EX-99 3 fs063008.txt (B) FINANCIAL STATEMENTS Exhibit 99(b) BALANCE SHEETS BOK FINANCIAL CORPORATION (In thousands) Period Ended --------------------------------------------------- June 30, December 31, June 30, 2008 2007 2007 -------------- --------------- ------------- (Unaudited) (Unaudited) ASSETS Cash and due from banks $ 712,324 $ 717,259 $ 596,827 Trading securities 62,532 45,724 30,977 Funds sold and resell agreements 52,005 173,154 50,635 Securities: Available for sale 5,926,602 5,650,540 5,038,966 Investment 245,754 247,949 265,507 Mortgage trading securities 98,269 154,701 133,967 -------------- --------------- ------------- Total securities 6,270,625 6,053,190 5,438,440 Loans: Commercial 7,064,573 6,737,505 6,548,832 Commercial real estate 2,827,497 2,750,472 2,791,980 Residential mortgage 1,607,597 1,531,296 1,403,298 Residential mortgage held for sale 119,944 76,677 112,596 Consumer 1,044,371 921,297 842,676 -------------- --------------- ------------- Total loans 12,663,982 12,017,247 11,699,382 Less reserve for loan losses (159,018) (126,677) (119,759) -------------- --------------- ------------- Loans, net of reserve 12,504,964 11,890,570 11,579,623 Premises and equipment, net 266,435 258,786 241,579 Accrued revenue receivable 159,206 138,243 160,595 Intangible assets, net 365,060 368,353 377,957 Mortgage servicing rights, net 72,103 70,009 74,067 Real estate and other repossessed assets 21,025 9,475 7,664 Bankers' acceptances 16,031 1,780 31,702 Derivative contracts 1,430,874 502,446 264,845 Cash surrender value of bank-owned life insurance 231,527 229,540 224,250 Receivable on unsettled securities trades 39,052 10,071 - Other assets 295,719 199,101 202,075 -------------- --------------- ------------- TOTAL ASSETS $ 22,499,482 $ 20,667,701 $ 19,281,236 ============== =============== ============= LIABILITIES AND SHAREHOLDERS' EQUITY Deposits: Demand $ 1,951,939 $ 1,875,946 $ 1,701,756 Interest-bearing transaction 7,650,255 7,096,339 6,508,677 Savings 162,138 156,368 207,251 Time 4,361,384 4,330,638 4,744,570 -------------- --------------- ------------- Total deposits 14,125,716 13,459,291 13,162,254 Funds purchased and repurchase agreements 3,101,425 3,225,131 2,317,846 Other borrowings 2,153,853 1,027,564 888,362 Subordinated debentures 398,340 398,273 547,896 Accrued interest, taxes, and expense 100,208 124,029 104,224 Bankers' acceptances 16,031 1,780 31,702 Due on unsettled securities trades - - 71,838 Derivative contracts 456,379 341,677 217,140 Other liabilities 160,310 154,572 144,066 -------------- --------------- ------------- TOTAL LIABILITIES 20,512,262 18,732,317 17,485,328 Shareholders' equity: Capital, surplus and retained earnings 2,051,598 1,966,618 1,885,435 Accumulated other comprehensive loss (64,378) (31,234) (89,527) -------------- --------------- ------------- TOTAL SHAREHOLDERS' EQUITY 1,987,220 1,935,384 1,795,908 -------------- --------------- ------------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 22,499,482 $ 20,667,701 $ 19,281,236 ============== =============== =============
