BOK Financial Corporation (NASDAQ:BOKF) reported today net income of $288.6 million or $4.21 per diluted share for the year ended December 31, 2015. Net income for the year ended December 31, 2014 was $292.4 million or $4.22 per diluted share.
Net income for fourth quarter of 2015 totaled $59.6 million or $0.89 per diluted share compared to net income of $74.9 million or $1.09 per diluted share for the third quarter of 2015.
Steven G. Bradshaw, president and CEO, stated, “It was a disappointing finish to the year, as the downgrade of a single large borrower in our energy portfolio during the fourth quarter necessitated a higher-than-expected provision for loan losses. However, this does not detract from the fact that 2015, on balance, was a successful and profitable year with strong loan and fee income growth and very good expense management all throughout the business. While the extended bear market in energy prices may mean additional loan loss provisions in 2016 and potentially a greater spillover impact on the economies in Oklahoma, Texas, and Colorado, we believe we are well-positioned to manage through the current commodities downturn and continue to grow and build shareholder value.”
Bradshaw added, “Reflecting management’s continued confidence in our business, we are investing in our future. The acquisition of MBT Bancshares, when it is closed later this year, is expected to transform our approach in the Kansas City market. The acquisition of Weaver Wealth Management expands our wealth management reach in the important North Texas market. And the acquisition of E-Spectrum Advisors adds energy industry M&A advisory to our stable of fee-generating businesses and supplements our energy lending and energy risk management businesses. In addition, we returned $149 million of capital to shareholders during the fourth quarter through our stock buyback program as well as regular quarterly dividends.”
Highlights of the fourth quarter of 2015 included:
- Net interest revenue totaled $181.3 million for the fourth quarter of 2015, up $2.6 million over the third quarter of 2015. Net interest margin increased to 2.64 percent, compared to 2.61 percent. Average earning assets increased $256 million over the prior quarter.
- Fees and commissions revenue totaled $155.8 million for the fourth quarter of 2015, compared to $164.7 million for the third quarter of 2015. Mortgage banking revenue decreased $8.1 million due primarily to lower loan production volume.
- Change in fair value of mortgage servicing rights, net of economic hedges increased pre-tax net income in the fourth quarter of 2015 by $2.6 million and decreased pre-tax net income in the third quarter of 2015 by $4.4 million.
- Operating expenses were $232.6 million for the fourth quarter, an increase of $7.9 million over the previous quarter. Personnel expense increased $4.1 million and non-personnel expense increased $3.8 million.
- A $22.5 million provision for credit losses was recorded in the fourth quarter, compared to $7.5 million for the third quarter of 2015. The additional provision reflects continued credit migration and increased impairment in our energy loan portfolio. Net loans charged off were $3.0 million for the fourth quarter of 2015, compared to $1.8 million in the third quarter.
- The combined allowance for credit losses totaled $227 million or 1.43 percent of outstanding loans at December 31, 2015, compared to $208 million or 1.35 percent of outstanding loans at September 30, 2015. The portion of the combined allowance attributed to the energy portfolio totaled 2.89 percent of outstanding energy loans at December 31, an increase from 2.05 percent of outstanding energy loans at September 30.
- Nonperforming assets that are not guaranteed by U.S. government agencies totaled $156 million or 0.99 percent of outstanding loans and repossessed assets (excluding those guaranteed by U.S. government agencies) at December 31, 2015 and $119 million or 0.78 percent of outstanding loans and repossessed assets (excluding those guaranteed by U.S. government agencies) at September 30, 2015. The increase over the prior quarter was primarily due to a single energy credit.
- Average loans increased $395 million over the previous quarter due primarily to growth in commercial loans, partially offset by a decrease in commercial real estate loans. Period-end outstanding loan balances were $15.9 billion at December 31, 2015, an increase of $574 million over September 30, 2015. Commercial loan balances grew $455 million over the prior quarter.
- Average deposits increased $12 million over the previous quarter. Growth in demand deposit balances was partially offset by lower interest-bearing transaction and time deposits compared to the prior quarter. Period end deposits grew by $469 million over September 30, 2015 to $21.1 billion at December 31, 2015.
- The common equity Tier 1 capital ratio was 12.13 percent at December 31. In addition, the company’s Tier 1 capital ratio was 12.13 percent, total capital ratio was 13.30 percent and leverage ratio was 9.25 percent. At September 30, 2015, the common equity Tier 1 capital ratio was 12.78 percent, the Tier 1 capital ratio was 12.78 percent, total capital ratio was 13.89 percent and leverage ratio was 9.55 percent. The decrease in capital ratios was primarily due to share repurchases during the fourth quarter. The company repurchased 1,874,074 common shares at an average price of $63.91 per share.
- The company paid a regular quarterly cash dividend of $29 million or $0.43 per common share during the fourth quarter of 2015. On January 26, 2016, the board of directors approved a quarterly cash dividend of $0.43 per common share payable on or about February 26, 2016 to shareholders of record as of February 12, 2016.
Net Interest Revenue
Net interest revenue increased $2.6 million over the third quarter of 2015.
Net interest margin was 2.64 percent for the fourth quarter of 2015, up from 2.61 percent for the third quarter of 2015. The yield on average earning assets was 2.86 percent, an increase of 3 basis points over the prior quarter. The yield on the available for sale securities portfolio increased 3 basis points to 2.04 percent. The loan portfolio yield increased 1 basis point to 3.55 percent. Funding costs increased 2 basis points over the prior quarter to 0.34 percent. The benefit of non-interest bearing funding sources increased by 2 basis points over the previous quarter.
Average earning assets increased $256 million during the fourth quarter of 2015. Average loan balances increased $395 million primarily due to commercial loan growth and available for sale securities increased $29 million. These increases were partially offset by a decrease in the average balance of residential mortgage loans held for sale, interest-bearing cash and cash equivalents and trading securities. Average deposits increased $12 million over the third quarter of 2015. The average balance of borrowed funds increased $132 million.
Fees and Commissions Revenue
Fees and commissions revenue totaled $155.8 million for the fourth quarter of 2015, an $8.8 million decrease compared to the third quarter of 2015 primarily due to a decrease in mortgage banking revenue.
Mortgage banking revenue totaled $25.0 million for the fourth quarter of 2015, a decrease of $8.1 million compared to the third quarter of 2015. Revenue from mortgage loan production decreased $8.6 million compared to the prior quarter. Increased average mortgage interest rates along with new disclosure requirements known as TRID and seasonal factors reduced mortgage production volume. Total mortgage loans originated during the fourth quarter decreased $249 million or 15 percent compared to the previous quarter and outstanding mortgage loan commitments at December 31 decreased $142 million or 19 percent from September 30. In addition, the value of mortgage loans and commitments held at December 31, net of forward sales contracts, decreased due to rising interest rates during the fourth quarter.
Brokerage and trading revenue totaled $30.3 million for the fourth quarter of 2015, down $1.3 million from the previous quarter. Underwriting revenue decreased $1.3 million due to the timing of completed transactions. Deposit service charges and fees totaled $22.8 million, a decrease of $793 thousand from the third quarter. The decrease was evenly distributed between commercial deposit fees that are based on transaction activity and overdraft fees.
Operating Expenses
Total operating expenses were $232.6 million for the fourth quarter of 2015, an increase of $7.9 million over the third quarter of 2015.
Personnel costs increased $4.1 million over the previous quarter. Incentive compensation increased $2.3 million, primarily due to a change in estimated share-based compensation expense. Share-based compensation includes grants with vesting criteria based on the company’s earnings per share growth relative to peers over a forward looking three-year performance period. The company’s forecasted earnings per share growth over the performance period increased due largely to common shares repurchased during the third and fourth quarters. Regular compensation expense increased $1.1 million. Employee benefits expense increased $757 thousand. Increased employee healthcare costs were partially offset by decreased retirement plan costs and a seasonal decrease in payroll taxes.
Non-personnel expense increased $3.8 million over the third quarter of 2015. Mortgage banking costs increased $2.4 million over the third quarter primarily due to continued resolution of outstanding claims from the servicing of defaulted government guaranteed mortgage loans. Outstanding claims decreased to $30 million at December 31, 2015 from $59 million at December 31, 2014 from these resolution efforts. Business promotion costs increased $2.5 million due to the timing of incurred expenses. Non-personnel expense for the third quarter included a $2.6 million charge to settle litigation and a $796 thousand contribution to the BOKF Foundation.
Loans, Deposits and Capital
Loans
Outstanding loans were $15.9 billion at December 31, 2015, an increase of $574 million over September 30. All loan categories grew over the prior quarter.
Outstanding commercial loan balances increased $455 million over September 30, 2015. Energy sector loans grew $259 million over September 30, 2015 and healthcare sector loans were up $142 million. Service sector loan balances grew by $78 million and other commercial and industrial loans increased $15 million. These increases were partially offset by a $40 million decrease in wholesale/retail sector loan balances. Unfunded energy loan commitments decreased by $355 million in the fourth quarter to $2.4 billion. The decrease in unfunded energy commitments largely reflects the increase in outstanding loans during the quarter. All other unfunded commercial loan commitments totaled $4.4 billion at December 31, 2015, an increase of $252 million over September 30, 2015.
