0000875357-15-000014.txt : 20150429 0000875357-15-000014.hdr.sgml : 20150429 20150429135556 ACCESSION NUMBER: 0000875357-15-000014 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20150429 ITEM INFORMATION: Results of Operations and Financial Condition FILED AS OF DATE: 20150429 DATE AS OF CHANGE: 20150429 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: 15811495 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 bokf-20150331x8xk.htm 8-K BOKF-2015.03.31-8-K


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):
April 29, 2015

Commission File No. 0-19341

BOK FINANCIAL CORPORATION
(Exact name of registrant as specified in its charter)

Oklahoma
 
73-1373454
(State or other jurisdiction
of Incorporation or Organization)
 
(IRS Employer
Identification No.)
 
 
 
Bank of Oklahoma Tower
 
 
Boston Avenue at Second Street
 
 
Tulsa, Oklahoma
 
74192
(Address of Principal Executive Offices)
 
(Zip Code)
 
(918) 588-6000
(Registrant’s telephone number, including area code)

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 April 29, 2015, BOK Financial Corporation (“BOK Financial”) issued a press release announcing its financial results for the three months ended March 31, 2015 (“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 April 29, 2015, in connection with issuance of the Press Release, BOK Financial released financial information related to the three months ended March 31, 2015 (“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.

(a)
Exhibits

99
Text of Press Release, dated April 29, 2015 titled “BOK Financial Reports Quarterly Earnings of $75 Million – Loan Portfolio Grows 13 percent on Annualized Basis; – Record Quarter for Fees and Commissions Revenue" for the Three Months Ended March 31, 2015
  


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: April 29, 2015



EX-99 2 bokf-20150331xex99.htm EXHIBIT 99 BOKF-2015.03.31-EX 99


Exhibit 99 (a)

NASD: BOKF


For Further Information Contact:
Joseph Crivelli             Andrea Myers
Investor Relations             Corporate Communications
(918) 595-3027             (918) 594-7794

BOK Financial Reports Quarterly Earnings of $75 Million
Loan Portfolio Grows 13 percent on Annualized Basis;
Record Quarter for Fees and Commissions Revenue
TULSA, Okla. (Wednesday, April 29, 2015) - BOK Financial Corporation reported net income of $74.8 million or $1.08 per diluted share for the first quarter of 2015. Net income was $64.3 million or $0.93 per diluted share for the fourth quarter of 2014 and $76.6 million or $1.11 per diluted share for the first quarter of 2014. Net income for the first quarter of 2014 included a $10.2 million or $0.15 per diluted share benefit from the reversal of accrued executive compensation costs.

Steven G. Bradshaw, president and chief executive officer, stated, "The year is off to an excellent start, with continued double-digit annualized loan growth and a record quarter from our fee-generating businesses, combined with careful expense controls. Our mortgage business posted its best quarter in two years with revenue up 31 percent sequentially, driven by increased refinancing activity in the current low-rate environment. Brokerage and trading and fiduciary and asset management were also up nicely on a sequential basis, and transaction processing posted a strong year-over-year revenue increase."

"We continue to see robust economic activity across our footprint despite the recent decrease in energy prices and reduction of drilling activity in Texas and Oklahoma. The Arizona market reached a new milestone with $1 billion in loans outstanding, and nearly all of our markets posted strong sequential growth. In addition, credit quality is holding up extremely well and our capital base is sound. We believe we are well-positioned to deliver a strong year in 2015, and reflecting this belief, during the first quarter we bought back more than 500,000 shares of our publicly-traded stock in the open market."
Highlights of first quarter of 2015 included:
Net interest revenue totaled $167.7 million for the first quarter of 2015, compared to $169.7 million the fourth quarter of 2014. Net interest margin was 2.55 percent for the first quarter of 2015 and 2.61 percent for the fourth quarter of 2014. Average earning assets increased $782 million during the first quarter of 2015, primarily related to a $673 million increase in average loan balances.
Fees and commissions revenue totaled $166.0 million for the first quarter of 2015, an increase of $8.1 million over the prior quarter, primarily due to a $9.2 million increase in mortgage banking revenue.

1



Changes in fair value of mortgage servicing rights, net of economic hedges, decreased pre-tax net income by $5.0 million in the first quarter of 2015 and $6.1 million in the fourth quarter of 2014.
Operating expense was $220.3 million for the first quarter, a decrease of $5.6 million compared to the previous quarter. The fourth quarter of 2014 included $4.9 million of branch closure costs.
No provision for credit losses was recorded in the first quarter of 2015 or fourth quarter of 2014. Net recoveries totaled $8.4 million in the first quarter of 2015 compared to net loans charged off of $2.2 million in the previous quarter.
The combined allowance for credit losses totaled $199 million or 1.35 percent of outstanding loans at March 31, 2015 compared to $190 million or 1.34 percent of outstanding loans at December 31, 2014. Nonperforming assets that are not guaranteed by U.S. government agencies totaled $123 million or 0.85 percent of outstanding loans and repossessed assets (excluding those guaranteed by U.S. government agencies) at March 31, 2015 and $129 million or 0.92 percent of outstanding loans and repossessed assets (excluding those guaranteed by U.S. government agencies) at December 31, 2014.
Average loans increased by $673 million over the previous quarter due primarily to growth in commercial and commercial real estate loans. Average commercial loans were up $421 million and average commercial real estate loans increased $244 million. Period-end outstanding loan balances were $14.7 billion at March 31, 2015, a $476 million increase over December 31, 2014. Commercial loan balances increased $295 million and commercial real estate loans increased $207 million.
Average deposits increased $551 million over the previous quarter, primarily due to an increase in interest-bearing transaction accounts. Average demand deposit and time deposit balances were largely unchanged compared to the prior quarter. Period-end deposits were $21.2 billion at March 31, 2015, largely unchanged compared to December 31, 2014.
The company and its subsidiary bank exceeded the regulatory definitions of well capitalized at March 31, 2015. New regulatory capital rules, which were effective for BOK Financial on January 1, 2015, establish a 7 percent threshold for the common equity Tier 1 ratio. The common equity Tier 1 ratio at March 31 was 13.07 percent. Other ratios measured under now current regulatory capital rules were Tier 1 capital ratio, 13.07 percent, total capital ratio, 14.39 percent and leverage ratio, 9.74 percent. Under then current regulatory capital rules, the Tier 1 capital ratio was 13.33 percent, total capital ratio was 14.66 percent, and leverage ratio was 9.96 percent at December 31, 2014.
The company paid a regular quarterly cash dividend of $29 million or $0.42 per common share during the first quarter of 2015. On April 28, 2015, the board of directors approved a quarterly cash dividend of $0.42 per common share payable on or about May 29, 2015 to shareholders of record as of May 15, 2015.
The company repurchased 502,156 common shares at an average price of $58.71 per share during the first quarter of 2015 and repurchased 200,000 common shares at an average price of $61.68 per share during the fourth quarter of 2014.

