BOK Financial Reports Quarterly Earnings of $75 Million
Board of Directors Approves Increase in Quarterly Cash Dividend and Authorizes Additional Share Buyback
TULSA, Okla., Oct. 28, 2015 (GLOBE NEWSWIRE) -- BOK Financial Corporation (NASDAQ:BOKF) reported net income of $74.9 million or $1.09 per diluted share for the third quarter of 2015. Net income was $79.2 million or $1.15 per diluted share for the second quarter of 2015 and $75.6 million or $1.09 per diluted share for the third quarter of 2014.
Steven G. Bradshaw, president and chief executive officer, stated, “BOK Financial posted solid earnings in the third quarter despite lower revenue from certain fee-generating businesses. Annualized loan growth was in the mid-single digits as expected, credit quality across our loan portfolio remained strong, and we continue to carefully manage expenses. We deployed $109 million of excess capital through dividends and share buybacks while we work to identify quality acquisition targets. To that end, our board of directors has authorized a 2.4 percent increase in our quarterly dividend and a new 5 million share buyback authorization. During the third quarter, we repurchased 1.25 million shares in the open market at a weighted average price of $63.79.”
Highlights of third quarter of 2015 included:
Net interest revenue totaled $178.6 million for the third quarter of 2015, up $2.9 million over the second quarter of 2015. Net interest margin was 2.61 percent for the third quarter of 2015, unchanged compared to the second quarter of 2015. Average earning assets increased $203 million during the third quarter of 2015, primarily related to a $287 million increase in average loan balances.
Fees and commissions revenue totaled $164.7 million for the third quarter of 2015, a decrease of $7.9 million compared to the prior quarter. Brokerage and trading revenue decreased $4.4 million and mortgage banking revenue decreased $3.7 million.
Changes in the fair value of mortgage servicing rights, net of economic hedges, decreased pre-tax net income by $4.4 million in the third quarter of 2015 and $1.1 million in the second quarter of 2015.
Operating expense was $224.6 million for the third quarter, a decrease of $2.5 million compared to the previous quarter, primarily due to lower incentive compensation expense.
A $7.5 million provision for credit losses was recorded in the third quarter of 2015 compared to a $4.0 million provision in the second quarter of 2015. The additional provision was primarily due to credit migration and loan portfolio growth during the third quarter. Net loans charged off totaled $1.8 million in the third quarter of 2015, compared to $671 thousand in the previous quarter.
The combined allowance for credit losses totaled $208 million or 1.35 percent of outstanding loans at September 30, 2015 compared to $202 million or 1.34 percent of outstanding loans at June 30, 2015. The portion of the combined allowance attributed to the energy portfolio totaled 2.05 percent of outstanding energy loans at September 30, an increase from 1.74 percent of outstanding energy loans at June 30.
Nonperforming assets that are not guaranteed by U.S. government agencies totaled $119 million or 0.78 percent of outstanding loans and repossessed assets (excluding those guaranteed by U.S. government agencies) at September 30, 2015 and $123 million or 0.82 percent of outstanding loans and repossessed assets (excluding those guaranteed by U.S. government agencies) at June 30, 2015.
Average loans increased by $287 million over the previous quarter, primarily due to growth in commercial real estate loans. Commercial and personal loans also grew over the previous quarter. Period-end outstanding loan balances also increased $243 million to $15.4 billion at September 30, 2015.
Average deposits decreased $401 million compared to the previous quarter, primarily due to a decrease in interest-bearing transaction accounts and time deposits. Period-end deposits were $20.6 billion at September 30, 2015, a decrease of $440 million from June 30, 2015.
New regulatory capital rules were effective for BOK Financial on January 1, 2015 and components of these rules will phase in through January 1, 2019. The new capital rules establish a 7 percent threshold for the common equity Tier 1 capital ratio. The common equity Tier 1 capital ratio at September 30 was 12.78 percent. Other ratios measured under the new regulatory capital rules were Tier 1 capital ratio, 12.78 percent, total capital ratio, 13.89 percent and leverage ratio, 9.55 percent. At June 30, 2015, the common equity Tier 1 capital ratio was 13.01 percent, the Tier 1 capital ratio was 13.01 percent, total capital ratio was 14.11 percent, and leverage ratio was 9.75 percent.
The company paid a regular quarterly cash dividend of $29 million or $0.42 per common share during the third quarter of 2015. On October 27, 2015, the board of directors approved an increase in the quarterly cash dividend to $0.43 per common share payable on or about November 27, 2015 to shareholders of record as of November 13, 2015.
The company repurchased 1,258,348 common shares at an average price of $63.79 per share during the third quarter of 2015, completing the existing board approval for share repurchases. No shares were repurchased during the second quarter of 2015. On October 27, 2015, the board of directors authorized the Company to purchase up to five million additional common shares, subject to market conditions, securities law and other regulatory compliance limitations.
Net Interest Revenue
Net interest revenue was $178.6 million for the third quarter of 2015, up $2.9 million over the second quarter of 2015.
Net interest margin was 2.61 percent for the third quarter of 2015, unchanged compared to the second quarter of 2015. The yield on average earning assets was 2.83 percent, a decrease of 1 basis point compared to the prior quarter. The loan portfolio yield decreased 11 basis points compared to the previous quarter to 3.54 percent. The second quarter of 2015 included a 6 basis point benefit from $2.3 million of nonaccrual interest recoveries. Competitive loan pricing and low interest rates continue to impact loan yields. The yield on the available for sale securities portfolio increased 7 basis points to 2.01 percent. Funding costs were 0.32 percent, down 3 basis points compared to the prior quarter.
Average earning assets increased $203 million during the third quarter of 2015, primarily related to a $287 million increase in average loan portfolio balances. Trading securities, interest-bearing cash and cash equivalents and restricted equity securities also increased over the prior quarter, partially offset by a decrease in the average balance of loans held for sale. The average balance of the available for sale securities portfolio decreased by $121 million during the quarter. Average deposit balances decreased $401 million compared to the second quarter of 2015. The average balance of borrowed funds increased $684 million. The average balance of subordinated debentures decreased $82 million related to the impact of $122 million of fixed rate subordinated debt that matured on June 1, 2015.
Fees and Commissions Revenue
Fees and commissions revenue totaled $164.7 million for the third quarter of 2015, a decrease of $7.9 million compared to the second quarter of 2015.
