-----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, QqPPxb9KdSdByKUYS4WKptnD+itvFhv2qp9qOh3bUYCT58Bh69BV7zcMLY5160Jz 19LLxaFkjkGqQQZwATQCMA== 0000875357-08-000039.txt : 20081030 0000875357-08-000039.hdr.sgml : 20081030 20081029175941 ACCESSION NUMBER: 0000875357-08-000039 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20080930 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20081030 DATE AS OF CHANGE: 20081029 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: 081148767 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 form8k093008.txt FORM 8-K 093008 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): October 29, 2008 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 October 29, 2008, BOK Financial Corporation ("BOK Financial") issued a press release announcing its financial results for the three and nine months ended September 30, 2008 ("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 October 29, 2008, in connection with issuance of the Press Release, BOK Financial released financial information related to the three and nine months ended September 30, 2008 ("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 October 29, 2008 titled "Revenue Growth Provides Solid Earnings - Reserves Strengthen in an Uncertain Banking Environment" 99(b) Financial Information for the Three and Nine Months Ended September 30, 2008 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: October 29, 2008 EX-99 2 press93008.txt (A) EARNINGS RELEASE Exhibit 99 (a) Revenue Growth Provides Solid Earnings Reserves Strengthen in an Uncertain Banking Environment TULSA, Okla. (Wednesday October 29, 2008) - BOK Financial Corporation reported earnings of $56.7 million or $0.84 per diluted share for the third quarter of 2008. The Company reported a net loss of $1.2 million or $.02 per diluted share for the second quarter of 2008 and net income of $59.8 million or $0.89 per diluted share for the third quarter of 2007. Transactions related to the SemGroup LP and Lehman Brothers bankruptcies increased net income by $4.5 million or $0.07 per diluted share for the third quarter of 2008 and decreased net income by $57.0 million or $0.84 per diluted share for the second quarter of 2008. Year-to-date net income totaled $117.8 million or $1.74 per diluted share for the nine months ended September 30, 2008 and $166.5 million or $2.46 per diluted share for the nine months ended September 30, 2007. "BOK Financial is pleased to report solid earnings for the third quarter of 2008, a period of great uncertainty," said President and CEO Stan Lybarger. "Despite continued disruptions in the financial markets, our capital position and liquidity remain strong. Net interest revenue and fee revenue provided a foundation for our earnings while credit reserves increased. Our loan portfolio grew by $162 million and we funded almost $350 million of residential mortgage loans during the third quarter. We increased deposits by more than $460 million and our total capital is among the strongest in the country." Highlights of the third quarter of 2008 included: o Net interest revenue totaled $164.3 million, up $5.4 million over the second quarter of 2008 and $24.9 million over the third quarter of 2007. Net interest margin was 3.48% for the third quarter of 2008, 3.44% for the second quarter of 2008 and 3.27% for the third quarter of 2007. Growth in net interest revenue and net interest margin was due largely to increased earning assets and widening spreads. o Fees and commissions revenue totaled $126.7 million for the third quarter of 2008, $63.6 million for the second quarter of 2008 and $103.7 million for the third quarter of 2007. Fees and commissions grew $16.9 million or 16% over the third quarter of 2007, excluding SemGroup and Lehman related items, due largely to brokerage and trading revenue. Fees and commissions decreased $2.4 million, excluding SemGroup and Lehman related items, from the second quarter of 2008. o Combined reserves for credit losses totaled $209 million or 1.65% of outstanding loans at September 30, 2008, up from $177 million or 1.41% of outstanding loans at June 30, 2008. At September 30, our ratio of reserves to outstanding loans exceeded the median of our defined peer group. Net loans charged off and provision for credit losses were $20.2 million and $52.7 million, respectively, for the third quarter of 2008. Net loans charged off and provision for credit losses were $39.0 million and $59.3 million respectively for the second quarter of 2008 and $4.9 million and $7.2 million, respectively for the third quarter of 2007. o Non-performing assets totaled $252 million or 1.98% of outstanding loans and repossessed assets at September 30, 2008, up from $181 million or 1.45% of outstanding loans and repossessed assets at June 30, 2008. The increase in non-performing assets included an expected $36 million of unpaid amounts due from SemGroup in settlement of funded letters of credit and derivative contracts which terminated during the third quarter. o The Company maintained strong Tier 1 and tangible capital ratios of 9.25% and 7.16%, respectively, at September 30, 2008. Tier 1 and tangible capital ratios were 8.69% and 7.15%, respectively, at June 30, 2008. At September 30, 2008, the Company's total capital ratio was near the top quartile of 50 largest U.S. banks. The Company paid a dividend of $15.2 million or $0.225 per common share during the third quarter of 2008. o On October 28, 2008, the Company's board of directors declared a dividend of $0.225 per common share payable on December 2, 2008 to shareholders of record as of November 14, 2008. Net Interest Revenue Net interest revenue totaled $164.3 million for the third quarter of 2008, up $5.4 million or 14% annualized over the second quarter of 2008 and $24.9 million or 18% over the third quarter of 2007. Net interest margin was 3.48% for the third quarter of 2008, 3.44% for the second quarter of 2008 and 3.27% for the third quarter of 2007. The spread between LIBOR and the federal funds rate continued to widen in the third quarter. LIBOR is the basis for interest earned on many of our loans. The federal