-----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, RzObdM0TFywYfJxcU1XqzYD0rz/v71dzK+yUoWJzOv5y/FGw4nyhpGQrzRLmQFKi IVqBujxW3vRJmnRyzETpUg== 0000875357-10-000003.txt : 20100127 0000875357-10-000003.hdr.sgml : 20100127 20100127170731 ACCESSION NUMBER: 0000875357-10-000003 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20091231 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20100127 DATE AS OF CHANGE: 20100127 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: 10551270 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 form8k123109.txt FORM 8-K 123109 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): January 27, 2010 BOK FINANCIAL CORPORATION (Exact name of registrant as specified in its charter) Oklahoma 000-19341 73-1373454 -------- --------- ---------- (State or other jurisdiction (Commission (IRS Employer of incorporation) File Number) Identification No.) Bank of Oklahoma Tower, Boston Avenue at Second Street, Tulsa, Oklahoma 74172 (Address of principal executive offices) Registrant's telephone number, including area code: (918) 588-6000 _____________________N/A___________________________ (Former name or former address, if changes since last report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: |_| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425). |_| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12). |_| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)). |_| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)). INFORMATION TO BE INCLUDED IN THE REPORT ITEM 2.02. Results of Operations and Financial Condition. On January 27, 2010, BOK Financial Corporation ("BOK Financial") issued a press release announcing its financial results for the three months and year ended December 31, 2009 ("Press Release"). The full text of the Press Release is attached as Exhibit 99(a) to this report and is incorporated herein by reference. On January 27, 2010, in connection with issuance of the Press Release, BOK Financial released financial information related to the three months and year ended December 31, 2009 ("Financial Information"), which includes certain historical financial information relating to BOK Financial. The Financial Information is attached as Exhibit 99(b) to this report and is incorporated herein by reference. ITEM 9.01. Financial Statements and Exhibits. (c) Exhibits 99(a) Text of Press Release, dated January 27, 2010 titled "BOK Financial Reports Quarterly Earnings of $43 Million or $0.63 per Share - Annual Earnings Total $201 Million or $2.96 per Share" 99(b) Financial Information for the Three Months and Year Ended December 31, 2009 Signature Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. BOK FINANCIAL CORPORATION By: /s/ Steven E. Nell --------------------------------------- Steven E. Nell Executive Vice President Chief Financial Officer Date: January 27, 2010 EX-99 2 press123109.txt (A) EARNINGS RELEASE TEXT 123109 Exhibit 99 (a) BOK Financial Reports Quarterly Earnings of $43 Million or $0.63 per Share Annual Earnings Total $201 Million or $2.96 per Share TULSA, Okla. (Wednesday January 27, 2010) - BOK Financial Corporation reported net income for the fourth quarter of 2009 of $42.8 million or $0.63 per diluted share compared to $50.7 million or $0.75 per diluted share for the third quarter of 2009 and $35.4 million, or $0.52 per diluted share for the fourth quarter of 2008. Net income for 2009 totaled $200.6 million or $2.96 per diluted share compared to $153.2 million or $2.27 per diluted share for 2008. "BOK Financial continued to produce solid earnings in 2009 despite economic challenges," said President and CEO Stan Lybarger. "We remained committed to a strategy of diversified revenue sources, well-managed operating expenses and controlled growth that focuses on long-term shareholder value. Our capital base which was built on retained earnings, not government assistance, has us well positioned for the future." Highlights of fourth quarter of 2009 included: o Net interest revenue totaled $184.5 million, up $4.0 million over the third quarter of 2009. Net interest margin was 3.64% for the fourth quarter of 2009 and 3.63% for the third quarter of 2009. o Fees and commissions revenue totaled $115.9 million, down $4.0 million from the previous quarter due primarily to a $4.7 million decrease in brokerage and trading revenue. o Operating expenses, excluding changes in the fair value of mortgage servicing rights, totaled $181.7 million, up $6.0 million from the prior quarter. Mortgage banking costs, occupancy costs and net losses and expenses of repossessed assets increased over the prior quarter. Personnel expenses decreased due to lower incentive compensation expense. o Combined reserves for credit losses totaled $306 million or 2.72% of outstanding loans at December 31, 2009, up from $293 million or 2.52% of outstanding loans at September 30, 2009. Net loans charged off and provision for credit losses were $35.0 million and $48.6 million, respectively for the fourth quarter of 2009. o Non-performing assets totaled $484 million or 4.24% of outstanding loans and repossessed assets at December 31, 2009, down from $490 million or 4.19% of outstanding loans and repossessed assets at September 30, 2009. Non-accruing loans decreased $43 million and real estate and other repossessed assets increased $40 million during the fourth quarter. o Available for sale securities totaled $8.9 billion at December 31, 2009, up $513 million since September 30 due to purchases of residential mortgage-backed securities issued by U.S. government agencies. Other-than-temporary impairment charges on certain privately-issued residential mortgage backed securities reduced pre-tax income by $14.5 million during the fourth quarter of 2009. o Outstanding loan balances were $11.3 billion at December 31, 2009, down $332 million since September 30, 2009. All major loan categories decreased during the fourth quarter largely due to reduced customer demand and normal repayment trends. o Average deposit balances totaled $15.6 billion for the fourth quarter 2009, up $444 million from the third quarter of 2009. Total period end deposits grew $423 million in the fourth quarter of 2009 to $15.5 billion. Growth in demand and interest-bearing transaction deposits was partially offset by decreases in higher-costing time deposits. o Tangible common equity ratio increased to 7.99% at December 31, 2009, from 7.78% at September 30, 2009 largely due to retained earnings growth. The tangible common equity ratio is a non-GAAP measure of capital strength used by the Company and investors based on shareholders' equity as defined by generally accepted accounting principles in the United States of America minus intangible assets and equity that does not benefit common shareholders such as preferred equity and equity provided by the U.S. Treasury's Troubled Asset Relief Program ("TARP") Capital Purchase Program. BOK Financial chose not to participate in the TARP Capital Purchase Program. The Company's Tier 1 capital ratios as defined by banking regulations were 10.86% at December 31, 2009 and 10.56% at September 30, 2009. o The Company paid a cash dividend of $16.5 million or $0.24 per common share during the fourth quarter of 2009. On January 26, 2010, the board of directors declared a cash dividend of $0.24 per common share payable on or about February 26, 