Market Overview

BOK Financial Reports Quarterly Earnings of $75 Million

Share:

TULSA, Okla., Oct. 28, 2015 (GLOBE NEWSWIRE) -- BOK Financial Corporation (NASDAQ: BOKF) reported net income of $74.9 million or $1.09 per diluted share for the third quarter of 2015. Net income was $79.2 million or $1.15 per diluted share for the second quarter of 2015 and $75.6 million or $1.09 per diluted share for the third quarter of 2014.

Steven G. Bradshaw, president and chief executive officer, stated, "BOK Financial posted solid earnings in the third quarter despite lower revenue from certain fee-generating businesses. Annualized loan growth was in the mid-single digits as expected, credit quality across our loan portfolio remained strong, and we continue to carefully manage expenses. We deployed $109 million of excess capital through dividends and share buybacks while we work to identify quality acquisition targets. To that end, our board of directors has authorized a 2.4 percent increase in our quarterly dividend and a new 5 million share buyback authorization. During the third quarter, we repurchased 1.25 million shares in the open market at a weighted average price of $63.79."

 Highlights of third quarter of 2015 included:

  • Net interest revenue totaled $178.6 million for the third quarter of 2015, up $2.9 million over the second quarter of 2015. Net interest margin was 2.61 percent for the third quarter of 2015, unchanged compared to the second quarter of 2015. Average earning assets increased $203 million during the third quarter of 2015, primarily related to a $287 million increase in average loan balances.

  • Fees and commissions revenue totaled $164.7 million for the third quarter of 2015, a decrease of $7.9 million compared to the prior quarter. Brokerage and trading revenue decreased $4.4 million and mortgage banking revenue decreased $3.7 million.

  • Changes in the fair value of mortgage servicing rights, net of economic hedges, decreased pre-tax net income by $4.4 million in the third quarter of 2015 and $1.1 million in the second quarter of 2015.

  • Operating expense was $224.6 million for the third quarter, a decrease of $2.5 million compared to the previous quarter, primarily due to lower incentive compensation expense.

  • A $7.5 million provision for credit losses was recorded in the third quarter of 2015 compared to a $4.0 million provision in the second quarter of 2015. The additional provision was primarily due to credit migration and loan portfolio growth during the third quarter. Net loans charged off totaled $1.8 million in the third quarter of 2015, compared to $671 thousand in the previous quarter.

  • The combined allowance for credit losses totaled $208 million or 1.35 percent of outstanding loans at September 30, 2015 compared to $202 million or 1.34 percent of outstanding loans at June 30, 2015. The portion of the combined allowance attributed to the energy portfolio totaled 2.05 percent of outstanding energy loans at September 30, an increase from 1.74 percent of outstanding energy loans at June 30.

  • Nonperforming assets that are not guaranteed by U.S. government agencies totaled $119 million or 0.78 percent of outstanding loans and repossessed assets (excluding those guaranteed by U.S. government agencies) at September 30, 2015 and $123 million or 0.82 percent of outstanding loans and repossessed assets (excluding those guaranteed by U.S. government agencies) at June 30, 2015.

  • Average loans increased by $287 million over the previous quarter, primarily due to growth in commercial real estate loans. Commercial and personal loans also grew over the previous quarter. Period-end outstanding loan balances also increased $243 million to $15.4 billion at September 30, 2015.

  • Average deposits decreased $401 million compared to the previous quarter, primarily due to a decrease in interest-bearing transaction accounts and time deposits. Period-end deposits were $20.6 billion at September 30, 2015, a decrease of $440 million from June 30, 2015.

  • New regulatory capital rules were effective for BOK Financial on January 1, 2015 and components of these rules will phase in through January 1, 2019. The new capital rules establish a 7 percent threshold for the common equity Tier 1 capital ratio. The common equity Tier 1 capital ratio at September 30 was 12.78 percent. Other ratios measured under the new regulatory capital rules were Tier 1 capital ratio, 12.78 percent, total capital ratio, 13.89 percent and leverage ratio, 9.55 percent. At June 30, 2015, the common equity Tier 1 capital ratio was 13.01 percent, the Tier 1 capital ratio was 13.01 percent, total capital ratio was 14.11 percent, and leverage ratio was 9.75 percent.

  • The company paid a regular quarterly cash dividend of $29 million or $0.42 per common share during the third quarter of 2015. On October 27, 2015, the board of directors approved an increase in the quarterly cash dividend to $0.43 per common share payable on or about November 27, 2015 to shareholders of record as of November 13, 2015.

  • The company repurchased 1,258,348 common shares at an average price of $63.79 per share during the third quarter of 2015, completing the existing board approval for share repurchases. No shares were repurchased during the second quarter of 2015. On October 27, 2015, the board of directors authorized the Company to purchase up to five million additional common shares, subject to market conditions, securities law and other regulatory compliance limitations.

Net Interest Revenue

Net interest revenue was $178.6 million for the third quarter of 2015, up $2.9 million over the second quarter of 2015.

Net interest margin was 2.61 percent for the third quarter of 2015, unchanged compared to the second quarter of 2015. The yield on average earning assets was 2.83 percent, a decrease of 1 basis point compared to the prior quarter. The loan portfolio yield decreased 11 basis points compared to the previous quarter to 3.54 percent. The second quarter of 2015 included a 6 basis point benefit from $2.3 million of nonaccrual interest recoveries. Competitive loan pricing and low interest rates continue to impact loan yields. The yield on the available for sale securities portfolio increased 7 basis points to 2.01 percent. Funding costs were 0.32 percent, down 3 basis points compared to the prior quarter.

Average earning assets increased $203 million during the third quarter of 2015, primarily related to a $287 million increase in average loan portfolio balances. Trading securities, interest-bearing cash and cash equivalents and restricted equity securities also increased over the prior quarter, partially offset by a decrease in the average balance of loans held for sale. The average balance of the available for sale securities portfolio decreased by $121 million during the quarter. Average deposit balances decreased $401 million compared to the second quarter of 2015. The average balance of borrowed funds increased $684 million. The average balance of subordinated debentures decreased $82 million related to the impact of $122 million of fixed rate subordinated debt that matured on June 1, 2015.

Fees and Commissions Revenue

Fees and commissions revenue totaled $164.7 million for the third quarter of 2015, a decrease of $7.9 million compared to the second quarter of 2015.

