Press Release

BOK Financial Reports Quarterly Earnings of $138 million or $1.93 Per Share

Company Release - 7/24/2019 7:55 AM ET

TULSA, Okla., July 24, 2019 (GLOBE NEWSWIRE) -- BOK Financial (NASDAQ: BOKF) today reported net earnings applicable to common shareholders for the first quarter of 2019 of $137.6 million, or $1.93 per diluted common share, up 24% from the previous quarter and up 20% from the same quarter a year ago.

CEO Commentary

Steven G. Bradshaw, president and chief executive officer, stated, “The second quarter was another in a long line of exceptional earnings performance for BOK Financial. By achieving the highest level of quarterly earnings in the history of the company, our diversified revenue approach was on full display this quarter as continued growth in our loan portfolio was matched by re-energized activity in our fee businesses. Combined strength in these dual pillars of revenue generation, combined with diligent expense management, drove us through a 60 percent efficiency ratio for the first time since the first quarter of 2012. These factors, along with a benign credit environment, affirm our confidence for the remainder of 2019."

Bradshaw continued, "The overall momentum we are building in Colorado and Arizona on the back of the final systems integration of CoBiz last quarter is growing. Now that we've achieved the expense synergies, we are very focused on growing our share and serving our customers in both of these markets, and are pleased to see the progress we've made already."

Second Quarter 2019 Financial Highlights

  • Net income was $137.6 million or $1.93 per diluted share for the second quarter of 2019 and $110.6 million and $1.54 per diluted share for the first quarter of 2019. The first quarter included a 13 cent per share reduction due to CoBiz integration costs.
  • Net interest revenue totaled $285.4 million, an increase of $7.3 million. Net interest margin was consistent at 3.30 percent compared to the first quarter of 2019. Recovery of foregone interest and an increase in loan discount accretion added 10 basis points to net interest margin in the second quarter.
  • Fees and commissions revenue totaled $176.1 million, an increase of $15.6 million led by increases in trading revenue and mortgage banking revenue. Lower mortgage interest rates have increased mortgage production and related trading activity.
  • Operating expense decreased $10.0 million to $277.1 million. The first quarter of 2019 included $12.7 million of integration costs. Excluding first quarter integration costs, personnel expenses decreased $5.6 million as efficiencies are recognized from the CoBiz acquisition.
  • A $5.0 million provision for credit losses was recorded in the second quarter of 2019. The combined allowance for credit losses totaled $204 million or 0.92 percent of outstanding loans compared to $207 million or 0.95 percent in the previous quarter.
  • Average loans increased $238 million to $22.0 billion and period-end loans increased $497 million to $22.3 billion. Average deposits increased $548 million to $25.2 billion and period-end deposits were relatively consistent with the prior quarter.
  • The Company repurchased 250,000 shares at an average price of $80.50 per share.

Commercial Banking

  • Contributed $106.9 million to net income, an increase of $20.8 million over the prior quarter. Net interest revenue increased by $34.0 million, primarily driven by the allocation of acquired loans to the business lines. Fee revenue increased $3.1 million, while operating expense increased $12.8 million.
  • Average loans grew by $347 million, excluding the allocation of acquired loans in the second quarter. Average deposits increased $226 million.

Consumer Banking

  • Contributed $16.3 million to net income, an increase of $1.0 million compared to the first quarter. Net interest revenue increased $1.6 million, fee revenue increased $6.0 million and operating expense increased $3.9 million.
  • The recent decrease in mortgage interest rates has spurred mortgage origination activity in the second quarter. Mortgage production volume increased $197 million to $810 million and gain on sale margin increased 18 basis points to 1.46 percent.

Wealth Management

  • Contributed $25.5 million to net income, an increase of $1.8 million compared to the prior quarter. While net interest revenue decreased slightly, fees and commissions revenue increased $12.7 million largely due to an increase in brokerage and trading revenue. Operating expense increased $7.9 million.
  • Assets under management or administration were $81.8 billion at June 30, 2019 compared to $78.9 billion at March 31, 2019. Fiduciary assets totaled $49.3 billion at June 30, 2019 and $46.4 billion at March 31, 2019.

Net Interest Revenue

Net interest revenue was $285.4 million for the second quarter of 2019, a $7.3 million increase over the first quarter of 2019. Recoveries of foregone interest on non-accruing loans added $3.4 million. The second quarter of 2019 included $13.4 million of purchase accounting discount accretion while the first quarter of 2019 included $7.8 million.

Net interest margin was 3.30 percent, consistent with the previous quarter. The recovery of foregone interest and increase in loan discount accretion added approximately 10 basis points to net interest margin in the second quarter. Excluding these items, the yield on average earning assets was 4.31 percent, a 6 basis point decrease while the yield on the loan portfolio was 5.09 percent, down 2 basis points. The yield on the available for sale securities portfolio increased 6 basis points to 2.63 percent. The yield on the trading securities portfolio, which moves with long term interest rates because it turns over rapidly, was down 29 basis points.

Funding costs were 1.70 percent, up 4 basis points. The cost of interest-bearing deposits increased 9 basis points to 1.13 percent. The cost of other borrowed funds was down 1 basis point to 2.53 percent. The benefit to net interest margin from assets funded by non-interest liabilities was relatively unchanged at 49 basis points.

Average earning assets increased $933 million compared to the first quarter of 2019. Average available for sale securities increased $553 million. Average loan balances were up $238 million. Average fair value option securities balances increased $304 million. Average trading securities balances decreased $211 million. Average interest-bearing deposit balances increased $652 million and average borrowed funds increased $169 million compared to the first quarter of 2019.

Fees and Commissions Revenue

Fees and commissions revenue totaled $176.1 million for the second quarter of 2019, an increase of $15.6 million over the first quarter of 2019.