2



Net Interest Revenue
Net interest revenue was $167.7 million for the first quarter of 2015, compared to $169.7 million for the fourth quarter of 2014. The first quarter of 2015 had two less days than the fourth quarter of 2014. In addition, the fourth quarter of 2014 included $2.4 million of interest recoveries, whereas there were no interest recoveries in the first quarter of 2015.
Net interest margin was 2.55 percent for the first quarter of 2015, a decrease of 6 basis points compared to the fourth quarter of 2014. The yield on average earning assets was 2.80 percent, a decrease of 6 basis points compared to the prior quarter. The loan portfolio yield decreased 14 basis points from the previous quarter to 3.59 percent primarily due to continued competitive loan pricing and low interest rates. The yield on the available for sale securities portfolio decreased 1 basis point to 1.98 percent. Excess cash flows continue to be reinvested in short-duration securities that are yielding 1.50 percent to 2.00 percent. Funding costs were 0.38 percent, down 1 basis point compared to the prior quarter.
Average earning assets increased $782 million during the first quarter of 2015, primarily related to a $673 million increase in average loan balances. The average balance of fair value option securities and residential mortgage loans held for sale also increased over the prior quarter. The available for sale securities portfolio decreased $60 million. Average deposits increased $551 million over the fourth quarter of 2014. The average balance of borrowed funds increased $66 million.
Fees and Commissions Revenue
Fees and commissions revenue totaled $166.0 million for the first quarter of 2015, an increase of $8.1 million over the fourth quarter of 2014, primarily due to growth in mortgage banking revenue. Brokerage and trading revenue and fiduciary and asset management revenue were both up over the prior quarter, offset by lower deposit service charge revenue, transaction card revenue and other revenue.
Mortgage banking revenue totaled $39.3 million for the first quarter of 2015, an increase of $9.2 million over the fourth quarter of 2014. Mortgage production activity increased in the first quarter due largely to a 24 basis point decrease in average primary mortgage loan interest rates. Revenue from mortgage loan production increased $8.9 million. Total mortgage loans originated during the first quarter increased $301 million or 24 percent over the previous quarter and outstanding mortgage loan commitments at March 31 increased $130 million or 25 percent over December 31. In addition to increases in loan production volume, the percentage of refinanced mortgage loans, which generally are more profitable, increased to 56 percent of first quarter loan production from 37 percent of fourth quarter loan production. Revenue from mortgage loan servicing grew by $364 thousand due to an increase in the volume of loans serviced.
Brokerage and trading revenue totaled $31.7 million, an increase of $1.1 million over the prior quarter. The fourth quarter included a $562 thousand recovery received from the Lehman Brothers bankruptcy. Excluding the impact of this recovery, customer hedging revenue increased by $1.1 million, primarily related to increased hedging activity by our mortgage banking customers. Securities trading revenue increased $654 thousand and retail brokerage fees were up $1.0 million. Revenue growth was mostly offset by a decrease in investment banking revenue.
Fiduciary and asset management revenue continued to grow, up $820 thousand to $31.5 million for the first quarter. Deposit service charges and fees decreased $897 thousand, primarily due to lower overdraft fees. Transaction card revenues were $457 thousand lower than the prior quarter, primarily due to a seasonal decrease in transaction volumes.

3



Operating Expense
Total operating expense was $220.3 million for the first quarter of 2015, a decrease of $5.6 million compared to the fourth quarter of 2014. The fourth quarter of 2014 included $4.9 million of facilities and personnel costs related to the previously announced closure of 29 grocery store branches.
Personnel costs increased by $2.8 million over the fourth quarter of 2014, primarily due to a $4.2 million seasonal increase in payroll taxes. Incentive compensation expense decreased $3.1 million. In addition, the fourth quarter of 2014 included $800 thousand in costs related to the branch closures.
Non-personnel expense decreased $8.4 million compared to the fourth quarter of 2014. Net occupancy and equipment expense decreased $3.6 million. Approximately $4.1 million was expensed in the fourth quarter related to branch closure costs. Business promotion expense decreased $1.8 million, mortgage banking expense decreased $1.2 million and professional fees and services decreased $1.0 million. The company also made a $1.8 million contribution of developed commercial real estate to the BOKF Foundation during the fourth quarter of 2014. Net losses and operating expenses of repossessed assets were $613 thousand for the first quarter of 2015, compared to a net gain of $1.5 million in the fourth quarter.
Loans, Deposits and Capital
Loans
Outstanding loans were $14.7 billion at March 31, 2015, an increase of $476 million over the previous quarter. Commercial and commercial real estate balances both grew over the prior quarter, partially offset by a decrease in residential mortgage and consumer loan balances.
Outstanding commercial loan balances increased $295 million or 3 percent over December 31, 2014, growing in almost every sector of our commercial loan portfolio. Service sector loans grew by $210 million over the prior quarter. Healthcare sector loans increased $56 million and energy loans grew by $43 million. Manufacturing sector loans increased $28 million over the fourth quarter. This growth was partially offset by a $43 million decrease in wholesale/retail sector loans compared to the prior quarter. Unfunded energy loan commitments decreased by $117 million during the first quarter to $2.7 billion. All other unfunded commercial loan commitments totaled $4.1 billion at March 31, 2015, a decrease of $123 million compared to December 31, 2014.
Commercial real estate loans grew by $207 million or 8 percent over December 31, 2014. Loans secured by office buildings increased $98 million. Loans secured by industrial facilities grew by $50 million and loans secured by multifamily residential properties were up $46 million. Other commercial real estate loan balances increased $26 million. These increases were partially offset by a decrease in retail sector and residential construction and land development loan balances compared to December 31, 2014. Unfunded commercial real estate loan commitments totaled $754 million at March 31, 2015, largely unchanged compared to December 31, 2014.

4



Norm Bagwell, executive vice president, Regional Banks, stated, "We delivered another quarter of solid loan growth, as total loans were up 3.4 percent in the first quarter and 12.3 percent year-over-year, led by our Texas, Arizona, and Colorado markets. Loan activity remains robust. Accordingly, we continue to forecast low double-digit loan growth in 2015."
Stacy Kymes, executive vice president, Corporate Banking, added, "We continue to believe that our loan portfolio is well-positioned in light of the current commodities downturn. If commodity prices take less than a year to return to a normalized level, we will see some credits migrate to problem loans, but few, if any, material losses in the portfolio. In addition, any spillover impact on the economy in our footprint will be manageable. If the downturn extends beyond one year, there is a greater possibility of loss content in the portfolio and reduced loan demand. However, as of today, our portfolio is strong, we are doing business with high-quality borrowers, and we believe oil and gas industry fundamentals point to a price recovery late this year."
Deposits
Deposits totaled $21.2 billion at March 31, 2015, largely unchanged compared to December 31, 2014. Demand deposit balances decreased by $57 million. Time deposits increased $43 million and savings account balances were up $32 million over December 31, 2014. Among the lines of business, Consumer deposits increased $238 million over December 31. Commercial deposits decreased $75 million and Wealth Management deposits decreased $39 million.
Capital
New regulatory capital rules were effective for BOK Financial on January 1, 2015 and established a 7 percent threshold for the common equity Tier 1 ratio. The Company's common equity Tier 1 ratio was 13.07 percent at March 31, 2015. In addition, the Company's Tier 1 capital ratio was 13.07 percent, total capital ratio was 14.39 percent and leverage ratio was 9.74 percent at March 31, 2015. The impact of the new regulatory capital rules reduced regulatory capital and increased risk weighted assets. However, this impact was partially offset by the effect of improved data granularity in the determination of risk weighted assets.
Under then current regulatory capital rules, at December 31, 2014 the Company's Tier 1 capital ratio was 13.33 percent, total capital ratio was 14.66 percent, and leverage ratio was 9.96 percent.
In addition, the Company's tangible common equity ratio, a non-GAAP measure, was 9.86 percent at March 31, 2015 and 10.08 percent at December 31, 2014. The tangible common equity ratio is primarily based on total shareholders' equity which includes unrealized gains and losses on available for sale securities. The Company has elected to exclude unrealized gains and losses from available for sale securities from its calculation of Tier 1 capital for regulatory capital purposes, consistent with the treatment under the previous capital rules.

5



Credit Quality
Nonperforming assets totaled $207 million or 1.40 percent of outstanding loans and repossessed assets at March 31, 2015 compared to $257 million or 1.79 percent at December 31, 2014. This decrease was primarily due to the transfer of repossessed assets guaranteed by U.S. government agencies to receivables in accordance with a newly required accounting standard. Nonperforming assets that are not guaranteed by U.S. government agencies totaled $123 million or 0.85 percent of outstanding loans and repossessed assets (excluding those guaranteed by U.S. government agencies) at March 31, 2015 and $129 million or 0.92 percent at December 31, 2014, a decrease of $6.0 million.
Nonaccruing loans totaled $81 million or 0.55 percent of outstanding loans at March 31, 2015, compared to $81 million or 0.57 percent of outstanding loans at December 31, 2014. New nonaccruing loans identified in the first quarter totaled $14 million, offset by $7.8 million in payments received, $2.8 million in foreclosures and repossessions and $2.2 million in charge-offs. At March 31, 2015, nonaccruing commercial loans totaled $14 million or 0.15 percent of outstanding commercial loans, nonaccruing commercial real estate loans totaled $20 million or 0.68 percent of outstanding commercial real estate loans and nonaccruing residential mortgage loans totaled $46 million or 2.41 percent of outstanding residential mortgage loans.
BOK Financial had net recoveries of $8.4 million for the first quarter of 2015, compared to net loans charged off of $2.2 million for the fourth quarter of 2014. Gross charge-offs totaled $2.2 million for the first quarter, compared to $7.2 million for the previous quarter. Recoveries totaled $10.5 million for the first quarter of 2015 and $5.0 million for the fourth quarter of 2014.
After evaluating all credit factors, the Company determined that no provision for credit losses was necessary during the first quarter of 2015. The combined allowance for credit losses totaled $199 million or 1.35 percent of outstanding loans and 246 percent of nonaccruing loans at March 31, 2015. The allowance for loan losses was $198 million and the accrual for off-balance sheet credit losses was $954 thousand.
Real estate and other repossessed assets totaled $46 million at March 31, 2015, primarily consisting of $19 million of one-to-four family residential properties, $17 million of developed commercial real estate properties, $6.1 million of undeveloped land and $3.2 million of residential land and land development properties.
Securities and Derivatives
The fair value of the available for sale securities portfolio totaled $9.2 billion at March 31, 2015, an increase of $179 million over December 31, 2014. At March 31, 2015, the available for sale portfolio consisted primarily of $6.7 billion of residential mortgage-backed securities fully backed by U.S. government agencies and $2.2 billion of commercial mortgage-backed securities fully backed by U.S. government agencies.
At March 31, 2015 the available for sale securities portfolio had a net unrealized gain of $152 million compared to a net unrealized gain of $97 million at December 31, 2014. Net unrealized gains on residential mortgage-backed securities issued by U.S. government agencies at March 31, 2015 increased $32 million during the first quarter to $130 million primarily due to changes in interest rates during the quarter. Commercial mortgage-backed securities had a net unrealized gain of $6.9 million at March 31, 2015, compared to a net unrealized loss of $15 million at December 31, 2014.