AVERAGE BALANCE SHEETS - UNAUDITED BOK FINANCIAL CORPORATION (In thousands) Quarter Ended ---------------------------------------------------------------------------------- June 30, March 31, December 31, September 30, June 30, 2008 2008 2007 2007 2007 -------------- --------------- ------------- -------------- ------------- ASSETS Trading securities $ 74,058 $ 74,957 $ 29,303 $ 24,413 $ 32,897 Funds sold and resell agreements 72,444 80,735 86,948 101,281 67,057 Securities: Available for sale 5,880,844 5,438,655 5,574,417 5,183,056 4,967,974 Investment 249,723 248,974 249,350 246,273 261,518 Mortgage trading securities 155,612 201,199 138,306 137,863 139,695 -------------- --------------- ------------- -------------- ------------- Total securities 6,286,179 5,888,828 5,962,073 5,567,192 5,369,187 Loans: Commercial 6,987,727 6,841,006 6,619,760 6,487,139 6,347,091 Commercial real estate 2,797,345 2,784,640 2,702,449 2,775,184 2,705,280 Residential mortgage 1,602,799 1,510,238 1,504,594 1,472,537 1,375,620 Residential mortgage held for sale 105,925 84,291 75,082 93,042 93,804 Consumer 1,033,502 961,104 904,358 881,736 816,346 -------------- --------------- ------------- -------------- ------------- Total loans 12,527,297 12,181,279 11,806,242 11,709,638 11,338,140 Less allowance for loan losses (145,520) (131,709) (125,996) (123,059) (118,505) -------------- --------------- ------------- -------------- ------------- Total loans, net 12,381,777 12,049,570 11,680,246 11,586,579 11,219,635 -------------- --------------- ------------- -------------- ------------- Total earning assets 18,814,458 18,094,090 17,758,570 17,279,465 16,688,776 Cash and due from banks 524,922 543,232 546,704 529,282 534,385 Cash surrender value of bank-owned life insurance 229,731 230,283 227,810 225,206 218,007 Derivative contracts 897,236 513,696 387,876 255,673 204,647 Other assets 1,142,910 1,115,752 1,061,655 1,046,749 912,255 -------------- --------------- ------------- -------------- ------------- TOTAL ASSETS $ 21,609,257 $ 20,497,053 $ 19,982,615 $ 19,336,375 $ 18,558,070 ============== =============== ============= ============== ============= LIABILITIES AND SHAREHOLDERS' EQUITY Deposits: Demand $ 1,336,552 $ 1,236,552 $ 1,293,419 $ 1,300,280 $ 1,295,930 Interest-bearing transaction 7,717,777 7,473,670 7,016,136 6,683,056 6,414,014 Savings 159,798 156,953 160,170 200,362 158,718 Time 4,076,167 4,225,141 4,544,802 4,798,812 4,507,053 -------------- --------------- ------------- -------------- ------------- Total deposits 13,290,294 13,092,316 13,014,527 12,982,510 12,375,715 Funds purchased and repurchase agreements 3,126,110 3,061,783 3,158,153 2,603,372 2,627,230 Other borrowings 2,267,076 1,340,846 936,353 880,894 866,096 Subordinated debentures 398,336 398,241 398,109 471,458 410,883 Derivative contracts 239,211 297,660 276,992 198,438 152,105 Other liabilities 302,833 321,061 303,582 378,723 335,295 -------------- --------------- ------------- -------------- ------------- TOTAL LIABILITIES 19,623,860 18,511,907 18,087,716 17,515,395 16,767,324 Shareholders' equity 1,985,397 1,985,146 1,894,899 1,820,980 1,790,746 -------------- --------------- ------------- -------------- ------------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 21,609,257 $ 20,497,053 $ 19,982,615 $ 19,336,375 $ 18,558,070 ============== =============== ============= ============== =============
STATEMENTS OF EARNINGS - UNAUDITED BOK FINANCIAL CORPORATION (In thousands, except per share data) Quarter Ended Six Months Ended --------------------------------- ------------------------------- June 30, June 30, --------------------------------- ------------------------------- 2008 2007 2008 2007 -------------- --------------- ------------- --------------- Interest revenue $ 260,226 $ 288,685 $ 536,267 $ 563,261 Interest expense 101,147 153,772 230,060 299,510 -------------- --------------- ------------- --------------- Net interest revenue 159,079 134,913 306,207 263,751 Provision for credit losses 38,310 7,820 