Lower mortgage interest rates have positively affected both our brokerage and trading and mortgage banking revenue. Brokerage and trading revenue increased $8.9 million due to increased trading volumes. Mortgage banking revenue increased $4.3 million due to a $197 million increase in production volume and an 18 basis point increase in gain on sale margin.

Fiduciary and asset management revenue increased $1.7 million over the first quarter of 2019, primarily due to seasonal tax fees collected in the second quarter. Transaction card revenue increased $1.2 million due to increased transaction volume.

Operating Expense

Total operating expense was $277.1 million for the second quarter of 2019, a decrease of $10.0 million compared to the first quarter of 2019. The first quarter of 2019 included $12.7 million of CoBiz integration costs. The following discussion excludes the impact of these costs.

Personnel expense decreased $5.6 million. CoBiz system integration was completed near the end of the first quarter which enabled us to fully realize expected operating efficiencies related to the acquisition. Regular compensation decreased $1.8 million while incentive compensation expense decreased $1.7 million. Employee benefits also decreased $2.0 million.

Non-personnel expense increased $8.3 million. Business promotion expense increased $2.9 million, primarily due to advertising expenses related to marketing our BOK Financial brand in the Colorado and Arizona markets. Insurance expense is up $1.9 million largely due to adjustments to deposit insurance expense related to the CoBiz integration. Increases in professional fees and services of $1.7 million and mortgage banking costs of $1.6 million were partially offset by a decrease in net losses and expenses of repossessed assets of $1.4 million. In addition, a $1.0 million cash charitable donation was made to the BOKF Foundation in the second quarter.

Loans, Deposits and Capital

Loans

Outstanding loans were $22.3 billion at June 30, 2019, up $497 million over March 31, 2019, largely related to growth in commercial and commercial real estate balances.

Outstanding commercial loan balances grew by $375 million or 3 percent over March 31, 2019. Energy loan balances were up $216 million. Wholesale/retail sector loans increased $86 million. Other commercial and industrial loans increased $28 million and services sector loans increased by $22 million.

Commercial real estate loan balances increased $109 million or 2 percent compared to March 31, 2019 due to our strong ongoing commitment volume. Loans secured by multifamily residential properties increased $90 million. Loans secured by industrial properties increased $61 million. Loans secured by office buildings increased $23 million. This growth was partially offset by a $65 million decrease in retail facilities.

Deposits

Period-end deposits totaled $25.3 billion at June 30, 2019, a $27 million decrease compared to March 31, 2019. Demand deposit balances decreased $429 million. Interest-bearing transaction account balances grew by $375 million. Time deposit balances increased by $30 million. Average deposits were $25.2 billion at June 30, 2019, an increase of $548 million compared to March 31, 2019. Total interest-bearing deposits increased $652 million partially offset by a decrease in demand deposits of $104 million.

Capital

The company's common equity Tier 1 capital ratio was 10.84 percent at June 30, 2019. In addition, the company's Tier 1 capital ratio was 10.84 percent, total capital ratio was 12.34 percent, and leverage ratio was 8.75 percent at June 30, 2019. At March 31, 2019, the company's common equity Tier 1 capital ratio was 10.71 percent, Tier 1 capital ratio was 10.71 percent, total capital ratio was 12.24 percent, and leverage ratio was 8.76 percent.

The company's tangible common equity ratio, a non-GAAP measure, was 8.69 percent at June 30, 2019 and 8.64 percent at March 31, 2019. 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 $297 million or 1.33 percent of outstanding loans and repossessed assets at June 30, 2019, compared to $262 million or 1.20 percent at March 31, 2019. Nonperforming assets that are not guaranteed by U.S. government agencies totaled $194 million or 0.88 percent of outstanding loans and repossessed assets at June 30, 2019, compared to $163 million or 0.75 percent at March 31, 2019.

Nonaccruing loans were $184 million or 0.83 percent of outstanding loans at June 30, 2019. Nonaccruing commercial loans totaled $123 million or 0.86 percent of outstanding commercial loans. Nonaccruing commercial real estate loans totaled $22 million or 0.46 percent of outstanding commercial real estate loans. Nonaccruing residential mortgage loans totaled $38 million or 1.77 percent of outstanding residential mortgage loans.

Nonaccruing loans increased $31 million from March 31, 2019, primarily due to a $36 million increase in energy loans. Healthcare sector loans decreased $2.6 million. New nonaccruing loans identified in the second quarter totaled $54 million, offset by $7.1 million in payments received and $13 million in charge-offs.

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, totaled $161 million at June 30, compared to $169 million at March 31. The decrease was primarily due to energy and manufacturing loans, partially offset by an increase in other commercial and industrial loans and loans secured by multifamily commercial real estate.

Net charge-offs were $7.7 million or 0.14 percent of average loans on an annualized basis for the second quarter of 2019, compared to $10.1 million or 0.19 percent of average loans on an annualized basis for the first quarter of 2019. Net charge-offs were 0.20 percent of average loans over the last four quarters. Gross charge-offs were $13.2 million for the second quarter compared to $11.8 million for the previous quarter. Recoveries totaled $5.5 million for the second quarter of 2019 and $1.7 million for the first quarter of 2019.

Based on an evaluation of all credit factors, including overall loan portfolio growth, changes in nonaccruing and potential problem loans and net charge-offs, the company determined that a $5.0 million provision for credit losses was appropriate for the second quarter of 2019. The company recorded an $8.0 million provision for credit losses in the first quarter of 2019.

The combined allowance for credit losses totaled $204 million or 0.92 percent of outstanding loans and 115 percent of nonaccruing loans at June 30, 2019, excluding residential mortgage loans guaranteed by U.S. government agencies. Excluding loans acquired in the CoBiz acquisition, which are measured at acquisition-date fair value, the combined allowance for loan losses was 1.03 percent of outstanding loans and 126 percent of nonaccruing loans at June 30, 2019 compared to 1.09 percent of outstanding loans and 159 percent of nonaccruing loans at March 31, 2019. The allowance for loan losses was $203 million and the accrual for off-balance sheet credit losses was $1.9 million. At March 31, 2019, the combined allowance for credit losses was $207 million or 0.95 percent of outstanding loans and 142 percent of nonaccruing loans, excluding loans guaranteed by U.S. government agencies. The allowance for loan losses was $205 million and the accrual for off-balance sheet credit losses was $1.8 million.

