-----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, Ld4d4kuWp8OgzFtfu/YCAlXCiz+VEoyfeoCty2qBOC5lKfMQH3in2KtDwuWdlNNJ 7YVOFsx6UoxKnz4gRNvcTw== 0000875357-09-000004.txt : 20090128 0000875357-09-000004.hdr.sgml : 20090128 20090128140211 ACCESSION NUMBER: 0000875357-09-000004 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20081231 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20090128 DATE AS OF CHANGE: 20090128 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: 09550766 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 form8k123108.txt FORM 8-K 123108 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): January 28, 2009 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 January 28, 2009, BOK Financial Corporation ("BOK Financial") issued a press release announcing its financial results for the three and twelve months ended December 31, 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 January 28, 2009, in connection with issuance of the Press Release, BOK Financial released financial information related to the three and twelve months ended December 31, 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 January 28, 2009 titled "BOK Financial Reports Annual Earnings of $153 Million or $2.27 per Share - Quarterly Earnings Totaled $35 Million, $0.53 per Share" 99(b) Financial Information for the Three and Twelve Months Ended December 31, 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: January 28, 2009 EX-99 2 press123108.txt (A) EARNINGS RELEASE Exhibit 99 (a) BOK Financial Reports Annual Earnings of $153 Million or $2.27 per Share Quarterly Earnings Totaled $35 Million, $0.53 per Share TULSA, Okla. (Wednesday January 28, 2009) - BOK Financial Corporation reported net income for the fourth quarter of 2008 of $35.4 million, down 31% from the fourth quarter of 2007. Net income per diluted share was $0.53 for the fourth quarter of 2008 and $0.76 for the fourth quarter of 2007. Net income for 2008 was $153.2 million, down 30% from the previous year. Net income per diluted share was $2.27 for 2008 and $3.22 for 2007. "BOK Financial ended 2008 with over $153 million in earnings, a larger reserve for credit losses and a strong capital position," said President and CEO Stan Lybarger. "BOK Financial was also the largest traditional commercial bank in the country to decline participation in the U.S. Treasury's TARP Capital Purchase Program. We increased our reserve for credit losses by $101 million during 2008, in anticipation of continued deterioration in the nation's economy and increased pressure on our customers. Despite the environment, revenues continued to increase in 2008. Total revenue increased by $111 million as a result of continued loan growth and improved margins." Highlights of fourth quarter of 2008 included: o Net interest revenue totaled $176.4 million, up $12.1 million over the third quarter of 2008 and $35.2 million over the fourth quarter of 2007. Net interest margin was 3.57% for the fourth quarter of 2008, 3.48% for the third quarter of 2008 and 3.22% for the fourth quarter of 2007. o Combined reserves for credit losses totaled $248 million or 1.93% of outstanding loans at December 31, 2008, up from $209 million or 1.65% of outstanding loans at September 30, 2008. Net loans charged off and provision for credit losses were $33.7 million and $73.0 million, respectively for the fourth quarter of 2008. Net loans charged off and provision for credit losses were $20.2 million and $52.7 million, respectively for the third quarter of 2008 and $7.3 million and $13.2 million, respectively, for the fourth quarter of 2007. o Non-performing assets totaled $342 million or 2.65% of outstanding loans and repossessed assets at December 31, 2008, up from $252 million or 1.98% of outstanding loans and repossessed assets at September 30, 2008. o The Company's Tier 1 and tangible common equity ratios were 9.42% and 6.64%, respectively at December 31, 2008. Tier 1 and tangible common equity ratios were 9.25% and 7.16%, respectively at September 30, 2008. o The Company elected to participate in the FDIC's Temporary Liquidity Guarantee Program. This Program provides full deposit insurance coverage of non-interest bearing, transaction deposit accounts and guarantees certain newly issued senior unsecured debt. The Company has not issued any guaranteed debt under this Program. o The Company paid a cash dividend of $15.4 million or $0.225 per common share during the fourth quarter of 2008. On January 27, 2009, the board of directors declared a cash dividend of $0.225 per common share payable on or about February 27, 2009 to shareholders of record as of February 13, 2009. Net Interest Revenue Net interest revenue totaled $176.4 million for the fourth quarter of 2008, up $12.1 million or 29% annualized over the third quarter of 2008 and $35.2 million or 25% over the fourth quarter of 2007. Net interest margin was 3.57% for the fourth quarter of 2008, 3.48% for the third quarter of 2008 and 3.22% for the fourth quarter of 2007. The widening of the spread between LIBOR and the federal funds rate, which began in the third quarter of 2008 continued into the fourth 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. The widening spread increased net interest margin by approximately 15 basis points in the fourth quarter and 8 basis points in the third quarter. This spread has largely narrowed to a historically normal level by the end of the fourth quarter. Average earning assets for the fourth quarter of 2008 increased $767 million compared to the previous quarter, including a $230 million increase in average loans before allowance for loan losses, and a $578 million increase in average securities. Average commercial loans increased $224 million. The securities portfolio added government issued mortgage-backed securities during the fourth quarter to lock-in widening spreads. Average other borrowed funds, which consists primarily of Federal Home Loan Bank advances, increased $597 million. Average deposits decreased $163 million during the fourth quarter of 2008. Average interest-bearing transaction accounts decreased $449 million in the