-----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, Pz3ygwfDkbk4kJS+Bf16BMkShyK2OKplX8842C2wLsmi2t9967utsx4Q2ssI3wLo vrc5JpmJga6Bj9qje7oAug== 0000875357-09-000031.txt : 20091028 0000875357-09-000031.hdr.sgml : 20091028 20091028165931 ACCESSION NUMBER: 0000875357-09-000031 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20090930 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20091028 DATE AS OF CHANGE: 20091028 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: 091142272 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 form8k093009.txt FORM 8-K 093009 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 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 October 28, 2009, BOK Financial Corporation ("BOK Financial") issued a press release announcing its financial results for the three and nine months ended September 30, 2009 ("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 28, 2009, in connection with issuance of the Press Release, BOK Financial released financial information related to the three and nine months ended September 30, 2009 ("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 28, 2009 titled "BOK Financial Reports $51 Million Third Quarter Income - Net Interest Revenue Growth Drives Earnings" 99(b) Financial Information for the Three and Nine Months Ended September 30, 2009 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 28, 2009 EX-99 2 press093009.txt (A) PRESS RELEASE Exhibit 99 (a) BOK Financial Reports $51 Million Third Quarter Income Net Interest Revenue Growth Drives Earnings TULSA, Okla. (Wednesday October 28, 2009) - BOK Financial Corporation reported net income for the third quarter of 2009 of $50.7 million or $0.75 per diluted share. Net income for the previous quarter totaled $52.1 million or $0.77 per diluted share. Net income for the nine months ended September 30, 2009 totaled $157.8 million or $2.33 per diluted share compared with $117.8 million or $1.74 per diluted share for the nine months ended September 30, 2008. Net income for the nine months ended September 30, 2008 was impacted by $67.6 million of pre-tax charges for loan and energy derivative credit exposure related to a customer bankruptcy filing which reduced net income by approximately $43.9 million or $0.65 per diluted share. "BOK Financial is pleased with solid performance this quarter, especially considering the continued challenges we see in the economy," said President and CEO Stan Lybarger. "Earnings for the third quarter were based on continued net interest revenue growth, solid fee revenue and controlled operating expenses. The fair value of our securities portfolio improved by $159 million which further strengthened our balance sheet and capital position. However, we recognize the banking industry is far from the end of this depressed credit cycle and we added $19 million to our reserves for credit losses in response to an increase in our non-performing assets." Highlights of the third quarter of 2009 included: o Net interest revenue totaled $180.5 million, up $4.9 million compared to the second quarter of 2009. Net interest margin was 3.63% for the third quarter of 2009, up 8 basis points over the second quarter of 2009 largely due to higher loan yields and lower funding costs. o Fees and commission revenue totaled $120.0 million, down $3.1 million from the previous quarter. Mortgage banking revenue decreased $6.7 million due to lower volume of loans originated during the quarter. Brokerage and trading revenue and deposit service charges increased over the previous quarter. o Operating expenses totaled $178.7 million, up $3.0 million over the second quarter of 2009. Net losses and operating expenses of repossessed assets and personnel expenses increased over the previous quarter. o Combined reserve for credit losses totaled $293 million or 2.52% of outstanding loans at September 30, 2009, up from $274 million or 2.27% of outstanding loans at June 30, 2009. Net loans charged off and provision for credit losses were $36.0 million and $55.1 million, respectively, for the third quarter of 2009. o Non-performing assets totaled $490 million or 4.19% of outstanding loans and repossessed assets at September 30, 2009 compared to $446 million or 3.67% of outstanding loans and repossessed assets at June 30, 2009. o Available for sale securities totaled $8.4 billion, at September 30, 2009, up $1.1 billion since June 30, 2009. The increase consisted of $1.0 billion of net securities purchased during the quarter and a $159 million net increase in the fair value of securities held in the portfolio. Purchased securities consisted primarily of mortgage-backed securities issued by U.S. government agencies. o Outstanding loan balances were $11.6 billion at September 30, 2009, down $458 million since June 30, 2009. All major loan categories decreased during the third quarter largely due to reduced customer demand, normal repayment trends and management decisions to exit certain loan types. o Average deposit balances totaled $15.1 billion for the third quarter of 2009, down $202 million compared with average deposits for the second quarter of 2009. Total period-end deposits grew $440 million in the third quarter of 2009 to $15.1 billion. Growth in demand and interest-bearing transaction deposits was partially offset by decreases in higher-costing time deposits. o Tangible common equity ratio and tier 1 common equity ratio increased to 7.78% and 10.45%, respectively, at September 30, 2009 from 7.55% and 9.77%, respectively, at June 30, 2009 largely due to lower unrealized losses on securities. The tangible common equity ratio and tier 1 common equity ratio are non-GAAP measures of capital strength used by the Company and investors based on shareholders' equity as defined by generally accepted accounting principles in the United States of America ("GAAP") minus intangible assets and equity that does not benefit common shareholders such as preferred equity and equity provided by the U.S. Treasury's Troubled Asset Relief Program ("TARP") Capital Purchase Program. We chose not to participate in the TARP Capital Purchase Program. Tier 1 capital ratios were 10.56% at September 30, 2009 and 9.86% at June 30, 2009. o The Company paid a cash dividend of $16.3 million or $0.24 per common share during the third quarter of 2009. On October 27, 2009, the board of directors declared a cash dividend of $0.24 per common share payable on or about December 2, 2009 to shareholders of record as of November 16, 2009. Net Interest Revenue Net interest revenue totaled $180.5 million, up $4.9 million over