,487 48,121 Personal 463 494 550 464 566 Total nonaccruing loans 147,128 89,347 90,891 80,733 80,771 Accruing renegotiated loans guaranteed by U.S. government agencies 74,049 81,598 82,368 80,287 73,985 Real estate and other repossessed assets: Guaranteed by U.S. government agencies1 — — — — 49,898 Other 30,731 33,116 35,499 45,551 51,963 Total real estate and other repossessed assets 30,731 33,116 35,499 45,551 101,861 Total nonperforming assets $ 251,908 $ 204,061 $ 208,758 $ 206,571 $ 256,617 Total nonperforming assets excluding those guaranteed by U.S. government agencies $ 155,959 $ 118,578 $ 122,673 $ 123,028 $ 129,022 Nonaccruing loans by loan portfolio sector: Commercial: Energy $ 61,189 $ 17,880 $ 6,841 $ 1,875 $ 1,416 Services 10,290 10,692 10,944 4,744 5,201 Healthcare 1,072 1,218 1,278 1,558 1,380 Wholesale/retail 2,919 3,058 4,166 4,401 4,149 Manufacturing 331 352 379 417 450 Other commercial and industrial 623 598 625 885 931 Total commercial 76,424 33,798 24,233 13,880 13,527 Commercial real estate: Retail 1,319 1,648 3,826 3,857 3,926 Multifamily 274 185 195 — — Office 651 684 2,360 2,410 3,420 Industrial 76 76 76 76 — Residential construction and land development 4,409 4,748 9,367 9,598 5,299 Other commercial real estate 2,272 3,615 4,315 3,961 5,912 Total commercial real estate 9,001 10,956 20,139 19,902 18,557 Residential mortgage: Permanent mortgage 28,984 30,660 32,187 33,365 34,845 Permanent mortgage guaranteed by U.S. government agencies 21,900 3,885 3,717 3,256 3,712 Home equity 10,356 9,554 10,065 9,866 9,564 Total residential mortgage 61,240 44,099 45,969 46,487 48,121 Personal 463 494 550 464 566 Total nonaccruing loans $ 147,128 $ 89,347 $ 90,891 $ 80,733 $ 80,771 Performing loans 90 days past due2 $ 1,207 $ 101 $ 99 $ 523 $ 125 Gross charge-offs $ (4,851 ) $ (5,274 ) $ (2,877 ) $ (2,169 ) $ (7,224 ) Recoveries 1,870 3,521 2,206 10,523 5,036 Net recoveries (charge-offs) $ (2,981 ) $ (1,753 ) $ (671 ) $ 8,354 $ (2,188 ) Provision for credit losses $ 22,500 $ 7,500 $ 4,000 $ — $ — Allowance for loan losses to period end loans 1.41 % 1.33 % 1.33 % 1.35 % 1.33 % Combined allowance for credit losses to period end loans 1.43 % 1.35 % 1.34 % 1.35 % 1.34 % Nonperforming assets to period end loans and repossessed assets 1.58 % 1.33 % 1.38 % 1.40 % 1.79 % Net charge-offs (annualized) to average loans 0.08 % 0.05 % 0.02 % (0.23 )% 0.06 % Allowance for loan losses to nonaccruing loans2 180.09 % 238.84 % 230.67 % 255.15 % 245.34 % Combined allowance for credit losses to nonaccruing loans2 181.46 % 243.05 % 231.68 % 256.39 % 246.94 % 1  Approximately $50 million was reclassified from Real estate and other repossessed assets to Receivables on the balance sheet on January 1, 2015 with the adoption of Financial Accounting Standards Board Update No. 2014-14, Classification of Certain Government Guaranteed Mortgage Loans Upon Foreclosure ("ASU 2014-14"). Upon foreclosure of loans for which the loan balance is expected to be recovered from the guarantee by a U.S. government agency, the loan balance will be directly reclassified to other receivables without including such foreclosed assets in real estate and other repossessed assets. 2  Excludes residential mortgage loans guaranteed by agencies of the U.S. government.