6



In the first quarter of 2015, the Company recognized $4.3 million of net gains from sales of $335 million of available for sale securities. Securities were sold either because they had reached their expected maximum potential return or to move into securities that will perform better in a rising rate environment. The Company recognized $149 thousand of net gains from sales of $772 million of available for sale securities in the fourth quarter of 2014.
The Company also maintains a portfolio of residential mortgage-backed securities issued by U.S. government agencies and interest rate derivative contracts designated as an economic hedge of the changes in the fair value of our mortgage servicing rights. The fair value of mortgage servicing rights decreased by $8.5 million due primarily to a 24 basis point decrease in the average primary residential mortgage rate during during the first quarter of 2015. The value of securities and interest rate derivative contracts held as an economic hedge increased by $3.6 million during the quarter. Mortgage interest rate changes decreased the fair value of mortgage servicing rights, net of economic hedges by $6.1 million in the fourth quarter of 2014.

7



Conference Call and Webcast

The Company will hold a conference call at 9 a.m. central time on Wednesday, April 29, 2015 to discuss the financial results with investors. The live audio webcast and presentation slides will be available on the company’s website at www.bokf.com. The conference call can also be accessed by dialing 1-412-902-6611. A conference call and webcast replay will also be available shortly after conclusion of the live call at www.bokf.com or by dialing 1-412-317-0088 and referencing conference ID # 10063919.

About BOK Financial Corporation
BOK Financial Corporation is a $30 billion regional financial services company based in Tulsa, Oklahoma. The Company's stock is publicly traded on NASDAQ under the Global Select market listings (symbol: BOKF). BOK Financial's holdings include BOKF, NA, BOSC, Inc. and The Milestone Group, Inc. BOKF, NA operates TransFund, Cavanal Hill Investment Management, MBM Advisors and seven banking divisions: Bank of Albuquerque, Bank of Arizona, Bank of Arkansas, Bank of Kansas City, Bank of Oklahoma, Bank of Texas and Colorado State Bank and Trust. Through its subsidiaries, the Company provides commercial and consumer banking, investment and trust services, mortgage origination and servicing, and an electronic funds transfer network. For more information, visit www.bokf.com.
The Company will continue to evaluate critical assumptions and estimates, such as the appropriateness of the allowance for credit losses and asset impairment as of March 31, 2015 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.

8



BALANCE SHEETS -- UNAUDITED
BOK FINANCIAL CORPORATION
(In thousands)
 
 
March 31,
2015
 
December 31,
2014
 
March 31,
2014
ASSETS
 
 
 
 
 
 
Cash and due from banks
 
$
490,683

 
$
550,576

 
$
645,435

Interest-bearing cash and cash equivalents
 
2,119,987

 
1,925,266

 
708,571

Trading securities
 
118,044

 
188,700

 
86,571

Investment securities
 
634,587

 
652,360

 
668,976

Available for sale securities
 
9,158,175

 
8,978,945

 
9,933,723

Fair value option securities
 
434,077

 
311,597

 
160,884

Restricted equity securities
 
212,685

 
141,494

 
85,643

Residential mortgage loans held for sale
 
513,196

 
304,182

 
226,512

Loans:
 
 
 
 
 
 
Commercial
 
9,391,163

 
9,095,670

 
8,051,706

Commercial real estate
 
2,935,464

 
2,728,150

 
2,631,407

Residential mortgage
 
1,926,999

 
1,949,512

 
2,018,675

Consumer
 
430,510

 
434,705

 
376,066

Total loans
 
14,684,136

 
14,208,037

 
13,077,854

Allowance for loan losses
 
(197,686
)
 
(189,056
)
 
(188,318
)
Loans, net of allowance
 
14,486,450

 
14,018,981

 
12,889,536

Premises and equipment, net
 
279,075

 
273,833

 
279,257

Receivables
 
183,447

 
132,408

 
114,437

Goodwill
 
377,780

 
377,780

 
364,570

Intangible assets, net
 
33,286

 
34,376

 
31,561

Mortgage servicing rights
 
175,051

 
171,976

 
153,774

Real estate and other repossessed assets, net
 
45,551

 
101,861

 
95,515

Derivative contracts, net
 
462,386

 
361,874

 
218,507

Cash surrender value of bank-owned life insurance
 
296,192

 
293,978

 
286,932

Receivable on unsettled securities sales
 
9,598

 
74,259

 
18,199

Other assets
 
269,728

 
195,252

 
396,111

TOTAL ASSETS
 
$
30,299,978

 
$
29,089,698

 
$
27,364,714

 
 
 
 
 
 
 
LIABILITIES AND EQUITY
 
 
 
 
 
 
Deposits:
 
 
 
 
 
 
Demand
 
$
8,009,577

 
$
8,066,357

 
$
7,472,287

Interest-bearing transaction
 
10,108,202

 
10,114,355

 
9,899,656

Savings
 
383,790

 
351,431

 
355,596

Time
 
2,651,778

 
2,608,716

 
2,662,174

Total deposits
 
21,153,347

 
21,140,859

 
20,389,713

Funds purchased
 
66,320

 
57,031

 
1,166,178

Repurchase agreements
 
897,663

 
1,187,489

 
777,108

Other borrowings
 
3,727,050

 
2,133,774

 
1,031,693

Subordinated debentures
 
348,030

 
347,983

 
347,846

Accrued interest, taxes, and expense
 
147,184

 
120,211

 
160,351

Due on unsettled securities purchases
 
25,935

 
290,540

 
39,641

Derivative contracts, net
 
419,351

 
354,554

 
185,499

Other liabilities
 
124,846

 
121,051

 
122,086

TOTAL LIABILITIES
 
26,909,726

 
25,753,492

 
24,220,115

Shareholders' equity:
 
 
 
 
 
 
Capital, surplus and retained earnings
 
3,266,858

 
3,245,506

 
3,103,130

Accumulated other comprehensive income
 
90,303

 
56,673

 
6,795

TOTAL SHAREHOLDERS' EQUITY
 
3,357,161

 
3,302,179

 
3,109,925

Non-controlling interests
 
33,091

 
34,027

 
34,674

TOTAL EQUITY
 
3,390,252

 
3,336,206

 
3,144,599

TOTAL LIABILITIES AND EQUITY
 
$
30,299,978

 
$
29,089,698

 
$
27,364,714


9



AVERAGE BALANCE SHEETS -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands)
 
Three Months Ended
 
March 31,
2015
 
December 31,
2014
 
September 30,
2014
 
June 30,
2014
 
March 31,
2014
ASSETS
 
 
 
 
 
 
 
 
 
Interest-bearing cash and cash equivalents
$
2,089,546

 
$
2,090,176

 
$
1,217,942

 
$
635,140

 
$
549,473

Trading securities
140,968

 
164,502

 
107,909

 
116,186

 
92,409

Investment securities
642,825

 
650,911

 
641,375

 
658,793

 
671,756

Available for sale securities
9,101,464

 
9,161,901

 
9,526,727

 
9,800,934

 
10,076,942

Fair value option securities
404,775

 
221,773

 
180,268

 
164,684

 
165,515

Restricted equity securities
179,385

 
182,737

 
142,418

 
97,016

 
85,234

Residential mortgage loans held for sale
348,054

 
321,746

 
310,924

 
219,308

 
185,196

Loans:
 
