Table 9 Other Operating Expense (in Thousands) Personnel expense Business promotion Contribution of stock to BOk Charitable Foundation Professional fees and services Net occupancy and equipment Data processing and communications FDIC and other insurance Printing, postage and supplies Net gains and operating expenses on repossessed assets Amortization of intangible assets Mortgage banking costs Provision for impairment of mortgage servicing rights Other expense Total Years ended December 31, 2001 2000 1999 1998 1997 $163,835 $146,215 $136,010 $109,437 $ 90,625 10,658 8,395 9,077 8,220 8,886 - ~ - 2,257 3,638 13,391 9,618 9,584 9,781 6,906 42,764 35,447 30,789 21,811 18,720 40,013 34,962 32,038 23,764 19,444 1,717 1,569 1,356 1,368 1,380 12,329 11,260 11,599 9,524 8,067 1,401 (1,283) (3,473) (474) (3,831) 20,113 15,478 15,823 9,515 8,968 30,261 22,274 23,932 25,949 19,968 15,551 2,900 - (2,290) 4,100 16,729 15,980 13,781 15,133 12,983 $368,762 $302,815 $280,516 $233,995 $199,854 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. 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 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. In 2000, personnel costs increased $10.2 million or 8% compared to 1999, Regular compensation (including 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. 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. 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. Income Taxes