fourth quarter due to falling energy prices. Interest-bearing transaction accounts had increased by $704 million over the previous three quarters as high prices provided liquidity to many of our energy-producing customers. Average time deposits increased $317 million. Credit Quality Non-performing assets totaled $343 million or 2.65% of outstanding loans and repossessed assets at December 31, 2008, up $90 million since September 30, 2008. Non-performing assets included $10 million of restructured residential mortgage loans guaranteed by agencies of the U.S. government and $15 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 $5.3 million for any losses incurred during a three-year period after the acquisition date. "Weakness in the national economy, first seen in residential real estate in certain regions of the country is progressively spreading to other regions and other sectors of the economy," said Lybarger. "As expected, we are seeing increased signs of weakness in commercial real estate and other business sectors. We have long maintained total commercial real estate loans below 25% of our loan portfolio, which will be beneficial in the current environment." Non-accruing commercial loans totaled $135 million or 1.82% of total commercial loans at December 31, 2008. Non-accruing commercial loans increased $29 million since September 30, 2008. Non-accruing loans in the wholesale/retail, services and healthcare sectors of the commercial loan portfolio increased $11 million, $10 million and $9 million, respectively during the fourth quarter. The distribution of non-accruing commercial loans among our various markets included $75 million in Oklahoma, $22 million in Colorado, $20 million in Texas and $11 million in Kansas City. Non-accruing commercial real estate loans totaled $137 million or 5.08% of outstanding commercial real estate loans at December 31, 2008. Total non-accruing commercial real estate loans increased $59 million since September 30, 2008, including a $24 million increase in multifamily residential loans and a $22 million increase in loans secured by land, residential lots and residential construction properties. Non-accruing land and residential construction loans totaled $76 million or 8.21% of the respective loan portfolio sector at December 31, 2008. Other increases in non-accruing commercial real estate loans spread across all sectors of the commercial real estate loan portfolio. Non-accruing commercial real estate loans attributed to our various markets included $76 million to Arizona, $23 million to Oklahoma, $14 million to Texas, $10 million to Colorado and $8 million to New Mexico. Our consumer credit exposure consists primarily of permanent residential mortgage loans, home equity loans and indirect automobile loans. Non-accruing permanent residential mortgage loans totaled $26 million or 2.06% of outstanding residential mortgage loans at December 31, 2008. Non-accruing home equity loans totaled $1.2 million or 0.24% of outstanding home equity loans. The distribution of non-accruing residential mortgage loans among our various markets included $10 million in Oklahoma, $8 million in Texas, $3 million in New Mexico and $3 million in Arizona. At December 31, 2008, the distribution of our $693 million portfolio of indirect automobile loans among various markets was $434 million in Oklahoma, $170 million in Arkansas and $88 million in Texas. Approximately 3.36% of the indirect automobile loan portfolio is past due 30 days or more, including 3.25% in Oklahoma, 3.74% in Arkansas and 3.17% in Texas. At September 30, 2008, approximately 2.29% of the indirect automobile loan portfolio was past due 30 days or more. This compares to a national average of 3.06% for indirect automobile loans past due 30 days or more at September 30, 2008. The combined allowance for loan losses and reserve for off-balance sheet credit losses totaled $248 million or 1.93% of outstanding loans and 83% of non-accruing loans at December 31, 2008. The allowance for loan losses was $233 million and the reserve for off-balance sheet credit losses was $15 million. At September 30, 2008, the combined allowance for loan losses and off-balance sheet credit losses was $209 million or 1.65% of outstanding loans and 99% of non-accruing loans. Real estate and other repossessed assets totaled $29 million at December 31, 2008, up from $28 million at September 30, 2008. Real estate and other repossessed assets included $18 million of 1-4 family residential properties and residential land development properties, $5 million of developed commercial real estate properties, $3 million of undeveloped land and $3 million of automobiles. Real estate owned and other repossessed assets are primarily located in Texas, Colorado, Arkansas, and Oklahoma. The Company also has off-balance sheet obligations related to certain community development residential mortgage loans sold to U.S. government agencies with recourse. These mortgage loans were underwritten to standards approved by the agencies, including full documentation and originated under programs available only for owner-occupied properties. The outstanding principal balance of these loans totaled $391 million at December 31, 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 $19 million in Kansas City. At December 31, 2008, approximately 3.39% of these loans are non-performing. A separate reserve for credit risk of $8.8 million is available for losses on these loans. Securities and Derivatives The Company's securities portfolio totaled $7.1 billion at December 31, 2008, up $364 million since September 30, 2008. The portfolio consisted primarily of mortgage-backed securities, including $5.4 billion fully backed by U.S. government agencies and $1.2 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 $323 million at December 31, 2008. These unrealized losses were determined to be temporary based on an assessment of the underlying cash flows, collateral values and credit enhancements along with current and anticipated market conditions and the Company's intent and ability to hold the securities until their fair values recover. Approximately $390 million of the privately issued mortgage-backed securities consisted of Alt-A mortgage loans. Approximately 82% of these securities are credit enhanced with additional collateral support and approximately 86% of our Alt-A mortgage-backed securities represents pools of fixed-rate mortgage loans. None of the adjustable rate mortgages are payment option ARMs. Approximately $252 million of the privately issued mortgage-backed securities were rated below investment grade by at least one nationally recognized rating agency. The aggregate unrealized losses on securities rated below investment grade totaled $92 million at December 31, 2008. The securities portfolio also included $32 million of preferred stocks issued by seven financial institutions. None of these institutions is in default and all of the issuers are rated investment grade. The fair value of these preferred stocks was $22 million at December 31, 2008. Based on an assessment of current and anticipated market conditions, the Company determined that the $11 million of unrealized losses on these securities were temporary. The Company also has a portfolio of derivative contracts held for customer risk- management programs and internal interest rate risk management programs. At December 31, 2008, the fair value of all asset contracts totaled $453 million, net of cash margin held by the Company. The largest net amount due from a single counterparty, a subsidiary of an international energy company, to these contracts at December 31 was $64 million. Letters of credit issued by independent financial institutions further reduce our exposure to this customer to $14 million. Net losses on securities, derivatives and mortgage servicing rights totaled $8.5 million for the fourth quarter of 2008, compared with net gains of $915 thousand for the third quarter of 2008 and net losses of $8.1 million for the fourth quarter of 2007. Quarter Ended December 31 September 30 December 31 2008 2008 2007 ---- ----- ---- Gain on available for sale securities $ 5,067 $ 917 $1,102 Other than temporary impairment of preferred stocks - - (8,641) Gain (loss) on derivative contracts (2,219) 4,366 1,529 Gain on mortgage hedge securities 15,089 1,186 1,288 Loss on change in fair value of mortgage servicing rights (26,432) (5,554) (3,344) -------- ------- ------- Loss on mortgage servicing rights net of mortgage hedge securities (11,343) (4,368) (2,056) ------- ------- ------- Net gain (loss) on securities, derivatives and mortgage servicing rights $(8,495) $ 915 $(8,066) ======= ======= =======
The fair value of our mortgage servicing rights was $43 million at December 31, 2008. During the fourth quarter of 2008, the fair value of mortgage servicing rights declined by $26.4 million due largely to a significant increase in anticipated prepayment speeds in response to government programs to lower mortgage interest rates. We maintain a portfolio of mortgage-backed securities as an economic hedge against changes in the fair value of our servicing rights. However, disconnection between current yields on these securities and current commitment rates for mortgage loans limited the effectiveness of the economic hedge. Liquidity and Capital The Company maintains diverse sources of liquidity, including deposits, federal funds purchased from other banks and borrowings from the Federal Home Loan Banks. Liquidity improved during the fourth quarter by decreasing net amounts funded into margin accounts to support customer derivative contracts by $311 million and increasing deposit account balances by $396 million. The decrease in net amounts funded into margin accounts was due to effect of lower energy prices on the fair value of derivative contracts. Time deposits increased by $366 million due primarily to a $209 million increase in deposits placed by other financial institutions through the CDARS deposit program and a $150 million increase in retail time deposits. Increased liquidity funded a $337 million net increase in the available for sale securities portfolio, net loan growth of $196 million and a $197 million reduction in borrowed funds. Net loan growth consisted of a $138 million increase in commercial loans and an $83 million increase in residential mortgage loans, partially offset by a $13 million decrease in commercial real estate loans and a $12 million decrease in consumer loans. The outstanding balance of energy loans increased $212 million, partially offset by decreases in the manufacturing, agriculture and wholesale/retail sectors. Residential construction and land development loans decreased $42 million, largely offset by growth in the multifamily residential sector of the commercial real estate loan portfolio. The Company elected to participate in the FDIC's Temporary Liquidity Guaranty Program. This program provides deposit insurance coverage for the full amount of customer funds in non-interest bearing, transaction accounts through the end of 2009. It also fully guarantees certain debt issued on or before June 30, 2009 through the earlier of maturity of the debt or June 30, 2012. The Company and each of its subsidiary banks exceeded the regulatory definition of well capitalized at December 31, 2008. The Company's Tier 1 and tangible common equity ratios were 9.42% and 6.64%, respectively, at December 31, 2008. The decrease in tangible common equity ratio was due primarily to an increase in temporary unrealized losses on available for sale securities. Tier 1 and tangible common equity ratios were 9.25% and 7.16%, respectively, at September 30, 2008. In addition, the Company's total capital ratio was 12.84% at December 31, 2008 and 12.55% at September 30, 2008. The Company maintained its cash dividend of $0.225 per common share during the fourth quarter. The Company evaluated the U.S. Treasury's 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 elected not to participate in the TARP program. Fees and Commission Revenue Fees and commissions revenue totaled $109.9 million for the fourth quarter of 2008, $126.7 million for the third quarter of 2008, and $113.4 million for the fourth quarter of 2007. The $16.8 million