EX-99 2 a20170331bokfex99.htm EXHIBIT 99 Exhibit


Exhibit 99 (a)
image0a01a01a01a06.jpg

NASD: BOKF


For Further Information Contact:
Joseph Crivelli             
Investor Relations             
(918) 595-3027             

BOK Financial Reports Quarterly Earnings of $88 Million
Results Driven by Margin Expansion and Operating Expense Containment
TULSA, Okla. (Wednesday, April 26, 2017) - BOK Financial Corporation reported net income of $88.4 million or $1.35 per diluted share for the first quarter of 2017. Net income was $50.0 million or $0.76 per diluted share for the fourth quarter of 2016 and $42.6 million or $0.64 per diluted share for the first quarter of 2016.

Steven G. Bradshaw, president and chief executive officer of BOK Financial, stated, “The year is off to a very strong start, and financial results in the first quarter of 2017 represent the second-highest net income total in our company’s history. Net interest margin and net interest revenue are up substantially due to the improved interest rate environment. Fee and commissions revenue growth remains steady, driven by the strength of our diverse wealth management business. And cost containment initiatives executed last year are driving much better results in terms of expense management, with total expenses down by over $20 million sequentially despite including the first full quarter of Mobank-related operating expenses.”
 
Bradshaw continued, “We completed the operational conversion of Mobank in February, and this acquisition is well ahead of our financial forecasts. With Mobank, total deposits at quarter–end are up 11 percent compared to March 31, 2016; and organic deposit growth during the same period was 6.5%. Our deposit franchise provides a significant funding advantage, and while we continue to believe that some demand deposits will migrate into interest–bearing accounts in the current rising rate environment, to date we have seen very limited pressure on deposit costs.” 
First Quarter 2017 Highlights
•
Net interest revenue totaled $201.2 million for the first quarter of 2017, up $7.0 million over the fourth quarter of 2016. Net interest margin was 2.81 percent for the first quarter of 2017, compared to 2.69 percent for the fourth quarter of 2016. Average earning assets increased $416 million during the first quarter of 2017, primarily due to a $412 million increase in average loan balances.

1


•
Fees and commissions revenue totaled $164.4 million for the first quarter of 2017, a $2.3 million increase over the prior quarter. Fiduciary and asset management revenue grew by $4.1 million due to an increase in the value of assets managed and a decrease in waived fees. Mortgage banking revenue decreased $3.2 million and transaction card revenue decreased $2.4 million. Brokerage and trading revenue was unchanged, excluding a $5.0 million loss on trading asset positions from the previous quarter.
•
The change in the fair value of mortgage servicing rights, net of economic hedges increased pre-tax net income in the first quarter of 2017 by $188 thousand. The change in the fair value of mortgage servicing rights, net of economic hedges decreased pre-tax net income in the fourth quarter of 2016 by $17.0 million.
•
Operating expense was $244.7 million for the first quarter of 2017, a decrease of $20.8 million compared to the prior quarter. Expenses related to the Mobank acquisition, severance and a contribution to the BOKF Foundation added $11.7 million to the fourth quarter of 2016. Excluding these items, operating expense decreased $9.1 million, primarily due to lower mortgage banking and deposit insurance costs.
•
Income tax expense was $38.1 million or 30.1% of net income before taxes for the first quarter of 2017, compared to $22.5 million or 31.1% in the fourth quarter of 2016. The first quarter included a $3.9 million benefit related to the implementation of a new accounting standard that includes the tax effect of vested equity compensation awards in income tax expense. Previously the tax effect of these awards was included in stockholders' equity.
•
No provision for credit losses was recorded in the first quarter of 2017 or the fourth quarter of 2016 due to continued improvement in credit metric trends. The company had a net recovery of $747 thousand in the first quarter of 2017, compared to a net recovery of $1.2 million in the previous quarter.
•
The combined allowance for credit losses totaled $258 million or 1.52 percent of outstanding loans at March 31, 2017 compared to $257 million or 1.52 percent of outstanding loans at December 31, 2016.
•
Nonperforming assets that are not guaranteed by U.S. government agencies totaled $240 million or 1.43 percent of outstanding loans and repossessed assets (excluding those guaranteed by U.S. government agencies) at March 31, 2017 and $263 million or 1.56 percent of outstanding loans and repossessed assets (excluding those guaranteed by U.S. government agencies) at December 31, 2016. The decrease in nonperforming assets was primarily due to a $22 million decrease in nonaccruing energy loans.
•
Average loans increased by $412 million over the previous quarter, primarily due to a full quarter's impact of the Mobank acquisition. Excluding this impact, average loan balances were largely unchanged compared to the fourth quarter of 2016. Period-end outstanding loan balances totaled $17.0 billion at March 31, 2017, largely unchanged compared to December 31, 2016.

2


•
Average deposits increased $666 million over the previous quarter, including $390 million related to the impact of a full quarter of deposits from the Mobank acquisition. Excluding this impact, average interest-bearing transaction deposits grew by $402 million and time deposit balances were up $63 million, partially offset by a $201 million decrease in demand deposits. Period-end deposits were $22.6 billion at March 31, 2017, a $173 million decrease compared to December 31, 2016.
•
The common equity Tier 1 capital ratio at March 31, 2017 was 11.60 percent. Other regulatory capital ratios were Tier 1 capital ratio, 11.60 percent, total capital ratio, 13.26 percent and leverage ratio, 8.89 percent. At December 31, 2016, the common equity Tier 1 capital ratio was 11.21 percent, the Tier 1 capital ratio was 11.21 percent, total capital ratio was 12.81 percent, and leverage ratio was 8.72 percent.
•
The company paid a regular quarterly cash dividend of $29 million or $0.44 per common share during the first quarter of 2017. On April 25, 2017, the board of directors approved a quarterly cash dividend of $0.44 per common share payable on or about May 26, 2017 to shareholders of record as of May 12, 2017.
Net Interest Revenue
Net interest revenue was $201.2 million for the first quarter of 2017, up $7.0 million over the fourth quarter of 2016.
Net interest margin was 2.81 percent for the first quarter of 2017, an increase of 12 basis points over the fourth quarter of 2016, due largely to a full quarter effect of the Fed's 25 basis point December increase in short-term rates. The yield on average earning assets was 3.15 percent, an increase of 17 basis points. The loan portfolio yield increased 21 basis points to 3.88 percent primarily due to increases in the 30 day and 90 day LIBOR and improved energy loan yields. The yield on the available for sale securities portfolio increased 5 basis points to 2.05 percent. The yield on interest-bearing cash and cash equivalents increased 27 basis points. Funding costs were 0.52 percent, up 8 basis points. Growth in the cost of interest-bearing deposits was limited to 3 basis points by a lack of market pricing pressure.
Average earning assets increased $416 million during the first quarter of 2017. Average loan balances increased $412 million, primarily due to a full quarter's impact of the Mobank acquisition. The average balance of fair value option securities held as an economic hedge of our mortgage servicing rights increased $206 million. Average trading securities portfolio balances increased $103 million and interest-bearing cash and cash equivalents balances were up $55 million. These increases were offset by a $200 million decrease in available for sale securities portfolio balances and a $125 million decrease in the average balance of residential mortgage loans held for sale.
Average interest-bearing deposit balances increased $689 million over the fourth quarter of 2016, including $212 million related to a full quarter's impact of the Mobank acquisition. The average balance of borrowed funds decreased $378 million.