2010 to shareholders of record as of February 12, 2010. Net Interest Revenue Net interest revenue totaled $184.5 million for the fourth quarter of 2009, up $4.0 million over the third quarter of 2009. Net interest margin was 3.64% for the fourth quarter of 2009 and 3.63% for the third quarter of 2009 and 3.57% for the fourth quarter of 2008. The increase in net interest margin over the previous quarter resulted from improved loan yields and lower funding costs. The yield on average earning assets decreased 12 basis points from the previous quarter. Loan yields were up 3 basis points. The increased loan yield partially offset a 34 basis point decrease in the securities portfolio yield. The cost of interest-bearing liabilities decreased 15 basis points, including a 20 basis point decrease in the cost of interest-bearing deposits and a 4 basis point decrease in the cost of other borrowed funds. Average earning assets increased $450 million during the fourth quarter of 2009, primarily due to an $876 million increase in average securities, primarily residential mortgage-backed securities issued by U.S. government agencies. Average outstanding loans decreased $395 million. Average balances in all major loan categories were lower compared to the previous quarter. Average deposits increased $444 million during the fourth quarter of 2009. Balances in lower-costing transaction accounts continued to increase and balances in higher-costing time deposits continued to decline. Average interest-bearing transaction accounts were up $572 million and average demand deposits were up $274 million. Average time deposit balances decreased $403 million. Fees and Commission Revenue Fees and commissions revenue decreased to $115.9 million for the fourth quarter of 2009 compared to $120.0 million in the third quarter of 2009 primarily due to a $4.7 million decrease in brokerage and trading revenue. Securities trading revenue was down $4.3 million from the previous quarter. All other sources of fees and commissions revenue remained unchanged from the previous quarter. Mortgage banking revenue increased $206 thousand due to an increase in loan production volume. Trust revenue increased $177 thousand due to an increase in the fair value of trust assets. Deposit service charges and fees decreased $963 thousand due to lower commercial account fees and overdraft fees. Operating Expenses Total operating expenses were $176.4 million for the fourth quarter of 2009, down $2.3 million compared to the previous quarter. Excluding changes in the fair value of mortgage servicing rights, operating expenses totaled $181.7 million, up $6.0 million over the third quarter of 2009. Growth in operating expenses was primarily due to mortgage banking expenses which include losses on loans previously sold with recourse, operating costs associated with repossessed assets and occupancy costs. Losses on mortgage loans sold with recourse were up $3.3 million over the previous quarter. Net operating costs associated with repossessed properties increased $1.5 million and occupancy costs increased $1.8 million. Personnel costs were down $4.3 million primarily due to a $3.0 million reduction in incentive compensation expense. In addition, operating expenses decreased $8.3 million due to changes in the fair value of mortgage servicing rights. Credit Quality Non-performing assets decreased $5.4 million during the fourth quarter of 2009 to $484 million or 4.24% of outstanding loans and repossessed assets at December 31, 2009. Non-performing assets at December 31, 2009 consisted of non-accruing loans of $339 million, renegotiated loans of $16 million (including $13 million of residential mortgage loans guaranteed by U.S. government agencies) and $129 million of real estate and other repossessed assets. Non-accruing loans decreased $43 million and repossessed assets increased $40 million during the quarter. Non-accruing loans totaled $339 million or 3.01% of outstanding loans at December 31, 2009, compared with $383 million or 3.30% of outstanding loans at September 30, 2009. Approximately $164 million of non-accruing loans have been charged-down to the amount management expects to recover. During the fourth quarter of 2009, $63 million of new non-accruing loans were identified offset by $26 million in charge-offs, $47 million in foreclosures and repossessions and $28 million in payments received. The decrease in non-accruing loans included $21 million from cash and an equity interest received during the fourth quarter to partially satisfy bankruptcy claims against SemGroup. Cash received totaled $7 million and the equity interest was valued at $14 million. BOK Financial continues to hold a $12 million non-accruing loan to the entity created when SemGroup exited bankruptcy. Non-accruing commercial loans totaled $101 million or 1.63% of total commercial loans at December 31, 2009. At December 31, 2009, non-accruing commercial loans are primarily composed of $31 million or 1.71% of total services sector loans, $23 million or 1.19% of total energy sector loans and $16 million or 3.90% of total manufacturing sector loans. Non-accruing commercial loans decreased $27 million since September 30, 2009, primarily related to energy sector loans. Non-accruing commercial real estate loans totaled $205 million or 8.23% of outstanding commercial real estate loans at December 31, 2009. Non-accruing commercial real estate loans attributed to our various markets included $73 million or 32% of total commercial real estate loans in Arizona, $52 million or 22% of total commercial real estate loans in Colorado, $31 million or 3.78% of total commercial real estate loans in Oklahoma, $24 million or 3.26% of total commercial real estate loans in Texas and $12 million or 9.06% of commercial real estate loans in Arkansas. Total non-accruing commercial real estate loans decreased $7.5 million since September 30, 2009. Newly identified non-accruing commercial real estate loans totaled $46 million, partially offset by $27 million of foreclosures, $15 million of cash payments received and $12 million of charge-offs. Non-accruing residential mortgage loans totaled $30 million or 1.67% of outstanding residential mortgage loans at December 31, 2009. The distribution of non-accruing residential mortgage loans among our various markets included $15 million or 1.22% of residential mortgage loans in Oklahoma, $9 million or 2.87% of residential mortgage loans in Texas and $3 million or 4.61% of residential mortgage loans in Arizona. Non-accruing residential mortgage loans decreased $8.2 million compared to September 30, 2009. Residential mortgage loans past due 30 to 90 days totaled $20 million, unchanged from September 30, 2009. The combined allowance for credit losses totaled $306 million or 2.72% of outstanding loans and 90% of non-accruing loans at December 31, 2009. The allowance for loan losses was $292 million and the reserve for off-balance sheet credit losses was $14 million. During the fourth quarter of 2009, the Company recognized a $48.6 million provision for credit losses. Net losses charged against the allowance for loan losses totaled $35.0 million or 1.22% annualized of average outstanding loans. For the full year 2009, the Company recognized a $196 million provision for credit losses. Net losses charged against the allowance for loan losses totaled $138 million