Net Interest Revenue Growth Drives Earnings
TULSA, Okla.--(BUSINESS WIRE)--
BOK Financial Corporation (NASDAQ: BOKF) reported net income for the
third quarter of 2009 of $50.7 million or $0.75 per diluted share. Net
income for the previous quarter totaled $52.1 million or $0.77 per
diluted share.
Net income for the nine months ended September 30, 2009 totaled $157.8
million or $2.33 per diluted share compared with $117.8 million or $1.74
per diluted share for the nine months ended September 30, 2008. Net
income for the nine months ended September 30, 2008 was impacted by
$67.6 million of pre-tax charges for loan and energy derivative credit
exposure related to a customer bankruptcy filing which reduced net
income by approximately $43.9 million or $0.65 per diluted share.
"BOK Financial is pleased with solid performance this quarter,
especially considering the continued challenges we see in the economy,"
said President and CEO Stan Lybarger. "Earnings for the third quarter
were based on continued net interest revenue growth, solid fee revenue
and controlled operating expenses. The fair value of our securities
portfolio improved by $159 million which further strengthened our
balance sheet and capital position. However, we recognize the banking
industry is far from the end of this depressed credit cycle and we added
$19 million to our reserves for credit losses in response to an increase
in our non-performing assets."
Highlights of the third quarter of 2009 included:
-- Net interest revenue totaled $180.5 million, up $4.9 million compared to
the second quarter of 2009. Net interest margin was 3.63% for the third
quarter of 2009, up 8 basis points over the second quarter of 2009
largely due to higher loan yields and lower funding costs.
-- Fees and commission revenue totaled $120.0 million, down $3.1 million
from the previous quarter. Mortgage banking revenue decreased $6.7
million due to lower volume of loans originated during the quarter.
Brokerage and trading revenue and deposit service charges increased over
the previous quarter.
-- Operating expenses totaled $178.7 million, up $3.0 million over the
second quarter of 2009. Net losses and operating expenses of repossessed
assets and personnel expenses increased over the previous quarter.
-- Combined reserve for credit losses totaled $293 million or 2.52% of
outstanding loans at September 30, 2009, up from $274 million or 2.27%
of outstanding loans at June 30, 2009. Net loans charged off and
provision for credit losses were $36.0 million and $55.1 million,
respectively, for the third quarter of 2009.
-- Non-performing assets totaled $490 million or 4.19% of outstanding loans
and repossessed assets at September 30, 2009 compared to $446 million or
3.67% of outstanding loans and repossessed assets at June 30, 2009.
-- Available for sale securities totaled $8.4 billion, at September 30,
2009, up $1.1 billion since June 30, 2009. The increase consisted of
$1.0 billion of net securities purchased during the quarter and a $159
million net increase in the fair value of securities held in the
portfolio. Purchased securities consisted primarily of mortgage-backed
securities issued by U.S. government agencies.
-- Outstanding loan balances were $11.6 billion at September 30, 2009, down
$458 million since June 30, 2009. All major loan categories decreased
during the third quarter largely due to reduced customer demand, normal
repayment trends and management decisions to exit certain loan types.
-- Average deposit balances totaled $15.1 billion for the third quarter of
2009, down $202 million compared with average deposits for the second
quarter of 2009. Total period-end deposits grew $440 million in the
third quarter of 2009 to $15.1 billion. Growth in demand and
interest-bearing transaction deposits was partially offset by decreases
in higher-costing time deposits.
-- Tangible common equity ratio and tier 1 common equity ratio increased to
7.78% and 10.45%, respectively, at September 30, 2009 from 7.55% and
9.77%, respectively, at June 30, 2009 largely due to lower unrealized
losses on securities. The tangible common equity ratio and tier 1 common
equity ratio are non-GAAP measures of capital strength used by the
Company and investors based on shareholders' equity as defined by
generally accepted accounting principles in the United States of America
("GAAP") minus intangible assets and equity that does not benefit common
shareholders such as preferred equity and equity provided by the U.S.
Treasury's Troubled Asset Relief Program ("TARP") Capital Purchase
Program. We chose not to participate in the TARP Capital Purchase
Program. Tier 1 capital ratios were 10.56% at September 30, 2009 and
9.86% at June 30, 2009.
-- The Company paid a cash dividend of $16.3 million or $0.24 per common
share during the third quarter of 2009. On October 27, 2009, the board
of directors declared a cash dividend of $0.24 per common share payable
on or about December 2, 2009 to shareholders of record as of November
16, 2009.
Net Interest Revenue
Net interest revenue totaled $180.5 million, up $4.9 million over the
second quarter of 2009. Net interest margin was 3.63% for the third
quarter of 2009 and 3.55% for the second quarter of 2009. The increase
in net interest margin over the previous quarter resulted from improved
loan pricing and lower funding costs. Loan yield increased 3 basis
points over the previous quarter as wider spreads continue to be priced
into the loan portfolio. The increased loan yield partially offset a 33
basis point decrease in securities portfolio yield. The cost of
interest-bearing liabilities decreased 22 basis points, including a 26
basis point decrease in the cost of interest-bearing deposits and a 9
basis point decrease in the cost of other borrowed funds.
Average earning assets decreased $237 million during the third quarter
of 2009, primarily due to a decrease of $516 million in average
outstanding loans and a $110 million decrease in average residential
mortgage loans held for sale, partially offset by a $406 million
increase in average securities, primarily mortgage-backed securities
issued by U.S. government agencies.
Average deposits decreased $202 million compared with the second quarter
of 2009, due primarily to a $719 million decrease in average time
deposits. The Company chose not to renew certain higher-costing time
deposits as they matured. The decrease in time deposits was partially
offset by a $308 million increase in average interest-bearing
transaction accounts and a $209 million increase in average demand
deposits. Average funds purchased, repurchase agreements and other
borrowed funds increased $189 million from the second quarter of 2009.
Fees and Commissions Revenue
Fees and commissions revenue totaled $120.0 million for the third
quarter of 2009, down from $123.1 million for the second quarter of
2009. Mortgage banking revenue totaled $13.2 million for the third
quarter of 2009 and $19.9 million for the second quarter of 2009, still
well above historic levels. Mortgage loan originations totaled $536
million for the third quarter of 2009, down from the historic high of
$1.0 billion in the second quarter of 2009 as the impact of government
initiatives to lower national mortgage interest rates began to lessen.
The decrease in mortgage-banking revenue was partially offset by growth
in brokerage and trading revenue and deposit service charges. Brokerage
and trading revenue increased $3.2 million primarily due to investment
banking activity. Deposit service charges increased $2.0 million due to
higher overdraft fees.