Securities and Derivatives

The fair value of the available for sale securities portfolio totaled $10.5 billion at June 30, 2019, a $1.5 billion increase compared to March 31, 2019. At June 30, 2019, the available for sale securities portfolio consisted primarily of $7.4 billion of residential mortgage-backed securities fully backed by U.S. government agencies and $3.1 billion of commercial mortgage-backed securities fully backed by U.S. government agencies. At June 30, 2019, the available for sale securities portfolio had a net unrealized gain of $132 million compared to a $2.6 million net unrealized loss at March 31, 2019.

Trading securities decreased $240 million to $1.9 billion during the second quarter of 2019. The company holds an inventory of securities, predominately composed of U.S. agency residential mortgage-backed securities, in support of sales to a variety of customers, including banks, corporations, insurance companies, money managers, and others.

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. This portfolio of fair value option securities increased $431 million to $1.1 billion at June 30, 2019.

The net economic cost of the changes in fair value of mortgage servicing rights and related economic hedges was $7.3 million during the second quarter of 2019, including a $29.6 million decrease in the fair value of mortgage servicing rights, a $21.0 million increase in the fair value of securities and derivative contracts held as an economic hedge, and $1.3 million of related net interest revenue.

Commercial Banking

Net income for Commercial Banking was $106.9 million for the second quarter of 2019, an increase of $20.8 million over the first quarter of 2019. Net interest revenue increased $34.0 million largely as a result of the allocation of acquired loans to the business line during the second quarter.

Excluding acquired loans and deposits, average loans increased $347 million or 2 percent while average customer deposits increased $226 million or 2 percent. We continue to see a shift in the deposit mix from demand deposit balances to interest bearing deposit balances.

Fees and commissions revenue increased $3.1 million, primarily due to an increase in loan syndication fees based on the timing of completed transactions and increased transaction card revenues related to a seasonal increase in transaction volume. Operating expense increased $12.8 million primarily due to an increase in personnel expenses as a result of the allocation of CoBiz personnel to the business line.

Consumer Banking

Net income from Consumer Banking was $16.3 million in the second quarter of 2019, an increase of $1.0 million.

Net interest revenue from Consumer Banking activities increased $1.6 million largely due to an increase in interest earned on the fair value option portfolio combined with increased deposits sold to our Funds Management unit. Average loans increased $46 million or 3 percent and average deposits increased $454 million or 7 percent.

Revenues from mortgage banking activities increased $4.3 million over the prior quarter due to lower interest rates. Mortgage production volume increased $197 million or 32 percent and the gain on sale margin climbed to 1.46 percent from 1.28 percent. Deposit service charges also increased $1.1 million due to two more days in the quarter compared to the previous quarter.

Operating expenses increased $3.9 million, nearly all related to non-personnel expenses. Mortgage banking costs increased $1.6 million related to increased payoffs as mortgage interest rates declined during the quarter. Business promotion expense increased $1.6 million primarily due to additional brand marketing.

Wealth Management

Net income for Wealth Management increased $1.8 million to $25.5 million during the second quarter of 2019. An increase in brokerage and trading revenue was partially offset by a decrease in net interest revenue and an increase in operating expenses.

Brokerage and trading revenue increased $8.4 million due to an increase in trading activity and volumes as a result of favorable interest rate changes. This increase was partially offset by a decrease in interest received on trading securities and an increase in funding costs. Fiduciary and asset management revenue increased $3.4 million largely due to a seasonal increase related to tax fees collected in the second quarter as well as increased assets under management. Operating expenses increased $7.9 million, including $6.1 million related to personnel expenses and $1.9 million related to other operating expenses.

Average loans increased $199 million to $1.6 billion. Average deposits increased $561 million to $6.2 billion, primarily due to an increase in interest-bearing transaction account balances. Assets under management or administration were $81.8 billion at June 30, 2019 compared to $78.9 billion at March 31, 2019. Fiduciary assets totaled $49.3 billion at June 30, 2019 and $46.4 billion at March 31, 2019.

Conference Call and Webcast

The company will hold a conference call at 9 a.m. Central time on Wednesday, July 24, 2019 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 1-412-317-6671 and referencing conference ID # 13692252.

About BOK Financial Corporation

BOK Financial Corporation is a $42 billion regional financial services company headquartered in Tulsa, Oklahoma with $82 billion in assets under management and administration. The company's stock is publicly traded on NASDAQ under the Global Select market listings (BOKF). BOK Financial Corporation's holdings include BOKF, NA; BOK Financial Securities, Inc., The Milestone Group, Inc., CoBiz Wealth, LLC and BOK Financial Insurance, Inc. BOKF, NA operates TransFund, Cavanal Hill Investment Management and BOK Financial Asset Management, Inc. BOKF, NA operates banking divisions across eight states as: Bank of Albuquerque; Bank of Arkansas; Bank of Oklahoma; Bank of Texas; BOK Financial in Colorado and Arizona; and Mobank in Kansas and Missouri; as well as having limited purpose offices in Nebraska, Milwaukee and Connecticut. Through its subsidiaries, BOK Financial Corporation provides commercial and consumer banking, brokerage trading, investment, trust and insurance 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, 2019 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, including its latest acquisition of CoBiz Financial, Inc., 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, inflation, 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. There may also be difficulties and delays in integrating CoBiz Financial Inc.'s business or fully realizing cost savings and other benefits including, but not limited to, business disruption and customer acceptance of BOK Financial Corporation's products and services. 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, 2019 Mar. 31, 2019
ASSETS   
Cash and due from banks$739,109  $718,297 
Interest-bearing cash and cash equivalents596,382  564,404 
Trading securities1,900,395  2,140,326 
Investment securities327,677  331,466 
Available for sale securities10,514,414  9,025,198 
Fair value option securities1,138,819  707,994 
Restricted equity securities461,017  376,429 
Residential mortgage loans held for sale193,570  160,157 
Loans:   
Commercial14,336,908  13,961,975 
Commercial real estate4,710,033  4,600,651 
Residential mortgage2,170,822  2,192,620 
Personal1,037,889  1,003,734 
Total loans22,255,652  21,758,980 
Allowance for loan losses(202,534) (205,340)
Loans, net of allowance22,053,118  21,553,640 
Premises and equipment, net468,368  468,293 
Receivables213,608  224,887 
Goodwill1,048,091  1,048,091 
Intangible assets, net124,473  129,482 
Mortgage servicing rights208,308  238,193 
Real estate and other repossessed assets, net16,940  17,139 
Derivative contracts, net415,221  359,223 
Cash surrender value of bank-owned life insurance384,193  384,174 
Receivable on unsettled securities sales583,421  966,455 
Other assets505,949  469,114 
TOTAL ASSETS$41,893,073  $39,882,962 
    
