TULSA, Okla., July 26, 2017 (GLOBE NEWSWIRE) -- BOK Financial Corporation (Nasdaq:BOKF) reported net income of $88.1 million or $1.35 per diluted share for the second quarter of 2017. Net income was $88.4 million or $1.35 per diluted share for the first quarter of 2017 and $65.8 million or $1.00 per diluted share for the second quarter of 2016.
Steven G. Bradshaw, president and chief executive officer of BOK Financial, stated, “It was another very strong quarter for BOK Financial, with net income up 34 percent compared to the second quarter of 2016 and 63 percent compared to the first half of 2016. Profit growth was driven by higher net interest margin and net interest income combined with continued careful expense management, as total expenses are essentially flat compared to last year. At the same time, credit quality remains sound, resulting in us recording no provision for credit losses for the third consecutive quarter.”
Bradshaw continued, “I want to commend all of our employees for their dedication to the company, as evidenced by BOK Financial being named one of the most respected banks in America in an annual survey by Reputation Institute and American Banker magazine. The survey ranks BOK Financial highest in the areas that are very important to us, including corporate citizenship, governance, workplace, ethical behavior and fairness in the way we conduct business. This validates that we have a strong and effective culture and that our employees show pride in our company and their work.”
Second Quarter 2017 Highlights
- Net interest revenue totaled $205.2 million for the second quarter of 2017, up $4.0 million over the first quarter of 2017. Net interest margin increased to 2.89 percent for the second quarter of 2017 from 2.81 percent for the first quarter of 2017. Average earning assets decreased $359 million compared to the first quarter of 2017.
- Fees and commissions revenue totaled $177.5 million for the second quarter of 2017, a $13.1 million increase over the prior quarter. Mortgage banking revenue was up $5.1 million. Fiduciary and asset management revenue grew by $3.2 million and transaction card revenue increased $3.2 million.
- Operating expense was $250.9 million for the second quarter of 2017, an increase of $6.2 million over the prior quarter. Personnel expense was up $7.3 million over the prior quarter, primarily due to certain performance-based equity awards. Non-personnel expense decreased $1.1 million. Deposit insurance expense decreased primarily due to $5.1 million in credits received during the second quarter of 2017 related to revision of certain inputs to the assessment calculation filed in previous periods. Combined, all other non-personnel expense increased $4.0 million.
- Income tax expense was $47.7 million or 34.9 percent of net income before taxes for the second quarter of 2017, compared to $38.1 million or 30.1 percent in the first quarter of 2017. The effective tax rate was 33.7 percent for the second quarter of 2017 and 33.2 percent for the first quarter of 2017, excluding a change in accounting for the tax effect of equity compensation. Tax expense may fluctuate based on the time period when equity awards vest as a result of this change.
- No provision for credit losses was recorded in the second quarter of 2017 or the first quarter of 2017. The company had net charge-offs of $1.7 million in the second quarter of 2017, compared to a net recovery of $747 thousand in the previous quarter.
- The combined allowance for credit losses totaled $256 million or 1.49 percent of outstanding loans at June 30, 2017 compared to $258 million or 1.52 percent of outstanding loans at March 31, 2017.
- Nonperforming assets that are not guaranteed by U.S. government agencies totaled $276 million or 1.62 percent of outstanding loans and repossessed assets at June 30, 2017 and $240 million or 1.43 percent of outstanding loans and repossessed assets at March 31, 2017. The increase in nonperforming assets was primarily due to nonaccruing healthcare and energy loans.
- Average loans were largely unchanged compared to the previous quarter. Period-end outstanding loan balances totaled $17.2 billion at June 30, 2017, an increase of $192 million over March 31, 2017.
- Average deposits decreased $277 million compared to the previous quarter. Average demand deposit balances grew by $237 million, offset by a $480 million decrease in average interest-bearing transaction deposits and a $55 million decrease in time deposit balances. Period-end deposits were $22.3 billion at June 30, 2017, a $259 million decrease compared to March 31, 2017.
- The common equity Tier 1 capital ratio at June 30, 2017 was 11.76 percent. Other regulatory capital ratios were Tier 1 capital ratio, 11.76 percent, total capital ratio, 13.37 percent and leverage ratio, 9.26 percent. At March 31, 2017, the common equity Tier 1 capital ratio was 11.59 percent, the Tier 1 capital ratio was 11.59 percent, total capital ratio was 13.25 percent, and leverage ratio was 8.89 percent.
- The company paid a regular quarterly cash dividend of $29 million or $0.44 per common share during the second quarter of 2017. On July 25, 2017, the board of directors approved a quarterly cash dividend of $0.44 per common share payable on or about August 25, 2017 to shareholders of record as of August 11, 2017.
Net Interest Revenue
Net interest revenue was $205.2 million for the second quarter of 2017, up $4.0 million over the first quarter of 2017.
Net interest margin was 2.89 percent for the second quarter of 2017, an increase of 8 basis points over the first quarter of 2017, due largely to the impact of an increase in short-term market interest rates. The Federal Reserve's 25 basis point hikes in March and June increased yields on floating-rate earning assets, but had minimal impact on deposit costs. The yield on average earning assets was 3.30 percent, an increase of 15 basis points. The loan portfolio yield increased 15 basis points to 4.03 percent. The yield on the available for sale securities portfolio increased 6 basis points to 2.11 percent. The yield on interest-bearing cash and cash equivalents increased 22 basis points. Funding costs were 0.63 percent, up 11 basis points. Growth in the cost of interest-bearing deposits increased 5 basis points to 0.40 percent as market pricing pressure remained relatively subdued.
Steven Nell, chief financial officer, added, “We are encouraged that net interest margins continue to migrate back to pre–Great Recession levels. The banking industry still has a lot of ground to make up after a decade of near-zero interest rates. To date, we are seeing limited deposit price competition across our footprint, and we are hopeful that this rational behavior will continue."
Average earning assets decreased $359 million compared to the second quarter of 2017. The average balance of the available for sale securities portfolio decreased $183 million. Average trading securities portfolio balances decreased $124 million and interest-bearing cash and cash equivalents balances decreased $80 million. These decreases were partially offset by a $60 million increase in the average balance of fair value option securities held as an economic hedge of our mortgage servicing rights.
Average interest-bearing deposit balances decreased $514 million compared to the first quarter of 2017. The average balance of borrowed funds decreased $254 million.
Fees and Commissions Revenue
Fees and commissions revenue totaled $177.5 million for the second quarter of 2017, an increase of $13.1 million over the first quarter of 2017.
Mortgage banking revenue totaled $30.3 million for the second quarter of 2017, a $5.1 million increase over the first quarter of 2017. Revenue from mortgage loan production increased $5.3 million. Mortgage production volume increased $109 million in response to lower primary mortgage interest rates and normal seasonality. Gain on sale margin improved 47 basis points over the first quarter of 2017, primarily due to increased retail margins and improved pipeline hedging performance.
Fiduciary and asset management revenue grew by $3.2 million to $41.8 million, primarily due to an annual assessment of tax preparation fees and a $96 million increase in the value of fiduciary assets under management.
Transaction card revenue was up $3.2 million, primarily due to a seasonal increase in transaction volumes and a full quarter's impact of TransFund's expansion into the Arizona market.
Brokerage and trading revenue decreased $1.9 million primarily due to a $1.0 million decrease in trading revenue and an $862 thousand decrease in retail brokerage revenue. Institutional trading volumes were lower compared to the prior quarter, primarily due to customer anticipation of future interest rate increases. Implementation of the fiduciary rule during the second quarter slowed retail sales activity.
Other Gains, Net
Other gains totaled $6.1 million primarily due to a $5.7 million gain on sale of a merchant banking investment during the second quarter of 2017. Other gains totaled $3.6 million in the first quarter of 2017.
Operating Expense
Total operating expense was $250.9 million for the second quarter of 2017, a $6.2 million increase over the first quarter of 2017.
Personnel expense increased $7.3 million. Incentive compensation expense increased $7.1 million. Share-based compensation expense was up $5.8 million related to adjustments in the vesting assumptions of certain performance-based awards that were granted in January 2015 and a $5.86 per share increase in the fair value of BOK Financial common shares. Cash-based incentive compensation expense increased $1.1 million. A $2.6 million increase in employee healthcare costs were offset by a $2.2 million seasonal decrease in payroll tax expense.
Non-personnel expense decreased $1.1 million compared to the first quarter of 2017. Deposit insurance expense decreased $5.7 million. In conjunction with ongoing cost reduction efforts, management performed a comprehensive review of inputs into the deposit insurance assessment calculation that resulted in $5.1 million of rebates for years 2013 through 2016. Data processing and communication expense increased $1.4 million primarily due to increased transaction activity. Net losses and operating expenses of repossessed assets increased $1.3 million primarily due to increased operating expenses related to repossessed oil and gas properties. This increased expense was offset by revenue from these properties included in other revenue.
Loans, Deposits and Capital
Loans
Outstanding loans were $17.2 billion at June 30, 2017, an increase of $192 million over March 31, 2017. Growth in commercial loan balances was partially offset by a decrease in commercial real estate loan balances.
