July 27, 2016 - 8:02 AM EDT
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BOK Financial Reports Quarterly Earnings of $66 Million

New Quarterly Record for Fees and Commissions Revenue

TULSA, Okla., July 27, 2016 (GLOBE NEWSWIRE) -- BOK Financial Corporation (NASDAQ:BOKF) reported net income of $65.8 million or $1.00 per diluted share for the second quarter of 2016. Net income was $42.6 million or $0.64 per diluted share for the first quarter of 2016 and $79.2 million or $1.15 per diluted share for the second quarter of 2015.

Steven G. Bradshaw, president and chief executive officer, stated, “It was a solid quarter for the company, with very strong loan growth and record fee and commission revenue led by brokerage and trading, fiduciary and asset management, and transaction processing. In addition, stability in the commodity price environment translated into lower credit costs for the quarter and reduced concern about spillover impact on the economies in energy states such as Oklahoma, Texas, and Colorado. We continue to see strong growth opportunities across our footprint, and reflecting our confidence, we continued with our stock buyback program during the quarter."

Stacy Kymes, executive vice president, Corporate Banking, added, "We continue to be fully committed to the energy business and our energy customers. During the quarter we provided $172 million of new loan commitments to 20 new borrowers in the industry, and year to date we have provided $254 million of new loan commitments to 35 new borrowers. Energy lending is core to our DNA, and our experience in previous commodity cycles has shown that is a profitable business, and when approached in a consistent and disciplined manner, losses during down cycles are manageable. This long term view has served us well, and today we remain well-positioned in the industry with a complete service offering, world-class energy lending team, and enviable customer base."

Second Quarter 2016 Highlights

  • Net interest revenue totaled $182.6 million for the second quarter of 2016, unchanged compared to the first quarter of 2016. Net interest margin was 2.63 percent for the second quarter of 2016, compared to 2.65 percent for the first quarter of 2016. Average earning assets increased $246 million during the second quarter of 2016, primarily related to a $271 million increase in average loan balances.

  • Fees and commissions revenue totaled $183.5 million for the second quarter of 2016, an increase of $17.9 million over the prior quarter. Brokerage and trading revenue was up $7.2 million and mortgage banking revenue grew by $3.8 million. Fiduciary and asset management revenue increased $2.8 million and transaction card revenue increased $2.6 million.

  • Changes in the fair value of mortgage servicing rights, net of economic hedges, decreased pre-tax net income by $1.2 million in the second quarter of 2016 and decreased pre-tax net income $11.4 million in the first quarter of 2016. Hedge coverage was increased during the second quarter.

  • Operating expense was $254.7 million for the second quarter, an increase of $9.8 million over the previous quarter. Personnel expense increased $6.6 million, primarily due to revenue-driven incentive compensation. Non-personnel expense increased $3.2 million. Mortgage banking expense, professional fees and services expense, intangible asset amortization and business promotion expense increased over the prior quarter. Non-personnel expense in the first quarter of 2016 included $6.8 million of expense related to several litigation accruals and a post-acquisition valuation adjustment.

  • A $20.0 million provision for credit losses was recorded in the second quarter of 2016 compared to a $35.0 million provision in the first quarter of 2016. The decrease in the provision for credit losses was due to improving credit metric trends, largely driven by energy price stability. Net loans charged off totaled $7.5 million in the second quarter of 2016, compared to $22.5 million in the previous quarter.

  • The combined allowance for credit losses totaled $252 million or 1.54 percent of outstanding loans at June 30, 2016 compared to $240 million or 1.50 percent of outstanding loans at March 31, 2016. The portion of the combined allowance attributed to the energy portfolio totaled 3.58 percent of outstanding energy loans at June 30, 2016, an increase from 3.19 percent of outstanding energy loans at March 31, 2016.

  • Nonperforming assets that are not guaranteed by U.S. government agencies totaled $251 million or 1.55 percent of outstanding loans and repossessed assets (excluding those guaranteed by U.S. government agencies) at June 30, 2016 and $252 million or 1.59 percent of outstanding loans and repossessed assets (excluding those guaranteed by U.S. government agencies) at March 31, 2016. Nonperforming energy loans increased $8.6 million during the second quarter.

  • Average loans increased by $271 million over the previous quarter, primarily due to an increase in commercial real estate loans. Period-end outstanding loan balances increased $384 million to $16.4 billion at June 30, 2016. Commercial loans increased $68.0 million as growth across most loan classes was partially offset by a $210.8 million decrease in outstanding energy loans. 

  • Average deposits decreased $159 million compared to the previous quarter primarily due to decreased interest-bearing transaction account balances. Growth in demand deposit balances was offset by a decrease in time deposits. Period-end deposits were $20.8 billion at June 30, 2016, an increase of $341 million from March 31, 2016. 

  • The common equity Tier 1 capital ratio at June 30, 2016 was 11.86 percent. Other regulatory capital ratios were Tier 1 capital ratio, 11.86 percent, total capital ratio, 13.51 percent and leverage ratio, 9.06 percent. At March 31, 2016, the common equity Tier 1 capital ratio was 12.00 percent, the Tier 1 capital ratio was 12.00 percent, total capital ratio was 13.21 percent, and leverage ratio was 9.12 percent. The total capital ratio was supported by the issuance of $150 million of 40 year, fixed rate subordinated debt during the second quarter.

  • The company paid a regular quarterly cash dividend of $28 million or $0.43 per common share during the second quarter of 2016. On July 26, 2016, the board of directors approved a quarterly cash dividend of $0.43 per common share payable on or about August 26, 2016 to shareholders of record as of August 12, 2016.

  • The company repurchased 305,169 common shares at an average price of $58.23 per share during the second quarter of 2016. No shares were repurchased during the first quarter of 2016.

Net Interest Revenue

Net interest revenue was $182.6 million for the second quarter of 2016, unchanged compared to the first quarter of 2016.

Net interest margin was 2.63 percent for the second quarter of 2016, a decrease of 2 basis points compared to the first quarter of 2016. The yield on average earning assets was 2.91 percent, a decrease of 1 basis point. The loan portfolio yield increased 1 basis point to 3.58 percent. The yield on the available for sale securities portfolio decreased 4 basis points to 2.04 percent. In addition, the yield on average earning assets decreased 1 basis point due to a governmental policy decision to reduce dividends paid on Federal Reserve Bank stock. Funding costs were 0.41 percent, up 1 basis point.

