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BOK Financial Reports Quarterly Earnings of $106 million

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TULSA, Okla., April 25, 2018 (GLOBE NEWSWIRE) -- BOK Financial Corporation (NASDAQ:BOKF) reported net income of $105.6 million or $1.61 per diluted share for the first quarter of 2018. Net income was $72.5 million or $1.11 per diluted share for the fourth quarter of 2017 and $88.4 million or $1.35 per diluted share for the first quarter of 2017. Lower federal corporate income tax rates decreased income tax expense for the first quarter of 2018 by approximately $13.8 million. Accounting for the Tax Cuts and Jobs Act increased income tax expense for the fourth quarter of 2017 by $11.7 million.

Steven G. Bradshaw, president and chief executive officer, stated, "The entire company executed extremely well in the first quarter, resulting in one of the strongest quarters in company history. Loan growth accelerated, driven by growth in key lending businesses including energy, healthcare, commercial and industrial, and commercial real estate. We continued to benefit from the current interest rate environment and saw an additional uptick in net interest margin, which in conjunction with higher earning assets led to a significant increase in net interest revenue. Our fee–generating businesses benefited from higher gain–on–sale margins in the mortgage business, and our robust wealth management business surpassed $100 million in total revenue for the first time in company history. Finally, we continue to maintain expense discipline across the company, which has resulted in material earnings leverage and growth in pretax income."

Bradshaw added, "The economy across the BOK Financial footprint is strong, the financial markets are healthy, and the credit environment remains benign with no trouble spots on the horizon. Accordingly, we are optimistic about prospects for continued earnings growth through the remainder of 2018."

 First Quarter 2018 Highlights

  • Net interest revenue totaled $219.7 million for the first quarter of 2018, an increase of $2.9 million over the fourth quarter of 2017. Net interest margin increased to 2.99 percent for the first quarter of 2018 from 2.97 percent for the fourth quarter of 2017. Average earning assets grew by $120 million over the prior quarter.
  • Fees and commissions revenue totaled $159.0 million for the first quarter of 2018, largely unchanged compared to the fourth quarter of 2017 on a comparable presentation basis. Adoption of the new revenue recognition accounting standard in the first quarter of 2018 resulted in $9.5 million of interchange fees we pay to issuing banks being netted against transaction card revenue. Previously these costs were included in data processing and communications expense. Increased mortgage banking and transaction card revenue were offset by decreased brokerage and trading revenue.
  • Operating expense was $244.4 million for the first quarter of 2018, a $10.1 million decrease compared to the fourth quarter of 2017 on a comparable presentation basis. Personnel expense decreased $5.4 million, primarily due to decreased incentive compensation expense. Non-personnel expense decreased $4.7 million. Lower professional fees and services expense and mortgage banking expense were partially offset by a write-down of certain repossessed oil and gas properties.
  • Income tax expense was $30.9 million or 22.7 percent of net income before taxes for the first quarter of 2018 compared to $54.3 million or 42.9 percent for the fourth quarter of 2017. Beginning January 1, 2018, the Tax Cuts and Jobs Act decreased the corporate income tax rate from 35% to 21%. Accounting for the Act required us to revalue our deferred tax assets and liabilities in 2017. We anticipate our effective tax rate to be between 22 percent and 23 percent for 2018.
  • The Company recorded a $5.0 million negative provision for credit losses in the first quarter of 2018, due to improved credit metric trends. A $7.0 million negative provision for credit losses was recorded in the fourth quarter of 2017. The company had net charge-offs of $1.3 million or 0.03 percent of average loans on an annualized basis in the first quarter of 2018, compared to net charge-offs of $11.7 million or 0.27 percent of average loans on an annualized basis for the fourth quarter of 2017.
  • The combined allowance for credit losses totaled $228 million or 1.32 percent of outstanding loans at March 31, 2018, compared to $234 million or 1.37 percent of outstanding loans at December 31, 2017.
  • Nonperforming assets that are not guaranteed by U.S. government agencies totaled $195 million or 1.13 percent of outstanding loans and repossessed assets at March 31, 2018 and $207 million or 1.22 percent of outstanding loans and repossessed assets at December 31, 2017. In addition, potential problem loans decreased $19 million to $222 million at March 31, 2018.
  • Average loan balances grew by $80 million over the previous quarter, primarily due to growth in commercial loan balances. Period-end outstanding loan balances totaled $17.3 billion at March 31, 2018, a $184 million increase over December 31, 2017.
  • Average deposits were largely unchanged compared to the previous quarter. Average demand deposit balances decreased by $266 million, largely offset by a $202 million increase in interest-bearing transaction deposit balances. Period-end deposits were $22.2 billion at March 31, 2018, a $144 million increase over December 31, 2017. 
  • The common equity Tier 1 capital ratio at March 31, 2018 was 12.06 percent. Other regulatory capital ratios were Tier 1 capital ratio, 12.06 percent, total capital ratio, 13.49 percent, and leverage ratio, 9.40 percent. At December 31, 2017, the common equity Tier 1 capital ratio was 12.05 percent, the Tier 1 capital ratio was 12.05 percent, total capital ratio was 13.54 percent, and leverage ratio was 9.31 percent.
  • The company paid a regular cash dividend of $29.3 million or $0.45 per common share during the first quarter of 2018. On April 24, 2018, the board of directors approved a quarterly cash dividend of $0.45 per common share payable on or about May 25, 2018 to shareholders of record as of May 11, 2018.
  • The company repurchased 82,583 common shares at an average price of $91.83 per share during the first quarter of 2018. The company repurchased 80,000 common shares at an average price of $92.54 per share during the fourth quarter of 2017.

Net Interest Revenue

Net interest revenue was $219.7 million for the first quarter of 2018, a $2.9 million increase over the fourth quarter of 2017.

Net interest margin was 2.99 percent for the first quarter of 2018, an increase of 2 basis points over the fourth quarter of 2017. Lower federal income tax rates which became effective on January 1, 2018 decreased net interest margin by approximately 3 basis points. The yield on average earning assets was 3.61 percent, an increase of 12 basis points over the prior quarter. The loan portfolio yield was 4.45 percent, up 16 basis points. The yield on the available for sale securities portfolio increased 2 basis points to 2.23 percent. The yield on interest-bearing cash and cash equivalents increased 30 basis points. Funding costs were 0.93 percent, up 14 basis points. The cost of interest-bearing deposits increased 9 basis points to 0.57 percent. The cost of other borrowed funds was up 22 basis points to 1.50 percent. The benefit to net interest margin from assets funded by non-interest liabilities increased to 31 basis points from 27 basis points in the fourth quarter of 2017.