 
 
 
 
 
 
 
 
  Commercial
9,308,307

 
8,886,952

 
8,468,575

 
8,266,455

 
7,971,712

  Commercial real estate
2,909,565

 
2,665,547

 
2,691,318

 
2,622,866

 
2,605,264

  Residential mortgage
1,909,998

 
1,904,777

 
1,955,769

 
1,983,926

 
1,998,620

  Consumer
426,712

 
424,729

 
402,916

 
391,214

 
372,330

Total loans
14,554,582

 
13,882,005

 
13,518,578

 
13,264,461

 
12,947,926

Allowance for loan losses
(194,948
)
 
(190,787
)
 
(191,141
)
 
(189,329
)
 
(186,979
)
Total loans, net
14,359,634

 
13,691,218

 
13,327,437

 
13,075,132

 
12,760,947

Total earning assets
27,266,651

 
26,484,964

 
25,455,000

 
24,767,193

 
24,587,472

Cash and due from banks
513,734

 
528,595

 
493,200

 
481,944

 
473,758

Derivative contracts, net
447,565

 
352,565

 
288,682

 
291,325

 
287,363

Cash surrender value of bank-owned life insurance
294,803

 
292,411

 
290,044

 
287,725

 
285,592

Receivable on unsettled securities sales
99,706

 
69,109

 
63,277

 
108,825

 
114,708

Other assets
1,348,245

 
1,404,553

 
1,525,354

 
1,549,809

 
1,489,875

TOTAL ASSETS
$
29,970,704

 
$
29,132,197

 
$
28,115,557

 
$
27,486,821

 
$
27,238,768

 
 
 
 
 
 
 
 
 
 
LIABILITIES AND EQUITY
 
 
 
 
 
 
 
 
 
Deposits:
 
 
 
 
 
 
 
 
 
  Demand
$
7,885,485

 
$
7,974,165

 
$
7,800,350

 
$
7,654,225

 
$
7,312,076

  Interest-bearing transaction
10,338,396

 
9,730,564

 
9,473,575

 
9,850,991

 
9,900,823

  Savings
365,835

 
346,132

 
342,488

 
355,459

 
336,576

  Time
2,659,323

 
2,647,147

 
2,610,561

 
2,636,444

 
2,686,041

Total deposits
21,249,039

 
20,698,008

 
20,226,974

 
20,497,119

 
20,235,516

Funds purchased
69,730

 
71,728

 
320,817

 
574,926

 
1,021,755

Repurchase agreements
1,000,839

 
996,308

 
1,027,206

 
914,892

 
773,127

Other borrowings
3,084,214

 
3,021,094

 
2,333,961

 
1,294,932

 
1,038,747

Subordinated debentures
348,007

 
347,960

 
347,914

 
347,868

 
347,824

Derivative contracts, net
418,848

 
321,367

 
270,998

 
243,619

 
258,729

Due on unsettled securities purchases
205,096

 
137,566

 
124,952

 
166,521

 
116,295

Other liabilities
243,370

 
228,021

 
214,306

 
270,220

 
341,701

TOTAL LIABILITIES
26,619,143

 
25,822,052

 
24,867,128

 
24,310,097

 
24,133,694

Total equity
3,351,561

 
3,310,145

 
3,248,429

 
3,176,724

 
3,105,074

TOTAL LIABILITIES AND EQUITY
$
29,970,704

 
$
29,132,197

 
$
28,115,557

 
$
27,486,821

 
$
27,238,768


10



STATEMENTS OF EARNINGS -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands, except per share data)
 
Three Months Ended
 
March 31,
 
2015
 
2014
 
 
 
 
Interest revenue
$
184,569

 
$
179,120

Interest expense
16,843

 
16,478

Net interest revenue
167,726

 
162,642

Provision for credit losses

 

Net interest revenue after provision for credit losses
167,726

 
162,642

Other operating revenue:
 
 
 
Brokerage and trading revenue
31,707

 
29,516

Transaction card revenue
31,010

 
29,134

Fiduciary and asset management revenue
31,469

 
25,722

Deposit service charges and fees
21,684

 
22,689

Mortgage banking revenue
39,320

 
22,844

Bank-owned life insurance
2,198

 
2,106

Other revenue
8,603

 
8,852

Total fees and commissions
165,991

 
140,863

Gain (loss) on other assets, net
755

 
(2,328
)
Gain (loss) on derivatives, net
911

 
968

Gain (loss) on fair value option securities, net
2,647

 
2,660

Change in fair value of mortgage servicing rights
(8,522
)
 
(4,461
)
Gain on available for sale securities, net
4,327

 
1,240

Total other-than-temporary impairment losses
(781
)
 

Portion of loss recognized in (reclassified from) other comprehensive income
689

 

Net impairment losses recognized in earnings
(92
)
 

Total other operating revenue
166,017

 
138,942

Other operating expense:
 
 
 
Personnel
128,548

 
104,433

Business promotion
5,748

 
5,841

Charitable contributions to BOKF Foundation

 
2,420

Professional fees and services
10,059

 
7,565

Net occupancy and equipment
19,044

 
16,896

Insurance
4,980

 
4,541

Data processing and communications
30,620

 
27,135

Printing, postage and supplies
3,461

 
3,541

Net losses and operating expenses of repossessed assets
613

 
1,432

Amortization of intangible assets
1,090

 
816

Mortgage banking costs
9,319

 
3,634

Other expense
6,783

 
6,850

Total other operating expense
220,265

 
185,104

 
 
 
 
Net income before taxes
113,478

 
116,480

Federal and state income taxes
38,384

 
39,437

 
 
 
 
Net income
75,094

 
77,043

Net income attributable to non-controlling interests
251

 
453

Net income attributable to BOK Financial Corporation shareholders
$
74,843

 
$
76,590

 
 
 
 
Average shares outstanding:
 
 
 
Basic
68,254,780

 
68,273,685

Diluted
68,344,886

 
68,436,478

 
 
 
 
Net income per share:
 
 
 
Basic
$
1.08

 
$
1.11

Diluted
$
1.08

 
$
1.11


11



FINANCIAL HIGHLIGHTS -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands, except ratio and share data)
 
Three Months Ended
 
March 31,
2015
 
December 31,
2014
 
September 30,
2014
 
June 30,
2014
 
March 31,
2014
Capital:
 
 
 
 
 
 
 
 
 
Period-end shareholders' equity
$
3,357,161

 
$
3,302,179

 
$
3,243,093

 
$
3,212,517

 
$
3,109,925

Risk weighted assets
$
22,053,246

 
$
21,290,908

 
$
20,491,089

 
$
20,216,268

 
$
19,720,418

Risk-based capital ratios1:
 
 
 
 
 
 
 
 
 
Common equity tier 1
13.07
%
 
N/A

 
N/A

 
N/A

 
N/A

Tier 1
13.07
%
 
13.33
%
 
13.72
%
 
13.63
%
 
13.77
%
Total capital
14.39
%
 
14.66
%
 
15.11
%
 
15.38
%
 
15.55
%
Leverage ratio
9.74
%
 
9.96
%
 
10.22
%
 
10.26
%
 
10.17
%
Tangible common equity ratio2
9.86
%
 
10.08
%
 
9.86
%
 
10.20
%
 
10.06
%
 
 
 
 
 
 
 
 
 
 
Common stock:
 
 
 
 
 
 
 
 
 
Book value per share
$
48.71

 
$
47.78

 
$
46.77

 
$
46.39

 
$
45.00

Market value per share:
 
 
 
 
 
 
 
 
 
High
$
61.78

 
$
68.69

 
$
69.56

 
$
70.66

 
$
70.78

Low
$
52.63

 
$
56.87

 
$
63.36

 
$
61.64

 
$
61.85

Cash dividends paid
$
28,952

 
$
29,114

 
$
27,705

 
$
27,706

 
$
27,637

Dividend payout ratio
38.68
%
 
45.27
%
 
36.63
%
 
36.51
%
 
36.08
%
Shares outstanding, net
68,922,314

 
69,113,736

 
69,344,082

 
69,256,958

 
69,111,167

Stock buy-back program:
 
 
 
 
 
 
 
 
 
Shares repurchased
502,156

 
200,000

 

 

 

Amount
$
29,484

 
$
12,337

 
$

 
$

 
$

Average price per share
$
58.71

 
$
61.68

 
$

 
$

 
$

 
 
 
 
 
 
 
 
 
 
Performance ratios (quarter annualized):
Return on average assets
1.01
%
 
0.88
%
 
1.07
%
 
1.11
%
 
1.14
%
Return on average equity
9.06
%
 
7.71
%
 
9.24
%
 
9.58
%
 
10.00
%
Net interest margin
2.55
%
 
2.61
%
 
2.67
%
 
2.75
%
 
2.71
%
Efficiency ratio
64.91
%
 
67.95
%
 
67.18
%
 
64.30
%
 
60.06
%
 
 
 
 
 
 
 
 
 
 
1       March 31, 2015 risk-based capital ratios calculated under revised regulatory capital rules issued July 2013 and effective for the Company January 1, 2015. Previous risk-based capital ratios presented are calculated in accordance with then current regulatory capital rules.
 
