BOK Financial Reports Annual and Quarterly Earnings for 2015
TULSA, Okla., Jan. 27, 2016 (GLOBE NEWSWIRE) -- BOK Financial Corporation (NASDAQ:BOKF) reported net income of $288.6 million or $4.21 per diluted share for the year ended December 31, 2015. Net income for the year ended December 31, 2014 was $292.4 million or $4.22 per diluted share.
Net income for fourth quarter of 2015 totaled $59.6 million or $0.89 per diluted share compared to net income of $74.9 million or $1.09 per diluted share for the third quarter of 2015.
Steven G. Bradshaw, president and CEO, stated, “It was a disappointing finish to the year, as the downgrade of a single large borrower in our energy portfolio during the fourth quarter necessitated a higher-than-expected provision for loan losses. However, this does not detract from the fact that 2015, on balance, was a successful and profitable year with strong loan and fee income growth and very good expense management all throughout the business. While the extended bear market in energy prices may mean additional loan loss provisions in 2016 and potentially a greater spillover impact on the economies in Oklahoma, Texas, and Colorado, we believe we are well-positioned to manage through the current commodities downturn and continue to grow and build shareholder value.”
Bradshaw added, “Reflecting management’s continued confidence in our business, we are investing in our future. The acquisition of MBT Bancshares, when it is closed later this year, is expected to transform our approach in the Kansas City market. The acquisition of Weaver Wealth Management expands our wealth management reach in the important North Texas market. And the acquisition of E-Spectrum Advisors adds energy industry M&A advisory to our stable of fee-generating businesses and supplements our energy lending and energy risk management businesses. In addition, we returned $149 million of capital to shareholders during the fourth quarter through our stock buyback program as well as regular quarterly dividends.”
Highlights of the fourth quarter of 2015 included:
Net interest revenue totaled $181.3 million for the fourth quarter of 2015, up $2.6 million over the third quarter of 2015. Net interest margin increased to 2.64 percent, compared to 2.61 percent. Average earning assets increased $256 million over the prior quarter.
Fees and commissions revenue totaled $155.8 million for the fourth quarter of 2015, compared to $164.7 million for the third quarter of 2015. Mortgage banking revenue decreased $8.1 million due primarily to lower loan production volume.
Change in fair value of mortgage servicing rights, net of economic hedges increased pre-tax net income in the fourth quarter of 2015 by $2.6 million and decreased pre-tax net income in the third quarter of 2015 by $4.4 million.
Operating expenses were $232.6 million for the fourth quarter, an increase of $7.9 million over the previous quarter. Personnel expense increased $4.1 million and non-personnel expense increased $3.8 million.
A $22.5 million provision for credit losses was recorded in the fourth quarter, compared to $7.5 million for the third quarter of 2015. The additional provision reflects continued credit migration and increased impairment in our energy loan portfolio. Net loans charged off were $3.0 million for the fourth quarter of 2015, compared to $1.8 million in the third quarter.
The combined allowance for credit losses totaled $227 million or 1.43 percent of outstanding loans at December 31, 2015, compared to $208 million or 1.35 percent of outstanding loans at September 30, 2015. The portion of the combined allowance attributed to the energy portfolio totaled 2.89 percent of outstanding energy loans at December 31, an increase from 2.05 percent of outstanding energy loans at September 30.
Nonperforming assets that are not guaranteed by U.S. government agencies totaled $156 million or 0.99 percent of outstanding loans and repossessed assets (excluding those guaranteed by U.S. government agencies) at December 31, 2015 and $119 million or 0.78 percent of outstanding loans and repossessed assets (excluding those guaranteed by U.S. government agencies) at September 30, 2015. The increase over the prior quarter was primarily due to a single energy credit.
Average loans increased $395 million over the previous quarter due primarily to growth in commercial loans, partially offset by a decrease in commercial real estate loans. Period-end outstanding loan balances were $15.9 billion at December 31, 2015, an increase of $574 million over September 30, 2015. Commercial loan balances grew $455 million over the prior quarter.
Average deposits increased $12 million over the previous quarter. Growth in demand deposit balances was partially offset by lower interest-bearing transaction and time deposits compared to the prior quarter. Period end deposits grew by $469 million over September 30, 2015 to $21.1 billion at December 31, 2015.
The common equity Tier 1 capital ratio was 12.13 percent at December 31. In addition, the company's Tier 1 capital ratio was 12.13 percent, total capital ratio was 13.30 percent and leverage ratio was 9.25 percent. At September 30, 2015, the common equity Tier 1 capital ratio was 12.78 percent, the Tier 1 capital ratio was 12.78 percent, total capital ratio was 13.89 percent and leverage ratio was 9.55 percent. The decrease in capital ratios was primarily due to share repurchases during the fourth quarter. The company repurchased 1,874,074 common shares at an average price of $63.91 per share.
The company paid a regular quarterly cash dividend of $29 million or $0.43 per common share during the fourth quarter of 2015. On January 26, 2016, the board of directors approved a quarterly cash dividend of $0.43 per common share payable on or about February 26, 2016 to shareholders of record as of February 12, 2016.
Net Interest Revenue
Net interest revenue increased $2.6 million over the third quarter of 2015.
Net interest margin was 2.64 percent for the fourth quarter of 2015, up from 2.61 percent for the third quarter of 2015. The yield on average earning assets was 2.86 percent, an increase of 3 basis points over the prior quarter. The yield on the available for sale securities portfolio increased 3 basis points to 2.04 percent. The loan portfolio yield increased 1 basis point to 3.55 percent. Funding costs increased 2 basis points over the prior quarter to 0.34 percent. The benefit of non-interest bearing funding sources increased by 2 basis points over the previous quarter.
Average earning assets increased $256 million during the fourth quarter of 2015. Average loan balances increased $395 million primarily due to commercial loan growth and available for sale securities increased $29 million. These increases were partially offset by a decrease in the average balance of residential mortgage loans held for sale, interest-bearing cash and cash equivalents and trading securities. Average deposits increased $12 million over the third quarter of 2015. The average balance of borrowed funds increased $132 million.
Fees and Commissions Revenue
Fees and commissions revenue totaled $155.8 million for the fourth quarter of 2015, an $8.8 million decrease compared to the third quarter of 2015 primarily due to a decrease in mortgage banking revenue.
Mortgage banking revenue totaled $25.0 million for the fourth quarter of 2015, a decrease of $8.1 million compared to the third quarter of 2015. Revenue from mortgage loan production decreased $8.6 million compared to the prior quarter. Increased average mortgage interest rates along with new disclosure requirements known as TRID and seasonal factors reduced mortgage production volume. Total mortgage loans originated during the fourth quarter decreased $249 million or 15 percent compared to the previous quarter and outstanding mortgage loan commitments at December 31 decreased $142 million or 19 percent from September 30. In addition, the value of mortgage loans and commitments held at December 31, net of forward sales contracts, decreased due to rising interest rates during the fourth quarter.