Brokerage and trading revenue totaled $31.6 million, a decrease of $4.4 million compared to the prior quarter. Investment banking revenue, including loan syndication and underwriting fees, decreased $2.5 million primarily due to the timing and volume of transactions completed. Customer hedging revenue decreased $2.4 million primarily due to programs provided to our mortgage banking customers. Securities trading revenue increased $303 thousand and retail brokerage fees were up $113 thousand.

Mortgage banking revenue totaled $33.2 million for the third quarter of 2015, a decrease of $3.7 million compared to the second quarter of 2015. Revenue from mortgage loan production decreased $4.4 million. Increased average mortgage interest rates reduced mortgage production volume. Total mortgage loans originated during the third quarter decreased $214 million or 12 percent compared to the previous quarter and outstanding mortgage loan commitments at September 30 decreased $107 million or 13 percent from June 30. In addition, mortgage production revenue decreased due to a shift toward lower-margin correspondent lending.

Deposit service charges and fees grew by $1.3 million to $23.6 million for the third quarter, primarily due to increased overdraft fees. Fiduciary and asset management revenue decreased $1.9 million to $30.8 million for the third quarter, primarily due to the seasonal timing of tax service fees which were recognized in the previous quarter and a decrease in the fair value of assets under management.

Operating Expense

Total operating expense was $224.6 million for the third quarter of 2015, a decrease of $2.5 million compared to the second quarter of 2015.

Personnel costs decreased by $3.6 million compared to the second quarter of 2015. Incentive compensation expense decreased $2.7 million and payroll tax expense decreased $1.6 million. Regular compensation expense increased $1.1 million.

Non-personnel expense increased $1.1 million compared to the second quarter of 2015. Non-personnel expense included a $2.6 million charge to settle litigation and a $796 thousand contribution to the BOKF Foundation. Additionally, mortgage banking expense increased $1.2 million and business promotion expense decreased $1.8 million.

Loans, Deposits and Capital

Loans

Outstanding loans were $15.4 billion at September 30, 2015, an increase of $243 million over the previous quarter, primarily due to growth in commercial real estate balances. Personal loan balances grew over the prior quarter, partially offset by a decrease in residential mortgage loan balances.

Outstanding commercial loan balances were largely unchanged compared to June 30, 2015. Healthcare sector loans grew by $96 million, other commercial and industrial loans increased $60 million and service sector loans increased by $25 million over the prior quarter. Wholesale/retail sector loans decreased $72 million. Energy loan balances decreased $64 million compared to June 30, 2015. Unfunded energy loan commitments increased by $147 million during the third quarter to $2.7 billion. All other unfunded commercial loan commitments totaled $4.1 billion at September 30, 2015, a decrease of $80 million compared to June 30, 2015.

Commercial real estate loans grew by $202 million or 7 percent over June 30, 2015. Retail sector loan balances increased $81 million and loans secured by industrial facilities grew by $76 million. Loans secured by office buildings increased $63 million and multifamily residential loans increased $47 million. This growth was partially offset by a $71 million decrease in other commercial real estate balances. Unfunded commercial real estate loan commitments totaled $941 million at September 30, 2015, an increase of $129 million over June 30, 2015.

Norm Bagwell, executive vice president, regional banks, stated, "Loan growth in the third quarter was in line with our expectations, as economic conditions and deal flow remained solid across the footprint. Arizona and Texas continued their recent strong growth track record while our Kansas City market also posted double-digit annualized loan growth for the second consecutive quarter."

Stacy Kymes, executive vice president, corporate banking, added, "Energy loans outstanding were lower in the third quarter, in line with our expectations; however, healthcare and commercial real estate grew at a double digit rate. Credit quality remains strong, as nonaccrual loans and nonperforming assets were both down on a sequential basis. Also as expected, we are seeing some continued credit migration in our energy book. However, we continue to believe that we are appropriately reserved for losses in the portfolio."

Deposits

Deposits totaled $20.6 billion at September 30, 2015, a decrease of $440 million compared to June 30, 2015. Demand deposit balances decreased $115 million, interest-bearing transaction deposits decreased $201 million and time deposits decreased $126 million. Among the lines of business, Wealth Management deposits decreased $203 million and Commercial Banking deposits decreased $156 million compared to June 30. Consumer Banking deposits increased $38 million.

Capital

New regulatory capital rules were effective for BOK Financial on January 1, 2015 and established a 7 percent threshold for the common equity Tier 1 ratio. The Company's common equity Tier 1 capital ratio was 12.78 percent at September 30, 2015. In addition, the Company's Tier 1 capital ratio was 12.78 percent, total capital ratio was 13.89 percent and leverage ratio was 9.55 percent at September 30, 2015. At June 30, 2015, the Company's common equity Tier 1 capital ratio was 13.01 percent, Tier 1 capital ratio was 13.01 percent, total capital ratio was 14.11 percent, and leverage ratio was 9.75 percent.

In addition, the Company's tangible common equity ratio, a non-GAAP measure, was 9.78 percent at September 30, 2015 and 9.72 percent at June 30, 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 $204 million or 1.33 percent of outstanding loans and repossessed assets at September 30, 2015 compared to $209 million or 1.38 percent at June 30, 2015. Nonperforming assets that are not guaranteed by U.S. government agencies totaled $119 million or 0.78 percent of outstanding loans and repossessed assets (excluding those guaranteed by U.S. government agencies) at September 30, 2015 and $123 million or 0.82 percent at June 30, 2015, a decrease of $4.1 million.

Nonaccruing loans totaled $89 million or 0.58 percent of outstanding loans at September 30, 2015, compared to $91 million or 0.60 percent of outstanding loans at June 30, 2015. An $11 million increase in nonaccruing energy loans was largely offset by a $9.2 million decrease in nonaccruing commercial real estate loans. Overall, new nonaccruing loans identified in the third quarter totaled $23 million, offset by $12 million in payments received, $6.4 million in foreclosures and repossessions and $5.3 million in charge-offs. At September 30, 2015, nonaccruing commercial loans totaled $34 million or 0.34 percent of outstanding commercial loans, nonaccruing commercial real estate loans totaled $11 million or 0.34 percent of outstanding commercial real estate loans and nonaccruing residential mortgage loans totaled $44 million or 2.36 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, decreased to $120 million at September 30 from $181 million at June 30. The decrease largely resulted from $64 million of payments received during the third quarter. Potential problem energy loans decreased to $96 million from $124 million.

