TULSA, Okla., April 26, 2017 (GLOBE NEWSWIRE) -- BOK Financial Corporation (Nasdaq:BOKF) reported net income of $88.4 million or $1.35 per diluted share for the first quarter of 2017. Net income was $50.0 million or $0.76 per diluted share for the fourth quarter of 2016 and $42.6 million or $0.64 per diluted share for the first quarter of 2016.
Steven G. Bradshaw, president and chief executive officer of BOK Financial, stated, “The year is off to a very strong start, and financial results in the first quarter of 2017 represent the second-highest net income total in our company’s history. Net interest margin and net interest revenue are up substantially due to the improved interest rate environment. Fee and commissions revenue growth remains steady, driven by the strength of our diverse wealth management business. And cost containment initiatives executed last year are driving much better results in terms of expense management, with total expenses down by over $20 million sequentially despite including the first full quarter of Mobank-related operating expenses.”
Bradshaw continued, “We completed the operational conversion of Mobank in February, and this acquisition is well ahead of our financial forecasts. With Mobank, total deposits at quarter–end are up 11 percent compared to March 31, 2016; and organic deposit growth during the same period was 6.5 percent. Our deposit franchise provides a significant funding advantage, and while we continue to believe that some demand deposits will migrate into interest–bearing accounts in the current rising rate environment, to date we have seen very limited pressure on deposit costs.”
First Quarter 2017 Highlights
- Net interest revenue totaled $201.2 million for the first quarter of 2017, up $7.0 million over the fourth quarter of 2016. Net interest margin was 2.81 percent for the first quarter of 2017, compared to 2.69 percent for the fourth quarter of 2016. Average earning assets increased $416 million during the first quarter of 2017, primarily due to a $412 million increase in average loan balances.
- Fees and commissions revenue totaled $164.4 million for the first quarter of 2017, a $2.3 million increase over the prior quarter. Fiduciary and asset management revenue grew by $4.1 million due to an increase in the value of assets managed and a decrease in waived fees. Mortgage banking revenue decreased $3.2 million and transaction card revenue decreased $2.4 million. Brokerage and trading revenue was unchanged, excluding a $5.0 million loss on trading asset positions from the previous quarter.
- The change in the fair value of mortgage servicing rights, net of economic hedges increased pre-tax net income in the first quarter of 2017 by $188 thousand. The change in the fair value of mortgage servicing rights, net of economic hedges decreased pre-tax net income in the fourth quarter of 2016 by $17.0 million.
- Operating expense was $244.7 million for the first quarter of 2017, a decrease of $20.8 million compared to the prior quarter. Expenses related to the Mobank acquisition, severance and a contribution to the BOKF Foundation added $11.7 million to the fourth quarter of 2016. Excluding these items, operating expense decreased $9.1 million, primarily due to lower mortgage banking and deposit insurance costs.
- Income tax expense was $38.1 million or 30.1 percent of net income before taxes for the first quarter of 2017, compared to $22.5 million or 31.1 percent in the fourth quarter of 2016. The first quarter included a $3.9 million benefit related to the implementation of a new accounting standard that includes the tax effect of vested equity compensation awards in income tax expense. Previously the tax effect of these awards was included in stockholders' equity.
- No provision for credit losses was recorded in the first quarter of 2017 or the fourth quarter of 2016 due to continued improvement in credit metric trends. The company had a net recovery of $747 thousand in the first quarter of 2017, compared to a net recovery of $1.2 million in the previous quarter.
- The combined allowance for credit losses totaled $258 million or 1.52 percent of outstanding loans at March 31, 2017 compared to $257 million or 1.52 percent of outstanding loans at December 31, 2016.
- Nonperforming assets that are not guaranteed by U.S. government agencies totaled $240 million or 1.43 percent of outstanding loans and repossessed assets (excluding those guaranteed by U.S. government agencies) at March 31, 2017 and $263 million or 1.56 percent of outstanding loans and repossessed assets (excluding those guaranteed by U.S. government agencies) at December 31, 2016. The decrease in nonperforming assets was primarily due to a $22 million decrease in nonaccruing energy loans.
- Average loans increased by $412 million over the previous quarter, primarily due to a full quarter's impact of the Mobank acquisition. Excluding this impact, average loan balances were largely unchanged compared to the fourth quarter of 2016. Period-end outstanding loan balances totaled $17.0 billion at March 31, 2017, largely unchanged compared to December 31, 2016.
- Average deposits increased $666 million over the previous quarter, including $390 million related to the impact of a full quarter of deposits from the Mobank acquisition. Excluding this impact, average interest-bearing transaction deposits grew by $402 million and time deposit balances were up $63 million, partially offset by a $201 million decrease in demand deposits. Period-end deposits were $22.6 billion at March 31, 2017, a $173 million decrease compared to December 31, 2016.
- The common equity Tier 1 capital ratio at March 31, 2017 was 11.60 percent. Other regulatory capital ratios were Tier 1 capital ratio, 11.60 percent, total capital ratio, 13.26 percent and leverage ratio, 8.89 percent. At December 31, 2016, the common equity Tier 1 capital ratio was 11.21 percent, the Tier 1 capital ratio was 11.21 percent, total capital ratio was 12.81 percent, and leverage ratio was 8.72 percent.
- The company paid a regular quarterly cash dividend of $29 million or $0.44 per common share during the first quarter of 2017. On April 25, 2017, the board of directors approved a quarterly cash dividend of $0.44 per common share payable on or about May 26, 2017 to shareholders of record as of May 12, 2017.
Net Interest Revenue
Net interest revenue was $201.2 million for the first quarter of 2017, up $7.0 million over the fourth quarter of 2016.
Net interest margin was 2.81 percent for the first quarter of 2017, an increase of 12 basis points over the fourth quarter of 2016, due largely to a full quarter effect of the Fed's 25 basis point December increase in short-term rates. The yield on average earning assets was 3.15 percent, an increase of 17 basis points. The loan portfolio yield increased 21 basis points to 3.88 percent primarily due to increases in the 30 day and 90 day LIBOR and improved energy loan yields. The yield on the available for sale securities portfolio increased 5 basis points to 2.05 percent. The yield on interest-bearing cash and cash equivalents increased 27 basis points. Funding costs were 0.52 percent, up 8 basis points. Growth in the cost of interest-bearing deposits was limited to 3 basis points by a lack of market pricing pressure.
Average earning assets increased $416 million during the first quarter of 2017. Average loan balances increased $412 million, primarily due to a full quarter's impact of the Mobank acquisition. The average balance of fair value option securities held as an economic hedge of our mortgage servicing rights increased $206 million. Average trading securities portfolio balances increased $103 million and interest-bearing cash and cash equivalents balances were up $55 million. These increases were offset by a $200 million decrease in available for sale securities portfolio balances and a $125 million decrease in the average balance of residential mortgage loans held for sale.
Average interest-bearing deposit balances increased $689 million over the fourth quarter of 2016, including $212 million related to a full quarter's impact of the Mobank acquisition. The average balance of borrowed funds decreased $378 million.
Fees and Commissions Revenue
Fees and commissions revenue totaled $164.4 million for the first quarter of 2017, an increase of $2.3 million over the fourth quarter of 2016. Brokerage and trading revenue for the fourth quarter of 2016 included a $5.0 million decrease in the value of trading assets caused by an unexpected 85 basis point increase in the 10-year U.S. Treasury interest rate and related rates.
Fiduciary and asset management revenue grew by $4.1 million over the fourth quarter of 2016 to $38.6 million. Revenue growth was largely due to a $2.6 billion increase in the value of fiduciary assets under management to a record high of $44.4 billion at March 31, 2017. Additionally, waived fees earned as administrator and investment advisor of the Cavanal Hill Funds decreased $964 thousand compared to the previous quarter of $445 thousand.
Mortgage banking revenue totaled $25.2 million for the first quarter of 2017, a $3.2 million decrease over the fourth quarter of 2016. Revenue from mortgage loan production decreased $3.4 million due to a $103 million decrease in mortgage production volume and a 26 basis point decrease in gain on sale margin compared to the prior quarter. Production volume decreased in response to higher primary mortgage interest rates and margin narrowed due to increased competition, largely in the Home Direct online delivery channel.
Transaction card revenue was down $2.4 million, primarily due to a seasonal decrease in transaction volumes.
Operating Expense
Total operating expense was $244.7 million for the first quarter of 2017, a decrease of $20.8 million compared to the fourth quarter of 2016. Expenses related to the completion of the Mobank acquisition were $2.0 million in the first quarter of 2017 and $4.7 million in the fourth quarter of 2016. In addition, operating expense in the fourth quarter of 2016 included $5.0 million of severance and other expenses related to staff reductions and a $2.0 million contribution to the BOKF Foundation. The discussion following excludes the impact of these items.