Operating Expenses
Operating expenses totaled $178.7 million for the third quarter of 2009,
up $3.0 million from the preceding quarter. Operating expenses increased
$10.8 million due to changes in the fair value of mortgage servicing
rights and decreased $11.8 million due to an FDIC special assessment in
the second quarter of 2009. Excluding the impact of the change in the
fair value of the mortgage servicing rights and the FDIC special
assessment, operating expense increased $3.9 million. Personnel expenses
were up $1.8 million and net losses and operating expenses of
repossessed assets were up $2.5 million. All other operating expenses
were down $433 thousand due to Company-wide initiatives to control
operating expenses.
Credit Quality
Non-performing assets continued to increase across most sectors of the
loan portfolio and geographic markets during the third quarter of 2009.
Non-performing assets totaled $490 million or 4.19% of outstanding loans
and repossessed assets at September 30, 2009 which consisted of
non-accruing loans of $383 million, renegotiated loans of $17 million
(including $11 million of residential mortgage loans guaranteed by U.S.
government agencies) and $90 million of real estate and other
repossessed assets. Total non-performing assets increased $44 million
during the third quarter.
Non-accruing loans totaled $383 million or 3.30% of outstanding loans at
September 30, 2009, compared with $353 million or 2.92% of outstanding
loans at June 30, 2009. Approximately $111 million of non-accruing loans
have been charged-down from original values of $234 million to amounts
management expects to recover. During the third quarter of 2009, $105
million of new non-accruing loans were identified, offset by $28 million
in charge offs, $21 million in foreclosures and $13 million in payments
received. In addition, the Company sold $25 million of the face amount
of its SemGroup bankruptcy claims which reduced non-accruing energy
loans by $13 million.
Non-accruing commercial loans totaled $128 million or 2.01% of total
commercial loans at September 30, 2009. Non-accruing commercial loans
increased $1.8 million since June 30, 2009. Newly identified
non-accruing commercial loans totaled $36 million, primarily in the
energy and services sector of the portfolio.
Non-accruing commercial real estate loans totaled $212 million or 8.30%
of outstanding commercial real estate loans at September 30, 2009. Total
non-accruing commercial real estate loans increased $23 million since
June 30, 2009, including a $16 million increase in loans secured by
land, residential lots and residential construction properties, $4.7
million increase in loans secured by retail facilities and a $3.7
million increase in loans secured by commercial office buildings.
Non-accruing commercial real estate loans attributed to various markets
included $99 million or 38% of commercial real estate loans in Arizona,
$39 million or 16% of commercial real estate loans in Colorado, $31
million or 4% of commercial real estate loans in Oklahoma, $22 million
or 6% of commercial real estate loans in New Mexico and $16 million or
3% of commercial real estate loans in Texas.
Non-accruing residential mortgage loans totaled $38 million or 2.09% of
outstanding residential mortgage loans at September 30, 2009, a $2.4
million increase over June 30, 2009. The distribution of non-accruing
residential mortgage loans among various markets included $14 million or
4% of mortgage loans in Texas, $12 million or 1% of mortgage loans in
Oklahoma and $6 million or 11% of mortgage loans in Arizona. Mortgage
loans past due 30 to 89 days were $32 million compared to $27 million at
June 30, 2009.
The combined reserve for credit losses totaled $293 million or 2.52% of
outstanding loans and 77% of non-accruing loans at September 30, 2009.
The allowance for loan losses was $281 million and the reserve for
off-balance sheet credit losses was $12 million. During the third
quarter of 2009, the Company recognized a $55.1 million provision for
credit losses. Net losses charged against the allowance for loan losses
totaled $36.0 million or 1.21% annualized of average outstanding loans.
Real estate and other repossessed assets totaled $90 million at
September 30, 2009, up $14 million from June 30, 2009. Real estate and
other repossessed assets increased by $21 million in additions offset by
$4 million in sales and $3 million in write-downs based on updated
appraisals. Real estate and other repossessed assets included $50
million of 1-4 family residential properties and residential land
development properties, $22 million of developed commercial real estate
properties, $8 million of undeveloped land, $7 million of equipment, and
$3 million of automobiles. The distribution of real estate owned and
other repossessed assets among various markets included $35 million in
Arizona, $18 million in Texas, $8 million in New Mexico, $8 million in
Colorado, $7 million in Kansas City, $7 million in Oklahoma and $6
million in Arkansas.
The Company also has off-balance sheet obligations related to certain
community development residential mortgage loans sold to U.S. government
agencies with recourse. These mortgage loans were underwritten to
standards approved by the agencies, including full documentation and
originated under programs available only for owner-occupied properties.
The outstanding principal balance of these loans totaled $345 million at
September 30, 2009. These loans are primarily to borrowers in the
Company's primary market areas, including $242 million in Oklahoma, $38
million in Arkansas, $20 million in New Mexico, $17 millionKansas City
and $16 million in Texas. At September 30, 2009, approximately 4.81% of
these loans are non-performing and 6.27% were past due 30 to 89 days. A
separate reserve for credit risk of $11 million is available for losses
on these loans.
Securities and Derivatives
Available for sale securities totaled $8.4 billion at September 30,
2009, up $1.1 billion since June 30, 2009. The increase in the
securities portfolio included $1.0 billion of net securities purchased
and a $159 million increase in the net fair value. The available for
sale portfolio consisted primarily of mortgage-backed securities,
including $6.9 billion fully backed by U.S government agencies and $1.2
billion privately issued by publicly owned financial institutions. The
portfolio does not hold any securities backed by sub-prime mortgage
loans, collateralized debt obligations or collateralized loan
obligations. The Company holds no debt of corporate issuers.
The Company continued a strategy to increase holdings of mortgage-backed
securities during the third quarter. This strategy recognizes attractive
spreads over funding costs on these securities. Credit risk is
controlled by investing in securities fully backed by U.S. government
agencies. Interest rate risk is mitigated by investing in short-duration
securities that would have limited extension exposure from rising
interest rates.
The portfolio of available for sale securities had a net unrealized gain
of $31 million at September 30, 2009, a $159 million improvement from
June 30, 2009. Net unrealized gains on mortgage-backed securities issued
by U.S. government agencies increased by $59 million and net unrealized
losses on privately-issued mortgage backed securities decreased by $82
million.
Approximately $635 million of the privately-issued mortgage-backed
securities were rated below investment grade by at least one
nationally-recognized rating agency. The aggregate unrealized losses on
securities rated below investment grade totaled $137 million at
September 30, 2009. Aggregate losses on these same securities were $182
million at June 30, 2009. The Company recognized a $3.4 million
other-than-temporary impairment charge against earnings in the third
quarter related to certain mortgage-backed securities due to further
declines in the projected cash flows.
