 TULSA, Okla., July 22, 2020 GLOBE NEWSWIRE -- BOK Financial NASDAQ: BOKF today reported net earnings applicable to common shareholders for the second quarter of 2020 of 65 million, or 0.92 per diluted common share.The second quarter, unlike any in recent memory, demonstrated the effectiveness of our diversified revenue model, said Steven G. Bradshaw, president and chief executive officer. Record quarters from both our Wealth Management and Mortgage businesses added more than 150 million to fee revenue this quarter, eclipsing our pre-provision net revenue from the same quarter a year ago. In fact, this quarter generated the highest level of pre-provision net revenue in the history of our company, even after normalizing for the impact of the Paycheck Protection Program. Considering the economic environment we find ourselves in today, this is truly a remarkable outcome.Bradshaw continued, With more than 40 percent of our companys revenues derived from a host of fee-based businesses, we have the proven ability to generate positive outcomes through all parts of the economic cycle. In this time of margin compression and credit concerns, financial institutions like BOK Financial demonstrate the real power of a diversified business model and sound underwriting methods. Net income was 64.7 million or 0.92 per diluted share for the second quarter of 2020 and 62.1 million or 0.88 per diluted share for the first quarter of 2020. Pre-provision net revenue was 215.8 million for the second quarter of 2020 compared to 173.0 million for the prior quarter. The second quarter of 2020 included a pre-tax provision for expected credit losses of 135.3 million compared to 93.8 million in the prior quarter. Net interest revenue totaled 278.1 million, an increase of 16.7 million, largely due to the addition of loans related to the Small Business Administrations SBA Paycheck Protection Program PPP that began on April 3, 2020. Net interest margin was 2.83 percent compared to 2.80 percent in the first quarter of 2020. Our ability to move deposit costs down, along with LIBOR remaining elevated early in the second quarter relative to recent Federal Reserve rate cuts and the strategic positioning of our balance sheet, has allowed us to combat much of the market pressure on our margin. Fees and commissions revenue totaled 213.7 million, an increase of 21.0 million. Low mortgage interest rates continued to drive increases in mortgage banking revenue of 16.8 million and related bond trading activity of 9.5 million over the first quarter of 2020. These increases were partially offset by a reduction in service charges, largely due to shelter in place impacts coupled with proactive waivers of fees that were extended as a courtesy to our customers during the COVID-19 pandemic. Operating expense was 295.4 million, an increase of 26.8 million. Personnel expense increased 20.1 million, including an 11.0 million increase in incentive compensation expense reflecting the growth in our trading activity. Non-personnel expense increased 6.7 million compared to the first quarter of 2020. Increases in mortgage banking costs and occupancy and equipment expense were partially offset by a decrease in business promotion expense. Changes in the fair value of mortgage servicing rights and related economic hedges provided 9.3 million during the second quarter of 2020. A 7.4 million increase in the fair value of securities and derivative contracts held as an economic hedge and 2.7 million of related net interest revenue, were partially offset by a 761 thousand decrease in the fair value of mortgage servicing rights. We have implemented programs to help our customers through this uncertain time. We are actively participating in programs initiated by the Coronavirus Aid, Relief and Economic Security Act CARES Act, including the SBAs PPP. Average loans for the second quarter increased 2.2 billion to 24.1 billion with 1.7 billion of those being PPP loans. Period-end loans increased 1.7 billion to 24.2 billion. Period-end PPP loans were 2.1 billion. We have also granted 1.2 billion in forbearance requests from customers as of June 30, including 704 million of commercial loans, 398 million in commercial real estate loans and 143 million in loans to individuals. The allowance for loan losses totaled 436 million or 1.80 percent of outstanding loans at June 30, 2020. The combined allowance for loan losses and accrual for off-balance sheet credit risk from unfunded loan commitments was 469 million or 1.94 percent of outstanding loans at June 30, 2020. Excluding PPP loans, the allowance for loan losses was 1.97 percent of outstanding loans and the combined allowance for loan losses and accrual for off-balance sheet credit risk from unfunded loan commitments was 2.12 