Today BOK Financial Corp. 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 Webcast
The Company hosted a conference call Wednesday, October 28, 2015 to discuss the financial results with investors with live audio webcast and presentation slides available on the company’s website at www.bokf.com.
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 securities | 179,098 | 127,391 | 140,968 | 164,502 | 107,909 | ||||||||||||||
| Investment securities | 616,091 | 628,489 | 642,825 | 650,911 | 641,375 | ||||||||||||||
| Available for sale securities | 8,942,261 | 9,063,006 | 9,101,464 | 9,161,901 | 9,526,727 | ||||||||||||||
| Fair value option securities | 429,951 | 435,294 | 404,775 | 221,773 | 180,268 | ||||||||||||||
| Restricted equity securities | 255,610 | 221,911 | 179,385 | 182,737 | 142,418 | ||||||||||||||
| Residential mortgage loans held for sale | 401,359 | 464,269 | 348,054 | 321,746 | 310,924 | ||||||||||||||
| Loans: | |||||||||||||||||||
| Commercial | 9,685,768 | 9,634,306 | 9,308,307 | 8,886,952 | 8,468,575 | ||||||||||||||
| Commercial real estate | 3,198,200 | 2,989,615 | 2,909,565 | 2,665,547 | 2,691,318 | ||||||||||||||
| Residential mortgage | 1,847,696 | 1,857,464 | 1,909,998 | 1,904,777 | 1,955,769 | ||||||||||||||
| Personal | 460,647 | 423,967 | 426,712 | 424,729 | 402,916 | ||||||||||||||
| Total loans | 15,192,311 | 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, net | 14,989,482 | 14,706,952 | 14,359,634 | 13,691,218 | 13,327,437 | ||||||||||||||
| Total earning assets | 27,852,463 | 27,649,768 | 27,266,651 | 26,484,964 | 25,455,000 | ||||||||||||||
| Cash and due from banks | 487,283 | 492,737 | 513,734 | 528,595 | 493,200 | ||||||||||||||
| Derivative contracts, net | 669,264 | 475,687 | 447,565 | 352,565 | 288,682 | ||||||||||||||
| Cash surrender value of bank-owned life insurance | 299,424 | 297,022 | 294,803 | 292,411 | 290,044 | ||||||||||||||
| Receivable on unsettled securities sales | 64,591 | 94,374 | 99,706 | 69,109 | 63,277 | ||||||||||||||
| Other assets | 1,396,708 | 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 transaction | 9,760,839 | 10,063,589 | 10,338,396 | 9,730,564 | 9,473,575 | ||||||||||||||
| Savings | 379,828 | 381,833 | 365,835 | 346,132 | 342,488 | ||||||||||||||
| Time | 2,557,874 | 2,651,820 | 2,659,323 | 2,647,147 | 2,610,561 | ||||||||||||||
| Total deposits | 20,693,148 | 21,093,959 | 21,249,039 | 20,698,008 | 20,226,974 | ||||||||||||||
| Funds purchased | 70,281 | 63,312 | 69,730 | 71,728 | 320,817 | ||||||||||||||
| Repurchase agreements | 672,085 | 773,977 | 1,000,839 | 996,308 | 1,027,206 | ||||||||||||||
| Other borrowings | 4,779,981 | 4,001,479 | 3,084,214 | 3,021,094 | 2,333,961 | ||||||||||||||
| Subordinated debentures | 226,296 | 307,903 | 348,007 | 347,960 | 347,914 | ||||||||||||||
| Derivative contracts, net | 597,908 | 455,431 | 418,848 | 321,367 | 270,998 | ||||||||||||||
| Due on unsettled securities purchases | 90,135 | 151,369 | 205,096 | 137,566 | 124,952 | ||||||||||||||