or 1.14% of average loans. Real estate and other repossessed assets totaled $129 million at December 31, 2009 consisting of $63 million of 1-4 family residential properties and residential land development properties, $36 million of developed commercial real estate properties, $14 million of equity interest received in partial satisfaction of debts, $8 million of undeveloped land, $5 million of equipment and $2 million of automobiles. The distribution of real estate owned and other repossessed assets among various markets included $52 million in Arizona, $23 million in Texas, $10 million in Colorado, $9 million in New Mexico, $23 million in Oklahoma, $6 million in Kansas City and $6 million in Arkansas. Real estate and other repossessed assets increased by $40 million during the fourth quarter due to additions of $53 million partially offset by $7 million in sales and $6 million in write-downs based on updated appraisals. The Company also has off-balance sheet obligations related to certain community development residential mortgage loans sold to U.S. government agencies with recourse. These mortgage loans were underwritten to standards approved by the agencies, including full documentation and originated under programs available only for owner-occupied properties. The outstanding principal balance of these loans totaled $331 million at December 31, 2009. The loans are primarily to borrowers in our primary market areas, including $233 million in Oklahoma, $36 million in Arkansas, $19 million in New Mexico, $16 million in Kansas City and $15 million in Texas. At December 31, 2009, approximately 5.22% of these loans are non-performing and 5.55% were past due 30 to 90 days. A separate reserve for credit risk of $14 million is available for losses on these loans. Securities and Derivatives The fair value of available for sale securities totaled $8.9 billion at December 31, 2009, up $513 million since September 30, 2009. The available for sale portfolio consisted primarily of residential mortgage-backed securities, including $7.8 billion fully backed by U.S. government agencies and $792 million privately issued by publicly owned financial institutions. The portfolio does not hold any securities backed by sub-prime mortgage loans, collateralized debt obligations or collateralized loan obligations. The Company holds no debt of corporate issuers. The Company continued a strategy to increase holdings of residential mortgage-backed securities during the fourth quarter. This strategy recognizes attractive spreads over funding costs on these securities. Credit risk is controlled by investing in securities fully backed by U.S. government agencies. Interest rate risk is mitigated by investing in short-duration securities that would have limited extension exposure from rising interest rates. The portfolio of available for sale securities had net unrealized gains of $13 million at December 31, 2009 compared to net unrealized gains of $31 million at September 30, 2009. Net unrealized gains on residential mortgage-backed securities issued by U.S. government agencies decreased $39 million during the fourth quarter to $164 million at December 31, 2009. Net unrealized losses on privately-issued residential mortgage-backed securities decreased $22 million to $169 million at December 31, 2009. The amortized cost of privately-issued mortgage-backed securities totaled $961 million at December 31, 2009, down $371 million since September 30 due primarily to cash received. Approximately $589 million of the privately issued mortgage-backed securities were rated below investment grade by at least one nationally-recognized rating agency. The aggregate unrealized losses on privately-issued mortgage-backed securities rated below investment grade totaled $129 million at December 31, 2009. Aggregate unrealized losses on these same securities were $137 million at September 30, 2009. The Company recognized a $14.5 million other-than-temporary impairment charge against earnings in the fourth quarter related to these securities due to further declines in projected cash flows as a result of worsening trends in delinquencies, foreclosures and housing prices. Net realized gains on securities totaled $7.3 million for the fourth quarter of 2009, compared with $12.3 million for the third quarter of 2009 and $20.2 million for the fourth quarter of 2008. Three Months Ended ------------- ------------ ----------- Dec. 31, Sept. 30, Dec. 31, 2009 2009 2008 Net gain on available for sale securities $ 11,717 $ 8,706 $ 5,067 Gain (loss) on mortgage hedge securities (4,440) 3,560 15,089 - ---------------------------------------- ------------- ------------ ----------- Net gain on securities $7,277 $ 12,266 $ 20,156 - ---------------------------------------- ------------- ------------ ----------- Gain (loss) on change in fair value of mortgage servicing rights $5,285 $(2,981) $ (26,432) - ---------------------------------------- ------------- ------------ ----------- The Company recognized $11.7 million of gains on the sale of $776 million of available for sale securities in the fourth quarter of 2009 and $8.7 million of net gains on the sale of $719 million of available for sale securities in the third quarter of 2009. Securities were sold either because they had reached their maximum potential total return or to mitigate extension exposure from rising interest rates. BOK Financial also maintains a portfolio of residential mortgage-backed securities issued by U.S. government agencies as an economic hedge against changes in the fair value of mortgage servicing rights. The fair value of mortgage servicing rights increased $5.3 million and the fair value of mortgage hedge securities decreased $4.4 million during the fourth quarter of 2009. The Company has a portfolio of derivative contracts held for customer risk management programs and internal interest rate risk management programs. At December 31, 2009, the fair value of all asset contracts totaled $344 million, net of cash margin held by the Company. The largest net amount due from a single counterparty, a subsidiary of an international energy company, to these contracts at December 31 was $84 million. Letters of credit issued by independent financial institutions offset $70 million of this amount. Loans, Deposits and Capital Outstanding loans at December 31, 2009 were $11.3 billion, down $332 million from September 30, 2009. Loan balances were lower across most sectors of the loan portfolio and markets due to reduced customer demand in response to current economic conditions and normal repayment trends. Commercial loans decreased $162 million from September 30, 2009, primarily due to a $182 million decrease in energy sector loans and a $39 million decrease in manufacturing sector loans, offset by a $47 million increase in healthcare sector loans and $39 million increase in service sector loans. Commercial real estate loans decreased $69 million compared to the prior quarter, primarily due to a $90 million decrease in residential construction and land development loans and a $25 million decrease in loans secured by office buildings, offset by a $21 million increase in loans secured by multifamily properties and a $19 million increase in loans secured by industrial properties. Residential mortgage loans decreased $36 million from the prior quarter primarily due to a $45 million