Brokerage and trading revenue totaled $30.3 million for the fourth quarter of 2015, down $1.3 million from the previous quarter. Underwriting revenue decreased $1.3 million due to the timing of completed transactions. Deposit service charges and fees totaled $22.8 million, a decrease of $793 thousand from the third quarter. The decrease was evenly distributed between commercial deposit fees that are based on transaction activity and overdraft fees.
Operating Expenses
Total operating expenses were $232.6 million for the fourth quarter of 2015, an increase of $7.9 million over the third quarter of 2015.
Personnel costs increased $4.1 million over the previous quarter. Incentive compensation increased $2.3 million, primarily due to a change in estimated share-based compensation expense. Share-based compensation includes grants with vesting criteria based on the company's earnings per share growth relative to peers over a forward looking three-year performance period. The company's forecasted earnings per share growth over the performance period increased due largely to common shares repurchased during the third and fourth quarters. Regular compensation expense increased $1.1 million. Employee benefits expense increased $757 thousand. Increased employee healthcare costs were partially offset by decreased retirement plan costs and a seasonal decrease in payroll taxes.
Non-personnel expense increased $3.8 million over the third quarter of 2015. Mortgage banking costs increased $2.4 million over the third quarter primarily due to continued resolution of outstanding claims from the servicing of defaulted government guaranteed mortgage loans. Outstanding claims decreased to $30 million at December 31, 2015 from $59 million at December 31, 2014 from these resolution efforts. Business promotion costs increased $2.5 million due to the timing of incurred expenses. Non-personnel expense for the third quarter included a $2.6 million charge to settle litigation and a $796 thousand contribution to the BOKF Foundation.
Loans, Deposits and Capital
Loans
Outstanding loans were $15.9 billion at December 31, 2015, an increase of $574 million over September 30. All loan categories grew over the prior quarter.
Outstanding commercial loan balances increased $455 million over September 30, 2015. Energy sector loans grew $259 million over September 30, 2015 and healthcare sector loans were up $142 million. Service sector loan balances grew by $78 million and other commercial and industrial loans increased $15 million. These increases were partially offset by a $40 million decrease in wholesale/retail sector loan balances. Unfunded energy loan commitments decreased by $355 million in the fourth quarter to $2.4 billion. The decrease in unfunded energy commitments largely reflects the increase in outstanding loans during the quarter. All other unfunded commercial loan commitments totaled $4.4 billion at December 31, 2015, an increase of $252 million over September 30, 2015.
Commercial real estate loans increased $24 million over September 30, 2015. Retail sector loans grew by $27 million over the prior quarter. Loans secured by office buildings increased $12 million and residential construction and land development loans increased $6.9 million. This growth was offset by a $13 million decrease in other commercial real estate loans and a $7.6 million decrease in loans secured by multifamily residential properties. Unfunded commercial real estate loan commitments totaled $1.1 billion at December 31, 2015, an increase of $128 million over September 30, 2015.
Norm Bagwell, executive vice president - Regional Banks, stated, “Loan growth was stronger than expected in the fourth quarter, driven by continued momentum in healthcare as well as growth in the energy portfolio. On a geographic basis, Kansas City, Oklahoma, and Arizona were our strongest markets, with double-digit annualized growth. To date, the business environment in our footprint has been sound despite the energy downturn, and we have yet to see any material spillover impact on the overall economy.”
Stacy Kymes, executive vice president - Corporate Banking, added, “Energy loan growth in the fourth quarter was positively impacted by advances we made to a well-secured longstanding energy client, as well as new business we generated from select, high quality opportunities. These demonstrate our continued commitment to energy lending even in the current commodity price environment. As we are now into the second year of low commodity prices, we are cognizant that credit losses may increase or even rise above what we have seen in previous cycles. However, we remain confident in our underwriting practices in energy lending, which have historically resulted in limited credit losses, and believe we are appropriately reserved and well-positioned to work through the current downturn.”
Deposits
Deposits totaled $21.1 billion at December 31, 2015, an increase of $469 million over September 30, 2015 primarily due to normal seasonality and temporary customer activity. Interest-bearing transaction account balances grew by $300 million and demand deposit balances increased $255 million. Time deposits decreased $92 million. Among the lines of business, commercial deposits increased $139 million, consumer deposits decreased $61 million and wealth management deposits increased $271 million.
Capital
New regulatory capital rules were effective for BOK Financial on January 1, 2015 and established a 7 percent threshold for the common equity Tier 1 ratio. The company's common equity Tier 1 capital ratio was 12.13 percent at December 31, 2015. In addition, the company's Tier 1 capital ratio was 12.13 percent, total capital ratio was 13.30 percent and leverage ratio was 9.25 percent at December 31, 2015. At September 30, 2015, the company’s common equity Tier 1 capital ratio was 12.78 percent, Tier 1 capital ratio was 12.78 percent, total capital ratio was 13.89 percent and leverage ratio was 9.55 percent.
The company's tangible common equity ratio, a non-GAAP measure, was 9.02 percent at December 31, 2015 and 9.78 percent at September 30, 2015. The tangible common equity ratio is primarily based on total shareholders' equity which includes unrealized gains and losses on available for sale securities. The company has elected to exclude unrealized gains and losses from available for sale securities from its calculation of Tier 1 capital for regulatory capital purposes, consistent with the treatment under the previous capital rules.
Credit Quality
Nonperforming assets totaled $252 million or 1.58 percent of outstanding loans and repossessed assets at December 31, 2015 compared to $204 million or 1.33 percent of outstanding loans and repossessed assets at September 30, 2015. Nonperforming assets that are not guaranteed by U.S. government agencies totaled $156 million or 0.99 percent of outstanding loans and repossessed assets (excluding those guaranteed by U.S. government agencies) at December 31, 2015 and $119 million or 0.78 percent at September 30, 2015. The $37 million increase over the prior quarter was primarily due to a single energy credit.
Excluding loans guaranteed by U.S. government agencies, nonaccruing loans totaled $125 million or 0.80 percent of outstanding loans at December 31, 2015 compared to $85 million or 0.56 percent of outstanding loans at September 30, 2015. New nonaccruing loans identified in the fourth quarter totaled $55 million, offset by $7.0 million in payments received, $4.9 million in charge-offs and $3.0 million in foreclosures and repossessions. At December 31, 2015, nonaccruing commercial loans totaled $76 million or 0.75 percent of outstanding commercial loans, including $61 million or 1.98 percent of energy sector loans. Nonaccruing commercial real estate loans totaled $9.0 million or 0.28 percent of outstanding commercial real estate loans.
Potential problem loans, which are defined as performing loans that, based on known information, cause management concern as to the borrowers' ability to continue to perform, increased to $155 million at December 31 from $120 million at September 30. The increase largely resulted from a $33 million increase in potential problem energy loans to $130 million.
Net charge-offs were $3.0 million for the fourth quarter of 2015, compared to net charge-offs of $1.8 million for the third quarter of 2015. Gross charge-offs totaled $4.9 million for the fourth quarter, compared to $5.3 million for the previous quarter. Recoveries totaled $1.9 million for the fourth quarter of 2015 and $3.5 million for the third quarter of 2015.