 
 
 
 
 
 
 
 
 
Reconciliation of non-GAAP measures:
2      Tangible common equity ratio:
 
 
 
 
 
 
 
 
 
Total shareholders' equity
$
3,357,161

 
$
3,302,179

 
$
3,243,093

 
$
3,212,517

 
$
3,109,925

Less: Goodwill and intangible assets, net
411,066

 
412,156

 
413,256

 
414,356

 
396,131

Tangible common equity
$
2,946,095

 
$
2,890,023

 
$
2,829,837

 
$
2,798,161

 
$
2,713,794

 
 
 
 
 
 
 
 
 
 
Total assets
$
30,299,978

 
$
29,089,698

 
$
29,105,020

 
$
27,843,770

 
$
27,364,714

Less: Goodwill and intangible assets, net
411,066

 
412,156

 
413,256

 
414,356

 
396,131

Tangible assets
$
29,888,912

 
$
28,677,542

 
$
28,691,764

 
$
27,429,414

 
$
26,968,583

 
 
 
 
 
 
 
 
 
 
Tangible common equity ratio
9.86
%
 
10.08
%
 
9.86
%
 
10.20
%
 
10.06
%
 
 
 
 
 
 
 
 
 
 

12



FINANCIAL HIGHLIGHTS -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands, except ratio and share data)
 
Three Months Ended
 
March 31,
2015
 
December 31,
2014
 
September 30,
2014
 
June 30,
2014
 
March 31,
2014
Other data:
 
 
 
 
 
 
 
 
 
Fiduciary assets
$
37,511,746

 
$
35,997,877

 
$
34,020,442

 
$
32,716,648

 
$
31,296,565

Tax equivalent adjustment
$
2,956

 
$
2,859

 
$
2,739

 
$
2,803

 
$
2,551

Net unrealized gain on available for sale securities
$
152,107

 
$
96,955

 
$
42,935

 
$
85,480

 
$
15,446

 
 
 
 
 
 
 
 
 
 
Mortgage banking:
 
 
 
 
 
 
 
 
 
Mortgage servicing portfolio
$
16,937,128

 
$
16,162,887

 
$
15,499,653

 
$
14,626,291

 
$
14,045,642

Mortgage commitments
$
650,988

 
$
520,829

 
$
537,975

 
$
546,864

 
$
387,755

Mortgage loans funded for sale
$
1,565,016

 
$
1,264,269

 
$
1,394,211

 
$
1,090,629

 
$
727,516

Mortgage loan refinances to total fundings
56
%
 
37
%
 
26
%
 
25
%
 
32
%
 
 
 
 
 
 
 
 
 
 
Net realized gains on mortgage loans sold
$
17,251

 
$
17,671

 
$
17,100

 
$
12,746

 
$
9,179

Change in net unrealized gains on mortgage loans held for sale
3,451

 
618

 
(3,110
)
 
5,052

 
2,797

Change in fair value of mortgage loan commitments
7,529

 
1,491

 
(5,136
)
 
7,581

 
3,379

Change in fair value of forward sales contracts
(2,191
)
 
(2,591
)
 
5,839

 
(7,652
)
 
(3,903
)
Total production revenue
26,040

 
17,189

 
14,693

 
17,727

 
11,452

Servicing revenue
13,280

 
12,916

 
12,121

 
11,603

 
11,392

Total mortgage banking revenue
$
39,320

 
$
30,105

 
$
26,814

 
$
29,330

 
$
22,844

 
 
 
 
 
 
 
 
 
 
Gain (loss) on mortgage servicing rights, net of economic hedge:
Gain (loss) on mortgage hedge derivative contracts, net
$
911

 
$
1,070

 
$
(93
)
 
$
831

 
$
968

Gain (loss) on fair value option securities, net
2,647

 
3,685

 
(341
)
 
4,074

 
2,585

Gain (loss) on economic hedge of mortgage servicing rights
3,558

 
4,755

 
(434
)
 
4,905

 
3,553

Gain (loss) on changes in fair value of mortgage servicing rights
(8,522
)
 
(10,821
)
 
5,281

 
(6,444
)
 
(4,461
)
Gain (loss) on changes in fair value of mortgage servicing rights, net of economic hedges
$
(4,964
)
 
$
(6,066
)
 
$
4,847

 
$
(1,539
)
 
$
(908
)
 
 
 
 
 
 
 
 
 
 
Net interest revenue on fair value option securities
$
1,739

 
$
912

 
$
830

 
$
721

 
$
790



13



QUARTERLY EARNINGS TREND -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands, except ratio and per share data)
 
Three Months Ended
 
March 31,
2015
 
December 31,
2014
 
September 30,
2014
 
June 30,
2014
 
March 31,
2014
 
 
 
 
 
 
 
 
 
 
Interest revenue
$
184,569

 
$
186,620

 
$
183,868

 
$
182,631

 
$
179,120

Interest expense
16,843

 
16,956

 
17,077

 
16,534

 
16,478

Net interest revenue
167,726

 
169,664

 
166,791

 
166,097

 
162,642

Provision for credit losses

 

 

 

 

Net interest revenue after provision for credit losses
167,726

 
169,664

 
166,791

 
166,097

 
162,642

Other operating revenue:
 
 
 
 
 
 
 
 
 
Brokerage and trading revenue
31,707

 
30,602

 
35,263

 
39,056

 
29,516

Transaction card revenue
31,010

 
31,467

 
31,578

 
31,510

 
29,134

Fiduciary and asset management revenue
31,469

 
30,649

 
29,738

 
29,543

 
25,722

Deposit service charges and fees
21,684

 
22,581

 
22,508

 
23,133

 
22,689

Mortgage banking revenue
39,320

 
30,105

 
26,814

 
29,330

 
22,844

Bank-owned life insurance
2,198

 
2,380

 
2,326

 
2,274

 
2,106

Other revenue
8,603

 
10,071

 
10,320

 
9,208

 
8,852

Total fees and commissions
165,991

 
157,855

 
158,547

 
164,054

 
140,863

Gain (loss) on other assets, net
755

 
338

 
1,422

 
3,521

 
(2,328
)
Gain (loss) on derivatives, net
911

 
1,070

 
(93
)
 
831

 
968

Gain (loss) on fair value option securities, net
2,647

 
3,685

 
(332
)
 
4,176

 
2,660

Change in fair value of mortgage servicing rights
(8,522
)
 
(10,821
)
 
5,281

 
(6,444
)
 
(4,461
)
Gain on available for sale securities, net
4,327

 
149

 
146

 
4

 
1,240

Total other-than-temporary impairment losses
(781
)
 
(373
)
 

 

 

Portion of loss recognized in (reclassified from) other comprehensive income
689

 

 

 

 

Net impairment losses recognized in earnings
(92
)
 
(373
)
 

 

 

Total other operating revenue
166,017

 
151,903

 
164,971

 
166,142

 
138,942

Other operating expense:
 
 
 
 
 
 
 
 
 
Personnel
128,548

 
125,741

 
123,043

 
123,714

 
104,433

Business promotion
5,748

 
7,498

 
6,160

 
7,150

 
5,841

Charitable contributions to BOKF Foundation

 
1,847

 

 

 
2,420

Professional fees and services
10,059

 
11,058

 
14,763

 
11,054

 
7,565

Net occupancy and equipment
19,044

 
22,655

 
18,892

 
18,789

 
16,896

Insurance
4,980

 
4,777

 
4,793

 
4,467

 
4,541

Data processing and communications
30,620

 
30,872

 
29,971

 
29,071

 
27,135

Printing, postage and supplies
3,461

 
3,168

 
3,380

 
3,429

 
3,541

Net losses (gains) and operating expenses of repossessed assets
613

 
(1,497
)
 
