TULSA, Okla., April 27, 2016 (GLOBE NEWSWIRE) -- BOK Financial Corporation (Nasdaq:BOKF) reported net income of $42.6 million or $0.64 per diluted share for the first quarter of 2016. Net income was $59.6 million or $0.89 per diluted share for the fourth quarter of 2015 and $74.8 million or $1.08 per diluted share for the first quarter of 2015.
Steven G. Bradshaw, president and chief executive officer, stated, “We earned $43 million in the first quarter despite a number of challenges including a higher loan loss provision necessitated by the extended commodities downturn and its impact on our energy loan portfolio. In addition, a significant decrease in primary mortgage interest rates during the quarter resulted in a higher-than-expected net decrease in the fair value of our mortgage servicing right asset. Finally, expenses were elevated due to a number of noteworthy items in the quarter including accruals for legal matters, higher deposit insurance expense, and a purchase accounting adjustment in one of our merchant banking investments. Despite these challenges, our business fundamentals remained strong and we continued to grow loans, assets under management, net interest income, and operating revenue during the quarter."
Stacy Kymes, executive vice president, Corporate Banking, added, “We expect total loan loss provision for the full year at the high end of our $60 to $80 million guidance range, with the majority of this expected in the first half of the year. This is due to continued credit migration in the energy portfolio, as anticipated. In addition, while loan growth was muted in the first quarter, we continue to have strong new business development pipelines and believe that our targeted loan growth of mid single digits for the full year remains achievable."
First Quarter 2016 Highlights
- Net interest revenue totaled $182.6 million for the first quarter of 2016, up $1.3 million over the fourth quarter of 2015. Net interest margin increased to 2.65 percent for the first quarter of 2016, compared to 2.64 percent for the fourth quarter of 2015. Average earning assets increased $464 million during the first quarter of 2016, primarily related to a $405 million increase in average loan balances.
- Fees and commissions revenue totaled $165.6 million for the first quarter of 2016, an increase of $9.8 million over the prior quarter. Mortgage banking revenue increased $9.4 million due to higher loan production volume.
- Changes in the fair value of mortgage servicing rights, net of economic hedges, decreased pre-tax net income in the first quarter of 2016 by $11.4 million and increased pre-tax net income in the fourth quarter of 2015 by $2.6 million.
- Operating expense was $244.9 million for the first quarter, an increase of $12.3 million over the previous quarter. Non-personnel expense increased $9.7 million primarily due to several litigation accruals, a post-acquisition valuation adjustment to a consolidated merchant banking investment and higher deposit insurance costs. Personnel expense increased $2.7 million.
- A $35.0 million provision for credit losses was recorded in the first quarter of 2016 compared to a $22.5 million provision in the fourth quarter of 2015. The additional provision was largely a result of the extended decline in commodity prices and its impact on the energy loan portfolio. Net loans charged off totaled $22.5 million in the first quarter of 2016, compared to $3.0 million in the previous quarter.
- The combined allowance for credit losses totaled $240 million or 1.50 percent of outstanding loans at March 31, 2016 compared to $227 million or 1.43 percent of outstanding loans at December 31, 2015. The portion of the combined allowance attributed to the energy portfolio totaled 3.19 percent of outstanding energy loans at March 31, 2016, an increase from 2.89 percent of outstanding energy loans at December 31, 2015.
- Nonperforming assets that are not guaranteed by U.S. government agencies totaled $252 million or 1.59 percent of outstanding loans and repossessed assets (excluding those guaranteed by U.S. government agencies) at March 31, 2016 and $156 million or 0.99 percent of outstanding loans and repossessed assets (excluding those guaranteed by U.S. government agencies) at December 31, 2015. Nonperforming energy loans increased $98 million during the first quarter.
- Average loans increased by $405 million over the previous quarter, primarily due to growth in commercial and commercial real estate loans. Period-end outstanding loan balances increased $81 million to $16.0 billion at March 31, 2016.
- Average deposits were largely unchanged compared to the previous quarter. Decreased demand and time deposit balances were offset by growth in interest-bearing transaction accounts. Period-end deposits were $20.4 billion at March 31, 2016, a decrease of $670 million from December 31, 2015.
- The common equity Tier 1 capital ratio at March 31, 2016 was 12.00 percent. Other regulatory capital ratios were Tier 1 capital ratio, 12.00 percent, total capital ratio, 13.21 percent and leverage ratio, 9.12 percent. At December 31, 2015, the common equity Tier 1 capital ratio was 12.13 percent, the Tier 1 capital ratio was 12.13 percent, total capital ratio was 13.30 percent, and leverage ratio was 9.25 percent.
- The company paid a regular quarterly cash dividend of $28 million or $0.43 per common share during the first quarter of 2016. On April 26, 2016, the board of directors approved a quarterly cash dividend of $0.43 per common share payable on or about May 27, 2016 to shareholders of record as of May 13, 2016.
Net Interest Revenue
Net interest revenue was $182.6 million for the first quarter of 2016, up $1.3 million over the fourth quarter of 2015.
Net interest margin was 2.65 percent for the first quarter of 2016, an increase of one basis point over the fourth quarter of 2015. The yield on average earning assets was 2.92 percent, an increase of 6 basis points over the prior quarter. The loan portfolio yield increased 2 basis points to 3.57 percent. The yield on the available for sale securities portfolio increased 4 basis points to 2.08 percent. Funding costs were 0.40 percent, up 6 basis points compared to the prior quarter. Increased earning asset yields and funding costs were primarily related to the full quarter impact of the increase in the federal funds rate by the Federal Reserve in the fourth quarter of 2015.
Average earning assets increased $464 million during the first quarter of 2016. Average loan balances increased $405 million, primarily due to growth in commercial and commercial real estate balances. The average balance of interest-bearing cash and cash equivalents increased $57 million over the prior quarter. Average interest-bearing deposit balances increased $128 million compared to the fourth quarter of 2015. The average balance of borrowed funds increased $704 million.
Fees and Commissions Revenue
Fees and commissions revenue totaled $165.6 million for the first quarter of 2016, an increase of $9.8 million over the fourth quarter of 2015, primarily due to an increase in mortgage banking revenue.
Mortgage banking revenue totaled $34.4 million for the first quarter of 2016, a $9.4 million increase over the fourth quarter of 2015. Revenue from mortgage loan production increased $8.9 million primarily due to increased volume of mortgage loan commitments during the quarter. Outstanding mortgage loan commitments at March 31 increased $302 million or 50 percent over December 31 as average primary mortgage interest rates were 15 basis points lower than in the fourth quarter of 2015. Total mortgage loans originated during the first quarter decreased $121 million or 9 percent compared to the previous quarter.
Brokerage and trading revenue increased $2.1 million as growth in securities trading, investment banking and retail brokerage fees was partially offset by lower customer hedging revenue. Fiduciary and asset management revenue increased $891 thousand.
Operating Expense
Total operating expense was $244.9 million for the first quarter of 2016, an increase of $12.3 million compared to the fourth quarter of 2015.
Personnel costs increased by $2.7 million compared to the fourth quarter of 2015. Payroll tax expense increased $4.2 million, partially offset by a $2.5 million decrease in incentive compensation expense.
Non-personnel expense increased $9.7 million compared to the fourth quarter of 2015. Other expense increased $6.5 million. We increased litigation accruals by $4.1 million during the quarter for matters previously disclosed in the notes to our financial statements. The additional accruals were based on information received in the first quarter. We also recorded a $2.7 million post-acquisition valuation adjustment to a consolidated merchant banking investment, $1.1 million of which is attributable to non-controlling interests. Deposit insurance expense increased $1.9 million, primarily due to an increase in criticized and classified asset levels, an input to the deposit insurance assessment, related to falling energy prices. Professional fees and services expense also increased $1.4 million. These increases were partially offset by a $2.7 million seasonal decrease in business promotion expense.
Loans, Deposits and Capital
Loans
Outstanding loans were $16.0 billion at March 31, 2016, an increase of $81 million over the previous quarter, primarily due to growth in commercial real estate and commercial balances. Residential mortgage balances were largely unchanged and personal loan balances decreased compared to the prior quarter.
Outstanding commercial loan balances increased $36 million over December 31, 2015. Healthcare sector loans grew by $112 million, manufacturing sector loans were up $44 million and wholesale/retail sector loans increased $30 million. Service sector loans decreased $55 million and energy loan balances decreased $68 million compared to December 31, 2015. Unfunded energy loan commitments decreased by $269 million during the first quarter to $2.1 billion.
Commercial real estate loans grew by $111 million over December 31, 2015. Loans secured by office buildings increased $58 million primarily in the Colorado and Oklahoma markets. Other commercial real estate balances grew by $44 million. Retail sector and residential construction and land development loan balances also increased, partially offset by a decrease in multifamily residential loans.