After evaluating all credit factors, including the inherent risk of falling energy prices, the company determined that a $22.5 million provision for credit losses was necessary during the fourth quarter of 2015. The additional provision was necessary due to increased impairment and continued credit migration in our energy loan portfolio. In addition, a single borrower reported steeper than expected production declines and higher lease operating expenses, leading to a $14 million impairment on the loan. The combined allowance for credit losses totaled $227 million or 1.43 percent of outstanding loans and 181.46 percent of nonaccruing loans, excluding loans guaranteed by U.S. government agencies, at December 31, 2015. The allowance for loan losses was $226 million and the accrual for off-balance sheet credit losses was $1.7 million.
Energy Portfolio Credit Quality
The company's $3.1 billion energy loan portfolio consists of 82 percent of loans to exploration and production companies, 9 percent to energy services companies and 9 percent to midstream and other energy related borrowers. Substantially all of the loans to exploration and production companies are secured by first lien positions in established energy reserves. Only $10 million of these loans are in junior lien positions. None represent higher-risk mezzanine financing or subordinated debt and none are high-yield debt.
The portion of the allowance for credit losses attributed to the energy portfolio totaled $90 million or 2.89 percent of outstanding energy loans. Management believes this is appropriate based on the current risk characteristics of the energy portfolio.
Securities and Derivatives
The fair value of the available for sale securities portfolio totaled $9.0 billion at December 31, 2015 and $8.8 billion at September 30, 2015. At December 31, 2015, the available for sale portfolio consisted primarily of $5.9 billion of residential mortgage-backed securities fully backed by U.S. government agencies and $2.9 billion of commercial mortgage-backed securities fully backed by U.S. government agencies.
The available for sale securities portfolio had a net unrealized gain of $38 million at December 31, 2015, compared to a net unrealized gain of $145 million at September 30, 2015. The decrease in the net unrealized gain was primarily due to an increase in interest rates during the fourth quarter. Net unrealized gains on residential mortgage-backed securities issued by U.S. government agencies at December 31, 2015 decreased $68 million during the fourth quarter to a net unrealized gain of $37 million at December 31, 2015. Commercial mortgage-backed securities had a net unrealized loss of $13 million at December 31, 2015, compared to a net unrealized gain of $27 million at September 30, 2015.
In the fourth quarter of 2015, the company recognized net gains of $2.1 million from sales of $436 million of available for sale securities. Securities were sold either because they had reached their expected maximum potential return or to move into securities that are expected to perform better in the current rate environment. Net gains from sales of $451 million of available for sale securities in the third quarter of 2015 totaled $2.2 million.
The company also maintains a portfolio of residential mortgage-backed securities issued by U.S. government agencies and interest rate derivative contracts designated as an economic hedge of the changes in the fair value of our mortgage servicing rights. The value of our mortgage servicing rights increased by $7.4 million due primarily to an increase in residential mortgage interest rates during the fourth quarter of 2015. The value of securities and interest rate derivative contracts held as an economic hedge decreased by $4.9 million. The fair value of mortgage servicing rights, net of economic hedge, decreased by $4.4 million in the third quarter, primarily due to a decrease in residential mortgage interest rates.
Conference Call and Webcast
The company will hold a conference call at 9 a.m. Central time on Wednesday, January 27, 2016 to discuss the financial results with investors. The live audio webcast and presentation slides will be available on the company’s website at www.bokf.com. The conference call can also be accessed by dialing 1-412-902-6611. A conference call and webcast replay will also be available shortly after conclusion of the live call at www.bokf.com or by dialing 1-412-317-0088 and referencing conference ID # 10078587.
About BOK Financial Corporation
BOK Financial is a $31 billion regional financial services company based in Tulsa, Oklahoma. The company's stock is publicly traded on NASDAQ under the Global Select market listings (symbol: BOKF). BOK Financial's holdings include BOKF, NA, BOSC, Inc. and The Milestone Group, Inc. BOKF, NA operates TransFund, Cavanal Hill Investment Management, BOK Financial Asset Management, Inc. and seven banking divisions: Bank of Albuquerque, Bank of Arizona, Bank of Arkansas, Bank of Kansas City, Bank of Oklahoma, Bank of Texas and Colorado State Bank and Trust. Through its subsidiaries, the company provides commercial and consumer banking, investment and trust services, mortgage origination and servicing, and an electronic funds transfer network. For more information, visit www.bokf.com.
The company will continue to evaluate critical assumptions and estimates, such as the appropriateness of the allowance for credit losses and asset impairment as of December 31, 2015 through the date its financial statements are filed with the Securities and Exchange Commission and will adjust amounts reported if necessary.
This news release contains forward-looking statements that are based on management's beliefs, assumptions, current expectations, estimates and projections about BOK Financial, the financial services industry and the economy generally. Words such as “anticipates,” “believes,” “estimates,” “expects,” “forecasts,” “plans,” “projects,” variations of such words and similar expressions are intended to identify such forward-looking statements. Management judgments relating to and discussion of the provision and allowance for credit losses involve judgments as to future events and are inherently forward-looking statements. Assessments that BOK Financial's acquisitions and other growth endeavors will be profitable are necessary statements of belief as to the outcome of future events based in part on information provided by others which BOK Financial has not independently verified. These statements are not guarantees of future performance and involve certain risks, uncertainties, and assumptions which are difficult to predict with regard to timing, extent, likelihood and degree of occurrence. Therefore, actual results and outcomes may materially differ from what is expected, implied or forecasted in such forward-looking statements. Internal and external factors that might cause such a difference include, but are not limited to (1) the ability to fully realize expected cost savings from mergers within the expected time frames, (2) the ability of other companies on which BOK Financial relies to provide goods and services in a timely and accurate manner, (3) changes in interest rates and interest rate relationships, (4) demand for products and services, (5) the degree of competition by traditional and nontraditional competitors, (6) changes in banking regulations, tax laws, prices, levies and assessments, (7) the impact of technological advances and (8) trends in consumer behavior as well as their ability to repay loans. BOK Financial and its affiliates undertake no obligation to update, amend or clarify forward-looking statements, whether as a result of new information, future events, or otherwise.
