-----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, Tl9lGuv42ssvfpKCon42R21y6t/o+qfSN4KYd26Am8Y9kgCJIOUvi4rSZf0IkqQ+ Qf/ujQd4UCOeLyqUdLjbxw== 0000875357-06-000037.txt : 20060718 0000875357-06-000037.hdr.sgml : 20060718 20060718160254 ACCESSION NUMBER: 0000875357-06-000037 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20060630 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20060718 DATE AS OF CHANGE: 20060718 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: 06967214 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 form8k063006.txt FORM 8-K Q206 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): July 18, 2006 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) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: |_| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425). |_| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12). |_| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)). |_| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)). INFORMATION TO BE INCLUDED IN THE REPORT ITEM 2.02. Results of Operations and Financial Condition. On July 18, 2006, BOK Financial Corporation ("BOK Financial") issued a press release announcing its financial results for the three and six months ended June 30, 2006 ("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 July 18, 2006, in connection with issuance of the Press Release, BOK Financial released financial information related to the three and six months ended June 30, 2006 ("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 9.01. Financial Statements and Exhibits. (c) Exhibits 99(a) Text of Press Release, dated July 18, 2006, titled "BOK Financial Reports Record Quarterly Earnings - Loan Growth Strong, Net Interest Margin Stable in Second Quarter" 99(b) Financial Information for the Three and Six Months Ended June 30, 2006 Signature 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: July 18, 2006 EX-99 2 press063006.txt (A) TEXT OF PRESS RELEASE DATED 07/18/06 Exhibit 99 (a) For Further Information Contact: Steven Nell Chief Financial Officer (918) 588-6000 Jesse Boudiette Vice President Corporate Communications Manager BOK Financial Corp. (918) 588-6532 BOK FINANCIAL REPORTS RECORD QUARTERLY EARNINGS Loan Growth Strong, Net Interest Margin Stable in Second Quarter TULSA, Okla. (Tuesday, July 18, 2006) - BOK Financial Corporation reported record quarterly net income of $55.0 million or $0.82 per diluted share for the second quarter of 2006, a 9% increase over the second quarter of 2005. Earnings for the second quarter of 2006 grew 18% excluding gains on sales of the Company's interest in an office building and residential mortgage loans of $3.8 million or $0.06 per diluted share from the second quarter of 2005. Mortgage loans sold during the second quarter of 2005 were not part of the Company's ongoing mortgage banking business. Highlights of the quarter included: o Outstanding loans grew $1.3 billion or 15% since June 30, 2005 o Average deposits increased 14% from the second quarter of 2005, exceeding average loan growth by $284 million o Stable net interest margin o Fee revenues increased 8% o Expense management at 6% level o Near historical low non-performing loans and strong allowance for loan losses - MORE - "Loan growth of $593 million since March 31, a 26% annualized rate, was exceptionally strong," said President and CEO Stan Lybarger. "The Dallas, Houston, Denver and Phoenix regional markets along with Oklahoma each contributed to the quarter's growth. Our balanced approach to diversified revenue both in our regional markets and Oklahoma continued to fuel record earnings levels." Net Interest Revenue Net interest revenue totaled $121.1 million for the second quarter of 2006, up $8.6 million or 8% over the second quarter of 2005. Average earning assets grew $1.2 billion or 9%, including a $1.1 billion increase in average outstanding loans. Average deposits increased $1.4 billion or 14%. Other borrowed funds decreased $180 million compared with the second quarter of 2005. In addition, net interest revenue growth accelerated to a 13% annual rate compared to the previous quarter due largely to strong loan growth. Net interest margin was 3.40% for the second quarter of 2006 compared with 3.39% for the first quarter of 2006 and 3.45% for the second quarter of 2005. The net interest margin has shown