Personnel expense increased $1.9 million over the fourth quarter of 2016. Employee benefits costs were up $4.7 million primarily due to a seasonal increase in payroll tax expense and increased employee retirement plans costs, partially offset by lower employee medical costs. Regular compensation increased $2.5 million and included a full quarter impact of the Mobank acquisition. Incentive compensation expense decreased $5.3 million.
Non-personnel expense decreased $13.1 million compared to the fourth quarter of 2016. Mortgage banking expense decreased $4.3 million primarily due to the effect of slowing actual residential mortgage loan prepayments on the fair value of mortgage servicing rights. Deposit insurance expense was $2.3 million lower due to improvements in credit quality and other risk factors. Professional fees were down $2.3 million and other expenses decreased $2.3 million.
Loans, Deposits and Capital
Loans
Outstanding loans were $17.0 billion at March 31, 2017, largely unchanged compared to the previous quarter. Growth in commercial real estate was offset by a decrease in commercial loan balances.
Outstanding commercial loan balances decreased $64 million. Healthcare sector loans grew by $64 million. Energy loan balances increased $39 million. Unfunded energy loan commitments were largely unchanged at $2.7 billion. Manufacturing loans increased $28 million. This growth was offset by a $96 million decrease in service sector loan balances, a $71 million decrease in wholesale/retail sector loan balances and a $29 million decrease in other commercial and industrial loans.
Commercial real estate loans grew by $62 million. Loans secured by office buildings increased by $62 million and were broadly distributed across the Texas, New Mexico and Oklahoma markets. Multifamily residential loans increased $20 million. Growth in the Arizona and Kansas/Missouri markets was partially offset by a decrease in loans attributed to the Texas and Oklahoma markets. Retail sector loans decreased $17 million, primarily in the Texas and Arizona markets, partially offset by growth in the Oklahoma market.
Deposits
Period-end deposits totaled $22.6 billion at March 31, 2017, a $173 million decrease compared to December 31, 2016. Interest-bearing transaction account balances decreased $506 million, partially offset by a $271 million increase in demand deposit balances. In addition, both savings and time deposit balances grew over the prior quarter. Excluding the impact of allocating Mobank deposits among the lines of business, Wealth Management deposits decreased $154 million and Commercial Banking deposits decreased $101 million. Consumer Banking deposits grew by $122 million.
Capital
The company's common equity Tier 1 capital ratio was 11.60 percent at March 31, 2017. In addition, the company's Tier 1 capital ratio was 11.60 percent, total capital ratio was 13.26 percent and leverage ratio was 8.89 percent at March 31, 2017. At December 31, 2016, the company's common equity Tier 1 capital ratio was 11.21 percent, Tier 1 capital ratio was 11.21 percent, total capital ratio was 12.81 percent, and leverage ratio was 8.72 percent.
The company's tangible common equity ratio, a non-GAAP measure, was 8.88 percent at March 31, 2017 and 8.61 percent at December 31, 2016. 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 $334 million or 1.96 percent of outstanding loans and repossessed assets at March 31, 2017 compared to $357 million or 2.09 percent at December 31, 2016. Nonperforming assets that are not guaranteed by U.S. government agencies totaled $240 million or 1.43 percent of outstanding loans and repossessed assets (excluding those guaranteed by U.S. government agencies) at March 31, 2017 compared to $263 million or 1.56 percent at December 31, 2016.
Nonaccruing loans totaled $208 million or 1.22 percent of outstanding loans at March 31, 2017, down from $231 million or 1.36 percent of outstanding loans at December 31, 2016. The decrease in nonaccruing loans was primarily due to a $22 million decrease in nonaccruing energy loans. New nonaccruing loans identified in the first quarter totaled $23 million, offset by $35 million in payments received, $2.2 million in charge-offs and $3.3 million in foreclosures and repossessions. Additionally, $5.9 million was returned to accruing status based on improved credit risk and performance. At March 31, 2017, nonaccruing commercial loans totaled $157 million or 1.52 percent of outstanding commercial loans, nonaccruing commercial real estate loans totaled $4.5 million or 0.12 percent of outstanding commercial real estate loans and nonaccruing residential mortgage loans totaled $46 million or 2.37 percent of outstanding residential mortgage loans.
Potential problem loans, which are defined as performing loans based on known information cause management concern as to the borrowers' ability to continue to perform, totaled $413 million at March 31 compared to $399 million at December 31. The increase largely resulted from healthcare and manufacturing potential problem loans, partially offset by a decrease in potential problem energy loans.
Marc Maun, chief credit officer, stated, “We continued to see a stable credit environment in the first quarter, with no segments of our loan portfolio showing any material signs of stress. We recognized net recoveries during the quarter, saw nonaccrual loans decrease by over ten percent, and have a combined allowance for credit losses to period–end loans at or near the top of our peer group of mid-sized regional banks. After evaluating all credit factors, no provision for loan losses was booked for the first quarter. Looking forward, we are forecasting $15 million to $20 million provision for the full year.”
Maun continued, “Retail commercial real estate (CRE) has been in the spotlight recently due to several high–profile retailer store closings. I’m pleased to report that as of March 31, 2017 we had minimal criticized or classified retail CRE loans in our portfolio. Our portfolio is carefully constructed to limit CRE exposure to any one retailer, is geographically diverse, and represents best–in–class retail developers with multiple sources of repayment.”
The company had a net recovery of $747 thousand for the first quarter of 2017, compared to a net recovery of $1.2 million in the fourth quarter of 2016. Gross charge-offs totaled $2.2 million for the first quarter, compared to $1.7 million for the previous quarter. Recoveries totaled $2.9 million for the first quarter of 2017 and $2.8 million for the fourth quarter of 2016.
As noted above, the company determined that no provision for credit losses was necessary during the first quarter of 2017 based on the continued improvement in credit metrics. No provision for credit losses was recorded in the previous quarter. The combined allowance for credit losses totaled $258 million or 1.52 percent of outstanding loans and 131 percent of nonaccruing loans at March 31, 2017. The allowance for loan losses was $249 million and the accrual for off-balance sheet credit losses was $9.4 million.
Securities and Derivatives
The fair value of the available for sale securities portfolio totaled $8.4 billion at March 31, 2017, a $240 million decrease compared to December 31, 2016. At March 31, 2017, the available for sale portfolio consisted primarily of $5.4 billion of residential mortgage-backed securities fully backed by U.S. government agencies and $2.9 billion of commercial mortgage-backed securities fully backed by U.S. government agencies.
At March 31, 2017, the available for sale securities portfolio had a net unrealized loss of $5.5 million compared to a net unrealized loss of $15 million at December 31, 2016. The decrease in net unrealized loss was primarily due to changes in interest rates during the quarter. Net unrealized losses on residential mortgage-backed securities issued by U.S. government agencies at March 31, 2017 decreased $7.7 million during the first quarter to $7.3 million. Commercial mortgage-backed securities had a net unrealized loss of $18 million at March 31, 2017, unchanged compared to December 31, 2016.
The company also maintains a portfolio of financial instruments primarily consisting of residential mortgage-backed securities issued by U.S. government agencies and interest rate derivative contracts as an economic hedge of the changes in the fair value of our mortgage servicing rights.
The net economic benefit of the changes in fair value of mortgage servicing rights and related economic hedges was $1.5 million, including a $1.9 million increase in the fair value of the mortgage servicing rights, a $1.7 million decrease in the fair value of securities and derivative contracts held as an economic hedge and $1.3 million of related net interest revenue. The improvement over the prior quarter was due primarily to materially higher long-term interest rates and a relatively stable rate environment during the first quarter.
The fair value of mortgage servicing rights increased by $39.8 million during the fourth quarter of 2016 primarily due to an increase in residential mortgage rates during the quarter. The fair value of securities and interest rate derivative contracts held as an economic hedge of mortgage servicing rights decreased by $56.8 million. The significant increase in long-term interest rates in the fourth quarter resulted in a loss on this hedge, partially offset by an increase in the fair value of the mortgage servicing rights.
Conference Call and Webcast
The company will hold a conference call at 9 a.m. Central time on Wednesday, April 26, 2017 to discuss the financial results with investors. The live audio webcast and presentation slides will be available on the company’s website at www.bokf.com. The conference call can also be accessed by dialing 1-201-689-8471. A conference call and webcast replay will also be available shortly after conclusion of the live call at www.bokf.com or by dialing 1-844-512-2921 and referencing conference ID # 13659658.
About BOK Financial Corporation
BOK Financial Corporation is a $33 billion regional financial services company based in Tulsa, Oklahoma. The company's stock is publicly traded on NASDAQ under the Global Select market listings (symbol: BOKF). BOK Financial's holdings include BOKF, NA, BOK Financial Securities, Inc. and The Milestone Group, Inc. BOKF, NA operates TransFund, Cavanal Hill Investment Management, BOK Financial Asset Management, Inc. and seven banking divisions: Bank of Albuquerque, Bank of Arizona, Bank of Arkansas, Mobank, Bank of Oklahoma, Bank of Texas and Colorado State Bank and Trust. Through its subsidiaries, the company provides commercial and consumer banking, investment and trust services, mortgage origination and servicing, and an electronic funds transfer network. For more information, visit www.bokf.com.