Brokerage and trading revenue totaled $31.6 million, a decrease of $4.4 million compared to the prior quarter. Investment banking revenue, including loan syndication and underwriting fees, decreased $2.5 million primarily due to the timing and volume of transactions completed. Customer hedging revenue decreased $2.4 million primarily due to programs provided to our mortgage banking customers. Securities trading revenue increased $303 thousand and retail brokerage fees were up $113 thousand.
Mortgage banking revenue totaled $33.2 million for the third quarter of 2015, a decrease of $3.7 million compared to the second quarter of 2015. Revenue from mortgage loan production decreased $4.4 million. Increased average mortgage interest rates reduced mortgage production volume. Total mortgage loans originated during the third quarter decreased $214 million or 12 percent compared to the previous quarter and outstanding mortgage loan commitments at September 30 decreased $107 million or 13 percent from June 30. In addition, mortgage production revenue decreased due to a shift toward lower-margin correspondent lending.
Deposit service charges and fees grew by $1.3 million to $23.6 million for the third quarter, primarily due to increased overdraft fees. Fiduciary and asset management revenue decreased $1.9 million to $30.8 million for the third quarter, primarily due to the seasonal timing of tax service fees which were recognized in the previous quarter and a decrease in the fair value of assets under management.
Operating Expense
Total operating expense was $224.6 million for the third quarter of 2015, a decrease of $2.5 million compared to the second quarter of 2015.
Personnel costs decreased by $3.6 million compared to the second quarter of 2015. Incentive compensation expense decreased $2.7 million and payroll tax expense decreased $1.6 million. Regular compensation expense increased $1.1 million.
Non-personnel expense increased $1.1 million compared to the second quarter of 2015. Non-personnel expense included a $2.6 million charge to settle litigation and a $796 thousand contribution to the BOKF Foundation. Additionally, mortgage banking expense increased $1.2 million and business promotion expense decreased $1.8 million.
Loans, Deposits and Capital
Loans
Outstanding loans were $15.4 billion at September 30, 2015, an increase of $243 million over the previous quarter, primarily due to growth in commercial real estate balances. Personal loan balances grew over the prior quarter, partially offset by a decrease in residential mortgage loan balances.
Outstanding commercial loan balances were largely unchanged compared to June 30, 2015. Healthcare sector loans grew by $96 million, other commercial and industrial loans increased $60 million and service sector loans increased by $25 million over the prior quarter. Wholesale/retail sector loans decreased $72 million. Energy loan balances decreased $64 million compared to June 30, 2015. Unfunded energy loan commitments increased by $147 million during the third quarter to $2.7 billion. All other unfunded commercial loan commitments totaled $4.1 billion at September 30, 2015, a decrease of $80 million compared to June 30, 2015.
Commercial real estate loans grew by $202 million or 7 percent over June 30, 2015. Retail sector loan balances increased $81 million and loans secured by industrial facilities grew by $76 million. Loans secured by office buildings increased $63 million and multifamily residential loans increased $47 million. This growth was partially offset by a $71 million decrease in other commercial real estate balances. Unfunded commercial real estate loan commitments totaled $941 million at September 30, 2015, an increase of $129 million over June 30, 2015.
Norm Bagwell, executive vice president, regional banks, stated, “Loan growth in the third quarter was in line with our expectations, as economic conditions and deal flow remained solid across the footprint. Arizona and Texas continued their recent strong growth track record while our Kansas City market also posted double-digit annualized loan growth for the second consecutive quarter.”
Stacy Kymes, executive vice president, corporate banking, added, “Energy loans outstanding were lower in the third quarter, in line with our expectations; however, healthcare and commercial real estate grew at a double digit rate. Credit quality remains strong, as nonaccrual loans and nonperforming assets were both down on a sequential basis. Also as expected, we are seeing some continued credit migration in our energy book. However, we continue to believe that we are appropriately reserved for losses in the portfolio.”
Deposits
Deposits totaled $20.6 billion at September 30, 2015, a decrease of $440 million compared to June 30, 2015. Demand deposit balances decreased $115 million, interest-bearing transaction deposits decreased $201 million and time deposits decreased $126 million. Among the lines of business, Wealth Management deposits decreased $203 million and Commercial Banking deposits decreased $156 million compared to June 30. Consumer Banking deposits increased $38 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 12.78 percent at September 30, 2015. In addition, the Company's Tier 1 capital ratio was 12.78 percent, total capital ratio was 13.89 percent and leverage ratio was 9.55 percent at September 30, 2015. At June 30, 2015, the Company's common equity Tier 1 capital ratio was 13.01 percent, Tier 1 capital ratio was 13.01 percent, total capital ratio was 14.11 percent, and leverage ratio was 9.75 percent.
In addition, the Company's tangible common equity ratio, a non-GAAP measure, was 9.78 percent at September 30, 2015 and 9.72 percent at June 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 $204 million or 1.33 percent of outstanding loans and repossessed assets at September 30, 2015 compared to $209 million or 1.38 percent at June 30, 2015. Nonperforming assets that are not guaranteed by U.S. government agencies totaled $119 million or 0.78 percent of outstanding loans and repossessed assets (excluding those guaranteed by U.S. government agencies) at September 30, 2015 and $123 million or 0.82 percent at June 30, 2015, a decrease of $4.1 million.
Nonaccruing loans totaled $89 million or 0.58 percent of outstanding loans at September 30, 2015, compared to $91 million or 0.60 percent of outstanding loans at June 30, 2015. An $11 million increase in nonaccruing energy loans was largely offset by a $9.2 million decrease in nonaccruing commercial real estate loans. Overall, new nonaccruing loans identified in the third quarter totaled $23 million, offset by $12 million in payments received, $6.4 million in foreclosures and repossessions and $5.3 million in charge-offs. At September 30, 2015, nonaccruing commercial loans totaled $34 million or 0.34 percent of outstanding commercial loans, nonaccruing commercial real estate loans totaled $11 million or 0.34 percent of outstanding commercial real estate loans and nonaccruing residential mortgage loans totaled $44 million or 2.36 percent of outstanding residential mortgage 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, decreased to $120 million at September 30 from $181 million at June 30. The decrease largely resulted from $64 million of payments received during the third quarter. Potential problem energy loans decreased to $96 million from $124 million.
Net loans charged off totaled $1.8 million for the third quarter of 2015, compared to $671 thousand for the second quarter of 2015. Gross charge-offs totaled $5.3 million for the third quarter, compared to $2.9 million for the previous quarter. Recoveries totaled $3.5 million for the third quarter of 2015 and $2.2 million for the second quarter of 2015.