the second quarter of 2009. Net interest margin was 3.63% for the third quarter of 2009 and 3.55% for the second quarter of 2009. The increase in net interest margin over the previous quarter resulted from improved loan pricing and lower funding costs. Loan yield increased 3 basis points over the previous quarter as wider spreads continue to be priced into the loan portfolio. The increased loan yield partially offset a 33 basis point decrease in securities portfolio yield. The cost of interest-bearing liabilities decreased 22 basis points, including a 26 basis point decrease in the cost of interest-bearing deposits and a 9 basis point decrease in the cost of other borrowed funds. Average earning assets decreased $237 million during the third quarter of 2009, primarily due to a decrease of $516 million in average outstanding loans and a $110 million decrease in average residential mortgage loans held for sale, partially offset by a $406 million increase in average securities, primarily mortgage-backed securities issued by U.S. government agencies. Average deposits decreased $202 million compared with the second quarter of 2009, due primarily to a $719 million decrease in average time deposits. The Company chose not to renew certain higher-costing time deposits as they matured. The decrease in time deposits was partially offset by a $308 million increase in average interest-bearing transaction accounts and a $209 million increase in average demand deposits. Average funds purchased, repurchase agreements and other borrowed funds increased $189 million from the second quarter of 2009. Fees and Commissions Revenue Fees and commissions revenue totaled $120.0 million for the third quarter of 2009, down from $123.1 million for the second quarter of 2009. Mortgage banking revenue totaled $13.2 million for the third quarter of 2009 and $19.9 million for the second quarter of 2009, still well above historic levels. Mortgage loan originations totaled $536 million for the third quarter of 2009, down from the historic high of $1.0 billion in the second quarter of 2009 as the impact of government initiatives to lower national mortgage interest rates began to lessen. The decrease in mortgage-banking revenue was partially offset by growth in brokerage and trading revenue and deposit service charges. Brokerage and trading revenue increased $3.2 million primarily due to investment banking activity. Deposit service charges increased $2.0 million due to higher overdraft fees. Operating Expenses Operating expenses totaled $178.7 million for the third quarter of 2009, up $3.0 million from the preceding quarter. Operating expenses increased $10.8 million due to changes in the fair value of mortgage servicing rights and decreased $11.8 million due to an FDIC special assessment in the second quarter of 2009. Excluding the impact of the change in the fair value of the mortgage servicing rights and the FDIC special assessment, operating expense increased $3.9 million. Personnel expenses were up $1.8 million and net losses and operating expenses of repossessed assets were up $2.5 million. All other operating expenses were down $433 thousand due to Company-wide initiatives to control operating expenses. Credit Quality Non-performing assets continued to increase across most sectors of the loan portfolio and geographic markets during the third quarter of 2009. Non-performing assets totaled $490 million or 4.19% of outstanding loans and repossessed assets at September 30, 2009 which consisted of non-accruing loans of $383 million, renegotiated loans of $17 million (including $11 million of residential mortgage loans guaranteed by U.S. government agencies) and $90 million of real estate and other repossessed assets. Total non-performing assets increased $44 million during the third quarter. Non-accruing loans totaled $383 million or 3.30% of outstanding loans at September 30, 2009, compared with $353 million or 2.92% of outstanding loans at June 30, 2009. Approximately $111 million of non-accruing loans have been charged-down from original values of $234 million to amounts management expects to recover. During the third quarter of 2009, $105 million of new non-accruing loans were identified, offset by $28 million in charge offs, $21 million in foreclosures and $13 million in payments received. In addition, the Company sold $25 million of the face amount of its SemGroup bankruptcy claims which reduced non-accruing energy loans by $13 million. Non-accruing commercial loans totaled $128 million or 2.01% of total commercial loans at September 30, 2009. Non-accruing commercial loans increased $1.8 million since June 30, 2009. Newly identified non-accruing commercial loans totaled $36 million, primarily in the energy and services sector of the portfolio. Non-accruing commercial real estate loans totaled $212 million or 8.30% of outstanding commercial real estate loans at September 30, 2009. Total non-accruing commercial real estate loans increased $23 million since June 30, 2009, including a $16 million increase in loans secured by land, residential lots and residential construction properties, $4.7 million increase in loans secured by retail facilities and a $3.7 million increase in loans secured by commercial office buildings. Non-accruing commercial real estate loans attributed to various markets included $99 million or 38% of commercial real estate loans in Arizona, $39 million or 16% of commercial real estate loans in Colorado, $31 million or 4% of commercial real estate loans in Oklahoma, $22 million or 6% of commercial real estate loans in New Mexico and $16 million or 3% of commercial real estate loans in Texas. Non-accruing residential mortgage loans totaled $38 million or 2.09% of outstanding residential mortgage loans at September 30, 2009, a $2.4 million increase over June 30, 2009. The distribution of non-accruing residential mortgage loans among various markets included $14 million or 4% of mortgage loans in Texas, $12 million or 1% of mortgage loans in Oklahoma and $6 million or 11% of mortgage loans in Arizona. Mortgage loans past due 30 to 89 days were $32 million compared to $27 million at June 30, 2009. The combined reserve for credit losses totaled $293 million or 2.52% of outstanding loans and 77% of non-accruing loans at September 30, 2009. The allowance for loan losses was $281 million and the reserve for off-balance sheet credit losses was $12 million. During the third quarter of 2009, the Company recognized a $55.1 million provision for credit losses. Net losses charged against the allowance for loan losses totaled $36.0 million or 1.21% annualized of average outstanding loans. Real estate and other repossessed assets totaled $90 million at September 30, 2009, up $14 million from June 30, 2009. Real estate and other repossessed assets increased by $21 million in additions offset by $4 million in sales and $3 million in write-downs based on updated appraisals. Real estate and other repossessed assets included $50 million of 1-4 family residential properties and residential land development properties, $22 million of developed commercial real estate properties, $8 million of undeveloped land, $7 million of equipment, and $3 million of automobiles. The distribution of real estate owned and other repossessed assets among various markets included $35 million in Arizona, $18 million in Texas, $8 million in New Mexico, $8 million in Colorado, $7 million in Kansas City, $7 million in Oklahoma and $6 million in Arkansas. 