Net gains on securities totaled $12.3 million for the third quarter of
2009, compared with $6.5 million for the second quarter of 2009 and $2.1
million for the third quarter of 2008.
Three Months Ended
Sept. 30, June 30,
Sept. 30, 2008
2009 2009
Net gain on available for sale $ 8,706 $ 16,670 $ 917
securities
Gain (loss) on mortgage hedge 3,560 (10,199 ) 1,186
securities
Net gain on securities $ 12,266 $ 6,471 $ 2,103
Gain (loss) on change in fair value of $ (2,981 ) $ 7,865 $ (5,554 )
mortgage servicing rights
The Company recognized $8.7 million of net gains on the sale of $377
million of available for sale securities in the third quarter of 2009
and $16.7 million of gains on the sale of $1.2 billion of available for
sale securities in the second quarter of 2009. This continues a program
to sell low-coupon mortgage-backed securities that were purchased at
deep discounts near the beginning of the current market disruption.
Securities sold are replaced with securities that are expected to have
superior future total returns.
BOK Financial also maintains a portfolio of mortgage-backed securities
issued by U.S. government agencies as an economic hedge against changes
in the fair value of mortgage servicing rights. The fair value of
mortgage servicing rights decreased $3.0 million and the fair value of
mortgage hedge securities increased $3.6 million during the third
quarter of 2009.
The Company has a portfolio of derivative contracts held for customer
risk management programs and internal interest rate risk management
programs. At September 30, 2009, the fair value of all asset contracts
totaled $397 million, net of cash margin held by the Company. The
largest net amount due from a single counterparty, a domestic subsidiary
of a major energy company, at September 30, 2009 was $116 million. This
amount was entirely offset by letters of credit issued by independent
financial institutions.
Loans, Deposits and Capital
Outstanding loans at September 30, 2009 were $11.6 billion, down $458
million from June 30, 2009. Loan balances were lower across most sectors
of the loan portfolio and markets due to reduced customer demand in
response to current economic conditions, normal repayment trends and
management decisions to mitigate credit risk by exiting certain loan
types. Commercial loans decreased $346 million from June 30, 2009,
primarily due to a decrease of $116 million in service sector loans,
$110 million in energy sector loans and $87 million in wholesale/retail
sector loans. Commercial real estate loans decreased $51 million
compared to the prior quarter, primarily due to an $84 million decrease
in construction and land development offset by a $34 million increase in
multifamily sector loans. Residential mortgage loans decreased $4
million from the prior quarter primarily due to a $14 million decrease
in permanent mortgage loans offset by a $10 million increase in home
equity loans. Consumer loans decreased $57 million compared to the prior
quarter primarily due to a $66 million decrease in indirect automobile
loans related to the previously announced decision to curtail that
business during the first quarter of 2009 in favor of a customer-focused
direct approach to consumer lending.
Total deposits increased $440 million during the third quarter and
totaled $15.1 billion at September 30, 2009. Demand and interest-bearing
transaction deposits increased $637 million and $289 million,
respectively, offset by a $487 million decrease in time deposit balances
as the Company decreased higher-cost certificates of deposit. Among the
lines of business, commercial banking deposits increased $519 million
during the third quarter of 2009, offset by decreased consumer banking
deposits of $91 million and decreased wealth management deposits of $48
million.
The Company and each of its subsidiary banks exceeded the regulatory
definition of well capitalized at September 30, 2009. The Company's Tier
1 and total capital ratios were 10.56% and 14.10%, respectively, at
September 30, 2009. The Company's Tier 1 and total capital ratios were
9.86% and 13.34%, respectively, at June 30, 2009. In addition, the
Company's tangible common equity ratio, a non-GAAP measure, was 7.78% at
September 30, 2009 and 7.55% at June 30, 2009. The increase in tangible
common equity ratio was primarily due to retained earnings growth and
reduced net unrealized losses on available for sale securities.
About BOK Financial Corporation
BOK Financial is a regional financial services company that provides
commercial and consumer banking, investment and trust services, mortgage
origination and servicing, and an electronic funds transfer network.
Holdings include Bank of Albuquerque, N.A., Bank of Arizona, N.A., Bank
of Arkansas, N.A., Bank of Oklahoma, N.A., Bank of Texas, N.A., Colorado
State Bank & Trust, N.A., Bank of Kansas City, N.A., BOSC, Inc., Cavanal
Hill Investment Management, Inc., the TransFund electronic funds
network, and Southwest Trust Company, N.A. Shares of BOK Financial are
traded on the NASDAQ under the symbol BOKF. For more information, visit www.bokf.com.
The Company will continue to evaluate critical assumptions and
estimates, such as the adequacy of the allowance for credit losses and
asset impairment as of September 30, 2009 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," 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 involve judgments as to future
events and are inherently forward-looking statements. Assessments that
BOK Financial's acquisitions and other growth endeavors will be
profitable are necessary statements of belief as to the outcome of
future events based in part on information provided by others which BOK
Financial has not independently verified. These statements are not
guarantees of future performance and involve certain risks,
uncertainties, and assumptions which are difficult to predict with
regard to timing, extent, likelihood and degree of occurrence.
Therefore, actual results and outcomes may materially differ from what
is expected, implied or forecasted in such forward-looking statements.
Internal and external factors that might cause such a difference
include, but are not limited to (1) the ability to fully realize
expected cost savings from mergers within the expected time frames, (2)
the ability of other companies on which BOK Financial relies to provide
goods and services in a timely and accurate manner, (3) changes in
interest rates and interest rate relationships, (4) demand for products
and services, (5) the degree of competition by traditional and
nontraditional competitors, (6) changes in banking regulations, tax
laws, prices, levies and assessments, (7) the impact of technological
advances and (8) trends in consumer behavior as well as their ability to
repay loans. BOK Financial and its affiliates undertake no obligation to
update, amend or clarify forward-looking statements, whether as a result
of new information, future events, or otherwise.
