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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 8-K

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

Date of Report (Date of earliest event reported):
January 24, 2024

Commission File No. 001-37811

BOK FINANCIAL CORP
(Exact name of registrant as specified in its charter)
Oklahoma 73-1373454
(State or other jurisdiction
of Incorporation or Organization)		 (IRS Employer
Identification No.)
  
Bank of Oklahoma Tower  
Boston Avenue at Second Street  
Tulsa,Oklahoma 74192
(Address of Principal Executive Offices) (Zip Code)
 (918) 588-6000
(Registrant’s telephone number, including area code)

N/A
__________________________________________
(Former name or former address, if changes since last report)

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

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

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

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

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

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of each exchange on which registered
Common Stock, par value $0.00006 per shareBOKFNasdaq Stock Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
☐ Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨



INFORMATION TO BE INCLUDED IN THE REPORT

ITEM 2.02. Results of Operations and Financial Condition.

On January 24, 2024, BOK Financial Corporation (“BOK Financial”) issued a press release announcing its financial results for the three months and year ended December 31, 2023 (“Press Release”). The full text of the Press Release is attached as Exhibit 99.1(a) to this report and is incorporated herein by reference. On January 24, 2024, in connection with the issuance of the Press Release, BOK Financial released financial information related to the three months and year ended December 31, 2023 (“Financial Information”), which includes certain historical financial information relating to BOK Financial. The Financial Information is attached as Exhibit 99.1(b) to this report and is incorporated herein by reference.

ITEM 7.01. Regulation FD Disclosure.

On January 24, 2024, in connection with the issuance of the Press Release, BOK Financial released financial information related to the three months and year ended December 31, 2023 (“Financial Information”), which includes certain historical financial information relating to BOK Financial. The Financial Information is attached as Exhibit 99.2(a) to this report and is incorporated herein by reference.


ITEM 9.01. Financial Statements and Exhibits.

(d)    Exhibits


104    Cover Page Interactive Data File (embedded within the Inline XBRL document).

Signature

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


                        BOK FINANCIAL CORPORATION




                        By: /s/ Martin E. Grunst            
                         Martin E. Grunst
                         Executive Vice President
                         Chief Financial Officer
Date: January 24, 2024





Exhibit 99.1(a)
image.jpg
                                                    NASD: BOKF
BOK Financial Corporation Reports Annual Earnings of $531 million or $8.02 Per Share and
Quarterly Earnings of $83 million or $1.26 Per Share in the Fourth Quarter
CEO Commentary
Stacy Kymes, president and chief executive officer, stated, "I am exceptionally proud of the BOKF team and our results this year - the second highest earnings we have ever achieved. Our focus at BOKF has always been on providing long-term shareholder value driven by our diverse business model and talented team, both of which empower us to perform well during any economic environment. This was once again proven when the industry faced stress in the first half the year and our company was well prepared. Our disciplined risk management, which extends beyond the credit risk management that has long been a strength, resulted in strong levels of capital and liquidity at a critical time. We took advantage of this position to thoughtfully grow when others were pulling back. We have made real investments in growing our core C&I loans, while also investing in people and new markets like central Texas. While the fourth quarter was exceptionally noisy with numerous non-recurring items, our core results were very strong serving as a great starting point for 2024."
Fourth Quarter 2023 Financial Highlights
(Unless indicated otherwise, all comparisons are to the prior quarter)
•Net income was $82.6 million or $1.26 per diluted share for the fourth quarter of 2023 compared to $134.5 million or $2.04 per diluted share for the third quarter of 2023. The fourth quarter included a 52 cent per share reduction as a result of the FDIC special assessment.
•Net interest revenue totaled $296.7 million, a decrease of $4.2 million compared to the prior quarter. Net interest margin was 2.64 percent compared to 2.69 percent, primarily due to deposit repricing activity and liability mix-shift. For the fourth quarter of 2023, our core net interest margin excluding trading activities, a non-GAAP measure, was 3.03 percent compared to 3.14 percent in the prior quarter.
•Fees and commissions revenue was $196.8 million, largely consistent with the prior quarter. Lower brokerage and trading revenue and other revenue was offset by increased transaction card revenue.
•Operating expense increased $59.8 million to $384.1 million. Personnel expense grew $12.2 million with higher regular compensation, incentive compensation, including deferred compensation plans, and employee benefits expense. Non-personnel expense increased $47.5 million including the FDIC special assessment of $43.8 million. Increased professional fees and services, business promotion, and charitable expenses were partially offset by lower occupancy and equipment costs.
•Other gains and losses, net increased $39.0 million to $40.5 million. This quarter included a $31.0 million pre-tax gain, before related professional fees, on the sale of our insurance brokerage and consulting business, BOKF Insurance. The value of our deferred compensation investments also increased $5.9 million versus a decline of $427 thousand in the prior quarter.
•Losses on available for sale securities totaled $27.6 million in the fourth quarter. The gain on sale received from the disposition of BOKF Insurance was used to reposition a small portion of our available for sale securities portfolio.
•The effective tax rate was 26.0 percent for the fourth quarter of 2023, an increase from 19.8 percent for the prior quarter. The fourth quarter of 2023 included an acceleration of $3.1 million of tax expense as a result of exiting three low income housing tax credit investments. The third quarter of 2023 included a reduction in tax expense resulting from decreases in uncertain tax positions.
•Period-end loans grew by $181 million to $23.9 billion at December 31, 2023, mostly driven by growth in commercial loans and commercial real estate loans secured by multifamily properties. Average outstanding loan balances were $23.7 billion, a $291 million increase.
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•The provision for credit losses of $6.0 million in the fourth quarter of 2023 reflects a stable economic forecast and continued loan growth. Net charge-offs were $4.1 million or 0.07 percent of average loans on an annualized basis in the fourth quarter. The resulting combined allowance for credit losses totaled $326 million or 1.36 percent of outstanding loans at December 31, 2023 compared to $325 million or 1.37 percent of outstanding loans at September 30, 2023.
•Period-end deposits increased $367 million to $34.0 billion while average deposits increased $388 million to $33.7 billion. Average interest-bearing deposits increased $1.2 billion while average demand deposits declined by $779 million. The loan to deposit ratio was 70 percent at December 31, 2023, consistent with September 30, 2023.
•The company's tangible common equity ratio, a non-GAAP measure, was 8.29 percent at December 31, 2023 and 7.74 percent at September 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 8.02 percent.
•The company's common equity Tier 1 capital ratio was 12.06 percent at December 31, 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 9.45 percent at December 31, 2023. At September 30, 2023, the company's common equity Tier 1 capital ratio was 12.06 percent, Tier 1 capital ratio was 12.07 percent, total capital ratio was 13.16 percent, and leverage ratio was 9.52 percent.
•The company repurchased 700,237 shares of common stock at an average price paid of $70.99 a share in the fourth quarter of 2023.
Fourth Quarter 2023 Segment Highlights
•Commercial Banking contributed $159.0 million to net income in the fourth quarter of 2023, an increase of $1.1 million over the prior quarter. Combined net interest revenue and fee revenue was consistent with the third quarter of 2023. A decrease in net interest revenue resulting from a shift in deposit balances from demand to interest-bearing transaction accounts was largely offset by a $2.5 million increase in transaction card revenue driven by fourth quarter activity. Net loans charged-off decreased $1.9 million to $3.0 million in the fourth quarter of 2023. Personnel expense increased $3.0 million led by higher cash-based incentive compensation and regular compensation. Non-personnel expense decreased $4.3 million driven by the retirement of certain ATMs in the prior quarter. Average loans increased $283 million or 1 percent to $19.9 billion. Average deposits increased $374 million or 2 percent to $15.5 billion.
•Consumer Banking contributed $53.7 million to net income in the fourth quarter of 2023, a decrease of $4.3 million compared to the prior quarter. The net cost of the changes in the fair value of mortgage servicing rights and related economic hedges was $5.2 million compared to $1.3 million for the third quarter of 2023. Combined net interest revenue and fee revenue increased $1.1 million, largely due to an increase in the funds credit on deposit balances. Net loans charged-off were $1.4 million in the fourth quarter of 2023 compared to recoveries of $73 thousand in the third quarter of 2023. Operating expense totaled $55.1 million, consistent with the prior quarter. Average loans increased $65 million or 4 percent to $1.9 billion. Average deposits were mostly unchanged from the previous quarter.

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•Wealth Management contributed $62.7 million to net income in the fourth quarter of 2023, an increase of $19.7 million compared to the third quarter of 2023. This quarter included a pre-tax gain of $31.0 million, before related professional fees, on the sale of our insurance brokerage and consulting business, BOKF Insurance. Combined net interest and fee revenue increased $1.5 million. Total revenue from institutional trading activities increased $4.1 million due to favorable market opportunities, largely related to our municipal bond trading activity. Investment banking revenue decreased $3.3 million following a record quarter from our Public and Corporate Finance group. Personnel expense increased $2.4 million due to increased cash-based incentive compensation, driven by growth in trading activities and transaction related employee costs on the BOKF Insurance sale. Non-personnel expense increased $4.5 million with $2.5 million in professional fees directly related to the sale of BOKF Insurance and the remainder primarily resulting from settlement of certain disputed matters. Average loans decreased $65 million or 3 percent to $2.2 billion. Average deposits increased $199 million or 3 percent to $8.1 billion. Assets under management or administration were $104.7 billion, an increase of $5.7 billion.

