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The financial service environment in BOK Financial’s primary markets is highly competitive due to a large number of commercial banks, thrifts, credit unions and brokerage firms. Additionally, many customers have access to national - and regional financial institutions for many products and services. Management expects that BOK. Financial will continue to be able to successfully compete with these 

## Other Operating Revenue 

Other operating revenue increased $60.4 million or 30% compared to 2000, including a $24.5 million increase from gains on financial instruments. Fees and commissions continue to represent a significant portion of BOK Financial’s total revenue at 40% during 2001. Included in 2001 were fees and commissions of $2.8 million from the CNBT. acquisition, including service charges on deposit accounts of $2.3 million. All major categories of fees and commissions increased over the same period in 2000. Most notably, mortgage banking - revenue increased $13.0 million or 35% due to improved conditions for sales of loans into the secondary market. Service charges and fees on deposit accounts grew $8.4 million or 19% over 2000 due to growth in nonsuüfficient fund charges and growth of treasury services revenue. When interest rates fall, more corporate customers pay for banking services through treasury services fees instead of maintaining compensating deposit balances. Brokerage and trading grew 36% to $21.8 million during 2001.’ This growth was driven by diversification into 

financial institutions by delivering the loan and deposit products and other financial services traditionally associated with a large bank with the responsiveness of a smaller, community bank. 

corporate bonds, favorable reception to the product mix in our newer markets and continued expansion in revenue from traditional brokerage products. Growth in ‘transaction card revenue of $5.7 million or 15% was due to growth in merchant fees, which are directly related to the level of consumer spending and growth in debit card fees that continue to become more popular with consumers. Trust fees grew 3% despite declining stock market values on which many fees are based. 

Securities and derivatives net gains totaled $26.6 million for 2001. These gains included $17.9 million from the general securities portfolio, gains of $12.8 million ona securities portfolio that management has designated as an economic hedge against the risk of loss on mortgage servicing rights, and losses of $4.1 million from fair value adjustments of derivative instruments. Additional discussion about the mortgage servicing rights and related hedge portfolio and BOK Financial’s use of derivative instruments is located in the Market Risk section of this report. 

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Other operating revenue for the fourth quarter of 2001 totaled $55.3 million compared to $54.9 million for the fourth quarter of 2000. Included in the fourth quarter 2001 were $676 thousand of fees and commissions from the CNBT acquisition, including service charges on deposit accounts of $594 thousand. The fourth quarter of 2001 included securities losses of $3.8 million compared to gains of $3.3 million in the fourth quarter of 2000. Net securities losses from the portion of the available for sale portfolio, which serves as an economic hedge of mortgage servicing rights, totaled $11.1 million. Net securities gains on the remaining available for sale portfolio totaled $7.3 million. Changes in the components of other revenue during the fourth quarter were consistent with the year to date changes. Service charges and fees on deposit accounts increased $2.8 million. Mortgage banking revenue increased $4.8 million. 

Other operating revenue in'2000 increased $10.5 million or 6% compared to 1999. Fees and commissions, which are included in other operating revenue, increased $13.1 million or 7% while gains on asset sales decreased $2.6 million. Revenue generated by card-based transactions, such as the TransFund ATM network, bankcards and related merchant discounts, increased by 19% to $38.8 million. These increases are generally due to a higher volume of transactions processed in 2000. Other revenue included $4.5 million of private placement and underwriting fees. 

Management expects continued growth in other operating revenue. However, increased competition, market saturation and the level of economic activity could affect the future rate of increase. Additionally, BOK Financial’s ability to generate fee revenue is affected by interest rates, values in the equity market and consumer spending, all of which can be volatile. 