| Other liabilities | 240,704 | 235,173 | 243,370 | 228,021 | 214,306 | ||||||||||||||
| TOTAL LIABILITIES | 27,370,538 | 27,082,603 | 26,619,143 | 25,822,052 | 24,867,128 | ||||||||||||||
| Total equity | 3,399,195 | 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 expense | 15,028 | 17,077 | 47,953 | 50,089 | |||||||||||
| Net interest revenue | 178,636 | 166,791 | 522,093 | 495,530 | |||||||||||
| Provision for credit losses | 7,500 | — | 11,500 | — | |||||||||||
| Net interest revenue after provision for credit losses | 171,136 | 166,791 | 510,593 | 495,530 | |||||||||||
| Other operating revenue: | |||||||||||||||
| Brokerage and trading revenue | 31,582 | 35,263 | 99,301 | 103,835 | |||||||||||
| Transaction card revenue | 32,514 | 31,578 | 96,302 | 92,222 | |||||||||||
| Fiduciary and asset management revenue | 30,807 | 29,738 | 94,988 | 85,003 | |||||||||||
| Deposit service charges and fees | 23,606 | 22,508 | 67,618 | 68,330 | |||||||||||
| Mortgage banking revenue | 33,170 | 26,814 | 109,336 | 78,988 | |||||||||||
| Bank-owned life insurance | 2,360 | 2,326 | 6,956 | 6,706 | |||||||||||
| Other revenue | 10,618 | 10,320 | 28,694 | 28,380 | |||||||||||
| Total fees and commissions | 164,657 | 158,547 | 503,195 | 463,464 | |||||||||||
| Gain on other assets, net | 1,161 | 1,422 | 3,373 | 2,615 | |||||||||||
| Gain (loss) on derivatives, net | 1,283 | (93 | ) | 1,162 | 1,706 | ||||||||||
| Gain (loss) on fair value option securities, net | 5,926 | (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, net | 2,166 | 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 revenue | 163,436 | 164,971 | 505,738 | 470,055 | |||||||||||
| Other operating expense: | |||||||||||||||
| Personnel | 129,062 | 123,043 | 390,305 | 351,190 | |||||||||||
| Business promotion | 5,922 | 6,160 | 19,435 | 19,151 | |||||||||||
| Charitable contributions to BOKF Foundation | 796 | — | 796 | 2,420 | |||||||||||
| Professional fees and services | 10,147 | 14,763 | 29,766 | 33,382 | |||||||||||
| Net occupancy and equipment | 18,689 | 18,892 | 56,660 | 54,577 | |||||||||||
| Insurance | 4,864 | 4,793 | 14,960 | 13,801 | |||||||||||
| Data processing and communications | 31,228 | 29,971 | 93,311 | 86,177 | |||||||||||
| Printing, postage and supplies | 3,376 | 3,380 | 10,390 | 10,350 | |||||||||||
| Net losses and operating expenses of repossessed assets | 267 | 4,966 | 1,103 | 7,516 | |||||||||||
| Amortization of intangible assets | 1,089 | 1,100 | 3,269 | 2,865 | |||||||||||
| Mortgage banking costs | 8,587 | 7,734 | 25,325 | 19,328 | |||||||||||
| Other expense | 10,601 | 7,032 | 26,686 | 20,888 | |||||||||||
| Total other operating expense | 224,628 | 221,834 | 672,006 | 621,645 | |||||||||||
| Net income before taxes | 109,944 | 109,928 | 344,325 | 343,940 | |||||||||||
| Federal and state income taxes | 34,128 | 33,802 | 113,142 | 114,042 | |||||||||||
| Net income | 75,816 | 76,126 | 231,183 | 229,898 | |||||||||||
| Net income attributable to non-controlling interests | 925 | 494 | 2,219 | 1,781 | |||||||||||