3


Fees and Commissions Revenue
Fees and commissions revenue totaled $164.4 million for the first quarter of 2017, an increase of $2.3 million over the fourth quarter of 2016. Brokerage and trading revenue for the fourth quarter of 2016 included a $5.0 million decrease in the value of trading assets caused by an unexpected 85 basis point increase in the 10-year U.S. Treasury interest rate and related rates.
Fiduciary and asset management revenue grew by $4.1 million over the fourth quarter of 2016 to $38.6 million. Revenue growth was largely due to a $2.6 billion increase in the value of fiduciary assets under management to a record high of $44.4 billion at March 31, 2017. Additionally, waived fees earned as administrator and investment advisor of the Cavanal Hill Funds decreased $964 thousand compared to the previous quarter to $445 thousand.
Mortgage banking revenue totaled $25.2 million for the first quarter of 2017, a $3.2 million decrease over the fourth quarter of 2016. Revenue from mortgage loan production decreased $3.4 million due to a $103 million decrease in mortgage production volume and a 26 basis point decrease in gain on sale margin compared to the prior quarter. Production volume decreased in response to higher primary mortgage interest rates and margin narrowed due to increased competition, largely in the Home Direct online delivery channel.
Transaction card revenue was down $2.4 million, primarily due to a seasonal decrease in transaction volumes.
Operating Expense
Total operating expense was $244.7 million for the first quarter of 2017, a decrease of $20.8 million compared to the fourth quarter of 2016. Expenses related to the completion of the Mobank acquisition were $2.0 million in the first quarter of 2017 and $4.7 million in the fourth quarter of 2016. In addition, operating expense in the fourth quarter of 2016 included $5.0 million of severance and other expenses related to staff reductions and a $2.0 million contribution to the BOKF Foundation. The discussion following excludes the impact of these items.
Personnel expense increased $1.9 million over the fourth quarter of 2016. Employee benefits costs were up $4.7 million primarily due to a seasonal increase in payroll tax expense and increased employee retirement plans costs, partially offset by lower employee medical costs. Regular compensation increased $2.5 million and included a full quarter impact of the Mobank acquisition. Incentive compensation expense decreased $5.3 million.
Non-personnel expense decreased $13.1 million compared to the fourth quarter of 2016. Mortgage banking expense decreased $4.3 million primarily due to the effect of slowing actual residential mortgage loan prepayments on the fair value of mortgage servicing rights. Deposit insurance expense was $2.3 million lower due to improvements in credit quality and other risk factors. Professional fees were down $2.3 million and other expense decreased $2.3 million.

4


Loans, Deposits and Capital
Loans
Outstanding loans were $17.0 billion at March 31, 2017, largely unchanged compared to the previous quarter. Growth in commercial real estate was offset by a decrease in commercial loan balances.
Outstanding commercial loan balances decreased $64 million. Healthcare sector loans grew by $64 million. Energy loan balances increased $39 million. Unfunded energy loan commitments were largely unchanged at $2.7 billion. Manufacturing loans increased $28 million. This growth was offset by a $96 million decrease in service sector loan balances, a $71 million decrease in wholesale/retail sector loan balances and a $29 million decrease in other commercial and industrial loans.
Commercial real estate loans grew by $62 million. Loans secured by office buildings increased by $62 million and were broadly distributed across the Texas, New Mexico and Oklahoma markets. Multifamily residential loans increased $20 million. Growth in the Arizona and Kansas/Missouri markets was partially offset by a decrease in loans attributed to the Texas and Oklahoma markets. Retail sector loans decreased $17 million, primarily in the Texas and Arizona markets, partially offset by growth in the Oklahoma market.
Deposits
Period-end deposits totaled $22.6 billion at March 31, 2017, a $173 million decrease compared to December 31, 2016. Interest-bearing transaction account balances decreased $506 million, partially offset by a $271 million increase in demand deposit balances. In addition, both savings and time deposit balances grew over the prior quarter. Excluding the impact of allocating Mobank deposits among the lines of business, Wealth Management deposits decreased $154 million and Commercial Banking deposits decreased $101 million. Consumer Banking deposits grew by $122 million.
Capital
The company's common equity Tier 1 capital ratio was 11.60 percent at March 31, 2017. In addition, the company's Tier 1 capital ratio was 11.60 percent, total capital ratio was 13.26 percent and leverage ratio was 8.89 percent at March 31, 2017. At December 31, 2016, the company's common equity Tier 1 capital ratio was 11.21 percent, Tier 1 capital ratio was 11.21 percent, total capital ratio was 12.81 percent, and leverage ratio was 8.72 percent.
The company's tangible common equity ratio, a non-GAAP measure, was 8.88 percent at March 31, 2017 and 8.61 percent at December 31, 2016. 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 $334 million or 1.96 percent of outstanding loans and repossessed assets at March 31, 2017 compared to $357 million or 2.09 percent at December 31, 2016. Nonperforming assets that are not guaranteed by U.S. government agencies totaled $240 million or 1.43 percent of outstanding loans and repossessed assets (excluding those guaranteed by U.S. government agencies) at March 31, 2017 compared to $263 million or 1.56 percent at December 31, 2016.
Nonaccruing loans totaled $208 million or 1.22 percent of outstanding loans at March 31, 2017, down from $231 million or 1.36 percent of outstanding loans at December 31, 2016. The decrease in nonaccruing loans was primarily due to a $22 million decrease in nonaccruing energy loans. New nonaccruing loans identified in the first quarter totaled $23 million, offset by $35 million in payments received, $2.2 million in charge-offs and $3.3 million in foreclosures and repossessions. Additionally, $5.9 million was returned to accruing status based on improved credit risk and performance. At March 31, 2017, nonaccruing commercial loans totaled $157 million or 1.52 percent of outstanding commercial loans, nonaccruing commercial real estate loans totaled $4.5 million or 0.12 percent of outstanding commercial real estate loans and nonaccruing residential mortgage loans totaled $46 million or 2.37 percent of outstanding residential mortgage loans.
Potential problem loans, which are defined as performing loans that based on known information cause management concern as to the borrowers' ability to continue to perform, totaled $413 million at March 31 compared to $399 million at December 31. The increase largely resulted from healthcare and manufacturing potential problem loans, partially offset by a decrease in potential problem energy loans.
Marc Maun, chief credit officer, stated, “We continued to see a stable credit environment in the first quarter, with no segments of our loan portfolio showing any material signs of stress. We recognized net recoveries during the quarter, saw nonaccrual loans decrease by over ten percent, and have a combined allowance for credit losses to period–end loans at or near the top of our peer group of mid-sized regional banks. After evaluating all credit factors, no provision for loan losses was booked for the first quarter. Looking forward, we are forecasting $15 million to $20 million provision for the full year.”
Maun continued, “Retail commercial real estate (CRE) has been in the spotlight recently due to several high–profile retailer store closings. I’m pleased to report that as of March 31, 2017 we had minimal criticized or classified retail CRE loans in our portfolio. Our portfolio is carefully constructed to limit CRE exposure to any one retailer, is geographically diverse, and represents best–in–class retail developers with multiple sources of repayment.”
The company had a net recovery of $747 thousand for the first quarter of 2017, compared to a net recovery of $1.2 million in the fourth quarter of 2016. Gross charge-offs totaled $2.2 million for the first quarter, compared to $1.7 million for the previous quarter. Recoveries totaled $2.9 million for the first quarter of 2017 and $2.8 million for the fourth quarter of 2016.
As noted above, the company determined that no provision for credit losses was necessary during the first quarter of 2017 based on the continued improvement in credit metrics. No provision for credit losses was recorded in the previous quarter. The combined allowance for credit losses totaled $258 million or 1.52 percent of outstanding loans and 131 percent of nonaccruing loans at March 31, 2017. The allowance for loan losses was $249 million and the accrual for off-balance sheet credit losses was $9.4 million.
Securities and Derivatives
The fair value of the available for sale securities portfolio totaled $8.4 billion at March 31, 2017, a $240 million decrease compared to December 31, 2016. At March 31, 2017, the available for sale portfolio consisted primarily of $5.4 billion of residential mortgage-backed securities fully backed by U.S. government agencies and $2.9 billion of commercial mortgage-backed securities fully backed by U.S. government agencies.
At March 31, 2017, the available for sale securities portfolio had a net unrealized loss of $5.5 million compared to a net unrealized loss of $15 million at December 31, 2016. The decrease in net unrealized loss was primarily due to changes in interest rates during the quarter. Net unrealized losses on residential mortgage-backed securities issued by U.S. government agencies at March 31, 2017 decreased $7.7 million during the first quarter to $7.3 million. Commercial mortgage-backed securities had a net unrealized loss of $18 million at March 31, 2017, unchanged compared to December 31, 2016.
The company also maintains a portfolio of financial instruments primarily consisting of residential mortgage-backed securities issued by U.S. government agencies and interest rate derivative contracts as an economic hedge of the changes in the fair value of our mortgage servicing rights.
The net economic benefit of the changes in fair value of mortgage servicing rights and related economic hedges was $1.5 million, including a $1.9 million increase in the fair value of the mortgage servicing rights, a $1.7 million decrease in the fair value of securities and derivative contracts held as an economic hedge and $1.3 million of related net interest revenue. The improvement over the prior quarter was due primarily to materially higher long-term interest rates and a relatively stable rate environment during the first quarter.