Commercial real estate loans increased $24 million over September 30, 2015. Retail sector loans grew by $27 million over the prior quarter. Loans secured by office buildings increased $12 million and residential construction and land development loans increased $6.9 million. This growth was offset by a $13 million decrease in other commercial real estate loans and a $7.6 million decrease in loans secured by multifamily residential properties. Unfunded commercial real estate loan commitments totaled $1.1 billion at December 31, 2015, an increase of $128 million over September 30, 2015.
Norm Bagwell, executive vice president – Regional Banks, stated, “Loan growth was stronger than expected in the fourth quarter, driven by continued momentum in healthcare as well as growth in the energy portfolio. On a geographic basis, Kansas City, Oklahoma, and Arizona were our strongest markets, with double-digit annualized growth. To date, the business environment in our footprint has been sound despite the energy downturn, and we have yet to see any material spillover impact on the overall economy.”
Stacy Kymes, executive vice president – Corporate Banking, added, “Energy loan growth in the fourth quarter was positively impacted by advances we made to a well-secured longstanding energy client, as well as new business we generated from select, high quality opportunities. These demonstrate our continued commitment to energy lending even in the current commodity price environment. As we are now into the second year of low commodity prices, we are cognizant that credit losses may increase or even rise above what we have seen in previous cycles. However, we remain confident in our underwriting practices in energy lending, which have historically resulted in limited credit losses, and believe we are appropriately reserved and well-positioned to work through the current downturn.”
Deposits
Deposits totaled $21.1 billion at December 31, 2015, an increase of $469 million over September 30, 2015 primarily due to normal seasonality and temporary customer activity. Interest-bearing transaction account balances grew by $300 million and demand deposit balances increased $255 million. Time deposits decreased $92 million. Among the lines of business, commercial deposits increased $139 million, consumer deposits decreased $61 million and wealth management deposits increased $271 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 12.13 percent at December 31, 2015. In addition, the company’s Tier 1 capital ratio was 12.13 percent, total capital ratio was 13.30 percent and leverage ratio was 9.25 percent at December 31, 2015. At September 30, 2015, the company’s common equity Tier 1 capital ratio was 12.78 percent, Tier 1 capital ratio was 12.78 percent, total capital ratio was 13.89 percent and leverage ratio was 9.55 percent.
The company’s tangible common equity ratio, a non-GAAP measure, was 9.02 percent at December 31, 2015 and 9.78 percent at September 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 $252 million or 1.58 percent of outstanding loans and repossessed assets at December 31, 2015 compared to $204 million or 1.33 percent of outstanding loans and repossessed assets at September 30, 2015. Nonperforming assets that are not guaranteed by U.S. government agencies totaled $156 million or 0.99 percent of outstanding loans and repossessed assets (excluding those guaranteed by U.S. government agencies) at December 31, 2015 and $119 million or 0.78 percent at September 30, 2015. The $37 million increase over the prior quarter was primarily due to a single energy credit.
Excluding loans guaranteed by U.S. government agencies, nonaccruing loans totaled $125 million or 0.80 percent of outstanding loans at December 31, 2015 compared to $85 million or 0.56 percent of outstanding loans at September 30, 2015. New nonaccruing loans identified in the fourth quarter totaled $55 million, offset by $7.0 million in payments received, $4.9 million in charge-offs and $3.0 million in foreclosures and repossessions. At December 31, 2015, nonaccruing commercial loans totaled $76 million or 0.75 percent of outstanding commercial loans, including $61 million or 1.98 percent of energy sector loans. Nonaccruing commercial real estate loans totaled $9.0 million or 0.28 percent of outstanding commercial real estate loans.
Potential problem loans, which are defined as performing loans that, based on known information, cause management concern as to the borrowers’ ability to continue to perform, increased to $155 million at December 31 from $120 million at September 30. The increase largely resulted from a $33 million increase in potential problem energy loans to $130 million.
Net charge-offs were $3.0 million for the fourth quarter of 2015, compared to net charge-offs of $1.8 million for the third quarter of 2015. Gross charge-offs totaled $4.9 million for the fourth quarter, compared to $5.3 million for the previous quarter. Recoveries totaled $1.9 million for the fourth quarter of 2015 and $3.5 million for the third quarter of 2015.
After evaluating all credit factors, including the inherent risk of falling energy prices, the company determined that a $22.5 million provision for credit losses was necessary during the fourth quarter of 2015. The additional provision was necessary due to increased impairment and continued credit migration in our energy loan portfolio. In addition, a single borrower reported steeper than expected production declines and higher lease operating expenses, leading to a $14 million impairment on the loan. The combined allowance for credit losses totaled $227 million or 1.43 percent of outstanding loans and 181.46 percent of nonaccruing loans, excluding loans guaranteed by U.S. government agencies, at December 31, 2015. The allowance for loan losses was $226 million and the accrual for off-balance sheet credit losses was $1.7 million.
Energy Portfolio Credit Quality
The company’s $3.1 billion energy loan portfolio consists of 82 percent of loans to exploration and production companies, 9 percent to energy services companies and 9 percent to midstream and other energy related borrowers. Substantially all of the loans to exploration and production companies are secured by first lien positions in established energy reserves. Only $10 million of these loans are in junior lien positions. None represent higher-risk mezzanine financing or subordinated debt and none are high-yield debt.
The portion of the allowance for credit losses attributed to the energy portfolio totaled $90 million or 2.89 percent of outstanding energy loans. Management believes this is appropriate based on the current risk characteristics of the energy portfolio.
Securities and Derivatives
The fair value of the available for sale securities portfolio totaled $9.0 billion at December 31, 2015 and $8.8 billion at September 30, 2015. At December 31, 2015, the available for sale portfolio consisted primarily of $5.9 billion of residential mortgage-backed securities fully backed by U.S. government agencies and $2.9 billion of commercial mortgage-backed securities fully backed by U.S. government agencies.
The available for sale securities portfolio had a net unrealized gain of $38 million at December 31, 2015, compared to a net unrealized gain of $145 million at September 30, 2015. The decrease in the net unrealized gain was primarily due to an increase in interest rates during the fourth quarter. Net unrealized gains on residential mortgage-backed securities issued by U.S. government agencies at December 31, 2015 decreased $68 million during the fourth quarter to a net unrealized gain of $37 million at December 31, 2015. Commercial mortgage-backed securities had a net unrealized loss of $13 million at December 31, 2015, compared to a net unrealized gain of $27 million at September 30, 2015.
In the fourth quarter of 2015, the company recognized net gains of $2.1 million from sales of $436 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 are expected to perform better in the current rate environment. Net gains from sales of $451 million of available for sale securities in the third quarter of 2015 totaled $2.2 million.
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 value of our mortgage servicing rights increased by $7.4 million due primarily to an increase in residential mortgage interest rates during the fourth quarter of 2015. The value of securities and interest rate derivative contracts held as an economic hedge decreased by $4.9 million. The fair value of mortgage servicing rights, net of economic hedge, decreased by $4.4 million in the third quarter, primarily due to a decrease in residential mortgage interest rates.
Conference Call and Webcast
The company will hold a conference call at 9 a.m. Central time on Wednesday, January 27, 2016 to discuss the financial results with investors. The live audio webcast and presentation slides will be available on the company’s website at www.bokf.com. The conference call can also be accessed by dialing 1-412-902-6611. A conference call and webcast replay will also be available shortly after conclusion of the live call at www.bokf.com or by dialing 1-412-317-0088 and referencing conference ID # 10078587.
About BOK Financial Corporation
BOK Financial is a $31 billion regional financial services company based in Tulsa, Oklahoma. The company’s stock is publicly traded on NASDAQ under the Global Select market listings (symbol: BOKF). BOK Financial’s holdings include BOKF, NA, BOSC, Inc. and The Milestone Group, Inc. BOKF, NA operates TransFund, Cavanal Hill Investment Management, BOK Financial Asset Management, Inc. and seven banking divisions: Bank of Albuquerque, Bank of Arizona, Bank of Arkansas, Bank of Kansas City, Bank of Oklahoma, Bank of Texas and Colorado State Bank and Trust. Through its subsidiaries, the company provides commercial and consumer banking, investment and trust services, mortgage origination and servicing, and an electronic funds transfer network. For more information, visit www.bokf.com.