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 $345 million at September 30, 2009. These loans are primarily to borrowers in the Company's primary market areas, including $242 million in Oklahoma, $38 million in Arkansas, $20 million in New Mexico, $17 million Kansas City and $16 million in Texas. At September 30, 2009, approximately 4.81% of these loans are non-performing and 6.27% were past due 30 to 89 days. A separate reserve for credit risk of $11 million is available for losses on these loans. Securities and Derivatives Available for sale securities totaled $8.4 billion at September 30, 2009, up $1.1 billion since June 30, 2009. The increase in the securities portfolio included $1.0 billion of net securities purchased and a $159 million increase in the net fair value. The available for sale portfolio consisted primarily of mortgage-backed securities, including $6.9 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. The Company continued a strategy to increase holdings of mortgage-backed securities during the third quarter. This strategy recognizes attractive spreads over funding costs on these securities. Credit risk is controlled by investing in securities fully backed by U.S. government agencies. Interest rate risk is mitigated by investing in short-duration securities that would have limited extension exposure from rising interest rates. The portfolio of available for sale securities had a net unrealized gain of $31 million at September 30, 2009, a $159 million improvement from June 30, 2009. Net unrealized gains on mortgage-backed securities issued by U.S. government agencies increased by $59 million and net unrealized losses on privately-issued mortgage backed securities decreased by $82 million. Approximately $635 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 $137 million at September 30, 2009. Aggregate losses on these same securities were $182 million at June 30, 2009. The Company recognized a $3.4 million other-than-temporary impairment charge against earnings in the third quarter related to certain mortgage-backed securities due to further declines in the projected cash flows. Net gains on securities totaled $12.3 million for the third quarter of 2009, compared with $6.5 million for the second quarter of 2009 and $2.1 million for the third quarter of 2008. Three Months Ended ---------------------------------------- Sept. 30, June 30, Sept. 30, 2009 2009 2008 Net gain on available for sale securities $ 8,706 $ 16,670 $ 917 Gain (loss) on mortgage hedge securities 3,560 (10,199) 1,186 - ------------------------------------- ------------- -------------- ----------- Net gain on securities $ 12,266 $ 6,471 $ 2,103 - ------------------------------------- ------------- -------------- ----------- Gain (loss) on change in fair value of mortgage servicing rights $(2,981) $ 7,865 $ (5,554) - ---------------------------------------- ------------- -------------- ---------- The Company recognized $8.7 million of net gains on the sale of $377 million of available for sale securities in the third quarter of 2009 and $16.7 million of gains on the sale of $1.2 billion of available for sale securities in the second quarter of 2009. This continues a program to sell low-coupon mortgage-backed securities that were purchased at deep discounts near the beginning of the current market disruption. Securities sold are replaced with securities that are expected to have superior future total returns. BOK Financial also maintains a portfolio of mortgage-backed securities issued by U.S. government agencies as an economic hedge against changes in the fair value of mortgage servicing rights. The fair value of mortgage servicing rights decreased $3.0 million and the fair value of mortgage hedge securities increased $3.6 million during the third quarter of 2009. The Company has a portfolio of derivative contracts held for customer risk management programs and internal interest rate risk management programs. At September 30, 2009, the fair value of all asset contracts totaled $397 million, net of cash margin held by the Company. The largest net amount due from a single counterparty, a domestic subsidiary of a major energy company, at September 30, 2009 was $116 million. This amount was entirely offset by letters of credit issued by independent financial institutions. Loans, Deposits and Capital Outstanding loans at September 30, 2009 were $11.6 billion, down $458 million from June 30, 2009. Loan balances were lower across most sectors of the loan portfolio and markets due to reduced customer demand in response to current economic conditions, normal repayment trends and management decisions to mitigate credit risk by exiting certain loan types. Commercial loans decreased $346 million from June 30, 2009, primarily due to a decrease of $116 million in service sector loans, $110 million in energy sector loans and $87 million in wholesale/retail sector loans. Commercial real estate loans decreased $51 million compared to the prior quarter, primarily due to an $84 million decrease in construction and land development offset by a $34 million increase in multifamily sector loans. Residential mortgage loans decreased $4 million from the prior quarter primarily due to a $14 million decrease in permanent mortgage loans offset by a $10 million increase in home equity loans. Consumer loans decreased $57 million compared to the prior quarter primarily due to a $66 million decrease in indirect automobile loans related to the previously announced decision to curtail that business during the first quarter of 2009 in favor of a customer-focused direct approach to consumer lending. Total deposits increased $440 million during