The company will continue to evaluate critical assumptions and estimates, such as the appropriateness of the allowance for credit losses and asset impairment as of March 31, 2017 through the date its financial statements are filed with the Securities and Exchange Commission and will adjust amounts reported if necessary.
This news release contains forward-looking statements that are based on management's beliefs, assumptions, current expectations, estimates and projections about BOK Financial, the financial services industry and the economy generally. Words such as “anticipates,” “believes,” “estimates,” “expects,” “forecasts,” “plans,” “projects,” “will,” “intends,” variations of such words and similar expressions are intended to identify such forward-looking statements. Management judgments relating to and discussion of the provision and allowance for credit losses, allowance for uncertain tax positions, accruals for loss contingencies and valuation of mortgage servicing rights involve judgments as to expected events and are inherently forward-looking statements. Assessments that BOK Financial's acquisitions and other growth endeavors will be profitable are necessary statements of belief as to the outcome of future events based in part on information provided by others which BOK Financial has not independently verified. These statements are not guarantees of future performance and involve certain risks, uncertainties, and assumptions which are difficult to predict with regard to timing, extent, likelihood and degree of occurrence. Therefore, actual results and outcomes may materially differ from what is expected, implied or forecasted in such forward-looking statements. Internal and external factors that might cause such a difference include, but are not limited to changes in commodity prices, interest rates and interest rate relationships, demand for products and services, the degree of competition by traditional and nontraditional competitors, changes in banking regulations, tax laws, prices, levies and assessments, the impact of technological advances, and trends in customer behavior as well as their ability to repay loans. BOK Financial and its affiliates undertake no obligation to update, amend or clarify forward-looking statements, whether as a result of new information, future events, or otherwise.
BALANCE SHEETS -- UNAUDITED BOK FINANCIAL CORPORATION (In thousands) | |||||||||||
March 31, 2017 | Dec. 31, 2016 | March 31, 2016 | |||||||||
ASSETS | |||||||||||
Cash and due from banks | $ | 546,575 | $ | 620,846 | $ | 481,510 | |||||
Interest-bearing cash and cash equivalents | 2,220,640 | 1,916,651 | 1,831,162 | ||||||||
Trading securities | 677,156 | 337,628 | 279,539 | ||||||||
Investment securities | 519,402 | 546,145 | 576,047 | ||||||||
Available for sale securities | 8,437,291 | 8,676,829 | 8,886,036 | ||||||||
Fair value option securities | 441,714 | 77,046 | 418,887 | ||||||||
Restricted equity securities | 283,936 | 307,240 | 314,590 | ||||||||
Residential mortgage loans held for sale | 248,707 | 301,897 | 332,040 | ||||||||
Loans: | |||||||||||
Commercial | 10,327,110 | 10,390,824 | 10,288,425 | ||||||||
Commercial real estate | 3,871,063 | 3,809,046 | 3,370,507 | ||||||||
Residential mortgage | 1,946,274 | 1,949,832 | 1,869,309 | ||||||||
Personal | 847,459 | 839,958 | 494,325 | ||||||||
Total loans | 16,991,906 | 16,989,660 | 16,022,566 | ||||||||
Allowance for loan losses | (248,710 | ) | (246,159 | ) | (233,156 | ) | |||||
Loans, net of allowance | 16,743,196 | 16,743,501 | 15,789,410 | ||||||||
Premises and equipment, net | 325,546 | 325,849 | 311,161 | ||||||||
Receivables | 394,394 | 772,952 | 167,209 | ||||||||
Goodwill | 445,738 | 448,899 | 383,789 | ||||||||
Intangible assets, net | 42,556 | 46,931 | 44,944 | ||||||||
Mortgage servicing rights | 249,403 | 247,073 | 196,055 | ||||||||
Real estate and other repossessed assets, net | 42,726 | 44,287 | 29,896 | ||||||||
Derivative contracts, net | 304,727 | 689,872 | 790,146 | ||||||||
Cash surrender value of bank-owned life insurance | 310,537 | 308,430 | 305,510 | ||||||||
Receivable on unsettled securities sales | 9,921 | 7,188 | 5,640 | ||||||||
Other assets | 384,767 | 353,017 | 270,374 | ||||||||
TOTAL ASSETS | $ | 32,628,932 | $ | 32,772,281 | $ | 31,413,945 | |||||
LIABILITIES AND EQUITY | |||||||||||
Deposits: | |||||||||||
Demand | $ | 9,506,573 | $ | 9,235,720 | $ | 7,950,675 | |||||
Interest-bearing transaction | 10,359,214 | 10,865,105 | 9,709,766 | ||||||||
Savings | 465,724 | 425,470 | 416,505 | ||||||||
Time | 2,243,848 | 2,221,800 | 2,341,374 | ||||||||
Total deposits | 22,575,359 | 22,748,095 | 20,418,320 | ||||||||
Funds purchased | 47,629 | 57,929 | 62,755 | ||||||||
Repurchase agreements | 508,352 | 668,661 | 630,101 | ||||||||
Other borrowings | 5,238,947 | 4,846,072 | 5,633,862 | ||||||||
Subordinated debentures | 144,649 | 144,640 | 226,385 | ||||||||
Accrued interest, taxes and expense | 140,235 | 146,704 | 148,711 | ||||||||
Due on unsettled securities purchases | 137,069 | 6,508 | 19,508 | ||||||||
Derivative contracts, net | 276,422 | 664,531 | 705,578 | ||||||||
Other liabilities | 189,376 | 182,784 | 212,460 | ||||||||
TOTAL LIABILITIES | 29,258,038 | 29,465,924 | 28,057,680 | ||||||||
Shareholders' equity: | |||||||||||
Capital, surplus and retained earnings | 3,346,965 | 3,285,821 | 3,228,446 | ||||||||
Accumulated other comprehensive income (loss) | (5,221 | ) | (10,967 | ) | 93,109 | ||||||
TOTAL SHAREHOLDERS' EQUITY | 3,341,744 | 3,274,854 | 3,321,555 | ||||||||
Non-controlling interests | 29,150 | 31,503 | 34,710 | ||||||||
TOTAL EQUITY | 3,370,894 | 3,306,357 | 3,356,265 | ||||||||
TOTAL LIABILITIES AND EQUITY | $ | 32,628,932 | $ | 32,772,281 | $ | 31,413,945 |
AVERAGE BALANCE SHEETS -- UNAUDITED BOK FINANCIAL CORPORATION (in thousands) | |||||||||||||||||||
Three Months Ended | |||||||||||||||||||
March 31, 2017 | Dec. 31, 2016 | Sept. 30, 2016 | June 30, 2016 | March 31, 2016 | |||||||||||||||
ASSETS | |||||||||||||||||||
Interest-bearing cash and cash equivalents | $ | 2,087,964 | $ | 2,032,785 | $ | 2,047,991 | $ | 2,022,028 | $ | 2,052,840 | |||||||||
Trading securities | 579,549 | 476,498 | 366,545 | 237,808 | 188,100 | ||||||||||||||
Investment securities | 530,936 | 542,869 | 552,592 | 562,391 | 587,465 | ||||||||||||||
Available for sale securities | 8,567,049 | 8,766,555 | 8,862,590 | 8,890,112 | 8,951,435 | ||||||||||||||
Fair value option securities | 416,524 | 210,733 | 266,998 | 368,434 | 450,478 | ||||||||||||||
Restricted equity securities | 312,498 | 334,114 | 335,812 | 319,136 | 294,529 | ||||||||||||||
Residential mortgage loans held for sale | 220,325 | 345,066 | 445,930 | 401,114 | 289,743 | ||||||||||||||
Loans: | |||||||||||||||||||
Commercial | 10,414,579 | 10,228,095 | 10,109,692 | 10,265,782 | 10,268,793 | ||||||||||||||
Commercial real estate | 3,903,850 | 3,749,393 | 3,789,673 | 3,550,611 | 3,364,076 | ||||||||||||||
Residential mortgage | 1,962,759 | 1,919,296 | 1,870,855 | 1,864,458 | 1,865,742 | ||||||||||||||
