-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Qk8ueU6BffDA4Nqb6xsuAZyJDwtNmlQDkiXFZRDLbpx8x+83ibkJ0Iui5DtTfL54 Wem+hlL0TrcJHp970mflvQ== 0001169232-06-002008.txt : 20060421 0001169232-06-002008.hdr.sgml : 20060421 20060420215857 ACCESSION NUMBER: 0001169232-06-002008 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20060418 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20060421 DATE AS OF CHANGE: 20060420 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: 06771177 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 form8k033106.txt CURRENT REPORT 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 18, 2006 BOK FINANCIAL CORPORATION (Exact name of registrant as specified in its charter) Oklahoma 000-19341 73-1373454 -------- --------- ---------- (State or other jurisdiction (Commission (IRS Employer of incorporation) File Number) Identification No.) Bank of Oklahoma Tower, Boston Avenue at Second Street, Tulsa, Oklahoma 74172 (Address of principal executive offices) Registrant's telephone number, including area code: (918) 588-6000 _____________________N/A___________________________ (Former name or former address, if changes since last report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: |_| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425). |_| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12). |_| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)). |_| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)). INFORMATION TO BE INCLUDED IN THE REPORT ITEM 2.02. Results of Operations and Financial Condition. On April 18, 2006, BOK Financial Corporation ("BOK Financial") issued a press release announcing its financial results for the three months ended March 31, 2006 ("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 March 31, 2006, in connection with issuance of the Press Release, BOK Financial released financial information related to the three months ended March 31, 2006 ("Financial Information"), which includes certain historical financial information relating to BOK Financial. The Financial Information is attached as Exhibit 99(b) to this report and is incorporated herein by reference. ITEM 9.01. Financial Statements and Exhibits. (c) Exhibits 99(a) Text of Press Release, dated April 18, 2006, titled "BOK Financial Reports Record Earnings for First Quarter 2006" 99(b) Financial Information for the Three Months Ended March 31, 2006 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 18, 2006 EX-99.A 2 press033106.txt PRESS RELEASE BOK FINANCIAL REPORTS RECORD EARNINGS FOR FIRST QUARTER 2006 TULSA, Okla. (Tuesday, April 18, 2006) - BOK Financial Corporation (Nasdaq: BOKF) reported net income of $54.7 million for the first quarter of 2006, up 5% over the first quarter of 2005's earnings of $52.1 million. Earnings per diluted share were $0.81 in the first quarter of 2006 compared with $0.78 in the first quarter of 2005. Returns on average equity were 14.35% for the first quarter of 2006 compared with 14.96% for the same period last year. Net interest revenue and fees and commissions revenue along with appreciation of mortgage servicing rights combined to increase net income. Credit quality remains strong. "We are pleased with the positive start to 2006," said President and CEO Stan Lybarger. "We have experienced two consecutive quarters of modest net interest margin expansion and double-digit growth in fee revenue over the same quarter last year." Net Interest Revenue Tax-equivalent net interest revenue for the first quarter of 2006 totaled $118.8 million, up $10.0 million or 9% over the first quarter of 2005. Increased average earning assets and improved funding mix provided the growth. Average earning assets increased $1.5 billion, or 11%, including a $1.2 billion increase in average loan balances. Average deposits increased $1.5 billion, or 15%. Deposits comprised 69% of total funding sources in the first quarter of 2006 compared with 66% for the first quarter of 2005. Net interest margin was 3.39% for the first quarter of 2006, compared with 3.34% for the preceding quarter and 3.46% for the first quarter of 2005. Improvement in the mix of funding sources increased the net interest margin over the fourth quarter of 2005 by 4 basis points. Asset spread compression decreased net interest margin from the first quarter of 2005. Fees and Commissions Revenue Fees and commissions revenue totaled $90.0 million, an $11.0 million, or 14% increase over the first quarter of 2005. Transaction card revenue grew $2.0 million, or 12% due