continued modest improvement since the third quarter of 2005 due to growth in earning assets and deposits, partially offset by asset spread compression. Fees and Commissions Revenue Fees and commissions revenue totaled $93.6 million for the second quarter of 2006, up $6.9 million or 8% over 2005. Transaction card revenue increased $2.0 million or 11% due largely to debit card fees. Trust revenue grew $1.5 million or 9% with fee increases across most business lines. Energy derivative and retail brokerage fees increased brokerage and trading revenue $1.0 million or 10%. Fee and commissions growth was partially offset by a $1.4 million decrease in mortgage banking revenue due to lower gains on loans sold during the quarter. Margin fees, which are included in other revenue, totaled $2.9 million for the second quarter of 2006 and $1.3 million for the second quarter of 2005. Average margin assets totaled $260 million for the second quarter of 2006 compared with $204 million for the second quarter of 2005. Margin assets are a result of changes in the value of derivative contracts used primarily in the customer hedging programs. Mortgage Servicing Rights Appreciation of mortgage servicing rights, net of recognized losses on economic hedges increased net income $689 thousand for the second quarter of 2006. Depreciation in the value of mortgage servicing rights, net of recognized losses on economic hedges decreased net income $2.5 million for the second quarter of 2005. - MORE - The pre-tax value of mortgage servicing rights appreciated $3.6 million during the second quarter of 2006 due to rising interest rates and a slow-down in anticipated loan prepayments. Average mortgage commitment rates increased 36 basis points since March 31, 2006 to 6.61% at June 30, 2006. Rising interest rates also resulted in recognized pre-tax losses of $2.5 million on securities held as an economic hedge against changes in value of the mortgage servicing rights. Operating Expenses Operating expenses, excluding changes in the value of mortgage servicing rights increased $6.8 million or 6% compared with the second quarter of 2005. Personnel costs increased $7.0 million or 11%. Salaries and wages increased $4.5 million or 11% compared with the second quarter of 2005. Average salaries and wages per employee increased 7% over last year and the average number of employees increased 3%. Incentive compensation costs which are based on growth in loans, revenue or other criteria over defined targets grew $2.7 million or 21% compared with 2005. Loans and Deposits Outstanding loans totaled $9.8 billion at June 30, 2006, a $593 million increase over March 31, 2006. Commercial loans and commercial real estate loans increased $299 million and $219 million, respectively. Outstanding commercial loans to the energy industry increased $147 million while residential construction loans grew $104 million during the second quarter. Loans in markets outside of Oklahoma totaled $4.2 billion, an increase of $339 million since March 31, 2006, and now represent 43% of total outstanding loans. Outstanding loans in the Texas markets increased $202 million to $2.5 billion while outstanding loans increased $53 million in both the Colorado and Arizona markets. At June 30, 2006 loans in Colorado and Arizona totaled $508 million and $257 million, respectively. Loans in markets attributed to Oklahoma grew $254 million to $5.6 billion. Commercial loans in Oklahoma markets increased $138 million while commercial real estate loans grew $84 million. Deposits totaled $11.3 billion at June 30, 2006, unchanged from the start of the second quarter. The Company has retained a significant portion of the fourth quarter's $976 million deposit growth. Demand deposits at June 30, 2006 grew at a 9% annualized rate compared with March 31 while interest-bearing transaction accounts decreased at a 10% annualized rate. Credit Quality Overall credit quality remained strong through the second quarter of 2006. Net loans charged-off totaled $3.8 million due to a modest increase in net losses on commercial and commercial real estate loans. Net loans charged off were $1.6 million in the preceding quarter and $2.3 million in the second quarter of 2005. - MORE - Non-performing loans continued to be near historic lows. Non-performing loans totaled $31 million or 0.32% of outstanding loans at June 30, 