reduction in fees and commissions revenue from the previous quarter was due primarily to a $7.3 million decrease in brokerage and trading revenue, a $3.0 million decrease in trust fees and a $1.6 million decrease in fees earned on margin assets. Brokerage and trading revenue for the third quarter of 2008 included a $6.7 million net partial recovery of losses on derivative contracts with two bankrupt counterparties that did not recur in the fourth quarter. The fair value of trust assets at December 31, 2008 decreased $2.8 billion or 8% compared with September 30, 2008. The fair value of trust assets is a primary driver of trust fees. Average margin assets, which are held primarily as part of the Company's customer derivative programs, totaled $121 million in the fourth quarter of 2008 and $532 million in the third quarter of 2008. An increase in net interest revenue due to lower funding costs offset the decrease in revenue from margin assets. Operating Expenses Operating expenses totaled $185.4 million for the fourth quarter of 2008, up $21.2 million over the preceding quarter. Excluding changes in the fair value of mortgage servicing rights, operating expenses increased $274 thousand over the third quarter of 2008. Personnel expense increased $146 thousand. Lower incentive compensation largely offset growth in salary expense. In addition, the Company reversed a $1.7 million charge for its obligation to support a settlement of litigation between Visa, Inc and Discover Financial Services initially recognized in the third quarter of 2008. 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. The Company will continue to evaluate critical assumptions and estimates, such as the adequacy of the allowance for credit losses and asset impairment as of December 31, 2008 through the date its financial statements are filed with the Securities and Exchange Commission and will adjust amounts reported if necessary. This news release contains forward-looking statements that are based on management's beliefs, assumptions, current expectations, estimates and projections about BOK Financial, the financial services industry and the economy generally. Words such as "anticipates," "believes," "estimates," "expects," "forecasts," "plans," "projects," 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 fs123108.txt (B) FINANCIAL STATEMENTS Exhibit 99 (b) BALANCE SHEETS BOK FINANCIAL CORPORATION (In thousands) Period Ended -------------------------------- December 31, December 31, 2008 2007 -------------- -------------- (Unaudited) ASSETS Cash and due from banks $ 581,133 $ 717,259 Trading securities 99,601 45,724 Funds sold and resell agreements 113,809 173,154 Securities: Available for sale 6,444,178 5,650,540 Investment 242,344 247,949 Mortgage trading securities 399,211 154,701 -------------- -------------- Total securities 7,085,733 6,053,190 Residential mortgage loans held for sale 129,246 76,677 Loans: Commercial 7,411,603 6,737,505 Commercial real estate 2,701,248 2,750,472 Residential mortgage 1,752,574 1,531,296 Consumer 1,010,581 921,297 -------------- -------------- Total loans 12,876,006 11,940,570 Less reserve for loan losses (233,236) (126,677) -------------- -------------- Loans, net of reserve 12,642,770 11,813,893 Premises and equipment, net 277,458 258,786 Accrued revenue receivable 96,673 128,350 Intangible assets, net 361,209 368,353 Mortgage servicing rights, net 42,752 70,009 Real estate and other repossessed assets 29,179 9,475 Bankers' acceptances 12,913 1,780 Derivative contracts 452,604 502,446 Cash surrender value of bank-owned life insurance 237,006 229,540 Receivable on unsettled securities trades 186,747 19,964 Other assets 385,815 199,101 -------------- -------------- TOTAL ASSETS $ 22,734,648 $ 20,667,701 ============== ============== LIABILITIES AND SHAREHOLDERS' EQUITY Deposits: Demand $ 3,082,379 $ 2,768,769 Interest-bearing transaction 6,562,350 6,203,516 Savings 154,635 156,368 Time 5,183,243 4,330,638 -------------- -------------- Total deposits 14,982,607 13,459,291 Funds purchased and repurchase agreements 3,025,399 3,225,131 Other borrowings 1,522,054 1,027,564 Subordinated debentures 398,407 398,273 Accrued interest, taxes, and expense 133,220 124,029 Bankers' acceptances 12,913 1,780 Derivative contracts 667,034 341,677 Other liabilities 146,757 154,572 -------------- -------------- TOTAL LIABILITIES 20,888,391 18,732,317 Shareholders' equity: Capital, surplus and retained earnings 2,069,143 1,966,618 Accumulated other comprehensive loss (222,886) (31,234) -------------- -------------- TOTAL SHAREHOLDERS' EQUITY 1,846,257 1,935,384 -------------- -------------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 22,734,648 $ 20,667,701 ============== ==============
AVERAGE BALANCE SHEETS - UNAUDITED BOK FINANCIAL CORPORATION (In thousands) Quarter Ended ----------------------------------------------------------------------------------- December 31, September 30, June 30, March 31, December 31, 2008 2008 2008 2008 2007 -------------- -------------- ------------- -------------- -------------- ASSETS Trading securities $ 78,840 $ 66,419 $ 74,058 $ 74,957 $ 29,303 Funds sold and resell agreements 48,246 79,862 72,444 80,735 86,948 Securities: Available for sale 6,409,906 5,945,220 5,880,844 5,438,655 5,574,417 Investment 242,503 239,655 249,723 248,974 249,350 Mortgage trading securities 237,319 126,837 155,612 201,199 138,306 -------------- -------------- ------------- -------------- -------------- Total securities 6,889,728 6,311,712 6,286,179 5,888,828 5,962,073 Residential mortgage loans held for sale 121,184 116,533 105,925 84,291 75,082 Loans: Commercial 7,452,799 7,228,814 6,976,292 6,841,006 6,619,760 Commercial real estate 2,716,465 2,696,503 2,802,292 2,784,640 2,702,449 Residential mortgage 1,641,023 1,655,710 1,606,518 1,510,238 1,504,594 Consumer 1,016,409 1,015,796 1,035,985 961,104 904,358 -------------- -------------- ------------- -------------- -------------- Total loans 12,826,696 12,596,823 12,421,087 12,096,988 11,731,161 Less allowance for loan losses (209,319) (182,844) (145,524) (131,709) (125,996) -------------- -------------- ------------- -------------- -------------- Total