Deposits
Period-end deposits totaled $20.4 billion at March 31, 2016, a decrease of $670 million compared to December 31, 2015. Demand deposit balances decreased $346 million, interest-bearing transaction deposits decreased $289 million and time deposits decreased $65 million. Among the lines of business, Commercial Banking deposits decreased $519 million and Wealth Management deposits decreased $177 million compared to December 31, 2015. Consumer Banking deposits increased $55 million. The overall decrease in deposits was due to normal post-year-end activity and reductions by our energy-related customers.
Capital
The company's common equity Tier 1 capital ratio was 12.00 percent at March 31, 2016. In addition, the company's Tier 1 capital ratio was 12.00 percent, total capital ratio was 13.21 percent and leverage ratio was 9.12 percent at March 31, 2016. At December 31, 2015, the company's common equity Tier 1 capital ratio was 12.13 percent, Tier 1 capital ratio was 12.13 percent, total capital ratio was 13.30 percent, and leverage ratio was 9.25 percent.
The company's tangible common equity ratio, a non-GAAP measure, was 9.34 percent at March 31, 2016 and 9.02 percent at December 31, 2015. 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 $349 million or 2.18 percent of outstanding loans and repossessed assets at March 31, 2016 compared to $252 million or 1.58 percent at December 31, 2015. Nonperforming assets that are not guaranteed by U.S. government agencies totaled $252 million or 1.59 percent of outstanding loans and repossessed assets (excluding those guaranteed by U.S. government agencies) at March 31, 2016 and $156 million or 0.99 percent at December 31, 2015, an increase of $96 million.
Nonaccruing loans totaled $242 million or 1.51 percent of outstanding loans at March 31, 2016, up from $147 million or 0.92 percent of outstanding loans at December 31, 2015, primarily due to a $98 million increase in nonaccruing energy loans. New nonaccruing loans identified in the first quarter totaled $179 million, offset by $55 million in payments received, $24 million in charge-offs and $2.2 million in foreclosures and repossessions. At March 31, 2016, nonaccruing commercial loans totaled $175 million or 1.70 percent of outstanding commercial loans, nonaccruing commercial real estate loans totaled $9.3 million or 0.28 percent of outstanding commercial real estate loans and nonaccruing residential mortgage loans totaled $58 million or 3.08 percent of outstanding residential mortgage 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, increased to $460 million at March 31 from $155 million at December 31. The increase largely resulted from a $273 million increase in potential problem energy loans.
Net loans charged off totaled $22.5 million for the first quarter of 2016, up from $3.0 million in the fourth quarter of 2015. Gross charge-offs totaled $24.0 million for the first quarter, compared to $4.9 million for the previous quarter. First quarter charge-offs largely came from the energy loan portfolio. Recoveries totaled $1.5 million for the first quarter of 2016 and $1.9 million for the fourth quarter of 2015.
After evaluating all credit factors, the company recorded a $35.0 million provision for credit losses during the first quarter of 2016, primarily due to continued credit migration in the energy portfolio. Low energy prices have now extended beyond one year and no meaningful recovery is expected in the near term. The company recorded a $22.5 million provision for credit losses in the previous quarter.
The combined allowance for credit losses totaled $240 million or 1.50 percent of outstanding loans and 108 percent of nonaccruing loans at March 31, 2016. The allowance for loan losses was $233 million and the accrual for off-balance sheet credit losses was $6.6 million.
Energy Portfolio Credit Quality
The company's $3.0 billion energy portfolio consists of 82 percent of loans to exploration and production companies, 9 percent to energy services companies and 9 percent to midstream and other energy borrowers. Substantially all of the loans to exploration and production companies are secured by first lien positions in established energy reserves. Only $10 million of these loans are in junior lien positions. None represent higher-risk mezzanine financing or subordinated debt and none are high-yield debt.
The updated OCC Oil and Gas Lending Handbook and the recently completed 2016 shared national credit review heavily weighted loan grading by the ability to repay a borrower's total debt, regardless of collateral position. This change in grading methodology significantly increased nonaccruing and potential problem energy loans during the first quarter. Loss measurement guidance still considers collateral position in each credit. Because substantially all of our energy credits are supported by senior lien positions, the historic relationship between loan classification and loss exposure may be more difficult to correlate. The portion of the combined allowance attributed to the energy portfolio totaled $97 million or 3.19 percent of outstanding energy loans at March 31, 2016. Management believes this is appropriate based on the current risk characteristics of the energy portfolio.
Securities and Derivatives
The fair value of the available for sale securities portfolio totaled $8.9 billion at March 31, 2016, a decrease of $157 million compared to December 31, 2015. At March 31, 2016, the available for sale portfolio consisted primarily of $5.7 billion of residential mortgage-backed securities fully backed by U.S. government agencies and $2.9 billion of commercial mortgage-backed securities fully backed by U.S. government agencies.
At March 31, 2016, the available for sale securities portfolio had a net unrealized gain of $155 million compared to a net unrealized gain of $38 million at December 31, 2015 primarily due to changes in interest rates during the quarter. Net unrealized gains on residential mortgage-backed securities issued by U.S. government agencies at March 31, 2016 increased $67 million during the first quarter to $104 million. Commercial mortgage-backed securities had a net unrealized gain of $38 million at March 31, 2016, compared to a net unrealized loss of $13 million at December 31, 2015.
In the first quarter of 2016, the company recognized a $4.0 million net gain from the sale of $469 million of available for sale securities. Securities were sold either because they had reached their expected maximum potential return or to move into securities that will perform better in the current rate environment. The company recognized $2.1 million of net gains from sales of $436 million of available for sale securities in the fourth quarter of 2015.
The company also maintains a portfolio of residential mortgage-backed securities issued by U.S. government agencies and interest rate derivative contracts as an economic hedge of the changes in the fair value of our mortgage servicing rights. Changes in the fair value of mortgage servicing rights are highly dependent on primary mortgage interest rates offered to borrowers and other factors. Changes in the fair value of securities and interest rate derivatives are highly dependent on secondary mortgage rates, or rates required by investors. Changes in the spread between primary and secondary mortgage rates cannot be effectively hedged and can cause significant earnings volatility.
The fair value of mortgage servicing rights decreased by $28.0 million during the first quarter of 2016. Primary mortgage rates fell during the quarter and we narrowed the forward-looking spread between primary mortgage interest rates and yields on mortgage-backed securities. The fair value of securities and interest rate derivative contracts held as an economic hedge increased by $16.6 million during the quarter due to increases in secondary mortgage rates. The fair value of mortgage servicing rights, net of economic hedges, increased $2.6 million in the fourth quarter of 2015, primarily due to an increase in residential mortgage interest rates.
Conference Call and Webcast
The company will hold a conference call at 9 a.m. Central time on Wednesday, April 27, 2016 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 1-412-902-6611. A conference call and webcast replay will also be available shortly after conclusion of the live call at www.bokf.com or by dialing 1-412-317-0088 and referencing conference ID # 10083650.
About BOK Financial Corporation
BOK Financial Corporation is a $31 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, BOSC, 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, Bank of Kansas City, Bank of Oklahoma, Bank of Texas and Colorado State Bank and Trust. Through its subsidiaries, the company provides commercial and consumer banking, investment and trust services, mortgage origination and servicing, and an electronic funds transfer network. For more information, visit www.bokf.com.