2006 and $32 million or 0.35% of outstanding loans at March 31, 2006. The allowance for loan losses was $105 million at June 30, 2006, 1.07% of outstanding loans and 337% of non-performing loans. The combined allowance for loan losses and reserve for off-balance sheet credit losses totaled $126 million, 1.30% of outstanding loans and 408% of non-performing loans. The combined allowance for loan losses and reserve for off-balance sheet credit losses totaled $126 million at March 31, 2006, 1.38% of outstanding loans and 392% of non-performing loans. The provision for credit losses for the second quarter of 2006 was $3.8 million compared with $3.4 million for the first quarter of 2006 and $2.0 million for the second quarter of 2005. Capital Management The Company repurchased 108,322 shares of its common stock at an average price of $48.56 per share during the second quarter of 2006 under its share repurchase program. A cash dividend of $10.0 million or $0.15 per common share was paid during the second quarter of 2006. About BOK Financial Corporation 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 Arizona, N.A., Bank of Arkansas, N.A., Bank of Oklahoma, N.A., Bank of Texas, N.A., Colorado State Bank & Trust, N.A., BOSC,Inc., the TransFund electronic funds network, Southwest Trust Company, N.A. and AXIA Investment Management, Inc. Shares of BOK Financial are traded on the NASDAQ under the symbol BOKF. For more information, visit our website at www.bokf.com. - MORE - Forward-looking Information 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. ### EX-99 3 fs063006.txt (B) FINANCIAL INFORMATION FOR Q206 Exhibit 99(b) BALANCE SHEETS BOK FINANCIAL CORPORATION (In thousands) Period Ended --------------------------------------------------- June 30, December 31, June 30, 2006 2005 2005 -------------- --------------- ------------- (Unaudited) (Unaudited) ASSETS Cash and due from banks $ 618,064 $ 684,857 $ 653,047 Trading securities 25,702 18,633 10,588 Funds sold and resell agreements 25,469 14,465 27,176 Securities: Available for sale 4,743,090 4,821,575 4,887,966 Investment 223,411 245,125 220,401 Mortgage trading securities 68,327 - - -------------- --------------- ------------- Total securities 5,034,828 5,066,700 5,108,367 Loans: Commercial 5,538,047 5,299,935 4,859,779 Commercial real estate 2,324,207 1,989,902 1,861,859 Residential mortgage 1,211,448 1,169,331 1,151,674 Residential mortgage held for sale 54,026 51,666 74,410 Consumer 666,740 629,144 566,958 -------------- --------------- ------------- Total loans 9,794,468 9,139,978 8,514,680 Less reserve for loan losses (104,525) (103,876) (108,885) -------------- --------------- ------------- Loans, net of reserve 9,689,943 9,036,102 8,405,795 Premises and equipment, net 177,142 179,627 174,526 Accrued revenue receivable 100,138 99,874 82,868 Intangible assets, net 260,293 263,022 260,279 Mortgage servicing rights, net 73,103 54,097 46,200 Real estate and other repossessed assets 8,257 8,476 5,062 Bankers' acceptances 30,430 33,001 40,949 Derivative contracts 414,367 452,878 271,692 Other assets 466,349 415,337 367,603 -------------- --------------- ------------- TOTAL ASSETS $ 16,924,085 $ 16,327,069 $ 15,454,152 ============== =============== ============= LIABILITIES AND SHAREHOLDERS' EQUITY Deposits: Demand $ 1,823,929 $ 1,865,948 $ 1,749,948 Interest-bearing transaction 5,006,891 5,257,295 4,277,000 Savings 149,008 154,015 160,328 Time 4,326,957 4,098,060 3,713,530 -------------- --------------- ------------- Total deposits 11,306,785 11,375,318 9,900,806 Funds purchased and repurchase agreements 2,342,339 1,337,911 2,123,589 Other borrowings 727,726 1,054,298 1,059,694 Subordinated debentures 290,522 295,964 297,882 Accrued interest, taxes, and expense 74,580 92,219 66,026 Bankers' acceptances 30,430 33,001 40,949 Due on unsettled securities trades 3,335 8,429 99,664 Derivative contracts 437,182 466,669 281,314 Other liabilities 128,176 124,106 103,253 -------------- --------------- ------------- TOTAL LIABILITIES 15,341,075 14,787,915 13,973,177 Shareholders' equity: Capital, surplus and retained earnings 1,702,705 1,606,965 1,512,012 Accumulated other comprehensive income (loss) (119,695) (67,811) (31,037) -------------- --------------- ------------- TOTAL SHAREHOLDERS' EQUITY 1,583,010 1,539,154 1,480,975 -------------- --------------- ------------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 16,924,085 $ 16,327,069 $ 15,454,152 ============== =============== =============