Average earning assets increased $246 million during the second quarter of 2016. Average loan balances increased $271 million, primarily due to growth in commercial real estate balances. Average interest-bearing deposit balances decreased $215 million compared to the first quarter of 2016. The average balance of borrowed funds increased $399 million.

Fees and Commissions Revenue

Fees and commissions revenue totaled $183.5 million for the second quarter of 2016, an increase of $17.9 million over the first quarter of 2016.

Brokerage and trading revenue increased $7.2 million. Customer hedging revenue increased $4.6 million primarily due to increased volumes of contracts with our mortgage banking and energy customers. Investment banking revenue grew by $2.9 million primarily due to growth in loan syndication fees and bond underwriting fees, which are both dependent on the timing and volume of completed transactions.

Mortgage banking revenue totaled $38.2 million for the second quarter of 2016, a $3.8 million increase over the first quarter of 2016. Revenue from mortgage loan production increased $3.4 million due to growth in the volume of mortgage loans sold and mortgage loan commitments during the quarter. Average primary mortgage interest rates were 15 basis points lower than in the first quarter of 2016. Total mortgage loans originated during the second quarter increased $575 million or 46 percent over the prior quarter. Outstanding mortgage loan commitments at June 30 increased $63 million or 7 percent over March 31.

Fiduciary and asset management revenue increased $2.8 million largely due to an annual assessment of tax preparation fees and growth in assets under management. Transaction card revenue increased $2.6 million primarily due to a seasonal increase in transaction volumes along with a customer early termination fee.

Operating Expense

Total operating expense was $254.7 million for the second quarter of 2016, an increase of $9.8 million over the first quarter of 2016.

Personnel expense increased by $6.6 million over the first quarter of 2016 primarily due to an increase in incentive compensation expense. Revenue-driven cash-based incentive compensation increased $4.5 million. Share-based compensation expense increased $1.7 million primarily due to an increase in BOKF stock price. In addition, increased regular compensation expense and employee healthcare costs were offset by a decrease in payroll tax expense.

Non-personnel expense increased $3.2 million over the first quarter of 2016. Mortgage banking expense increased $3.4 million primarily from increased prepayments of loans serviced for others due to lower mortgage interest rates. Professional fees and services expense increased $2.4 million due largely to the annual cost of wealth management customer tax preparation services and costs incurred in preparation for the mobank acquisition. Business promotion expense had a seasonal increase of $1.0 million over the prior quarter. The $1.5 million increase in intangible asset amortization expense was from an adjustment to a consolidated merchant-banking investment.

Other expense decreased $7.2 million compared to the prior quarter. The first quarter of 2016 included $4.1 million of litigation accruals and a $2.7 million post-acquisition valuation adjustment to a consolidated merchant banking investment.

Loans, Deposits and Capital

Loans

Outstanding loans were $16.4 billion at June 30, 2016, an increase of $384 million over the previous quarter, primarily due to growth in commercial real estate. Personal, commercial and residential mortgage loan balances also grew over the prior quarter.

Outstanding commercial loan balances increased $68 million over March 31, 2016. Service sector loans increased $102 million and wholesale/retail sector loans increased $81 million. Healthcare sector loans grew by $56 million and other commercial and industrial loans increased $45 million. As expected, energy loan balances decreased $211 million compared to March 31, 2016. Unfunded energy loan commitments decreased by $161 million during the second quarter to $1.9 billion.

Commercial real estate loans grew by $211 million over March 31, 2016. Loans secured by industrial facilities grew by $81 million primarily in the Oklahoma, Texas and Arizona markets. Loans secured by office buildings increased $74 million primarily in the Texas and Arizona markets. Multifamily residential loans increased $54 million. Growth in other commercial real estate balances was offset by a decrease in retail sector and residential construction and land development loan balances.

Deposits

Period-end deposits totaled $20.8 billion at June 30, 2016, an increase of $341 million over March 31, 2016. Demand deposit balances grew by $474 million, partially offset by a $94 million decrease in time deposits and a $41 million decrease in interest-bearing transaction deposit balances. Among the lines of business, Wealth Management deposits grew by $522 million over March 31, 2016. Consumer Banking deposits decreased $89 million and Commercial Banking deposits decreased $62 million. The overall decrease in Commercial Banking deposits was due to decreased balances held by our commercial and industrial customers, partially offset by increases in balances held by our energy, commercial real estate and small business customers.

Capital

The company's common equity Tier 1 capital ratio was 11.86 percent at June 30, 2016. In addition, the company's Tier 1 capital ratio was 11.86 percent, total capital ratio was 13.51 percent and leverage ratio was 9.06 percent at June 30, 2016. At March 31, 2016, the company's common equity Tier 1 capital ratio was 12.00 percent, Tier 1 capital ratio was 12.00 percent, total capital ratio was 13.21 percent, and leverage ratio was 9.12 percent.

During the second quarter BOK Financial issued $150 million of 40 year, 5.375 percent fixed rate subordinated debt. The debt is callable at any time after 5 years. Proceeds of the debt increased the total capital ratio by 60 basis points.

The company's tangible common equity ratio, a non-GAAP measure, was 9.33 percent at June 30, 2016 and 9.34 percent at March 31, 2016. 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 $350 million or 2.13 percent of outstanding loans and repossessed assets at June 30, 2016 compared to $349 million or 2.18 percent at March 31, 2016. Nonperforming assets that are not guaranteed by U.S. government agencies totaled $251 million or 1.55 percent of outstanding loans and repossessed assets (excluding those guaranteed by U.S. government agencies) at June 30, 2016 compared to $252 million or 1.59 percent at March 31, 2016. 

Nonaccruing loans totaled $247 million or 1.51 percent of outstanding loans at June 30, 2016, compared to $242 million or 1.51 percent of outstanding loans at March 31, 2016. The increase in nonaccruing loans was primarily due to an $8.6 million increase in nonaccruing energy loans. New nonaccruing loans identified in the second quarter totaled $33 million, offset by $12 million in payments received, $8.8 million in charge-offs and $3.2 million in foreclosures and repossessions. At June 30, 2016, nonaccruing commercial loans totaled $182 million or 1.76 percent of outstanding commercial loans, nonaccruing commercial real estate loans totaled $7.8 million or 0.22 percent of outstanding commercial real estate loans and nonaccruing residential mortgage loans totaled $57 million or 3.03 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, increased to $501 million at June 30 from $460 million at March 31. The increase largely resulted from an $18 million increase in potential problem energy loans.