6


The fair value of mortgage servicing rights increased by $39.8 million during the fourth quarter of 2016 primarily due to an increase in residential mortgage rates during the quarter. The fair value of securities and interest rate derivative contracts held as an economic hedge of mortgage servicing rights decreased by $56.8 million. The significant increase in long-term interest rates in the fourth quarter resulted in a loss on this hedge, partially offset by an increase in the fair value of the mortgage servicing rights.

7


Conference Call and Webcast

The company will hold a conference call at 9 a.m. Central time on Wednesday, April 26, 2017 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 1-201-689-8471. A conference call and webcast replay will also be available shortly after conclusion of the live call at www.bokf.com or by dialing 1-844-512-2921 and referencing conference ID # 13659658.

About BOK Financial Corporation
BOK Financial Corporation is a $33 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, BOK Financial Securities, Inc. and The Milestone Group, Inc. BOKF, NA operates TransFund, Cavanal Hill Investment Management, BOK Financial Asset Management, Inc. and seven banking divisions: Bank of Albuquerque, Bank of Arizona, Bank of Arkansas, Mobank, 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, 2017 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,” “will,” “intends,” 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, allowance for uncertain tax positions, accruals for loss contingencies and valuation of mortgage servicing rights involve judgments as to expected 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 changes in commodity prices, interest rates and interest rate relationships, demand for products and services, the degree of competition by traditional and nontraditional competitors, changes in banking regulations, tax laws, prices, levies and assessments, the impact of technological advances, and trends in customer 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
Exhibit 99 (b)

BALANCE SHEETS -- UNAUDITED
BOK FINANCIAL CORPORATION
(In thousands)
 
March 31, 2017
 
Dec. 31, 2016
 
March 31, 2016
ASSETS
 
 
 
 
 
Cash and due from banks
$
546,575

 
$
620,846

 
$
481,510

Interest-bearing cash and cash equivalents
2,220,640

 
1,916,651

 
1,831,162

Trading securities
677,156

 
337,628

 
279,539

Investment securities
519,402

 
546,145

 
576,047

Available for sale securities
8,437,291

 
8,676,829

 
8,886,036

Fair value option securities
441,714

 
77,046

 
418,887

Restricted equity securities
283,936

 
307,240

 
314,590

Residential mortgage loans held for sale
248,707

 
301,897

 
332,040

Loans:
 
 
 
 
 
Commercial
10,327,110

 
10,390,824

 
10,288,425

Commercial real estate
3,871,063

 
3,809,046

 
3,370,507

Residential mortgage
1,946,274

 
1,949,832

 
1,869,309

Personal
847,459

 
839,958

 
494,325

Total loans
16,991,906

 
16,989,660

 
16,022,566

Allowance for loan losses
(248,710
)
 
(246,159
)
 
(233,156
)
Loans, net of allowance
16,743,196

 
16,743,501

 
15,789,410

Premises and equipment, net
325,546

 
325,849

 
311,161

Receivables
394,394

 
772,952

 
167,209

Goodwill
445,738

 
448,899

 
383,789

Intangible assets, net
42,556

 
46,931

 
44,944

Mortgage servicing rights
249,403

 
247,073

 
196,055

Real estate and other repossessed assets, net
42,726

 
44,287

 
29,896

Derivative contracts, net
304,727

 
689,872

 
790,146

Cash surrender value of bank-owned life insurance
310,537

 
308,430

 
305,510

Receivable on unsettled securities sales
9,921

 
7,188

 
5,640

Other assets
384,767

 
353,017

 
270,374

TOTAL ASSETS
$
32,628,932

 
$
32,772,281

 
$
31,413,945

 
 
 
 
 
 
LIABILITIES AND EQUITY
 
 
 
 
 
Deposits:
 
 
 
 
 
Demand
$
9,506,573

 
$
9,235,720

 
$
7,950,675

Interest-bearing transaction
10,359,214

 
10,865,105

 
9,709,766

Savings
465,724

 
425,470

 
416,505

Time
2,243,848

 
2,221,800

 
2,341,374

Total deposits
22,575,359

 
22,748,095

 
20,418,320

Funds purchased
47,629

 
57,929

 
62,755

Repurchase agreements
508,352

 
668,661

 
630,101

Other borrowings
5,238,947

 
4,846,072

 
5,633,862

Subordinated debentures
144,649

 
144,640

 
226,385

Accrued interest, taxes and expense
140,235

 
146,704

 
148,711

Due on unsettled securities purchases
137,069

 
6,508

 
19,508

Derivative contracts, net
276,422

 
664,531

 
705,578

Other liabilities
189,376

 
182,784

 
212,460

TOTAL LIABILITIES
29,258,038

 
29,465,924

 
28,057,680

Shareholders' equity:
 
 
 
 
 
Capital, surplus and retained earnings
3,346,965

 
3,285,821

 
3,228,446

Accumulated other comprehensive income (loss)
(5,221
)
 
(10,967
)
 
93,109

TOTAL SHAREHOLDERS' EQUITY
3,341,744

 
3,274,854

 
3,321,555

Non-controlling interests
29,150

 
31,503

 
34,710

TOTAL EQUITY
3,370,894

 
3,306,357

 
3,356,265

TOTAL LIABILITIES AND EQUITY
$
32,628,932

 
$
32,772,281

 
$
31,413,945


9


AVERAGE BALANCE SHEETS -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands)
 
Three Months Ended
 
March 31, 2017
 
Dec. 31, 2016
 
Sept. 30, 2016
 
June 30, 2016
 
March 31, 2016
ASSETS
 
 
 
 
 
 
 
 
 
Interest-bearing cash and cash equivalents
$
2,087,964

 
$
2,032,785

 
$
2,047,991

 
$
2,022,028

 
$
2,052,840

Trading securities
579,549

 
476,498

 
366,545

 
237,808

 
188,100

Investment securities
530,936

 
542,869

 
552,592

 
562,391

 
587,465

Available for sale securities
8,567,049

 
8,766,555

 
8,862,590

 
8,890,112

 
8,951,435

Fair value option securities
416,524

 
210,733

 
266,998

 
368,434

 
450,478

Restricted equity securities
312,498

 
334,114

 
335,812

 
319,136

 
294,529

Residential mortgage loans held for sale
220,325

 
345,066

 
445,930

 
401,114

 
289,743

Loans:
 
 
 
 
 
 
 
 
 
Commercial
10,414,579

 
10,228,095

 
10,109,692

 
10,265,782

 
10,268,793

Commercial real estate
3,903,850

 
3,749,393

 
3,789,673

 
3,550,611

 
3,364,076

Residential mortgage
1,962,759

 
1,919,296

 
1,870,855

 
1,864,458

 
1,865,742

Personal
854,637

 
826,804

 
677,530

 
582,281

 
493,382

Total loans
17,135,825

 
16,723,588

 
16,447,750

 
16,263,132

 
15,991,993

Allowance for loan losses
(249,379
)
 
(246,977
)
 
(247,901
)
 
(245,448
)
 