4,966

 
1,118

 
1,432

Amortization of intangible assets
1,090

 
1,100

 
1,100

 
949

 
816

Mortgage banking costs
9,319

 
10,553

 
7,734

 
7,960

 
3,634

Other expense
6,783

 
8,105

 
7,032

 
7,006

 
6,850

Total other operating expense
220,265

 
225,877

 
221,834

 
214,707

 
185,104

Net income before taxes
113,478

 
95,690

 
109,928

 
117,532

 
116,480

Federal and state income taxes
38,384

 
30,109

 
33,802

 
40,803

 
39,437

Net income
75,094

 
65,581

 
76,126

 
76,729

 
77,043

Net income attributable to non-controlling interests
251

 
1,263

 
494

 
834

 
453

Net income attributable to BOK Financial Corporation shareholders
$
74,843

 
$
64,318

 
$
75,632

 
$
75,895

 
$
76,590

 
 
 
 
 
 
 
 
 
 
Average shares outstanding:
 
 
 
 
 
 
 
 
 
Basic
68,254,780

 
68,481,630

 
68,455,866

 
68,359,945

 
68,273,685

Diluted
68,344,886

 
68,615,808

 
68,609,765

 
68,511,378

 
68,436,478

Net income per share:
 
 
 
 
 
 
 
 
 
Basic
$
1.08

 
$
0.93

 
$
1.09

 
$
1.10

 
$
1.11

Diluted
$
1.08

 
$
0.93

 
$
1.09

 
$
1.10

 
$
1.11



14



LOANS TREND -- UNAUDITED
BOK FINANCIAL CORPORATION
(In thousands)
 
 
March 31,
2015
 
December 31,
2014
 
September 30,
2014
 
June 30,
2014
 
March 31,
2014
Commercial:
 
 
 
 
 
 
 
 
 
 
Energy
 
$
2,902,994

 
$
2,860,428

 
$
2,551,699

 
$
2,419,788

 
$
2,344,072

Services
 
2,728,354

 
2,518,229

 
2,487,817

 
2,377,065

 
2,232,471

Wholesale/retail
 
1,270,322

 
1,313,316

 
1,273,241

 
1,318,151

 
1,225,990

Manufacturing
 
560,925

 
532,594

 
479,543

 
452,866

 
444,215

Healthcare
 
1,511,177

 
1,454,969

 
1,382,399

 
1,394,156

 
1,396,562

Other commercial and industrial
 
417,391

 
416,134

 
397,339

 
405,635

 
408,396

Total commercial
 
9,391,163

 
9,095,670

 
8,572,038

 
8,367,661

 
8,051,706

 
 
 
 
 
 
 
 
 
 
 
Commercial real estate:
 
 

 
 

 
 

 
 

 
 

Residential construction and land development
 
139,152

 
143,591

 
175,228

 
184,779

 
184,820

Retail
 
658,860

 
666,889

 
611,265

 
642,110

 
640,506

Office
 
513,862

 
415,544

 
438,909

 
394,217

 
436,264

Multifamily
 
749,986

 
704,298

 
739,757

 
677,403

 
662,674

Industrial
 
478,584

 
428,817

 
371,426

 
342,080

 
305,207

Other commercial real estate
 
395,020

 
369,011

 
387,614

 
414,389

 
401,936

Total commercial real estate
 
2,935,464

 
2,728,150

 
2,724,199

 
2,654,978

 
2,631,407

 
 
 
 
 
 
 
 
 
 
 
Residential mortgage:
 
 

 
 

 
 

 
 

 
 

Permanent mortgage
 
964,264

 
969,951

 
991,107

 
1,020,928

 
1,033,572

Permanent mortgages guaranteed by U.S. government agencies
 
200,179

 
205,950

 
198,488

 
188,087

 
184,822

Home equity
 
762,556

 
773,611

 
790,068

 
799,200

 
800,281

Total residential mortgage
 
1,926,999

 
1,949,512

 
1,979,663

 
2,008,215

 
2,018,675

 
 
 
 
 
 
 
 
 
 
 
Consumer
 
430,510

 
434,705

 
407,839

 
396,004

 
376,066

 
 
 
 
 
 
 
 
 
 
 
Total
 
$
14,684,136

 
$
14,208,037

 
$
13,683,739

 
$
13,426,858

 
$
13,077,854


15



LOANS BY PRINCIPAL MARKET AREA -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands)
 
March 31,
2015
 
December 31,
2014
 
September 30,
2014
 
June 30,
2014
 
March 31,
2014
 
 
 
 
 
 
 
 
 
 
Bank of Oklahoma:
 
 
 
 
 
 
 
 
 
    Commercial
$
3,276,553

 
$
3,142,689

 
$
3,106,264

 
$
3,101,513

 
$
2,782,997

    Commercial real estate
612,639

 
603,610

 
592,865

 
598,790

 
593,282

    Residential mortgage
1,442,340

 
1,467,096

 
1,481,264

 
1,490,171

 
1,505,702

    Consumer
205,496

 
206,115

 
193,207

 
187,914

 
179,733

        Total Bank of Oklahoma
5,537,028

 
5,419,510

 
5,373,600

 
5,378,388

 
5,061,714

 
 
 
 
 
 
 
 
 
 
Bank of Texas:
 
 
 
 
 
 
 
 
 
    Commercial
3,709,467

 
3,549,128

 
3,169,458

 
3,107,808

 
3,161,203

    Commercial real estate
1,130,973

 
1,027,817

 
1,046,322

 
995,182

 
969,804

    Residential mortgage
237,985

 
235,948

 
247,117

 
251,290

 
256,332

    Consumer
149,827

 
154,363

 
148,965

 
147,322

 
136,782

        Total Bank of Texas
5,228,252

 
4,967,256

 
4,611,862

 
4,501,602

 
4,524,121

 
 
 
 
 
 
 
 
 
 
Bank of Albuquerque:
 
 
 
 
 
 
 
 
 
    Commercial
388,005

 
383,439

 
378,663

 
381,843

 
351,454

    Commercial real estate
296,696

 
296,358

 
313,905

 
309,421

 
305,080

    Residential mortgage
127,326

 
127,999

 
130,045

 
137,110

 
131,932

    Consumer
12,095

 
10,899

 
11,714

 
12,346

 
12,972

        Total Bank of Albuquerque
824,122

 
818,695

 
834,327

 
840,720

 
801,438

 
 
 
 
 
 
 
 
 
 
Bank of Arkansas:
 
 
 
 
 
 
 
 
 
    Commercial
91,485

 
95,510

 
74,866

 
71,859

 
73,804

    Commercial real estate
87,034

 
88,301

 
96,874

 
85,633

 
81,181

    Residential mortgage
6,807

 
7,261

 
7,492

 
8,334

 
7,898

    Consumer
5,114

 
5,169

 
5,508

 
6,323

 
6,881

        Total Bank of Arkansas
190,440

 
196,241

 
184,740

 
172,149

 
169,764

 
 
 
 
 
 
 
 
 
 
Colorado State Bank & Trust:
 
 
 
 
 
 
 
 
 
    Commercial
1,008,316

 
977,961

 
957,917

 
856,323

 
825,315

    Commercial real estate
209,272

 
194,553

 
190,812

 
200,995

 
213,850

    Residential mortgage
55,925

 
57,119

 
56,705

 
60,360

 
57,345

    Consumer
27,792

 
27,918

 
24,812

 
23,330

 
22,095

        Total Colorado State Bank & Trust
1,301,305

 
1,257,551

 
1,230,246

 
1,141,008

 
1,118,605

 
 
 
 
 
 
 
 
 
 
Bank of Arizona:
 
 
 
 
 
 
 
 
 
    Commercial
519,767

 
547,524

 
500,208

 
446,814

 
453,799

    Commercial real estate
432,269

 
355,140

 
316,698

 
292,799

 
301,266

    Residential mortgage
36,161

 
35,872

 
39,256

 
41,059

 
42,899

    Consumer
12,394

 
12,883

 
11,201

 
7,821

 
7,145

        Total Bank of Arizona
1,000,591

 
951,419

 
867,363

 
788,493

 
805,109

 
 
 
 
 
 
 
 
 
 
Bank of Kansas City:
 
 
 
 
 
 
 
 
 
    Commercial
397,570

 
399,419

 
384,662

 
401,501

 
403,134

    Commercial real estate
166,581

 
162,371

 
166,723

 
172,158

 
166,944

    Residential mortgage
20,455

 
18,217

 
17,784

 
19,891

 
16,567

    Consumer
17,792

 
17,358

 
12,432

 
10,948

 
10,458

        Total Bank of Kansas City
602,398

 
597,365

 
581,601

 
604,498

 
597,103

 
 
 
 
 
 
 
 
 
 
TOTAL BOK FINANCIAL
$
14,684,136

 
$
14,208,037

 
$
13,683,739

 
$
13,426,858

 
$
13,077,854


Loans attributed to a geographical region may not always represent the location of the borrower or the collateral.