Net loans charged off totaled $1.8 million for the third quarter of 2015, compared to $671 thousand for the second quarter of 2015. Gross charge-offs totaled $5.3 million for the third quarter, compared to $2.9 million for the previous quarter. Recoveries totaled $3.5 million for the third quarter of 2015 and $2.2 million for the second quarter of 2015.

After evaluating all credit factors, the Company recorded a $7.5 million provision for credit losses during the third quarter of 2015, primarily due to credit migration in the energy portfolio and loan portfolio growth. The Company recorded a $4.0 million provision for credit losses in the previous quarter.

The combined allowance for credit losses totaled $208 million or 1.35 percent of outstanding loans and 232 percent of nonaccruing loans at September 30, 2015. The allowance for loan losses was $204 million and the accrual for off-balance sheet credit losses was $3.6 million. The portion of the combined allowance attributed to the energy portfolio totaled 2.05 percent of outstanding energy loans at September 30, an increase from 1.74 percent of outstanding energy loans at June 30.

Real estate and other repossessed assets totaled $33 million at September 30, 2015, primarily consisting of $16 million of one-to-four family residential properties and $11 million of developed commercial real estate properties.

Securities and Derivatives

The fair value of the available for sale securities portfolio totaled $8.8 billion at September 30, 2015, a decrease of $199 million compared to June 30, 2015. At September 30, 2015, the available for sale portfolio consisted primarily of $5.8 billion of residential mortgage-backed securities fully backed by U.S. government agencies and $2.7 billion of commercial mortgage-backed securities fully backed by U.S. government agencies.

At September 30, 2015 the available for sale securities portfolio had a net unrealized gain of $145 million compared to a net unrealized gain of $89 million at June 30, 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 September 30, 2015 increased $26 million during the third quarter to $105 million. Commercial mortgage-backed securities had a net unrealized gain of $27 million at September 30, 2015, compared to a net unrealized loss of $4.1 million at June 30, 2015.

In the third quarter of 2015, the Company recognized a $2.2 million net gain from the sale of $451 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 $3.4 million of net gains from sales of $379 million of available for sale securities in the second 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 designated as an economic hedge of the changes in the fair value of our mortgage servicing rights. The fair value of mortgage servicing rights decreased by $11.8 million during the third quarter of 2015, primarily due to a decrease in the short-term escrow earnings rates and a decrease in the period-end 30 year mortgage interest rates at September 30 compared to June 30. The value of securities and interest rate derivative contracts held as an economic hedge increased by $7.4 million during the quarter. The fair value of mortgage servicing rights, net of economic hedges, decreased $1.1 million in the second quarter of 2015, primarily due to changes in interest rates partially offset by increased mortgage servicing costs.

Conference Call and Webcast

The Company will hold a conference call at 9 a.m. central time on Wednesday, October 28, 2015 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 # 10074072.

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, MBM Advisors 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 September 30, 2015 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)
  Sept. 30, 2015 June 30, 2015 Sept. 30, 2014
ASSETS      
Cash and due from banks $489,268  $443,577  $557,658 
Interest-bearing cash and cash equivalents 1,830,105  2,119,072  2,007,901 
Trading securities 181,131  158,209  169,712 
Investment securities 612,384  625,664  655,091 
Available for sale securities 8,801,089  9,000,117  9,306,886 
Fair value option securities 427,760  436,324  175,761 
Restricted equity securities 263,587  231,520  189,587 
Residential mortgage loans held for sale 357,414  502,571  373,253 
Loans:      
Commercial 9,797,422  9,775,721  8,572,038 
Commercial real estate 3,235,067  3,033,497  2,724,199 
Residential mortgage 1,868,995  1,884,728  1,979,663 
Personal 465,957  430,190  407,839 
Total loans 15,367,441  15,124,136  13,683,739 
Allowance for loan losses (204,116) (201,087) (191,244)
Loans, net of allowance 15,163,325  14,923,049  13,492,495 
Premises and equipment, net 294,669  284,238  275,718 
Receivables 151,451  149,629  114,374 
Goodwill 385,461  385,454  377,780 
Intangible assets, net 44,999  46,061  35,476 
Mortgage servicing rights 200,049  198,694  173,286 
Real estate and other repossessed assets, net 33,116  35,499  97,871 
Derivative contracts, net 726,159  630,435  360,809 
Cash surrender value of bank-owned life insurance 300,981  298,606  291,583 
Receivable on unsettled securities sales 30,009  8,693  94,881 
Other assets 273,948  248,151  354,898 
TOTAL ASSETS $30,566,905  $30,725,563  $29,105,020 
       
LIABILITIES AND EQUITY      
Deposits:      
Demand $8,041,767  $8,156,401  $8,038,129 
Interest-bearing transaction 9,698,849  9,899,777  9,244,709 
Savings 380,296  379,172  341,638 
Time 2,498,531  2,624,379  2,664,580 
Total deposits 20,619,443  21,059,729  20,289,056 
Funds purchased 62,297  64,677  85,135 
Repurchase agreements 555,677  712,033  1,026,009 
Other borrowings 4,635,150  4,332,162  3,484,487 
Subordinated debentures 226,314  226,278  347,936 
Accrued interest, taxes and expense 158,048  124,568  100,664 
Due on unsettled securities purchases 98,351  37,571  8,126 
Derivative contracts, net 636,115  620,277  348,687 
Other liabilities 159,348  135,435  137,608 
TOTAL LIABILITIES 27,150,743  27,312,730  25,827,708 
Shareholders' equity:      
Capital, surplus and retained earnings 3,291,450  3,323,840  3,219,798 
Accumulated other comprehensive income 85,776  51,792  23,295 
TOTAL SHAREHOLDERS' EQUITY 3,377,226  3,375,632  3,243,093 
Non-controlling interests 38,936  37,201  34,219 
TOTAL EQUITY 3,416,162  3,412,833  3,277,312 
TOTAL LIABILITIES AND EQUITY $30,566,905  $30,725,563  $29,105,020 


