Press Release

BOK Financial Reports Quarterly Earnings of $88 Million

Results Driven by Margin Expansion and Operating Expense Containment

Company Release - 4/26/2017 7:50 AM ET

TULSA, Okla., April 26, 2017 (GLOBE NEWSWIRE) -- BOK Financial Corporation (Nasdaq:BOKF) reported net income of $88.4 million or $1.35 per diluted share for the first quarter of 2017. Net income was $50.0 million or $0.76 per diluted share for the fourth quarter of 2016 and $42.6 million or $0.64 per diluted share for the first quarter of 2016.

Steven G. Bradshaw, president and chief executive officer of BOK Financial, stated, “The year is off to a very strong start, and financial results in the first quarter of 2017 represent the second-highest net income total in our company’s history. Net interest margin and net interest revenue are up substantially due to the improved interest rate environment. Fee and commissions revenue growth remains steady, driven by the strength of our diverse wealth management business. And cost containment initiatives executed last year are driving much better results in terms of expense management, with total expenses down by over $20 million sequentially despite including the first full quarter of Mobank-related operating expenses.”

Bradshaw continued, “We completed the operational conversion of Mobank in February, and this acquisition is well ahead of our financial forecasts. With Mobank, total deposits at quarter–end are up 11 percent compared to March 31, 2016; and organic deposit growth during the same period was 6.5 percent. Our deposit franchise provides a significant funding advantage, and while we continue to believe that some demand deposits will migrate into interest–bearing accounts in the current rising rate environment, to date we have seen very limited pressure on deposit costs.”

First Quarter 2017 Highlights

  • Net interest revenue totaled $201.2 million for the first quarter of 2017, up $7.0 million over the fourth quarter of 2016. Net interest margin was 2.81 percent for the first quarter of 2017, compared to 2.69 percent for the fourth quarter of 2016. Average earning assets increased $416 million during the first quarter of 2017, primarily due to a $412 million increase in average loan balances.
  • Fees and commissions revenue totaled $164.4 million for the first quarter of 2017, a $2.3 million increase over the prior quarter. Fiduciary and asset management revenue grew by $4.1 million due to an increase in the value of assets managed and a decrease in waived fees. Mortgage banking revenue decreased $3.2 million and transaction card revenue decreased $2.4 million. Brokerage and trading revenue was unchanged, excluding a $5.0 million loss on trading asset positions from the previous quarter.
  • The change in the fair value of mortgage servicing rights, net of economic hedges increased pre-tax net income in the first quarter of 2017 by $188 thousand. The change in the fair value of mortgage servicing rights, net of economic hedges decreased pre-tax net income in the fourth quarter of 2016 by $17.0 million.
  • Operating expense was $244.7 million for the first quarter of 2017, a decrease of $20.8 million compared to the prior quarter. Expenses related to the Mobank acquisition, severance and a contribution to the BOKF Foundation added $11.7 million to the fourth quarter of 2016. Excluding these items, operating expense decreased $9.1 million, primarily due to lower mortgage banking and deposit insurance costs.
  • Income tax expense was $38.1 million or 30.1 percent of net income before taxes for the first quarter of 2017, compared to $22.5 million or 31.1 percent in the fourth quarter of 2016. The first quarter included a $3.9 million benefit related to the implementation of a new accounting standard that includes the tax effect of vested equity compensation awards in income tax expense. Previously the tax effect of these awards was included in stockholders' equity.
  • No provision for credit losses was recorded in the first quarter of 2017 or the fourth quarter of 2016 due to continued improvement in credit metric trends. The company had a net recovery of $747 thousand in the first quarter of 2017, compared to a net recovery of $1.2 million in the previous quarter.
  • The combined allowance for credit losses totaled $258 million or 1.52 percent of outstanding loans at March 31, 2017 compared to $257 million or 1.52 percent of outstanding loans at December 31, 2016.
  • Nonperforming assets that are not guaranteed by U.S. government agencies totaled $240 million or 1.43 percent of outstanding loans and repossessed assets (excluding those guaranteed by U.S. government agencies) at March 31, 2017 and $263 million or 1.56 percent of outstanding loans and repossessed assets (excluding those guaranteed by U.S. government agencies) at December 31, 2016. The decrease in nonperforming assets was primarily due to a $22 million decrease in nonaccruing energy loans. 
  • Average loans increased by $412 million over the previous quarter, primarily due to a full quarter's impact of the Mobank acquisition. Excluding this impact, average loan balances were largely unchanged compared to the fourth quarter of 2016. Period-end outstanding loan balances totaled $17.0 billion at March 31, 2017, largely unchanged compared to December 31, 2016.
  • Average deposits increased $666 million over the previous quarter, including $390 million related to the impact of a full quarter of deposits from the Mobank acquisition. Excluding this impact, average interest-bearing transaction deposits grew by $402 million and time deposit balances were up $63 million, partially offset by a $201 million decrease in demand deposits. Period-end deposits were $22.6 billion at March 31, 2017, a $173 million decrease compared to December 31, 2016. 
  • The common equity Tier 1 capital ratio at March 31, 2017 was 11.60 percent. Other regulatory capital ratios were Tier 1 capital ratio, 11.60 percent, total capital ratio, 13.26 percent and leverage ratio, 8.89 percent. At December 31, 2016, the common equity Tier 1 capital ratio was 11.21 percent, the Tier 1 capital ratio was 11.21 percent, total capital ratio was 12.81 percent, and leverage ratio was 8.72 percent.
  • The company paid a regular quarterly cash dividend of $29 million or $0.44 per common share during the first quarter of 2017. On April 25, 2017, the board of directors approved a quarterly cash dividend of $0.44 per common share payable on or about May 26, 2017 to shareholders of record as of May 12, 2017.

Net Interest Revenue

Net interest revenue was $201.2 million for the first quarter of 2017, up $7.0 million over the fourth quarter of 2016.