the third quarter and totaled $15.1 billion at September 30, 2009. Demand and interest-bearing transaction deposits increased $637 million and $289 million, respectively, offset by a $487 million decrease in time deposit balances as the Company decreased higher-cost certificates of deposit. Among the lines of business, commercial banking deposits increased $519 million during the third quarter of 2009, offset by decreased consumer banking deposits of $91 million and decreased wealth management deposits of $48 million. The Company and each of its subsidiary banks exceeded the regulatory definition of well capitalized at September 30, 2009. The Company's Tier 1 and total capital ratios were 10.56% and 14.10%, respectively, at September 30, 2009. The Company's Tier 1 and total capital ratios were 9.86% and 13.34%, respectively, at June 30, 2009. In addition, the Company's tangible common equity ratio, a non-GAAP measure, was 7.78% at September 30, 2009 and 7.55% at June 30, 2009. The increase in tangible common equity ratio was primarily due to retained earnings growth and reduced net unrealized losses on available for sale securities. 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 September 30, 2009 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 fs093009.txt (B) FINANCIAL STATEMENTS Exhibit 99 (b) BALANCE SHEETS BOK FINANCIAL CORPORATION (In thousands) Period Ended --------------------------------------------------- September 30, June 30, September 30, 2009 2009 2008 ------------- -------------- -------------- (Unaudited) (Unaudited) (Unaudited) ASSETS Cash and due from banks $ 1,383,244 $ 470,553 $ 669,914 Trading securities 100,898 84,548 92,588 Funds sold and resell agreements 39,465 112,128 105,594 Securities: Available for sale 8,358,562 7,224,673 6,279,530 Investment 238,101 269,844 243,617 Mortgage trading securities 320,971 222,864 198,201 ------------- -------------- -------------- Total securities 8,917,634 7,717,381 6,721,348 Residential mortgage loans held for sale 172,301 326,363 113,121 Loans: Commercial 6,370,056 6,715,851 7,273,802 Commercial real estate 2,560,335 2,611,693 2,713,992 Residential mortgage 1,829,824 1,833,975 1,669,953 Consumer 851,349 908,409 1,022,223 ------------- -------------- -------------- Total loans 11,611,564 12,069,928 12,679,970 Less reserve for loan losses (280,902) (263,309) (186,516) ------------- -------------- -------------- Loans, net of reserve 11,330,662 11,806,619 12,493,454 Premises and equipment, net 286,702 286,295 267,749 Accrued revenue receivable 68,617 118,718 118,096 Intangible assets, net 356,152 357,838 363,177 Mortgage servicing rights, net 66,689 67,413 68,680 Real estate and other repossessed assets 89,507 75,243 28,088 Bankers' acceptances 9,882 8,260 23,933 Derivative contracts 397,110 462,971 572,391 Cash surrender value of bank-owned life insurance 244,456 241,792 234,293 Receivable on unsettled securities trades - 237,200 169,494 Other assets 413,522 394,997 335,882 ------------- -------------- -------------- TOTAL ASSETS $ 23,876,841 $ 22,768,319 $ 22,377,802 ============= ============== ============== LIABILITIES AND EQUITY Deposits: Demand $ 3,462,188 $ 2,825,179 $ 3,005,163 Interest-bearing transaction 7,380,449 7,091,471 6,606,622 Savings 167,896 166,806 156,847 Time 4,084,813 4,571,933 4,817,551 ------------- -------------- -------------- Total deposits 15,095,346 14,655,389 14,586,183 Funds purchased and repurchase agreements 2,198,900 2,798,274 3,667,225 Other borrowings 3,189,948 2,152,177 1,077,450 Subordinated debentures 398,502 398,465 398,372 Accrued interest, taxes, and expense 123,409 119,003 120,280 Bankers' acceptances 9,882 8,260 23,933 Due on unsettled securities trades 133,974 - - Derivative contracts 395,197 445,463 377,973 Other liabilities 127,689 125,126 166,597 ------------- -------------- -------------- TOTAL LIABILITIES 21,672,847 20,702,157 20,418,013 Shareholders' equity: Capital, surplus and retained earnings 2,185,776 2,149,020 2,046,752 Accumulated other comprehensive loss (763) (98,448) (106,249) ------------- -------------- -------------- TOTAL SHAREHOLDERS' EQUITY 2,185,013 2,050,572 1,940,503 Non-controlling interest 18,981 15,590 19,286 ------------- -------------- -------------- TOTAL EQUITY 2,203,994 2,066,162 1,959,789 ------------- -------------- -------------- TOTAL LIABILITIES AND EQUITY $ 23,876,841 $ 22,768,319 $ 22,377,802 ============= ============== ==============
AVERAGE BALANCE SHEETS - UNAUDITED BOK FINANCIAL CORPORATION (In thousands) Quarter Ended ------------------------------------------------------------------------------------- September 30, June 30, March 31, December 31, September 30, 2009 2009 2009 2008 2008 ------------- -------------- -------------- -------------- -------------- ASSETS Trading securities $ 64,763 $ 112,960 $ 111,962 $ 78,840 $ 66,419 Funds sold and resell agreements 67,032 29,277 50,701 48,246 79,862 Securities: Available for sale 7,782,254 7,242,931 6,645,086 6,409,906 5,945,220 Investment 235,967 271,068 238,562 242,503 239,655 Mortgage trading securities 267,591 365,434 453,304 237,319 126,837 ------------- -------------- -------------- -------------- -------------- Total securities 8,285,812 7,879,433 7,336,952 6,889,728 6,311,712 Residential mortgage loans held for sale 176,403 286,077 201,135 121,184 116,533 Loans: Commercial 6,521,438 6,901,057 7,182,481 7,452,799 7,228,814 Commercial real estate 2,621,176 2,684,020 2,762,789 2,716,465 2,696,503 Residential mortgage 1,873,457 1,884,023 1,841,006 1,641,023 1,655,710 Consumer 871,347 933,950 998,489 1,016,409 1,015,796 ------------- -------------- -------------- -------------- -------------- Total loans 11,887,418 12,403,050 12,784,765 12,826,696 12,596,823 Less allowance for loan losses (281,289) (273,335) (252,734) (209,319) (182,844) ------------- -------------- -------------- -------------- -------------- Total loans, net 11,606,129 12,129,715 12,532,031 12,617,377 12,413,979 ------------- -------------- -------------- -------------- -------------- Total earning assets 20,200,139 20,437,462 20,232,781 19,755,374 18,988,504 Cash and due from banks 828,965 638,791 661,433 534,039 499,992 Cash surrender value of bank-owned life insurance 242,715 240,199 237,805 235,195 232,465 Derivative contracts 401,887 493,448 476,091 352,083 900,777 Other assets 1,376,828 1,264,131 1,335,259 1,394,960 1,199,425 ------------- -------------- -------------- -------------- -------------- TOTAL ASSETS $ 23,050,534 $ 23,074,031 $ 22,943,369 $ 22,271,651 $ 21,821,163 ============= ============== ============== ============== ============== LIABILITIES AND EQUITY Deposits: Demand $ 3,392,578 $ 3,183,338 $ 2,864,751 $ 2,712,384 $ 2,739,209 Interest-bearing transaction 7,162,477 6,854,003 6,610,805 6,116,465 6,565,935 Savings 167,677 167,813 159,537 155,784 159,856 Time 4,404,854 5,123,947 5,215,091 5,109,303 4,792,366 ------------- -------------- -------------- -------------- -------------- Total deposits 15,127,586 15,329,101 14,850,184 14,093,936 14,257,366 Funds purchased and repurchase agreements 2,284,985 2,316,990 2,562,066 3,095,054 3,061,186 Other borrowings 2,173,103 1,951,699 2,158,963 1,986,857 1,390,233 Subordinated debentures 398,484 398,456 398,425 398,392 398,361 Derivative contracts 392,277 536,232 641,974 494,778 509,057 Other liabilities 539,129 534,889 416,242 293,752 258,775 ------------- -------------- -------------- -------------- -------------- TOTAL LIABILITIES 20,915,564 21,067,367 21,027,854 20,362,769 19,874,978 Total equity 2,134,970 2,006,664 1,915,515 1,908,882 1,946,185 ------------- -------------- -------------- -------------- -------------- TOTAL LIABILITIES AND EQUITY $ 23,050,534 $ 23,074,031 $ 22,943,369 $ 22,271,651 $ 21,821,163 ============= ============== ============== ============== ==============
STATEMENTS OF EARNINGS - UNAUDITED BOK FINANCIAL CORPORATION (In thousands, except per share data) Quarter Ended Nine Months Ended -------------------------------- ------------------------------- September 30, September 30, -------------------------------- ------------------------------- 2009 2008 2009 2008 ------------- -------------- -------------- -------------- Interest revenue $ 226,246 $ 263,358 $ 690,158 $ 799,485 Interest expense 45,785 99,010 164,272 329,070 ------------- -------------- -------------- -------------- Net interest revenue 180,461 164,348 525,886 470,415 Provision for credit losses 55,120 52,711 147,280 129,592 ------------- -------------- -------------- -------------- Net interest revenue after provision for credit losses 125,341 111,637 378,606 340,823 Other operating revenue Brokerage and trading revenue 24,944 30,846 71,437 19,297 Transaction card revenue 26,264 25,632 79,225 74,976 Trust fees and commissions 16,315 20,100 49,685 61,836 Deposit service charges and fees 30,464 30,404 86,290 88,289 Mortgage banking revenue 13,197 7,145 51,577 23,382 Bank-owned life insurance 2,634 2,829 7,369 7,999 Margin asset fees 51 1,934 186 8,361 Other revenue 6,087 7,768 18,794 20,124 ------------- -------------- -------------- -------------- Total fees and commissions 119,956 126,658 364,563 304,264 Gain (loss) on other assets 3,223 (841) 4,339 (1,986) Gain (loss) on derivatives, net (294) 4,366 (2,995) 3,518 Gain (loss) on securities, net 12,266 2,103 38,845 6,787 Total other-than-temporary impairment losses (6,133) - (61,764) (5,306) Portion of loss recognized in other comprehensive income (2,752) - (41,839) - ------------- -------------- -------------- -------------- Net impairment losses recognized in earnings (3,381) - (19,925) (5,306) ------------- -------------- -------------- -------------- Total other operating revenue 131,770 132,286 384,827 307,277 Other operating expense Personnel 98,012 87,549 286,830 265,252 Business promotion 4,827 5,837 13,824 16,253 Professional fees and services 7,555 6,501 21,430 19,122 Net occupancy and equipment 15,884 15,570 48,115 45,731 Insurance 6,092 2,436 17,628 8,772 FDIC special assessment - - 11,773 - Data processing and communications 20,413 19,911 60,171 58,327 Printing, postage and supplies 3,716 4,035 12,359 12,610 Net (gains) losses and operating expenses of repossessed assets 3,497 (136) 6,299 13 Amortization of intangible assets 1,686 1,884 5,058 5,694 Mortgage banking costs 8,065 5,811 24,868 17,546 Change in fair value of mortgage servicing rights 2,981 5,554 (6,839) 8,083 Visa retrospective responsibility obligation - 1,700 - (1,067) Other expense 6,004 7,638 18,780 20,626 ------------- -------------- -------------- -------------- Total other operating expense 178,732 164,290 520,296 476,962 Net income before taxes 78,379 79,633 243,137 171,138 Federal and state income taxes 24,772 22,958 81,925 54,546 ------------- -------------- -------------- -------------- Net income before non-controlling interest 53,607 56,675 161,212 116,592 Net income (loss) attributable to non-controlling interest 2,947 (10) 3,405 (1,197) ------------- -------------- -------------- -------------- Net income attributable to BOK Financial Corporation $ 50,660 $ 56,685 $ 157,807 $ 117,789 ============= ============== ============== ============== Average shares outstanding: Basic 67,392,059 67,263,317 67,351,436 67,305,916 Diluted 67,513,700 67,432,444 67,450,172 67,463,012 Net income per share: Basic $ 0.75 $ 0.84 $ 2.33 $ 1.75 ============= ============== ============== ============== Diluted $ 0.75 $ 0.84 $ 2.33 $ 1.74 ============= ============== ============== ==============
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, 2009 2009 2009 2008 2008 ------------- -------------- -------------- -------------- -------------- Capital: Period-end shareholders' equity $ 2,185,013 $ 2,050,572 $ 1,931,300 $ 1,846,257 $ 1,940,503 Risk weighted assets $ 17,515,147 $ 18,338,540 $ 18,355,862 $ 18,401,051 $ 18,347,504 Risk-based capital ratios: Tier 1 10.56% 9.86% 9.66% 9.40% 9.31% Total capital 14.10% 13.34% 13.08% 12.81% 12.62% Leverage ratio 8.16% 7.97% 7.85% 7.89% 7.94% Tangible common equity ratio (A) 7.78% 7.55% 6.84% 6.64% 7.16% Tier 1 common equity ratio (B) 10.45% 9.77% 9.58% 9.32% 9.20% Common stock: Book value per share $ 32.27 $ 30.30 $ 28.57 $ 27.36 $ 28.78 Market value per share: High $ 48.10 $ 43.02 $ 40.71 $ 54.42 $ 53.94 Low $ 34.81 $ 34.46 $ 22.95 $ 38.40 $ 38.61 Cash dividends paid $ 16,280 $ 16,184 $ 15,027 $ 15,358 $ 15,170 Dividend payout ratio 32.14% 31.05% 27.31% 43.33% 26.76% Shares outstanding, net 67,707,547 67,674,442 67,589,045 67,473,086 67,433,837 Stock buy-back program: Shares repurchased - - - - 75,000 Amount $ - $ - $ - $ - $ 3,337,000 ------------- -------------- -------------- -------------- -------------- Average price per share $ - $ - $ - $ - $ 44.49 ============= ================ ============== ============== ============== Performance ratios (quarter annualized): Return on average assets 0.87% 0.91% 0.97% 0.63% 1.03% Return on average equity 9.41% 10.42% 11.65% 7.39% 11.59% Net interest margin 3.63% 3.55% 3.47% 3.57% 3.48% Efficiency ratio 58.09% 61.02% 57.10% 54.94% 54.19% Other data: Gain (loss) on economic hedge of mortgage servicing rights $ 3,560 $ (10,199) $ (2,118) $ 15,089 $ 1,186 Trust