(234,116
)
Total loans, net
16,886,446

 
16,476,611

 
16,199,849

 
16,017,684

 
15,757,877

Total earning assets
29,601,291

 
29,185,231

 
29,078,307

 
28,818,707

 
28,572,467

Cash and due from banks
547,104

 
578,694

 
511,534

 
507,085

 
505,522

Derivative contracts, net
401,886

 
681,455

 
766,671

 
823,584

 
632,102

Cash surrender value of bank-owned life insurance
309,223

 
309,532

 
308,670

 
306,318

 
304,141

Receivable on unsettled securities sales
62,641

 
33,813

 
259,906

 
49,568

 
115,101

Other assets
2,032,844

 
2,172,351

 
1,721,385

 
1,480,780

 
1,379,138

TOTAL ASSETS
$
32,954,989

 
$
32,961,076

 
$
32,646,473

 
$
31,986,042

 
$
31,508,471

 
 
 
 
 
 
 
 
 
 
LIABILITIES AND EQUITY
 
 
 
 
 
 
 
 
 
Deposits:
 
 
 
 
 
 
 
 
 
Demand
$
9,101,763

 
$
9,124,595

 
$
8,497,037

 
$
8,162,134

 
$
8,105,756

Interest-bearing transaction
10,567,475

 
9,980,132

 
9,650,618

 
9,590,855

 
9,756,843

Savings
441,254

 
421,654

 
420,009

 
417,122

 
397,479

Time
2,258,930

 
2,177,035

 
2,197,350

 
2,297,621

 
2,366,543

Total deposits
22,369,422

 
21,703,416

 
20,765,014

 
20,467,732

 
20,626,621

Funds purchased
55,508

 
62,004

 
68,280

 
70,682

 
112,211

Repurchase agreements
523,561

 
560,891

 
522,822

 
611,264

 
662,640

Other borrowings
5,737,955

 
6,072,150

 
6,342,369

 
6,076,028

 
5,583,917

Subordinated debentures
144,644

 
144,635

 
255,890

 
232,795

 
226,368

Derivative contracts, net
405,444

 
682,808

 
747,187

 
791,313

 
544,722

Due on unsettled securities purchases
91,529

 
77,575

 
200,574

 
93,812

 
158,050

Other liabilities
299,534

 
321,404

 
352,671

 
298,170

 
268,705

TOTAL LIABILITIES
29,627,597

 
29,624,883

 
29,254,807

 
28,641,796

 
28,183,234

Total equity
3,327,392

 
3,336,193

 
3,391,666

 
3,344,246

 
3,325,237

TOTAL LIABILITIES AND EQUITY
$
32,954,989

 
$
32,961,076

 
$
32,646,473

 
$
31,986,042

 
$
31,508,471


10


STATEMENTS OF EARNINGS -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands, except per share data)
 
Three Months Ended
 
March 31,
 
2017
 
2016
 
 
 
 
Interest revenue
$
226,390

 
$
201,796

Interest expense
25,208

 
19,224

Net interest revenue
201,182

 
182,572

Provision for credit losses
—

 
35,000

Net interest revenue after provision for credit losses
201,182

 
147,572

Other operating revenue:
 
 
 
Brokerage and trading revenue
33,623

 
32,341

Transaction card revenue
32,127

 
32,354

Fiduciary and asset management revenue
38,631

 
32,056

Deposit service charges and fees
23,030

 
22,542

Mortgage banking revenue
25,191

 
32,100

Other revenue
11,752

 
11,904

Total fees and commissions
164,354

 
163,297

Other gains, net
3,627

 
1,560

Gain (loss) on derivatives, net
(450
)
 
7,138

Gain (loss) on fair value option securities, net
(1,140
)
 
9,443

Change in fair value of mortgage servicing rights
1,856

 
(27,988
)
Gain on available for sale securities, net
2,049

 
3,964

Total other operating revenue
170,296

 
157,414

Other operating expense:
 
 
 
Personnel
136,425

 
133,562

Business promotion
6,717

 
5,696

Professional fees and services
12,379

 
11,759

Net occupancy and equipment
21,624

 
18,766

Insurance
6,404

 
7,265

Data processing and communications
33,940

 
32,017

Printing, postage and supplies
3,851

 
3,907

Net losses and operating expenses of repossessed assets
1,009

 
1,070

Amortization of intangible assets
1,802

 
1,159

Mortgage banking costs
13,003

 
12,330

Other expense
7,557

 
15,039

Total other operating expense
244,711

 
242,570

 
 
 
 
Net income before taxes
126,767

 
62,416

Federal and state income taxes
38,103

 
21,428

 
 
 
 
Net income
88,664

 
40,988

Net income (loss) attributable to non-controlling interests
308

 
(1,576
)
Net income attributable to BOK Financial Corporation shareholders
$
88,356

 
$
42,564

 
 
 
 
Average shares outstanding:
 
 
 
Basic
64,639,437

 
65,296,541

Diluted
64,707,210

 
65,331,428

 
 
 
 
Net income per share:
 
 
 
Basic
$
1.35

 
$
0.64

Diluted
$
1.35

 
$
0.64


11


FINANCIAL HIGHLIGHTS -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands, except ratio and share data)
 
Three Months Ended
 
March 31, 2017
 
Dec. 31, 2016
 
Sept. 30, 2016
 
June 30, 2016
 
March 31, 2016
Capital:
 
 
 
 
 
 
 
 
 
Period-end shareholders' equity
$
3,341,744

 
$
3,274,854

 
$
3,398,311

 
$
3,368,833

 
$
3,321,555

Risk weighted assets
$
24,882,046

 
$
25,274,848

 
$
24,358,385

 
$
24,191,016

 
$
23,707,824

Risk-based capital ratios:
 
 
 
 
 
 
 
 
 
Common equity tier 1
11.60
%
 
11.21
%
 
11.99
%
 
11.86
%
 
12.00
%
Tier 1
11.60
%
 
11.21
%
 
11.99
%
 
11.86
%
 
12.00
%
Total capital
13.26
%
 
12.81
%
 
13.65
%
 
13.51
%
 
13.21
%
Leverage ratio
8.89
%
 
8.72
%
 
9.06
%
 
9.06
%
 
9.12
%
Tangible common equity ratio1
8.88
%
 
8.61
%
 
9.19
%
 
9.33
%
 
9.34
%
 
 
 
 
 
 
 
 
 
 
Common stock:
 
 
 
 
 
 
 
 
 
Book value per share
$
51.09

 
$
50.12

 
$
51.56

 
$
51.15

 
$
50.21

Tangible book value per share
43.63

 
42.53

 
45.12

 
44.68

 
43.73

Market value per share:
 
 
 
 
 
 
 
 
 
High
$
85.25

 
$
85.00

 
$
70.05

 
$
65.14

 
$
60.16

Low
$
73.44

 
$
67.11

 
$
56.36

 
$
51.00

 
$
43.74

Cash dividends paid
$
28,646

 
$
28,860

 
$
28,181

 
$
28,241

 
$
28,294

Dividend payout ratio
32.42
%
 
57.69
%
 
37.94
%
 
42.92
%
 
66.47
%
Shares outstanding, net
65,408,019

 
65,337,432

 
65,910,454

 
65,866,317

 
66,155,103

Stock buy-back program:
 
 
 
 
 
 
 
 
 
Shares repurchased
—

 
700,000

 
—

 
305,169

 
—

Amount
$
—

 
$
49,021

 
$
—

 
$
17,771

 
$
—

Average price per share
$
—

 
$
70.03

 
$
—

 
$
58.23

 
$
—

 
 
 
 
 
 
 
 
 
 
Performance ratios (quarter annualized):
Return on average assets
1.09
%
 
0.60
%
 
0.91
%
 
0.83
%
 
0.54
%
Return on average equity
10.86
%
 
6.03
%
 
8.80
%
 
8.00
%
 
5.21
%
Net interest margin
2.81
%
 
2.69
%
 
2.64
%
 
2.63
%
 
2.65
%
Efficiency ratio
65.77
%
 
72.93
%
 
68.88
%
 
68.16
%
 
68.84
%
 
 
 