The company will continue to evaluate critical assumptions and estimates, such as the appropriateness of the allowance for credit losses and asset impairment as of December 31, 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) | |||||||||||||
| Dec. 31, 2015 | Sept. 30, 2015 | Dec. 31, 2014 | |||||||||||
| ASSETS | |||||||||||||
| Cash and due from banks | $ | 573,699 | $ | 489,268 | $ | 550,576 | |||||||
| Interest-bearing cash and cash equivalents | 2,069,900 | 1,830,105 | 1,925,266 | ||||||||||
| Trading securities | 122,404 | 181,131 | 188,700 | ||||||||||
| Investment securities | 597,836 | 612,384 | 652,360 | ||||||||||
| Available for sale securities | 9,042,733 | 8,801,089 | 8,978,945 | ||||||||||
| Fair value option securities | 444,217 | 427,760 | 311,597 | ||||||||||
| Restricted equity securities | 273,684 | 263,587 | 141,494 | ||||||||||
| Residential mortgage loans held for sale | 308,439 | 357,414 | 304,182 | ||||||||||
| Loans: | |||||||||||||
| Commercial | 10,252,531 | 9,797,422 | 9,095,670 | ||||||||||
| Commercial real estate | 3,259,033 | 3,235,067 | 2,728,150 | ||||||||||
| Residential mortgage | 1,876,893 | 1,868,995 | 1,949,512 | ||||||||||
| Personal | 552,697 | 465,957 | 434,705 | ||||||||||
| Total loans | 15,941,154 | 15,367,441 | 14,208,037 | ||||||||||
| Allowance for loan losses | (225,524 | ) | (204,116 | ) | (189,056 | ) | |||||||
| Loans, net of allowance | 15,715,630 | 15,163,325 | 14,018,981 | ||||||||||
| Premises and equipment, net | 306,490 | 294,669 | 273,833 | ||||||||||
| Receivables | 163,480 | 151,451 | 132,408 | ||||||||||
| Goodwill | 385,461 | 385,461 | 377,780 | ||||||||||
| Intangible assets, net | 43,909 | 44,999 | 34,376 | ||||||||||
| Mortgage servicing rights, net | 218,605 | 200,049 | 171,976 | ||||||||||
| Real estate and other repossessed assets, net | 30,731 | 33,116 | 101,861 | ||||||||||
| Derivative contracts, net | 586,270 | 726,159 | 361,874 | ||||||||||
| Cash surrender value of bank-owned life insurance | 303,335 | 300,981 | 293,978 | ||||||||||
| Receivable on unsettled securities sales | 40,193 | 30,009 | 74,259 | ||||||||||
| Other assets | 249,112 | 273,948 | 195,252 | ||||||||||
| TOTAL ASSETS | $ | 31,476,128 | $ | 30,566,905 | $ | 29,089,698 | |||||||
| LIABILITIES AND EQUITY | |||||||||||||
| Deposits: | |||||||||||||
| Demand | $ | 8,296,888 | $ | 8,041,767 | $ | 8,066,357 | |||||||
| Interest-bearing transaction | 9,998,954 | 9,698,849 | 10,114,355 | ||||||||||
| Savings | 386,252 | 380,296 | 351,431 | ||||||||||
| Time | 2,406,064 | 2,498,531 | 2,608,716 | ||||||||||
| Total deposits | 21,088,158 | 20,619,443 | 21,140,859 | ||||||||||
| Funds purchased | 491,192 | 62,297 | 57,031 | ||||||||||
| Repurchase agreements | 722,444 | 555,677 | 1,187,489 | ||||||||||
| Other borrowings | 4,837,879 | 4,635,150 | 2,133,774 | ||||||||||
| Subordinated debentures | 226,350 | 226,314 | 347,983 | ||||||||||
| Accrued interest, taxes, and expense | 119,584 | 158,048 | 120,211 | ||||||||||
| Due on unsettled securities purchases | 16,897 | 98,351 | 290,540 | ||||||||||
| Derivative contracts, net | 581,701 | 636,115 | 354,554 | ||||||||||
| Other liabilities | 124,284 | 159,348 | 121,051 | ||||||||||
| TOTAL LIABILITIES | 28,208,489 | 27,150,743 | 25,753,492 | ||||||||||
| Shareholders’ equity: | |||||||||||||
| Capital, surplus and retained earnings | 3,208,969 | 3,291,450 | 3,245,506 | ||||||||||
| Accumulated other comprehensive income | 21,587 | 85,776 | 56,673 | ||||||||||
| TOTAL SHAREHOLDERS’ EQUITY | 3,230,556 | 3,377,226 | 3,302,179 | ||||||||||
| Non-controlling interests | 37,083 | 38,936 | 34,027 | ||||||||||
| TOTAL EQUITY | 3,267,639 | 3,416,162 | 3,336,206 | ||||||||||
| TOTAL LIABILITIES AND EQUITY | $ | 31,476,128 | $ | 30,566,905 | $ | 29,089,698 | |||||||
| AVERAGE BALANCE SHEETS — UNAUDITED BOK FINANCIAL CORPORATION (in thousands) | |||||||||||||||||||
| Three Months Ended | |||||||||||||||||||
| Dec. 31, 2015 | Sept. 30, 2015 | June 30, 2015 | March 31, 2015 | Dec. 31, 2014 | |||||||||||||||
| ASSETS | |||||||||||||||||||
| Interest-bearing cash and cash equivalents | $ | 1,995,945 | $ | 2,038,611 | $ | 2,002,456 | $ | 2,089,546 | $ | 2,090,176 | |||||||||
| Trading securities | 150,402 | 179,098 | 127,391 | 140,968 | 164,502 | ||||||||||||||
| Investment securities | 602,369 | 616,091 | 628,489 | 642,825 | 650,911 | ||||||||||||||
| Available for sale securities | 8,971,090 | 8,942,261 | 9,063,006 | 9,101,464 | 9,161,901 | ||||||||||||||
| Fair value option securities | 435,449 | 429,951 | 435,294 | 404,775 | 221,773 | ||||||||||||||
| Restricted equity securities | 262,461 | 255,610 | 221,911 | 179,385 | 182,737 | ||||||||||||||
| Residential mortgage loans held for sale | 310,425 | 401,359 | 464,269 | 348,054 | 321,746 | ||||||||||||||
| Loans: | |||||||||||||||||||
| Commercial | 10,024,756 | 9,685,768 | 9,634,306 | 9,308,307 | 8,886,952 | ||||||||||||||
| Commercial real estate | 3,186,629 | 3,198,200 | 2,989,615 | 2,909,565 | 2,665,547 | ||||||||||||||
| Residential mortgage | 1,835,195 | 1,847,696 | 1,857,464 | 1,909,998 | 1,904,777 | ||||||||||||||
| Personal | 540,418 | 460,647 | 423,967 | 426,712 | 424,729 | ||||||||||||||
| Total loans | 15,586,998 | 15,192,311 | 14,905,352 | 14,554,582 | 13,882,005 | ||||||||||||||
| Allowance for loan losses | (207,156 | ) | (202,829 | ) | (198,400 | ) | (194,948 | ) | (190,787 | ) | |||||||||
| Total loans, net | 15,379,842 | 14,989,482 | 14,706,952 | 14,359,634 | 13,691,218 | ||||||||||||||
| Total earning assets | 28,107,983 | 27,852,463 | 27,649,768 | 27,266,651 | 26,484,964 | ||||||||||||||
| Cash and due from banks | 514,629 | 487,283 | 492,737 | 513,734 | 528,595 | ||||||||||||||
| Derivative contracts, net | 657,780 | 669,264 | 475,687 | 447,565 | 352,565 | ||||||||||||||
| Cash surrender value of bank-owned life insurance | 301,793 | 299,424 | 297,022 | 294,803 | 292,411 | ||||||||||||||
| Receivable on unsettled securities sales | 62,228 | 64,591 | 94,374 | 99,706 | 69,109 | ||||||||||||||
| Other assets | 1,435,763 | 1,396,708 | 1,454,484 | 1,348,245 | 1,404,553 | ||||||||||||||
| TOTAL ASSETS | $ | 31,080,176 | $ | 30,769,733 | $ | 30,464,072 | $ | 29,970,704 | $ | 29,132,197 | |||||||||
| LIABILITIES AND EQUITY | |||||||||||||||||||
| Deposits: | |||||||||||||||||||
| Demand | $ | 8,312,961 | $ | 7,994,607 | $ | 7,996,717 | $ | 7,885,485 | $ | 7,974,165 | |||||||||
| Interest-bearing transaction | 9,527,491 | 9,760,839 | 10,063,589 | 10,338,396 | 9,730,564 | ||||||||||||||
| Savings | 382,284 | 379,828 | 381,833 | 365,835 | 346,132 | ||||||||||||||
| Time | 2,482,714 | 2,557,874 | 2,651,820 | 2,659,323 | 2,647,147 | ||||||||||||||