Outstanding commercial loan balances increased $311 million, primarily due to growth in energy loan balances. Unfunded energy loan commitments were largely unchanged at $2.7 billion. Other commercial and industrial loans increased by $59 million and wholesale/retail sector loan balances increased by $37 million. This growth was offset by a $55 million decrease in service sector loan balances and a $44 million decrease in healthcare sector loan balances.
Commercial real estate loan balances decreased $182 million from March 31, 2017. Loans secured by industrial properties decreased $178 million. Retail sector loans decreased $22 million, primarily in the Oklahoma, Arizona and Texas markets, partially offset by growth in the Kansas/Missouri and Colorado markets. Multifamily residential loans increased $29 million. Growth in the Texas market was partially offset by a decrease in the Kansas/Missouri market.
Deposits
Period-end deposits totaled $22.3 billion at June 30, 2017, a $259 million decrease compared to March 31, 2017. Interest-bearing transaction account balances decreased $272 million and time deposits decreased $48 million, partially offset by a $62 million increase in demand deposit balances. Wealth Management deposits grew by $207 million and Commercial Banking deposits decreased $344 million. Consumer Banking deposits were largely unchanged compared to the previous quarter.
Capital
The company's common equity Tier 1 capital ratio was 11.76 percent at June 30, 2017. In addition, the company's Tier 1 capital ratio was 11.76 percent, total capital ratio was 13.37 percent and leverage ratio was 9.26 percent at June 30, 2017. At March 31, 2017, the company's common equity Tier 1 capital ratio was 11.59 percent, Tier 1 capital ratio was 11.59 percent, total capital ratio was 13.25 percent, and leverage ratio was 8.89 percent.
The company's tangible common equity ratio, a non-GAAP measure, was 9.24 percent at June 30, 2017 and 8.88 percent at March 31, 2017. The tangible common equity ratio is primarily based on total shareholders' equity, which includes unrealized gains and losses on available for sale securities. The company has elected to exclude unrealized gains and losses from available for sale securities from its calculation of Tier 1 capital for regulatory capital purposes, consistent with the treatment under the previous capital rules.
Credit Quality
Nonperforming assets totaled $365 million or 2.12 percent of outstanding loans and repossessed assets at June 30, 2017, compared to $334 million or 1.96 percent at March 31, 2017. Nonperforming assets that are not guaranteed by U.S. government agencies totaled $276 million or 1.62 percent of outstanding loans and repossessed assets (excluding those guaranteed by U.S. government agencies) at June 30, 2017, compared to $240 million or 1.43 percent at March 31, 2017.
Nonaccruing loans totaled $245 million or 1.43 percent of outstanding loans at June 30, 2017, up from $208 million or 1.22 percent of outstanding loans at March 31, 2017. The increase in nonaccruing loans was primarily due to a $24 million increase in healthcare loans and a $14 million increase in energy loans. New nonaccruing loans identified in the second quarter totaled $59 million, offset by $15 million in payments received, $2.9 million in charge-offs and $2.3 million in foreclosures and repossessions. Additionally, $618 thousand was returned to accruing status based on improved credit risk and performance. At June 30, 2017, nonaccruing commercial loans totaled $197 million or 1.85 percent of outstanding commercial loans, nonaccruing commercial real estate loans totaled $3.8 million or 0.10 percent of outstanding commercial real estate loans and nonaccruing residential mortgage loans totaled $44 million or 2.28 percent of outstanding residential mortgage loans.
Approximately $73 million of nonaccruing loans required a specific allowance of $9.7 million. No specific allowance was necessary for the remaining $172 million of nonaccruing loans based on estimated cash flows or collateral value. At March 31, 2017, $52 million of nonaccruing loans required specific allowances of $3.5 million. No specific allowance was necessary for the remaining $156 million of nonaccruing loans.
Potential problem loans, which are defined as performing loans that, based on known information, cause management concern as to the borrowers' ability to continue to perform, totaled $327 million at June 30 compared to $413 million at March 31. The decrease largely resulted from energy, manufacturing and service sector potential problem loans, partially offset by an increase in other commercial and industrial potential problem loans.
The company had net charge-offs of $1.7 million for the second quarter of 2017, compared to a net recovery of $747 thousand in the first quarter of 2017. Gross charge-offs totaled $2.9 million for the second quarter, compared to $2.2 million for the previous quarter. Recoveries totaled $1.2 million for the second quarter of 2017 and $2.9 million for the first quarter of 2017.
Based on an evaluation of all credit factors, including changes in nonaccruing and potential problem loans, overall loan portfolio growth and net charge-offs, the company determined that no provision for credit losses was necessary during the first and second quarter of 2017.
The combined allowance for credit losses totaled $256 million or 1.49 percent of outstanding loans and 109 percent of nonaccruing loans at June 30, 2017, excluding residential mortgage loans guaranteed by U.S. government agencies. The allowance for loan losses was $250 million and the accrual for off-balance sheet credit losses was $6.4 million. At March 31, 2017, the combined allowance for credit losses was $258 million or 1.52 percent of outstanding loans and 131 percent of nonaccruing loans, excluding loans guaranteed by U.S. government agencies. The allowance for loan losses was $249 million and the accrual for off-balance sheet credit losses was $9.4 million.
Securities and Derivatives
The fair value of the available for sale securities portfolio totaled $8.3 billion at June 30, 2017, a $96 million decrease compared to March 31, 2017. At June 30, 2017, the available for sale portfolio consisted primarily of $5.4 billion of residential mortgage-backed securities fully backed by U.S. government agencies and $2.8 billion of commercial mortgage-backed securities fully backed by U.S. government agencies.
At June 30, 2017, the available for sale securities portfolio had a net unrealized gain of $16 million compared to a net unrealized loss of $5.5 million at March 31, 2017, primarily due to changes in interest rates. The $7.3 million net unrealized loss on residential mortgage-backed securities issued by U.S. government agencies at March 31, 2017 improved to a net unrealized gain of $995 thousand at June 30, 2017. Commercial mortgage-backed securities had a net unrealized loss of $6.5 million at June 30, 2017, a $12 million improvement compared to March 31, 2017.
The company also maintains a portfolio of financial instruments consisting primarily of residential mortgage-backed securities issued by U.S. government agencies and interest rate derivative contracts as an economic hedge of the changes in the fair value of our mortgage servicing rights.
The net economic benefit of the changes in fair value of mortgage servicing rights and related economic hedges was $247 thousand during the second quarter of 2017, including a $6.9 million decrease in the fair value of mortgage servicing rights, a $5.2 million increase in the fair value of securities and derivative contracts held as an economic hedge and $2.0 million of related net interest revenue.
The fair value of mortgage servicing rights increased by $1.9 million during the first quarter of 2017 primarily due to an increase in residential mortgage rates. The fair value of securities and interest rate derivative contracts held as an economic hedge of mortgage servicing rights decreased by $1.7 million.
Conference Call and Webcast
The company will hold a conference call at 9 a.m. Central time on Wednesday, July 26, 2017 to discuss the financial results with investors. The live audio webcast and presentation slides will be available on the company’s website at www.bokf.com. The conference call can also be accessed by dialing 1-201-689-8471. A conference call and webcast replay will also be available shortly after conclusion of the live call at www.bokf.com or by dialing 1-412-317-6671 and referencing conference ID # 13666185.
About BOK Financial Corporation
BOK Financial Corporation is a $32 billion regional financial services company based in Tulsa, Oklahoma. The company's stock is publicly traded on NASDAQ under the Global Select market listings (symbol: BOKF). BOK Financial's holdings include BOKF, NA, BOK Financial Securities, Inc. and The Milestone Group, Inc. BOKF, NA operates TransFund, Cavanal Hill Investment Management, BOK Financial Asset Management, Inc. and seven banking divisions: Bank of Albuquerque, Bank of Arizona, Bank of Arkansas, Mobank, Bank of Oklahoma, Bank of Texas and Colorado State Bank and Trust. Through its subsidiaries, the company provides commercial and consumer banking, investment and trust services, mortgage origination and servicing, and an electronic funds transfer network. For more information, visit www.bokf.com.
The company will continue to evaluate critical assumptions and estimates, such as the appropriateness of the allowance for credit losses and asset impairment as of June 30, 2017 through the date its financial statements are filed with the Securities and Exchange Commission and will adjust amounts reported if necessary.