Annual 2023 Financial Highlights
(Unless indicated otherwise, all comparisons are to the prior year)
•Net income was $530.7 million or $8.02 per diluted share for the year ended December 31, 2023 compared to $520.3 million or $7.68 per diluted share for the year ended December 31, 2022.
•Net interest revenue totaled $1.3 billion, an increase of $60.8 million compared to the prior year. Net interest margin was 2.93 percent compared to 2.98 percent, primarily due to competitive deposit pricing and liability mix-shift.
•Fees and commissions revenue increased $123.9 million to $781.1 million. Brokerage and trading revenue increased $99.6 million. Trading revenue in the prior year was negatively affected by disruption in the fixed income markets in the first quarter of 2022. Fiduciary and asset management revenue grew $11.0 million along with increased Cavanal Hill fund fees, mutual fund fees, and trust business line fees.
•Operating expense increased $168.4 million to $1.3 billion. Personnel expense grew $95.7 million, reflecting a combination of annual merit increases and salary adjustments, higher sales activity, and business expansion. Non-personnel expense increased $72.7 million including the FDIC special assessment of $43.8 million. Increased data processing and communications, business promotion, ongoing FDIC assessment costs, and occupancy and equipment expenses were partially offset by lower mortgage banking costs.
•Other gains and losses, net increased $56.7 million to $56.8 million. The fourth quarter of 2023 included a pre-tax $31.0 million gain, before related professional fees, on the sale of our insurance brokerage and consulting business, BOKF Insurance. We also recognized a $17.3 million increase in the value of deferred compensation investments, which are held to offset the cost of various employee benefit programs.
•Losses on available for sale securities totaled $30.6 million for the year ended December 31, 2023. We strategically repositioned a small portion of our portfolio throughout the year, mostly in the fourth quarter.
•Period-end loans grew by $1.3 billion to $23.9 billion at December 31, 2023, mostly driven by growth in commercial loans and commercial real estate loans secured by multifamily properties. Average outstanding loan balances were $23.1 billion, a $1.8 billion or 9 percent increase.
•The provision for credit losses was $46.0 million in 2023, primarily due to loan growth and changes in our economic forecast during the year, including a more challenging commercial real estate environment. Net charge-offs were $18.1 million or 0.08 percent of average loans on an annualized basis in 2023. The resulting combined allowance for credit losses totaled $326 million or 1.36 percent of outstanding loans at December 31, 2023 compared to $297 million or 1.31 percent of outstanding loans at December 31, 2022.
•Period-end deposits decreased $461 million to $34.0 billion while average deposits decreased $4.6 billion to $33.2 billion. Average interest-bearing deposits decreased $487 million while average demand deposits decreased by $4.2 billion. The loan to deposit ratio was 70 percent at December 31, 2023 and was 65 percent at December 31, 2022.
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2023 Annual Segment Highlights
•Commercial Banking contributed $664.5 million to net income in 2023, an increase of $202.9 million compared to 2022. Combined net interest revenue and fee revenue increased $288.4 million, primarily due to an increase in the spread on deposits combined with loan growth. Net loans charged-off decreased $3.8 million to $14.0 million in 2023. Personnel expense increased $16.1 million led by higher regular compensation and cash-based incentive compensation. Non-personnel expense increased $7.4 million, driven primarily by ongoing technology projects, retirement of certain ATMs, and increased insurance assessment costs. Corporate expense allocations increased $7.7 million. Average loans increased $1.8 billion or 10 percent to $19.4 billion. Average deposits decreased $3.0 billion or 16 percent to $15.3 billion.
•Consumer Banking contributed $222.7 million to net income in 2023, an increase of $216.8 million compared to the prior year. Combined net interest revenue and fee revenue increased $293.3 million, largely due to an increase in the spread on deposits. Mortgage banking revenue increased $6.7 million, primarily due to growth in mortgage servicing revenue driven by recent purchases of mortgage servicing rights, partially offset by a decline in mortgage production volumes due to a combination of factors including rising mortgage interest rates, industry-wide housing inventory constraints, and overall market conditions. Deposit service charges and fees decreased $3.7 million as non-sufficient funds fees were eliminated and consumer overdraft fees were reduced in the fourth quarter of 2022. Operating expense increased $2.9 million led by higher regular compensation costs. Average loans increased $112 million or 7 percent to $1.8 billion. Average deposits decreased $749 million or 9 percent to $8.0 billion.
•Wealth Management contributed $215.5 million to net income in 2023, an increase of $109.5 million compared to 2022. The current year included a pre-tax gain of $31.0 million, before related professional fees, on the sale of our insurance brokerage and consulting business, BOKF Insurance. Combined net interest and fee revenue increased $155.9 million, primarily driven by an increase in the spread on deposits combined with growth in brokerage and trading revenues and customer hedging revenues. The prior year was negatively affected by the disruption in the fixed income markets. Fiduciary and asset management revenue increased $10.8 million led by higher Cavanal Hill fund fees, mutual fund fees, and trust business line fees. Personnel expense increased $27.9 million due to a combination of higher trading volumes and business expansion. Non-personnel expense increased $12.2 million due to increased professional fees and services from the sale of BOKF Insurance combined with higher data processing and communications expense from ongoing technology projects. Average loans increased $35.4 million or 2 percent to $2.2 billion. Average deposits decreased $752 million or 9 percent to $7.7 billion. Assets under management or administration increased $5.0 billion or 5 percent compared to the prior year.
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Net Interest Revenue
Net interest revenue was $296.7 million for the fourth quarter of 2023 compared to $300.9 million for the prior quarter. Net interest margin was 2.64 percent compared to 2.69 percent, primarily driven by deposit price competition and liability mix-shift. For the fourth quarter of 2023, our core net interest margin excluding trading activities, a non-GAAP measure, was 3.03 percent compared to 3.14 percent in the prior quarter.
Average earning assets increased $315 million. Average loan balances increased $291 million, largely due to growth in commercial and commercial real estate loans. Average available for sale securities increased $138 million while average investment securities decreased $67 million. Average interest-bearing deposits increased $1.2 billion. Funds purchased and repurchase agreements declined $222 million while average other borrowings increased $153 million.
The yield on average earning assets was 5.64 percent, up 15 basis points. The loan portfolio yield increased 11 basis points to 7.36 percent while the yield on the available for sale securities portfolio increased 16 basis points to 3.27 percent. The yield on trading securities grew 29 basis points to 5.05 percent.
Funding costs were 3.98 percent, up 17 basis points. The cost of interest-bearing deposits increased 26 basis points to 3.43 percent. The cost of other borrowings was up 7 basis points to 5.55 percent while the cost of funds purchased and repurchase agreements decreased 2 basis points to 4.79 percent. The benefit to net interest margin from assets funded by non-interest liabilities was 98 basis points, a decrease of 3 basis points.
Fees and Commissions Revenue
Fees and commissions revenue totaled $196.8 million for the fourth quarter of 2023, largely unchanged compared to the prior quarter.
Brokerage and trading revenue decreased $1.4 million to $60.9 million. Investment banking revenue decreased $2.4 million to $11.5 million following a record quarter from our Public and Corporate Finance group, which underwrites municipal bonds. Trading revenue grew $1.1 million to $35.5 million, largely related to our municipal bond trading activity. Insurance brokerage fees decreased $890 thousand to $1.8 million in conjunction with the sale of this business in the fourth quarter.
Transaction card revenue increased $2.5 million to $28.8 million as a result of fourth quarter activity. All other fee businesses performed consistently with the prior quarter.