| Total deposits | 20,705,450 | 20,693,148 | 21,093,959 | 21,249,039 | 20,698,008 | ||||||||||||||
| Funds purchased | 73,220 | 70,281 | 63,312 | 69,730 | 71,728 | ||||||||||||||
| Repurchase agreements | 623,921 | 672,085 | 773,977 | 1,000,839 | 996,308 | ||||||||||||||
| Other borrowings | 4,957,175 | 4,779,981 | 4,001,479 | 3,084,214 | 3,021,094 | ||||||||||||||
| Subordinated debentures | 226,332 | 226,296 | 307,903 | 348,007 | 347,960 | ||||||||||||||
| Derivative contracts, net | 632,699 | 597,908 | 455,431 | 418,848 | 321,367 | ||||||||||||||
| Due on unsettled securities purchases | 248,811 | 90,135 | 151,369 | 205,096 | 137,566 | ||||||||||||||
| Other liabilities | 251,953 | 240,704 | 235,173 | 243,370 | 228,021 | ||||||||||||||
| TOTAL LIABILITIES | 27,719,561 | 27,370,538 | 27,082,603 | 26,619,143 | 25,822,052 | ||||||||||||||
| Total equity | 3,360,615 | 3,399,195 | 3,381,469 | 3,351,561 | 3,310,145 | ||||||||||||||
| TOTAL LIABILITIES AND EQUITY | $ | 31,080,176 | $ | 30,769,733 | $ | 30,464,072 | $ | 29,970,704 | $ | 29,132,197 | |||||||||
| STATEMENTS OF EARNINGS — UNAUDITED BOK FINANCIAL CORPORATION (in thousands, except per share data) | |||||||||||||||
| Three Months Ended | Year Ended | ||||||||||||||
| Dec. 31, | Dec. 31, | ||||||||||||||
| 2015 | 2014 | 2015 | 2014 | ||||||||||||
| Interest revenue | $ | 196,782 | $ | 186,620 | $ | 766,828 | $ | 732,239 | |||||||
| Interest expense | 15,521 | 16,956 | 63,474 | 67,045 | |||||||||||
| Net interest revenue | 181,261 | 169,664 | 703,354 | 665,194 | |||||||||||
| Provision for credit losses | 22,500 | — | 34,000 | — | |||||||||||
| Net interest revenue after provision for credit losses | 158,761 | 169,664 | 669,354 | 665,194 | |||||||||||
| Other operating revenue: | |||||||||||||||
| Brokerage and trading revenue | 30,255 | 30,602 | 129,556 | 134,437 | |||||||||||
| Transaction card revenue | 32,319 | 31,467 | 128,621 | 123,689 | |||||||||||
| Fiduciary and asset management revenue | 31,165 | 30,649 | 126,153 | 115,652 | |||||||||||
| Deposit service charges and fees | 22,813 | 22,581 | 90,431 | 90,911 | |||||||||||
| Mortgage banking revenue | 25,039 | 30,105 | 134,375 | 109,093 | |||||||||||
| Bank-owned life insurance | 2,348 | 2,380 | 9,304 | 9,086 | |||||||||||
| Other revenue | 11,885 | 10,071 | 40,579 | 38,451 | |||||||||||
| Total fees and commissions | 155,824 | 157,855 | 659,019 | 621,319 | |||||||||||
| Gain on other assets, net | 2,329 | 338 | 5,702 | 2,953 | |||||||||||
| Gain (loss) on derivatives, net | (732 | ) | 1,070 | 430 | 2,776 | ||||||||||
| Gain (loss) on fair value option securities, net | (4,127 | ) | 3,685 | (3,684 | ) | 10,189 | |||||||||
| Change in fair value of mortgage servicing rights | 7,416 | (10,821 | ) | (4,853 | ) | (16,445 | ) | ||||||||
| Gain on available for sale securities, net | 2,132 | 149 | 12,058 | 1,539 | |||||||||||
| Total other-than-temporary impairment losses | (2,114 | ) | (373 | ) | (2,895 | ) | (373 | ) | |||||||
| Portion of loss recognized in (reclassified from) other comprehensive income | 387 | — | 1,076 | — | |||||||||||
| Net impairment losses recognized in earnings | (1,727 | ) | (373 | ) | (1,819 | ) | (373 | ) | |||||||
| Total other operating revenue | 161,115 | 151,903 | 666,853 | 621,958 | |||||||||||
| Other operating expense: | |||||||||||||||
| Personnel | 133,182 | 125,741 | 523,487 | 476,931 | |||||||||||
| Business promotion | 8,416 | 7,498 | 27,851 | 26,649 | |||||||||||
| Charitable contributions to BOKF Foundation | — | 1,847 | 796 | 4,267 | |||||||||||
| Professional fees and services | 10,357 | 11,058 | 40,123 | 44,440 | |||||||||||
| Net occupancy and equipment | 19,356 | 22,655 | 76,016 | 77,232 | |||||||||||
| Insurance | 5,415 | 4,777 | 20,375 | 18,578 | |||||||||||
| Data processing and communications | 31,248 | 30,259 | 122,383 | 115,225 | |||||||||||
| Printing, postage and supplies | 3,108 | 3,168 | 13,498 | 13,518 | |||||||||||
| Net losses (gains) and operating expenses of repossessed assets | 343 | (1,497 | ) | 1,446 | 6,019 | ||||||||||
| Amortization of intangible assets | 1,090 | 1,100 | 4,359 | 3,965 | |||||||||||
| Mortgage banking costs | 11,496 | 11,166 | 38,997 | 31,705 | |||||||||||
| Other expense | 8,547 | 8,105 | 35,233 | 28,993 | |||||||||||
| Total other operating expense | 232,558 | 225,877 | 904,564 | 847,522 | |||||||||||
| Net income before taxes | 87,318 | 95,690 | 431,643 | 439,630 | |||||||||||
| Federal and state income taxes | 26,242 | 30,109 | 139,384 | 144,151 | |||||||||||
| Net income | 61,076 | 65,581 | 292,259 | 295,479 | |||||||||||
| Net income attributable to non-controlling interests | 1,475 | 1,263 | 3,694 | 3,044 | |||||||||||
| Net income attributable to BOK Financial Corporation shareholders | $ | 59,601 | $ | 64,318 | $ | 288,565 | $ | 292,435 | |||||||
| Average shares outstanding: | |||||||||||||||
| Basic | 66,378,380 | 68,481,630 | 67,594,689 | 68,394,194 | |||||||||||
| Diluted | 66,467,729 | 68,615,808 | 67,691,658 | 68,544,770 | |||||||||||
| Net income per share: | |||||||||||||||
| Basic | $ | 0.89 | $ | 0.93 | $ | 4.22 | $ | 4.23 | |||||||
| Diluted | $ | 0.89 | $ | 0.93 | $ | 4.21 | $ | 4.22 | |||||||
| FINANCIAL HIGHLIGHTS — UNAUDITED BOK FINANCIAL CORPORATION (in thousands, except ratio and share data) | |||||||||||||||||||
| Three Months Ended | |||||||||||||||||||
| Dec. 31, 2015 | Sept. 30, 2015 | June 30, 2015 | March 31, 2015 | Dec. 31, 2014 | |||||||||||||||
| Capital: | |||||||||||||||||||
| Period-end shareholders’ equity | $ | 3,230,556 | $ | 3,377,226 | $ | 3,375,632 | $ | 3,357,161 | $ | 3,302,179 | |||||||||
| Risk weighted assets | $ | 23,429,897 | $ | 22,706,537 | $ | 22,533,295 | $ | 22,053,246 | $ | 21,290,908 | |||||||||
| Risk-based capital ratios1: | |||||||||||||||||||
| Common equity tier 1 | 12.13 | % | 12.78 | % | 13.01 | % | 13.07 | % | N/A | ||||||||||
| Tier 1 | 12.13 | % | 12.78 | % | 13.01 | % | 13.07 | % | 13.33 | % | |||||||||
| Total capital | 13.30 | % | 13.89 | % | 14.11 | % | 14.39 | % | 14.66 | % | |||||||||
| Leverage ratio | 9.25 | % | 9.55 | % | 9.75 | % | 9.74 | % | 9.96 | % | |||||||||
| Tangible common equity ratio2 | 9.02 | % | 9.78 | % | 9.72 | % | 9.86 | % | 10.08 | % | |||||||||
| Common stock: | |||||||||||||||||||
| Book value per share | $ | 49.03 | $ | 49.88 | $ | 48.96 | $ | 48.71 | $ | 47.78 | |||||||||
| Market value per share: | |||||||||||||||||||
| High | $ | 74.73 | $ | 70.26 | $ | 71.66 | $ | 61.78 | $ | 68.69 | |||||||||
| Low | $ | 58.25 | $ | 57.04 | $ | 59.59 | $ | 52.63 | $ | 56.87 | |||||||||
| Cash dividends paid | $ | 28,967 | $ | 28,766 | $ | 28,841 | $ | 28,952 | $ | 29,114 | |||||||||
