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 January 27, 2016 - 8:01 AM EST
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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 securities150,402  179,098  127,391  140,968  164,502 
Investment securities602,369  616,091  628,489  642,825  650,911 
Available for sale securities8,971,090  8,942,261  9,063,006  9,101,464  9,161,901 
Fair value option securities435,449  429,951  435,294  404,775  221,773 
Restricted equity securities262,461  255,610  221,911  179,385  182,737 
Residential mortgage loans held for sale310,425  401,359  464,269  348,054  321,746 
Loans:         
Commercial10,024,756  9,685,768  9,634,306  9,308,307  8,886,952 
Commercial real estate3,186,629  3,198,200  2,989,615  2,909,565  2,665,547 
Residential mortgage1,835,195  1,847,696  1,857,464  1,909,998  1,904,777 
Personal540,418  460,647  423,967  426,712  424,729 
Total loans15,586,998  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, net15,379,842  14,989,482  14,706,952  14,359,634  13,691,218 
Total earning assets28,107,983  27,852,463  27,649,768  27,266,651  26,484,964 
Cash and due from banks514,629  487,283  492,737  513,734  528,595 
Derivative contracts, net657,780  669,264  475,687  447,565  352,565 
Cash surrender value of bank-owned life insurance301,793  299,424  297,022  294,803  292,411 
Receivable on unsettled securities sales62,228  64,591  94,374  99,706  69,109 
Other assets1,435,763  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 transaction9,527,491  9,760,839  10,063,589  10,338,396  9,730,564 
Savings382,284  379,828  381,833  365,835  346,132 
Time2,482,714  2,557,874  2,651,820  2,659,323  2,647,147 
Total deposits20,705,450  20,693,148  21,093,959  21,249,039  20,698,008 
Funds purchased73,220  70,281  63,312  69,730  71,728 
Repurchase agreements623,921  672,085  773,977  1,000,839  996,308 
Other borrowings4,957,175  4,779,981  4,001,479  3,084,214  3,021,094 
Subordinated debentures226,332  226,296  307,903  348,007  347,960 
Derivative contracts, net632,699  597,908  455,431  418,848  321,367 
Due on unsettled securities purchases248,811  90,135  151,369  205,096  137,566 
Other liabilities251,953  240,704  235,173  243,370  228,021 
TOTAL LIABILITIES27,719,561  27,370,538  27,082,603  26,619,143  25,822,052 
Total equity3,360,615  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 expense15,521  16,956  63,474  67,045 
Net interest revenue181,261  169,664  703,354  665,194 
Provision for credit losses22,500    34,000   
Net interest revenue after provision for credit losses158,761  169,664  669,354  665,194 
Other operating revenue:       
Brokerage and trading revenue30,255  30,602  129,556  134,437 
Transaction card revenue32,319  31,467  128,621  123,689 
Fiduciary and asset management revenue31,165  30,649  126,153  115,652 
Deposit service charges and fees22,813  22,581  90,431  90,911 
Mortgage banking revenue25,039  30,105  134,375  109,093 
Bank-owned life insurance2,348  2,380  9,304  9,086 
Other revenue11,885  10,071  40,579  38,451 
Total fees and commissions155,824  157,855  659,019  621,319 
Gain on other assets, net2,329  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 rights7,416  (10,821) (4,853) (16,445)
Gain on available for sale securities, net2,132  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 income387    1,076   
Net impairment losses recognized in earnings(1,727) (373) (1,819) (373)
Total other operating revenue161,115  151,903  666,853  621,958 
Other operating expense:       
Personnel133,182  125,741  523,487  476,931 
Business promotion8,416  7,498  27,851  26,649 
Charitable contributions to BOKF Foundation  1,847  796  4,267 
Professional fees and services10,357  11,058  40,123  44,440 
Net occupancy and equipment19,356  22,655  76,016  77,232 
Insurance5,415  4,777  20,375  18,578 
Data processing and communications31,248  30,259  122,383  115,225 
Printing, postage and supplies3,108  3,168  13,498  13,518 
Net losses (gains) and operating expenses of repossessed assets343  (1,497) 1,446  6,019 
Amortization of intangible assets1,090  1,100  4,359  3,965 
Mortgage banking costs11,496  11,166  38,997  31,705 
Other expense8,547  8,105  35,233  28,993 
Total other operating expense232,558  225,877  904,564  847,522 
        
Net income before taxes87,318  95,690  431,643  439,630 
Federal and state income taxes26,242  30,109  139,384  144,151 
        