funds rate is the basis for interest paid on many of our interest-bearing liabilities. In addition, our mix of funding sources shifted to lower-cost deposit accounts during the third quarter. Average earning assets for the third quarter of 2008 increased $174 million compared with the previous quarter, including a $138 million increase in average loans, net of allowance for loan losses, and a $26 million increase in average securities. Average commercial loans increased $253 million and average commercial real estate loans decreased $106 million. Average deposits increased $967 million during the third quarter, including a $716 million increase in average time deposits and a $251 million increase in average demand and interest-bearing transaction deposit account balances. Average other borrowed funds, which consist primarily of Federal Home Loan Bank advances, decreased $877 million. Growth in average time deposits included a $550 million increase in brokered deposits as the Company realigned its funding sources to increase overnight liquidity. Credit Quality Non-performing assets totaled $252 million or 1.98% of outstanding loans and repossessed assets at September 30, 2008, up $71 million since June 30, 2008. Non-performing assets included $9.6 million of restructured residential mortgage loans guaranteed by agencies of the U.S. government and $16 million of loans and repossessed assets acquired with First United Bank in the second quarter of 2007. The Company will be reimbursed by the sellers up to $8 million for any losses incurred during a three-year period after the acquisition date. Non-accruing commercial loans totaled $106 million or 1.45% of total commercial loans at September 30, 2008. Approximately $50 million of non-accruing commercial loans are in the energy sector of the portfolio, including $48 million due from SemGroup. This amount represents one-third of our pre-bankruptcy amounts due from SemGroup. In addition, $27 million of non-accruing commercial loans are in the services sector of the loan portfolio. The distribution of non-accruing commercial loans among our various markets included $75 million in Oklahoma, $12 million in Colorado and $10 million in Texas. Non-accruing commercial real estate loans totaled $78 million or 2.88% of outstanding commercial real estate loans at September 30, 2008. Non-accruing commercial real estate loans included $54 million of land and residential lot and construction loans, $13 million of loans secured by retail properties and $3 million of loans secured by office buildings. The distribution of non-accruing commercial real estate loans among our various markets included $51 million in Arizona, $8 million in Texas, $8 million in Colorado and $5 million in New Mexico. "While our asset quality trends deteriorated in the third quarter, it is important to note that the Arizona real estate market has been the biggest driver of the deterioration," said Lybarger. "This market is a relatively small percentage of our Company's balance sheet. However, we have long maintained commercial real estate below 25% of total loans, which should help as we work through this cycle." At September 30, 2008, non-performing assets in the Arizona market totaled $58 million or 9.47% of loans and repossessed assets, up from $35 million or 5.67% at June 30, 2008. Non-performing land and residential lot and construction properties in Arizona totaled $41 million at September 30, 2008, up from $30 million at June 30, 2008. Our consumer credit exposure consists primarily of residential mortgage loans, home equity loans and indirect automobile loans. Non-accruing permanent residential mortgage loans totaled $26 million or 2.21% of outstanding residential mortgage loans at September 30, 2008. Non-accruing home equity loans totaled $674 thousand or 0.14% of outstanding home equity loans. The distribution of non-accruing residential mortgage loans among our various markets included $10 million in Texas, $9 million in Oklahoma and $3 million in Arizona. At September 30, 2008, the distribution of our $721 million portfolio of indirect automobile loans among various markets was $454 million in Oklahoma, $176 million in Arkansas and $91 million in Texas. Approximately 2.29% of the indirect automobile loan portfolio is past due 30 days or more, including 2.23% in Oklahoma, 2.56% in Arkansas and 2.08% in Texas. At June 30, 2008, approximately 1.95% of the indirect automobile loan portfolio was past due 30 days or more. This compares to a national average of 2.60% for indirect automobile loans past due 30 days or more at June 30, 2008. The combined allowance for loan losses and reserve for off-balance sheet credit losses totaled $209 million or 1.65% of outstanding loans and 99% of non-accruing loans at September 30, 2008. The allowance for loans losses was $187 million and the reserve for off-balance sheet credit losses was $22 million. At June 30, 2008, the combined allowance for loan losses and off-balance sheet credit losses was $177 million or 1.41% of outstanding loans and 119% of non-accruing loans. Real estate and other repossessed assets totaled $28 million at September 30, 2008, up from $21 million at June 30, 2008. Real estate and other repossessed assets included $17 million of 1-4 family residential properties and residential land development properties, $5 million of developed commercial real estate properties, $4 million of undeveloped land and $2 million of automobiles. Real estate owned and other repossessed assets are primarily located in Oklahoma, Texas, Arkansas and Colorado. Approximately $2 million of real estate and other repossessed assets are supported by the First United Bank sellers' guaranty. The Company also has off-balance sheet obligations related to certain community development residential mortgage loans that were sold to U.S. government agencies with recourse. These mortgage loans were underwritten to standards approved by the agencies, including full documentation and were originated under programs available only for owner-occupied properties. The outstanding principal balance of these loans totaled $388 million at