This news release contains forward-looking statements that are based on management's beliefs, assumptions, current expectations, estimates and projections about BOK Financial, the financial services industry and the economy generally. Words such as “anticipates,” “believes,” “estimates,” “expects,” “forecasts,” “plans,” “projects,” “will,” “intends,” variations of such words and similar expressions are intended to identify such forward-looking statements. Management judgments relating to and discussion of the provision and allowance for credit losses, allowance for uncertain tax positions, accruals for loss contingencies and valuation of mortgage servicing rights involve judgments as to expected events and are inherently forward-looking statements. Assessments that BOK Financial's acquisitions and other growth endeavors will be profitable are necessary statements of belief as to the outcome of future events based in part on information provided by others which BOK Financial has not independently verified. These statements are not guarantees of future performance and involve certain risks, uncertainties, and assumptions which are difficult to predict with regard to timing, extent, likelihood and degree of occurrence. Therefore, actual results and outcomes may materially differ from what is expected, implied or forecasted in such forward-looking statements. Internal and external factors that might cause such a difference include, but are not limited to changes in commodity prices, interest rates and interest rate relationships, demand for products and services, the degree of competition by traditional and nontraditional competitors, changes in banking regulations, tax laws, prices, levies and assessments, the impact of technological advances, and trends in customer behavior as well as their ability to repay loans. BOK Financial and its affiliates undertake no obligation to update, amend or clarify forward-looking statements, whether as a result of new information, future events, or otherwise.
| BALANCE SHEETS -- UNAUDITED | |||||||||||
| BOK FINANCIAL CORPORATION | |||||||||||
| (In thousands) | |||||||||||
| June 30, 2017 | Mar. 31, 2017 | June 30, 2016 | |||||||||
| ASSETS | |||||||||||
| Cash and due from banks | $ | 561,587 | $ | 546,575 | $ | 498,713 | |||||
| Interest-bearing cash and cash equivalents | 2,078,831 | 2,220,640 | 1,907,838 | ||||||||
| Trading securities | 441,414 | 677,156 | 211,622 | ||||||||
| Investment securities | 490,426 | 519,402 | 560,711 | ||||||||
| Available for sale securities | 8,341,041 | 8,437,291 | 8,830,689 | ||||||||
| Fair value option securities | 445,169 | 441,714 | 263,265 | ||||||||
| Restricted equity securities | 311,033 | 283,936 | 319,639 | ||||||||
| Residential mortgage loans held for sale | 287,259 | 248,707 | 430,728 | ||||||||
| Loans: | |||||||||||
| Commercial | 10,637,955 | 10,327,110 | 10,356,437 | ||||||||
| Commercial real estate | 3,688,592 | 3,871,063 | 3,581,966 | ||||||||
| Residential mortgage | 1,939,198 | 1,946,274 | 1,880,923 | ||||||||
| Personal | 917,900 | 847,459 | 587,423 | ||||||||
| Total loans | 17,183,645 | 16,991,906 | 16,406,749 | ||||||||
| Allowance for loan losses | (250,061 | ) | (248,710 | ) | (243,259 | ) | |||||
| Loans, net of allowance | 16,933,584 | 16,743,196 | 16,163,490 | ||||||||
| Premises and equipment, net | 321,038 | 325,546 | 315,199 | ||||||||
| Receivables | 295,042 | 394,394 | 173,638 | ||||||||
| Goodwill | 446,697 | 445,738 | 382,739 | ||||||||
| Intangible assets, net | 40,755 | 42,556 | 43,372 | ||||||||
| Mortgage servicing rights | 245,239 | 249,403 | 190,747 | ||||||||
| Real estate and other repossessed assets, net | 39,436 | 42,726 | 24,054 | ||||||||
| Derivative contracts, net | 280,289 | 304,727 | 883,673 | ||||||||
| Cash surrender value of bank-owned life insurance | 312,774 | 310,537 | 307,860 | ||||||||
| Receivable on unsettled securities sales | 33,177 | 9,921 | 142,820 | ||||||||
| Other assets | 358,741 | 384,767 | 319,653 | ||||||||
| TOTAL ASSETS | $ | 32,263,532 | $ | 32,628,932 | $ | 31,970,450 | |||||
| LIABILITIES AND EQUITY | |||||||||||
| Deposits: | |||||||||||
| Demand | $ | 9,568,895 | $ | 9,506,573 | $ | 8,424,609 | |||||
| Interest-bearing transaction | 10,087,139 | 10,359,214 | 9,668,869 | ||||||||
| Savings | 464,318 | 465,724 | 419,262 | ||||||||
| Time | 2,196,122 | 2,243,848 | 2,247,061 | ||||||||
| Total deposits | 22,316,474 | 22,575,359 | 20,759,801 | ||||||||
| Funds purchased | 67,990 | 47,629 | 56,780 | ||||||||
| Repurchase agreements | 396,333 | 508,352 | 472,683 | ||||||||
| Other borrowings | 5,232,343 | 5,238,947 | 5,830,736 | ||||||||
| Subordinated debentures | 144,658 | 144,649 | 371,812 | ||||||||
| Accrued interest, taxes and expense | 133,198 | 140,235 | 197,742 | ||||||||
| Due on unsettled securities purchases | 32,636 | 137,069 | 11,757 | ||||||||
| Derivative contracts, net | 285,819 | 276,422 | 719,159 | ||||||||
| Other liabilities | 204,536 | 189,376 | 147,242 | ||||||||
| TOTAL LIABILITIES | 28,813,987 | 29,258,038 | 28,567,712 | ||||||||
| Shareholders' equity: | |||||||||||
| Capital, surplus and retained earnings | 3,414,505 | 3,346,965 | 3,251,201 | ||||||||
| Accumulated other comprehensive income (loss) | 7,964 | (5,221 | ) | 117,632 | |||||||
| TOTAL SHAREHOLDERS' EQUITY | 3,422,469 | 3,341,744 | 3,368,833 | ||||||||
| Non-controlling interests | 27,076 | 29,150 | 33,905 | ||||||||
| TOTAL EQUITY | 3,449,545 | 3,370,894 | 3,402,738 | ||||||||
| TOTAL LIABILITIES AND EQUITY | $ | 32,263,532 | $ | 32,628,932 | $ | 31,970,450 | |||||
| AVERAGE BALANCE SHEETS -- UNAUDITED | |||||||||||||||||||
| BOK FINANCIAL CORPORATION | |||||||||||||||||||
| (in thousands) | |||||||||||||||||||
| Three Months Ended | |||||||||||||||||||
| June 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sept. 30, 2016 | June 30, 2016 | |||||||||||||||
| ASSETS | |||||||||||||||||||
| Interest-bearing cash and cash equivalents | $ | 2,007,746 | $ | 2,087,964 | $ | 2,032,785 | $ | 2,047,991 | $ | 2,022,028 | |||||||||
| Trading securities | 456,028 | 579,549 | 476,498 | 366,545 | 237,808 | ||||||||||||||
| Investment securities | 499,372 | 530,936 | 542,869 | 552,592 | 562,391 | ||||||||||||||
| Available for sale securities | 8,384,057 | 8,567,049 | 8,766,555 | 8,862,590 | 8,890,112 | ||||||||||||||
| Fair value option securities | 476,102 | 416,524 | 210,733 | 266,998 | 368,434 | ||||||||||||||
| Restricted equity securities | 295,743 | 312,498 | 334,114 | 335,812 | 319,136 | ||||||||||||||
| Residential mortgage loans held for sale | 245,401 | 220,325 | 345,066 | 445,930 | 401,114 | ||||||||||||||
| Loans: | |||||||||||||||||||
| Commercial | 10,604,456 | 10,414,579 | 10,228,095 | 10,109,692 | 10,265,782 | ||||||||||||||
| Commercial real estate | 3,676,976 | 3,903,850 | 3,749,393 | 3,789,673 | 3,550,611 | ||||||||||||||
| Residential mortgage | 1,933,091 | 1,962,759 | 1,919,296 | 1,870,855 | 1,864,458 | ||||||||||||||
| Personal | 915,010 | 854,637 | 826,804 | 677,530 | 582,281 | ||||||||||||||
| Total loans | 17,129,533 | 17,135,825 | 16,723,588 | 16,447,750 | 16,263,132 | ||||||||||||||
| Allowance for loan losses | (251,632 | ) | (249,379 | ) | (246,977 | ) | (247,901 | ) | (245,448 | ) | |||||||||
| Total loans, net | 16,877,901 | 16,886,446 | 16,476,611 | 16,199,849 | 16,017,684 | ||||||||||||||
| Total earning assets | 29,242,350 | 29,601,291 | 29,185,231 | 29,078,307 | 28,818,707 | ||||||||||||||