Net income61,076  65,581  292,259  295,479 
Net income attributable to non-controlling interests1,475  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:       
Basic66,378,380  68,481,630  67,594,689  68,394,194 
Diluted66,467,729  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 112.13% 12.78% 13.01% 13.07%  N/A 
Tier 112.13% 12.78% 13.01% 13.07% 13.33%
Total capital13.30% 13.89% 14.11% 14.39% 14.66%
Leverage ratio9.25% 9.55% 9.75% 9.74% 9.96%
Tangible common equity ratio29.02% 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 ratio48.60% 38.41% 36.40% 38.68% 45.27%
Shares outstanding, net65,894,032  67,713,031  68,945,139  68,922,314  69,113,736 
          
Stock buy-back program:         
Shares repurchased1,874,074  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 assets0.76% 0.97% 1.04% 1.01% 0.88%
Return on average equity7.12% 8.84% 9.50% 9.15% 7.79%
Net interest margin2.64% 2.61% 2.61% 2.55% 2.61%
Efficiency ratio67.93% 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, net429,370  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, net429,370  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 ratio9.02% 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 fundings41% 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 revenue10,090  18,717  23,113  26,040  17,189 
Servicing revenue14,949  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 rights7,416  (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 expense15,521  15,028  16,082  16,843  16,956 
Net interest revenue181,261  178,636  175,731  167,726  169,664 
Provision for credit losses22,500  7,500  4,000     
Net interest revenue after provision for credit losses158,761  171,136  171,731  167,726  169,664 
Other operating revenue:         
Brokerage and trading revenue30,255  31,582  36,012  31,707  30,602 
Transaction card revenue32,319  32,514  32,778  31,010  31,467 
Fiduciary and asset management revenue31,165  30,807  32,712  31,469  30,649 
Deposit service charges and fees22,813  23,606  22,328  21,684  22,581 
Mortgage banking revenue25,039  33,170  36,846  39,320  30,105 
Bank-owned life insurance2,348  2,360  2,398  2,198  2,380 
Other revenue11,885  10,618  9,473  8,603  10,071 
Total fees and commissions155,824  164,657  172,547  165,991  157,855 
Gain on other assets, net2,329  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 rights7,416  (11,757) 8,010  (8,522) (10,821)
Gain on available for sale securities, net2,132  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 income387      689   
Net impairment losses recognized in earnings(1,727)     (92) (373)
Total other operating revenue161,115  163,436  176,285  166,017  151,903 
Other operating expense:         
Personnel133,182  129,062  132,695  128,548  125,741 
Business promotion8,416  5,922  7,765  5,748  7,498 
Contribution to BOKF Foundation  796      1,847 
Professional fees and services10,357  10,147  9,560  10,059  11,058 
Net occupancy and equipment19,356  18,689  18,927  19,044  22,655 
Insurance5,415  4,864  5,116  4,980  4,777 
Data processing and communications31,248  30,708  30,655  29,772  30,259 
Printing, postage and supplies3,108  3,376  3,553  3,461  3,168 
Net losses (gains) and operating expenses of repossessed assets343  267  223  613  (1,497)
Amortization of intangible assets1,090  1,089  1,090  1,090  1,100 
Mortgage banking costs11,496  9,107  8,227  10,167  11,166 
Other expense8,547  10,601  9,302  6,783  8,105 
Total other operating expense232,558  224,628  227,113  220,265  225,877 
Net income before taxes87,318  109,944  120,903  113,478  95,690 
Federal and state income taxes26,242  34,128  40,630  38,384  30,109 
Net income61,076  75,816  80,273  75,094  65,581 
Net income attributable to non-controlling interests1,475  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:         
Basic66,378,380  67,668,076  68,096,341  68,254,780  68,481,630 
Diluted66,467,729  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 estate739,829  677,372  614,995  612,639  603,610 
Residential mortgage1,409,114  1,405,235  1,413,690  1,442,340  1,467,096 
Personal255,387  185,463  190,909  205,496  206,115 
Total Bank of Oklahoma6,187,017  5,782,461  5,749,000  5,537,028  5,419,510 
          
Bank of Texas:         
Commercial3,908,425  3,752,193  3,738,742  3,709,467  3,549,128 
Commercial real estate1,204,202  1,257,741  1,158,056  1,130,973  1,027,817 
Residential mortgage219,126  222,395  228,683  237,985  235,948 
Personal203,496  194,051  156,260  149,827  154,363 
Total Bank of Texas5,535,249  5,426,380  5,281,741  5,228,252  4,967,256 
          
Bank of Albuquerque:         
Commercial375,839  368,027  392,362  388,005  383,439 
Commercial real estate313,422  312,953  291,953  296,696  296,358 
Residential mortgage120,507  121,232  123,376  127,326  127,999 
Personal11,557  10,477  11,939  12,095  10,899 
Total Bank of Albuquerque821,325  812,689  819,630  824,122  818,695 
          
