BOK Financial
Annual Report 2007

Plain-text annual report

2007 ANNUAL REPORT Table of Contents: Map . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Inside Fold Financial Highlights . . . . . . . . . . . . . . . . . . . . . . . . . 1 Letter to Our Shareholders . . . . . . . . . . . . . . . . . . . 3 2007 Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Board of Directors . . . . . . . . . . . . . . . . . . . . . . . . . 10 Corporate Information . . . . . . . . . . . . . . . . . . . . . . 12 Financial Highlights (Dollars In Thousands Except Per Share Data) For the year: Net income Period-end: Assets Loans Deposits Shareholders’ equity Nonperforming assets1 Profitability Statistics Earnings per share (based on average equivalent shares): Basic Diluted Percentages (based on daily averages): Return on average assets Return on average shareholders’ equity Common Stock Performance Per Share: Book value per common share Market price: December 31 close Selected Balance Sheet Statistics Period-end: Tier 1 capital ratio Reserve for loan losses to nonperforming loans Combined reserves for credit losses to loans2, 3 Miscellaneous (at December 31) Number of banking locations Number of TransFund locations 2007 2006 2005 $ 217,664 $ 212,977 $ 201,505 $ 20,839,864 12,017,247 13,459,291 1,935,384 104,159 $ 18,059,624 10,715,803 12,386,705 1,721,022 44,343 $ 16,327,069 9,139,978 11,375,318 1,539,154 40,017 $ 3.24 3.22 $ 3.19 3.16 $ 3.14 3.01 1.14 % 12.01 1.27 % 13.23 1.29 % 13.78 $ 28.75 51.70 $ 25.66 54.98 $ 23.07 45.43 9.38 % 133.79 1.24 9.78 % 305.37 1.22 9.84 % 329.34 1.37 189 1,822 163 1,649 150 1,421 Includes nonaccrual loans, renegotiated loans and assets acquired in satisfaction of loans. Excludes loans past due 90 days or more and still accruing. 1 2 Excludes residential mortgage loans held for sale. 3 Includes reserve for loan losses and reserve for off-balance sheet credit losses. 1 We will execute our carefully planned strategies with precision, confident that through our successful past we have found the key to a successful future. 2 Letter To Our Shareholders 2007 was a tumultuous year for the banking industry due to continued margin pressure, the crisis in the housing market and the resulting decline in bank stock prices. Though these challenges affected our results, we fared well relative to our peers. BOK Financial Corporation (BOKF) generated record earnings for the 17th consecutive year. We also laid the foundation for continued growth by significantly expanding our branch network. Furthermore, while bank stock prices plummeted, including the NASDAQ Bank index which fell 22%, BOKF’s stock price declined only 6%. In fact, BOKF’s stock outperformed all but nine of the 103 banks with market capitalization over $400 million. The market seems to recognize that while BOKF is not immune to industry trends, our proven and balanced strategies produce relatively stable results even in difficult environments. TARGETED RESULTS BOKF’s earnings growth was moderately affected by prolonged flat and inverted yield curves, competitive loan and deposit pricing pressures and credit costs returning to more normal levels. However, by staying focused on our targets, we generated net income of $218 million, or $3.22 per diluted share compared to $213 million, or $3.16 per diluted share in 2006. Fee-based revenue, which represented 42% of total revenue, grew 9%. While all major fee categories posted increases, brokerage and trading revenue and transaction card revenue enjoyed the strongest growth at 17% and 15%, respectively. Our balance sheet growth remained strong in 2007 as we surpassed $20 billion in total assets, fueled by success in the regional banks. During the year, we reached a milestone as more than half of BOKF’s loans are now in markets outside Oklahoma. This is noteworthy considering our regional expansion began in 1997 with the acquisitions of two banks in the Dallas area with combined assets of $367 million. Today average assets in Texas exceed $4.3 billion. BOKF is positioned to continue this growth trend, due in part to recent investments in our branch network. During 2007, we increased the depth and reach of our branch network both organically and through acquisitions. We nearly tripled our branches in Colorado with the acquisition of First United Bank. By acquiring Worth National Bank, we extended our presence further west in the Dallas/Fort Worth metroplex. In