Net interest margin was 2.81 percent for the first quarter of 2017, an increase of 12 basis points over the fourth quarter of 2016, due largely to a full quarter effect of the Fed's 25 basis point December increase in short-term rates. The yield on average earning assets was 3.15 percent, an increase of 17 basis points. The loan portfolio yield increased 21 basis points to 3.88 percent primarily due to increases in the 30 day and 90 day LIBOR and improved energy loan yields. The yield on the available for sale securities portfolio increased 5 basis points to 2.05 percent. The yield on interest-bearing cash and cash equivalents increased 27 basis points.  Funding costs were 0.52 percent, up 8 basis points. Growth in the cost of interest-bearing deposits was limited to 3 basis points by a lack of market pricing pressure. 

Average earning assets increased $416 million during the first quarter of 2017. Average loan balances increased $412 million, primarily due to a full quarter's impact of the Mobank acquisition. The average balance of fair value option securities held as an economic hedge of our mortgage servicing rights increased $206 million. Average trading securities portfolio balances increased $103 million and interest-bearing cash and cash equivalents balances were up $55 million. These increases were offset by a $200 million decrease in available for sale securities portfolio balances and a $125 million decrease in the average balance of residential mortgage loans held for sale.

Average interest-bearing deposit balances increased $689 million over the fourth quarter of 2016, including $212 million related to a full quarter's impact of the Mobank acquisition. The average balance of borrowed funds decreased $378 million.

Fees and Commissions Revenue

Fees and commissions revenue totaled $164.4 million for the first quarter of 2017, an increase of $2.3 million over the fourth quarter of 2016. Brokerage and trading revenue for the fourth quarter of 2016 included a $5.0 million decrease in the value of trading assets caused by an unexpected 85 basis point increase in the 10-year U.S. Treasury interest rate and related rates.

Fiduciary and asset management revenue grew by $4.1 million over the fourth quarter of 2016 to $38.6 million. Revenue growth was largely due to a $2.6 billion increase in the value of fiduciary assets under management to a record high of $44.4 billion at March 31, 2017. Additionally, waived fees earned as administrator and investment advisor of the Cavanal Hill Funds decreased $964 thousand compared to the previous quarter of $445 thousand.

Mortgage banking revenue totaled $25.2 million for the first quarter of 2017, a $3.2 million decrease over the fourth quarter of 2016. Revenue from mortgage loan production decreased $3.4 million due to a $103 million decrease in mortgage production volume and a 26 basis point decrease in gain on sale margin compared to the prior quarter. Production volume decreased in response to higher primary mortgage interest rates and margin narrowed due to increased competition, largely in the Home Direct online delivery channel.

Transaction card revenue was down $2.4 million, primarily due to a seasonal decrease in transaction volumes.

Operating Expense

Total operating expense was $244.7 million for the first quarter of 2017, a decrease of $20.8 million compared to the fourth quarter of 2016. Expenses related to the completion of the Mobank acquisition were $2.0 million in the first quarter of 2017 and $4.7 million in the fourth quarter of 2016. In addition, operating expense in the fourth quarter of 2016 included $5.0 million of severance and other expenses related to staff reductions and a $2.0 million contribution to the BOKF Foundation. The discussion following excludes the impact of these items.

Personnel expense increased $1.9 million over the fourth quarter of 2016. Employee benefits costs were up $4.7 million primarily due to a seasonal increase in payroll tax expense and increased employee retirement plans costs, partially offset by lower employee medical costs. Regular compensation increased $2.5 million and included a full quarter impact of the Mobank acquisition. Incentive compensation expense decreased $5.3 million.

Non-personnel expense decreased $13.1 million compared to the fourth quarter of 2016. Mortgage banking expense decreased $4.3 million primarily due to the effect of slowing actual residential mortgage loan prepayments on the fair value of mortgage servicing rights. Deposit insurance expense was $2.3 million lower due to improvements in credit quality and other risk factors. Professional fees were down $2.3 million and other expenses decreased $2.3 million.

Loans, Deposits and Capital

Loans

Outstanding loans were $17.0 billion at March 31, 2017, largely unchanged compared to the previous quarter. Growth in commercial real estate was offset by a decrease in commercial loan balances.

Outstanding commercial loan balances decreased $64 million. Healthcare sector loans grew by $64 million. Energy loan balances increased $39 million. Unfunded energy loan commitments were largely unchanged at $2.7 billion. Manufacturing loans increased $28 million. This growth was offset by a $96 million decrease in service sector loan balances, a $71 million decrease in wholesale/retail sector loan balances and a $29 million decrease in other commercial and industrial loans.

Commercial real estate loans grew by $62 million. Loans secured by office buildings increased by $62 million and were broadly distributed across the Texas, New Mexico and Oklahoma markets. Multifamily residential loans increased $20 million. Growth in the Arizona and Kansas/Missouri markets was partially offset by a decrease in loans attributed to the Texas and Oklahoma markets. Retail sector loans decreased $17 million, primarily in the Texas and Arizona markets, partially offset by growth in the Oklahoma market.

Deposits

Period-end deposits totaled $22.6 billion at March 31, 2017, a $173 million decrease compared to December 31, 2016. Interest-bearing transaction account balances decreased $506 million, partially offset by a $271 million increase in demand deposit balances. In addition, both savings and time deposit balances grew over the prior quarter. Excluding the impact of allocating Mobank deposits among the lines of business, Wealth Management deposits decreased $154 million and Commercial Banking deposits decreased $101 million. Consumer Banking deposits grew by $122 million. 

Capital

The company's common equity Tier 1 capital ratio was 11.60 percent at March 31, 2017. In addition, the company's Tier 1 capital ratio was 11.60 percent, total capital ratio was 13.26 percent and leverage ratio was 8.89 percent at March 31, 2017. At December 31, 2016, the company's common equity Tier 1 capital ratio was 11.21 percent, Tier 1 capital ratio was 11.21 percent, total capital ratio was 12.81 percent, and leverage ratio was 8.72 percent.

The company's tangible common equity ratio, a non-GAAP measure, was 8.88 percent at March 31, 2017 and 8.61 percent at December 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 $334 million or 1.96 percent of outstanding loans and repossessed assets at March 31, 2017 compared to $357 million or 2.09 percent at December 31, 2016. Nonperforming assets that are not guaranteed by U.S. government agencies totaled $240 million or 1.43 percent of outstanding loans and repossessed assets (excluding those guaranteed by U.S. government agencies) at March 31, 2017 compared to $263 million or 1.56 percent at December 31, 2016. 

