-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, TFh5QN57sGHAEqpmnsA+CRvQs8J2lC0zY1GpjeDIA8zqGOfTuSwFAPY0SC72ygU5 4FtLK1kgOj/lmg04w2SSlQ== 0000875357-04-000008.txt : 20040428 0000875357-04-000008.hdr.sgml : 20040428 20040428093812 ACCESSION NUMBER: 0000875357-04-000008 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20040331 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20040428 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BOK FINANCIAL CORP ET AL CENTRAL INDEX KEY: 0000875357 STANDARD INDUSTRIAL CLASSIFICATION: NATIONAL COMMERCIAL BANKS [6021] IRS NUMBER: 731373454 STATE OF INCORPORATION: OK FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-19341 FILM NUMBER: 04758745 BUSINESS ADDRESS: STREET 1: BANK OF OKLAHOMA TOWER STREET 2: PO BOX 2300 CITY: TULSA STATE: OK ZIP: 74192 BUSINESS PHONE: 9185953025 MAIL ADDRESS: STREET 1: BANK OF OKLAHOMA TOWER STREET 2: P O BOX 2300 CITY: TULSA STATE: OK ZIP: 74192 8-K 1 form8k033104.txt FORM 8-K FOR 033104 EARNINGS RELEASE - ------------------------------------------------------------------------------- UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): April 27, 2004 BOK FINANCIAL CORPORATION (Exact name of registrant as specified in its charter) Oklahoma 000-19341 73-1373454 -------- --------- ---------- (State or other jurisdiction (Commission (IRS Employer of incorporation) File Number) Identification No.) Bank of Oklahoma Tower, Boston Avenue at Second Street, Tulsa, Oklahoma 74172 (Address of principal executive offices) Registrant's telephone number, including area code: (918) 588-6000 _____________________N/A___________________________ (Former name or former address, if changes since last report) - ------------------------------------------------------------------------------- INFORMATION TO BE INCLUDED IN THE REPORT ITEM 5. Other Events and Regulation FD Disclosure. On April 27, 2004, BOK Financial Corporation ("BOK Financial") issued a press release announcing its financial results for the first quarter ended March 31, 2004 ("Press Release"). The full text of the Press Release is attached as Exhibit 99(a) to this report and is incorporated herein by reference. On April 27, 2004, in connection with BOK Financial's issuance of the Press Release, BOK Financial released financial information related to the three months ended March 31, 2004 ("Financial Information"), which includes certain historical financial information relating to BOK Financial. The Financial Information is attached as Exhibit 99(b) to this report and is incorporated herein by reference. ITEM 7. Financial Statements and Exhibits. (c) Exhibits 99(a) Text of Press Release, dated April 27, 2004, titled "BOK Financial Reports First Quarter Earnings -- Net Interest Revenue Growth, Fees Help Offset Mortgage Banking Slowdown" 99(b) Financial Information for the Three Months Ended March 31, 2004 Signatures Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. BOK FINANCIAL CORPORATION By: /s/ Steven E. Nell -------------------------------- Steven E. Nell Executive Vice President Chief Financial Officer Date: April 27, 2004 Exhibit Index Exhibit No. Description 99(a) Text of Press Release, dated April 27, 2004, titled "BOK Financial Reports First Quarter Earnings -- Net Interest Revenue Growth, Fees Help Offset Mortgage Banking Slowdown" 99(b) Financial Information for the Three Months Ended March 31, 2004 EX-99 2 pr033104.txt (A) PRESS RELEASE Exhibit 99 (a) NASDAQ: BOKF For More Information: Steven Nell Chief Financial Officer BOK Financial (918) 588-6319 Danny Boyd Corporate Communications BOK Financial (918) 588-6348 BOK Financial Reports First Quarter Earnings Net Interest Revenue Growth, Fees Help Offset Mortgage Banking Slowdown TULSA, Okla. (Tuesday, April 27, 2004) - Growth in both net interest revenue and fee revenue contributed to first quarter net income at BOK Financial Corporation. BOKF reported net income of $39.2 million, or 60 cents per diluted share, for the first quarter of 2004 compared with net income of $43.5 million, or 67 cents per diluted share, for the same period of 2003. Mortgage banking revenue decreased $5.0 million, after taxes, compared with the first quarter of 2003 as refinancing activities subsided. Gains from securities sales decreased $3.4 million, after taxes, compared with last year. During the quarter, the company also contributed appreciated securities to the BOk Charitable Foundation, which reduced net income by $1.4 million, or 2 cents per share. Growth in net interest revenue and other fee-generating activities partially offset the reduction in net income from these sources. "Recent signs of strength in the economy have improved our net interest revenue and other fee income sources, which offset the slowdown in mortgage banking revenue," said President and CEO Stan Lybarger. "Our loan portfolio increased 8 percent, on average, from a year ago which contributed to our revenue growth." Net interest revenue increased $7.3 million, or 8 