September 30, 2008. All of these loans are to borrowers in our primary market areas, including $274 million in Oklahoma, $44 million in Arkansas, $22 million in New Mexico and $18 million in Kansas City. At September 30, 2008, approximately 2.17% of these loans are non-performing. A separate reserve for credit risk of $8.6 million is maintained for these loans. Securities and Derivatives The Company's securities portfolio totaled $6.7 billion at September 30, 2008, up $451 million since June 30, 2008. The portfolio consisted primarily of mortgage-backed securities, including $4.8 billion fully backed by U.S. government agencies and $1.5 billion privately issued by publicly-owned financial institutions. The portfolio does not hold any securities backed by sub-prime mortgage loans, collateralized debt obligations or collateralized loan obligations. The Company holds no debt of corporate issuers. Net unrealized losses on the Company's portfolio of available for sale debt securities totaled $156 million at September 30, 2008. These unrealized losses were determined to be temporary based on an assessment of current and anticipated market conditions. Approximately $439 million of the privately issued mortgage-backed securities consisted of Alt-A mortgage loans. Approximately 83% of these securities are credit enhanced with additional collateral support and approximately 87% of our Alt-A mortgage-backed securities represents pools of fixed-rate mortgage loans. None of the adjustable rate mortgages are payment option ARMs. "Our strategy has been to enhance the credit quality of our securities portfolio in exchange for slightly lower yields," said Lybarger. "This strategy has limited our risk in the current environment." The securities portfolio also included $32 million of preferred stocks issued by seven financial institutions. None of these institutions are in default and all of the issuers are rated investment grade. The fair value of these preferred stocks was $24 million at September 30, 2008. Based on an assessment of current and anticipated market conditions, the Company determined that the $8.5 million of unrealized losses on these securities were temporary. BOK Financial does not own any equity securities issued by Fannie Mae or Freddie Mac. The Company also has a portfolio of derivative contracts which are used for customer risk management programs and internal interest rate risk management programs. At September 30, 2008 the fair value of all asset contracts totaled $572 million, net of cash margin held by the Company. The largest amount due from a single counterparty, a subsidiary of an international energy company, to these contracts at September 30 was $67 million. The largest amount due from this counterparty decreased to $35 million through receipt of cash margin the next day. Net gains on securities, derivatives and mortgage servicing rights totaled $915 thousand for the third quarter of 2008, compared with net losses of $9.0 million for the second quarter of 2008 and net gains of $2.2 million for the third quarter of 2007. Quarter Ended September 30 June 30 September 30 2008 2008 2007 Gain on portfolio securities $ 917 $ 276 $ 21 Gain on Mastercard IPO securities - - 1,073 Gain (loss) on derivative contracts 4,366 (2,961) 865 Gain (loss) on mortgage hedge securities 1,186 (5,518) 3,654 Loss on change in fair value of mortgage servicing rights (5,554) ( 767) (3,446) -------- ----------- -------- Gain (loss) on mortgage servicing rights net of mortgage hedge securities (4,368) (6,285) 208 -------- ----------- -------- Net gain (loss) on securities, derivatives and mortgage servicing rights $ 915 $(8,970) $2,167
Liquidity and Capital The Company improved its liquidity during the third quarter by reducing net amounts funded into margin accounts to support customer derivative contracts by $791 million, increasing deposit account balances by $460 million and increasing other short-term borrowings by $566 million. The decrease in net amounts funded into margin accounts was due to settlement of derivative contracts and a reduction in energy prices during the third quarter. Time deposits increased by $456 million due primarily to a $453 million increase in brokered time deposits. Increased liquidity was used to reduce funds borrowed from the Federal Home Loan Banks by $1.1 billion, increase the securities portfolio by $451 million and fund net loan growth of $162 million. These actions supported a strategy to improve the Company's overnight liquidity. Net loan growth consisted of a $235 million increase in commercial loans and a $62 million increase in residential mortgage loans, partially offset by a $114 million decrease in commercial real estate loans and a $22 million decrease in consumer loans. The outstanding balance of energy loans increased $205 million. Residential construction and land development loans decreased $53 million and indirect automobile loans decreased $14 million. The Company also funded $347 million of residential mortgage loans during the third quarter. These loans were originated across all of our primary markets. The Company and each of its subsidiary banks exceeded the regulatory definition of well-capitalized at September 30, 2008. The Company's Tier 1 and tangible capital ratios were 9.25% and 7.16%, respectively, at September 30, 2008. Tier 1 and tangible capital ratios were 8.69% and 7.15%, respectively, at June 30, 2008. In addition, the Company's total capital ratio was 12.55% at September 30, 2008 and 11.69% at June 30, 2008. The Company maintained its cash dividend of $0.225 per common share during the third quarter. The Company is continuing to evaluate the recently announced TARP Capital Purchase Program. The TARP program allows participating banks to increase capital by issuing preferred stock and common stock warrants to the U.S. government. The Company will make a decision about participating in the TARP program before the November 14, 2008 deadline. Fees and Commission Revenue Fees and commissions revenue totaled $126.7 million for the third quarter of 2008, $63.6 million for the second quarter of 2008 and $103.7 million