Average earning assets increased $120 million over the first quarter of 2018. Trading securities balances increased $373 million. Average interest-bearing cash and cash equivalents balances were up $83 million. Average loan balances grew by $80 million. Available for sale securities decreased $199 million and fair value option securities held as an economic hedge of our mortgage servicing rights decreased $166 million. Average interest-bearing deposit balances increased $232 million over the fourth quarter of 2017. The average balance of borrowed funds increased $161 million.

Fees and Commissions Revenue

Fees and commissions revenue totaled $159.0 million for the first quarter of 2018. Excluding the netting impact from the implementation of the revenue recognition accounting standard, this is consistent with results from the fourth quarter of 2017.

Brokerage and trading revenue decreased $2.4 million compared to the fourth quarter of 2017 due primarily to the timing and volume of completed investment banking transactions. Many municipal and public school district customers completed offerings in the previous quarter in advance of tax law changes.

Mortgage banking revenue totaled $26.0 million for the first quarter of 2018, a $1.7 million increase compared to the fourth quarter of 2017. Revenue from mortgage loan production increased $1.7 million.  Internal changes to better manage our loan production pipeline, improved values of originated servicing rights and an increase in delivery through the retail channel resulted in a 21 basis point increase in gain on sale margin. Loan production volume increased $12 million.

Operating Expense

Total operating expense was $244.4 million for the first quarter of 2018, a $10.0 million decrease compared to the fourth quarter of 2017 on a comparable presentation basis. 

Personnel expense decreased $5.4 million. Incentive compensation expense decreased $10.6 million primarily due to changes in assumptions for performance compensation awards. The predominant factor used to measure performance for certain share-based and executive cash-based incentives, our earnings per share compared to peers, was impacted by tax reform. Our relative EPS growth was lower than anticipated once all peer data for 2017 became available. Employee benefits expense increased $3.0 million primarily due to a seasonal increase in payroll taxes partially offset by an overall decrease in employee healthcare costs. Regular compensation increased $2.2 million as merit increases were effective for most employees during the first quarter of 2018.

Non-personnel expense decreased $4.7 million. Professional fees and services expense decreased $5.1 million mainly due to expenses related to projects completed in the fourth quarter of 2017. Mortgage banking costs decreased $4.2 million primarily due to a $3.5 million decrease in accruals related to default servicing and loss mitigation costs on loans serviced for others. The fourth quarter also included a $2.0 million contribution to the BOKF Foundation.

Net losses and operating expenses of repossessed assets increased $7.4 million, primarily due to a $5.0 million write-down on a set of repossessed oil and gas properties based on an updated analysis of production data.

Loans, Deposits and Capital

Loans

Outstanding loans were $17.3 billion at March 31, 2018, up $184 million or 4% on an annualized basis over December 31, 2017, primarily due to growth in commercial loan balances during the quarter. Increased commercial real estate loan balances were offset by lower residential mortgage loan balances.

Outstanding commercial loan balances grew by $186 million or 7% on an annualized basis. Manufacturing sector loan balances were up $63 million. Wholesale/retail sector loan balances grew by $60 million. Healthcare sector loan balances increased $45 million. Energy loan balances grew by $39 million. Unfunded energy loan commitments increased $97 million over December 31, 2017 to $3.0 billion at March 31, 2018. Other commercial and industrial loans increased by $36 million. This growth was partially offset by a $59 million decrease in service sector loan balances.

Commercial real estate loan balances increased $27 million or 3% on an annualized basis. Loans secured by retail facilities were up $59 million. Loans secured by industrial properties grew by $41 million. Multifamily residential loans increased $29 million. This growth was partially offset by a $95 million decrease in loans secured by office buildings.

Deposits

Period-end deposits totaled $22.2 billion at March 31, 2018, a $144 million increase over December 31, 2017. Time deposit balances grew by $68 million and demand deposit balances increased $63 million. This growth was partially offset by a $23 million decrease in interest-bearing transaction account balances. Consumer Banking deposits were up $151 million and Wealth Management deposits grew by $149 million. Commercial Banking deposits decreased $49 million.

Capital

The company's common equity Tier 1 capital ratio was 12.06 percent at March 31, 2018. In addition, the company's Tier 1 capital ratio was 12.06 percent, total capital ratio was 13.49 percent and leverage ratio was 9.40 percent at March 31, 2018. At December 31, 2017, the company's common equity Tier 1 capital ratio was 12.05 percent, Tier 1 capital ratio was 12.05 percent, total capital ratio was 13.54 percent, and leverage ratio was 9.31 percent.

The company's tangible common equity ratio, a non-GAAP measure, was 9.18 percent at March 31, 2018 and 9.50 percent at December 31, 2017. The tangible common equity ratio is primarily based on total shareholders' equity, which includes unrealized gains and losses on available for sale securities. The company has elected to exclude unrealized gains and losses from available for sale securities from its calculation of Tier 1 capital for regulatory capital purposes, consistent with the treatment under the previous capital rules.

Credit Quality

Nonperforming assets totaled $278 million or 1.60 percent of outstanding loans and repossessed assets at March 31, 2018, down from $290 million or 1.69 percent at December 31, 2017. Nonperforming assets that are not guaranteed by U.S. government agencies totaled $195 million or 1.13 percent of outstanding loans and repossessed assets (excluding those guaranteed by U.S. government agencies) at March 31, 2018, compared to $207 million or 1.22 percent at December 31, 2017. 

Nonaccruing loans totaled $180 million or 1.04 percent of outstanding loans at March 31, 2018, compared to $188 million or 1.10 percent of outstanding loans at December 31, 2017. The decrease in nonaccruing loans was primarily due to a $3.0 million decrease in manufacturing sector loans and a $2.3 million decrease in energy loans. New nonaccruing loans identified in the first quarter totaled $10 million, offset by $12 million in payments received, $2.9 million in charge-offs and $3.7 million in foreclosures and repossessions. At March 31, 2018, nonaccruing commercial loans totaled $131 million or 1.20 percent of outstanding commercial loans, nonaccruing commercial real estate loans totaled $2.5 million or 0.07 percent of outstanding commercial real estate loans and nonaccruing residential mortgage loans totaled $46 million or 2.35 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, totaled $222 million at March 31, down from $241 million at December 31. The decrease largely resulted from energy and healthcare sector loans, partially offset by an increase in wholesale/retail sector loans.

The company had net charge-offs of $1.3 million or 0.03 percent of average loans on an annualized basis for the first quarter of 2018, compared to net charge-offs of $11.7 million or 0.27 percent of average loans on an annualized basis for the fourth quarter of 2017. Gross charge-offs were $2.9 million for the first quarter, compared to $14.7 million for the previous quarter. Recoveries totaled $1.6 million for the first quarter of 2018 and $3.1 million for the fourth quarter of 2017.