Nonaccruing loans totaled $208 million or 1.22 percent of outstanding loans at March 31, 2017, down from $231 million or 1.36 percent of outstanding loans at December 31, 2016. The decrease in nonaccruing loans was primarily due to a $22 million decrease in nonaccruing energy loans. New nonaccruing loans identified in the first quarter totaled $23 million, offset by $35 million in payments received, $2.2 million in charge-offs and $3.3 million in foreclosures and repossessions.  Additionally, $5.9 million was returned to accruing status based on improved credit risk and performance. At March 31, 2017, nonaccruing commercial loans totaled $157 million or 1.52 percent of outstanding commercial loans, nonaccruing commercial real estate loans totaled $4.5 million or 0.12 percent of outstanding commercial real estate loans and nonaccruing residential mortgage loans totaled $46 million or 2.37 percent of outstanding residential mortgage loans.

Potential problem loans, which are defined as performing loans based on known information cause management concern as to the borrowers' ability to continue to perform, totaled $413 million at March 31 compared to $399 million at December 31. The increase largely resulted from healthcare and manufacturing potential problem loans, partially offset by a decrease in potential problem energy loans.

Marc Maun, chief credit officer, stated, “We continued to see a stable credit environment in the first quarter, with no segments of our loan portfolio showing any material signs of stress. We recognized net recoveries during the quarter, saw nonaccrual loans decrease by over ten percent, and have a combined allowance for credit losses to period–end loans at or near the top of our peer group of mid-sized regional banks.  After evaluating all credit factors, no provision for loan losses was booked for the first quarter. Looking forward, we are forecasting $15 million to $20 million provision for the full year.”

Maun continued, “Retail commercial real estate (CRE) has been in the spotlight recently due to several high–profile retailer store closings.  I’m pleased to report that as of March 31, 2017 we had minimal criticized or classified retail CRE loans in our portfolio.  Our portfolio is carefully constructed to limit CRE exposure to any one retailer, is geographically diverse, and represents best–in–class retail developers with multiple sources of repayment.”

The company had a net recovery of $747 thousand for the first quarter of 2017, compared to a net recovery of $1.2 million in the fourth quarter of 2016. Gross charge-offs totaled $2.2 million for the first quarter, compared to $1.7 million for the previous quarter. Recoveries totaled $2.9 million for the first quarter of 2017 and $2.8 million for the fourth quarter of 2016.

As noted above, the company determined that no provision for credit losses was necessary during the first quarter of 2017 based on the continued improvement in credit metrics. No provision for credit losses was recorded in the previous quarter. The combined allowance for credit losses totaled $258 million or 1.52 percent of outstanding loans and 131 percent of nonaccruing loans at March 31, 2017. The allowance for loan losses was $249 million and the accrual for off-balance sheet credit losses was $9.4 million.

Securities and Derivatives

The fair value of the available for sale securities portfolio totaled $8.4 billion at March 31, 2017, a $240 million decrease compared to December 31, 2016. At March 31, 2017, the available for sale portfolio consisted primarily of $5.4 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 March 31, 2017, the available for sale securities portfolio had a net unrealized loss of $5.5 million compared to a net unrealized loss of $15 million at December 31, 2016. The decrease in net unrealized loss was primarily due to changes in interest rates during the quarter. Net unrealized losses on residential mortgage-backed securities issued by U.S. government agencies at March 31, 2017 decreased $7.7 million during the first quarter to $7.3 million. Commercial mortgage-backed securities had a net unrealized loss of $18 million at March 31, 2017, unchanged compared to December 31, 2016.

The company also maintains a portfolio of financial instruments primarily consisting 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.

The net economic benefit of the changes in fair value of mortgage servicing rights and related economic hedges was $1.5 million, including a $1.9 million increase in the fair value of the mortgage servicing rights, a $1.7 million decrease in the fair value of securities and derivative contracts held as an economic hedge and $1.3 million of related net interest revenue. The improvement over the prior quarter was due primarily to materially higher long-term interest rates and a relatively stable rate environment during the first quarter.

The fair value of mortgage servicing rights increased by $39.8 million during the fourth quarter of 2016 primarily due to an increase in residential mortgage rates during the quarter. The fair value of securities and interest rate derivative contracts held as an economic hedge of mortgage servicing rights decreased by $56.8 million. The significant increase in long-term interest rates in the fourth quarter resulted in a loss on this hedge, partially offset by an increase in the fair value of the mortgage servicing rights.

Conference Call and Webcast

The company will hold a conference call at 9 a.m. Central time on Wednesday, April 26, 2017 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 1-201-689-8471. A conference call and webcast replay will also be available shortly after conclusion of the live call at www.bokf.com or by dialing 1-844-512-2921 and referencing conference ID # 13659658.

About BOK Financial Corporation

BOK Financial Corporation is a $33 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, Mobank, 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 March 31, 2017 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)
 March 31, 2017 Dec. 31, 2016 March 31, 2016
ASSETS     
Cash and due from banks$546,575  $620,846  $481,510 
Interest-bearing cash and cash equivalents2,220,640  1,916,651  1,831,162 
Trading securities677,156  337,628  279,539 
Investment securities519,402  546,145  576,047 
Available for sale securities8,437,291  8,676,829  8,886,036 
Fair value option securities441,714  77,046  418,887 
Restricted equity securities283,936  307,240  314,590 
Residential mortgage loans held for sale248,707  301,897  332,040 
Loans:     
Commercial10,327,110  10,390,824  10,288,425 
Commercial real estate3,871,063  3,809,046  3,370,507 
Residential mortgage1,946,274  1,949,832  1,869,309 
Personal847,459  839,958  494,325 
Total loans16,991,906  16,989,660  16,022,566 
Allowance for loan losses(248,710) (246,159) (233,156)
Loans, net of allowance16,743,196  16,743,501  15,789,410 
Premises and equipment, net325,546  325,849  311,161 
Receivables394,394  772,952  167,209 
Goodwill445,738  448,899  383,789 
Intangible assets, net42,556  46,931  44,944 
Mortgage servicing rights249,403  247,073  196,055 
Real estate and other repossessed assets, net42,726  44,287  29,896 
Derivative contracts, net304,727  689,872  790,146 
Cash surrender value of bank-owned life insurance310,537  308,430  305,510 
Receivable on unsettled securities sales9,921  7,188  5,640 
Other assets384,767  353,017  270,374 
TOTAL ASSETS$32,628,932  $32,772,281  $31,413,945 
      