percent, due to growth in average earning assets. Average loans and securities increased $546 million and $445 million, respectively, compared with the first quarter of 2003. Net interest margin, which decreased 12 basis points to 3.45 percent compared with last year, continued to increase from a low point of 3.32 percent for the third quarter of 2003. Non-interest revenue from fees and commissions increased $3.7 million, or 5 percent, compared with the first quarter of 2003. Trust fees grew 35 percent to $13.7 million due to increased fair value of assets managed and the acquisition of Colorado State Bank and Trust during 2003. The fair value of trust assets increased 24 percent to $21 billion at March 31, 2004, compared with a year ago. The growth in trust assets included $2.6 billion due to value appreciation and new business, and $1.6 billion from the CSBT acquisition. Service charges on deposit accounts increased $3.2 million, or 17 percent. Transaction card revenue grew $2.0 million, or 16 percent, due to increased transaction volumes. The combined growth in all other categories of fee revenue offset a $7.8 million decrease in mortgage banking revenue. Mortgage servicing revenue fell by $1.4 million due to a 16 percent decrease in the principal balance of loan serviced for others. Secondary marketing gains decreased $6.4 million as the volume of loans funded fell to $160 million compared with $331 million for the first quarter of 2003. Securities gains decreased to $4.3 million for the first quarter of 2004 compared with $9.7 million for the same period of 2003. The company recognized gains from the active management of its securities portfolio of $2.1 million and gains on securities held as an economic hedge of its mortgage servicing rights of $2.2 million in 2004. This is compared with gains from securities portfolio management of $6.5 million and gains from mortgage servicing hedging activities of $3.2 million last year. Outstanding loans totaled $7.5 billion at March 31, 2004, compared with $7.0 billion a year ago and $7.5 billion at December 31, 2003. Total commercial and commercial real estate loans decreased $28 million during the first quarter of 2004 while mortgage loans increased $44 million. Energy loans, which are included in commercial loans, decreased 10 percent to $1.1 billion during the first quarter as currently high energy prices provided cash flow to the industry. The decrease in outstanding energy loans was partially offset by a 7 percent increase in outstanding loans to the retail/wholesale sector and a 4 percent increase in loans to the manufacturing sector. "Payments in the energy sector masked an otherwise strong performance in the commercial loan portfolio," said Lybarger. "Commercial loans grew by more than 3 percent since year end, excluding energy. Loan opportunities have increased noticeably, reflecting the positive economic trends." Credit quality improved from last year. Nonperforming assets were $52 million or .70 percent of outstanding loans at March 31, 2004, compared with $56 million or .82 percent at March 31, 2003. Net charge-offs for the first quarter of 2004 decreased to $5.8 million compared with $6.3 million a year ago. This credit quality performance reduced the company's provision for loan losses to $7.0 million for the first quarter of 2004 compared with $9.9 million last year. The allowance for loan losses was 1.75 percent of outstanding loans and 280 percent of nonperforming loans at March 31, 2004, compared with 1.75 percent and 236 percent, respectively, at March 31, 2003. Deposit growth continued. Outstanding deposits totaled $9.4 billion at March 31, 2004, an increase of $731 million from March 31, 2003, and $146 million since December 31. Demand deposits at March 31, 2004, grew 32 percent compared with the same time last year and 17 percent compared with year-end 2003. Operating expenses rose $16.9 million, or 17 percent, compared with the first quarter of 2003. The increase in operating expenses included $4.1 million related to the cost of appreciated securities contributed to the BOk Charitable Foundation. Operating expenses increased 13 percent excluding this contribution. Personnel costs increased $4.4 million, including $2.6 million from Colorado State Bank and Trust and $1.6 million from recently-adopted executive deferred compensation plans. The cost of these plans varies with changes in the value of BOK Financial common stock in addition to performance measured against pre-defined targets. Data processing and communications expense increased $2.9 million, or 25 percent, due primarily to higher transaction card, trust and deposit processing volumes. Amortization expense from the new core data processing system implemented in the fourth quarter of 2003 also contributed to the increase. Mortgage banking expenses, including provision for impairment of mortgage servicing rights, increased $2.9 million compared with the first quarter of 2003 as changes in