addition to the 16 branches we acquired, we opened 14 others throughout our footprint. We now have 189 banking locations in total. BALANCED STRATEGY While we focused significant resources on expansion projects, we weren’t distracted from our core business. BOKF focuses on traditional banking, maintaining virtually no direct exposure to the subprime markets through the loan or investment portfolios. Due to credit issues in the housing market, many banks suffered significant loan losses. BOKF’s loan losses only increased moderately in 2007. Our nonperforming assets are returning to more normal levels after remaining at historic lows for more than two years. Our asset quality may continue to be affected by the general economy, but we should benefit from the balance and diversity of our loan portfolio. We deliberately manage loan growth to ensure that commercial real estate loans do not increase as a percentage of the loan portfolio. To achieve our desired results in this turbulent economic environment, we continually measure progress and refine our strategy. While we manage our organization for long-term value rather than short-term results, we also aim to increase profitability. In anticipation of continued headwinds, we took measured action in the third quarter to realign operating expenses in a way that will not compromise customer service or future growth. We will continue to exercise prudent expense management in order to generate profitable growth. AIMING FOR CONTINUED GROWTH Though many hold a pessimistic outlook for 2008, we are positioned well to meet the challenges ahead. While we expect credit quality to continue to weaken, we are confident in our consistent underwriting standards and credit monitoring processes. Our balance sheet and capital ratios are solid. In fact, our tangible capital ratio is in the top quartile of the largest U.S. banks. Our recent acquisitions and investments in branching offer many opportunities to enhance fee revenue as we introduce our complete set of financial products and services to new customers. Past investments in personnel and technology have also begun to generate increased revenue, particularly in wealth management. While it is true that the future cannot be predicted with any degree of certainty, our vision for the company’s future is clearly defined and our balanced strategies are thoughtfully planned. Our track record of 17 consecutive years of record earnings proves we can successfully execute our strategies through varying economic cycles. As always, we want to express our appreciation for those who make BOKF the leader that it is – our dedicated board members, our talented employees, our loyal customers and our diverse communities. We look forward to our continued partnerships. 3 BUILDING ON A SOLID FOUNDATION lenders specialize in several industry segments including While regional markets have fueled recent growth, BOKF commercial feedlots, food processing, agricultural supply is firmly rooted in our home state of Oklahoma. Ranked and grain merchandising and milling. number one in terms of deposit market share with 12% of Oklahoma’s retail deposit base, we are fulfilling our BOKF subsidiaries have a long successful history of serving mission statement by being the bank of first choice for the commercial real estate developers with needs ranging from consumers in our state. In addition, Bank of Oklahoma is $1 million to $20 million. In addition, we also finance quality the leader in commercial banking and mortgage origination. home builders and developers. Though many regional banks BOKF has mature branch networks in Tulsa and Oklahoma have relied on commercial real estate as the growth engine City as well as several community banking locations in the northern and eastern regions of the state. We are proud of our long history in the state, which we trace back to the oil boom days in 1910. for their loan portfolio, BOKF has maintained commercial real estate at less than 25% of the portfolio for the last five years. Our relationship managers listen to their customers’ needs and recommend individualized solutions. If customers’ We continue to be the largest Oklahoma-based energy requirements don’t match one of our standard products, we lender. At year end, our energy portfolio totaled $2 billion work to accommodate their unique needs. Throughout the or 16% of the total loan portfolio. The energy portfolio is organization, our