LIABILITIES AND EQUITY   
Deposits:   
Demand$9,667,557  $10,096,552 
Interest-bearing transaction12,851,943  12,476,977 
Savings557,683  559,884 
Time2,227,938  2,198,389 
Total deposits25,305,121  25,331,802 
Funds purchased and repurchase agreements2,331,947  1,439,673 
Other borrowings7,823,809  7,341,093 
Subordinated debentures275,892  275,880 
Accrued interest, taxes and expense181,413  173,434 
Due on unsettled securities purchases565,268  186,401 
Derivative contracts, net381,454  299,698 
Other liabilities309,694  303,272 
TOTAL LIABILITIES37,174,598  35,351,253 
Shareholders' equity:   
Capital, surplus and retained earnings4,610,869  4,526,404 
Accumulated other comprehensive gain (loss)98,569  (3,531)
TOTAL SHAREHOLDERS' EQUITY4,709,438  4,522,873 
Non-controlling interests9,037  8,836 
TOTAL EQUITY4,718,475  4,531,709 
TOTAL LIABILITIES AND EQUITY$41,893,073  $39,882,962 


 
AVERAGE BALANCE SHEETS -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands)
 Three Months Ended
 June 30, 2019 Mar. 31, 2019 Dec. 31, 2018 Sept. 30, 2018 June 30, 2018
ASSETS         
Interest-bearing cash and cash equivalents$535,491  $537,903  $563,132  $688,872  $1,673,387 
Trading securities1,757,335  1,968,399  1,929,601  1,762,794  1,482,302 
Investment securities328,482  343,282  364,737  379,566  399,088 
Available for sale securities9,435,668  8,883,054  8,704,963  8,129,214  8,163,142 
Fair value option securities898,772  594,349  277,575  469,398  487,192 
Restricted equity securities413,812  395,432  362,729  328,842  348,546 
Residential mortgage loans held for sale192,102  145,040  179,553  207,488  218,600 
Loans:         
Commercial14,175,057  13,966,521  13,587,344  11,484,200  11,189,899 
Commercial real estate4,656,861  4,602,149  4,747,784  3,774,470  3,660,166 
Residential mortgage2,146,315  2,193,334  2,222,063  1,956,089  1,915,015 
Personal1,026,172  1,004,061  1,022,140  989,026  986,162 
Total loans22,004,405  21,766,065  21,579,331  18,203,785  17,751,242 
Allowance for loan losses(205,532) (206,092) (209,613) (214,160) (222,856)
Total loans, net21,798,873  21,559,973  21,369,718  17,989,625  17,528,386 
Total earning assets35,360,535  34,427,432  33,752,008  29,955,799  30,300,643 
Cash and due from banks703,294  705,411  731,700  578,905  571,333 
Derivative contracts, net328,802  262,927  299,319  294,126  318,375 
Cash surrender value of bank-owned life insurance384,974  382,538  379,893  322,038  319,507 
Receivable on unsettled securities sales1,437,462  1,224,700  799,548  768,785  618,240 
Other assets2,629,710  2,669,673  2,423,275  1,776,164  1,777,937 
TOTAL ASSETS$40,844,777  $39,672,681  $38,385,743  $33,695,817  $33,906,035 
          
LIABILITIES AND EQUITY         
Deposits:         
Demand$9,883,965  $9,988,088  $10,648,683  $9,325,002  $9,223,327 
Interest-bearing transaction12,512,282  11,931,539  11,773,651  10,010,031  10,189,354 
Savings558,738  541,575  526,275  503,821  503,671 
Time2,207,391  2,153,277  2,146,786  2,097,441  2,138,880 
Total deposits25,162,376  24,614,479  25,095,395  21,936,295  22,055,232 
Funds purchased and repurchase agreements2,066,950  2,033,036  1,205,568  1,193,583  593,250 
Other borrowings7,175,617  7,040,279  6,361,141  5,765,440  6,497,020 
Subordinated debentures275,887  275,882  276,378  144,702  144,692 
Derivative contracts, net283,484  273,786  268,848  185,029  235,543 
Due on unsettled securities purchases821,688  453,937  493,887  544,263  527,804 
Other liabilities460,732  501,788  341,438  311,605  340,322 
TOTAL LIABILITIES36,246,734  35,193,187  34,042,655  30,080,917  30,393,863 
Total equity4,598,043  4,479,494  4,343,088  3,614,900  3,512,172 
TOTAL LIABILITIES AND EQUITY$40,844,777  $39,672,681  $38,385,743  $33,695,817  $33,906,035 


 
STATEMENTS OF EARNINGS -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands, except per share data)
 Three Months Ended Six Months Ended
 June 30, June 30,
 2019 2018 2019 2018
        