| Cash and due from banks | 530,352 | 547,104 | 578,694 | 511,534 | 507,085 | ||||||||||||||
| Derivative contracts, net | 248,168 | 401,886 | 681,455 | 766,671 | 823,584 | ||||||||||||||
| Cash surrender value of bank-owned life insurance | 311,310 | 309,223 | 309,532 | 308,670 | 306,318 | ||||||||||||||
| Receivable on unsettled securities sales | 79,248 | 62,641 | 33,813 | 259,906 | 49,568 | ||||||||||||||
| Other assets | 1,957,143 | 2,032,844 | 2,172,351 | 1,721,385 | 1,480,780 | ||||||||||||||
| TOTAL ASSETS | $ | 32,368,571 | $ | 32,954,989 | $ | 32,961,076 | $ | 32,646,473 | $ | 31,986,042 | |||||||||
| LIABILITIES AND EQUITY | |||||||||||||||||||
| Deposits: | |||||||||||||||||||
| Demand | $ | 9,338,683 | $ | 9,101,763 | $ | 9,124,595 | $ | 8,497,037 | $ | 8,162,134 | |||||||||
| Interest-bearing transaction | 10,087,640 | 10,567,475 | 9,980,132 | 9,650,618 | 9,590,855 | ||||||||||||||
| Savings | 461,586 | 441,254 | 421,654 | 420,009 | 417,122 | ||||||||||||||
| Time | 2,204,422 | 2,258,930 | 2,177,035 | 2,197,350 | 2,297,621 | ||||||||||||||
| Total deposits | 22,092,331 | 22,369,422 | 21,703,416 | 20,765,014 | 20,467,732 | ||||||||||||||
| Funds purchased | 63,263 | 55,508 | 62,004 | 68,280 | 70,682 | ||||||||||||||
| Repurchase agreements | 427,353 | 523,561 | 560,891 | 522,822 | 611,264 | ||||||||||||||
| Other borrowings | 5,572,031 | 5,737,955 | 6,072,150 | 6,342,369 | 6,076,028 | ||||||||||||||
| Subordinated debentures | 144,654 | 144,644 | 144,635 | 255,890 | 232,795 | ||||||||||||||
| Derivative contracts, net | 178,695 | 405,444 | 682,808 | 747,187 | 791,313 | ||||||||||||||
| Due on unsettled securities purchases | 157,438 | 91,529 | 77,575 | 200,574 | 93,812 | ||||||||||||||
| Other liabilities | 323,373 | 299,534 | 321,404 | 352,671 | 298,170 | ||||||||||||||
| TOTAL LIABILITIES | 28,959,138 | 29,627,597 | 29,624,883 | 29,254,807 | 28,641,796 | ||||||||||||||
| Total equity | 3,409,433 | 3,327,392 | 3,336,193 | 3,391,666 | 3,344,246 | ||||||||||||||
| TOTAL LIABILITIES AND EQUITY | $ | 32,368,571 | $ | 32,954,989 | $ | 32,961,076 | $ | 32,646,473 | $ | 31,986,042 | |||||||||
| STATEMENTS OF EARNINGS -- UNAUDITED | |||||||||||||||
| BOK FINANCIAL CORPORATION | |||||||||||||||
| (in thousands, except per share data) | |||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||
| June 30, | June 30, | ||||||||||||||
| 2017 | 2016 | 2017 | 2016 | ||||||||||||
| Interest revenue | $ | 235,181 | $ | 202,267 | $ | 461,571 | $ | 404,063 | |||||||
| Interest expense | 29,977 | 19,655 | 55,185 | 38,879 | |||||||||||
| Net interest revenue | 205,204 | 182,612 | 406,386 | 365,184 | |||||||||||
| Provision for credit losses | — | 20,000 | — | 55,000 | |||||||||||
| Net interest revenue after provision for credit losses | 205,204 | 162,612 | 406,386 | 310,184 | |||||||||||
| Other operating revenue: | |||||||||||||||
| Brokerage and trading revenue | 31,764 | 39,530 | 65,387 | 71,871 | |||||||||||
| Transaction card revenue | 35,296 | 34,950 | 67,423 | 67,304 | |||||||||||
| Fiduciary and asset management revenue | 41,808 | 34,813 | 80,439 | 66,869 | |||||||||||
| Deposit service charges and fees | 23,354 | 22,618 | 46,384 | 45,160 | |||||||||||
| Mortgage banking revenue | 30,276 | 34,884 | 55,467 | 66,984 | |||||||||||
| Other revenue | 14,984 | 13,352 | 26,736 | 25,256 | |||||||||||
| Total fees and commissions | 177,482 | 180,147 | 341,836 | 343,444 | |||||||||||
| Other gains, net | 6,108 | 1,307 | 9,735 | 2,867 | |||||||||||
| Gain on derivatives, net | 3,241 | 10,766 | 2,791 | 17,904 | |||||||||||
| Gain on fair value option securities, net | 1,984 | 4,279 | 844 | 13,722 | |||||||||||
| Change in fair value of mortgage servicing rights | (6,943 | ) | (16,283 | ) | (5,087 | ) | (44,271 | ) | |||||||
| Gain on available for sale securities, net | 380 | 5,326 | 2,429 | 9,290 | |||||||||||
| Total other operating revenue | 182,252 | 185,542 | 352,548 | 342,956 | |||||||||||
| Other operating expense: | |||||||||||||||
| Personnel | 143,744 | 139,213 | 280,169 | 272,775 | |||||||||||
| Business promotion | 7,738 | 6,703 | 14,455 | 12,399 | |||||||||||
| Professional fees and services | 12,419 | 14,158 | 23,836 | 25,917 | |||||||||||
| Net occupancy and equipment | 21,125 | 19,677 | 42,749 | 38,443 | |||||||||||
| Insurance | 689 | 7,129 | 7,093 | 14,394 | |||||||||||
| Data processing and communications | 36,330 | 32,802 | 71,232 | 64,819 | |||||||||||
| Printing, postage and supplies | 4,140 | 3,889 | 7,991 | 7,796 | |||||||||||
| Net losses and operating expenses of repossessed assets | 2,267 | 1,588 | 3,276 | 2,658 | |||||||||||
| Amortization of intangible assets | 1,803 | 2,624 | 3,605 | 3,783 | |||||||||||
| Mortgage banking costs | 12,072 | 15,746 | 25,075 | 28,076 | |||||||||||
| Other expense | 8,558 | 7,856 | 16,115 | 22,895 | |||||||||||
| Total other operating expense | 250,885 | 251,385 | 495,596 | 493,955 | |||||||||||
| Net income before taxes | 136,571 | 96,769 | 263,338 | 159,185 | |||||||||||
| Federal and state income taxes | 47,705 | 30,497 | 85,808 | 51,925 | |||||||||||
| Net income | 88,866 | 66,272 | 177,530 | 107,260 | |||||||||||
| Net income (loss) attributable to non-controlling interests | 719 | 471 | 1,027 | (1,105 | ) | ||||||||||
| Net income attributable to BOK Financial Corporation shareholders | $ | 88,147 | $ | 65,801 | $ | 176,503 | $ | 108,365 | |||||||
| Average shares outstanding: | |||||||||||||||
| Basic | 64,729,752 | 65,245,887 | 64,722,744 | 65,271,214 | |||||||||||
| Diluted | 64,793,134 | 65,302,926 | 64,788,322 | 65,317,177 | |||||||||||
| Net income per share: | |||||||||||||||
| Basic | $ | 1.35 | $ | 1.00 | $ | 2.70 | $ | 1.64 | |||||||
| Diluted | $ | 1.35 | $ | 1.00 | $ | 2.69 | $ | 1.64 | |||||||
| FINANCIAL HIGHLIGHTS -- UNAUDITED | |||||||||||||||||||
| BOK FINANCIAL CORPORATION | |||||||||||||||||||
| (in thousands, except ratio and share data) | |||||||||||||||||||
| Three Months Ended | |||||||||||||||||||
| June 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sept. 30, 2016 | June 30, 2016 | |||||||||||||||
| Capital: | |||||||||||||||||||
| Period-end shareholders' equity | $ | 3,422,469 | $ | 3,341,744 | $ | 3,274,854 | $ | 3,398,311 | $ | 3,368,833 | |||||||||
| Risk weighted assets | $ | 25,127,604 | $ | 24,901,019 | $ | 25,274,848 | $ | 24,358,385 | $ | 24,191,016 | |||||||||
| Risk-based capital ratios: | |||||||||||||||||||
| Common equity tier 1 | 11.76 | % | 11.59 | % | 11.21 | % | 11.99 | % | 11.86 | % | |||||||||
| Tier 1 | 11.76 | % | 11.59 | % | 11.21 | % | 11.99 | % | 11.86 | % | |||||||||
| Total capital | 13.37 | % | 13.25 | % | 12.81 | % | 13.65 | % | 13.51 | % | |||||||||
| Leverage ratio | 9.26 | % | 8.89 | % | 8.72 | % | 9.06 | % | 9.06 | % | |||||||||
| Tangible common equity ratio1 | 9.24 | % | 8.88 | % | 8.61 | % | 9.19 | % | 9.33 | % | |||||||||
| Common stock: | |||||||||||||||||||
| Book value per share | $ | 52.32 | $ | 51.09 | $ | 50.12 | $ | 51.56 | $ | 51.15 | |||||||||
| Tangible book value per share | 44.87 | 43.63 | 42.53 | 45.12 | 44.68 | ||||||||||||||
| Market value per share: | |||||||||||||||||||
| High | $ | 88.31 | $ | 85.25 | $ | 85.00 | $ | 70.05 | $ | 65.14 | |||||||||
| Low | $ | 74.09 | $ | 73.44 | $ | 67.11 | $ | 56.36 | $ | 51.00 | |||||||||
| Cash dividends paid | $ | 28,652 | $ | 28,646 | $ | 28,860 | $ | 28,181 | $ | 28,241 | |||||||||
| Dividend payout ratio | 32.50 | % | 32.42 | % | 57.69 | % | 37.94 | % | 42.92 | % | |||||||||