BALANCE SHEETS -- UNAUDITED BOK FINANCIAL CORPORATION (In thousands)
Dec. 31, 2015
Sept. 30, 2015
Dec. 31, 2014
ASSETS
Cash and due from banks
$
573,699
$
489,268
$
550,576
Interest-bearing cash and cash equivalents
2,069,900
1,830,105
1,925,266
Trading securities
122,404
181,131
188,700
Investment securities
597,836
612,384
652,360
Available for sale securities
9,042,733
8,801,089
8,978,945
Fair value option securities
444,217
427,760
311,597
Restricted equity securities
273,684
263,587
141,494
Residential mortgage loans held for sale
308,439
357,414
304,182
Loans:
Commercial
10,252,531
9,797,422
9,095,670
Commercial real estate
3,259,033
3,235,067
2,728,150
Residential mortgage
1,876,893
1,868,995
1,949,512
Personal
552,697
465,957
434,705
Total loans
15,941,154
15,367,441
14,208,037
Allowance for loan losses
(225,524
)
(204,116
)
(189,056
)
Loans, net of allowance
15,715,630
15,163,325
14,018,981
Premises and equipment, net
306,490
294,669
273,833
Receivables
163,480
151,451
132,408
Goodwill
385,461
385,461
377,780
Intangible assets, net
43,909
44,999
34,376
Mortgage servicing rights, net
218,605
200,049
171,976
Real estate and other repossessed assets, net
30,731
33,116
101,861
Derivative contracts, net
586,270
726,159
361,874
Cash surrender value of bank-owned life insurance
303,335
300,981
293,978
Receivable on unsettled securities sales
40,193
30,009
74,259
Other assets
249,112
273,948
195,252
TOTAL ASSETS
$
31,476,128
$
30,566,905
$
29,089,698
LIABILITIES AND EQUITY
Deposits:
Demand
$
8,296,888
$
8,041,767
$
8,066,357
Interest-bearing transaction
9,998,954
9,698,849
10,114,355
Savings
386,252
380,296
351,431
Time
2,406,064
2,498,531
2,608,716
Total deposits
21,088,158
20,619,443
21,140,859
Funds purchased
491,192
62,297
57,031
Repurchase agreements
722,444
555,677
1,187,489
Other borrowings
4,837,879
4,635,150
2,133,774
Subordinated debentures
226,350
226,314
347,983
Accrued interest, taxes, and expense
119,584
158,048
120,211
Due on unsettled securities purchases
16,897
98,351
290,540
Derivative contracts, net
581,701
636,115
354,554
Other liabilities
124,284
159,348
121,051
TOTAL LIABILITIES
28,208,489
27,150,743
25,753,492
Shareholders' equity:
Capital, surplus and retained earnings
3,208,969
3,291,450
3,245,506
Accumulated other comprehensive income
21,587
85,776
56,673
TOTAL SHAREHOLDERS' EQUITY
3,230,556
3,377,226
3,302,179
Non-controlling interests
37,083
38,936
34,027
TOTAL EQUITY
3,267,639
3,416,162
3,336,206
TOTAL LIABILITIES AND EQUITY
$
31,476,128
$
30,566,905
$
29,089,698
AVERAGE BALANCE SHEETS -- UNAUDITED BOK FINANCIAL CORPORATION (in thousands)
Three Months Ended
Dec. 31, 2015
Sept. 30, 2015
June 30, 2015
March 31, 2015
Dec. 31, 2014
ASSETS
Interest-bearing cash and cash equivalents
$
1,995,945
$
2,038,611
$
2,002,456
$
2,089,546
$
2,090,176
Trading securities
150,402
179,098
127,391
140,968
164,502
Investment securities
602,369
616,091
628,489
642,825
650,911
Available for sale securities
8,971,090
8,942,261
9,063,006
9,101,464
9,161,901
Fair value option securities
435,449
429,951
435,294
404,775
221,773
Restricted equity securities
262,461
255,610
221,911
179,385
182,737
Residential mortgage loans held for sale
310,425
401,359
464,269
348,054
321,746
Loans:
Commercial
10,024,756
9,685,768
9,634,306
9,308,307
8,886,952
Commercial real estate
3,186,629
3,198,200
2,989,615
2,909,565
2,665,547
Residential mortgage
1,835,195
1,847,696
1,857,464
1,909,998
1,904,777
Personal
540,418
460,647
423,967
426,712
424,729
Total loans
15,586,998
15,192,311
14,905,352
14,554,582
13,882,005
Allowance for loan losses
(207,156
)
(202,829
)
(198,400
)
(194,948
)
(190,787
)
Total loans, net
15,379,842
14,989,482
14,706,952
14,359,634
13,691,218
Total earning assets
28,107,983
27,852,463
27,649,768
27,266,651
26,484,964
Cash and due from banks
514,629
487,283
492,737
513,734
528,595
Derivative contracts, net
657,780
669,264
475,687
447,565
352,565
Cash surrender value of bank-owned life insurance
301,793
299,424
297,022
294,803
292,411
Receivable on unsettled securities sales
62,228
64,591
94,374
99,706
69,109
Other assets
1,435,763
1,396,708
1,454,484
1,348,245
1,404,553
TOTAL ASSETS
$
31,080,176
$
30,769,733
$
30,464,072
$
29,970,704
$
29,132,197
LIABILITIES AND EQUITY
Deposits:
Demand
$
8,312,961
$
7,994,607
$
7,996,717
$
7,885,485
$
7,974,165
Interest-bearing transaction
9,527,491
9,760,839
10,063,589
10,338,396
9,730,564
Savings
382,284
379,828
381,833
365,835
346,132
Time
2,482,714
2,557,874
2,651,820
2,659,323
2,647,147
Total deposits
20,705,450
20,693,148
21,093,959
21,249,039
20,698,008
Funds purchased
73,220
70,281
63,312
69,730
71,728
Repurchase agreements
623,921
672,085
773,977
1,000,839
996,308
Other borrowings
4,957,175
4,779,981
4,001,479
3,084,214
3,021,094
Subordinated debentures
226,332
226,296
307,903
348,007
347,960
Derivative contracts, net
632,699
597,908
455,431
418,848
321,367
Due on unsettled securities purchases
248,811
90,135
151,369
205,096
137,566
Other liabilities
251,953
240,704
235,173
243,370
228,021
TOTAL LIABILITIES
27,719,561
27,370,538
27,082,603
26,619,143
25,822,052
Total equity
3,360,615
3,399,195
3,381,469
3,351,561
3,310,145
TOTAL LIABILITIES AND EQUITY
$
31,080,176
$
30,769,733
$
30,464,072
$
29,970,704
$
29,132,197
STATEMENTS OF EARNINGS -- UNAUDITED BOK FINANCIAL CORPORATION (in thousands, except per share data)
Three Months Ended
Year Ended
Dec. 31,
Dec. 31,
2015
2014
2015
2014
Interest revenue
$
196,782
$
186,620
$
766,828
$
732,239
Interest expense
15,521
16,956
63,474
67,045
Net interest revenue
181,261
169,664
703,354
665,194
Provision for credit losses
22,500
—
34,000
—
Net interest revenue after provision for credit losses
158,761
169,664
669,354
665,194