Net loans charged off totaled $7.5 million for the second quarter of 2016, compared to $22.5 million in the first quarter of 2016. Gross charge-offs totaled $8.8 million for the second quarter, compared to $24.0 million for the previous quarter. Charge-offs in both the second and first quarters largely came from the energy loan portfolio. Recoveries totaled $1.4 million for the second quarter of 2016 and $1.5 million for the first quarter of 2016.

After evaluating all credit factors, the company recorded a $20.0 million provision for credit losses during the second quarter of 2016. The company recorded a $35.0 million provision for credit losses in the previous quarter. The lower provision reflects improvement in credit metrics over the previous quarter, largely driven by energy price stability and decreased rates of newly identified nonaccruing and potential problem loans.

The combined allowance for credit losses totaled $252 million or 1.54 percent of outstanding loans and 111 percent of nonaccruing loans at June 30, 2016. The allowance for loan losses was $243 million and the accrual for off-balance sheet credit losses was $9.0 million.

Energy Portfolio Credit Quality

The company's $2.8 billion energy portfolio consists of 79 percent of loans to exploration and production companies, 9 percent to energy services companies and 12 percent to midstream and other energy 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 company completed an energy loan portfolio redetermination during the second quarter. The redetermination supported that $136 million of impaired energy loans required no allowance for credit losses based on the adequacy of collateral, including $123 million that are current on all payments due. At June 30, 2016, the portion of the combined allowance for credit losses attributed to the energy portfolio totaled $101 million or 3.58 percent of outstanding energy loans.

Marc Maun, chief credit officer, noted, "We are pleased to see energy asset quality stabilize in the second quarter. Total criticized energy loans decreased from the first quarter and charge-offs were down significantly. We recognize that macroeconomic factors may result in additional pressure on commodity prices but we are pleased with how our portfolio has performed through the extended energy downturn."

Securities and Derivatives

The fair value of the available for sale securities portfolio totaled $8.8 billion at June 30, 2016, a $55 million decrease compared to March 31, 2016. At June 30, 2016, the available for sale portfolio consisted primarily of $5.7 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.

At June 30, 2016, the available for sale securities portfolio had a net unrealized gain of $195 million compared to a net unrealized gain of $155 million at March 31, 2016. The increase in net unrealized gain was 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 June 30, 2016 increased $19 million during the second quarter to $123 million. Commercial mortgage-backed securities had a net unrealized gain of $58 million at June 30, 2016, up from $38 million at March 31, 2016.

In the second quarter of 2016, the company recognized $5.3 million of net gains from sales of $326 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 $4.0 million of net gains from sales of $469 million of available for sale securities in the first quarter of 2016.

The company also maintains a portfolio of residential mortgage-backed securities issued by U.S. government agencies and interest rate derivative contracts as an economic hedge of the changes in the fair value of our mortgage servicing rights. Changes in the fair value of mortgage servicing rights are highly dependent on primary mortgage interest rates offered to borrowers and other factors. Changes in the fair value of securities and interest rate derivatives are highly dependent on secondary mortgage rates, or rates required by investors. Changes in the spread between primary and secondary mortgage rates cannot be effectively hedged and can cause significant earnings volatility.

The fair value of mortgage servicing rights decreased by $16.3 million during the second quarter of 2016 as primary mortgage rates fell during the quarter. The fair value of securities and interest rate derivative contracts held as an economic hedge increased by $15.0 million during the quarter due to a decrease in average secondary mortgage and interest rate swap rates. Hedge coverage was increased during the second quarter to improve its effectiveness. The fair value of mortgage servicing rights, net of economic hedges, decreased $11.4 million in the first quarter of 2016, primarily due to falling primary residential mortgage interest rates and we narrowed the forward-looking spread between primary mortgage interest rates and yields on mortgage-backed securities.

Conference Call and Webcast

The company will hold a conference call at 9 a.m. Central time on Wednesday, July 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 # 10088478.

About BOK Financial Corporation

BOK Financial Corporation is a $32 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, BOK Financial Securities, 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 June 30, 2016 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,”  “will,”  “intends,” 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, allowance for uncertain tax positions, accruals for loss contingencies and valuation of mortgage servicing rights involve judgments as to expected 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 changes in commodity prices, interest rates and interest rate relationships, demand for products and services, the degree of competition by traditional and nontraditional competitors, changes in banking regulations, tax laws, prices, levies and assessments, the impact of technological advances, and trends in customer 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)
  June 30, 2016 Mar. 31, 2016 June 30, 2015
ASSETS      
Cash and due from banks $498,713  $481,510  $443,577 
Interest-bearing cash and cash equivalents 1,907,838  1,831,162  2,119,072 
Trading securities 211,622  279,539  158,209 
Investment securities 560,711  576,047  625,664 
Available for sale securities 8,830,689  8,886,036  9,000,117 
Fair value option securities 263,265  418,887  436,324 
Restricted equity securities 319,639  314,590  231,520 
Residential mortgage loans held for sale 430,728  332,040  502,571 
Loans:      
Commercial 10,356,437  10,288,425  9,775,721 
Commercial real estate 3,581,966  3,370,507  3,033,497 
Residential mortgage 1,880,923  1,869,309  1,884,728 
Personal 587,423  494,325  430,190 
Total loans 16,406,749  16,022,566  15,124,136 
Allowance for loan losses (243,259) (233,156) (201,087)
Loans, net of allowance 16,163,490  15,789,410  14,923,049 
Premises and equipment, net 315,199  311,161  284,238 
Receivables 173,638  167,209  149,629 
Goodwill 382,739  383,789  385,454 
Intangible assets, net 43,372  44,944  46,061 
Mortgage servicing rights 190,747  196,055  198,694 
Real estate and other repossessed assets, net 24,054  29,896  35,499 
Derivative contracts, net 883,673  790,146  630,435 
Cash surrender value of bank-owned life insurance 307,860  305,510  298,606 
Receivable on unsettled securities sales 142,820  5,640  8,693 
Other assets 319,653  270,374  248,151 
TOTAL ASSETS $31,970,450  $31,413,945  $30,725,563 
       