Based on an evaluation of all credit factors, including changes in nonaccruing and potential problem loans, overall loan portfolio growth and net charge-offs, the company determined that a $5.0 million negative provision for credit losses was appropriate for the first quarter of 2018. The company had a $7.0 million negative provision for credit losses in the fourth quarter of 2017.

The combined allowance for credit losses totaled $228 million or 1.32 percent of outstanding loans and 133 percent of nonaccruing loans at March 31, 2018, excluding residential mortgage loans guaranteed by U.S. government agencies. The allowance for loan losses was $224 million and the accrual for off-balance sheet credit losses was $4.1 million. At December 31, 2017, the combined allowance for credit losses was $234 million or 1.37 percent of outstanding loans and 131 percent of nonaccruing loans, excluding loans guaranteed by U.S. government agencies. The allowance for loan losses was $231 million and the accrual for off-balance sheet credit losses was $3.7 million.

Securities and Derivatives

The fair value of the available for sale securities portfolio totaled $8.2 billion at March 31, 2018, a $72 million decrease compared to December 31, 2017. At March 31, 2018, the available for sale portfolio consisted primarily of $5.4 billion of residential mortgage-backed securities fully backed by U.S. government agencies and $2.7 billion of commercial mortgage-backed securities fully backed by U.S. government agencies. At March 31, 2018, the available for sale securities portfolio had a net unrealized loss of $148 million compared to a $47 million net unrealized loss at December 31, 2017.

Trading securities increased $830 million to $1.3 billion during the first quarter of 2018 as a result of expanded relationships with mortgage loan originator clients. The company holds an inventory of trading securities in support of sales to a variety of customers, including banks, corporations, insurance companies, money managers, and others.

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.

The net economic cost of the changes in fair value of mortgage servicing rights and related economic hedges was $256 thousand during the first quarter of 2018, including a $21.2 million increase in the fair value of mortgage servicing rights, a $23.3 million decrease in the fair value of securities and derivative contracts held as an economic hedge and $1.8 million of related net interest revenue.

The fair value of mortgage servicing rights increased by $5.9 million during the fourth quarter of 2017.  The fair value of securities and interest rate derivative contracts held as an economic hedge of mortgage servicing rights decreased by $7.3 million. Related net interest revenue was $2.7 million during the fourth quarter of 2017.

Conference Call and Webcast

The company will hold a conference call at 9 a.m. Central time on Wednesday, April 25, 2018 to discuss the financial results with investors. The live audio webcast and presentation slides will be available on the company's website at www.bokf.com. The conference call can also be accessed by dialing 1-201-689-8471. A conference call and webcast replay will also be available shortly after conclusion of the live call at www.bokf.com or by dialing 1-412-317-6671 and referencing conference ID # 13678702.

About BOK Financial Corporation

BOK Financial Corporation is a $33 billion regional financial services company based in Tulsa, Oklahoma. The company's stock is publicly traded on NASDAQ under the Global Select market listings (NASDAQ:BOKF). BOK Financial's holdings include BOKF, NA, BOK Financial Securities, Inc. and The Milestone Group, Inc. BOKF, NA operates TransFund, Cavanal Hill Investment Management, BOK Financial Asset Management, Inc. and seven banking divisions: Bank of Albuquerque, Bank of Arizona, Bank of Arkansas, Mobank, Bank of Oklahoma, Bank of Texas and Colorado State Bank and Trust. Through its subsidiaries, the company provides commercial and consumer banking, investment and trust services, mortgage origination and servicing, and an electronic funds transfer network. For more information, visit www.bokf.com

The company will continue to evaluate critical assumptions and estimates, such as the appropriateness of the allowance for credit losses and asset impairment as of March 31, 2018 through the date its financial statements are filed with the Securities and Exchange Commission and will adjust amounts reported if necessary.

This news release contains forward-looking statements that are based on management's beliefs, assumptions, current expectations, estimates and projections about BOK Financial, the financial services industry and the economy generally. Words such as "anticipates," "believes," "estimates," "expects," "forecasts," "plans," "projects," "will,"  "intends," variations of such words and similar expressions are intended to identify such forward-looking statements. Management judgments relating to and discussion of the provision and allowance for credit losses, allowance for uncertain tax positions, accruals for loss contingencies and valuation of mortgage servicing rights involve judgments as to expected events and are inherently forward-looking statements. Assessments that BOK Financial's acquisitions and other growth endeavors will be profitable are necessary statements of belief as to the outcome of future events based in part on information provided by others which BOK Financial has not independently verified. These statements are not guarantees of future performance and involve certain risks, uncertainties, and assumptions which are difficult to predict with regard to timing, extent, likelihood and degree of occurrence. Therefore, actual results and outcomes may materially differ from what is expected, implied or forecasted in such forward-looking statements. Internal and external factors that might cause such a difference include, but are not limited to changes in commodity prices, interest rates and interest rate relationships, demand for products and services, the degree of competition by traditional and nontraditional competitors, changes in banking regulations, tax laws, prices, levies and assessments, the impact of technological advances, and trends in customer behavior as well as their ability to repay loans. BOK Financial and its affiliates undertake no obligation to update, amend or clarify forward-looking statements, whether as a result of new information, future events, or otherwise.

 
BALANCE SHEETS -- UNAUDITED
BOK FINANCIAL CORPORATION
(In thousands)
  March 31, 2018   Dec. 31, 2017   March 31, 2017
ASSETS          
Cash and due from banks $ 544,534     $ 602,510     $ 546,575  
Interest-bearing cash and cash equivalents 2,054,899     1,714,544     2,220,640  
Trading securities 1,292,432     462,676     677,156  
Investment securities 416,672     461,793     519,402  
Available for sale debt securities 8,249,432     8,321,578     8,437,291  
Fair value option securities 513,668     755,054     441,714  
Restricted equity securities 338,552     320,189     283,936  
Residential mortgage loans held for sale 225,190     221,378     248,707  
Loans:          
Commercial 10,919,667     10,733,975     10,327,110  
Commercial real estate 3,506,782     3,479,987     3,871,063  
Residential mortgage 1,945,769     1,973,686     1,946,274  
Personal 965,632     965,776     847,459  
Total loans 17,337,850     17,153,424     16,991,906  
Allowance for loan losses (223,967 )   (230,682 )   (248,710 )
Loans, net of allowance 17,113,883     16,922,742     16,743,196  
Premises and equipment, net 314,347     317,335     325,546  
Receivables 478,027     442,897     394,394  
Goodwill 447,430     447,430     445,738  
Intangible assets, net 29,658     28,658     42,556  
Mortgage servicing rights 274,978     252,867     249,403  
Real estate and other repossessed assets, net 23,652     28,437     42,726  
Derivative contracts, net 286,687     220,502     304,727  
Cash surrender value of bank-owned life insurance 318,661     316,498     310,537  
Receivable on unsettled securities sales 3,638     75,980     9,921  
Other assets 435,152     359,092     384,767  
TOTAL ASSETS $ 33,361,492     $ 32,272,160     $ 32,628,932  
           