for the third quarter of 2007. Fees and commissions revenue excluding transactions related to SemGroup and Lehman Brothers was $120.0 million for the third quarter of 2008, $122.3 million for the second quarter of 2008 and $103.0 million for the third quarter of 2007. The $2.4 million reduction in fees and commissions revenue from the previous quarter was due primarily to a $2.5 million decrease in fees earned on margin assets. Average margin assets, which are held primarily as part of the Company's customer derivative programs, totaled $532 million in the third quarter of 2008 and $762 million in the second quarter of 2008. The decrease in revenue from margin assets was offset by an increase in net interest revenue due to lower funding costs. Operating Expenses Operating expenses totaled $164.3 million for the third quarter of 2008, up $5.0 million over the preceding quarter and $13.3 million over the third quarter of 2007. Excluding changes in the fair value of mortgage servicing rights, operating expenses increased $235 thousand over the second quarter of 2008. Personnel expense decreased $2.0 million due primarily to lower incentive compensation and deferred compensation expenses. The Company recognized a $1.7 million charge for its obligation to support a settlement of litigation between Visa, Inc and Discover Financial Services. 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., Bank of Kansas City, N.A., BOSC, Inc., Cavanal Hill Investment Management, Inc., the TransFund electronic funds network, and Southwest Trust Company, N.A. Shares of BOK Financial are traded on the NASDAQ under the symbol BOKF. For more information, visit 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, 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 fs0093008.txt (B) FINANCIAL STATEMENTS Exhibit 99(b) BALANCE SHEETS BOK FINANCIAL CORPORATION (In thousands) Period Ended --------------------------------------------------- September 30, December 31, September 30, 2008 2007 2007 -------------- -------------- ------------- (Unaudited) (Unaudited) ASSETS Cash and due from banks $ 669,914 $ 717,259 $ 565,747 Trading securities 92,588 45,724 25,000 Funds sold and resell agreements 105,594 173,154 118,768 Securities: Available for sale 6,279,530 5,650,540 5,544,234 Investment 243,617 247,949 250,873 Mortgage trading securities 198,201 154,701 127,222 -------------- -------------- ------------- Total securities 6,721,348 6,053,190 5,922,329 Residential mortgage loans held for sale 113,121 76,677 73,488 Loans: Commercial 7,273,802 6,737,505 6,510,361 Commercial real estate 2,713,992 2,750,472 2,785,035 Residential mortgage 1,669,953 1,531,296 1,497,568 Consumer 1,022,223 921,297 884,712 -------------- -------------- ------------- Total loans 12,679,970 11,940,570 11,677,676 Less reserve for loan losses (186,516) (126,677) (121,932) -------------- -------------- ------------- Loans, net of reserve 12,493,454 11,813,893 11,555,744 Premises and equipment, net 267,749 258,786 254,953 Accrued revenue receivable 118,096 128,350 129,849 Intangible assets, net 363,177 368,353 375,113 Mortgage servicing rights, net 68,680 70,009 71,927 Real estate and other repossessed assets 28,088 9,475 10,627 Bankers' acceptances 23,933 1,780 20,353 Derivative contracts 572,391 502,446 301,311 Cash surrender value of bank-owned life insurance 234,293 229,540 226,853 Receivable on unsettled securities trades 169,494 19,964 7,473 Other assets 335,882 199,101 187,670 -------------- -------------- ------------- TOTAL ASSETS $ 22,377,802 $ 20,667,701 $ 19,847,205 ============== ============== ============= LIABILITIES AND SHAREHOLDERS' EQUITY Deposits: Demand $ 3,005,163 $ 2,768,769 $ 2,357,149 Interest-bearing transaction 6,606,622 6,203,516 5,641,320 Savings 156,847 156,368 164,306 Time 4,817,551 4,330,638 4,820,303 -------------- -------------- ------------- Total deposits 14,586,183 13,459,291 12,983,078 Funds purchased and repurchase agreements 3,667,225 3,225,131 3,175,802 Other borrowings 1,077,450 1,027,564 908,711 Subordinated debentures 398,372 398,273 398,240 Accrued interest, taxes, and expense 120,280 124,029 118,275 Bankers' acceptances 23,933 1,780 20,353 Derivative contracts 377,973 341,677 236,882 Other liabilities 185,883 154,572 137,301 -------------- -------------- ------------- TOTAL LIABILITIES 20,437,299 18,732,317 17,978,642 Shareholders' equity: Capital, surplus and retained earnings 2,046,752 1,966,618 1,920,545 Accumulated other comprehensive loss (106,249) (31,234) (51,982) -------------- -------------- ------------- TOTAL SHAREHOLDERS' EQUITY 1,940,503 1,935,384 1,868,563 -------------- -------------- ------------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 22,377,802 $ 20,667,701 $ 19,847,205 ============== ============== =============
AVERAGE BALANCE SHEETS - UNAUDITED BOK FINANCIAL CORPORATION (In thousands) Quarter Ended ------------------------------------------------------------------------------------- September 30, June 30, March 31, December 31, September 30, 2008 2008 2008 2007 2007 -------------- -------------- ------------- -------------- -------------- ASSETS Trading securities $ 66,419 $ 74,058 $ 74,957 $ 29,303 $ 24,413 Funds sold and resell agreements 79,862 72,444 80,735 86,948 101,281 Securities: Available for sale 5,945,220 5,880,844 5,438,655 5,574,417 5,183,056 Investment 239,655 249,723 248,974 249,350 246,273 Mortgage trading securities 126,837 155,612 201,199 138,306 137,863 -------------- -------------- ------------- -------------- -------------- Total securities 6,311,712 6,286,179 5,888,828 5,962,073 5,567,192 Residential mortgage loans held for sale 116,533 105,925 84,291 75,082 93,042 Loans: Commercial 7,228,814 6,976,292 6,841,006 6,619,760 6,487,139 Commercial real estate 2,696,503 2,802,292 2,784,640 2,702,449 2,775,184 Residential mortgage 1,655,710 1,606,518 1,510,238 1,504,594 1,472,537 Consumer 1,015,796 1,035,985 961,104 904,358 881,736 -------------- -------------- ------------- -------------- -------------- Total loans 12,596,823 12,421,087 12,096,988 11,731,161 11,616,596 Less allowance for loan losses (182,844) (145,524) (131,709) (125,996) (123,059) -------------- -------------- ------------- -------------- -------------- Total loans, net 12,413,979 12,275,563 11,965,279 11,605,165 11,493,537 -------------- -------------- ------------- -------------- -------------- Total earning assets 18,988,504 18,814,168 18,094,090 17,758,570 17,279,465 Cash and due from banks 499,992 524,922 543,232 546,704 529,282 Cash surrender value of bank-owned life insurance 232,465 229,731 230,283 227,810 225,206 Derivative contracts 900,777 896,569 513,696 387,876 255,673 Other assets 1,199,425 1,142,910 1,115,752 1,061,655 1,046,749 -------------- -------------- ------------- -------------- -------------- TOTAL ASSETS $ 21,821,163 $ 21,608,300 $ 20,497,053 $ 19,982,615 $ 19,336,375 ============== ============== ============= ============== ============== LIABILITIES AND SHAREHOLDERS' EQUITY Deposits: Demand $ 2,739,209 $ 2,634,038 $ 2,443,201 $ 2,448,011 $ 2,390,293 Interest-bearing transaction 6,565,935 6,420,291 6,267,021 5,861,544 5,593,043 Savings 159,856 159,798 156,953 160,170 200,362 Time 4,792,366 4,076,167 4,225,141 4,544,802 4,798,812 -------------- -------------- ------------- -------------- -------------- Total deposits 14,257,366 13,290,294 13,092,316 13,014,527 12,982,510 Funds purchased and repurchase agreements 3,061,186 3,126,110 3,061,783 3,158,153 2,603,372 Other borrowings 1,390,233 2,267,076 1,340,846 936,353 880,894 Subordinated debentures 398,361 398,336 398,241 398,109 471,458 Derivative contracts 509,057 239,211 297,660 276,992 198,438 Other liabilities 278,363 302,482 321,061 303,582 378,723 -------------- -------------- ------------- -------------- -------------- TOTAL LIABILITIES 19,894,566 19,623,509 18,511,907 18,087,716 17,515,395 Shareholders' equity 1,926,597 1,984,791 1,985,146 1,894,899 1,820,980 -------------- -------------- ------------- -------------- -------------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 21,821,163 $ 21,608,300 $ 20,497,053 $ 19,982,615 $ 19,336,375 ============== ============== ============= ============== ==============
STATEMENTS OF EARNINGS - UNAUDITED BOK FINANCIAL CORPORATION (In thousands, except per share data) Quarter Ended Nine Months Ended -------------------------------- ------------------------------ September 30, September 30, -------------------------------- ------------------------------ 2008 2007 2008 2007 -------------- -------------- ------------- -------------- Interest revenue $ 263,358 $ 300,380 $ 799,485 $ 863,641 Interest expense 99,010 160,935 329,070 460,445 -------------- -------------- ------------- -------------- Net interest revenue 164,348 139,445 470,415 403,196 Provision for credit losses 52,711 7,201 129,592 21,521 -------------- -------------- ------------- -------------- Net interest revenue after provision for credit losses 111,637 132,244 340,823 381,675 Other operating revenue Brokerage and trading revenue 30,846 15,541 19,297 42,140 Transaction card revenue 25,632 23,812 74,976 66,913 Trust fees and commissions 20,100 19,633 61,836 58,086 Deposit service charges and fees 30,404 27,885 88,289 79,280 Mortgage banking revenue 6,230 5,809 20,645 15,363 Bank-owned life insurance 2,829 2,520 7,999 7,444 Margin asset fees 1,934 1,061 8,361 2,788 Other revenue 8,691 7,456 22,730 20,254 -------------- -------------- ------------- -------------- Total fees and commissions 126,666 103,717 304,133 292,268 Gain (loss) on asset sales (839) 42 (658) 388 Gain (loss) on securities, net 2,103 4,748 1,481 (2,077) Gain (loss) on derivatives, net 4,366 865 3,518 753 -------------- -------------- ------------- -------------- Total other operating revenue 132,296 109,372 308,474 291,332 Other operating expense Personnel 87,549 85,811 265,252 244,193 Business promotion 5,837 5,399 16,253 15,360 Professional fees and services 6,501 5,749 19,122 16,586 Net occupancy and equipment 15,570 14,752 45,731 41,818 Insurance 2,436 759 8,772 2,174 Data processing and communications 19,911 18,271 58,327 53,647 Printing, postage and supplies 4,035 4,201 12,610 12,349 Net (gains) losses and operating expenses of repossessed assets (136) 172 13 571 Amortization of intangible assets 1,884 2,397 5,694 4,976 Mortgage banking costs 5,811 3,877 17,545 8,932 Change in fair value of mortgage servicing rights 5,554 3,446 8,083 (451) Visa retrospective responsibility obligation 1,700 - (1,067) - Other expense 7,638 6,184 20,627 17,105 -------------- -------------- ------------- -------------- Total other operating expense 164,290 151,018 476,962 417,260 Income before taxes 79,643 90,598 172,335 255,747 Federal and state income taxes 22,958 30,750 54,546 89,243 -------------- -------------- ------------- -------------- Net income $ 56,685 $ 59,848 $ 117,789 $ 166,504 ============== ============== ============= ============== Average shares outstanding: Basic 67,263,317 67,078,378 67,252,296 67,092,549 Diluted 67,471,376 67,537,643 67,564,159 67,571,900 Net income (loss) per share: Basic $ 0.84 $ 0.89 $ 1.75 $ 2.48 ============== ============== ============= ============== Diluted $ 0.84 $ 0.89 $ 1.74 $ 2.46 ============== ============== ============= ==============
FINANCIAL HIGHLIGHTS - UNAUDITED BOK FINANCIAL CORPORATION (In thousands, except ratio and share data) Quarter Ended ----------------------------------------------------------------------------------- September 30, June 30, March 31, December 31, September 30, 2008 2008 2008 2007 2007 -------------- -------------- ------------- -------------- -------------- Capital: Period-end shareholders' equity $ 1,940,503 $ 1,942,376 $ 1,992,570 $ 1,935,384 $ 1,868,563 Risk-based capital ratios: Tier 1 9.25% 8.69% 9.35% 9.38% 9.30% Total capital 12.55% 11.69% 12.44% 12.54% 12.53% Leverage ratio 7.94% 7.83% 8.23% 8.20% 8.17% Period-end tangible capital ratio 7.16% 7.15% 7.83% 7.72% 7.67% Common stock: Book value per share $ 28.78 $ 28.78 $ 29.57 $ 28.75 $ 27.86 Market value per share: High $ 53.94 $ 60.74 $ 55.23 $ 55.43 $ 54.20 Low $ 38.61 $ 49.11 $ 46.82 $ 51.44 $ 47.37 Cash dividends paid $ 15,170 $ 15,180 $ 13,484 $ 13,438 $ 13,445 Dividend payout ratio 26.76% (1307.49%) 21.66% 26.27% 