decrease in permanent mortgage loans offset by a $9 million increase in home equity loans. Consumer loans decreased $65 million compared to the prior quarter primarily due to a $62 million decrease in indirect automobile loans related to the previously announced decision to curtail that business during the first quarter of 2009 in favor of a customer-focused direct approach to consumer lending. Total deposits increased $423 million during the third quarter and totaled $15.5 billion at December 31, 2009. Demand and interest-bearing deposits increased $192 million and $550 million, respectively, offset by a $317 million decrease in time deposit balances. The Company continued to decrease brokered deposits and other higher cost certificates of deposit. Among the lines of business, wealth management and consumer deposits increased $566 million and $64 million, respectively, offset by a $93 million decrease in commercial deposits. The Company and each of its subsidiary banks exceeded the regulatory definition of well capitalized at December 31, 2009. The Company's Tier 1 and total capital ratios were 10.86% and 14.43%, respectively, at December 31, 2009. The Company's Tier 1 and total capital ratios were 10.56% and 14.10%, respectively, at September 30, 2009. In addition the Company's tangible common equity ratio, a non-GAAP measure, was 7.99% at December 31, 2009 and 7.78% at September 30, 2009. The increase in capital ratios was primarily due to retained earnings growth. About BOK Financial Corporation BOK Financial is a regional financial services company that provides commercial and consumer banking, investment and trust services, mortgage origination and servicing, and an electronic funds transfer network. Holdings include Bank of Albuquerque, N.A., Bank of Arizona, N.A., Bank of Arkansas, N.A., Bank of Oklahoma, N.A., Bank of Texas, N.A., Colorado State Bank & Trust, N.A., Bank of Kansas City, N.A., BOSC, Inc., Cavanal Hill Investment Management, Inc., the TransFund electronic funds network, and Southwest Trust Company, N.A. Shares of BOK Financial are traded on the NASDAQ under the symbol BOKF. For more information, visit www.bokf.com. The Company will continue to evaluate critical assumptions and estimates, such as the adequacy of the allowance for credit losses and asset impairment as of December 31, 2009 through the date its financial statements are filed with the Securities and Exchange Commission and will adjust amounts reported if necessary. This news release contains forward-looking statements that are based on management's beliefs, assumptions, current expectations, estimates and projections about BOK Financial, the financial services industry and the economy generally. Words such as "anticipates," "believes," "estimates," "expects," "forecasts," "plans," "projects," variations of such words and similar expressions are intended to identify such forward-looking statements. Management judgments relating to and discussion of the provision and allowance for credit losses involve judgments as to future events and are inherently forward-looking statements. Assessments that BOK Financial's acquisitions and other growth endeavors will be profitable are necessary statements of belief as to the outcome of future events based in part on information provided by others which BOK Financial has not independently verified. These statements are not guarantees of future performance and involve certain risks, uncertainties, and assumptions which are difficult to predict with regard to timing, extent, likelihood and degree of occurrence. Therefore, actual results and outcomes may materially differ from what is expected, implied or forecasted in such forward-looking statements. Internal and external factors that might cause such a difference include, but are not limited to (1) the ability to fully realize expected cost savings from mergers within the expected time frames, (2) the ability of other companies on which BOK Financial relies to provide goods and services in a timely and accurate manner, (3) changes in interest rates and interest rate relationships, (4) demand for products and services, (5) the degree of competition by traditional and nontraditional competitors, (6) changes in banking regulations, tax laws, prices, levies and assessments, (7) the impact of technological advances and (8) trends in consumer behavior as well as their ability to repay loans. BOK Financial and its affiliates undertake no obligation to update, amend or clarify forward-looking statements, whether as a result of new information, future events, or otherwise. EX-99 3 fs123109.txt (B) EARNINGS RELEASE FINANCIAL TABLES 123109 Exhibit 99 (b) BALANCE SHEETS BOK FINANCIAL CORPORATION (In thousands) Period Ended --------------------------------------------------- December 31, September 30, December 31, 2009 2009 2008 ------------- -------------- -------------- (Unaudited) (Unaudited) ASSETS Cash and due from banks $ 875,250 $ 1,383,244 $ 581,133 Trading securities 65,354 100,898 99,601 Funds sold and resell agreements 45,966 39,465 113,809 Securities: Available for sale 8,872,023 8,358,562 6,391,451 Investment 240,405 238,101 242,344 Mortgage trading securities 285,950 320,971 399,211 ------------- -------------- -------------- Total securities 9,398,378 8,917,634 7,033,006 Residential mortgage loans held for sale 217,826 172,301 129,246 Loans: Commercial 6,207,840 6,370,056 7,411,603 Commercial real estate 2,491,434 2,560,335 2,701,248 Residential mortgage 1,793,622 1,829,824 1,752,574 Consumer 786,802 851,349 1,010,581 ------------- -------------- -------------- Total loans 11,279,698 11,611,564 12,876,006 Less reserve for loan losses (292,095) (280,902) (233,236) ------------- -------------- -------------- Loans, net of reserve 10,987,603 11,330,662 12,642,770 Premises and equipment, net 280,260 286,702 277,458 Accrued revenue receivable 108,822 68,617 96,673 Intangible assets, net 354,239 356,152 361,209 Mortgage servicing rights, net 73,824 66,689 42,752 Real estate and other repossessed assets 129,034 89,507 29,179 Bankers' acceptances 3,869 9,882 12,913 Derivative contracts 343,782 397,110 452,604 Cash surrender value of bank-owned life insurance 247,357 244,456 237,006 Receivable on unsettled securities trades - - 239,474 Other assets 385,267 413,522 385,815 ------------- -------------- -------------- TOTAL ASSETS $ 23,516,831 $ 23,876,841 $ 22,734,648 ============= ============== ============== LIABILITIES AND EQUITY Deposits: Demand $ 3,653,844 $ 3,462,188 $ 3,082,379 Interest-bearing transaction 7,930,439 7,380,449 6,562,350 Savings 165,952 167,896 154,635 Time 3,767,993 4,084,813 5,183,243 ------------- -------------- -------------- Total deposits 15,518,228 15,095,346 14,982,607 Funds purchased and repurchase agreements 2,471,743 2,198,900 3,025,399 Other borrowings 2,133,357 3,189,948 1,522,054 Subordinated debentures 398,539 398,502 398,407 Accrued interest, taxes, and expense 111,880 123,409 133,220 Bankers' acceptances 3,869 9,882 12,913 Due on unsettled securities trades 212,335 133,974 - Derivative contracts 308,360 395,197 667,034 Other liabilities 133,146 127,689 132,902 ------------- -------------- -------------- TOTAL LIABILITIES 21,291,457 21,672,847 20,874,536 Shareholders' equity: Capital, surplus and retained earnings 2,216,553 2,185,776 2,069,143 Accumulated other comprehensive loss (10,740) (763) (222,886) ------------- -------------- -------------- TOTAL SHAREHOLDERS' EQUITY 2,205,813 2,185,013 1,846,257 Non-controlling interest 19,561 18,981 13,855 ------------- -------------- -------------- TOTAL EQUITY 2,225,374 2,203,994 1,860,112 ------------- -------------- -------------- TOTAL LIABILITIES AND EQUITY $ 23,516,831 $ 23,876,841 $ 22,734,648 ============= ============== ==============