The company will continue to evaluate critical assumptions and estimates, such as the appropriateness of the allowance for credit losses and asset impairment as of March 31, 2016 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 -- UNAUDITED | |||||||||||
| BOK FINANCIAL CORPORATION | |||||||||||
| (In thousands) | |||||||||||
| March 31, 2016 | Dec. 31, 2015 | March 31, 2015 | |||||||||
| ASSETS | |||||||||||
| Cash and due from banks | $ | 481,510 | $ | 573,699 | $ | 490,683 | |||||
| Interest-bearing cash and cash equivalents | 1,831,162 | 2,069,900 | 2,119,987 | ||||||||
| Trading securities | 279,539 | 122,404 | 118,044 | ||||||||
| Investment securities | 576,047 | 597,836 | 634,587 | ||||||||
| Available for sale securities | 8,886,036 | 9,042,733 | 9,158,175 | ||||||||
| Fair value option securities | 418,887 | 444,217 | 434,077 | ||||||||
| Restricted equity securities | 314,590 | 273,684 | 212,685 | ||||||||
| Residential mortgage loans held for sale | 332,040 | 308,439 | 513,196 | ||||||||
| Loans: | |||||||||||
| Commercial | 10,288,425 | 10,252,531 | 9,391,163 | ||||||||
| Commercial real estate | 3,370,507 | 3,259,033 | 2,935,464 | ||||||||
| Residential mortgage | 1,869,309 | 1,876,893 | 1,926,999 | ||||||||
| Personal | 494,325 | 552,697 | 430,510 | ||||||||
| Total loans | 16,022,566 | 15,941,154 | 14,684,136 | ||||||||
| Allowance for loan losses | (233,156 | ) | (225,524 | ) | (197,686 | ) | |||||
| Loans, net of allowance | 15,789,410 | 15,715,630 | 14,486,450 | ||||||||
| Premises and equipment, net | 311,161 | 306,490 | 279,075 | ||||||||
| Receivables | 167,209 | 163,480 | 183,447 | ||||||||
| Goodwill | 383,789 | 385,461 | 377,780 | ||||||||
| Intangible assets, net | 44,944 | 43,909 | 33,286 | ||||||||
| Mortgage servicing rights | 196,055 | 218,605 | 175,051 | ||||||||
| Real estate and other repossessed assets, net | 29,896 | 30,731 | 45,551 | ||||||||
| Derivative contracts, net | 790,146 | 586,270 | 462,386 | ||||||||
| Cash surrender value of bank-owned life insurance | 305,510 | 303,335 | 296,192 | ||||||||
| Receivable on unsettled securities sales | 5,640 | 40,193 | 9,598 | ||||||||
| Other assets | 270,374 | 249,112 | 269,728 | ||||||||
| TOTAL ASSETS | $ | 31,413,945 | $ | 31,476,128 | $ | 30,299,978 | |||||
| LIABILITIES AND EQUITY | |||||||||||
| Deposits: | |||||||||||
| Demand | $ | 7,950,675 | $ | 8,296,888 | $ | 8,009,577 | |||||
| Interest-bearing transaction | 9,709,766 | 9,998,954 | 10,108,202 | ||||||||
| Savings | 416,505 | 386,252 | 383,790 | ||||||||
| Time | 2,341,374 | 2,406,064 | 2,651,778 | ||||||||
| Total deposits | 20,418,320 | 21,088,158 | 21,153,347 | ||||||||
| Funds purchased | 62,755 | 491,192 | 66,320 | ||||||||
| Repurchase agreements | 630,101 | 722,444 | 897,663 | ||||||||
| Other borrowings | 5,633,862 | 4,837,879 | 3,727,050 | ||||||||
| Subordinated debentures | 226,385 | 226,350 | 348,030 | ||||||||
| Accrued interest, taxes and expense | 148,711 | 119,584 | 147,184 | ||||||||
| Due on unsettled securities purchases | 19,508 | 16,897 | 25,935 | ||||||||
| Derivative contracts, net | 705,578 | 581,701 | 419,351 | ||||||||
| Other liabilities | 212,460 | 124,284 | 124,846 | ||||||||
| TOTAL LIABILITIES | 28,057,680 | 28,208,489 | 26,909,726 | ||||||||
| Shareholders' equity: | |||||||||||
| Capital, surplus and retained earnings | 3,228,446 | 3,208,969 | 3,266,858 | ||||||||
| Accumulated other comprehensive income | 93,109 | 21,587 | 90,303 | ||||||||
| TOTAL SHAREHOLDERS' EQUITY | 3,321,555 | 3,230,556 | 3,357,161 | ||||||||
| Non-controlling interests | 34,710 | 37,083 | 33,091 | ||||||||
| TOTAL EQUITY | 3,356,265 | 3,267,639 | 3,390,252 | ||||||||
| TOTAL LIABILITIES AND EQUITY | $ | 31,413,945 | $ | 31,476,128 | $ | 30,299,978 | |||||
| AVERAGE BALANCE SHEETS -- UNAUDITED | |||||||||||||||||||
| BOK FINANCIAL CORPORATION | |||||||||||||||||||
| (in thousands) | |||||||||||||||||||
| Three Months Ended | |||||||||||||||||||
| March 31, 2016 | Dec. 31, 2015 | Sept. 30, 2015 | June 30, 2015 | March 31, 2015 | |||||||||||||||
| ASSETS | |||||||||||||||||||
| Interest-bearing cash and cash equivalents | $ | 2,052,840 | $ | 1,995,945 | $ | 2,038,611 | $ | 2,002,456 | $ | 2,089,546 | |||||||||
| Trading securities | 188,100 | 150,402 | 179,098 | 127,391 | 140,968 | ||||||||||||||
| Investment securities | 587,465 | 602,369 | 616,091 | 628,489 | 642,825 | ||||||||||||||
| Available for sale securities | 8,951,435 | 8,971,090 | 8,942,261 | 9,063,006 | 9,101,464 | ||||||||||||||
| Fair value option securities | 450,478 | 435,449 | 429,951 | 435,294 | 404,775 | ||||||||||||||
| Restricted equity securities | 294,529 | 262,461 | 255,610 | 221,911 | 179,385 | ||||||||||||||
| Residential mortgage loans held for sale | 289,743 | 310,425 | 401,359 | 464,269 | 348,054 | ||||||||||||||
| Loans: | |||||||||||||||||||
| Commercial | 10,268,793 | 10,024,756 | 9,685,768 | 9,634,306 | 9,308,307 | ||||||||||||||
| Commercial real estate | 3,364,076 | 3,186,629 | 3,198,200 | 2,989,615 | 2,909,565 | ||||||||||||||
| Residential mortgage | 1,865,742 | 1,835,195 | 1,847,696 | 1,857,464 | 1,909,998 | ||||||||||||||
| Personal | 493,382 | 540,418 | 460,647 | 423,967 | 426,712 | ||||||||||||||
| Total loans | 15,991,993 | 15,586,998 | 15,192,311 | 14,905,352 | 14,554,582 | ||||||||||||||
| Allowance for loan losses | (234,116 | ) | (207,156 | ) | (202,829 | ) | (198,400 | ) | (194,948 | ) | |||||||||
| Total loans, net | 15,757,877 | 15,379,842 | 14,989,482 | 14,706,952 | 14,359,634 | ||||||||||||||
| Total earning assets | 28,572,467 | 28,107,983 | 27,852,463 | 27,649,768 | 27,266,651 | ||||||||||||||
| Cash and due from banks | 505,522 | 514,629 | 487,283 | 492,737 | 513,734 | ||||||||||||||
| Derivative contracts, net | 632,102 | 657,780 | 669,264 | 475,687 | 447,565 | ||||||||||||||
| Cash surrender value of bank-owned life insurance | 304,141 | 301,793 | 299,424 | 297,022 | 294,803 | ||||||||||||||
| Receivable on unsettled securities sales | 115,101 | 62,228 | 64,591 | 94,374 | 99,706 | ||||||||||||||
| Other assets | 1,379,138 | 1,435,763 | 1,396,708 | 1,454,484 | 1,348,245 | ||||||||||||||
| TOTAL ASSETS | $ | 31,508,471 | $ | 31,080,176 | $ | 30,769,733 | $ | 30,464,072 | $ | 29,970,704 | |||||||||
| LIABILITIES AND EQUITY | |||||||||||||||||||
| Deposits: | |||||||||||||||||||
| Demand | $ | 8,105,756 | $ | 8,312,961 | $ | 7,994,607 | $ | 7,996,717 | $ | 7,885,485 | |||||||||
| Interest-bearing transaction | 9,756,843 | 9,527,491 | 9,760,839 | 10,063,589 | 10,338,396 | ||||||||||||||
| Savings | 397,479 | 382,284 | 379,828 | 381,833 | 365,835 | ||||||||||||||
| Time | 2,366,543 | 2,482,714 | 2,557,874 | 2,651,820 | 2,659,323 | ||||||||||||||
