content_image/106057.jpg content_image/106056.jpg content_image/106054.jpg content_image/106055.jpg
## Reserve for Loan Loss 

The activity in the reserve for loan losses is summarized.as follows (in thousands): 

<img src='content_image/106057.jpg'>

## Loan Securitization 

During 1999, BOK Financial sold approximately $100 million of automobile loans and retained the right to service the loans and a residual interest in certain excess cash flows generated by the loans. The proceeds of the sale were provided by the issuance of debt certificates that totaled $96 million by an independent special purpose entity. A spread account was maintained by a trustee to hold excess cash received. Funds were released from the spread account to BOK Financial as certain criteria were met. At December 31, 2000, the carrying values of the servicing rights asset and residual interest were $143 thousand and $5.2 million, respectively. The carrying value of the residual interest would have been reduced to $5.0 million assuming a 250 basis point increase in the discount rate and a 25% increase in the assumed default rate on the underlying loans. During 2001, BOK Financial repurchased the outstanding principal balance of these loans for $9.0 million. The debt certificates were redeemed and the servicing rights and residual interest were terminated. 

## (6) Premises and Equipment 

Premises and equipment at December 31 are summarized as follows (in thousands): 

<img src='content_image/106056.jpg'>

## Impaired Loans 

Investments in loans considered to be impaired under FAS 114 were as follows (in thousands): 

<img src='content_image/106054.jpg'>

Interest income recognized on impaired loans during 2001, 2000 and 1999 was not significant. 

Significant information and assumptions used to determine the value of these assets at December 31, 2000 were: 

<img src='content_image/106055.jpg'>

Depreciation expense of premises was $21.0 million, $17.3 million and $13.3 million for the years ended December 31, 2001, 2000 and 1999, respectively: 

