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Commitments and Contingent Liabilities | 9 Months Ended
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Sep. 30, 2018
Commitments and Contingencies Disclosure [Abstract] |
Commitments and Contingent Liabilities [Text Block] | Commitments and Contingent Liabilities Litigation Contingencies As a member of Visa, BOK Financial is obligated for a proportionate share of certain covered litigation losses incurred by Visa under a retrospective responsibility plan. A contingent liability was recognized for the Company’s share of Visa’s covered litigation liabilities. Visa funded an escrow account to cover litigation claims, including covered litigation losses under the retrospective responsibility plan, with proceeds from its initial public offering in 2008 and from available cash. BOK Financial currently owns 252,233 Visa Class B shares which are convertible into 411,089 shares of Visa Class A shares after the final settlement of all covered litigation. Class B shares may be diluted in the future if the escrow fund is not adequate to cover future covered litigation costs. Therefore, no value has been currently assigned to the Class B shares and no value may be assigned until the Class B shares are converted into a known number of Class A shares. On June 24, 2015, the Bank received a complaint alleging that an employee had colluded with a bond issuer and an individual in misusing revenues pledged to municipal bonds for which the Bank served as trustee under the bond indenture. The Company conducted an investigation and concluded that employees in one of its Corporate Trust offices had, with respect to a single group of affiliated bond issuances, violated Company policies and procedures by waiving financial covenants, granting forbearances and accepting without disclosure to the bondholders, debt service payments from sources other than pledged revenues. The relationship manager was terminated. The Company reported the circumstances to, and cooperated with an investigation by, the Securities and Exchange Commission ("SEC"). On December 28, 2015, in an action brought by the SEC, the United States District Court for the District of New Jersey entered a judgment against the principals involved in issuing the bonds, precluding the principals from denying the alleged violations of the federal securities laws and requiring the principals to pay all outstanding principal, accrued interest, and other amounts required under the bond documents (now estimated to be approximately $40 million, less the value of the facilities securing repayment of the bonds), subject to oversight by a court appointed monitor. On September 7, 2016, the Bank agreed, and the SEC entered, a consent order finding that the Bank had violated Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act and requiring the Bank to disgorge $1,067,721 of fees and pay a civil penalty of $600,000. The Bank has disgorged the fees and paid the penalty. On August 26, 2016, the Bank was sued in the United States District Court for New Jersey by two bondholders in a putative class action on behalf of all holders of the bonds alleging the Bank participated in the fraudulent sale of securities by the principals. On September 14, 2016, the Bank was sued in the District Court of Tulsa County, Oklahoma by 19 bondholders alleging the Bank participated in the fraudulent sale of securities by the principals. Two separate small groups of bondholders have filed arbitration complaints with the Financial Institutions Regulatory Association respecting the bonds and other bonds for which the Bank served as indenture trustee. Management has been advised by counsel that the Bank has valid defenses to the claims. On September 15, 2017, the principal of the bond issuances filed for protection under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Northern District of Georgia. The principal subsequently sought and obtained an order dismissing the Chapter 11 proceeding. The obligation of the principal to pay all principal and interest on the bonds is non-dischargeable in bankruptcy. A hearing on a motion by the principal to extend the time within which to perform the Court ordered payment plan until December 31, 2019 and a motion by Court Monitor compelling the principal to perform his obligation to maintain the minimum segregated account balance before the Federal Judge in New Jersey is scheduled for October 26, 2018. We expect that the extension will be granted, but there is no assurance that it will be. The Bank continues to expect the Court ordered payment plan will result in the payment of the bonds by the principals. Accordingly, no loss is probable at this time and no provision for loss has been made. If the payment plan does not result in payment of the bonds, a loss could become probable. A reasonable estimate cannot be made at this time though the amount could