After evaluating all credit factors, the Company recorded a $7.5 million provision for credit losses during the third quarter of 2015, primarily due to credit migration in the energy portfolio and loan portfolio growth. The Company recorded a $4.0 million provision for credit losses in the previous quarter.
The combined allowance for credit losses totaled $208 million or 1.35 percent of outstanding loans and 232 percent of nonaccruing loans at September 30, 2015. The allowance for loan losses was $204 million and the accrual for off-balance sheet credit losses was $3.6 million. The portion of the combined allowance attributed to the energy portfolio totaled 2.05 percent of outstanding energy loans at September 30, an increase from 1.74 percent of outstanding energy loans at June 30.
Real estate and other repossessed assets totaled $33 million at September 30, 2015, primarily consisting of $16 million of one-to-four family residential properties and $11 million of developed commercial real estate properties.
Securities and Derivatives
The fair value of the available for sale securities portfolio totaled $8.8 billion at September 30, 2015, a decrease of $199 million compared to June 30, 2015. At September 30, 2015, the available for sale portfolio consisted primarily of $5.8 billion of residential mortgage-backed securities fully backed by U.S. government agencies and $2.7 billion of commercial mortgage-backed securities fully backed by U.S. government agencies.
At September 30, 2015 the available for sale securities portfolio had a net unrealized gain of $145 million compared to a net unrealized gain of $89 million at June 30, 2015 primarily due to changes in interest rates during the quarter. Net unrealized gains on residential mortgage-backed securities issued by U.S. government agencies at September 30, 2015 increased $26 million during the third quarter to $105 million. Commercial mortgage-backed securities had a net unrealized gain of $27 million at September 30, 2015, compared to a net unrealized loss of $4.1 million at June 30, 2015.
In the third quarter of 2015, the Company recognized a $2.2 million net gain from the sale of $451 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 will perform better in the current rate environment. The Company recognized $3.4 million of net gains from sales of $379 million of available for sale securities in the second quarter of 2015.
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 fair value of mortgage servicing rights decreased by $11.8 million during the third quarter of 2015, primarily due to a decrease in the short-term escrow earnings rates and a decrease in the period-end 30 year mortgage interest rates at September 30 compared to June 30. The value of securities and interest rate derivative contracts held as an economic hedge increased by $7.4 million during the quarter. The fair value of mortgage servicing rights, net of economic hedges, decreased $1.1 million in the second quarter of 2015, primarily due to changes in interest rates partially offset by increased mortgage servicing costs.
Conference Call and Webcast
The Company will hold a conference call at 9 a.m. central time on Wednesday, October 28, 2015 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 # 10074072.
About BOK Financial Corporation
BOK Financial Corporation 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, MBM Advisors 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 September 30, 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)
Sept. 30, 2015
June 30, 2015
Sept. 30, 2014
ASSETS
Cash and due from banks
$
489,268
$
443,577
$
557,658
Interest-bearing cash and cash equivalents
1,830,105
2,119,072
2,007,901
Trading securities
181,131
158,209
169,712
Investment securities
612,384
625,664
655,091
Available for sale securities
8,801,089
9,000,117
9,306,886
Fair value option securities
427,760
436,324
175,761
Restricted equity securities
263,587
231,520
189,587
Residential mortgage loans held for sale
357,414
502,571
373,253
Loans:
Commercial
9,797,422
9,775,721
8,572,038
Commercial real estate
3,235,067
3,033,497
2,724,199
Residential mortgage
1,868,995
1,884,728
1,979,663
Personal
465,957
430,190
407,839
Total loans
15,367,441
15,124,136
13,683,739
Allowance for loan losses
(204,116
)
(201,087
)
(191,244
)
Loans, net of allowance
15,163,325
14,923,049
13,492,495
Premises and equipment, net
294,669
284,238
275,718
Receivables
151,451
149,629
114,374
Goodwill
385,461
385,454
377,780
Intangible assets, net
44,999
46,061
35,476
Mortgage servicing rights
200,049
198,694
173,286
Real estate and other repossessed assets, net
33,116
35,499
97,871
Derivative contracts, net
726,159
630,435
360,809
Cash surrender value of bank-owned life insurance
300,981
298,606
291,583
Receivable on unsettled securities sales
30,009
8,693
94,881
Other assets
273,948
248,151
354,898
TOTAL ASSETS
$
30,566,905
$
30,725,563
$
29,105,020
LIABILITIES AND EQUITY
Deposits:
Demand
$
8,041,767
$
8,156,401
$
8,038,129
Interest-bearing transaction
9,698,849
9,899,777
9,244,709