LIABILITIES AND EQUITY      
Deposits:      
Demand $8,424,609  $7,950,675  $8,156,401 
Interest-bearing transaction 9,668,869  9,709,766  9,899,777 
Savings 419,262  416,505  379,172 
Time 2,247,061  2,341,374  2,624,379 
Total deposits 20,759,801  20,418,320  21,059,729 
Funds purchased 56,780  62,755  64,677 
Repurchase agreements 472,683  630,101  712,033 
Other borrowings 5,830,736  5,633,862  4,332,162 
Subordinated debentures 371,812  226,385  226,278 
Accrued interest, taxes and expense 197,742  148,711  124,568 
Due on unsettled securities purchases 11,757  19,508  37,571 
Derivative contracts, net 719,159  705,578  620,277 
Other liabilities 147,242  212,460  135,435 
TOTAL LIABILITIES 28,567,712  28,057,680  27,312,730 
Shareholders' equity:      
Capital, surplus and retained earnings 3,251,201  3,228,446  3,323,840 
Accumulated other comprehensive income 117,632  93,109  51,792 
TOTAL SHAREHOLDERS' EQUITY 3,368,833  3,321,555  3,375,632 
Non-controlling interests 33,905  34,710  37,201 
TOTAL EQUITY 3,402,738  3,356,265  3,412,833 
TOTAL LIABILITIES AND EQUITY $31,970,450  $31,413,945  $30,725,563 
             


AVERAGE BALANCE SHEETS -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands)
  Three Months Ended
  June 30, 2016 Mar. 31, 2016 Dec. 31, 2015 Sept. 30, 2015 June 30, 2015
ASSETS          
Interest-bearing cash and cash equivalents $2,022,028  $2,052,840  $1,995,945  $2,038,611  $2,002,456 
Trading securities 237,808  188,100  150,402  179,098  127,391 
Investment securities 562,391  587,465  602,369  616,091  628,489 
Available for sale securities 8,890,112  8,951,435  8,971,090  8,942,261  9,063,006 
Fair value option securities 368,434  450,478  435,449  429,951  435,294 
Restricted equity securities 319,136  294,529  262,461  255,610  221,911 
Residential mortgage loans held for sale 401,114  289,743  310,425  401,359  464,269 
Loans:          
Commercial 10,265,782  10,268,793  10,024,756  9,685,768  9,634,306 
Commercial real estate 3,550,611  3,364,076  3,186,629  3,198,200  2,989,615 
Residential mortgage 1,864,458  1,865,742  1,835,195  1,847,696  1,857,464 
Personal 582,281  493,382  540,418  460,647  423,967 
Total loans 16,263,132  15,991,993  15,586,998  15,192,311  14,905,352 
Allowance for loan losses (245,448) (234,116) (207,156) (202,829) (198,400)
Total loans, net 16,017,684  15,757,877  15,379,842  14,989,482  14,706,952 
Total earning assets 28,818,707  28,572,467  28,107,983  27,852,463  27,649,768 
Cash and due from banks 507,085  505,522  514,629  487,283  492,737 
Derivative contracts, net 823,584  632,102  657,780  669,264  475,687 
Cash surrender value of bank-owned life insurance 306,318  304,141  301,793  299,424  297,022 
Receivable on unsettled securities sales 49,568  115,101  62,228  64,591  94,374 
Other assets 1,480,780  1,379,138  1,435,763  1,396,708  1,454,484 
TOTAL ASSETS $31,986,042  $31,508,471  $31,080,176  $30,769,733  $30,464,072 
           
LIABILITIES AND EQUITY          
Deposits:          
Demand $8,162,134  $8,105,756  $8,312,961  $7,994,607  $7,996,717 
Interest-bearing transaction 9,590,855  9,756,843  9,527,491  9,760,839  10,063,589 
Savings 417,122  397,479  382,284  379,828  381,833 
Time 2,297,621  2,366,543  2,482,714  2,557,874  2,651,820 
Total deposits 20,467,732  20,626,621  20,705,450  20,693,148  21,093,959 
Funds purchased 70,682  112,211  73,220  70,281  63,312 
Repurchase agreements 611,264  662,640  623,921  672,085  773,977 
Other borrowings 6,076,028  5,583,917  4,957,175  4,779,981  4,001,479 
Subordinated debentures 232,795  226,368  226,332  226,296  307,903 
Derivative contracts, net 791,313  544,722  632,699  597,908  455,431 
Due on unsettled securities purchases 93,812  158,050  248,811  90,135  151,369 
Other liabilities 298,170  268,705  251,953  240,704  235,173 
TOTAL LIABILITIES 28,641,796  28,183,234  27,719,561  27,370,538  27,082,603 
Total equity 3,344,246  3,325,237  3,360,615  3,399,195  3,381,469 
TOTAL LIABILITIES AND EQUITY $31,986,042  $31,508,471  $31,080,176  $30,769,733  $30,464,072 
                     


STATEMENTS OF EARNINGS -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands, except per share data)
  Three Months Ended  Six Months Ended
  June 30,  June 30,
  2016 2015  2016 2015
          
Interest revenue $202,267  $191,813   $404,063  $376,382 
Interest expense 19,655  16,082   38,879  32,925 
Net interest revenue 182,612  175,731   365,184  343,457 
Provision for credit losses 20,000  4,000   55,000  4,000 
Net interest revenue after provision for credit losses 162,612  171,731   310,184  339,457 
Other operating revenue:         
Brokerage and trading revenue 39,530  36,012   71,871  67,719 
Transaction card revenue 34,950  32,778   67,304  63,788 
Fiduciary and asset management revenue 34,813  32,712   66,869  64,181 
Deposit service charges and fees 22,618  22,328   45,160  44,012 
Mortgage banking revenue 38,224  36,846   72,654  76,166 
Other revenue 13,352  11,871   25,256  22,672 
Total fees and commissions 183,487  172,547   349,114  338,538 
Other gains, net 1,307  1,457   2,867  2,212 
Gain (loss) on derivatives, net 10,766  (1,032)  17,904  (121)
Gain (loss) on fair value option securities, net 4,279  (8,130)  13,722  (5,483)
Change in fair value of mortgage servicing rights (16,283) 8,010   (44,271) (512)
Gain on available for sale securities, net 5,326  3,433   9,290  7,760 
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 188,882  176,285   348,626  342,302 
Other operating expense:         
Personnel 142,490  132,695   278,333  261,243 
Business promotion 6,703  7,765   12,399  13,513 
Professional fees and services 14,158  9,560   25,917  19,619 
Net occupancy and equipment 19,677  18,927   38,443  37,971 
Insurance 7,129  5,116   14,394  10,096 
Data processing and communications 32,802  30,655   64,819  60,427 
Printing, postage and supplies 3,889  3,553   7,796  7,014 
Net losses and operating expenses of repossessed assets 1,588  223   2,658  836 
Amortization of intangible assets 2,624  1,090   3,783  2,180 
Mortgage banking costs 15,809  8,227   28,188  18,394 
Other expense 7,856  9,302   22,895  16,085 
Total other operating expense 254,725  227,113   499,625  447,378 
          