55,881 14,320 -------------- --------------- ------------- --------------- Net interest revenue after provision for credit losses 120,769 127,093 250,326 249,431 Other operating revenue Brokerage and trading revenue 14,536 13,317 38,449 26,599 Transaction card revenue 25,786 22,917 49,344 43,101 Trust fees and commissions 20,940 19,458 41,736 38,453 Deposit service charges and fees 30,199 26,797 57,885 51,395 Mortgage banking revenue 7,198 4,034 14,415 9,554 Bank-owned life insurance 2,658 2,525 5,170 4,924 Margin asset fees 4,460 969 6,427 1,727 Other revenue 7,824 6,947 14,039 12,798 -------------- --------------- ------------- --------------- Total fees and commissions 113,601 96,964 227,465 188,551 Gain (loss) on asset sales 216 (348) 181 346 Gain (loss) on securities, net (5,242) (6,262) (622) (6,825) Gain (loss) on derivatives, net (2,961) (183) (848) (112) -------------- --------------- ------------- --------------- Total other operating revenue 105,614 90,171 226,176 181,960 Other operating expense Personnel 89,597 80,054 177,703 158,382 Business promotion 5,777 5,391 10,416 9,961 Professional fees and services 6,973 5,963 12,621 10,837 Net occupancy and equipment 15,100 13,860 30,161 27,066 Insurance 2,626 693 6,336 1,415 Data processing and communications 19,523 18,402 38,416 35,376 Printing, postage and supplies 4,156 4,179 8,575 8,148 Net (gains) losses and operating expenses of repossessed assets (229) 192 149 399 Amortization of intangible assets 1,885 1,443 3,810 2,579 Mortgage banking costs 6,054 2,485 11,734 5,009 Change in fair value of mortgage servicing rights 767 (5,061) 2,529 (3,897) Visa retrospective responsibility obligation - - (2,767) - Other expense 7,039 6,530 12,989 10,967 -------------- --------------- ------------- --------------- Total other operating expense 159,268 134,131 312,672 266,242 Income before taxes 67,115 83,133 163,830 165,149 Federal and state income taxes 23,432 29,270 57,882 58,493 -------------- --------------- ------------- --------------- Net income $ 43,683 $ 53,863 $ 105,948 $ 106,656 ============== =============== ============= =============== Average shares outstanding: Basic 67,282,501 67,116,902 67,246,250 67,099,752 Diluted 67,662,197 67,606,330 67,610,014 67,589,146 Earnings per share: Basic $ 0.65 $ 0.80 $ 1.58 $ 1.59 ============== =============== ============= =============== Diluted $ 0.65 $ 0.80 $ 1.57 $ 1.58 ============== =============== ============= ===============
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, 2008 2008 2007 2007 2007 -------------- --------------- ------------- --------------- ------------- Capital: Period-end shareholders' equity $ 1,987,220 $ 1,992,570 $ 1,935,384 $ 1,868,563 $ 1,795,908 Risk-based capital ratios: Tier 1 9.09% 9.11% 9.38% 9.30% 9.12% Total capital 12.09% 12.12% 12.54% 12.53% 12.36% Leverage ratio 8.17% 8.22% 8.20% 8.17% 8.30% Period-end tangible capital ratio 7.33% 7.83% 7.72% 7.67% 7.50% Common stock: Book value per share $ 29.45 $ 29.57 $ 28.75 $ 27.86 $ 26.69 Market value per share: High $ 60.74 $ 55.23 $ 55.43 $ 54.20 $ 55.12 Low $ 49.11 $ 46.82 $ 51.44 $ 47.37 $ 48.58 Cash dividends paid $ 15,180 $ 13,484 $ 13,438 $ 13,445 $ 13,452 Dividend payout ratio 34.75% 21.66% 26.27% 22.47% 24.97% Shares outstanding, net 67,488,388 67,383,318 67,306,380 67,062,517 67,280,107 Stock buy-back program: Shares repurchased - 91,114 33,583 261,916 18,783 Amount $ - $ 4,655,477 $ 1,770,368 $ 13,359,753 $ 967,122 -------------- --------------- ------------- --------------- ------------- Average