| Dividend payout ratio | 48.60 | % | 38.41 | % | 36.40 | % | 38.68 | % | 45.27 | % | |||||||||
| Shares outstanding, net | 65,894,032 | 67,713,031 | 68,945,139 | 68,922,314 | 69,113,736 | ||||||||||||||
| Stock buy-back program: | |||||||||||||||||||
| Shares repurchased | 1,874,074 | 1,258,348 | — | 502,156 | 200,000 | ||||||||||||||
| Amount | $ | 119,780 | $ | 80,276 | $ | — | $ | 29,484 | $ | 12,337 | |||||||||
| Average price per share | $ | 63.91 | $ | 63.79 | $ | — | $ | 58.71 | $ | 61.68 | |||||||||
| Performance ratios (quarter annualized): | |||||||||||||||||||
| Return on average assets | 0.76 | % | 0.97 | % | 1.04 | % | 1.01 | % | 0.88 | % | |||||||||
| Return on average equity | 7.12 | % | 8.84 | % | 9.50 | % | 9.15 | % | 7.79 | % | |||||||||
| Net interest margin | 2.64 | % | 2.61 | % | 2.61 | % | 2.55 | % | 2.61 | % | |||||||||
| Efficiency ratio | 67.93 | % | 64.34 | % | 64.21 | % | 64.91 | % | 67.95 | % | |||||||||
| 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 | $ | 3,230,556 | $ | 3,377,226 | $ | 3,375,632 | $ | 3,357,161 | $ | 3,302,179 | |||||||||
| Less: Goodwill and intangible assets, net | 429,370 | 430,460 | 431,515 | 411,066 | 412,156 | ||||||||||||||
| Tangible common equity | $ | 2,801,186 | $ | 2,946,766 | $ | 2,944,117 | $ | 2,946,095 | $ | 2,890,023 | |||||||||
| Total assets | $ | 31,476,128 | $ | 30,566,905 | $ | 30,725,563 | $ | 30,299,978 | $ | 29,089,698 | |||||||||
| Less: Goodwill and intangible assets, net | 429,370 | 430,460 | 431,515 | 411,066 | 412,156 | ||||||||||||||
| Tangible assets | $ | 31,046,758 | $ | 30,136,445 | $ | 30,294,048 | $ | 29,888,912 | $ | 28,677,542 | |||||||||
| Tangible common equity ratio | 9.02 | % | 9.78 | % | 9.72 | % | 9.86 | % | 10.08 | % | |||||||||
| Other data: | |||||||||||||||||||
| Fiduciary assets | $ | 38,333,638 | $ | 37,780,669 | $ | 38,772,018 | $ | 37,511,746 | $ | 35,997,877 | |||||||||
| Tax equivalent adjustment | $ | 3,222 | $ | 3,244 | $ | 3,035 | $ | 2,956 | $ | 2,859 | |||||||||
| Net unrealized gain on available for sale securities | $ | 38,109 | $ | 144,884 | $ | 89,158 | $ | 152,107 | $ | 96,955 | |||||||||
| Mortgage banking: | |||||||||||||||||||
| Mortgage servicing portfolio | $ | 19,678,226 | $ | 18,928,726 | $ | 17,979,623 | $ | 16,937,128 | $ | 16,162,887 | |||||||||
| Mortgage commitments | $ | 601,147 | $ | 742,742 | $ | 849,619 | $ | 824,036 | $ | 627,505 | |||||||||
| Mortgage loans funded for sale | $ | 1,365,431 | $ | 1,614,225 | $ | 1,828,230 | $ | 1,565,016 | $ | 1,264,269 | |||||||||
| Mortgage loan refinances to total fundings | 41 | % | 30 | % | 40 | % | 56 | % | 37 | % | |||||||||
| Mortgage loans sold | $ | 1,424,527 | $ | 1,778,099 | $ | 1,861,968 | $ | 1,382,042 | $ | 1,350,529 | |||||||||
| Net realized gains on mortgage loans sold | $ | 15,705 | $ | 18,968 | $ | 23,856 | $ | 17,251 | $ | 17,671 | |||||||||
| Change in net unrealized gain on mortgage loans held for sale | (5,615 | ) | (251 | ) | (743 | ) | 8,789 | (482 | ) | ||||||||||
| Total production revenue | 10,090 | 18,717 | 23,113 | 26,040 | 17,189 | ||||||||||||||
| Servicing revenue | 14,949 | 14,453 | 13,733 | 13,280 | 12,916 | ||||||||||||||
| Total mortgage banking revenue | $ | 25,039 | $ | 33,170 | $ | 36,846 | $ | 39,320 | $ | 30,105 | |||||||||
| Gain (loss) on mortgage servicing rights, net of economic hedge: | |||||||||||||||||||
| Gain (loss) on mortgage hedge derivative contracts, net | $ | (732 | ) | $ | 1,460 | $ | (1,005 | ) | $ | 911 | $ | 1,070 | |||||||
| Gain (loss) on fair value option securities, net | (4,127 | ) | 5,926 | (8,130 | ) | 2,647 | 3,685 | ||||||||||||
| Gain (loss) on economic hedge of mortgage servicing rights | (4,859 | ) | 7,386 | (9,135 | ) | 3,558 | 4,755 | ||||||||||||
| Gain (loss) on changes in fair value of mortgage servicing rights | 7,416 | (11,757 | ) | 8,010 | (8,522 | ) | (10,821 | ) | |||||||||||
| Gain (loss) on changes in fair value of mortgage servicing rights, net of economic hedges | $ | 2,557 | $ | (4,371 | ) | $ | (1,125 | ) | $ | (4,964 | ) | $ | (6,066 | ) | |||||
| Net interest revenue on fair value option securities | $ | 2,137 | $ | 2,140 | $ | 1,985 | $ | 1,739 | $ | 912 | |||||||||
| QUARTERLY EARNINGS TREND — UNAUDITED BOK FINANCIAL CORPORATION (in thousands, except ratio and per share data) | |||||||||||||||||||
| Three Months Ended | |||||||||||||||||||
| Dec. 31, 2015 | Sept. 30, 2015 | June 30, 2015 | March 31, 2015 | Dec. 31, 2014 | |||||||||||||||
| Interest revenue | $ | 196,782 | $ | 193,664 | $ | 191,813 | $ | 184,569 | $ | 186,620 | |||||||||
| Interest expense | 15,521 | 15,028 | 16,082 | 16,843 | 16,956 | ||||||||||||||
| Net interest revenue | 181,261 | 178,636 | 175,731 | 167,726 | 169,664 | ||||||||||||||
| Provision for credit losses | 22,500 | 7,500 | 4,000 | — | — | ||||||||||||||
| Net interest revenue after provision for credit losses | 158,761 | 171,136 | 171,731 | 167,726 | 169,664 | ||||||||||||||
| Other operating revenue: | |||||||||||||||||||
| Brokerage and trading revenue | 30,255 | 31,582 | 36,012 | 31,707 | 30,602 | ||||||||||||||
| Transaction card revenue | 32,319 | 32,514 | 32,778 | 31,010 | 31,467 | ||||||||||||||
| Fiduciary and asset management revenue | 31,165 | 30,807 | 32,712 | 31,469 | 30,649 | ||||||||||||||
| Deposit service charges and fees | 22,813 | 23,606 | 22,328 | 21,684 | 22,581 | ||||||||||||||
| Mortgage banking revenue | 25,039 | 33,170 | 36,846 | 39,320 | 30,105 | ||||||||||||||
| Bank-owned life insurance | 2,348 | 2,360 | 2,398 | 2,198 | 2,380 | ||||||||||||||
| Other revenue | 11,885 | 10,618 | 9,473 | 8,603 | 10,071 | ||||||||||||||
| Total fees and commissions | 155,824 | 164,657 | 172,547 | 165,991 | 157,855 | ||||||||||||||
| Gain on other assets, net | 2,329 | 1,161 | 1,457 | 755 | 338 | ||||||||||||||
| Gain (loss) on derivatives, net | (732 | ) | 1,283 | (1,032 | ) | 911 | 1,070 | ||||||||||||
| Gain (loss) on fair value option securities, net | (4,127 | ) | 5,926 | (8,130 | ) | 2,647 | 3,685 | ||||||||||||
| Change in fair value of mortgage servicing rights | 7,416 | (11,757 | ) | 8,010 | (8,522 | ) | (10,821 | ) | |||||||||||
| Gain on available for sale securities, net | 2,132 | 2,166 | 3,433 | 4,327 | 149 | ||||||||||||||
| Total other-than-temporary impairment losses | (2,114 | ) | — | — | (781 | ) | (373 | ) | |||||||||||
| Portion of loss recognized in (reclassified from) other comprehensive income | 387 | — | — | 689 | — | ||||||||||||||
| Net impairment losses recognized in earnings | (1,727 | ) | — | — | (92 | ) | (373 | ) | |||||||||||
| Total other operating revenue | 161,115 | 163,436 | 176,285 | 166,017 | 151,903 | ||||||||||||||
