Reserve for Loan Loss Impaired Loans Loan Securitization (6) Premises and Equipment 43 Investments in loans considered to be impaired under FAS 114 were as follows (in thousands): The activity in the reserve for loan losses is summarized.as follows (in thousands): 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. Premises and equipment at December 31 are summarized as follows (in thousands): 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: Significant information and assumptions used to determine the value of these assets at December 31, 2000 were: Interest income recognized on impaired loans during 2001, 2000 and 1999 was not significant. December 31 2001 2000 1999 Investment in loans impaired under FAS 114 (all of which were ona nonaccrual basis) $39,848. $37,822. $15,600 Loans with specific reserves for loss 10,723 19,789 9,084 Specific reserve balance 2,509 7,991 2,468 No specific related reserve for loss 29,125 18,033 6,516 Average recorded investment in impaired loans 44,474 27,750: 15,300 Current outstanding loan principal $27,796 Average interest rate on loans sold 11.26% Current outstanding debt certificates $23,907 Interest rate on debt certificates 6.07% Current spread account balance $1,112 Estimated remaining life including prepayments 18 Months Discount rates: Servicing rights 10.00% Residual interest 12:15% Delinquency rate 1.81% Net charge-offs $854 Cash ‘distributed to BOK Financial: Servicing fees $419 Return on residual interest $ 5.741 December 31, 2001 2000 Land $ 28,212  $ 22,838 Buildings and improvements 97,812 82,646 Software 15,457 13,422 Furniture and equipment 101,138 92,566 Subtotal 242,619 211,472 Less accumulated depreciation 101,194 79 406 Total $141,425 _ $132,006 2001 2000 1999 Beginning balance $ 82,655 . $76,234 $65,922 Provision for loan losses 37,610 17,204 10,365 Loans charged off (25,248) (14,801) — (7,348) Recoveries 4,588 4,018 5.770 Addition due to acquisitions 2,300 - 1,525 Ending balance - $101,905... $82,655 $76,234