price per share $ - $ 51.10 $ 52.72 $ 51.01 $ 51.49 ============== =============== ============= =============== ============= Performance ratios: Return on average assets 0.81% 1.22% 1.02% 1.23% 1.16% Return on average equity 8.85% 12.62% 10.71% 13.04% 12.06% Net interest margin 3.45% 3.31% 3.22% 3.27% 3.31% Efficiency ratio 57.69% 57.60% 60.04% 60.08% 59.50% Other data: Gain (loss) on economic hedge of mortgage servicing rights $ (5,518) $ 191 $ 1,288 $ 3,654 $ (5,682) Trust assets $ 34,433,874 $ 35,524,730 $ 36,288,592 $ 34,875,758 $ 33,711,040 Mortgage servicing portfolio $ 5,075,285 $ 4,967,384 $ 4,893,011 $ 4,824,420 $ 4,644,724 Mortgage loan fundings during the quarter $ 288,937 $ 256,617 $ 239,620 $ 246,097 $ 257,074 Mortgage loan refinances to total fundings 36.76% 51.19% 35.49% 26.51% 23.88% Tax equivalent adjustment $ 2,084 $ 2,154 $ 2,502 $ 2,464 $ 2,069
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, 2008 2008 2007 2007 2007 -------------- --------------- ------------- -------------- -------------- Interest revenue $ 260,226 $ 276,041 $ 297,096 $ 300,380 $ 288,685 Interest expense 101,147 128,913 155,807 160,935 153,772 -------------- --------------- ------------- -------------- -------------- Net interest revenue 159,079 147,128 141,289 139,445 134,913 Provision for credit losses 38,310 17,571 13,200 7,201 7,820 -------------- --------------- ------------- -------------- -------------- Net interest revenue after provision for credit losses 120,769 129,557 128,089 132,244 127,093 Other operating revenue Brokerage and trading revenue 14,536 23,913 20,402 15,541 13,317 Transaction card revenue 25,786 23,558 23,512 23,812 22,917 Trust fees and commissions 20,940 20,796 20,145 19,633 19,458 Deposit service charges and fees 30,199 27,686 29,938 27,885 26,797 Mortgage banking revenue 7,198 7,217 6,912 5,809 4,034 Bank-owned life insurance 2,658 2,512 2,614 2,520 2,525 Margin asset fees 4,460 1,967 2,012 1,061 969 Other revenue 7,824 6,215 7,819 7,456 6,947 -------------- --------------- ------------- -------------- -------------- Total fees and commissions 113,601 113,864 113,354 103,717 96,964 Gain (loss) on asset sales 216 (35) (1,316) 42 (348) Gain (loss) on securities, net (5,242) 4,620 (6,251) 4,748 (6,262) Gain (loss) on derivatives, net (2,961) 2,113 1,529 865 (183) -------------- --------------- ------------- -------------- -------------- Total other operating revenue 105,614 120,562 107,316 109,372 90,171 Other operating expense Personnel 89,597 88,106 84,512 85,811 80,054 Business promotion 5,777 4,639 6,528 5,399 5,391 Professional fees and services 6,973 5,648 6,209 5,749 5,963 Net occupancy and equipment 15,100 15,061 15,466 14,752 13,860 Insurance 2,626 3,710 843 759 693 Data processing and communications 19,523 18,893 19,086 18,271 18,402 Printing, postage and supplies 4,156 4,419 4,221 4,201 4,179 Net (gains) losses and operating expenses of repossessed assets (229) 378 120 172 192 Amortization of intangible assets 1,885 1,925 2,382 2,397 1,443 Mortgage banking costs 6,054 5,681 4,225 3,877 2,485 Change in fair value of mortgage servicing rights 767 1,762 3,344 3,446 (5,061) Visa retrospective responsibility obligation - (2,767) 2,767 - - Other expense 7,039 5,949 8,024 6,184 6,530 -------------- --------------- ------------- -------------- -------------- Total other operating expense 159,268 153,404 157,727 151,018 134,131 Income before taxes 67,115 96,715 77,678 90,598 83,133 Federal and state income taxes 23,432 34,450 26,518 30,750 29,270 -------------- --------------- ------------- -------------- -------------- Net income $ 43,683 $ 62,265 $ 51,160 $ 59,848 $ 53,863 ============== =============== ============= ============== ============== Average shares outstanding: Basic 67,282,501 67,202,128 67,051,499 67,078,378 67,116,902 Diluted 67,662,197 67,549,960 67,482,798 67,537,643 67,606,330 Earnings per share: Basic $ 0.65 $ 0.93 $ 0.76 $ 0.89 $ 0.80 Diluted $ 0.65 $ 0.92 $ 0.76 $ 0.89 $ 0.80