interest rates affected both the value of servicing rights and related amortization expense. BOK Financial is a regional financial services company that provides commercial and consumer banking, investment and trust services, mortgage origination and servicing, and an electronic funds transfer network. Holdings include Bank of Albuquerque, N.A., Bank of Arkansas, N.A., Bank of Oklahoma, N.A., Bank of Texas, N.A., Colorado State Bank and Trust, N.A., BOSC, Inc., and the TransFund electronic funds network. Shares of BOK Financial Corporation are traded on the NASDAQ under the symbol BOKF. For more information, visit our website at www.bokf.com. This news release contains forward-looking statements that are based on management's beliefs, assumptions, current expectations, estimates and projections about BOK Financial Corp., 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 judgements relating to, and discussion of the provision and allowance for credit losses involve judgements as to future events and are inherently forward-looking statements. Assessments that BOKF'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 BOKF 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 expressed, 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 BOKF 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 non-traditional competitors, (6) changes in banking regulations, tax laws, prices, levies, and assessments, (7) the impact of technological advances, and (8) trends in customer behavior as well as their ability to repay loans. BOK Financial Corp. 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. EX-99 3 fs033104.txt (B) FINANCIAL INFORMATION BOK FINANCIAL CORPORATION Exhibit 99 (b) (In thousands, except ratio and per share data) Period End Balances Average Balances ------------------------------------- ------------------------------------ March 31, Quarter Ended March 31, ------------------------------------- ------------------------------------ BALANCE SHEETS 2004 2003 2004 2003 ---------------- ---------------- ---------------- ----------------- ASSETS Cash and due from banks $ 554,511 $ 563,674 $ 482,558 $ 459,270 Trading securities 18,155 10,658 15,499 10,342 Funds sold 12,800 26,642 7,995 29,392 Securities: Available for sale 4,677,148 4,602,369 4,594,569 4,143,109 Held for investment 198,679 199,463 193,929 200,265 ---------------- ---------------- ---------------- ----------------- Total securities 4,875,827 4,801,832 4,788,498 4,343,374 Loans: Commercial 4,319,665 4,013,235 4,316,205 3,915,425 Commercial real estate 1,619,225 1,461,763 1,618,109 1,538,089 Residential mortgage 1,115,952 1,097,507 1,115,213 1,093,201 Consumer 445,734 403,984 445,186 402,398 ---------------- ---------------- ---------------- ----------------- Total loans 7,500,576 6,976,489 7,494,713 6,949,113 Less allowance for loan losses (129,838) (119,699) (132,494) (119,959) ---------------- ---------------- ---------------- ----------------- Total loans, net 7,370,738 6,856,790 7,362,219 6,829,154 Premises and equipment, net 173,079 154,943 174,040 153,292 Accrued revenue receivable 69,619 61,935 62,398 62,241 Intangible assets, net 248,660 196,256 249,794 197,037 Mortgage servicing rights, net 42,352 37,526 46,263 35,727 Real estate and other repossessed assets 5,954 5,350 6,695 6,242 Bankers' acceptances 23,117 33,210 23,945 16,988 Derivative contracts 230,464 130,158 171,394 140,846 Other assets 134,836 109,852 140,704 82,760 ---------------- ---------------- ---------------- ----------------- TOTAL ASSETS $ 13,760,112 $ 12,988,826 $ 13,532,002 $ 12,366,665 ================ ================ ================ ================= LIABILITIES AND SHAREHOLDERS' EQUITY Deposits: Demand $ 1,921,263 $ 1,460,436 $ 1,643,638 $ 1,292,077 Interest-bearing transaction 3,838,615 3,452,180 3,819,981 3,288,874 Savings 178,088 175,224 174,958 168,730 Time deposits 3,427,608 3,546,880 3,395,785 3,399,813 ---------------- ---------------- ---------------- ----------------- Total deposits 9,365,574 8,634,720 9,034,362 8,149,494 Federal funds purchased and repurchase agreements 1,480,246 1,465,907 1,675,722 1,420,781 Other borrowed funds 1,012,745 1,057,550 1,010,414 1,059,201 Subordinated debentures 154,027 155,198 154,175 155,304 Accrued interest, taxes, and expenses 69,415 73,200 71,807 66,427 Due on unsettled security transactions 39,100 251,667 57,903 198,751 Bankers' acceptances 23,117 33,210 23,945 16,988 Derivative contracts 231,803 122,253 172,295 131,764 Other liabilities 88,214 55,050 80,511 51,890 ---------------- ---------------- ---------------- ----------------- TOTAL LIABILITIES 12,464,241 11,848,755 12,281,134 11,250,600 Shareholders' Equity: Shareholders' equity 1,260,475 1,099,758 1,232,719 1,074,141 Unrealized securities gains 35,396 40,313 18,149 41,924 ---------------- ---------------- ---------------- ----------------- TOTAL SHAREHOLDERS' EQUITY 1,295,871 1,140,071 1,250,868 1,116,065 ---------------- ---------------- ---------------- ----------------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 13,760,112 $ 12,988,826 $ 13,532,002 $ 12,366,665 ================ ================ ================ =================