BALANCE SHEETS
BOK FINANCIAL CORPORATION
(In thousands)
Period Ended
September 30, June 30, September 30,
2009 2009 2008
(Unaudited) (Unaudited) (Unaudited)
ASSETS
Cash and due from banks $ 1,383,244 $ 470,553 $ 669,914
Trading 100,898 84,548 92,588
securities
Funds sold and resell 39,465 112,128 105,594
agreements
Securities:
Available for 8,358,562 7,224,673 6,279,530
sale
Investment 238,101 269,844 243,617
Mortgage trading 320,971 222,864 198,201
securities
Total 8,917,634 7,717,381 6,721,348
securities
Residential mortgage 172,301 326,363 113,121
loans held for sale
Loans:
Commercial 6,370,056 6,715,851 7,273,802
Commercial 2,560,335 2,611,693 2,713,992
real estate
Residential 1,829,824 1,833,975 1,669,953
mortgage
Consumer 851,349 908,409 1,022,223
Total loans 11,611,564 12,069,928 12,679,970
Less reserve for loan (280,902 ) (263,309 ) (186,516 )
losses
Loans, net of 11,330,662 11,806,619 12,493,454
reserve
Premises and equipment, 286,702 286,295 267,749
net
Accrued revenue 68,617 118,718 118,096
receivable
Intangible 356,152 357,838 363,177
assets, net
Mortgage servicing 66,689 67,413 68,680
rights, net
Real estate and other 89,507 75,243 28,088
repossessed assets
Bankers' 9,882 8,260 23,933
acceptances
Derivative 397,110 462,971 572,391
contracts
Cash surrender value of 244,456 241,792 234,293
bank-owned life insurance
Receivable on unsettled - 237,200 169,494
securities trades
Other assets 413,522 394,997 335,882
TOTAL ASSETS $ 23,876,841 $ 22,768,319 $ 22,377,802
LIABILITIES AND EQUITY
Deposits:
Demand $ 3,462,188 $ 2,825,179 $ 3,005,163
Interest-bearing 7,380,449 7,091,471 6,606,622
transaction
Savings 167,896 166,806 156,847
Time 4,084,813 4,571,933 4,817,551
Total 15,095,346 14,655,389 14,586,183
deposits
Funds purchased and 2,198,900 2,798,274 3,667,225
repurchase agreements
Other 3,189,948 2,152,177 1,077,450
borrowings
Subordinated 398,502 398,465 398,372
debentures
Accrued interest, 123,409 119,003 120,280
taxes, and expense
Bankers' 9,882 8,260 23,933
acceptances
Due on unsettled 133,974 - -
securities trades
Derivative 395,197 445,463 377,973
contracts
Other 127,689 125,126 166,597
liabilities
TOTAL 21,672,847 20,702,157 20,418,013
LIABILITIES
Shareholders'
equity:
Capital, surplus and retained 2,185,776 2,149,020 2,046,752
earnings
Accumulated other (763 ) (98,448 ) (106,249 )
comprehensive loss
TOTAL SHAREHOLDERS' 2,185,013 2,050,572 1,940,503
EQUITY
Non-controlling 18,981 15,590 19,286
interest
TOTAL EQUITY 2,203,994 2,066,162 1,959,789
TOTAL LIABILITIES AND $ 23,876,841 $ 22,768,319 $ 22,377,802
EQUITY
AVERAGE BALANCE SHEETS - UNAUDITED
BOK FINANCIAL CORPORATION
(In thousands)
Quarter Ended
September 30, June 30, March 31, December 31, September 30,
2009 2009 2009 2008 2008
ASSETS
Trading $ 64,763 $ 112,960 $ 111,962 $ 78,840 $ 66,419
securities
Funds sold
and resell 67,032 29,277 50,701 48,246 79,862
agreements
Securities:
Available 7,782,254 7,242,931 6,645,086 6,409,906 5,945,220
for sale
Investment 235,967 271,068 238,562 242,503 239,655
Mortgage
trading 267,591 365,434 453,304 237,319 126,837
securities
Total 8,285,812 7,879,433 7,336,952 6,889,728 6,311,712
securities
Residential
mortgage 176,403 286,077 201,135 121,184 116,533
loans held
for sale
Loans:
Commercial 6,521,438 6,901,057 7,182,481 7,452,799 7,228,814
Commercial 2,621,176 2,684,020 2,762,789 2,716,465 2,696,503
real estate
Residential 1,873,457 1,884,023 1,841,006 1,641,023 1,655,710
mortgage
Consumer 871,347 933,950 998,489 1,016,409 1,015,796
Total loans 11,887,418 12,403,050 12,784,765 12,826,696 12,596,823
Less
allowance for (281,289 ) (273,335 ) (252,734 ) (209,319 ) (182,844 )
loan losses
Total loans, 11,606,129 12,129,715 12,532,031 12,617,377 12,413,979
net
Total
earning 20,200,139 20,437,462 20,232,781 19,755,374 18,988,504
assets
Cash and due 828,965 638,791 661,433 534,039 499,992
from banks
Cash surrender
value of 242,715 240,199 237,805 235,195 232,465
bank-owned
life insurance
Derivative 401,887 493,448 476,091 352,083 900,777
contracts
Other assets 1,376,828 1,264,131 1,335,259 1,394,960 1,199,425
TOTAL ASSETS $ 23,050,534 $ 23,074,031 $ 22,943,369 $ 22,271,651 $ 21,821,163
LIABILITIES
AND EQUITY
Deposits:
Demand $ 3,392,578 $ 3,183,338 $ 2,864,751 $ 2,712,384 $ 2,739,209
Interest-bearing 7,162,477 6,854,003 6,610,805 6,116,465 6,565,935
transaction
Savings 167,677 167,813 159,537 155,784 159,856
Time 4,404,854 5,123,947 5,215,091 5,109,303 4,792,366
Total 15,127,586 15,329,101 14,850,184 14,093,936 14,257,366
deposits
Funds
purchased
and 2,284,985 2,316,990 2,562,066 3,095,054 3,061,186
repurchase
agreements
Other 2,173,103 1,951,699 2,158,963 1,986,857 1,390,233
borrowings
Subordinated 398,484 398,456 398,425 398,392 398,361
debentures
Derivative 392,277 536,232 641,974 494,778 509,057
contracts
Other 539,129 534,889 416,242 293,752 258,775
liabilities
TOTAL 20,915,564 21,067,367 21,027,854 20,362,769 19,874,978
LIABILITIES
Total equity 2,134,970 2,006,664 1,915,515 1,908,882 1,946,185
TOTAL
LIABILITIES $ 23,050,534 $ 23,074,031 $ 22,943,369 $ 22,271,651 $ 21,821,163
AND EQUITY