to an increased volume of debit card transactions and merchant discount fees. Trust revenue increased $1.9 million, or 12%. Personal trust fees and oil & gas property management fees provided much of the growth in trust revenue. Overdraft charges continued to increase deposit fees, partially offset by earnings credits available to commercial customers. Other operating revenue included $2.5 million of fees earned on margin assets for the first quarter of 2006, compared with $570 thousand for the same period last year and $2.6 million for the preceding quarter. Average margin assets were $249 million for the first quarter of 2006, $129 million for the first quarter of 2005 and $299 million for the fourth quarter of 2005. Margin assets reflect changes in the value of derivative contracts used primarily in the customer hedging program. Mortgage Servicing Rights Mortgage servicing rights appreciated $7.1 million during the first quarter of 2006 due to rising interest rates and a slow-down in housing turnover. Average mortgage commitment rates increased 28 basis points to 6.25% since the end of 2005. The increase in mortgage commitment rates resulted in a 20% decrease in the estimated prepayment speed for loans serviced by the Company. A change in accounting standards which became effective this quarter was adopted by the Company effective January 1. The new standard, which allows mortgage servicing rights to now be carried at fair value, permitted the Company to recognize all of this appreciation. At the same time, rising interest rates resulted in recognized losses of $1.9 million on securities held as economic hedges against changes in the value of the servicing rights. As permitted by the new accounting standard, the Company designated a portion of its securities portfolio as "mortgage trading securities". These securities are carried at fair value. The Company will now recognize in earnings changes in the fair value of these securities. Appreciation of mortgage servicing rights, net of recognized losses on economic hedges increased net income $3.3 million in the first quarter of 2006 compared with $2.3 million in the first quarter of 2005. Operating Expenses Operating expenses increased $15.2 million or 15% over the first quarter of last year. Personnel costs comprised $12.8 million of the increase, due largely to a $6.4 million increase in incentive compensation and $5.5 million, or 14% increase in salaries and wages. Growth in incentive compensation resulted from compensation plans linked to the Company's earnings per share growth. Average salaries and wages per employee increased 8% over last year, and the average number of employees increased 6%. Loans and Deposits Outstanding loans totaled $9.2 billion at March 31, 2006, up $62 million since December 31, 2005. Commercial loans declined $61 million due largely to loan payoffs in the energy and services sectors of the portfolio. Commercial real estate loans increased $115 million during the quarter. Loans to residential homebuilders increased $43 million. Texas markets provided $99 million of loan growth during the first quarter, while outstanding loan balances in the New Mexico and Oklahoma markets declined $36 million and $15 million, respectively. Deposits totaled $11.3 billion at March 31, 2006, down $67 million from peak levels at the previous year-end. Deposits increased an exceptionally strong $976 million during the fourth quarter of 2005. Demand deposits decreased $81 million during the quarter, while time deposits increased $122 million. Deposits in the New Mexico and Colorado markets increased $87 million and $38 million, respectively. Deposits in the Texas markets decreased $153 million due principally to customer investment and acquisition activities. Interest-bearing transaction accounts decreased $80 million while demand deposits decreased $64 million since December 31, 2005. Credit Quality Credit quality remained strong in the first quarter of 2006. Net loans charged-off totaled $1.6 million, compared with $7.4 million in the previous quarter and $3.2 million in the first quarter of 2005. Non-performing loans continue to be near historic lows. At March 31, 2006, non-performing loans totaled $32 million, up from $25 million at December 31, 2005. At March 31, 2006, the allowance for loan losses was $104 million, 1.14% of outstanding loans and 323% of non-performing loans. The combined allowance for loan losses and reserve for off-balance sheet credit losses totaled $126 million, 1.38% of outstanding loans and 