Interest revenue$390,820  $294,180  $766,894  $559,587 
Interest expense105,388  55,618  203,360  101,289 
Net interest revenue285,432  238,562  563,534  458,298 
Provision for credit losses5,000    13,000  (5,000)
Net interest revenue after provision for credit losses280,432  238,562  550,534  463,298 
Other operating revenue:       
Brokerage and trading revenue40,526  26,488  72,143  57,136 
Transaction card revenue21,915  20,975  42,653  41,965 
Fiduciary and asset management revenue45,025  41,692  88,383  83,524 
Deposit service charges and fees28,074  27,834  56,317  54,994 
Mortgage banking revenue28,131  26,346  51,965  52,371 
Other revenue12,437  13,923  25,199  26,882 
Total fees and commissions176,108  157,258  336,660  316,872 
Other gains, net3,480  4,578  6,456  3,286 
Gain (loss) on derivatives, net11,150  (3,057) 15,817  (8,742)
Gain (loss) on fair value option securities, net9,853  (3,341) 19,518  (20,905)
Change in fair value of mortgage servicing rights(29,555) 1,723  (50,221) 22,929 
Gain (loss) on available for sale securities, net1,029  (762) 1,105  (1,052)
Total other operating revenue172,065  156,399  329,335  312,388 
Other operating expense:       
Personnel160,342  138,947  329,570  278,894 
Business promotion10,142  7,686  18,016  13,696 
Charitable contributions to BOKF Foundation1,000    1,000   
Professional fees and services13,002  14,978  29,141  25,178 
Net occupancy and equipment26,880  22,761  56,401  46,807 
Insurance6,454  6,245  11,293  12,838 
Data processing and communications29,735  27,739  61,184  55,556 
Printing, postage and supplies4,107  4,011  8,992  8,100 
Net losses and operating expenses of repossessed assets580  2,722  2,576  10,427 
Amortization of intangible assets5,138  1,386  10,329  2,686 
Mortgage banking costs11,545  12,890  21,451  23,039 
Other expense8,212  7,111  14,341  13,685 
Total other operating expense277,137  246,476  564,294  490,906 
        
Net income before taxes175,360  148,485  315,575  284,780 
Federal and state income taxes37,580  33,330  67,530  64,278 
        
Net income137,780  115,155  248,045  220,502 
Net gain (loss) attributable to non-controlling interests217  783  (130) 568 
Net income attributable to BOK Financial Corporation shareholders$137,563  $114,372  $248,175  $219,934 
        
Average shares outstanding:       
Basic70,887,063  64,901,975  71,135,414  64,874,567 
Diluted70,902,033  64,937,226  71,151,558  64,912,552 
        
Net income per share:       
Basic$1.93  $1.75  $3.47  $3.36 
Diluted$1.93  $1.75  $3.46  $3.36 


 
FINANCIAL HIGHLIGHTS -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands, except ratio and share data)
 Three Months Ended
 June 30, 2019 Mar. 31, 2019 Dec. 31, 2018 Sept. 30, 2018 June 30, 2018
Capital:         
Period-end shareholders' equity$4,709,438  $4,522,873  $4,432,109  $3,615,032  $3,553,431 
Risk weighted assets$32,040,741  $31,601,558  $30,742,295  $27,398,072  $27,004,559 
Risk-based capital ratios:         
Common equity tier 110.84% 10.71% 10.92% 12.07% 11.92%
Tier 110.84% 10.71% 10.92% 12.07% 11.92%
Total capital12.34% 12.24% 12.50% 13.37% 13.26%
Leverage ratio8.75% 8.76% 8.96% 9.90% 9.57%
Tangible common equity ratio18.69% 8.64% 8.82% 9.55% 9.21%
          
Common stock:         
Book value per share$66.15  $63.30  $61.45  $55.25  $54.30 
Tangible book value per share49.68  46.82  45.03  47.90  46.95 
Market value per share:         
High$88.17  $93.72  $98.29  $105.22  $106.65 
Low$72.60  $72.11  $69.96  $92.40  $92.39 
Cash dividends paid$35,631  $35,885  $35,977  $32,591  $29,340 
Dividend payout ratio25.90% 32.44% 33.17% 27.79% 25.65%
Shares outstanding, net71,198,270  71,449,982  72,122,932  65,434,258  65,439,090 
Stock buy-back program:         
Shares repurchased250,000  705,609  525,000    8,257 
Amount$20,125  $60,577  $45,057  $  $824 
Average price per share$80.50  $85.85  $85.82  $  $99.84 
          
Performance ratios (quarter annualized):
Return on average assets1.35% 1.13% 1.12% 1.38% 1.35%
Return on average equity12.02% 10.04% 9.93% 12.95% 13.14%
Net interest margin3.30% 3.30% 3.40% 3.21% 3.17%
Efficiency ratio59.51% 64.80% 63.25% 61.60% 61.77%
          
Reconciliation of non-GAAP measures:
1  Tangible common equity ratio:         
Total shareholders' equity$4,709,438  $4,522,873  $4,432,109  $3,615,032  $3,553,431 
Less: Goodwill and intangible assets, net1,172,564  1,177,573  1,184,112  480,800  481,366 
Tangible common equity$3,536,874  $3,345,300  $3,247,997  $3,134,232  $3,072,065 
          
Total assets$41,893,073  $39,882,962  $38,020,504  $33,289,864  $33,833,107 
Less: Goodwill and intangible assets, net1,172,564  1,177,573  1,184,112  480,800  481,366 
Tangible assets$40,720,509  $38,705,389  $36,836,392  $32,809,064  $33,351,741 
          
Tangible common equity ratio8.69% 8.64% 8.82% 9.55% 9.21%
          
          
                    
FINANCIAL HIGHLIGHTS -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands, except ratio and share data)
 Three Months Ended  
 June 30, 2019 Mar. 31, 2019 Dec. 31, 2018 Sept. 30, 2018 June 30, 2018
                    