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Operating Expense
Total operating expense was $384.1 million for the fourth quarter of 2023, an increase of $59.8 million compared to the third quarter of 2023, primarily driven by the $43.8 million FDIC special assessment.
Personnel expense was $203.0 million, including $5.4 million of deferred compensation expense. Excluding deferred compensation costs, personnel expense increased $6.9 million over the prior quarter. Regular compensation increased $3.2 million, primarily due to compensation related to business expansion and transaction related employee costs on the BOKF Insurance sale. Higher sales activity led to a $4.0 million increase in cash based incentive compensation. Employee benefits expense increased $1.1 million, primarily due to seasonal employee healthcare costs.
Excluding the FDIC special assessment, non-personnel expense was $137.3 million, an increase of $3.8 million. Professional fees and services expense increased $3.1 million with $2.5 million related to the sale of BOKF Insurance. Business promotion expense grew $1.7 million. We also made a $1.5 million charitable donation to the BOKF Foundation as we continue to support the communities we serve. Occupancy and equipment costs decreased $2.2 million driven by the retirement of certain ATMs in the prior quarter.
Loans, Deposits and Capital
Loans
Outstanding loans were $23.9 billion at December 31, 2023, growing $181 million over September 30, 2023, largely due to growth in commercial and commercial real estate loans. Unfunded loan commitments increased $388 million compared to the third quarter of 2023.
Outstanding commercial loan balances, which includes healthcare, services, energy and general business loans, increased $84 million over the prior quarter.
General business loans increased $67 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.
Healthcare sector loan balances increased $60 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.
Services sector loan balances increased $9.9 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 $54 million to $3.4 billion or 14 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 $4.5 billion at December 31, 2023, a $436 million increase compared September 30, 2023.
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Commercial real estate loan balances grew by $96 million and represent 22 percent of total loans. Loans secured by multifamily properties increased $138 million to $1.9 billion. Loans secured by industrial facilities increased $43 million to $1.5 billion. This growth was partially offset by a $72 million decrease in loans secured by office facilities and a $15 million decrease in loans secured by retail properties. Unfunded commercial real estate loan commitments were $1.8 billion at December 31, 2023, a decrease of $147 million compared to September 30, 2023. We take a disciplined approach to managing our concentration of commercial real estate loan commitments as a percentage of Tier 1 Capital.
Loans to individuals were largely unchanged compared to September 30, 2023 and represent 16 percent of total loans. An increase of $58 million in residential mortgage loans was offset by a decrease in personal loans.
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 December 31, 2023, consistent with the prior quarter, providing significant on-balance sheet liquidity to meet future loan demand and contractual obligations.
Period-end deposits totaled $34.0 billion at December 31, 2023, a $367 million increase. Interest-bearing transaction account balances increased $1.1 billion while time deposits increased $85 million. Demand deposits decreased $778 million.
Average deposits were $33.7 billion at December 31, 2023, a $388 million increase. Average interest-bearing transaction account balances increased $1.0 billion and average time deposits increased $162 million. Average demand deposit account balances decreased $779 million. Average Commercial Banking deposits increased $374 million to $15.5 billion or 46 percent of total deposits. Wealth Management deposits increased $199 million to $8.1 billion or 24 percent of total deposits. Consumer Banking deposits decreased $46 million to $7.9 billion or 23 percent of total deposits.
The company's common equity Tier 1 capital ratio was 12.06 percent at December 31, 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 9.45 percent at December 31, 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 December 31, 2023. At September 30, 2023, the company's common equity Tier 1 capital ratio was 12.06 percent, Tier 1 capital ratio was 12.07 percent, total capital ratio was 13.16 percent, and leverage ratio was 9.52 percent.
The company's tangible common equity ratio, a non-GAAP measure, was 8.29 percent at December 31, 2023 and 7.74 percent at September 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 8.02 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 700,237 shares of common stock at an average price paid of $70.99 a share in the fourth quarter of 2023. We pursue share buybacks opportunistically, but within the context of maintaining our strong capital position.
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Credit Quality
Nonperforming assets totaled $148 million or 0.62 percent of outstanding loans and repossessed assets at December 31, 2023, compared to $123 million or 0.52 percent at September 30, 2023. Excluding loans guaranteed by U.S. government agencies, nonperforming assets totaled $139 million or 0.58 percent of outstanding loans and repossessed assets at December 31, 2023, compared to $113 million or 0.48 percent at September 30, 2023.
Nonaccruing loans increased $26 million compared to September 30, 2023. New nonaccruing loans identified in the fourth quarter totaled $55 million, offset by $12 million in payments received and $5.0 million of charge-offs. Nonaccruing healthcare loans increased $40 million, partially offset by a $13 million decrease in nonaccruing residential real estate mortgage loans.
Net charge-offs were $4.1 million or 0.07 percent of average loans on an annualized basis in the fourth quarter. Charge-offs for the fourth quarter were primarily composed of a single $2.5 million healthcare loan.
The provision for credit losses of $6.0 million in the fourth quarter of 2023 reflects a stable economic forecast and continued loan growth. The provision for credit losses was $7.0 million in the third quarter of 2023.
At December 31, 2023, the combined allowance for loan losses and accrual for off-balance sheet credit risk from unfunded loan commitments was $326 million or 1.36 percent of outstanding loans and 240 percent of nonaccruing loans.
Securities and Derivatives
The fair value of the available for sale securities portfolio totaled $12.3 billion at December 31, 2023, a $380 million increase over September 30, 2023. At December 31, 2023, the available for sale securities portfolio consisted primarily of $6.8 billion of residential mortgage-backed securities fully backed by U.S. government agencies and $4.1 billion of commercial mortgage-backed securities fully backed by U.S. government agencies. At December 31, 2023, the available for sale securities portfolio had a net unrealized loss of $617 million compared to $1.0 billion at September 30, 2023.
We hold an inventory of trading securities in support of sales to a variety of customers. At December 31, 2023, the trading securities portfolio totaled $5.2 billion compared to $4.7 billion at September 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 increased $456 thousand to $20.7 million at December 31, 2023.
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Derivative contracts are carried at fair value. At December 31, 2023, the net fair values of derivative contracts, before consideration of cash margin, reported as assets under our customer derivative programs totaled $593 million compared to $594 million at September 30, 2023. The aggregate net fair value of derivative contracts, before consideration of cash margin, held under these programs reported as liabilities totaled $587 million at December 31, 2023 and $582 million at September 30, 2023.
The net cost of the changes in the fair value of mortgage servicing rights and related economic hedges was $5.2 million during the fourth quarter of 2023, including a $14.4 million decrease in the fair value of mortgage servicing rights, a $9.3 million increase in the fair value of securities and derivative contracts held as an economic hedge and $101 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, January 24, 2024 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 1-877-407-4018 or 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 or 1-412-317-6671 and referencing conference ID # 13743529.
About BOK Financial Corporation
BOK Financial Corporation is a $50 billion regional financial services company headquartered in Tulsa, Oklahoma with $105 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., and BOK Financial Private Wealth, Inc. BOKF, NA's holdings include TransFund, and Cavanal Hill Investment 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 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, 2023 through the date its financial statements are filed with the Securities and Exchange Commission and will adjust amounts reported if necessary.
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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.
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                                                Exhibit 99.1(b)
BALANCE SHEETS – UNAUDITED
BOK FINANCIAL CORPORATION
(In thousands)
Dec. 31, 2023Sep. 30, 2023
ASSETS
Cash and due from banks$947,613 $854,161 
Interest-bearing cash and cash equivalents400,652 520,774 
Trading securities5,193,505 4,748,101 
Investment securities, net of allowance2,244,153 2,298,418 
Available for sale securities12,286,681 11,906,647 
Fair value option securities20,671 20,215 
Restricted equity securities423,099 435,112 
Residential mortgage loans held for sale56,935 72,489 
Loans:
Commercial14,803,769 14,719,839 
Commercial real estate5,337,647 5,241,300 
Loans to individuals3,763,552 3,762,879 
Total loans23,904,968 23,724,018 
Allowance for loan losses(277,123)(272,114)
Loans, net of allowance23,627,845 23,451,904 
Premises and equipment, net622,223 616,439 
Receivables317,922 255,164 
Goodwill1,044,749 1,044,749 
Intangible assets, net59,979 65,804 
Mortgage servicing rights293,884 311,382 
Real estate and other repossessed assets, net2,875 3,753 
Derivative contracts, net410,304 546,109 
Cash surrender value of bank-owned life insurance409,548 406,623 
Receivable on unsettled securities sales391,910 28,707 
Other assets1,070,282 1,344,846 
TOTAL ASSETS$49,824,830 $48,931,397 
LIABILITIES AND EQUITY
Deposits:
Demand$9,196,493 $9,974,223 
Interest-bearing transaction20,964,101 19,897,179 
Savings847,085 853,933 
Time3,012,022 2,927,217 
Total deposits34,019,701 33,652,552 
Funds purchased and repurchase agreements1,122,748 2,722,998 
Other borrowings7,701,552 6,201,644 
Subordinated debentures131,150 131,152 
Accrued interest, taxes and expense338,996 244,105 
Due on unsettled securities purchases254,057 235,473 
Derivative contracts, net587,473 403,947 
Other liabilities523,734 522,318 
TOTAL LIABILITIES44,679,411 44,114,189 
Shareholders' equity:
Capital, surplus and retained earnings5,741,542 5,743,004 
Accumulated other comprehensive loss(599,100)(928,985)
TOTAL SHAREHOLDERS' EQUITY5,142,442 4,814,019 
Non-controlling interests2,977 3,189 
TOTAL EQUITY5,145,419 4,817,208 
TOTAL LIABILITIES AND EQUITY$49,824,830 $48,931,397 

11

AVERAGE BALANCE SHEETS – UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands)
Three Months Ended
Dec. 31, 2023Sep. 30, 2023June 30, 2023Mar. 31, 2023Dec. 31, 2022
ASSETS
Interest-bearing cash and cash equivalents$605,839 $598,734 $708,475 $616,596 $568,307 
Trading securities5,448,403 5,444,587 4,274,803 3,031,969 3,086,985 
Investment securities, net of allowance2,264,194 2,331,595 2,408,122 2,473,796 2,535,305 
Available for sale securities12,063,398 11,925,800 12,033,597 11,738,693 10,953,851 
Fair value option securities20,086 41,741 245,469 300,372 92,012 
Restricted equity securities432,780 445,532 351,944 316,724 216,673 
Residential mortgage loans held for sale61,146 77,208 72,959 65,769 98,613 
Loans:
Commercial14,680,001 14,527,676 14,316,474 14,046,237 13,846,339 
Commercial real estate5,293,021 5,172,876 4,896,230 4,757,362 4,488,091 
Loans to individuals3,732,086 3,713,756 3,676,350 3,672,648 3,641,574 
Total loans23,705,108 23,414,308 22,889,054 22,476,247 21,976,004 
Allowance for loan losses(273,717)(267,205)(252,890)(238,909)(242,450)
Loans, net of allowance23,431,391 23,147,103 22,636,164 22,237,338 21,733,554 
Total earning assets44,327,237 44,012,300 42,731,533 40,781,257 39,285,300 
Cash and due from banks883,858 799,291 875,280 857,771 865,796 
Derivative contracts, net
372,789 412,707 410,793 546,018 1,239,717 
Cash surrender value of bank-owned life insurance
407,665 408,295 409,313 408,124 406,826 
Receivable on unsettled securities sales276,856 268,344 163,903 177,312 194,996 
Other assets3,445,265 3,418,615 3,317,285 3,211,986 3,216,983 
TOTAL ASSETS$49,713,670 $49,319,552 $47,908,107 $45,982,468 $45,209,618 
LIABILITIES AND EQUITY
Deposits:
Demand$9,378,886 $10,157,821 $10,998,201 $12,406,408 $14,176,189 
Interest-bearing transaction20,449,370 19,415,599 18,368,592 18,639,900 18,898,315 
Savings845,705 874,530 926,882 958,443 969,275 
Time3,002,252 2,839,947 2,076,037 1,477,720 1,417,606 
Total deposits33,676,213 33,287,897 32,369,712 33,482,471 35,461,385 
Funds purchased and repurchase agreements
2,476,973 2,699,027 3,670,994 1,759,237 1,046,447 
Other borrowings7,120,963 6,968,309 5,275,291 4,512,280 2,523,195 
Subordinated debentures131,151 131,151 131,153 131,166 131,180 
Derivative contracts, net524,101 429,989 576,558 428,023 445,105 
Due on unsettled securities purchases363,358 435,927 436,353 316,738 575,957 
Other liabilities483,934 461,686 503,134 511,530 408,029 
TOTAL LIABILITIES44,776,693 44,413,986 42,963,195 41,141,445 40,591,298 
Total equity4,936,977 4,905,566 4,944,912 4,841,023 4,618,320 
TOTAL LIABILITIES AND EQUITY$49,713,670 $49,319,552 $47,908,107 $45,982,468 $45,209,618 