22.47% Shares outstanding, net 67,433,837 67,488,388 67,383,318 67,306,380 67,062,517 Stock buy-back program: Shares repurchased 75,000 - 91,114 33,583 261,916 Amount $ 3,337,000 $ - $ 4,655,477 $ 1,770,368 $ 13,359,753 -------------- ---------------- ------------- -------------- -------------- Average price per share $ 44.49 $ - $ 51.10 $ 52.72 $ 51.01 ============== ============== ============= ============== ============== Performance ratios (quarter annualized): Return on average assets 1.03% (0.02%) 1.22% 1.02% 1.23% Return on average equity 11.70% (0.24%) 12.62% 10.71% 13.04% Net interest margin 3.48% 3.44% 3.31% 3.22% 3.27% Efficiency ratio 54.19% 70.56% 57.60% 60.04% 60.08% Other data: Gain (loss) on economic hedge of mortgage servicing rights $1,186 $ (5,518) $ 191 $ 1,288 $ 3,654 Trust assets $ 33,242,296 $ 34,433,874 $ 35,524,730 $ 36,288,592 $ 34,875,758 Mortgage servicing portfolio $ 5,167,584 $ 5,075,285 $ 4,967,384 $ 4,893,011 $ 4,824,420 Mortgage loan fundings during the quarter $ 258,171 $ 288,937 $ 256,617 $ 239,620 $ 246,097 Mortgage loan refinances to total fundings 25.14% 36.76% 51.19% 35.49% 26.51% Tax equivalent adjustment $ 1,927 $ 2,084 $ 2,154 $ 2,502 $ 2,464
QUARTERLY EARNINGS TRENDS - UNAUDITED BOK FINANCIAL CORPORATION (In thousands, except ratio and per share data) Quarter Ended ------------------------------------------------------------------------------------ September 30, June 30, March 31, December 31, September 30, 2008 2008 2008 2007 2007 -------------- -------------- ------------- -------------- -------------- Interest revenue $ 263,358 $ 260,086 $ 276,041 $ 297,096 $ 300,380 Interest expense 99,010 101,147 128,913 155,807 160,935 -------------- -------------- ------------- -------------- -------------- Net interest revenue 164,348 158,939 147,128 141,289 139,445 Provision for credit losses 52,711 59,310 17,571 13,200 7,201 -------------- -------------- ------------- -------------- -------------- Net interest revenue after provision for credit losses 111,637 99,629 129,557 128,089 132,244 Other operating revenue Brokerage and trading revenue 30,846 (35,462) 23,913 20,402 15,541 Transaction card revenue 25,632 25,786 23,558 23,512 23,812 Trust fees and commissions 20,100 20,940 20,796 20,145 19,633 Deposit service charges and fees 30,404 30,199 27,686 29,938 27,885 Mortgage banking revenue 6,230 7,198 7,217 6,912 5,809 Bank-owned life insurance 2,829 2,658 2,512 2,614 2,520 Margin asset fees 1,934 4,460 1,967 2,012 1,061 Other revenue 8,691 7,824 6,215 7,819 7,456 -------------- -------------- ------------- -------------- -------------- Total fees and commissions 126,666 63,603 113,864 113,354 103,717 Gain (loss) on asset sales (839) 216 (35) (1,316) 42 Gain (loss) on securities, net 2,103 (5,242) 4,620 (6,251) 4,748 Gain (loss) on derivatives, net 4,366 (2,961) 2,113 1,529 865 -------------- -------------- ------------- -------------- -------------- Total other operating revenue 132,296 55,616 120,562 107,316 109,372 Other operating expense Personnel 87,549 89,597 88,106 84,512 85,811 Business promotion 5,837 5,777 4,639 6,528 5,399 Professional fees and services 6,501 6,973 5,648 6,209 5,749 Net occupancy and equipment 15,570 15,100 15,061 15,466 14,752 Insurance 2,436 2,626 3,710 843 759 Data processing and communications 19,911 19,523 18,893 19,086 18,271 Printing, postage and supplies 4,035 4,156 4,419 4,221 4,201 Net (gains) losses and operating expense of repossessed assets (136) (229) 378 120 172 Amortization of intangible assets 1,884 1,885 1,925 2,382 2,397 Mortgage banking costs 5,811 6,054 5,681 4,225 3,877 Change in fair value of mortgage servicing rights 5,554 767 1,762 3,344 3,446 Visa retrospective responsibility obligation 1,700 - (2,767) 2,767 - Other expense 7,638 7,039 5,949 8,024 6,184 -------------- -------------- ------------- -------------- -------------- Total other operating expense 164,290 159,268 153,404 157,727 151,018 Income before taxes 79,643 (4,023) 96,715 77,678 90,598 Federal and state income taxes 22,958 (2,862) 34,450 26,518 30,750 -------------- -------------- ------------- -------------- -------------- Net income $ 56,685 $ (1,161) $ 62,265 $ 51,160 $ 59,848 ============== ============== ============= ============== ============== Average shares outstanding: Basic 67,263,317 67,452,181 67,202,128 67,051,499 67,078,378 Diluted 67,471,376 67,452,181 67,549,960 67,482,798 67,537,643 Net income (loss) per share: Basic $ 0.84 $ (0.02) $ 0.93 $ 0.76 $ 0.89 Diluted $ 0.84 $ (0.02) $ 0.92 $ 0.76 $ 0.89
LOANS BY PRINCIPAL MARKET AREA - UNAUDITED BOK FINANCIAL CORPORATION (In thousands) Quarter Ended ------------------------------------------------------------------------------------- September 30, June 30, March 31, December 31, September 30, 2008 2008 2008 2007 2007 -------------- -------------- ------------- -------------- -------------- Oklahoma: Commercial $ 3,368,823 $ 3,228,179 $ 3,248,424 $ 3,219,176 $ 3,113,412 Commercial real estate 827,357 875,546 940,686 890,703 875,135 Residential mortgage 1,134,066 1,099,277 1,080,882 1,080,483 1,058,142 Consumer 580,211 601,184 586,695 576,070 562,631 -------------- -------------- ------------- -------------- -------------- Total Oklahoma 5,910,457 5,804,186 5,856,687 5,766,432 5,609,320 Texas: Commercial 2,205,169 2,166,925 2,124,192 1,985,645 1,941,731 Commercial real estate 853,653 889,364 838,781 846,303 913,910 Residential mortgage 307,655 299,996 262,305 275,533 266,850 Consumer 214,133 204,081 168,949 142,958 133,391 -------------- -------------- ------------- -------------- -------------- Total Texas 3,580,610 3,560,366 3,394,227 3,250,439 3,255,882 New Mexico: Commercial 442,644 451,225 472,543 473,262 446,573 Commercial real estate 281,061 271,177 258,731 252,884 256,994 Residential mortgage 95,165 89,469 85,834 84,336 83,274 Consumer 18,296 16,977 14,977 16,105 15,769 -------------- -------------- ------------- -------------- -------------- Total New Mexico 837,166 828,848 832,085 826,587 802,610 Arkansas: Commercial 104,630 96,775 100,489 106,328 117,993 Commercial real estate 127,925 124,049 130,956 124,317 107,588 Residential mortgage 16,941 