Personal | 854,637 | 826,804 | 677,530 | 582,281 | 493,382 | ||||||||||||||
Total loans | 17,135,825 | 16,723,588 | 16,447,750 | 16,263,132 | 15,991,993 | ||||||||||||||
Allowance for loan losses | (249,379 | ) | (246,977 | ) | (247,901 | ) | (245,448 | ) | (234,116 | ) | |||||||||
Total loans, net | 16,886,446 | 16,476,611 | 16,199,849 | 16,017,684 | 15,757,877 | ||||||||||||||
Total earning assets | 29,601,291 | 29,185,231 | 29,078,307 | 28,818,707 | 28,572,467 | ||||||||||||||
Cash and due from banks | 547,104 | 578,694 | 511,534 | 507,085 | 505,522 | ||||||||||||||
Derivative contracts, net | 401,886 | 681,455 | 766,671 | 823,584 | 632,102 | ||||||||||||||
Cash surrender value of bank-owned life insurance | 309,223 | 309,532 | 308,670 | 306,318 | 304,141 | ||||||||||||||
Receivable on unsettled securities sales | 62,641 | 33,813 | 259,906 | 49,568 | 115,101 | ||||||||||||||
Other assets | 2,032,844 | 2,172,351 | 1,721,385 | 1,480,780 | 1,379,138 | ||||||||||||||
TOTAL ASSETS | $ | 32,954,989 | $ | 32,961,076 | $ | 32,646,473 | $ | 31,986,042 | $ | 31,508,471 | |||||||||
LIABILITIES AND EQUITY | |||||||||||||||||||
Deposits: | |||||||||||||||||||
Demand | $ | 9,101,763 | $ | 9,124,595 | $ | 8,497,037 | $ | 8,162,134 | $ | 8,105,756 | |||||||||
Interest-bearing transaction | 10,567,475 | 9,980,132 | 9,650,618 | 9,590,855 | 9,756,843 | ||||||||||||||
Savings | 441,254 | 421,654 | 420,009 | 417,122 | 397,479 | ||||||||||||||
Time | 2,258,930 | 2,177,035 | 2,197,350 | 2,297,621 | 2,366,543 | ||||||||||||||
Total deposits | 22,369,422 | 21,703,416 | 20,765,014 | 20,467,732 | 20,626,621 | ||||||||||||||
Funds purchased | 55,508 | 62,004 | 68,280 | 70,682 | 112,211 | ||||||||||||||
Repurchase agreements | 523,561 | 560,891 | 522,822 | 611,264 | 662,640 | ||||||||||||||
Other borrowings | 5,737,955 | 6,072,150 | 6,342,369 | 6,076,028 | 5,583,917 | ||||||||||||||
Subordinated debentures | 144,644 | 144,635 | 255,890 | 232,795 | 226,368 | ||||||||||||||
Derivative contracts, net | 405,444 | 682,808 | 747,187 | 791,313 | 544,722 | ||||||||||||||
Due on unsettled securities purchases | 91,529 | 77,575 | 200,574 | 93,812 | 158,050 | ||||||||||||||
Other liabilities | 299,534 | 321,404 | 352,671 | 298,170 | 268,705 | ||||||||||||||
TOTAL LIABILITIES | 29,627,597 | 29,624,883 | 29,254,807 | 28,641,796 | 28,183,234 | ||||||||||||||
Total equity | 3,327,392 | 3,336,193 | 3,391,666 | 3,344,246 | 3,325,237 | ||||||||||||||
TOTAL LIABILITIES AND EQUITY | $ | 32,954,989 | $ | 32,961,076 | $ | 32,646,473 | $ | 31,986,042 | $ | 31,508,471 |
STATEMENTS OF EARNINGS -- UNAUDITED BOK FINANCIAL CORPORATION (in thousands, except per share data) | |||||||
Three Months Ended | |||||||
March 31, | |||||||
2017 | 2016 | ||||||
Interest revenue | $ | 226,390 | $ | 201,796 | |||
Interest expense | 25,208 | 19,224 | |||||
Net interest revenue | 201,182 | 182,572 | |||||
Provision for credit losses | — | 35,000 | |||||
Net interest revenue after provision for credit losses | 201,182 | 147,572 | |||||
Other operating revenue: | |||||||
Brokerage and trading revenue | 33,623 | 32,341 | |||||
Transaction card revenue | 32,127 | 32,354 | |||||
Fiduciary and asset management revenue | 38,631 | 32,056 | |||||
Deposit service charges and fees | 23,030 | 22,542 | |||||
Mortgage banking revenue | 25,191 | 32,100 | |||||
Other revenue | 11,752 | 11,904 | |||||
Total fees and commissions | 164,354 | 163,297 | |||||
Other gains, net | 3,627 | 1,560 | |||||
Gain (loss) on derivatives, net | (450 | ) | 7,138 | ||||
Gain (loss) on fair value option securities, net | (1,140 | ) | 9,443 | ||||
Change in fair value of mortgage servicing rights | 1,856 | (27,988 | ) | ||||
Gain on available for sale securities, net | 2,049 | 3,964 | |||||
Total other operating revenue | 170,296 | 157,414 | |||||
Other operating expense: | |||||||
Personnel | 136,425 | 133,562 | |||||
Business promotion | 6,717 | 5,696 | |||||
Professional fees and services | 12,379 | 11,759 | |||||
Net occupancy and equipment | 21,624 | 18,766 | |||||
Insurance | 6,404 | 7,265 | |||||
Data processing and communications | 33,940 | 32,017 | |||||
Printing, postage and supplies | 3,851 | 3,907 | |||||
Net losses and operating expenses of repossessed assets | 1,009 | 1,070 | |||||
Amortization of intangible assets | 1,802 | 1,159 | |||||
Mortgage banking costs | 13,003 | 12,330 | |||||
Other expense | 7,557 | 15,039 | |||||
Total other operating expense | 244,711 | 242,570 | |||||
Net income before taxes | 126,767 | 62,416 | |||||
Federal and state income taxes | 38,103 | 21,428 | |||||
Net income | 88,664 | 40,988 | |||||
Net income (loss) attributable to non-controlling interests | 308 | (1,576 | ) | ||||
Net income attributable to BOK Financial Corporation shareholders | $ | 88,356 | $ | 42,564 | |||
Average shares outstanding: | |||||||
Basic | 64,639,437 | 65,296,541 | |||||
Diluted | 64,707,210 | 65,331,428 | |||||
Net income per share: | |||||||
Basic | $ | 1.35 | $ | 0.64 | |||
Diluted | $ | 1.35 | $ | 0.64 |
FINANCIAL HIGHLIGHTS -- UNAUDITED BOK FINANCIAL CORPORATION (in thousands, except ratio and share data) | |||||||||||||||||||
Three Months Ended | |||||||||||||||||||
March 31, 2017 | Dec. 31, 2016 | Sept. 30, 2016 | June 30, 2016 | March 31, 2016 | |||||||||||||||
Capital: | |||||||||||||||||||
Period-end shareholders' equity | $ | 3,341,744 | $ | 3,274,854 | $ | 3,398,311 | $ | 3,368,833 | $ | 3,321,555 | |||||||||
Risk weighted assets | $ | 24,882,046 | $ | 25,274,848 | $ | 24,358,385 | $ | 24,191,016 | $ | 23,707,824 | |||||||||
Risk-based capital ratios: | |||||||||||||||||||
Common equity tier 1 | 11.60 | % | 11.21 | % | 11.99 | % | 11.86 | % | 12.00 | % | |||||||||
Tier 1 | 11.60 | % | 11.21 | % | 11.99 | % | 11.86 | % | 12.00 | % | |||||||||
Total capital | 13.26 | % | 12.81 | % | 13.65 | % | 13.51 | % | 13.21 | % | |||||||||
Leverage ratio | 8.89 | % | 8.72 | % | 9.06 | % | 9.06 | % | 9.12 | % | |||||||||
Tangible common equity ratio1 | 8.88 | % | 8.61 | % | 9.19 | % | 9.33 | % | 9.34 | % | |||||||||
Common stock: | |||||||||||||||||||
Book value per share | $ | 51.09 | $ | 50.12 | $ | 51.56 | $ | 51.15 | $ | 50.21 | |||||||||
Tangible book value per share | 43.63 | 42.53 | 45.12 | 44.68 | 43.73 | ||||||||||||||
Market value per share: | |||||||||||||||||||
High | $ | 85.25 | $ | 85.00 | $ | 70.05 | $ | 65.14 | $ | 60.16 | |||||||||
Low | $ | 73.44 | $ | 67.11 | $ | 56.36 | $ | 51.00 | $ | 43.74 | |||||||||
Cash dividends paid | $ | 28,646 | $ | 28,860 | $ | 28,181 | $ | 28,241 | $ | 28,294 | |||||||||
Dividend payout ratio | 32.42 | % | 57.69 | % | 37.94 | % | 42.92 | % | 66.47 | % | |||||||||
Shares outstanding, net | 65,408,019 | 65,337,432 | 65,910,454 | 65,866,317 | 66,155,103 | ||||||||||||||
Stock buy-back program: | |||||||||||||||||||
Shares repurchased | — | 700,000 | — | 305,169 | — | ||||||||||||||
Amount | $ | — | $ | 49,021 | $ | — | $ | 17,771 | $ | — | |||||||||
Average price per share | $ | — | $ | 70.03 | $ | — | $ | 58.23 | $ | — | |||||||||