| Total deposits | 20,626,621 | 20,705,450 | 20,693,148 | 21,093,959 | 21,249,039 | ||||||||||||||
| Funds purchased | 112,211 | 73,220 | 70,281 | 63,312 | 69,730 | ||||||||||||||
| Repurchase agreements | 662,640 | 623,921 | 672,085 | 773,977 | 1,000,839 | ||||||||||||||
| Other borrowings | 5,583,917 | 4,957,175 | 4,779,981 | 4,001,479 | 3,084,214 | ||||||||||||||
| Subordinated debentures | 226,368 | 226,332 | 226,296 | 307,903 | 348,007 | ||||||||||||||
| Derivative contracts, net | 544,722 | 632,699 | 597,908 | 455,431 | 418,848 | ||||||||||||||
| Due on unsettled securities purchases | 158,050 | 248,811 | 90,135 | 151,369 | 205,096 | ||||||||||||||
| Other liabilities | 268,705 | 251,953 | 240,704 | 235,173 | 243,370 | ||||||||||||||
| TOTAL LIABILITIES | 28,183,234 | 27,719,561 | 27,370,538 | 27,082,603 | 26,619,143 | ||||||||||||||
| Total equity | 3,325,237 | 3,360,615 | 3,399,195 | 3,381,469 | 3,351,561 | ||||||||||||||
| TOTAL LIABILITIES AND EQUITY | $ | 31,508,471 | $ | 31,080,176 | $ | 30,769,733 | $ | 30,464,072 | $ | 29,970,704 | |||||||||
| STATEMENTS OF EARNINGS -- UNAUDITED | |||||||
| BOK FINANCIAL CORPORATION | |||||||
| (in thousands, except per share data) | |||||||
| Three Months Ended | |||||||
| March 31, | |||||||
| 2016 | 2015 | ||||||
| Interest revenue | $ | 201,796 | $ | 184,569 | |||
| Interest expense | 19,224 | 16,843 | |||||
| Net interest revenue | 182,572 | 167,726 | |||||
| Provision for credit losses | 35,000 | — | |||||
| Net interest revenue after provision for credit losses | 147,572 | 167,726 | |||||
| Other operating revenue: | |||||||
| Brokerage and trading revenue | 32,341 | 31,707 | |||||
| Transaction card revenue | 32,354 | 31,010 | |||||
| Fiduciary and asset management revenue | 32,056 | 31,469 | |||||
| Deposit service charges and fees | 22,542 | 21,684 | |||||
| Mortgage banking revenue | 34,430 | 39,320 | |||||
| Other revenue | 11,904 | 10,801 | |||||
| Total fees and commissions | 165,627 | 165,991 | |||||
| Other gains, net | 1,560 | 755 | |||||
| Gain on derivatives, net | 7,138 | 911 | |||||
| Gain on fair value option securities, net | 9,443 | 2,647 | |||||
| Change in fair value of mortgage servicing rights | (27,988 | ) | (8,522 | ) | |||
| Gain on available for sale securities, net | 3,964 | 4,327 | |||||
| Total other-than-temporary impairment losses | — | (781 | ) | ||||
| Portion of loss recognized in other comprehensive income | — | 689 | |||||
| Net impairment losses recognized in earnings | — | (92 | ) | ||||
| Total other operating revenue | 159,744 | 166,017 | |||||
| Other operating expense: | |||||||
| Personnel | 135,843 | 128,548 | |||||
| Business promotion | 5,696 | 5,748 | |||||
| Professional fees and services | 11,759 | 10,059 | |||||
| Net occupancy and equipment | 18,766 | 19,044 | |||||
| Insurance | 7,265 | 4,980 | |||||
| Data processing and communications | 32,017 | 29,772 | |||||
| Printing, postage and supplies | 3,907 | 3,461 | |||||
| Net losses and operating expenses of repossessed assets | 1,070 | 613 | |||||
| Amortization of intangible assets | 1,159 | 1,090 | |||||
| Mortgage banking costs | 12,379 | 10,167 | |||||
| Other expense | 15,039 | 6,783 | |||||
| Total other operating expense | 244,900 | 220,265 | |||||
| Net income before taxes | 62,416 | 113,478 | |||||
| Federal and state income taxes | 21,428 | 38,384 | |||||
| Net income | 40,988 | 75,094 | |||||
| Net income (loss) attributable to non-controlling interests | (1,576 | ) | 251 | ||||
| Net income attributable to BOK Financial Corporation shareholders | $ | 42,564 | $ | 74,843 | |||
| Average shares outstanding: | |||||||
| Basic | 65,296,541 | 68,254,780 | |||||
| Diluted | 65,331,428 | 68,344,886 | |||||
| Net income per share: | |||||||
| Basic | $ | 0.64 | $ | 1.08 | |||
| Diluted | $ | 0.64 | $ | 1.08 | |||
| FINANCIAL HIGHLIGHTS -- UNAUDITED | |||||||||||||||||||
| BOK FINANCIAL CORPORATION | |||||||||||||||||||
| (in thousands, except ratio and share data) | |||||||||||||||||||
| Three Months Ended | |||||||||||||||||||
| March 31, 2016 | Dec. 31, 2015 | Sept. 30, 2015 | June 30, 2015 | March 31, 2015 | |||||||||||||||
| Capital: | |||||||||||||||||||
| Period-end shareholders' equity | $ | 3,321,555 | $ | 3,230,556 | $ | 3,377,226 | $ | 3,375,632 | $ | 3,357,161 | |||||||||
| Risk weighted assets | $ | 23,707,824 | $ | 23,429,897 | $ | 22,706,537 | $ | 22,533,295 | $ | 22,053,246 | |||||||||
| Risk-based capital ratios: | |||||||||||||||||||
| Common equity tier 1 | 12.00 | % | 12.13 | % | 12.78 | % | 13.01 | % | 13.07 | % | |||||||||
| Tier 1 | 12.00 | % | 12.13 | % | 12.78 | % | 13.01 | % | 13.07 | % | |||||||||
| Total capital | 13.21 | % | 13.30 | % | 13.89 | % | 14.11 | % | 14.39 | % | |||||||||
| Leverage ratio | 9.12 | % | 9.25 | % | 9.55 | % | 9.75 | % | 9.74 | % | |||||||||
| Tangible common equity ratio1 | 9.34 | % | 9.02 | % | 9.78 | % | 9.72 | % | 9.86 | % | |||||||||
| Common stock: | |||||||||||||||||||
| Book value per share | $ | 50.21 | $ | 49.03 | $ | 49.88 | $ | 48.96 | $ | 48.71 | |||||||||
| Market value per share: | |||||||||||||||||||
| High | $ | 60.16 | $ | 74.73 | $ | 70.26 | $ | 71.66 | $ | 61.78 | |||||||||
| Low | $ | 43.74 | $ | 58.25 | $ | 57.04 | $ | 59.59 | $ | 52.63 | |||||||||
| Cash dividends paid | $ | 28,294 | $ | 28,967 | $ | 28,766 | $ | 28,841 | $ | 28,952 | |||||||||
| Dividend payout ratio | 66.47 | % | 48.60 | % | 38.41 | % | 36.40 | % | 38.68 | % | |||||||||
| Shares outstanding, net | 66,155,103 | 65,894,032 | 67,713,031 | 68,945,139 | 68,922,314 | ||||||||||||||
| Stock buy-back program: | |||||||||||||||||||
| Shares repurchased | — | 1,874,074 | 1,258,348 | — | 502,156 | ||||||||||||||
| Amount | $ | — | $ | 119,780 | $ | 80,276 | $ | — | $ | 29,484 | |||||||||
| Average price per share | $ | — | $ | 63.91 | $ | 63.79 | $ | — | $ | 58.71 | |||||||||
| Performance ratios (quarter annualized): | |||||||||||||||||||
| Return on average assets | 0.54 | % | 0.76 | % | 0.97 | % | 1.04 | % | 1.01 | % | |||||||||
| Return on average equity | 5.21 | % | 7.12 | % | 8.84 | % | 9.50 | % | 9.15 | % | |||||||||
| Net interest margin | 2.65 | % | 2.64 | % | 2.61 | % | 2.61 | % | 2.55 | % | |||||||||
| Efficiency ratio | 69.05 | % | 67.93 | % | 64.34 | % | 64.21 | % | 64.91 | % | |||||||||
| Reconciliation of non-GAAP measures: | |||||||||||||||||||
| 1 Tangible common equity ratio: | |||||||||||||||||||
| Total shareholders' equity | $ | 3,321,555 | $ | 3,230,556 | $ | 3,377,226 | $ | 3,375,632 | $ | 3,357,161 | |||||||||
| Less: Goodwill and intangible assets, net | 428,733 | 429,370 | 430,460 | 431,515 | 411,066 | ||||||||||||||
| Tangible common equity | $ | 2,892,822 | $ | 2,801,186 | $ | 2,946,766 | $ | 2,944,117 | $ | 2,946,095 | |||||||||