| Net income attributable to BOK Financial Corporation shareholders | $ | 74,891 | $ | 75,632 | $ | 228,964 | $ | 228,117 | |||||||
| Average shares outstanding: | |||||||||||||||
| Basic | 67,668,076 | 68,455,866 | 68,004,508 | 68,364,549 | |||||||||||
| Diluted | 67,762,483 | 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 1 | 12.78 | % | 13.01 | % | 13.07 | % | N/A | N/A | |||||||||||
| Tier 1 | 12.78 | % | 13.01 | % | 13.07 | % | 13.33 | % | 13.72 | % | |||||||||
| Total capital | 13.89 | % | 14.11 | % | 14.39 | % | 14.66 | % | 15.11 | % | |||||||||
| Leverage ratio | 9.55 | % | 9.75 | % | 9.74 | % | 9.96 | % | 10.22 | % | |||||||||
| Tangible common equity ratio2 | 9.78 | % | 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 ratio | 38.41 | % | 36.40 | % | 38.68 | % | 45.27 | % | 36.63 | % | |||||||||
| Shares outstanding, net | 67,713,031 | 68,945,139 | 68,922,314 | 69,113,736 | 69,344,082 | ||||||||||||||
| Stock buy-back program: | |||||||||||||||||||
| Shares repurchased | 1,258,348 | — | 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 assets | 0.97 | % | 1.04 | % | 1.01 | % | 0.88 | % | 1.07 | % | |||||||||
| Return on average equity | 8.84 | % | 9.50 | % | 9.15 | % | 7.79 | % | 9.34 | % | |||||||||
| Net interest margin | 2.61 | % | 2.61 | % | 2.55 | % | 2.61 | % | 2.67 | % | |||||||||
| Efficiency ratio | 64.34 | % | 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, net | 430,460 | 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, net | 430,460 | 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 ratio | 9.78 | % | 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 fundings | 30 | % | 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 revenue | 18,717 | 23,113 | 26,040 | 17,189 | 14,693 | ||||||||||||||
| Servicing revenue | 14,453 | 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, net | 5,926 | (8,130 | ) | 2,647 | 3,685 | (341 | ) | ||||||||||||
| Gain (loss) on economic hedge of mortgage servicing rights | 7,386 | (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 expense | 15,028 | 16,082 | 16,843 | 16,956 | 17,077 | ||||||||||||||
| Net interest revenue | 178,636 | 175,731 | 167,726 | 169,664 | 166,791 | ||||||||||||||
| Provision for credit losses | 7,500 | 4,000 | — | — | — | ||||||||||||||
| Net interest revenue after provision for credit losses | 171,136 | 171,731 | 167,726 | 169,664 | 166,791 | ||||||||||||||
| Other operating revenue: | |||||||||||||||||||
| Brokerage and trading revenue | 31,582 | 36,012 | 31,707 | 30,602 | 35,263 | ||||||||||||||
| Transaction card revenue | 32,514 | 32,778 | 31,010 | 31,467 | 31,578 | ||||||||||||||
| Fiduciary and asset management revenue | 30,807 | 32,712 | 31,469 | 30,649 | 29,738 | ||||||||||||||
| Deposit service charges and fees | 23,606 | 22,328 | 21,684 | 22,581 | 22,508 | ||||||||||||||
| Mortgage banking revenue | 33,170 | 36,846 | 39,320 | 30,105 | 26,814 | ||||||||||||||
| Bank-owned life insurance | 2,360 | 2,398 | 2,198 | 2,380 | 2,326 | ||||||||||||||