STATEMENTS OF EARNINGS - UNAUDITED
BOK FINANCIAL CORPORATION
(In thousands, except per share data)
Quarter Ended Nine Months Ended
September 30, September 30,
2009 2008 2009 2008
Interest $ 226,246 $ 263,358 $ 690,158 $ 799,485
revenue
Interest 45,785 99,010 164,272 329,070
expense
Net interest 180,461 164,348 525,886 470,415
revenue
Provision for 55,120 52,711 147,280 129,592
credit losses
Net interest
revenue after 125,341 111,637 378,606 340,823
provision for
credit losses
Other
operating
revenue
Brokerage and
trading 24,944 30,846 71,437 19,297
revenue
Transaction 26,264 25,632 79,225 74,976
card revenue
Trust fees and 16,315 20,100 49,685 61,836
commissions
Deposit
service 30,464 30,404 86,290 88,289
charges and
fees
Mortgage
banking 13,197 7,145 51,577 23,382
revenue
Bank-owned 2,634 2,829 7,369 7,999
life insurance
Margin asset 51 1,934 186 8,361
fees
Other revenue 6,087 7,768 18,794 20,124
Total fees and 119,956 126,658 364,563 304,264
commissions
Gain (loss) on 3,223 (841 ) 4,339 (1,986 )
other assets
Gain (loss) on
derivatives, (294 ) 4,366 (2,995 ) 3,518
net
Gain (loss) on
securities, 12,266 2,103 38,845 6,787
net
Total
other-than-temporary (6,133 ) - (61,764 ) (5,306 )
impairment losses
Portion of loss
recognized in other (2,752 ) - (41,839 ) -
comprehensive income
Net impairment
losses recognized in (3,381 ) - (19,925 ) (5,306 )
earnings
Total other
operating 131,770 132,286 384,827 307,277
revenue
Other
operating
expense
Personnel 98,012 87,549 286,830 265,252
Business 4,827 5,837 13,824 16,253
promotion
Professional
fees and 7,555 6,501 21,430 19,122
services
Net occupancy 15,884 15,570 48,115 45,731
and equipment
Insurance 6,092 2,436 17,628 8,772
FDIC special - - 11,773 -
assessment
Data
processing and 20,413 19,911 60,171 58,327
communications
Printing,
postage and 3,716 4,035 12,359 12,610
supplies
Net (gains) losses
and operating 3,497 (136 ) 6,299 13
expenses of
repossessed assets
Amortization
of intangible 1,686 1,884 5,058 5,694
assets
Mortgage 8,065 5,811 24,868 17,546
banking costs
Change in fair value
of mortgage 2,981 5,554 (6,839 ) 8,083
servicing rights
Visa retrospective
responsibility - 1,700 - (1,067 )
obligation
Other expense 6,004 7,638 18,780 20,626
Total other
operating 178,732 164,290 520,296 476,962
expense
Net income 78,379 79,633 243,137 171,138
before taxes
Federal and
state income 24,772 22,958 81,925 54,546
taxes
Net income before
non-controlling 53,607 56,675 161,212 116,592
interest
Net income (loss)
attributable to 2,947 (10 ) 3,405 (1,197 )
non-controlling
interest
Net income
attributable to BOK $ 50,660 $ 56,685 $ 157,807 $ 117,789
Financial
Corporation
Average shares
outstanding:
Basic 67,392,059 67,263,317 67,351,436 67,305,916
Diluted 67,513,700 67,432,444 67,450,172 67,463,012
Net income per
share:
Basic $ 0.75 $ 0.84 $ 2.33 $ 1.75
Diluted $ 0.75 $ 0.84 $ 2.33 $ 1.74
FINANCIAL HIGHLIGHTS - UNAUDITED
BOK FINANCIAL CORPORATION
(In thousands, except ratio and share data)
Quarter Ended
September 30, June 30, March 31, December 31, September 30,
2009 2009 2009 2008 2008
Capital:
Period-end
shareholders' $ 2,185,013 $ 2,050,572 $ 1,931,300 $ 1,846,257 $ 1,940,503
equity
Risk
weighted $ 17,515,147 $ 18,338,540 $ 18,355,862 $ 18,401,051 $ 18,347,504
assets
Risk-based
capital ratios:
Tier 1 10.56 % 9.86 % 9.66 % 9.40 % 9.31 %
Total 14.10 % 13.34 % 13.08 % 12.81 % 12.62 %
capital
Leverage 8.16 % 7.97 % 7.85 % 7.89 % 7.94 %
ratio
Tangible common
equity ratio 7.78 % 7.55 % 6.84 % 6.64 % 7.16 %
(A)
Tier 1 common
equity ratio 10.45 % 9.77 % 9.58 % 9.32 % 9.20 %
(B)
Common
stock:
Book value $ 32.27 $ 30.30 $ 28.57 $ 27.36 $ 28.78
per share
Market value
per share:
High $ 48.10 $ 43.02 $ 40.71 $ 54.42 $ 53.94
Low $ 34.81 $ 34.46 $ 22.95 $ 38.40 $ 38.61
Cash
dividends $ 16,280 $ 16,184 $ 15,027 $ 15,358 $ 15,170
paid
Dividend 32.14 % 31.05 % 27.31 % 43.33 % 26.76 %
payout ratio
Shares
outstanding, 67,707,547 67,674,442 67,589,045 67,473,086 67,433,837
net
Stock buy-back
program:
Shares - - - - 75,000
repurchased
Amount $ - $ - $ - $ - $ 3,337,000
Average price $ - $ - $ - $ - $ 44.49
per share
Performance
ratios (quarter
annualized):
Return on 0.87 % 0.91 % 0.97 % 0.63 % 1.03 %
average assets
Return on 9.41 % 10.42 % 11.65 % 7.39 % 11.59 %
average equity
Net interest 3.63 % 3.55 % 3.47 % 3.57 % 3.48 %
margin
Efficiency 58.09 % 61.02 % 57.10 % 54.94 % 54.19 %
ratio
Other data:
Gain (loss) on
economic hedge $ 3,560 $ (10,199 ) $ (2,118 ) $ 15,089 $ 1,186
of mortgage
servicing rights
Trust assets $ 29,945,585 $ 29,288,041 $ 28,700,791 $ 30,454,512 $ 33,242,296
Mortgage
servicing $ 6,339,764 $ 6,082,501 $ 5,515,893 $ 5,256,159 $ 5,167,584
portfolio
Mortgage loan
fundings during $ 536,173 $ 1,023,272 $ 708,561 $ 214,521 $ 258,171
the quarter
Mortgage loan
refinances to 49.00 % 71.00 % 73.51 % 34.84 % 25.14 %
total fundings
Tax equivalent $ 1,982 $ 1,791 $ 2,105 $ 2,063 $ 1,927
adjustment
Unrealized gain
(loss) on $ 30,898 $ (128,492 ) $ (261,856 ) $ (330,973 ) $ (158,652 )
available for
sale securities
(A) Tangible
common equity
ratio is a
non-GAAP measure.
