Press Release

BOK Financial Reports Record Earnings for Second Straight Quarter

Company Release - 10/23/2019 7:55 AM ET

$142 million or $2.00 Per Share in the Third Quarter

TULSA, Okla., Oct. 23, 2019 (GLOBE NEWSWIRE) -- BOK Financial (NASDAQ: BOKF) today reported net earnings applicable to common shareholders for the third quarter of 2019 of $142.2 million, or $2.00 per diluted common share.

CEO Commentary

“The third quarter was the second-consecutive record quarter for BOK Financial,” said Steven G. Bradshaw, president and chief executive officer. “It was a quarter that really illustrated the value of having an optimum balance between our banking and fee service businesses. This balance benefits our clients in a meaningful way as we are able to serve a broader spectrum of their needs, while reducing earnings volatility for shareholders. Our results suggest that our entire team is executing at a very high level.”

Bradshaw continued, “This counter-cyclical strength, combined with continued expense management and sound credit underwriting discipline, positions us well for the remainder of 2019 and into 2020.”

Third Quarter 2019 Financial Highlights

  • Net income was $142.2 million or $2.00 per diluted share for the third quarter of 2019 and $137.6 million or $1.93 per diluted share for the second quarter of 2019.
  • Net interest revenue totaled $279.1 million, a decrease of $6.3 million. Net interest margin was 3.01 percent compared to 3.30 percent in the second quarter of 2019. Falling interest rates compressed the net interest margin by 9 basis points.
  • Fees and commissions revenue totaled $186.1 million, an increase of $10.0 million. Falling interest rates led to growth in brokerage and trading revenue and mortgage banking revenue.
  • Operating expense increased $2.2 million to $279.3 million. Personnel expense increased $2.2 million while non-personnel expense was consistent with the second quarter of 2019.
  • A $12.0 million provision for credit losses was recorded in the third quarter of 2019. The combined allowance for credit losses totaled $206 million or 0.92 percent of outstanding loans compared to $204 million or 0.92 percent in the previous quarter.
  • Average loans increased $409 million to $22.4 billion. Period-end loans increased $30 million to $22.3 billion. Average deposits increased $538 million to $25.7 billion. Period-end deposits increased $862 million.
  • Income tax expense decreased $5.2 million during the third quarter primarily due to completion of 2018 tax filings and tax credit projects.

Third Quarter 2019 Business Segment Highlights

Commercial Banking

  • Contributed $101.6 million to net income, a decrease of $5.4 million compared to the prior quarter. Net interest revenue decreased by $5.5 million. Fee revenue increased $5.1 million, offset by an increase in operating expense of $5.7 million.
  • Average loans grew by $414 million and average deposits increased $109 million.

Consumer Banking

  • Contributed $16.6 million to net income, consistent with the second quarter. Net interest revenue decreased $4.3 million, fee revenue increased $2.6 million and operating expense increased $2.0 million.
  • The recent decrease in mortgage interest rates continues to drive mortgage origination activity. Mortgage production volume increased $102 million to $913 million and gain on sale margin increased 5 basis points to 1.51 percent.

Wealth Management

  • Contributed $23.2 million to net income, a decrease of $2.3 million compared to the prior quarter. Net interest revenue decreased $3.9 million, fees and commissions revenue increased $3.5 million and operating expense increased $2.2 million.
  • Assets under management or administration were $80.8 billion at September 30, 2019 compared to $81.8 billion at June 30, 2019. Fiduciary assets totaled $49.3 billion at September 30, 2019 and $49.3 billion at June 30, 2019.

Net Interest Revenue

Net interest revenue was $279.1 million for the third quarter of 2019, a $6.3 million decrease compared to the second quarter of 2019. Discount accretion on acquired loans totaled $10.9 million for the third quarter and $13.4 million for the second quarter. Recoveries of foregone interest on nonaccruing loans added $3.4 million to the second quarter of 2019.

Average earning assets increased $2.3 billion compared to the second quarter of 2019. Available for sale securities increased $1.3 billion during the third quarter as the balance sheet was repositioned to reduce the Company's exposure to further interest rate decreases. Fair value option securities balances, which we use as an economic hedge against changes in the fair value of mortgage servicing rights, increased $655 million. Average loan balances were up $409 million. Growth in average earning assets was largely funded by a $2.0 billion increase in borrowed funds and a $662 million increase in interest-bearing deposits.

Net interest margin was 3.01 percent compared to 3.30 percent in the previous quarter. Net interest margin was reduced 9 basis points due to available for sale securities expansion and 4 basis points due to the increase in the fair value hedge portfolio. In addition, lower foregone interest recoveries and discount accretion reduced net interest margin by 7 basis points. Falling interest rates compressed the net interest margin by an additional 9 basis points.

Excluding interest recoveries, the yield on average earning assets was 4.25 percent, a 22 basis point decrease from the second quarter. The loan portfolio yield was 5.12 percent, down 21 basis points. The yield on the available for sale securities portfolio decreased 3 basis points to 2.60 percent.

Funding costs were 1.68 percent, down 2 basis points. The cost of interest-bearing deposits increased 4 basis points to 1.17 percent. The cost of other borrowed funds was down 22 basis points to 2.31 percent. The benefit to net interest margin from assets funded by non-interest liabilities decreased 5 basis points to 44 basis points.

Fees and Commissions Revenue

Fees and commissions revenue totaled $186.1 million for the third quarter of 2019, an increase of $10.0 million over the second quarter of 2019.

Brokerage and trading revenue increased $3.3 million primarily due to higher trading volume and loan syndication activity. Mortgage banking revenue increased $2.0 million. A continued decline in primary mortgage interest rates increased mortgage loan production. Mortgage production volume increased $102 million and the gain on sale margin increased 5 basis points over the second quarter of 2019.Fees and commissions revenue totaled $186.1 million for the third quarter of 2019, an increase of $10.0 million over the second quarter of 2019.

Other revenue increased $5.2 million. This increase is largely due to the combination of an increase in repossessed asset revenue from a certain set of oil and gas properties, which is offset by an increase in related operating expenses, a business insurance credit, and other timing variances.

Fiduciary and asset management revenue decreased $1.4 million compared to the second quarter of 2019, primarily due to seasonal tax fees earned in the second quarter.