AVERAGE BALANCE SHEETS -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands)
 Three Months Ended
 Sept. 30, 2015 June 30, 2015 March 31, 2015 Dec. 31, 2014 Sept. 30, 2014
ASSETS         
Interest-bearing cash and cash equivalents$2,038,611  $2,002,456  $2,089,546  $2,090,176  $1,217,942 
Trading securities179,098  127,391  140,968  164,502  107,909 
Investment securities616,091  628,489  642,825  650,911  641,375 
Available for sale securities8,942,261  9,063,006  9,101,464  9,161,901  9,526,727 
Fair value option securities429,951  435,294  404,775  221,773  180,268 
Restricted equity securities255,610  221,911  179,385  182,737  142,418 
Residential mortgage loans held for sale401,359  464,269  348,054  321,746  310,924 
Loans:         
Commercial9,685,768  9,634,306  9,308,307  8,886,952  8,468,575 
Commercial real estate3,198,200  2,989,615  2,909,565  2,665,547  2,691,318 
Residential mortgage1,847,696  1,857,464  1,909,998  1,904,777  1,955,769 
Personal460,647  423,967  426,712  424,729  402,916 
Total loans15,192,311  14,905,352  14,554,582  13,882,005  13,518,578 
Allowance for loan losses(202,829) (198,400) (194,948) (190,787) (191,141)
Total loans, net14,989,482  14,706,952  14,359,634  13,691,218  13,327,437 
Total earning assets27,852,463  27,649,768  27,266,651  26,484,964  25,455,000 
Cash and due from banks487,283  492,737  513,734  528,595  493,200 
Derivative contracts, net669,264  475,687  447,565  352,565  288,682 
Cash surrender value of bank-owned life insurance299,424  297,022  294,803  292,411  290,044 
Receivable on unsettled securities sales64,591  94,374  99,706  69,109  63,277 
Other assets1,396,708  1,454,484  1,348,245  1,404,553  1,525,354 
TOTAL ASSETS$30,769,733  $30,464,072  $29,970,704  $29,132,197  $28,115,557 
          
LIABILITIES AND EQUITY         
Deposits:         
Demand$7,994,607  $7,996,717  $7,885,485  $7,974,165  $7,800,350 
Interest-bearing transaction9,760,839  10,063,589  10,338,396  9,730,564  9,473,575 
Savings379,828  381,833  365,835  346,132  342,488 
Time2,557,874  2,651,820  2,659,323  2,647,147  2,610,561 
Total deposits20,693,148  21,093,959  21,249,039  20,698,008  20,226,974 
Funds purchased70,281  63,312  69,730  71,728  320,817 
Repurchase agreements672,085  773,977  1,000,839  996,308  1,027,206 
Other borrowings4,779,981  4,001,479  3,084,214  3,021,094  2,333,961 
Subordinated debentures226,296  307,903  348,007  347,960  347,914 
Derivative contracts, net597,908  455,431  418,848  321,367  270,998 
Due on unsettled securities purchases90,135  151,369  205,096  137,566  124,952 
Other liabilities240,704  235,173  243,370  228,021  214,306 
TOTAL LIABILITIES27,370,538  27,082,603  26,619,143  25,822,052  24,867,128 
Total equity3,399,195  3,381,469  3,351,561  3,310,145  3,248,429 
TOTAL LIABILITIES AND EQUITY$30,769,733  $30,464,072  $29,970,704  $29,132,197  $28,115,557 


STATEMENTS OF EARNINGS -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands, except per share data)
 Three Months Ended Nine Months Ended
 Sept. 30, Sept. 30,
 2015 2014 2015 2014
        
Interest revenue$193,664  $183,868  $570,046  $545,619 
Interest expense15,028  17,077  47,953  50,089 
Net interest revenue178,636  166,791  522,093  495,530 
Provision for credit losses7,500    11,500   
Net interest revenue after provision for credit losses171,136  166,791  510,593  495,530 
Other operating revenue:       
Brokerage and trading revenue31,582  35,263  99,301  103,835 
Transaction card revenue32,514  31,578  96,302  92,222 
Fiduciary and asset management revenue30,807  29,738  94,988  85,003 
Deposit service charges and fees23,606  22,508  67,618  68,330 
Mortgage banking revenue33,170  26,814  109,336  78,988 
Bank-owned life insurance2,360  2,326  6,956  6,706 
Other revenue10,618  10,320  28,694  28,380 
Total fees and commissions164,657  158,547  503,195  463,464 
Gain on other assets, net1,161  1,422  3,373  2,615 
Gain (loss) on derivatives, net1,283  (93) 1,162  1,706 
Gain (loss) on fair value option securities, net5,926  (332) 443  6,504 
Change in fair value of mortgage servicing rights(11,757) 5,281  (12,269) (5,624)
Gain on available for sale securities, net2,166  146  9,926  1,390 
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 revenue163,436  164,971  505,738  470,055 
Other operating expense:       
Personnel129,062  123,043  390,305  351,190 
Business promotion5,922  6,160  19,435  19,151 
Charitable contributions to BOKF Foundation796    796  2,420 
Professional fees and services10,147  14,763  29,766  33,382 
Net occupancy and equipment18,689  18,892  56,660  54,577 
Insurance4,864  4,793  14,960  13,801 
Data processing and communications31,228  29,971  93,311  86,177 
Printing, postage and supplies3,376  3,380  10,390  10,350 
Net losses and operating expenses of repossessed assets267  4,966  1,103  7,516 
Amortization of intangible assets1,089  1,100  3,269  2,865 
Mortgage banking costs8,587  7,734  25,325  19,328 
Other expense10,601  7,032  26,686  20,888 
Total other operating expense224,628  221,834  672,006  621,645 
        
Net income before taxes109,944  109,928  344,325  343,940 
Federal and state income taxes34,128  33,802  113,142  114,042 
        
Net income75,816  76,126  231,183  229,898 
Net income attributable to non-controlling interests925  494  2,219  1,781 
Net income attributable to BOK Financial Corporation shareholders$74,891  $75,632  $228,964  $228,117 
        
Average shares outstanding:       
Basic67,668,076  68,455,866  68,004,508  68,364,549 
Diluted67,762,483  68,609,765  68,104,017  68,520,591 
        
Net income per share:       
Basic$1.09  $1.09  $3.33  $3.30 
Diluted$1.09  $1.09  $3.32  $3.29 