Reconciliation to
a GAAP financial
measure follows:
Total
shareholders' $ 2,185,013 $ 2,050,572 $ 1,931,300 $ 1,846,257 $ 1,940,503
equity
Less:
intangible (356,152 ) (357,838 ) (359,523 ) (361,209 ) (363,177 )
assets, net
Tangible common $ 1,828,861 $ 1,692,734 $ 1,571,777 $ 1,485,048 $ 1,577,326
equity
Total assets $ 23,876,841 $ 22,768,319 $ 23,333,442 $ 22,734,648 $ 22,377,802
Less:
intangible (356,152 ) (357,838 ) (359,523 ) (361,209 ) (363,177 )
assets, net
$ 23,520,689 $ 22,410,481 $ 22,973,919 $ 22,373,439 $ 22,014,625
Tangible common 7.78 % 7.55 % 6.84 % 6.64 % 7.16 %
equity ratio
(B) Tier 1 common
equity ratio is a
non-GAAP measure.
Reconciliation to
a GAAP financial
measure follows:
Tier 1 $ 1,849,254 $ 1,807,705 $ 1,773,576 $ 1,728,926 $ 1,707,390
capital
Less:
non-controlling (18,981 ) (15,590 ) (14,751 ) (13,855 ) (19,286 )
interest
Tier 1 common $ 1,830,273 $ 1,792,115 $ 1,758,825 $ 1,715,071 $ 1,688,104
equity
Risk weighted $ 17,515,147 $ 18,338,540 $ 18,355,862 $ 18,401,051 $ 18,347,504
assets
Tier 1 common 10.45 % 9.77 % 9.58 % 9.32 % 9.20 %
equity ratio
QUARTERLY EARNINGS TRENDS - UNAUDITED
BOK FINANCIAL CORPORATION
(In thousands, except ratio and per share data)
Quarter Ended
September 30, June 30, March 31, December 31, September 30,
2009 2009 2009 2008 2008
Interest $ 226,246 $ 230,685 $ 233,227 $ 262,160 $ 263,358
revenue
Interest 45,785 55,105 63,382 85,713 99,010
expense
Net
interest 180,461 175,580 169,845 176,447 164,348
revenue
Provision for 55,120 47,120 45,040 73,001 52,711
credit losses
Net interest
revenue after 125,341 128,460 124,805 103,446 111,637
provision for
credit losses
Other
operating
revenue
Brokerage and
trading 24,944 21,794 24,699 23,507 30,846
revenue
Transaction 26,264 27,533 25,428 25,177 25,632
card revenue
Trust fees and 16,315 16,860 16,510 17,143 20,100
commissions
Deposit
service 30,464 28,421 27,405 29,239 30,404
charges and
fees
Mortgage
banking 13,197 19,882 18,498 7,217 7,145
revenue
Bank-owned 2,634 2,418 2,317 2,682 2,829
life insurance
Margin
asset 51 68 67 187 1,934
fees
Other 6,087 6,124 6,583 5,778 7,768
revenue
Total fees and 119,956 123,100 121,507 110,930 126,658
commissions
Gain (loss) on 3,223 973 143 (7,420 ) (841 )
other assets
Gain (loss) on
derivatives, (294 ) (1,037 ) (1,664 ) (2,219 ) 4,366
net
Gain (loss) on
securities, 12,266 6,471 20,108 20,156 2,103
net
Total
other-than-temporar(6,133 ) (1,263 ) (54,368 ) - -
impairment
losses
Portion of loss
recognized in
other (2,752 ) 279 (39,366 ) - -
comprehensive
income
Net impairment
losses (3,381 ) (1,542 ) (15,002 ) - -
recognized in
earnings
Total other
operating 131,770 127,965 125,092 121,447 132,286
revenue
Other
operating
expense
Personnel 98,012 96,191 92,627 87,695 87,549
Business 4,827 4,569 4,428 7,283 5,837
promotion
Professional
fees and 7,555 7,363 6,512 7,923 6,501
services
Net occupancy 15,884 15,973 16,258 14,901 15,570
and equipment
Insurance 6,092 5,898 5,638 3,216 2,436
FDIC special - 11,773 - - -
assessment
Data
processing and 20,413 20,452 19,306 19,720 19,911
communications
Printing,
postage and 3,716 4,072 4,571 3,823 4,035
supplies
Net (gains)
losses and
operating 3,497 996 1,806 1,006 (136 )
expenses of
repossessed
assets
Amortization
of intangible 1,686 1,686 1,686 1,967 1,884
assets
Mortgage 8,065 9,336 7,467 4,967 5,811
banking costs
Change in fair
value of
mortgage 2,981 (7,865 ) (1,955 ) 26,432 5,554
servicing
rights
Visa
retrospective - - - (1,700 ) 1,700
responsibility
obligation
Other 6,004 5,326 7,450 8,209 7,638
expense
Total other
operating 178,732 175,770 165,794 185,442 164,290
expense
Net income 78,379 80,655 84,103 39,451 79,633
before taxes
Federal and
state income 24,772 28,315 28,838 10,363 22,958
taxes
Net income
before 53,607 52,340 55,265 29,088 56,675
non-controlling
interest
Net income
(loss)
attributable to 2,947 225 233 (6,355 ) (10 )
non-controlling
interest
Net income
attributable to $ 50,660 $ 52,115 $ 55,032 $ 35,443 $ 56,685
BOK Financial
Corporation
Average shares
outstanding:
Basic 67,392,059 67,344,577 67,315,986 67,294,069 67,263,317
Diluted 67,513,700 67,448,029 67,387,102 67,456,267 67,432,444
Net income per
share:
Basic $ 0.75 $ 0.77 $ 0.81 $ 0.53 $ 0.84
Diluted $ 0.75 $ 0.77 $ 0.81 $ 0.52 $ 0.84
LOANS BY PRINCIPAL MARKET AREA - UNAUDITED
BOK FINANCIAL CORPORATION
(In thousands)
Quarter Ended
September 30, June 30, March 31, December 31, September
30,
2009 2009 2009 2008 2008
Oklahoma:
Commercial $ 2,738,217 $ 2,918,478 $ 3,119,362 $ 3,356,520 $ 3,368,823
Commercial 815,362 855,742 881,620 843,576 827,357
real estate
Residential 1,245,917 1,249,104 1,234,417 1,196,924 1,134,066
mortgage
Consumer 483,369 521,431 562,021 579,809 580,211
Total 5,282,865 5,544,755 5,797,420 5,976,829 5,910,457