Operating Expense

Total operating expense was $279.3 million for the third quarter of 2019, an increase of $2.2 million over the second quarter of 2019.

Personnel expense increased $2.2 million. Incentive compensation increased $5.5 million led by an increase in cash based incentive compensation primarily due to increased sales activities in wealth management and commercial banking. Increased incentive compensation was partially offset by a decrease in regular compensation of $1.2 million and employee benefits of $2.0 million. Employee benefits expense was down largely due to a seasonal decrease in payroll taxes.

Non-personnel expense was largely unchanged in total compared to the second quarter of 2019. Mortgage banking costs increased $3.4 million primarily due to an increase in amortization of mortgage servicing rights as lower interest rates drive an increase in prepayment speeds. In addition, data processing and communications expense increased $2.2 million. Net losses and expenses of repossessed assets increased $1.1 million.

Insurance expense decreased $2.2 million, other expense decreased $1.9 million, and business promotion expense decreased $1.3 million, all following higher activity in the second quarter of 2019 largely related to the CoBiz acquisition.

Income Taxes

The effective tax rate was 18.6 percent for the third quarter of 2019, down from 21.4 percent for the second quarter of 2019.  Tax expense for the third quarter of 2019 included $5.2 million of benefits related to completion of 2018 tax returns for the Company and CoBiz, and the finalization of tax credit projects.

Loans, Deposits and Capital

Loans

Outstanding loans were $22.3 billion at September 30, 2019, up $30 million over June 30, 2019. Growth in commercial and personal loans was partially offset by a decrease in commercial real estate and residential mortgage loans.

Outstanding commercial loan balances grew by $88 million or 1 percent over June 30, 2019. Energy loan balances were up $193 million. Healthcare loans increased $106 million and wholesale/retail sector loans increased $55 million. Other commercial and industrial loans decreased $110 million, manufacturing loans decreased $63 million and public finance loans decreased by $51 million.

Commercial real estate loan balances decreased $84 million or 2 percent compared to June 30, 2019. Loans secured by industrial properties increased $45 million. Loans secured by multifamily residential properties increased $24 million. Other real estate loans decreased $79 million. Loans secured by office buildings decreased $42 million and loans secured by retail properties decreased $26 million.

Deposits

Period-end deposits totaled $26.2 billion at September 30, 2019, an $862 million increase over June 30, 2019. Interest-bearing transaction account balances grew by $670 million and demand deposit balances increased $177 million. Average deposits were $25.7 billion at September 30, 2019, an increase of $538 million compared to June 30, 2019. Total interest-bearing transaction deposits increased $619 million, partially offset by a decrease in demand deposits of $124 million.

Capital

The company's common equity Tier 1 capital ratio was 11.06 percent at September 30, 2019. In addition, the company's Tier 1 capital ratio was 11.06 percent, total capital ratio was 12.56 percent, and leverage ratio was 8.41 percent at September 30, 2019. At June 30, 2019, the company's common equity Tier 1 capital ratio was 10.84 percent, Tier 1 capital ratio was 10.84 percent, total capital ratio was 12.34 percent, and leverage ratio was 8.75 percent.

The company's tangible common equity ratio, a non-GAAP measure, was 8.72 percent at September 30, 2019 and 8.69 percent at June 30, 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.

The company repurchased 336,713 shares at an average price of $77.03 per share in the third quarter of 2019 and 250,000 shares at an average price of $80.50 in the second quarter of 2019.

Credit Quality

Nonperforming assets totaled $286 million or 1.28 percent of outstanding loans and repossessed assets at September 30, 2019, compared to $297 million or 1.33 percent at June 30, 2019. Nonperforming assets that are not guaranteed by U.S. government agencies totaled $187 million or 0.85 percent of outstanding loans and repossessed assets at September 30, 2019, compared to $194 million or 0.88 percent at June 30, 2019.

Nonaccruing loans were $172 million or 0.77 percent of outstanding loans at September 30, 2019. Nonaccruing commercial loans totaled $112 million or 0.77 percent of outstanding commercial loans. Nonaccruing commercial real estate loans totaled $23 million or 0.50 percent of outstanding commercial real estate loans. Nonaccruing residential mortgage loans totaled $37 million or 1.76 percent of outstanding residential mortgage loans.

Nonaccruing loans decreased $11 million from June 30, 2019, primarily due to a $15 million decrease in other commercial and industrial loans and a $10 million decrease in healthcare sector loans. Nonaccruing energy loans increased $17 million. New nonaccruing loans identified in the third quarter totaled $36 million, offset by $28 million in payments received and $12 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 $143 million at September 30, compared to $161 million at June 30. The decrease largely resulted from energy, wholesale/retail sector and other commercial and industrial loans, partially offset by an increase in services and healthcare sector loans.

Net charge-offs were $10.6 million or 0.19 percent of average loans on an annualized basis for the third quarter of 2019, compared to $7.7 million or 0.14 percent of average loans on an annualized basis for the second quarter of 2019. Net charge-offs were 0.21 percent of average loans over the last four quarters. Gross charge-offs were $11.7 million for the third quarter compared to $13.2 million for the previous quarter. Recoveries totaled $1.1 million for the third quarter of 2019 and $5.5 million for the second quarter of 2019.

Based on an evaluation of all credit factors, including growth in the originated loan portfolio, changes in nonaccruing and potential problem loans and net charge-offs, the company determined that a $12.0 million provision for credit losses was appropriate for the third quarter of 2019. The company recorded a $5.0 million provision for credit losses in the second quarter of 2019.

The combined allowance for credit losses totaled $206 million or 0.92 percent of outstanding loans and 124 percent of nonaccruing loans at September 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 1.02 percent of outstanding loans and 130 percent of nonaccruing loans at September 30, 2019 compared to 1.03 percent of outstanding loans and 126 percent of nonaccruing loans at June 30, 2019. The allowance for loan losses was $204 million and the accrual for off-balance sheet credit losses was $1.4 million. At June 30, 2019, the combined allowance for credit losses was $204 million or 0.92 percent of outstanding loans and 115 percent of nonaccruing loans, excluding loans guaranteed by U.S. government agencies. The allowance for loan losses was $203 million and the accrual for off-balance sheet credit losses was $1.9 million.