| Other revenue | 10,618 | 9,473 | 8,603 | 10,071 | 10,320 | ||||||||||||||
| Total fees and commissions | 164,657 | 172,547 | 165,991 | 157,855 | 158,547 | ||||||||||||||
| Gain on other assets, net | 1,161 | 1,457 | 755 | 338 | 1,422 | ||||||||||||||
| Gain (loss) on derivatives, net | 1,283 | (1,032 | ) | 911 | 1,070 | (93 | ) | ||||||||||||
| Gain (loss) on fair value option securities, net | 5,926 | (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, net | 2,166 | 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 revenue | 163,436 | 176,285 | 166,017 | 151,903 | 164,971 | ||||||||||||||
| Other operating expense: | |||||||||||||||||||
| Personnel | 129,062 | 132,695 | 128,548 | 125,741 | 123,043 | ||||||||||||||
| Business promotion | 5,922 | 7,765 | 5,748 | 7,498 | 6,160 | ||||||||||||||
| Charitable contributions to BOKF Foundation | 796 | — | — | 1,847 | — | ||||||||||||||
| Professional fees and services | 10,147 | 9,560 | 10,059 | 11,058 | 14,763 | ||||||||||||||
| Net occupancy and equipment | 18,689 | 18,927 | 19,044 | 22,655 | 18,892 | ||||||||||||||
| Insurance | 4,864 | 5,116 | 4,980 | 4,777 | 4,793 | ||||||||||||||
| Data processing and communications | 31,228 | 31,463 | 30,620 | 30,872 | 29,971 | ||||||||||||||
| Printing, postage and supplies | 3,376 | 3,553 | 3,461 | 3,168 | 3,380 | ||||||||||||||
| Net losses (gains) and operating expenses of repossessed assets | 267 | 223 | 613 | (1,497 | ) | 4,966 | |||||||||||||
| Amortization of intangible assets | 1,089 | 1,090 | 1,090 | 1,100 | 1,100 | ||||||||||||||
| Mortgage banking costs | 8,587 | 7,419 | 9,319 | 10,553 | 7,734 | ||||||||||||||
| Other expense | 10,601 | 9,302 | 6,783 | 8,105 | 7,032 | ||||||||||||||
| Total other operating expense | 224,628 | 227,113 | 220,265 | 225,877 | 221,834 | ||||||||||||||
| Net income before taxes | 109,944 | 120,903 | 113,478 | 95,690 | 109,928 | ||||||||||||||
| Federal and state income taxes | 34,128 | 40,630 | 38,384 | 30,109 | 33,802 | ||||||||||||||
| Net income | 75,816 | 80,273 | 75,094 | 65,581 | 76,126 | ||||||||||||||
| Net income attributable to non-controlling interests | 925 | 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: | |||||||||||||||||||
| Basic | 67,668,076 | 68,096,341 | 68,254,780 | 68,481,630 | 68,455,866 | ||||||||||||||
| Diluted | 67,762,483 | 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 estate | 677,372 | 614,995 | 612,639 | 603,610 | 592,865 | ||||||||||||||
| Residential mortgage | 1,405,235 | 1,413,690 | 1,442,340 | 1,467,096 | 1,481,264 | ||||||||||||||
| Personal | 185,463 | 190,909 | 205,496 | 206,115 | 193,207 | ||||||||||||||
| Total Bank of Oklahoma | 5,782,461 | 5,749,000 | 5,537,028 | 5,419,510 | 5,373,600 | ||||||||||||||
| Bank of Texas: | |||||||||||||||||||
| Commercial | 3,752,193 | 3,738,742 | 3,709,467 | 3,549,128 | 3,169,458 | ||||||||||||||
| Commercial real estate | 1,257,741 | 1,158,056 | 1,130,973 | 1,027,817 | 1,046,322 | ||||||||||||||
| Residential mortgage | 222,395 | 228,683 | 237,985 | 235,948 | 247,117 | ||||||||||||||
