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BOK Financial Reports Quarterly Earnings of $66 Million

TULSA, Okla., July 27, 2016 (GLOBE NEWSWIRE) -- BOK Financial Corporation (NASDAQ:BOKF) reported net income of $65.8 million or $1.00 per diluted share for the second quarter of 2016. Net income was $42.6 million or $0.64 per diluted share for the first quarter of 2016 and $79.2 million or $1.15 per diluted share for the second quarter of 2015.

Steven G. Bradshaw, president and chief executive officer, stated, “It was a solid quarter for the company, with very strong loan growth and record fee and commission revenue led by brokerage and trading, fiduciary and asset management, and transaction processing. In addition, stability in the commodity price environment translated into lower credit costs for the quarter and reduced concern about spillover impact on the economies in energy states such as Oklahoma, Texas, and Colorado. We continue to see strong growth opportunities across our footprint, and reflecting our confidence, we continued with our stock buyback program during the quarter."

Stacy Kymes, executive vice president, Corporate Banking, added, "We continue to be fully committed to the energy business and our energy customers. During the quarter we provided $172 million of new loan commitments to 20 new borrowers in the industry, and year to date we have provided $254 million of new loan commitments to 35 new borrowers. Energy lending is core to our DNA, and our experience in previous commodity cycles has shown that is a profitable business, and when approached in a consistent and disciplined manner, losses during down cycles are manageable. This long term view has served us well, and today we remain well-positioned in the industry with a complete service offering, world-class energy lending team, and enviable customer base."

Second Quarter 2016 Highlights

  • Net interest revenue totaled $182.6 million for the second quarter of 2016, unchanged compared to the first quarter of 2016. Net interest margin was 2.63 percent for the second quarter of 2016, compared to 2.65 percent for the first quarter of 2016. Average earning assets increased $246 million during the second quarter of 2016, primarily related to a $271 million increase in average loan balances.

  • Fees and commissions revenue totaled $183.5 million for the second quarter of 2016, an increase of $17.9 million over the prior quarter. Brokerage and trading revenue was up $7.2 million and mortgage banking revenue grew by $3.8 million. Fiduciary and asset management revenue increased $2.8 million and transaction card revenue increased $2.6 million.

  • Changes in the fair value of mortgage servicing rights, net of economic hedges, decreased pre-tax net income by $1.2 million in the second quarter of 2016 and decreased pre-tax net income $11.4 million in the first quarter of 2016. Hedge coverage was increased during the second quarter.

  • Operating expense was $254.7 million for the second quarter, an increase of $9.8 million over the previous quarter. Personnel expense increased $6.6 million, primarily due to revenue-driven incentive compensation. Non-personnel expense increased $3.2 million. Mortgage banking expense, professional fees and services expense, intangible asset amortization and business promotion expense increased over the prior quarter. Non-personnel expense in the first quarter of 2016 included $6.8 million of expense related to several litigation accruals and a post-acquisition valuation adjustment.

  • A $20.0 million provision for credit losses was recorded in the second quarter of 2016 compared to a $35.0 million provision in the first quarter of 2016. The decrease in the provision for credit losses was due to improving credit metric trends, largely driven by energy price stability. Net loans charged off totaled $7.5 million in the second quarter of 2016, compared to $22.5 million in the previous quarter.

  • The combined allowance for credit losses totaled $252 million or 1.54 percent of outstanding loans at June 30, 2016 compared to $240 million or 1.50 percent of outstanding loans at March 31, 2016. The portion of the combined allowance attributed to the energy portfolio totaled 3.58 percent of outstanding energy loans at June 30, 2016, an increase from 3.19 percent of outstanding energy loans at March 31, 2016.

  • Nonperforming assets that are not guaranteed by U.S. government agencies totaled $251 million or 1.55 percent of outstanding loans and repossessed assets (excluding those guaranteed by U.S. government agencies) at June 30, 2016 and $252 million or 1.59 percent of outstanding loans and repossessed assets (excluding those guaranteed by U.S. government agencies) at March 31, 2016. Nonperforming energy loans increased $8.6 million during the second quarter.

  • Average loans increased by $271 million over the previous quarter, primarily due to an increase in commercial real estate loans. Period-end outstanding loan balances increased $384 million to $16.4 billion at June 30, 2016. Commercial loans increased $68.0 million as growth across most loan classes was partially offset by a $210.8 million decrease in outstanding energy loans.

  • Average deposits decreased $159 million compared to the previous quarter primarily due to decreased interest-bearing transaction account balances. Growth in demand deposit balances was offset by a decrease in time deposits. Period-end deposits were $20.8 billion at June 30, 2016, an increase of $341 million from March 31, 2016.

  • The common equity Tier 1 capital ratio at June 30, 2016 was 11.86 percent. Other regulatory capital ratios were Tier 1 capital ratio, 11.86 percent, total capital ratio, 13.51 percent and leverage ratio, 9.06 percent. At March 31, 2016, the common equity Tier 1 capital ratio was 12.00 percent, the Tier 1 capital ratio was 12.00 percent, total capital ratio was 13.21 percent, and leverage ratio was 9.12 percent. The total capital ratio was supported by the issuance of $150 million of 40 year, fixed rate subordinated debt during the second quarter.

  • The company paid a regular quarterly cash dividend of $28 million or $0.43 per common share during the second quarter of 2016. On July 26, 2016, the board of directors approved a quarterly cash dividend of $0.43 per common share payable on or about August 26, 2016 to shareholders of record as of August 12, 2016.

  • The company repurchased 305,169 common shares at an average price of $58.23 per share during the second quarter of 2016. No shares were repurchased during the first quarter of 2016.

Net Interest Revenue

Net interest revenue was $182.6 million for the second quarter of 2016, unchanged compared to the first quarter of 2016.

Net interest margin was 2.63 percent for the second quarter of 2016, a decrease of 2 basis points compared to the first quarter of 2016. The yield on average earning assets was 2.91 percent, a decrease of 1 basis point. The loan portfolio yield increased 1 basis point to 3.58 percent. The yield on the available for sale securities portfolio decreased 4 basis points to 2.04 percent. In addition, the yield on average earning assets decreased 1 basis point due to a governmental policy decision to reduce dividends paid on Federal Reserve Bank stock. Funding costs were 0.41 percent, up 1 basis point.

Average earning assets increased $246 million during the second quarter of 2016. Average loan balances increased $271 million, primarily due to growth in commercial real estate balances. Average interest-bearing deposit balances decreased $215 million compared to the first quarter of 2016. The average balance of borrowed funds increased $399 million.

Fees and Commissions Revenue

Fees and commissions revenue totaled $183.5 million for the second quarter of 2016, an increase of $17.9 million over the first quarter of 2016.