Savings
380,296
379,172
341,638
Time
2,498,531
2,624,379
2,664,580
Total deposits
20,619,443
21,059,729
20,289,056
Funds purchased
62,297
64,677
85,135
Repurchase agreements
555,677
712,033
1,026,009
Other borrowings
4,635,150
4,332,162
3,484,487
Subordinated debentures
226,314
226,278
347,936
Accrued interest, taxes and expense
158,048
124,568
100,664
Due on unsettled securities purchases
98,351
37,571
8,126
Derivative contracts, net
636,115
620,277
348,687
Other liabilities
159,348
135,435
137,608
TOTAL LIABILITIES
27,150,743
27,312,730
25,827,708
Shareholders' equity:
Capital, surplus and retained earnings
3,291,450
3,323,840
3,219,798
Accumulated other comprehensive income
85,776
51,792
23,295
TOTAL SHAREHOLDERS' EQUITY
3,377,226
3,375,632
3,243,093
Non-controlling interests
38,936
37,201
34,219
TOTAL EQUITY
3,416,162
3,412,833
3,277,312
TOTAL LIABILITIES AND EQUITY
$
30,566,905
$
30,725,563
$
29,105,020
AVERAGE BALANCE SHEETS -- UNAUDITED BOK FINANCIAL CORPORATION (in thousands)
Three Months Ended
Sept. 30, 2015
June 30, 2015
March 31, 2015
Dec. 31, 2014
Sept. 30, 2014
ASSETS
Interest-bearing cash and cash equivalents
$
2,038,611
$
2,002,456
$
2,089,546
$
2,090,176
$
1,217,942
Trading securities
179,098
127,391
140,968
164,502
107,909
Investment securities
616,091
628,489
642,825
650,911
641,375
Available for sale securities
8,942,261
9,063,006
9,101,464
9,161,901
9,526,727
Fair value option securities
429,951
435,294
404,775
221,773
180,268
Restricted equity securities
255,610
221,911
179,385
182,737
142,418
Residential mortgage loans held for sale
401,359
464,269
348,054
321,746
310,924
Loans:
Commercial
9,685,768
9,634,306
9,308,307
8,886,952
8,468,575
Commercial real estate
3,198,200
2,989,615
2,909,565
2,665,547
2,691,318
Residential mortgage
1,847,696
1,857,464
1,909,998
1,904,777
1,955,769
Personal
460,647
423,967
426,712
424,729
402,916
Total loans
15,192,311
14,905,352
14,554,582
13,882,005
13,518,578
Allowance for loan losses
(202,829
)
(198,400
)
(194,948
)
(190,787
)
(191,141
)
Total loans, net
14,989,482
14,706,952
14,359,634
13,691,218
13,327,437
Total earning assets
27,852,463
27,649,768
27,266,651
26,484,964
25,455,000
Cash and due from banks
487,283
492,737
513,734
528,595
493,200
Derivative contracts, net
669,264
475,687
447,565
352,565
288,682
Cash surrender value of bank-owned life insurance
299,424
297,022
294,803
292,411
290,044
Receivable on unsettled securities sales
64,591
94,374
99,706
69,109
63,277
Other assets
1,396,708
1,454,484
1,348,245
1,404,553
1,525,354
TOTAL ASSETS
$
30,769,733
$
30,464,072
$
29,970,704
$
29,132,197
$
28,115,557
LIABILITIES AND EQUITY
Deposits:
Demand
$
7,994,607
$
7,996,717
$
7,885,485
$
7,974,165
$
7,800,350
Interest-bearing transaction
9,760,839
10,063,589
10,338,396
9,730,564
9,473,575
Savings
379,828
381,833
365,835
346,132
342,488
Time
2,557,874
2,651,820
2,659,323
2,647,147
2,610,561
Total deposits
20,693,148
21,093,959
21,249,039
20,698,008
20,226,974
Funds purchased
70,281
63,312
69,730
71,728
320,817
Repurchase agreements
672,085
773,977
1,000,839
996,308
1,027,206
Other borrowings
4,779,981
4,001,479
3,084,214
3,021,094
2,333,961
Subordinated debentures
226,296
307,903
348,007
347,960
347,914
Derivative contracts, net
597,908
455,431
418,848
321,367
270,998
Due on unsettled securities purchases
90,135
151,369
205,096
137,566
124,952
Other liabilities
240,704
235,173
243,370
228,021
214,306
TOTAL LIABILITIES
27,370,538
27,082,603
26,619,143
25,822,052
24,867,128
Total equity
3,399,195
3,381,469
3,351,561
3,310,145
3,248,429
TOTAL LIABILITIES AND EQUITY
$
30,769,733
$
30,464,072
$
29,970,704
$
29,132,197
$
28,115,557
STATEMENTS OF EARNINGS -- UNAUDITED BOK FINANCIAL CORPORATION (in thousands, except per share data)
Three Months Ended
Nine Months Ended
Sept. 30,
Sept. 30,
2015
2014
2015
2014
Interest revenue
$
193,664
$
183,868
$
570,046
$
545,619
Interest expense
15,028
17,077
47,953
50,089
Net interest revenue
178,636
166,791
522,093
495,530
Provision for credit losses
7,500
—
11,500
—
Net interest revenue after provision for credit losses
171,136
166,791
510,593
495,530
Other operating revenue:
Brokerage and trading revenue
31,582
35,263
99,301
103,835
Transaction card revenue
32,514
31,578
96,302
92,222
Fiduciary and asset management revenue
30,807
29,738
94,988
85,003
Deposit service charges and fees
23,606
22,508
67,618
68,330
Mortgage banking revenue
33,170
26,814
109,336
78,988
Bank-owned life insurance
2,360
2,326
6,956
6,706
Other revenue
10,618
10,320
28,694
28,380
Total fees and commissions
164,657
158,547
503,195
463,464
Gain on other assets, net
1,161
1,422
3,373
2,615
Gain (loss) on derivatives, net
1,283
(93
)
1,162
1,706
Gain (loss) on fair value option securities, net
5,926
(332
)
443
6,504
Change in fair value of mortgage servicing rights
(11,757
)
5,281
(12,269
)
(5,624
)
Gain on available for sale securities, net
2,166
146
9,926
1,390
Total other-than-temporary impairment losses
—
—
(781
)
—
Portion of loss recognized in other comprehensive income
—
—
689
—
Net impairment losses recognized in earnings