| Personal | 194,051 | 156,260 | 149,827 | 154,363 | 148,965 | ||||||||||||||
| Total Bank of Texas | 5,426,380 | 5,281,741 | 5,228,252 | 4,967,256 | 4,611,862 | ||||||||||||||
| Bank of Albuquerque: | |||||||||||||||||||
| Commercial | 368,027 | 392,362 | 388,005 | 383,439 | 378,663 | ||||||||||||||
| Commercial real estate | 312,953 | 291,953 | 296,696 | 296,358 | 313,905 | ||||||||||||||
| Residential mortgage | 121,232 | 123,376 | 127,326 | 127,999 | 130,045 | ||||||||||||||
| Personal | 10,477 | 11,939 | 12,095 | 10,899 | 11,714 | ||||||||||||||
| Total Bank of Albuquerque | 812,689 | 819,630 | 824,122 | 818,695 | 834,327 | ||||||||||||||
| Bank of Arkansas: | |||||||||||||||||||
| Commercial | 76,044 | 99,086 | 91,485 | 95,510 | 74,866 | ||||||||||||||
| Commercial real estate | 82,225 | 85,997 | 87,034 | 88,301 | 96,874 | ||||||||||||||
| Residential mortgage | 8,063 | 6,999 | 6,807 | 7,261 | 7,492 | ||||||||||||||
| Personal | 4,921 | 5,189 | 5,114 | 5,169 | 5,508 | ||||||||||||||
| Total Bank of Arkansas | 171,253 | 197,271 | 190,440 | 196,241 | 184,740 | ||||||||||||||
| Colorado State Bank & Trust: | |||||||||||||||||||
| Commercial | 1,029,694 | 1,019,454 | 1,008,316 | 977,961 | 957,917 | ||||||||||||||
| Commercial real estate | 229,835 | 229,721 | 209,272 | 194,553 | 190,812 | ||||||||||||||
| Residential mortgage | 50,138 | 54,135 | 55,925 | 57,119 | 56,705 | ||||||||||||||
| Personal | 30,683 | 30,373 | 27,792 | 27,918 | 24,812 | ||||||||||||||
| Total Colorado State Bank & Trust | 1,340,350 | 1,333,683 | 1,301,305 | 1,257,551 | 1,230,246 | ||||||||||||||
| Bank of Arizona: | |||||||||||||||||||
| Commercial | 608,235 | 572,477 | 519,767 | 547,524 | 500,208 | ||||||||||||||
| Commercial real estate | 482,918 | 472,061 | 432,269 | 355,140 | 316,698 | ||||||||||||||
| Residential mortgage | 41,722 | 37,493 | 36,161 | 35,872 | 39,256 | ||||||||||||||
| Personal | 17,609 | 12,875 | 12,394 | 12,883 | 11,201 | ||||||||||||||
| Total Bank of Arizona | 1,150,484 | 1,094,906 | 1,000,591 | 951,419 | 867,363 | ||||||||||||||
| Bank of Kansas City: | |||||||||||||||||||
| Commercial | 448,838 | 424,194 | 397,570 | 399,419 | 384,662 | ||||||||||||||
| Commercial real estate | 192,023 | 180,714 | 166,581 | 162,371 | 166,723 | ||||||||||||||
| Residential mortgage | 20,210 | 20,352 | 20,455 | 18,217 | 17,784 | ||||||||||||||
| Personal | 22,753 | 22,645 | 17,792 | 17,358 | 12,432 | ||||||||||||||
| Total Bank of Kansas City | 683,824 | 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: | |||||||||||||||||||
| Transaction | 5,783,258 | 6,018,381 | 6,199,468 | 6,117,886 | 5,450,692 | ||||||||||||||
| Savings | 225,580 | 225,694 | 227,855 | 206,357 | 201,690 | ||||||||||||||
| Time | 1,253,137 | 1,380,566 | 1,372,250 | 1,301,194 | 1,292,738 | ||||||||||||||
| Total interest-bearing | 7,261,975 | 7,624,641 | 7,799,573 | 7,625,437 | 6,945,120 | ||||||||||||||
| Total Bank of Oklahoma | 11,096,120 | 11,692,729 | 11,782,107 | 11,454,256 | 10,860,680 | ||||||||||||||