Brokerage and trading revenue increased $7.2 million. Customer hedging revenue increased $4.6 million primarily due to increased volumes of contracts with our mortgage banking and energy customers. Investment banking revenue grew by $2.9 million primarily due to growth in loan syndication fees and bond underwriting fees, which are both dependent on the timing and volume of completed transactions.

Mortgage banking revenue totaled $38.2 million for the second quarter of 2016, a $3.8 million increase over the first quarter of 2016. Revenue from mortgage loan production increased $3.4 million due to growth in the volume of mortgage loans sold and mortgage loan commitments during the quarter. Average primary mortgage interest rates were 15 basis points lower than in the first quarter of 2016. Total mortgage loans originated during the second quarter increased $575 million or 46 percent over the prior quarter. Outstanding mortgage loan commitments at June 30 increased $63 million or 7 percent over March 31.

Fiduciary and asset management revenue increased $2.8 million largely due to an annual assessment of tax preparation fees and growth in assets under management. Transaction card revenue increased $2.6 million primarily due to a seasonal increase in transaction volumes along with a customer early termination fee.

Operating Expense

Total operating expense was $254.7 million for the second quarter of 2016, an increase of $9.8 million over the first quarter of 2016.

Personnel expense increased by $6.6 million over the first quarter of 2016 primarily due to an increase in incentive compensation expense. Revenue-driven cash-based incentive compensation increased $4.5 million. Share-based compensation expense increased $1.7 million primarily due to an increase in BOKF stock price. In addition, increased regular compensation expense and employee healthcare costs were offset by a decrease in payroll tax expense.

Non-personnel expense increased $3.2 million over the first quarter of 2016. Mortgage banking expense increased $3.4 million primarily from increased prepayments of loans serviced for others due to lower mortgage interest rates. Professional fees and services expense increased $2.4 million due largely to the annual cost of wealth management customer tax preparation services and costs incurred in preparation for the mobank acquisition. Business promotion expense had a seasonal increase of $1.0 million over the prior quarter. The $1.5 million increase in intangible asset amortization expense was from an adjustment to a consolidated merchant-banking investment.

Other expense decreased $7.2 million compared to the prior quarter. The first quarter of 2016 included $4.1 million of litigation accruals and a $2.7 million post-acquisition valuation adjustment to a consolidated merchant banking investment.

Loans, Deposits and Capital

Loans

Outstanding loans were $16.4 billion at June 30, 2016, an increase of $384 million over the previous quarter, primarily due to growth in commercial real estate. Personal, commercial and residential mortgage loan balances also grew over the prior quarter.

Outstanding commercial loan balances increased $68 million over March 31, 2016. Service sector loans increased $102 million and wholesale/retail sector loans increased $81 million. Healthcare sector loans grew by $56 million and other commercial and industrial loans increased $45 million. As expected, energy loan balances decreased $211 million compared to March 31, 2016. Unfunded energy loan commitments decreased by $161 million during the second quarter to $1.9 billion.

Commercial real estate loans grew by $211 million over March 31, 2016. Loans secured by industrial facilities grew by $81 million primarily in the Oklahoma, Texas and Arizona markets. Loans secured by office buildings increased $74 million primarily in the Texas and Arizona markets. Multifamily residential loans increased $54 million. Growth in other commercial real estate balances was offset by a decrease in retail sector and residential construction and land development loan balances.

Deposits

Period-end deposits totaled $20.8 billion at June 30, 2016, an increase of $341 million over March 31, 2016. Demand deposit balances grew by $474 million, partially offset by a $94 million decrease in time deposits and a $41 million decrease in interest-bearing transaction deposit balances. Among the lines of business, Wealth Management deposits grew by $522 million over March 31, 2016. Consumer Banking deposits decreased $89 million and Commercial Banking deposits decreased $62 million. The overall decrease in Commercial Banking deposits was due to decreased balances held by our commercial and industrial customers, partially offset by increases in balances held by our energy, commercial real estate and small business customers.

Capital

The company's common equity Tier 1 capital ratio was 11.86 percent at June 30, 2016. In addition, the company's Tier 1 capital ratio was 11.86 percent, total capital ratio was 13.51 percent and leverage ratio was 9.06 percent at June 30, 2016. At March 31, 2016, the company's common equity Tier 1 capital ratio was 12.00 percent, Tier 1 capital ratio was 12.00 percent, total capital ratio was 13.21 percent, and leverage ratio was 9.12 percent.

During the second quarter BOK Financial issued $150 million of 40 year, 5.375 percent fixed rate subordinated debt. The debt is callable at any time after 5 years. Proceeds of the debt increased the total capital ratio by 60 basis points.

The company's tangible common equity ratio, a non-GAAP measure, was 9.33 percent at June 30, 2016 and 9.34 percent at March 31, 2016. The tangible common equity ratio is primarily based on total shareholders' equity which includes unrealized gains and losses on available for sale securities. The company has elected to exclude unrealized gains and losses from available for sale securities from its calculation of Tier 1 capital for regulatory capital purposes, consistent with the treatment under the previous capital rules.

Credit Quality

Nonperforming assets totaled $350 million or 2.13 percent of outstanding loans and repossessed assets at June 30, 2016 compared to $349 million or 2.18 percent at March 31, 2016. Nonperforming assets that are not guaranteed by U.S. government agencies totaled $251 million or 1.55 percent of outstanding loans and repossessed assets (excluding those guaranteed by U.S. government agencies) at June 30, 2016 compared to $252 million or 1.59 percent at March 31, 2016.

Nonaccruing loans totaled $247 million or 1.51 percent of outstanding loans at June 30, 2016, compared to $242 million or 1.51 percent of outstanding loans at March 31, 2016. The increase in nonaccruing loans was primarily due to an $8.6 million increase in nonaccruing energy loans. New nonaccruing loans identified in the second quarter totaled $33 million, offset by $12 million in payments received, $8.8 million in charge-offs and $3.2 million in foreclosures and repossessions. At June 30, 2016, nonaccruing commercial loans totaled $182 million or 1.76 percent of outstanding commercial loans, nonaccruing commercial real estate loans totaled $7.8 million or 0.22 percent of outstanding commercial real estate loans and nonaccruing residential mortgage loans totaled $57 million or 3.03 percent of outstanding residential mortgage loans.

Potential problem loans, which are defined as performing loans that based on known information cause management concern as to the borrowers' ability to continue to perform, increased to $501 million at June 30 from $460 million at March 31. The increase largely resulted from an $18 million increase in potential problem energy loans.