12

STATEMENTS OF EARNINGS – UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands, except per share data)
Three Months EndedYear Ended
December 31,December 31,
2023202220232022
Interest revenue$638,324 $451,606 $2,342,464 $1,392,102 
Interest expense341,649 98,980 1,070,284 180,722 
Net interest revenue296,675 352,626 1,272,180 1,211,380 
Provision for credit losses6,000 15,000 46,000 30,000 
Net interest revenue after provision for credit losses
290,675 337,626 1,226,180 1,181,380 
Other operating revenue:
Brokerage and trading revenue60,896 63,008 240,610 140,978 
Transaction card revenue28,847 27,136 106,858 104,266 
Fiduciary and asset management revenue51,408 49,899 207,318 196,326 
Deposit service charges and fees27,770 26,429 108,514 110,636 
Mortgage banking revenue12,834 10,065 55,698 49,365 
Other revenue15,035 17,034 62,120 55,642 
Total fees and commissions196,790 193,571 781,118 657,213 
Other gains, net40,452 8,427 56,795 123 
Gain (loss) on derivatives, net8,592 4,548 (9,921)(73,011)
Gain (loss) on fair value option securities, net1,031 (2,568)(4,292)(20,358)
Change in fair value of mortgage servicing rights(14,356)(2,904)(3,115)80,261 
Loss on available for sale securities, net(27,626)(3,988)(30,636)(971)
Total other operating revenue204,883 197,086 789,949 643,257 
Other operating expense:
Personnel203,022 186,419 766,610 670,918 
Business promotion8,629 7,470 31,796 26,435 
Charitable contributions to BOKF Foundation1,542 2,500 2,707 2,500 
Professional fees and services16,288 18,365 55,337 56,342 
Net occupancy and equipment30,355 29,227 121,502 116,867 
Insurance8,495 4,677 30,780 17,994 
FDIC special assessment43,773 — 43,773 — 
Data processing and communications45,584 43,048 181,365 165,907 
Printing, postage and supplies3,844 3,890 15,225 15,857 
Amortization of intangible assets3,543 3,736 13,882 15,692 
Mortgage banking costs8,085 9,016 30,524 35,834 
Other expense10,923 10,108 39,380 40,134 
Total other operating expense384,083 318,456 1,332,881 1,164,480 
Net income before taxes111,475 216,256 683,248 660,157 
Federal and state income taxes28,953 47,864 152,115 139,864 
Net income82,522 168,392 531,133 520,293 
Net income (loss) attributable to non-controlling interests(53)(37)387 20 
Net income attributable to BOK Financial Corporation shareholders
$82,575 $168,429 $530,746 $520,273 
Average shares outstanding:
Basic64,750,171 66,627,955 65,651,569 67,212,728 
Diluted64,750,171 66,627,955 65,651,569 67,212,735 
Net income per share:
Basic$1.26 $2.51 $8.02 $7.68 
Diluted$1.26 $2.51 $8.02 $7.68 


13

QUARTERLY EARNINGS TREND – UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands, except ratio and per share data)
Three Months Ended
Dec. 31, 2023Sep. 30, 2023June 30, 2023Mar. 31, 2023Dec. 31, 2022
Interest revenue$638,324 $617,044 $570,367 $516,729 $451,606 
Interest expense341,649 316,148 248,106 164,381 98,980 
Net interest revenue296,675 300,896 322,261 352,348 352,626 
Provision for credit losses6,000 7,000 17,000 16,000 15,000 
Net interest revenue after provision for credit losses
290,675 293,896 305,261 336,348 337,626 
Other operating revenue:
Brokerage and trading revenue60,896 62,312 65,006 52,396 63,008 
Transaction card revenue28,847 26,387 26,003 25,621 27,136 
Fiduciary and asset management revenue51,408 52,256 52,997 50,657 49,899 
Deposit service charges and fees27,770 27,676 27,100 25,968 26,429 
Mortgage banking revenue12,834 13,356 15,141 14,367 10,065 
Other revenue15,035 15,865 14,250 16,970 17,034 
Total fees and commissions196,790 197,852 200,497 185,979 193,571 
Other gains, net40,452 1,474 12,618 2,251 8,427 
Gain (loss) on derivatives, net8,592 (9,010)(8,159)(1,344)4,548 
Gain (loss) on fair value option securities, net1,031 (203)(2,158)(2,962)(2,568)
Change in fair value of mortgage servicing rights
(14,356)8,039 9,261 (6,059)(2,904)
Loss on available for sale securities, net(27,626)— (3,010)— (3,988)
Total other operating revenue204,883 198,152 209,049 177,865 197,086 
Other operating expense:
Personnel203,022 190,791 190,652 182,145 186,419 
Business promotion8,629 6,958 7,640 8,569 7,470 
Charitable contributions to BOKF Foundation
1,542 23 1,142 — 2,500 
Professional fees and services16,288 13,224 12,777 13,048 18,365 
Net occupancy and equipment30,355 32,583 30,105 28,459 29,227 
Insurance8,495 7,996 6,974 7,315 4,677 
FDIC special assessment43,773 — — — — 
Data processing and communications
45,584 45,672 45,307 44,802 43,048 
Printing, postage and supplies3,844 3,760 3,728 3,893 3,890 
Amortization of intangible assets
3,543 3,474 3,474 3,391 3,736 
Mortgage banking costs8,085 8,357 8,300 5,782 9,016 
Other expense10,923 11,475 8,574 8,408 10,108 
Total other operating expense384,083 324,313 318,673 305,812 318,456 
Net income before taxes111,475 167,735 195,637 208,401 216,256 
Federal and state income taxes28,953 33,256 44,001 45,905 47,864 
Net income82,522 134,479 151,636 162,496 168,392 
Net income (loss) attributable to non-controlling interests
(53)(16)328 128 (37)
Net income attributable to BOK Financial Corporation shareholders
$82,575 $134,495 $151,308 $162,368 $168,429 
Average shares outstanding:
Basic64,750,171 65,548,307 65,994,132 66,331,775 66,627,955 
Diluted64,750,171 65,548,307 65,994,132 66,331,775 66,627,955 
Net income per share:
Basic$1.26 $2.04 $2.27 $2.43 $2.51 
Diluted$1.26 $2.04 $2.27 $2.43 $2.51 
14

FINANCIAL HIGHLIGHTS – UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands, except ratio and share data)
Three Months Ended
Dec. 31, 2023Sep. 30, 2023June 30, 2023Mar. 31, 2023Dec. 31, 2022
Capital:
Period-end shareholders' equity$5,142,442 $4,814,019 $4,863,854 $4,874,786 $4,682,649 
Risk weighted assets$38,820,979 $38,791,023 $38,218,164 $37,192,197 $38,142,231 
Risk-based capital ratios:
Common equity tier 112.06 %12.06 %12.13 %12.19 %11.69 %
Tier 112.07 %12.07 %12.13 %12.20 %11.71 %
Total capital13.16 %13.16 %13.24 %13.21 %12.67 %
Leverage ratio9.45 %9.52 %9.75 %9.94 %9.91 %
Tangible common equity ratio1
8.29 %7.74 %7.79 %8.46 %7.63 %
Adjusted tangible common equity ratio1
8.02 %7.35 %7.49 %8.22 %7.36 %
Common stock:
Book value per share$79.15 $73.31 $73.28 $73.19 $69.93 
Tangible book value per share$62.15 $56.40 $56.50 $56.42 $53.19 
Market value per share:
High$87.52 $92.41 $90.91 $106.47 $110.28 
Low$62.42 $77.61 $74.40 $80.00 $88.46 
Cash dividends paid$35,739 $35,655 $35,879 $36,006 $36,188 
Dividend payout ratio43.28 %26.51 %23.71 %22.18 %21.49 %
Shares outstanding, net64,967,177 65,664,840 66,369,208 66,600,833 66,958,634 
Stock buy-back program:
Shares repurchased700,237 700,500 266,000 447,071 314,406 
Amount$49,710 $58,961 $22,366 $44,100 $32,429 
Average price paid per share2
$70.99 $84.17 $84.08 $98.64 $103.14 
Performance ratios (quarter annualized):
Return on average assets0.66 %1.08 %1.27 %1.43 %1.48 %
Return on average equity6.64 %10.88 %12.28 %13.61 %14.48 %
Return on average tangible common equity1
8.56 %14.08 %15.86 %17.71 %19.14 %
Net interest margin2.64 %2.69 %3.00 %3.45 %3.54 %
Efficiency ratio1,3
71.62 %64.01 %58.75 %56.79 %56.61 %
Other data:
Tax equivalent interest$2,112 $2,214 $2,200 $2,285 $2,287 
Net unrealized loss on available for sale securities$(616,624)$(1,034,520)$(898,906)$(741,508)$(865,553)
15