LIABILITIES AND EQUITY     
Deposits:     
Demand$9,506,573  $9,235,720  $7,950,675 
Interest-bearing transaction10,359,214  10,865,105  9,709,766 
Savings465,724  425,470  416,505 
Time2,243,848  2,221,800  2,341,374 
Total deposits22,575,359  22,748,095  20,418,320 
Funds purchased47,629  57,929  62,755 
Repurchase agreements508,352  668,661  630,101 
Other borrowings5,238,947  4,846,072  5,633,862 
Subordinated debentures144,649  144,640  226,385 
Accrued interest, taxes and expense140,235  146,704  148,711 
Due on unsettled securities purchases137,069  6,508  19,508 
Derivative contracts, net276,422  664,531  705,578 
Other liabilities189,376  182,784  212,460 
TOTAL LIABILITIES29,258,038  29,465,924  28,057,680 
Shareholders' equity:     
Capital, surplus and retained earnings3,346,965  3,285,821  3,228,446 
Accumulated other comprehensive income (loss)(5,221) (10,967) 93,109 
TOTAL SHAREHOLDERS' EQUITY3,341,744  3,274,854  3,321,555 
Non-controlling interests29,150  31,503  34,710 
TOTAL EQUITY3,370,894  3,306,357  3,356,265 
TOTAL LIABILITIES AND EQUITY$32,628,932  $32,772,281  $31,413,945 

 

AVERAGE BALANCE SHEETS -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands)
 Three Months Ended
 March 31, 2017 Dec. 31, 2016 Sept. 30, 2016 June 30, 2016 March 31, 2016
ASSETS         
Interest-bearing cash and cash equivalents$2,087,964  $2,032,785  $2,047,991  $2,022,028  $2,052,840 
Trading securities579,549  476,498  366,545  237,808  188,100 
Investment securities530,936  542,869  552,592  562,391  587,465 
Available for sale securities8,567,049  8,766,555  8,862,590  8,890,112  8,951,435 
Fair value option securities416,524  210,733  266,998  368,434  450,478 
Restricted equity securities312,498  334,114  335,812  319,136  294,529 
Residential mortgage loans held for sale220,325  345,066  445,930  401,114  289,743 
Loans:         
Commercial10,414,579  10,228,095  10,109,692  10,265,782  10,268,793 
Commercial real estate3,903,850  3,749,393  3,789,673  3,550,611  3,364,076 
Residential mortgage1,962,759  1,919,296  1,870,855  1,864,458  1,865,742 
Personal854,637  826,804  677,530  582,281  493,382 
Total loans17,135,825  16,723,588  16,447,750  16,263,132  15,991,993 
Allowance for loan losses(249,379) (246,977) (247,901) (245,448) (234,116)
Total loans, net16,886,446  16,476,611  16,199,849  16,017,684  15,757,877 
Total earning assets29,601,291  29,185,231  29,078,307  28,818,707  28,572,467 
Cash and due from banks547,104  578,694  511,534  507,085  505,522 
Derivative contracts, net401,886  681,455  766,671  823,584  632,102 
Cash surrender value of bank-owned life insurance309,223  309,532  308,670  306,318  304,141 
Receivable on unsettled securities sales62,641  33,813  259,906  49,568  115,101 
Other assets2,032,844  2,172,351  1,721,385  1,480,780  1,379,138 
TOTAL ASSETS$32,954,989  $32,961,076  $32,646,473  $31,986,042  $31,508,471 
          
LIABILITIES AND EQUITY         
Deposits:         
Demand$9,101,763  $9,124,595  $8,497,037  $8,162,134  $8,105,756 
Interest-bearing transaction10,567,475  9,980,132  9,650,618  9,590,855  9,756,843 
Savings441,254  421,654  420,009  417,122  397,479 
Time2,258,930  2,177,035  2,197,350  2,297,621  2,366,543 
Total deposits22,369,422  21,703,416  20,765,014  20,467,732  20,626,621 
Funds purchased55,508  62,004  68,280  70,682  112,211 
Repurchase agreements523,561  560,891  522,822  611,264  662,640 
Other borrowings5,737,955  6,072,150  6,342,369  6,076,028  5,583,917 
Subordinated debentures144,644  144,635  255,890  232,795  226,368 
Derivative contracts, net405,444  682,808  747,187  791,313  544,722 
Due on unsettled securities purchases91,529  77,575  200,574  93,812  158,050 
Other liabilities299,534  321,404  352,671  298,170  268,705 
TOTAL LIABILITIES29,627,597  29,624,883  29,254,807  28,641,796  28,183,234 
Total equity3,327,392  3,336,193  3,391,666  3,344,246  3,325,237 
TOTAL LIABILITIES AND EQUITY$32,954,989  $32,961,076  $32,646,473  $31,986,042  $31,508,471 

 

STATEMENTS OF EARNINGS -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands, except per share data)
 Three Months Ended
 March 31,
 2017 2016
    
Interest revenue$226,390  $201,796 
Interest expense25,208  19,224 
Net interest revenue201,182  182,572 
Provision for credit losses  35,000 
Net interest revenue after provision for credit losses201,182  147,572 
Other operating revenue:   
Brokerage and trading revenue33,623  32,341 
Transaction card revenue32,127  32,354 
Fiduciary and asset management revenue38,631  32,056 
Deposit service charges and fees23,030  22,542 
Mortgage banking revenue25,191  32,100 
Other revenue11,752  11,904 
Total fees and commissions164,354  163,297 
Other gains, net3,627  1,560 
Gain (loss) on derivatives, net(450) 7,138 
Gain (loss) on fair value option securities, net(1,140) 9,443 
Change in fair value of mortgage servicing rights1,856  (27,988)
Gain on available for sale securities, net2,049  3,964 
Total other operating revenue170,296  157,414 
Other operating expense:   
Personnel136,425  133,562 
Business promotion6,717  5,696 
Professional fees and services12,379  11,759 
Net occupancy and equipment21,624  18,766 
Insurance6,404  7,265 
Data processing and communications33,940  32,017 
Printing, postage and supplies3,851  3,907 
Net losses and operating expenses of repossessed assets1,009  1,070 
Amortization of intangible assets1,802  1,159 
Mortgage banking costs13,003  12,330 
Other expense7,557  15,039 
Total other operating expense244,711  242,570 
    