Net loans charged off totaled $7.5 million for the second quarter of 2016, compared to $22.5 million in the first quarter of 2016. Gross charge-offs totaled $8.8 million for the second quarter, compared to $24.0 million for the previous quarter. Charge-offs in both the second and first quarters largely came from the energy loan portfolio. Recoveries totaled $1.4 million for the second quarter of 2016 and $1.5 million for the first quarter of 2016.

After evaluating all credit factors, the company recorded a $20.0 million provision for credit losses during the second quarter of 2016. The company recorded a $35.0 million provision for credit losses in the previous quarter. The lower provision reflects improvement in credit metrics over the previous quarter, largely driven by energy price stability and decreased rates of newly identified nonaccruing and potential problem loans.

The combined allowance for credit losses totaled $252 million or 1.54 percent of outstanding loans and 111 percent of nonaccruing loans at June 30, 2016. The allowance for loan losses was $243 million and the accrual for off-balance sheet credit losses was $9.0 million.

Energy Portfolio Credit Quality

The company's $2.8 billion energy portfolio consists of 79 percent of loans to exploration and production companies, 9 percent to energy services companies and 12 percent to midstream and other energy borrowers. Substantially all of the loans to exploration and production companies are secured by first lien positions in established energy reserves. Only $10 million of these loans are in junior lien positions. None represent higher-risk mezzanine financing or subordinated debt and none are high-yield debt.

The company completed an energy loan portfolio redetermination during the second quarter. The redetermination supported that $136 million of impaired energy loans required no allowance for credit losses based on the adequacy of collateral, including $123 million that are current on all payments due. At June 30, 2016, the portion of the combined allowance for credit losses attributed to the energy portfolio totaled $101 million or 3.58 percent of outstanding energy loans.

Marc Maun, chief credit officer, noted, "We are pleased to see energy asset quality stabilize in the second quarter. Total criticized energy loans decreased from the first quarter and charge-offs were down significantly. We recognize that macroeconomic factors may result in additional pressure on commodity prices but we are pleased with how our portfolio has performed through the extended energy downturn."

Securities and Derivatives

The fair value of the available for sale securities portfolio totaled $8.8 billion at June 30, 2016, a $55 million decrease compared to March 31, 2016. At June 30, 2016, the available for sale portfolio consisted primarily of $5.7 billion of residential mortgage-backed securities fully backed by U.S. government agencies and $2.9 billion of commercial mortgage-backed securities fully backed by U.S. government agencies.

At June 30, 2016, the available for sale securities portfolio had a net unrealized gain of $195 million compared to a net unrealized gain of $155 million at March 31, 2016. The increase in net unrealized gain was primarily due to changes in interest rates during the quarter. Net unrealized gains on residential mortgage-backed securities issued by U.S. government agencies at June 30, 2016 increased $19 million during the second quarter to $123 million. Commercial mortgage-backed securities had a net unrealized gain of $58 million at June 30, 2016, up from $38 million at March 31, 2016.

In the second quarter of 2016, the company recognized $5.3 million of net gains from sales of $326 million of available for sale securities. Securities were sold either because they had reached their expected maximum potential return or to move into securities that will perform better in the current rate environment. The company recognized $4.0 million of net gains from sales of $469 million of available for sale securities in the first quarter of 2016.

The company also maintains a portfolio of residential mortgage-backed securities issued by U.S. government agencies and interest rate derivative contracts as an economic hedge of the changes in the fair value of our mortgage servicing rights. Changes in the fair value of mortgage servicing rights are highly dependent on primary mortgage interest rates offered to borrowers and other factors. Changes in the fair value of securities and interest rate derivatives are highly dependent on secondary mortgage rates, or rates required by investors. Changes in the spread between primary and secondary mortgage rates cannot be effectively hedged and can cause significant earnings volatility.

The fair value of mortgage servicing rights decreased by $16.3 million during the second quarter of 2016 as primary mortgage rates fell during the quarter. The fair value of securities and interest rate derivative contracts held as an economic hedge increased by $15.0 million during the quarter due to a decrease in average secondary mortgage and interest rate swap rates. Hedge coverage was increased during the second quarter to improve its effectiveness. The fair value of mortgage servicing rights, net of economic hedges, decreased $11.4 million in the first quarter of 2016, primarily due to falling primary residential mortgage interest rates and we narrowed the forward-looking spread between primary mortgage interest rates and yields on mortgage-backed securities.

Conference Call and Webcast

The company will hold a conference call at 9 a.m. Central time on Wednesday, July 27, 2016 to discuss the financial results with investors. The live audio webcast and presentation slides will be available on the company’s website at www.bokf.com. The conference call can also be accessed by dialing 1-412-902-6611. A conference call and webcast replay will also be available shortly after conclusion of the live call at www.bokf.com or by dialing 1-412-317-0088 and referencing conference ID # 10088478.

About BOK Financial Corporation

BOK Financial Corporation is a $32 billion regional financial services company based in Tulsa, Oklahoma. The company's stock is publicly traded on NASDAQ under the Global Select market listings (symbol: BOKF). BOK Financial's holdings include BOKF, NA, BOK Financial Securities, Inc. and The Milestone Group, Inc. BOKF, NA operates TransFund, Cavanal Hill Investment Management, BOK Financial Asset Management, Inc. and seven banking divisions: Bank of Albuquerque, Bank of Arizona, Bank of Arkansas, Bank of Kansas City, Bank of Oklahoma, Bank of Texas and Colorado State Bank and Trust. Through its subsidiaries, the company provides commercial and consumer banking, investment and trust services, mortgage origination and servicing, and an electronic funds transfer network. For more information, visit www.bokf.com.

The company will continue to evaluate critical assumptions and estimates, such as the appropriateness of the allowance for credit losses and asset impairment as of June 30, 2016 through the date its financial statements are filed with the Securities and Exchange Commission and will adjust amounts reported if necessary.

This news release contains forward-looking statements that are based on management's beliefs, assumptions, current expectations, estimates and projections about BOK Financial, the financial services industry and the economy generally. Words such as “anticipates,” “believes,” “estimates,” “expects,” “forecasts,” “plans,” “projects,” “will,” “intends,” variations of such words and similar expressions are intended to identify such forward-looking statements. Management judgments relating to and discussion of the provision and allowance for credit losses, allowance for uncertain tax positions, accruals for loss contingencies and valuation of mortgage servicing rights involve judgments as to expected events and are inherently forward-looking statements. Assessments that BOK Financial's acquisitions and other growth endeavors will be profitable are necessary statements of belief as to the outcome of future events based in part on information provided by others which BOK Financial has not independently verified. These statements are not guarantees of future performance and involve certain risks, uncertainties, and assumptions which are difficult to predict with regard to timing, extent, likelihood and degree of occurrence. Therefore, actual results and outcomes may materially differ from what is expected, implied or forecasted in such forward-looking statements. Internal and external factors that might cause such a difference include, but are not limited to changes in commodity prices, interest rates and interest rate relationships, demand for products and services, the degree of competition by traditional and nontraditional competitors, changes in banking regulations, tax laws, prices, levies and assessments, the impact of technological advances, and trends in customer behavior as well as their ability to repay loans. BOK Financial and its affiliates undertake no obligation to update, amend or clarify forward-looking statements, whether as a result of new information, future events, or otherwise.