Other operating revenue:
Brokerage and trading revenue
30,255
30,602
129,556
134,437
Transaction card revenue
32,319
31,467
128,621
123,689
Fiduciary and asset management revenue
31,165
30,649
126,153
115,652
Deposit service charges and fees
22,813
22,581
90,431
90,911
Mortgage banking revenue
25,039
30,105
134,375
109,093
Bank-owned life insurance
2,348
2,380
9,304
9,086
Other revenue
11,885
10,071
40,579
38,451
Total fees and commissions
155,824
157,855
659,019
621,319
Gain on other assets, net
2,329
338
5,702
2,953
Gain (loss) on derivatives, net
(732
)
1,070
430
2,776
Gain (loss) on fair value option securities, net
(4,127
)
3,685
(3,684
)
10,189
Change in fair value of mortgage servicing rights
7,416
(10,821
)
(4,853
)
(16,445
)
Gain on available for sale securities, net
2,132
149
12,058
1,539
Total other-than-temporary impairment losses
(2,114
)
(373
)
(2,895
)
(373
)
Portion of loss recognized in (reclassified from) other comprehensive income
387
—
1,076
—
Net impairment losses recognized in earnings
(1,727
)
(373
)
(1,819
)
(373
)
Total other operating revenue
161,115
151,903
666,853
621,958
Other operating expense:
Personnel
133,182
125,741
523,487
476,931
Business promotion
8,416
7,498
27,851
26,649
Charitable contributions to BOKF Foundation
—
1,847
796
4,267
Professional fees and services
10,357
11,058
40,123
44,440
Net occupancy and equipment
19,356
22,655
76,016
77,232
Insurance
5,415
4,777
20,375
18,578
Data processing and communications
31,248
30,259
122,383
115,225
Printing, postage and supplies
3,108
3,168
13,498
13,518
Net losses (gains) and operating expenses of repossessed assets
343
(1,497
)
1,446
6,019
Amortization of intangible assets
1,090
1,100
4,359
3,965
Mortgage banking costs
11,496
11,166
38,997
31,705
Other expense
8,547
8,105
35,233
28,993
Total other operating expense
232,558
225,877
904,564
847,522
Net income before taxes
87,318
95,690
431,643
439,630
Federal and state income taxes
26,242
30,109
139,384
144,151
Net income
61,076
65,581
292,259
295,479
Net income attributable to non-controlling interests
1,475
1,263
3,694
3,044
Net income attributable to BOK Financial Corporation shareholders
$
59,601
$
64,318
$
288,565
$
292,435
Average shares outstanding:
Basic
66,378,380
68,481,630
67,594,689
68,394,194
Diluted
66,467,729
68,615,808
67,691,658
68,544,770
Net income per share:
Basic
$
0.89
$
0.93
$
4.22
$
4.23
Diluted
$
0.89
$
0.93
$
4.21
$
4.22
FINANCIAL HIGHLIGHTS -- UNAUDITED BOK FINANCIAL CORPORATION (in thousands, except ratio and share data)
Three Months Ended
Dec. 31, 2015
Sept. 30, 2015
June 30, 2015
March 31, 2015
Dec. 31, 2014
Capital:
Period-end shareholders' equity
$
3,230,556
$
3,377,226
$
3,375,632
$
3,357,161
$
3,302,179
Risk weighted assets
$
23,429,897
$
22,706,537
$
22,533,295
$
22,053,246
$
21,290,908
Risk-based capital ratios1:
Common equity tier 1
12.13
%
12.78
%
13.01
%
13.07
%
N/A
Tier 1
12.13
%
12.78
%
13.01
%
13.07
%
13.33
%
Total capital
13.30
%
13.89
%
14.11
%
14.39
%
14.66
%
Leverage ratio
9.25
%
9.55
%
9.75
%
9.74
%
9.96
%
Tangible common equity ratio2
9.02
%
9.78
%
9.72
%
9.86
%
10.08
%
Common stock:
Book value per share
$
49.03
$
49.88
$
48.96
$
48.71
$
47.78
Market value per share:
High
$
74.73
$
70.26
$
71.66
$
61.78
$
68.69
Low
$
58.25
$
57.04
$
59.59
$
52.63
$
56.87
Cash dividends paid
$
28,967
$
28,766
$
28,841
$
28,952
$
29,114
Dividend payout ratio
48.60
%
38.41
%
36.40
%
38.68
%
45.27
%
Shares outstanding, net
65,894,032
67,713,031
68,945,139
68,922,314
69,113,736
Stock buy-back program:
Shares repurchased
1,874,074
1,258,348
—
502,156
200,000
Amount
$
119,780
$
80,276
$
—
$
29,484
$
12,337
Average price per share
$
63.91
$
63.79
$
—
$
58.71
$
61.68
Performance ratios (quarter annualized):
Return on average assets
0.76
%
0.97
%
1.04
%
1.01
%
0.88
%
Return on average equity
7.12
%
8.84
%
9.50
%
9.15
%
7.79
%
Net interest margin
2.64
%
2.61
%
2.61
%
2.55
%
2.61
%
Efficiency ratio
67.93
%
64.34
%
64.21
%
64.91
%
67.95
%
1 Risk-based capital ratios March 31, 2015 and thereafter calculated under revised regulatory capital rules issued July 2013 and effective for the Company January 1, 2015. Previous risk-based capital ratios presented are calculated in accordance with then current regulatory capital rules.
Reconciliation of non-GAAP measures:
2 Tangible common equity ratio:
Total shareholders' equity
$
3,230,556
$
3,377,226
$
3,375,632
$
3,357,161
$
3,302,179
Less: Goodwill and intangible assets, net
429,370
430,460
431,515
411,066
412,156
Tangible common equity
$
2,801,186
$
2,946,766
$
2,944,117
$
2,946,095
$
2,890,023
Total assets
$
31,476,128
$
30,566,905
$
30,725,563
$
30,299,978
$
29,089,698
Less: Goodwill and intangible assets, net
429,370
430,460
431,515
411,066
412,156
Tangible assets
$
31,046,758
$
30,136,445
$
30,294,048
$
29,888,912
$
28,677,542
Tangible common equity ratio
9.02
%
9.78
%
9.72
%
9.86
%
10.08
%
Other data:
Fiduciary assets
$
38,333,638
$
37,780,669
$
38,772,018
$
37,511,746
$
35,997,877
Tax equivalent adjustment
$
3,222
$
3,244
$
3,035
$
2,956
$
2,859
Net unrealized gain on available for sale securities
$
38,109
$
144,884
$
89,158
$
152,107
$
96,955
Mortgage banking:
Mortgage servicing portfolio
$
19,678,226
$
18,928,726
$
17,979,623
$
16,937,128
$
16,162,887
Mortgage commitments
$
601,147
$
742,742
$
849,619
$
824,036
$
627,505
Mortgage loans funded for sale
$
1,365,431
$
1,614,225
$
1,828,230
$
1,565,016
$
1,264,269
Mortgage loan refinances to total fundings
41
%
30
%
40
%
56
%
37
%
Mortgage loans sold
$
1,424,527
$
1,778,099
$
1,861,968
$
1,382,042
$
1,350,529
Net realized gains on mortgage loans sold
$
15,705
$
18,968
$
23,856
$
17,251
$
17,671
Change in net unrealized gain on mortgage loans held for sale
(5,615
)