| Shares outstanding, net | 65,416,403 | 65,408,019 | 65,337,432 | 65,910,454 | 65,866,317 | ||||||||||||||
| Stock buy-back program: | |||||||||||||||||||
| Shares repurchased | — | — | 700,000 | — | 305,169 | ||||||||||||||
| Amount | $ | — | $ | — | $ | 49,021 | $ | — | $ | 17,771 | |||||||||
| Average price per share | $ | — | $ | — | $ | 70.03 | $ | — | $ | 58.23 | |||||||||
| Performance ratios (quarter annualized): | |||||||||||||||||||
| Return on average assets | 1.09 | % | 1.09 | % | 0.60 | % | 0.91 | % | 0.83 | % | |||||||||
| Return on average equity | 10.46 | % | 10.86 | % | 6.03 | % | 8.80 | % | 8.00 | % | |||||||||
| Net interest margin | 2.89 | % | 2.81 | % | 2.69 | % | 2.64 | % | 2.63 | % | |||||||||
| Efficiency ratio | 64.61 | % | 65.77 | % | 72.93 | % | 68.88 | % | 68.16 | % | |||||||||
| Reconciliation of non-GAAP measures: | |||||||||||||||||||
| 1 Tangible common equity ratio: | |||||||||||||||||||
| Total shareholders' equity | $ | 3,422,469 | $ | 3,341,744 | $ | 3,274,854 | $ | 3,398,311 | $ | 3,368,833 | |||||||||
| Less: Goodwill and intangible assets, net | 487,452 | 488,294 | 495,830 | 424,716 | 426,111 | ||||||||||||||
| Tangible common equity | $ | 2,935,017 | $ | 2,853,450 | $ | 2,779,024 | $ | 2,973,595 | $ | 2,942,722 | |||||||||
| Total assets | $ | 32,263,532 | $ | 32,628,932 | $ | 32,772,281 | $ | 32,779,231 | $ | 31,970,450 | |||||||||
| Less: Goodwill and intangible assets, net | 487,452 | 488,294 | 495,830 | 424,716 | 426,111 | ||||||||||||||
| Tangible assets | $ | 31,776,080 | $ | 32,140,638 | $ | 32,276,451 | $ | 32,354,515 | $ | 31,544,339 | |||||||||
| Tangible common equity ratio | 9.24 | % | 8.88 | % | 8.61 | % | 9.19 | % | 9.33 | % | |||||||||
| Other data: | |||||||||||||||||||
| Fiduciary assets | $ | 45,089,153 | $ | 44,992,920 | $ | 42,378,053 | $ | 41,810,943 | $ | 40,496,583 | |||||||||
| Tax equivalent interest | $ | 4,330 | $ | 4,428 | $ | 4,389 | $ | 4,455 | $ | 4,372 | |||||||||
| Net unrealized gain (loss) on available for sale securities | $ | 16,041 | $ | (5,537 | ) | $ | (14,899 | ) | $ | 159,533 | $ | 195,385 | |||||||
| Mortgage banking: | |||||||||||||||||||
| Mortgage production revenue | $ | 13,840 | $ | 8,543 | $ | 11,937 | $ | 21,958 | $ | 19,086 | |||||||||
| Mortgage loans funded for sale | $ | 902,978 | $ | 711,019 | $ | 1,189,975 | $ | 1,864,583 | $ | 1,818,844 | |||||||||
| Add: current period-end outstanding commitments | 362,088 | 381,732 | 318,359 | 630,804 | 965,631 | ||||||||||||||
| Less: prior period end outstanding commitments | 381,732 | 318,359 | 630,804 | 965,631 | 902,986 | ||||||||||||||
| Total mortgage production volume | $ | 883,334 | $ | 774,392 | $ | 877,530 | $ | 1,529,756 | $ | 1,881,489 | |||||||||
| Mortgage loan refinances to mortgage loans funded for sale | 33 | % | 44 | % | 63 | % | 51 | % | 44 | % | |||||||||
| Gain on sale margin | 1.57 | % | 1.10 | % | 1.36 | % | 1.44 | % | 1.01 | % | |||||||||
| Mortgage servicing revenue | $ | 16,436 | $ | 16,648 | $ | 16,477 | $ | 16,558 | $ | 15,798 | |||||||||
| Average outstanding principal balance of mortgage loans service for others | 22,055,127 | 22,006,295 | 21,924,552 | 21,514,962 | 20,736,525 | ||||||||||||||
| Average mortgage servicing revenue rates | 0.30 | % | 0.31 | % | 0.30 | % | 0.31 | % | 0.31 | % | |||||||||
| Gain (loss) on mortgage servicing rights, net of economic hedge: | |||||||||||||||||||
| Gain (loss) on mortgage hedge derivative contracts, net | $ | 3,241 | $ | (528 | ) | $ | (35,868 | ) | $ | 2,268 | $ | 10,766 | |||||||
| Gain (loss) on fair value option securities, net | 1,984 | (1,140 | ) | (20,922 | ) | (3,355 | ) | 4,279 | |||||||||||
| Gain (loss) on economic hedge of mortgage servicing rights | 5,225 | (1,668 | ) | (56,790 | ) | (1,087 | ) | 15,045 | |||||||||||
| Gain (loss) on changes in fair value of mortgage servicing rights | (6,943 | ) | 1,856 | 39,751 | 2,327 | (16,283 | ) | ||||||||||||
| Gain (loss) on changes in fair value of mortgage servicing rights, net of economic hedges, included in other operating revenue | (1,718 | ) | 188 | (17,039 | ) | 1,240 | (1,238 | ) | |||||||||||
| Net interest revenue on fair value option securities2 | 1,965 | 1,271 | 114 | 861 | 1,348 | ||||||||||||||
| Total economic benefit (cost) of changes in the fair value of mortgage servicing rights, net of economic hedges | $ | 247 | $ | 1,459 | $ | (16,925 | ) | $ | 2,101 | $ | 110 | ||||||||
2 Actual interest earned on fair value option securities less internal transfer-priced cost of funds.
| QUARTERLY EARNINGS TREND -- UNAUDITED | |||||||||||||||||||
| BOK FINANCIAL CORPORATION | |||||||||||||||||||
| (in thousands, except ratio and per share data) | |||||||||||||||||||
| Three Months Ended | |||||||||||||||||||
| June 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sept. 30, 2016 | June 30, 2016 | |||||||||||||||
| Interest revenue | $ | 235,181 | $ | 226,390 | $ | 215,737 | $ | 209,317 | $ | 202,267 | |||||||||
| Interest expense | 29,977 | 25,208 | 21,539 | 21,471 | 19,655 | ||||||||||||||
| Net interest revenue | 205,204 | 201,182 | 194,198 | 187,846 | 182,612 | ||||||||||||||
| Provision for credit losses | — | — | — | 10,000 | 20,000 | ||||||||||||||
| Net interest revenue after provision for credit losses | 205,204 | 201,182 | 194,198 | 177,846 | 162,612 | ||||||||||||||
| Other operating revenue: | |||||||||||||||||||
| Brokerage and trading revenue | 31,764 | 33,623 | 28,500 | 38,006 | 39,530 | ||||||||||||||
| Transaction card revenue | 35,296 | 32,127 | 34,521 | 33,933 | 34,950 | ||||||||||||||
| Fiduciary and asset management revenue | 41,808 | 38,631 | 34,535 | 34,073 | 34,813 | ||||||||||||||
| Deposit service charges and fees | 23,354 | 23,030 | 23,365 | 23,668 | 22,618 | ||||||||||||||
| Mortgage banking revenue | 30,276 | 25,191 | 28,414 | 38,516 | 34,884 | ||||||||||||||
| Other revenue | 14,984 | 11,752 | 12,693 | 13,080 | 13,352 | ||||||||||||||
| Total fees and commissions | 177,482 | 164,354 | 162,028 | 181,276 | 180,147 | ||||||||||||||
| Other gains (losses), net | 6,108 | 3,627 | (1,279 | ) | 2,442 | 1,307 | |||||||||||||
| Gain (loss) on derivatives, net | 3,241 | (450 | ) | (35,815 | ) | 2,226 | 10,766 | ||||||||||||
| Gain (loss) on fair value option securities, net | 1,984 | (1,140 | ) | (20,922 | ) | (3,355 | ) | 4,279 | |||||||||||
| Change in fair value of mortgage servicing rights | (6,943 | ) | 1,856 | 39,751 | 2,327 | (16,283 | ) | ||||||||||||
| Gain (loss) on available for sale securities, net | 380 | 2,049 | (9 | ) | 2,394 | 5,326 | |||||||||||||
| Total other operating revenue | 182,252 | 170,296 | 143,754 | 187,310 | 185,542 | ||||||||||||||
| Other operating expense: | |||||||||||||||||||
| Personnel | 143,744 | 136,425 | 141,132 | 139,212 | 139,213 | ||||||||||||||
| Business promotion | 7,738 | 6,717 | 7,344 | 6,839 | 6,703 | ||||||||||||||
| Charitable contributions to BOKF Foundation | — | — | 2,000 | — | — | ||||||||||||||
| Professional fees and services | 12,419 | 11,417 | 16,828 | 14,038 | 14,158 | ||||||||||||||
| Net occupancy and equipment | 21,125 | 21,624 | 21,470 | 20,111 | 19,677 | ||||||||||||||
| Insurance | 689 | 6,404 | 8,705 | 9,390 | 7,129 | ||||||||||||||
| Data processing and communications | 36,330 | 34,902 | 33,691 | 33,331 | 32,802 | ||||||||||||||
| Printing, postage and supplies | 4,140 | 3,851 | 3,998 | 3,790 | 3,889 | ||||||||||||||
| Net losses (gains) and operating expenses of repossessed assets | 2,267 | 1,009 | 1,627 | (926 | ) | 1,588 | |||||||||||||