Securities and Derivatives

The fair value of the available for sale securities portfolio totaled $11.0 billion at September 30, 2019, a $510 million increase compared to June 30, 2019. At September 30, 2019, the available for sale securities portfolio consisted primarily of $7.7 billion of residential mortgage-backed securities fully backed by U.S. government agencies and $3.2 billion of commercial mortgage-backed securities fully backed by U.S. government agencies. At September 30, 2019, the available for sale securities portfolio had a net unrealized gain of $178 million compared to $132 million at June 30, 2019.

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 $678 million to $1.8 billion at September 30, 2019.

The net economic cost of the changes in fair value of mortgage servicing rights and related economic hedges was $3.0 million during the third quarter of 2019, including a $12.6 million decrease in the fair value of mortgage servicing rights, an $8.3 million increase in the fair value of securities and derivative contracts held as an economic hedge, and $1.2 million of related net interest revenue.

Commercial Banking

Net income for Commercial Banking was $101.6 million for the third quarter of 2019, a decrease of $5.4 million compared to the second quarter of 2019.

Net interest revenue decreased $5.5 million largely as a result of a decrease in interest recoveries on loans paired with a change in the mix of deposits from non-interest bearing to interest bearing. Average loans increased $414 million or 2 percent while average customer deposits increased $109 million or 1 percent.

Fees and commissions revenue increased $5.1 million over the second quarter of 2019. Loan syndication revenue increased $1.9 million based on the timing of completed transactions. Operating expense increased $5.7 million. Personnel expense increased $1.4 million primarily due to incentive compensation related to syndication activity.  Non-personnel expense increased $4.3 million. Other revenue increased $3.3 million, offset by an increase in repossession expense of $2.4 million, largely due to expenses related to repossessed assets on certain oil and gas properties.

Consumer Banking

Net income from Consumer Banking was $16.6 million in the third quarter of 2019, consistent with the second quarter of 2019.

Net interest revenue from Consumer Banking activities decreased $4.3 million largely due to decrease in the yield on deposits sold to our Funds Management unit. Average loans decreased $23 million or 1 percent and average deposits were relatively consistent with the previous quarter.

Revenues from mortgage banking activities increased $2.0 million over the prior quarter due to lower interest rates which have led to an increase in mortgage production and improved gain on sale margin.

Operating expenses increased $2.0 million. Mortgage banking costs increased $3.4 million related to increased payoffs as mortgage interest rates declined during the quarter. This increase was partially offset by a decrease in business promotion expense and personnel expense

Wealth Management

Net income for Wealth Management decreased $2.3 million to $23.2 million during the third quarter of 2019.

Net interest revenue decreased $3.9 million primarily due to a change in deposit mix to interest bearing deposits along with an increase in unsettled securities receivables. Brokerage and trading revenue increased $3.0 million due to higher trading activity and volumes as a result of interest rate changes. Operating expenses increased $2.2 million, largely related to an increase in incentive compensation.

Average loans increased $23 million to $1.7 billion. Average deposits increased $369 million to $6.6 billion, primarily due to an increase in interest-bearing transaction account balances. Assets under management or administration were $80.8 billion at September 30, 2019 compared to $81.8 billion at June 30, 2019. Fiduciary assets totaled $49.3 billion at September 30, 2019 and $49.3 billion at June 30, 2019.

Conference Call and Webcast

The company will hold a conference call at 9 a.m. Central time on Wednesday, October 23, 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 # 13695151.

About BOK Financial Corporation

BOK Financial Corporation is a $43 billion regional financial services company headquartered in Tulsa, Oklahoma with $81 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., BOK Financial Private Wealth, Inc. 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 September 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.

Contact:
Cody McAlester
Phone Number: +1 918-295-0486
Email: cmcalester@bokf.com

BALANCE SHEETS -- UNAUDITED
BOK FINANCIAL CORPORATION
(In thousands)
 Sept. 30, 2019 June 30, 2019
ASSETS   
Cash and due from banks$761,130  $739,109 
Interest-bearing cash and cash equivalents465,458  596,382 
Trading securities1,675,212  1,900,395 
Investment securities304,224  327,677 
Available for sale securities11,024,551  10,514,414 
Fair value option securities1,816,398  1,138,819 
Restricted equity securities479,018  461,017 
Residential mortgage loans held for sale282,487  193,570 
Loans:   
Commercial14,424,625  14,336,908 
Commercial real estate4,626,057  4,710,033 
Residential mortgage2,117,303  2,170,822 
Personal1,117,382  1,037,889 
Total loans22,285,367  22,255,652 
Allowance for loan losses(204,432) (202,534)
Loans, net of allowance22,080,935  22,053,118 
Premises and equipment, net516,597  468,368 
Receivables219,420  213,608 
Goodwill1,048,091  1,048,091 
Intangible assets, net124,320  124,473 
Mortgage servicing rights193,661  208,308 
Real estate and other repossessed assets, net21,026  16,940 
Derivative contracts, net352,019  415,221 
Cash surrender value of bank-owned life insurance387,035  384,193 
Receivable on unsettled securities sales904,630  583,421 
Other assets470,993  505,949 
TOTAL ASSETS$43,127,205  $41,893,073 
    
LIABILITIES AND EQUITY   
Deposits:   
Demand$9,844,397  $9,667,557 
Interest-bearing transaction13,521,545  12,851,943 
Savings557,593  557,683 
Time2,243,541  2,227,938 
Total deposits26,167,076  25,305,121 
Funds purchased and repurchase agreements3,413,051  2,331,947 
Other borrowings6,822,334  7,823,809 
Subordinated debentures275,909  275,892 
Accrued interest, taxes and expense218,775  181,413 
Due on unsettled securities purchases703,448  565,268 
Derivative contracts, net336,791  381,454 
Other liabilities352,156  309,694 
TOTAL LIABILITIES38,289,540  37,174,598 
Shareholders' equity:   
Capital, surplus and retained earnings4,695,263  4,610,869 
Accumulated other comprehensive gain133,753  98,569 
TOTAL SHAREHOLDERS' EQUITY4,829,016  4,709,438 
Non-controlling interests8,649  9,037 
TOTAL EQUITY4,837,665  4,718,475 
TOTAL LIABILITIES AND EQUITY$43,127,205  $41,893,073 