392% of non-performing loans. The combined allowance for loan losses and off-balance sheet credit losses was $124 million at December 31, 2005, 1.37% of outstanding loans and 495% of non-performing loans. The provision for credit losses for the first quarter of 2006 was $3.4 million compared with $4.5 million for the fourth quarter of 2005 and $2.0 million for the first quarter of 2005. Capital Management The Company repurchased 61,408 shares of its common stock at an average price of $44.93 per share during the first quarter of 2006. These shares were purchased under the share repurchase program. A dividend of $6.7 million, or $0.10 per common share was paid during the first quarter of 2006. About BOK Financial Corporation BOK Financial is a regional financial services company that provides commercial and consumer banking, investment and trust services, mortgage origination and servicing, and an electronic funds transfer network. Holdings include Bank of Albuquerque, N.A., Bank of Arizona, N.A., Bank of Arkansas, N.A., Bank of Oklahoma, N.A., Bank of Texas, N.A., Colorado State Bank & Trust, N.A., BOSC,Inc. and the TransFund electronic funds network. Shares of BOK Financial are traded on the NASDAQ under the symbol BOKF. For more information, visit our website at www.bokf.com. Forward-looking Information This news release contains forward-looking statements that are based on management's beliefs, assumptions, current expectations, estimates and projections about BOK Financial, the financial services industry and the economy generally. Words such as "anticipates," "believes," "estimates," "expects," "forecasts," "plans," "projects," variations of such words and similar expressions are intended to identify such forward-looking statements. Management judgments relating to and discussion of the provision and allowance for credit losses involve judgments as to future events and are inherently forward-looking statements. Assessments that BOK Financial's acquisitions and other growth endeavors will be profitable are necessary statements of belief as to the outcome of future events based in part on information provided by others which BOK Financial has not independently verified. These statements are not guarantees of future performance and involve certain risks, uncertainties, and assumptions which are difficult to predict with regard to timing, extent, likelihood and degree of occurrence. Therefore, actual results and outcomes may materially differ from what is expected, implied or forecasted in such forward-looking statements. Internal and external factors that might cause such a difference include, but are not limited to (1) the ability to fully realize expected cost savings from mergers within the expected time frames, (2) the ability of other companies on which BOK Financial relies to provide goods and services in a timely and accurate manner, (3) changes in interest rates and interest rate relationships, (4) demand for products and services, (5) the degree of competition by traditional and nontraditional competitors, (6) changes in banking regulations, tax laws, prices, levies and assessments, (7) the impact of technological advances and (8) trends in consumer behavior as well as their ability to repay loans. BOK Financial and its affiliates undertake no obligation to update, amend or clarify forward-looking statements, whether as a result of new information, future events, or otherwise. EX-99.B 3 fs033106.txt FINANCIAL INFORMATION BALANCE SHEETS BOK FINANCIAL CORPORATION (In thousands) Period Ended --------------------------------------------------- March 31, December 31, March 31, 2006 2005 2005 -------------- --------------- ------------- (Unaudited) (Unaudited) ASSETS Cash and due from banks $ 610,563 $ 684,857 $ 505,412 Trading securities 26,055 18,633 13,381 Funds sold and resell agreements 25,720 14,465 14,861 Securities: Available for sale 4,771,401 4,821,575 4,579,980 Investment 237,224 245,125 224,425 Mortgage trading securities 64,704 - - -------------- --------------- ------------- Total securities 5,073,329 5,066,700 4,804,405 Loans: Commercial 5,238,821 5,299,935 4,590,846 Commercial real estate 2,104,960 1,989,902 1,717,785 Residential mortgage 1,177,337 1,169,331 1,215,022 Residential mortgage held for sale 40,299 51,666 44,429 Consumer 640,542 629,144 517,884 -------------- --------------- ------------- Total loans 9,201,959 9,139,978 8,085,966 Less reserve for loan losses (104,143) (103,876) (108,958) -------------- --------------- ------------- Loans, net of reserve 