(251
)
(743
)
8,789
(482
)
Total production revenue
10,090
18,717
23,113
26,040
17,189
Servicing revenue
14,949
14,453
13,733
13,280
12,916
Total mortgage banking revenue
$
25,039
$
33,170
$
36,846
$
39,320
$
30,105
Gain (loss) on mortgage servicing rights, net of economic hedge:
Gain (loss) on mortgage hedge derivative contracts, net
$
(732
)
$
1,460
$
(1,005
)
$
911
$
1,070
Gain (loss) on fair value option securities, net
(4,127
)
5,926
(8,130
)
2,647
3,685
Gain (loss) on economic hedge of mortgage servicing rights
(4,859
)
7,386
(9,135
)
3,558
4,755
Gain (loss) on changes in fair value of mortgage servicing rights
7,416
(11,757
)
8,010
(8,522
)
(10,821
)
Gain (loss) on changes in fair value of mortgage servicing rights, net of economic hedges
$
2,557
$
(4,371
)
$
(1,125
)
$
(4,964
)
$
(6,066
)
Net interest revenue on fair value option securities
$
2,137
$
2,140
$
1,985
$
1,739
$
912
QUARTERLY EARNINGS TREND -- UNAUDITED BOK FINANCIAL CORPORATION (in thousands, except ratio and per share data)
Three Months Ended
Dec. 31, 2015
Sept. 30, 2015
June 30, 2015
March 31, 2015
Dec. 31, 2014
Interest revenue
$
196,782
$
193,664
$
191,813
$
184,569
$
186,620
Interest expense
15,521
15,028
16,082
16,843
16,956
Net interest revenue
181,261
178,636
175,731
167,726
169,664
Provision for credit losses
22,500
7,500
4,000
—
—
Net interest revenue after provision for credit losses
158,761
171,136
171,731
167,726
169,664
Other operating revenue:
Brokerage and trading revenue
30,255
31,582
36,012
31,707
30,602
Transaction card revenue
32,319
32,514
32,778
31,010
31,467
Fiduciary and asset management revenue
31,165
30,807
32,712
31,469
30,649
Deposit service charges and fees
22,813
23,606
22,328
21,684
22,581
Mortgage banking revenue
25,039
33,170
36,846
39,320
30,105
Bank-owned life insurance
2,348
2,360
2,398
2,198
2,380
Other revenue
11,885
10,618
9,473
8,603
10,071
Total fees and commissions
155,824
164,657
172,547
165,991
157,855
Gain on other assets, net
2,329
1,161
1,457
755
338
Gain (loss) on derivatives, net
(732
)
1,283
(1,032
)
911
1,070
Gain (loss) on fair value option securities, net
(4,127
)
5,926
(8,130
)
2,647
3,685
Change in fair value of mortgage servicing rights
7,416
(11,757
)
8,010
(8,522
)
(10,821
)
Gain on available for sale securities, net
2,132
2,166
3,433
4,327
149
Total other-than-temporary impairment losses
(2,114
)
—
—
(781
)
(373
)
Portion of loss recognized in (reclassified from) other comprehensive income
387
—
—
689
—
Net impairment losses recognized in earnings
(1,727
)
—
—
(92
)
(373
)
Total other operating revenue
161,115
163,436
176,285
166,017
151,903
Other operating expense:
Personnel
133,182
129,062
132,695
128,548
125,741
Business promotion
8,416
5,922
7,765
5,748
7,498
Contribution to BOKF Foundation
—
796
—
—
1,847
Professional fees and services
10,357
10,147
9,560
10,059
11,058
Net occupancy and equipment
19,356
18,689
18,927
19,044
22,655
Insurance
5,415
4,864
5,116
4,980
4,777
Data processing and communications
31,248
30,708
30,655
29,772
30,259
Printing, postage and supplies
3,108
3,376
3,553
3,461
3,168
Net losses (gains) and operating expenses of repossessed assets
343
267
223
613
(1,497
)
Amortization of intangible assets
1,090
1,089
1,090
1,090
1,100
Mortgage banking costs
11,496
9,107
8,227
10,167
11,166
Other expense
8,547
10,601
9,302
6,783
8,105
Total other operating expense
232,558
224,628
227,113
220,265
225,877
Net income before taxes
87,318
109,944
120,903
113,478
95,690
Federal and state income taxes
26,242
34,128
40,630
38,384
30,109
Net income
61,076
75,816
80,273
75,094
65,581
Net income attributable to non-controlling interests
1,475
925
1,043
251
1,263
Net income attributable to BOK Financial Corporation shareholders
$
59,601
$
74,891
$
79,230
$
74,843
$
64,318
Average shares outstanding:
Basic
66,378,380
67,668,076
68,096,341
68,254,780
68,481,630
Diluted
66,467,729
67,762,483
68,210,353
68,344,886
68,615,808
Net income per share:
Basic
$
0.89
$
1.09
$
1.15
$
1.08
$
0.93
Diluted
$
0.89
$
1.09
$
1.15
$
1.08
$
0.93
LOANS TREND -- UNAUDITED BOK FINANCIAL CORPORATION (In thousands)
Dec. 31, 2015
Sept. 30, 2015
June 30, 2015
March 31, 2015
Dec. 31, 2014
Commercial:
Energy
$
3,097,328
$
2,838,167
$
2,902,143
$
2,902,994
$
2,860,428
Services
2,784,276
2,706,624
2,681,126
2,592,876
2,391,530
Healthcare
1,883,380
1,741,680
1,646,025
1,511,177
1,454,969
Wholesale/retail
1,422,064
1,461,936
1,533,730
1,405,800
1,440,015
Manufacturing
556,729
555,677
579,549
560,925
532,594
Other commercial and industrial
508,754
493,338
433,148
417,391
416,134
Total commercial
10,252,531
9,797,422
9,775,721
9,391,163
9,095,670
Commercial real estate:
Retail
796,499
769,449
688,447
658,860
666,889
Multifamily
751,085
758,658
711,333
749,986
704,298
Office
637,707
626,151
563,085
513,862
415,544
Industrial
563,169
563,871
488,054
478,584
428,817
Residential construction and land development
160,426
153,510
148,574
139,152
143,591
Other real estate
350,147
363,428
434,004
395,020
369,011
Total commercial real estate
3,259,033
3,235,067
3,033,497
2,935,464
2,728,150
Residential mortgage:
Permanent mortgage
945,336
937,664
946,324
964,264
969,951
Permanent mortgages guaranteed by U.S. government agencies
196,937
192,712
190,839
200,179
205,950
Home equity
734,620
738,619
747,565
762,556
773,611
Total residential mortgage
1,876,893
1,868,995
1,884,728
1,926,999
1,949,512
Personal
552,697
465,957
430,190
430,510
434,705
Total
$
15,941,154
$
15,367,441
$
15,124,136
$
14,684,136
$
14,208,037
LOANS BY PRINCIPAL MARKET AREA -- UNAUDITED BOK FINANCIAL CORPORATION (in thousands)
Dec. 31, 2015
Sept. 30, 2015
June 30, 2015
March 31, 2015
Dec. 31, 2014
Bank of Oklahoma:
Commercial
$
3,782,687
$
3,514,391
$