19,527 16,621 16,393 18,411 Consumer 183,543 197,979 180,551 163,626 148,404 -------------- -------------- ------------- -------------- -------------- Total Arkansas 433,039 438,330 428,617 410,664 392,396 Colorado: Commercial 598,519 489,844 486,525 490,373 491,204 Commercial real estate 266,739 276,062 261,099 252,537 247,802 Residential mortgage 49,676 38,517 31,011 26,556 26,322 Consumer 18,328 16,367 17,552 16,457 18,623 -------------- -------------- ------------- -------------- -------------- Total Colorado 933,262 820,790 796,187 785,923 783,951 Arizona: Commercial 213,861 207,173 174,360 157,341 147,103 Commercial real estate 326,615 351,058 361,567 342,673 349,840 Residential mortgage 58,800 53,321 50,719 46,269 43,510 Consumer 5,551 5,315 6,815 5,522 5,491 -------------- -------------- ------------- -------------- -------------- Total Arizona 604,827 616,867 593,461 551,805 545,944 Kansas: Commercial 340,156 398,452 350,325 305,380 252,345 Commercial real estate 30,642 40,241 40,104 41,055 33,766 Residential mortgage 7,650 7,490 2,397 1,726 1,059 Consumer 2,161 2,468 1,665 559 403 -------------- -------------- ------------- -------------- -------------- Total Kansas 380,609 448,651 394,491 348,720 287,573 -------------- -------------- ------------- -------------- -------------- TOTAL BOK FINANCIAL $ 12,679,970 $ 12,518,038 $ 12,295,755 $ 11,940,570 $ 11,677,676 ============== ============== ============= ============== ==============
DEPOSITS BY PRINCIPAL MARKET AREA - UNAUDITED BOK FINANCIAL CORPORATION (In thousands) Quarter Ended ------------------------------------------------------------------------------------- September 30, June 30, March 31, December 31, September 30, 2008 2008 2008 2007 2007 -------------- -------------- ------------- -------------- -------------- Oklahoma: Demand $ 1,681,325 $ 1,455,997 $ 1,464,258 $ 1,394,861 $ 1,155,820 Interest-bearing: Transaction 4,151,430 3,997,136 3,659,002 3,477,208 3,035,205 Savings 86,900 90,100 88,141 80,467 83,139 Time 3,036,297 2,672,401 2,230,110 2,426,822 2,725,992 -------------- -------------- ------------- -------------- -------------- Total interest-bearing 7,274,627 6,759,637 5,977,253 5,984,497 5,844,336 -------------- -------------- ------------- -------------- -------------- Total Oklahoma 8,955,952 8,215,634 7,441,511 7,379,358 7,000,156 -------------- -------------- ------------- -------------- -------------- Texas: Demand 956,846 1,046,651 940,141 1,035,134 863,107 Interest-bearing: Transaction 1,543,974 1,713,131 1,708,424 1,753,843 1,713,347 Savings 32,400 33,207 32,191 34,618 35,310 Time 794,911 723,146 759,892 800,460 893,018 -------------- -------------- ------------- -------------- -------------- Total interest-bearing 2,371,285 2,469,484 2,500,507 2,588,921 2,641,675 -------------- -------------- ------------- -------------- -------------- Total Texas 3,328,131 3,516,135 3,440,648 3,624,055 3,504,782 -------------- -------------- ------------- -------------- -------------- New Mexico: Demand 176,477 168,621 169,449 151,231 170,175 Interest-bearing: Transaction 376,941 417,607 425,976 432,919 418,883 Savings 16,316 16,432 16,141 15,146 16,437 Time 475,560 445,505 455,861 486,868 512,497 -------------- -------------- ------------- -------------- -------------- Total interest-bearing 868,817 879,544 897,978 934,933 947,817 -------------- -------------- ------------- -------------- -------------- Total New Mexico 1,045,294 1,048,165 1,067,427 1,086,164 1,117,992 -------------- -------------- ------------- -------------- -------------- Arkansas: Demand 23,565 21,142 20,493 13,247 14,492 Interest-bearing: Transaction 19,146 24,524 22,091 19,027 18,134 Savings 865 895 945 883 993 Time 47,684 39,305 39,803 40,692 43,401 -------------- -------------- ------------- -------------- -------------- Total interest-bearing 67,695 64,724 62,839 60,602 62,528 -------------- -------------- ------------- -------------- -------------- Total Arkansas 91,260 85,866 83,332 73,849 77,020 -------------- -------------- ------------- -------------- -------------- Colorado: Demand 115,677 109,697 99,584 117,939 98,914 Interest-bearing: Transaction 440,888 507,260 529,771 446,427 375,468 Savings 19,300 20,245 22,233 23,806 27,143 Time 428,872 423,014 455,262 539,523 608,962 -------------- -------------- ------------- -------------- -------------- Total interest-bearing 889,060 950,519 1,007,266 1,009,756 1,011,573 -------------- -------------- ------------- -------------- -------------- Total Colorado 1,004,737 1,060,216 1,106,850 1,127,695 1,110,487 -------------- -------------- ------------- -------------- -------------- Arizona: Demand 45,725 49,895 46,508 46,701 46,339 Interest-bearing: Transaction 64,463 73,034 84,648 65,788 77,567 Savings 1,033 1,233 878 1,435 1,269 Time 14,433 6,364 8,395 11,603 13,314 -------------- -------------- ------------- -------------- -------------- Total interest-bearing 79,929 80,631 93,921 78,826 92,150 -------------- -------------- ------------- -------------- -------------- Total Arizona 125,654 130,526 140,429 125,527 138,489 -------------- -------------- ------------- -------------- -------------- Kansas: Demand 5,548 7,157 6,580 9,656 8,302 Interest-bearing: Transaction 9,780 10,342 8,754 8,304 2,716 Savings 33 26 92 13 15 Time 19,794 51,649 33,837 24,670 23,119 -------------- -------------- ------------- -------------- -------------- Total interest-bearing 29,607 62,017 42,683 32,987 25,850 -------------- -------------- ------------- -------------- -------------- Total Kansas 35,155 69,174 49,263 42,643 34,152 -------------- -------------- ------------- -------------- -------------- TOTAL BOK FINANCIAL $ 14,586,183 $ 14,125,716 $ 13,329,460 $ 13,459,291 $ 12,983,078 ============== ============== ============= ============== ==============