assets $ 29,945,585 $ 29,288,041 $ 28,700,791 $ 30,454,512 $ 33,242,296 Mortgage servicing portfolio $ 6,339,764 $ 6,082,501 $ 5,515,893 $ 5,256,159 $ 5,167,584 Mortgage loan fundings during the quarter $ 536,173 $ 1,023,272 $ 708,561 $ 214,521 $ 258,171 Mortgage loan refinances to total fundings 49.00% 71.00% 73.51% 34.84% 25.14% Tax equivalent adjustment $ 1,982 $ 1,791 $ 2,105 $ 2,063 $ 1,927 Unrealized gain (loss) on available for sale securities $ 30,898 $ (128,492) $ (261,856) $ (330,973) $ (158,652) (A) Tangible common equity ratio is a non-GAAP measure. Reconciliation to a GAAP financial measure follows: Total shareholders' equity $ 2,185,013 $ 2,050,572 $ 1,931,300 $ 1,846,257 $ 1,940,503 Less: intangible assets, net (356,152) (357,838) (359,523) (361,209) (363,177) ------------- -------------- -------------- -------------- -------------- Tangible common equity $ 1,828,861 $ 1,692,734 $ 1,571,777 $ 1,485,048 $ 1,577,326 ============= ============== ============== ============== ============== Total assets $ 23,876,841 $ 22,768,319 $ 23,333,442 $ 22,734,648 $ 22,377,802 Less: intangible assets, net (356,152) (357,838) (359,523) (361,209) (363,177) ------------- -------------- -------------- -------------- -------------- $ 23,520,689 $ 22,410,481 $ 22,973,919 $ 22,373,439 $ 22,014,625 ============= ============== ============== ============== ============== Tangible common equity ratio 7.78% 7.55% 6.84% 6.64% 7.16% (B) Tier 1 common equity ratio is a non-GAAP measure. Reconciliation to a GAAP financial measure follows: Tier 1 capital $ 1,849,254 $ 1,807,705 $ 1,773,576 $ 1,728,926 $ 1,707,390 Less: non-controlling interest (18,981) (15,590) (14,751) (13,855) (19,286) ------------- -------------- -------------- -------------- -------------- Tier 1 common equity $ 1,830,273 $ 1,792,115 $ 1,758,825 $ 1,715,071 $ 1,688,104 ============= ============== ============== ============== ============== Risk weighted assets $ 17,515,147 $ 18,338,540 $ 18,355,862 $ 18,401,051 $ 18,347,504 Tier 1 common equity ratio 10.45% 9.77% 9.58% 9.32% 9.20%
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, 2009 2009 2009 2008 2008 ------------- -------------- -------------- -------------- -------------- Interest revenue $ 226,246 $ 230,685 $ 233,227 $ 262,160 $ 263,358 Interest expense 45,785 55,105 63,382 85,713 99,010 ------------- -------------- -------------- -------------- -------------- Net interest revenue 180,461 175,580 169,845 176,447 164,348 Provision for credit losses 55,120 47,120 45,040 73,001 52,711 ------------- -------------- -------------- -------------- -------------- Net interest revenue after provision for credit losses 125,341 128,460 124,805 103,446 111,637 Other operating revenue Brokerage and trading revenue 24,944 21,794 24,699 23,507 30,846 Transaction card revenue 26,264 27,533 25,428 25,177 25,632 Trust fees and commissions 16,315 16,860 16,510 17,143 20,100 Deposit service charges and fees 30,464 28,421 27,405 29,239 30,404 Mortgage banking revenue 13,197 19,882 18,498 7,217 7,145 Bank-owned life insurance 2,634 2,418 2,317 2,682 2,829 Margin asset fees 51 68 67 187 1,934 Other revenue 6,087 6,124 6,583 5,778 7,768 ------------- ------------- -------------- -------------- ------------- Total fees and commissions 119,956 123,100 121,507 110,930 126,658 Gain (loss) on other assets 3,223 973 143 (7,420) (841) Gain (loss) on derivatives, net (294) (1,037) (1,664) (2,219) 4,366 Gain (loss) on securities, net 12,266 6,471 20,108 20,156 2,103 Total other-than-temporary impairment losses (6,133) (1,263) (54,368) - - Portion of loss recognized in other comprehensive income (2,752) 279 (39,366) - - ------------- -------------- -------------- -------------- -------------- Net impairment losses recognized in earnings (3,381) (1,542) (15,002) - - ------------- -------------- -------------- -------------- -------------- Total other operating revenue 131,770 127,965 125,092 121,447 132,286 Other operating expense Personnel 98,012 96,191 92,627 87,695 87,549 Business promotion 4,827 4,569 4,428 7,283 5,837 Professional fees and services 7,555 7,363 6,512 7,923 6,501 Net occupancy and equipment 15,884 15,973 16,258 14,901 15,570 Insurance 6,092 5,898 5,638 3,216 2,436 FDIC special assessment - 11,773 - - - Data processing and communications 20,413 20,452 19,306 19,720 19,911 Printing, postage and supplies 3,716 4,072 4,571 3,823 4,035 Net (gains) losses and operating expenses of repossessed assets 3,497 996 1,806 1,006 (136) Amortization of intangible assets 1,686 1,686 1,686 1,967 1,884 Mortgage banking costs 8,065 9,336 7,467 4,967 5,811 Change in fair value of mortgage servicing rights 2,981 (7,865) (1,955) 26,432 5,554 Visa retrospective responsibility obligation - - - (1,700) 1,700 Other expense 6,004 5,326 7,450 8,209 7,638 ------------- -------------- -------------- -------------- -------------- Total other operating expense 178,732 175,770 165,794 185,442 164,290 Net income before taxes 78,379 80,655 84,103 39,451 79,633 Federal and state income taxes 24,772 28,315 28,838 10,363 22,958 ------------- -------------- -------------- -------------- -------------- Net income before non-controlling interest 53,607 52,340 55,265 29,088 56,675 Net income (loss) attributable to non-controlling interest 2,947 225 233 (6,355) (10) ------------- -------------- -------------- -------------- -------------- Net income attributable to BOK Financial Corporation $ 50,660 $ 52,115 $ 55,032 $ 35,443 $ 56,685 ============= ============== ============== ============== ============== Average shares outstanding: Basic 67,392,059 67,344,577 67,315,986 67,294,069 67,263,317 Diluted 67,513,700 67,448,029 67,387,102 67,456,267 67,432,444 Net income per share: Basic $ 0.75 $ 0.77 $ 0.81 $ 0.53 $0.84 Diluted $ 0.75 $ 0.77 $ 0.81 $ 0.52 $0.84