| Bank of Texas: | |||||||||||||||||||
| Demand | 2,689,493 | 2,565,234 | 2,511,032 | 2,639,732 | 2,636,713 | ||||||||||||||
| Interest-bearing: | |||||||||||||||||||
| Transaction | 1,996,223 | 2,020,817 | 2,062,063 | 2,065,723 | 2,020,737 | ||||||||||||||
| Savings | 74,674 | 74,373 | 76,128 | 72,037 | 66,798 | ||||||||||||||
| Time | 554,106 | 536,844 | 547,371 | 547,316 | 569,929 | ||||||||||||||
| Total interest-bearing | 2,625,003 | 2,632,034 | 2,685,562 | 2,685,076 | 2,657,464 | ||||||||||||||
| Total Bank of Texas | 5,314,496 | 5,197,268 | 5,196,594 | 5,324,808 | 5,294,177 | ||||||||||||||
| Bank of Albuquerque: | |||||||||||||||||||
| Demand | 520,785 | 508,224 | 537,466 | 487,819 | 480,023 | ||||||||||||||
| Interest-bearing: | |||||||||||||||||||
| Transaction | 529,862 | 537,156 | 535,791 | 519,544 | 502,787 | ||||||||||||||
| Savings | 41,380 | 41,802 | 42,088 | 37,471 | 36,127 | ||||||||||||||
| Time | 281,426 | 285,890 | 290,706 | 295,798 | 303,074 | ||||||||||||||
| Total interest-bearing | 852,668 | 864,848 | 868,585 | 852,813 | 841,988 | ||||||||||||||
| Total Bank of Albuquerque | 1,373,453 | 1,373,072 | 1,406,051 | 1,340,632 | 1,322,011 | ||||||||||||||
| Bank of Arkansas: | |||||||||||||||||||
| Demand | 25,397 | 19,731 | 31,002 | 35,996 | 35,075 | ||||||||||||||
| Interest-bearing: | |||||||||||||||||||
| Transaction | 290,728 | 284,349 | 253,691 | 158,115 | 234,063 | ||||||||||||||
| Savings | 1,573 | 1,712 | 1,677 | 1,936 | 2,222 | ||||||||||||||
| Time | 26,203 | 28,220 | 28,277 | 28,520 | 38,811 | ||||||||||||||
| Total interest-bearing | 318,504 | 314,281 | 283,645 | 188,571 | 275,096 | ||||||||||||||
| Total Bank of Arkansas | 343,901 | 334,012 | 314,647 | 224,567 | 310,171 | ||||||||||||||
| Colorado State Bank & Trust: | |||||||||||||||||||
| Demand | 430,675 | 403,491 | 412,532 | 445,755 | 422,044 | ||||||||||||||
| Interest-bearing: | |||||||||||||||||||
| Transaction | 655,206 | 601,741 | 604,665 | 631,874 | 571,807 | ||||||||||||||
| Savings | 31,398 | 31,285 | 31,524 | 29,811 | 29,768 | ||||||||||||||
| Time | 320,279 | 322,432 | 340,006 | 353,998 | 372,401 | ||||||||||||||
| Total interest-bearing | 1,006,883 | 955,458 | 976,195 | 1,015,683 | 973,976 | ||||||||||||||
| Total Colorado State Bank & Trust | 1,437,558 | 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: | |||||||||||||||||||
| Demand | 306,425 | 352,024 | 271,091 | 369,115 | 279,811 | ||||||||||||||
| Interest-bearing: | |||||||||||||||||||
| Transaction | 293,319 | 298,073 | 295,480 | 347,214 | 336,584 | ||||||||||||||
| Savings | 4,121 | 2,726 | 2,900 | 2,545 | 3,718 | ||||||||||||||
| Time | 26,750 | 28,165 | 28,086 | 36,680 | 38,842 | ||||||||||||||
| Total interest-bearing | 324,190 | 328,964 | 326,466 | 386,439 | 379,144 | ||||||||||||||
| Total Bank of Arizona | 630,615 | 680,988 | 597,557 | 755,554 | 658,955 | ||||||||||||||
| Bank of Kansas City: | |||||||||||||||||||
| Demand | 234,847 | 239,609 | 263,920 | 259,121 | 268,903 | ||||||||||||||