Performance ratios (quarter annualized): | |||||||||||||||||||
Return on average assets | 1.09 | % | 0.60 | % | 0.91 | % | 0.83 | % | 0.54 | % | |||||||||
Return on average equity | 10.86 | % | 6.03 | % | 8.80 | % | 8.00 | % | 5.21 | % | |||||||||
Net interest margin | 2.81 | % | 2.69 | % | 2.64 | % | 2.63 | % | 2.65 | % | |||||||||
Efficiency ratio | 65.77 | % | 72.93 | % | 68.88 | % | 68.16 | % | 68.84 | % | |||||||||
Reconciliation of non-GAAP measures: | |||||||||||||||||||
1 Tangible common equity ratio: | |||||||||||||||||||
Total shareholders' equity | $ | 3,341,744 | $ | 3,274,854 | $ | 3,398,311 | $ | 3,368,833 | $ | 3,321,555 | |||||||||
Less: Goodwill and intangible assets, net | 488,294 | 495,830 | 424,716 | 426,111 | 428,733 | ||||||||||||||
Tangible common equity | $ | 2,853,450 | $ | 2,779,024 | $ | 2,973,595 | $ | 2,942,722 | $ | 2,892,822 | |||||||||
Total assets | $ | 32,628,932 | $ | 32,772,281 | $ | 32,779,231 | $ | 31,970,450 | $ | 31,413,945 | |||||||||
Less: Goodwill and intangible assets, net | 488,294 | 495,830 | 424,716 | 426,111 | 428,733 | ||||||||||||||
Tangible assets | $ | 32,140,638 | $ | 32,276,451 | $ | 32,354,515 | $ | 31,544,339 | $ | 30,985,212 | |||||||||
Tangible common equity ratio | 8.88 | % | 8.61 | % | 9.19 | % | 9.33 | % | 9.34 | % | |||||||||
Other data: | |||||||||||||||||||
Fiduciary assets | $ | 44,371,510 | $ | 41,781,564 | $ | 41,222,162 | $ | 39,924,734 | $ | 39,113,305 | |||||||||
Tax equivalent interest | $ | 4,428 | $ | 4,389 | $ | 4,455 | $ | 4,372 | $ | 4,385 | |||||||||
Net unrealized gain (loss) on available for sale securities | $ | (5,537 | ) | $ | (14,899 | ) | $ | 159,533 | $ | 195,385 | $ | 155,236 | |||||||
Mortgage banking: | |||||||||||||||||||
Mortgage production revenue | $ | 8,543 | $ | 11,937 | $ | 21,958 | $ | 19,086 | $ | 16,647 | |||||||||
Mortgage loans funded for sale | $ | 711,019 | $ | 1,189,975 | $ | 1,864,583 | $ | 1,818,844 | $ | 1,244,015 | |||||||||
Add: current period-end outstanding commitments | 381,732 | 318,359 | 630,804 | 965,631 | 902,986 | ||||||||||||||
Less: prior period end outstanding commitments | 318,359 | 630,804 | 965,631 | 902,986 | 601,147 | ||||||||||||||
Total mortgage production volume | $ | 774,392 | $ | 877,530 | $ | 1,529,756 | $ | 1,881,489 | $ | 1,545,854 | |||||||||
Mortgage loan refinances to mortgage loans funded for sale | 44 | % | 63 | % | 51 | % | 44 | % | 49 | % | |||||||||
Gain on sale margin | 1.10 | % | 1.36 | % | 1.44 | % | 1.01 | % | 1.08 | % | |||||||||
Mortgage servicing revenue | $ | 16,648 | $ | 16,477 | $ | 16,558 | $ | 15,798 | $ | 15,453 | |||||||||
Average outstanding principal balance of mortgage loans service for others | 22,006,295 | 21,924,552 | 21,514,962 | 20,736,525 | 19,986,444 | ||||||||||||||
Average mortgage servicing revenue rates | 0.31 | % | 0.30 | % | 0.31 | % | 0.31 | % | 0.31 | % | |||||||||
Gain (loss) on mortgage servicing rights, net of economic hedge: | |||||||||||||||||||
Gain (loss) on mortgage hedge derivative contracts, net | $ | (528 | ) | $ | (35,868 | ) | $ | 2,268 | $ | 10,766 | $ | 7,138 | |||||||
Gain (loss) on fair value option securities, net | (1,140 | ) | (20,922 | ) | (3,355 | ) | 4,279 | 9,443 | |||||||||||
Gain (loss) on economic hedge of mortgage servicing rights | (1,668 | ) | (56,790 | ) | (1,087 | ) | 15,045 | 16,581 | |||||||||||
Gain (loss) on changes in fair value of mortgage servicing rights | 1,856 | 39,751 | 2,327 | (16,283 | ) | (27,988 | ) | ||||||||||||
Gain (loss) on changes in fair value of mortgage servicing rights, net of economic hedges, included in other operating revenue | 188 | (17,039 | ) | 1,240 | (1,238 | ) | (11,407 | ) | |||||||||||
Net interest revenue on fair value option securities2 | 1,271 | 114 | 861 | 1,348 | 2,033 | ||||||||||||||
Total economic benefit (cost) of changes in the fair value of mortgage servicing rights, net of economic hedges | $ | 1,459 | $ | (16,925 | ) | $ | 2,101 | $ | 110 | $ | (9,374 | ) |
2 Actual interest earned on fair value option securities less internal transfer-priced cost of funds.
QUARTERLY EARNINGS TREND -- UNAUDITED BOK FINANCIAL CORPORATION (in thousands, except ratio and per share data) | |||||||||||||||||||
Three Months Ended | |||||||||||||||||||
March 31, 2017 | Dec. 31, 2016 | Sept. 30, 2016 | June 30, 2016 | March 31, 2016 | |||||||||||||||
Interest revenue | $ | 226,390 | $ | 215,737 | $ | 209,317 | $ | 202,267 | $ | 201,796 | |||||||||
Interest expense | 25,208 | 21,539 | 21,471 | 19,655 | 19,224 | ||||||||||||||
Net interest revenue | 201,182 | 194,198 | 187,846 | 182,612 | 182,572 | ||||||||||||||
Provision for credit losses | — | — | 10,000 | 20,000 | 35,000 | ||||||||||||||
Net interest revenue after provision for credit losses | 201,182 | 194,198 | 177,846 | 162,612 | 147,572 | ||||||||||||||
Other operating revenue: | |||||||||||||||||||
Brokerage and trading revenue | 33,623 | 28,500 | 38,006 | 39,530 | 32,341 | ||||||||||||||
Transaction card revenue | 32,127 | 34,521 | 33,933 | 34,950 | 32,354 | ||||||||||||||
Fiduciary and asset management revenue | 38,631 | 34,535 | 34,073 | 34,813 | 32,056 | ||||||||||||||
Deposit service charges and fees | 23,030 | 23,365 | 23,668 | 22,618 | 22,542 | ||||||||||||||
Mortgage banking revenue | 25,191 | 28,414 | 38,516 | 34,884 | 32,100 | ||||||||||||||
Other revenue | 11,752 | 12,693 | 13,080 | 13,352 | 11,904 | ||||||||||||||
Total fees and commissions | 164,354 | 162,028 | 181,276 | 180,147 | 163,297 | ||||||||||||||
Other gains (losses), net | 3,627 | (1,279 | ) | 2,442 | 1,307 | 1,560 | |||||||||||||
Gain (loss) on derivatives, net | (450 | ) | (35,815 | ) | 2,226 | 10,766 | 7,138 | ||||||||||||
Gain (loss) on fair value option securities, net | (1,140 | ) | (20,922 | ) | (3,355 | ) | 4,279 | 9,443 | |||||||||||
Change in fair value of mortgage servicing rights | 1,856 | 39,751 | 2,327 | (16,283 | ) | (27,988 | ) | ||||||||||||
Gain (loss) on available for sale securities, net | 2,049 | (9 | ) | 2,394 | 5,326 | 3,964 | |||||||||||||
Total other operating revenue | 170,296 | 143,754 | 187,310 | 185,542 | 157,414 | ||||||||||||||
Other operating expense: | |||||||||||||||||||
Personnel | 136,425 | 141,132 | 139,212 | 139,213 | 133,562 | ||||||||||||||
Business promotion | 6,717 | 7,344 | 6,839 | 6,703 | 5,696 | ||||||||||||||
Charitable contributions to BOKF Foundation | — | 2,000 | — | — | — | ||||||||||||||
Professional fees and services | 12,379 | 16,828 | 14,038 | 14,158 | 11,759 | ||||||||||||||
Net occupancy and equipment | 21,624 | 21,470 | 20,111 | 19,677 | 18,766 | ||||||||||||||
Insurance | 6,404 | 8,705 | 9,390 | 7,129 | 7,265 | ||||||||||||||
Data processing and communications | 33,940 | 33,691 | 33,331 | 32,802 | 32,017 | ||||||||||||||
Printing, postage and supplies | 3,851 | 3,998 | 3,790 | 3,889 | 3,907 | ||||||||||||||
Net losses (gains) and operating expenses of repossessed assets | 1,009 | 1,627 | (926 | ) | 1,588 | 1,070 | |||||||||||||
Amortization of intangible assets | 1,802 | 1,558 | 1,521 | 2,624 | 1,159 | ||||||||||||||