Net income before taxes 96,769  120,903   159,185  234,381 
Federal and state income taxes 30,497  40,630   51,925  79,014 
          
Net income 66,272  80,273   107,260  155,367 
Net income (loss) attributable to non-controlling interests 471  1,043   (1,105) 1,294 
Net income attributable to BOK Financial Corporation shareholders $65,801  $79,230   $108,365  $154,073 
          
Average shares outstanding:         
Basic 65,245,887  68,096,341   65,271,214  68,175,327 
Diluted 65,302,927  68,210,353   65,317,177  68,277,386 
          
Net income per share:         
Basic $1.00  $1.15   $1.64  $2.23 
Diluted $1.00  $1.15   $1.64  $2.23 
                  


FINANCIAL HIGHLIGHTS -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands, except ratio and share data)
  Three Months Ended
  June 30, 2016 Mar. 31, 2016 Dec. 31, 2015 Sept. 30, 2015 June 30, 2015
Capital:          
Period-end shareholders' equity $3,368,833  $3,321,555  $3,230,556  $3,377,226  $3,375,632 
Risk weighted assets $24,191,016  $23,707,824  $23,429,897  $22,706,537  $22,533,295 
Risk-based capital ratios:          
Common equity tier 1 11.86% 12.00% 12.13% 12.78% 13.01%
Tier 1 11.86% 12.00% 12.13% 12.78% 13.01%
Total capital 13.51% 13.21% 13.30% 13.89% 14.11%
Leverage ratio 9.06% 9.12% 9.25% 9.55% 9.75%
Tangible common equity ratio1 9.33% 9.34% 9.02% 9.78% 9.72%
           
Common stock:          
Book value per share $51.15  $50.21  $49.03  $49.88  $48.96 
Tangible book value per share 44.68  43.73  42.51  43.52  42.70 
Market value per share:          
High $65.14  $60.16  $74.73  $70.26  $71.66 
Low $51.00  $43.74  $58.25  $57.04  $59.59 
Cash dividends paid $28,241  $28,294  $28,967  $28,766  $28,841 
Dividend payout ratio 42.92% 66.47% 48.60% 38.41% 36.40%
Shares outstanding, net 65,866,317  66,155,103  65,894,032  67,713,031  68,945,139 
Stock buy-back program:          
Shares repurchased 305,169    1,874,074  1,258,348   
Amount $17,771  $  $119,780  $80,276  $ 
Average price per share $58.23  $  $63.91  $63.79  $ 
           
Performance ratios (quarter annualized):
Return on average assets 0.83% 0.54% 0.76% 0.97% 1.04%
Return on average equity 8.00% 5.21% 7.12% 8.84% 9.50%
Net interest margin 2.63% 2.65% 2.64% 2.61% 2.61%
Efficiency ratio 68.45% 69.05% 67.93% 64.34% 64.21%
           
Reconciliation of non-GAAP measures:
1  Tangible common equity ratio:          
Total shareholders' equity $3,368,833  $3,321,555  $3,230,556  $3,377,226  $3,375,632 
Less: Goodwill and intangible assets, net 426,111  428,733  429,370  430,460  431,515 
Tangible common equity $2,942,722  $2,892,822  $2,801,186  $2,946,766  $2,944,117 
           
Total assets $31,970,450  $31,413,945  $31,476,128  $30,566,905  $30,725,563 
Less: Goodwill and intangible assets, net 426,111  428,733  429,370  430,460  431,515 
Tangible assets $31,544,339  $30,985,212  $31,046,758  $30,136,445  $30,294,048 
           
Tangible common equity ratio 9.33% 9.34% 9.02% 9.78% 9.72%
           
Other data:          
Fiduciary assets $39,924,734  $39,113,305  $38,333,638  $37,780,669  $38,772,018 
Tax equivalent adjustment $4,372  $4,385  $3,222  $3,244  $3,035 
Net unrealized gain on available for sale securities $195,385  $155,236  $38,109  $144,884  $89,158 
           
           
Mortgage banking:          
Mortgage servicing portfolio $21,178,387  $20,294,662  $19,678,226  $18,928,726  $17,979,623 
Mortgage commitments $965,631  $902,986  $601,147  $742,742  $849,619 
Mortgage loans funded for sale $1,818,844  $1,244,015  $1,365,431  $1,614,225  $1,828,230 
Mortgage loan refinances to total fundings 44% 49% 41% 30% 40%
Mortgage loans sold $1,742,582  $1,239,391  $1,424,527  $1,778,099  $1,861,968 
           
Net realized gains on mortgage loans sold $19,205  $10,779  $15,705  $18,968  $23,856 
Change in net unrealized gain on mortgage loans held for sale 3,221  8,198  (5,615) (251) (743)
Total production revenue 22,426  18,977  10,090  18,717  23,113 
Servicing revenue 15,798  15,453  14,949  14,453  13,733 
Total mortgage banking revenue $38,224  $34,430  $25,039  $33,170  $36,846 
           
Gain (loss) on mortgage servicing rights, net of economic hedge:
Gain (loss) on mortgage hedge derivative contracts, net $10,766  $7,138  $(732) $1,460  $(1,005)
Gain (loss) on fair value option securities, net 4,279  9,443  (4,127) 5,926  (8,130)
Gain (loss) on economic hedge of mortgage servicing rights 15,045  16,581  (4,859) 7,386  (9,135)
Gain (loss) on changes in fair value of mortgage servicing rights (16,283) (27,988) 7,416  (11,757) 8,010 
Gain (loss) on changes in fair value of mortgage servicing rights, net of economic hedges $(1,238) $(11,407) $2,557  $(4,371) $(1,125)
           
