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While BOK Financial continued to increase geographic diversification through expansion into Texas and New Mexico, geographic concentration subjects the loan portfolio 

to the general economic conditions in Oklahoma. Table 14 reflects the distribution of the major loan categories among BOK Financial’s principal market areas. 

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## Other Derivatives with Credit Risk 

During 2001 BOK Financial developed a program that permits its energy-producing customers to hedge against price fluctuations through energy option and swap contracts. These contracts are executed between BOK and its customers. Offsetting contracts are executed between BOk and selected energy dealers to minimize the risk of changes in energy prices. The dealer contracts are identical to the customer contracts, except for a fixed pricing spread paid to BOk as compensation for administrative costs, credit risk and profit. 

This program creates credit risk for potential amounts December 31, 2001, other assets included $28 million and due to BOk from the customers and dealers. Customer credit —_ other liabilities included $29 million of energy contracts. risk is monitored through existing lending policies and procedures. The value of energy production is evaluated Montreal, $10.6 million; Goldman Sachs, $5.7 million; across a range of prices to determine a maximum exposure BOk is willing to have individually to any customer or collectively to all energy producers. Dealer credit risk is of the counterparties may result in BOK Financial monitored through existing policies and procedures used to evaluate counterparty risk. This evaluation considers all relationships between BOK Financial and each 

counterparty. Individual limits are established by management and approved by the Risk Oversight Committee of the Board of Directors. Margin collateral is required if the exposure to a counterparty exceeds established limits. BOK Financial had no energy contracts with Enron Corp. 

BOK Financial carries the energy contracts at fair value in other assets and other liabilities. Changes in fair value are recorded in income. Closing prices on the New York Mercantile Exchange are used to determine fair value. At The primary counterparties on asset contracts were Bank of Morgan Stanley, $5.6 million and J. P. Morgan Chase, $5.4 million. A deterioration in the credit standing of one or more recognizing a loss as the fair value of the affected contracts may no longer move in tandem with the offsetting contracts. 