FINANCIAL HIGHLIGHTS -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands, except ratio and share data)
 Three Months Ended
 Sept. 30, 2015 June 30, 2015 March 31, 2015 Dec. 31, 2014 Sept. 30, 2014
Capital:         
Period-end shareholders' equity$3,377,226  $3,375,632  $3,357,161  $3,302,179  $3,243,093 
Risk weighted assets$22,706,537  $22,533,295  $22,053,246  $21,290,908  $20,491,089 
Risk-based capital ratios1:         
Common equity tier 112.78% 13.01% 13.07% N/A N/A
Tier 112.78% 13.01% 13.07% 13.33% 13.72%
Total capital13.89% 14.11% 14.39% 14.66% 15.11%
Leverage ratio9.55% 9.75% 9.74% 9.96% 10.22%
Tangible common equity ratio29.78% 9.72% 9.86% 10.08% 9.86%
          
Common stock:         
Book value per share$49.88  $48.96  $48.71  $47.78  $46.77 
Market value per share:         
High$70.26  $71.66  $61.78  $68.69  $69.56 
Low$57.04  $59.59  $52.63  $56.87  $63.36 
Cash dividends paid$28,766  $28,841  $28,952  $29,114  $27,705 
Dividend payout ratio38.41% 36.40% 38.68% 45.27% 36.63%
Shares outstanding, net67,713,031  68,945,139  68,922,314  69,113,736  69,344,082 
Stock buy-back program:         
Shares repurchased1,258,348    502,156  200,000   
Amount$80,276  $  $29,484  $12,337  $ 
Average price per share$63.79  $  $58.71  $61.68  $ 
          
Performance ratios (quarter annualized):
Return on average assets0.97% 1.04% 1.01% 0.88% 1.07%
Return on average equity8.84% 9.50% 9.15% 7.79% 9.34%
Net interest margin2.61% 2.61% 2.55% 2.61% 2.67%
Efficiency ratio64.34% 64.21% 64.91% 67.95% 67.18%
          
1     Risk-based capital ratios March 31, 2015 and thereafter calculated under revised regulatory capital rules issued July 2013 and effective for the Company January 1, 2015. Previous risk-based capital ratios presented are calculated in accordance with then current regulatory capital rules.
          
Reconciliation of non-GAAP measures:
2     Tangible common equity ratio:         
Total shareholders' equity$3,377,226  $3,375,632  $3,357,161  $3,302,179  $3,243,093 
Less: Goodwill and intangible assets, net430,460  431,515  411,066  412,156  413,256 
Tangible common equity$2,946,766  $2,944,117  $2,946,095  $2,890,023  $2,829,837 
          
Total assets$30,566,905  $30,725,563  $30,299,978  $29,089,698  $29,105,020 
Less: Goodwill and intangible assets, net430,460  431,515  411,066  412,156  413,256 
Tangible assets$30,136,445  $30,294,048  $29,888,912  $28,677,542  $28,691,764 
          
Tangible common equity ratio9.78% 9.72% 9.86% 10.08% 9.86%
          
Other data:         
Fiduciary assets$37,780,669  $38,772,018  $37,511,746  $35,997,877  $34,020,442 
Tax equivalent adjustment$3,244  $3,035  $2,956  $2,859  $2,739 
Net unrealized gain on available for sale securities$144,884  $89,158  $152,107  $96,955  $42,935 
          
          
FINANCIAL HIGHLIGHTS -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands, except ratio and share data)
 Three Months Ended
 Sept. 30, 2015 June 30, 2015 March 31, 2015 Dec. 31, 2014 Sept. 30, 2014
          
Mortgage banking:         
Mortgage servicing portfolio$18,928,726  $17,979,623  $16,937,128  $16,162,887  $15,499,653 
Mortgage commitments$742,742  $849,619  $824,036  $627,505  $638,925 
Mortgage loans funded for sale$1,614,225  $1,828,230  $1,565,016  $1,264,269  $1,394,211 
Mortgage loan refinances to total fundings30% 40% 56% 37% 26%
Mortgage loans sold$1,778,099  $1,861,968  $1,382,042  $1,350,529  $1,369,295 
          
Net realized gains on mortgage loans sold$18,968  $23,856  $17,251  $17,671  $17,100 
Change in net unrealized gain on mortgage loans held for sale(251) (743) 8,789  (482) (2,407)
Total production revenue18,717  23,113  26,040  17,189  14,693 
Servicing revenue14,453  13,733  13,280  12,916  12,121 
Total mortgage banking revenue$33,170  $36,846  $39,320  $30,105  $26,814 
          
Gain (loss) on mortgage servicing rights, net of economic hedge:
Gain (loss) on mortgage hedge derivative contracts, net$1,460  $(1,005) $911  $1,070  $(93)
Gain (loss) on fair value option securities, net5,926  (8,130) 2,647  3,685  (341)
Gain (loss) on economic hedge of mortgage servicing rights7,386  (9,135) 3,558  4,755  (434)
Gain (loss) on changes in fair value of mortgage servicing rights(11,757) 8,010  (8,522) (10,821) 5,281 
Gain (loss) on changes in fair value of mortgage servicing rights, net of economic hedges$(4,371) $(1,125) $(4,964) $(6,066) $4,847 
          
Net interest revenue on fair value option securities$2,140  $1,985  $1,739  $912  $830 


QUARTERLY EARNINGS TREND -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands, except ratio and per share data)
 Three Months Ended
 Sept. 30, 2015 June 30, 2015 March 31, 2015 Dec. 31, 2014 Sept. 30, 2014
          