AVERAGE BALANCE SHEETS -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands)
 Three Months Ended
 Sept. 30, 2019 June 30, 2019 Mar. 31, 2019 Dec. 31, 2018 Sept. 30, 2018
ASSETS         
Interest-bearing cash and cash equivalents$500,823  $535,491  $537,903  $563,132  $688,872 
Trading securities1,696,568  1,757,335  1,968,399  1,929,601  1,762,794 
Investment securities308,090  328,482  343,282  364,737  379,566 
Available for sale securities10,747,439  9,435,668  8,883,054  8,704,963  8,129,214 
Fair value option securities1,553,879  898,772  594,349  277,575  469,398 
Restricted equity securities476,781  413,812  395,432  362,729  328,842 
Residential mortgage loans held for sale203,319  192,102  145,040  179,553  207,488 
Loans:         
Commercial14,507,185  14,175,057  13,966,521  13,587,344  11,484,200 
Commercial real estate4,652,534  4,656,861  4,602,149  4,747,784  3,774,470 
Residential mortgage2,129,421  2,146,315  2,193,334  2,222,063  1,956,089 
Personal1,123,778  1,026,172  1,004,061  1,022,140  989,026 
Total loans22,412,918  22,004,405  21,766,065  21,579,331  18,203,785 
Allowance for loan losses(201,714) (205,532) (206,092) (209,613) (214,160)
Total loans, net22,211,204  21,798,873  21,559,973  21,369,718  17,989,625 
Total earning assets37,698,103  35,360,535  34,427,432  33,752,008  29,955,799 
Cash and due from banks717,338  703,294  705,411  731,700  578,905 
Derivative contracts, net331,834  328,802  262,927  299,319  294,126 
Cash surrender value of bank-owned life insurance385,190  384,974  382,538  379,893  322,038 
Receivable on unsettled securities sales1,742,794  1,437,462  1,224,700  799,548  768,785 
Other assets2,705,089  2,629,710  2,669,673  2,423,275  1,776,164 
TOTAL ASSETS$43,580,348  $40,844,777  $39,672,681  $38,385,743  $33,695,817 
          
LIABILITIES AND EQUITY         
Deposits:         
Demand$9,759,710  $9,883,965  $9,988,088  $10,648,683  $9,325,002 
Interest-bearing transaction13,131,542  12,512,282  11,931,539  11,773,651  10,010,031 
Savings557,122  558,738  541,575  526,275  503,821 
Time2,251,800  2,207,391  2,153,277  2,146,786  2,097,441 
Total deposits25,700,174  25,162,376  24,614,479  25,095,395  21,936,295 
Funds purchased and repurchase agreements3,106,163  2,066,950  2,033,036  1,205,568  1,193,583 
Other borrowings8,125,023  7,175,617  7,040,279  6,361,141  5,765,440 
Subordinated debentures275,900  275,887  275,882  276,378  144,702 
Derivative contracts, net300,051  283,484  273,786  268,848  185,029 
Due on unsettled securities purchases745,893  821,688  453,937  493,887  544,263 
Other liabilities547,144  460,732  501,788  341,438  311,605 
TOTAL LIABILITIES38,800,348  36,246,734  35,193,187  34,042,655  30,080,917 
Total equity4,780,000  4,598,043  4,479,494  4,343,088  3,614,900 
TOTAL LIABILITIES AND EQUITY$43,580,348  $40,844,777  $39,672,681  $38,385,743  $33,695,817 


STATEMENTS OF EARNINGS -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands, except per share data)
 Three Months Ended Nine Months Ended
 September 30, September 30,
 2019 2018 2019 2018
        
Interest revenue$395,207  $303,247  $1,162,101  $862,834 
Interest expense116,111  62,364  319,471  163,653 
Net interest revenue279,096  240,883  842,630  699,181 
Provision for credit losses12,000  4,000  25,000  (1,000)
Net interest revenue after provision for credit losses267,096  236,883  817,630  700,181 
Other operating revenue:       
Brokerage and trading revenue43,840  23,086  115,983  80,222 
Transaction card revenue22,015  21,396  64,668  63,361 
Fiduciary and asset management revenue43,621  57,514  132,004  141,038 
Deposit service charges and fees28,837  27,765  85,154  82,760 
Mortgage banking revenue30,180  23,536  82,145  75,907 
Other revenue17,626  12,900  42,825  39,781 
Total fees and commissions186,119  166,197  522,779  483,069 
Other gains, net4,544  2,754  11,000  6,040 
Gain (loss) on derivatives, net3,778  (2,847) 19,595  (11,589)
Gain (loss) on fair value option securities, net4,597  (4,385) 24,115  (25,290)
Change in fair value of mortgage servicing rights(12,593) 5,972  (62,814) 28,901 
Gain (loss) on available for sale securities, net5  250  1,110  (802)
Total other operating revenue186,450  167,941  515,785  480,329 
Other operating expense:       
Personnel162,573  143,531  492,143  422,425 
Business promotion8,859  7,620  26,875  21,316 
Charitable contributions to BOKF Foundation    1,000   
Professional fees and services12,312  13,209  41,453  38,387 
Net occupancy and equipment27,558  23,394  83,959  70,201 
Insurance4,220  6,232  15,513  19,070 
Data processing and communications31,915  31,665  93,099  87,221 
Printing, postage and supplies3,825  3,837  12,817  11,937 
Net losses and operating expenses of repossessed assets1,728  4,044  4,304  14,471 
Amortization of intangible assets5,064  1,603  15,393  4,289 
Mortgage banking costs14,975  11,741  36,426  34,780 
Other expense6,263  5,741  20,604  19,426 
Total other operating expense279,292  252,617  843,586  743,523 
        
Net income before taxes174,254  152,207  489,829  436,987 
Federal and state income taxes32,396  34,662  99,926  98,940 
        
Net income141,858  117,545  389,903  338,047 
Net income (loss) attributable to non-controlling interests(373) 289  (503) 857 
Net income attributable to BOK Financial Corporation shareholders$142,231  $117,256  $390,406  $337,190 
        