AVERAGE BALANCE SHEETS - UNAUDITED BOK FINANCIAL CORPORATION (In thousands) Quarter Ended -------------------------------------------------------------------------------------- June 30, March 31, December 31, September 30, June 30, 2006 2006 2005 2005 2005 -------------- --------------- ------------- --------------- ------------- ASSETS Trading securities $ 23,672 $ 16,722 $ 20,595 $ 14,560 $ 11,639 Funds sold and resell agreements 32,048 21,181 57,656 44,882 21,170 Securities: Available for sale 4,760,257 4,887,484 4,815,296 4,794,958 4,825,706 Investment 227,810 236,953 244,488 236,837 220,840 Mortgage trading securities 68,518 - - - - -------------- --------------- ------------- --------------- ------------- Total securities 5,056,585 5,124,437 5,059,784 5,031,795 5,046,546 Loans: Commercial 5,355,644 5,217,467 5,222,316 4,926,685 4,716,278 Commercial real estate 2,247,779 2,096,885 1,960,507 1,917,996 1,871,830 Residential mortgage 1,176,660 1,166,509 1,160,385 1,119,512 1,152,834 Residential mortgage held for sale 47,163 45,983 42,756 59,265 47,506 Consumer 645,064 637,863 619,582 612,274 553,042 -------------- --------------- ------------- --------------- ------------- Total loans 9,472,309 9,164,706 9,005,546 8,635,732 8,341,490 Less allowance for loan losses (106,048) (105,135) (108,998) (109,840) (111,056) -------------- --------------- ------------- --------------- ------------- Total loans, net 9,366,261 9,059,571 8,896,548 8,525,892 8,230,434 -------------- --------------- ------------- --------------- ------------- Total earning assets 14,478,566 14,221,911 14,034,583 13,617,129 13,309,789 Cash and due from banks 554,412 584,508 540,776 542,841 552,600 Other assets 1,531,312 1,463,820 1,627,352 1,427,905 1,198,086 -------------- --------------- ------------- --------------- ------------- TOTAL ASSETS $ 16,564,290 $ 16,270,239 $ 16,202,711 $ 15,587,875 $ 15,060,475 ============== =============== ============= =============== ============= LIABILITIES AND SHAREHOLDERS' EQUITY Deposits: Demand $ 1,474,835 $ 1,485,398 $ 1,530,504 $ 1,424,102 $ 1,586,248 Interest-bearing transaction 5,353,413 5,327,004 4,821,627 4,533,912 4,323,513 Savings 153,200 155,554 154,316 157,772 166,426 Time 4,220,204 4,162,952 4,216,625 3,958,948 3,710,338 -------------- --------------- ------------- --------------- ------------- Total deposits 11,201,652 11,130,908 10,723,072 10,074,734 9,786,525 Funds purchased and repurchase agreements 2,118,211 1,731,983 1,812,752 2,067,432 2,160,031 Other borrowings 684,431 882,878 1,049,635 1,047,423 914,968 Subordinated debentures 292,474 295,792 296,021 297,284 200,038 Other liabilities 695,418 680,897 814,192 613,667 558,655 -------------- --------------- ------------- --------------- ------------- TOTAL LIABILITIES 14,992,186 14,722,458 14,695,672 14,100,540 13,620,217 Shareholders' equity 1,572,104 1,547,781 1,507,039 1,487,335 1,440,258 -------------- --------------- ------------- --------------- ------------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 16,564,290 $ 16,270,239 $ 16,202,711 $ 15,587,875 $ 15,060,475 ============== =============== ============= =============== =============
STATEMENTS OF EARNINGS - UNAUDITED BOK FINANCIAL CORPORATION (In thousands, except per share data) Quarter Ended Six Months Ended --------------------------------- ------------------------------- June 30, June 30, --------------------------------- ------------------------------- 2006 2005 2006 2005 -------------- --------------- ------------- --------------- Interest revenue $ 240,440 $ 186,334 $ 464,025 $ 356,638 Interest expense 119,334 73,801 225,593 136,511 -------------- --------------- ------------- --------------- Net interest revenue 121,106 112,533 238,432 220,127 Provision for credit losses 3,795 2,015 7,195 4,015 -------------- --------------- ------------- --------------- Net interest revenue after provision for credit losses 117,311 110,518 231,237 216,112 Other operating revenue Brokerage and trading revenue 11,427 10,404 23,437 21,740 Transaction card revenue 19,951 17,979 38,459 34,522 Trust fees and commissions 17,751 16,259 35,696 32,275 Deposit service charges and fees 26,341 25,347 50,327 47,520 Mortgage banking revenue 7,195 