AVERAGE BALANCE SHEETS - UNAUDITED BOK FINANCIAL CORPORATION (In thousands) Quarter Ended ---------------------------------------------------------------------------------- December 31, September 30, June 30, March 31, December 31, 2009 2009 2009 2009 2008 ------------- -------------- -------------- -------------- -------------- ASSETS Trading securities $ 68,027 $ 64,763 $ 112,960 $ 111,962 $ 78,840 Funds sold and resell agreements 30,358 67,032 29,277 50,701 48,246 Securities: Available for sale 8,583,032 7,782,254 7,242,931 6,645,086 6,409,906 Investment 238,479 235,967 271,068 238,562 242,503 Mortgage trading securities 340,456 267,591 365,434 453,304 237,319 ------------- -------------- -------------- -------------- -------------- Total securities 9,161,967 8,285,812 7,879,433 7,336,952 6,889,728 Residential mortgage loans held for sale 194,760 176,403 286,077 201,135 121,184 Loans: Commercial 6,325,580 6,521,438 6,901,057 7,182,481 7,452,799 Commercial real estate 2,538,737 2,621,176 2,684,020 2,762,789 2,716,465 Residential mortgage 1,827,339 1,873,457 1,884,023 1,841,006 1,641,023 Consumer 801,040 871,347 933,950 998,489 1,016,409 ------------- -------------- -------------- -------------- -------------- Total loans 11,492,696 11,887,418 12,403,050 12,784,765 12,826,696 Less allowance for loan losses (298,157) (281,289) (273,335) (252,734) (209,319) ------------- -------------- -------------- -------------- -------------- Total loans, net 11,194,539 11,606,129 12,129,715 12,532,031 12,617,377 ------------- -------------- -------------- -------------- -------------- Total earning assets 20,649,651 20,200,139 20,437,462 20,232,781 19,755,374 Cash and due from banks 1,095,087 828,965 638,791 661,433 534,039 Cash surrender value of bank-owned life insurance 245,460 242,715 240,199 237,805 235,195 Derivative contracts 352,143 401,887 493,448 476,091 352,083 Other assets 1,353,393 1,376,828 1,264,131 1,335,259 1,394,960 ------------- -------------- -------------- -------------- -------------- TOTAL ASSETS $ 23,695,734 $ 23,050,534 $ 23,074,031 $ 22,943,369 $ 22,271,651 ============= ============== ============== ============== ============== LIABILITIES AND EQUITY Deposits: Demand $ 3,666,663 $ 3,392,578 $ 3,183,338 $ 2,864,751 $ 2,712,384 Interest-bearing transaction 7,734,678 7,162,477 6,854,003 6,610,805 6,116,465 Savings 167,572 167,677 167,813 159,537 155,784 Time 4,002,337 4,404,854 5,123,947 5,215,091 5,109,303 ------------- -------------- -------------- -------------- -------------- Total deposits 15,571,250 15,127,586 15,329,101 14,850,184 14,093,936 Funds purchased and repurchase agreements 2,173,476 2,284,985 2,316,990 2,562,066 3,095,054 Other borrowings 2,380,938 2,173,103 1,951,699 2,158,963 1,986,857 Subordinated debentures 398,522 398,484 398,456 398,425 398,392 Derivative contracts 318,809 392,277 536,232 641,974 494,778 Other liabilities 605,994 539,129 534,889 416,242 293,752 ------------- -------------- -------------- -------------- -------------- TOTAL LIABILITIES 21,448,989 20,915,564 21,067,367 21,027,854 20,362,769 Total equity 2,246,745 2,134,970 2,006,664 1,915,515 1,908,882 ------------- -------------- -------------- -------------- -------------- TOTAL LIABILITIES AND EQUITY $ 23,695,734 $ 23,050,534 $ 23,074,031 $ 22,943,369 $ 22,271,651 ============= ============== ============== ============== ==============
STATEMENTS OF EARNINGS - UNAUDITED BOK FINANCIAL CORPORATION (In thousands, except per share data) Quarter Ended Year Ended -------------------------------- ------------------------------- December 31, December 31, -------------------------------- ------------------------------- 2009 2008 2009 2008 ------------- -------------- -------------- -------------- Interest revenue $ 224,411 $ 262,160 $ 914,569 $ 1,061,645 Interest expense 39,933 85,713 204,205 414,783 ------------- -------------- -------------- -------------- Net interest revenue 184,478 176,447 710,364 646,862 Provision for credit losses 48,620 73,001 195,900 202,593 ------------- -------------- -------------- -------------- Net interest revenue after provision for credit losses 135,858 103,446 514,464 444,269 Other operating revenue Brokerage and trading revenue 20,240 23,507 91,677 42,804 Transaction card revenue 26,292 25,177 105,517 100,153 Trust fees and commissions 16,492 17,143 66,177 78,979 Deposit service charges and fees 29,501 29,239 115,791 117,528 Mortgage banking revenue 13,403 7,217 64,980 30,599 Bank-owned life insurance 2,870 2,682 10,239 10,681 Margin asset fees 50 187 236 8,548 Other revenue 7,101 5,778 25,895 25,902 ------------- -------------- -------------- -------------- Total fees and commissions 115,949 110,930 480,512 415,194 Gain (loss) on other assets (205) (7,420) 4,134 (9,406) Gain (loss) on derivatives, net (370) (2,219) (3,365) 1,299 Gain (loss) on securities, net 7,277 20,156 46,122 26,943 Total other-than-temporary impairment losses (67,390) - (129,154) (5,306) Portion of loss recognized in other comprehensive income (52,902) - (94,741) - ------------- -------------- -------------- -------------- Net impairment losses recognized in earnings (14,488) - (34,413) (5,306) ------------- -------------- -------------- -------------- Total other operating revenue 108,163 121,447 492,990 428,724 Other operating expense Personnel 93,687 87,695 380,517 352,947 Business promotion 5,758 7,283 19,582 23,536 Professional fees and services 8,813 7,923 30,243 27,045 Net occupancy and equipment 17,600 14,901 65,715 60,632 Insurance 6,412 3,216 24,040 11,988 FDIC special assessment - - 11,773 - Data processing and communications 21,121 19,720 81,292 78,047 Printing, postage and supplies 3,601 3,823 15,960 16,433 Net (gains) losses and operating expenses of repossessed assets 5,101 1,006 11,400 1,019 Amortization of intangible assets 1,912 1,967 6,970 7,661 Mortgage banking costs 11,436 4,967 36,304 22,513 Change in fair value of mortgage servicing rights (5,285) 26,432 (12,124) 34,515 Visa retrospective responsibility obligation - (1,700) - (2,767) Other expense 6,281 8,209 25,061 28,835 ------------- -------------- -------------- -------------- Total other operating expense 176,437 185,442 696,733 662,404 Net income before taxes 67,584 39,451 310,721 210,589 Federal and state income taxes 24,780 10,363 106,705 64,909 ------------- -------------- -------------- -------------- Net income before non-controlling interest 42,804 29,088 204,016 145,680 Net income (loss) attributable to non-controlling interest 33 (6,355) 3,438 (7,552) ------------- -------------- -------------- -------------- Net income attributable to BOK Financial Corporation $ 42,771 $ 35,443 $ 200,578 $ 153,232 ============= ============== ============== ============== Average shares outstanding: Basic 67,446,326 67,294,069 67,375,387 67,302,990 Diluted 67,600,344 67,456,267 67,487,944 67,461,361 Net income per share: Basic $ 0.63 $ 0.53 $ 2.96 $ 2.27 ============= ============== ============== ============== Diluted $ 0.63 $ 0.52 $ 2.96 $ 2.27 ============= ============== ============== ==============