Average shares outstanding:       
Basic70,596,307  64,901,095  70,953,544  64,883,319 
Diluted70,609,924  64,934,351  70,968,845  64,919,728 
        
Net income per share:       
Basic$2.00  $1.79  $5.47  $5.15 
Diluted$2.00  $1.79  $5.47  $5.15 


FINANCIAL HIGHLIGHTS -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands, except ratio and share data)
 Three Months Ended
 Sept. 30, 2019 June 30, 2019 Mar. 31, 2019 Dec. 31, 2018 Sept. 30, 2018
Capital:         
Period-end shareholders' equity$4,829,016  $4,709,438  $4,522,873  $4,432,109  $3,615,032 
Risk weighted assets$32,159,139  $32,040,741  $31,601,558  $30,742,295  $27,398,072 
Risk-based capital ratios:         
Common equity tier 111.06% 10.84% 10.71% 10.92% 12.07%
Tier 111.06% 10.84% 10.71% 10.92% 12.07%
Total capital12.56% 12.34% 12.24% 12.50% 13.37%
Leverage ratio8.41% 8.75% 8.76% 8.96% 9.90%
Tangible common equity ratio18.72% 8.69% 8.64% 8.82% 9.55%
          
Common stock:         
Book value per share$68.15  $66.15  $63.30  $61.45  $55.25 
Tangible book value per share51.60  49.68  46.82  45.03  47.90 
Market value per share:         
High$84.35  $88.17  $93.72  $98.29  $105.22 
Low$72.96  $72.60  $72.11  $69.96  $92.40 
Cash dividends paid$35,472  $35,631  $35,885  $35,977  $32,591 
Dividend payout ratio24.94% 25.90% 32.44% 33.17% 27.79%
Shares outstanding, net70,858,010  71,193,770  71,449,982  72,122,932  65,434,258 
Stock buy-back program:         
Shares repurchased336,713  250,000  705,609  525,000   
Amount$25,937  $20,125  $60,577  $45,057  $ 
Average price per share$77.03  $80.50  $85.85  $85.82  $ 
          
Performance ratios (quarter annualized):
Return on average assets1.29% 1.35% 1.13% 1.12% 1.38%
Return on average equity11.83% 12.02% 10.04% 9.93% 12.95%
Net interest margin3.01% 3.30% 3.30% 3.40% 3.21%
Efficiency ratio59.31% 59.51% 64.80% 63.25% 61.60%
          
Reconciliation of non-GAAP measures:
1  Tangible common equity ratio:         
Total shareholders' equity$4,829,016  $4,709,438  $4,522,873  $4,432,109  $3,615,032 
Less: Goodwill and intangible assets, net1,172,411  1,172,564  1,177,573  1,184,112  480,800 
Tangible common equity$3,656,605  $3,536,874  $3,345,300  $3,247,997  $3,134,232 
          
Total assets$43,127,205  $41,893,073  $39,882,962  $38,020,504  $33,289,864 
Less: Goodwill and intangible assets, net1,172,411  1,172,564  1,177,573  1,184,112  480,800 
Tangible assets$41,954,794  $40,720,509  $38,705,389  $36,836,392  $32,809,064 
          
Tangible common equity ratio8.72% 8.69% 8.64% 8.82% 9.55%
          
Other data:         
Tax equivalent interest$2,936  $3,481  $2,529  $3,067  $1,894 
Net unrealized gain (loss) on available for sale securities$178,060  $131,780  $(2,609) $(95,271) $(216,793)
          
Mortgage banking:         
Mortgage production revenue$13,814  $11,869  $7,868  $5,073  $7,250 
          
Mortgage loans funded for sale$877,280  $729,841  $510,527  $497,353  $651,076 
Add: current period-end outstanding commitments379,377  344,087  263,434  160,848  197,752 
Less: prior period end outstanding commitments344,087  263,434  160,848  197,752  251,231 
Total mortgage production volume$912,570  $810,494  $613,113  $460,449  $597,597 
          
Mortgage loan refinances to mortgage loans funded for sale56% 31% 30% 23% 23%
Gain on sale margin1.51% 1.46% 1.28% 1.10% 1.21%
          
Mortgage servicing revenue$16,366  $16,262  $15,966  $16,807  $16,286 
Average outstanding principal balance of mortgage loans serviced for others21,172,874  21,418,690  21,581,835  21,706,541  21,895,041 
Average mortgage servicing revenue rates0.31% 0.30% 0.30% 0.31% 0.30%
          
Gain (loss) on mortgage servicing rights, net of economic hedge:
Gain (loss) on mortgage hedge derivative contracts, net$3,742  $11,128  $4,432  $12,162  $(2,843)
Gain (loss) on fair value option securities, net4,597  9,853  9,665  (282) (4,385)
Gain (loss) on economic hedge of mortgage servicing rights8,339  20,981  14,097  11,880  (7,228)
Gain (loss) on changes in fair value of mortgage servicing rights(12,593) (29,555) (20,666) (24,233) 5,972 
Loss on changes in fair value of mortgage servicing rights, net of economic hedges,
 included in other operating revenue
(4,254) (8,574) (6,569) (12,353) (1,256)
Net interest revenue on fair value option securities21,245  1,296  1,129  695  1,100 
Total economic cost of changes in the fair value of mortgage servicing rights,
 net of economic hedges
$(3,009) $(7,278) $(5,440) $(11,658) $(156)

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
 Sept. 30, 2019 June 30, 2019 Mar. 31, 2019 Dec. 31, 2018 Sept. 30, 2018
          