Interest revenue$193,664  $191,813  $184,569  $186,620  $183,868 
Interest expense15,028  16,082  16,843  16,956  17,077 
Net interest revenue178,636  175,731  167,726  169,664  166,791 
Provision for credit losses7,500  4,000       
Net interest revenue after provision for credit losses171,136  171,731  167,726  169,664  166,791 
Other operating revenue:         
Brokerage and trading revenue31,582  36,012  31,707  30,602  35,263 
Transaction card revenue32,514  32,778  31,010  31,467  31,578 
Fiduciary and asset management revenue30,807  32,712  31,469  30,649  29,738 
Deposit service charges and fees23,606  22,328  21,684  22,581  22,508 
Mortgage banking revenue33,170  36,846  39,320  30,105  26,814 
Bank-owned life insurance2,360  2,398  2,198  2,380  2,326 
Other revenue10,618  9,473  8,603  10,071  10,320 
Total fees and commissions164,657  172,547  165,991  157,855  158,547 
Gain on other assets, net1,161  1,457  755  338  1,422 
Gain (loss) on derivatives, net1,283  (1,032) 911  1,070  (93)
Gain (loss) on fair value option securities, net5,926  (8,130) 2,647  3,685  (332)
Change in fair value of mortgage servicing rights(11,757) 8,010  (8,522) (10,821) 5,281 
Gain on available for sale securities, net2,166  3,433  4,327  149  146 
Total other-than-temporary impairment losses    (781) (373)  
Portion of loss recognized in other comprehensive income    689     
Net impairment losses recognized in earnings    (92) (373)  
Total other operating revenue163,436  176,285  166,017  151,903  164,971 
Other operating expense:         
Personnel129,062  132,695  128,548  125,741  123,043 
Business promotion5,922  7,765  5,748  7,498  6,160 
Charitable contributions to BOKF Foundation796      1,847   
Professional fees and services10,147  9,560  10,059  11,058  14,763 
Net occupancy and equipment18,689  18,927  19,044  22,655  18,892 
Insurance4,864  5,116  4,980  4,777  4,793 
Data processing and communications31,228  31,463  30,620  30,872  29,971 
Printing, postage and supplies3,376  3,553  3,461  3,168  3,380 
Net losses (gains) and operating expenses of repossessed assets267  223  613  (1,497) 4,966 
Amortization of intangible assets1,089  1,090  1,090  1,100  1,100 
Mortgage banking costs8,587  7,419  9,319  10,553  7,734 
Other expense10,601  9,302  6,783  8,105  7,032 
Total other operating expense224,628  227,113  220,265  225,877  221,834 
Net income before taxes109,944  120,903  113,478  95,690  109,928 
Federal and state income taxes34,128  40,630  38,384  30,109  33,802 
Net income75,816  80,273  75,094  65,581  76,126 
Net income attributable to non-controlling interests925  1,043  251  1,263  494 
Net income attributable to BOK Financial Corporation shareholders$74,891  $79,230  $74,843  $64,318  $75,632 
          
Average shares outstanding:         
Basic67,668,076  68,096,341  68,254,780  68,481,630  68,455,866 
Diluted67,762,483  68,210,353  68,344,886  68,615,808  68,609,765 
Net income per share:         
Basic$1.09  $1.15  $1.08  $0.93  $1.09 
Diluted$1.09  $1.15  $1.08  $0.93  $1.09 


LOANS TREND -- UNAUDITED
BOK FINANCIAL CORPORATION
(In thousands)
  Sept. 30, 2015 June 30, 2015 March 31, 2015 Dec. 31, 2014 Sept. 30, 2014
Commercial:          
Energy $2,838,167  $2,902,143  $2,902,994  $2,860,428  $2,551,699 
Services 2,706,624  2,681,126  2,592,876  2,391,530  2,339,951 
Wholesale/retail 1,461,936  1,533,730  1,405,800  1,440,015  1,421,107 
Manufacturing 555,677  579,549  560,925  532,594  479,543 
Healthcare 1,741,680  1,646,025  1,511,177  1,454,969  1,382,399 
Other commercial and industrial 493,338  433,148  417,391  416,134  397,339 
Total commercial 9,797,422  9,775,721  9,391,163  9,095,670  8,572,038 
           
Commercial real estate:          
Residential construction and land development 153,510  148,574  139,152  143,591  175,228 
Retail 769,449  688,447  658,860  666,889  611,265 
Office 626,151  563,085  513,862  415,544  438,909 
Multifamily 758,658  711,333  749,986  704,298  739,757 
Industrial 563,871  488,054  478,584  428,817  371,426 
Other commercial real estate 363,428  434,004  395,020  369,011  387,614 
Total commercial real estate 3,235,067  3,033,497  2,935,464  2,728,150  2,724,199 
           
Residential mortgage:          
Permanent mortgage 937,664  946,324  964,264  969,951  991,107 
Permanent mortgages guaranteed by U.S. government agencies 192,712  190,839  200,179  205,950  198,488 
Home equity 738,619  747,565  762,556  773,611  790,068 
Total residential mortgage 1,868,995  1,884,728  1,926,999  1,949,512  1,979,663 
           
Personal 465,957  430,190  430,510  434,705  407,839 
           
Total $15,367,441  $15,124,136  $14,684,136  $14,208,037  $13,683,739 
 
Certain commercial loans previously classified as Services in the prior periods have been reclassified to Wholesale / Retail to conform with current classification guidelines.


LOANS BY PRINCIPAL MARKET AREA -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands)
 Sept. 30, 2015 June 30, 2015 March 31, 2015 Dec. 31, 2014 Sept. 30, 2014
          
Bank of Oklahoma:         
Commercial$3,514,391  $3,529,406  $3,276,553  $3,142,689  $3,106,264 
Commercial real estate677,372  614,995  612,639  603,610  592,865 
Residential mortgage1,405,235  1,413,690  1,442,340  1,467,096  1,481,264 
Personal185,463  190,909  205,496  206,115  193,207 
Total Bank of Oklahoma5,782,461  5,749,000  5,537,028  5,419,510  5,373,600 
          
Bank of Texas:         
Commercial3,752,193  3,738,742  3,709,467  3,549,128  3,169,458 
Commercial real estate1,257,741  1,158,056  1,130,973  1,027,817  1,046,322 
Residential mortgage222,395  228,683  237,985  235,948  247,117 
Personal194,051  156,260  149,827  154,363  148,965 
Total Bank of Texas5,426,380  5,281,741  5,228,252  4,967,256  4,611,862 
          
Bank of Albuquerque:         
Commercial368,027  392,362  388,005  383,439  378,663 
Commercial real estate312,953  291,953  296,696  296,358  313,905 
Residential mortgage121,232  123,376  127,326  127,999  130,045 
Personal10,477  11,939  12,095  10,899  11,714 
Total Bank of Albuquerque812,689  819,630  824,122  818,695  834,327 
          
Bank of Arkansas:         
Commercial76,044  99,086  91,485  95,510  74,866 
Commercial real estate82,225  85,997  87,034  88,301  96,874 
Residential mortgage8,063  6,999  6,807  7,261  7,492 
Personal4,921  5,189  5,114  5,169  5,508 
Total Bank of Arkansas171,253  197,271  190,440  196,241  184,740 
          
Colorado State Bank & Trust:         
Commercial1,029,694  1,019,454  1,008,316  977,961  957,917 
Commercial real estate229,835  229,721  209,272  194,553  190,812 
Residential mortgage50,138  54,135  55,925  57,119  56,705 
Personal30,683  30,373  27,792  27,918  24,812 
Total Colorado State Bank & Trust1,340,350  1,333,683  1,301,305  1,257,551  1,230,246 
          