| Total assets | $ | 31,413,945 | $ | 31,476,128 | $ | 30,566,905 | $ | 30,725,563 | $ | 30,299,978 | |||||||||
| Less: Goodwill and intangible assets, net | 428,733 | 429,370 | 430,460 | 431,515 | 411,066 | ||||||||||||||
| Tangible assets | $ | 30,985,212 | $ | 31,046,758 | $ | 30,136,445 | $ | 30,294,048 | $ | 29,888,912 | |||||||||
| Tangible common equity ratio | 9.34 | % | 9.02 | % | 9.78 | % | 9.72 | % | 9.86 | % | |||||||||
| Other data: | |||||||||||||||||||
| Fiduciary assets | $ | 39,113,305 | $ | 38,333,638 | $ | 37,780,669 | $ | 38,772,018 | $ | 37,511,746 | |||||||||
| Tax equivalent adjustment | $ | 4,385 | $ | 3,222 | $ | 3,244 | $ | 3,035 | $ | 2,956 | |||||||||
| Net unrealized gain on available for sale securities | $ | 155,236 | $ | 38,109 | $ | 144,884 | $ | 89,158 | $ | 152,107 | |||||||||
| Mortgage banking: | |||||||||||||||||||
| Mortgage servicing portfolio | $ | 20,294,662 | $ | 19,678,226 | $ | 18,928,726 | $ | 17,979,623 | $ | 16,937,128 | |||||||||
| Mortgage commitments | $ | 902,986 | $ | 601,147 | $ | 742,742 | $ | 849,619 | $ | 824,036 | |||||||||
| Mortgage loans funded for sale | $ | 1,244,015 | $ | 1,365,431 | $ | 1,614,225 | $ | 1,828,230 | $ | 1,565,016 | |||||||||
| Mortgage loan refinances to total fundings | 49 | % | 41 | % | 30 | % | 40 | % | 56 | % | |||||||||
| Mortgage loans sold | $ | 1,239,391 | $ | 1,424,527 | $ | 1,778,099 | $ | 1,861,968 | $ | 1,382,042 | |||||||||
| Net realized gains on mortgage loans sold | $ | 10,779 | $ | 15,705 | $ | 18,968 | $ | 23,856 | $ | 17,251 | |||||||||
| Change in net unrealized gain on mortgage loans held for sale | 8,198 | (5,615 | ) | (251 | ) | (743 | ) | 8,789 | |||||||||||
| Total production revenue | 18,977 | 10,090 | 18,717 | 23,113 | 26,040 | ||||||||||||||
| Servicing revenue | 15,453 | 14,949 | 14,453 | 13,733 | 13,280 | ||||||||||||||
| Total mortgage banking revenue | $ | 34,430 | $ | 25,039 | $ | 33,170 | $ | 36,846 | $ | 39,320 | |||||||||
| Gain (loss) on mortgage servicing rights, net of economic hedge: | |||||||||||||||||||
| Gain (loss) on mortgage hedge derivative contracts, net | $ | 7,138 | $ | (732 | ) | $ | 1,460 | $ | (1,005 | ) | $ | 911 | |||||||
| Gain (loss) on fair value option securities, net | 9,443 | (4,127 | ) | 5,926 | (8,130 | ) | 2,647 | ||||||||||||
| Gain (loss) on economic hedge of mortgage servicing rights | 16,581 | (4,859 | ) | 7,386 | (9,135 | ) | 3,558 | ||||||||||||
| Gain (loss) on changes in fair value of mortgage servicing rights | (27,988 | ) | 7,416 | (11,757 | ) | 8,010 | (8,522 | ) | |||||||||||
| Gain (loss) on changes in fair value of mortgage servicing rights, net of economic hedges | $ | (11,407 | ) | $ | 2,557 | $ | (4,371 | ) | $ | (1,125 | ) | $ | (4,964 | ) | |||||
| Net interest revenue on fair value option securities | $ | 2,033 | $ | 2,137 | $ | 2,140 | $ | 1,985 | $ | 1,739 | |||||||||
| QUARTERLY EARNINGS TREND -- UNAUDITED | |||||||||||||||||||
| BOK FINANCIAL CORPORATION | |||||||||||||||||||
| (in thousands, except ratio and per share data) | |||||||||||||||||||
| Three Months Ended | |||||||||||||||||||
| March 31, 2016 | Dec. 31, 2015 | Sept. 30, 2015 | June 30, 2015 | March 31, 2015 | |||||||||||||||
| Interest revenue | $ | 201,796 | $ | 196,782 | $ | 193,664 | $ | 191,813 | $ | 184,569 | |||||||||
| Interest expense | 19,224 | 15,521 | 15,028 | 16,082 | 16,843 | ||||||||||||||
| Net interest revenue | 182,572 | 181,261 | 178,636 | 175,731 | 167,726 | ||||||||||||||
| Provision for credit losses | 35,000 | 22,500 | 7,500 | 4,000 | — | ||||||||||||||
| Net interest revenue after provision for credit losses | 147,572 | 158,761 | 171,136 | 171,731 | 167,726 | ||||||||||||||
| Other operating revenue: | |||||||||||||||||||
| Brokerage and trading revenue | 32,341 | 30,255 | 31,582 | 36,012 | 31,707 | ||||||||||||||
| Transaction card revenue | 32,354 | 32,319 | 32,514 | 32,778 | 31,010 | ||||||||||||||
| Fiduciary and asset management revenue | 32,056 | 31,165 | 30,807 | 32,712 | 31,469 | ||||||||||||||
| Deposit service charges and fees | 22,542 | 22,813 | 23,606 | 22,328 | 21,684 | ||||||||||||||
| Mortgage banking revenue | 34,430 | 25,039 | 33,170 | 36,846 | 39,320 | ||||||||||||||
| Other revenue | 11,904 | 14,233 | 12,978 | 11,871 | 10,801 | ||||||||||||||
| Total fees and commissions | 165,627 | 155,824 | 164,657 | 172,547 | 165,991 | ||||||||||||||
| Other gains, net | 1,560 | 2,329 | 1,161 | 1,457 | 755 | ||||||||||||||
| Gain (loss) on derivatives, net | 7,138 | (732 | ) | 1,283 | (1,032 | ) | 911 | ||||||||||||
| Gain (loss) on fair value option securities, net | 9,443 | (4,127 | ) | 5,926 | (8,130 | ) | 2,647 | ||||||||||||
| Change in fair value of mortgage servicing rights | (27,988 | ) | 7,416 | (11,757 | ) | 8,010 | (8,522 | ) | |||||||||||
| Gain on available for sale securities, net | 3,964 | 2,132 | 2,166 | 3,433 | 4,327 | ||||||||||||||
| Total other-than-temporary impairment losses | — | (2,114 | ) | — | — | (781 | ) | ||||||||||||
| Portion of loss recognized in other comprehensive income | — | 387 | — | — | 689 | ||||||||||||||
| Net impairment losses recognized in earnings | — | (1,727 | ) | — | — | (92 | ) | ||||||||||||
| Total other operating revenue | 159,744 | 161,115 | 163,436 | 176,285 | 166,017 | ||||||||||||||
| Other operating expense: | |||||||||||||||||||
| Personnel | 135,843 | 133,182 | 129,062 | 132,695 | 128,548 | ||||||||||||||
| Business promotion | 5,696 | 8,416 | 5,922 | 7,765 | 5,748 | ||||||||||||||
| Charitable contributions to BOKF Foundation | — | — | 796 | — | — | ||||||||||||||
| Professional fees and services | 11,759 | 10,357 | 10,147 | 9,560 | 10,059 | ||||||||||||||
| Net occupancy and equipment | 18,766 | 19,356 | 18,689 | 18,927 | 19,044 | ||||||||||||||
| Insurance | 7,265 | 5,415 | 4,864 | 5,116 | 4,980 | ||||||||||||||
| Data processing and communications | 32,017 | 31,248 | 30,708 | 30,655 | 29,772 | ||||||||||||||
| Printing, postage and supplies | 3,907 | 3,108 | 3,376 | 3,553 | 3,461 | ||||||||||||||
| Net losses and operating expenses of repossessed assets | 1,070 | 343 | 267 | 223 | 613 | ||||||||||||||
| Amortization of intangible assets | 1,159 | 1,090 | 1,089 | 1,090 | 1,090 | ||||||||||||||
| Mortgage banking costs | 12,379 | 11,496 | 9,107 | 8,227 | 10,167 | ||||||||||||||
| Other expense | 15,039 | 8,547 | 10,601 | 9,302 | 6,783 | ||||||||||||||
| Total other operating expense | 244,900 | 232,558 | 224,628 | 227,113 | 220,265 | ||||||||||||||
| Net income before taxes | 62,416 | 87,318 | 109,944 | 120,903 | 113,478 | ||||||||||||||
| Federal and state income taxes | 21,428 | 26,242 | 34,128 | 40,630 | 38,384 | ||||||||||||||
| Net income | 40,988 | 61,076 | 75,816 | 80,273 | 75,094 | ||||||||||||||
| Net income (loss) attributable to non-controlling interests | (1,576 | ) | 1,475 | 925 | 1,043 | 251 | |||||||||||||