LIABILITIES AND EQUITY          
Deposits:          
Demand $ 9,306,023     $ 9,243,338     $ 9,506,573  
Interest-bearing transaction 10,226,971     10,250,393     10,359,214  
Savings 505,952     469,158     465,724  
Time 2,166,254     2,098,416     2,243,848  
Total deposits 22,205,200     22,061,305     22,575,359  
Funds purchased 130,561     58,628     47,629  
Repurchase agreements 415,763     516,335     508,352  
Other borrowings 5,727,025     5,134,897     5,238,947  
Subordinated debentures 144,687     144,677     144,649  
Accrued interest, taxes and expense 156,146     164,895     140,235  
Due on unsettled securities purchases 94,424     151,198     137,069  
Derivative contracts, net 233,202     171,963     276,422  
Other liabilities 737,142     349,928     189,376  
TOTAL LIABILITIES 29,844,150     28,753,826     29,258,038  
Shareholders' equity:          
Capital, surplus and retained earnings 3,606,220     3,531,541     3,346,965  
Accumulated other comprehensive loss (111,191 )   (36,174 )   (5,221 )
TOTAL SHAREHOLDERS' EQUITY 3,495,029     3,495,367     3,341,744  
Non-controlling interests 22,313     22,967     29,150  
TOTAL EQUITY 3,517,342     3,518,334     3,370,894  
TOTAL LIABILITIES AND EQUITY $ 33,361,492     $ 32,272,160     $ 32,628,932  
                       


AVERAGE BALANCE SHEETS -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands)
  Three Months Ended
  Mar. 31, 2018   Dec. 31, 2017   Sept. 30, 2017   June 30, 2017   Mar. 31, 2017
ASSETS                  
Interest-bearing cash and cash equivalents $ 2,059,517     $ 1,976,395     $ 1,965,645     $ 2,007,746     $ 2,087,964  
Trading securities 933,404     560,321     491,613     456,028     579,549  
Investment securities 441,207     462,869     475,705     499,372     530,936  
Available for sale debt securities 8,236,938     8,435,916     8,428,353     8,384,057     8,567,049  
Fair value option securities 626,251     792,647     684,571     476,102     416,524  
Restricted equity securities 349,176     337,673     328,677     295,743     312,498  
Residential mortgage loans held for sale 199,380     257,927     256,343     245,401     220,325  
Loans:                  
Commercial 10,871,569     10,751,235     10,827,198     10,604,456     10,414,579  
Commercial real estate 3,491,335     3,485,583     3,528,330     3,676,976     3,903,850  
Residential mortgage 1,937,198     1,976,860     1,951,385     1,933,091     1,962,759  
Personal 961,379     967,329     949,750     915,010     854,637  
Total loans 17,261,481     17,181,007     17,256,663     17,129,533     17,135,825  
Allowance for loan losses (228,996 )   (246,143 )   (250,590 )   (251,632 )   (249,379 )
Total loans, net 17,032,485     16,934,864     17,006,073     16,877,901     16,886,446  
Total earning assets 29,878,358     29,758,612     29,636,980     29,242,350     29,601,291  
Cash and due from banks 564,585     576,737     546,653     530,352     547,104  
Derivative contracts, net 278,694     292,961     238,583     248,168     401,886  
Cash surrender value of bank-owned life insurance 317,334     315,034     313,079     311,310     309,223  
Receivable on unsettled securities sales 51,549     49,219     76,622     79,248     62,641  
Other assets 2,634,432     2,459,552     2,196,253     1,957,143     2,032,844  
TOTAL ASSETS $ 33,724,952     $ 33,452,115     $ 33,008,170     $ 32,368,571     $ 32,954,989  
                   
LIABILITIES AND EQUITY                  
Deposits:                  
Demand $ 9,151,272     $ 9,417,351     $ 9,389,849     $ 9,338,683     $ 9,101,763  
Interest-bearing transaction 10,344,469     10,142,744     10,088,522     10,087,640     10,567,475  
Savings 480,110     466,496     464,130     461,586     441,254  
Time 2,151,044     2,134,469     2,176,820     2,204,422     2,258,930  
Total deposits 22,126,895     22,161,060     22,119,321     22,092,331     22,369,422  
Funds purchased 106,361     63,713     49,774     63,263     55,508  
Repurchase agreements 426,051     424,617     361,512     427,353     523,561  
Other borrowings 6,326,967     6,209,903     6,162,641     5,572,031     5,737,955  
Subordinated debentures 144,682     144,673     144,663     144,654     144,644  
Derivative contracts, net 223,373     288,408     221,371     178,695     405,444  
Due on unsettled securities purchases 144,077     218,684     145,155     157,438     91,529  
Other liabilities 747,972     425,667     319,092     323,373     299,534  
TOTAL LIABILITIES 30,246,378     29,936,725     29,523,529     28,959,138     29,627,597  
Total equity 3,478,574     3,515,390     3,484,641     3,409,433     3,327,392  
TOTAL LIABILITIES AND EQUITY $ 33,724,952     $ 33,452,115     $ 33,008,170     $ 32,368,571     $ 32,954,989  
                                       


STATEMENTS OF EARNINGS -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands, except per share data)
  Three Months Ended
  March 31,
  2018   2017
       
Interest revenue $ 265,407     $ 226,390  
Interest expense 45,671     25,208  
Net interest revenue 219,736     201,182  
Provision for credit losses (5,000 )    
Net interest revenue after provision for credit losses 224,736     201,182  
Other operating revenue:      
Brokerage and trading revenue 30,648     33,623  
Transaction card revenue1 20,990     18,177  
Fiduciary and asset management revenue 41,832     38,631  
Deposit service charges and fees 27,161     27,777  
Mortgage banking revenue 26,025     25,191  
Other revenue 12,330     11,752  
Total fees and commissions 158,986     155,151  
Other gains (losses), net (664 )   3,627  
Gain (loss) on derivatives, net (5,685 )   (450 )
Gain (loss) on fair value option securities, net (17,564 )   (1,140 )
Change in fair value of mortgage servicing rights 21,206     1,856  
Gain (loss) on available for sale securities, net (290 )   2,049  
Total other operating revenue 155,989     161,093  
Other operating expense:              
Personnel 139,947     136,425  
Business promotion 6,010     6,717  
Professional fees and services 10,200     11,417  
Net occupancy and equipment 24,046     21,624  
Insurance 6,593     6,404  
Data processing and communications1 27,817     25,699  
Printing, postage and supplies 4,089     3,851  
Net losses and operating expenses of repossessed assets 7,705     1,009  
Amortization of intangible assets 1,300     1,802  
Mortgage banking costs 10,149     13,003  
Other expense 6,574     7,557  
Total other operating expense 244,430     235,508  
       
Net income before taxes 136,295     126,767  
Federal and state income taxes 30,948     38,103  
       
Net income 105,347     88,664  
Net income (loss) attributable to non-controlling interests (215 )   308  
Net income attributable to BOK Financial Corporation shareholders $ 105,562     $ 88,356  
       
Average shares outstanding:      
Basic 64,847,334     64,715,964  
Diluted 64,888,033     64,783,737  
       
Net income per share:      
Basic $ 1.61     $ 1.35  
Diluted $ 1.61     $ 1.35  

1 Non-GAAP measure to net interchange charges from prior quarters between transaction card revenue and data processing and communications expense. This measure has no effect on net income or earnings per share.