agile and innovative approach allows us to be principally composed of oil and gas reserve-based loans in more responsive and flexible than our large bank competitors. the $3 million to $50 million range. Our commitment to this sector is demonstrated by our employment of engineers who To support the lending function, we designed a periodically perform on-site visits, verify reserves and prepare comprehensive group of cash management products, sensitivity analysis. international services and financial risk management (FRM) services. The FRM team assists our energy and BOKF has proficiency in several other areas of commercial agri-business customers with hedging services that provide lending. We understand the intensive capital requirements price protection to mitigate the price volatility associated facing the healthcare industry, and we can recommend with certain commodity derivatives. We also offer assistance products and services to help balance growth and expansion with interest rate and foreign exchange hedging. BOKF with capital support and risk tolerance. Our agri-business executes offsetting contracts with counterparties to minimize 4 the bank’s exposure to changes in commodity prices, BOKF’s subsidiary banks were deliberately placed in the interest rates or foreign exchange rates. Revenue from FRM region’s thriving metropolitan areas. We have a growing has grown at a compound annual rate of 61% over the last presence in three of the top 10 fastest growing U.S. cities – five years. Houston, Fort Worth and Phoenix. Our markets are economically diverse, representing a balance of Southwest, In Oklahoma, our most mature market, fee revenue Midwest and Rocky Mountain states. These robust markets represents 56% of total revenue. The largest components are deep and broad in both commercial and consumer include transaction card, trust and deposit service charges. opportunities. At year end, 51% of our loans and 45% of our In 2007, we launched several initiatives to increase the deposits were in markets outside Oklahoma. Our Bank of distribution of our fee services in the regional markets. Texas franchise leads the regional banks in size followed by We are already beginning to see results, particularly in the Colorado State Bank & Trust and Bank of Albuquerque with mortgage division, where originations outside Oklahoma average assets of $1.7 billion and $1.6 billion, respectively. increased 51%. ADDING DEPTH THROUGH ACqUISITIONS CHOOSING OUR TARGET MARkETS With recent acquisitions in two excellent markets, there Just over a decade ago, BOKF’s management team set their is ample opportunity to continue our growth trend. On sights on transforming the company from the leading bank May 31, we acquired Worth National Bank in Fort Worth, in Oklahoma to a leading regional financial services provider. Texas, known for the personalized service that continues In 1997, BOKF acquired two banks in the Dallas area with to be a hallmark of BOKF banks. Less than a month later, total assets valued at $367 million. With superior loan growth we acquired First United Bank in Colorado. Through these and additional acquisitions, average assets in Texas now two transactions, we added five attractive branches in exceed $4.3 billion. After our successful entry into Dallas, the Fort Worth area, 10 in the Denver area and one in we continued our disciplined expansion into other carefully Colorado Springs. These expanded branch networks provide selected markets in contiguous states. Today BOKF operates tremendous opportunities to attract new customers and to 189 banking offices in eight states. BOKF’s total assets and provide existing customers additional services. Despite the earnings per share have grown at a 10 year compound annual substantial competition in these large markets, BOKF’s style growth rate of 14% and 11%, respectively. of banking attracts market share. 