8,550 13,984 14,128 Other revenue 10,931 8,160 21,742 15,557 -------------- --------------- ------------- --------------- Total fees and commissions 93,596 86,699 183,645 165,742 Gain on asset sales 39 5,937 957 6,909 Gain (loss) on securities, net (2,583) 2,266 (3,804) (371) Gain (loss) on derivatives, net (172) (311) (481) 467 -------------- --------------- ------------- --------------- Total other operating revenue 90,880 94,591 180,317 172,747 Other operating expense Personnel 72,369 65,333 143,601 123,772 Business promotion 4,802 3,870 9,605 8,300 Professional fees and services 4,362 4,492 8,276 8,111 Net occupancy and equipment 13,199 12,650 26,225 24,744 Data processing and communications 16,157 16,381 33,152 31,480 Printing, postage and supplies 4,001 3,629 7,906 7,244 Net (gains) losses and operating expenses of repossessed assets 54 316 273 624 Amortization of intangible assets 1,359 1,808 2,729 3,345 Mortgage banking costs 2,839 3,387 5,926 7,000 Change in fair value of mortgage servicing rights (3,613) - (10,694) - Provision for impairment of mortgage servicing rights - 7,088 - 1,464 Other expense 6,598 7,056 12,507 12,085 -------------- --------------- ------------- --------------- Total other operating expense 122,127 126,010 239,506 228,169 Income before taxes 86,064 79,099 172,048 160,690 Federal and state income taxes 31,080 28,634 62,316 58,170 -------------- --------------- ------------- --------------- Net income $ 54,984 $ 50,465 $ 109,732 $ 102,520 ============== =============== ============= =============== Average shares outstanding: Basic 66,775,117 63,779,343 66,745,422 61,618,602 Diluted 67,317,681 66,986,428 67,289,335 66,967,146 Earnings per share: Basic $ 0.82 $ 0.79 $ 1.64 $ 1.66 ============== =============== ============= =============== Diluted $ 0.82 $ 0.75 $ 1.63 $ 1.53 ============== =============== ============= ===============
FINANCIAL HIGHLIGHTS - UNAUDITED BOK FINANCIAL CORPORATION (In thousands, except ratio and share data) Quarter Ended -------------------------------------------------------------------------------------- June 30, March 31, December 31, September 30, June 30, 2006 2006 2005 2005 2005 -------------- --------------- ------------- --------------- ------------- Capital: Period-end shareholders' equity $ 1,583,010 $ 1,565,435 $ 1,539,154 $ 1,513,542 $ 1,480,975 Risk-based capital ratios: Tier 1 10.00% 10.16% 9.84% 9.71% 9.85% Total capital 12.14% 12.41% 12.10% 12.04% 12.55% Leverage ratio 8.74% 8.60% 8.30% 8.01% 8.07% Common stock: Book value per share $ 23.68 $ 23.41 $ 23.07 $ 22.75 $ 22.29 Market value per share: High $ 49.60 $ 47.65 $ 48.53 $ 49.30 $ 46.02 Low $ 46.85 $ 44.40 $ 43.54 $ 45.26 $ 40.09 Cash dividends paid $ 10,024 $ 6,694 $ 6,664 $ 6,656 $ 6,649 Dividend payout ratio 18.23% 12.23% 13.84% 13.10% 13.18% Shares outstanding, net 66,840,241 66,883,037 66,702,408 66,520,927 66,454,330 Stock buy-back program: Shares repurchased 108,322 61,408 - - 30,000 Amount $ 5,259,931 $ 2,759,075 $ - $ - $ 1,250,704 -------------- --------------- ------------- --------------- ------------- Average price per share $ 48.56 $ 44.93 $ $ - - $ 41.69 ============== =============== ============= =============== ============= Performance ratios: Return on average assets 1.33% 1.36% 1.18% 1.29% 1.34% Return on average equity 14.03% 14.35% 12.68% 13.56% 14.05% Net interest margin 3.40% 3.39% 3.34% 3.32% 3.45% Efficiency ratio 58.12% 59.58% 60.28% 59.36% 59.32% Other data: Trust assets $ 28,746,686 $ 29,091,040 $ 28,464,745 $ 27,598,958 $ 25,971,994 Mortgage servicing portfolio $ 4,536,605 $ 4,520,976 $ 4,056,427 $ 4,053,885 $ 4,040,178 Mortgage loan refinances to total fundings 21.71% 27.59% 27.12% 27.19% 24.08% Tax equivalent adjustment $ 1,640 $ 1,522 $ 1,392 $ 1,289 $ 1,245