FINANCIAL HIGHLIGHTS - UNAUDITED BOK FINANCIAL CORPORATION (In thousands, except ratio and share data) Quarter Ended ------------------------------------------------------------------------------------- December 31, September 30, June 30, March 31, December 31, 2009 2009 2009 2009 2008 ------------- -------------- -------------- -------------- -------------- Capital: Period-end shareholders' equity $ 2,205,813 $ 2,185,013 $ 2,050,572 $ 1,931,300 $ 1,846,257 Risk weighted assets $ 17,275,808 $ 17,515,147 $ 18,338,540 $ 18,355,862 $ 18,401,051 Risk-based capital ratios: Tier 1 10.86% 10.56% 9.86% 9.66% 9.40% Total capital 14.43% 14.10% 13.34% 13.08% 12.81% Leverage ratio 8.05% 8.16% 7.97% 7.85% 7.89% Tangible common equity ratio (A) 7.99% 7.78% 7.55% 6.84% 6.64% Tier 1 common equity ratio (B) 10.75% 10.45% 9.77% 9.58% 9.32% Common stock: Book value per share $ 32.53 $ 32.27 $ 30.30 $ 28.57 $ 27.36 Market value per share: High $ 47.91 $ 48.10 $ 43.02 $ 40.71 $ 54.42 Low $ 41.87 $ 34.81 $ 34.46 $ 22.95 $ 38.40 Cash dividends paid $ 16,461 $ 16,280 $ 16,184 $ 15,027 $ 15,358 Dividend payout ratio 38.49% 32.14% 31.05% 27.31% 43.33% Shares outstanding, net 67,802,807 67,707,547 67,674,442 67,589,045 67,473,086 Stock buy-back program: Shares repurchased - - - - - Amount $ - $ - $ - $ - $ - ------------- ---------------- --------------- -------------- -------------- Average price per share $ - $ - $ - $ - $ - ============= ================ =============== ============== ============== Performance ratios (quarter annualized): Return on average assets 0.72% 0.87% 0.91% 0.97% 0.63% Return on average equity 7.55% 9.41% 10.42% 11.65% 7.39% Net interest margin 3.64% 3.63% 3.55% 3.47% 3.57% Efficiency ratio 60.02% 58.09% 61.02% 57.10% 54.94% Other data: Gain (loss) on economic hedge of mortgage servicing rights $ (4,440) $ 3,560 $ (10,199) $ (2,118) $ 15,089 Trust assets $ 30,385,365 $ 29,945,585 $ 29,288,041 $ 28,700,791 $ 30,454,512 Mortgage servicing portfolio $ 6,603,132 $ 6,339,764 $ 6,082,501 $ 5,515,893 $ 5,256,159 Mortgage loan fundings during the quarter $ 560,254 $ 536,173 $ 1,023,272 $ 708,561 $ 214,521 Mortgage loan refinances to total fundings 47.00% 49.00% 71.00% 73.51% 34.84% Tax equivalent adjustment $ 2,196 $ 1,982 $ 1,791 $ 2,105 $ 2,063 Unrealized gain (loss) on available for sale securities $ 13,226 $ 30,898 $ (128,492) $ (261,856) $ (330,973) (A) Tangible common equity ratio is a non-GAAP measure. Reconciliation to a GAAP financial measure follows: Total shareholders' equity $ 2,205,813 $ 2,185,013 $ 2,050,572 $ 1,931,300 $ 1,846,257 Less: intangible assets, net (354,239) (356,152) (357,838) (359,523) (361,209) ------------- -------------- -------------- -------------- -------------- Tangible common equity $ 1,851,574 $ 1,828,861 $ 1,692,734 $ 1,571,777 $ 1,485,048 ============= ============== ============== ============== ============== Total assets $ 23,516,831 $ 23,876,841 $ 22,768,319 $ 23,333,442 $ 22,734,648 Less: intangible assets, net (354,239) (356,152) (357,838) (359,523) (361,209) ------------- -------------- -------------- -------------- -------------- $ 23,162,592 $ 23,520,689 $ 22,410,481 $ 22,973,919 $ 22,373,439 ============= ============== ============== ============== ============== Tangible common equity ratio 7.99% 7.78% 7.55% 6.84% 6.64% (B) Tier 1 common equity ratio is a non-GAAP measure. Reconciliation to a GAAP financial measure follows: Tier 1 capital $ 1,876,778 $ 1,849,254 $ 1,807,705 $ 1,773,576 $ 1,728,926 Less: non-controlling interest (19,561) (18,981) (15,590) (14,751) (13,855) ------------- -------------- -------------- -------------- -------------- Tier 1 common equity $ 1,857,217 $ 1,830,273 $ 1,792,115 $ 1,758,825 $ 1,715,071 ============= ============== ============== ============== ============== Risk weighted assets $ 17,275,808 $ 17,515,147 $ 18,338,540 $ 18,355,862 $ 18,401,051 Tier 1 common equity ratio 10.75% 10.45% 9.77% 9.58% 9.32%
QUARTERLY EARNINGS TRENDS - UNAUDITED BOK FINANCIAL CORPORATION (In thousands, except ratio and per share data) Quarter Ended ---------------------------------------------------------------------------------- December 31, September 30, June 30, March 31, December 31, 2009 2009 2009 2009 2008 ------------- -------------- -------------- -------------- -------------- Interest revenue $ 224,411 $ 226,246 $ 230,685 $ 233,227 $ 262,160 Interest expense 39,933 45,785 55,105 63,382 85,713 ------------- -------------- -------------- -------------- -------------- Net interest revenue 184,478 180,461 175,580 169,845 176,447 Provision for credit losses 48,620 55,120 47,120 45,040 73,001 ------------- -------------- -------------- -------------- -------------- Net interest revenue after provision for credit losses 135,858 125,341 128,460 124,805 103,446 Other operating revenue Brokerage and trading revenue 20,240 24,944 21,794 24,699 23,507 Transaction card revenue 26,292 26,264 27,533 25,428 25,177 Trust fees and commissions 16,492 16,315 16,860 16,510 17,143 Deposit service charges and fees 29,501 30,464 28,421 27,405 29,239 Mortgage banking revenue 13,403 13,197 19,882 18,498 7,217 Bank-owned life insurance 2,870 2,634 2,418 2,317 2,682 Margin asset fees 50 51 68 67 187 Other revenue 7,101 6,087 6,124 6,583 5,778 ------------- -------------- -------------- -------------- -------------- Total fees and commissions 115,949 119,956 123,100 121,507 110,930 Gain (loss) on other assets (205) 3,223 973 143 (7,420) Gain (loss) on derivatives, net (370) (294) (1,037) (1,664) (2,219) Gain (loss) on securities, net 7,277 12,266 6,471 20,108 20,156 Total other-than-temporary impairment losses (67,390) (6,133) (1,263) (54,368) - Portion of loss recognized in other comprehensive income (52,902) (2,752) 279 (39,366) - ------------- -------------- -------------- -------------- -------------- Net impairment losses recognized in earnings (14,488) (3,381) (1,542) (15,002) - ------------- -------------- -------------- -------------- -------------- Total other operating revenue 108,163 131,770 127,965 125,092 121,447 Other operating expense Personnel 93,687 98,012 96,191 92,627 87,695 Business promotion 5,758 4,827 4,569 4,428 7,283 Professional fees and services 8,813 7,555 7,363 6,512 7,923 Net occupancy and equipment 17,600 15,884 15,973 16,258 14,901 Insurance 6,412 6,092 5,898 5,638 3,216 FDIC special assessment - - 11,773 - - Data processing and communications 21,121 20,413 20,452 19,306 19,720 Printing, postage and supplies 3,601 3,716 4,072 4,571 3,823 Net (gains) losses and operating expenses of repossessed assets 5,101 3,497 996 1,806 1,006 Amortization of intangible assets 1,912 1,686 1,686 1,686 1,967 Mortgage banking costs 11,436 8,065 9,336 7,467 4,967 Change in fair value of mortgage servicing rights (5,285) 2,981 (7,865) (1,955) 26,432 Visa retrospective responsibility obligation - - - - (1,700) Other expense 6,281 6,004 5,326 7,450 8,209 ------------- -------------- -------------- -------------- -------------- Total other operating expense 176,437 178,732 175,770 165,794 185,442 Net income before taxes 67,584 78,379 80,655 84,103 39,451 Federal and state income taxes 24,780 24,772 28,315 28,838 10,363 ------------- -------------- -------------- -------------- -------------- Net income before non-controlling interest 42,804 53,607 52,340 55,265 29,088 Net income (loss) attributable to non-controlling interest 33 2,947 225 233 (6,355) ------------- -------------- -------------- -------------- -------------- Net income attributable to BOK Financial Corporation $ 42,771 $ 50,660 $ 52,115 $ 55,032 $ 35,443 ============= ============== ============== ============== ============== Average shares outstanding: Basic 67,446,326 67,392,059 67,344,577 67,315,986 67,294,069 Diluted 67,600,344 67,513,700 67,448,029 67,387,102 67,456,267 Net income per share: Basic $ 0.63 $ 0.75 $ 0.77 $ 0.81 $ 0.53 Diluted $ 0.63 $ 0.75 $ 0.77 $ 0.81 $ 0.52