Three Months Ended
Dec. 31, 2023Sep. 30, 2023June 30, 2023Mar. 31, 2023Dec. 31, 2022
Mortgage banking:
Mortgage production revenue$(2,535)$(1,887)$(284)$(633)$(3,983)
Mortgage loans funded for sale$139,255 $173,727 $214,785 $138,624 $141,090 
Add: Current period-end outstanding commitments
34,783 49,284 55,031 71,693 45,492 
Less: Prior period end outstanding commitments
49,284 55,031 71,693 45,492 75,779 
Total mortgage production volume
$124,754 $167,980 $198,123 $164,825 $110,803 
Mortgage loan refinances to mortgage loans funded for sale
10 %9 %8 %9 %10 %
Realized margin on funded mortgage loans(0.98)%(0.94)%(0.14)%(1.25)%(1.10)%
Production revenue as a percentage of production volume(2.03)%(1.12)%(0.14)%(0.38)%(3.59)%
Mortgage servicing revenue$15,369 $15,243 $15,425 $15,000 $14,048 
Average outstanding principal balance of mortgage loans serviced for others
20,471,030 20,719,116 20,807,044 21,121,319 18,923,078 
Average mortgage servicing revenue rates0.30 %0.29 %0.30 %0.29 %0.29 %
Gain (loss) on mortgage servicing rights, net of economic hedge:
Gain (loss) on mortgage hedge derivative contracts, net
$8,275 $(8,980)$(8,099)$(1,711)$4,373 
Gain (loss) on fair value option securities, net1,031 (203)(2,158)(2,962)(2,568)
Gain (loss) on economic hedge of mortgage servicing rights9,306 (9,183)(10,257)(4,673)1,805 
Gain (loss) on changes in fair value of mortgage servicing rights(14,356)8,039 9,261 (6,059)(2,904)
Loss on changes in fair value of mortgage servicing rights, net of economic hedges, included in other operating revenue(5,050)(1,144)(996)(10,732)(1,099)
Net interest revenue (expense) on fair value option securities4
(101)(112)(232)187 (118)
Total economic benefit (cost) of changes in the fair value of mortgage servicing rights, net of economic hedges$(5,151)$(1,256)$(1,228)$(10,545)$(1,217)
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.


16

EXPLANATION AND RECONCILIATION OF NON-GAAP MEASURES – UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands, except ratio and share data)
Three Months Ended
Dec. 31, 2023Sep. 30, 2023June 30, 2023Mar. 31, 2023Dec. 31, 2022
Reconciliation of tangible common equity ratio and adjusted tangible common equity ratio:
Total shareholders' equity$5,142,442 $4,814,019 $4,863,854 $4,874,786 $4,682,649 
Less: Goodwill and intangible assets, net
1,104,728 1,110,553 1,113,995 1,117,438 1,120,880 
Tangible common equity4,037,714 3,703,466 3,749,859 3,757,348 3,561,769 
Add: Unrealized gain (loss) on investment securities, net(171,903)(246,395)(189,152)(140,947)(167,477)
Add: Tax effect on unrealized gain (loss) on investment securities, net40,430 57,949 44,486 33,149 39,196 
Adjusted tangible common equity$3,906,241 $3,515,020 $3,605,193 $3,649,550 $3,433,488 
Total assets$49,824,830 $48,931,397 $49,237,920 $45,524,122 $47,790,642 
Less: Goodwill and intangible assets, net
1,104,728 1,110,553 1,113,995 1,117,438 1,120,880 
Tangible assets$48,720,102 $47,820,844 $48,123,925 $44,406,684 $46,669,762 
Tangible common equity ratio8.29 %7.74 %7.79 %8.46 %7.63 %
Adjusted tangible common equity ratio8.02 %7.35 %7.49 %8.22 %7.36 %
Reconciliation of return on average tangible common equity:
Total average shareholders' equity$4,933,917 $4,902,119 $4,941,352 $4,837,567 $4,613,929 
Less: Average goodwill and intangible assets, net1,107,949 1,112,217 1,115,652 1,119,123 1,122,680 
Average tangible common equity$3,825,968 $3,789,902 $3,825,700 $3,718,444 $3,491,249 
Net Income82,575 134,495 151,308 162,368 168,429 
Return on average tangible common equity8.56 %14.08 %15.86 %17.71 %19.14 %
Reconciliation of pre-provision net revenue:
Net income before taxes$111,475 $167,735 $195,637 $208,401 $216,256 
Provision for expected credit losses6,000 7,000 17,000 16,000 15,000 
Net income (loss) attributable to non-controlling interests(53)(16)328 128 (37)
Pre-provision net revenue$117,528 $174,751 $212,309 $224,273 $231,293 
17

Three Months Ended
Dec. 31, 2023Sep. 30, 2023June 30, 2023Mar. 31, 2023Dec. 31, 2022
Calculation of efficiency ratio and efficiency ratio excluding infrequent items:
Total other operating expense$384,083 $324,313 $318,673 $305,812 $318,456 
Less: Amortization of intangible assets3,543 3,474 3,474 3,391 3,736 
Adjusted total other operating expense$380,540 $320,839 $315,199 $302,421 $314,720 
Less: FDIC special assessment43,773 — — — — 
Less: Expenses related to sale of BOKF Insurance 3,436 — — — — 
Adjusted total other operating expense excluding infrequent items
$333,331 $320,839 $315,199 $302,421 $314,720 
Net interest revenue$296,675 $300,896 $322,261 $352,348 $352,626 
Tax-equivalent adjustment2,112 2,214 2,200 2,285 2,287 
Tax-equivalent net interest revenue298,787 303,110 324,461 354,633 354,913 
Total other operating revenue204,883 198,152 209,049 177,865 197,086 
Less: Loss on available for sale securities, net(27,626)— (3,010)— (3,988)
Adjusted revenue531,296 501,262 536,520 532,498 555,987 
Less: Gain on sale of BOK Financial Insurance31,007 — — — — 
Adjusted revenue excluding infrequent item$500,289 $501,262 $536,520 $532,498 $555,987 
Efficiency ratio71.62 %64.01 %58.75 %56.79 %56.61 %
Efficiency ratio excluding infrequent items
66.63 %64.01 %58.75 %56.79 %56.61 %
Information on net interest revenue and net interest margin excluding trading activities:
Net interest revenue$296,675 $300,896 $322,261 $352,348 $352,626 
Less: Trading activities net interest revenue(3,305)(7,343)(3,461)70 (860)
Net interest revenue excluding trading activities299,980 308,239 325,722 352,278 353,486 
Tax-equivalent adjustment2,112 2,214 2,200 2,285 2,287 
Tax-equivalent net interest revenue excluding trading activities$302,092 $310,453 $327,922 $354,563 $355,773 
Average total earning assets$44,327,237 $44,012,300 $42,731,533 $40,781,257 $39,285,300 
Less: Average trading activities interest-earning assets5,448,403 5,444,587 4,274,803 3,031,969 3,086,985 
Average interest-earning assets excluding trading activities$38,878,834 $38,567,713 $38,456,730 $37,749,288 $36,198,315 
Net interest margin on average interest-earning assets2.64 %2.69 %3.00 %3.45 %3.54 %
Net interest margin on average trading activities interest-earning assets(0.20)%(0.49)%(0.34)%— %(0.12)%
Net interest margin on average interest-earning assets excluding trading activities3.03 %3.14 %3.36 %3.72 %3.84 %






18

Explanation of Non-GAAP Measure
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.

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.


19

LOANS TREND – UNAUDITED
BOK FINANCIAL CORPORATION
(In thousands)
Dec. 31, 2023Sep. 30, 2023June 30, 2023Mar. 31, 2023Dec. 31, 2022
Commercial:     
Healthcare$4,143,233 $4,083,134 $3,991,387 $3,899,341 $3,845,017 
Services3,576,223 3,566,361 3,585,169 3,563,702 3,431,521 
Energy3,437,101 3,490,602 3,508,752 3,398,057 3,424,790 
General business3,647,212 3,579,742 3,449,208 3,356,249 3,511,171 
Total commercial14,803,769 14,719,839 14,534,516 14,217,349 14,212,499 
Commercial real estate:
Multifamily1,872,760 1,734,688 1,502,971 1,363,881 1,212,883 
Industrial1,475,165 1,432,629 1,349,709 1,309,435 1,221,501 
Office909,442 981,876 1,005,660 1,045,700 1,053,331 
Retail592,632 608,073 617,886 618,264 620,518 
Residential construction and land development
95,052 100,465 106,370 102,828 95,684 
Other commercial real estate392,596 383,569 388,205 375,208 402,860 
Total commercial real estate5,337,647 5,241,300 4,970,801 4,815,316 4,606,777 
Loans to individuals:     
Residential mortgage2,160,640 2,090,992 1,993,690 1,926,027 1,890,784 
Residential mortgages guaranteed by U.S. government agencies149,807 161,092 186,170 224,753 245,940 
Personal1,453,105 1,510,795 1,552,482 1,566,608 1,601,150 
Total loans to individuals3,763,552 3,762,879 3,732,342 3,717,388 3,737,874 
Total$23,904,968 $23,724,018 $23,237,659 $22,750,053 $22,557,150 
20