FINANCIAL HIGHLIGHTS -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands, except ratio and share data)
  Three Months Ended
  Mar. 31, 2018   Dec. 31, 2017   Sept. 30, 2017   June 30, 2017   Mar. 31, 2017
Capital:                  
Period-end shareholders' equity $ 3,495,029     $ 3,495,367     $ 3,488,814     $ 3,422,469     $ 3,341,744  
Risk weighted assets $ 26,025,660     $ 25,733,711     $ 25,409,728     $ 25,130,802     $ 24,901,019  
Risk-based capital ratios:                  
Common equity tier 1 12.06 %   12.05 %   11.90 %   11.76 %   11.59 %
Tier 1 12.06 %   12.05 %   11.90 %   11.76 %   11.59 %
Total capital 13.49 %   13.54 %   13.47 %   13.36 %   13.25 %
Leverage ratio 9.40 %   9.31 %   9.30 %   9.27 %   8.89 %
Tangible common equity ratio1 9.18 %   9.50 %   9.23 %   9.24 %   8.88 %
                   
Common stock:                  
Book value per share $ 53.39     $ 53.45     $ 53.30     $ 52.32     $ 51.09  
Tangible book value per share 46.10     46.17     45.88     44.87     43.63  
Market value per share:                  
High $ 107.00     $ 93.97     $ 90.69     $ 88.31     $ 85.25  
Low $ 89.82     $ 79.67     $ 77.10     $ 74.09     $ 73.44  
Cash dividends paid $ 29,342     $ 29,328     $ 28,655     $ 28,652     $ 28,646  
Dividend payout ratio 27.80 %   40.46 %   33.46 %   32.50 %   32.42 %
Shares outstanding, net 65,459,505     65,394,937     65,456,786     65,416,403     65,408,019  
Stock buy-back program:                  
Shares repurchased 82,583     80,000              
Amount $ 7,584     $ 7,403     $     $     $  
Average price per share $ 91.83     $ 92.54     $     $     $  
                   
Performance ratios (quarter annualized):
Return on average assets 1.27 %   0.86 %   1.03 %   1.09 %   1.09 %
Return on average equity 12.39 %   8.24 %   9.83 %   10.46 %   10.86 %
Net interest margin 2.99 %   2.97 %   3.01 %   2.89 %   2.81 %
Efficiency ratio3 65.09 %   66.07 %   65.92 %   63.66 %   64.90 %
                   
Reconciliation of non-GAAP measures:
1  Tangible common equity ratio:                  
Total shareholders' equity $ 3,495,029     $ 3,495,367     $ 3,488,814     $ 3,422,469     $ 3,341,744  
Less: Goodwill and intangible assets, net 477,088     476,088     485,710     487,452     488,294  
Tangible common equity $ 3,017,941     $ 3,019,279     $ 3,003,104     $ 2,935,017     $ 2,853,450  
                   
Total assets $ 33,361,492     $ 32,272,160     $ 33,005,515     $ 32,263,532     $ 32,628,932  
Less: Goodwill and intangible assets, net 477,088     476,088     485,710     487,452     488,294  
Tangible assets $ 32,884,404     $ 31,796,072     $ 32,519,805     $ 31,776,080     $ 32,140,638  
                   
Tangible common equity ratio 9.18 %   9.50 %   9.23 %   9.24 %   8.88 %
                   
Other data:                  
Fiduciary assets $ 46,648,290     $ 48,761,477     $ 45,177,185     $ 45,089,153     $ 44,992,920  
Tax equivalent interest $ 2,010     $ 4,131     $ 4,314     $ 4,330     $ 4,428  
Net unrealized gain (loss) on available for sale securities $ (148,247 )   $ (47,497 )   $ 14,061     $ 16,041     $ (5,537 )
                   
Mortgage banking:                  
Mortgage production revenue $ 9,452     $ 7,786     $ 8,329     $ 13,840     $ 8,543  
                   
Mortgage loans funded for sale $ 664,958     $ 840,080     $ 832,796     $ 902,978     $ 711,019  
Add: current period-end outstanding commitments 298,318     222,919     334,337     362,088     381,732  
Less: prior period end outstanding commitments 222,919     334,337     362,088     381,732     318,359  
Total mortgage production volume $ 740,357     $ 728,662     $ 805,045     $ 883,334     $ 774,392  
                   
Mortgage loan refinances to mortgage loans funded for sale 42 %   47 %   38 %   33 %   44 %
Gain on sale margin 1.28 %   1.07 %   1.03 %   1.57 %   1.10 %
                                       
Mortgage servicing revenue $ 16,573     $ 16,576     $ 16,561     $ 16,436     $ 16,648  
Average outstanding principal balance of mortgage loans serviced for others 22,027,726     22,054,877     22,079,177     22,055,127     22,006,295  
Average mortgage servicing revenue rates 0.31 %   0.30 %   0.30 %   0.30 %   0.31 %
                   
Gain (loss) on mortgage servicing rights, net of economic hedge:
Gain (loss) on mortgage hedge derivative contracts, net $ (5,698 )   $ (3,057 )   $ 1,025     $ 3,241     $ (528 )
Gain (loss) on fair value option securities, net (17,564 )   (4,238 )   661     1,984     (1,140 )
Gain (loss) on economic hedge of mortgage servicing rights (23,262 )   (7,295 )   1,686     5,225     (1,668 )
Gain (loss) on changes in fair value of mortgage servicing rights 21,206     5,898     (639 )   (6,943 )   1,856  
Gain (loss) on changes in fair value of mortgage servicing rights, net of economic hedges, included in other operating revenue (2,056 )   (1,397 )   1,047     (1,718 )   188  
Net interest revenue on fair value option securities2 1,800     2,656     2,543     1,965     1,271  
Total economic benefit (cost) of changes in the fair value of mortgage servicing rights, net of economic hedges $ (256 )   $ 1,259     $ 3,590     $ 247     $ 1,459  

2    Actual interest earned on fair value option securities less internal transfer-priced cost of funds.
3    Prior periods shown on a comparable basis to net interchange charges between transaction card revenue and data processing and communications expense.