9,097,816 9,036,102 7,977,008 Premises and equipment, net 177,959 179,627 172,118 Accrued revenue receivable 102,759 99,874 78,577 Intangible assets, net 261,652 263,022 241,057 Mortgage servicing rights, net 68,608 54,097 50,105 Real estate and other repossessed assets 8,196 8,476 3,187 Receivable on unsettled securities trades - - 50,115 Bankers' acceptances 35,315 33,001 23,513 Derivative contracts 401,444 452,878 341,269 Other assets 411,353 341,175 336,080 -------------- --------------- ------------- TOTAL ASSETS $ 16,300,769 $ 16,252,907 $ 14,611,088 ============== =============== ============= LIABILITIES AND SHAREHOLDERS' EQUITY Deposits: Demand $ 1,784,587 $ 1,865,948 $ 1,940,789 Interest-bearing transaction 5,144,120 5,257,295 3,905,998 Savings 159,471 154,015 166,323 Time 4,220,068 4,098,060 3,721,430 -------------- --------------- ------------- Total deposits 11,308,246 11,375,318 9,734,540 Funds purchased and repurchase agreements 1,622,185 1,337,911 1,881,559 Other borrowings 833,114 1,054,298 873,217 Subordinated debentures 294,130 295,964 149,117 Accrued interest, taxes, and expense 92,495 18,057 76,904 Bankers' acceptances 35,315 33,001 23,513 Due on unsettled securities trades 2,142 8,429 - Derivative contracts 419,776 466,669 356,579 Other liabilities 127,931 124,106 100,455 -------------- --------------- ------------- TOTAL LIABILITIES 14,735,334 14,713,753 13,195,884 Shareholders' equity: Capital, surplus and retained earnings 1,659,716 1,606,965 1,466,193 Accumulated other comprehensive income (loss) (94,281) (67,811) (50,989) -------------- --------------- ------------- TOTAL SHAREHOLDERS' EQUITY 1,565,435 1,539,154 1,415,204 -------------- --------------- ------------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 16,300,769 $ 16,252,907 $ 14,611,088 ============== =============== =============
AVERAGE BALANCE SHEETS - UNAUDITED BOK FINANCIAL CORPORATION (In thousands) Quarter Ended -------------------------------------------------------------------------------------- March 31, December 31, September 30, June 30, March 31, 2006 2005 2005 2005 2005 -------------- --------------- ------------- --------------- ------------- ASSETS Trading securities $ 16,722 $ 20,595 $ 14,560 $ 11,639 $ 17,205 Funds sold and resell agreements 21,181 57,656 44,882 21,170 30,003 Securities: Available for sale 4,887,484 4,815,296 4,794,958 4,825,706 4,624,110 Investment 236,953 244,488 236,837 220,840 221,694 -------------- --------------- ------------- --------------- ------------- Total securities 5,124,437 5,059,784 5,031,795 5,046,546 4,845,804 Loans: Commercial 5,217,467 5,222,316 4,926,685 4,716,278 4,521,492 Commercial real estate 2,096,885 1,960,507 1,917,996 1,871,830 1,691,379 Residential mortgage 1,166,509 1,160,385 1,119,512 1,152,834 1,200,673 Residential mortgage held for sale 45,983 42,756 59,265 47,506 39,990 Consumer 637,863 619,582 612,274 553,042 509,643 -------------- --------------- ------------- --------------- ------------- Total loans 9,164,706 9,005,546 8,635,732 8,341,490 7,963,177 Less allowance for loan losses (105,135) (108,998) (109,840) (111,056) (111,955) -------------- --------------- ------------- --------------- ------------- Total loans, net 9,059,571 8,896,548 8,525,892 8,230,434 7,851,222 -------------- --------------- ------------- --------------- ------------- Total earning assets 14,221,911 14,034,583 13,617,129 13,309,789 12,744,234 Cash and due from banks 584,508 540,776 542,841 552,600 558,472 Other assets 1,463,820 1,590,271 1,427,905 1,198,086 916,149 -------------- --------------- ------------- --------------- ------------- TOTAL ASSETS $ 16,270,239 $ 16,165,630 $ 15,587,875 $ 15,060,475 $ 14,218,855 ============== =============== ============= =============== ============= LIABILITIES AND SHAREHOLDERS' EQUITY Deposits: Demand $ 1,485,398 $ 1,530,504 $ 1,424,102 $ 1,586,248 $ 1,895,989 Interest-bearing transaction 5,327,004 4,821,627 4,533,912 4,323,513 3,920,844 Savings 155,554 154,316 157,772 166,426 159,276 Time 4,162,952 4,216,625 3,958,948 3,710,338 3,685,257 -------------- --------------- ------------- --------------- ------------- Total deposits 11,130,908 10,723,072 10,074,734 9,786,525 9,661,366 Funds purchased and repurchase agreements 1,731,983 1,812,752 2,067,432 2,160,031 1,704,327 Other borrowings 882,878 1,049,635 1,047,423 914,968 971,616 Subordinated debentures 295,792 296,021 297,284 200,038 150,752 Other liabilities 680,897 777,111 613,667 558,655 319,375 -------------- --------------- ------------- --------------- ------------- TOTAL LIABILITIES 14,722,458 14,658,591 14,100,540 13,620,217 12,807,436 Shareholders' equity 1,547,781 1,507,039 1,487,335 1,440,258 1,411,419 -------------- --------------- ------------- --------------- ------------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 16,270,239 $ 16,165,630 $ 15,587,875 $ 15,060,475 $ 14,218,855 ============== =============== ============= =============== =============