5 Deliberate Differentiation 6 An important element of our acquisition strategy is to deliver top-tier performance by constructing diverse introducing our complete line of products and services while portfolios that utilize proven investment strategies and asset maintaining local leadership. By combining BOKF’s cash classes from around the globe. We monitor and adjust our management, loan and investment products with bright clients’ asset allocation in anticipation of global economic and talented relationship managers, we provide a superior and investment trends. customer experience. Our bankers know their markets, understand their customers’ financial needs and can quickly Like many banks, we have expertise in estate planning and create a customized solution that may include everything trust administration, but BOKF’s range of services goes from an equipment lease and a controlled disbursement deeper. A national leader in mineral management, our account to a line of credit and retirement plan services. professional oil and gas staff provides services to many While local market leaders manage client relationships banks, foundations, universities, and trusts throughout the and marketing efforts, we centralize non-customer contact United States. Being headquartered in Tulsa, once known as functions for efficiency. For example, Credit Administration the “oil capital of the world,” we have access to a deep pool ensures BOKF’s conservative underwriting standards are of specialized talent. This distinct advantage has contributed maintained in all markets. By maximizing efficiencies while to BOKF’s success in the oil and gas agency business. empowering local relationship officers, we are able to BOKF is also a leader in trust property management, provide our customers with prompt personalized service at overseeing farm and ranch grazing acreage in addition to competitive prices. residential and commercial properties. SERvING CUSTOMERS’ CHANGING NEEDS BOSC, Inc., a subsidiary of BOKF, serves the financial BOKF’s unique approach to customer service is designed needs of individuals, corporations, government agencies, to assist our customers in achieving their financial goals foundations, municipalities and institutional clients. Our throughout their life. We provide numerous options for commitment to service and strong emphasis on long-term managing, borrowing and investing money. Our free relationships has been a successful formula for growth. checking strategy attracts many customers and our Brokerage and trading revenue increased $9 million or 17% personalized service leads them to deeper relationships. over 2006. As an institutional and public finance firm, BOSC, Our proactive sales approach includes inquiring about Inc. has emerged as one of the leading investment banking customer needs and providing information regarding firms in the Southwest. promotions or new products during customer interactions. To ensure BOKF’s high service standards are met, consumer AIMING FOR DIFFERENTIATION bankers receive on-going training and coaching. Our quality BOKF possesses a number of unique strengths that assurance program includes random branch visits as well differentiate us from our peers. BOKF’s greatest financial as visits from mystery shoppers. Whether our customers are strength is our strong non-interest income stream, which buying their first car or establishing a college fund for their accounted for 42% of total revenue in 2007. In addition grandchildren, we can find solutions for their needs. to the typical bank services, we offer a number of fiduciary services. Our $36 billion trust division generated more The growth and transition of wealth in our markets have than $78 million or 8% of total revenue. BOKF also enjoys created a steady demand for BOKF’s Wealth Management strong returns from TransFund, BOKF’s ATM and debit card services, which includes private banking, trust and network. In 2007, transaction card revenue grew nearly investment services. Assets under management totaled $12 million or 15%, and it represents 10% of total revenue. $36 billion at year end, an increase of 14% from 2006. We TransFund delivers electronic funds transfer products and expect the growth to continue due to additional investments services to banks and credit unions throughout the United in key talent in a number of our regional markets including States. TransFund’s ATM network is the eighth largest in Phoenix, Houston and Kansas City. BOKF’s investment the nation with 1,822 ATMs. In 2007, TransFund processed philosophy involves gaining a clear understanding of our more than 240 million debit card transactions, an increase of clients’ long- and short-term objectives, their financial over 20% over 2006. situation and their risk tolerance. Our client advisors aim BOK FINANCIAL CORP 2007 ANNUAL REPORT 7 Though revenue from the mortgage division is volatile, we maintain a strong combined reserve for credit losses, BOKF values the business