Net interest revenue on fair value option securities $1,348  $2,033  $2,137  $2,140  $1,985 
                     


QUARTERLY EARNINGS TREND -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands, except ratio and per share data)
  Three Months Ended
  June 30, 2016 Mar. 31, 2016 Dec. 31, 2015 Sept. 30, 2015 June 30, 2015
           
Interest revenue $202,267  $201,796  $196,782  $193,664  $191,813 
Interest expense 19,655  19,224  15,521  15,028  16,082 
Net interest revenue 182,612  182,572  181,261  178,636  175,731 
Provision for credit losses 20,000  35,000  22,500  7,500  4,000 
Net interest revenue after provision for credit losses 162,612  147,572  158,761  171,136  171,731 
Other operating revenue:          
Brokerage and trading revenue 39,530  32,341  30,255  31,582  36,012 
Transaction card revenue 34,950  32,354  32,319  32,514  32,778 
Fiduciary and asset management revenue 34,813  32,056  31,165  30,807  32,712 
Deposit service charges and fees 22,618  22,542  22,813  23,606  22,328 
Mortgage banking revenue 38,224  34,430  25,039  33,170  36,846 
Other revenue 13,352  11,904  14,233  12,978  11,871 
Total fees and commissions 183,487  165,627  155,824  164,657  172,547 
Other gains, net 1,307  1,560  2,329  1,161  1,457 
Gain (loss) on derivatives, net 10,766  7,138  (732) 1,283  (1,032)
Gain (loss) on fair value option securities, net 4,279  9,443  (4,127) 5,926  (8,130)
Change in fair value of mortgage servicing rights (16,283) (27,988) 7,416  (11,757) 8,010 
Gain on available for sale securities, net 5,326  3,964  2,132  2,166  3,433 
Total other-than-temporary impairment losses     (2,114)    
Portion of loss recognized in other comprehensive income     387     
Net impairment losses recognized in earnings     (1,727)    
Total other operating revenue 188,882  159,744  161,115  163,436  176,285 
Other operating expense:          
Personnel 142,490  135,843  133,182  129,062  132,695 
Business promotion 6,703  5,696  8,416  5,922  7,765 
Charitable contributions to BOKF Foundation       796   
Professional fees and services 14,158  11,759  10,357  10,147  9,560 
Net occupancy and equipment 19,677  18,766  19,356  18,689  18,927 
Insurance 7,129  7,265  5,415  4,864  5,116 
Data processing and communications 32,802  32,017  31,248  30,708  30,655 
Printing, postage and supplies 3,889  3,907  3,108  3,376  3,553 
Net losses and operating expenses of repossessed assets 1,588  1,070  343  267  223 
Amortization of intangible assets 2,624  1,159  1,090  1,089  1,090 
Mortgage banking costs 15,809  12,379  11,496  9,107  8,227 
Other expense 7,856  15,039  8,547  10,601  9,302 
Total other operating expense 254,725  244,900  232,558  224,628  227,113 
Net income before taxes 96,769  62,416  87,318  109,944  120,903 
Federal and state income taxes 30,497  21,428  26,242  34,128  40,630 
Net income 66,272  40,988  61,076  75,816  80,273 
Net income (loss) attributable to non-controlling interests 471  (1,576) 1,475  925  1,043 
Net income attributable to BOK Financial Corporation shareholders $65,801  $42,564  $59,601  $74,891  $79,230 
           
Average shares outstanding:          
Basic 65,245,887  65,296,541  66,378,380  67,668,076  68,096,341 
Diluted 65,302,927  65,331,428  66,467,729  67,762,483  68,210,353 
Net income per share:          
Basic $1.00  $0.64  $0.89  $1.09  $1.15 
Diluted $1.00  $0.64  $0.89  $1.09  $1.15 
                     


LOANS TREND -- UNAUDITED
BOK FINANCIAL CORPORATION
(In thousands)
  June 30, 2016 Mar. 31, 2016 Dec. 31, 2015 Sept. 30, 2015 June 30, 2015
Commercial:          
Energy $2,818,656  $3,029,420  $3,097,328  $2,838,167  $2,902,143 
Services 2,830,864  2,728,891  2,784,276  2,706,624  2,681,126 
Healthcare 2,051,146  1,995,425  1,883,380  1,741,680  1,646,025 
Wholesale/retail 1,532,957  1,451,846  1,422,064  1,461,936  1,533,730 
Manufacturing 595,403  600,645  556,729  555,677  579,549 
Other commercial and industrial 527,411  482,198  508,754  493,338  433,148 
Total commercial 10,356,437  10,288,425  10,252,531  9,797,422  9,775,721 
           
Commercial real estate:          
Retail 795,419  810,522  796,499  769,449  688,447 
Multifamily 787,200  733,689  751,085  758,658  711,333 
Office 769,112  695,552  637,707  626,151  563,085 
Industrial 645,586  564,467  563,169  563,871  488,054 
Residential construction and land development 157,576  171,949  160,426  153,510  148,574 
Other commercial real estate 427,073  394,328  350,147  363,428  434,004 
Total commercial real estate 3,581,966  3,370,507  3,259,033  3,235,067  3,033,497 
           
Residential mortgage:          
Permanent mortgage 969,007  948,405  945,336  937,664  946,324 
Permanent mortgages guaranteed by U.S. government agencies 192,732  197,350  196,937  192,712  190,839 
Home equity 719,184  723,554  734,620  738,619  747,565 
Total residential mortgage 1,880,923  1,869,309  1,876,893  1,868,995  1,884,728 
           
Personal 587,423  494,325  552,697  465,957  430,190 
           
Total $16,406,749  $16,022,566  $15,941,154  $15,367,441  $15,124,136 
                     


LOANS BY PRINCIPAL MARKET AREA -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands)
  June 30, 2016 Mar. 31, 2016 Dec. 31, 2015 Sept. 30, 2015 June 30, 2015
           
Bank of Oklahoma:          
Commercial $3,698,215  $3,656,034  $3,782,687  $3,514,391  $3,529,406 
Commercial real estate 781,458  747,689  739,829  677,372  614,995 
Residential mortgage 1,415,766  1,411,409  1,409,114  1,405,235  1,413,690 
Personal 246,229  204,158  255,387  185,463  190,909 
Total Bank of Oklahoma 6,141,668  6,019,290  6,187,017  5,782,461  5,749,000 
           