—
—
(92
)
—
Total other operating revenue
163,436
164,971
505,738
470,055
Other operating expense:
Personnel
129,062
123,043
390,305
351,190
Business promotion
5,922
6,160
19,435
19,151
Charitable contributions to BOKF Foundation
796
—
796
2,420
Professional fees and services
10,147
14,763
29,766
33,382
Net occupancy and equipment
18,689
18,892
56,660
54,577
Insurance
4,864
4,793
14,960
13,801
Data processing and communications
31,228
29,971
93,311
86,177
Printing, postage and supplies
3,376
3,380
10,390
10,350
Net losses and operating expenses of repossessed assets
267
4,966
1,103
7,516
Amortization of intangible assets
1,089
1,100
3,269
2,865
Mortgage banking costs
8,587
7,734
25,325
19,328
Other expense
10,601
7,032
26,686
20,888
Total other operating expense
224,628
221,834
672,006
621,645
Net income before taxes
109,944
109,928
344,325
343,940
Federal and state income taxes
34,128
33,802
113,142
114,042
Net income
75,816
76,126
231,183
229,898
Net income attributable to non-controlling interests
925
494
2,219
1,781
Net income attributable to BOK Financial Corporation shareholders
$
74,891
$
75,632
$
228,964
$
228,117
Average shares outstanding:
Basic
67,668,076
68,455,866
68,004,508
68,364,549
Diluted
67,762,483
68,609,765
68,104,017
68,520,591
Net income per share:
Basic
$
1.09
$
1.09
$
3.33
$
3.30
Diluted
$
1.09
$
1.09
$
3.32
$
3.29
FINANCIAL HIGHLIGHTS -- UNAUDITED BOK FINANCIAL CORPORATION (in thousands, except ratio and share data)
Three Months Ended
Sept. 30, 2015
June 30, 2015
March 31, 2015
Dec. 31, 2014
Sept. 30, 2014
Capital:
Period-end shareholders' equity
$
3,377,226
$
3,375,632
$
3,357,161
$
3,302,179
$
3,243,093
Risk weighted assets
$
22,706,537
$
22,533,295
$
22,053,246
$
21,290,908
$
20,491,089
Risk-based capital ratios1:
Common equity tier 1
12.78
%
13.01
%
13.07
%
N/A
N/A
Tier 1
12.78
%
13.01
%
13.07
%
13.33
%
13.72
%
Total capital
13.89
%
14.11
%
14.39
%
14.66
%
15.11
%
Leverage ratio
9.55
%
9.75
%
9.74
%
9.96
%
10.22
%
Tangible common equity ratio2
9.78
%
9.72
%
9.86
%
10.08
%
9.86
%
Common stock:
Book value per share
$
49.88
$
48.96
$
48.71
$
47.78
$
46.77
Market value per share:
High
$
70.26
$
71.66
$
61.78
$
68.69
$
69.56
Low
$
57.04
$
59.59
$
52.63
$
56.87
$
63.36
Cash dividends paid
$
28,766
$
28,841
$
28,952
$
29,114
$
27,705
Dividend payout ratio
38.41
%
36.40
%
38.68
%
45.27
%
36.63
%
Shares outstanding, net
67,713,031
68,945,139
68,922,314
69,113,736
69,344,082
Stock buy-back program:
Shares repurchased
1,258,348
—
502,156
200,000
—
Amount
$
80,276
$
—
$
29,484
$
12,337
$
—
Average price per share
$
63.79
$
—
$
58.71
$
61.68
$
—
Performance ratios (quarter annualized):
Return on average assets
0.97
%
1.04
%
1.01
%
0.88
%
1.07
%
Return on average equity
8.84
%
9.50
%
9.15
%
7.79
%
9.34
%
Net interest margin
2.61
%
2.61
%
2.55
%
2.61
%
2.67
%
Efficiency ratio
64.34
%
64.21
%
64.91
%
67.95
%
67.18
%
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
$
3,377,226
$
3,375,632
$
3,357,161
$
3,302,179
$
3,243,093
Less: Goodwill and intangible assets, net
430,460
431,515
411,066
412,156
413,256
Tangible common equity
$
2,946,766
$
2,944,117
$
2,946,095
$
2,890,023
$
2,829,837
Total assets
$
30,566,905
$
30,725,563
$
30,299,978
$
29,089,698
$
29,105,020
Less: Goodwill and intangible assets, net
430,460
431,515
411,066
412,156
413,256
Tangible assets
$
30,136,445
$
30,294,048
$
29,888,912
$
28,677,542
$
28,691,764
Tangible common equity ratio
9.78
%
9.72
%
9.86
%
10.08
%
9.86
%
Other data:
Fiduciary assets
$
37,780,669
$
38,772,018
$
37,511,746
$
35,997,877
$
34,020,442
Tax equivalent adjustment
$
3,244
$
3,035
$
2,956
$
2,859
$
2,739
Net unrealized gain on available for sale securities
$
144,884
$
89,158
$
152,107
$
96,955
$
42,935
FINANCIAL HIGHLIGHTS -- UNAUDITED BOK FINANCIAL CORPORATION (in thousands, except ratio and share data)
Three Months Ended
Sept. 30, 2015
June 30, 2015
March 31, 2015
Dec. 31, 2014
Sept. 30, 2014
Mortgage banking:
Mortgage servicing portfolio
$
18,928,726
$
17,979,623
$
16,937,128
$
16,162,887
$
15,499,653
Mortgage commitments
$
742,742
$
849,619
$
824,036
$
627,505
$
638,925
Mortgage loans funded for sale
$
1,614,225
$
1,828,230
$
1,565,016
$
1,264,269
$
1,394,211
Mortgage loan refinances to total fundings
30
%
40
%
56
%
37
%
26
%
Mortgage loans sold
$
1,778,099
$
1,861,968
$
1,382,042
$
1,350,529
$
1,369,295
Net realized gains on mortgage loans sold
$
18,968
$
23,856
$
17,251
$
17,671
$
17,100
Change in net unrealized gain on mortgage loans held for sale
(251
)
(743
)
8,789
(482
)
(2,407
)
Total production revenue
18,717
23,113
26,040
17,189
14,693
Servicing revenue
14,453
13,733
13,280
12,916
12,121
Total mortgage banking revenue
$
33,170
$
36,846
$
39,320
$
30,105
$
26,814
Gain (loss) on mortgage servicing rights, net of economic hedge:
Gain (loss) on mortgage hedge derivative contracts, net
$
1,460
$
(1,005
)
$
911
$
1,070
$
(93
)
Gain (loss) on fair value option securities, net
5,926
(8,130
)
2,647
3,685
(341
)
Gain (loss) on economic hedge of mortgage servicing rights
7,386
(9,135
)
3,558
4,755
(434
)