 
 
 
 
 
 
 
Reconciliation of non-GAAP measures:
1      Tangible common equity ratio:
 
 
 
 
 
 
 
 
 
Total shareholders' equity
$
3,341,744

 
$
3,274,854

 
$
3,398,311

 
$
3,368,833

 
$
3,321,555

Less: Goodwill and intangible assets, net
488,294

 
495,830

 
424,716

 
426,111

 
428,733

Tangible common equity
$
2,853,450

 
$
2,779,024

 
$
2,973,595

 
$
2,942,722

 
$
2,892,822

 
 
 
 
 
 
 
 
 
 
Total assets
$
32,628,932

 
$
32,772,281

 
$
32,779,231

 
$
31,970,450

 
$
31,413,945

Less: Goodwill and intangible assets, net
488,294

 
495,830

 
424,716

 
426,111

 
428,733

Tangible assets
$
32,140,638

 
$
32,276,451

 
$
32,354,515

 
$
31,544,339

 
$
30,985,212

 
 
 
 
 
 
 
 
 
 
Tangible common equity ratio
8.88
%
 
8.61
%
 
9.19
%
 
9.33
%
 
9.34
%
 
 
 
 
 
 
 
 
 
 

12


FINANCIAL HIGHLIGHTS -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands, except ratio and share data)
 
Three Months Ended
 
March 31, 2017
 
Dec. 31, 2016
 
Sept. 30, 2016
 
June 30, 2016
 
March 31, 2016
Other data:
 
 
 
 
 
 
 
 
 
Fiduciary assets
$
44,371,510

 
$
41,781,564

 
$
41,222,162

 
$
39,924,734

 
$
39,113,305

Tax equivalent interest
$
4,428

 
$
4,389

 
$
4,455

 
$
4,372

 
$
4,385

Net unrealized gain (loss) on available for sale securities
$
(5,537
)
 
$
(14,899
)
 
$
159,533

 
$
195,385

 
$
155,236

 
 
 
 
 
 
 
 
 
 
Mortgage banking:
 
 
 
 
 
 
 
 
 
Mortgage production revenue
$
8,543

 
$
11,937

 
$
21,958

 
$
19,086

 
$
16,647

 
 
 
 
 
 
 
 
 
 
Mortgage loans funded for sale
$
711,019

 
$
1,189,975

 
$
1,864,583

 
$
1,818,844

 
$
1,244,015

Add: current period-end outstanding commitments
381,732

 
318,359

 
630,804

 
965,631

 
902,986

Less: prior period end outstanding commitments
318,359

 
630,804

 
965,631

 
902,986

 
601,147

Total mortgage production volume
$
774,392

 
$
877,530

 
$
1,529,756

 
$
1,881,489

 
$
1,545,854

 
 
 
 
 
 
 
 
 
 
Mortgage loan refinances to mortgage loans funded for sale
44
%
 
63
%
 
51
%
 
44
%
 
49
%
Gain on sale margin
1.10
%
 
1.36
%
 
1.44
%
 
1.01
%
 
1.08
%
 
 
 
 
 
 
 
 
 
 
Mortgage servicing revenue
$
16,648

 
$
16,477

 
$
16,558

 
$
15,798

 
$
15,453

Average outstanding principal balance of mortgage loans service for others
22,006,295

 
21,924,552

 
21,514,962

 
20,736,525

 
19,986,444

Average mortgage servicing revenue rates
0.31
%
 
0.30
%
 
0.31
%
 
0.31
%
 
0.31
%
 
 
 
 
 
 
 
 
 
 
Gain (loss) on mortgage servicing rights, net of economic hedge:
Gain (loss) on mortgage hedge derivative contracts, net
$
(528
)
 
$
(35,868
)
 
$
2,268

 
$
10,766

 
$
7,138

Gain (loss) on fair value option securities, net
(1,140
)
 
(20,922
)
 
(3,355
)
 
4,279

 
9,443

Gain (loss) on economic hedge of mortgage servicing rights
(1,668
)
 
(56,790
)
 
(1,087
)
 
15,045

 
16,581

Gain (loss) on changes in fair value of mortgage servicing rights
1,856

 
39,751

 
2,327

 
(16,283
)
 
(27,988
)
Gain (loss) on changes in fair value of mortgage servicing rights, net of economic hedges, included in other operating revenue
188

 
(17,039
)
 
1,240

 
(1,238
)
 
(11,407
)
Net interest revenue on fair value option securities2
1,271

 
114

 
861

 
1,348

 
2,033

Total economic benefit (cost) of changes in the fair value of mortgage servicing rights, net of economic hedges
$
1,459

 
$
(16,925
)
 
$
2,101

 
$
110

 
$
(9,374
)
2    Actual interest earned on fair value option securities less internal transfer-priced cost of funds.

13


QUARTERLY EARNINGS TREND -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands, except ratio and per share data)
 
Three Months Ended
 
March 31, 2017
 
Dec. 31, 2016
 
Sept. 30, 2016
 
June 30, 2016
 
March 31, 2016
 
 
 
 
 
 
 
 
 
 
Interest revenue
$
226,390

 
$
215,737

 
$
209,317

 
$
202,267

 
$
201,796

Interest expense
25,208

 
21,539

 
21,471

 
19,655

 
19,224

Net interest revenue
201,182

 
194,198

 
187,846

 
182,612

 
182,572

Provision for credit losses
—

 
—

 
10,000

 
20,000

 
35,000

Net interest revenue after provision for credit losses
201,182

 
194,198

 
177,846

 
162,612

 
147,572

Other operating revenue:
 
 
 
 
 
 
 
 
 
Brokerage and trading revenue
33,623

 
28,500

 
38,006

 
39,530

 
32,341

Transaction card revenue
32,127

 
34,521

 
33,933

 
34,950

 
32,354

Fiduciary and asset management revenue
38,631

 
34,535

 
34,073

 
34,813

 
32,056

Deposit service charges and fees
23,030

 
23,365

 
23,668

 
22,618

 
22,542

Mortgage banking revenue
25,191

 
28,414

 
38,516

 
34,884

 
32,100

Other revenue
11,752

 
12,693

 
13,080

 
13,352

 
11,904

Total fees and commissions
164,354

 
162,028

 
181,276

 
180,147

 
163,297

Other gains (losses), net
3,627

 
(1,279
)
 
2,442

 
1,307

 
1,560

Gain (loss) on derivatives, net
(450
)
 
(35,815
)
 
2,226

 
10,766

 
7,138

Gain (loss) on fair value option securities, net
(1,140
)
 
(20,922
)
 
(3,355
)
 
4,279

 
9,443

Change in fair value of mortgage servicing rights
1,856

 
39,751

 
2,327

 
(16,283
)
 
(27,988
)
Gain (loss) on available for sale securities, net
2,049

 
(9
)
 
2,394

 
5,326

 
3,964

Total other operating revenue
170,296

 
143,754

 
187,310

 
185,542

 
157,414

Other operating expense:
 
 
 
 
 
 
 
 
 
Personnel
136,425

 
141,132

 
139,212

 
139,213

 
133,562

Business promotion
6,717

 
7,344

 
6,839

 
6,703

 
5,696

Charitable contributions to BOKF Foundation
—

 
2,000

 
—

 
—

 
—

Professional fees and services
12,379

 
16,828

 
14,038

 
14,158

 
11,759

Net occupancy and equipment
21,624

 
21,470

 
20,111

 
19,677

 
18,766

Insurance
6,404

 
8,705

 
9,390

 
7,129

 
7,265

Data processing and communications
33,940

 
33,691

 
33,331

 
32,802

 
32,017

Printing, postage and supplies
3,851

 
3,998

 
3,790

 
3,889

 
3,907

Net losses (gains) and operating expenses of repossessed assets
1,009

 
1,627

 
(926
)
 