Other data:                   
Tax equivalent interest$3,481  $2,529  $3,067  $1,894  $1,983 
Net unrealized gain (loss) on available for sale securities$131,780  $(2,609) $(95,271) $(216,793) $(180,602)
                    
Mortgage banking:                   
Mortgage production revenue$11,869  $7,868  $5,073  $7,250  $9,915 
                    
Mortgage loans funded for sale$729,841  $510,527  $497,353  $651,076  $773,910 
Add: current period-end outstanding commitments344,087  263,434  160,848  197,752  251,231 
Less: prior period end outstanding commitments263,434  160,848  197,752  251,231  298,318 
Total mortgage production volume$810,494  $613,113  $460,449  $597,597  $726,823 
          
Mortgage loan refinances to mortgage loans funded for sale31% 30% 23% 23% 22%
Gain on sale margin1.46% 1.28% 1.10% 1.21% 1.36%
          
Mortgage servicing revenue$16,262  $15,966  $16,807  $16,286  $16,431 
Average outstanding principal balance of mortgage loans serviced for others21,418,690  21,581,835  21,706,541  21,895,041  21,986,065 
Average mortgage servicing revenue rates0.30% 0.30% 0.31% 0.30% 0.30%
          
Gain (loss) on mortgage servicing rights, net of economic hedge:
Gain (loss) on mortgage hedge derivative contracts, net$11,128  $4,432  $12,162  $(2,843) $(3,070)
Gain (loss) on fair value option securities, net9,853  9,665  (282) (4,385) (3,341)
Gain (loss) on economic hedge of mortgage servicing rights20,981  14,097  11,880  (7,228) (6,411)
Gain (loss) on changes in fair value of mortgage servicing rights(29,555) (20,666) (24,233) 5,972  1,723 
Loss on changes in fair value of mortgage servicing rights, net of economic hedges, included in other operating revenue(8,574) (6,569) (12,353) (1,256) (4,688)
Net interest revenue on fair value option securities21,296  1,129  695  1,100  1,203 
Total economic cost of changes in the fair value of mortgage servicing rights, net of economic hedges$(7,278) $(5,440) $(11,658) $(156) $(3,485)

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
 June 30, 2019 Mar. 31, 2019 Dec. 31, 2018 Sept. 30, 2018 June 30, 2018
          
Interest revenue$390,820  $376,074  $365,592  $303,247  $294,180 
Interest expense105,388  97,972  79,906  62,364  55,618 
Net interest revenue285,432  278,102  285,686  240,883  238,562 
Provision for credit losses5,000  8,000  9,000  4,000   
Net interest revenue after provision for credit losses280,432  270,102  276,686  236,883  238,562 
Other operating revenue:         
Brokerage and trading revenue40,526  31,617  28,101  23,086  26,488 
Transaction card revenue21,915  20,738  20,664  21,396  20,975 
Fiduciary and asset management revenue45,025  43,358  43,665  57,514  41,692 
Deposit service charges and fees28,074  28,243  29,393  27,765  27,834 
Mortgage banking revenue28,131  23,834  21,880  23,536  26,346 
Other revenue12,437  12,762  16,404  12,900  13,923 
Total fees and commissions176,108  160,552  160,107  166,197  157,258 
Other gains (losses), net3,480  2,976  (8,305) 2,754  4,578 
Gain (loss) on derivatives, net11,150  4,667  11,167  (2,847) (3,057)
Gain (loss) on fair value option securities, net9,853  9,665  (282) (4,385) (3,341)
Change in fair value of mortgage servicing rights(29,555) (20,666) (24,233) 5,972  1,723 
Gain (loss) on available for sale securities, net1,029  76  (1,999) 250  (762)
Total other operating revenue172,065  157,270  136,455  167,941  156,399 
Other operating expense:         
Personnel160,342  169,228  160,706  143,531  138,947 
Business promotion10,142  7,874  9,207  7,620  7,686 
Charitable contributions to BOKF Foundation1,000    2,846     
Professional fees and services13,002  16,139  20,712  13,209  14,978 
Net occupancy and equipment26,880  29,521  27,780  23,394  22,761 
Insurance6,454  4,839  4,248  6,232  6,245 
Data processing and communications29,735  31,449  27,575  31,665  27,739 
Printing, postage and supplies4,107  4,885  5,232  3,837  4,011 
Net losses and operating expenses of repossessed assets580  1,996  2,581  4,044  2,722 
Amortization of intangible assets5,138  5,191  5,331  1,603  1,386 
Mortgage banking costs11,545  9,906  11,518  11,741  12,890 
Other expense8,212  6,129  6,907  5,741  7,111 
Total other operating expense277,137  287,157  284,643  252,617  246,476 
Net income before taxes175,360  140,215  128,498  152,207  148,485 
Federal and state income taxes37,580  29,950  20,121  34,662  33,330 
Net income137,780  110,265  108,377  117,545  115,155 
Net income (loss) attributable to non-controlling interests217  (347) (79) 289  783 
Net income attributable to BOK Financial Corporation shareholders$137,563  $110,612  $108,456  $117,256  $114,372 
          
Average shares outstanding:         
Basic70,887,063  71,387,070  71,808,029  64,901,095  64,901,975 
Diluted70,902,033  71,404,388  71,833,334  64,934,351  64,937,226 
Net income per share:         
Basic$1.93  $1.54  $1.50  $1.79  $1.75 
Diluted$1.93  $1.54  $1.50  $1.79  $1.75 