Mortgage banking costs | 13,003 | 17,348 | 15,963 | 15,746 | 12,330 | ||||||||||||||
Other expense | 7,557 | 9,846 | 14,819 | 7,856 | 15,039 | ||||||||||||||
Total other operating expense | 244,711 | 265,547 | 258,088 | 251,385 | 242,570 | ||||||||||||||
Net income before taxes | 126,767 | 72,405 | 107,068 | 96,769 | 62,416 | ||||||||||||||
Federal and state income taxes | 38,103 | 22,496 | 31,956 | 30,497 | 21,428 | ||||||||||||||
Net income | 88,664 | 49,909 | 75,112 | 66,272 | 40,988 | ||||||||||||||
Net income (loss) attributable to non-controlling interests | 308 | (117 | ) | 835 | 471 | (1,576 | ) | ||||||||||||
Net income attributable to BOK Financial Corporation shareholders | $ | 88,356 | $ | 50,026 | $ | 74,277 | $ | 65,801 | $ | 42,564 | |||||||||
Average shares outstanding: | |||||||||||||||||||
Basic | 64,639,437 | 64,719,018 | 65,085,392 | 65,245,887 | 65,296,541 | ||||||||||||||
Diluted | 64,707,210 | 64,787,728 | 65,157,841 | 65,302,926 | 65,331,428 | ||||||||||||||
Net income per share: | |||||||||||||||||||
Basic | $ | 1.35 | $ | 0.76 | $ | 1.13 | $ | 1.00 | $ | 0.64 | |||||||||
Diluted | $ | 1.35 | $ | 0.76 | $ | 1.13 | $ | 1.00 | $ | 0.64 |
LOANS TREND -- UNAUDITED BOK FINANCIAL CORPORATION (In thousands) | ||||||||||||||||||||
March 31, 2017 | Dec. 31, 2016 | Sept. 30, 2016 | June 30, 2016 | March 31, 2016 | ||||||||||||||||
Commercial: | ||||||||||||||||||||
Energy | $ | 2,537,112 | $ | 2,497,868 | $ | 2,520,804 | $ | 2,818,656 | $ | 3,029,420 | ||||||||||
Services | 3,013,375 | 3,108,990 | 2,936,599 | 2,830,864 | 2,728,891 | |||||||||||||||
Healthcare | 2,265,604 | 2,201,916 | 2,085,046 | 2,051,146 | 1,995,425 | |||||||||||||||
Wholesale/retail | 1,506,243 | 1,576,818 | 1,602,030 | 1,532,957 | 1,451,846 | |||||||||||||||
Manufacturing | 543,430 | 514,975 | 499,486 | 595,403 | 600,645 | |||||||||||||||
Other commercial and industrial | 461,346 | 490,257 | 476,198 | 527,411 | 482,198 | |||||||||||||||
Total commercial | 10,327,110 | 10,390,824 | 10,120,163 | 10,356,437 | 10,288,425 | |||||||||||||||
Commercial real estate: | ||||||||||||||||||||
Retail | 745,046 | 761,888 | 801,377 | 795,419 | 810,522 | |||||||||||||||
Multifamily | 922,991 | 903,272 | 873,773 | 787,200 | 733,689 | |||||||||||||||
Office | 860,889 | 798,888 | 752,705 | 769,112 | 695,552 | |||||||||||||||
Industrial | 871,463 | 871,749 | 838,021 | 645,586 | 564,467 | |||||||||||||||
Residential construction and land development | 135,994 | 135,533 | 159,946 | 157,576 | 171,949 | |||||||||||||||
Other commercial real estate | 334,680 | 337,716 | 367,776 | 427,073 | 394,328 | |||||||||||||||
Total commercial real estate | 3,871,063 | 3,809,046 | 3,793,598 | 3,581,966 | 3,370,507 | |||||||||||||||
Residential mortgage: | ||||||||||||||||||||
Permanent mortgage | 977,743 | 1,006,820 | 969,558 | 969,007 | 948,405 | |||||||||||||||
Permanent mortgages guaranteed by U.S. government agencies | 204,181 | 199,387 | 190,309 | 192,732 | 197,350 | |||||||||||||||
Home equity | 764,350 | 743,625 | 712,926 | 719,184 | 723,554 | |||||||||||||||
Total residential mortgage | 1,946,274 | 1,949,832 | 1,872,793 | 1,880,923 | 1,869,309 | |||||||||||||||
Personal | 847,459 | 839,958 | 678,232 | 587,423 | 494,325 | |||||||||||||||
Total | $ | 16,991,906 | $ | 16,989,660 | $ | 16,464,786 | $ | 16,406,749 | $ | 16,022,566 |
LOANS BY PRINCIPAL MARKET AREA -- UNAUDITED BOK FINANCIAL CORPORATION (in thousands) | |||||||||||||||||||
March 31, 2017 | Dec. 31, 2016 | Sept. 30, 2016 | June 30, 2016 | March 31, 2016 | |||||||||||||||
Bank of Oklahoma: | |||||||||||||||||||
Commercial | $ | 3,189,183 | $ | 3,370,259 | $ | 3,545,924 | $ | 3,698,215 | $ | 3,656,034 | |||||||||
Commercial real estate | 691,332 | 684,381 | 795,806 | 781,458 | 747,689 | ||||||||||||||
Residential mortgage | 1,404,054 | 1,407,197 | 1,401,166 | 1,415,766 | 1,411,409 | ||||||||||||||
Personal | 310,708 | 303,823 | 271,420 | 246,229 | 204,158 | ||||||||||||||
Total Bank of Oklahoma | 5,595,277 | 5,765,660 | 6,014,316 | 6,141,668 | 6,019,290 | ||||||||||||||
Bank of Texas: | |||||||||||||||||||
Commercial | 4,148,316 | 4,022,455 | 3,903,218 | 3,901,632 | 3,936,809 | ||||||||||||||
Commercial real estate | 1,452,988 | 1,415,011 | 1,400,709 | 1,311,408 | 1,211,978 | ||||||||||||||
Residential mortgage | 231,647 | 233,981 | 229,345 | 222,548 | 217,539 | ||||||||||||||
Personal | 312,092 | 306,748 | 278,167 | 233,304 | 210,456 | ||||||||||||||
Total Bank of Texas | 6,145,043 | 5,978,195 | 5,811,439 | 5,668,892 | 5,576,782 | ||||||||||||||
Bank of Albuquerque: | |||||||||||||||||||
Commercial | 407,403 | 399,256 | 398,147 | 398,427 | 402,082 | ||||||||||||||
Commercial real estate | 307,927 | 284,603 | 299,785 | 322,956 | 323,059 | ||||||||||||||
Residential mortgage | 106,432 | 108,058 | 110,478 | 114,226 | 117,655 | ||||||||||||||
Personal | 11,305 | 11,483 | 11,333 | 10,569 | 10,823 | ||||||||||||||
Total Bank of Albuquerque | 833,067 | 803,400 | 819,743 | 846,178 | 853,619 | ||||||||||||||
Bank of Arkansas: | |||||||||||||||||||
Commercial | 88,010 | 86,577 | 83,544 | 81,227 | 79,808 | ||||||||||||||
Commercial real estate | 74,469 | 73,616 | 72,649 | 69,235 | 66,674 | ||||||||||||||
Residential mortgage | 6,829 | 7,015 | 6,936 | 6,874 | 7,212 | ||||||||||||||
Personal | 6,279 | 6,524 | 6,757 | 7,025 | 918 | ||||||||||||||
Total Bank of Arkansas | 175,587 | 173,732 | 169,886 | 164,361 | 154,612 | ||||||||||||||
Colorado State Bank & Trust: | |||||||||||||||||||
Commercial | 998,216 | 1,018,208 | 1,013,314 | 1,076,620 | 1,030,348 | ||||||||||||||
Commercial real estate | 266,218 | 265,264 | 254,078 | 237,569 | 219,078 | ||||||||||||||
Residential mortgage | 62,313 | 59,631 | 59,838 | 59,425 | 52,961 | ||||||||||||||
Personal | 49,523 | 50,372 | 42,901 | 35,064 | 24,497 | ||||||||||||||
Total Colorado State Bank & Trust | 1,376,270 | 1,393,475 | 1,370,131 | 1,408,678 | 1,326,884 | ||||||||||||||
Bank of Arizona: | |||||||||||||||||||
Commercial | 643,222 | 686,253 | 680,447 | 670,814 | 656,527 | ||||||||||||||
Commercial real estate | 737,088 | 747,409 | 726,542 | 639,112 | 605,383 | ||||||||||||||
Residential mortgage | 36,737 | 36,265 | 39,206 | 38,998 | 40,338 | ||||||||||||||
Personal | 51,386 | 52,553 | 31,205 | 24,248 | 18,372 | ||||||||||||||
Total Bank of Arizona | 1,468,433 | 1,522,480 | 1,477,400 | 1,373,172 | 1,320,620 | ||||||||||||||
Mobank: | |||||||||||||||||||
Commercial | 852,760 | 807,816 | 495,569 | 529,502 | 526,817 | ||||||||||||||
Commercial real estate | 341,041 | 338,762 | 244,029 | 220,228 | 196,646 | ||||||||||||||
Residential mortgage | 98,262 | 97,685 | 25,824 | 23,086 | 22,195 | ||||||||||||||
Personal | 106,166 | 108,455 | 36,449 | 30,984 | 25,101 | ||||||||||||||
Total Mobank | 1,398,229 | 1,352,718 | 801,871 | 803,800 | 770,759 | ||||||||||||||
TOTAL BOK FINANCIAL | $ | 16,991,906 | $ | 16,989,660 | $ | 16,464,786 | $ | 16,406,749 | $ | 16,022,566 |
Loans attributed to a geographical region may not always represent the location of the borrower or the collateral.