LOANS BY PRINCIPAL MARKET AREA - UNAUDITED BOK FINANCIAL CORPORATION (In thousands) Quarter Ended --------------------------------------------------------------------------------------- June 30, March 31, December 31, September 30, June 30, 2008 2008 2007 2007 2007 -------------- --------------- ------------- --------------- -------------- Oklahoma: Commercial $ 3,254,179 $ 3,248,424 $ 3,219,176 $ 3,113,412 $ 3,317,877 Commercial real estate 875,546 940,686 890,703 875,135 897,838 Residential mortgage 1,099,277 1,080,882 1,080,483 1,058,142 971,692 Residential mortgage held for sale 119,944 91,905 76,677 73,488 112,596 Consumer 601,184 586,695 576,070 562,631 540,986 -------------- --------------- ------------- --------------- -------------- Total Oklahoma 5,950,130 5,948,592 5,843,109 5,682,808 5,840,989 Texas: Commercial 2,166,925 2,124,192 1,985,645 1,941,731 1,856,049 Commercial real estate 889,364 838,781 846,303 913,910 888,118 Residential mortgage 299,996 262,305 275,533 266,850 263,344 Consumer 204,081 168,949 142,958 133,391 135,659 -------------- --------------- ------------- --------------- -------------- Total Texas 3,560,366 3,394,227 3,250,439 3,255,882 3,143,170 New Mexico: Commercial 451,225 472,543 473,262 446,573 434,394 Commercial real estate 271,177 258,731 252,884 256,994 263,342 Residential mortgage 89,469 85,834 84,336 83,274 81,521 Consumer 16,977 14,977 16,105 15,769 13,225 -------------- --------------- ------------- --------------- -------------- Total New Mexico 828,848 832,085 826,587 802,610 792,482 Arkansas: Commercial 96,775 100,489 106,328 117,993 103,534 Commercial real estate 124,049 130,956 124,317 107,588 102,537 Residential mortgage 19,527 16,621 16,393 18,411 22,508 Consumer 197,979 180,551 163,626 148,404 129,431 -------------- --------------- ------------- --------------- -------------- Total Arkansas 438,330 428,617 410,664 392,396 358,010 Colorado: Commercial 489,844 486,525 490,373 491,204 480,097 Commercial real estate 276,062 261,099 252,537 247,802 274,610 Residential mortgage 38,517 31,011 26,556 26,322 18,516 Consumer 16,367 17,552 16,457 18,623 18,470 -------------- --------------- ------------- --------------- -------------- Total Colorado 820,790 796,187 785,923 783,951 791,693 Arizona: Commercial 207,173 174,360 157,341 147,103 124,765 Commercial real estate 351,058 361,567 342,673 349,840 326,951 Residential mortgage 53,321 50,719 46,269 43,510 43,192 Consumer 5,315 6,815 5,522 5,491 4,683 -------------- --------------- ------------- --------------- -------------- Total Arizona 616,867 593,461 551,805 545,944 499,591 Kansas: Commercial 398,452 350,325 305,380 252,345 232,116 Commercial real estate 40,241 40,104 41,055 33,766 38,584 Residential mortgage 7,490 2,397 1,726 1,059 2,525 Consumer 2,468 1,665 559 403 222 -------------- --------------- ------------- --------------- -------------- Total Kansas 448,651 394,491 348,720 287,573 273,447 -------------- --------------- ------------- --------------- -------------- TOTAL BOK FINANCIAL $ 12,663,982 $ 12,387,660 $ 12,017,247 $ 11,751,164 $ 11,699,382 ============== =============== ============= =============== ==============