Bank of Arizona:         
Commercial608,235  572,477  519,767  547,524  500,208 
Commercial real estate482,918  472,061  432,269  355,140  316,698 
Residential mortgage41,722  37,493  36,161  35,872  39,256 
Personal17,609  12,875  12,394  12,883  11,201 
Total Bank of Arizona1,150,484  1,094,906  1,000,591  951,419  867,363 
          
Bank of Kansas City:         
Commercial448,838  424,194  397,570  399,419  384,662 
Commercial real estate192,023  180,714  166,581  162,371  166,723 
Residential mortgage20,210  20,352  20,455  18,217  17,784 
Personal22,753  22,645  17,792  17,358  12,432 
Total Bank of Kansas City683,824  647,905  602,398  597,365  581,601 
          
TOTAL BOK FINANCIAL$15,367,441  $15,124,136  $14,684,136  $14,208,037  $13,683,739 
 
Loans attributed to a geographical region may not always represent the location of the borrower or the collateral.


DEPOSITS BY PRINCIPAL MARKET AREA -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands)
 Sept. 30, 2015 June 30, 2015 March 31, 2015 Dec. 31, 2014 Sept. 30, 2014
Bank of Oklahoma:         
Demand$3,834,145  $4,068,088  $3,982,534  $3,828,819  $3,915,560 
Interest-bearing:         
Transaction5,783,258  6,018,381  6,199,468  6,117,886  5,450,692 
Savings225,580  225,694  227,855  206,357  201,690 
Time1,253,137  1,380,566  1,372,250  1,301,194  1,292,738 
Total interest-bearing7,261,975  7,624,641  7,799,573  7,625,437  6,945,120 
Total Bank of Oklahoma11,096,120  11,692,729  11,782,107  11,454,256  10,860,680 
          
Bank of Texas:         
Demand2,689,493  2,565,234  2,511,032  2,639,732  2,636,713 
Interest-bearing:         
Transaction1,996,223  2,020,817  2,062,063  2,065,723  2,020,737 
Savings74,674  74,373  76,128  72,037  66,798 
Time554,106  536,844  547,371  547,316  569,929 
Total interest-bearing2,625,003  2,632,034  2,685,562  2,685,076  2,657,464 
Total Bank of Texas5,314,496  5,197,268  5,196,594  5,324,808  5,294,177 
          
Bank of Albuquerque:         
Demand520,785  508,224  537,466  487,819  480,023 
Interest-bearing:         
Transaction529,862  537,156  535,791  519,544  502,787 
Savings41,380  41,802  42,088  37,471  36,127 
Time281,426  285,890  290,706  295,798  303,074 
Total interest-bearing852,668  864,848  868,585  852,813  841,988 
Total Bank of Albuquerque1,373,453  1,373,072  1,406,051  1,340,632  1,322,011 
          
Bank of Arkansas:         
Demand25,397  19,731  31,002  35,996  35,075 
Interest-bearing:         
Transaction290,728  284,349  253,691  158,115  234,063 
Savings1,573  1,712  1,677  1,936  2,222 
Time26,203  28,220  28,277  28,520  38,811 
Total interest-bearing318,504  314,281  283,645  188,571  275,096 
Total Bank of Arkansas343,901  334,012  314,647  224,567  310,171 
          
Colorado State Bank & Trust:         
Demand430,675  403,491  412,532  445,755  422,044 
Interest-bearing:         
Transaction655,206  601,741  604,665  631,874  571,807 
Savings31,398  31,285  31,524  29,811  29,768 
Time320,279  322,432  340,006  353,998  372,401 
Total interest-bearing1,006,883  955,458  976,195  1,015,683  973,976 
Total Colorado State Bank & Trust1,437,558  1,358,949  1,388,727  1,461,438  1,396,020 
          
          
DEPOSITS BY PRINCIPAL MARKET AREA -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands)
 Sept. 30, 2015 June 30, 2015 March 31, 2015 Dec. 31, 2014 Sept. 30, 2014
Bank of Arizona:         
Demand306,425  352,024  271,091  369,115  279,811 
Interest-bearing:         
Transaction293,319  298,073  295,480  347,214  336,584 
Savings4,121  2,726  2,900  2,545  3,718 
Time26,750  28,165  28,086  36,680  38,842 
Total interest-bearing324,190  328,964  326,466  386,439  379,144 
Total Bank of Arizona630,615  680,988  597,557  755,554  658,955 
          
Bank of Kansas City:         
Demand234,847  239,609  263,920  259,121  268,903 
Interest-bearing:         
Transaction150,253  139,260  157,044  273,999  128,039 
Savings1,570  1,580  1,618  1,274  1,315 
Time36,630  42,262  45,082  45,210  48,785 
Total interest-bearing188,453  183,102  203,744  320,483  178,139 
Total Bank of Kansas City423,300  422,711  467,664  579,604  447,042 
          
TOTAL BOK FINANCIAL$20,619,443  $21,059,729  $21,153,347  $21,140,859  $20,289,056 


NET INTEREST MARGIN TREND -- UNAUDITED
BOK FINANCIAL CORPORATION
 Three Months Ended
 Sept. 30, 2015 June 30, 2015 March 31, 2015 Dec. 31, 2014 Sept. 30, 2014
          
TAX-EQUIVALENT ASSETS YIELDS         
Interest-bearing cash and cash equivalents0.28% 0.25% 0.27% 0.28% 0.20%
Trading securities2.70% 1.85% 2.55% 2.48% 2.67%
Investment securities:         
Taxable5.49% 5.49% 5.51% 5.68% 5.66%
Tax-exempt1.54% 1.56% 1.56% 1.56% 1.56%
Total investment securities3.04% 3.05% 3.04% 3.11% 3.03%
Available for sale securities:         
Taxable1.99% 1.92% 1.95% 1.97% 1.94%
Tax-exempt4.15% 4.21% 4.40% 4.23% 3.14%
Total available for sale securities2.01% 1.94% 1.98% 1.99% 1.95%
Fair value option securities2.30% 2.17% 2.28% 2.18% 2.05%
Restricted equity securities5.95% 5.82% 5.79% 5.77% 5.99%
Residential mortgage loans held for sale3.79% 3.37% 3.41% 3.87% 3.79%
Loans3.54% 3.65% 3.59% 3.73% 3.78%
Allowance for loan losses         
Loans, net of allowance3.59% 3.70% 3.64% 3.78% 3.83%
Total tax-equivalent yield on earning assets2.83% 2.84% 2.80% 2.86% 2.93%
          