BALANCE SHEETS -- UNAUDITED
BOK FINANCIAL CORPORATION
(In thousands)
June 30, 2016 Mar. 31, 2016 June 30, 2015
ASSETS
Cash and due from banks $498,713 $481,510 $443,577
Interest-bearing cash and cash equivalents 1,907,838 1,831,162 2,119,072
Trading securities 211,622 279,539 158,209
Investment securities 560,711 576,047 625,664
Available for sale securities 8,830,689 8,886,036 9,000,117
Fair value option securities 263,265 418,887 436,324
Restricted equity securities 319,639 314,590 231,520
Residential mortgage loans held for sale 430,728 332,040 502,571
Loans:
Commercial 10,356,437 10,288,425 9,775,721
Commercial real estate 3,581,966 3,370,507 3,033,497
Residential mortgage 1,880,923 1,869,309 1,884,728
Personal 587,423 494,325 430,190
Total loans 16,406,749 16,022,566 15,124,136
Allowance for loan losses (243,259) (233,156) (201,087)
Loans, net of allowance 16,163,490 15,789,410 14,923,049
Premises and equipment, net 315,199 311,161 284,238
Receivables 173,638 167,209 149,629
Goodwill 382,739 383,789 385,454
Intangible assets, net 43,372 44,944 46,061
Mortgage servicing rights 190,747 196,055 198,694
Real estate and other repossessed assets, net 24,054 29,896 35,499
Derivative contracts, net 883,673 790,146 630,435
Cash surrender value of bank-owned life insurance 307,860 305,510 298,606
Receivable on unsettled securities sales 142,820 5,640 8,693
Other assets 319,653 270,374 248,151
TOTAL ASSETS $31,970,450 $31,413,945 $30,725,563
LIABILITIES AND EQUITY
Deposits:
Demand $8,424,609 $7,950,675 $8,156,401
Interest-bearing transaction 9,668,869 9,709,766 9,899,777
Savings 419,262 416,505 379,172
Time 2,247,061 2,341,374 2,624,379
Total deposits 20,759,801 20,418,320 21,059,729
Funds purchased 56,780 62,755 64,677
Repurchase agreements 472,683 630,101 712,033
Other borrowings 5,830,736 5,633,862 4,332,162
Subordinated debentures 371,812 226,385 226,278
Accrued interest, taxes and expense 197,742 148,711 124,568
Due on unsettled securities purchases 11,757 19,508 37,571
Derivative contracts, net 719,159 705,578 620,277
Other liabilities 147,242 212,460 135,435
TOTAL LIABILITIES 28,567,712 28,057,680 27,312,730
Shareholders' equity:
Capital, surplus and retained earnings 3,251,201 3,228,446 3,323,840
Accumulated other comprehensive income 117,632 93,109 51,792
TOTAL SHAREHOLDERS' EQUITY 3,368,833 3,321,555 3,375,632
Non-controlling interests 33,905 34,710 37,201
TOTAL EQUITY 3,402,738 3,356,265 3,412,833
TOTAL LIABILITIES AND EQUITY $31,970,450 $31,413,945 $30,725,563


AVERAGE BALANCE SHEETS -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands)
Three Months Ended
June 30, 2016 Mar. 31, 2016 Dec. 31, 2015 Sept. 30, 2015 June 30, 2015
ASSETS
Interest-bearing cash and cash equivalents $2,022,028 $2,052,840 $1,995,945 $2,038,611 $2,002,456
Trading securities 237,808 188,100 150,402 179,098 127,391
Investment securities 562,391 587,465 602,369 616,091 628,489
Available for sale securities 8,890,112 8,951,435 8,971,090 8,942,261 9,063,006
Fair value option securities 368,434 450,478 435,449 429,951 435,294
Restricted equity securities 319,136 294,529 262,461 255,610 221,911
Residential mortgage loans held for sale 401,114 289,743 310,425 401,359 464,269
Loans:
Commercial 10,265,782 10,268,793 10,024,756 9,685,768 9,634,306
Commercial real estate 3,550,611 3,364,076 3,186,629 3,198,200 2,989,615
Residential mortgage 1,864,458 1,865,742 1,835,195 1,847,696 1,857,464
Personal 582,281 493,382 540,418 460,647 423,967
Total loans 16,263,132 15,991,993 15,586,998 15,192,311 14,905,352
Allowance for loan losses (245,448) (234,116) (207,156) (202,829) (198,400)
Total loans, net 16,017,684 15,757,877 15,379,842 14,989,482 14,706,952
Total earning assets 28,818,707 28,572,467 28,107,983 27,852,463 27,649,768
Cash and due from banks 507,085 505,522 514,629 487,283 492,737
Derivative contracts, net 823,584 632,102 657,780 669,264 475,687
Cash surrender value of bank-owned life insurance 306,318 304,141 301,793 299,424 297,022
Receivable on unsettled securities sales 49,568 115,101 62,228 64,591 94,374
Other assets 1,480,780 1,379,138 1,435,763 1,396,708 1,454,484
TOTAL ASSETS $31,986,042 $31,508,471 $31,080,176 $30,769,733 $30,464,072
LIABILITIES AND EQUITY
Deposits:
Demand $8,162,134 $8,105,756 $8,312,961 $7,994,607 $7,996,717
Interest-bearing transaction 9,590,855 9,756,843 9,527,491 9,760,839 10,063,589
Savings 417,122 397,479 382,284 379,828 381,833
Time 2,297,621 2,366,543 2,482,714 2,557,874 2,651,820
Total deposits 20,467,732 20,626,621 20,705,450 20,693,148 21,093,959
Funds purchased 70,682 112,211 73,220 70,281 63,312
Repurchase agreements 611,264 662,640 623,921 672,085 773,977
Other borrowings 6,076,028 5,583,917 4,957,175 4,779,981 4,001,479
Subordinated debentures 232,795 226,368 226,332 226,296 307,903
Derivative contracts, net 791,313 544,722 632,699 597,908 455,431
Due on unsettled securities purchases 93,812 158,050 248,811 90,135 151,369
Other liabilities 298,170 268,705 251,953 240,704 235,173
TOTAL LIABILITIES 28,641,796 28,183,234 27,719,561 27,370,538 27,082,603
Total equity 3,344,246 3,325,237 3,360,615 3,399,195 3,381,469
TOTAL LIABILITIES AND EQUITY $31,986,042 $31,508,471 $31,080,176 $30,769,733 $30,464,072