3,529,406
$
3,276,553
$
3,142,689
Commercial real estate
739,829
677,372
614,995
612,639
603,610
Residential mortgage
1,409,114
1,405,235
1,413,690
1,442,340
1,467,096
Personal
255,387
185,463
190,909
205,496
206,115
Total Bank of Oklahoma
6,187,017
5,782,461
5,749,000
5,537,028
5,419,510
Bank of Texas:
Commercial
3,908,425
3,752,193
3,738,742
3,709,467
3,549,128
Commercial real estate
1,204,202
1,257,741
1,158,056
1,130,973
1,027,817
Residential mortgage
219,126
222,395
228,683
237,985
235,948
Personal
203,496
194,051
156,260
149,827
154,363
Total Bank of Texas
5,535,249
5,426,380
5,281,741
5,228,252
4,967,256
Bank of Albuquerque:
Commercial
375,839
368,027
392,362
388,005
383,439
Commercial real estate
313,422
312,953
291,953
296,696
296,358
Residential mortgage
120,507
121,232
123,376
127,326
127,999
Personal
11,557
10,477
11,939
12,095
10,899
Total Bank of Albuquerque
821,325
812,689
819,630
824,122
818,695
Bank of Arkansas:
Commercial
92,359
76,044
99,086
91,485
95,510
Commercial real estate
69,320
82,225
85,997
87,034
88,301
Residential mortgage
8,169
8,063
6,999
6,807
7,261
Personal
819
4,921
5,189
5,114
5,169
Total Bank of Arkansas
170,667
171,253
197,271
190,440
196,241
Colorado State Bank & Trust:
Commercial
987,076
1,029,694
1,019,454
1,008,316
977,961
Commercial real estate
223,946
229,835
229,721
209,272
194,553
Residential mortgage
53,782
50,138
54,135
55,925
57,119
Personal
23,384
30,683
30,373
27,792
27,918
Total Colorado State Bank & Trust
1,288,188
1,340,350
1,333,683
1,301,305
1,257,551
Bank of Arizona:
Commercial
606,733
608,235
572,477
519,767
547,524
Commercial real estate
507,523
482,918
472,061
432,269
355,140
Residential mortgage
44,047
41,722
37,493
36,161
35,872
Personal
31,060
17,609
12,875
12,394
12,883
Total Bank of Arizona
1,189,363
1,150,484
1,094,906
1,000,591
951,419
Bank of Kansas City:
Commercial
499,412
448,838
424,194
397,570
399,419
Commercial real estate
200,791
192,023
180,714
166,581
162,371
Residential mortgage
22,148
20,210
20,352
20,455
18,217
Personal
26,994
22,753
22,645
17,792
17,358
Total Bank of Kansas City
749,345
683,824
647,905
602,398
597,365
TOTAL BOK FINANCIAL
$
15,941,154
$
15,367,441
$
15,124,136
$
14,684,136
$
14,208,037
Loans attributed to a geographical region may not always represent the location of the borrower or the collateral.
DEPOSITS BY PRINCIPAL MARKET AREA -- UNAUDITED BOK FINANCIAL CORPORATION (in thousands)
Dec. 31, 2015
Sept. 30, 2015
June 30, 2015
March 31, 2015
Dec. 31, 2014
Bank of Oklahoma:
Demand
$
4,133,520
$
3,834,145
$
4,068,088
$
3,982,534
$
3,828,819
Interest-bearing:
Transaction
5,971,819
5,783,258
6,018,381
6,199,468
6,117,886
Savings
226,733
225,580
225,694
227,855
206,357
Time
1,202,274
1,253,137
1,380,566
1,372,250
1,301,194
Total interest-bearing
7,400,826
7,261,975
7,624,641
7,799,573
7,625,437
Total Bank of Oklahoma
11,534,346
11,096,120
11,692,729
11,782,107
11,454,256
Bank of Texas:
Demand
2,627,764
2,689,493
2,565,234
2,511,032
2,639,732
Interest-bearing:
Transaction
2,132,099
1,996,223
2,020,817
2,062,063
2,065,723
Savings
77,902
74,674
74,373
76,128
72,037
Time
549,740
554,106
536,844
547,371
547,316
Total interest-bearing
2,759,741
2,625,003
2,632,034
2,685,562
2,685,076
Total Bank of Texas
5,387,505
5,314,496
5,197,268
5,196,594
5,324,808
Bank of Albuquerque:
Demand
487,286
520,785
508,224
537,466
487,819
Interest-bearing:
Transaction
563,723
529,862
537,156
535,791
519,544
Savings
43,672
41,380
41,802
42,088
37,471
Time
267,821
281,426
285,890
290,706
295,798
Total interest-bearing
875,216
852,668
864,848
868,585
852,813
Total Bank of Albuquerque
1,362,502
1,373,453
1,373,072
1,406,051
1,340,632
Bank of Arkansas:
Demand
27,252
25,397
19,731
31,002
35,996
Interest-bearing:
Transaction
202,857
290,728
284,349
253,691
158,115
Savings
1,747
1,573
1,712
1,677
1,936
Time
24,983
26,203
28,220
28,277
28,520
Total interest-bearing
229,587
318,504
314,281
283,645
188,571
Total Bank of Arkansas
256,839
343,901
334,012
314,647
224,567
Colorado State Bank & Trust:
Demand
497,318
430,675
403,491
412,532
445,755
Interest-bearing:
Transaction
616,697
655,206
601,741
604,665
631,874
Savings
31,927
31,398
31,285
31,524
29,811
Time
296,224
320,279
322,432
340,006
353,998
Total interest-bearing
944,848
1,006,883
955,458
976,195
1,015,683
Total Colorado State Bank & Trust
1,442,166
1,437,558
1,358,949
1,388,727
1,461,438
Bank of Arizona:
Demand
326,324
306,425
352,024
271,091
369,115
Interest-bearing:
Transaction
358,556
293,319
298,073
295,480
347,214
Savings
2,893
4,121
2,726
2,900
2,545
Time
29,498
26,750
28,165
28,086
36,680
Total interest-bearing
390,947
324,190
328,964
326,466
386,439
Total Bank of Arizona
717,271
630,615
680,988
597,557
755,554
Bank of Kansas City:
Demand
197,424
234,847
239,609
263,920
259,121
Interest-bearing:
Transaction
153,203
150,253
139,260
157,044
273,999
Savings
1,378
1,570
1,580
1,618
1,274
Time
35,524
36,630
42,262
45,082
45,210
Total interest-bearing
190,105
188,453
183,102
203,744
320,483
Total Bank of Kansas City
387,529
423,300
422,711
467,664
579,604
TOTAL BOK FINANCIAL
$
21,088,158
$
20,619,443
$
21,059,729
$
21,153,347
$
21,140,859
NET INTEREST MARGIN TREND -- UNAUDITED BOK FINANCIAL CORPORATION
Three Months Ended
Dec. 31, 2015
Sept. 30, 2015
June 30, 2015
March 31, 2015
Dec. 31, 2014
TAX-EQUIVALENT ASSETS YIELDS
Interest-bearing cash and cash equivalents
0.29
%
0.28
%
0.25
%
0.27
%
0.28
%
Trading securities
2.86
%
2.70
%
1.85
%
2.55
%
2.48
%
Investment securities:
Taxable
5.41
%
5.49
%
5.49
%
5.51
%
5.68
%
Tax-exempt
1.53
%
1.54
%
1.56
%
1.56
%
1.56
%
Total investment securities
3.03
%
3.04
%
3.05
%
3.04
%
3.11
%
Available for sale securities:
Taxable
2.02
%
1.99
%
1.92
%
1.95
%
1.97
%
Tax-exempt