1,588

 
1,070

Amortization of intangible assets
1,802

 
1,558

 
1,521

 
2,624

 
1,159

Mortgage banking costs
13,003

 
17,348

 
15,963

 
15,746

 
12,330

Other expense
7,557

 
9,846

 
14,819

 
7,856

 
15,039

Total other operating expense
244,711

 
265,547

 
258,088

 
251,385

 
242,570

Net income before taxes
126,767

 
72,405

 
107,068

 
96,769

 
62,416

Federal and state income taxes
38,103

 
22,496

 
31,956

 
30,497

 
21,428

Net income
88,664

 
49,909

 
75,112

 
66,272

 
40,988

Net income (loss) attributable to non-controlling interests
308

 
(117
)
 
835

 
471

 
(1,576
)
Net income attributable to BOK Financial Corporation shareholders
$
88,356

 
$
50,026

 
$
74,277

 
$
65,801

 
$
42,564

 
 
 
 
 
 
 
 
 
 
Average shares outstanding:
 
 
 
 
 
 
 
 
 
Basic
64,639,437

 
64,719,018

 
65,085,392

 
65,245,887

 
65,296,541

Diluted
64,707,210

 
64,787,728

 
65,157,841

 
65,302,926

 
65,331,428

Net income per share:
 
 
 
 
 
 
 
 
 
Basic
$
1.35

 
$
0.76

 
$
1.13

 
$
1.00

 
$
0.64

Diluted
$
1.35

 
$
0.76

 
$
1.13

 
$
1.00

 
$
0.64


14


LOANS TREND -- UNAUDITED
BOK FINANCIAL CORPORATION
(In thousands)
 
 
March 31, 2017
 
Dec. 31, 2016
 
Sept. 30, 2016
 
June 30, 2016
 
March 31, 2016
Commercial:
 
 
 
 
 
 
 
 
 
 
Energy
 
$
2,537,112

 
$
2,497,868

 
$
2,520,804

 
$
2,818,656

 
$
3,029,420

Services
 
3,013,375

 
3,108,990

 
2,936,599

 
2,830,864

 
2,728,891

Healthcare
 
2,265,604

 
2,201,916

 
2,085,046

 
2,051,146

 
1,995,425

Wholesale/retail
 
1,506,243

 
1,576,818

 
1,602,030

 
1,532,957

 
1,451,846

Manufacturing
 
543,430

 
514,975

 
499,486

 
595,403

 
600,645

Other commercial and industrial
 
461,346

 
490,257

 
476,198

 
527,411

 
482,198

Total commercial
 
10,327,110

 
10,390,824

 
10,120,163

 
10,356,437

 
10,288,425

 
 
 
 
 
 
 
 
 
 
 
Commercial real estate:
 
 

 
 

 
 

 
 

 
 

Retail
 
745,046

 
761,888

 
801,377

 
795,419

 
810,522

Multifamily
 
922,991

 
903,272

 
873,773

 
787,200

 
733,689

Office
 
860,889

 
798,888

 
752,705

 
769,112

 
695,552

Industrial
 
871,463

 
871,749

 
838,021

 
645,586

 
564,467

Residential construction and land development
 
135,994

 
135,533

 
159,946

 
157,576

 
171,949

Other commercial real estate
 
334,680

 
337,716

 
367,776

 
427,073

 
394,328

Total commercial real estate
 
3,871,063

 
3,809,046

 
3,793,598

 
3,581,966

 
3,370,507

 
 
 
 
 
 
 
 
 
 
 
Residential mortgage:
 
 

 
 

 
 

 
 

 
 

Permanent mortgage
 
977,743

 
1,006,820

 
969,558

 
969,007

 
948,405

Permanent mortgages guaranteed by U.S. government agencies
 
204,181

 
199,387

 
190,309

 
192,732

 
197,350

Home equity
 
764,350

 
743,625

 
712,926

 
719,184

 
723,554

Total residential mortgage
 
1,946,274

 
1,949,832

 
1,872,793

 
1,880,923

 
1,869,309

 
 
 
 
 
 
 
 
 
 
 
Personal
 
847,459

 
839,958

 
678,232

 
587,423

 
494,325

 
 
 
 
 
 
 
 
 
 
 
Total
 
$
16,991,906

 
$
16,989,660

 
$
16,464,786

 
$
16,406,749

 
$
16,022,566



15


LOANS BY PRINCIPAL MARKET AREA -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands)
 
March 31, 2017
 
Dec. 31, 2016
 
Sept. 30, 2016
 
June 30, 2016
 
March 31, 2016
 
 
 
 
 
 
 
 
 
 
Bank of Oklahoma:
 
 
 
 
 
 
 
 
 
Commercial
$
3,189,183

 
$
3,370,259

 
$
3,545,924

 
$
3,698,215

 
$
3,656,034

Commercial real estate
691,332

 
684,381

 
795,806

 
781,458

 
747,689

Residential mortgage
1,404,054

 
1,407,197

 
1,401,166

 
1,415,766

 
1,411,409

Personal
310,708

 
303,823

 
271,420

 
246,229

 
204,158

Total Bank of Oklahoma
5,595,277

 
5,765,660

 
6,014,316

 
6,141,668

 
6,019,290

 
 
 
 
 
 
 
 
 
 
Bank of Texas:
 
 
 
 
 
 
 
 
 
Commercial
4,148,316

 
4,022,455

 
3,903,218

 
3,901,632

 
3,936,809

Commercial real estate
1,452,988

 
1,415,011

 
1,400,709

 
1,311,408

 
1,211,978

Residential mortgage
231,647

 
233,981

 
229,345

 
222,548

 
217,539

Personal
312,092

 
306,748

 
278,167

 
233,304

 
210,456

Total Bank of Texas
6,145,043

 
5,978,195

 
5,811,439

 
5,668,892

 
5,576,782

 
 
 
 
 
 
 
 
 
 
Bank of Albuquerque:
 
 
 
 
 
 
 
 
 
Commercial
407,403

 
399,256

 
398,147

 
398,427

 
402,082

Commercial real estate
307,927

 
284,603

 
299,785

 
322,956

 
323,059

Residential mortgage
106,432

 
108,058

 
110,478

 
114,226

 
117,655

Personal
11,305

 
11,483

 
11,333

 
10,569

 
10,823

Total Bank of Albuquerque
833,067

 
803,400

 
819,743

 
846,178

 
853,619

 
 
 
 
 
 
 
 
 
 
Bank of Arkansas:
 
 
 
 
 
 
 
 
 
Commercial
88,010

 
86,577

 
83,544

 
81,227

 
79,808

Commercial real estate
74,469

 
73,616

 
72,649

 
69,235

 
66,674

Residential mortgage
6,829

 
7,015

 
6,936

 
6,874

 
7,212

Personal
6,279

 
6,524

 
6,757

 
7,025

 
918

Total Bank of Arkansas
175,587

 
173,732

 
169,886

 
164,361

 
154,612

 
 
 
 
 
 
 
 
 
 
Colorado State Bank & Trust:
 
 
 
 
 
 
 
 
 
Commercial
998,216

 
1,018,208

 
1,013,314

 
1,076,620

 
1,030,348

Commercial real estate
266,218

 
265,264

 
254,078

 
237,569

 
219,078

Residential mortgage
62,313

 
59,631

 
59,838

 
59,425

 
52,961

Personal
49,523

 
50,372

 
42,901

 
35,064

 
24,497

Total Colorado State Bank & Trust
1,376,270

 
1,393,475

 
1,370,131

 
1,408,678

 
1,326,884

 
 
 
 
 
 
 
 
 
 
Bank of Arizona:
 
 
 
 
 
 
 
 
 
Commercial
643,222

 
686,253

 
680,447

 
670,814

 
656,527

Commercial real estate
737,088

 
747,409

 
726,542

 
639,112

 
605,383

Residential mortgage
36,737

 
36,265

 
39,206

 
38,998

 
40,338

Personal
51,386

 
52,553

 
31,205

 
24,248

 
18,372

Total Bank of Arizona
1,468,433

 
1,522,480

 
1,477,400

 
1,373,172

 
1,320,620

 
 