STATEMENTS OF EARNINGS - UNAUDITED BOK FINANCIAL CORPORATION (In thousands, except per share data) Quarter Ended --------------------------------- March 31, --------------------------------- 2006 2005 -------------- --------------- Interest revenue $ 223,585 $ 170,304 Interest expense 106,259 62,710 -------------- --------------- Net interest revenue 117,326 107,594 Provision for credit losses 3,400 2,000 -------------- --------------- Net interest revenue after provision for credit losses 113,926 105,594 Other operating revenue Brokerage and trading revenue 12,010 11,336 Transaction card revenue 18,508 16,543 Trust fees and commissions 17,945 16,016 Deposit service charges and fees 23,986 22,173 Mortgage banking revenue 6,789 5,578 Other revenue 10,811 7,397 -------------- --------------- Total fees and commissions 90,049 79,043 Gain on asset sales 918 972 Loss on securities, net (1,221) (2,637) Gain (loss) on derivatives, net (309) 778 -------------- --------------- Total other operating revenue 89,437 78,156 Other operating expense Personnel 71,232 58,439 Business promotion 4,803 4,430 Professional fees and services 3,914 3,619 Net occupancy and equipment 13,026 12,094 Data processing and communications 16,995 15,099 Printing, postage and supplies 3,905 3,615 Net (gains) losses and operating expenses of repossessed assets 219 308 Amortization of intangible assets 1,370 1,537 Mortgage banking costs 3,087 3,613 Change in fair value of mortgage servicing rights (7,081) - Recovery for impairment of mortgage servicing rights - (5,624) Other expense 5,909 5,029 -------------- --------------- Total other operating expense 117,379 102,159 Income before taxes 85,984 81,591 Federal and state income taxes 31,236 29,536 -------------- --------------- Net income $ 54,748 $ 52,055 ============== =============== Average shares outstanding: Basic 66,715,396 59,432,812 Diluted 67,260,659 66,946,765 Earnings per share: Basic $ 0.82 $ 0.87 ============== =============== Diluted $ 0.81 $ 0.78 ============== ===============
FINANCIAL HIGHLIGHTS - UNAUDITED BOK FINANCIAL CORPORATION (In thousands, except ratio and share data) Quarter Ended -------------------------------------------------------------------------------------- March 31, December 31, September 30, June 30, March 31, 2006 2005 2005 2005 2005 -------------- --------------- ------------- --------------- ------------- Capital: Period-end shareholders' equity $ 1,565,435 $ 1,539,154 $ 1,513,542 $ 1,480,975 $ 1,415,204 Risk-based capital ratios: Tier 1 10.16% 9.84% 9.71% 9.85% 10.19% Total capital 12.41% 12.10% 12.04% 12.55% 11.78% Leverage ratio 8.60% 8.30% 8.01% 8.07% 8.36% Common stock: Book value per share $ 23.41 $ 23.07 $ 22.75 $ 22.29 $ 23.54 Market value per share: High $ 47.65 $ 48.53 $ 49.30 $ 46.02 $ 48.97 Low $ 44.40 $ 43.54 $ 45.26 $ 40.09 $ 39.79 Cash dividends paid $ 6,694 $ 6,664 $ 6,656 $ 6,649 $ - Dividend payout ratio 12.23% 13.84% 13.10% 13.18% 0.00% Shares outstanding, net 66,883,037 66,702,408 66,520,927 66,454,330 59,488,037 Stock buy-back program: Shares repurchased 61,408 - - 30,000 29,700 Amount $ 2,759,075 $ - $ - $ 1,250,704 $ 1,188,617 -------------- --------------- ------------- --------------- ------------- Average price per share $ 44.93 $ - $ - $ 41.69 $ 40.02 ============== =============== ============= =============== ============= Performance ratios: Return on average assets 1.36% 1.18% 1.29% 1.34% 1.48% Return on average equity 14.35% 12.68% 13.56% 14.05% 14.96% Net interest margin 3.39% 3.34% 3.32% 3.45% 3.46% Efficiency ratio 59.58% 60.28% 59.36% 59.32% 57.36% Other data: Trust assets $ 29,091,040 $ 28,464,745 $ 27,598,958 $ 25,971,994 $ 25,381,814 Mortgage servicing portfolio $ 4,520,976 $ 4,056,427 $ 4,053,885 $ 4,040,178 $ 3,883,004