DEPOSITS BY PRINCIPAL MARKET AREA -- UNAUDITED BOK FINANCIAL CORPORATION (in thousands) | |||||||||||||||||||
March 31, 2017 | Dec. 31, 2016 | Sept. 30, 2016 | June 30, 2016 | March 31, 2016 | |||||||||||||||
Bank of Oklahoma: | |||||||||||||||||||
Demand | $ | 4,320,666 | $ | 3,993,170 | $ | 4,158,273 | $ | 4,020,181 | $ | 3,813,128 | |||||||||
Interest-bearing: | |||||||||||||||||||
Transaction | 6,114,288 | 6,345,536 | 5,701,983 | 5,741,302 | 5,706,067 | ||||||||||||||
Savings | 265,014 | 241,696 | 242,959 | 247,984 | 246,122 | ||||||||||||||
Time | 1,189,144 | 1,118,355 | 1,091,464 | 1,167,271 | 1,198,022 | ||||||||||||||
Total interest-bearing | 7,568,446 | 7,705,587 | 7,036,406 | 7,156,557 | 7,150,211 | ||||||||||||||
Total Bank of Oklahoma | 11,889,112 | 11,698,757 | 11,194,679 | 11,176,738 | 10,963,339 | ||||||||||||||
Bank of Texas: | |||||||||||||||||||
Demand | 3,091,258 | 3,137,009 | 2,734,981 | 2,677,253 | 2,571,883 | ||||||||||||||
Interest-bearing: | |||||||||||||||||||
Transaction | 2,317,576 | 2,388,812 | 2,240,040 | 2,035,634 | 2,106,905 | ||||||||||||||
Savings | 89,640 | 83,101 | 84,642 | 83,862 | 83,263 | ||||||||||||||
Time | 511,037 | 535,642 | 528,380 | 516,231 | 530,657 | ||||||||||||||
Total interest-bearing | 2,918,253 | 3,007,555 | 2,853,062 | 2,635,727 | 2,720,825 | ||||||||||||||
Total Bank of Texas | 6,009,511 | 6,144,564 | 5,588,043 | 5,312,980 | 5,292,708 | ||||||||||||||
Bank of Albuquerque: | |||||||||||||||||||
Demand | 593,117 | 627,979 | 584,681 | 530,853 | 557,200 | ||||||||||||||
Interest-bearing: | |||||||||||||||||||
Transaction | 623,677 | 590,571 | 555,326 | 573,690 | 560,684 | ||||||||||||||
Savings | 53,683 | 49,963 | 54,480 | 49,200 | 47,187 | ||||||||||||||
Time | 233,506 | 238,408 | 244,706 | 250,068 | 259,630 | ||||||||||||||
Total interest-bearing | 910,866 | 878,942 | 854,512 | 872,958 | 867,501 | ||||||||||||||
Total Bank of Albuquerque | 1,503,983 | 1,506,921 | 1,439,193 | 1,403,811 | 1,424,701 | ||||||||||||||
Bank of Arkansas: | |||||||||||||||||||
Demand | 42,622 | 26,389 | 32,203 | 30,607 | 31,318 | ||||||||||||||
Interest-bearing: | |||||||||||||||||||
Transaction | 106,804 | 105,232 | 313,480 | 278,335 | 265,803 | ||||||||||||||
Savings | 2,304 | 2,192 | 2,051 | 1,853 | 1,929 | ||||||||||||||
Time | 15,067 | 16,696 | 17,534 | 18,911 | 21,035 | ||||||||||||||
Total interest-bearing | 124,175 | 124,120 | 333,065 | 299,099 | 288,767 | ||||||||||||||
Total Bank of Arkansas | 166,797 | 150,509 | 365,268 | 329,706 | 320,085 | ||||||||||||||
Colorado State Bank & Trust: | |||||||||||||||||||
Demand | 601,778 | 576,000 | 517,063 | 528,124 | 413,506 | ||||||||||||||
Interest-bearing: | |||||||||||||||||||
Transaction | 610,510 | 616,679 | 623,055 | 625,240 | 610,077 | ||||||||||||||
Savings | 37,801 | 32,866 | 31,613 | 31,509 | 33,108 | ||||||||||||||
Time | 234,740 | 242,782 | 247,667 | 254,164 | 271,475 | ||||||||||||||
Total interest-bearing | 883,051 | 892,327 | 902,335 | 910,913 | 914,660 | ||||||||||||||
Total Colorado State Bank & Trust | 1,484,829 | 1,468,327 | 1,419,398 | 1,439,037 | 1,328,166 | ||||||||||||||
Bank of Arizona: | |||||||||||||||||||
Demand | 342,854 | 366,755 | 418,718 | 396,837 | 341,828 | ||||||||||||||
Interest-bearing: | |||||||||||||||||||
Transaction | 180,254 | 305,099 | 303,750 | 302,297 | 313,825 | ||||||||||||||
Savings | 3,858 | 2,973 | 2,959 | 3,198 | 3,277 | ||||||||||||||
Time | 26,112 | 27,765 | 27,935 | 28,681 | 29,053 | ||||||||||||||
Total interest-bearing | 210,224 | 335,837 | 334,644 | 334,176 | 346,155 | ||||||||||||||
Total Bank of Arizona | 553,078 | 702,592 | 753,362 | 731,013 | 687,983 | ||||||||||||||
Mobank: | |||||||||||||||||||
Demand | 514,278 | 508,418 | 235,445 | 240,755 | 221,812 | ||||||||||||||
Interest-bearing: | |||||||||||||||||||
Transaction | 406,105 | 513,176 | 86,526 | 112,371 | 146,405 | ||||||||||||||
Savings | 13,424 | 12,679 | 1,645 | 1,656 | 1,619 | ||||||||||||||
Time | 34,242 | 42,152 | 11,945 | 11,735 | 31,502 | ||||||||||||||
Total interest-bearing | 453,771 | 568,007 | 100,116 | 125,762 | 179,526 | ||||||||||||||
Total Mobank | 968,049 | 1,076,425 | 335,561 | 366,517 | 401,338 | ||||||||||||||
TOTAL BOK FINANCIAL | $ | 22,575,359 | $ | 22,748,095 | $ | 21,095,504 | $ | 20,759,802 | $ | 20,418,320 |
NET INTEREST MARGIN TREND -- UNAUDITED BOK FINANCIAL CORPORATION | ||||||||||||||
Three Months Ended | ||||||||||||||
March 31, 2017 | Dec. 31, 2016 | Sept. 30, 2016 | June 30, 2016 | March 31, 2016 | ||||||||||
TAX-EQUIVALENT ASSETS YIELDS | ||||||||||||||
Interest-bearing cash and cash equivalents | 0.82 | % | 0.55 | % | 0.51 | % | 0.51 | % | 0.53 | % | ||||
Trading securities | 3.87 | % | 3.91 | % | 2.71 | % | 1.89 | % | 2.47 | % | ||||
Investment securities: | ||||||||||||||
Taxable | 5.44 | % | 5.39 | % | 5.34 | % | 5.41 | % | 5.53 | % | ||||
Tax-exempt | 2.45 | % | 2.33 | % | 2.26 | % | 2.25 | % | 2.22 | % | ||||
Total investment securities | 3.70 | % | 3.60 | % | 3.51 | % | 3.52 | % | 3.51 | % | ||||
Available for sale securities: | ||||||||||||||
Taxable | 2.02 | % | 1.98 | % | 1.99 | % | 2.01 | % | 2.06 | % | ||||
Tax-exempt | 5.37 | % | 5.27 | % | 5.47 | % | 5.06 | % | 4.95 | % | ||||
Total available for sale securities | 2.05 | % | 2.00 | % | 2.01 | % | 2.04 | % | 2.08 | % | ||||
Fair value option securities | 2.27 | % | 0.99 | % | 1.70 | % | 2.19 | % | 2.38 | % | ||||
Restricted equity securities | 5.52 | % | 5.45 | % | 5.37 | % | 4.84 | % | 5.85 | % | ||||
Residential mortgage loans held for sale | 3.35 | % | 3.31 | % | 3.28 | % | 3.53 | % | 3.75 | % | ||||
Loans | 3.88 | % | 3.67 | % | 3.63 | % | 3.58 | % | 3.57 | % | ||||
Allowance for loan losses | ||||||||||||||
Loans, net of allowance | 3.94 | % | 3.72 | % | 3.69 | % | 3.63 | % | 3.63 | % | ||||
Total tax-equivalent yield on earning assets | 3.15 | % | 2.98 | % | 2.93 | % | 2.91 | % | 2.92 | % | ||||
COST OF INTEREST-BEARING LIABILITIES | ||||||||||||||