 
 
 
 
 
 
 
 
Mobank:
 
 
 
 
 
 
 
 
 
Commercial
852,760

 
807,816

 
495,569

 
529,502

 
526,817

Commercial real estate
341,041

 
338,762

 
244,029

 
220,228

 
196,646

Residential mortgage
98,262

 
97,685

 
25,824

 
23,086

 
22,195

Personal
106,166

 
108,455

 
36,449

 
30,984

 
25,101

Total Mobank
1,398,229

 
1,352,718

 
801,871

 
803,800

 
770,759

 
 
 
 
 
 
 
 
 
 
TOTAL BOK FINANCIAL
$
16,991,906

 
$
16,989,660

 
$
16,464,786

 
$
16,406,749

 
$
16,022,566


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, 2017
 
Dec. 31, 2016
 
Sept. 30, 2016
 
June 30, 2016
 
March 31, 2016
Bank of Oklahoma:
 
 
 
 
 
 
 
 
 
    Demand
$
4,320,666

 
$
3,993,170

 
$
4,158,273

 
$
4,020,181

 
$
3,813,128

    Interest-bearing:
 
 
 
 
 
 
 
 
 
       Transaction
6,114,288

 
6,345,536

 
5,701,983

 
5,741,302

 
5,706,067

       Savings
265,014

 
241,696

 
242,959

 
247,984

 
246,122

       Time
1,189,144

 
1,118,355

 
1,091,464

 
1,167,271

 
1,198,022

    Total interest-bearing
7,568,446

 
7,705,587

 
7,036,406

 
7,156,557

 
7,150,211

Total Bank of Oklahoma
11,889,112

 
11,698,757

 
11,194,679

 
11,176,738

 
10,963,339

 
 
 
 
 
 
 
 
 
 
Bank of Texas:
 
 
 
 
 
 
 
 
 
    Demand
3,091,258

 
3,137,009

 
2,734,981

 
2,677,253

 
2,571,883

    Interest-bearing:
 
 
 
 
 
 
 
 
 
       Transaction
2,317,576

 
2,388,812

 
2,240,040

 
2,035,634

 
2,106,905

       Savings
89,640

 
83,101

 
84,642

 
83,862

 
83,263

       Time
511,037

 
535,642

 
528,380

 
516,231

 
530,657

    Total interest-bearing
2,918,253

 
3,007,555

 
2,853,062

 
2,635,727

 
2,720,825

Total Bank of Texas
6,009,511

 
6,144,564

 
5,588,043

 
5,312,980

 
5,292,708

 
 
 
 
 
 
 
 
 
 
Bank of Albuquerque:
 
 
 
 
 
 
 
 
 
    Demand
593,117

 
627,979

 
584,681

 
530,853

 
557,200

    Interest-bearing:
 
 
 
 
 
 
 
 
 
       Transaction
623,677

 
590,571

 
555,326

 
573,690

 
560,684

       Savings
53,683

 
49,963

 
54,480

 
49,200

 
47,187

       Time
233,506

 
238,408

 
244,706

 
250,068

 
259,630

    Total interest-bearing
910,866

 
878,942

 
854,512

 
872,958

 
867,501

Total Bank of Albuquerque
1,503,983

 
1,506,921

 
1,439,193

 
1,403,811

 
1,424,701

 
 
 
 
 
 
 
 
 
 
Bank of Arkansas:
 
 
 
 
 
 
 
 
 
    Demand
42,622

 
26,389

 
32,203

 
30,607

 
31,318

    Interest-bearing:
 
 
 
 
 
 
 
 
 
       Transaction
106,804

 
105,232

 
313,480

 
278,335

 
265,803

       Savings
2,304

 
2,192

 
2,051

 
1,853

 
1,929

       Time
15,067

 
16,696

 
17,534

 
18,911

 
21,035

    Total interest-bearing
124,175

 
124,120

 
333,065

 
299,099

 
288,767

Total Bank of Arkansas
166,797

 
150,509

 
365,268

 
329,706

 
320,085

 
 
 
 
 
 
 
 
 
 
Colorado State Bank & Trust:
 
 
 
 
 
 
 
 
 
    Demand
601,778

 
576,000

 
517,063

 
528,124

 
413,506

    Interest-bearing:
 
 
 
 
 
 
 
 
 
       Transaction
610,510

 
616,679

 
623,055

 
625,240

 
610,077

       Savings
37,801

 
32,866

 
31,613

 
31,509

 
33,108

       Time
234,740

 
242,782

 
247,667

 
254,164

 
271,475

    Total interest-bearing
883,051

 
892,327

 
902,335

 
910,913

 
914,660

Total Colorado State Bank & Trust
1,484,829

 
1,468,327

 
1,419,398

 
1,439,037

 
1,328,166

 
 
 
 
 
 
 
 
 
 

17


DEPOSITS BY PRINCIPAL MARKET AREA -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands)
 
March 31, 2017
 
Dec. 31, 2016
 
Sept. 30, 2016
 
June 30, 2016
 
March 31, 2016
Bank of Arizona:
 
 
 
 
 
 
 
 
 
    Demand
342,854

 
366,755

 
418,718

 
396,837

 
341,828

    Interest-bearing:
 
 
 
 
 
 
 
 
 
       Transaction
180,254

 
305,099

 
303,750

 
302,297

 
313,825

       Savings
3,858

 
2,973

 
2,959

 
3,198

 
3,277

       Time
26,112

 
27,765

 
27,935

 
28,681

 
29,053

    Total interest-bearing
210,224

 
335,837

 
334,644

 
334,176

 
346,155

Total Bank of Arizona
553,078

 
702,592

 
753,362

 
731,013

 
687,983

 
 
 
 
 
 
 
 
 
 
Mobank:
 
 
 
 
 
 
 
 
 
    Demand
514,278

 
508,418

 
235,445

 
240,755

 
221,812

    Interest-bearing:
 
 
 
 
 
 
 
 
 
       Transaction
406,105

 
513,176

 
86,526

 
112,371

 
146,405

       Savings
13,424

 
12,679

 
1,645

 
1,656

 
1,619

       Time
34,242

 
42,152

 
11,945

 
11,735

 
31,502

    Total interest-bearing
453,771

 
568,007

 
100,116

 
125,762

 
179,526

Total Mobank
968,049

 
1,076,425

 
335,561

 
366,517

 
401,338

 
 
 
 
 
 
 
 
 
 
TOTAL BOK FINANCIAL
$
22,575,359

 
$
22,748,095

 
$
21,095,504

 
$
20,759,802

 
$
20,418,320


18


ce Call
NET INTEREST MARGIN TREND -- UNAUDITED
BOK FINANCIAL CORPORATION
 
Three Months Ended
 
March 31, 2017
 
Dec. 31, 2016
 
Sept. 30, 2016
 
June 30, 2016
 
March 31, 2016
 
 
 
 
 
 
 
 
 
 
TAX-EQUIVALENT ASSETS YIELDS
 
 
 
 
 
 
 
 
 
Interest-bearing cash and cash equivalents
0.82
%
 
0.55
%
 
0.51
%
 
0.51
%
 
0.53
%
Trading securities
3.87
%
 
3.91
%
 
2.71
%
 
1.89
%
 
2.47
%
Investment securities:
 
 
 
 
 
 
 
 
 
    Taxable
5.44
%
 
5.39
%
 
5.34
%
 
5.41
%
 
5.53
%
    Tax-exempt
2.45
%
 
2.33
%
 
2.26
%
 
2.25
%
 
2.22
%
Total investment securities
3.70
%
 
3.60
%
 
3.51
%
 
3.52
%
 
3.51
%
Available for sale securities:
 
 
 
 
 
 
 
 
 