for several reasons. By servicing increasing our provision as necessary for growth and other the conventional and government-sponsored prime mortgage changes in the loan portfolio. Our increasing regional loans that we originate, we have a competitive advantage. diversity mitigates our exposure to credit risk associated with We can assure our customers the same high level of service local economies. and also introduce them to attractive solutions for their other financial needs. In addition, the mortgage business After enjoying historic lows for more than two years, tends to thrive when interest rates are low and other lines of nonperforming assets have returned to more normal levels. business are generating less revenue. With new leadership At year end, our nonperforming assets totaled $104 million, in production, mortgage loans originated outside Oklahoma including $18.6 million that is guaranteed by government increased from 32% of total originations in 2006 to 39% in agencies or covered by a purchase escrow. In recognition of 2007. To further encourage regional development, we re- the current environment, we increased our combined reserve branded our regional mortgage business lines, aligning them for loan losses to 1.24% of outstanding loans. with the regional banks. BOKF’s employees and innovative culture also set it apart. While many banks have been affected by weakening credit Employees are challenged to improve processes, products quality, BOKF’s loan losses have increased only moderately, and services. New thoughts and ideas are encouraged and less than our peers’. Net charge-offs increased six basis and appreciated. Attracting and retaining top quality talent points from 2006, compared to our peer median’s increase is one of BOKF’s core objectives. BOKF’s executive of 14 basis points. The peer group consists of 26 publicly committee is comprised of highly experienced individuals. traded U.S. bank holding companies, 13 immediately smaller One third of the members have been with the organization and 13 immediately larger than BOKF at December 31, more than 20 years. Several others have joined in the last 2007. Our credit metrics reflect BOKF’s refusal to sacrifice five years, coming from senior positions at large national loan quality for growth as well as the strength of our strategy. banks. Additionally, BOKF would not have achieved its BOKF maintains consistent underwriting standards in all growth targets without the dedication and loyalty of its markets throughout all economic cycles. Furthermore, 4,200 employees. 8 CONTRIBUTING TO OUR COMMUNITIES This requires dedication to hiring, developing and retaining We are proud of the many contributions BOKF and its top talent, creating innovative products and services and employees make to support the communities we serve. improving work processes and customer service. BOKF In 2007, BOKF, its employees and the BOKF Foundation achieved 17 consecutive years of record earnings through donated more than $4.4 million to charitable organizations, careful execution of strategies. We have high expectations which support health and human services, education and for 2008, despite likely headwinds including margin economic development. Financial gifts are one of many pressure, fierce competition and credit quality returning to ways BOKF and its employees contribute to the well being more historic levels. of their communities. While the foundational elements of our strategies will This past year our employees donated more than 38,000 continue in the coming year, there will be some minor hours of community service to support community changes. The pace of branch expansion will slow as we revitalization projects, youth programs, financial education integrate new branches from recent acquisitions. We will programs and the arts. Employee committees in each market continue to increase fee revenue in the regional banks while encourage volunteerism by organizing and publicizing controlling the related expense growth. We have specifically opportunities throughout the year for employees to make a challenged each line of business to improve profitability. difference in their community. Among other activities, our As always, we will seek quality loan growth and continue to employees read books and write letters to elementary school uphold our conservative underwriting standards. children, mentor and teach financial literacy to youth and collect food, books and toys for families in need. Staying focused on the target, we will continue to create SETTING FUTURE TARGETS shareholder value. We will execute our carefully planned strategies with precision, confident that through our Though BOKF’s strategies are constantly adjusting to successful past we have found the key to a successful future. changes in the economy, customer behavior and technology, our basic tenets are constant. We want to make BOKF the premier financial services provider in each of our markets. 