| Amortization of intangible assets | 1,803 | 1,802 | 1,558 | 1,521 | 2,624 | ||||||||||||||
| Mortgage banking costs | 12,072 | 13,003 | 17,348 | 15,963 | 15,746 | ||||||||||||||
| Other expense | 8,558 | 7,557 | 9,846 | 14,819 | 7,856 | ||||||||||||||
| Total other operating expense | 250,885 | 244,711 | 265,547 | 258,088 | 251,385 | ||||||||||||||
| Net income before taxes | 136,571 | 126,767 | 72,405 | 107,068 | 96,769 | ||||||||||||||
| Federal and state income taxes | 47,705 | 38,103 | 22,496 | 31,956 | 30,497 | ||||||||||||||
| Net income | 88,866 | 88,664 | 49,909 | 75,112 | 66,272 | ||||||||||||||
| Net income (loss) attributable to non-controlling interests | 719 | 308 | (117 | ) | 835 | 471 | |||||||||||||
| Net income attributable to BOK Financial Corporation shareholders | $ | 88,147 | $ | 88,356 | $ | 50,026 | $ | 74,277 | $ | 65,801 | |||||||||
| Average shares outstanding: | |||||||||||||||||||
| Basic | 64,729,752 | 64,715,964 | 64,719,018 | 65,085,392 | 65,245,887 | ||||||||||||||
| Diluted | 64,793,134 | 64,783,737 | 64,787,728 | 65,157,841 | 65,302,926 | ||||||||||||||
| Net income per share: | |||||||||||||||||||
| Basic | $ | 1.35 | $ | 1.35 | $ | 0.76 | $ | 1.13 | $ | 1.00 | |||||||||
| Diluted | $ | 1.35 | $ | 1.35 | $ | 0.76 | $ | 1.13 | $ | 1.00 | |||||||||
| LOANS TREND -- UNAUDITED | ||||||||||||||||||||
| BOK FINANCIAL CORPORATION | ||||||||||||||||||||
| (In thousands) | ||||||||||||||||||||
| June 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sept. 30, 2016 | June 30, 2016 | ||||||||||||||||
| Commercial: | ||||||||||||||||||||
| Energy | $ | 2,847,240 | $ | 2,537,112 | $ | 2,497,868 | $ | 2,520,804 | $ | 2,818,656 | ||||||||||
| Services | 2,958,827 | 3,013,375 | 3,108,990 | 2,936,599 | 2,830,864 | |||||||||||||||
| Healthcare | 2,221,518 | 2,265,604 | 2,201,916 | 2,085,046 | 2,051,146 | |||||||||||||||
| Wholesale/retail | 1,543,695 | 1,506,243 | 1,576,818 | 1,602,030 | 1,532,957 | |||||||||||||||
| Manufacturing | 546,137 | 543,430 | 514,975 | 499,486 | 595,403 | |||||||||||||||
| Other commercial and industrial | 520,538 | 461,346 | 490,257 | 476,198 | 527,411 | |||||||||||||||
| Total commercial | 10,637,955 | 10,327,110 | 10,390,824 | 10,120,163 | 10,356,437 | |||||||||||||||
| Commercial real estate: | ||||||||||||||||||||
| Retail | 722,805 | 745,046 | 761,888 | 801,377 | 795,419 | |||||||||||||||
| Multifamily | 952,380 | 922,991 | 903,272 | 873,773 | 787,200 | |||||||||||||||
| Office | 862,973 | 860,889 | 798,888 | 752,705 | 769,112 | |||||||||||||||
| Industrial | 693,635 | 871,463 | 871,749 | 838,021 | 645,586 | |||||||||||||||
| Residential construction and land development | 141,592 | 135,994 | 135,533 | 159,946 | 157,576 | |||||||||||||||
| Other commercial real estate | 315,207 | 334,680 | 337,716 | 367,776 | 427,073 | |||||||||||||||
| Total commercial real estate | 3,688,592 | 3,871,063 | 3,809,046 | 3,793,598 | 3,581,966 | |||||||||||||||
| Residential mortgage: | ||||||||||||||||||||
| Permanent mortgage | 989,040 | 977,743 | 1,006,820 | 969,558 | 969,007 | |||||||||||||||
| Permanent mortgages guaranteed by U.S. government agencies | 191,729 | 204,181 | 199,387 | 190,309 | 192,732 | |||||||||||||||
| Home equity | 758,429 | 764,350 | 743,625 | 712,926 | 719,184 | |||||||||||||||
| Total residential mortgage | 1,939,198 | 1,946,274 | 1,949,832 | 1,872,793 | 1,880,923 | |||||||||||||||
| Personal | 917,900 | 847,459 | 839,958 | 678,232 | 587,423 | |||||||||||||||
| Total | $ | 17,183,645 | $ | 16,991,906 | $ | 16,989,660 | $ | 16,464,786 | $ | 16,406,749 | ||||||||||
| LOANS BY PRINCIPAL MARKET AREA -- UNAUDITED | |||||||||||||||||||
| BOK FINANCIAL CORPORATION | |||||||||||||||||||
| (in thousands) | |||||||||||||||||||
| June 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sept. 30, 2016 | June 30, 2016 | |||||||||||||||
| Bank of Oklahoma: | |||||||||||||||||||
| Commercial | $ | 3,369,967 | $ | 3,189,183 | $ | 3,370,259 | $ | 3,545,924 | $ | 3,698,215 | |||||||||
| Commercial real estate | 667,932 | 691,332 | 684,381 | 795,806 | 781,458 | ||||||||||||||
| Residential mortgage | 1,398,021 | 1,404,054 | 1,407,197 | 1,401,166 | 1,415,766 | ||||||||||||||
| Personal | 318,016 | 310,708 | 303,823 | 271,420 | 246,229 | ||||||||||||||
| Total Bank of Oklahoma | 5,753,936 | 5,595,277 | 5,765,660 | 6,014,316 | 6,141,668 | ||||||||||||||
| Bank of Texas: | |||||||||||||||||||
| Commercial | 4,339,634 | 4,148,316 | 4,022,455 | 3,903,218 | 3,901,632 | ||||||||||||||
| Commercial real estate | 1,360,164 | 1,452,988 | 1,415,011 | 1,400,709 | 1,311,408 | ||||||||||||||
| Residential mortgage | 232,074 | 231,647 | 233,981 | 229,345 | 222,548 | ||||||||||||||
| Personal | 354,222 | 312,092 | 306,748 | 278,167 | 233,304 | ||||||||||||||
| Total Bank of Texas | 6,286,094 | 6,145,043 | 5,978,195 | 5,811,439 | 5,668,892 | ||||||||||||||
| Bank of Albuquerque: | |||||||||||||||||||
| Commercial | 369,370 | 407,403 | 399,256 | 398,147 | 398,427 | ||||||||||||||
| Commercial real estate | 324,405 | 307,927 | 284,603 | 299,785 | 322,956 | ||||||||||||||
| Residential mortgage | 103,849 | 106,432 | 108,058 | 110,478 | 114,226 | ||||||||||||||
| Personal | 12,439 | 11,305 | 11,483 | 11,333 | 10,569 | ||||||||||||||
| Total Bank of Albuquerque | 810,063 | 833,067 | 803,400 | 819,743 | 846,178 | ||||||||||||||
| Bank of Arkansas: | |||||||||||||||||||
| Commercial | 85,020 | 88,010 | 86,577 | 83,544 | 81,227 | ||||||||||||||
| Commercial real estate | 73,943 | 74,469 | 73,616 | 72,649 | 69,235 | ||||||||||||||
| Residential mortgage | 6,395 | 6,829 | 7,015 | 6,936 | 6,874 | ||||||||||||||
| Personal | 11,993 | 6,279 | 6,524 | 6,757 | 7,025 | ||||||||||||||
| Total Bank of Arkansas | 177,351 | 175,587 | 173,732 | 169,886 | 164,361 | ||||||||||||||
| Colorado State Bank & Trust: | |||||||||||||||||||
| Commercial | 1,065,780 | 998,216 | 1,018,208 | 1,013,314 | 1,076,620 | ||||||||||||||
| Commercial real estate | 255,379 | 266,218 | 265,264 | 254,078 | 237,569 | ||||||||||||||
| Residential mortgage | 63,346 | 62,313 | 59,631 | 59,838 | 59,425 | ||||||||||||||
| Personal | 56,187 | 49,523 | 50,372 | 42,901 | 35,064 | ||||||||||||||
| Total Colorado State Bank & Trust | 1,440,692 | 1,376,270 | 1,393,475 | 1,370,131 | 1,408,678 | ||||||||||||||
| Bank of Arizona: | |||||||||||||||||||
| Commercial | 617,759 | 643,222 | 686,253 | 680,447 | 670,814 | ||||||||||||||
| Commercial real estate | 705,858 | 737,088 | 747,409 | 726,542 | 639,112 | ||||||||||||||
| Residential mortgage | 37,034 | 36,737 | 36,265 | 39,206 | 38,998 | ||||||||||||||
| Personal | 55,528 | 51,386 | 52,553 | 31,205 | 24,248 | ||||||||||||||
| Total Bank of Arizona | 1,416,179 | 1,468,433 | 1,522,480 | 1,477,400 | 1,373,172 | ||||||||||||||
| Mobank: | |||||||||||||||||||
| Commercial | 790,425 | 852,760 | 807,816 | 495,569 | 529,502 | ||||||||||||||
| Commercial real estate | 300,911 | 341,041 | 338,762 | 244,029 | 220,228 | ||||||||||||||
| Residential mortgage | 98,479 | 98,262 | 97,685 | 25,824 | 23,086 | ||||||||||||||
| Personal | 109,515 | 106,166 | 108,455 | 36,449 | 30,984 | ||||||||||||||
| Total Mobank | 1,299,330 | 1,398,229 | 1,352,718 | 801,871 | 803,800 | ||||||||||||||
| TOTAL BOK FINANCIAL | $ | 17,183,645 | $ | 16,991,906 | $ | 16,989,660 | $ | 16,464,786 | $ | 16,406,749 | |||||||||
Loans attributed to a geographical region may not always represent the location of the borrower or the collateral.