Interest revenue$395,207  $390,820  $376,074  $365,592  $303,247 
Interest expense116,111  105,388  97,972  79,906  62,364 
Net interest revenue279,096  285,432  278,102  285,686  240,883 
Provision for credit losses12,000  5,000  8,000  9,000  4,000 
Net interest revenue after provision for credit losses267,096  280,432  270,102  276,686  236,883 
Other operating revenue:         
Brokerage and trading revenue43,840  40,526  31,617  28,101  23,086 
Transaction card revenue22,015  21,915  20,738  20,664  21,396 
Fiduciary and asset management revenue43,621  45,025  43,358  43,665  57,514 
Deposit service charges and fees28,837  28,074  28,243  29,393  27,765 
Mortgage banking revenue30,180  28,131  23,834  21,880  23,536 
Other revenue17,626  12,437  12,762  16,404  12,900 
Total fees and commissions186,119  176,108  160,552  160,107  166,197 
Other gains (losses), net4,544  3,480  2,976  (8,305) 2,754 
Gain (loss) on derivatives, net3,778  11,150  4,667  11,167  (2,847)
Gain (loss) on fair value option securities, net4,597  9,853  9,665  (282) (4,385)
Change in fair value of mortgage servicing rights(12,593) (29,555) (20,666) (24,233) 5,972 
Gain (loss) on available for sale securities, net5  1,029  76  (1,999) 250 
Total other operating revenue186,450  172,065  157,270  136,455  167,941 
Other operating expense:         
Personnel162,573  160,342  169,228  160,706  143,531 
Business promotion8,859  10,142  7,874  9,207  7,620 
Charitable contributions to BOKF Foundation  1,000    2,846   
Professional fees and services12,312  13,002  16,139  20,712  13,209 
Net occupancy and equipment27,558  26,880  29,521  27,780  23,394 
Insurance4,220  6,454  4,839  4,248  6,232 
Data processing and communications31,915  29,735  31,449  27,575  31,665 
Printing, postage and supplies3,825  4,107  4,885  5,232  3,837 
Net losses and operating expenses of repossessed assets1,728  580  1,996  2,581  4,044 
Amortization of intangible assets5,064  5,138  5,191  5,331  1,603 
Mortgage banking costs14,975  11,545  9,906  11,518  11,741 
Other expense6,263  8,212  6,129  6,907  5,741 
Total other operating expense279,292  277,137  287,157  284,643  252,617 
Net income before taxes174,254  175,360  140,215  128,498  152,207 
Federal and state income taxes32,396  37,580  29,950  20,121  34,662 
Net income141,858  137,780  110,265  108,377  117,545 
Net income (loss) attributable to non-controlling interests(373) 217  (347) (79) 289 
Net income attributable to BOK Financial Corporation shareholders$142,231  $137,563  $110,612  $108,456  $117,256 
          
Average shares outstanding:         
Basic70,596,307  70,887,063  71,387,070  71,808,029  64,901,095 
Diluted70,609,924  70,902,033  71,404,388  71,833,334  64,934,351 
Net income per share:         
Basic$2.00  $1.93  $1.54  $1.50  $1.79 
Diluted$2.00  $1.93  $1.54  $1.50  $1.79 


LOANS TREND -- UNAUDITED
BOK FINANCIAL CORPORATION
(In thousands)
  Sept. 30, 2019 June 30, 2019 Mar. 31, 2019 Dec. 31, 2018 Sept. 30, 2018
Commercial:          
Energy $4,114,269  $3,921,353  $3,705,099  $3,590,333  $3,294,867 
Services 3,266,249  3,309,458  3,287,563  3,258,192  2,603,862 
Healthcare 3,032,968  2,926,510  2,915,885  2,799,277  2,437,323 
Wholesale/retail 1,848,617  1,793,118  1,706,900  1,621,158  1,650,729 
Public finance 744,840  795,659  803,083  804,550  418,578 
Manufacturing 698,408  761,357  742,374  730,521  660,582 
Other commercial and industrial 719,274  829,453  801,071  832,047  510,160 
Total commercial 14,424,625  14,336,908  13,961,975  13,636,078  11,576,101 
           
Commercial real estate:          
Multifamily 1,324,839  1,300,372  1,210,358  1,288,065  1,120,166 
Office 1,014,275  1,056,306  1,033,158  1,072,920  824,829 
Retail 799,169  825,399  890,685  919,082  759,423 
Industrial 873,536  828,569  767,757  778,106  696,774 
Residential construction and land development 135,361  141,509  149,686  148,584  101,872 
Other commercial real estate 478,877  557,878  549,007  558,056  301,611 
Total commercial real estate 4,626,057  4,710,033  4,600,651  4,764,813  3,804,675 
           
Residential mortgage:          
Permanent mortgage 1,066,460  1,088,370  1,098,481  1,122,610  1,094,926 
Permanent mortgages guaranteed by U.S. government agencies 191,764  195,373  193,308  190,866  180,718 
Home equity 859,079  887,079  900,831  916,557  696,098 
Total residential mortgage 2,117,303  2,170,822  2,192,620  2,230,033  1,971,742 
           
Personal 1,117,382  1,037,889  1,003,734  1,025,806  996,941 
           
Total $22,285,367  $22,255,652  $21,758,980  $21,656,730  $18,349,459 


LOANS BY PRINCIPAL MARKET AREA -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands)
 Sept. 30, 2019 June 30, 2019 Mar. 31, 2019 Dec. 31, 2018 Sept. 30, 2018
          
Oklahoma:         
Commercial$3,690,100  $3,762,234  $3,551,054  $3,491,117  $3,609,109 
Commercial real estate679,786  717,970  665,190  700,756  651,315 
Residential mortgage1,370,452  1,403,398  1,417,381  1,440,566  1,429,843 
Personal383,246  382,764  374,807  375,543  376,201 
Total Oklahoma6,123,584  6,266,366  6,008,432  6,007,982  6,066,468 
          
Texas:         
Commercial6,220,227  5,877,265  5,754,018  5,438,133  5,115,646 
Commercial real estate1,292,116  1,341,609  1,344,810  1,341,783  1,354,679 
Residential mortgage273,931  272,878  265,927  266,805  253,265 
Personal475,430  400,585  396,794  394,743  381,452 
Total Texas8,261,704  7,892,337  7,761,549  7,441,464  7,105,042 
          
New Mexico:         
Commercial335,409  350,520  342,915  340,489  325,048 
Commercial real estate374,331  385,058  371,416  383,670  392,494 
Residential mortgage81,383  82,390  85,326  87,346  88,110 
Personal10,887  10,236  11,065  10,662  11,659 
Total New Mexico802,010  828,204  810,722  822,167  817,311 
          
Arkansas:         
Commercial87,588  87,896  79,286  111,338  102,237 
Commercial real estate158,538  149,300  142,551  141,898  106,701 
Residential mortgage7,509  7,463  7,731  7,537  7,278 
Personal10,905  11,208  11,550  11,955  12,126 
Total Arkansas264,540  255,867  241,118  272,728  228,342 
          