16



DEPOSITS BY PRINCIPAL MARKET AREA -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands)
 
March 31,
2015
 
December 31,
2014
 
September 30,
2014
 
June 30,
2014
 
March 31,
2014
Bank of Oklahoma:
 
 
 
 
 
 
 
 
 
    Demand
$
3,982,534

 
$
3,828,819

 
$
3,915,560

 
$
3,785,922

 
$
3,476,876

    Interest-bearing:
 
 
 
 
 
 
 
 
 
       Transaction
6,199,468

 
6,117,886

 
5,450,692

 
5,997,474

 
6,148,712

       Savings
227,855

 
206,357

 
201,690

 
210,330

 
211,770

       Time
1,372,250

 
1,301,194

 
1,292,738

 
1,195,586

 
1,209,002

    Total interest-bearing
7,799,573

 
7,625,437

 
6,945,120

 
7,403,390

 
7,569,484

Total Bank of Oklahoma
11,782,107

 
11,454,256

 
10,860,680

 
11,189,312

 
11,046,360

 
 
 
 
 
 
 
 
 
 
Bank of Texas:
 
 
 
 
 
 
 
 
 
    Demand
2,511,032

 
2,639,732

 
2,636,713

 
2,617,194

 
2,513,729

    Interest-bearing:
 
 
 
 
 
 
 
 
 
       Transaction
2,062,063

 
2,065,723

 
2,020,737

 
1,957,236

 
1,967,107

       Savings
76,128

 
72,037

 
66,798

 
67,012

 
70,890

       Time
547,371

 
547,316

 
569,929

 
606,248

 
621,925

    Total interest-bearing
2,685,562

 
2,685,076

 
2,657,464

 
2,630,496

 
2,659,922

Total Bank of Texas
5,196,594

 
5,324,808

 
5,294,177

 
5,247,690

 
5,173,651

 
 
 
 
 
 
 
 
 
 
Bank of Albuquerque:
 
 
 
 
 
 
 
 
 
    Demand
537,466

 
487,819

 
480,023

 
515,554

 
524,191

    Interest-bearing:
 
 
 
 
 
 
 
 
 
       Transaction
535,791

 
519,544

 
502,787

 
489,378

 
516,734

       Savings
42,088

 
37,471

 
36,127

 
36,442

 
37,481

       Time
290,706

 
295,798

 
303,074

 
309,540

 
320,352

    Total interest-bearing
868,585

 
852,813

 
841,988

 
835,360

 
874,567

Total Bank of Albuquerque
1,406,051

 
1,340,632

 
1,322,011

 
1,350,914

 
1,398,758

 
 
 
 
 
 
 
 
 
 
Bank of Arkansas:
 
 
 
 
 
 
 
 
 
    Demand
31,002

 
35,996

 
35,075

 
44,471

 
40,026

    Interest-bearing:
 
 
 
 
 
 
 
 
 
       Transaction
253,691

 
158,115

 
234,063

 
205,216

 
212,144

       Savings
1,677

 
1,936

 
2,222

 
2,287

 
2,264

       Time
28,277

 
28,520

 
38,811

 
41,155

 
32,312

    Total interest-bearing
283,645

 
188,571

 
275,096

 
248,658

 
246,720

Total Bank of Arkansas
314,647

 
224,567

 
310,171

 
293,129

 
286,746

 
 
 
 
 
 
 
 
 
 
Colorado State Bank & Trust:
 
 
 
 
 
 
 
 
 
    Demand
412,532

 
445,755

 
422,044

 
396,185

 
399,820

    Interest-bearing:
 
 
 
 
 
 
 
 
 
       Transaction
604,665

 
631,874

 
571,807

 
566,320

 
536,438

       Savings
31,524

 
29,811

 
29,768

 
29,234

 
28,973

       Time
340,006

 
353,998

 
372,401

 
385,252

 
399,948

    Total interest-bearing
976,195

 
1,015,683

 
973,976

 
980,806

 
965,359

Total Colorado State Bank & Trust
1,388,727

 
1,461,438

 
1,396,020

 
1,376,991

 
1,365,179

 
 
 
 
 
 
 
 
 
 

17



DEPOSITS BY PRINCIPAL MARKET AREA -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands)
 
March 31,
2015
 
December 31,
2014
 
September 30,
2014
 
June 30,
2014
 
March 31,
2014
Bank of Arizona:
 
 
 
 
 
 
 
 
 
    Demand
271,091

 
369,115

 
279,811

 
293,836

 
265,149

    Interest-bearing:
 
 
 
 
 
 
 
 
 
       Transaction
295,480

 
347,214

 
336,584

 
379,170

 
409,200

       Savings
2,900

 
2,545

 
3,718

 
2,813

 
2,711

       Time
28,086

 
36,680

 
38,842

 
37,666

 
37,989

    Total interest-bearing
326,466

 
386,439

 
379,144

 
419,649

 
449,900

Total Bank of Arizona
597,557

 
755,554

 
658,955

 
713,485

 
715,049

 
 
 
 
 
 
 
 
 
 
Bank of Kansas City:
 
 
 
 
 
 
 
 
 
    Demand
263,920

 
259,121

 
268,903

 
254,843

 
252,496

    Interest-bearing:
 
 
 
 
 
 
 
 
 
       Transaction
157,044

 
273,999

 
128,039

 
103,610

 
109,321

       Savings
1,618

 
1,274

 
1,315

 
1,511

 
1,507

       Time
45,082

 
45,210

 
48,785

 
40,379

 
40,646

    Total interest-bearing
203,744

 
320,483

 
178,139

 
145,500

 
151,474

Total Bank of Kansas City
467,664

 
579,604

 
447,042

 
400,343

 
403,970

 
 
 
 
 
 
 
 
 
 
TOTAL BOK FINANCIAL
$
21,153,347

 
$
21,140,859

 
$
20,289,056

 
$
20,571,864

 
$
20,389,713


18



NET INTEREST MARGIN TREND -- UNAUDITED
BOK FINANCIAL CORPORATION
 
Three Months Ended
 
March 31,
2015
 
December 31,
2014
 
September 30,
2014
 
June 30,
2014
 
March 31,
2014
 
 
 
 
 
 
 
 
 
 
TAX-EQUIVALENT ASSETS YIELDS
 
 
 
 
 
 
 
 
 
Interest-bearing cash and cash equivalents
0.27
%
 
0.28
%
 
0.20
%
 
0.24
%
 
0.20
%
Trading securities
2.55
%
 
2.48
%
 
2.67
%
 
2.40
%
 
2.85
%
Investment securities:
 
 
 
 
 
 
 
 
 
    Taxable
5.51
%
 
5.68
%
 
5.66
%
 
5.64
%
 
5.64
%
    Tax-exempt
1.56
%
 
1.56
%
 
1.56
%
 
1.63
%
 
1.67
%
Total investment securities
3.04
%
 
3.11
%
 
3.03
%
 
3.01
%
 
3.04
%
Available for sale securities:
 
 
 
 
 
 
 
 
 
    Taxable
1.95
%
 
1.97
%
 
1.94
%
 
1.94
%
 
1.90
%
    Tax-exempt
4.40
%
 
4.23
%
 
3.14
%
 
4.44
%
 
3.11
%
Total available for sale securities
1.98
%
 
1.99
%
 
1.95
%
 
1.96
%
 
1.91
%
Fair value option securities
2.28
%
 
2.18
%
 
2.05
%
 
1.94
%
 
1.99
%
Restricted equity securities
5.79
%
 
5.77
%
 
5.99
%
 
5.26
%
 
4.68
%
Residential mortgage loans held for sale
3.41
%
 
3.87
%
 
3.79
%
 
4.63
%
 
3.46
%
Loans
3.59
%
 
3.73
%
 
3.78
%
 
3.85
%
 
3.89
%
Allowance for loan losses
 
 
 