Oklahoma
Texas:
Commercial 2,075,379 2,182,756 2,277,186 2,353,860 2,205,169
Commercial 734,742 741,199 816,830 825,769 853,653
real estate
Residential 335,797 345,780 337,044 315,438 307,655
mortgage
Consumer 188,374 196,752 214,134 212,820 214,133
Total Texas 3,334,292 3,466,487 3,645,194 3,707,887 3,580,610
New Mexico:
Commercial 344,910 380,378 393,180 418,732 442,644
Commercial 344,988 313,190 315,511 286,574 281,061
real estate
Residential 88,271 90,944 99,805 98,018 95,165
mortgage
Consumer 18,176 18,826 19,900 18,616 18,296
Total New 796,345 803,338 828,396 821,940 837,166
Mexico
Arkansas:
Commercial 99,559 97,676 99,955 103,446 104,630
Commercial 128,984 133,026 133,227 134,015 127,925
real estate
Residential 19,128 19,015 17,145 16,875 16,941
mortgage
Consumer 136,461 152,620 168,971 175,647 183,543
Total 384,132 402,337 419,298 429,983 433,039
Arkansas
Colorado:
Commercial 569,549 595,858 675,223 660,546 598,519
Commercial 249,879 269,923 267,035 261,820 266,739
real estate
Residential 68,667 58,557 59,120 53,875 49,676
mortgage
Consumer 18,272 14,097 14,599 16,141 18,328
Total 906,367 938,435 1,015,977 992,382 933,262
Colorado
Arizona:
Commercial 219,330 215,540 211,953 211,356 213,861
Commercial 257,169 262,607 285,841 319,525 326,615
real estate
Residential 57,304 58,265 61,605 62,123 58,800
mortgage
Consumer 4,826 3,229 5,261 6,075 5,551
Total 538,629 539,641 564,660 599,079 604,827
Arizona
Kansas:
Commercial 323,112 325,165 324,671 307,143 340,156
Commercial 29,211 36,006 32,017 29,969 30,642
real estate
Residential 14,740 12,310 10,814 9,321 7,650
mortgage
Consumer 1,871 1,454 1,469 1,473 2,161
Total 368,934 374,935 368,971 347,906 380,609
Kansas
TOTAL BOK $ 11,611,564 $ 12,069,928 $ 12,639,916 $ 12,876,006 $ 12,679,970
FINANCIAL
DEPOSITS BY PRINCIPAL MARKET AREA - UNAUDITED
BOK FINANCIAL CORPORATION
(In thousands)
Quarter Ended
September 30, June 30, March 31, December 31, September
30,
2009 2009 2009 2008 2008
Oklahoma:
Demand $ 1,895,980 $ 1,451,057 $ 1,651,111 $ 1,683,374 $ 1,681,325
Interest-bearing:
Transaction 4,566,058 4,374,089 4,089,838 4,117,729 4,151,430
Savings 93,443 94,048 95,827 86,476 86,900
Time 1,765,980 2,033,312 2,876,313 3,104,933 3,036,297
Total 6,425,481 6,501,449 7,061,978 7,309,138 7,274,627
interest-bearing
Total Oklahoma 8,321,461 7,952,506 8,713,089 8,992,512 8,955,952
Texas:
Demand 1,138,794 1,002,266 1,021,424 1,067,456 956,846
Interest-bearing:
Transaction 1,716,460 1,660,642 1,527,399 1,460,576 1,543,974
Savings 35,724 33,992 33,867 32,071 32,400
Time 1,007,579 1,035,919 1,054,632 857,416 794,911
Total 2,759,763 2,730,553 2,615,898 2,350,063 2,371,285
interest-bearing
Total Texas 3,898,557 3,732,819 3,637,322 3,417,519 3,328,131
New Mexico:
Demand 216,330 175,033 180,308 155,345 176,477
Interest-bearing:
Transaction 424,528 434,498 401,000 397,382 376,941
Savings 18,039 18,255 17,858 16,289 16,316
Time 511,507 542,388 561,300 522,894 475,560
Total 954,074 995,141 980,158 936,565 868,817
interest-bearing
Total New Mexico 1,170,404 1,170,174 1,160,466 1,091,910 1,045,294
Arkansas:
Demand 19,077 17,261 16,503 16,293 23,565
Interest-bearing:
Transaction 85,061 73,972 63,924 38,566 19,146
Savings 1,131 1,031 1,100 1,083 865
Time 137,109 162,505 150,015 75,579 47,684
Total 223,301 237,508 215,039 115,228 67,695
interest-bearing
Total Arkansas 242,378 254,769 231,542 131,521 91,260
Colorado:
Demand 121,555 113,895 111,048 116,637 115,677
Interest-bearing:
Transaction 477,418 445,521 466,276 480,113 440,888
Savings 18,518 18,144 18,905 17,660 19,300
Time 520,906 579,709 584,971 532,475 428,872
Total 1,016,842 1,043,374 1,070,152 1,030,248 889,060
interest-bearing
Total Colorado 1,138,397 1,157,269 1,181,200 1,146,885 1,004,737
Arizona:
Demand 54,046 55,975 54,362 39,424 45,725
Interest-bearing:
Transaction 95,242 89,842 66,809 56,985 64,463
Savings 971 1,282 970 1,014 1,033
Time 56,809 59,775 54,923 34,290 14,433
Total 153,022 150,899 122,702 92,289 79,929
interest-bearing
Total Arizona 207,068 206,874 177,064 131,713 125,654
Kansas /
Missouri:
Demand 16,406 9,692 16,140 3,850 5,548
Interest-bearing:
Transaction 15,682 12,907 11,976 10,999 9,780
Savings 70 54 117 42 33
Time 84,923 158,325 141,505 55,656 19,794
Total 100,675 171,286 153,598 66,697 29,607
interest-bearing
Total Kansas / 117,081 180,978 169,738 70,547 35,155
Missouri
TOTAL BOK $ 15,095,346 $ 14,655,389 $ 15,270,421 $ 14,982,607 $ 14,586,183
FINANCIAL
NET INTEREST MARGIN TREND - UNAUDITED
BOK FINANCIAL CORPORATION
Quarter Ended
September 30, June March December 31, September
30, 31, 30,
2009 2009 2009 2008 2008
TAX-EQUIVALENT ASSETS
YIELDS
Trading 4.72% 3.49% 3.69% 6.55% 5.61%
securities
Funds sold and resell 0.11% 0.19% 0.24% 0.76% 1.44%