Gain (loss) on changes in fair value of mortgage servicing rights
(11,757
)
8,010
(8,522
)
(10,821
)
5,281
Gain (loss) on changes in fair value of mortgage servicing rights, net of economic hedges
$
(4,371
)
$
(1,125
)
$
(4,964
)
$
(6,066
)
$
4,847
Net interest revenue on fair value option securities
$
2,140
$
1,985
$
1,739
$
912
$
830
QUARTERLY EARNINGS TREND -- UNAUDITED BOK FINANCIAL CORPORATION (in thousands, except ratio and per share data)
Three Months Ended
Sept. 30, 2015
June 30, 2015
March 31, 2015
Dec. 31, 2014
Sept. 30, 2014
Interest revenue
$
193,664
$
191,813
$
184,569
$
186,620
$
183,868
Interest expense
15,028
16,082
16,843
16,956
17,077
Net interest revenue
178,636
175,731
167,726
169,664
166,791
Provision for credit losses
7,500
4,000
—
—
—
Net interest revenue after provision for credit losses
171,136
171,731
167,726
169,664
166,791
Other operating revenue:
Brokerage and trading revenue
31,582
36,012
31,707
30,602
35,263
Transaction card revenue
32,514
32,778
31,010
31,467
31,578
Fiduciary and asset management revenue
30,807
32,712
31,469
30,649
29,738
Deposit service charges and fees
23,606
22,328
21,684
22,581
22,508
Mortgage banking revenue
33,170
36,846
39,320
30,105
26,814
Bank-owned life insurance
2,360
2,398
2,198
2,380
2,326
Other revenue
10,618
9,473
8,603
10,071
10,320
Total fees and commissions
164,657
172,547
165,991
157,855
158,547
Gain on other assets, net
1,161
1,457
755
338
1,422
Gain (loss) on derivatives, net
1,283
(1,032
)
911
1,070
(93
)
Gain (loss) on fair value option securities, net
5,926
(8,130
)
2,647
3,685
(332
)
Change in fair value of mortgage servicing rights
(11,757
)
8,010
(8,522
)
(10,821
)
5,281
Gain on available for sale securities, net
2,166
3,433
4,327
149
146
Total other-than-temporary impairment losses
—
—
(781
)
(373
)
—
Portion of loss recognized in other comprehensive income
—
—
689
—
—
Net impairment losses recognized in earnings
—
—
(92
)
(373
)
—
Total other operating revenue
163,436
176,285
166,017
151,903
164,971
Other operating expense:
Personnel
129,062
132,695
128,548
125,741
123,043
Business promotion
5,922
7,765
5,748
7,498
6,160
Charitable contributions to BOKF Foundation
796
—
—
1,847
—
Professional fees and services
10,147
9,560
10,059
11,058
14,763
Net occupancy and equipment
18,689
18,927
19,044
22,655
18,892
Insurance
4,864
5,116
4,980
4,777
4,793
Data processing and communications
31,228
31,463
30,620
30,872
29,971
Printing, postage and supplies
3,376
3,553
3,461
3,168
3,380
Net losses (gains) and operating expenses of repossessed assets
267
223
613
(1,497
)
4,966
Amortization of intangible assets
1,089
1,090
1,090
1,100
1,100
Mortgage banking costs
8,587
7,419
9,319
10,553
7,734
Other expense
10,601
9,302
6,783
8,105
7,032
Total other operating expense
224,628
227,113
220,265
225,877
221,834
Net income before taxes
109,944
120,903
113,478
95,690
109,928
Federal and state income taxes
34,128
40,630
38,384
30,109
33,802
Net income
75,816
80,273
75,094
65,581
76,126
Net income attributable to non-controlling interests
925
1,043
251
1,263
494
Net income attributable to BOK Financial Corporation shareholders
$
74,891
$
79,230
$
74,843
$
64,318
$
75,632
Average shares outstanding:
Basic
67,668,076
68,096,341
68,254,780
68,481,630
68,455,866
Diluted
67,762,483
68,210,353
68,344,886
68,615,808
68,609,765
Net income per share:
Basic
$
1.09
$
1.15
$
1.08
$
0.93
$
1.09
Diluted
$
1.09
$
1.15
$
1.08
$
0.93
$
1.09
LOANS TREND -- UNAUDITED BOK FINANCIAL CORPORATION (In thousands)
Sept. 30, 2015
June 30, 2015
March 31, 2015
Dec. 31, 2014
Sept. 30, 2014
Commercial:
Energy
$
2,838,167
$
2,902,143
$
2,902,994
$
2,860,428
$
2,551,699
Services
2,706,624
2,681,126
2,592,876
2,391,530
2,339,951
Wholesale/retail
1,461,936
1,533,730
1,405,800
1,440,015
1,421,107
Manufacturing
555,677
579,549
560,925
532,594
479,543
Healthcare
1,741,680
1,646,025
1,511,177
1,454,969
1,382,399
Other commercial and industrial
493,338
433,148
417,391
416,134
397,339
Total commercial
9,797,422
9,775,721
9,391,163
9,095,670
8,572,038
Commercial real estate:
Residential construction and land development
153,510
148,574
139,152
143,591
175,228
Retail
769,449
688,447
658,860
666,889
611,265
Office
626,151
563,085
513,862
415,544
438,909
Multifamily
758,658
711,333
749,986
704,298
739,757
Industrial
563,871
488,054
478,584
428,817
371,426
Other commercial real estate
363,428
434,004
395,020
369,011
387,614
Total commercial real estate
3,235,067
3,033,497
2,935,464
2,728,150
2,724,199
Residential mortgage:
Permanent mortgage
937,664
946,324
964,264
969,951
991,107
Permanent mortgages guaranteed by U.S. government agencies
192,712
190,839
200,179
205,950
198,488
Home equity
738,619
747,565
762,556
773,611
790,068
Total residential mortgage
1,868,995
1,884,728
1,926,999
1,949,512
1,979,663
Personal
465,957
430,190
430,510
434,705
407,839
Total
$
15,367,441
$
15,124,136
$
14,684,136
$
14,208,037
$
13,683,739
Certain commercial loans previously classified as Services in the prior periods have been reclassified to Wholesale / Retail to conform with current classification guidelines.