be material to the Company. On March 5, 2018, the Bank was sued in the Fulton, Georgia County District Court by the administratrix of a deceased resident who had sued for and obtained a judgment for wrongful death against one of the operators of a nursing home financed by one of the bonds which are the subject of the litigation discussed above. The judgment is alleged to total approximately $8 million in principal and interest at this time. Plaintiff alleges that BOKF, in its capacity as indenture trustee for the bonds, colluded with the borrower and others to defraud creditors of the nursing home by misleading the public about the solvency of the nursing home. Plaintiff alleges that this conduct has prevented her from collecting on her judgment. The Bank is advised by counsel that the Bank has valid defenses to the plaintiffs’ claims and no loss is probable. On March 14, 2017, the Bank was sued in the United States District Court for the Northern District of Oklahoma by bondholders in a second putative class action representing a different set of municipal securities. The bondholders in this second action allege two individuals purchased facilities from the principals who are the subject of the SEC New Jersey proceedings by means of the fraudulent sale of $60 million of municipal securities for which the Bank also served as indenture trustee. The bondholders allege the Bank failed to disclose that the seller of the purchased facilities had engaged in the conduct complained of in the New Jersey action. The Bank properly performed all duties as indenture trustee of this second set of municipal securities, timely commenced proceedings against the issuer of the securities when default occurred, is cooperating with the SEC in actions against the two principals, is not a target of the SEC proceedings, and has been advised by counsel that the Bank has valid defenses to the claims of these bondholders. Management is advised by counsel that a loss is not probable and that the loss, if any, cannot be reasonably estimated. On March 7, 2017, a plaintiff filed a putative class action in the United States District Court for the Northern District of Texas alleging an extended overdraft fee charged by the Bank is interest and exceeds permitted rates. This action makes the same allegations as a putative class action that was dismissed by the United States District Court for the Northern District of Oklahoma on October 19, 2015. On August 22, 2018, a plaintiff filed a second putative class action in the United States District Court for New Mexico making the same allegations as the Texas action. On September 18, 2018, the District Court dismissed the Texas action. Management is advised by counsel that a loss is not probable in the New Mexico action or the Texas action and that the loss, if any, cannot be reasonably estimated. On July 6, 2018, a plaintiff served a petition in a putative class action in the Oklahoma District Court for Tulsa County Oklahoma alleging BOKF NA breached its Demand Deposit Agreements by charging overdraft and not sufficient funds fees to deposit accounts on the day of the transaction triggering the fee and by the bank's debit hold process causing overdraft fees. Management is advised by counsel that a loss is not probable and that the loss, if any, cannot be reasonably estimated. In the ordinary course of business, BOK Financial and its subsidiaries are subject to legal actions and complaints. Management believes, based upon the opinion of counsel, that the actions and liability or loss, if any, resulting from the final outcomes of the proceedings, will not have a material effect on the Company’s financial condition, results of operations or cash flows. Alternative Investment Commitments The Company sponsors two private equity funds and invests in several tax credit entities and other funds as permitted by banking regulations. Consolidation of these investments is based on the variable interest model determined by the nature of the entity. Variable interest entities are generally defined as entities that either do not have sufficient equity to finance their activities without support from other parties or whose equity investors lack a controlling financial interest. Variable interest entities are consolidated based on the determination that the Company is the primary beneficiary including the power to direct the activities that most significantly impact the variable interest's economic performance and the obligation to absorb losses of the variable interest or the right to receive benefits of the variable interest that could be significant to the variable interest. BOKF Equity, LLC, an indirect wholly-owned subsidiary, is the general partner of two consolidated private equity funds (“the Funds”). The Funds provide alternative investment opportunities to certain customers, some of which are related parties, through unaffiliated limited