| Net income attributable to BOK Financial Corporation shareholders | $ | 42,564 | $ | 59,601 | $ | 74,891 | $ | 79,230 | $ | 74,843 | |||||||||
| Average shares outstanding: | |||||||||||||||||||
| Basic | 65,296,541 | 66,378,380 | 67,668,076 | 68,096,341 | 68,254,780 | ||||||||||||||
| Diluted | 65,331,428 | 66,467,729 | 67,762,483 | 68,210,353 | 68,344,886 | ||||||||||||||
| Net income per share: | |||||||||||||||||||
| Basic | $ | 0.64 | $ | 0.89 | $ | 1.09 | $ | 1.15 | $ | 1.08 | |||||||||
| Diluted | $ | 0.64 | $ | 0.89 | $ | 1.09 | $ | 1.15 | $ | 1.08 | |||||||||
| LOANS TREND -- UNAUDITED | ||||||||||||||||||||
| BOK FINANCIAL CORPORATION | ||||||||||||||||||||
| (In thousands) | ||||||||||||||||||||
| March 31, 2016 | Dec. 31, 2015 | Sept. 30, 2015 | June 30, 2015 | March 31, 2015 | ||||||||||||||||
| Commercial: | ||||||||||||||||||||
| Energy | $ | 3,029,420 | $ | 3,097,328 | $ | 2,838,167 | $ | 2,902,143 | $ | 2,902,994 | ||||||||||
| Services | 2,728,891 | 2,784,276 | 2,706,624 | 2,681,126 | 2,592,876 | |||||||||||||||
| Healthcare | 1,995,425 | 1,883,380 | 1,741,680 | 1,646,025 | 1,511,177 | |||||||||||||||
| Wholesale/retail | 1,451,846 | 1,422,064 | 1,461,936 | 1,533,730 | 1,405,800 | |||||||||||||||
| Manufacturing | 600,645 | 556,729 | 555,677 | 579,549 | 560,925 | |||||||||||||||
| Other commercial and industrial | 482,198 | 508,754 | 493,338 | 433,148 | 417,391 | |||||||||||||||
| Total commercial | 10,288,425 | 10,252,531 | 9,797,422 | 9,775,721 | 9,391,163 | |||||||||||||||
| Commercial real estate: | ||||||||||||||||||||
| Retail | 810,522 | 796,499 | 769,449 | 688,447 | 658,860 | |||||||||||||||
| Multifamily | 733,689 | 751,085 | 758,658 | 711,333 | 749,986 | |||||||||||||||
| Office | 695,552 | 637,707 | 626,151 | 563,085 | 513,862 | |||||||||||||||
| Industrial | 564,467 | 563,169 | 563,871 | 488,054 | 478,584 | |||||||||||||||
| Residential construction and land development | 171,949 | 160,426 | 153,510 | 148,574 | 139,152 | |||||||||||||||
| Other commercial real estate | 394,328 | 350,147 | 363,428 | 434,004 | 395,020 | |||||||||||||||
| Total commercial real estate | 3,370,507 | 3,259,033 | 3,235,067 | 3,033,497 | 2,935,464 | |||||||||||||||
| Residential mortgage: | ||||||||||||||||||||
| Permanent mortgage | 948,405 | 945,336 | 937,664 | 946,324 | 964,264 | |||||||||||||||
| Permanent mortgages guaranteed by U.S. government agencies | 197,350 | 196,937 | 192,712 | 190,839 | 200,179 | |||||||||||||||
| Home equity | 723,554 | 734,620 | 738,619 | 747,565 | 762,556 | |||||||||||||||
| Total residential mortgage | 1,869,309 | 1,876,893 | 1,868,995 | 1,884,728 | 1,926,999 | |||||||||||||||
| Personal | 494,325 | 552,697 | 465,957 | 430,190 | 430,510 | |||||||||||||||
| Total | $ | 16,022,566 | $ | 15,941,154 | $ | 15,367,441 | $ | 15,124,136 | $ | 14,684,136 | ||||||||||
| LOANS BY PRINCIPAL MARKET AREA -- UNAUDITED | |||||||||||||||||||
| BOK FINANCIAL CORPORATION | |||||||||||||||||||
| (in thousands) | |||||||||||||||||||
| March 31, 2016 | Dec. 31, 2015 | Sept. 30, 2015 | June 30, 2015 | March 31, 2015 | |||||||||||||||
| Bank of Oklahoma: | |||||||||||||||||||
| Commercial | $ | 3,656,034 | $ | 3,782,687 | $ | 3,514,391 | $ | 3,529,406 | $ | 3,276,553 | |||||||||
| Commercial real estate | 747,689 | 739,829 | 677,372 | 614,995 | 612,639 | ||||||||||||||
| Residential mortgage | 1,411,409 | 1,409,114 | 1,405,235 | 1,413,690 | 1,442,340 | ||||||||||||||
| Personal | 204,158 | 255,387 | 185,463 | 190,909 | 205,496 | ||||||||||||||
| Total Bank of Oklahoma | 6,019,290 | 6,187,017 | 5,782,461 | 5,749,000 | 5,537,028 | ||||||||||||||
| Bank of Texas: | |||||||||||||||||||
| Commercial | 3,936,809 | 3,908,425 | 3,752,193 | 3,738,742 | 3,709,467 | ||||||||||||||
| Commercial real estate | 1,211,978 | 1,204,202 | 1,257,741 | 1,158,056 | 1,130,973 | ||||||||||||||
| Residential mortgage | 217,539 | 219,126 | 222,395 | 228,683 | 237,985 | ||||||||||||||
| Personal | 210,456 | 203,496 | 194,051 | 156,260 | 149,827 | ||||||||||||||
| Total Bank of Texas | 5,576,782 | 5,535,249 | 5,426,380 | 5,281,741 | 5,228,252 | ||||||||||||||
| Bank of Albuquerque: | |||||||||||||||||||
| Commercial | 402,082 | 375,839 | 368,027 | 392,362 | 388,005 | ||||||||||||||
| Commercial real estate | 323,059 | 313,422 | 312,953 | 291,953 | 296,696 | ||||||||||||||
| Residential mortgage | 117,655 | 120,507 | 121,232 | 123,376 | 127,326 | ||||||||||||||
| Personal | 10,823 | 11,557 | 10,477 | 11,939 | 12,095 | ||||||||||||||
| Total Bank of Albuquerque | 853,619 | 821,325 | 812,689 | 819,630 | 824,122 | ||||||||||||||
| Bank of Arkansas: | |||||||||||||||||||
| Commercial | 79,808 | 92,359 | 76,044 | 99,086 | 91,485 | ||||||||||||||
| Commercial real estate | 66,674 | 69,320 | 82,225 | 85,997 | 87,034 | ||||||||||||||
| Residential mortgage | 7,212 | 8,169 | 8,063 | 6,999 | 6,807 | ||||||||||||||
| Personal | 918 | 819 | 4,921 | 5,189 | 5,114 | ||||||||||||||
| Total Bank of Arkansas | 154,612 | 170,667 | 171,253 | 197,271 | 190,440 | ||||||||||||||
| Colorado State Bank & Trust: | |||||||||||||||||||
| Commercial | 1,030,348 | 987,076 | 1,029,694 | 1,019,454 | 1,008,316 | ||||||||||||||
| Commercial real estate | 219,078 | 223,946 | 229,835 | 229,721 | 209,272 | ||||||||||||||
| Residential mortgage | 52,961 | 53,782 | 50,138 | 54,135 | 55,925 | ||||||||||||||
| Personal | 24,497 | 23,384 | 30,683 | 30,373 | 27,792 | ||||||||||||||
| Total Colorado State Bank & Trust | 1,326,884 | 1,288,188 | 1,340,350 | 1,333,683 | 1,301,305 | ||||||||||||||
| Bank of Arizona: | |||||||||||||||||||
| Commercial | 656,527 | 606,733 | 608,235 | 572,477 | 519,767 | ||||||||||||||
| Commercial real estate | 605,383 | 507,523 | 482,918 | 472,061 | 432,269 | ||||||||||||||
| Residential mortgage | 40,338 | 44,047 | 41,722 | 37,493 | 36,161 | ||||||||||||||
| Personal | 18,372 | 31,060 | 17,609 | 12,875 | 12,394 | ||||||||||||||
| Total Bank of Arizona | 1,320,620 | 1,189,363 | 1,150,484 | 1,094,906 | 1,000,591 | ||||||||||||||
| Bank of Kansas City: | |||||||||||||||||||
| Commercial | 526,817 | 499,412 | 448,838 | 424,194 | 397,570 | ||||||||||||||
| Commercial real estate | 196,646 | 200,791 | 192,023 | 180,714 | 166,581 | ||||||||||||||
| Residential mortgage | 22,195 | 22,148 | 20,210 | 20,352 | 20,455 | ||||||||||||||
| Personal | 25,101 | 26,994 | 22,753 | 22,645 | 17,792 | ||||||||||||||
| Total Bank of Kansas City | 770,759 | 749,345 | 683,824 | 647,905 | 602,398 | ||||||||||||||
| TOTAL BOK FINANCIAL | $ | 16,022,566 | $ | 15,941,154 | $ | 15,367,441 | $ | 15,124,136 | $ | 14,684,136 | |||||||||
Loans attributed to a geographical region may not always represent the location of the borrower or the collateral.