loans, net 12,617,377 12,413,979 12,275,563 11,965,279 11,605,165 -------------- -------------- ------------- -------------- -------------- Total earning assets 19,755,374 18,988,504 18,814,168 18,094,090 17,758,570 Cash and due from banks 534,039 499,992 524,922 543,232 546,704 Cash surrender value of bank-owned life insurance 235,195 232,465 229,731 230,283 227,810 Derivative contracts 352,083 900,777 896,569 513,696 387,876 Other assets 1,394,960 1,199,425 1,142,910 1,115,752 1,061,655 -------------- -------------- ------------- -------------- -------------- TOTAL ASSETS $ 22,271,651 $ 21,821,163 $ 21,608,300 $ 20,497,053 $ 19,982,615 ============== ============== ============= ============== ============== LIABILITIES AND SHAREHOLDERS' EQUITY Deposits: Demand $ 2,712,384 $ 2,739,209 $ 2,634,038 $ 2,443,201 $ 2,448,011 Interest-bearing transaction 6,116,465 6,565,935 6,420,291 6,267,021 5,861,544 Savings 155,784 159,856 159,798 156,953 160,170 Time 5,109,303 4,792,366 4,076,167 4,225,141 4,544,802 -------------- -------------- ------------- -------------- -------------- Total deposits 14,093,936 14,257,366 13,290,294 13,092,316 13,014,527 Funds purchased and repurchase agreements 3,095,054 3,061,186 3,126,110 3,061,783 3,158,153 Other borrowings 1,986,857 1,390,233 2,267,076 1,340,846 936,353 Subordinated debentures 398,392 398,361 398,336 398,241 398,109 Derivative contracts 494,778 509,057 239,211 297,660 276,992 Other liabilities 312,962 278,363 302,482 321,061 303,582 -------------- -------------- ------------- -------------- -------------- TOTAL LIABILITIES 20,381,979 19,894,566 19,623,509 18,511,907 18,087,716 Shareholders' equity 1,889,672 1,926,597 1,984,791 1,985,146 1,894,899 -------------- -------------- ------------- -------------- -------------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 22,271,651 $ 21,821,163 $ 21,608,300 $ 20,497,053 $ 19,982,615 ============== ============== ============= ============== ==============
STATEMENTS OF EARNINGS - UNAUDITED BOK FINANCIAL CORPORATION (In thousands, except per share data) Quarter Ended Year Ended -------------------------------- ------------------------------ December 31, December 31, -------------------------------- ------------------------------ 2008 2007 2008 2007 -------------- -------------- ------------- -------------- Interest revenue $ 262,160 $ 297,096 $ 1,061,645 $ 1,160,737 Interest expense 85,713 155,807 414,783 616,252 -------------- -------------- ------------- -------------- Net interest revenue 176,447 141,289 646,862 544,485 Provision for credit losses 73,001 13,200 202,593 34,721 -------------- -------------- ------------- -------------- Net interest revenue after provision for credit losses 103,446 128,089 444,269 509,764 Other operating revenue Brokerage and trading revenue 23,507 20,402 42,804 62,542 Transaction card revenue 25,177 23,512 100,153 90,425 Trust fees and commissions 17,143 20,145 78,979 78,231 Deposit service charges and fees 29,239 29,938 117,528 109,218 Mortgage banking revenue 6,429 6,912 27,074 22,275 Bank-owned life insurance 2,682 2,614 10,681 10,058 Margin asset fees 187 2,012 8,548 4,800 Other revenue 5,503 7,819 28,233 28,073 -------------- -------------- ------------- -------------- Total fees and commissions 109,867 113,354 414,000 405,622 Gain (loss) on asset sales (2) (1,316) (660) (928) Gain (loss) on securities, net 20,156 (6,251) 21,637 (8,328) Gain (loss) on derivatives, net (2,219) 1,529 1,299 2,282 -------------- -------------- ------------- -------------- Total other operating revenue 127,802 107,316 436,276 398,648 Other operating expense Personnel 87,695 84,512 352,947 328,705 Business promotion 7,283 6,528 23,536 21,888 Professional fees and services 7,923 6,209 27,045 22,795 Net occupancy and equipment 14,901 15,466 60,632 57,284 Insurance 3,216 843 11,988 3,017 Data processing and communications 19,720 19,086 78,047 72,733 Printing, postage and supplies 3,823 4,221 16,433 16,570 Net (gains) losses and operating expenses of repossessed assets 1,006 120 1,019 691 Amortization of intangible assets 1,967 2,382 7,661 7,358 Mortgage banking costs 4,967 4,225 22,513 13,111 Change in fair value of mortgage servicing rights 26,432 3,344 34,515 2,893 Visa retrospective responsibility obligation (1,700) 2,767 (2,767) 2,767 Other expense 8,209 8,024 28,835 25,175 -------------- -------------- ------------- -------------- Total other operating expense 185,442 157,727 662,404 574,987 Income before taxes 45,806 77,678 218,141 333,425 Federal and state income taxes 10,363 26,518 64,909 115,761 -------------- -------------- ------------- -------------- Net income $ 35,443 $ 51,160 $ 153,232 $ 217,664 ============== ============== ============= ============== Average shares outstanding: Basic 67,294,069 67,051,499 67,274,457 67,083,200 Diluted 67,489,533 67,482,798 67,557,220 67,550,538 Net income (loss) per share: Basic $ 0.53 $ 0.76 $ 2.28 $ 3.24 ============== ============== ============= ============== Diluted $ 0.53 $ 0.76 $ 2.27 $ 3.22 ============== ============== ============= ==============
FINANCIAL HIGHLIGHTS - UNAUDITED BOK FINANCIAL CORPORATION (In thousands, except ratio and share data) Quarter Ended ----------------------------------------------------------------------------------- December 31, September 30, June 30, March 31, December 31, 2008 2008 2008 2008 2007 -------------- -------------- ------------- -------------- -------------- Capital: Period-end shareholders' equity $ 1,846,257 $ 1,940,503 $ 1,942,376 $ 1,992,570 $ 1,935,384 Risk-based capital ratios: Tier 1 9.42% 9.25% 8.69% 9.35% 9.38% Total capital 12.84% 12.55% 11.69% 12.44% 12.54% Leverage ratio 7.89% 7.94% 7.83% 8.23% 8.20% Period-end tangible common equity ratio 6.64% 7.16% 7.15% 7.83% 7.72% Common stock: Book value per share $ 27.36 $ 28.78 $ 28.78 $ 29.57 $ 28.75 Market value per share: High $ 54.42 $ 53.94 $ 60.74 $ 55.23 $ 55.43 Low $ 38.40 $ 38.61 $ 49.11 $ 46.82 $ 51.44 Cash dividends paid $ 15,358 $ 15,170 $ 15,180 $ 13,484 $ 13,438 Dividend payout ratio 43.33% 26.76% (1307.49%) 21.66% 