Bank of Arkansas:         
Commercial92,359  76,044  99,086  91,485  95,510 
Commercial real estate69,320  82,225  85,997  87,034  88,301 
Residential mortgage8,169  8,063  6,999  6,807  7,261 
Personal819  4,921  5,189  5,114  5,169 
Total Bank of Arkansas170,667  171,253  197,271  190,440  196,241 
          
Colorado State Bank & Trust:         
Commercial987,076  1,029,694  1,019,454  1,008,316  977,961 
Commercial real estate223,946  229,835  229,721  209,272  194,553 
Residential mortgage53,782  50,138  54,135  55,925  57,119 
Personal23,384  30,683  30,373  27,792  27,918 
Total Colorado State Bank & Trust1,288,188  1,340,350  1,333,683  1,301,305  1,257,551 
          
Bank of Arizona:         
Commercial606,733  608,235  572,477  519,767  547,524 
Commercial real estate507,523  482,918  472,061  432,269  355,140 
Residential mortgage44,047  41,722  37,493  36,161  35,872 
Personal31,060  17,609  12,875  12,394  12,883 
Total Bank of Arizona1,189,363  1,150,484  1,094,906  1,000,591  951,419 
          
Bank of Kansas City:         
Commercial499,412  448,838  424,194  397,570  399,419 
Commercial real estate200,791  192,023  180,714  166,581  162,371 
Residential mortgage22,148  20,210  20,352  20,455  18,217 
Personal26,994  22,753  22,645  17,792  17,358 
Total Bank of Kansas City749,345  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:         
Transaction5,971,819  5,783,258  6,018,381  6,199,468  6,117,886 
Savings226,733  225,580  225,694  227,855  206,357 
Time1,202,274  1,253,137  1,380,566  1,372,250  1,301,194 
Total interest-bearing7,400,826  7,261,975  7,624,641  7,799,573  7,625,437 
Total Bank of Oklahoma11,534,346  11,096,120  11,692,729  11,782,107  11,454,256 
          
Bank of Texas:         
Demand2,627,764  2,689,493  2,565,234  2,511,032  2,639,732 
Interest-bearing:         
Transaction2,132,099  1,996,223  2,020,817  2,062,063  2,065,723 
Savings77,902  74,674  74,373  76,128  72,037 
Time549,740  554,106  536,844  547,371  547,316 
Total interest-bearing2,759,741  2,625,003  2,632,034  2,685,562  2,685,076 
Total Bank of Texas5,387,505  5,314,496  5,197,268  5,196,594  5,324,808 
          
Bank of Albuquerque:         
Demand487,286  520,785  508,224  537,466  487,819 
Interest-bearing:         
Transaction563,723  529,862  537,156  535,791  519,544 
Savings43,672  41,380  41,802  42,088  37,471 
Time267,821  281,426  285,890  290,706  295,798 
Total interest-bearing875,216  852,668  864,848  868,585  852,813 
Total Bank of Albuquerque1,362,502  1,373,453  1,373,072  1,406,051  1,340,632 
          
Bank of Arkansas:         
  Demand27,252  25,397  19,731  31,002  35,996 
  Interest-bearing:         
  Transaction202,857  290,728  284,349  253,691  158,115 
  Savings1,747  1,573  1,712  1,677  1,936 
  Time24,983  26,203  28,220  28,277  28,520 
  Total interest-bearing229,587  318,504  314,281  283,645  188,571 
Total Bank of Arkansas256,839  343,901  334,012  314,647  224,567 
          
Colorado State Bank & Trust:         
Demand497,318  430,675  403,491  412,532  445,755 
Interest-bearing:         
Transaction616,697  655,206  601,741  604,665  631,874 
Savings31,927  31,398  31,285  31,524  29,811 
Time296,224  320,279  322,432  340,006  353,998 
Total interest-bearing944,848  1,006,883  955,458  976,195  1,015,683 
Total Colorado State Bank & Trust1,442,166  1,437,558  1,358,949  1,388,727  1,461,438 
          
Bank of Arizona:         
Demand326,324  306,425  352,024  271,091  369,115 
Interest-bearing:         
Transaction358,556  293,319  298,073  295,480  347,214 
Savings2,893  4,121  2,726  2,900  2,545 
Time29,498  26,750  28,165  28,086  36,680 
Total interest-bearing390,947  324,190  328,964  326,466  386,439 
Total Bank of Arizona717,271  630,615  680,988  597,557  755,554 
          