Bank of Texas:          
Commercial 3,901,632  3,936,809  3,908,425  3,752,193  3,738,742 
Commercial real estate 1,311,408  1,211,978  1,204,202  1,257,741  1,158,056 
Residential mortgage 222,548  217,539  219,126  222,395  228,683 
Personal 233,304  210,456  203,496  194,051  156,260 
Total Bank of Texas 5,668,892  5,576,782  5,535,249  5,426,380  5,281,741 
           
Bank of Albuquerque:          
Commercial 398,427  402,082  375,839  368,027  392,362 
Commercial real estate 322,956  323,059  313,422  312,953  291,953 
Residential mortgage 114,226  117,655  120,507  121,232  123,376 
Personal 10,569  10,823  11,557  10,477  11,939 
Total Bank of Albuquerque 846,178  853,619  821,325  812,689  819,630 
           
Bank of Arkansas:          
Commercial 81,227  79,808  92,359  76,044  99,086 
Commercial real estate 69,235  66,674  69,320  82,225  85,997 
Residential mortgage 6,874  7,212  8,169  8,063  6,999 
Personal 7,025  918  819  4,921  5,189 
Total Bank of Arkansas 164,361  154,612  170,667  171,253  197,271 
           
Colorado State Bank & Trust:          
Commercial 1,076,620  1,030,348  987,076  1,029,694  1,019,454 
Commercial real estate 237,569  219,078  223,946  229,835  229,721 
Residential mortgage 59,425  52,961  53,782  50,138  54,135 
Personal 35,064  24,497  23,384  30,683  30,373 
Total Colorado State Bank & Trust 1,408,678  1,326,884  1,288,188  1,340,350  1,333,683 
           
Bank of Arizona:          
Commercial 670,814  656,527  606,733  608,235  572,477 
Commercial real estate 639,112  605,383  507,523  482,918  472,061 
Residential mortgage 38,998  40,338  44,047  41,722  37,493 
Personal 24,248  18,372  31,060  17,609  12,875 
Total Bank of Arizona 1,373,172  1,320,620  1,189,363  1,150,484  1,094,906 
           
Bank of Kansas City:          
Commercial 529,502  526,817  499,412  448,838  424,194 
Commercial real estate 220,228  196,646  200,791  192,023  180,714 
Residential mortgage 23,086  22,195  22,148  20,210  20,352 
Personal 30,984  25,101  26,994  22,753  22,645 
Total Bank of Kansas City 803,800  770,759  749,345  683,824  647,905 
           
TOTAL BOK FINANCIAL $16,406,749  $16,022,566  $15,941,154  $15,367,441  $15,124,136 
                     
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)
  June 30, 2016 March 31, 2016 Dec. 31, 2015 Sept. 30, 2015 June 30, 2015
Bank of Oklahoma:          
Demand $4,020,181  $3,813,128  $4,133,520  $3,834,145  $4,068,088 
Interest-bearing:          
Transaction 5,741,302  5,706,067  5,971,819  5,783,258  6,018,381 
Savings 247,984  246,122  226,733  225,580  225,694 
Time 1,167,271  1,198,022  1,202,274  1,253,137  1,380,566 
Total interest-bearing 7,156,557  7,150,211  7,400,826  7,261,975  7,624,641 
Total Bank of Oklahoma 11,176,738  10,963,339  11,534,346  11,096,120  11,692,729 
           
Bank of Texas:          
Demand 2,677,253  2,571,883  2,627,764  2,689,493  2,565,234 
Interest-bearing:          
Transaction 2,035,634  2,106,905  2,132,099  1,996,223  2,020,817 
Savings 83,862  83,263  77,902  74,674  74,373 
Time 516,231  530,657  549,740  554,106  536,844 
Total interest-bearing 2,635,727  2,720,825  2,759,741  2,625,003  2,632,034 
Total Bank of Texas 5,312,980  5,292,708  5,387,505  5,314,496  5,197,268 
           
Bank of Albuquerque:          
Demand 530,853  557,200  487,286  520,785  508,224 
Interest-bearing:          
Transaction 573,690  560,684  563,723  529,862  537,156 
Savings 49,200  47,187  43,672  41,380  41,802 
Time 250,068  259,630  267,821  281,426  285,890 
Total interest-bearing 872,958  867,501  875,216  852,668  864,848 
Total Bank of Albuquerque 1,403,811  1,424,701  1,362,502  1,373,453  1,373,072 
           
Bank of Arkansas:          
Demand 30,607  31,318  27,252  25,397  19,731 
Interest-bearing:          
Transaction 278,335  265,803  202,857  290,728  284,349 
Savings 1,853  1,929  1,747  1,573  1,712 
Time 18,911  21,035  24,983  26,203  28,220 
Total interest-bearing 299,099  288,767  229,587  318,504  314,281 
Total Bank of Arkansas 329,706  320,085  256,839  343,901  334,012 
           
Colorado State Bank & Trust:          
Demand 528,124  413,506  497,318  430,675  403,491 
Interest-bearing:          
Transaction 625,240  610,077  616,697  655,206  601,741 
Savings 31,509  33,108  31,927  31,398  31,285 
Time 254,164  271,475  296,224  320,279  322,432 
Total interest-bearing 910,913  914,660  944,848  1,006,883  955,458 
Total Colorado State Bank & Trust 1,439,037  1,328,166  1,442,166  1,437,558  1,358,949 
           
           
Bank of Arizona:          
Demand 396,837  341,828  326,324  306,425  352,024 
Interest-bearing:          
Transaction 302,297  313,825  358,556  293,319  298,073 
Savings 3,198  3,277  2,893  4,121  2,726 
Time 28,681  29,053  29,498  26,750  28,165 
Total interest-bearing 334,176  346,155  390,947  324,190  328,964 
Total Bank of Arizona 731,013  687,983  717,271  630,615  680,988 
           
Bank of Kansas City:          
Demand 240,754  221,812  197,424  234,847  239,609 
Interest-bearing:          
Transaction 112,371  146,405  153,203  150,253  139,260 
Savings 1,656  1,619  1,378  1,570  1,580 
Time 11,735  31,502  35,524  36,630  42,262 
Total interest-bearing 125,762  179,526  190,105  188,453  183,102 
Total Bank of Kansas City 366,516  401,338  387,529  423,300  422,711 
           