LOANS BY PRINCIPAL MARKET AREA - UNAUDITED BOK FINANCIAL CORPORATION (In thousands) Quarter Ended ------------------------------------------------------------------------------------- September 30, June 30, March 31, December 31, September 30, 2009 2009 2009 2008 2008 ------------- -------------- -------------- -------------- -------------- Oklahoma: Commercial $ 2,738,217 $ 2,918,478 $ 3,119,362 $ 3,356,520 $ 3,368,823 Commercial real estate 815,362 855,742 881,620 843,576 827,357 Residential mortgage 1,245,917 1,249,104 1,234,417 1,196,924 1,134,066 Consumer 483,369 521,431 562,021 579,809 580,211 ------------- -------------- -------------- -------------- -------------- Total Oklahoma 5,282,865 5,544,755 5,797,420 5,976,829 5,910,457 Texas: Commercial 2,075,379 2,182,756 2,277,186 2,353,860 2,205,169 Commercial real estate 734,742 741,199 816,830 825,769 853,653 Residential mortgage 335,797 345,780 337,044 315,438 307,655 Consumer 188,374 196,752 214,134 212,820 214,133 ------------- -------------- -------------- -------------- -------------- Total Texas 3,334,292 3,466,487 3,645,194 3,707,887 3,580,610 New Mexico: Commercial 344,910 380,378 393,180 418,732 442,644 Commercial real estate 344,988 313,190 315,511 286,574 281,061 Residential mortgage 88,271 90,944 99,805 98,018 95,165 Consumer 18,176 18,826 19,900 18,616 18,296 ------------- -------------- -------------- -------------- -------------- Total New Mexico 796,345 803,338 828,396 821,940 837,166 Arkansas: Commercial 99,559 97,676 99,955 103,446 104,630 Commercial real estate 128,984 133,026 133,227 134,015 127,925 Residential mortgage 19,128 19,015 17,145 16,875 16,941 Consumer 136,461 152,620 168,971 175,647 183,543 ------------- -------------- -------------- -------------- -------------- Total Arkansas 384,132 402,337 419,298 429,983 433,039 Colorado: Commercial 569,549 595,858 675,223 660,546 598,519 Commercial real estate 249,879 269,923 267,035 261,820 266,739 Residential mortgage 68,667 58,557 59,120 53,875 49,676 Consumer 18,272 14,097 14,599 16,141 18,328 ------------- -------------- -------------- -------------- -------------- Total Colorado 906,367 938,435 1,015,977 992,382 933,262 Arizona: Commercial 219,330 215,540 211,953 211,356 213,861 Commercial real estate 257,169 262,607 285,841 319,525 326,615 Residential mortgage 57,304 58,265 61,605 62,123 58,800 Consumer 4,826 3,229 5,261 6,075 5,551 ------------- -------------- -------------- -------------- -------------- Total Arizona 538,629 539,641 564,660 599,079 604,827 Kansas: Commercial 323,112 325,165 324,671 307,143 340,156 Commercial real estate 29,211 36,006 32,017 29,969 30,642 Residential mortgage 14,740 12,310 10,814 9,321 7,650 Consumer 1,871 1,454 1,469 1,473 2,161 ------------- -------------- -------------- -------------- -------------- Total Kansas 368,934 374,935 368,971 347,906 380,609 ------------- -------------- -------------- -------------- -------------- TOTAL BOK FINANCIAL $ 11,611,564 $ 12,069,928 $ 12,639,9168 $ 12,876,006 $ 12,679,970 ============= ============== ============== ============== ==============
DEPOSITS BY PRINCIPAL MARKET AREA - UNAUDITED BOK FINANCIAL CORPORATION (In thousands) Quarter Ended ------------------------------------------------------------------------------------- September 30, June 30, March 31, December 31, September 30, 2009 2009 2009 2008 2008 ------------- -------------- -------------- -------------- -------------- Oklahoma: Demand $ 1,895,980 $ 1,451,057 $ 1,651,111 $ 1,683,374 $ 1,681,325 Interest-bearing: Transaction 4,566,058 4,374,089 4,089,838 4,117,729 4,151,430 Savings 93,443 94,048 95,827 86,476 86,900 Time 1,765,980 2,033,312 2,876,313 3,104,933 3,036,297 ------------- -------------- -------------- -------------- -------------- Total interest-bearing 6,425,481 6,501,449 7,061,978 7,309,138 7,274,627 ------------- -------------- -------------- -------------- -------------- Total Oklahoma 8,321,461 7,952,506 8,713,089 8,992,512 8,955,952 ------------- -------------- -------------- -------------- -------------- Texas: Demand 1,138,794 1,002,266 1,021,424 1,067,456 956,846 Interest-bearing: Transaction 1,716,460 1,660,642 1,527,399 1,460,576 1,543,974 Savings 35,724 33,992 33,867 32,071 32,400 Time 1,007,579 1,035,919 1,054,632 857,416 794,911 ------------- -------------- -------------- -------------- -------------- Total interest-bearing 2,759,763 2,730,553 2,615,898 2,350,063 2,371,285 ------------- -------------- -------------- -------------- -------------- Total Texas 3,898,557 3,732,819 3,637,322 3,417,519 3,328,131 ------------- -------------- -------------- -------------- -------------- New Mexico: Demand 216,330 175,033 180,308 155,345 176,477 Interest-bearing: Transaction 424,528 434,498 401,000 397,382 376,941 Savings 18,039 18,255 17,858 16,289 16,316 Time 511,507 542,388 561,300 522,894 475,560 ------------- -------------- -------------- -------------- -------------- Total interest-bearing 954,074 995,141 980,158 936,565 868,817 ------------- -------------- -------------- -------------- -------------- Total New Mexico 1,170,404 1,170,174 1,160,466 1,091,910 1,045,294 ------------- -------------- -------------- -------------- -------------- Arkansas: Demand 19,077 17,261 16,503 16,293 23,565 Interest-bearing: Transaction 85,061 73,972 63,924 38,566 19,146 Savings 1,131 1,031 1,100 1,083 865 Time 137,109 162,505 150,015 75,579 47,684 ------------- -------------- -------------- -------------- -------------- Total interest-bearing 223,301 237,508 215,039 115,228 67,695 ------------- -------------- -------------- -------------- -------------- Total Arkansas 242,378 254,769 231,542 131,521 91,260 ------------- -------------- -------------- -------------- -------------- Colorado: Demand 121,555 113,895 111,048 116,637 115,677 Interest-bearing: Transaction 477,418 445,521 466,276 480,113 440,888 Savings 18,518 18,144 18,905 17,660 19,300 Time 520,906 579,709 584,971 532,475 428,872 ------------- -------------- -------------- -------------- -------------- Total interest-bearing 1,016,842 1,043,374 1,070,152 1,030,248 889,060 ------------- -------------- -------------- -------------- -------------- Total Colorado 1,138,397 1,157,269 1,181,200 1,146,885 1,004,737 ------------- -------------- -------------- -------------- -------------- Arizona: Demand 54,046 55,975 54,362 39,424 45,725 Interest-bearing: Transaction 95,242 89,842 66,809 56,985 64,463 Savings 971 1,282 970 1,014 1,033 Time 56,809 59,775 54,923 34,290 14,433 ------------- -------------- -------------- -------------- -------------- Total interest-bearing 153,022 150,899 122,702 92,289 79,929 ------------- -------------- -------------- -------------- -------------- Total Arizona 207,068 206,874 177,064 131,713 125,654 ------------- -------------- -------------- -------------- -------------- Kansas / Missouri: Demand 16,406 9,692 16,140 3,850 5,548 Interest-bearing: Transaction 15,682 12,907 11,976 10,999 9,780 Savings 70 54 117 42 33 Time 84,923 158,325 141,505 55,656 19,794 ------------- -------------- -------------- -------------- -------------- Total interest-bearing 100,675 171,286 153,598 66,697 29,607 ------------- -------------- -------------- -------------- -------------- Total Kansas / Missouri 117,081 180,978 169,738 70,547 35,155 ------------- -------------- -------------- -------------- -------------- TOTAL BOK FINANCIAL $ 15,095,346 $ 14,655,389 $ 15,270,4219 $ 14,982,607 $ 14,586,183 ============= ============== ============== ============== ==============