For the Quarter Ended ------------------------------------- March 31, ------------------------------------- STATEMENTS OF EARNINGS 2004 2003 ---------------- ---------------- Interest revenue $ 146,006 $ 141,952 Interest expense 43,204 46,441 ---------------- ---------------- Net interest revenue 102,802 95,511 Provision for loan losses 7,027 9,912 ---------------- ---------------- Net interest revenue after provision for loan losses 95,775 85,599 Other operating revenue Brokerage and trading revenue 10,011 9,214 Transaction card revenue 14,724 12,676 Trust fees and commissions 13,709 10,180 Service charges and fees on deposit accounts 22,155 18,984 Mortgage banking revenue, net 7,744 15,535 Leasing revenue 887 859 Other revenue 6,624 4,660 ---------------- ---------------- Total fees and commissions 75,854 72,108 Gain on sale of other assets 684 730 Gain (loss) on sales of securities, net 4,277 9,689 Gain (loss) on derivatives (995) (1,296) ---------------- ---------------- Total other operating revenue 79,820 81,231 Other operating expense Personnel 58,209 53,784 Business promotion 3,350 3,471 Contribution of stock to BOk Charitable Foundation 4,125 - Professional fees and services 3,899 3,765 Net occupancy and equipment 11,851 11,061 Data processing and communications 14,641 11,720 FDIC and other insurance 604 516 Printing, postage and supplies 3,317 3,359 Net (gains) losses and operating expenses on repossessed assets 114 8 Amortization of intangible assets 2,138 1,777 Mortgage banking costs 5,843 14,442 Provision (recovery) for impairment of mortgage servicing rights 3,703 (7,830) Other expense 4,249 3,082 ---------------- ---------------- Total other operating expense 116,043 99,155 Income before taxes 59,552 67,675 Federal and state income taxes 20,400 24,208 ---------------- ---------------- Net Income $ 39,152 $ 43,467 ================ ================
For the Quarter Ended ------------------------------------- March 31, ------------------------------------- FINANCIAL DATA 2004 2003 ---------------- ---------------- Capital: Average equity $ 1,250,868 $ 1,116,065 Period-end equity $ 1,295,871 $ 1,140,071 Risk-based capital ratios: Tier 1 9.32% 9.20% Total capital 11.45% 12.11% Leverage ratio 7.34% 7.03% Common stock: Book value per share $ 22.32 $ 19.79 ================ ================ Basic earnings per share $ 0.68 $ 0.76 ================ ================ Diluted earnings per share $ 0.60 $ 0.67 ================ ================ Period end common shares outstanding 57,389,748 56,841,391 Average shares outstanding: Basic 57,331,272 56,820,784 Diluted 64,730,046 64,455,840 Key ratios: Return on average assets 1.16% 1.43% Return on average equity 12.59% 15.80% Net interest margin 3.45% 3.57% Credit Quality: Nonperforming assets: Nonaccrual loans $ 46,377 $ 50,713 Real estate and other repossessed assets 5,954 5,350 ---------------- ---------------- Total nonperforming assets $ 52,331 $ 56,063 ================ ================ 90-day past due $ 16,376 $ 7,921 ================ ================ Gross charge-offs $ 7,962 $ 8,051 Recoveries 2,134 1,768 ---------------- ---------------- Net charge-offs (recoveries) $ 5,828 $ 6,283 ================ ================ Key ratios: Reserve for loan losses to period end loans (A) 1.75% 1.75% Nonperforming assets to period end loans (A) and repossessed assets 0.70% 0.82% Net charge-offs (annualized) to average loans (A) 0.31% 0.37% Reserve for loan losses to nonperforming loans 279.96% 236.03% (A) Excluding residential mortgage loans held for sale.
For the Quarter Ended ------------------------------------- March 31, ------------------------------------- 2004 2003 ---------------- ---------------- Other Data: Average earning assets, net of unsettled security transactions $ 12,110,611 $ 11,013,511 Average total assets $ 13,532,002 $ 12,366,665 Average equity $ 1,250,868 $ 1,116,065 Average loans $ 7,494,713 $ 6,949,113 Loans held for sale (Period end) $ 83,556 $ 146,092 Loans held for sale (Average) $ 72,089 $ 122,248 Tax equivalent adjustment $ 1,197 $ 1,403 Preferred stock dividends - BOKF $ 375 $ 375 Period end common shares O/S 57,389,748 56,841,391 Period end fully diluted shares 64,788,522 64,476,447 Number of days in period 91 90 Tangible Book Value per Common Share $ 17.99 $ 16.34 ================ ================ Stock Buy Back Program: Stock buy back # shares - - Stock buy back account $ - $ - ---------------- ---------------- Average price per share $ - $ - ================ ================ Mortgage Banking: Mortgage servicing portfolio $ 4,259,639 $ 5,090,974 Mortgage loan fundings during quarter $ 159,641 $ 331,425 Mortgage loan refinances to total fundings 43.15% 74.40% Trust Assets: Total trust assets $ 21,313,658 $ 17,131,694
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