    Taxable
2.02
%
 
1.98
%
 
1.99
%
 
2.01
%
 
2.06
%
    Tax-exempt
5.37
%
 
5.27
%
 
5.47
%
 
5.06
%
 
4.95
%
Total available for sale securities
2.05
%
 
2.00
%
 
2.01
%
 
2.04
%
 
2.08
%
Fair value option securities
2.27
%
 
0.99
%
 
1.70
%
 
2.19
%
 
2.38
%
Restricted equity securities
5.52
%
 
5.45
%
 
5.37
%
 
4.84
%
 
5.85
%
Residential mortgage loans held for sale
3.35
%
 
3.31
%
 
3.28
%
 
3.53
%
 
3.75
%
Loans
3.88
%
 
3.67
%
 
3.63
%
 
3.58
%
 
3.57
%
Allowance for loan losses
 
 
 
 
 
 
 
 
 
Loans, net of allowance
3.94
%
 
3.72
%
 
3.69
%
 
3.63
%
 
3.63
%
Total tax-equivalent yield on earning assets
3.15
%
 
2.98
%
 
2.93
%
 
2.91
%
 
2.92
%
 
 
 
 
 
 
 
 
 
 
COST OF INTEREST-BEARING LIABILITIES
 
 
 
 
 
 
 
 
Interest-bearing deposits:
 
 
 
 
 
 
 
 
 
  Interest-bearing transaction
0.20
%
 
0.16
%
 
0.14
%
 
0.14
%
 
0.14
%
  Savings
0.08
%
 
0.09
%
 
0.09
%
 
0.10
%
 
0.09
%
  Time
1.09
%
 
1.12
%
 
1.14
%
 
1.16
%
 
1.21
%
Total interest-bearing deposits
0.35
%
 
0.32
%
 
0.32
%
 
0.33
%
 
0.34
%
Funds purchased
0.47
%
 
0.28
%
 
0.19
%
 
0.19
%
 
0.27
%
Repurchase agreements
0.02
%
 
0.02
%
 
0.04
%
 
0.05
%
 
0.05
%
Other borrowings
0.83
%
 
0.61
%
 
0.57
%
 
0.57
%
 
0.56
%
Subordinated debt
5.68
%
 
5.51
%
 
3.84
%
 
1.52
%
 
1.26
%
Total cost of interest-bearing liabilities
0.52
%
 
0.44
%
 
0.44
%
 
0.41
%
 
0.40
%
Tax-equivalent net interest revenue spread
2.63
%
 
2.54
%
 
2.49
%
 
2.50
%
 
2.52
%
Effect of noninterest-bearing funding sources and other
0.18
%
 
0.15
%
 
0.15
%
 
0.13
%
 
0.13
%
Tax-equivalent net interest margin
2.81
%
 
2.69
%
 
2.64
%
 
2.63
%
 
2.65
%

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, 2017
 
Dec. 31, 2016
 
Sept. 30, 2016
 
June 30, 2016
 
March 31, 2016
Nonperforming assets:
 
 
 
 
 
 
 
 
 
Nonaccruing loans:
 
 
 
 
 
 
 
 
 
Commercial
$
156,825

 
$
178,953

 
$
176,464

 
$
181,989

 
$
174,652

Commercial real estate
4,475

 
5,521

 
7,350

 
7,780

 
9,270

Residential mortgage
46,081

 
46,220

 
52,452

 
57,061

 
57,577

Personal
235

 
290

 
686

 
354

 
331

Total nonaccruing loans
207,616

 
230,984

 
236,952

 
247,184

 
241,830

Accruing renegotiated loans guaranteed by U.S. government agencies
83,577

 
81,370

 
80,306

 
78,806

 
77,597

Real estate and other repossessed assets
42,726

 
44,287

 
31,941

 
24,054

 
29,896

Total nonperforming assets
$
333,919

 
$
356,641

 
$
349,199

 
$
350,044

 
$
349,323

Total nonperforming assets excluding those guaranteed by U.S. government agencies
$
240,234

 
$
263,425

 
$
253,461

 
$
251,497

 
$
252,176

 
 
 
 
 
 
 
 
 
 
Nonaccruing loans by loan class:
 
 
 
 
 
 
 
 
 
Commercial:
 
 
 
 
 
 
 
 
 
Energy
$
110,425

 
$
132,499

 
$
142,966

 
$
168,145

 
$
159,553

Services
7,713

 
8,173

 
8,477

 
9,388

 
9,512

Wholesale / retail
11,090

 
11,407

 
2,453

 
2,772

 
3,685

Manufacturing
5,907

 
4,931

 
274

 
293

 
312

Healthcare
909

 
825

 
855

 
875

 
1,023

Other commercial and industrial
20,781

 
21,118

 
21,439

 
516

 
567

Total commercial
156,825

 
178,953

 
176,464

 
181,989

 
174,652

Commercial real estate:
 
 
 
 
 
 
 
 
 
Residential construction and land development
2,616

 
3,433

 
3,739

 
4,261

 
4,789

Retail
314

 
326

 
1,249

 
1,265

 
1,302

Office
413

 
426

 
882

 
606

 
629

Multifamily
24

 
38

 
51

 
65

 
250

Industrial
76

 
76

 
76

 
76

 
76

Other commercial real estate
1,032

 
1,222

 
1,353

 
1,507

 
2,224

Total commercial real estate
4,475

 
5,521

 
7,350

 
7,780

 
9,270

Residential mortgage:
 
 
 
 
 
 
 
 
 
Permanent mortgage
24,188

 
22,855

 
25,956

 
27,228

 
27,497

Permanent mortgage guaranteed by U.S. government agencies
10,108

 
11,846

 
15,432

 
19,741

 
19,550

Home equity
11,785

 
11,519

 
11,064

 
10,092

 
10,530

Total residential mortgage
46,081

 
46,220

 
52,452

 
57,061

 
57,577

Personal
235

 
290

 
686

 
354

 
331

Total nonaccruing loans
$
207,616

 
$
230,984

 
$
236,952

 
$
247,184

 
$
241,830

 
 
 
 
 
 
 
 
 
 

20


CREDIT QUALITY INDICATORS -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands, except ratios)
 
Three Months Ended
 
March 31, 2017
 
Dec. 31, 2016
 
Sept. 30, 2016
 
June 30, 2016
 
March 31, 2016
 
 
 
 
 
 
 
 
 
 
Performing loans 90 days past due1
$
95

 
$
5

 
$
3,839

 
$
2,899

 
$
8,019

 
 
 
 
 
 
 
 
 
 
Gross charge-offs
$
(2,153
)
 
$
(1,651
)
 
$
(8,101
)
 
$
(8,845
)
 
$
(23,991
)
Recoveries
2,900

 
2,813

 
2,038

 
1,386

 
1,519

Net recoveries (charge-offs)
$
747

 
$
1,162

 
$
(6,063
)
 
$
(7,459
)
 
$
(22,472
)
 
 
 
 
 
 
 
 
 
 
Provision for credit losses
$
—

 
$
—

 
$
10,000

 
$
20,000

 
$
35,000

 
 
 
 
 
 
 
 
 
 
Allowance for loan losses to period end loans
1.46
 %
 
1.45
 %
 
1.49
%
 
1.48
%
 
1.46
%
Combined allowance for credit losses to period end loans
1.52
 %
 
1.52
 %
 
1.56
%
 
1.54
%
 
1.50
%
Nonperforming assets to period end loans and repossessed assets
1.96
 %
 
2.09
 %
 
2.12
%
 
2.13
%
 
2.18
%
Net charge-offs (annualized) to average loans
(0.02
)%
 
(0.03
)%
 
0.15
%
 
0.18
%
 
0.56
%
Allowance for loan losses to nonaccruing loans1
125.92
 %
 
112.33
 %
 
110.65
%
 
106.95
%
 
104.89
%
Combined allowance for credit losses to nonaccruing loans1
130.70
 %
 
117.46
 %
 
115.67
%
 
110.93
%
 
107.87
%
1 
Excludes residential mortgage loans guaranteed by agencies of the U.S. government.


21