9 BOk Financial Corporation Board of Directors Gregory S. Allen 1 President & CEO Advance Food Co., Inc. C. Fred Ball, Jr. 2 Chairman & CEO Bank of Texas, N.A. Sharon J. Bell 1 Managing Partner Rogers & Bell Peter C. Boylan, III 1 CEO Boylan Partners, LLC Chester Cadieux, III 1 President & CEO QuikTrip Corporation Joseph W. Craft, III President & CEO Alliance Resource Partners William E. Durrett Senior Chairman American Fidelity Corp. E. Carey Joullian, Iv 1 President & CEO Mustang Fuel Corporation George B. kaiser 1 Chairman BOK Financial Corporation and Bank of Oklahoma, N.A. Judith Z. kishner 1 Manager Zarrow Family Office, L.L.C. Thomas L. kivisto 1 President & CEO SemGroup, LP Robert J. LaFortune Personal Investments Stanley A. Lybarger 1,2 President & CEO BOK Financial Corporation and Bank of Oklahoma, N.A. Steven J. Malcolm 1 Chairman, President & CEO The Williams Companies, Inc. David F. Griffin 1 President & General Manager Griffin Communications, L.L.C. Paula Marshall 1 CEO Bama Companies v. Burns Hargis 1 Vice Chairman BOK Financial Corporation and Bank of Oklahoma, N.A. 10 1 Director of BOK Financial Corporation and Bank of Oklahoma, N.A. 2 Director of BOK Financial Corporation and Bank of Texas, N.A. Board of Directors Bank of Albuquerque Adelmo Archuleta Owner, Professional Engineer Molzen-Corbin & Associates Suzanne Barker-kalangis, Esq. Executive Director Thornburg Charitable Foundation Steven G. Bradshaw Senior Executive Vice President BOK Financial Corporation Charles E. Cotter Executive Vice President BOK Financial Corporation Rudy A. Davalos Chairman of the Executive Board New Mexico Bowl Steven E. Nell Executive Vice President & CFO BOK Financial Corporation Don T. Parker Executive Vice President BOK Financial Corporation Bank of kansas City Peter H. Arendt Senior Vice President Bank of Oklahoma, N.A. Donald O. Borgman Retired Albert W. Niemi, Jr. Dean, Cox School of Business Southern Methodist University Don T. Parker Executive Vice President BOK Financial Corporation W. Jeffrey Pickryl Senior Executive Vice President BOK Financial Corporation Steven G. Bradshaw Senior Executive Vice President BOK Financial Corporation W. Jeffrey Pickryl Senior Executive Vice President BOK Financial Corporation David A. Ralston Chairman & CEO Bank of Arizona, N.A. Scott T. Schaefer President Bank of Arizona, N.A. Lorelei M. Dean President Dean Machinery Robert W. Semple Chairman & CEO Bank of Texas, N.A. - Ft. Worth Daniel H. Ellinor Senior Executive Vice President BOK Financial Corporation Robert B. Trainer Chief Financial Officer Gyrodata, Inc. William E. Garcia Retired Senior Manager, Public Affairs Intel Corporation Dr. Anthony T. Yeung Surgeon Arizona Institute for Minimally Invasive Spine Care Robert M. Goodman Retired, Vice Chairman Bank of Albuquerque, N.A. Thomas D. Growney President Tom Growney Equipment, Inc. Larry F. Levy Senior Vice President Bank of Albuquerque, N.A. Bank of Arkansas John W. Anderson Senior Vice President Bank of Oklahoma, N.A. Mark Bethell COO Northwest Medical Center of Benton County W. Jeffrey Pickryl Senior Executive Vice President BOK Financial Corporation Jett C. Cato Executive Vice President & COO Bank of Arkansas, N.A. Douglas L. Ruhl Chairman & CEO Bank of Albuquerque, N.A. Mark E. Sauters Senior Vice President Bank of Albuquerque, N.A. Michael D. Sivage Chief Executive Officer STH Investments, Inc. Paul A. Sowards President Bank of Albuquerque, N.A. Jennifer S. Thomas Executive Vice President Bank of Albuquerque, N.A. James F. Ulrich Vice Chairman Bank of Albuquerque, N.A. Dale W. Updegrove Senior Vice President Bank of Albuquerque, N.A. Bank of Arizona Charles E. Cotter Executive Vice President BOK Financial Corporation Scott P. LeMarr President Palo Cristi Investments Jeff D. Cude Senior Vice President Bank of Arkansas, N.A. Lawrence L. Daniel Executive Vice President Bank of Arkansas, N.A. Jeffrey