 
QUARTERLY EARNINGS TREND -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands, except ratio and per share data)
  Three Months Ended
  Mar. 31, 2018   Dec. 31, 2017   Sept. 30, 2017   June 30, 2017   Mar. 31, 2017
                   
Interest revenue $ 265,407     $ 255,767     $ 255,413     $ 235,181     $ 226,390  
Interest expense 45,671     38,904     36,961     29,977     25,208  
Net interest revenue 219,736     216,863     218,452     205,204     201,182  
Provision for credit losses (5,000 )   (7,000 )            
Net interest revenue after provision for credit losses 224,736     223,863     218,452     205,204     201,182  
Other operating revenue:                  
Brokerage and trading revenue 30,648     33,045     33,169     31,764     33,623  
Transaction card revenue1 20,990     20,028     22,929     20,009     18,177  
Fiduciary and asset management revenue 41,832     41,767     40,687     41,808     38,631  
Deposit service charges and fees 27,161     27,685     28,191     28,422     27,777  
Mortgage banking revenue 26,025     24,362     24,890     30,276     25,191  
Other revenue 12,330     11,762     13,670     14,984     11,752  
Total fees and commissions 158,986     158,649     163,536     167,263     155,151  
Other gains (losses), net (664 )   552     (1,283 )   6,108     3,627  
Gain (loss) on derivatives, net (5,685 )   (3,045 )   1,033     3,241     (450 )
Gain (loss) on fair value option securities, net (17,564 )   (4,238 )   661     1,984     (1,140 )
Change in fair value of mortgage servicing rights 21,206     5,898     (639 )   (6,943 )   1,856  
Gain (loss) on available for sale securities, net (290 )   (488 )   2,487     380     2,049  
Total other operating revenue 155,989     157,328     165,795     172,033     161,093  
Other operating expense:                  
Personnel 139,947     145,329     147,910     143,744     136,425  
Business promotion 6,010     7,317     7,105     7,738     6,717  
Charitable contributions to BOKF Foundation     2,000              
Professional fees and services 10,200     15,344     11,887     12,419     11,417  
Net occupancy and equipment 24,046     22,403     21,325     21,125     21,624  
Insurance 6,593     6,555     6,005     689     6,404  
Data processing and communications1 27,817     28,903     27,412     26,111     25,699  
Printing, postage and supplies 4,089     3,781     3,917     4,140     3,851  
Net losses (gains) and operating expenses of repossessed assets 7,705     340     6,071     2,267     1,009  
Amortization of intangible assets 1,300     1,430     1,744     1,803     1,802  
Mortgage banking costs 10,149     14,331     13,450     12,072     13,003  
Other expense 6,574     6,746     9,193     8,558     7,557  
Total other operating expense 244,430     254,479     256,019     240,666     235,508  
Net income before taxes 136,295     126,712     128,228     136,571     126,767  
Federal and state income taxes 30,948     54,347     42,438     47,705     38,103  
Net income 105,347     72,365     85,790     88,866     88,664  
Net income (loss) attributable to non-controlling interests (215 )   (127 )   141     719     308  
Net income attributable to BOK Financial Corporation shareholders $ 105,562     $ 72,492     $ 85,649     $ 88,147     $ 88,356  
                   
Average shares outstanding:                  
Basic 64,847,334     64,793,005     64,742,822     64,729,752     64,715,964  
Diluted 64,888,033     64,843,179     64,805,172     64,793,134     64,783,737  
Net income per share:                  
Basic $ 1.61     $ 1.11     $ 1.31     $ 1.35     $ 1.35  
Diluted $ 1.61     $ 1.11     $ 1.31     $ 1.35     $ 1.35  

1    Non-GAAP measure to net interchange charges from prior quarters between transaction card revenue and data processing and communications expense. This measure has no effect on net income or earnings per share.


LOANS TREND -- UNAUDITED
BOK FINANCIAL CORPORATION
(In thousands)
    Mar. 31, 2018   Dec. 31, 2017   Sept. 30, 2017   June 30, 2017   Mar. 31, 2017
Commercial:                    
Energy   $ 2,969,618     $ 2,930,156     $ 2,867,981     $ 2,847,240     $ 2,537,112  
Services   2,928,294     2,986,949     2,967,513     2,958,827     3,013,375  
Healthcare   2,359,928     2,314,753     2,239,451     2,221,518     2,265,604  
Wholesale/retail   1,531,576     1,471,256     1,658,098     1,543,695     1,506,243  
Manufacturing   559,695     496,774     519,446     546,137     543,430  
Other commercial and industrial   570,556     534,087     543,445     520,538     461,346  
Total commercial   10,919,667     10,733,975     10,795,934     10,637,955     10,327,110  
                     
Commercial real estate:                    
Multifamily   1,008,903     980,017     999,009     952,380     922,991  
Retail   750,396     691,532     725,865     722,805     745,046  
Office   737,144     831,770     797,089     862,973     860,889  
Industrial   613,608     573,014     591,080     693,635     871,463  
Residential construction and land development   117,458     117,245     112,102     141,592     135,994  
Other commercial real estate   279,273     286,409     292,997     315,207     334,680  
Total commercial real estate   3,506,782     3,479,987     3,518,142     3,688,592     3,871,063  
                     
Residential mortgage:                    
Permanent mortgage   1,047,785     1,043,435     1,013,965     989,040     977,743  
Permanent mortgages guaranteed by U.S. government agencies   177,880     197,506     187,370     191,729     204,181  
Home equity   720,104     732,745     744,415     758,429     764,350  
Total residential mortgage   1,945,769     1,973,686     1,945,750     1,939,198     1,946,274  
                     
Personal   965,632     965,776     947,008     917,900     847,459  
                     
Total   $ 17,337,850     $ 17,153,424     $ 17,206,834     $ 17,183,645     $ 16,991,906  


LOANS BY PRINCIPAL MARKET AREA -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands)
  Mar. 31, 2018   Dec. 31, 2017   Sept. 30, 2017   June 30, 2017   Mar. 31, 2017
                   
Bank of Oklahoma:                  
Commercial $ 3,265,013     $ 3,238,720     $ 3,408,973     $ 3,369,967     $ 3,189,183  
Commercial real estate 668,031     682,037     712,915     667,932     691,332  
Residential mortgage 1,419,281     1,435,432     1,405,900     1,398,021     1,404,054  
Personal 353,128     342,212     322,320     318,016     310,708  
Total Bank of Oklahoma 5,705,453     5,698,401     5,850,108     5,753,936     5,595,277  
                   