DEPOSITS BY PRINCIPAL MARKET AREA - UNAUDITED BOK FINANCIAL CORPORATION (In thousands) Quarter Ended --------------------------------------------------------------------------------------- June 30, March 31, December 31, September 30, June 30, 2008 2008 2007 2007 2007 -------------- --------------- ------------- --------------- -------------- Oklahoma: Demand $ 1,003,516 $ 999,214 $ 936,160 $ 717,478 $ 876,671 Interest-bearing: Transaction 4,449,617 4,124,046 3,935,909 3,473,547 3,470,896 Savings 90,100 88,141 80,467 83,139 88,133 Time 2,672,401 2,230,110 2,426,822 2,725,992 2,798,719 -------------- --------------- ------------- --------------- -------------- Total interest-bearing 7,212,118 6,442,297 6,443,198 6,282,678 6,357,748 -------------- --------------- ------------- --------------- -------------- Total Oklahoma 8,215,634 7,441,511 7,379,358 7,000,156 7,234,419 -------------- --------------- ------------- --------------- -------------- Texas: Demand 734,730 651,781 738,105 597,534 626,193 Interest-bearing: Transaction 2,025,052 1,996,784 2,050,872 1,978,920 2,019,311 Savings 33,207 32,191 34,618 35,310 36,989 Time 723,146 759,892 800,460 893,018 804,877 -------------- --------------- ------------- --------------- -------------- Total interest-bearing 2,781,405 2,788,867 2,885,950 2,907,248 2,861,177 -------------- --------------- ------------- --------------- -------------- Total Texas 3,516,135 3,440,648 3,624,055 3,504,782 3,487,370 -------------- --------------- ------------- --------------- -------------- New Mexico: Demand 99,605 103,329 93,923 109,854 113,579 Interest-bearing: Transaction 486,623 492,096 490,227 479,204 521,154 Savings 16,432 16,141 15,146 16,437 17,662 Time 445,505 455,861 486,868 512,497 500,443 -------------- --------------- ------------- --------------- -------------- Total interest-bearing 948,560 964,098 992,241 1,008,138 1,039,259 -------------- --------------- ------------- --------------- -------------- Total New Mexico 1,048,165 1,067,427 1,086,164 1,117,992 1,152,838 -------------- --------------- ------------- --------------- -------------- Arkansas: Demand 15,322 16,661 9,755 10,225 11,030 Interest-bearing: Transaction 30,344 25,923 22,519 22,401 22,096 Savings 895 945 883 993 1,011 Time 39,305 39,803 40,692 43,401 46,597 -------------- --------------- ------------- --------------- -------------- Total interest-bearing 70,544 66,671 64,094 66,795 69,704 -------------- --------------- ------------- --------------- -------------- Total Arkansas 85,866 83,332 73,849 77,020 80,734 -------------- --------------- ------------- --------------- -------------- Colorado: Demand 65,647 51,901 60,250 42,194 42,006 Interest-bearing: Transaction 551,310 577,454 504,116 432,188 426,031 Savings 20,245 22,233 23,806 27,143 35,152 Time 423,014 455,262 539,523 608,962 549,676 -------------- --------------- ------------- --------------- -------------- Total interest-bearing 994,569 1,054,949 1,067,445 1,068,293 1,010,859 -------------- --------------- ------------- --------------- -------------- Total Colorado 1,060,216 1,106,850 1,127,695 1,110,487 1,052,865 -------------- --------------- ------------- --------------- -------------- Arizona: Demand 28,196 28,592 29,807 25,295 31,196 Interest-bearing: Transaction 94,733 102,564 82,682 98,611 74,892 Savings 1,233 878 1,435 1,269 1,233 Time 6,364 8,395 11,603 13,314 11,563 -------------- --------------- ------------- --------------- -------------- Total interest-bearing 