| Interest-bearing: | |||||||||||||||||||
| Transaction | 150,253 | 139,260 | 157,044 | 273,999 | 128,039 | ||||||||||||||
| Savings | 1,570 | 1,580 | 1,618 | 1,274 | 1,315 | ||||||||||||||
| Time | 36,630 | 42,262 | 45,082 | 45,210 | 48,785 | ||||||||||||||
| Total interest-bearing | 188,453 | 183,102 | 203,744 | 320,483 | 178,139 | ||||||||||||||
| Total Bank of Kansas City | 423,300 | 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 equivalents | 0.28 | % | 0.25 | % | 0.27 | % | 0.28 | % | 0.20 | % | ||||
| Trading securities | 2.70 | % | 1.85 | % | 2.55 | % | 2.48 | % | 2.67 | % | ||||
| Investment securities: | ||||||||||||||
| Taxable | 5.49 | % | 5.49 | % | 5.51 | % | 5.68 | % | 5.66 | % | ||||
| Tax-exempt | 1.54 | % | 1.56 | % | 1.56 | % | 1.56 | % | 1.56 | % | ||||
| Total investment securities | 3.04 | % | 3.05 | % | 3.04 | % | 3.11 | % | 3.03 | % | ||||
| Available for sale securities: | ||||||||||||||
| Taxable | 1.99 | % | 1.92 | % | 1.95 | % | 1.97 | % | 1.94 | % | ||||
| Tax-exempt | 4.15 | % | 4.21 | % | 4.40 | % | 4.23 | % | 3.14 | % | ||||
| Total available for sale securities | 2.01 | % | 1.94 | % | 1.98 | % | 1.99 | % | 1.95 | % | ||||
| Fair value option securities | 2.30 | % | 2.17 | % | 2.28 | % | 2.18 | % | 2.05 | % | ||||
| Restricted equity securities | 5.95 | % | 5.82 | % | 5.79 | % | 5.77 | % | 5.99 | % | ||||
| Residential mortgage loans held for sale | 3.79 | % | 3.37 | % | 3.41 | % | 3.87 | % | 3.79 | % | ||||
| Loans | 3.54 | % | 3.65 | % | 3.59 | % | 3.73 | % | 3.78 | % | ||||
| Allowance for loan losses | ||||||||||||||
| Loans, net of allowance | 3.59 | % | 3.70 | % | 3.64 | % | 3.78 | % | 3.83 | % | ||||
| Total tax-equivalent yield on earning assets | 2.83 | % | 2.84 | % | 2.80 | % | 2.86 | % | 2.93 | % | ||||
| COST OF INTEREST-BEARING LIABILITIES | ||||||||||||||
| Interest-bearing deposits: | ||||||||||||||
| Interest-bearing transaction | 0.08 | % | 0.09 | % | 0.10 | % | 0.09 | % | 0.10 | % | ||||
| Savings | 0.10 | % | 0.11 | % | 0.10 | % | 0.11 | % | 0.12 | % | ||||
| Time | 1.33 | % | 1.36 | % | 1.46 | % | 1.47 | % | 1.56 | % | ||||
| Total interest-bearing deposits | 0.34 | % | 0.35 | % | 0.37 | % | 0.38 | % | 0.41 | % | ||||
| Funds purchased | 0.08 | % | 0.08 | % | 0.09 | % | 0.08 | % | 0.07 | % | ||||
| Repurchase agreements | 0.03 | % | 0.03 | % | 0.04 | % | 0.04 | % | 0.05 | % | ||||
| Other borrowings | 0.30 | % | 0.31 | % | 0.32 | % | 0.32 | % | 0.34 | % | ||||
| Subordinated debt | 1.04 | % | 2.21 | % | 2.52 | % | 2.50 | % | 2.46 | % | ||||
| Total cost of interest-bearing liabilities | 0.32 | % | 0.35 | % | 0.38 | % | 0.39 | % | 0.41 | % | ||||
| Tax-equivalent net interest revenue spread | 2.51 | % | 2.49 | % | 2.42 | % | 2.47 | % | 2.52 | % | ||||
| Effect of noninterest-bearing funding sources and other | 0.10 | % | 0.12 | % | 0.13 | % | 0.14 | % | 0.15 | % | ||||
| Tax-equivalent net interest margin | 2.61 | % | 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 estate | 10,956 | 20,139 | 19,902 | 18,557 | 30,660 | ||||||||||||||