 
 
 
 
 
 
Loans, net of allowance
3.64
%
 
3.78
%
 
3.83
%
 
3.91
%
 
3.95
%
Total tax-equivalent yield on earning assets
2.80
%
 
2.86
%
 
2.93
%
 
3.02
%
 
2.99
%
 
 
 
 
 
 
 
 
 
 
COST OF INTEREST-BEARING LIABILITIES
 
 
 
 
 
 
 
 
 
Interest-bearing deposits:
 
 
 
 
 
 
 
 
 
  Interest-bearing transaction
0.10
%
 
0.09
%
 
0.10
%
 
0.10
%
 
0.10
%
  Savings
0.10
%
 
0.11
%
 
0.12
%
 
0.12
%
 
0.12
%
  Time
1.46
%
 
1.47
%
 
1.56
%
 
1.55
%
 
1.56
%
Total interest-bearing deposits
0.37
%
 
0.38
%
 
0.41
%
 
0.40
%
 
0.41
%
Funds purchased
0.09
%
 
0.08
%
 
0.07
%
 
0.07
%
 
0.06
%
Repurchase agreements
0.04
%
 
0.04
%
 
0.05
%
 
0.08
%
 
0.08
%
Other borrowings
0.32
%
 
0.32
%
 
0.34
%
 
0.40
%
 
0.40
%
Subordinated debt
2.52
%
 
2.50
%
 
2.46
%
 
2.52
%
 
2.52
%
Total cost of interest-bearing liabilities
0.38
%
 
0.39
%
 
0.41
%
 
0.42
%
 
0.41
%
Tax-equivalent net interest revenue spread
2.42
%
 
2.47
%
 
2.52
%
 
2.60
%
 
2.58
%
Effect of noninterest-bearing funding sources and other
0.13
%
 
0.14
%
 
0.15
%
 
0.15
%
 
0.13
%
Tax-equivalent net interest margin
2.55
%
 
2.61
%
 
2.67
%
 
2.75
%
 
2.71
%

Yield calculations are shown on a tax equivalent basis at the statutory federal and state rates for the periods presented. The yield calculations exclude security trades that have been recorded on trade date with no corresponding interest income and the unrealized gains and losses. The yield calculation also includes average loan balances for which the accrual of interest has been discontinued and are net of unearned income. Yield/rate calculations are generally based on the conventions that determine how interest income and expense is accrued.

19



CREDIT QUALITY INDICATORS -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands, except ratios)
 
Three Months Ended
 
March 31,
2015
 
December 31,
2014
 
September 30,
2014
 
June 30,
2014
 
March 31,
2014
Nonperforming assets:
 
 
 
 
 
 
 
 
 
Nonaccruing loans:
 
 
 
 
 
 
 
 
 
Commercial
$
13,880

 
$
13,527

 
$
16,404

 
$
17,103

 
$
19,047

Commercial real estate
19,902

 
18,557

 
30,660

 
34,472

 
39,305

Residential mortgage
46,487

 
48,121

 
48,907

 
44,340

 
45,380

Consumer
464

 
566

 
580

 
765

 
974

Total nonaccruing loans
80,733

 
80,771

 
96,551

 
96,680

 
104,706

Accruing renegotiated loans guaranteed by U.S. government agencies
80,287

 
73,985

 
70,459

 
57,818

 
55,507

Real estate and other repossessed assets:
 
 
 
 
 
 
 
 
 
Guaranteed by U.S. government agencies2

 
49,898

 
46,809

 
49,720

 
45,638

Other
45,551

 
51,963

 
51,062

 
50,391

 
49,877

Total real estate and other repossessed assets
45,551

 
101,861

 
97,871

 
100,111

 
95,515

Total nonperforming assets
$
206,571

 
$
256,617

 
$
264,881

 
$
254,609

 
$
255,728

Total nonperforming assets excluding those guaranteed by U.S. government agencies
$
123,028

 
$
129,022

 
$
143,778

 
$
145,124

 
$
153,011

 
 
 
 
 
 
 
 
 
 
Nonaccruing loans by loan class:
 
 
 
 
 
 
 
 
 
Commercial:
 
 
 
 
 
 
 
 
 
Energy
$
1,875

 
$
1,416

 
$
1,508

 
$
1,619

 
$
1,759

Services
4,744

 
5,201

 
3,584

 
3,669

 
4,581

Wholesale / retail
4,401

 
4,149

 
5,502

 
5,885

 
6,854

Manufacturing
417

 
450

 
3,482

 
3,507

 
3,565

Healthcare
1,558

 
1,380

 
1,417

 
1,422

 
1,443

Other commercial and industrial
885

 
931

 
911

 
1,001

 
845

Total commercial
13,880

 
13,527

 
16,404

 
17,103

 
19,047

Commercial real estate:
 
 
 
 
 
 
 
 
 
Residential construction and land development
9,598

 
5,299

 
14,634

 
15,146

 
16,547

Retail
3,857

 
3,926

 
4,009

 
4,199

 
4,626

Office
2,410

 
3,420

 
3,499

 
3,591

 
6,301

Multifamily

 

 

 

 

Industrial
76

 

 

 
631

 
886

Other commercial real estate
3,961

 
5,912

 
8,518

 
10,905

 
10,945

Total commercial real estate
19,902

 
18,557

 
30,660

 
34,472

 
39,305

Residential mortgage:
 
 
 
 
 
 
 
 
 
Permanent mortgage
33,365

 
34,845

 
35,137

 
32,952

 
36,342

Permanent mortgage guaranteed by U.S. government agencies
3,256

 
3,712

 
3,835

 
1,947

 
1,572

Home equity
9,866

 
9,564

 
9,935

 
9,441

 
7,466

Total residential mortgage
46,487

 
48,121

 
48,907

 
44,340

 
45,380

Consumer
464

 
566

 
580

 
765

 
974

Total nonaccruing loans
$
80,733

 
$
80,771

 
$
96,551

 
$
96,680

 
$
104,706

 
 
 
 
 
 
 
 
 
 

20



CREDIT QUALITY INDICATORS -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands, except ratios)
 
Three Months Ended
 
March 31,
2015
 
December 31,
2014
 
September 30,
2014
 
June 30,
2014
 
March 31,
2014
 
 
 
 
 
 
 
 
 
 
Performing loans 90 days past due1
$
523

 
$
125

 
$
25

 
$
67

 
$
1,991

 
 
 
 
 
 
 
 
 
 
Gross charge-offs
$
(2,169
)
 
$
(7,224
)
 
$
(2,638
)
 
$
(3,522
)
 
$
(2,848
)
Recoveries
10,523

 
5,036

 
3,114

 
5,524

 
5,360

Net recoveries (charge-offs)
$
8,354

 
$
(2,188
)
 
$
476

 
$
2,002

 
$
2,512

 
 
 
 
 
 
 
 
 
 
Provision for credit losses
$

 
$

 
$

 
$

 
$

 
 
 
 
 
 
 
 
 
 
Allowance for loan losses to period end loans
1.35
 %
 
1.33
%
 
1.40
 %
 
1.42
 %
 
1.44
 %
Combined allowance for credit losses to period end loans
1.35
 %
 
1.34
%
 
1.41
 %
 
1.43
 %
 
1.45
 %
Nonperforming assets to period end loans and repossessed assets
1.40
 %
 
1.79
%
 
1.92
 %
 
1.88
 %
 
1.94
 %
Net charge-offs (annualized) to average loans
(0.23
)%
 
0.06
%
 
(0.01
)%
 
(0.06
)%
 
(0.08
)%
Allowance for loan losses to nonaccruing loans
244.86
 %
 
234.06
%
 
198.08
 %
 
197.24
 %
 
179.86
 %
Combined allowance for credit losses to nonaccruing loans
246.05
 %
 
235.59
%
 
199.35
 %
 
198.59
 %
 
181.46
 %
1 
Excludes residential mortgage loans guaranteed by agencies of the U.S. government.
2 
Approximately $50 million was reclassified from Real estate and other repossessed assets to Receivables on the balance sheet on January 1, 2015 with the adoption of Financial Accounting Standards Board Update No. 2014-14, Classification of Certain Government-Guaranteed Mortgage Loans Upon Foreclosure ("ASU 2014-14"). Upon foreclosure of loans for which the loan balance is expected to be recovered from the guarantee by a U.S. government agency, the loan balance will be directly reclassified to other receivables without including such foreclosed assets in real estate and other repossessed assets.

21
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