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Other operating expenses for the fourth quarter of 2001 totaled $84.8 million compared to $79.3 million for the fourth quarter of 2000. The fourth quarter of 2001 included an $8.9 million reversal of previous provisions compared to a $2.9 million provision for impairment of mortgage servicing rights during 2000. Excluding the effects of this impairment charge, operating expenses for the fourth quarter of 2001 increased by 23% from 2000 due to reasons consistent with those discussed above. 

Other operating expense totaled $302.8 million for 2000 compared to $280.5 million in 1999, an increase of 8%. Personnel, net occupancy and equipment and data processing and communications comprised most of the increase. 

In 2000, personnel costs increased $10.2 million or 8% compared to 1999, Regular compensation (including 

## Income Taxes 

Income tax expense was $63.6 million, $47.6 million and $44.5 million for 2001, 2000 and 1999, respectively, representing 35%, 32% and 33%, respectively, of book taxable income. Tax expense currently payable totaled $74.2 million in 2001 compared to $38.4 million in 2000 and $43.8 million in 1999. 

The Internal Revenue Service is currently examining the carryback of $30.8 million of capital loss generated in 1999. Such loss was applied against capital gains generated in 1997 and 1998 resulting in a $9.8 million 

overtime and temporary assistance) and benefits increased $6.1 million or 6%. Average staffing on a full time equivalent ( "FTE ") basis increased by 77 employees or 3% while average compensation expense per FTE increased by 5%. Incentive compensation increased by $3.4 million or 20% compared to 1999 due to growth in revenue over pre- determined targets and growth in the number of business units covered by incentive plans. 

Net occupancy and equipment expense for 2000 increased $4.7 million or 15% compared to 1999. Equipment expense increased by $3.1 million due primarily to depreciation of computer equipment purchased in 1998 and 1999. Data processing and communications increased $2.9 million or 9% due primarily to a $1.6 million increase in processing charges. 

refund. Management expects no material adverse impact on the financial statements as a result of this examination. The Internal Revenue Service closed its examination of 1996 during 2000. As a result of the outcome of this examination, BOK Financial reduced its tax accrual by $3.0 million. Income tax expense for 2000 was 34% of pre-tax book income excluding the reversal of this accrual. During 1999 the Internal Revenue Service examination for 1995 was closed with no significant adjustments. 