QUARTERLY EARNINGS TRENDS - UNAUDITED BOK FINANCIAL CORPORATION (In thousands, except ratio and per share data) Quarter Ended -------------------------------------------------------------------------------------- June 30, March 31, December 31, September 30, June 30, 2006 2006 2005 2005 2005 -------------- --------------- ------------- --------------- ------------- Interest revenue $ 240,440 $ 223,585 $ 214,240 $ 199,056 $ 186,334 Interest expense 119,334 106,259 97,854 86,228 73,801 -------------- --------------- ------------- --------------- ------------- Net interest revenue 121,106 117,326 116,386 112,828 112,533 Provision for credit losses 3,795 3,400 4,450 3,976 2,015 -------------- --------------- ------------- --------------- ------------- Net interest revenue after provision for credit losses 117,311 113,926 111,936 108,852 110,518 Other operating revenue Brokerage and trading revenue 11,427 12,010 11,116 11,366 10,404 Transaction card revenue 19,951 18,508 18,988 18,526 17,979 Trust fees and commissions 17,751 17,945 16,536 16,376 16,259 Deposit service charges and fees 26,341 23,986 25,222 25,619 25,347 Mortgage banking revenue 7,195 6,789 7,018 9,535 8,550 Other revenue 10,931 10,811 10,067 9,490 8,160 -------------- --------------- ------------- --------------- ------------- Total fees and commissions 93,596 90,049 88,947 90,912 86,699 Gain on asset sales 39 918 71 81 5,937 Gain (loss) on securities, net (2,583) (1,221) (1,780) (4,744) 2,266 Gain (loss) on derivatives, net (172) (309) 106 606 (311) -------------- --------------- ------------- --------------- ------------- Total other operating revenue 90,880 89,437 87,344 86,855 94,591 Other operating expense Personnel 72,369 71,232 68,666 66,533 65,333 Business promotion 4,802 4,803 5,170 4,494 3,870 Professional fees and services 4,362 3,914 4,534 3,951 4,492 Net occupancy and equipment 13,199 13,026 12,864 12,587 12,650 Data processing and communications 16,157 16,995 18,054 17,492 16,381 Printing, postage and supplies 4,001 3,905 3,976 3,846 3,629 Net (gains) losses and operating expenses of repossessed assets 54 219 335 (387) 316 Amortization of intangible assets 1,359 1,370 1,797 1,801 1,808 Mortgage banking costs 2,839 3,087 3,294 4,268 3,387 Change in fair value of mortgage servicing rights (3,613) (7,081) - - - Provision (recovery) for impairment of mortgage servicing rights - - (708) (4,671) 7,088 Other expense 6,598 5,909 5,921 7,120 7,056 -------------- --------------- ------------- --------------- ------------- Total other operating expense 122,127 117,379 123,903 117,034 126,010 Income before taxes 86,064 85,984 75,377 78,673 79,099 Federal and state income taxes 31,080 31,236 27,219 27,846 28,634 -------------- --------------- ------------- --------------- ------------- Net income $ 54,984 $ 54,748 $ 48,158 $ 50,827 $ 50,465 ============== =============== ============= =============== ============= Average shares outstanding: Basic 66,775,117 66,715,396 66,527,093 66,427,447 63,779,343 Diluted 67,317,681 67,260,659 67,146,614 67,105,539 66,986,428 Earnings per share: Basic $ 0.82 $ 0.82 $ 0.72 $ 0.77 $.0.79 Diluted $ 0.82 $ 0.81 $ 0.72 $ 0.76 $.0.75
LOANS BY PRINCIPAL MARKET AREA - UNAUDITED BOK FINANCIAL CORPORATION (In thousands) Quarter Ended -------------------------------------------------------------------------------------- June 30, March 31, December 31, September 30, June 30, 2006 2006 2005 2005 2005 -------------- --------------- ------------- --------------- ------------- Oklahoma: Commercial $ 3,212,851 $ 3,074,406 $ 3,159,683 $ 3,101,209 $ 3,026,311 Commercial real estate 1,019,815 936,030 862,700 890,737 856,617 Residential mortgage 855,087 847,848 842,757 839,344 827,431 Residential mortgage held for sale 54,026 40,299 51,666 46,306 74,410 Consumer 479,508 468,920 466,180 472,899 425,318 -------------- --------------- ------------- --------------- ------------- Total Oklahoma 5,621,287 5,367,503 5,382,986 5,350,495 5,210,087 Texas: Commercial 1,547,274 1,420,860 1,356,611 1,294,606 1,182,307 Commercial real estate 670,969 604,413 569,921 537,576 509,472 Residential mortgage 212,987 200,957 199,726 196,593 196,457 Consumer 84,212 87,669 89,017 89,329 90,245 -------------- --------------- ------------- --------------- ------------- Total Texas 2,515,442 2,313,899 2,215,275 2,118,104 1,978,481 New Mexico: Commercial 334,984 348,930 383,325 354,087 340,378 Commercial real estate 237,020 228,955 232,564 223,236 219,175 Residential mortgage 73,281 68,810 65,784 65,203 63,821 Consumer 13,404 13,820 15,137 15,195 15,813 -------------- --------------- ------------- --------------- ------------- Total New Mexico 658,689 660,515 696,810 657,721 639,187 Arkansas: Commercial 80,539 74,423 79,719 54,703 54,703 Commercial real estate 87,080 80,529 75,483 85,600 76,803 Residential mortgage 15,067 13,069 13,044 12,097 11,674 Consumer 51,166 33,548 25,659 20,397 4,560 -------------- --------------- ------------- --------------- ------------- Total