Interest-bearing deposits: | ||||||||||||||
Interest-bearing transaction | 0.20 | % | 0.16 | % | 0.14 | % | 0.14 | % | 0.14 | % | ||||
Savings | 0.08 | % | 0.09 | % | 0.09 | % | 0.10 | % | 0.09 | % | ||||
Time | 1.09 | % | 1.12 | % | 1.14 | % | 1.16 | % | 1.21 | % | ||||
Total interest-bearing deposits | 0.35 | % | 0.32 | % | 0.32 | % | 0.33 | % | 0.34 | % | ||||
Funds purchased | 0.47 | % | 0.28 | % | 0.19 | % | 0.19 | % | 0.27 | % | ||||
Repurchase agreements | 0.02 | % | 0.02 | % | 0.04 | % | 0.05 | % | 0.05 | % | ||||
Other borrowings | 0.83 | % | 0.61 | % | 0.57 | % | 0.57 | % | 0.56 | % | ||||
Subordinated debt | 5.68 | % | 5.51 | % | 3.84 | % | 1.52 | % | 1.26 | % | ||||
Total cost of interest-bearing liabilities | 0.52 | % | 0.44 | % | 0.44 | % | 0.41 | % | 0.40 | % | ||||
Tax-equivalent net interest revenue spread | 2.63 | % | 2.54 | % | 2.49 | % | 2.50 | % | 2.52 | % | ||||
Effect of noninterest-bearing funding sources and other | 0.18 | % | 0.15 | % | 0.15 | % | 0.13 | % | 0.13 | % | ||||
Tax-equivalent net interest margin | 2.81 | % | 2.69 | % | 2.64 | % | 2.63 | % | 2.65 | % |
Yield calculations are shown on a tax equivalent basis at the statutory federal and state rates for the periods presented. The yield calculations exclude security trades that have been recorded on trade date with no corresponding interest income and the unrealized gains and losses. The yield calculation also includes average loan balances for which the accrual of interest has been discontinued and are net of unearned income. Yield/rate calculations are generally based on the conventions that determine how interest income and expense is accrued.
CREDIT QUALITY INDICATORS -- UNAUDITED BOK FINANCIAL CORPORATION (in thousands, except ratios) | |||||||||||||||||||
Three Months Ended | |||||||||||||||||||
March 31, 2017 | Dec. 31, 2016 | Sept. 30, 2016 | June 30, 2016 | March 31, 2016 | |||||||||||||||
Nonperforming assets: | |||||||||||||||||||
Nonaccruing loans: | |||||||||||||||||||
Commercial | $ | 156,825 | $ | 178,953 | $ | 176,464 | $ | 181,989 | $ | 174,652 | |||||||||
Commercial real estate | 4,475 | 5,521 | 7,350 | 7,780 | 9,270 | ||||||||||||||
Residential mortgage | 46,081 | 46,220 | 52,452 | 57,061 | 57,577 | ||||||||||||||
Personal | 235 | 290 | 686 | 354 | 331 | ||||||||||||||
Total nonaccruing loans | 207,616 | 230,984 | 236,952 | 247,184 | 241,830 | ||||||||||||||
Accruing renegotiated loans guaranteed by U.S. government agencies | 83,577 | 81,370 | 80,306 | 78,806 | 77,597 | ||||||||||||||
Real estate and other repossessed assets | 42,726 | 44,287 | 31,941 | 24,054 | 29,896 | ||||||||||||||
Total nonperforming assets | $ | 333,919 | $ | 356,641 | $ | 349,199 | $ | 350,044 | $ | 349,323 | |||||||||
Total nonperforming assets excluding those guaranteed by U.S. government agencies | $ | 240,234 | $ | 263,425 | $ | 253,461 | $ | 251,497 | $ | 252,176 | |||||||||
Nonaccruing loans by loan class: | |||||||||||||||||||
Commercial: | |||||||||||||||||||
Energy | $ | 110,425 | $ | 132,499 | $ | 142,966 | $ | 168,145 | $ | 159,553 | |||||||||
Services | 7,713 | 8,173 | 8,477 | 9,388 | 9,512 | ||||||||||||||
Wholesale / retail | 11,090 | 11,407 | 2,453 | 2,772 | 3,685 | ||||||||||||||
Manufacturing | 5,907 | 4,931 | 274 | 293 | 312 | ||||||||||||||
Healthcare | 909 | 825 | 855 | 875 | 1,023 | ||||||||||||||
Other commercial and industrial | 20,781 | 21,118 | 21,439 | 516 | 567 | ||||||||||||||
Total commercial | 156,825 | 178,953 | 176,464 | 181,989 | 174,652 | ||||||||||||||
Commercial real estate: | |||||||||||||||||||
Residential construction and land development | 2,616 | 3,433 | 3,739 | 4,261 | 4,789 | ||||||||||||||
Retail | 314 | 326 | 1,249 | 1,265 | 1,302 | ||||||||||||||
Office | 413 | 426 | 882 | 606 | 629 | ||||||||||||||
Multifamily | 24 | 38 | 51 | 65 | 250 | ||||||||||||||
Industrial | 76 | 76 | 76 | 76 | 76 | ||||||||||||||
Other commercial real estate | 1,032 | 1,222 | 1,353 | 1,507 | 2,224 | ||||||||||||||
Total commercial real estate | 4,475 | 5,521 | 7,350 | 7,780 | 9,270 | ||||||||||||||
Residential mortgage: | |||||||||||||||||||
Permanent mortgage | 24,188 | 22,855 | 25,956 | 27,228 | 27,497 | ||||||||||||||
Permanent mortgage guaranteed by U.S. government agencies | 10,108 | 11,846 | 15,432 | 19,741 | 19,550 | ||||||||||||||
Home equity | 11,785 | 11,519 | 11,064 | 10,092 | 10,530 | ||||||||||||||
Total residential mortgage | 46,081 | 46,220 | 52,452 | 57,061 | 57,577 | ||||||||||||||
Personal | 235 | 290 | 686 | 354 | 331 | ||||||||||||||
Total nonaccruing loans | $ | 207,616 | $ | 230,984 | $ | 236,952 | $ | 247,184 | $ | 241,830 | |||||||||
Performing loans 90 days past due1 | $ | 95 | $ | 5 | $ | 3,839 | $ | 2,899 | $ | 8,019 | |||||||||
Gross charge-offs | $ | (2,153 | ) | $ | (1,651 | ) | $ | (8,101 | ) | $ | (8,845 | ) | $ | (23,991 | ) | ||||
Recoveries | 2,900 | 2,813 | 2,038 | 1,386 | 1,519 | ||||||||||||||
Net recoveries (charge-offs) | $ | 747 | $ | 1,162 | $ | (6,063 | ) | $ | (7,459 | ) | $ | (22,472 | ) | ||||||
Provision for credit losses | $ | — | $ | — | $ | 10,000 | $ | 20,000 | $ | 35,000 | |||||||||
Allowance for loan losses to period end loans | 1.46 | % | 1.45 | % | 1.49 | % | 1.48 | % | 1.46 | % | |||||||||
Combined allowance for credit losses to period end loans | 1.52 | % | 1.52 | % | 1.56 | % | 1.54 | % | 1.50 | % | |||||||||
Nonperforming assets to period end loans and repossessed assets | 1.96 | % | 2.09 | % | 2.12 | % | 2.13 | % | 2.18 | % | |||||||||
Net charge-offs (annualized) to average loans | (0.02 | )% | (0.03 | )% | 0.15 | % | 0.18 | % | 0.56 | % | |||||||||
Allowance for loan losses to nonaccruing loans1 | 125.92 | % | 112.33 | % | 110.65 | % | 106.95 | % | 104.89 | % | |||||||||
Combined allowance for credit losses to nonaccruing loans1 | 130.70 | % | 117.46 | % | 115.67 | % | 110.93 | % | 107.87 | % |
1 Excludes residential mortgage loans guaranteed by agencies of the U.S. government.