agreements
Securities:
Taxable 4.18% 4.50% 4.90% 5.12% 5.09%
Tax-exempt 5.03% 5.69% 6.64% 6.43% 6.64%
Total securities 4.21% 4.54% 4.96% 5.17% 5.15%
Total loans 4.67% 4.64% 4.56% 5.27% 5.69%
Less Allowance for loan - - - - -
losses
Total loans, net 4.78% 4.74% 4.65% 5.35% 5.77%
Total tax-equivalent 4.54% 4.65% 4.75% 5.28% 5.55%
yield on earning assets
COST OF INTEREST-BEARING
LIABILITIES
Interest-bearing
deposits:
Interest-bearing 0.65% 0.78% 0.95% 1.51% 1.72%
transaction
Savings 0.48% 0.25% 0.28% 0.37% 0.37%
Time 2.20% 2.48% 2.83% 3.28% 3.39%
Total interest-bearing 1.23% 1.49% 1.76% 2.29% 2.39%
deposits
Funds purchased and 0.32% 0.35% 0.45% 0.94% 1.98%
repurchase agreements
Other borrowings 0.38% 0.49% 0.58% 1.51% 2.56%
Subordinated 5.53% 5.67% 5.67% 5.48% 5.55%
debt
Total cost of
interest-bearing 1.09% 1.31% 1.50% 2.02% 2.41%
liabilities
Tax-equivalent net 3.45% 3.34% 3.25% 3.26% 3.14%
interest revenue spread
Effect of
noninterest-bearing 0.18% 0.21% 0.22% 0.31% 0.34%
funding sources and
other
Tax-equivalent net 3.63% 3.55% 3.47% 3.57% 3.48%
interest margin
CREDIT QUALITY INDICATORS
BOK FINANCIAL CORPORATION
(In thousands, except ratios)
Quarter Ended
September June 30, March 31, December 31, September
30, 30,
2009 2009 2009 2008 2008
Nonperforming
assets:
Nonaccruing
loans (B):
Commercial $ 128,266 $ 126,510 $ 128,501 $ 134,846 $ 105,757
Commercial 212,418 189,586 175,487 137,279 78,235
real estate
Residential 38,220 35,860 34,182 27,387 27,075
mortgage
Consumer 3,897 1,037 1,065 561 758
Total
nonaccruing $ 382,801 $ 352,993 $ 339,235 $ 300,073 $ 211,825
loans
Renegotiated 17,426 17,479 13,623 13,039 12,326
loans (A)
Real estate
and other 89,507 75,243 61,383 29,179 28,088
repossessed
assets
Total
nonperforming $ 489,734 $ 445,715 $ 414,241 $ 342,291 $ 252,239
assets
Nonaccruing
loans by
principal
market (B):
Oklahoma $ 112,610 $ 108,490 $ 105,536 $ 108,367 $ 87,885
Texas 65,911 51,582 55,225 42,934 29,141
New Mexico 35,541 29,640 18,046 16,016 12,293
Arkansas 5,911 3,888 4,078 3,263 3,386
Colorado 50,432 45,794 38,567 32,415 20,980
Arizona 108,161 106,076 111,772 80,994 54,832
Kansas 4,235 7,523 6,011 16,084 3,308
Total
nonaccruing $ 382,801 $ 352,993 $ 339,235 $ 300,073 $ 211,825
loans
- - - - -
Nonaccruing
loans by loan
portfolio
sector (B):
Commercial:
Energy $ 48,992 $ 53,842 $ 49,618 $ 49,364 $ 49,839
Manufacturing 17,429 16,975 18,248 7,343 6,479
Wholesale / 7,623 10,983 8,650 18,773 7,806
retail
Agriculture 98 105 115 680 755
Services 30,094 24,713 30,226 36,873 26,581
Healthcare 13,758 14,222 14,288 12,118 3,300
Other 10,272 5,670 7,356 9,695 10,997
Total 128,266 126,510 128,501 134,846 105,757
commercial
Commercial
real estate:
Land
development 113,868 97,425 99,922 76,082 53,624
and
construction
Retail 22,254 17,474 9,893 15,625 13,011
Office 31,406 27,685 23,305 7,637 3,022
Multifamily 28,223 27,827 27,198 24,950 896
Industrial 527 527 575 6,287 390
Other
commercial 16,140 18,648 14,594 6,698 7,292
real estate
Total
commercial 212,418 189,586 175,487 137,279 78,235
real estate
Residential
mortgage:
Permanent 36,431 34,149 32,848 26,233 26,401
mortgage
Home equity 1,789 1,711 1,334 1,154 674
Total
residential 38,220 35,860 34,182 27,387 27,075
mortgage
Consumer 3,897 1,037 1,065 561 758
Total
nonaccruing $ 382,801 $ 352,993 $ 339,235 $ 300,073 $ 211,825
loans
- - - - -
Performing
loans 90 days $ 24,238 $ 32,479 $ 46,123 $ 19,123 $ 20,213
past due
Gross $ 38,581 $ 37,409 $ 34,535 $ 35,681 $ 33,926
charge-offs
Recoveries 2,594 2,472 2,664 2,022 13,712
Net $ 35,987 $ 34,937 $ 31,871 $ 33,659 $ 20,214
charge-offs
Provision for $ 55,120 $ 47,120 $ 45,040 $ 73,001 $ 52,711
credit losses
Reserve for
loan losses to 2.42 % 2.18 % 1.99 % 1.81 % 1.47 %
period end
loans
Combined
reserves for
credit losses 2.52 % 2.27 % 2.07 % 1.93 % 1.65 %
to period end
loans
Nonperforming
assets to
period end
loans
and
repossessed 4.19 % 3.67 % 3.26 % 2.65 % 1.98 %
assets
Net
charge-offs
(annualized) 1.21 % 1.13 % 1.00 % 1.05 % 0.64 %
to average
loans
Reserve for
loan losses to 73.38 % 74.59 % 73.99 % 77.73 % 88.05 %
nonaccruing
loans
Combined
reserves for
credit losses 76.51 % 77.55 % 77.11 % 82.78 % 98.69 %
to nonaccruing
loans
(A) includes $ 11,234 $ 11,079 $ 10,514 $ 10,396 $ 9,604
residential
mortgage loans
guaranteed by
agencies of
the U.S.
government.
These loans
have been
modified to
extend payment
terms and/or
reduce
interest rates
to current
market.
(B) includes
loans subject
to First $ 4,173 $ 8,305 $ 11,287 $ 13,181 $ 13,262
United Bank
sellers escrow
Source: BOK Financial Corporation
Contact: BOK Financial Corporation
Steven Nell, 918-588-6000
Chief Financial Officer
or
Jesse Boudiette, 918-588-6532
Corporate Communications Manager