Arkansas 233,852 201,569 193,905 172,797 147,740 Colorado: Commercial 299,380 267,928 270,108 219,208 210,142 Commercial real estate 155,453 134,771 133,537 132,741 125,120 Residential mortgage 21,113 20,383 21,918 26,186 27,292 Consumer 31,939 31,487 27,871 26,126 27,996 -------------- --------------- ------------- --------------- ------------- Total Colorado 507,885 454,569 453,434 404,261 390,550 Arizona: Commercial 63,019 52,274 50,489 43,877 45,938 Commercial real estate 153,870 120,262 115,697 102,734 74,672 Residential mortgage 33,913 26,270 26,102 27,136 24,999 Consumer 6,511 5,098 5,280 6,443 3,026 -------------- --------------- ------------- --------------- ------------- Total Arizona 257,313 203,904 197,568 180,190 148,635 -------------- --------------- ------------- --------------- ------------- TOTAL BOK FINANCIAL $ 9,794,468 $ 9,201,959 $ 9,139,97859 $ 8,883,568 $ 8,514,680 ============== =============== ============= =============== =============
DEPOSITS BY PRINCIPAL MARKET AREA - UNAUDITED BOK FINANCIAL CORPORATION (In thousands) Quarter Ended -------------------------------------------------------------------------------------- June 30, March 31, December 31, September 30, June 30, 2006 2006 2005 2005 2005 -------------- --------------- ------------- --------------- ------------- Oklahoma: Demand $ 908,034 $ 950,582 $ 1,003,284 $ 959,169 $ 1,028,640 Interest-bearing: Transaction 2,732,312 2,937,228 3,002,610 2,411,175 2,367,511 Savings 88,218 93,093 85,837 86,220 89,972 Time 2,662,770 2,623,352 2,564,337 2,728,224 2,450,730 -------------- --------------- ------------- --------------- ------------- Total interest-bearing 5,483,300 5,653,673 5,652,784 5,225,619 4,908,213 -------------- --------------- ------------- --------------- ------------- Total Oklahoma 6,391,334 6,604,255 6,656,068 6,184,788 5,936,853 -------------- --------------- ------------- --------------- ------------- Texas: Demand 638,157 551,411 615,732 533,475 478,855 Interest-bearing: Transaction 1,530,491 1,455,856 1,535,570 1,299,279 1,292,938 Savings 26,370 27,827 27,398 29,620 29,635 Time 717,027 726,530 735,731 633,785 606,528 -------------- --------------- ------------- --------------- ------------- Total interest-bearing 2,273,888 2,210,213 2,298,699 1,962,684 1,929,101 -------------- --------------- ------------- --------------- ------------- Total Texas 2,912,045 2,761,624 2,914,431 2,496,159 2,407,956 -------------- --------------- ------------- --------------- ------------- New Mexico: Demand 147,307 159,125 129,289 155,517 139,107 Interest-bearing: Transaction 410,166 408,160 381,099 338,706 306,230 Savings 16,860 17,805 17,839 17,614 17,875 Time 494,426 483,428 453,314 454,561 449,180 -------------- --------------- ------------- --------------- ------------- Total interest-bearing 921,452 909,393 852,252 810,881 773,285 -------------- --------------- ------------- --------------- ------------- Total New Mexico 1,068,759 1,068,518 981,541 966,398 912,392 -------------- --------------- ------------- --------------- ------------- Arkansas: Demand 11,521 11,629 10,429 13,772 10,890 Interest-bearing: Transaction 20,577 26,675 22,354 23,335 24,816 Savings 1,072 1,051 1,058 1,268 1,284 Time 69,418 73,082 75,034 81,510 83,388 -------------- --------------- ------------- --------------- ------------- Total interest-bearing 91,067 100,808 98,446 106,113 109,488 -------------- --------------- ------------- --------------- ------------- Total Arkansas 102,588 112,437 108,875 119,885 120,378 -------------- --------------- ------------- --------------- ------------- Colorado: Demand 45,214 56,419 61,647 51,978 32,044 Interest-bearing: Transaction 245,504 258,801 258,668 216,718 228,881 Savings 13,786 16,315 17,772 16,568 16,791 Time 379,239 309,068 264,020 221,753 117,130 -------------- --------------- ------------- --------------- ------------- Total interest-bearing 638,529 584,184 540,460 455,039 362,802 -------------- --------------- ------------- --------------- ------------- Total Colorado 683,743 640,603 602,107 507,017 394,846 -------------- --------------- ------------- --------------- ------------- Arizona: Demand 73,696 55,421 45,567 42,784 60,412 Interest-bearing: Transaction 67,841 57,400 56,994 71,510 56,624 Savings 2,702 3,380 4,111 3,862 4,771 Time 4,077 4,608 5,624 6,802 6,574 -------------- --------------- ------------- --------------- ------------- Total interest-bearing 74,620 65,388 66,729 82,174 67,969 -------------- --------------- ------------- --------------- ------------- Total Arizona 148,316 120,809 112,296 124,958 128,381 -------------- --------------- ------------- --------------- ------------- TOTAL BOK FINANCIAL $ 11,306,785 $ 11,308,246 $ 11,375,318 $ 10,399,205 $ 9,900,806 ============== =============== ============= =============== =============