STATEMENTS OF EARNINGS -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands, except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
2016 2015 2016 2015
Interest revenue $202,267 $191,813 $404,063 $376,382
Interest expense 19,655 16,082 38,879 32,925
Net interest revenue 182,612 175,731 365,184 343,457
Provision for credit losses 20,000 4,000 55,000 4,000
Net interest revenue after provision for credit losses 162,612 171,731 310,184 339,457
Other operating revenue:
Brokerage and trading revenue 39,530 36,012 71,871 67,719
Transaction card revenue 34,950 32,778 67,304 63,788
Fiduciary and asset management revenue 34,813 32,712 66,869 64,181
Deposit service charges and fees 22,618 22,328 45,160 44,012
Mortgage banking revenue 38,224 36,846 72,654 76,166
Other revenue 13,352 11,871 25,256 22,672
Total fees and commissions 183,487 172,547 349,114 338,538
Other gains, net 1,307 1,457 2,867 2,212
Gain (loss) on derivatives, net 10,766 (1,032) 17,904 (121)
Gain (loss) on fair value option securities, net 4,279 (8,130) 13,722 (5,483)
Change in fair value of mortgage servicing rights (16,283) 8,010 (44,271) (512)
Gain on available for sale securities, net 5,326 3,433 9,290 7,760
Total other-than-temporary impairment losses (781)
Portion of loss recognized in other comprehensive income 689
Net impairment losses recognized in earnings (92)
Total other operating revenue 188,882 176,285 348,626 342,302
Other operating expense:
Personnel 142,490 132,695 278,333 261,243
Business promotion 6,703 7,765 12,399 13,513
Professional fees and services 14,158 9,560 25,917 19,619
Net occupancy and equipment 19,677 18,927 38,443 37,971
Insurance 7,129 5,116 14,394 10,096
Data processing and communications 32,802 30,655 64,819 60,427
Printing, postage and supplies 3,889 3,553 7,796 7,014
Net losses and operating expenses of repossessed assets 1,588 223 2,658 836
Amortization of intangible assets 2,624 1,090 3,783 2,180
Mortgage banking costs 15,809 8,227 28,188 18,394
Other expense 7,856 9,302 22,895 16,085
Total other operating expense 254,725 227,113 499,625 447,378
Net income before taxes 96,769 120,903 159,185 234,381
Federal and state income taxes 30,497 40,630 51,925 79,014
Net income 66,272 80,273 107,260 155,367
Net income (loss) attributable to non-controlling interests 471 1,043 (1,105) 1,294
Net income attributable to BOK Financial Corporation shareholders $65,801 $79,230 $108,365 $154,073
Average shares outstanding:
Basic 65,245,887 68,096,341 65,271,214 68,175,327
Diluted 65,302,927 68,210,353 65,317,177 68,277,386
Net income per share:
Basic $1.00 $1.15 $1.64 $2.23
Diluted $1.00 $1.15 $1.64 $2.23


FINANCIAL HIGHLIGHTS -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands, except ratio and share data)
Three Months Ended
June 30, 2016 Mar. 31, 2016 Dec. 31, 2015 Sept. 30, 2015 June 30, 2015
Capital:
Period-end shareholders' equity $3,368,833 $3,321,555 $3,230,556 $3,377,226 $3,375,632
Risk weighted assets $24,191,016 $23,707,824 $23,429,897 $22,706,537 $22,533,295
Risk-based capital ratios:
Common equity tier 1 11.86% 12.00% 12.13% 12.78% 13.01%
Tier 1 11.86% 12.00% 12.13% 12.78% 13.01%
Total capital 13.51% 13.21% 13.30% 13.89% 14.11%
Leverage ratio 9.06% 9.12% 9.25% 9.55% 9.75%
Tangible common equity ratio1 9.33% 9.34% 9.02% 9.78% 9.72%
Common stock:
Book value per share $51.15 $50.21 $49.03 $49.88 $48.96
Tangible book value per share 44.68 43.73 42.51 43.52 42.70
Market value per share:
High $65.14 $60.16 $74.73 $70.26 $71.66
Low $51.00 $43.74 $58.25 $57.04 $59.59
Cash dividends paid $28,241 $28,294 $28,967 $28,766 $28,841
Dividend payout ratio 42.92% 66.47% 48.60% 38.41% 36.40%
Shares outstanding, net 65,866,317 66,155,103 65,894,032 67,713,031 68,945,139
Stock buy-back program:
Shares repurchased 305,169 1,874,074 1,258,348
Amount $17,771 $ $119,780 $80,276 $
Average price per share $58.23 $ $63.91 $63.79 $
Performance ratios (quarter annualized):
Return on average assets 0.83% 0.54% 0.76% 0.97% 1.04%
Return on average equity 8.00% 5.21% 7.12% 8.84% 9.50%
Net interest margin 2.63% 2.65% 2.64% 2.61% 2.61%
Efficiency ratio 68.45% 69.05% 67.93% 64.34% 64.21%
Reconciliation of non-GAAP measures:
1 Tangible common equity ratio:
Total shareholders' equity $3,368,833 $3,321,555 $3,230,556 $3,377,226 $3,375,632
Less: Goodwill and intangible assets, net 426,111 428,733 429,370 430,460 431,515
Tangible common equity $2,942,722 $2,892,822 $2,801,186 $2,946,766 $2,944,117
Total assets $31,970,450 $31,413,945 $31,476,128 $30,566,905 $30,725,563
Less: Goodwill and intangible assets, net 426,111 428,733 429,370 430,460 431,515
Tangible assets $31,544,339 $30,985,212 $31,046,758 $30,136,445 $30,294,048
Tangible common equity ratio 9.33% 9.34% 9.02% 9.78% 9.72%
Other data:
Fiduciary assets $39,924,734 $39,113,305 $38,333,638 $37,780,669 $38,772,018
Tax equivalent adjustment $4,372 $4,385 $3,222 $3,244 $3,035
Net unrealized gain on available for sale securities $195,385 $155,236 $38,109 $144,884 $89,158
Mortgage banking:
Mortgage servicing portfolio $21,178,387 $20,294,662 $19,678,226 $18,928,726 $17,979,623
Mortgage commitments $965,631 $902,986 $601,147 $742,742 $849,619
Mortgage loans funded for sale $1,818,844 $1,244,015 $1,365,431 $1,614,225 $1,828,230
Mortgage loan refinances to total fundings 44% 49% 41% 30% 40%
Mortgage loans sold $1,742,582 $1,239,391 $1,424,527 $1,778,099 $1,861,968
Net realized gains on mortgage loans sold $19,205 $10,779 $15,705 $18,968 $23,856
Change in net unrealized gain on mortgage loans held for sale 3,221 8,198 (5,615) (251) (743)
Total production revenue 22,426 18,977 10,090 18,717 23,113
Servicing revenue 15,798 15,453 14,949 14,453 13,733
Total mortgage banking revenue $38,224 $34,430 $25,039 $33,170 $36,846
Gain (loss) on mortgage servicing rights, net of economic hedge:
Gain (loss) on mortgage hedge derivative contracts, net $10,766 $7,138 $(732) $1,460 $(1,005)
Gain (loss) on fair value option securities, net 4,279 9,443 (4,127) 5,926 (8,130)
Gain (loss) on economic hedge of mortgage servicing rights 15,045 16,581 (4,859) 7,386 (9,135)
Gain (loss) on changes in fair value of mortgage servicing rights (16,283) (27,988) 7,416 (11,757) 8,010
Gain (loss) on changes in fair value of mortgage servicing rights, net of economic hedges $(1,238) $(11,407) $2,557 $(4,371) $(1,125)
Net interest revenue on fair value option securities $1,348 $2,033 $2,137 $2,140 $1,985