Bank of Kansas City:         
Demand197,424  234,847  239,609  263,920  259,121 
Interest-bearing:         
Transaction153,203  150,253  139,260  157,044  273,999 
Savings1,378  1,570  1,580  1,618  1,274 
Time35,524  36,630  42,262  45,082  45,210 
Total interest-bearing190,105  188,453  183,102  203,744  320,483 
Total Bank of Kansas City387,529  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 equivalents0.29% 0.28% 0.25% 0.27% 0.28%
Trading securities2.86% 2.70% 1.85% 2.55% 2.48%
Investment securities:              
Taxable5.41% 5.49% 5.49% 5.51% 5.68%
Tax-exempt1.53% 1.54% 1.56% 1.56% 1.56%
Total investment securities3.03% 3.04% 3.05% 3.04% 3.11%
Available for sale securities:              
Taxable2.02% 1.99% 1.92% 1.95% 1.97%
Tax-exempt4.22% 4.15% 4.21% 4.40% 4.23%
Total available for sale securities2.04% 2.01% 1.94% 1.98% 1.99%
Fair value option securities2.32% 2.30% 2.17% 2.28% 2.18%
Restricted equity securities5.95% 5.95% 5.82% 5.79% 5.77%
Residential mortgage loans held for sale3.85% 3.79% 3.37% 3.41% 3.87%
Loans3.55% 3.54% 3.65% 3.59% 3.73%
Allowance for loan losses              
Loans, net of allowance3.60% 3.59% 3.70% 3.64% 3.78%
Total tax-equivalent yield on earning assets2.86% 2.83% 2.84% 2.80% 2.86%
          
COST OF INTEREST-BEARING LIABILITIES         
Interest-bearing deposits:         
Interest-bearing transaction0.09% 0.08% 0.09% 0.10% 0.09%
Savings0.09% 0.10% 0.11% 0.10% 0.11%
Time1.26% 1.33% 1.36% 1.46% 1.47%
Total interest-bearing deposits0.32% 0.34% 0.35% 0.37% 0.38%
Funds purchased0.11% 0.08% 0.08% 0.09% 0.08%
Repurchase agreements0.04% 0.03% 0.03% 0.04% 0.04%
Other borrowings0.38% 0.30% 0.31% 0.32% 0.32%
Subordinated debt1.13% 1.04% 2.21% 2.52% 2.50%
Total cost of interest-bearing liabilities0.34% 0.32% 0.35% 0.38% 0.39%
Tax-equivalent net interest revenue spread2.52% 2.51% 2.49% 2.42% 2.47%
Effect of noninterest-bearing funding sources and other0.12% 0.10% 0.12% 0.13% 0.14%
Tax-equivalent net interest margin2.64% 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 estate9,001  10,956  20,139  19,902  18,557 
Residential mortgage61,240  44,099  45,969  46,487  48,121 
Personal463  494  550  464  566 
Total nonaccruing loans147,128  89,347  90,891  80,733  80,771 
Accruing renegotiated loans guaranteed by U.S. government agencies74,049  81,598  82,368  80,287  73,985 
Real estate and other repossessed assets:         
Guaranteed by U.S. government agencies1        49,898 
Other30,731  33,116  35,499  45,551  51,963 
Total real estate and other repossessed assets30,731  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 
Services10,290  10,692  10,944  4,744  5,201 
Healthcare1,072  1,218  1,278  1,558  1,380 
Wholesale/retail2,919  3,058  4,166  4,401  4,149 
Manufacturing331  352  379  417  450 
Other commercial and industrial623  598  625  885  931 
Total commercial76,424  33,798  24,233  13,880  13,527 
Commercial real estate:         
Retail1,319  1,648  3,826  3,857  3,926 
Multifamily274  185  195     
Office651  684  2,360  2,410  3,420 
Industrial76  76  76  76   
Residential construction and land development4,409  4,748  9,367  9,598  5,299 
Other commercial real estate2,272  3,615  4,315  3,961  5,912 
Total commercial real estate9,001  10,956  20,139  19,902  18,557 
Residential mortgage:         
Permanent mortgage28,984  30,660  32,187  33,365  34,845 
Permanent mortgage guaranteed by U.S. government agencies21,900  3,885  3,717  3,256  3,712 
Home equity10,356  9,554  10,065  9,866  9,564 
Total residential mortgage61,240  44,099  45,969  46,487  48,121 
Personal463  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) $(7,224)
Recoveries1,870  3,521  2,206  10,523  5,036 
Net recoveries (charge-offs)$(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 loans1.41% 1.33% 1.33% 1.35% 1.33%
Combined allowance for credit losses to period end loans1.43% 1.35% 1.34% 1.35% 1.34%
Nonperforming assets to period end loans and repossessed assets1.58% 1.33% 1.38% 1.40% 1.79%
Net charge-offs (annualized) to average loans0.08% 0.05% 0.02% (0.23)% 0.06%
Allowance for loan losses to nonaccruing loans2180.09% 238.84% 230.67% 255.15% 245.34%
Combined allowance for credit losses to nonaccruing loans2181.46% 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

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Source: GlobeNewswire (January 27, 2016 - 8:01 AM EST)

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