LOANS MANAGED BY PRINCIPAL MARKET AREA – UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands)
Dec. 31, 2023Sep. 30, 2023June 30, 2023Mar. 31, 2023Dec. 31, 2022
Texas:
Commercial$7,384,107 $7,249,963 $7,223,820 $7,103,166 $6,878,618 
Commercial real estate1,987,037 1,873,477 1,748,796 1,675,831 1,555,508 
Loans to individuals914,134 961,299 974,911 992,343 982,700 
Total Texas10,285,278 10,084,739 9,947,527 9,771,340 9,416,826 
Oklahoma:
Commercial3,275,907 3,384,627 3,251,547 3,178,934 3,382,577 
Commercial real estate606,515 601,087 573,559 574,708 582,109 
Loans to individuals2,147,782 2,100,974 2,079,311 2,049,472 2,077,124 
Total Oklahoma6,030,204 6,086,688 5,904,417 5,803,114 6,041,810 
Colorado:
Commercial2,273,179 2,219,460 2,179,473 2,148,066 2,149,199 
Commercial real estate769,329 710,552 683,973 646,537 613,912 
Loans to individuals228,257 227,569 223,200 231,368 241,902 
Total Colorado3,270,765 3,157,581 3,086,646 3,025,971 3,005,013 
Arizona:
Commercial1,143,682 1,173,491 1,177,778 1,115,973 1,124,289 
Commercial real estate1,003,331 1,014,151 926,750 881,465 860,947 
Loans to individuals248,873 260,282 242,102 240,556 229,872 
Total Arizona2,395,886 2,447,924 2,346,630 2,237,994 2,215,108 
Kansas/Missouri:
Commercial331,179 307,725 309,148 318,782 310,715 
Commercial real estate511,947 547,708 516,299 489,951 479,968 
Loans to individuals144,958 132,137 138,960 129,580 131,307 
Total Kansas/Missouri988,084 987,570 964,407 938,313 921,990 
New Mexico:
Commercial291,736 297,714 287,443 280,945 263,349 
Commercial real estate389,106 405,989 425,472 449,715 417,008 
Loans to individuals67,485 69,418 64,803 65,770 67,163 
Total New Mexico748,327 773,121 777,718 796,430 747,520 
Arkansas:
Commercial103,979 86,859 105,307 71,483 103,752 
Commercial real estate70,382 88,336 95,952 97,109 97,325 
Loans to individuals12,063 11,200 9,055 8,299 7,806 
Total Arkansas186,424 186,395 210,314 176,891 208,883 
TOTAL BOK FINANCIAL$23,904,968 $23,724,018 $23,237,659 $22,750,053 $22,557,150 
Loans attributed to a principal market may not always represent the location of the borrower or the collateral.
21

DEPOSITS BY PRINCIPAL MARKET AREA – UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands)
Dec. 31, 2023Sep. 30, 2023June 30, 2023Mar. 31, 2023Dec. 31, 2022
Oklahoma:
    Demand$3,586,091 $4,019,019 $4,273,136 $4,369,944 $4,585,963 
    Interest-bearing:
       Transaction10,929,704 9,970,955 9,979,534 9,468,100 9,475,528 
       Savings500,313 508,619 531,536 564,829 555,407 
       Time1,984,336 2,019,749 1,945,916 942,787 794,002 
    Total interest-bearing13,414,353 12,499,323 12,456,986 10,975,716 10,824,937 
Total Oklahoma17,000,444 16,518,342 16,730,122 15,345,660 15,410,900 
Texas:
    Demand2,306,334 2,599,998 2,876,568 3,154,789 3,873,759 
    Interest-bearing:
       Transaction5,035,856 5,046,288 4,532,093 4,366,932 4,878,482 
       Savings155,652 154,863 162,704 175,012 178,356 
       Time492,753 436,218 377,424 321,774 356,538 
    Total interest-bearing5,684,261 5,637,369 5,072,221 4,863,718 5,413,376 
Total Texas7,990,595 8,237,367 7,948,789 8,018,507 9,287,135 
Colorado:
    Demand1,633,672 1,598,622 1,726,130 1,869,194 2,462,891 
    Interest-bearing:
       Transaction1,921,605 1,888,026 1,825,295 2,126,435 2,123,218 
       Savings67,646 63,129 66,968 72,548 77,961 
       Time201,393 185,030 148,840 128,583 135,043 
    Total interest-bearing2,190,644 2,136,185 2,041,103 2,327,566 2,336,222 
Total Colorado3,824,316 3,734,807 3,767,233 4,196,760 4,799,113 
New Mexico:
    Demand794,467 853,571 912,218 997,364 1,141,958 
    Interest-bearing:
       Transaction886,089 1,049,903 712,541 674,328 691,915 
       Savings95,453 97,753 102,729 111,771 112,430 
       Time258,195 217,535 179,548 137,875 133,625 
    Total interest-bearing1,239,737 1,365,191 994,818 923,974 937,970 
Total New Mexico2,034,204 2,218,762 1,907,036 1,921,338 2,079,928 
Arizona:
    Demand524,167 522,142 592,144 780,051 844,327 
    Interest-bearing:
       Transaction1,174,715 903,535 800,970 687,527 739,628 
       Savings11,636 12,340 14,489 16,993 16,496 
       Time41,884 36,689 31,248 27,755 24,846 
    Total interest-bearing1,228,235 952,564 846,707 732,275 780,970 
Total Arizona1,752,402 1,474,706 1,438,851 1,512,326 1,625,297 
22

Dec. 31, 2023Sep. 30, 2023June 30, 2023Mar. 31, 2023Dec. 31, 2022
Kansas/Missouri:
    Demand326,496 351,236 363,534 393,321 436,259 
    Interest-bearing:
       Transaction966,166 981,091 1,014,247 1,040,009 694,163 
       Savings13,821 14,331 16,316 18,292 20,678 
       Time23,955 22,437 16,176 13,061 12,963 
    Total interest-bearing1,003,942 1,017,859 1,046,739 1,071,362 727,804 
Total Kansas/Missouri1,330,438 1,369,095 1,410,273 1,464,683 1,164,063 
Arkansas:
    Demand25,266 29,635 38,818 42,312 50,180 
    Interest-bearing:
       Transaction49,966 57,381 43,301 71,158 56,181 
       Savings2,564 2,898 3,195 3,228 3,083 
       Time9,506 9,559 7,225 4,775 4,825 
    Total interest-bearing62,036 69,838 53,721 79,161 64,089 
Total Arkansas87,302 99,473 92,539 121,473 114,269 
TOTAL BOK FINANCIAL$34,019,701 $33,652,552 $33,294,843 $32,580,747 $34,480,705 

23

NET INTEREST MARGIN TREND – UNAUDITED
BOK FINANCIAL CORPORATION
Three Months Ended
Dec. 31, 2023Sep. 30, 2023June 30, 2023Mar. 31, 2023Dec. 31, 2022
TAX-EQUIVALENT ASSETS YIELDS
Interest-bearing cash and cash equivalents5.30 %5.43 %5.41 %4.28 %4.06 %
Trading securities5.05 %4.76 %4.50 %4.52 %3.70 %
Investment securities, net of allowance1.42 %1.43 %1.44 %1.46 %1.46 %
Available for sale securities3.27 %3.11 %3.00 %2.87 %2.54 %
Fair value option securities3.57 %4.61 %5.07 %5.17 %4.40 %
Restricted equity securities8.01 %7.88 %7.31 %7.34 %5.70 %
Residential mortgage loans held for sale6.59 %6.27 %5.85 %5.79 %5.56 %
Loans7.36 %7.25 %7.03 %6.67 %5.99 %
Allowance for loan losses
Loans, net of allowance7.45 %7.33 %7.10 %6.74 %6.06 %
Total tax-equivalent yield on earning assets5.64 %5.49 %5.29 %5.06 %4.53 %
COST OF INTEREST-BEARING LIABILITIES
Interest-bearing deposits:
  Interest-bearing transaction3.44 %3.18 %2.60 %1.91 %1.28 %
  Savings0.53 %0.47 %0.21 %0.10 %0.08 %
  Time4.13 %3.96 %3.27 %1.95 %1.25 %
Total interest-bearing deposits3.43 %3.17 %2.56 %1.83 %1.22 %
Funds purchased and repurchase agreements4.79 %4.81 %4.58 %3.33 %2.05 %
Other borrowings5.55 %5.48 %5.12 %4.73 %4.08 %
Subordinated debt7.09 %7.02 %6.79 %6.40 %6.16 %
Total cost of interest-bearing liabilities3.98 %3.81 %3.27 %2.43 %1.57 %
Tax-equivalent net interest revenue spread1.66 %1.68 %2.02 %2.63 %2.96 %
Effect of noninterest-bearing funding sources and other
0.98 %1.01 %0.98 %0.82 %0.58 %
Tax-equivalent net interest margin2.64 %2.69 %3.00 %3.45 %3.54 %

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.