Net income before taxes126,767  62,416 
Federal and state income taxes38,103  21,428 
    
Net income88,664  40,988 
Net income (loss) attributable to non-controlling interests308  (1,576)
Net income attributable to BOK Financial Corporation shareholders$88,356  $42,564 
    
Average shares outstanding:   
Basic64,639,437  65,296,541 
Diluted64,707,210  65,331,428 
    
Net income per share:   
Basic$1.35  $0.64 
Diluted$1.35  $0.64 


FINANCIAL HIGHLIGHTS -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands, except ratio and share data)
 Three Months Ended
 March 31, 2017 Dec. 31, 2016 Sept. 30, 2016 June 30, 2016 March 31, 2016
Capital:         
Period-end shareholders' equity$3,341,744  $3,274,854  $3,398,311  $3,368,833  $3,321,555 
Risk weighted assets$24,882,046  $25,274,848  $24,358,385  $24,191,016  $23,707,824 
Risk-based capital ratios:         
Common equity tier 111.60% 11.21% 11.99% 11.86% 12.00%
Tier 111.60% 11.21% 11.99% 11.86% 12.00%
Total capital13.26% 12.81% 13.65% 13.51% 13.21%
Leverage ratio8.89% 8.72% 9.06% 9.06% 9.12%
Tangible common equity ratio18.88% 8.61% 9.19% 9.33% 9.34%
          
Common stock:         
Book value per share$51.09  $50.12  $51.56  $51.15  $50.21 
Tangible book value per share43.63  42.53  45.12  44.68  43.73 
Market value per share:         
High$85.25  $85.00  $70.05  $65.14  $60.16 
Low$73.44  $67.11  $56.36  $51.00  $43.74 
Cash dividends paid$28,646  $28,860  $28,181  $28,241  $28,294 
Dividend payout ratio32.42% 57.69% 37.94% 42.92% 66.47%
Shares outstanding, net65,408,019  65,337,432  65,910,454  65,866,317  66,155,103 
Stock buy-back program:         
Shares repurchased  700,000    305,169   
Amount$  $49,021  $  $17,771  $ 
Average price per share$  $70.03  $  $58.23  $ 
          
Performance ratios (quarter annualized):
Return on average assets1.09% 0.60% 0.91% 0.83% 0.54%
Return on average equity10.86% 6.03% 8.80% 8.00% 5.21%
Net interest margin2.81% 2.69% 2.64% 2.63% 2.65%
Efficiency ratio65.77% 72.93% 68.88% 68.16% 68.84%
          
Reconciliation of non-GAAP measures:
1  Tangible common equity ratio:         
Total shareholders' equity$3,341,744  $3,274,854  $3,398,311  $3,368,833  $3,321,555 
Less: Goodwill and intangible assets, net488,294  495,830  424,716  426,111  428,733 
Tangible common equity$2,853,450  $2,779,024  $2,973,595  $2,942,722  $2,892,822 
          
Total assets$32,628,932  $32,772,281  $32,779,231  $31,970,450  $31,413,945 
Less: Goodwill and intangible assets, net488,294  495,830  424,716  426,111  428,733 
Tangible assets$32,140,638  $32,276,451  $32,354,515  $31,544,339  $30,985,212 
          
Tangible common equity ratio8.88% 8.61% 9.19% 9.33% 9.34%
          
Other data:         
Fiduciary assets$44,371,510  $41,781,564  $41,222,162  $39,924,734  $39,113,305 
Tax equivalent interest$4,428  $4,389  $4,455  $4,372  $4,385 
Net unrealized gain (loss) on available for sale securities$(5,537) $(14,899) $159,533  $195,385  $155,236 
          
Mortgage banking:         
Mortgage production revenue$8,543  $11,937  $21,958  $19,086  $16,647 
          
Mortgage loans funded for sale$711,019  $1,189,975  $1,864,583  $1,818,844  $1,244,015 
Add: current period-end outstanding commitments381,732  318,359  630,804  965,631  902,986 
Less: prior period end outstanding commitments318,359  630,804  965,631  902,986  601,147 
Total mortgage production volume$774,392  $877,530  $1,529,756  $1,881,489  $1,545,854 
          
Mortgage loan refinances to mortgage loans funded for sale44% 63% 51% 44% 49%
Gain on sale margin1.10% 1.36% 1.44% 1.01% 1.08%
          
Mortgage servicing revenue$16,648  $16,477  $16,558  $15,798  $15,453 
Average outstanding principal balance of mortgage loans service for others22,006,295  21,924,552  21,514,962  20,736,525  19,986,444 
Average mortgage servicing revenue rates0.31% 0.30% 0.31% 0.31% 0.31%
          
Gain (loss) on mortgage servicing rights, net of economic hedge:
Gain (loss) on mortgage hedge derivative contracts, net$(528) $(35,868) $2,268  $10,766  $7,138 
Gain (loss) on fair value option securities, net(1,140) (20,922) (3,355) 4,279  9,443 
Gain (loss) on economic hedge of mortgage servicing rights(1,668) (56,790) (1,087) 15,045  16,581 
Gain (loss) on changes in fair value of mortgage servicing rights1,856  39,751  2,327  (16,283) (27,988)
Gain (loss) on changes in fair value of mortgage servicing rights, net of economic hedges, included in other operating revenue188  (17,039) 1,240  (1,238) (11,407)
Net interest revenue on fair value option securities21,271  114  861  1,348  2,033 
Total economic benefit (cost) of changes in the fair value of mortgage servicing rights, net of economic hedges$1,459  $(16,925) $2,101  $110  $(9,374)