LOANS BY PRINCIPAL MARKET AREA -- UNAUDITED BOK FINANCIAL CORPORATION (in thousands)
Sept. 30, 2015
June 30, 2015
March 31, 2015
Dec. 31, 2014
Sept. 30, 2014
Bank of Oklahoma:
Commercial
$
3,514,391
$
3,529,406
$
3,276,553
$
3,142,689
$
3,106,264
Commercial real estate
677,372
614,995
612,639
603,610
592,865
Residential mortgage
1,405,235
1,413,690
1,442,340
1,467,096
1,481,264
Personal
185,463
190,909
205,496
206,115
193,207
Total Bank of Oklahoma
5,782,461
5,749,000
5,537,028
5,419,510
5,373,600
Bank of Texas:
Commercial
3,752,193
3,738,742
3,709,467
3,549,128
3,169,458
Commercial real estate
1,257,741
1,158,056
1,130,973
1,027,817
1,046,322
Residential mortgage
222,395
228,683
237,985
235,948
247,117
Personal
194,051
156,260
149,827
154,363
148,965
Total Bank of Texas
5,426,380
5,281,741
5,228,252
4,967,256
4,611,862
Bank of Albuquerque:
Commercial
368,027
392,362
388,005
383,439
378,663
Commercial real estate
312,953
291,953
296,696
296,358
313,905
Residential mortgage
121,232
123,376
127,326
127,999
130,045
Personal
10,477
11,939
12,095
10,899
11,714
Total Bank of Albuquerque
812,689
819,630
824,122
818,695
834,327
Bank of Arkansas:
Commercial
76,044
99,086
91,485
95,510
74,866
Commercial real estate
82,225
85,997
87,034
88,301
96,874
Residential mortgage
8,063
6,999
6,807
7,261
7,492
Personal
4,921
5,189
5,114
5,169
5,508
Total Bank of Arkansas
171,253
197,271
190,440
196,241
184,740
Colorado State Bank & Trust:
Commercial
1,029,694
1,019,454
1,008,316
977,961
957,917
Commercial real estate
229,835
229,721
209,272
194,553
190,812
Residential mortgage
50,138
54,135
55,925
57,119
56,705
Personal
30,683
30,373
27,792
27,918
24,812
Total Colorado State Bank & Trust
1,340,350
1,333,683
1,301,305
1,257,551
1,230,246
Bank of Arizona:
Commercial
608,235
572,477
519,767
547,524
500,208
Commercial real estate
482,918
472,061
432,269
355,140
316,698
Residential mortgage
41,722
37,493
36,161
35,872
39,256
Personal
17,609
12,875
12,394
12,883
11,201
Total Bank of Arizona
1,150,484
1,094,906
1,000,591
951,419
867,363
Bank of Kansas City:
Commercial
448,838
424,194
397,570
399,419
384,662
Commercial real estate
192,023
180,714
166,581
162,371
166,723
Residential mortgage
20,210
20,352
20,455
18,217
17,784
Personal
22,753
22,645
17,792
17,358
12,432
Total Bank of Kansas City
683,824
647,905
602,398
597,365
581,601
TOTAL BOK FINANCIAL
$
15,367,441
$
15,124,136
$
14,684,136
$
14,208,037
$
13,683,739
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)
Sept. 30, 2015
June 30, 2015
March 31, 2015
Dec. 31, 2014
Sept. 30, 2014
Bank of Oklahoma:
Demand
$
3,834,145
$
4,068,088
$
3,982,534
$
3,828,819
$
3,915,560
Interest-bearing:
Transaction
5,783,258
6,018,381
6,199,468
6,117,886
5,450,692
Savings
225,580
225,694
227,855
206,357
201,690
Time
1,253,137
1,380,566
1,372,250
1,301,194
1,292,738
Total interest-bearing
7,261,975
7,624,641
7,799,573
7,625,437
6,945,120
Total Bank of Oklahoma
11,096,120
11,692,729
11,782,107
11,454,256
10,860,680
Bank of Texas:
Demand
2,689,493
2,565,234
2,511,032
2,639,732
2,636,713
Interest-bearing:
Transaction
1,996,223
2,020,817
2,062,063
2,065,723
2,020,737
Savings
74,674
74,373
76,128
72,037
66,798
Time
554,106
536,844
547,371
547,316
569,929
Total interest-bearing
2,625,003
2,632,034
2,685,562
2,685,076
2,657,464
Total Bank of Texas
5,314,496
5,197,268
5,196,594
5,324,808
5,294,177
Bank of Albuquerque:
Demand
520,785
508,224
537,466
487,819
480,023
Interest-bearing:
Transaction
529,862
537,156
535,791
519,544
502,787
Savings
41,380
41,802
42,088
37,471
36,127
Time
281,426
285,890
290,706
295,798
303,074
Total interest-bearing
852,668
864,848
868,585
852,813
841,988
Total Bank of Albuquerque
1,373,453
1,373,072
1,406,051
1,340,632
1,322,011
Bank of Arkansas:
Demand
25,397
19,731
31,002
35,996
35,075
Interest-bearing:
Transaction
290,728
284,349
253,691
158,115
234,063
Savings
1,573
1,712
1,677
1,936
2,222
Time
26,203
28,220
28,277
28,520
38,811
Total interest-bearing
318,504
314,281
283,645
188,571
275,096
Total Bank of Arkansas
343,901
334,012
314,647
224,567
310,171
Colorado State Bank & Trust:
Demand
430,675
403,491
412,532
445,755
422,044
Interest-bearing:
Transaction
655,206
601,741
604,665
631,874
571,807
Savings
31,398
31,285
31,524
29,811
29,768
Time
320,279
322,432
340,006
353,998
372,401
Total interest-bearing
1,006,883
955,458
976,195
1,015,683
973,976
Total Colorado State Bank & Trust
1,437,558
1,358,949
1,388,727
1,461,438
1,396,020
DEPOSITS BY PRINCIPAL MARKET AREA -- UNAUDITED BOK FINANCIAL CORPORATION (in thousands)
Sept. 30, 2015
June 30, 2015
March 31, 2015
Dec. 31, 2014
Sept. 30, 2014
Bank of Arizona:
Demand
306,425
352,024
271,091
369,115
279,811
Interest-bearing:
Transaction
293,319
298,073
295,480
347,214
336,584
Savings
4,121
2,726
2,900
2,545
3,718
Time
26,750
28,165
28,086
36,680
38,842
Total interest-bearing
324,190
328,964
326,466
386,439
379,144
Total Bank of Arizona
630,615
680,988
597,557
755,554
658,955
Bank of Kansas City:
Demand
234,847
239,609
263,920
259,121
268,903
Interest-bearing:
Transaction
150,253
139,260
157,044
273,999
128,039
Savings
1,570
1,580
1,618
1,274
1,315
Time
36,630
42,262
45,082
45,210
48,785
Total interest-bearing
188,453
183,102
203,744
320,483
178,139
Total Bank of Kansas City
423,300
422,711
467,664
579,604
447,042
TOTAL BOK FINANCIAL
$
20,619,443
$
21,059,729
$
21,153,347
$
21,140,859
$
20,289,056