Bank of Texas:                  
Commercial 4,715,841     4,520,401     4,434,595     4,339,634     4,148,316  
Commercial real estate 1,254,421     1,261,864     1,236,702     1,360,164     1,452,988  
Residential mortgage 229,761     233,675     229,993     232,074     231,647  
Personal 363,608     375,084     375,173     354,222     312,092  
Total Bank of Texas 6,563,631     6,391,024     6,276,463     6,286,094     6,145,043  
                   
Bank of Albuquerque:                  
Commercial 315,701     343,296     367,747     369,370     407,403  
Commercial real estate 348,485     341,282     319,208     324,405     307,927  
Residential mortgage 93,490     98,018     101,983     103,849     106,432  
Personal 11,667     11,721     12,953     12,439     11,305  
Total Bank of Albuquerque 769,343     794,317     801,891     810,063     833,067  
                   
Bank of Arkansas:                  
Commercial 94,430     95,644     91,051     85,020     88,010  
Commercial real estate 88,700     87,393     80,917     73,943     74,469  
Residential mortgage 7,033     6,596     6,318     6,395     6,829  
Personal 9,916     9,992     10,388     11,993     6,279  
Total Bank of Arkansas 200,079     199,625     188,674     177,351     175,587  
                   
Colorado State Bank & Trust:                  
Commercial 1,180,655     1,130,714     1,124,200     1,065,780     998,216  
Commercial real estate 210,801     174,201     186,427     255,379     266,218  
Residential mortgage 64,530     63,350     63,734     63,346     62,313  
Personal 63,118     63,115     60,513     56,187     49,523  
Total Colorado State Bank & Trust 1,519,104     1,431,380     1,434,874     1,440,692     1,376,270  
                   
Bank of Arizona:                  
Commercial 624,106     687,792     634,809     617,759     643,222  
Commercial real estate 672,319     660,094     706,188     705,858     737,088  
Residential mortgage 39,227     41,771     40,730     37,034     36,737  
Personal 57,023     57,140     55,050     55,528     51,386  
Total Bank of Arizona 1,392,675     1,446,797     1,436,777     1,416,179     1,468,433  
                   
Mobank (Kansas City):                  
Commercial 723,921     717,408     734,559     790,425     852,760  
Commercial real estate 264,025     273,116     275,785     300,911     341,041  
Residential mortgage 92,447     94,844     97,092     98,479     98,262  
Personal 107,172     106,512     110,611     109,515     106,166  
Total Mobank (Kansas City) 1,187,565     1,191,880     1,218,047     1,299,330     1,398,229  
                   
TOTAL BOK FINANCIAL $ 17,337,850     $ 17,153,424     $ 17,206,834     $ 17,183,645     $ 16,991,906  

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)
  Mar. 31, 2018   Dec. 31, 2017   Sept. 30, 2017   June 30, 2017   Mar. 31, 2017
Bank of Oklahoma:                  
Demand $ 4,201,842     $ 3,885,008     $ 4,061,612     $ 4,353,421     $ 4,320,666  
Interest-bearing:                  
Transaction 6,051,302     5,901,293     5,909,259     5,998,787     6,114,288  
Savings 289,351     265,870     265,023     263,664     265,014  
Time 1,203,534     1,092,133     1,131,547     1,170,014     1,189,144  
Total interest-bearing 7,544,187     7,259,296     7,305,829     7,432,465     7,568,446  
Total Bank of Oklahoma 11,746,029     11,144,304     11,367,441     11,785,886     11,889,112  
                   
Bank of Texas:                  
Demand 3,015,869     3,239,098     3,094,184     3,121,890     3,091,258  
Interest-bearing:                  
Transaction 2,208,480     2,397,071     2,272,987     2,272,185     2,317,576  
Savings 98,852     93,620     93,400     91,491     89,640  
Time 475,967     502,879     521,072     502,128     511,037  
Total interest-bearing 2,783,299     2,993,570     2,887,459     2,865,804     2,918,253  
Total Bank of Texas 5,799,168     6,232,668     5,981,643     5,987,694     6,009,511  
                   
Bank of Albuquerque:                  
Demand 695,060     663,353     659,793     612,117     593,117  
Interest-bearing:                  
Transaction 555,414     552,393     551,884     558,523     623,677  
Savings 60,596     55,647     53,532     54,136     53,683  
Time 216,306     216,743     224,773     229,616     233,506  
Total interest-bearing 832,316     824,783     830,189     842,275     910,866  
Total Bank of Albuquerque 1,527,376     1,488,136     1,489,982     1,454,392     1,503,983  
                   
Bank of Arkansas:                  
Demand 35,291     30,384     31,442     40,511     42,622  
Interest-bearing:                  
Transaction 94,206     85,095     126,746     129,848     106,804  
Savings 1,960     1,881     1,876     2,135     2,304  
Time 11,878     14,045     14,434     14,876     15,067  
Total interest-bearing 108,044     101,021     143,056     146,859     124,175  
Total Bank of Arkansas 143,335     131,405     174,498     187,370     166,797  
                   
Colorado State Bank & Trust:                  
Demand 521,963     633,714     540,300     577,617     601,778  
Interest-bearing:                  
Transaction 687,785     657,629     628,807     626,343     610,510  
Savings 37,232     35,223     34,776     35,651     37,801  
Time 215,330     224,962     231,927     228,458     234,740  
Total interest-bearing 940,347     917,814     895,510     890,452     883,051  
Total Colorado State Bank & Trust 1,462,310     1,551,528     1,435,810     1,468,069     1,484,829  
                   
Bank of Arizona:                  
Demand 330,196     334,701     335,740     366,866     342,854  
Interest-bearing:                  
Transaction 248,337     274,846     174,010     154,457     180,254  
Savings 4,116     3,343     4,105     3,638     3,858  
Time 21,009     20,394     20,831     19,911     26,112  
Total interest-bearing 273,462     298,583     198,946     178,006     210,224  
Total Bank of Arizona 603,658     633,284     534,686     544,872     553,078  
                   
Mobank (Kansas City):                  
Demand 505,802     457,080     462,410     496,473     514,278  
Interest-bearing:                  
Transaction 381,447     382,066     361,391     346,996     406,105  
Savings 13,845     13,574     12,513     13,603     13,424  
Time 22,230     27,260     27,705     31,119     34,242  
Total interest-bearing 417,522     422,900     401,609     391,718     453,771  
Total Mobank (Kansas City) 923,324     879,980     864,019     888,191     968,049  
                   
TOTAL BOK FINANCIAL $ 22,205,200     $ 22,061,305     $ 21,848,079     $ 22,316,474     $ 22,575,359  


NET INTEREST MARGIN TREND -- UNAUDITED
BOK FINANCIAL CORPORATION
  Three Months Ended
  Mar. 31, 2018   Dec. 31, 2017   Sept. 30, 2017   June 30, 2017   Mar. 31, 2017
                   