percent. At March 31, 2020, the allowance for loan losses was 315 million or 1.40 percent of outstanding loans. The combined allowance for loan losses and accrual for off-balance sheet credit risk from unfunded loan commitments was 344 million or 1.53 percent of outstanding loans. Average deposits increased 4.5 billion to 32.7 billion and period-end deposits increased 4.6 billion to 33.9 billion. An estimated 2.7 billion of this growth was related to CARES Act funding, with the remainder due to growth from our broader customer base. The companys common equity Tier 1 capital ratio was 11.41 percent at June 30, 2020. In addition, the companys Tier 1 capital ratio was 11.41 percent, total capital ratio was 13.40 percent, and leverage ratio was 7.74 percent at June 30, 2020. At March 31, 2020, the companys common equity Tier 1 capital ratio was 10.98 percent, Tier 1 capital ratio was 10.98 percent, total capital ratio was 12.65 percent, and leverage ratio was 8.15 percent.Second Quarter 2020 Business Segment Highlights Commercial Banking contributed 81.0 million to net income, an increase of 6.0 million over the first quarter. While net interest revenue decreased 6.3 million, fees and commissions revenue increased 5.1 million. Customer reaction to the volatile price environment drove an increase of 4.4 million in customer hedging revenue this quarter. Other gains losses, net also increased 4.6 million, primarily related to an impairment of an alternative investment in the first quarter. Operating expense increased 2.2 million, largely due to incentive compensation. Consumer Banking contributed 31.9 million to net income, an increase of 9.0 million over the first quarter. Net interest revenue decreased 4.7 million; however, fees and commissions revenue increased 12.1 million. Mortgage banking revenue increased 16.8 million following another strong quarter for mortgage loan production. Low mortgage interest rates continue to increase volume, particularly around refinances, which is responsible for 71 percent of the volume in the second quarter. The large increase in refinance demand, which reduced industry-wide capacity, has led to the ability to increase margins. Gain on sale margin increased 159 basis points to 3.65 percent. This increase was partially offset by a decrease in service charges as we waived certain fees in the second quarter to help customers throughout this uncertain time. Changes in the fair value of mortgage servicing rights and related economic hedges provided 9.3 million during the second quarter of 2020. Operating expense increased 4.1 million, primarily due to an increase in mortgage banking costs. Wealth Management contributed 33.4 million to net income, an increase of 10.8 million over the first quarter. Net interest revenue increased 8.0 million and fees and commissions increased 8.9 million. Lower interest rates drove record increases in industry-wide mortgage loan production volume during the second quarter. We increased our trading pipeline to provide greater liquidity to the housing market. As a result, trading revenue increased 9.5 million. Trust fees and commissions decreased 3.2 million as we waived certain fees for our customers and market conditions led to reduction in trust revenue. Operating expense increased 2.4 million, primarily due to incentive compensation costs related to increased trading activity partially offset by lower business promotion expense.Net Interest Revenue Net interest revenue was 278.1 million for the second quarter of 2020, a 16.7 million increase compared to the first quarter of 2020. PPP loans added 13.6 million to net interest revenue in the second quarter.Average earning assets increased 1.9 billion compared to the first quarter of 2020. Average loan balances increased 2.2 billion, largely due to the influx of PPP loans. Available for sale securities increased 816 million as we have adjusted our balance sheet for the current rate environment. Fair value option securities, held as an economic hedge of the changes in fair value of our mortgage servicing rights, decreased 1.0 billion. In addition, receivables from unsettled securities sales, primarily related to our U.S. agency residential mortgage-backed trading operations, increased 1.6 billion. Growth in average earning assets and non-interest bearing receivables was largely funded by a 2.2 billion increase in interest-bearing deposits. Other borrowings decreased 3.0 billion, primarily due to a decrease in funds borrowed from the Federal Home Loan Bank, partially offset by an increase in PPP loans funded through the Federal Reserves PPP Liquidity Facility. Funds purchased and repurchase agreements increased 2.0 billion.Net interest margin was 2.83 percent compared to 2.80 percent in the previous quarter. 