LOANS BY PRINCIPAL MARKET AREA - UNAUDITED BOK FINANCIAL CORPORATION (In thousands) Quarter Ended ------------------------------------------------------------------------------------- December 31, September 30, June 30, March 31, December 31, 2009 2009 2009 2009 2008 ------------- -------------- -------------- -------------- -------------- Oklahoma: Commercial $ 2,649,252 $ 2,738,217 $ 2,918,478 $ 3,119,362 $ 3,356,520 Commercial real estate 820,578 815,362 855,742 881,620 843,576 Residential mortgage 1,228,822 1,245,917 1,249,104 1,234,417 1,196,924 Consumer 451,829 483,369 521,431 562,021 579,809 ------------- -------------- -------------- -------------- -------------- Total Oklahoma 5,150,481 5,282,865 5,544,755 5,797,420 5,976,829 Texas: Commercial 2,017,081 2,075,379 2,182,756 2,277,186 2,353,860 Commercial real estate 735,338 734,742 741,199 816,830 825,769 Residential mortgage 313,113 335,797 345,780 337,044 315,438 Consumer 170,062 188,374 196,752 214,134 212,820 ------------- -------------- -------------- -------------- -------------- Total Texas 3,235,594 3,334,292 3,466,487 3,645,194 3,707,887 New Mexico: Commercial 341,802 344,910 380,378 393,180 418,732 Commercial real estate 305,061 344,988 313,190 315,511 286,574 Residential mortgage 86,415 88,271 90,944 99,805 98,018 Consumer 17,473 18,176 18,826 19,900 18,616 ------------- -------------- -------------- -------------- -------------- Total New Mexico 750,751 796,345 803,338 828,396 821,940 Arkansas: Commercial 103,443 99,559 97,676 99,955 103,446 Commercial real estate 132,436 128,984 133,026 133,227 134,015 Residential mortgage 16,849 19,128 19,015 17,145 16,875 Consumer 124,265 136,461 152,620 168,971 175,647 ------------- -------------- -------------- -------------- -------------- Total Arkansas 376,993 384,132 402,337 419,298 429,983 Colorado: Commercial 545,724 569,549 595,858 675,223 660,546 Commercial real estate 239,970 249,879 269,923 267,035 261,820 Residential mortgage 66,504 68,667 58,557 59,120 53,875 Consumer 17,362 18,272 14,097 14,599 16,141 ------------- -------------- -------------- -------------- -------------- Total Colorado 869,560 906,367 938,435 1,015,977 992,382 Arizona: Commercial 199,143 219,330 215,540 211,953 211,356 Commercial real estate 227,249 257,169 262,607 285,841 319,525 Residential mortgage 65,047 57,304 58,265 61,605 62,123 Consumer 3,461 4,826 3,229 5,261 6,075 ------------- -------------- -------------- -------------- -------------- Total Arizona 494,900 538,629 539,641 564,660 599,079 Kansas: Commercial 351,395 323,112 325,165 324,671 307,143 Commercial real estate 30,802 29,211 36,006 32,017 29,969 Residential mortgage 16,872 14,740 12,310 10,814 9,321 Consumer 2,350 1,871 1,454 1,469 1,473 ------------- -------------- -------------- -------------- -------------- Total Kansas 401,419 368,934 374,935 368,971 347,906 ------------- -------------- -------------- -------------- -------------- TOTAL BOK FINANCIAL $ 11,279,698 $ 11,611,564 $ 12,069,9284 $ 12,639,916 $ 12,876,006 ============= ============== ============== ============== ==============
DEPOSITS BY PRINCIPAL MARKET AREA - UNAUDITED BOK FINANCIAL CORPORATION (In thousands) Quarter Ended ------------------------------------------------------------------------------------- December 31, September 30, June 30, March 31, December 31, 2009 2009 2009 2009 2008 ------------- -------------- -------------- -------------- -------------- Oklahoma: Demand $ 2,068,908 $ 1,895,980 $ 1,451,057 $ 1,651,111 $ 1,683,374 Interest-bearing: Transaction 5,134,902 4,566,058 4,374,089 4,089,838 4,117,729 Savings 93,006 93,443 94,048 95,827 86,476 Time 1,397,240 1,765,980 2,033,312 2,876,313 3,104,933 ------------- -------------- -------------- -------------- -------------- Total interest-bearing 6,625,148 6,425,481 6,501,449 7,061,978 7,309,138 ------------- -------------- -------------- -------------- -------------- Total Oklahoma 8,694,056 8,321,461 7,952,506 8,713,089 8,992,512 ------------- -------------- -------------- -------------- -------------- Texas: Demand 1,108,401 1,138,794 1,002,266 1,021,424 1,067,456 Interest-bearing: Transaction 1,748,319 1,716,460 1,660,642 1,527,399 1,460,576 Savings 35,129 35,724 33,992 33,867 32,071 Time 1,100,602 1,007,579 1,035,919 1,054,632 857,416 ------------- -------------- -------------- -------------- -------------- Total interest-bearing 2,884,050 2,759,763 2,730,553 2,615,898 2,350,063 ------------- -------------- -------------- -------------- -------------- Total Texas 3,992,451 3,898,557 3,732,819 3,637,322 3,417,519 ------------- -------------- -------------- -------------- -------------- New Mexico: Demand 209,090 216,330 175,033 180,308 155,345 Interest-bearing: Transaction 444,247 424,528 434,498 401,000 397,382 Savings 17,563 18,039 18,255 17,858 16,289 Time 510,202 511,507 542,388 561,300 522,894 ------------- -------------- -------------- -------------- -------------- Total interest-bearing 972,012 954,074 995,141 980,158 936,565 ------------- -------------- -------------- -------------- -------------- Total New Mexico 1,181,102 1,170,404 1,170,174 1,160,466 1,091,910 ------------- -------------- -------------- -------------- -------------- Arkansas: Demand 21,526 19,077 17,261 16,503 16,293 Interest-bearing: Transaction 50,879 85,061 73,972 63,924 38,566 Savings 1,346 1,131 1,031 1,100 1,083 Time 101,839 137,109 162,505 150,015 75,579 ------------- -------------- -------------- -------------- -------------- Total interest-bearing 154,064 223,301 237,508 215,039 115,228 ------------- -------------- -------------- -------------- -------------- Total Arkansas 175,590 242,378 254,769 231,542 131,521 ------------- -------------- -------------- -------------- -------------- Colorado: Demand 146,929 121,555 113,895 111,048 116,637 Interest-bearing: Transaction 448,846 477,418 445,521 466,276 480,113 Savings 17,802 18,518 18,144 18,905 17,660 Time 525,844 520,906 579,709 584,971 532,475 ------------- -------------- -------------- -------------- -------------- Total interest-bearing 992,492 1,016,842 1,043,374 1,070,152 1,030,248 ------------- -------------- -------------- -------------- -------------- Total Colorado 1,139,421 1,138,397 1,157,269 1,181,200 1,146,885 ------------- -------------- -------------- -------------- -------------- Arizona: Demand 68,651 54,046 55,975 54,362 39,424 Interest-bearing: Transaction 81,909 95,242 89,842 66,809 56,985 Savings 958 971 1,282 970 1,014 Time 60,768 56,809 59,775 54,923 34,290 ------------- -------------- -------------- -------------- -------------- Total interest-bearing 143,635 153,022 150,899 122,702 92,289 ------------- -------------- -------------- -------------- -------------- Total Arizona 212,286 207,068 206,874 177,064 131,713 ------------- -------------- -------------- -------------- -------------- Kansas / Missouri: Demand 30,339 16,406 9,692 16,140 3,850 Interest-bearing: Transaction 21,337 15,682 12,907 11,976 10,999 Savings 148 70 54 117 42 Time 71,498 84,923 158,325 141,505 55,656 ------------- -------------- -------------- -------------- -------------- Total interest-bearing 92,983 100,675 171,286 153,598 66,697 ------------- -------------- -------------- -------------- -------------- Total Kansas / Missouri 123,322 117,081 180,978 169,738 70,547 ------------- -------------- -------------- -------------- -------------- TOTAL BOK FINANCIAL $ 15,518,228 $ 15,095,346 $ 14,655,3896 $ 15,270,421 $ 14,982,607 ============= ============== ============== ============== ==============