TAX-EQUIVALENT ASSETS YIELDS                  
Interest-bearing cash and cash equivalents 1.57 %   1.27 %   1.29 %   1.04 %   0.82 %
Trading securities 3.40 %   3.38 %   3.47 %   3.23 %   3.87 %
Investment securities:                  
Taxable 5.21 %   5.31 %   5.31 %   5.34 %   5.44 %
Tax-exempt 2.25 %   2.69 %   2.60 %   2.51 %   2.45 %
Total investment securities 3.78 %   3.98 %   3.86 %   3.76 %   3.70 %
Available for sale securities:                  
Taxable 2.22 %   2.19 %   2.16 %   2.09 %   2.02 %
Tax-exempt 3.26 %   5.41 %   5.27 %   6.09 %   5.37 %
Total available for sale securities 2.23 %   2.21 %   2.17 %   2.11 %   2.05 %
Fair value option securities 2.95 %   2.90 %   2.97 %   2.92 %   2.27 %
Restricted equity securities 5.86 %   5.87 %   5.87 %   5.95 %   5.52 %
Residential mortgage loans held for sale 3.71 %   3.72 %   3.36 %   3.92 %   3.35 %
Loans 4.45 %   4.29 %   4.31 %   4.03 %   3.88 %
Allowance for loan losses                  
Loans, net of allowance 4.51 %   4.35 %   4.38 %   4.09 %   3.94 %
Total tax-equivalent yield on earning assets 3.61 %   3.49 %   3.50 %   3.30 %   3.15 %
                   
COST OF INTEREST-BEARING LIABILITIES                
Interest-bearing deposits:                  
Interest-bearing transaction 0.45 %   0.35 %   0.32 %   0.26 %   0.20 %
Savings 0.07 %   0.07 %   0.08 %   0.08 %   0.08 %
Time 1.25 %   1.17 %   1.16 %   1.11 %   1.09 %
Total interest-bearing deposits 0.57 %   0.48 %   0.45 %   0.40 %   0.35 %
Funds purchased 1.20 %   0.90 %   0.92 %   0.61 %   0.47 %
Repurchase agreements 0.20 %   0.18 %   0.15 %   0.06 %   0.02 %
Other borrowings 1.60 %   1.36 %   1.29 %   1.09 %   0.83 %
Subordinated debt 5.61 %   5.55 %   5.68 %   5.55 %   5.68 %
Total cost of interest-bearing liabilities 0.93 %   0.79 %   0.75 %   0.63 %   0.52 %
Tax-equivalent net interest revenue spread 2.68 %   2.70 %   2.75 %   2.67 %   2.63 %
Effect of noninterest-bearing funding sources and other 0.31 %   0.27 %   0.26 %   0.22 %   0.18 %
Tax-equivalent net interest margin 2.99 %   2.97 %   3.01 %   2.89 %   2.81 %
                             

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
  Mar. 31, 2018   Dec. 31, 2017   Sept. 30, 2017   June 30, 2017   Mar. 31, 2017
Nonperforming assets:                  
Nonaccruing loans:                  
Commercial $ 131,460     $ 137,303     $ 176,900     $ 197,157     $ 156,825  
Commercial real estate 2,470     2,855     2,975     3,775     4,475  
Residential mortgage 45,794     47,447     45,506     44,235     46,081  
Personal 340     269     255     272     235  
Total nonaccruing loans 180,064     187,874     225,636     245,439     207,616  
Accruing renegotiated loans guaranteed by U.S. government agencies 74,418     73,994     69,440     80,624     83,577  
Real estate and other repossessed assets 23,652     28,437     32,535     39,436     42,726  
Total nonperforming assets $ 278,134     $ 290,305     $ 327,611     $ 365,499     $ 333,919  
Total nonperforming assets excluding those guaranteed by U.S. government agencies $ 194,833     $ 207,132     $ 249,280     $ 275,823     $ 240,234  
                   
Nonaccruing loans by loan class:                  
Commercial:                  
Energy $ 89,942     $ 92,284     $ 110,683     $ 123,992     $ 110,425  
Services 2,109     2,620     1,174     7,754     7,713  
Healthcare 15,342     14,765     24,446     24,505     909  
Wholesale/retail 2,564     2,574     1,893     10,620     11,090  
Manufacturing 3,002     5,962     9,059     9,656     5,907  
Other commercial and industrial 18,501     19,098     29,645     20,630     20,781  
Total commercial 131,460     137,303     176,900     197,157     156,825  
Commercial real estate:                  
Multifamily             10     24  
Retail 264     276     289     301     314  
Office 275     275     275     396     413  
Industrial                 76  
Residential construction and land development 1,613     1,832     1,924     2,051     2,616  
Other commercial real estate 318     472     487     1,017     1,032  
Total commercial real estate 2,470     2,855     2,975     3,775     4,475  
Residential mortgage:                  
Permanent mortgage 24,578     25,193     24,623     23,415     24,188  
Permanent mortgage guaranteed by U.S. government agencies 8,883     9,179     8,891     9,052     10,108  
Home equity 12,333     13,075     11,992     11,768     11,785  
Total residential mortgage 45,794     47,447     45,506     44,235     46,081  
Personal 340     269     255     272     235  
Total nonaccruing loans $ 180,064     $ 187,874     $ 225,636     $ 245,439     $ 207,616  
                   
Performing loans 90 days past due1 $ 90     $ 633     $ 253     $ 1,414     $ 95  
                   
Gross charge-offs $ (2,890 )   $ (14,749 )   $ (5,825 )   $ (2,872 )   $ (2,153 )
Recoveries 1,576     3,061     2,437     1,214     2,900  
Net recoveries (charge-offs) $ (1,314 )   $ (11,688 )   $ (3,388 )   $ (1,658 )   $ 747  
                   
Provision for credit losses $ (5,000 )   $ (7,000 )   $     $     $  
                   
Allowance for loan losses to period end loans 1.29 %   1.34 %   1.44 %   1.46 %   1.46 %
Combined allowance for credit losses to period end loans 1.32 %   1.37 %   1.47 %   1.49 %   1.52 %
Nonperforming assets to period end loans and repossessed assets 1.60 %   1.69 %   1.90 %   2.12 %   1.96 %
Net charge-offs (annualized) to average loans 0.03 %   0.27 %   0.08 %   0.04 %   (0.02 )%
Allowance for loan losses to nonaccruing loans1 130.84 %   129.09 %   114.28 %   105.78 %   125.92 %
Combined allowance for credit losses to nonaccruing loans1 133.25 %   131.18 %   116.78 %   108.51 %   130.70 %

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


For Further Information Contact:
Joseph Crivelli
Investor Relations
(918) 595-3027

 

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