 
LOANS TREND -- UNAUDITED
BOK FINANCIAL CORPORATION
(In thousands)
  June 30, 2019 Mar. 31, 2019 Dec. 31, 2018 Sept. 30, 2018 June 30, 2018
Commercial:          
Energy $3,921,353  $3,705,099  $3,590,333  $3,294,867  $3,147,219 
Services 3,309,458  3,287,563  3,258,192  2,603,862  2,516,676 
Healthcare 2,926,510  2,915,885  2,799,277  2,437,323  2,353,722 
Wholesale/retail 1,793,118  1,706,900  1,621,158  1,650,729  1,699,554 
Public finance 795,659  803,083  804,550  418,578  433,408 
Manufacturing 761,357  742,374  730,521  660,582  647,816 
Other commercial and industrial 829,453  801,071  832,047  510,160  550,644 
Total commercial 14,336,908  13,961,975  13,636,078  11,576,101  11,349,039 
           
Commercial real estate:          
Multifamily 1,300,372  1,210,358  1,288,065  1,120,166  1,056,984 
Office 1,056,306  1,033,158  1,072,920  824,829  820,127 
Retail 825,399  890,685  919,082  759,423  768,024 
Industrial 828,569  767,757  778,106  696,774  653,384 
Residential construction and land development 141,509  149,686  148,584  101,872  118,999 
Other commercial real estate 557,878  549,007  558,056  301,611  294,702 
Total commercial real estate 4,710,033  4,600,651  4,764,813  3,804,675  3,712,220 
           
Residential mortgage:          
Permanent mortgage 1,088,370  1,098,481  1,122,610  1,094,926  1,068,412 
Permanent mortgages guaranteed by U.S. government agencies 195,373  193,308  190,866  180,718  169,653 
Home equity 887,079  900,831  916,557  696,098  704,185 
Total residential mortgage 2,170,822  2,192,620  2,230,033  1,971,742  1,942,250 
           
Personal 1,037,889  1,003,734  1,025,806  996,941  1,000,187 
           
Total $22,255,652  $21,758,980  $21,656,730  $18,349,459  $18,003,696 


 
LOANS BY PRINCIPAL MARKET AREA -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands)
 June 30, 2019 Mar. 31, 2019 Dec. 31, 2018 Sept. 30, 2018 June 30, 2018
          
Oklahoma:         
Commercial$3,762,234  $3,551,054  $3,491,117  $3,609,109  $3,465,407 
Commercial real estate717,970  665,190  700,756  651,315  662,665 
Residential mortgage1,403,398  1,417,381  1,440,566  1,429,843  1,403,658 
Personal382,764  374,807  375,543  376,201  362,846 
Total Oklahoma6,266,366  6,008,432  6,007,982  6,066,468  5,894,576 
          
Texas:         
Commercial5,877,265  5,754,018  5,438,133  5,115,646  4,922,451 
Commercial real estate1,341,609  1,344,810  1,341,783  1,354,679  1,336,101 
Residential mortgage272,878  265,927  266,805  253,265  243,400 
Personal400,585  396,794  394,743  381,452  394,021 
Total Texas7,892,337  7,761,549  7,441,464  7,105,042  6,895,973 
          
New Mexico:         
Commercial350,520  342,915  340,489  325,048  305,167 
Commercial real estate385,058  371,416  383,670  392,494  386,878 
Residential mortgage82,390  85,326  87,346  88,110  90,581 
Personal10,236  11,065  10,662  11,659  11,107 
Total New Mexico828,204  810,722  822,167  817,311  793,733 
          
Arkansas:         
Commercial87,896  79,286  111,338  102,237  93,217 
Commercial real estate149,300  142,551  141,898  106,701  90,807 
Residential mortgage7,463  7,731  7,537  7,278  6,927 
Personal11,208  11,550  11,955  12,126  12,331 
Total Arkansas255,867  241,118  272,728  228,342  203,282 
          
Colorado:         
Commercial2,325,742  2,231,703  2,275,069  1,132,500  1,165,721 
Commercial real estate1,023,410  957,348  963,575  354,543  267,065 
Residential mortgage241,780  241,722  251,849  68,694  64,839 
Personal72,537  65,812  72,916  56,999  60,504 
Total Colorado3,663,469  3,496,585  3,563,409  1,612,736  1,558,129 
          
Arizona:         
Commercial1,330,415  1,335,140  1,320,139  621,658  681,852 
Commercial real estate761,243  791,466  889,903  666,562  710,784 
Residential mortgage91,684  98,973  97,959  44,659  47,010 
Personal76,335  61,875  68,546  67,280  65,541 
Total Arizona2,259,677  2,287,454  2,376,547  1,400,159  1,505,187 
          
Kansas/Missouri:         
Commercial602,836  667,859  659,793  669,903  715,224 
Commercial real estate331,443  327,870  343,228  278,381  257,920 
Residential mortgage71,229  75,560  77,971  79,893  85,835 
Personal84,224  81,831  91,441  91,224  93,837 
Total Kansas/Missouri1,089,732  1,153,120  1,172,433  1,119,401  1,152,816 
          
TOTAL BOK FINANCIAL$22,255,652  $21,758,980  $21,656,730  $18,349,459  $18,003,696 

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, 2019 Mar. 31, 2019 Dec. 31, 2018 Sept. 30, 2018 June 30, 2018
Oklahoma:         
  Demand$3,279,359  $3,432,239  $3,610,593  $3,564,307  $3,867,934 
  Interest-bearing:         
  Transaction7,020,484  6,542,548  6,445,831  6,010,972  5,968,459 
  Savings307,785  309,875  288,210  288,080  289,202 
  Time1,253,804  1,217,371  1,118,643  1,128,810  1,207,471 
  Total interest-bearing8,582,073  8,069,794  7,852,684  7,427,862  7,465,132 
Total Oklahoma11,861,432  11,502,033  11,463,277  10,992,169  11,333,066 
          
Texas:         
  Demand2,974,005  2,966,743  3,291,433  3,357,669  3,321,980 
  Interest-bearing:         
  Transaction2,453,619  2,385,305  2,295,169  2,182,114  2,169,155 
  Savings103,125  101,849  99,624  97,909  97,809 
  Time425,253  419,269  423,880  453,119  445,500 
  Total interest-bearing2,981,997  2,906,423  2,818,673  2,733,142  2,712,464 
Total Texas5,956,002  5,873,166  6,110,106  6,090,811  6,034,444 
          