NET INTEREST MARGIN TREND - UNAUDITED BOK FINANCIAL CORPORATION Quarter Ended ----------------------------------------------------------------------------------- September 30, June 30, March 31, December 31, September 30, 2008 2008 2008 2007 2007 -------------- -------------- ------------- -------------- -------------- TAX-EQUIVALENT ASSETS YIELDS Trading securities 5.61% 6.88% 7.69% 6.62% 7.46% Funds sold and resell agreements 1.44% 1.97% 4.18% 5.95% 6.22% Securities: Taxable 5.09% 5.08% 5.11% 4.86% 4.84% Tax-exempt 6.64% 6.46% 6.38% 7.19% 6.44% -------------- -------------- ------------- -------------- -------------- Total securities 5.15% 5.14% 5.17% 4.99% 4.95% Total loans 5.69% 5.79% 6.59% 7.50% 7.88% Less Allowance for loan losses - - - - -------------- -------------- ------------- -------------- -------------- Total loans, net 5.77% 5.86% 6.66% 7.58% 7.96% -------------- -------------- ------------- -------------- -------------- Total tax-equivalent yield on earning assets 5.55% 5.61% 6.17% 6.70% 6.99% COST OF INTEREST-BEARING LIABILITIES Interest-bearing deposits: Interest-bearing transaction 1.72% 1.74% 2.71% 3.34% 3.59% Savings 0.37% 0.37% 0.61% 0.86% 0.81% Time 3.39% 3.77% 4.35% 4.68% 4.83% -------------- -------------- ------------- -------------- -------------- Total interest-bearing deposits 2.39% 2.50% 3.33% 3.88% 4.10% Funds purchased and repurchase agreements 1.98% 1.95% 3.11% 4.42% 4.95% Other borrowings 2.56% 2.49% 3.51% 4.92% 5.31% Subordinated debt 5.55% 5.88% 5.45% 5.69% 6.03% -------------- -------------- ------------- -------------- -------------- Total cost of interest-bearing liabilities 2.41% 2.47% 3.36% 4.10% 4.39% -------------- -------------- ------------- -------------- -------------- Tax-equivalent net interest revenue spread 3.14% 3.14% 2.81% 2.60% 2.60% Effect of noninterest-bearing funding sources and other 0.34% 0.30% 0.50% 0.62% 0.67% -------------- -------------- ------------- -------------- -------------- Tax-equivalent net interest margin 3.48% 3.44% 3.31% 3.22% 3.27% ============== ============== ============= ============== ==============
CREDIT QUALITY INDICATORS BOK FINANCIAL CORPORATION (In thousands, except ratios) Quarter Ended ----------------------------------------------------------------------------------- September 30, June 30, March 31, December 31, September 30, 2008 2008 2008 2007 2007 -------------- -------------- ------------- -------------- -------------- Nonperforming assets: Nonaccruing loans (B): Commercial $ 105,757 $ 69,679 $ 41,966 $ 42,981 $ 21,168 Commercial real estate 78,235 60,456 40,399 25,319 11,355 Residential mortgage 27,075 17,861 15,960 15,272 11,469 Consumer 758 611 812 718 705 -------------- -------------- ------------- -------------- -------------- Total nonaccruing loans $ 211,825 $ 148,607 $ 99,137 $ 84,290 $ 44,697 Renegotiated loans (A) 12,326 11,840 11,850 10,394 10,752 Real estate and other repossessed assets 28,088 21,025 15,112 9,475 10,627 -------------- -------------- ------------- -------------- -------------- Total nonperforming assets $ 252,239 $ 181,472 $ 126,099 $ 104,159 $ 66,076 ============== ============== ============= ============== ============== Nonaccruing loans by principal market (B): Oklahoma $ 87,885 $ 57,155 $ 52,211 $ 47,977 $ 24,628 Texas 29,141 20,860 8,157 4,983 4,921 New Mexico 12,293 9,838 7,497 11,118 6,542 Arkansas 3,386 2,924 2,866 1,635 843 Colorado 20,980 23,812 8,101 9,222 5,688 Arizona 54,832 33,482 18,811 9,355 2,075 Kansas 3,308 536 1,494 - - -------------- -------------- ------------- -------------- -------------- Total nonaccruing loans $ 211,825 $ 148,607 $ 99,137 $ 84,290 $ 44,697 ============== ============== ============= ============== ============== - - - - - Nonaccruing loans by loan portfolio sector (B): Commercial: Energy $ 49,839 $ 12,342 $ 475 $ 529 $ 536 Manufacturing 6,479 6,731 9,274 9,915 8,858 Wholesale / retail 7,806 3,735 3,868 3,792 3,850 Agriculture 755 811 1,848 380 540 Services 26,581 30,080 23,849 25,468 5,987 Healthcare 3,300 3,791 2,079 2,301 963 Other 10,997 12,189 573 596 434 -------------- -------------- ------------- -------------- -------------- Total commercial 105,757 69,679 41,966 42,981 21,168 Commercial real estate: Land development and construction 53,624 45,291 29,439 13,466 7,289 Retail 13,011 7,591 5,258 5,259 - Office 3,022 3,304 1,985 1,013 1,045 Multifamily 896 896 1,906 3,998 1,238 Industrial 390 396 - - - Other commercial real estate 7,292 2,978 1,811 1,583 1,783 -------------- -------------- ------------- -------------- -------------- Total commercial real estate 78,235 60,456 40,399 25,319 11,355 Residential mortgage: Permanent mortgage 26,401 17,039 15,135 14,541 10,604 Home equity 674 822 825 731 865 -------------- -------------- ------------- -------------- -------------- Total residential mortgage 27,075 17,861 15,960 15,272 11,469 Consumer 758 611 812 718 705 -------------- -------------- ------------- -------------- -------------- Total nonaccruing loans $ 211,825 $ 148,607 $ 99,137 $ 84,290 $ 44,697 ============== ============== ============= ============== ============== - - - - - Performing loans 90 days past due $ 20,213 $ 10,683 $ 11,266 $ 5,575 $ 3,986 Gross charge-offs $ 33,926 $ 41,526 $ 11,078 $ 8,930 $ 7,489 Recoveries 13,712 2,535 2,221 1,584 2,620 -------------- -------------- ------------- -------------- -------------- Net charge-offs $ 20,214 $ 38,991 $ 8,857 $ 7,346 $ 4,869 ============== ============== ============= ============== ============== Provision for credit losses $ 52,711 $ 59,310 $ 17,571 $ 13,200 $ 7,201 Reserve for loan losses to period end loans 1.47% 1.23% 1.11% 1.06% 1.04% Combined reserves for credit losses to period end loans 1.65% 1.41% 1.27% 1.24% 1.21% Nonperforming assets to period end loans and repossessed assets 1.98% 1.45% 1.02% 0.87% 0.57% Net charge-offs (annualized) to average loans 0.64% 1.26% 0.29% 0.25% 0.17% Reserve for loan losses to nonaccruing loans 88.05% 103.64% 137.77% 150.29% 272.80% Combined reserves for credit losses to nonaccruing loans 98.69% 118.81% 157.60% 175.03% 316.97% (A) includes residential mortgage loans guaranteed $ 9,604 $ 8,638 $ 8,386 $ 7,550 $ 7,083 by agencies of the U.S. government. These loans have been modified to extend payment terms and/or reduce interest rates to current market. (B) includes loans subject to First United Bank sellers escrow $ 13,262 $ 11,973 $ 8,101 $ 8,412 $ 4,677
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