NET INTEREST MARGIN TREND - UNAUDITED BOK FINANCIAL CORPORATION Quarter Ended --------------------------------------------------------------------------------- December 31, September 30, June 30, March 31, December 31, 2009 2009 2009 2009 2008 ------------- -------------- -------------- -------------- ------------- TAX-EQUIVALENT ASSETS YIELDS Trading securities 5.41% 4.72% 3.49% 3.69% 6.55% Funds sold and resell agreements 0.21% 0.11% 0.19% 0.24% 0.76% Securities: Taxable 3.83% 4.18% 4.50% 4.90% 5.12% Tax-exempt 5.16% 5.03% 5.69% 6.64% 6.43% ------------- -------------- -------------- -------------- ------------- Total securities 3.87% 4.21% 4.54% 4.96% 5.17% Total loans 4.70% 4.67% 4.64% 4.56% 5.27% Less Allowance for loan losses - - - - - ------------- -------------- -------------- -------------- ------------- Total loans, net 4.82% 4.78% 4.74% 4.65% 5.35% ------------- -------------- -------------- -------------- ------------- Total tax-equivalent yield on earning assets 4.42% 4.54% 4.65% 4.75% 5.28% COST OF INTEREST-BEARING LIABILITIES Interest-bearing deposits: Interest-bearing transaction 0.57% 0.65% 0.78% 0.95% 1.51% Savings 0.47% 0.48% 0.25% 0.28% 0.37% Time 1.95% 2.20% 2.48% 2.83% 3.28% ------------- -------------- -------------- -------------- ------------- Total interest-bearing deposits 1.03% 1.23% 1.49% 1.76% 2.29% Funds purchased and repurchase agreements 0.30% 0.32% 0.35% 0.45% 0.94% Other borrowings 0.29% 0.38% 0.49% 0.58% 1.51% Subordinated debt 5.52% 5.53% 5.67% 5.67% 5.48% ------------- -------------- -------------- -------------- ------------- Total cost of interest-bearing liabilities 0.94% 1.09% 1.31% 1.50% 2.02% ------------- -------------- -------------- -------------- ------------- Tax-equivalent net interest revenue spread 3.48% 3.45% 3.34% 3.25% 3.26% Effect of noninterest-bearing funding sources and other 0.16% 0.18% 0.21% 0.22% 0.31% ------------- -------------- -------------- -------------- ------------- Tax-equivalent net interest margin 3.64% 3.63% 3.55% 3.47% 3.57% ============= ============== ============== ============== =============
CREDIT QUALITY INDICATORS BOK FINANCIAL CORPORATION (In thousands, except ratios) Quarter Ended ---------------------------------------------------------------------------------- December 31, September 30, June 30, March 31, December 31, 2009 2009 2009 2009 2008 ------------- -------------- -------------- -------------- ------------- Nonperforming assets: Nonaccruing loans (B): Commercial $ 101,384 $ 128,266 $ 126,510 $ 128,501 $ 134,846 Commercial real estate 204,924 212,418 189,586 175,487 137,279 Residential mortgage 29,989 38,220 35,860 34,182 27,387 Consumer 3,058 3,897 1,037 1,065 561 ------------- -------------- -------------- -------------- ------------- Total nonaccruing loans $ 339,355 $ 382,801 $ 352,993 $ 339,235 $ 300,073 Renegotiated loans (A) 15,906 17,426 17,479 13,623 13,039 Real estate and other repossessed assets 129,034 89,507 75,243 61,383 29,179 ------------- -------------- -------------- -------------- ------------- Total nonperforming assets $ 484,295 $ 489,734 $ 445,715 $ 414,241 $ 342,291 ============= ============== ============== ============== ============= Nonaccruing loans by principal market (B): Oklahoma $ 83,176 $ 112,610 $ 108,490 $ 105,536 $ 108,367 Texas 66,892 65,911 51,582 55,225 42,934 New Mexico 26,693 35,541 29,640 18,046 16,016 Arkansas 13,820 5,911 3,888 4,078 3,263 Colorado 60,082 50,432 45,794 38,567 32,415 Arizona 84,559 108,161 106,076 111,772 80,994 Kansas 4,133 4,235 7,523 6,011 16,084 ------------- -------------- -------------- -------------- ------------- Total nonaccruing loans $ 339,355 $ 382,801 $ 352,993 $ 339,235 $ 300,073 ============= ============== ============== ============== ============= Nonaccruing loans by loan portfolio sector (B): Commercial: Energy $ 22,692 $ 48,992 $ 53,842 $ 49,618 $ 49,364 Manufacturing 15,765 17,429 16,975 18,248 7,343 Wholesale / retail 12,057 7,623 10,983 8,650 18,773 Agriculture 65 98 105 115 680 Services 30,926 30,094 24,713 30,226 36,873 Healthcare 13,103 13,758 14,222 14,288 12,118 Other 6,776 10,272 5,670 7,356 9,695 ------------- -------------- -------------- -------------- ------------- Total commercial 101,384 128,266 126,510 128,501 134,846 Commercial real estate: Land development and construction 109,779 113,868 97,425 99,922 76,082 Retail 26,236 22,254 17,474 9,893 15,625 Office 25,861 31,406 27,685 23,305 7,637 Multifamily 26,540 28,223 27,827 27,198 24,950 Industrial 279 527 527 575 6,287 Other commercial real estate 16,229 16,140 18,648 14,594 6,698 ------------- -------------- -------------- -------------- ------------- Total commercial real estate 204,924 212,418 189,586 175,487 137,279 Residential mortgage: Permanent mortgage 28,314 36,431 34,149 32,848 26,233 Home equity 1,675 1,789 1,711 1,334 1,154 ------------- -------------- -------------- -------------- ------------- Total residential mortgage 29,989 38,220 35,860 34,182 27,387 Consumer 3,058 3,897 1,037 1,065 561 ------------- -------------- -------------- -------------- ------------- Total nonaccruing loans $ 339,355 $ 382,801 $ 352,993 $ 339,235 $ 300,073 ============= ============== ============== ============== ============= - - - - - Performing loans 90 days past due $ 10,308 $ 24,238 $ 32,479 $ 46,123 $ 19,123 Gross charge-offs $ 37,974 $ 38,581 $ 37,409 $ 34,535 $ 35,681 Recoveries 2,950 2,594 2,472 2,664 2,022 ------------- -------------- -------------- -------------- ------------- Net charge-offs $ 35,024 $ 35,987 $ 34,937 $ 31,871 $ 33,659 ============= ============== ============== ============== ============= Provision for credit losses $ 48,620 $ 55,120 $ 47,120 $ 45,040 $ 73,001 Reserve for loan losses to period end loans 2.59% 2.42% 2.18% 1.99% 1.81% Combined reserves for credit losses to period end loans 2.72% 2.52% 2.27% 2.07% 1.93% Nonperforming assets to period end loans and repossessed assets 4.24% 4.19% 3.67% 3.26% 2.65% Net charge-offs (annualized) to average loans 1.22% 1.21% 1.13% 1.00% 1.05% Reserve for loan losses to nonaccruing loans 86.07% 73.38% 74.59% 73.99% 77.73% Combined reserves for credit losses to nonaccruing loans 90.31% 76.51% 77.55% 77.11% 82.78% (A) includes residential mortgage loans guaranteed by$ 12,799 $ 11,234 $ 11,079 $ 10,514 $ 10,396 agencies of the U.S. government. These loans have been modified to extend payment terms and/or reduce interest rates to current market. (B) includes loans subject to First United Bank sellers escrow $ 4,311 $ 4,173 $ 8,305 $ 11,287 $ 13,181
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