2    Actual interest earned on fair value option securities less internal transfer-priced cost of funds.


QUARTERLY EARNINGS TREND -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands, except ratio and per share data)
 Three Months Ended
 March 31, 2017 Dec. 31, 2016 Sept. 30, 2016 June 30, 2016 March 31, 2016
          
Interest revenue$226,390  $215,737  $209,317  $202,267  $201,796 
Interest expense25,208  21,539  21,471  19,655  19,224 
Net interest revenue201,182  194,198  187,846  182,612  182,572 
Provision for credit losses    10,000  20,000  35,000 
Net interest revenue after provision for credit losses201,182  194,198  177,846  162,612  147,572 
Other operating revenue:         
Brokerage and trading revenue33,623  28,500  38,006  39,530  32,341 
Transaction card revenue32,127  34,521  33,933  34,950  32,354 
Fiduciary and asset management revenue38,631  34,535  34,073  34,813  32,056 
Deposit service charges and fees23,030  23,365  23,668  22,618  22,542 
Mortgage banking revenue25,191  28,414  38,516  34,884  32,100 
Other revenue11,752  12,693  13,080  13,352  11,904 
Total fees and commissions164,354  162,028  181,276  180,147  163,297 
Other gains (losses), net3,627  (1,279) 2,442  1,307  1,560 
Gain (loss) on derivatives, net(450) (35,815) 2,226  10,766  7,138 
Gain (loss) on fair value option securities, net(1,140) (20,922) (3,355) 4,279  9,443 
Change in fair value of mortgage servicing rights1,856  39,751  2,327  (16,283) (27,988)
Gain (loss) on available for sale securities, net2,049  (9) 2,394  5,326  3,964 
Total other operating revenue170,296  143,754  187,310  185,542  157,414 
Other operating expense:         
Personnel136,425  141,132  139,212  139,213  133,562 
Business promotion6,717  7,344  6,839  6,703  5,696 
Charitable contributions to BOKF Foundation  2,000       
Professional fees and services12,379  16,828  14,038  14,158  11,759 
Net occupancy and equipment21,624  21,470  20,111  19,677  18,766 
Insurance6,404  8,705  9,390  7,129  7,265 
Data processing and communications33,940  33,691  33,331  32,802  32,017 
Printing, postage and supplies3,851  3,998  3,790  3,889  3,907 
Net losses (gains) and operating expenses of repossessed assets1,009  1,627  (926) 1,588  1,070 
Amortization of intangible assets1,802  1,558  1,521  2,624  1,159 
Mortgage banking costs13,003  17,348  15,963  15,746  12,330 
Other expense7,557  9,846  14,819  7,856  15,039 
Total other operating expense244,711  265,547  258,088  251,385  242,570 
Net income before taxes126,767  72,405  107,068  96,769  62,416 
Federal and state income taxes38,103  22,496  31,956  30,497  21,428 
Net income88,664  49,909  75,112  66,272  40,988 
Net income (loss) attributable to non-controlling interests308  (117) 835  471  (1,576)
Net income attributable to BOK Financial Corporation shareholders$88,356  $50,026  $74,277  $65,801  $42,564 
          
Average shares outstanding:         
Basic64,639,437  64,719,018  65,085,392  65,245,887  65,296,541 
Diluted64,707,210  64,787,728  65,157,841  65,302,926  65,331,428 
Net income per share:         
Basic$1.35  $0.76  $1.13  $1.00  $0.64 
Diluted$1.35  $0.76  $1.13  $1.00  $0.64 


LOANS TREND -- UNAUDITED
BOK FINANCIAL CORPORATION
(In thousands)
  March 31, 2017 Dec. 31, 2016 Sept. 30, 2016 June 30, 2016 March 31, 2016
Commercial:          
Energy $2,537,112  $2,497,868  $2,520,804  $2,818,656  $3,029,420 
Services 3,013,375  3,108,990  2,936,599  2,830,864  2,728,891 
Healthcare 2,265,604  2,201,916  2,085,046  2,051,146  1,995,425 
Wholesale/retail 1,506,243  1,576,818  1,602,030  1,532,957  1,451,846 
Manufacturing 543,430  514,975  499,486  595,403  600,645 
Other commercial and industrial 461,346  490,257  476,198  527,411  482,198 
Total commercial 10,327,110  10,390,824  10,120,163  10,356,437  10,288,425 
           
Commercial real estate:          
Retail 745,046  761,888  801,377  795,419  810,522 
Multifamily 922,991  903,272  873,773  787,200  733,689 
Office 860,889  798,888  752,705  769,112  695,552 
Industrial 871,463  871,749  838,021  645,586  564,467 
Residential construction and land development 135,994  135,533  159,946  157,576  171,949 
Other commercial real estate 334,680  337,716  367,776  427,073  394,328 
Total commercial real estate 3,871,063  3,809,046  3,793,598  3,581,966  3,370,507 
           
Residential mortgage:          
Permanent mortgage 977,743  1,006,820  969,558  969,007  948,405 
Permanent mortgages guaranteed by U.S. government agencies 204,181  199,387  190,309  192,732  197,350 
Home equity 764,350  743,625  712,926  719,184  723,554 
Total residential mortgage 1,946,274  1,949,832  1,872,793  1,880,923  1,869,309 
           
Personal 847,459  839,958  678,232  587,423  494,325 
           
   Total $16,991,906  $16,989,660  $16,464,786  $16,406,749  $16,022,566 


LOANS BY PRINCIPAL MARKET AREA -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands)
 March 31, 2017 Dec. 31, 2016 Sept. 30, 2016 June 30, 2016 March 31, 2016
          
Bank of Oklahoma:         
Commercial$3,189,183  $3,370,259  $3,545,924  $3,698,215  $3,656,034 
Commercial real estate691,332  684,381  795,806  781,458  747,689 
Residential mortgage1,404,054  1,407,197  1,401,166  1,415,766  1,411,409 
Personal310,708  303,823  271,420  246,229  204,158 
Total Bank of Oklahoma5,595,277  5,765,660  6,014,316  6,141,668  6,019,290 
          
Bank of Texas:         
Commercial4,148,316  4,022,455  3,903,218  3,901,632  3,936,809 
Commercial real estate1,452,988  1,415,011  1,400,709  1,311,408  1,211,978 
Residential mortgage231,647  233,981  229,345  222,548  217,539 
Personal312,092  306,748  278,167  233,304  210,456 
Total Bank of Texas6,145,043  5,978,195  5,811,439  5,668,892  5,576,782 
          