QUARTERLY EARNINGS TREND -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands, except ratio and per share data)
Three Months Ended
June 30, 2016 Mar. 31, 2016 Dec. 31, 2015 Sept. 30, 2015 June 30, 2015
Interest revenue $202,267 $201,796 $196,782 $193,664 $191,813
Interest expense 19,655 19,224 15,521 15,028 16,082
Net interest revenue 182,612 182,572 181,261 178,636 175,731
Provision for credit losses 20,000 35,000 22,500 7,500 4,000
Net interest revenue after provision for credit losses 162,612 147,572 158,761 171,136 171,731
Other operating revenue:
Brokerage and trading revenue 39,530 32,341 30,255 31,582 36,012
Transaction card revenue 34,950 32,354 32,319 32,514 32,778
Fiduciary and asset management revenue 34,813 32,056 31,165 30,807 32,712
Deposit service charges and fees 22,618 22,542 22,813 23,606 22,328
Mortgage banking revenue 38,224 34,430 25,039 33,170 36,846
Other revenue 13,352 11,904 14,233 12,978 11,871
Total fees and commissions 183,487 165,627 155,824 164,657 172,547
Other gains, net 1,307 1,560 2,329 1,161 1,457
Gain (loss) on derivatives, net 10,766 7,138 (732) 1,283 (1,032)
Gain (loss) on fair value option securities, net 4,279 9,443 (4,127) 5,926 (8,130)
Change in fair value of mortgage servicing rights (16,283) (27,988) 7,416 (11,757) 8,010
Gain on available for sale securities, net 5,326 3,964 2,132 2,166 3,433
Total other-than-temporary impairment losses (2,114)
Portion of loss recognized in other comprehensive income 387
Net impairment losses recognized in earnings (1,727)
Total other operating revenue 188,882 159,744 161,115 163,436 176,285
Other operating expense:
Personnel 142,490 135,843 133,182 129,062 132,695
Business promotion 6,703 5,696 8,416 5,922 7,765
Charitable contributions to BOKF Foundation 796
Professional fees and services 14,158 11,759 10,357 10,147 9,560
Net occupancy and equipment 19,677 18,766 19,356 18,689 18,927
Insurance 7,129 7,265 5,415 4,864 5,116
Data processing and communications 32,802 32,017 31,248 30,708 30,655
Printing, postage and supplies 3,889 3,907 3,108 3,376 3,553
Net losses and operating expenses of repossessed assets 1,588 1,070 343 267 223
Amortization of intangible assets 2,624 1,159 1,090 1,089 1,090
Mortgage banking costs 15,809 12,379 11,496 9,107 8,227
Other expense 7,856 15,039 8,547 10,601 9,302
Total other operating expense 254,725 244,900 232,558 224,628 227,113
Net income before taxes 96,769 62,416 87,318 109,944 120,903
Federal and state income taxes 30,497 21,428 26,242 34,128 40,630
Net income 66,272 40,988 61,076 75,816 80,273
Net income (loss) attributable to non-controlling interests 471 (1,576) 1,475 925 1,043
Net income attributable to BOK Financial Corporation shareholders $65,801 $42,564 $59,601 $74,891 $79,230
Average shares outstanding:
Basic 65,245,887 65,296,541 66,378,380 67,668,076 68,096,341
Diluted 65,302,927 65,331,428 66,467,729 67,762,483 68,210,353
Net income per share:
Basic $1.00 $0.64 $0.89 $1.09 $1.15
Diluted $1.00 $0.64 $0.89 $1.09 $1.15


LOANS TREND -- UNAUDITED
BOK FINANCIAL CORPORATION
(In thousands)
June 30, 2016 Mar. 31, 2016 Dec. 31, 2015 Sept. 30, 2015 June 30, 2015
Commercial:
Energy $2,818,656 $3,029,420 $3,097,328 $2,838,167 $2,902,143
Services 2,830,864 2,728,891 2,784,276 2,706,624 2,681,126
Healthcare 2,051,146 1,995,425 1,883,380 1,741,680 1,646,025
Wholesale/retail 1,532,957 1,451,846 1,422,064 1,461,936 1,533,730
Manufacturing 595,403 600,645 556,729 555,677 579,549
Other commercial and industrial 527,411 482,198 508,754 493,338 433,148
Total commercial 10,356,437 10,288,425 10,252,531 9,797,422 9,775,721
Commercial real estate:
Retail 795,419 810,522 796,499 769,449 688,447
Multifamily 787,200 733,689 751,085 758,658 711,333
Office 769,112 695,552 637,707 626,151 563,085
Industrial 645,586 564,467 563,169 563,871 488,054
Residential construction and land development 157,576 171,949 160,426 153,510 148,574
Other commercial real estate 427,073 394,328 350,147 363,428 434,004
Total commercial real estate 3,581,966 3,370,507 3,259,033 3,235,067 3,033,497
Residential mortgage:
Permanent mortgage 969,007 948,405 945,336 937,664 946,324
Permanent mortgages guaranteed by U.S. government agencies 192,732 197,350 196,937 192,712 190,839
Home equity 719,184 723,554 734,620 738,619 747,565
Total residential mortgage 1,880,923 1,869,309 1,876,893 1,868,995 1,884,728
Personal 587,423 494,325 552,697 465,957 430,190
Total $16,406,749 $16,022,566 $15,941,154 $15,367,441 $15,124,136