| DEPOSITS BY PRINCIPAL MARKET AREA -- UNAUDITED | |||||||||||||||||||
| BOK FINANCIAL CORPORATION | |||||||||||||||||||
| (in thousands) | |||||||||||||||||||
| June 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sept. 30, 2016 | June 30, 2016 | |||||||||||||||
| Bank of Oklahoma: | |||||||||||||||||||
| Demand | $ | 4,353,421 | $ | 4,320,666 | $ | 3,993,170 | $ | 4,158,273 | $ | 4,020,181 | |||||||||
| Interest-bearing: | |||||||||||||||||||
| Transaction | 5,998,787 | 6,114,288 | 6,345,536 | 5,701,983 | 5,741,302 | ||||||||||||||
| Savings | 263,664 | 265,014 | 241,696 | 242,959 | 247,984 | ||||||||||||||
| Time | 1,170,014 | 1,189,144 | 1,118,355 | 1,091,464 | 1,167,271 | ||||||||||||||
| Total interest-bearing | 7,432,465 | 7,568,446 | 7,705,587 | 7,036,406 | 7,156,557 | ||||||||||||||
| Total Bank of Oklahoma | 11,785,886 | 11,889,112 | 11,698,757 | 11,194,679 | 11,176,738 | ||||||||||||||
| Bank of Texas: | |||||||||||||||||||
| Demand | 3,121,890 | 3,091,258 | 3,137,009 | 2,734,981 | 2,677,253 | ||||||||||||||
| Interest-bearing: | |||||||||||||||||||
| Transaction | 2,272,185 | 2,317,576 | 2,388,812 | 2,240,040 | 2,035,634 | ||||||||||||||
| Savings | 91,491 | 89,640 | 83,101 | 84,642 | 83,862 | ||||||||||||||
| Time | 502,128 | 511,037 | 535,642 | 528,380 | 516,231 | ||||||||||||||
| Total interest-bearing | 2,865,804 | 2,918,253 | 3,007,555 | 2,853,062 | 2,635,727 | ||||||||||||||
| Total Bank of Texas | 5,987,694 | 6,009,511 | 6,144,564 | 5,588,043 | 5,312,980 | ||||||||||||||
| Bank of Albuquerque: | |||||||||||||||||||
| Demand | 612,117 | 593,117 | 627,979 | 584,681 | 530,853 | ||||||||||||||
| Interest-bearing: | |||||||||||||||||||
| Transaction | 558,523 | 623,677 | 590,571 | 555,326 | 573,690 | ||||||||||||||
| Savings | 54,136 | 53,683 | 49,963 | 54,480 | 49,200 | ||||||||||||||
| Time | 229,616 | 233,506 | 238,408 | 244,706 | 250,068 | ||||||||||||||
| Total interest-bearing | 842,275 | 910,866 | 878,942 | 854,512 | 872,958 | ||||||||||||||
| Total Bank of Albuquerque | 1,454,392 | 1,503,983 | 1,506,921 | 1,439,193 | 1,403,811 | ||||||||||||||
| Bank of Arkansas: | |||||||||||||||||||
| Demand | 40,511 | 42,622 | 26,389 | 32,203 | 30,607 | ||||||||||||||
| Interest-bearing: | |||||||||||||||||||
| Transaction | 129,848 | 106,804 | 105,232 | 313,480 | 278,335 | ||||||||||||||
| Savings | 2,135 | 2,304 | 2,192 | 2,051 | 1,853 | ||||||||||||||
| Time | 14,876 | 15,067 | 16,696 | 17,534 | 18,911 | ||||||||||||||
| Total interest-bearing | 146,859 | 124,175 | 124,120 | 333,065 | 299,099 | ||||||||||||||
| Total Bank of Arkansas | 187,370 | 166,797 | 150,509 | 365,268 | 329,706 | ||||||||||||||
| Colorado State Bank & Trust: | |||||||||||||||||||
| Demand | 577,617 | 601,778 | 576,000 | 517,063 | 528,124 | ||||||||||||||
| Interest-bearing: | |||||||||||||||||||
| Transaction | 626,343 | 610,510 | 616,679 | 623,055 | 625,240 | ||||||||||||||
| Savings | 35,651 | 37,801 | 32,866 | 31,613 | 31,509 | ||||||||||||||
| Time | 228,458 | 234,740 | 242,782 | 247,667 | 254,164 | ||||||||||||||
| Total interest-bearing | 890,452 | 883,051 | 892,327 | 902,335 | 910,913 | ||||||||||||||
| Total Colorado State Bank & Trust | 1,468,069 | 1,484,829 | 1,468,327 | 1,419,398 | 1,439,037 | ||||||||||||||
| Bank of Arizona: | |||||||||||||||||||
| Demand | 366,866 | 342,854 | 366,755 | 418,718 | 396,837 | ||||||||||||||
| Interest-bearing: | |||||||||||||||||||
| Transaction | 154,457 | 180,254 | 305,099 | 303,750 | 302,297 | ||||||||||||||
| Savings | 3,638 | 3,858 | 2,973 | 2,959 | 3,198 | ||||||||||||||
| Time | 19,911 | 26,112 | 27,765 | 27,935 | 28,681 | ||||||||||||||
| Total interest-bearing | 178,006 | 210,224 | 335,837 | 334,644 | 334,176 | ||||||||||||||
| Total Bank of Arizona | 544,872 | 553,078 | 702,592 | 753,362 | 731,013 | ||||||||||||||
| Mobank: | |||||||||||||||||||
| Demand | 496,473 | 514,278 | 508,418 | 235,445 | 240,755 | ||||||||||||||
| Interest-bearing: | |||||||||||||||||||
| Transaction | 346,996 | 406,105 | 513,176 | 86,526 | 112,371 | ||||||||||||||
| Savings | 13,603 | 13,424 | 12,679 | 1,645 | 1,656 | ||||||||||||||
| Time | 31,119 | 34,242 | 42,152 | 11,945 | 11,735 | ||||||||||||||
| Total interest-bearing | 391,718 | 453,771 | 568,007 | 100,116 | 125,762 | ||||||||||||||
| Total Mobank | 888,191 | 968,049 | 1,076,425 | 335,561 | 366,517 | ||||||||||||||
| TOTAL BOK FINANCIAL | $ | 22,316,474 | $ | 22,575,359 | $ | 22,748,095 | $ | 21,095,504 | $ | 20,759,802 | |||||||||
| NET INTEREST MARGIN TREND -- UNAUDITED | ||||||||||||||
| BOK FINANCIAL CORPORATION | ||||||||||||||
| Three Months Ended | ||||||||||||||
| June 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sept. 30, 2016 | June 30, 2016 | ||||||||||
| TAX-EQUIVALENT ASSETS YIELDS | ||||||||||||||
| Interest-bearing cash and cash equivalents | 1.04 | % | 0.82 | % | 0.55 | % | 0.51 | % | 0.51 | % | ||||
| Trading securities | 3.23 | % | 3.87 | % | 3.91 | % | 2.71 | % | 1.89 | % | ||||
| Investment securities: | ||||||||||||||
| Taxable | 5.34 | % | 5.44 | % | 5.39 | % | 5.34 | % | 5.41 | % | ||||
| Tax-exempt | 2.51 | % | 2.45 | % | 2.33 | % | 2.26 | % | 2.25 | % | ||||
| Total investment securities | 3.76 | % | 3.70 | % | 3.60 | % | 3.51 | % | 3.52 | % | ||||
| Available for sale securities: | ||||||||||||||
| Taxable | 2.09 | % | 2.02 | % | 1.98 | % | 1.99 | % | 2.01 | % | ||||
| Tax-exempt | 6.09 | % | 5.37 | % | 5.27 | % | 5.47 | % | 5.06 | % | ||||
| Total available for sale securities | 2.11 | % | 2.05 | % | 2.00 | % | 2.01 | % | 2.04 | % | ||||
| Fair value option securities | 2.92 | % | 2.27 | % | 0.99 | % | 1.70 | % | 2.19 | % | ||||
| Restricted equity securities | 5.95 | % | 5.52 | % | 5.45 | % | 5.37 | % | 4.84 | % | ||||
| Residential mortgage loans held for sale | 3.92 | % | 3.35 | % | 3.31 | % | 3.28 | % | 3.53 | % | ||||
| Loans | 4.03 | % | 3.88 | % | 3.67 | % | 3.63 | % | 3.58 | % | ||||
| Allowance for loan losses | ||||||||||||||
| Loans, net of allowance | 4.09 | % | 3.94 | % | 3.72 | % | 3.69 | % | 3.63 | % | ||||
| Total tax-equivalent yield on earning assets | 3.30 | % | 3.15 | % | 2.98 | % | 2.93 | % | 2.91 | % | ||||