Bank of Albuquerque:         
Commercial407,403  399,256  398,147  398,427  402,082 
Commercial real estate307,927  284,603  299,785  322,956  323,059 
Residential mortgage106,432  108,058  110,478  114,226  117,655 
Personal11,305  11,483  11,333  10,569  10,823 
Total Bank of Albuquerque833,067  803,400  819,743  846,178  853,619 
          
Bank of Arkansas:         
Commercial88,010  86,577  83,544  81,227  79,808 
Commercial real estate74,469  73,616  72,649  69,235  66,674 
Residential mortgage6,829  7,015  6,936  6,874  7,212 
Personal6,279  6,524  6,757  7,025  918 
Total Bank of Arkansas175,587  173,732  169,886  164,361  154,612 
          
Colorado State Bank & Trust:         
Commercial998,216  1,018,208  1,013,314  1,076,620  1,030,348 
Commercial real estate266,218  265,264  254,078  237,569  219,078 
Residential mortgage62,313  59,631  59,838  59,425  52,961 
Personal49,523  50,372  42,901  35,064  24,497 
Total Colorado State Bank & Trust1,376,270  1,393,475  1,370,131  1,408,678  1,326,884 
          
Bank of Arizona:         
Commercial643,222  686,253  680,447  670,814  656,527 
Commercial real estate737,088  747,409  726,542  639,112  605,383 
Residential mortgage36,737  36,265  39,206  38,998  40,338 
Personal51,386  52,553  31,205  24,248  18,372 
Total Bank of Arizona1,468,433  1,522,480  1,477,400  1,373,172  1,320,620 
          
Mobank:         
Commercial852,760  807,816  495,569  529,502  526,817 
Commercial real estate341,041  338,762  244,029  220,228  196,646 
Residential mortgage98,262  97,685  25,824  23,086  22,195 
Personal106,166  108,455  36,449  30,984  25,101 
Total Mobank1,398,229  1,352,718  801,871  803,800  770,759 
          
TOTAL BOK FINANCIAL$16,991,906  $16,989,660  $16,464,786  $16,406,749  $16,022,566 

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)
 March 31, 2017 Dec. 31, 2016 Sept. 30, 2016 June 30, 2016 March 31, 2016
Bank of Oklahoma:         
  Demand$4,320,666  $3,993,170  $4,158,273  $4,020,181  $3,813,128 
  Interest-bearing:         
  Transaction6,114,288  6,345,536  5,701,983  5,741,302  5,706,067 
  Savings265,014  241,696  242,959  247,984  246,122 
  Time1,189,144  1,118,355  1,091,464  1,167,271  1,198,022 
  Total interest-bearing7,568,446  7,705,587  7,036,406  7,156,557  7,150,211 
Total Bank of Oklahoma11,889,112  11,698,757  11,194,679  11,176,738  10,963,339 
          
Bank of Texas:         
  Demand3,091,258  3,137,009  2,734,981  2,677,253  2,571,883 
  Interest-bearing:         
  Transaction2,317,576  2,388,812  2,240,040  2,035,634  2,106,905 
  Savings89,640  83,101  84,642  83,862  83,263 
  Time511,037  535,642  528,380  516,231  530,657 
  Total interest-bearing2,918,253  3,007,555  2,853,062  2,635,727  2,720,825 
Total Bank of Texas6,009,511  6,144,564  5,588,043  5,312,980  5,292,708 
          
Bank of Albuquerque:         
  Demand593,117  627,979  584,681  530,853  557,200 
  Interest-bearing:         
  Transaction623,677  590,571  555,326  573,690  560,684 
  Savings53,683  49,963  54,480  49,200  47,187 
  Time233,506  238,408  244,706  250,068  259,630 
  Total interest-bearing910,866  878,942  854,512  872,958  867,501 
Total Bank of Albuquerque1,503,983  1,506,921  1,439,193  1,403,811  1,424,701 
          
Bank of Arkansas:         
  Demand42,622  26,389  32,203  30,607  31,318 
  Interest-bearing:         
  Transaction106,804  105,232  313,480  278,335  265,803 
  Savings2,304  2,192  2,051  1,853  1,929 
  Time15,067  16,696  17,534  18,911  21,035 
  Total interest-bearing124,175  124,120  333,065  299,099  288,767 
Total Bank of Arkansas166,797  150,509  365,268  329,706  320,085 
          
Colorado State Bank & Trust:         
  Demand601,778  576,000  517,063  528,124  413,506 
  Interest-bearing:         
  Transaction610,510  616,679  623,055  625,240  610,077 
  Savings37,801  32,866  31,613  31,509  33,108 
  Time234,740  242,782  247,667  254,164  271,475 
  Total interest-bearing883,051  892,327  902,335  910,913  914,660 
Total Colorado State Bank & Trust1,484,829  1,468,327  1,419,398  1,439,037  1,328,166 
          
          
Bank of Arizona:         
  Demand342,854  366,755  418,718  396,837  341,828 
  Interest-bearing:         
  Transaction180,254  305,099  303,750  302,297  313,825 
  Savings3,858  2,973  2,959  3,198  3,277 
  Time26,112  27,765  27,935  28,681  29,053 
  Total interest-bearing210,224  335,837  334,644  334,176  346,155 
Total Bank of Arizona553,078  702,592  753,362  731,013  687,983 
          
Mobank:         
  Demand514,278  508,418  235,445  240,755  221,812 
  Interest-bearing:         
  Transaction406,105  513,176  86,526  112,371  146,405 
  Savings13,424  12,679  1,645  1,656  1,619 
  Time34,242  42,152  11,945  11,735  31,502 
  Total interest-bearing453,771  568,007  100,116  125,762  179,526 
Total Mobank968,049  1,076,425  335,561  366,517  401,338 
          
TOTAL BOK FINANCIAL$22,575,359  $22,748,095  $21,095,504  $20,759,802  $20,418,320 


NET INTEREST MARGIN TREND -- UNAUDITED
BOK FINANCIAL CORPORATION
 Three Months Ended
 March 31, 2017 Dec. 31, 2016 Sept. 30, 2016 June 30, 2016 March 31, 2016
          