Colorado:         
Commercial2,247,798  2,325,742  2,231,703  2,275,069  1,132,500 
Commercial real estate975,066  1,023,410  957,348  963,575  354,543 
Residential mortgage224,872  241,780  241,722  251,849  68,694 
Personal78,733  72,537  65,812  72,916  56,999 
Total Colorado3,526,469  3,663,469  3,496,585  3,563,409  1,612,736 
          
Arizona:         
Commercial1,276,534  1,330,415  1,335,140  1,320,139  621,658 
Commercial real estate771,425  761,243  791,466  889,903  666,562 
Residential mortgage92,121  91,684  98,973  97,959  44,659 
Personal78,694  76,335  61,875  68,546  67,280 
Total Arizona2,218,774  2,259,677  2,287,454  2,376,547  1,400,159 
          
Kansas/Missouri:         
Commercial566,969  602,836  667,859  659,793  669,903 
Commercial real estate374,795  331,443  327,870  343,228  278,381 
Residential mortgage67,035  71,229  75,560  77,971  79,893 
Personal79,487  84,224  81,831  91,441  91,224 
Total Kansas/Missouri1,088,286  1,089,732  1,153,120  1,172,433  1,119,401 
          
TOTAL BOK FINANCIAL$22,285,367  $22,255,652  $21,758,980  $21,656,730  $18,349,459 

Loans attributed to a geographical region may not always represent the location of the borrower or the collateral.


DEPOSITS BY PRINCIPAL MARKET AREA -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands)
 Sept. 30, 2019 June 30, 2019 Mar. 31, 2019 Dec. 31, 2018 Sept. 30, 2018
Oklahoma:         
  Demand$3,515,312  $3,279,359  $3,432,239  $3,610,593  $3,564,307 
  Interest-bearing:         
  Transaction7,447,799  7,020,484  6,542,548  6,445,831  6,010,972 
  Savings308,103  307,785  309,875  288,210  288,080 
  Time1,198,170  1,253,804  1,217,371  1,118,643  1,128,810 
  Total interest-bearing8,954,072  8,582,073  8,069,794  7,852,684  7,427,862 
Total Oklahoma12,469,384  11,861,432  11,502,033  11,463,277  10,992,169 
          
Texas:         
  Demand2,870,429  2,974,005  2,966,743  3,291,433  3,357,669 
  Interest-bearing:         
  Transaction2,589,511  2,453,619  2,385,305  2,295,169  2,182,114 
  Savings100,597  103,125  101,849  99,624  97,909 
  Time464,264  425,253  419,269  423,880  453,119 
  Total interest-bearing3,154,372  2,981,997  2,906,423  2,818,673  2,733,142 
Total Texas6,024,801  5,956,002  5,873,166  6,110,106  6,090,811 
          
New Mexico:         
  Demand645,698  630,861  662,362  691,692  722,188 
  Interest-bearing:         
  Transaction539,260  557,881  573,203  571,347  593,760 
  Savings62,863  62,636  61,497  58,194  57,794 
  Time236,135  232,569  228,212  224,515  221,513 
  Total interest-bearing838,258  853,086  862,912  854,056  873,067 
Total New Mexico1,483,956  1,483,947  1,525,274  1,545,748  1,595,255 
          
Arkansas:         
  Demand39,513  29,176  31,624  36,800  36,579 
  Interest-bearing:         
  Transaction149,506  148,485  147,964  91,593  128,001 
  Savings1,747  1,783  1,785  1,632  1,826 
  Time7,877  7,810  8,321  8,726  10,214 
  Total interest-bearing159,130  158,078  158,070  101,951  140,041 
Total Arkansas198,643  187,254  189,694  138,751  176,620 
          
Colorado:         
  Demand1,694,044  1,621,820  1,897,547  1,658,473  593,442 
  Interest-bearing:         
  Transaction1,910,874  1,800,271  1,844,632  1,899,203  622,520 
  Savings60,107  57,263  58,919  57,289  40,308 
  Time273,622  246,198  261,235  274,877  217,628 
  Total interest-bearing2,244,603  2,103,732  2,164,786  2,231,369  880,456 
Total Colorado3,938,647  3,725,552  4,062,333  3,889,842  1,473,898 
          
          
          
Arizona:         
  Demand703,381  700,480  695,238  707,402  365,878 
  Interest-bearing:         
  Transaction599,655  560,429  621,735  575,567  130,105 
  Savings12,487  11,966  12,144  10,545  3,559 
  Time44,347  43,099  44,004  43,051  23,927 
  Total interest-bearing656,489  615,494  677,883  629,163  157,591 
Total Arizona1,359,870  1,315,974  1,373,121  1,336,565  523,469 
          
Kansas/Missouri:         
  Demand376,020  431,856  410,799  418,199  423,560 
  Interest-bearing:         
  Transaction284,940  310,774  361,590  327,866  322,747 
  Savings11,689  13,125  13,815  13,721  13,125 
  Time19,126  19,205  19,977  19,688  20,635 
  Total interest-bearing315,755  343,104  395,382  361,275  356,507 
Total Kansas/Missouri691,775  774,960  806,181  779,474  780,067 
          
TOTAL BOK FINANCIAL$26,167,076  $25,305,121  $25,331,802  $25,263,763  $21,632,289 



NET INTEREST MARGIN TREND -- UNAUDITED
BOK FINANCIAL CORPORATION
 Three Months Ended
 Sept. 30, 2019 June 30, 2019 Mar. 31, 2019 Dec. 31, 2018 Sept. 30, 2018
          
TAX-EQUIVALENT ASSETS YIELDS         
Interest-bearing cash and cash equivalents2.42% 2.57% 2.56% 2.23% 1.98%
Trading securities3.49% 3.59% 3.88% 4.10% 3.98%
Investment securities4.46% 4.41% 4.50% 4.26% 4.06%
Available for sale securities2.60% 2.63% 2.57% 2.51% 2.37%
Fair value option securities2.79% 3.34% 3.62% 3.56% 3.25%
Restricted equity securities6.34% 6.30% 6.42% 6.39% 6.36%
Residential mortgage loans held for sale3.73% 3.65% 4.58% 4.00% 4.27%
Loans5.12% 5.39% 5.26% 5.09% 4.80%
Allowance for loan losses         
Loans, net of allowance5.17% 5.45% 5.31% 5.14% 4.86%
Total tax-equivalent yield on earning assets4.25% 4.51% 4.46% 4.33% 4.04%
          