102,330 111,837 95,720 113,194 87,688 -------------- --------------- ------------- --------------- -------------- Total Arizona 130,526 140,429 125,527 138,489 118,884 -------------- --------------- ------------- --------------- -------------- Kansas: Demand 4,923 5,341 7,946 7,849 1,081 Interest-bearing: Transaction 12,576 9,993 10,014 3,169 1,356 Savings 26 92 13 15 12 Time 51,649 33,837 24,670 23,119 32,695 -------------- --------------- ------------- --------------- -------------- Total interest-bearing 64,251 43,922 34,697 26,303 34,063 -------------- --------------- ------------- --------------- -------------- Total Kansas 69,174 49,263 42,643 34,152 35,144 -------------- --------------- ------------- --------------- -------------- TOTAL BOK FINANCIAL $ 14,125,716 $ 13,329,460 $ 13,459,291 $ 12,983,078 $ 13,162,254 ============== =============== ============= =============== ==============
NET INTEREST MARGIN TREND - UNAUDITED BOK FINANCIAL CORPORATION Quarter Ended ---------------------------------------------------------------------------------- June 30, March 31, December 31, September 30, June 30, 2008 2008 2007 2007 2007 -------------- --------------- ------------- --------------- -------------- TAX-EQUIVALENT ASSETS YIELDS Trading securities 6.88% 7.69% 6.63% 7.46% 5.86% Funds sold and resell agreements 1.97% 4.18% 5.95% 6.22% 5.53% Securities: Taxable 5.08% 5.11% 4.94% 4.92% 4.85% Tax-exempt 6.46% 6.38% 5.88% 5.30% 5.73% -------------- --------------- ------------- --------------- -------------- Total securities 5.14% 5.17% 4.99% 4.95% 4.90% Total loans 5.80% 6.59% 7.50% 7.88% 7.94% Less Allowance for loan losses - - - - - -------------- --------------- ------------- --------------- -------------- Total loans, net 5.87% 6.66% 7.58% 7.96% 8.03% -------------- --------------- ------------- --------------- -------------- Total tax-equivalent yield on earning assets 5.61% 6.17% 6.70% 6.99% 7.00% COST OF INTEREST-BEARING LIABILITIES Interest-bearing deposits: Interest-bearing transaction 1.45% 2.27% 2.79% 3.01% 3.02% Savings 0.37% 0.61% 0.86% 0.81% 0.95% Time 3.77% 4.35% 4.68% 4.83% 4.76% -------------- --------------- ------------- --------------- -------------- Total interest-bearing deposits 2.22% 2.99% 3.50% 3.72% 3.69% Funds purchased and repurchase agreements 1.95% 3.11% 4.42% 4.95% 5.06% Other borrowings 2.49% 3.51% 4.92% 5.31% 5.45% Subordinated debt 5.88% 5.45% 5.69% 6.03% 6.66% -------------- --------------- ------------- --------------- -------------- Total cost of interest-bearing liabilities 2.29% 3.11% 3.81% 4.08% 4.12% -------------- --------------- ------------- --------------- -------------- Tax-equivalent net interest revenue spread 3.32% 3.06% 2.89% 2.91% 2.88% Effect of noninterest-bearing funding sources and other 0.13% 0.25% 0.33% 0.36% 0.43% -------------- --------------- ------------- --------------- -------------- Tax-equivalent net interest margin 3.45% 3.31% 3.22% 3.27% 3.31% ============== =============== ============= =============== ==============