24

CREDIT QUALITY INDICATORS – UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands, except ratios)
Three Months Ended
Dec. 31, 2023Sep. 30, 2023June 30, 2023Mar. 31, 2023Dec. 31, 2022
Nonperforming assets:
Nonaccruing loans:
Commercial:
Healthcare$81,529 $41,836 $36,753 $37,247 $41,034 
Energy17,843 19,559 20,037 127 1,399 
Services3,616 2,820 4,541 8,097 16,228 
General business7,143 6,483 11,946 8,961 1,636 
Total commercial110,131 70,698 73,277 54,432 60,297 
Commercial real estate7,320 7,418 17,395 21,668 16,570 
Loans to individuals:
Permanent mortgage18,056 30,954 29,973 29,693 29,791 
Permanent mortgage guaranteed by U.S. government agencies
9,709 10,436 11,473 14,302 15,005 
Personal253 79 133 200 134 
Total loans to individuals28,018 41,469 41,579 44,195 44,930 
Total nonaccruing loans$145,469 $119,585 $132,251 $120,295 $121,797 
Accruing renegotiated loans guaranteed by U.S. government agencies1
— — — — 163,535 
Real estate and other repossessed assets2,875 3,753 4,227 12,651 14,304 
Total nonperforming assets$148,344 $123,338 $136,478 $132,946 $299,636 
Total nonperforming assets excluding those guaranteed by U.S. government agencies
$138,635 $112,902 $125,005 $118,644 $121,096 
Accruing loans 90 days past due2
$170 $64 $220 $76 $510 
Gross charge-offs$5,007 $10,593 $8,049 $3,667 $17,807 
Recoveries(911)(4,062)(1,346)(2,898)(2,301)
Net charge-offs (recoveries)$4,096 $6,531 $6,703 $769 $15,506 
Provision for loan losses
$9,105 $15,931 $19,957 $14,525 $9,442 
Provision for credit losses from off-balance sheet unfunded loan commitments
(3,627)(7,336)(3,003)2,024 4,609 
Provision for expected credit losses from mortgage banking activities530 (1,474)78 (488)1,003 
Provision for credit losses related to held-to maturity (investment) securities portfolio(8)(121)(32)(61)(54)
Total provision for credit losses$6,000 $7,000 $17,000 $16,000 $15,000 
25

Three Months Ended
Dec. 31, 2023Sep. 30, 2023June 30, 2023Mar. 31, 2023Dec. 31, 2022
Allowance for loan losses to period end loans
1.16 %1.15 %1.13 %1.10 %1.04 %
Combined allowance for loan losses and accrual for off-balance sheet credit risk from unfunded loan commitments to period end loans
1.36 %1.37 %1.39 %1.37 %1.31 %
Nonperforming assets to period end loans and repossessed assets
0.62 %0.52 %0.59 %0.58 %1.33 %
Net charge-offs (annualized) to average loans
0.07 %0.11 %0.12 %0.01 %0.28 %
Allowance for loan losses to nonaccruing loans2
204.13 %249.31 %217.52 %235.36 %220.71 %
Combined allowance for loan losses and accrual for off-balance sheet credit risk from unfunded loan commitments to nonaccruing loans2
240.20 %297.50 %267.15 %294.74 %277.76 %
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.

26

SEGMENTS – UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands, except ratios)
Three Months Ended
4Q23 vs 3Q23
Year Ended2023 vs 2022
Dec. 31, 2023Sep. 30, 2023$ change% changeDec. 31, 2023Dec. 31, 2022$ change% change
Commercial Banking
Net interest revenue$250,651 $254,464 $(3,813)(1.5)%$1,032,371 $744,449 $287,922 38.7 %
Fees and commissions revenue60,937 57,858 3,079 5.3 %234,334 233,873 461 0.2 %
Combined net interest and fee revenue311,588 312,322 (734)(0.2)%1,266,705 978,322 288,383 29.5 %
Other operating expense80,430 81,751 (1,321)(1.6)%312,794 289,243 23,551 8.1 %
Corporate expense allocations18,020 17,834 186 1.0 %74,976 67,278 7,698 11.4 %
Net income159,046 157,930 1,116 0.7 %664,461 461,536 202,925 44.0 %
Average assets29,324,296 28,849,597 474,699 1.6 %28,630,716 29,084,957 (454,241)(1.6)%
Average loans19,928,574 19,645,259 283,315 1.4 %19,374,791 17,553,398 1,821,393 10.4 %
Average deposits15,471,827 15,098,038 373,789 2.5 %15,311,654 18,323,412 (3,011,758)(16.4)%
Consumer Banking
Net interest revenue$114,396 $112,608 $1,788 1.6 %$449,776 $158,249 $291,527 184.2 %
Fees and commissions revenue30,075 30,715 (640)(2.1)%123,732 121,926 1,806 1.5 %
Combined net interest and fee revenue144,471 143,323 1,148 0.8 %573,508 280,175 293,333 104.7 %
Other operating expense55,079 54,497 582 1.1 %212,114 209,210 2,904 1.4 %
Corporate expense allocations12,705 11,920 785 6.6 %48,565 44,965 3,600 8.0 %
Net income53,695 58,009 (4,314)(7.4)%222,719 5,889 216,830 3,681.9 %
Average assets9,342,840 9,379,478 (36,638)(0.4)%9,561,512 10,230,437 (668,925)(6.5)%
Average loans1,877,303 1,812,606 64,697 3.6 %1,800,320 1,688,697 111,623 6.6 %
Average deposits7,890,032 7,936,186 (46,154)(0.6)%8,014,159 8,763,046 (748,887)(8.5)%
Wealth Management
Net interest revenue$41,643 $36,437 $5,206 14.3 %$181,538 $161,597 $19,941 12.3 %
Fees and commissions revenue119,872 123,614 (3,742)(3.0)%475,447 339,538 135,909 40.0 %
Combined net interest and fee revenue161,515 160,051 1,464 0.9 %656,985 501,135 155,850 31.1 %
Other operating expense96,275 89,367 6,908 7.7 %352,540 312,377 40,163 12.9 %
Corporate expense allocations14,198 14,331 (133)(0.9)%53,463 50,241 3,222 6.4 %
Net income62,690 43,029 19,661 45.7 %215,483 106,020 109,463 103.2 %
Average assets14,879,450 14,740,641 138,809 0.9 %13,570,153 16,209,684 (2,639,531)(16.3)%
Average loans2,154,416 2,219,829 (65,413)(2.9)%2,201,614 2,166,231 35,383 1.6 %
Average deposits8,085,643 7,886,962 198,681 2.5 %7,739,490 8,491,377 (751,887)(8.9)%
Fiduciary assets59,798,693 56,380,009 3,418,684 6.1 %59,798,693 56,060,496 3,738,197 6.7 %
Assets under management or administration104,736,999 99,004,179 5,732,820 5.8 %104,736,999 99,735,040 5,001,959 5.0 %
27
January 24, 2024 Q4 Earnings Conference Call

 
This presentation 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. For a discussion of risk factors that may cause actual results to differ from expectations, please refer to BOK Financial Corporation’s most recent annual and quarterly reports. 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. Non-GAAP Financial Measures: This presentation may refer to non-GAAP financial measures. Additional information on these financial measures is available in BOK Financial’s 10-Q and 10-K filings with the Securities and Exchange Commission which can be accessed at bokf.com. All data is presented as of December 31, 2023 unless otherwise noted. Legal Disclaimers 2

 
Stacy Kymes Chief Executive Officer 3

 
Q4 summary * Non-GAAP measure Attributable to shareholders Per share (diluted) Quarterly earnings trend Net income Noteworthy items impacting profitability • Q4 net income includes the pretax FDIC special assessment of $43.8 million or $0.52 per share, as well as $3.1 million of additional non-periodic tax expense or $0.05 per share. Q3 tax provision included a reduction in tax expense of $4.8 million resulting from decreases in uncertain tax positions or $0.07 per share. • Q4 includes the sale of our insurance brokerage & consulting business, with that pretax gain offset with AFS losses as we opportunistically repositioned the AFS portfolio. • Net interest revenue declined $4 million linked quarter, with margin compressing 5 bps as increased funding costs continued, but at a much slower pace. Excluding trading activities, the margin would have been 3.03%*. 4 ($Million, exc. EPS) Q4 2023 Q3 2023 Q4 2022 Net income $82.6 $134.5 $168.4 Diluted EPS $1.26 $2.04 $2.51 Net income before taxes $111.5 $167.7 $216.3 Provision for credit losses $6.0 $7.0 $15.0 Pre-provision net revenue* $117.5 $174.8 $231.3 Efficiency ratio 71.6% 64.0% 56.6% Revenue Composition as of 12/31/2023 Net interest revenue Trading & brokerage Fiduciary & asset management Transaction card Deposit service charges Mortgage banking Other revenue

 
Additional details 5 ◦ Period end loan balances grew $181 million; unfunded commitments increased $388 million ◦ Average deposits increased $388 million in Q4, with the mix continuing to shift to interest bearing. Deposit balances continue to stabilize and are expected to grow modestly. ◦ Loan to deposit ratio decreased slightly linked quarter to 70.3%, and remains below pre-pandemic level of 78.7% at Dec. 31, 2019 ◦ Assets under management or administration increased $5.7 billion, primarily due to improved market valuations ($Billion) Q4 2023 Quarterly Sequential Quarterly YOY Period-End Loans $23.9 0.8% 6.0% Average Loans $23.7 1.2% 7.9% Period-End Deposits $34.0 1.1% (1.3)% Average Deposits $33.7 1.2% (5.0)% Fiduciary Assets $59.8 6.1% 6.7% Assets Under Management or Administration $104.7 5.8% 5.0%