| DEPOSITS BY PRINCIPAL MARKET AREA -- UNAUDITED | |||||||||||||||||||
| BOK FINANCIAL CORPORATION | |||||||||||||||||||
| (in thousands) | |||||||||||||||||||
| March 31, 2016 | Dec. 31, 2015 | Sept. 30, 2015 | June 30, 2015 | March 31, 2015 | |||||||||||||||
| Bank of Oklahoma: | |||||||||||||||||||
| Demand | $ | 3,813,128 | $ | 4,133,520 | $ | 3,834,145 | $ | 4,068,088 | $ | 3,982,534 | |||||||||
| Interest-bearing: | |||||||||||||||||||
| Transaction | 5,706,067 | 5,971,819 | 5,783,258 | 6,018,381 | 6,199,468 | ||||||||||||||
| Savings | 246,122 | 226,733 | 225,580 | 225,694 | 227,855 | ||||||||||||||
| Time | 1,198,022 | 1,202,274 | 1,253,137 | 1,380,566 | 1,372,250 | ||||||||||||||
| Total interest-bearing | 7,150,211 | 7,400,826 | 7,261,975 | 7,624,641 | 7,799,573 | ||||||||||||||
| Total Bank of Oklahoma | 10,963,339 | 11,534,346 | 11,096,120 | 11,692,729 | 11,782,107 | ||||||||||||||
| Bank of Texas: | |||||||||||||||||||
| Demand | 2,571,883 | 2,627,764 | 2,689,493 | 2,565,234 | 2,511,032 | ||||||||||||||
| Interest-bearing: | |||||||||||||||||||
| Transaction | 2,106,905 | 2,132,099 | 1,996,223 | 2,020,817 | 2,062,063 | ||||||||||||||
| Savings | 83,263 | 77,902 | 74,674 | 74,373 | 76,128 | ||||||||||||||
| Time | 530,657 | 549,740 | 554,106 | 536,844 | 547,371 | ||||||||||||||
| Total interest-bearing | 2,720,825 | 2,759,741 | 2,625,003 | 2,632,034 | 2,685,562 | ||||||||||||||
| Total Bank of Texas | 5,292,708 | 5,387,505 | 5,314,496 | 5,197,268 | 5,196,594 | ||||||||||||||
| Bank of Albuquerque: | |||||||||||||||||||
| Demand | 557,200 | 487,286 | 520,785 | 508,224 | 537,466 | ||||||||||||||
| Interest-bearing: | |||||||||||||||||||
| Transaction | 560,684 | 563,723 | 529,862 | 537,156 | 535,791 | ||||||||||||||
| Savings | 47,187 | 43,672 | 41,380 | 41,802 | 42,088 | ||||||||||||||
| Time | 259,630 | 267,821 | 281,426 | 285,890 | 290,706 | ||||||||||||||
| Total interest-bearing | 867,501 | 875,216 | 852,668 | 864,848 | 868,585 | ||||||||||||||
| Total Bank of Albuquerque | 1,424,701 | 1,362,502 | 1,373,453 | 1,373,072 | 1,406,051 | ||||||||||||||
| Bank of Arkansas: | |||||||||||||||||||
| Demand | 31,318 | 27,252 | 25,397 | 19,731 | 31,002 | ||||||||||||||
| Interest-bearing: | |||||||||||||||||||
| Transaction | 265,803 | 202,857 | 290,728 | 284,349 | 253,691 | ||||||||||||||
| Savings | 1,929 | 1,747 | 1,573 | 1,712 | 1,677 | ||||||||||||||
| Time | 21,035 | 24,983 | 26,203 | 28,220 | 28,277 | ||||||||||||||
| Total interest-bearing | 288,767 | 229,587 | 318,504 | 314,281 | 283,645 | ||||||||||||||
| Total Bank of Arkansas | 320,085 | 256,839 | 343,901 | 334,012 | 314,647 | ||||||||||||||
| Colorado State Bank & Trust: | |||||||||||||||||||
| Demand | 413,506 | 497,318 | 430,675 | 403,491 | 412,532 | ||||||||||||||
| Interest-bearing: | |||||||||||||||||||
| Transaction | 610,077 | 616,697 | 655,206 | 601,741 | 604,665 | ||||||||||||||
| Savings | 33,108 | 31,927 | 31,398 | 31,285 | 31,524 | ||||||||||||||
| Time | 271,475 | 296,224 | 320,279 | 322,432 | 340,006 | ||||||||||||||
| Total interest-bearing | 914,660 | 944,848 | 1,006,883 | 955,458 | 976,195 | ||||||||||||||
| Total Colorado State Bank & Trust | 1,328,166 | 1,442,166 | 1,437,558 | 1,358,949 | 1,388,727 | ||||||||||||||
| Bank of Arizona: | |||||||||||||||||||
| Demand | 341,828 | 326,324 | 306,425 | 352,024 | 271,091 | ||||||||||||||
| Interest-bearing: | |||||||||||||||||||
| Transaction | 313,825 | 358,556 | 293,319 | 298,073 | 295,480 | ||||||||||||||
| Savings | 3,277 | 2,893 | 4,121 | 2,726 | 2,900 | ||||||||||||||
| Time | 29,053 | 29,498 | 26,750 | 28,165 | 28,086 | ||||||||||||||
| Total interest-bearing | 346,155 | 390,947 | 324,190 | 328,964 | 326,466 | ||||||||||||||
| Total Bank of Arizona | 687,983 | 717,271 | 630,615 | 680,988 | 597,557 | ||||||||||||||
| Bank of Kansas City: | |||||||||||||||||||
| Demand | 221,812 | 197,424 | 234,847 | 239,609 | 263,920 | ||||||||||||||
| Interest-bearing: | |||||||||||||||||||
| Transaction | 146,405 | 153,203 | 150,253 | 139,260 | 157,044 | ||||||||||||||
| Savings | 1,619 | 1,378 | 1,570 | 1,580 | 1,618 | ||||||||||||||
| Time | 31,502 | 35,524 | 36,630 | 42,262 | 45,082 | ||||||||||||||
| Total interest-bearing | 179,526 | 190,105 | 188,453 | 183,102 | 203,744 | ||||||||||||||
| Total Bank of Kansas City | 401,338 | 387,529 | 423,300 | 422,711 | 467,664 | ||||||||||||||
| TOTAL BOK FINANCIAL | $ | 20,418,320 | $ | 21,088,158 | $ | 20,619,443 | $ | 21,059,729 | $ | 21,153,347 | |||||||||
| NET INTEREST MARGIN TREND -- UNAUDITED | ||||||||||||||
| BOK FINANCIAL CORPORATION | ||||||||||||||
| Three Months Ended | ||||||||||||||
| March 31, 2016 | Dec. 31, 2015 | Sept. 30, 2015 | June 30, 2015 | March 31, 2015 | ||||||||||
| TAX-EQUIVALENT ASSETS YIELDS | ||||||||||||||
| Interest-bearing cash and cash equivalents | 0.53 | % | 0.29 | % | 0.28 | % | 0.25 | % | 0.27 | % | ||||
| Trading securities | 2.47 | % | 2.86 | % | 2.70 | % | 1.85 | % | 2.55 | % | ||||
| Investment securities: | ||||||||||||||
| Taxable | 5.53 | % | 5.41 | % | 5.49 | % | 5.49 | % | 5.51 | % | ||||
| Tax-exempt | 2.22 | % | 1.53 | % | 1.54 | % | 1.56 | % | 1.56 | % | ||||
| Total investment securities | 3.51 | % | 3.03 | % | 3.04 | % | 3.05 | % | 3.04 | % | ||||
| Available for sale securities: | ||||||||||||||
| Taxable | 2.06 | % | 2.02 | % | 1.99 | % | 1.92 | % | 1.95 | % | ||||
| Tax-exempt | 4.95 | % | 4.22 | % | 4.15 | % | 4.21 | % | 4.40 | % | ||||
| Total available for sale securities | 2.08 | % | 2.04 | % | 2.01 | % | 1.94 | % | 1.98 | % | ||||
| Fair value option securities | 2.38 | % | 2.32 | % | 2.30 | % | 2.17 | % | 2.28 | % | ||||
| Restricted equity securities | 5.85 | % | 5.95 | % | 5.95 | % | 5.82 | % | 5.79 | % | ||||
| Residential mortgage loans held for sale | 3.75 | % | 3.85 | % | 3.79 | % | 3.37 | % | 3.41 | % | ||||
| Loans | 3.57 | % | 3.55 | % | 3.54 | % | 3.65 | % | 3.59 | % | ||||
| Allowance for loan losses | ||||||||||||||
| Loans, net of allowance | 3.63 | % | 3.60 | % | 3.59 | % | 3.70 | % | 3.64 | % | ||||
| Total tax-equivalent yield on earning assets | 2.92 | % | 2.86 | % | 2.83 | % | 2.84 | % | 2.80 | % | ||||
