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
Source: GlobeNewswire
(July 27, 2016 - 8:02 AM EDT)