| COST OF INTEREST-BEARING LIABILITIES | ||||||||||||||
| Interest-bearing deposits: | ||||||||||||||
| Interest-bearing transaction | 0.26 | % | 0.20 | % | 0.16 | % | 0.14 | % | 0.14 | % | ||||
| Savings | 0.08 | % | 0.08 | % | 0.09 | % | 0.09 | % | 0.10 | % | ||||
| Time | 1.11 | % | 1.09 | % | 1.12 | % | 1.14 | % | 1.16 | % | ||||
| Total interest-bearing deposits | 0.40 | % | 0.35 | % | 0.32 | % | 0.32 | % | 0.33 | % | ||||
| Funds purchased | 0.61 | % | 0.47 | % | 0.28 | % | 0.19 | % | 0.19 | % | ||||
| Repurchase agreements | 0.06 | % | 0.02 | % | 0.02 | % | 0.04 | % | 0.05 | % | ||||
| Other borrowings | 1.09 | % | 0.83 | % | 0.61 | % | 0.57 | % | 0.57 | % | ||||
| Subordinated debt | 5.55 | % | 5.68 | % | 5.51 | % | 3.84 | % | 1.52 | % | ||||
| Total cost of interest-bearing liabilities | 0.63 | % | 0.52 | % | 0.44 | % | 0.44 | % | 0.41 | % | ||||
| Tax-equivalent net interest revenue spread | 2.67 | % | 2.63 | % | 2.54 | % | 2.49 | % | 2.50 | % | ||||
| Effect of noninterest-bearing funding sources and other | 0.22 | % | 0.18 | % | 0.15 | % | 0.15 | % | 0.13 | % | ||||
| Tax-equivalent net interest margin | 2.89 | % | 2.81 | % | 2.69 | % | 2.64 | % | 2.63 | % | ||||
Yield calculations are shown on a tax equivalent basis at the statutory federal and state rates for the periods presented. The yield calculations exclude security trades that have been recorded on trade date with no corresponding interest income and the unrealized gains and losses. The yield calculation also includes average loan balances for which the accrual of interest has been discontinued and are net of unearned income. Yield/rate calculations are generally based on the conventions that determine how interest income and expense is accrued.
| CREDIT QUALITY INDICATORS -- UNAUDITED | |||||||||||||||||||
| BOK FINANCIAL CORPORATION | |||||||||||||||||||
| (in thousands, except ratios) | |||||||||||||||||||
| Three Months Ended | |||||||||||||||||||
| June 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sept. 30, 2016 | June 30, 2016 | |||||||||||||||
| Nonperforming assets: | |||||||||||||||||||
| Nonaccruing loans: | |||||||||||||||||||
| Commercial | $ | 197,157 | $ | 156,825 | $ | 178,953 | $ | 176,464 | $ | 181,989 | |||||||||
| Commercial real estate | 3,775 | 4,475 | 5,521 | 7,350 | 7,780 | ||||||||||||||
| Residential mortgage | 44,235 | 46,081 | 46,220 | 52,452 | 57,061 | ||||||||||||||
| Personal | 272 | 235 | 290 | 686 | 354 | ||||||||||||||
| Total nonaccruing loans | 245,439 | 207,616 | 230,984 | 236,952 | 247,184 | ||||||||||||||
| Accruing renegotiated loans guaranteed by U.S. government agencies | 80,624 | 83,577 | 81,370 | 80,306 | 78,806 | ||||||||||||||
| Real estate and other repossessed assets | 39,436 | 42,726 | 44,287 | 31,941 | 24,054 | ||||||||||||||
| Total nonperforming assets | $ | 365,499 | $ | 333,919 | $ | 356,641 | $ | 349,199 | $ | 350,044 | |||||||||
| Total nonperforming assets excluding those guaranteed by U.S. government agencies | $ | 275,823 | $ | 240,234 | $ | 263,425 | $ | 253,461 | $ | 251,497 | |||||||||
| Nonaccruing loans by loan class: | |||||||||||||||||||
| Commercial: | |||||||||||||||||||
| Energy | $ | 123,992 | $ | 110,425 | $ | 132,499 | $ | 142,966 | $ | 168,145 | |||||||||
| Services | 7,754 | 7,713 | 8,173 | 8,477 | 9,388 | ||||||||||||||
| Wholesale / retail | 10,620 | 11,090 | 11,407 | 2,453 | 2,772 | ||||||||||||||
| Manufacturing | 9,656 | 5,907 | 4,931 | 274 | 293 | ||||||||||||||
| Healthcare | 24,505 | 909 | 825 | 855 | 875 | ||||||||||||||
| Other commercial and industrial | 20,630 | 20,781 | 21,118 | 21,439 | 516 | ||||||||||||||
| Total commercial | 197,157 | 156,825 | 178,953 | 176,464 | 181,989 | ||||||||||||||
| Commercial real estate: | |||||||||||||||||||
| Residential construction and land development | 2,051 | 2,616 | 3,433 | 3,739 | 4,261 | ||||||||||||||
| Retail | 301 | 314 | 326 | 1,249 | 1,265 | ||||||||||||||
| Office | 396 | 413 | 426 | 882 | 606 | ||||||||||||||
| Multifamily | 10 | 24 | 38 | 51 | 65 | ||||||||||||||
| Industrial | — | 76 | 76 | 76 | 76 | ||||||||||||||
| Other commercial real estate | 1,017 | 1,032 | 1,222 | 1,353 | 1,507 | ||||||||||||||
| Total commercial real estate | 3,775 | 4,475 | 5,521 | 7,350 | 7,780 | ||||||||||||||
| Residential mortgage: | |||||||||||||||||||
| Permanent mortgage | 23,415 | 24,188 | 22,855 | 25,956 | 27,228 | ||||||||||||||
| Permanent mortgage guaranteed by U.S. government agencies | 9,052 | 10,108 | 11,846 | 15,432 | 19,741 | ||||||||||||||
| Home equity | 11,768 | 11,785 | 11,519 | 11,064 | 10,092 | ||||||||||||||
| Total residential mortgage | 44,235 | 46,081 | 46,220 | 52,452 | 57,061 | ||||||||||||||
| Personal | 272 | 235 | 290 | 686 | 354 | ||||||||||||||
| Total nonaccruing loans | $ | 245,439 | $ | 207,616 | $ | 230,984 | $ | 236,952 | $ | 247,184 | |||||||||
| Performing loans 90 days past due1 | $ | 1,414 | $ | 95 | $ | 5 | $ | 3,839 | $ | 2,899 | |||||||||
| Gross charge-offs | $ | (2,872 | ) | $ | (2,153 | ) | $ | (1,651 | ) | $ | (8,101 | ) | $ | (8,845 | ) | ||||
| Recoveries | 1,214 | 2,900 | 2,813 | 2,038 | 1,386 | ||||||||||||||
| Net recoveries (charge-offs) | $ | (1,658 | ) | $ | 747 | $ | 1,162 | $ | (6,063 | ) | $ | (7,459 | ) | ||||||
| Provision for credit losses | $ | — | $ | — | $ | — | $ | 10,000 | $ | 20,000 | |||||||||
| Allowance for loan losses to period end loans | 1.46 | % | 1.46 | % | 1.45 | % | 1.49 | % | 1.48 | % | |||||||||
| Combined allowance for credit losses to period end loans | 1.49 | % | 1.52 | % | 1.52 | % | 1.56 | % | 1.54 | % | |||||||||
| Nonperforming assets to period end loans and repossessed assets | 2.12 | % | 1.96 | % | 2.09 | % | 2.12 | % | 2.13 | % | |||||||||
| Net charge-offs (annualized) to average loans | 0.04 | % | (0.02 | )% | (0.03 | )% | 0.15 | % | 0.18 | % | |||||||||
| Allowance for loan losses to nonaccruing loans1 | 105.78 | % | 125.92 | % | 112.33 | % | 110.65 | % | 106.95 | % | |||||||||
| Combined allowance for credit losses to nonaccruing loans1 | 108.51 | % | 130.70 | % | 117.46 | % | 115.67 | % | 110.93 | % | |||||||||
1 Excludes residential mortgage loans guaranteed by agencies of the U.S. government.