CREDIT QUALITY INDICATORS BOK FINANCIAL CORPORATION (In thousands, except ratios) Quarter Ended ---------------------------------------------------------------------------------- June 30, March 31, December 31, September 30, June 30, 2008 2008 2007 2007 2007 -------------- --------------- ------------- --------------- -------------- Nonperforming assets: Nonaccruing loans (C): Commercial $ 45,992 $ 41,966 $ 42,981 $ 21,168 $ 20,456 Commercial real estate 60,456 40,399 25,319 11,355 19,470 Residential mortgage 17,861 15,960 15,272 11,469 11,418 Consumer 611 812 718 705 675 -------------- --------------- ------------- --------------- -------------- Total nonaccruing loans $ 124,920 $ 99,137 $ 84,290 $ 44,697 $ 52,019 Renegotiated loans (B) 11,840 11,850 10,394 10,752 10,113 Real estate and other repossessed assets 21,025 15,112 9,475 10,627 7,664 -------------- --------------- ------------- --------------- -------------- Total nonperforming assets $ 157,785 $ 126,099 $ 104,159 $ 66,076 $ 69,796 ============== =============== ============= =============== ============== Nonaccruing loans by principal market (C): Oklahoma $ 45,306 $ 52,211 $ 47,977 $ 24,628 $ 26,529 Texas 20,860 8,157 4,983 4,921 6,176 New Mexico 9,838 7,497 11,118 6,542 7,025 Arkansas 2,924 2,866 1,635 843 816 Colorado 11,974 8,101 9,222 5,688 8,067 Arizona 33,482 18,811 9,355 2,075 3,406 Kansas 536 1,494 - - - -------------- --------------- ------------- --------------- -------------- Total nonaccruing loans $ 124,920 $ 99,137 $ 84,290 $ 44,697 $ 52,019 ============== =============== ============= =============== ============== Nonaccruing loans by loan portfolio sector (C): Commercial: Energy $ 493 $ 475 $ 529 $ 536 $ 542 Manufacturing 6,731 9,274 9,915 8,858 8,705 Wholesale / retail 3,735 3,868 3,792 3,850 2,838 Agriculture 811 1,848 380 540 769 Services 30,080 23,849 25,468 5,987 6,843 Healthcare 3,791 2,079 2,301 963 509 Other 351 573 596 434 250 -------------- --------------- ------------- --------------- -------------- Total commercial 45,992 41,966 42,981 21,168 20,456 Commercial real estate: Land development and construction 45,291 29,439 13,466 7,289 9,333 Multifamily 896 1,906 3,998 1,238 2,233 Other commercial real estate 14,269 9,054 7,855 2,828 7,904 -------------- --------------- ------------- --------------- -------------- Total commercial real estate 60,456 40,399 25,319 11,355 19,470 Residential mortgage 17,861 15,960 15,272 11,469 11,418 Consumer 611 812 718 705 675 -------------- --------------- ------------- --------------- -------------- Total nonaccruing loans $ 124,920 $ 99,137 $ 84,290 $ 44,697 $ 52,019 ============== =============== ============= =============== ============== Performing loans 90 days past due $ 10,683 $ 11,266 $ 5,575 $ 3,986 $ 4,215 Gross charge-offs $ 15,526 $ 11,078 $ 8,930 $ 7,489 $ 8,811 Recoveries 2,534 2,221 1,584 2,620 3,039 -------------- --------------- ------------- --------------- -------------- Net charge-offs $ 12,992 $ 8,857 $ 7,346 $ 4,869 $ 5,772 ============== =============== ============= =============== ============== Provision for credit losses $ 38,310 $ 17,571 $ 13,200 $ 7,201 $ 7,820 Reserve for loan losses to period end loans (A) 1.27% 1.11% 1.06% 1.04% 1.03% Combined reserves for credit losses to period end loans (A) 1.45% 1.27% 1.24% 1.21% 1.20% Nonperforming assets to period end loans (A) and repossessed assets 1.26% 1.02% 0.87% 0.57% 0.60% Net charge-offs (annualized) to average loans (A) 0.42% 0.29% 0.25% 0.17% 0.21% Reserve for loan losses to nonaccruing loans 127.30% 137.77% 150.29% 272.80% 230.22% Combined reserves for credit losses to nonaccruing loans 145.34% 157.60% 175.03% 316.97% 267.99% (A) excluding residential mortgage loans held for sale (B) includes residential mortgage loans guaranteed by agencies of the U.S. government. These loans have been modified to extend payment terms and/or reduce interest rates to current market. $ 8,638 $ 8,386 $ 7,550 $ 7,083 $ 6,430 (C) includes loans subject to First United Bank sellers escrow $11,973 $ 8,101 $ 8,412 $ 4,677 $ 6,944