(17) Earnings Per Share (18) Reportable Segments 52 BOK Financial operates four principal lines of business under its Bank of Oklahoma franchise: corporate banking, consumer banking, mortgage banking and trust services. It also operates a fifth principal line of business, regional banks, which includes all banking functions for Bank of Albuquerque, Bank of Arkansas and Bank of Texas. These five principal lines of business combined account for approximately 87% of total revenue. Other lines of business include the TransFund ATM network and BOSC, Inc. The Corporate Banking segment consists of eight operating units that provide credit and lease financing, deposit and cash management and international collection services to commercial and industrial customers and to other financial institutions in Oklahoma and surrounding states.. The Consumer Banking segment consists of two operating units that provide direct and indirect consumer loans and deposit services to individuals primarily within Oklahoma. The Mortgage Banking segment consists of two operating units that originate a full range of mortgage products from federally sponsored programs to “jumbo loans” on higher priced homes in BOK Financial's primary market areas. The Mortgage Banking segment also services mortgage loans acquired from throughout the United States. The Trust Services segment.consists of one operating unit that provides financial services to both individual and corporate clients. Individual financial services include personal trust management, administration of estates and management of investment and custodial accounts. Individual financial services also include lending and investment services to select individuals. Corporate financial services include administration of employee benefit plans, transfer and paying agent services and investment advisory services. Regional Banks include Bank of Arkansas, Bank of Albuquerque and Bank of Texas. BOK Financial identifies reportable segments by type of service provided for the Mortgage Banking and the Trust Services segments and by type of customer for the Corporate Banking and Consumer Banking segments. Regional Banks are identified by legal entity. Operating results are adjusted for intercompany loan participations and allocated service costs and management fees. BOK Financial evaluates performance and allocates resources based upon a measurement of performance after the allocation of certain indirect expenses, taxes and capital cost. Capital is assigned to the lines of business based on an internal allocation method that reflects management’s assessment of risk: An additional amount of capital is assigned to the regional banks based upon BOK Financial’s investment in these entities. The accounting policies of the reportable segments generally follow those described in the summary of significant account policies except interest income is reported on a fully tax-equivalent basis, loan losses are based on actual net amounts charged off and the amortization of intangible assets is generally excluded. The cost of funds provided from one segment to another is transfer-priced at rates that approximate market for funds with similar duration. Assessment of performance is based on net interest revenue after internal funds transfer pricing. Nonreportable business segments include TransFund ATM networks and BOSC ‚Inc. The sources of revenue in these segments include interest, commissions earned on securities transactions, securities trading gains or losses and fees earned on various banking activities, including merchant discounts and interchange fees. Substantially all revenue is from domestic customers. No single external customer accounts for more than 10% of total revenue. The following table presents the computation of basic and diluted earnings per share (dollars in thousands except per share data): Years ended December 31, 2001 2000 1999 Numerator: Net income $ 116,302 $100,140 $89,226 Preferred stock dividends (1,500) (1,500) (1,500) Numerator for basic earnings per share — income available to common: stockholders 114,802 98.640 87,726 Effect of dilutive securities: Preferred stock dividends 1,500 1,500 1,500 Numerator for diluted eamings per share — income available to.common stockholders after assumed conversion $ 116,302 $100,140 489.226 Denominator: Denominator for basic earnings per share —-weighted average shares 50,972,642 50,665,525 $0,598,351 Effect of dilutive securities: Employee stock options’ 631,046 329,544 667,062 Convertible preferred stock 6,333,846 6,333,846 6,333,846 Dilutive potential common shares 6,964,892 6,663,390 7,000,908 Denominator for diluted earnings per share — adjusted weighted average shares and assumed conversions 57,937,534 57,328,915 $7,599,259 Basic earnings per share $2.25 $1.95 $1.73 $2.01 $1.75 $1.55 Diluted earnings per share ' Excludes employee stock options with exercise price greater than current market price 580,320 1,660,657 611,974