COST OF INTEREST-BEARING LIABILITIES         
Interest-bearing deposits:         
Interest-bearing transaction0.08% 0.09% 0.10% 0.09% 0.10%
Savings0.10% 0.11% 0.10% 0.11% 0.12%
Time1.33% 1.36% 1.46% 1.47% 1.56%
Total interest-bearing deposits0.34% 0.35% 0.37% 0.38% 0.41%
Funds purchased0.08% 0.08% 0.09% 0.08% 0.07%
Repurchase agreements0.03% 0.03% 0.04% 0.04% 0.05%
Other borrowings0.30% 0.31% 0.32% 0.32% 0.34%
Subordinated debt1.04% 2.21% 2.52% 2.50% 2.46%
Total cost of interest-bearing liabilities0.32% 0.35% 0.38% 0.39% 0.41%
Tax-equivalent net interest revenue spread2.51% 2.49% 2.42% 2.47% 2.52%
Effect of noninterest-bearing funding sources and other0.10% 0.12% 0.13% 0.14% 0.15%
Tax-equivalent net interest margin2.61% 2.61% 2.55% 2.61% 2.67%
 
Yield calculations are shown on a tax equivalent basis at the statutory federal and state rates for the periods presented. The yield calculations exclude security trades that have been recorded on trade date with no corresponding interest income and the unrealized gains and losses. The yield calculation also includes average loan balances for which the accrual of interest has been discontinued and are net of unearned income. Yield/rate calculations are generally based on the conventions that determine how interest income and expense is accrued.


CREDIT QUALITY INDICATORS -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands, except ratios)
 Three Months Ended
 Sept. 30, 2015 June 30, 2015 March 31, 2015 Dec. 31, 2014 Sept. 30, 2014
Nonperforming assets:         
Nonaccruing loans:         
Commercial$33,798  $24,233  $13,880  $13,527  $16,404 
Commercial real estate10,956  20,139  19,902  18,557  30,660 
Residential mortgage44,099  45,969  46,487  48,121  48,907 
Personal494  550  464  566  580 
Total nonaccruing loans89,347  90,891  80,733  80,771  96,551 
Accruing renegotiated loans guaranteed by U.S. government agencies81,598  82,368  80,287  73,985  70,459 
Real estate and other repossessed assets:         
Guaranteed by U.S. government agencies2      49,898  46,809 
Other33,116  35,499  45,551  51,963  51,062 
Total real estate and other repossessed assets33,116  35,499  45,551  101,861  97,871 
Total nonperforming assets$204,061  $208,758  $206,571  $256,617  $264,881 
Total nonperforming assets excluding those guaranteed by U.S. government agencies$118,578  $122,673  $123,028  $129,022  $143,778 
          
Nonaccruing loans by loan class:         
Commercial:         
Energy$17,880  $6,841  $1,875  $1,416  $1,508 
Services10,692  10,944  4,744  5,201  3,584 
Wholesale / retail3,058  4,166  4,401  4,149  5,502 
Manufacturing352  379  417  450  3,482 
Healthcare1,218  1,278  1,558  1,380  1,417 
Other commercial and industrial598  625  885  931  911 
Total commercial33,798  24,233  13,880  13,527  16,404 
Commercial real estate:         
Residential construction and land development4,748  9,367  9,598  5,299  14,634 
Retail1,648  3,826  3,857  3,926  4,009 
Office684  2,360  2,410  3,420  3,499 
Multifamily185  195       
Industrial76  76  76     
Other commercial real estate3,615  4,315  3,961  5,912  8,518 
Total commercial real estate10,956  20,139  19,902  18,557  30,660 
Residential mortgage:         
Permanent mortgage30,660  32,187  33,365  34,845  35,137 
Permanent mortgage guaranteed by U.S. government agencies3,885  3,717  3,256  3,712  3,835 
Home equity9,554  10,065  9,866  9,564  9,935 
Total residential mortgage44,099  45,969  46,487  48,121  48,907 
Personal494  550  464  566  580 
Total nonaccruing loans$89,347  $90,891  $80,733  $80,771  $96,551 
          
          
CREDIT QUALITY INDICATORS -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands, except ratios) 
 Three Months Ended
 Sept. 30, 2015 June 30, 2015 March 31, 2015 Dec. 31, 2014 Sept. 30, 2014
Performing loans 90 days past due1$101  $99  $523  $125  $25 
          
Gross charge-offs$(5,274) $(2,877) $(2,169) $(7,224) $(2,638)
Recoveries3,521  2,206  10,523  5,036  3,114 
Net recoveries (charge-offs)$(1,753) $(671) $8,354  $(2,188) $476 
          
Provision for credit losses$7,500  $4,000  $  $  $ 
          
Allowance for loan losses to period end loans1.33% 1.33% 1.35% 1.33% 1.40%
Combined allowance for credit losses to period end loans1.35% 1.34% 1.35% 1.34% 1.41%
Nonperforming assets to period end loans and repossessed assets1.33% 1.38% 1.40% 1.79% 1.92%
Net charge-offs (annualized) to average loans0.05% 0.02% (0.23)% 0.06% (0.01)%
Allowance for loan losses to nonaccruing loans228.45% 221.24% 244.86% 234.06% 198.08%
Combined allowance for credit losses to nonaccruing loans232.48% 222.21% 246.05% 235.59% 199.35%
1  Excludes residential mortgage loans guaranteed by agencies of the U.S. government.
2  Approximately $50 million was reclassified from Real estate and other repossessed assets to Receivables on the balance sheet on January 1, 2015 with the adoption of Financial Accounting Standards Board Update No. 2014-14, Classification of Certain Government-Guaranteed Mortgage Loans Upon Foreclosure ("ASU 2014-14"). Upon foreclosure of loans for which the loan balance is expected to be recovered from the guarantee by a U.S. government agency, the loan balance will be directly reclassified to other receivables without including such foreclosed assets in real estate and other repossessed assets.


For Further Information Contact: Joseph Crivelli Investor Relations (918) 595-3027 Andrea Myers Corporate Communications (918) 594-7794

Primary Logo

View Comments and Join the Discussion!