Borrowings and Capital Parent Company Subsidiary Banks Table 20 Deposits by Principal Market Area (In Thousands) December 31, 2001 2000 Oklahoma: Demand $ 992,663  $ 937,163 Interest-bearing: Transaction 1,650,269 1,407,083 Savings 101,433 93,598 Time 2,041,025 2,036,274 Total interest-bearing 3,792,727 3,536,955 Total Oklahoma “$4,785,390 $4,474,118 Texas: Demand $ 305,745. $ 250,347 Interest-bearing: Transaction 670,728 406,446 Savings 28,918 22,910 Time 451,031 303,203 Total interest-bearing 1,150,677 732,559 Total Texas $1,456,422 $ .982,906 December 31, 2001 2000 Albuquerque: Demand $57,648. $ 45,803 Interest-bearing: Transaction 224,265 161,027 Savings 26,848 25,843 Time 241,549 250,876 Total interest-bearing 492,662 437,746 Total Albuquerque $ 550,310 $483,549 Northwest Arkansas: Demand $ 10,634 $10,453 Interest-bearing: Transaction 14,452 11,114 Savings 1,035 1,030 Time 87,501 82,835 Total interest-bearing 102,988 94,979 Total Northwest Arkansas $. 113,622 -$ 105,432 BOK Financial (parent company) negotiated a $122.5 million unsecured revolving credit agreement with certain banks during 2001. This credit agreement, which matures in October 2004, replaced a $125 million credit agreement that was scheduled ‘to mature in November 2002. The outstanding principal balance of this credit agreement at December 31, 2001 was $95 million. Interest is based on either the London Interbank Offering Rate (“LIBOR”) plus a defined margin that is determined by the principal balance outstanding and BOK Financial’s credit rating or a base rate. The base rate is defined as the greater of the daily federal funds rate plus 0.5% or the prime rate. This credit agreement includes certain restrictive covenants that limit BOK Financial’s ability to borrow additional funds and to pay cash dividends on common stock. These covenants also require BOK Financial and its subsidiaries to maintain minimum capital levels and to exceed minimum net worth ratios. BOK Financial met all of the restrictive covenants at December 31, 2001. BOK Financial filed a shelf registration statement with the Securities and Exchange Commission for the issuance of up to $250 million of senior debt securities during the fourth quarter of 1998. These securities are direct, unsecured obligations and are not insured by the Federal Deposit BOK Financial’s subsidiary banks use borrowings to supplement deposits as a source of funds for loan and securities growth. These sources include federal funds purchased, securities repurchase agreements, and advances from the Federal Home Loan Bank. Interest rates and maturity dates for the various sources of funds are matched with specific types of assets in the asset / liability management process. See Note 10 to the Consolidated Financial Statements for additional information about the interest rates and maturity dates of these borrowings. In 1997, BOk issued $150 million of 7.125% fixed rate subordinated debentures that mature in 2007. Interest rate swaps were used as a fair value hedge to convert the fixed interest on these debentures to a LIBOR-based floating rate. This permitted BOk to adjust the carrying value of the subordinated debentures to fair value. In 2001, the interest rate swaps were terminated. The related market value Insurance Corporation or guaranteed by any governmental agency. None of this debt had been issued at December 31, 2001. BOK Financial borrowed $30 million during 2001 from its principal shareholder, George B. Kaiser, by issuing a subordinated debenture. This debenture matures in March 2008. Interest is based.on LIBOR plus 1.75%, payable quarterly. The proceeds of this borrowing were used to support asset growth, including the CNBT acquisition. The primary sources of liquidity available to BOK Financial are earnings on deposits and investments and dividends from subsidiaries. Dividends from subsidiary banks are generally limited by various banking regulations to net profits, as defined, for the year plus retained net profits for the preceding two years. Dividends are further restricted by minimum capital regulations. Based on the most restrictive limitations, BOK Financial’s subsidiary banks could declare up to $102 million of dividends without regulatory approval. Management has developed and the Board of Directors has approved an internal capital policy that is more restrictive than the regulatory capital standards. The subsidiary banks could declare up to’ $68 million under this policy. adjustment of the subordinated debenture of $8 million will be recognized over the remaining life of the debt. Equity capital for BOK Financial increased by $125 million to $828 million during 2001. Earnings provided $116 million of this increase.. The remainder was primarily due to the effects of stock options exercised during the year. The present policy of BOK Financial is to retain earnings for capital and future growth. Management has no current plans to recommend payments of cash dividends on common stock. Management presently plans to recommend continued payment of an annual dividend in shares of common stock. BOK Financial and its subsidiary banks are subject to various capital requirements administered by federal agencies. Failure to meet minimum capital requirements can result in certain mandatory and additional discretionary 24