26.27% Shares outstanding, net 67,473,086 67,433,837 67,488,388 67,383,318 67,306,380 Stock buy-back program: Shares repurchased - 75,000 - 91,114 33,583 Amount $ - $ 3,337,000 $ - $ 4,655,477 $ 1,770,368 -------------- -------------- -------------- -------------- -------------- Average price per share $ - $ 44.49 $ - $ 51.10 $ 52.72 ============== ============== ============= ============== ============== Performance ratios (quarter annualized): Return on average assets 0.63% 1.03% (0.02%) 1.22% 1.02% Return on average equity 7.46% 11.70% (0.24%) 12.62% 10.71% Net interest margin 3.57% 3.48% 3.44% 3.31% 3.22% Efficiency ratio 55.14% 54.19% 70.56% 57.60% 60.04% Other data: Gain (loss) on economic hedge of mortgage servicing rights $ 15,089 $ 1,186 $ (5,518) $ 191 $ 1,288 Trust assets $ 30,454,512 $ 33,242,296 $ 34,433,874 $ 35,524,730 $ 36,288,592 Mortgage servicing portfolio $ 5,256,159 $ 5,167,584 $ 5,075,285 $ 4,967,384 $ 4,893,011 Mortgage loan fundings during the quarter $ 214,521 $ 258,171 $ 288,937 $ 256,617 $ 239,620 Mortgage loan refinances to total fundings 34.84% 25.14% 36.76% 51.19% 35.49% Tax equivalent adjustment $ 2,063 $ 1,927 $ 2,084 $ 2,154 $ 2,502 Unrealized gain (loss) on available for sale securities $ (330,973) $ (158,652) $ (91,226) $ (28,375) $ (37,362)
QUARTERLY EARNINGS TRENDS - UNAUDITED BOK FINANCIAL CORPORATION (In thousands, except ratio and per share data) Quarter Ended ----------------------------------------------------------------------------------- December 31, September 30, June 30, March 31, December 31, 2008 2008 2008 2008 2007 -------------- -------------- ------------- -------------- -------------- Interest revenue $ 262,160 $ 263,358 $ 260,086 $ 276,041 $ 297,096 Interest expense 85,713 99,010 101,147 128,913 155,807 -------------- -------------- ------------- -------------- -------------- Net interest revenue 176,447 164,348 158,939 147,128 141,289 Provision for credit losses 73,001 52,711 59,310 17,571 13,200 -------------- -------------- ------------- -------------- -------------- Net interest revenue after provision for credit losses 103,446 111,637 99,629 129,557 128,089 Other operating revenue Brokerage and trading revenue 23,507 30,846 (35,462) 23,913 20,402 Transaction card revenue 25,177 25,632 25,786 23,558 23,512 Trust fees and commissions 17,143 20,100 20,940 20,796 20,145 Deposit service charges and fees 29,239 30,404 30,199 27,686 29,938 Mortgage banking revenue 6,429 6,230 7,198 7,217 6,912 Bank-owned life insurance 2,682 2,829 2,658 2,512 2,614 Margin asset fees 187 1,934 4,460 1,967 2,012 Other revenue 5,503 8,691 7,824 6,215 7,819 -------------- -------------- ------------- -------------- -------------- Total fees and commissions 109,867 126,666 63,603 113,864 113,354 Gain (loss) on asset sales (2) (839) 216 (35) (1,316) Gain (loss) on securities, net 20,156 2,103 (5,242) 4,620 (6,251) Gain (loss) on derivatives, net (2,219) 4,366 (2,961) 2,113 1,529 -------------- -------------- ------------- -------------- -------------- Total other operating revenue 127,802 132,296 55,616 120,562 107,316 Other operating expense Personnel 87,695 87,549 89,597 88,106 84,512 Business promotion 7,283 5,837 5,777 4,639 6,528 Professional fees and services 7,923 6,501 6,973 5,648 6,209 Net occupancy and equipment 14,901 15,570 15,100 15,061 15,466 Insurance 3,216 2,436 2,626 3,710 843 Data processing and communications 19,720 19,911 19,523 18,893 19,086 Printing, postage and supplies 3,823 4,035 4,156 4,419 4,221 Net (gains) losses and operating expenses of repossessed assets 1,006 (136) (229) 378 120 Amortization of intangible assets 1,967 1,884 1,885 1,925 2,382 Mortgage banking costs 4,967 5,811 6,054 5,681 4,225 Change in fair value of mortgage servicing rights 26,432 5,554 767 1,762 3,344 Visa retrospective responsibility obligation (1,700) 1,700 - (2,767) 2,767 Other expense 8,209 7,638 7,039 5,949 8,024 -------------- -------------- ------------- -------------- -------------- Total other operating expense 185,442 164,290 159,268 153,404 157,727 Income before taxes 45,806 79,643 (4,023) 96,715 77,678 Federal and state income taxes 10,363 22,958 (2,862) 34,450 26,518 -------------- -------------- ------------- -------------- -------------- Net income $ 35,443 $ 56,685 $ (1,161) $ 62,265 $ 51,160 ============== ============== ============= ============== ============== Average shares outstanding: Basic 67,294,069 67,263,317 67,452,181 67,202,128 67,051,499 Diluted 67,489,533 67,471,376 67,452,181 67,549,960 67,482,798 Net income (loss) per share: Basic $ 0.53 $ 0.84 $ (0.02) $ 0.93 $ 0.76 Diluted $ 0.53 $ 0.84 $ (0.02) $ 0.92 $ 0.76
LOANS BY PRINCIPAL MARKET AREA - UNAUDITED BOK FINANCIAL CORPORATION (In thousands) Quarter Ended ----------------------------------------------------------------------------------- December 31, September 30, June 30, March 31, December 31, 2008 2008 2008 2008 2007 -------------- -------------- ------------- -------------- -------------- Oklahoma: Commercial $ 3,356,520 $ 3,368,823 $ 3,228,179 $ 3,248,424 $ 3,219,176 Commercial real estate 843,576 827,357 875,546 940,686 890,703 Residential mortgage 1,196,924 1,134,066 1,099,277 1,080,882 1,080,483 Consumer 579,809 580,211 601,184 586,695 576,070 -------------- -------------- ------------- -------------- -------------- Total Oklahoma 5,976,829 5,910,457 5,804,186 5,856,687 5,766,432 Texas: Commercial 2,353,860 2,205,169 2,166,925 2,124,192 1,985,645 Commercial real estate 825,769 853,653 889,364 838,781 846,303 Residential mortgage 315,438 307,655 299,996 262,305 275,533 Consumer 212,820 214,133 204,081 168,949 142,958 -------------- -------------- ------------- -------------- -------------- Total Texas 3,707,887 3,580,610 3,560,366 3,394,227 3,250,439 New Mexico: Commercial 418,732 442,644 451,225 472,543 473,262 Commercial real estate 286,574 281,061 271,177 258,731 252,884 Residential mortgage 98,018 95,165 89,469 85,834 84,336 Consumer 18,616 18,296 16,977 14,977 16,105 -------------- -------------- ------------- -------------- -------------- Total New Mexico 821,940 837,166 828,848 832,085 826,587 Arkansas: Commercial 103,446 104,630 96,775 