| Other operating expense: | |||||||||||||||||||
| Personnel | 133,182 | 129,062 | 132,695 | 128,548 | 125,741 | ||||||||||||||
| Business promotion | 8,416 | 5,922 | 7,765 | 5,748 | 7,498 | ||||||||||||||
| Contribution to BOKF Foundation | — | 796 | — | — | 1,847 | ||||||||||||||
| Professional fees and services | 10,357 | 10,147 | 9,560 | 10,059 | 11,058 | ||||||||||||||
| Net occupancy and equipment | 19,356 | 18,689 | 18,927 | 19,044 | 22,655 | ||||||||||||||
| Insurance | 5,415 | 4,864 | 5,116 | 4,980 | 4,777 | ||||||||||||||
| Data processing and communications | 31,248 | 30,708 | 30,655 | 29,772 | 30,259 | ||||||||||||||
| Printing, postage and supplies | 3,108 | 3,376 | 3,553 | 3,461 | 3,168 | ||||||||||||||
| Net losses (gains) and operating expenses of repossessed assets | 343 | 267 | 223 | 613 | (1,497 | ) | |||||||||||||
| Amortization of intangible assets | 1,090 | 1,089 | 1,090 | 1,090 | 1,100 | ||||||||||||||
| Mortgage banking costs | 11,496 | 9,107 | 8,227 | 10,167 | 11,166 | ||||||||||||||
| Other expense | 8,547 | 10,601 | 9,302 | 6,783 | 8,105 | ||||||||||||||
| Total other operating expense | 232,558 | 224,628 | 227,113 | 220,265 | 225,877 | ||||||||||||||
| Net income before taxes | 87,318 | 109,944 | 120,903 | 113,478 | 95,690 | ||||||||||||||
| Federal and state income taxes | 26,242 | 34,128 | 40,630 | 38,384 | 30,109 | ||||||||||||||
| Net income | 61,076 | 75,816 | 80,273 | 75,094 | 65,581 | ||||||||||||||
| Net income attributable to non-controlling interests | 1,475 | 925 | 1,043 | 251 | 1,263 | ||||||||||||||
| Net income attributable to BOK Financial Corporation shareholders | $ | 59,601 | $ | 74,891 | $ | 79,230 | $ | 74,843 | $ | 64,318 | |||||||||
| Average shares outstanding: | |||||||||||||||||||
| Basic | 66,378,380 | 67,668,076 | 68,096,341 | 68,254,780 | 68,481,630 | ||||||||||||||
| Diluted | 66,467,729 | 67,762,483 | 68,210,353 | 68,344,886 | 68,615,808 | ||||||||||||||
| Net income per share: | |||||||||||||||||||
| Basic | $ | 0.89 | $ | 1.09 | $ | 1.15 | $ | 1.08 | $ | 0.93 | |||||||||
| Diluted | $ | 0.89 | $ | 1.09 | $ | 1.15 | $ | 1.08 | $ | 0.93 | |||||||||
| LOANS TREND — UNAUDITED BOK FINANCIAL CORPORATION (In thousands) | ||||||||||||||||||||
| Dec. 31, 2015 | Sept. 30, 2015 | June 30, 2015 | March 31, 2015 | Dec. 31, 2014 | ||||||||||||||||
| Commercial: | ||||||||||||||||||||
| Energy | $ | 3,097,328 | $ | 2,838,167 | $ | 2,902,143 | $ | 2,902,994 | $ | 2,860,428 | ||||||||||
| Services | 2,784,276 | 2,706,624 | 2,681,126 | 2,592,876 | 2,391,530 | |||||||||||||||
| Healthcare | 1,883,380 | 1,741,680 | 1,646,025 | 1,511,177 | 1,454,969 | |||||||||||||||
| Wholesale/retail | 1,422,064 | 1,461,936 | 1,533,730 | 1,405,800 | 1,440,015 | |||||||||||||||
| Manufacturing | 556,729 | 555,677 | 579,549 | 560,925 | 532,594 | |||||||||||||||
| Other commercial and industrial | 508,754 | 493,338 | 433,148 | 417,391 | 416,134 | |||||||||||||||
| Total commercial | 10,252,531 | 9,797,422 | 9,775,721 | 9,391,163 | 9,095,670 | |||||||||||||||
| Commercial real estate: | ||||||||||||||||||||
| Retail | 796,499 | 769,449 | 688,447 | 658,860 | 666,889 | |||||||||||||||
| Multifamily | 751,085 | 758,658 | 711,333 | 749,986 | 704,298 | |||||||||||||||
| Office | 637,707 | 626,151 | 563,085 | 513,862 | 415,544 | |||||||||||||||
| Industrial | 563,169 | 563,871 | 488,054 | 478,584 | 428,817 | |||||||||||||||
| Residential construction and land development | 160,426 | 153,510 | 148,574 | 139,152 | 143,591 | |||||||||||||||
| Other real estate | 350,147 | 363,428 | 434,004 | 395,020 | 369,011 | |||||||||||||||
| Total commercial real estate | 3,259,033 | 3,235,067 | 3,033,497 | 2,935,464 | 2,728,150 | |||||||||||||||
| Residential mortgage: | ||||||||||||||||||||
| Permanent mortgage | 945,336 | 937,664 | 946,324 | 964,264 | 969,951 | |||||||||||||||
| Permanent mortgages guaranteed by U.S. government agencies | 196,937 | 192,712 | 190,839 | 200,179 | 205,950 | |||||||||||||||
| Home equity | 734,620 | 738,619 | 747,565 | 762,556 | 773,611 | |||||||||||||||
| Total residential mortgage | 1,876,893 | 1,868,995 | 1,884,728 | 1,926,999 | 1,949,512 | |||||||||||||||
| Personal | 552,697 | 465,957 | 430,190 | 430,510 | 434,705 | |||||||||||||||
| Total | $ | 15,941,154 | $ | 15,367,441 | $ | 15,124,136 | $ | 14,684,136 | $ | 14,208,037 | ||||||||||
| LOANS BY PRINCIPAL MARKET AREA — UNAUDITED BOK FINANCIAL CORPORATION (in thousands) | |||||||||||||||||||
| Dec. 31, 2015 | Sept. 30, 2015 | June 30, 2015 | March 31, 2015 | Dec. 31, 2014 | |||||||||||||||
| Bank of Oklahoma: | |||||||||||||||||||
| Commercial | $ | 3,782,687 | $ | 3,514,391 | $ | 3,529,406 | $ | 3,276,553 | $ | 3,142,689 | |||||||||
| Commercial real estate | 739,829 | 677,372 | 614,995 | 612,639 | 603,610 | ||||||||||||||
| Residential mortgage | 1,409,114 | 1,405,235 | 1,413,690 | 1,442,340 | 1,467,096 | ||||||||||||||
| Personal | 255,387 | 185,463 | 190,909 | 205,496 | 206,115 | ||||||||||||||
| Total Bank of Oklahoma | 6,187,017 | 5,782,461 | 5,749,000 | 5,537,028 | 5,419,510 | ||||||||||||||
| Bank of Texas: | |||||||||||||||||||
| Commercial | 3,908,425 | 3,752,193 | 3,738,742 | 3,709,467 | 3,549,128 | ||||||||||||||
| Commercial real estate | 1,204,202 | 1,257,741 | 1,158,056 | 1,130,973 | 1,027,817 | ||||||||||||||
| Residential mortgage | 219,126 | 222,395 | 228,683 | 237,985 | 235,948 | ||||||||||||||
| Personal | 203,496 | 194,051 | 156,260 | 149,827 | 154,363 | ||||||||||||||
| Total Bank of Texas | 5,535,249 | 5,426,380 | 5,281,741 | 5,228,252 | 4,967,256 | ||||||||||||||
| Bank of Albuquerque: | |||||||||||||||||||
| Commercial | 375,839 | 368,027 | 392,362 | 388,005 | 383,439 | ||||||||||||||
| Commercial real estate | 313,422 | 312,953 | 291,953 | 296,696 | 296,358 | ||||||||||||||
| Residential mortgage | 120,507 | 121,232 | 123,376 | 127,326 | 127,999 | ||||||||||||||
| Personal | 11,557 | 10,477 | 11,939 | 12,095 | 10,899 | ||||||||||||||
| Total Bank of Albuquerque | 821,325 | 812,689 | 819,630 | 824,122 | 818,695 | ||||||||||||||
| Bank of Arkansas: | |||||||||||||||||||
| Commercial | 92,359 | 76,044 | 99,086 | 91,485 | 95,510 | ||||||||||||||
| Commercial real estate | 69,320 | 82,225 | 85,997 | 87,034 | 88,301 | ||||||||||||||
| Residential mortgage | 8,169 | 8,063 | 6,999 | 6,807 | 7,261 | ||||||||||||||
| Personal | 819 | 4,921 | 5,189 | 5,114 | 5,169 | ||||||||||||||
| Total Bank of Arkansas | 170,667 | 171,253 | 197,271 | 190,440 | 196,241 | ||||||||||||||
| Colorado State Bank & Trust: | |||||||||||||||||||
| Commercial | 987,076 | 1,029,694 | 1,019,454 | 1,008,316 | 977,961 | ||||||||||||||