* Excludes Series A convertible preferred stock, which was exchanged for 6,920,666 common shares in the second quarter of 2005. Book value per share would have been $21.31 if the conversion was effective on March 31, 2005. QUARTERLY EARNINGS TRENDS - UNAUDITED BOK FINANCIAL CORPORATION (In thousands, except ratio and per share data) Quarter Ended -------------------------------------------------------------------------------------- March 31, December 31, September 30, June 30, March 31, 2006 2005 2005 2005 2005 -------------- --------------- ------------- --------------- ------------- Interest revenue $ 223,585 $ 214,240 $ 199,056 $ 186,334 $ 170,304 Interest expense 106,259 97,854 86,228 73,801 62,710 -------------- --------------- ------------- --------------- ------------- Net interest revenue 117,326 116,386 112,828 112,533 107,594 Provision for credit losses 3,400 4,450 3,976 2,015 2,000 -------------- --------------- ------------- --------------- ------------- Net interest revenue after provision for credit losses 113,926 111,936 108,852 110,518 105,594 Other operating revenue Brokerage and trading revenue 12,010 11,116 11,366 10,404 11,336 Transaction card revenue 18,508 18,988 18,526 17,979 16,543 Trust fees and commissions 17,945 16,536 16,376 16,259 16,016 Deposit service charges and fees 23,986 25,222 25,619 25,347 22,173 Mortgage banking revenue 6,789 7,018 9,535 8,550 5,578 Other revenue 10,811 10,067 9,490 8,160 7,397 -------------- --------------- ------------- --------------- ------------- Total fees and commissions 90,049 88,947 90,912 86,699 79,043 Gain on asset sales 918 71 81 5,937 972 Loss on securities, net (1,221) (1,780) (4,744) 2,266 (2,637) Gain (loss) on derivatives, net (309) 106 606 (311) 778 -------------- --------------- ------------- --------------- ------------- Total other operating revenue 89,437 87,344 86,855 94,591 78,156 Other operating expense Personnel 71,232 68,666 66,533 65,333 58,439 Business promotion 4,803 5,170 4,494 3,870 4,430 Professional fees and services 3,914 4,534 3,951 4,492 3,619 Net occupancy and equipment 13,026 12,864 12,587 12,650 12,094 Data processing and communications 16,995 18,054 17,492 16,381 15,099 Printing, postage and supplies 3,905 3,976 3,846 3,629 3,615 Net (gains) losses and operating expenses of repossessed assets 219 335 (387) 316 308 Amortization of intangible assets 1,370 1,797 1,801 1,808 1,537 Mortgage banking costs 3,087 3,294 4,268 3,387 3,613 Change in fair value of mortgage servicing rights (7,081) - - - - Recovery for impairment of mortgage servicing rights - (708) (4,671) 7,088 (5,624) Other expense 5,909 5,921 7,120 7,056 5,029 -------------- --------------- ------------- --------------- ------------- Total other operating expense 117,379 123,903 117,034 126,010 102,159 Income before taxes 85,984 75,377 78,673 79,099 81,591 Federal and state income taxes 31,236 27,219 27,846 28,634 29,536 -------------- --------------- ------------- --------------- ------------- Net income $ 54,748 $ 48,158 $ 50,827 $ 50,465 $ 52,055 ============== =============== ============= =============== ============= Average shares outstanding: Basic 66,715,396 66,527,093 66,427,447 63,779,343 59,432,812 Diluted 67,260,659 67,146,614 67,105,539 66,986,428 66,946,765 Earnings per share: Basic $ 0.82 $ 0.72 $ 0.77 $ 0.79 $.0.87 Diluted $ 0.81 $ 0.72 $ 0.76 $ 0.75 $.0.78
LOANS BY PRINCIPAL MARKET AREA - UNAUDITED BOK FINANCIAL CORPORATION (In thousands) Quarter Ended -------------------------------------------------------------------------------------- March 31, December 31, September 30, June 30, March 31, 2006 2005 2005 2005 2005 -------------- --------------- ------------- --------------- ------------- Oklahoma: Commercial $ 3,074,406 $ 3,159,683 $ 3,101,209 $ 3,026,311 $ 2,871,566 Commercial real estate 936,030 862,700 890,737 856,617 791,816 Residential mortgage 847,848 842,757 839,344 827,431 936,375 Residential mortgage held for sale 40,299 51,666 46,306 74,410 44,429 Consumer 468,920 466,180 472,899 425,318 389,571 -------------- --------------- ------------- --------------- ------------- Total Oklahoma 5,367,503 5,382,986 5,350,495 5,210,087 5,033,757 Texas: Commercial 1,420,860 1,356,611 1,294,606 1,182,307 1,135,509 Commercial real estate 604,413 569,921 537,576 509,472 477,487 Residential mortgage 200,957 199,726 196,593 196,457 177,919 Consumer 87,669 89,017 89,329 90,245 85,626 -------------- --------------- ------------- --------------- ------------- Total Texas 2,313,899 2,215,275 2,118,104 1,978,481 1,876,541 New Mexico: Commercial 348,930 383,325 354,087 340,378 325,069 Commercial real estate 228,955 232,564 223,236 219,175 218,357 Residential mortgage 68,810 65,784 65,203 63,821 62,015 Consumer 13,820 15,137 15,195 15,813 12,306 -------------- --------------- ------------- --------------- ------------- Total New Mexico 660,515 696,810 657,721 