4.22
%
4.15
%
4.21
%
4.40
%
4.23
%
Total available for sale securities
2.04
%
2.01
%
1.94
%
1.98
%
1.99
%
Fair value option securities
2.32
%
2.30
%
2.17
%
2.28
%
2.18
%
Restricted equity securities
5.95
%
5.95
%
5.82
%
5.79
%
5.77
%
Residential mortgage loans held for sale
3.85
%
3.79
%
3.37
%
3.41
%
3.87
%
Loans
3.55
%
3.54
%
3.65
%
3.59
%
3.73
%
Allowance for loan losses
Loans, net of allowance
3.60
%
3.59
%
3.70
%
3.64
%
3.78
%
Total tax-equivalent yield on earning assets
2.86
%
2.83
%
2.84
%
2.80
%
2.86
%
COST OF INTEREST-BEARING LIABILITIES
Interest-bearing deposits:
Interest-bearing transaction
0.09
%
0.08
%
0.09
%
0.10
%
0.09
%
Savings
0.09
%
0.10
%
0.11
%
0.10
%
0.11
%
Time
1.26
%
1.33
%
1.36
%
1.46
%
1.47
%
Total interest-bearing deposits
0.32
%
0.34
%
0.35
%
0.37
%
0.38
%
Funds purchased
0.11
%
0.08
%
0.08
%
0.09
%
0.08
%
Repurchase agreements
0.04
%
0.03
%
0.03
%
0.04
%
0.04
%
Other borrowings
0.38
%
0.30
%
0.31
%
0.32
%
0.32
%
Subordinated debt
1.13
%
1.04
%
2.21
%
2.52
%
2.50
%
Total cost of interest-bearing liabilities
0.34
%
0.32
%
0.35
%
0.38
%
0.39
%
Tax-equivalent net interest revenue spread
2.52
%
2.51
%
2.49
%
2.42
%
2.47
%
Effect of noninterest-bearing funding sources and other
0.12
%
0.10
%
0.12
%
0.13
%
0.14
%
Tax-equivalent net interest margin
2.64
%
2.61
%
2.61
%
2.55
%
2.61
%
Yield calculations are shown on a tax equivalent basis at the statutory federal and state rates for the periods presented. The yield calculations exclude security trades that have been recorded on trade date with no corresponding interest income and the unrealized gains and losses. The yield calculation also includes average loan balances for which the accrual of interest has been discontinued and are net of unearned income. Yield/rate calculations are generally based on the conventions that determine how interest income and expense is accrued.
CREDIT QUALITY INDICATORS BOK FINANCIAL CORPORATION (in thousands, except ratios)
Three Months Ended
Dec. 31, 2015
Sept. 30, 2015
June 30, 2015
March 31, 2015
Dec. 31, 2014
Nonperforming assets:
Nonaccruing loans:
Commercial
$
76,424
$
33,798
$
24,233
$
13,880
$
13,527
Commercial real estate
9,001
10,956
20,139
19,902
18,557
Residential mortgage
61,240
44,099
45,969
46,487
48,121
Personal
463
494
550
464
566
Total nonaccruing loans
147,128
89,347
90,891
80,733
80,771
Accruing renegotiated loans guaranteed by U.S. government agencies
74,049
81,598
82,368
80,287
73,985
Real estate and other repossessed assets:
Guaranteed by U.S. government agencies1
—
—
—
—
49,898
Other
30,731
33,116
35,499
45,551
51,963
Total real estate and other repossessed assets
30,731
33,116
35,499
45,551
101,861
Total nonperforming assets
$
251,908
$
204,061
$
208,758
$
206,571
$
256,617
Total nonperforming assets excluding those guaranteed by U.S. government agencies
$
155,959
$
118,578
$
122,673
$
123,028
$
129,022
Nonaccruing loans by loan portfolio sector:
Commercial:
Energy
$
61,189
$
17,880
$
6,841
$
1,875
$
1,416
Services
10,290
10,692
10,944
4,744
5,201
Healthcare
1,072
1,218
1,278
1,558
1,380
Wholesale/retail
2,919
3,058
4,166
4,401
4,149
Manufacturing
331
352
379
417
450
Other commercial and industrial
623
598
625
885
931
Total commercial
76,424
33,798
24,233
13,880
13,527
Commercial real estate:
Retail
1,319
1,648
3,826
3,857
3,926
Multifamily
274
185
195
—
—
Office
651
684
2,360
2,410
3,420
Industrial
76
76
76
76
—
Residential construction and land development
4,409
4,748
9,367
9,598
5,299
Other commercial real estate
2,272
3,615
4,315
3,961
5,912
Total commercial real estate
9,001
10,956
20,139
19,902
18,557
Residential mortgage:
Permanent mortgage
28,984
30,660
32,187
33,365
34,845
Permanent mortgage guaranteed by U.S. government agencies
21,900
3,885
3,717
3,256
3,712
Home equity
10,356
9,554
10,065
9,866
9,564
Total residential mortgage
61,240
44,099
45,969
46,487
48,121
Personal
463
494
550
464
566
Total nonaccruing loans
$
147,128
$
89,347
$
90,891
$
80,733
$
80,771
Performing loans 90 days past due2
$
1,207
$
101
$
99
$
523
$
125
Gross charge-offs
$
(4,851
)
$
(5,274
)
$
(2,877
)
$
(2,169
)
$
(7,224
)
Recoveries
1,870
3,521
2,206
10,523
5,036
Net recoveries (charge-offs)
$
(2,981
)
$
(1,753
)
$
(671
)
$
8,354
$
(2,188
)
Provision for credit losses
$
22,500
$
7,500
$
4,000
$
—
$
—
Allowance for loan losses to period end loans
1.41
%
1.33
%
1.33
%
1.35
%
1.33
%
Combined allowance for credit losses to period end loans
1.43
%
1.35
%
1.34
%
1.35
%
1.34
%
Nonperforming assets to period end loans and repossessed assets
1.58
%
1.33
%
1.38
%
1.40
%
1.79
%
Net charge-offs (annualized) to average loans
0.08
%
0.05
%
0.02
%
(0.23
)%
0.06
%
Allowance for loan losses to nonaccruing loans2
180.09
%
238.84
%
230.67
%
255.15
%
245.34
%
Combined allowance for credit losses to nonaccruing loans2
181.46
%
243.05
%
231.68
%
256.39
%
246.94
%
1 Approximately $50 million was reclassified from Real estate and other repossessed assets to Receivables on the balance sheet on January 1, 2015 with the adoption of Financial Accounting Standards Board Update No. 2014-14, Classification of Certain Government Guaranteed Mortgage Loans Upon Foreclosure ("ASU 2014-14"). Upon foreclosure of loans for which the loan balance is expected to be recovered from the guarantee by a U.S. government agency, the loan balance will be directly reclassified to other receivables without including such foreclosed assets in real estate and other repossessed assets.
2 Excludes residential mortgage loans guaranteed by agencies of the U.S. government.
For Further Information Contact:
Joseph Crivelli
Investor Relations
(918) 595-3027
Andrea Myers
Corporate Communications
(918) 594-7794
Source: GlobeNewswire
(January 27, 2016 - 8:01 AM EST)