partnerships. These unaffiliated limited partnerships generally invest in distressed assets, asset buy-outs or venture capital companies. As general partner, BOKF Equity, LLC has the power to direct activities that most significantly affect the Funds' performance and contingent obligations to make additional investments totaling $3.4 million at September 30, 2018. Substantially all of the obligations are offset by limited partner commitments. The Company does not accrue its contingent liability to fund investments. The Volcker Rule in Title VI of the Dodd-Frank Act will limit both the amount and structure of these types of investments. Consolidated tax credit investment entities represent the Company's interest in entities earning federal new market tax credits related to qualifying loans. The Company has the power to direct the activities that most significantly impact the variable interest's economic performance of the entity including being the primary beneficiary of or the obligation to absorb losses of the variable interest that could be significant to the variable interest. Other consolidated alternative investments include entities held under merchant banking authority. While the Company owns a majority of the voting interest in these entities, its ability to manage daily operations is limited by applicable banking regulations. Consolidated other assets includes total tangible assets, identifiable intangible assets and goodwill held by these entities. The Company also has interests in various unrelated alternative investments generally consisting of unconsolidated limited partnership interests in or loans to entities for which investment return is primarily in the form of tax credits or that invest in distressed real estate loans and properties, energy development, venture capital and other activities. The Company is prohibited by banking regulations from controlling or actively managing the activities of these investments and the Company's maximum exposure to loss is restricted to its investment balance. The Company's obligation to fund alternative investments is included in Other liabilities in the Consolidated Balance Sheets. A summary of consolidated and unconsolidated alternative investments as of September 30, 2018, December 31, 2017 and September 30, 2017 is as follows (in thousands):
|  | September 30, 2018
|  | Loans |  | Other assets |  | Other liabilities |  | Other borrowings |  | Non-controlling interests
Consolidated: |  |  |  |  |  |  |  |  |  |
Private equity funds |  | $ | — |  |  | $ | 11,535 |  |  | $ | — |  |  | $ | — |  |  | $ | 8,693 |
Tax credit entities |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Other |  | — |  |  | 17,145 |  |  | 1,358 |  |  | — |  |  | 2,035 |
Total consolidated |  | $ | — |  |  | $ | 28,680 |  |  | $ | 1,358 |  |  | $ | — |  |  | $ | 10,728 |
Unconsolidated: |  |  |  |  |  |  |  |  |  |
Tax credit entities |  | $ | 62,188 |  |  | $ | 158,429 |  |  | $ | 54,460 |  |  | $ | — |  |  | $ | — |
Other |  | — |  |  | 47,906 |  |  | 16,200 |  |  | — |  |  | — |
Total unconsolidated |  | $ | 62,188 |  |  | $ | 206,335 |  |  | $ | 70,660 |  |  | $ | — |  |  | $ | — |
|  | December 31, 2017
|  | Loans |  | Other assets |  | Other liabilities |  | Other borrowings |  | Non-controlling interests
Consolidated: |  |  |  |  |  |  |  |  |  |
Private equity funds |  | $ | — |  |  | $ | 14,783 |  |  | $ | — |  |  | $ | — |  |  | $ | 11,927 |
Tax credit entities |  | 10,000 |  |  | 10,964 |  |  | — |  |  | 10,964 |  |  | 10,000 |
Other |  | — |  |  | 1,040 |  |  | — |  |  | — |  |  | 1,040 |
Total consolidated |  | $ | 10,000 |  |  | $ | 26,787 |  |  | $ | — |  |  | $ | 10,964 |  |  | $ | 22,967 |
Unconsolidated: |  |  |  |  |  |  |  |  |  |
Tax credit entities |  | $ | 52,852 |  |  | $ | 153,506 |  |  | $ | 47,859 |  |  | $ | — |  |  | $ | — |
Other |  | — |  |  | 38,397 |  |  | 22,968 |  |  | — |  |  | — |
Total unconsolidated |  | $ | 52,852 |  |  | $ | 191,903 |  |  | $ | 70,827 |  |  | $ | — |  |  | $ | — |
|  | September 30, 2017
|  | Loans |  | Other assets |  | Other liabilities |  | Other borrowings |  | Non-controlling interests
Consolidated: |  |  |  |  |  |  |  |  |  |
Private equity funds |  | $ | — |  |  | $ | 15,621 |  |  | $ | — |  |  | $ | — |  |  | $ | 12,806 |
Tax credit entities |  | 10,000 |  |  | 11,119 |  |  | — |  |  | 10,963 |  |  | 10,000 |
Other |  | — |  |  | 15,618 |  |  | 1,588 |  |  | 3,104 |  |  | 2,819 |
Total consolidated |  | $ | 10,000 |  |  | $ | 42,358 |  |  | $ | 1,588 |  |  | $ | 14,067 |  |  | $ | 25,625 |
Unconsolidated: |  |  |  |  |  |  |  |  |  |
Tax credit entities |  | $ | 65,247 |  |  | $ | 145,479 |  |  | $ | 61,364 |  |  | $ | — |  |  | $ | — |
Other |  | — |  |  | 32,462 |  |  | 13,657 |  |  | — |  |  | — |
Total unconsolidated |  | $ | 65,247 |  |  | $ | 177,941 |  |  | $ | 75,021 |  |  | $ | — |  |  | $ | — |

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