LOANS BY PRINCIPAL MARKET AREA -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands)
June 30, 2016 Mar. 31, 2016 Dec. 31, 2015 Sept. 30, 2015 June 30, 2015
Bank of Oklahoma:
Commercial $3,698,215 $3,656,034 $3,782,687 $3,514,391 $3,529,406
Commercial real estate 781,458 747,689 739,829 677,372 614,995
Residential mortgage 1,415,766 1,411,409 1,409,114 1,405,235 1,413,690
Personal 246,229 204,158 255,387 185,463 190,909
Total Bank of Oklahoma 6,141,668 6,019,290 6,187,017 5,782,461 5,749,000
Bank of Texas:
Commercial 3,901,632 3,936,809 3,908,425 3,752,193 3,738,742
Commercial real estate 1,311,408 1,211,978 1,204,202 1,257,741 1,158,056
Residential mortgage 222,548 217,539 219,126 222,395 228,683
Personal 233,304 210,456 203,496 194,051 156,260
Total Bank of Texas 5,668,892 5,576,782 5,535,249 5,426,380 5,281,741
Bank of Albuquerque:
Commercial 398,427 402,082 375,839 368,027 392,362
Commercial real estate 322,956 323,059 313,422 312,953 291,953
Residential mortgage 114,226 117,655 120,507 121,232 123,376
Personal 10,569 10,823 11,557 10,477 11,939
Total Bank of Albuquerque 846,178 853,619 821,325 812,689 819,630
Bank of Arkansas:
Commercial 81,227 79,808 92,359 76,044 99,086
Commercial real estate 69,235 66,674 69,320 82,225 85,997
Residential mortgage 6,874 7,212 8,169 8,063 6,999
Personal 7,025 918 819 4,921 5,189
Total Bank of Arkansas 164,361 154,612 170,667 171,253 197,271
Colorado State Bank & Trust:
Commercial 1,076,620 1,030,348 987,076 1,029,694 1,019,454
Commercial real estate 237,569 219,078 223,946 229,835 229,721
Residential mortgage 59,425 52,961 53,782 50,138 54,135
Personal 35,064 24,497 23,384 30,683 30,373
Total Colorado State Bank & Trust 1,408,678 1,326,884 1,288,188 1,340,350 1,333,683
Bank of Arizona:
Commercial 670,814 656,527 606,733 608,235 572,477
Commercial real estate 639,112 605,383 507,523 482,918 472,061
Residential mortgage 38,998 40,338 44,047 41,722 37,493
Personal 24,248 18,372 31,060 17,609 12,875
Total Bank of Arizona 1,373,172 1,320,620 1,189,363 1,150,484 1,094,906
Bank of Kansas City:
Commercial 529,502 526,817 499,412 448,838 424,194
Commercial real estate 220,228 196,646 200,791 192,023 180,714
Residential mortgage 23,086 22,195 22,148 20,210 20,352
Personal 30,984 25,101 26,994 22,753 22,645
Total Bank of Kansas City 803,800 770,759 749,345 683,824 647,905
TOTAL BOK FINANCIAL $16,406,749 $16,022,566 $15,941,154 $15,367,441 $15,124,136
Loans attributed to a geographical region may not always represent the location of the borrower or the collateral.


DEPOSITS BY PRINCIPAL MARKET AREA -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands)
June 30, 2016 March 31, 2016 Dec. 31, 2015 Sept. 30, 2015 June 30, 2015
Bank of Oklahoma:
Demand $4,020,181 $3,813,128 $4,133,520 $3,834,145 $4,068,088
Interest-bearing:
Transaction 5,741,302 5,706,067 5,971,819 5,783,258 6,018,381
Savings 247,984 246,122 226,733 225,580 225,694
Time 1,167,271 1,198,022 1,202,274 1,253,137 1,380,566
Total interest-bearing 7,156,557 7,150,211 7,400,826 7,261,975 7,624,641
Total Bank of Oklahoma 11,176,738 10,963,339 11,534,346 11,096,120 11,692,729
Bank of Texas:
Demand 2,677,253 2,571,883 2,627,764 2,689,493 2,565,234
Interest-bearing:
Transaction 2,035,634 2,106,905 2,132,099 1,996,223 2,020,817
Savings 83,862 83,263 77,902 74,674 74,373
Time 516,231 530,657 549,740 554,106 536,844
Total interest-bearing 2,635,727 2,720,825 2,759,741 2,625,003 2,632,034
Total Bank of Texas 5,312,980 5,292,708 5,387,505 5,314,496 5,197,268
Bank of Albuquerque:
Demand 530,853 557,200 487,286 520,785 508,224
Interest-bearing:
Transaction 573,690 560,684 563,723 529,862 537,156
Savings 49,200 47,187 43,672 41,380 41,802
Time 250,068 259,630 267,821 281,426 285,890
Total interest-bearing 872,958 867,501 875,216 852,668 864,848
Total Bank of Albuquerque 1,403,811 1,424,701 1,362,502 1,373,453 1,373,072
Bank of Arkansas:
Demand 30,607 31,318 27,252 25,397 19,731
Interest-bearing:
Transaction 278,335 265,803 202,857 290,728 284,349
Savings 1,853 1,929 1,747 1,573 1,712
Time 18,911 21,035 24,983 26,203 28,220
Total interest-bearing 299,099 288,767 229,587 318,504 314,281
Total Bank of Arkansas 329,706 320,085 256,839 343,901 334,012
Colorado State Bank & Trust:
Demand 528,124 413,506 497,318 430,675 403,491
Interest-bearing:
Transaction 625,240 610,077 616,697 655,206 601,741
Savings 31,509 33,108 31,927 31,398 31,285
Time 254,164 271,475 296,224 320,279 322,432
Total interest-bearing 910,913 914,660 944,848 1,006,883 955,458
Total Colorado State Bank & Trust 1,439,037 1,328,166 1,442,166 1,437,558 1,358,949
Bank of Arizona:
Demand 396,837 341,828 326,324 306,425 352,024
Interest-bearing:
Transaction 302,297 313,825 358,556 293,319 298,073
Savings 3,198 3,277 2,893 4,121 2,726
Time 28,681 29,053 29,498 26,750 28,165
Total interest-bearing 334,176 346,155 390,947 324,190 328,964
Total Bank of Arizona 731,013 687,983 717,271 630,615 680,988
Bank of Kansas City:
Demand 240,754 221,812 197,424 234,847 239,609
Interest-bearing:
Transaction 112,371 146,405 153,203 150,253 139,260
Savings 1,656 1,619 1,378 1,570 1,580
Time 11,735 31,502 35,524 36,630 42,262
Total interest-bearing 125,762 179,526 190,105 188,453 183,102
Total Bank of Kansas City 366,516 401,338 387,529 423,300 422,711
TOTAL BOK FINANCIAL $20,759,801 $20,418,320 $21,088,158 $20,619,443 $21,059,729