NET INTEREST MARGIN TREND - UNAUDITED BOK FINANCIAL CORPORATION Quarter Ended ------------------------------------------------------------------------------------ September 30, June 30, March 31, December 31, September 30, 2009 2009 2009 2008 2008 ------------- -------------- -------------- -------------- -------------- TAX-EQUIVALENT ASSETS YIELDS Trading securities 4.72% 3.49% 3.69% 6.55% 5.61% Funds sold and resell agreements 0.11% 0.19% 0.24% 0.76% 1.44% Securities: Taxable 4.18% 4.50% 4.90% 5.12% 5.09% Tax-exempt 5.03% 5.69% 6.64% 6.43% 6.64% ------------- -------------- -------------- -------------- -------------- Total securities 4.21% 4.54% 4.96% 5.17% 5.15% Total loans 4.67% 4.64% 4.56% 5.27% 5.69% Less Allowance for loan losses - - - - - ------------- -------------- -------------- -------------- -------------- Total loans, net 4.78% 4.74% 4.65% 5.35% 5.77% ------------- -------------- -------------- -------------- -------------- Total tax-equivalent yield on earning assets 4.54% 4.65% 4.75% 5.28% 5.55% COST OF INTEREST-BEARING LIABILITIES Interest-bearing deposits: Interest-bearing transaction 0.65% 0.78% 0.95% 1.51% 1.72% Savings 0.48% 0.25% 0.28% 0.37% 0.37% Time 2.20% 2.48% 2.83% 3.28% 3.39% ------------- -------------- -------------- -------------- -------------- Total interest-bearing deposits 1.23% 1.49% 1.76% 2.29% 2.39% Funds purchased and repurchase agreements 0.32% 0.35% 0.45% 0.94% 1.98% Other borrowings 0.38% 0.49% 0.58% 1.51% 2.56% Subordinated debt 5.53% 5.67% 5.67% 5.48% 5.55% ------------- -------------- -------------- -------------- -------------- Total cost of interest-bearing liabilities 1.09% 1.31% 1.50% 2.02% 2.41% ------------- -------------- -------------- -------------- -------------- Tax-equivalent net interest revenue spread 3.45% 3.34% 3.25% 3.26% 3.14% Effect of noninterest-bearing funding sources and other 0.18% 0.21% 0.22% 0.31% 0.34% ------------- -------------- -------------- -------------- -------------- Tax-equivalent net interest margin 3.63% 3.55% 3.47% 3.57% 3.48% ============= ============== ============== ============== ==============
CREDIT QUALITY INDICATORS BOK FINANCIAL CORPORATION (In thousands, except ratios) Quarter Ended ---------------------------------------------------------------------------------- September 30, June 30, March 31, December 31, September 30, 2009 2009 2009 2008 2008 ------------- -------------- -------------- -------------- -------------- Nonperforming assets: Nonaccruing loans (B): Commercial $ 128,266 $ 126,510 $ 128,501 $ 134,846 $ 105,757 Commercial real estate 212,418 189,586 175,487 137,279 78,235 Residential mortgage 38,220 35,860 34,182 27,387 27,075 Consumer 3,897 1,037 1,065 561 758 ------------- -------------- -------------- -------------- -------------- Total nonaccruing loans $ 382,801 $ 352,993 $ 339,235 $ 300,073 $ 211,825 Renegotiated loans (A) 17,426 17,479 13,623 13,039 12,326 Real estate and other repossessed assets 89,507 75,243 61,383 29,179 28,088 ------------- -------------- -------------- -------------- -------------- Total nonperforming assets $ 489,734 $ 445,715 $ 414,241 $ 342,291 $ 252,239 ============= ============== ============== ============== ============== Nonaccruing loans by principal market (B): Oklahoma $ 112,610 $ 108,490 $ 105,536 $ 108,367 $ 87,885 Texas 65,911 51,582 55,225 42,934 29,141 New Mexico 35,541 29,640 18,046 16,016 12,293 Arkansas 5,911 3,888 4,078 3,263 3,386 Colorado 50,432 45,794 38,567 32,415 20,980 Arizona 108,161 106,076 111,772 80,994 54,832 Kansas 4,235 7,523 6,011 16,084 3,308 ------------- -------------- -------------- -------------- -------------- Total nonaccruing loans $ 382,801 $ 352,993 $ 339,235 $ 300,073 $ 211,825 ============= ============== ============== ============== ============== Nonaccruing loans by loan portfolio sector (B): Commercial: Energy $ 48,992 $ 53,842 $ 49,618 $ 49,364 $ 49,839 Manufacturing 17,429 16,975 18,248 7,343 6,479 Wholesale / retail 7,623 10,983 8,650 18,773 7,806 Agriculture 98 105 115 680 755 Services 30,094 24,713 30,226 36,873 26,581 Healthcare 13,758 14,222 14,288 12,118 3,300 Other 10,272 5,670 7,356 9,695 10,997 ------------- -------------- -------------- -------------- -------------- Total commercial 128,266 126,510 128,501 134,846 105,757 Commercial real estate: Land development and construction 113,868 97,425 99,922 76,082 53,624 Retail 22,254 17,474 9,893 15,625 13,011 Office 31,406 27,685 23,305 7,637 3,022 Multifamily 28,223 27,827 27,198 24,950 896 Industrial 527 527 575 6,287 390 Other commercial real estate 16,140 18,648 14,594 6,698 7,292 ------------- -------------- -------------- -------------- -------------- Total commercial real estate 212,418 189,586 175,487 137,279 78,235 Residential mortgage: Permanent mortgage 36,431 34,149 32,848 26,233 26,401 Home equity 1,789 1,711 1,334 1,154 674 ------------- -------------- -------------- -------------- -------------- Total residential mortgage 38,220 35,860 34,182 27,387 27,075 Consumer 3,897 1,037 1,065 561 758 ------------- -------------- -------------- -------------- -------------- Total nonaccruing loans $ 382,801 $ 352,993 $ 339,235 $ 300,073 $ 211,825 ============= ============== ============== ============== ============== - - - - - Performing loans 90 days past due $ 24,238 $ 32,479 $ 46,123 $ 19,123 $ 20,213 Gross charge-offs $ 38,581 $ 37,409 $ 34,535 $ 35,681 $ 33,926 Recoveries 2,594 2,472 2,664 2,022 13,712 ------------- -------------- -------------- -------------- -------------- Net charge-offs $ 35,987 $ 34,937 $ 31,871 $ 33,659 $ 20,214 ============= ============== ============== ============== ============== Provision for credit losses $ 55,120 $ 47,120 $ 45,040 $ 73,001 $ 52,711 Reserve for loan losses to period end loans 2.42% 2.18% 1.99% 1.81% 1.47% Combined reserves for credit losses to period end loans 2.52% 2.27% 2.07% 1.93% 1.65% Nonperforming assets to period end loans and repossessed assets 4.19% 3.67% 3.26% 2.65% 1.98% Net charge-offs (annualized) to average loans 1.21% 1.13% 1.00% 1.05% 0.64% Reserve for loan losses to nonaccruing loans 73.38% 74.59% 73.99% 77.73% 88.05% Combined reserves for credit losses to nonaccruing loans 76.51% 77.55% 77.11% 82.78% 98.69% (A) includes residential mortgage loans guaranteed by$ 11,234 $ 11,079 $ 10,514 $ 10,396 $ 9,604 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 seller$ 4,173 $ 8,305 $ 11,287 $ 13,181 $ 13,262
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