 
Marc Maun EVP, Regional Banking Executive 6

 
Loan portfolio • Energy balances decreased slightly by $54 million • Combined Services & General Business ("Core C&I") balances increased $77 million • Healthcare balances up $60 million linked quarter - $30 million each from Senior Housing & Hospital • Total C&I balances increased $84 million linked quarter • Commercial Real Estate balances increased $96 million or 1.8% linked quarter driven by growth in multifamily & industrial • Compared to December 31, 2020, CRE balances have grown at a modest annualized rate of 4.1% and are managed to an internal limit of 185% of CRE commitments to capital and reserves 7 ($Million) Dec. 31, 2023 Sep. 30, 2023 Dec. 31, 2022 Seq. Loan Growth YOY Loan Growth Energy $ 3,437.1 $ 3,490.6 $ 3,424.8 (1.5)% 0.4% Services 3,576.2 3,566.4 3,431.5 0.3% 4.2% Healthcare 4,143.2 4,083.1 3,845.0 1.5% 7.8% General business 3,647.2 3,579.7 3,511.2 1.9% 3.9% Total C&I $ 14,803.8 $ 14,719.8 $ 14,212.5 0.6% 4.2% Multifamily $ 1,872.8 $ 1,734.7 $ 1,212.9 8.0% 54.4% Industrial 1,475.2 1,432.6 1,221.5 3.0% 20.8% Office 909.4 981.9 1,053.3 (7.4)% (13.7)% Retail 592.6 608.1 620.5 (2.5)% (4.5)% Residential construction and land development 95.1 100.5 95.7 (5.4)% (0.7)% Other commercial real estate 392.6 383.6 402.9 2.4% (2.5)% Total Commercial real estate $ 5,337.6 $ 5,241.3 $ 4,606.8 1.8% 15.9% Loans to individuals $ 3,763.6 $ 3,762.9 $ 3,737.9 —% 0.7% Total Loans $ 23,905.0 $ 23,724.0 $ 22,557.2 0.8% 6.0%

 
Key credit quality metrics Quality metrics summary • Credit quality better than pre-pandemic level • Trailing 12 months net charge-offs at 8 basis points • CRE office exposure is less than 4% of outstanding period end total loan balances, with properties in resilient markets • $6 million credit provision in Q4; with a combined allowance for credit losses of $326 million or 1.36% Net charge-offs to average loans CRE Office by Location Annualized 8 Committed Criticized Assets / Tier 1 Capital & Reserves

 
Scott Grauer EVP, Wealth Management Executive 9

 
Fees & commissions Brokerage & trading • Linked quarter decrease from a decline in Investment banking fees as Q3 was a record quarter for our Public & Corporate Finance activities, with Brokerage & insurance fees down due to the sale of our insurance brokerage & consulting business. Fiduciary & asset management • Fees down 1.6% linked-quarter as Q3 included a seasonal high for Corporate debt service payments; fees increased 3.0% versus prior year. Service charges • Linked quarter fees relatively flat, year- over-year increase primarily related to commercial customers carrying less compensating balances Mortgage banking • Seasonal decrease in mortgage pipeline and industry-wide low origination volumes 10 ($Million) Q4 2023 Qtr. Seq. $ Change Qtr. Seq. % Change Qtr. YOY % Change Trading fees $ 35.5 $ 1.1 3.1% (1.1)% Customer hedging fees 7.7 0.8 11.9% (9.4)% Brokerage & insurance fees 6.2 (0.9) (12.2)% (8.4)% Syndication fees 4.7 0.8 21.7% (43.7)% Investment banking fees 6.8 (3.3) (32.4)% 91.1% Brokerage & trading $ 60.9 $ (1.4) (2.3)% (3.4)% Transaction card $ 28.8 $ 2.5 9.3% 6.3% Fiduciary & asset management 51.4 (0.8) (1.6)% 3.0% Deposit service charges & fees 27.8 0.1 0.3% 5.1% Mortgage banking 12.8 (0.5) (3.9)% 27.5% Other revenue 15.0 (0.8) (5.2)% (11.7)% Total fees & commissions $ 196.8 $ (1.1) (0.5)% 1.7%

 
Marty Grunst EVP, Chief Financial Officer 11

 
Yields, rate & margin Net interest revenue • Net interest revenue was down $4.2 million linked quarter, the slowest pace of decline since the beginning of the hiking cycle Net interest margin • Loan yields increased 11 bps • Interest-bearing deposit costs up 26 bps relative to the prior quarter • 5 bps NIM decrease due to deposit beta and demand deposit mix shift 12 ($Million) Q4 2023 Q3 2023 Q4 2022 Quarterly sequential Quarterly YOY Net interest revenue $296.7 $300.9 $352.6 (1.4)% (15.9)% Net interest margin 2.64% 2.69% 3.54% (5) bps (90) bps Yield on loans 7.36% 7.25% 5.99% 11 bps 137 bps Tax-equivalent yield on earning assets 5.64% 5.49% 4.53% 15 bps 111 bps Cost of interest-bearing deposits 3.43% 3.17% 1.22% 26 bps 221 bps Rate on interest-bearing liabilities 3.98% 3.81% 1.57% 17 bps 241 bps Net Interest Revenue ($Million) Net Interest Margin * Non-GAAP measure

 
Liquidity & capital * Non-GAAP measure • Period-end deposit balances increased $367 million this quarter • Potential secured capacity was $23.1 billion, which reflects current available secured capacity of $18.3 billion increased by $4.8 billion as an estimate of other sources that could be converted into additional secured capacity • Uninsured deposit balances excluding collateralized and consolidated subsidiary balances were $12.9 billion, with BOKF's coverage ratio remaining stable at ~ 179% • Robust capital ratios consistently remain well above regulatory and internal policy thresholds • CET1 including AOCI 10.5%* and both AOCI and HTM 10.2%* • TCE including HTM 8.02%* ◦ For Q3, 2nd highest among top 20 banks • Repurchased 700,237 shares at an average price of $70.99 per share in the open market 13 Q4 2023 Q3 2023 Q4 2022 Loan to Deposit Ratio 70.3% 70.5% 65.4% Period-End Deposits $34.0 billion $33.7 billion $34.5 billion Current available secured capacity $18.3 billion $18.7 billion $13.3 billion Common Equity Tier 1 12.1% 12.1% 11.7% Total Capital Ratio 13.2% 13.2% 12.7% Tangible Common Equity Ratio * 8.3% 7.7% 7.6% Coverage Ratio ~179% Uninsured Deposit Coverage ($Billions)

 
Expenses Expenses summary • Quarterly personnel expenses increased 6.4% or $12 million; $5.4 million due to market valuations in deferred comp, $4.0 million in cash- based sales related activities, $925 thousand in transaction related costs from the sale of our insurance brokerage & consulting business, and $1.1 million in seasonal benefits expenses • Other operating expense increased $47.5 million: $43.8 million FDIC, $2.5 million expenses related to the insurance sale, $1.5 million contribution to the foundation • Excluding the FDIC special assessment and the net effects of the sale or our insurance business, the efficiency ratio would be 66.6% 14 ($Million) Q4 2023 Q3 2023 Q4 2022 % Incr. Seq. % Incr. YOY Personnel expense $203.0 $190.8 $186.4 6.4% 8.9% Other operating expense $181.1 $133.5 $132.0 35.6% 37.1% Total operating expense $384.1 $324.3 $318.5 18.4% 20.6% Efficiency ratio 71.6% 64.0% 56.6% --- ---

 
Forecast & assumptions 15 • We expect mid to upper single digit annualized loan growth. Economic conditions in our geographic footprint remain favorable and continue to be supported by business in-migration from other markets. The competitive environment for loans should be a tailwind for us. • We expect to continue holding our available for sale securities portfolio flat and to maintain a neutral interest rate risk position. • We expect total deposits to grow modestly, and the loan to deposit ratio to remain near 70%. • Currently we are assuming no additional rate changes by the Federal Reserve in 2024. We believe the margin will migrate slightly lower in Q1 2024 and expect net interest income to be near $1.2 billion for 2024. • In aggregate, we expect total fees and commissions revenue in a range of $825 to $850 million for 2024. • Excluding the FDIC special assessment, we expect expenses to increase at a mid single digit growth rate as we continue to invest in strategic growth and technology initiatives, with revenue growth following at a slight lag. As revenue growth is realized in 2024, we expect the efficiency ratio to migrate downward to a range of approximately 65 percent. • Our combined allowance level is above the median of our peers, and we expect to maintain a strong credit reserve. Given our expectations for loan growth and the strength of our credit quality, we expect quarterly provision expense near recent levels to continue, and an eventual move toward more normal credit costs in the second half of 2024. Changes in the economic outlook will impact our provision expense. • Additionally, we expect to continue opportunistic share repurchase activity.

 
Stacy Kymes Chief Executive Officer 16

 
Question and Answer Session 17

 
Appendix 18

 
Balanced Interest Rate Risk Position Noteworthy balance sheet items • Approximately 74% of the total loan portfolio is variable rate or fixed rate that reprice within a year • Approximately 81% of Commercial and Commercial Real Estate portfolios are variable rate or fixed rate that reprice within a year • Short duration securities portfolio • Sensitivity to betas - The impact of increasing our deposit beta by 10% in the +200 is -1.33% on NIR 19 Scenario* ∆ NIR % ∆ NIR $ Down 200 Ramp, year 1 -0.24% -$2.9 million Down 100 Ramp, year 1 -0.66% -$7.9 million Up 100 Ramp, year 1 -0.75% -$8.9 million Up 200 Ramp, year 1 -3.03% -$36.1 million * Estimates for parallel shifts in the rate curve. Portfolio Durations -100 Base +100 +300 AFS 2.7 2.9 3.1 3.4 HTM 4.2 4.4 4.6 4.7 Total 2.9 3.1 3.3 3.6

 

 
v3.23.4
Document and Entity Information Document
Jan. 24, 2024
DEI [Abstract]  
Entity Central Index Key 0000875357
Entity Incorporation, State or Country Code OK
Document Type 8-K
Document Period End Date Jan. 24, 2024
Entity File Number 001-37811
Entity Registrant Name BOK FINANCIAL CORP
City Area Code 918
Local Phone Number 588-6000
Entity Tax Identification Number 73-1373454
Entity Address, Address Line One Boston Avenue at Second Street
Entity Address, City or Town Tulsa,
Entity Address, State or Province OK
Entity Address, Postal Zip Code 74192
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, par value $0.00006 per share
Trading Symbol BOKF
Security Exchange Name NASDAQ
Entity Emerging Growth Company false
Amendment Flag false
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