TAX-EQUIVALENT ASSETS YIELDS         
Interest-bearing cash and cash equivalents0.82% 0.55% 0.51% 0.51% 0.53%
Trading securities3.87% 3.91% 2.71% 1.89% 2.47%
Investment securities:         
  Taxable5.44% 5.39% 5.34% 5.41% 5.53%
  Tax-exempt2.45% 2.33% 2.26% 2.25% 2.22%
Total investment securities3.70% 3.60% 3.51% 3.52% 3.51%
Available for sale securities:         
  Taxable2.02% 1.98% 1.99% 2.01% 2.06%
  Tax-exempt5.37% 5.27% 5.47% 5.06% 4.95%
Total available for sale securities2.05% 2.00% 2.01% 2.04% 2.08%
Fair value option securities2.27% 0.99% 1.70% 2.19% 2.38%
Restricted equity securities5.52% 5.45% 5.37% 4.84% 5.85%
Residential mortgage loans held for sale3.35% 3.31% 3.28% 3.53% 3.75%
Loans3.88% 3.67% 3.63% 3.58% 3.57%
Allowance for loan losses         
Loans, net of allowance3.94% 3.72% 3.69% 3.63% 3.63%
Total tax-equivalent yield on earning assets3.15% 2.98% 2.93% 2.91% 2.92%
          
COST OF INTEREST-BEARING LIABILITIES        
Interest-bearing deposits:         
  Interest-bearing transaction0.20% 0.16% 0.14% 0.14% 0.14%
  Savings0.08% 0.09% 0.09% 0.10% 0.09%
  Time1.09% 1.12% 1.14% 1.16% 1.21%
Total interest-bearing deposits0.35% 0.32% 0.32% 0.33% 0.34%
Funds purchased0.47% 0.28% 0.19% 0.19% 0.27%
Repurchase agreements0.02% 0.02% 0.04% 0.05% 0.05%
Other borrowings0.83% 0.61% 0.57% 0.57% 0.56%
Subordinated debt5.68% 5.51% 3.84% 1.52% 1.26%
Total cost of interest-bearing liabilities0.52% 0.44% 0.44% 0.41% 0.40%
Tax-equivalent net interest revenue spread2.63% 2.54% 2.49% 2.50% 2.52%
Effect of noninterest-bearing funding sources and other0.18% 0.15% 0.15% 0.13% 0.13%
Tax-equivalent net interest margin2.81% 2.69% 2.64% 2.63% 2.65%

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
 March 31, 2017 Dec. 31, 2016 Sept. 30, 2016 June 30, 2016 March 31, 2016
Nonperforming assets:         
Nonaccruing loans:         
Commercial$156,825  $178,953  $176,464  $181,989  $174,652 
Commercial real estate4,475  5,521  7,350  7,780  9,270 
Residential mortgage46,081  46,220  52,452  57,061  57,577 
Personal235  290  686  354  331 
Total nonaccruing loans207,616  230,984  236,952  247,184  241,830 
Accruing renegotiated loans guaranteed by U.S. government agencies83,577  81,370  80,306  78,806  77,597 
Real estate and other repossessed assets42,726  44,287  31,941  24,054  29,896 
Total nonperforming assets$333,919  $356,641  $349,199  $350,044  $349,323 
Total nonperforming assets excluding those guaranteed by U.S. government agencies$240,234  $263,425  $253,461  $251,497  $252,176 
          
Nonaccruing loans by loan class:         
Commercial:         
Energy$110,425  $132,499  $142,966  $168,145  $159,553 
Services7,713  8,173  8,477  9,388  9,512 
Wholesale / retail11,090  11,407  2,453  2,772  3,685 
Manufacturing5,907  4,931  274  293  312 
Healthcare909  825  855  875  1,023 
Other commercial and industrial20,781  21,118  21,439  516  567 
Total commercial156,825  178,953  176,464  181,989  174,652 
Commercial real estate:         
Residential construction and land development2,616  3,433  3,739  4,261  4,789 
Retail314  326  1,249  1,265  1,302 
Office413  426  882  606  629 
Multifamily24  38  51  65  250 
Industrial76  76  76  76  76 
Other commercial real estate1,032  1,222  1,353  1,507  2,224 
Total commercial real estate4,475  5,521  7,350  7,780  9,270 
Residential mortgage:         
Permanent mortgage24,188  22,855  25,956  27,228  27,497 
Permanent mortgage guaranteed by U.S. government agencies10,108  11,846  15,432  19,741  19,550 
Home equity11,785  11,519  11,064  10,092  10,530 
Total residential mortgage46,081  46,220  52,452  57,061  57,577 
Personal235  290  686  354  331 
Total nonaccruing loans$207,616  $230,984  $236,952  $247,184  $241,830 
                    
Performing loans 90 days past due1$95  $5  $3,839  $2,899  $8,019 
          
Gross charge-offs$(2,153) $(1,651) $(8,101) $(8,845) $(23,991)
Recoveries2,900  2,813  2,038  1,386  1,519 
Net recoveries (charge-offs)$747  $1,162  $(6,063) $(7,459) $(22,472)
          
Provision for credit losses$  $  $10,000  $20,000  $35,000 
          
Allowance for loan losses to period end loans1.46% 1.45% 1.49% 1.48% 1.46%
Combined allowance for credit losses to period end loans1.52% 1.52% 1.56% 1.54% 1.50%
Nonperforming assets to period end loans and repossessed assets1.96% 2.09% 2.12% 2.13% 2.18%
Net charge-offs (annualized) to average loans(0.02)% (0.03)% 0.15% 0.18% 0.56%
Allowance for loan losses to nonaccruing loans1125.92% 112.33% 110.65% 106.95% 104.89%
Combined allowance for credit losses to nonaccruing loans1130.70% 117.46% 115.67% 110.93% 107.87%

1   Excludes residential mortgage loans guaranteed by agencies of the U.S. government.

For Further Information Contact:
Joseph Crivelli
Investor Relations
(918) 595-3027

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Source: BOK Financial Corporation