| Residential mortgage | 44,099 | 45,969 | 46,487 | 48,121 | 48,907 | ||||||||||||||
| Personal | 494 | 550 | 464 | 566 | 580 | ||||||||||||||
| Total nonaccruing loans | 89,347 | 90,891 | 80,733 | 80,771 | 96,551 | ||||||||||||||
| Accruing renegotiated loans guaranteed by U.S. government agencies | 81,598 | 82,368 | 80,287 | 73,985 | 70,459 | ||||||||||||||
| Real estate and other repossessed assets: | |||||||||||||||||||
| Guaranteed by U.S. government agencies2 | — | — | — | 49,898 | 46,809 | ||||||||||||||
| Other | 33,116 | 35,499 | 45,551 | 51,963 | 51,062 | ||||||||||||||
| Total real estate and other repossessed assets | 33,116 | 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 | |||||||||
| Services | 10,692 | 10,944 | 4,744 | 5,201 | 3,584 | ||||||||||||||
| Wholesale / retail | 3,058 | 4,166 | 4,401 | 4,149 | 5,502 | ||||||||||||||
| Manufacturing | 352 | 379 | 417 | 450 | 3,482 | ||||||||||||||
| Healthcare | 1,218 | 1,278 | 1,558 | 1,380 | 1,417 | ||||||||||||||
| Other commercial and industrial | 598 | 625 | 885 | 931 | 911 | ||||||||||||||
| Total commercial | 33,798 | 24,233 | 13,880 | 13,527 | 16,404 | ||||||||||||||
| Commercial real estate: | |||||||||||||||||||
| Residential construction and land development | 4,748 | 9,367 | 9,598 | 5,299 | 14,634 | ||||||||||||||
| Retail | 1,648 | 3,826 | 3,857 | 3,926 | 4,009 | ||||||||||||||
| Office | 684 | 2,360 | 2,410 | 3,420 | 3,499 | ||||||||||||||
| Multifamily | 185 | 195 | — | — | — | ||||||||||||||
| Industrial | 76 | 76 | 76 | — | — | ||||||||||||||
| Other commercial real estate | 3,615 | 4,315 | 3,961 | 5,912 | 8,518 | ||||||||||||||
| Total commercial real estate | 10,956 | 20,139 | 19,902 | 18,557 | 30,660 | ||||||||||||||
| Residential mortgage: | |||||||||||||||||||
| Permanent mortgage | 30,660 | 32,187 | 33,365 | 34,845 | 35,137 | ||||||||||||||
| Permanent mortgage guaranteed by U.S. government agencies | 3,885 | 3,717 | 3,256 | 3,712 | 3,835 | ||||||||||||||
| Home equity | 9,554 | 10,065 | 9,866 | 9,564 | 9,935 | ||||||||||||||
| Total residential mortgage | 44,099 | 45,969 | 46,487 | 48,121 | 48,907 | ||||||||||||||
| Personal | 494 | 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 | ) | ||||
| Recoveries | 3,521 | 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 loans | 1.33 | % | 1.33 | % | 1.35 | % | 1.33 | % | 1.40 | % | |||||||||
| Combined allowance for credit losses to period end loans | 1.35 | % | 1.34 | % | 1.35 | % | 1.34 | % | 1.41 | % | |||||||||
| Nonperforming assets to period end loans and repossessed assets | 1.33 | % | 1.38 | % | 1.40 | % | 1.79 | % | 1.92 | % | |||||||||
| Net charge-offs (annualized) to average loans | 0.05 | % | 0.02 | % | (0.23 | )% | 0.06 | % | (0.01 | )% | |||||||||
| Allowance for loan losses to nonaccruing loans | 228.45 | % | 221.24 | % | 244.86 | % | 234.06 | % | 198.08 | % | |||||||||
| Combined allowance for credit losses to nonaccruing loans | 232.48 | % | 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. | |||||||||||||||||||