100,489 106,328 Commercial real estate 134,015 127,925 124,049 130,956 124,317 Residential mortgage 16,875 16,941 19,527 16,621 16,393 Consumer 175,647 183,543 197,979 180,551 163,626 -------------- -------------- ------------- -------------- -------------- Total Arkansas 429,983 433,039 438,330 428,617 410,664 Colorado: Commercial 660,546 598,519 489,844 486,525 490,373 Commercial real estate 261,820 266,739 276,062 261,099 252,537 Residential mortgage 53,875 49,676 38,517 31,011 26,556 Consumer 16,141 18,328 16,367 17,552 16,457 -------------- -------------- ------------- -------------- -------------- Total Colorado 992,382 933,262 820,790 796,187 785,923 Arizona: Commercial 211,356 213,861 207,173 174,360 157,341 Commercial real estate 319,525 326,615 351,058 361,567 342,673 Residential mortgage 62,123 58,800 53,321 50,719 46,269 Consumer 6,075 5,551 5,315 6,815 5,522 -------------- -------------- ------------- -------------- -------------- Total Arizona 599,079 604,827 616,867 593,461 551,805 Kansas: Commercial 307,143 340,156 398,452 350,325 305,380 Commercial real estate 29,969 30,642 40,241 40,104 41,055 Residential mortgage 9,321 7,650 7,490 2,397 1,726 Consumer 1,473 2,161 2,468 1,665 559 -------------- -------------- ------------- -------------- -------------- Total Kansas 347,906 380,609 448,651 394,491 348,720 -------------- -------------- ------------- -------------- -------------- TOTAL BOK FINANCIAL $ 12,876,006 $ 12,679,970 $ 12,518,038 $ 12,295,755 $ 11,940,570 ============== ============== ============= ============== ==============
DEPOSITS BY PRINCIPAL MARKET AREA - UNAUDITED BOK FINANCIAL CORPORATION (In thousands) Quarter Ended ----------------------------------------------------------------------------------- December 31, September 30, June 30, March 31, December 31, 2008 2008 2008 2008 2007 -------------- -------------- ------------- -------------- -------------- Oklahoma: Demand $ 1,683,374 $ 1,681,325 $ 1,455,997 $ 1,464,258 $ 1,394,861 Interest-bearing: Transaction 4,117,729 4,151,430 3,997,136 3,659,002 3,477,208 Savings 86,476 86,900 90,100 88,141 80,467 Time 3,104,933 3,036,297 2,672,401 2,230,110 2,426,822 -------------- -------------- ------------- -------------- -------------- Total interest-bearing 7,309,138 7,274,627 6,759,637 5,977,253 5,984,497 -------------- -------------- ------------- -------------- -------------- Total Oklahoma 8,992,512 8,955,952 8,215,634 7,441,511 7,379,358 -------------- -------------- ------------- -------------- -------------- Texas: Demand 1,067,456 956,846 1,046,651 940,141 1,035,134 Interest-bearing: Transaction 1,460,576 1,543,974 1,713,131 1,708,424 1,753,843 Savings 32,071 32,400 33,207 32,191 34,618 Time 857,416 794,911 723,146 759,892 800,460 -------------- -------------- ------------- -------------- -------------- Total interest-bearing 2,350,063 2,371,285 2,469,484 2,500,507 2,588,921 -------------- -------------- ------------- -------------- -------------- Total Texas 3,417,519 3,328,131 3,516,135 3,440,648 3,624,055 -------------- -------------- ------------- -------------- -------------- New Mexico: Demand 155,345 176,477 168,621 169,449 151,231 Interest-bearing: Transaction 397,382 376,941 417,607 425,976 432,919 Savings 16,289 16,316 16,432 16,141 15,146 Time 522,894 475,560 445,505 455,861 486,868 -------------- -------------- ------------- -------------- -------------- Total interest-bearing 936,565 868,817 879,544 897,978 934,933 -------------- -------------- ------------- -------------- -------------- Total New Mexico 1,091,910 1,045,294 1,048,165 1,067,427 1,086,164 -------------- -------------- ------------- -------------- -------------- Arkansas: Demand 16,293 23,565 21,142 20,493 13,247 Interest-bearing: Transaction 38,566 19,146 24,524 22,091 19,027 Savings 1,083 865 895 945 883 Time 75,579 47,684 39,305 39,803 40,692 -------------- -------------- ------------- -------------- -------------- Total interest-bearing 115,228 67,695 64,724 62,839 60,602 -------------- -------------- ------------- -------------- -------------- Total Arkansas 131,521 91,260 85,866 83,332 73,849 -------------- -------------- ------------- -------------- -------------- Colorado: Demand 116,637 115,677 109,697 99,584 117,939 Interest-bearing: Transaction 480,113 440,888 507,260 529,771 446,427 Savings 17,660 19,300 20,245 22,233 23,806 Time 532,475 428,872 423,014 455,262 539,523 -------------- -------------- ------------- -------------- -------------- Total interest-bearing 1,030,248 889,060 950,519 1,007,266 1,009,756 -------------- -------------- ------------- -------------- -------------- Total Colorado 1,146,885 1,004,737 1,060,216 1,106,850 1,127,695 -------------- -------------- ------------- -------------- -------------- Arizona: Demand 39,424 45,725 49,895 46,508 46,701 Interest-bearing: Transaction 56,985 64,463 73,034 84,648 65,788 Savings 1,014 1,033 1,233 878 1,435 Time 34,290 14,433 6,364 8,395 11,603 -------------- -------------- ------------- -------------- -------------- Total interest-bearing 92,289 79,929 80,631 93,921 78,826 -------------- -------------- ------------- -------------- -------------- Total Arizona 131,713 125,654 130,526 140,429 125,527 -------------- -------------- ------------- -------------- -------------- Kansas: Demand 3,850 5,548 7,157 6,580 9,656 Interest-bearing: Transaction 10,999 9,780 10,342 8,754 8,304 Savings 42 33 26 92 13 Time 55,656 19,794 51,649 33,837 24,670 -------------- -------------- ------------- -------------- -------------- Total interest-bearing 66,697 29,607 62,017 42,683 32,987 -------------- -------------- ------------- -------------- -------------- Total Kansas 70,547 35,155 69,174 49,263 42,643 -------------- -------------- ------------- -------------- -------------- TOTAL BOK FINANCIAL $ 14,982,607 $ 14,586,183 $ 14,125,716 $ 13,329,460 $ 13,459,291 ============== ============== ============= ============== ==============