NET INTEREST MARGIN TREND -- UNAUDITED BOK FINANCIAL CORPORATION
Three Months Ended
Sept. 30, 2015
June 30, 2015
March 31, 2015
Dec. 31, 2014
Sept. 30, 2014
TAX-EQUIVALENT ASSETS YIELDS
Interest-bearing cash and cash equivalents
0.28
%
0.25
%
0.27
%
0.28
%
0.20
%
Trading securities
2.70
%
1.85
%
2.55
%
2.48
%
2.67
%
Investment securities:
Taxable
5.49
%
5.49
%
5.51
%
5.68
%
5.66
%
Tax-exempt
1.54
%
1.56
%
1.56
%
1.56
%
1.56
%
Total investment securities
3.04
%
3.05
%
3.04
%
3.11
%
3.03
%
Available for sale securities:
Taxable
1.99
%
1.92
%
1.95
%
1.97
%
1.94
%
Tax-exempt
4.15
%
4.21
%
4.40
%
4.23
%
3.14
%
Total available for sale securities
2.01
%
1.94
%
1.98
%
1.99
%
1.95
%
Fair value option securities
2.30
%
2.17
%
2.28
%
2.18
%
2.05
%
Restricted equity securities
5.95
%
5.82
%
5.79
%
5.77
%
5.99
%
Residential mortgage loans held for sale
3.79
%
3.37
%
3.41
%
3.87
%
3.79
%
Loans
3.54
%
3.65
%
3.59
%
3.73
%
3.78
%
Allowance for loan losses
Loans, net of allowance
3.59
%
3.70
%
3.64
%
3.78
%
3.83
%
Total tax-equivalent yield on earning assets
2.83
%
2.84
%
2.80
%
2.86
%
2.93
%
COST OF INTEREST-BEARING LIABILITIES
Interest-bearing deposits:
Interest-bearing transaction
0.08
%
0.09
%
0.10
%
0.09
%
0.10
%
Savings
0.10
%
0.11
%
0.10
%
0.11
%
0.12
%
Time
1.33
%
1.36
%
1.46
%
1.47
%
1.56
%
Total interest-bearing deposits
0.34
%
0.35
%
0.37
%
0.38
%
0.41
%
Funds purchased
0.08
%
0.08
%
0.09
%
0.08
%
0.07
%
Repurchase agreements
0.03
%
0.03
%
0.04
%
0.04
%
0.05
%
Other borrowings
0.30
%
0.31
%
0.32
%
0.32
%
0.34
%
Subordinated debt
1.04
%
2.21
%
2.52
%
2.50
%
2.46
%
Total cost of interest-bearing liabilities
0.32
%
0.35
%
0.38
%
0.39
%
0.41
%
Tax-equivalent net interest revenue spread
2.51
%
2.49
%
2.42
%
2.47
%
2.52
%
Effect of noninterest-bearing funding sources and other
0.10
%
0.12
%
0.13
%
0.14
%
0.15
%
Tax-equivalent net interest margin
2.61
%
2.61
%
2.55
%
2.61
%
2.67
%
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 -- UNAUDITED BOK FINANCIAL CORPORATION (in thousands, except ratios)
Three Months Ended
Sept. 30, 2015
June 30, 2015
March 31, 2015
Dec. 31, 2014
Sept. 30, 2014
Nonperforming assets:
Nonaccruing loans:
Commercial
$
33,798
$
24,233
$
13,880
$
13,527
$
16,404
Commercial real estate
10,956
20,139
19,902
18,557
30,660
Residential mortgage
44,099
45,969
46,487
48,121
48,907
Personal
494
550
464
566
580
Total nonaccruing loans
89,347
90,891
80,733
80,771
96,551
Accruing renegotiated loans guaranteed by U.S. government agencies
81,598
82,368
80,287
73,985
70,459
Real estate and other repossessed assets:
Guaranteed by U.S. government agencies2
—
—
—
49,898
46,809
Other
33,116
35,499
45,551
51,963
51,062
Total real estate and other repossessed assets
33,116
35,499
45,551
101,861
97,871
Total nonperforming assets
$
204,061
$
208,758
$
206,571
$
256,617
$
264,881
Total nonperforming assets excluding those guaranteed by U.S. government agencies
$
118,578
$
122,673
$
123,028
$
129,022
$
143,778
Nonaccruing loans by loan class:
Commercial:
Energy
$
17,880
$
6,841
$
1,875
$
1,416
$
1,508
Services
10,692
10,944
4,744
5,201
3,584
Wholesale / retail
3,058
4,166
4,401
4,149
5,502
Manufacturing
352
379
417
450
3,482
Healthcare
1,218
1,278
1,558
1,380
1,417
Other commercial and industrial
598
625
885
931
911
Total commercial
33,798
24,233
13,880
13,527
16,404
Commercial real estate:
Residential construction and land development
4,748
9,367
9,598
5,299
14,634
Retail
1,648
3,826
3,857
3,926
4,009
Office
684
2,360
2,410
3,420
3,499
Multifamily
185
195
—
—
—
Industrial
76
76
76
—
—
Other commercial real estate
3,615
4,315
3,961
5,912
8,518
Total commercial real estate
10,956
20,139
19,902
18,557
30,660
Residential mortgage:
Permanent mortgage
30,660
32,187
33,365
34,845
35,137
Permanent mortgage guaranteed by U.S. government agencies
3,885
3,717
3,256
3,712
3,835
Home equity
9,554
10,065
9,866
9,564
9,935
Total residential mortgage
44,099
45,969
46,487
48,121
48,907
Personal
494
550
464
566
580
Total nonaccruing loans
$
89,347
$
90,891
$
80,733
$
80,771
$
96,551
CREDIT QUALITY INDICATORS -- UNAUDITED BOK FINANCIAL CORPORATION (in thousands, except ratios)
Three Months Ended
Sept. 30, 2015
June 30, 2015
March 31, 2015
Dec. 31, 2014
Sept. 30, 2014
Performing loans 90 days past due1
$
101
$
99
$
523
$
125
$
25
Gross charge-offs
$
(5,274
)
$
(2,877
)
$
(2,169
)
$
(7,224
)
$
(2,638
)
Recoveries
3,521
2,206
10,523
5,036
3,114
Net recoveries (charge-offs)
$
(1,753
)
$
(671
)
$
8,354
$
(2,188
)
$
476
Provision for credit losses
$
7,500
$
4,000
$
—
$
—
$
—
Allowance for loan losses to period end loans
1.33
%
1.33
%
1.35
%
1.33
%
1.40
%
Combined allowance for credit losses to period end loans
1.35
%
1.34
%
1.35
%
1.34
%
1.41
%
Nonperforming assets to period end loans and repossessed assets
1.33
%
1.38
%
1.40
%
1.79
%
1.92
%
Net charge-offs (annualized) to average loans
0.05
%
0.02
%
(0.23
)%
0.06
%
(0.01
)%
Allowance for loan losses to nonaccruing loans
228.45
%
221.24
%
244.86
%
234.06
%
198.08
%
Combined allowance for credit losses to nonaccruing loans
232.48
%
222.21
%
246.05
%
235.59
%
199.35
%
1 Excludes residential mortgage loans guaranteed by agencies of the U.S. government.
2 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.
For Further Information Contact:
Joseph Crivelli
Investor Relations
(918) 595-3027
Andrea Myers
Corporate Communications
(918) 594-7794
Source: GlobeNewswire
(October 28, 2015 - 8:02 AM EDT)