639,187 617,747 Arkansas: Commercial 74,423 79,719 54,703 54,703 51,026 Commercial real estate 80,529 75,483 85,600 76,803 75,024 Residential mortgage 13,069 13,044 12,097 11,674 10,771 Consumer 33,548 25,659 20,397 4,560 3,599 -------------- --------------- ------------- --------------- ------------- Total Arkansas 201,569 193,905 172,797 147,740 140,420 Colorado: Commercial 267,928 270,108 219,208 210,142 207,676 Commercial real estate 134,771 133,537 132,741 125,120 120,844 Residential mortgage 20,383 21,918 26,186 27,292 27,942 Consumer 31,487 27,871 26,126 27,996 26,782 -------------- --------------- ------------- --------------- ------------- Total Colorado 454,569 453,434 404,261 390,550 383,244 Arizona: Commercial 52,274 50,489 43,877 45,938 - Commercial real estate 120,262 115,697 102,734 74,672 34,257 Residential mortgage 26,270 26,102 27,136 24,999 - Consumer 5,098 5,280 6,443 3,026 - -------------- --------------- ------------- --------------- ------------- Total Arizona 203,904 197,568 180,190 148,635 34,257 -------------- --------------- ------------- --------------- ------------- TOTAL BOK FINANCIAL $ 9,201,959 $ 9,139,978 $ 8,883,568 $ 8,514,680 $ 8,085,966 ============== =============== ============= =============== =============
DEPOSITS BY PRINCIPAL MARKET AREA - UNAUDITED BOK FINANCIAL CORPORATION (In thousands) Quarter Ended -------------------------------------------------------------------------------------- March 31, December 31, September 30, June 30, March 31, 2006 2005 2005 2005 2005 -------------- --------------- ------------- --------------- ------------- Oklahoma: Demand $ 950,582 $ 1,003,284 $ 959,169 $ 1,028,640 $ 1,091,132 Interest-bearing: Transaction 2,937,228 3,002,610 2,411,175 2,367,511 2,235,950 Savings 93,093 85,837 86,220 89,972 93,655 Time 2,623,352 2,564,337 2,728,224 2,450,730 2,511,465 -------------- --------------- ------------- --------------- ------------- Total interest-bearing 5,653,673 5,652,784 5,225,619 4,908,213 4,841,070 -------------- --------------- ------------- --------------- ------------- Total Oklahoma $ 6,604,255 $ 6,656,068 $ 6,184,788 $ 5,936,853 $ 5,932,202 -------------- --------------- ------------- --------------- ------------- Texas: Demand $ 551,411 $ 615,732 $ 533,475 $ 478,855 $ 628,043 Interest-bearing: Transaction 1,455,856 1,535,570 1,299,279 1,292,938 1,111,808 Savings 27,827 27,398 29,620 29,635 30,695 Time 726,530 735,731 633,785 606,528 601,397 -------------- --------------- ------------- --------------- ------------- Total interest-bearing 2,210,213 2,298,699 1,962,684 1,929,101 1,743,900 -------------- --------------- ------------- --------------- ------------- Total Texas $ 2,761,624 $ 2,914,431 $ 2,496,159 $ 2,407,956 $ 2,371,943 -------------- --------------- ------------- --------------- ------------- New Mexico: Demand $ 159,125 $ 129,289 $ 155,517 $ 139,107 $ 133,309 Interest-bearing: Transaction 408,160 381,099 338,706 306,230 314,067 Savings 17,805 17,839 17,614 17,875 18,428 Time 483,428 453,314 454,561 449,180 434,131 -------------- --------------- ------------- --------------- ------------- Total interest-bearing 909,393 852,252 810,881 773,285 766,626 -------------- --------------- ------------- --------------- ------------- Total New Mexico $ 1,068,518 $ 981,541 $ 966,398 $ 912,392 $ 899,935 -------------- --------------- ------------- --------------- ------------- Arkansas: Demand $ 11,629 $ 10,429 $ 13,772 $ 10,890 $ 14,922 Interest-bearing: Transaction 26,675 22,354 23,335 24,816 23,555 Savings 1,051 1,058 1,268 1,284 1,405 Time 73,082 75,034 81,510 83,388 88,031 -------------- --------------- ------------- --------------- ------------- Total interest-bearing 100,808 98,446 106,113 109,488 112,991 -------------- --------------- ------------- --------------- ------------- Total Arkansas $ 112,437 $ 108,875 $ 119,885 $ 120,378 $ 127,913 -------------- --------------- ------------- --------------- ------------- Colorado: Demand $ 56,419 $ 61,647 $ 51,978 $ 32,044 $ 73,383 Interest-bearing: Transaction 258,801 258,668 216,718 228,881 220,618 Savings 16,315 17,772 16,568 16,791 22,140 Time 309,068 264,020 221,753 117,130 86,406 -------------- --------------- ------------- --------------- ------------- Total interest-bearing 584,184 540,460 455,039 362,802 329,164 -------------- --------------- ------------- --------------- ------------- Total Colorado $ 640,603 $ 602,107 $ 507,017 $ 394,846 $ 402,547 -------------- --------------- ------------- --------------- ------------- Arizona: Demand $ 55,421 $ 45,567 $ 42,784 $ 60,412 $ - Interest-bearing: Transaction 57,400 56,994 71,510 56,624 - Savings 3,380 4,111 3,862 4,771 - Time 4,608 5,624 6,802 6,574 - -------------- --------------- ------------- --------------- ------------- Total interest-bearing 65,388 66,729 82,174 67,969 - -------------- --------------- ------------- --------------- ------------- Total Arizona $ 120,809 $ 112,296 $ 124,958 $ 128,381 $ - -------------- --------------- ------------- --------------- ------------- TOTAL BOK FINANCIAL $ 11,308,246 $ 11,375,318 $ 10,399,205 $ 9,900,806 $ 9,734,540 ============== =============== ============= =============== =============