| Commercial real estate | 223,946 | 229,835 | 229,721 | 209,272 | 194,553 | ||||||||||||||
| Residential mortgage | 53,782 | 50,138 | 54,135 | 55,925 | 57,119 | ||||||||||||||
| Personal | 23,384 | 30,683 | 30,373 | 27,792 | 27,918 | ||||||||||||||
| Total Colorado State Bank & Trust | 1,288,188 | 1,340,350 | 1,333,683 | 1,301,305 | 1,257,551 | ||||||||||||||
| Bank of Arizona: | |||||||||||||||||||
| Commercial | 606,733 | 608,235 | 572,477 | 519,767 | 547,524 | ||||||||||||||
| Commercial real estate | 507,523 | 482,918 | 472,061 | 432,269 | 355,140 | ||||||||||||||
| Residential mortgage | 44,047 | 41,722 | 37,493 | 36,161 | 35,872 | ||||||||||||||
| Personal | 31,060 | 17,609 | 12,875 | 12,394 | 12,883 | ||||||||||||||
| Total Bank of Arizona | 1,189,363 | 1,150,484 | 1,094,906 | 1,000,591 | 951,419 | ||||||||||||||
| Bank of Kansas City: | |||||||||||||||||||
| Commercial | 499,412 | 448,838 | 424,194 | 397,570 | 399,419 | ||||||||||||||
| Commercial real estate | 200,791 | 192,023 | 180,714 | 166,581 | 162,371 | ||||||||||||||
| Residential mortgage | 22,148 | 20,210 | 20,352 | 20,455 | 18,217 | ||||||||||||||
| Personal | 26,994 | 22,753 | 22,645 | 17,792 | 17,358 | ||||||||||||||
| Total Bank of Kansas City | 749,345 | 683,824 | 647,905 | 602,398 | 597,365 | ||||||||||||||
| TOTAL BOK FINANCIAL | $ | 15,941,154 | $ | 15,367,441 | $ | 15,124,136 | $ | 14,684,136 | $ | 14,208,037 | |||||||||
| 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) | |||||||||||||||||||
| Dec. 31, 2015 | Sept. 30, 2015 | June 30, 2015 | March 31, 2015 | Dec. 31, 2014 | |||||||||||||||
| Bank of Oklahoma: | |||||||||||||||||||
| Demand | $ | 4,133,520 | $ | 3,834,145 | $ | 4,068,088 | $ | 3,982,534 | $ | 3,828,819 | |||||||||
| Interest-bearing: | |||||||||||||||||||
| Transaction | 5,971,819 | 5,783,258 | 6,018,381 | 6,199,468 | 6,117,886 | ||||||||||||||
| Savings | 226,733 | 225,580 | 225,694 | 227,855 | 206,357 | ||||||||||||||
| Time | 1,202,274 | 1,253,137 | 1,380,566 | 1,372,250 | 1,301,194 | ||||||||||||||
| Total interest-bearing | 7,400,826 | 7,261,975 | 7,624,641 | 7,799,573 | 7,625,437 | ||||||||||||||
| Total Bank of Oklahoma | 11,534,346 | 11,096,120 | 11,692,729 | 11,782,107 | 11,454,256 | ||||||||||||||
| Bank of Texas: | |||||||||||||||||||
| Demand | 2,627,764 | 2,689,493 | 2,565,234 | 2,511,032 | 2,639,732 | ||||||||||||||
| Interest-bearing: | |||||||||||||||||||
| Transaction | 2,132,099 | 1,996,223 | 2,020,817 | 2,062,063 | 2,065,723 | ||||||||||||||
| Savings | 77,902 | 74,674 | 74,373 | 76,128 | 72,037 | ||||||||||||||
| Time | 549,740 | 554,106 | 536,844 | 547,371 | 547,316 | ||||||||||||||
| Total interest-bearing | 2,759,741 | 2,625,003 | 2,632,034 | 2,685,562 | 2,685,076 | ||||||||||||||
| Total Bank of Texas | 5,387,505 | 5,314,496 | 5,197,268 | 5,196,594 | 5,324,808 | ||||||||||||||
| Bank of Albuquerque: | |||||||||||||||||||
| Demand | 487,286 | 520,785 | 508,224 | 537,466 | 487,819 | ||||||||||||||
| Interest-bearing: | |||||||||||||||||||
| Transaction | 563,723 | 529,862 | 537,156 | 535,791 | 519,544 | ||||||||||||||
| Savings | 43,672 | 41,380 | 41,802 | 42,088 | 37,471 | ||||||||||||||
| Time | 267,821 | 281,426 | 285,890 | 290,706 | 295,798 | ||||||||||||||
| Total interest-bearing | 875,216 | 852,668 | 864,848 | 868,585 | 852,813 | ||||||||||||||
| Total Bank of Albuquerque | 1,362,502 | 1,373,453 | 1,373,072 | 1,406,051 | 1,340,632 | ||||||||||||||
| Bank of Arkansas: | |||||||||||||||||||
| Demand | 27,252 | 25,397 | 19,731 | 31,002 | 35,996 | ||||||||||||||
| Interest-bearing: | |||||||||||||||||||
| Transaction | 202,857 | 290,728 | 284,349 | 253,691 | 158,115 | ||||||||||||||
| Savings | 1,747 | 1,573 | 1,712 | 1,677 | 1,936 | ||||||||||||||
| Time | 24,983 | 26,203 | 28,220 | 28,277 | 28,520 | ||||||||||||||
| Total interest-bearing | 229,587 | 318,504 | 314,281 | 283,645 | 188,571 | ||||||||||||||
| Total Bank of Arkansas | 256,839 | 343,901 | 334,012 | 314,647 | 224,567 | ||||||||||||||
| Colorado State Bank & Trust: | |||||||||||||||||||
| Demand | 497,318 | 430,675 | 403,491 | 412,532 | 445,755 | ||||||||||||||
| Interest-bearing: | |||||||||||||||||||
| Transaction | 616,697 | 655,206 | 601,741 | 604,665 | 631,874 | ||||||||||||||
| Savings | 31,927 | 31,398 | 31,285 | 31,524 | 29,811 | ||||||||||||||
| Time | 296,224 | 320,279 | 322,432 | 340,006 | 353,998 | ||||||||||||||
| Total interest-bearing | 944,848 | 1,006,883 | 955,458 | 976,195 | 1,015,683 | ||||||||||||||
| Total Colorado State Bank & Trust | 1,442,166 | 1,437,558 | 1,358,949 | 1,388,727 | 1,461,438 | ||||||||||||||
| Bank of Arizona: | |||||||||||||||||||
| Demand | 326,324 | 306,425 | 352,024 | 271,091 | 369,115 | ||||||||||||||
| Interest-bearing: | |||||||||||||||||||
| Transaction | 358,556 | 293,319 | 298,073 | 295,480 | 347,214 | ||||||||||||||
| Savings | 2,893 | 4,121 | 2,726 | 2,900 | 2,545 | ||||||||||||||
| Time | 29,498 | 26,750 | 28,165 | 28,086 | 36,680 | ||||||||||||||
| Total interest-bearing | 390,947 | 324,190 | 328,964 | 326,466 | 386,439 | ||||||||||||||
| Total Bank of Arizona | 717,271 | 630,615 | 680,988 | 597,557 | 755,554 | ||||||||||||||
| Bank of Kansas City: | |||||||||||||||||||
| Demand | 197,424 | 234,847 | 239,609 | 263,920 | 259,121 | ||||||||||||||
| Interest-bearing: | |||||||||||||||||||
| Transaction | 153,203 | 150,253 | 139,260 | 157,044 | 273,999 | ||||||||||||||
| Savings | 1,378 | 1,570 | 1,580 | 1,618 | 1,274 | ||||||||||||||
| Time | 35,524 | 36,630 | 42,262 | 45,082 | 45,210 | ||||||||||||||
| Total interest-bearing | 190,105 | 188,453 | 183,102 | 203,744 | 320,483 | ||||||||||||||
| Total Bank of Kansas City | 387,529 | 423,300 | 422,711 | 467,664 | 579,604 | ||||||||||||||
| TOTAL BOK FINANCIAL | $ | 21,088,158 | $ | 20,619,443 | $ | 21,059,729 | $ | 21,153,347 | $ | 21,140,859 | |||||||||
| NET INTEREST MARGIN TREND — UNAUDITED BOK FINANCIAL CORPORATION | ||||||||||||||
| Three Months Ended | ||||||||||||||
| Dec. 31, 2015 | Sept. 30, 2015 | June 30, 2015 | March 31, 2015 | Dec. 31, 2014 | ||||||||||
| TAX-EQUIVALENT ASSETS YIELDS | ||||||||||||||
| Interest-bearing cash and cash equivalents | 0.29 | % | 0.28 | % | 0.25 | % | 0.27 | % | 0.28 | % | ||||
| Trading securities | 2.86 | % | 2.70 | % | 1.85 | % | 2.55 | % | 2.48 | % | ||||
| Investment securities: | ||||||||||||||
| Taxable | 5.41 | % | 5.49 | % | 5.49 | % | 5.51 | % | 5.68 | % | ||||
| Tax-exempt | 1.53 | % | 1.54 | % | 1.56 | % | 1.56 | % | 1.56 | % | ||||
| Total investment securities | 3.03 | % | 3.04 | % | 3.05 | % | 3.04 | % | 3.11 | % | ||||
| Available for sale securities: | ||||||||||||||
| Taxable | 2.02 | % | 1.99 | % | 1.92 | % | 1.95 | % | 1.97 | % | ||||