NET INTEREST MARGIN TREND - UNAUDITED BOK FINANCIAL CORPORATION Quarter Ended -------------------------------------------------------------------------------------- June 30, March 31, December 31, September 30, June 30, 2006 2006 2005 2005 2005 -------------- --------------- ------------- --------------- ------------- TAX-EQUIVALENT ASSETS YIELDS Trading securities 4.86% 5.07% 4.68% 4.66% 5.69% Funds sold and resell agreements 5.09% 4.58% 4.00% 3.41% 2.96% Securities: Taxable 4.75% 4.60% 4.44% 4.28% 4.32% Tax-exempt 5.21% 5.36% 5.05% 4.96% 5.23% -------------- --------------- ------------- --------------- ------------- Total securities 4.78% 4.64% 4.47% 4.31% 4.36% Total loans 7.67% 7.35% 6.98% 6.66% 6.40% Less Allowance for loan losses - - - - - -------------- --------------- ------------- --------------- ------------- Total loans, net 7.76% 7.44% 7.06% 6.75% 6.49% -------------- --------------- ------------- --------------- ------------- Total tax-equivalent yield on earning assets 6.71% 6.42% 6.12% 5.83% 5.68% COST OF INTEREST-BEARING LIABILITIES Interest-bearing deposits: Interest-bearing transaction 2.61% 2.37% 1.98% 1.66% 1.49% Savings 0.92% 0.86% 0.75% 0.70% 0.69% Time 4.26% 4.03% 3.77% 3.53% 3.41% -------------- --------------- ------------- --------------- ------------- Total interest-bearing deposits 3.30% 3.06% 2.78% 2.50% 2.34% Funds purchased and repurchase agreements 4.87% 4.33% 3.92% 3.40% 2.93% Other borrowings 5.09% 4.60% 4.08% 3.60% 3.17% Subordinated debt 6.76% 6.74% 6.28% 5.97% 5.98% -------------- --------------- ------------- --------------- ------------- Total cost of interest-bearing liabilities 3.73% 3.43% 3.14% 2.84% 2.58% -------------- --------------- ------------- --------------- ------------- Tax-equivalent net interest revenue spread 2.98% 2.99% 2.98% 2.99% 3.10% Effect of noninterest-bearing funding sources 0.42% 0.40% 0.36% 0.33% 0.35% -------------- --------------- ------------- --------------- ------------- Tax-equivalent net interest margin 3.40% 3.39% 3.34% 3.32% 3.45% ============== =============== ============= =============== =============
CREDIT QUALITY INDICATORS BOK FINANCIAL CORPORATION (In thousands, except ratios) Quarter Ended ----------------------------------------------------------------------------------- June 30, March 31, December 31, September 30, June 30, 2006 2006 2005 2005 2005 ----------- --------------- ------------- --------------- ------------- Nonperforming assets: Nonaccruing loans $ 30,976 $ 32,229 $ 25,162 $ 37,353 $ 40,527 Real estate and other repossessed assets 8,257 8,196 8,476 5,069 5,062 ----------- --------------- ------------- --------------- ------------- Total nonperforming assets $ 39,233 $ 40,425 $ 33,638 $ 42,422 $ 45,589 =========== =============== ============= =============== ============= Performing loans 90 days past due $ 9,630 $ 3,919 $ 8,708 $ 10,027 $ 7,125 Gross charge-offs $ 5,881 $ 4,149 $ 9,579 $ 5,311 $ 5,044 Recoveries 2,085 2,564 2,164 1,977 2,757 ----------- --------------- ------------- --------------- ------------- Net charge-offs $ 3,796 $ 1,585 $ 7,415 $ 3,334 $ 2,287 =========== =============== ============= =============== ============= Provision for credit losses $ 3,795 $ 3,400 $ 4,450 $ 3,976 $ 2,015 Reserve for loan losses to period end loans (A) 1.07% 1.14% 1.14% 1.24% 1.29% Combined reserves for credit losses to period end loans 1.30% 1.38% 1.37% 1.44% 1.50% Nonperforming assets to period end loans (A) and repossessed assets 0.40% 0.44% 0.37% 0.48% 0.54% Net charge-offs (annualized) to average loans (A) 0.16% 0.07% 0.33% 0.16% 0.11% Reserve for loan losses to nonaccruing loans 337.44% 323.13% 412.83% 293.48% 268.67% Combined reserves for credit losses to nonaccruing loans 407.62% 391.77% 494.60% 341.11% 312.81% (A) excluding residential mortgage loans held for sale
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