NET INTEREST MARGIN TREND -- UNAUDITED
BOK FINANCIAL CORPORATION
Three Months Ended
June 30, 2016 Mar. 31, 2016 Dec. 31, 2015 Sept. 30, 2015 June 30, 2015
TAX-EQUIVALENT ASSETS YIELDS
Interest-bearing cash and cash equivalents 0.51% 0.53% 0.29% 0.28% 0.25%
Trading securities 1.89% 2.47% 2.86% 2.70% 1.85%
Investment securities:
Taxable 5.41% 5.53% 5.41% 5.49% 5.49%
Tax-exempt 2.25% 2.22% 1.53% 1.54% 1.56%
Total investment securities 3.52% 3.51% 3.03% 3.04% 3.05%
Available for sale securities:
Taxable 2.01% 2.06% 2.02% 1.99% 1.92%
Tax-exempt 5.06% 4.95% 4.22% 4.15% 4.21%
Total available for sale securities 2.04% 2.08% 2.04% 2.01% 1.94%
Fair value option securities 2.19% 2.38% 2.32% 2.30% 2.17%
Restricted equity securities 4.84% 5.85% 5.95% 5.95% 5.82%
Residential mortgage loans held for sale 3.53% 3.75% 3.85% 3.79% 3.37%
Loans 3.58% 3.57% 3.55% 3.54% 3.65%
Allowance for loan losses
Loans, net of allowance 3.63% 3.63% 3.60% 3.59% 3.70%
Total tax-equivalent yield on earning assets 2.91% 2.92% 2.86% 2.83% 2.84%
COST OF INTEREST-BEARING LIABILITIES
Interest-bearing deposits:
Interest-bearing transaction 0.14% 0.14% 0.09% 0.08% 0.09%
Savings 0.10% 0.09% 0.09% 0.10% 0.11%
Time 1.16% 1.21% 1.26% 1.33% 1.36%
Total interest-bearing deposits 0.33% 0.34% 0.32% 0.34% 0.35%
Funds purchased 0.19% 0.27% 0.11% 0.08% 0.08%
Repurchase agreements 0.05% 0.05% 0.04% 0.03% 0.03%
Other borrowings 0.57% 0.56% 0.38% 0.30% 0.31%
Subordinated debt 1.52% 1.26% 1.13% 1.04% 2.21%
Total cost of interest-bearing liabilities 0.41% 0.40% 0.34% 0.32% 0.35%
Tax-equivalent net interest revenue spread 2.50% 2.52% 2.52% 2.51% 2.49%
Effect of noninterest-bearing funding sources and other 0.13% 0.13% 0.12% 0.10% 0.12%
Tax-equivalent net interest margin 2.63% 2.65% 2.64% 2.61% 2.61%
Yield calculations are shown on a tax equivalent basis at the statutory federal and state rates for the periods presented. The yield calculations exclude security trades that have been recorded on trade date with no corresponding interest income and the unrealized gains and losses. The yield calculation also includes average loan balances for which the accrual of interest has been discontinued and are net of unearned income. Yield/rate calculations are generally based on the conventions that determine how interest income and expense is accrued.


CREDIT QUALITY INDICATORS -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands, except ratios)
Three Months Ended
June 30, 2016 Mar. 31, 2016 Dec. 31, 2015 Sept. 30, 2015 June 30, 2015
Nonperforming assets:
Nonaccruing loans:
Commercial $181,989 $174,652 $76,424 $33,798 $24,233
Commercial real estate 7,780 9,270 9,001 10,956 20,139
Residential mortgage 57,061 57,577 61,240 44,099 45,969
Personal 354 331 463 494 550
Total nonaccruing loans 247,184 241,830 147,128 89,347 90,891
Accruing renegotiated loans guaranteed by U.S. government agencies 78,806 77,597 74,049 81,598 82,368
Real estate and other repossessed assets 24,054 29,896 30,731 33,116 35,499
Total nonperforming assets $350,044 $349,323 $251,908 $204,061 $208,758
Total nonperforming assets excluding those guaranteed by U.S. government agencies $251,497 $252,176 $155,959 $118,578 $122,673
Nonaccruing loans by loan class:
Commercial:
Energy $168,145 $159,553 $61,189 $17,880 $6,841
Services 9,388 9,512 10,290 10,692 10,944
Wholesale / retail 2,772 3,685 2,919 3,058 4,166
Manufacturing 293 312 331 352 379
Healthcare 875 1,023 1,072 1,218 1,278
Other commercial and industrial 516 567 623 598 625
Total commercial 181,989 174,652 76,424 33,798 24,233
Commercial real estate:
Residential construction and land development 4,261 4,789 4,409 4,748 9,367
Retail 1,265 1,302 1,319 1,648 3,826
Office 606 629 651 684 2,360
Multifamily 65 250 274 185 195
Industrial 76 76 76 76 76
Other commercial real estate 1,507 2,224 2,272 3,615 4,315
Total commercial real estate 7,780 9,270 9,001 10,956 20,139
Residential mortgage:
Permanent mortgage 27,228 27,497 28,984 30,660 32,187
Permanent mortgage guaranteed by U.S. government agencies 19,741 19,550 21,900 3,885 3,717
Home equity 10,092 10,530 10,356 9,554 10,065
Total residential mortgage 57,061 57,577 61,240 44,099 45,969
Personal 354 331 463 494 550
Total nonaccruing loans $247,184 $241,830 $147,128 $89,347 $90,891
Performing loans 90 days past due1 $2,899 $8,019 $1,207 $101 $99
Gross charge-offs $(8,845) $(23,991) $(4,851) $(5,274) $(2,877)
Recoveries 1,386 1,519 1,870 3,521 2,206
Net charge-offs $(7,459) $(22,472) $(2,981) $(1,753) $(671)
Provision for credit losses $20,000 $35,000 $22,500 $7,500 $4,000
Allowance for loan losses to period end loans 1.48% 1.46% 1.41% 1.33% 1.33%
Combined allowance for credit losses to period end loans 1.54% 1.50% 1.43% 1.35% 1.34%
Nonperforming assets to period end loans and repossessed assets 2.13% 2.18% 1.58% 1.33% 1.38%
Net charge-offs (annualized) to average loans 0.18% 0.56% 0.08% 0.05% 0.02%
Allowance for loan losses to nonaccruing loans1 106.95% 104.89% 180.09% 238.84% 230.67%
Combined allowance for credit losses to nonaccruing loans1 110.93% 107.87% 181.46% 243.05% 231.68%
1 Excludes residential mortgage loans guaranteed by agencies of the U.S. government.

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

Source:BOK Financial Corporation