| Tax-exempt | 4.22 | % | 4.15 | % | 4.21 | % | 4.40 | % | 4.23 | % | ||||
| Total available for sale securities | 2.04 | % | 2.01 | % | 1.94 | % | 1.98 | % | 1.99 | % | ||||
| Fair value option securities | 2.32 | % | 2.30 | % | 2.17 | % | 2.28 | % | 2.18 | % | ||||
| Restricted equity securities | 5.95 | % | 5.95 | % | 5.82 | % | 5.79 | % | 5.77 | % | ||||
| Residential mortgage loans held for sale | 3.85 | % | 3.79 | % | 3.37 | % | 3.41 | % | 3.87 | % | ||||
| Loans | 3.55 | % | 3.54 | % | 3.65 | % | 3.59 | % | 3.73 | % | ||||
| Allowance for loan losses | ||||||||||||||
| Loans, net of allowance | 3.60 | % | 3.59 | % | 3.70 | % | 3.64 | % | 3.78 | % | ||||
| Total tax-equivalent yield on earning assets | 2.86 | % | 2.83 | % | 2.84 | % | 2.80 | % | 2.86 | % | ||||
| COST OF INTEREST-BEARING LIABILITIES | ||||||||||||||
| Interest-bearing deposits: | ||||||||||||||
| Interest-bearing transaction | 0.09 | % | 0.08 | % | 0.09 | % | 0.10 | % | 0.09 | % | ||||
| Savings | 0.09 | % | 0.10 | % | 0.11 | % | 0.10 | % | 0.11 | % | ||||
| Time | 1.26 | % | 1.33 | % | 1.36 | % | 1.46 | % | 1.47 | % | ||||
| Total interest-bearing deposits | 0.32 | % | 0.34 | % | 0.35 | % | 0.37 | % | 0.38 | % | ||||
| Funds purchased | 0.11 | % | 0.08 | % | 0.08 | % | 0.09 | % | 0.08 | % | ||||
| Repurchase agreements | 0.04 | % | 0.03 | % | 0.03 | % | 0.04 | % | 0.04 | % | ||||
| Other borrowings | 0.38 | % | 0.30 | % | 0.31 | % | 0.32 | % | 0.32 | % | ||||
| Subordinated debt | 1.13 | % | 1.04 | % | 2.21 | % | 2.52 | % | 2.50 | % | ||||
| Total cost of interest-bearing liabilities | 0.34 | % | 0.32 | % | 0.35 | % | 0.38 | % | 0.39 | % | ||||
| Tax-equivalent net interest revenue spread | 2.52 | % | 2.51 | % | 2.49 | % | 2.42 | % | 2.47 | % | ||||
| Effect of noninterest-bearing funding sources and other | 0.12 | % | 0.10 | % | 0.12 | % | 0.13 | % | 0.14 | % | ||||
| Tax-equivalent net interest margin | 2.64 | % | 2.61 | % | 2.61 | % | 2.55 | % | 2.61 | % | ||||
| 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 BOK FINANCIAL CORPORATION (in thousands, except ratios) | |||||||||||||||||||
| Three Months Ended | |||||||||||||||||||
| Dec. 31, 2015 | Sept. 30, 2015 | June 30, 2015 | March 31, 2015 | Dec. 31, 2014 | |||||||||||||||
| Nonperforming assets: | |||||||||||||||||||
| Nonaccruing loans: | |||||||||||||||||||
| Commercial | $ | 76,424 | $ | 33,798 | $ | 24,233 | $ | 13,880 | $ | 13,527 | |||||||||
| Commercial real estate | 9,001 | 10,956 | 20,139 | 19,902 | 18,557 | ||||||||||||||
| Residential mortgage | 61,240 | 44,099 | 45,969 | 46,487 | 48,121 | ||||||||||||||
| Personal | 463 | 494 | 550 | 464 | 566 | ||||||||||||||
| Total nonaccruing loans | 147,128 | 89,347 | 90,891 | 80,733 | 80,771 | ||||||||||||||
| Accruing renegotiated loans guaranteed by U.S. government agencies | 74,049 | 81,598 | 82,368 | 80,287 | 73,985 | ||||||||||||||
| Real estate and other repossessed assets: | |||||||||||||||||||
| Guaranteed by U.S. government agencies1 | — | — | — | — | 49,898 | ||||||||||||||
| Other | 30,731 | 33,116 | 35,499 | 45,551 | 51,963 | ||||||||||||||
| Total real estate and other repossessed assets | 30,731 | 33,116 | 35,499 | 45,551 | 101,861 | ||||||||||||||
| Total nonperforming assets | $ | 251,908 | $ | 204,061 | $ | 208,758 | $ | 206,571 | $ | 256,617 | |||||||||
| Total nonperforming assets excluding those guaranteed by U.S. government agencies | $ | 155,959 | $ | 118,578 | $ | 122,673 | $ | 123,028 | $ | 129,022 | |||||||||
| Nonaccruing loans by loan portfolio sector: | |||||||||||||||||||
| Commercial: | |||||||||||||||||||
| Energy | $ | 61,189 | $ | 17,880 | $ | 6,841 | $ | 1,875 | $ | 1,416 | |||||||||
| Services | 10,290 | 10,692 | 10,944 | 4,744 | 5,201 | ||||||||||||||
| Healthcare | 1,072 | 1,218 | 1,278 | 1,558 | 1,380 | ||||||||||||||
| Wholesale/retail | 2,919 | 3,058 | 4,166 | 4,401 | 4,149 | ||||||||||||||
| Manufacturing | 331 | 352 | 379 | 417 | 450 | ||||||||||||||
| Other commercial and industrial | 623 | 598 | 625 | 885 | 931 | ||||||||||||||
| Total commercial | 76,424 | 33,798 | 24,233 | 13,880 | 13,527 | ||||||||||||||
| Commercial real estate: | |||||||||||||||||||
| Retail | 1,319 | 1,648 | 3,826 | 3,857 | 3,926 | ||||||||||||||
| Multifamily | 274 | 185 | 195 | — | — | ||||||||||||||
| Office | 651 | 684 | 2,360 | 2,410 | 3,420 | ||||||||||||||
| Industrial | 76 | 76 | 76 | 76 | — | ||||||||||||||
| Residential construction and land development | 4,409 | 4,748 | 9,367 | 9,598 | 5,299 | ||||||||||||||
| Other commercial real estate | 2,272 | 3,615 | 4,315 | 3,961 | 5,912 | ||||||||||||||
| Total commercial real estate | 9,001 | 10,956 | 20,139 | 19,902 | 18,557 | ||||||||||||||
| Residential mortgage: | |||||||||||||||||||
| Permanent mortgage | 28,984 | 30,660 | 32,187 | 33,365 | 34,845 | ||||||||||||||
| Permanent mortgage guaranteed by U.S. government agencies | 21,900 | 3,885 | 3,717 | 3,256 | 3,712 | ||||||||||||||
| Home equity | 10,356 | 9,554 | 10,065 | 9,866 | 9,564 | ||||||||||||||
| Total residential mortgage | 61,240 | 44,099 | 45,969 | 46,487 | 48,121 | ||||||||||||||
| Personal | 463 | 494 | 550 | 464 | 566 | ||||||||||||||
| Total nonaccruing loans | $ | 147,128 | $ | 89,347 | $ | 90,891 | $ | 80,733 | $ | 80,771 | |||||||||
| Performing loans 90 days past due2 | $ | 1,207 | $ | 101 | $ | 99 | $ | 523 | $ | 125 | |||||||||
| Gross charge-offs | $ | (4,851 | ) | $ | (5,274 | ) | $ | (2,877 | ) | $ | (2,169 | ) | $ | (7,224 | ) | ||||
| Recoveries | 1,870 | 3,521 | 2,206 | 10,523 | 5,036 | ||||||||||||||
| Net recoveries (charge-offs) | $ | (2,981 | ) | $ | (1,753 | ) | $ | (671 | ) | $ | 8,354 | $ | (2,188 | ) | |||||
| Provision for credit losses | $ | 22,500 | $ | 7,500 | $ | 4,000 | $ | — | $ | — | |||||||||
| Allowance for loan losses to period end loans | 1.41 | % | 1.33 | % | 1.33 | % | 1.35 | % | 1.33 | % | |||||||||
| Combined allowance for credit losses to period end loans | 1.43 | % | 1.35 | % | 1.34 | % | 1.35 | % | 1.34 | % | |||||||||
| Nonperforming assets to period end loans and repossessed assets | 1.58 | % | 1.33 | % | 1.38 | % | 1.40 | % | 1.79 | % | |||||||||
| Net charge-offs (annualized) to average loans | 0.08 | % | 0.05 | % | 0.02 | % | (0.23 | )% | 0.06 | % | |||||||||
| Allowance for loan losses to nonaccruing loans2 | 180.09 | % | 238.84 | % | 230.67 | % | 255.15 | % | 245.34 | % | |||||||||
| Combined allowance for credit losses to nonaccruing loans2 | 181.46 | % | 243.05 | % | 231.68 | % | 256.39 | % | 246.94 | % | |||||||||
| 1 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. | |||||||||||||||||||
| 2 Excludes residential mortgage loans guaranteed by agencies of the U.S. government. | |||||||||||||||||||