NET INTEREST MARGIN TREND - UNAUDITED BOK FINANCIAL CORPORATION Quarter Ended ----------------------------------------------------------------------------------- December 31, September 30, June 30, March 31, December 31, 2008 2008 2008 2008 2007 -------------- -------------- ------------- -------------- -------------- TAX-EQUIVALENT ASSETS YIELDS Trading securities 6.55% 5.61% 6.88% 7.69% 6.62% Funds sold and resell agreements 0.76% 1.44% 1.97% 4.18% 5.95% Securities: Taxable 5.12% 5.09% 5.08% 5.11% 4.86% Tax-exempt 6.43% 6.64% 6.46% 6.38% 7.19% -------------- -------------- ------------- -------------- -------------- Total securities 5.17% 5.15% 5.14% 5.17% 4.99% Total loans 5.27% 5.69% 5.79% 6.59% 7.50% Less Allowance for loan losses - - - - - -------------- -------------- ------------- -------------- -------------- Total loans, net 5.35% 5.77% 5.86% 6.66% 7.58% -------------- -------------- ------------- -------------- -------------- Total tax-equivalent yield on earning assets 5.28% 5.55% 5.61% 6.17% 6.70% COST OF INTEREST-BEARING LIABILITIES Interest-bearing deposits: Interest-bearing transaction 1.51% 1.72% 1.74% 2.71% 3.34% Savings 0.37% 0.37% 0.37% 0.61% 0.86% Time 3.28% 3.39% 3.77% 4.35% 4.68% -------------- -------------- ------------- -------------- -------------- Total interest-bearing deposits 2.29% 2.39% 2.50% 3.33% 3.88% Funds purchased and repurchase agreements 0.94% 1.98% 1.95% 3.11% 4.42% Other borrowings 1.51% 2.56% 2.49% 3.51% 4.92% Subordinated debt 5.48% 5.55% 5.88% 5.45% 5.69% -------------- -------------- ------------- -------------- -------------- Total cost of interest-bearing liabilities 2.02% 2.41% 2.47% 3.36% 4.10% -------------- -------------- ------------- -------------- -------------- Tax-equivalent net interest revenue spread 3.26% 3.14% 3.14% 2.81% 2.60% Effect of noninterest-bearing funding sources and ot0.31% 0.34% 0.30% 0.50% 0.62% -------------- -------------- ------------- -------------- -------------- Tax-equivalent net interest margin 3.57% 3.48% 3.44% 3.31% 3.22% ============== ============== ============= ============== ==============
CREDIT QUALITY INDICATORS BOK FINANCIAL CORPORATION (In thousands, except ratios) Quarter Ended ----------------------------------------------------------------------------------- December 31, September 30, June 30, March 31, December 31, 2008 2008 2008 2008 2007 -------------- -------------- ------------- -------------- -------------- Nonperforming assets: Nonaccruing loans (B): Commercial $ 134,846 $ 105,757 $ 69,679 $ 41,966 $ 42,981 Commercial real estate 137,279 78,235 60,456 40,399 25,319 Residential mortgage 27,387 27,075 17,861 15,960 15,272 Consumer 561 758 611 812 718 -------------- -------------- ------------- -------------- -------------- Total nonaccruing loans $ 300,073 $ 211,825 $ 148,607 $ 99,137 $ 84,290 Renegotiated loans (A) 13,039 12,326 11,840 11,850 10,394 Real estate and other repossessed assets 29,179 28,088 21,025 15,112 9,475 -------------- -------------- ------------- -------------- -------------- Total nonperforming assets $ 342,291 $ 252,239 $ 181,472 $ 126,099 $ 104,159 ============== ============== ============= ============== ============== Nonaccruing loans by principal market (B): Oklahoma $ 108,367 $ 87,885 $ 57,155 $ 52,211 $ 47,977 Texas 42,934 29,141 20,860 8,157 4,983 New Mexico 16,016 12,293 9,838 7,497 11,118 Arkansas 3,263 3,386 2,924 2,866 1,635 Colorado 32,415 20,980 23,812 8,101 9,222 Arizona 80,994 54,832 33,482 18,811 9,355 Kansas 16,084 3,308 536 1,494 - -------------- -------------- ------------- -------------- -------------- Total nonaccruing loans $ 300,073 $ 211,825 $ 148,607 $ 99,137 $ 84,290 ============== ============== ============= ============== ============== Nonaccruing loans by loan portfolio sector (B): Commercial: Energy $ 49,364 $ 49,839 $ 12,342 $ 475 $ 529 Manufacturing 7,343 6,479 6,731 9,274 9,915 Wholesale / retail 18,773 7,806 3,735 3,868 3,792 Agriculture 680 755 811 1,848 380 Services 36,873 26,581 30,080 23,849 25,468 Healthcare 12,118 3,300 3,791 2,079 2,301 Other 9,695 10,997 12,189 573 596 -------------- -------------- ------------- -------------- -------------- Total commercial 134,846 105,757 69,679 41,966 42,981 Commercial real estate: Land development and construction 76,082 53,624 45,291 29,439 13,466 Retail 15,625 13,011 7,591 5,258 5,259 Office 7,637 3,022 3,304 1,985 1,013 Multifamily 24,950 896 896 1,906 3,998 Industrial 6,287 390 396 - - Other commercial real estate 6,698 7,292 2,978 1,811 1,583 -------------- -------------- ------------- -------------- -------------- Total commercial real estate 137,279 78,235 60,456 40,399 25,319 Residential mortgage: Permanent mortgage 26,233 26,401 17,039 15,135 14,541 Home equity 1,154 674 822 825 731 -------------- -------------- ------------- -------------- -------------- Total residential mortgage 27,387 27,075 17,861 15,960 15,272 Consumer 561 758 611 812 718 -------------- -------------- ------------- -------------- -------------- Total nonaccruing loans $ 300,073 $ 211,825 $ 148,607 $ 99,137 $ 84,290 ============== ============== ============= ============== ============== Performing loans 90 days past due $ 19,123 $ 20,213 $ 10,683 $ 11,266 $ 5,575 Gross charge-offs $ 35,681 $ 33,926 $ 41,526 $ 11,078 $ 8,930 Recoveries 2,022 13,712 2,535 2,221 1,584 -------------- -------------- ------------- -------------- -------------- Net charge-offs $ 33,659 $ 20,214 $ 38,991 $ 8,857 $ 7,346 ============== ============== ============= ============== ============== Provision for credit losses $ 73,001 $ 52,711 $ 59,310 $ 17,571 $ 13,200 Reserve for loan losses to period end loans 1.81% 1.47% 1.23% 1.11% 1.06% Combined reserves for credit losses to period end loans 1.93% 1.65% 1.41% 1.27% 1.24% Nonperforming assets to period end loans and repossessed assets 2.65% 1.98% 1.45% 1.02% 0.87% Net charge-offs (annualized) to average loans 1.05% 0.64% 1.26% 0.29% 0.25% Reserve for loan losses to nonaccruing loans 77.73% 88.05% 103.64% 137.77% 150.29% Combined reserves for credit losses to nonaccruing loans 82.78% 98.69% 118.81% 157.60% 175.03% (A) includes residential mortgage loans guaranteed $ 10,396 $ 9,604 $ 8,638 $ 8,386 $ 7,550 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. $ 13,181 $ 13,262 $ 11,973 $ 8,101 $ 8,412
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