NET INTEREST MARGIN TREND - UNAUDITED BOK FINANCIAL CORPORATION Quarter Ended -------------------------------------------------------------------------------------- March 31, December 31, September 30, June 30, March 31, 2006 2005 2005 2005 2005 -------------- --------------- ------------- --------------- ------------- TAX-EQUIVALENT ASSETS YIELDS Trading securities 5.07% 4.68% 4.66% 5.69% 4.50% Funds sold and resell agreements 4.58% 4.00% 3.41% 2.96% 2.22% Securities: Taxable 4.60% 4.44% 4.28% 4.32% 4.32% Tax-exempt 5.36% 5.05% 4.96% 5.23% 5.30% -------------- --------------- ------------- --------------- ------------- Total securities 4.64% 4.47% 4.31% 4.36% 4.36% Total loans 7.35% 6.98% 6.66% 6.40% 6.06% Less Allowance for loan losses - - - - - -------------- --------------- ------------- --------------- ------------- Total loans, net 7.44% 7.06% 6.75% 6.49% 6.15% -------------- --------------- ------------- --------------- ------------- Total tax-equivalent yield on earning assets 6.42% 6.12% 5.83% 5.68% 5.46% COST OF INTEREST-BEARING LIABILITIES Interest-bearing deposits: Interest-bearing transaction 2.37% 1.98% 1.66% 1.49% 1.41% Savings 0.86% 0.75% 0.70% 0.69% 0.63% Time 4.03% 3.77% 3.53% 3.41% 3.27% -------------- --------------- ------------- --------------- ------------- Total interest-bearing deposits 3.06% 2.78% 2.50% 2.34% 2.28% Funds purchased and repurchase agreements 4.33% 3.92% 3.40% 2.93% 2.42% Other borrowings 4.57% 4.08% 3.60% 3.17% 2.79% Subordinated debt 6.83% 6.28% 5.97% 5.98% 5.99% -------------- --------------- ------------- --------------- ------------- Total cost of interest-bearing liabilities 3.43% 3.14% 2.84% 2.58% 2.40% -------------- --------------- ------------- --------------- ------------- Tax-equivalent net interest revenue spread 2.99% 2.98% 2.99% 3.10% 3.06% Effect of noninterest-bearing funding sources and other 0.40% 0.36% 0.33% 0.35% 0.40% -------------- --------------- ------------- --------------- ------------- Tax-equivalent net interest margin 3.39% 3.34% 3.32% 3.45% 3.46% ============== =============== ============= =============== =============
CREDIT QUALITY INDICATORS BOK FINANCIAL CORPORATION (In thousands, except ratios) Quarter Ended ---------------------------------------------------------------------------------- March 31, December 31, September 30, June 30, March 31, 2006 2005 2005 2005 2005 -------------- --------------- ------------- --------------- ------------- Nonperforming assets: Nonaccruing loans $ 32,229 $ 25,162 $ 37,353 $ 40,527 $ 49,803 Real estate and other repossessed assets 8,196 8,476 5,069 5,062 3,187 -------------- --------------- ------------- --------------- ------------- Total nonperforming assets $ 40,425 $ 33,638 $ 42,422 $ 45,589 $ 52,990 ============== =============== ============= =============== ============= Performing loans 90 days past due $ 3,919 $ 8,708 $ 10,027 $ 7,125 $ 6,782 Gross charge-offs $ 4,149 $ 9,579 $ 5,311 $ 5,044 $ 5,824 Recoveries 2,564 2,164 1,977 2,757 2,646 -------------- --------------- ------------- --------------- ------------- Net charge-offs $ 1,585 $ 7,415 $ 3,334 $ 2,287 $ 3,178 ============== =============== ============= =============== ============= Provision for credit losses $ 3,400 $ 4,450 $ 3,976 $ 2,015 $ 2,000 Reserve for loan losses to period end loans (A) 1.14% 1.14% 1.24% 1.29% 1.35% Combined reserves for credit losses to period end loans 1.38% 1.37% 1.44% 1.50% 1.57% Nonperforming assets to period end loans (A) and repossessed assets 0.44% 0.37% 0.48% 0.54% 0.66% Net charge-offs (annualized) to average loans (A) 0.07% 0.33% 0.16% 0.11% 0.16% Reserve for loan losses to nonaccruing loans 323.13% 412.83% 293.48% 268.67% 218.78% Combined reserves for credit losses to nonaccruing loans 391.77% 494.60% 341.11% 312.81% 252.88%
(A) excluding residential mortgage loans held for sale -----END PRIVACY-ENHANCED MESSAGE-----