R. Dunn Chairman, President & CEO Bank of Arkansas, N.A. Daniel H. Ellinor Senior Executive Vice President BOK Financial Corporation George C. Faucette, Jr. Owner Coldwell Banker Faucette Real Estate Company Jeannie Fleeman Owner Dynamic Enterprises and Dynamic Development Mark W. Funke President Bank of Oklahoma, N.A. Oklahoma City Dr. Stephen Lee Goss Physician Executive Mercy Health Systems of Northwest Arkansas Charles Todd Wisdom Audit Partner Tullius Taylor Sartain & Sartain LLP Scott S. Heady Senior Vice President Bank of Kansas City, N.A. Timothy A. Johnson Director of Finance Garmin International Marc C. Maun Chairman & CEO Bank of Kansas City, N.A. Steven E. Nell Executive Vice President & CFO BOK Financial Corporation Bank of Texas C. Thomas Abbott Vice Chairman Bank of Texas, N.A. - Dallas C. Fred Ball, Jr. Chairman & CEO Bank of Texas, N.A. - Dallas Tom E. Turner Retired Chairman Bank of Texas, N.A. - Dallas Lissa Walls vahldiek Executive Southern Newspapers, Inc. John C. vogt Personal Investments Randall L. Walker Chairman Bank of Texas, N.A. - Houston Colorado State Bank and Trust Aaron k. Azari Vice Chairman CSBT George P. Caulkins, III Principal Greendeck Capital Steven G. Bradshaw Senior Executive Vice President BOK Financial Corporation Ralph W. Christie, Jr. Chairman, President & CEO Merrick & Company Charles E. Cotter Executive Vice President BOK Financial Corporation H. Lynn Craft President & CEO Baptist Foundation of Texas Charles W. Eisemann Personal Investments Douglas D. Hawthorne President & CEO Texas Health Resources Joel H. Farkas Chairman JF Companies Thomas M. Foncannon Senior Vice President Bank of Oklahoma, N.A. Richard H. Lewis Personal Investments kirk MacDonald CEO Interactive Marketing & Innovation Bill D. Henry Chairman & CEO McQuery Henry Bowles Troy, LLP W. Jeffrey Pickryl Senior Executive Vice President BOK Financial Corporation James M. Johnston Vice Chairman Bank of Texas, N.A. - Dallas Stanley A. Lybarger President & CEO BOK Financial Corporation William J. Sullivan President CSBT Gregory k. Symons Chairman & CEO CSBT 11 Piper Jaffray RBC Dain Rauscher Sandler O’Neill & Partners Stephens Inc. Stifel Nicolaus and Company, Incorporated SunTrust Capital Markets Inc Susquehanna Financial Group LLP Timber Hill Inc. UBS Securities LLC Wachovia Securities Transfer Agent, Registrar and Dividend Disbursing Agent Computershare Investor Services, LLC P.O. Box 43078 Providence, RI 02940 (800) 568-3476 www.computershare.com Copies of BOK Financial Corporation’s Annual Report to Shareholders, Quarterly Reports and Form 10-K to the Securities and Exchange Commission are available without charge upon written request. Analysts, shareholders and other investors seeking financial information about BOK Financial Corporation are invited to contact Stacy C. Kymes, Senior Vice President, (918) 588-6752. Information about BOK Financial Corporation is also readily available at: www.bokf.com Registered shareholders of BOK Financial Corporation stock may reinvest dividends and purchase additional shares through the Computershare Investment Plan. Certain restrictions apply. Shareholders may obtain a plan brochure by writing to Computershare, c/o CIP for BOK Financial, P.O. Box 43078, Providence, RI 02940, by calling 1-800-568-3476 or visiting www.computershare.com. Shareholder Information Corporate Headquarters: Bank of Oklahoma Tower P.O. Box 2300 Tulsa, Oklahoma 74192 (918) 588-6000 Independent Auditors: Ernst & Young LLP 1700 One Williams Center Tulsa, Oklahoma 74172 (918) 560-3600 Legal Counsel: Frederic Dorwart Lawyers Old City Hall 124 E. Fourth St. Tulsa, Oklahoma 74103 (918) 583-9922 Common Shares: Traded NASDAQ National Market NASDAQ Symbol: BOKF Number of common shareholders of record at December 31, 2007: 1,061 Market Makers: Archipelago Stock Exchange Automated Trading Desk Bear Stearns & Co. Inc. BMO Capital Markets U.S. Cantor, Fitzgerald & Co. Citadel Derivatives Group LLC Citigroup Global Markets Inc. Domestic Securities, Inc. E*Trade Capital Markets LLC Fox-Pitt, Kelton Friedman, Billings, Ramsey & Co., Inc. Goldman Sachs Research Howe Barnes Investments Hudson Securities, Inc. Jefferies & Company, Inc. Keefe, Bruyette & Woods, Inc. Knight Equity Markets, L.P. Lehman Brothers Equity Research Merrill Lynch Morgan Stanley Nasdaq Execution Services LLC National Stock Exchange 12 www.bokf.com 

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