| COST OF INTEREST-BEARING LIABILITIES | ||||||||||||||
| Interest-bearing deposits: | ||||||||||||||
| Interest-bearing transaction | 0.14 | % | 0.09 | % | 0.08 | % | 0.09 | % | 0.10 | % | ||||
| Savings | 0.09 | % | 0.09 | % | 0.10 | % | 0.11 | % | 0.10 | % | ||||
| Time | 1.21 | % | 1.26 | % | 1.33 | % | 1.36 | % | 1.46 | % | ||||
| Total interest-bearing deposits | 0.34 | % | 0.32 | % | 0.34 | % | 0.35 | % | 0.37 | % | ||||
| Funds purchased | 0.27 | % | 0.11 | % | 0.08 | % | 0.08 | % | 0.09 | % | ||||
| Repurchase agreements | 0.05 | % | 0.04 | % | 0.03 | % | 0.03 | % | 0.04 | % | ||||
| Other borrowings | 0.56 | % | 0.38 | % | 0.30 | % | 0.31 | % | 0.32 | % | ||||
| Subordinated debt | 1.26 | % | 1.13 | % | 1.04 | % | 2.21 | % | 2.52 | % | ||||
| Total cost of interest-bearing liabilities | 0.40 | % | 0.34 | % | 0.32 | % | 0.35 | % | 0.38 | % | ||||
| Tax-equivalent net interest revenue spread | 2.52 | % | 2.52 | % | 2.51 | % | 2.49 | % | 2.42 | % | ||||
| Effect of noninterest-bearing funding sources and other | 0.13 | % | 0.12 | % | 0.10 | % | 0.12 | % | 0.13 | % | ||||
| Tax-equivalent net interest margin | 2.65 | % | 2.64 | % | 2.61 | % | 2.61 | % | 2.55 | % | ||||
Yield calculations are shown on a tax equivalent basis at the statutory federal and state rates for the periods presented. The yield calculations exclude security trades that have been recorded on trade date with no corresponding interest income and the unrealized gains and losses. The yield calculation also includes average loan balances for which the accrual of interest has been discontinued and are net of unearned income. Yield/rate calculations are generally based on the conventions that determine how interest income and expense is accrued.
| CREDIT QUALITY INDICATORS -- UNAUDITED | |||||||||||||||||||
| BOK FINANCIAL CORPORATION | |||||||||||||||||||
| (in thousands, except ratios) | |||||||||||||||||||
| Three Months Ended | |||||||||||||||||||
| March 31, 2016 | Dec. 31, 2015 | Sept. 30, 2015 | June 30, 2015 | March 31, 2015 | |||||||||||||||
| Nonperforming assets: | |||||||||||||||||||
| Nonaccruing loans: | |||||||||||||||||||
| Commercial | $ | 174,652 | $ | 76,424 | $ | 33,798 | $ | 24,233 | $ | 13,880 | |||||||||
| Commercial real estate | 9,270 | 9,001 | 10,956 | 20,139 | 19,902 | ||||||||||||||
| Residential mortgage | 57,577 | 61,240 | 44,099 | 45,969 | 46,487 | ||||||||||||||
| Personal | 331 | 463 | 494 | 550 | 464 | ||||||||||||||
| Total nonaccruing loans | 241,830 | 147,128 | 89,347 | 90,891 | 80,733 | ||||||||||||||
| Accruing renegotiated loans guaranteed by U.S. government agencies | 77,597 | 74,049 | 81,598 | 82,368 | 80,287 | ||||||||||||||
| Real estate and other repossessed assets | 29,896 | 30,731 | 33,116 | 35,499 | 45,551 | ||||||||||||||
| Total nonperforming assets | $ | 349,323 | $ | 251,908 | $ | 204,061 | $ | 208,758 | $ | 206,571 | |||||||||
| Total nonperforming assets excluding those guaranteed by U.S. government agencies | $ | 252,176 | $ | 155,959 | $ | 118,578 | $ | 122,673 | $ | 123,028 | |||||||||
| Nonaccruing loans by loan class: | |||||||||||||||||||
| Commercial: | |||||||||||||||||||
| Energy | $ | 159,553 | $ | 61,189 | $ | 17,880 | $ | 6,841 | $ | 1,875 | |||||||||
| Services | 9,512 | 10,290 | 10,692 | 10,944 | 4,744 | ||||||||||||||
| Wholesale / retail | 3,685 | 2,919 | 3,058 | 4,166 | 4,401 | ||||||||||||||
| Manufacturing | 312 | 331 | 352 | 379 | 417 | ||||||||||||||
| Healthcare | 1,023 | 1,072 | 1,218 | 1,278 | 1,558 | ||||||||||||||
| Other commercial and industrial | 567 | 623 | 598 | 625 | 885 | ||||||||||||||
| Total commercial | 174,652 | 76,424 | 33,798 | 24,233 | 13,880 | ||||||||||||||
| Commercial real estate: | |||||||||||||||||||
| Residential construction and land development | 4,789 | 4,409 | 4,748 | 9,367 | 9,598 | ||||||||||||||
| Retail | 1,302 | 1,319 | 1,648 | 3,826 | 3,857 | ||||||||||||||
| Office | 629 | 651 | 684 | 2,360 | 2,410 | ||||||||||||||
| Multifamily | 250 | 274 | 185 | 195 | — | ||||||||||||||
| Industrial | 76 | 76 | 76 | 76 | 76 | ||||||||||||||
| Other commercial real estate | 2,224 | 2,272 | 3,615 | 4,315 | 3,961 | ||||||||||||||
| Total commercial real estate | 9,270 | 9,001 | 10,956 | 20,139 | 19,902 | ||||||||||||||
| Residential mortgage: | |||||||||||||||||||
| Permanent mortgage | 27,497 | 28,984 | 30,660 | 32,187 | 33,365 | ||||||||||||||
| Permanent mortgage guaranteed by U.S. government agencies | 19,550 | 21,900 | 3,885 | 3,717 | 3,256 | ||||||||||||||
| Home equity | 10,530 | 10,356 | 9,554 | 10,065 | 9,866 | ||||||||||||||
| Total residential mortgage | 57,577 | 61,240 | 44,099 | 45,969 | 46,487 | ||||||||||||||
| Personal | 331 | 463 | 494 | 550 | 464 | ||||||||||||||
| Total nonaccruing loans | $ | 241,830 | $ | 147,128 | $ | 89,347 | $ | 90,891 | $ | 80,733 | |||||||||
| Performing loans 90 days past due1 | $ | 8,019 | $ | 1,207 | $ | 101 | $ | 99 | $ | 523 | |||||||||
| Gross charge-offs | $ | (23,991 | ) | $ | (4,851 | ) | $ | (5,274 | ) | $ | (2,877 | ) | $ | (2,169 | ) | ||||
| Recoveries | 1,519 | 1,870 | 3,521 | 2,206 | 10,523 | ||||||||||||||
| Net recoveries (charge-offs) | $ | (22,472 | ) | $ | (2,981 | ) | $ | (1,753 | ) | $ | (671 | ) | $ | 8,354 | |||||
| Provision for credit losses | $ | 35,000 | $ | 22,500 | $ | 7,500 | $ | 4,000 | $ | — | |||||||||
| Allowance for loan losses to period end loans | 1.46 | % | 1.41 | % | 1.33 | % | 1.33 | % | 1.35 | % | |||||||||
| Combined allowance for credit losses to period end loans | 1.50 | % | 1.43 | % | 1.35 | % | 1.34 | % | 1.35 | % | |||||||||
| Nonperforming assets to period end loans and repossessed assets | 2.18 | % | 1.58 | % | 1.33 | % | 1.38 | % | 1.40 | % | |||||||||
| Net charge-offs (annualized) to average loans | 0.56 | % | 0.08 | % | 0.05 | % | 0.02 | % | (0.23 | )% | |||||||||
| Allowance for loan losses to nonaccruing loans1 | 104.89 | % | 180.09 | % | 238.84 | % | 230.67 | % | 255.15 | % | |||||||||
| Combined allowance for credit losses to nonaccruing loans1 | 107.87 | % | 181.46 | % | 243.05 | % | 231.68 | % | 256.39 | % | |||||||||
1 Excludes residential mortgage loans guaranteed by agencies of the U.S. government.