COST OF INTEREST-BEARING LIABILITIES        
Interest-bearing deposits:         
  Interest-bearing transaction1.08% 1.04% 0.94% 0.79% 0.67%
  Savings0.14% 0.12% 0.12% 0.11% 0.09%
  Time1.94% 1.90% 1.80% 1.54% 1.40%
Total interest-bearing deposits1.17% 1.13% 1.04% 0.87% 0.77%
Funds purchased and repurchase agreements2.01% 2.08% 2.07% 1.36% 1.25%
Other borrowings2.42% 2.67% 2.68% 2.51% 2.20%
Subordinated debt5.48% 5.53% 5.51% 5.38% 5.55%
Total cost of interest-bearing liabilities1.68% 1.70% 1.66% 1.42% 1.25%
Tax-equivalent net interest revenue spread2.57% 2.81% 2.80% 2.91% 2.79%
Effect of noninterest-bearing funding sources and other0.44% 0.49% 0.50% 0.49% 0.42%
Tax-equivalent net interest margin3.01% 3.30% 3.30% 3.40% 3.21%

Yield calculations are shown on a tax equivalent basis at the statutory federal and state rates for the periods presented. The yield calculations exclude security trades that have been recorded on trade date with no corresponding interest income and the unrealized gains and losses. The yield calculation also includes average loan balances for which the accrual of interest has been discontinued and are net of unearned income. Yield/rate calculations are generally based on the conventions that determine how interest income and expense is accrued.

CREDIT QUALITY INDICATORS -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands, except ratios)
 Three Months Ended
 Sept. 30, 2019 June 30, 2019 Mar. 31, 2019 Dec. 31, 2018 Sept. 30, 2018
Nonperforming assets:         
Nonaccruing loans:         
Commercial$111,706  $123,395  $90,358  $99,841  $109,490 
Commercial real estate23,185  21,670  21,508  21,621  1,316 
Residential mortgage37,304  38,477  40,409  41,555  41,917 
Personal271  237  302  230  269 
Total nonaccruing loans172,466  183,779  152,577  163,247  152,992 
Accruing renegotiated loans guaranteed by U.S. government agencies92,718  95,989  91,787  86,428  83,347 
Real estate and other repossessed assets21,026  16,940  17,139  17,487  24,515 
Total nonperforming assets$286,210  $296,708  $261,503  $267,162  $260,854 
Total nonperforming assets excluding those guaranteed by U.S. government agencies$187,160  $193,976  $162,770  $173,602  $169,717 
          
Nonaccruing loans by loan class:         
Commercial:         
Energy$88,894  $71,632  $35,332  $47,494  $54,033 
Services6,119  10,087  9,555  8,567  4,097 
Healthcare5,978  16,148  18,768  16,538  15,704 
Manufacturing8,741  8,613  9,548  8,919  9,202 
Wholesale/retail1,504  1,390  1,425  1,316  9,249 
Public finance         
Other commercial and industrial470  15,525  15,730  17,007  17,205 
Total commercial111,706  123,395  90,358  99,841  109,490 
Commercial real estate:         
Retail20,132  20,057  20,159  20,279  777 
Residential construction and land development350  350  350  350  350 
Multifamily286  275    301   
Office855  855  855     
Industrial909         
Other commercial real estate653  133  144  691  189 
Total commercial real estate23,185  21,670  21,508  21,621  1,316 
Residential mortgage:         
Permanent mortgage20,165  21,803  22,937  23,951  22,855 
Permanent mortgage guaranteed by U.S. government agencies6,332  6,743  6,946  7,132  7,790 
Home equity10,807  9,931  10,526  10,472  11,272 
Total residential mortgage37,304  38,477  40,409  41,555  41,917 
Personal271  237  302  230  269 
Total nonaccruing loans$172,466  $183,779  $152,577  $163,247  $152,992 
          
Performing loans 90 days past due1$1,541  $2,698  $610  $1,338  $518 
          
Gross charge-offs$11,707  $13,227  $11,775  $14,515  $11,073 
Recoveries(1,066) (5,503) (1,689) (2,168) (2,092)
Net charge-offs$10,641  $7,724  $10,086  $12,347  $8,981 
          
Provision for credit losses$12,000  $5,000  $8,000  $9,000  $4,000 
          
Allowance for loan losses to period end loans0.92% 0.91% 0.94% 0.96% 1.15%
Combined allowance for credit losses to period end loans0.92% 0.92% 0.95% 0.97% 1.16%
Nonperforming assets to period end loans and repossessed assets1.28% 1.33% 1.20% 1.23% 1.42%
Net charge-offs (annualized) to average loans0.19% 0.14% 0.19% 0.23% 0.20%
Allowance for loan losses to nonaccruing loans1123.05% 114.40% 141.00% 132.89% 145.02%
Combined allowance for credit losses to nonaccruing loans1123.87% 115.48% 142.25% 134.03% 146.41%

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


SEGMENTS -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands, except ratios)
  Three Months Ended Change
Commercial Banking Sept. 30, 2019 June 30, 2019 Sept. 30, 2018 3Q19 vs 2Q19 3Q19 vs 3Q18
Net interest revenue $180,147  $185,614  $145,147  (2.9)% 24.1%
Fees and commissions revenue 46,159  41,105  39,391  12.3% 17.2%
Other operating expense 68,685  62,947  51,039  9.1% 34.6%
Corporate expense allocations 12,613  11,385  9,124  10.8% 38.2%
Net income 101,573  106,935  84,964  (5.0)% 19.5%
           
Average assets 23,973,067  22,910,071  18,499,979  4.6% 29.6%
Average loans 19,226,347  18,812,800  15,321,600  2.2% 25.5%
Average deposits 10,833,057  10,724,206  8,633,204  1.0% 25.5%
           
Consumer Banking          
Net interest revenue $48,462  $