New Mexico:         
  Demand630,861  662,362  691,692  722,188  770,974 
  Interest-bearing:         
  Transaction557,881  573,203  571,347  593,760  586,593 
  Savings62,636  61,497  58,194  57,794  59,415 
  Time232,569  228,212  224,515  221,513  212,689 
  Total interest-bearing853,086  862,912  854,056  873,067  858,697 
Total New Mexico1,483,947  1,525,274  1,545,748  1,595,255  1,629,671 
          
Arkansas:         
  Demand29,176  31,624  36,800  36,579  39,896 
  Interest-bearing:         
  Transaction148,485  147,964  91,593  128,001  143,298 
  Savings1,783  1,785  1,632  1,826  1,885 
  Time7,810  8,321  8,726  10,214  10,771 
  Total interest-bearing158,078  158,070  101,951  140,041  155,954 
Total Arkansas187,254  189,694  138,751  176,620  195,850 
          
Colorado:         
  Demand1,621,820  1,897,547  1,658,473  593,442  529,912 
  Interest-bearing:         
  Transaction1,800,271  1,844,632  1,899,203  622,520  701,362 
  Savings57,263  58,919  57,289  40,308  38,176 
  Time246,198  261,235  274,877  217,628  208,049 
  Total interest-bearing2,103,732  2,164,786  2,231,369  880,456  947,587 
Total Colorado3,725,552  4,062,333  3,889,842  1,473,898  1,477,499 
          
Arizona:         
  Demand700,480  695,238  707,402  365,878  383,627 
  Interest-bearing:         
  Transaction560,429  621,735  575,567  130,105  193,687 
  Savings11,966  12,144  10,545  3,559  3,935 
  Time43,099  44,004  43,051  23,927  22,447 
  Total interest-bearing615,494  677,883  629,163  157,591  220,069 
Total Arizona1,315,974  1,373,121  1,336,565  523,469  603,696 
          
Kansas/Missouri:         
  Demand431,856  410,799  418,199  423,560  459,636 
  Interest-bearing:         
  Transaction310,774  361,590  327,866  322,747  401,545 
  Savings13,125  13,815  13,721  13,125  13,052 
  Time19,205  19,977  19,688  20,635  20,805 
  Total interest-bearing343,104  395,382  361,275  356,507  435,402 
Total Kansas/Missouri774,960  806,181  779,474  780,067  895,038 
          
TOTAL BOK FINANCIAL$25,305,121  $25,331,802  $25,263,763  $21,632,289  $22,169,264 


 
NET INTEREST MARGIN TREND -- UNAUDITED
BOK FINANCIAL CORPORATION
 Three Months Ended
 June 30, 2019 Mar. 31, 2019 Dec. 31, 2018 Sept. 30, 2018 June 30, 2018
          
TAX-EQUIVALENT ASSETS YIELDS         
Interest-bearing cash and cash equivalents2.57% 2.56% 2.23% 1.98% 1.86%
Trading securities3.59% 3.88% 4.10% 3.98% 3.63%
Investment securities4.41% 4.50% 4.26% 4.06% 3.95%
Available for sale securities2.63% 2.57% 2.51% 2.37% 2.30%
Fair value option securities3.34% 3.62% 3.56% 3.25% 3.16%
Restricted equity securities6.30% 6.42% 6.39% 6.36% 6.21%
Residential mortgage loans held for sale3.65% 4.58% 4.00% 4.27% 4.28%
Loans5.39% 5.26% 5.09% 4.80% 4.80%
Allowance for loan losses         
Loans, net of allowance5.45% 5.31% 5.14% 4.86% 4.86%
Total tax-equivalent yield on earning assets4.51% 4.46% 4.33% 4.04% 3.91%
          
COST OF INTEREST-BEARING LIABILITIES        
Interest-bearing deposits:         
  Interest-bearing transaction1.04% 0.94% 0.79% 0.67% 0.55%
  Savings0.12% 0.12% 0.11% 0.09% 0.08%
  Time1.90% 1.80% 1.54% 1.40% 1.29%
Total interest-bearing deposits1.13% 1.04% 0.87% 0.77% 0.66%
Funds purchased and repurchase agreements2.08% 2.07% 1.36% 1.25% 0.53%
Other borrowings2.67% 2.68% 2.51% 2.20% 1.96%
Subordinated debt5.53% 5.51% 5.38% 5.55% 5.67%
Total cost of interest-bearing liabilities1.70% 1.66% 1.42% 1.25% 1.11%
Tax-equivalent net interest revenue spread2.81% 2.80% 2.91% 2.79% 2.80%
Effect of noninterest-bearing funding sources and other0.49% 0.50% 0.49% 0.42% 0.37%
Tax-equivalent net interest margin3.30% 3.30% 3.40% 3.21% 3.17%

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, 2019 Mar. 31, 2019 Dec. 31, 2018 Sept. 30, 2018 June 30, 2018
Nonperforming assets:         
Nonaccruing loans:         
Commercial$123,395  $90,358  $99,841  $109,490  $120,978 
Commercial real estate21,670  21,508  21,621  1,316  1,996 
Residential mortgage38,477  40,409  41,555  41,917  42,343 
Personal237  302  230  269  340 
Total nonaccruing loans183,779  152,577  163,247  152,992  165,657 
Accruing renegotiated loans guaranteed by U.S. government agencies95,989  91,787  86,428  83,347  75,374 
Real estate and other repossessed assets16,940  17,139  17,487  24,515  27,891 
Total nonperforming assets$296,708  $261,503  $267,162  $260,854  $268,922 
Total nonperforming assets excluding those guaranteed by U.S. government agencies$193,976  $162,770  $173,602  $169,717  $185,981