TOTAL BOK FINANCIAL $20,759,801  $20,418,320  $21,088,158  $20,619,443  $21,059,729 
                     


NET INTEREST MARGIN TREND -- UNAUDITED
BOK FINANCIAL CORPORATION
  Three Months Ended
  June 30, 2016 Mar. 31, 2016 Dec. 31, 2015 Sept. 30, 2015 June 30, 2015
           
TAX-EQUIVALENT ASSETS YIELDS          
Interest-bearing cash and cash equivalents 0.51% 0.53% 0.29% 0.28% 0.25%
Trading securities 1.89% 2.47% 2.86% 2.70% 1.85%
Investment securities:          
Taxable 5.41% 5.53% 5.41% 5.49% 5.49%
Tax-exempt 2.25% 2.22% 1.53% 1.54% 1.56%
Total investment securities 3.52% 3.51% 3.03% 3.04% 3.05%
Available for sale securities:          
Taxable 2.01% 2.06% 2.02% 1.99% 1.92%
Tax-exempt 5.06% 4.95% 4.22% 4.15% 4.21%
Total available for sale securities 2.04% 2.08% 2.04% 2.01% 1.94%
Fair value option securities 2.19% 2.38% 2.32% 2.30% 2.17%
Restricted equity securities 4.84% 5.85% 5.95% 5.95% 5.82%
Residential mortgage loans held for sale 3.53% 3.75% 3.85% 3.79% 3.37%
Loans 3.58% 3.57% 3.55% 3.54% 3.65%
Allowance for loan losses          
Loans, net of allowance 3.63% 3.63% 3.60% 3.59% 3.70%
Total tax-equivalent yield on earning assets 2.91% 2.92% 2.86% 2.83% 2.84%
           
COST OF INTEREST-BEARING LIABILITIES        
Interest-bearing deposits:          
Interest-bearing transaction 0.14% 0.14% 0.09% 0.08% 0.09%
Savings 0.10% 0.09% 0.09% 0.10% 0.11%
Time 1.16% 1.21% 1.26% 1.33% 1.36%
Total interest-bearing deposits 0.33% 0.34% 0.32% 0.34% 0.35%
Funds purchased 0.19% 0.27% 0.11% 0.08% 0.08%
Repurchase agreements 0.05% 0.05% 0.04% 0.03% 0.03%
Other borrowings 0.57% 0.56% 0.38% 0.30% 0.31%
Subordinated debt 1.52% 1.26% 1.13% 1.04% 2.21%
Total cost of interest-bearing liabilities 0.41% 0.40% 0.34% 0.32% 0.35%
Tax-equivalent net interest revenue spread 2.50% 2.52% 2.52% 2.51% 2.49%
Effect of noninterest-bearing funding sources and other 0.13% 0.13% 0.12% 0.10% 0.12%
Tax-equivalent net interest margin 2.63% 2.65% 2.64% 2.61% 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 -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands, except ratios)
  Three Months Ended
  June 30, 2016 Mar. 31, 2016 Dec. 31, 2015 Sept. 30, 2015 June 30, 2015
Nonperforming assets:          
Nonaccruing loans:          
Commercial $181,989  $174,652  $76,424  $33,798  $24,233 
Commercial real estate 7,780  9,270  9,001  10,956  20,139 
Residential mortgage 57,061  57,577  61,240  44,099  45,969 
Personal 354  331  463  494  550 
Total nonaccruing loans 247,184  241,830  147,128  89,347  90,891 
Accruing renegotiated loans guaranteed by U.S. government agencies 78,806  77,597  74,049  81,598  82,368 
Real estate and other repossessed assets 24,054  29,896  30,731  33,116  35,499 
Total nonperforming assets $350,044  $349,323  $251,908  $204,061  $208,758 
Total nonperforming assets excluding those guaranteed by U.S. government agencies $251,497  $252,176  $155,959  $118,578  $122,673 
           
Nonaccruing loans by loan class:          
Commercial:          
Energy $168,145  $159,553  $61,189  $17,880  $6,841 
Services 9,388  9,512  10,290  10,692  10,944 
Wholesale / retail 2,772  3,685  2,919  3,058  4,166 
Manufacturing 293  312  331  352  379 
Healthcare 875  1,023  1,072  1,218  1,278 
Other commercial and industrial 516  567  623  598  625 
Total commercial 181,989  174,652  76,424  33,798  24,233 
Commercial real estate:          
Residential construction and land development 4,261  4,789  4,409  4,748  9,367 
Retail 1,265  1,302  1,319  1,648  3,826 
Office 606  629  651  684  2,360 
Multifamily 65  250  274  185  195 
Industrial 76  76  76  76  76 
Other commercial real estate 1,507  2,224  2,272  3,615  4,315 
Total commercial real estate 7,780  9,270  9,001  10,956  20,139 
Residential mortgage:          
Permanent mortgage 27,228  27,497  28,984  30,660  32,187 
Permanent mortgage guaranteed by U.S. government agencies 19,741  19,550  21,900  3,885  3,717 
Home equity 10,092  10,530  10,356  9,554  10,065 
Total residential mortgage 57,061  57,577  61,240  44,099  45,969 
Personal 354  331  463  494  550 
Total nonaccruing loans $247,184  $241,830  $147,128  $89,347  $90,891 
           
           
Performing loans 90 days past due1 $2,899  $8,019  $1,207  $101  $99 
           
Gross charge-offs $(8,845) $(23,991) $(4,851) $(5,274) $(2,877)
Recoveries 1,386  1,519  1,870  3,521  2,206 
Net charge-offs $(7,459) $(22,472) $(2,981) $(1,753) $(671)
           
Provision for credit losses $20,000  $35,000  $22,500  $7,500  $4,000 
           
Allowance for loan losses to period end loans 1.48% 1.46% 1.41% 1.33% 1.33%
Combined allowance for credit losses to period end loans 1.54% 1.50% 1.43% 1.35% 1.34%
Nonperforming assets to period end loans and repossessed assets 2.13% 2.18% 1.58% 1.33% 1.38%
Net charge-offs (annualized) to average loans 0.18% 0.56% 0.08% 0.05% 0.02%
Allowance for loan losses to nonaccruing loans1 106.95% 104.89% 180.09% 238.84% 230.67%
Combined allowance for credit losses to nonaccruing loans1 110.93% 107.87% 181.46% 243.05% 231.68%
                
1  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 (July 27, 2016 - 8:02 AM EDT)

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