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BOK Financial Reports Quarterly Earnings of $74 Million

TULSA, Okla., Oct. 26, 2016 (GLOBE NEWSWIRE) -- BOK Financial Corporation (NASDAQ:BOKF) reported net income of $74.3 million or $1.13 per diluted share for the third quarter of 2016. Net income was $65.8 million or $1.00 per diluted share for the second quarter of 2016 and $74.9 million or $1.09 per diluted share for the third quarter of 2015.

Steven G. Bradshaw, president and chief executive officer of BOK Financial, stated, “Earnings were strong in the third quarter due to record revenue combined with lower credit costs as the commodities market continues to normalize. While loan growth was a bit softer than expected, this was in large part due to one significant paydown in the energy portfolio, and we continue to forecast mid-single-digit annual loan growth for the foreseeable future.”

Bradshaw continued, “In 2016 we have seen elevated expenses from a variety of sources including foreclosure and loss mitigation in mortgage, the settlement of litigation issues, and continued investment in systems and technology. While we have tactically reduced expenses and headcount over the past few years, in October we took further decisive action to align expenses with expected revenue growth. By reducing contract labor, not backfilling some open positions, and right-sizing our workforce, we believe we will reduce annual expenses by approximately $20 million in 2017.”

Third Quarter 2016 Highlights

  • Net interest revenue totaled $187.8 million for the third quarter of 2016, up $5.2 million over the second quarter of 2016. Net interest margin was 2.64 percent for the third quarter of 2016, compared to 2.63 percent for the second quarter of 2016. Average earning assets increased $260 million during the third quarter of 2016, including a $185 million increase in average loan balances.

  • Fees and commissions revenue totaled $185.3 million for the third quarter of 2016, an increase of $1.8 million over the prior quarter. Mortgage banking revenue grew by $4.3 million and deposit service charges and fees increased $1.1 million. Brokerage and trading revenue decreased $1.5 million, transaction card revenue decreased $1.0 million and fiduciary and asset management revenue decreased $740 thousand.

  • Operating expense was $262.1 million for the third quarter, an increase of $7.4 million over the previous quarter, primarily due to a $5.0 million accrual related to a legal settlement during the quarter. All other non-personnel expenses increased $1.7 million. Deposit insurance expense was up $2.3 million, offset by a $2.5 million decrease in net losses and operating expenses of repossessed assets compared to the prior quarter. Personnel expense increased $695 thousand.

  • Income tax expense was reduced by $2.6 million during the third quarter of 2016 due to the expiration of the statute of limitations on uncertain tax positions and the annual adjustment of the previous year's current income tax liability to amounts on filed tax returns for 2015. The effective tax rate was 29.8 percent for the third quarter of 2016. Excluding these adjustments the effective tax rate would have been 32.3 percent for the third quarter, up from 31.5 percent for the second quarter of 2016.

  • A $10.0 million provision for credit losses was recorded in the third quarter of 2016 compared to a $20.0 million provision in the second 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 $6.1 million in the third quarter of 2016, compared to $7.5 million in the previous quarter.

  • The combined allowance for credit losses totaled $256 million or 1.56 percent of outstanding loans at September 30, 2016 compared to $252 million or 1.54 percent of outstanding loans at June 30, 2016. The portion of the combined allowance attributed to the energy portfolio totaled 3.67 percent of outstanding energy loans at September 30, 2016, an increase from 3.58 percent of outstanding energy loans at June 30, 2016.

  • Nonperforming assets that are not guaranteed by U.S. government agencies totaled $253 million or 1.55 percent of outstanding loans and repossessed assets (excluding those guaranteed by U.S. government agencies) at September 30, 2016 and $251 million or 1.55 percent of outstanding loans and repossessed assets (excluding those guaranteed by U.S. government agencies) at June 30, 2016. Nonaccruing energy loans decreased $25 million during the third quarter, partially offset by a $21 million increase in nonaccruing other commercial and industrial sector loans.

  • Average loans increased by $185 million over the previous quarter. Commercial real estate loans grew by $239 million, partially offset by a $156 million decrease in average commercial loan balances. Period-end outstanding loan balances increased $58 million to $16.5 billion at September 30, 2016.

  • Average deposits increased $297 million over the previous quarter primarily due to growth in demand deposit balances of $335 million. Period-end deposits were $21.1 billion at September 30, 2016, an increase of $336 million from June 30, 2016.

  • The common equity Tier 1 capital ratio at September 30, 2016 was 11.99 percent. Other regulatory capital ratios were Tier 1 capital ratio, 11.99 percent, total capital ratio, 13.65 percent and leverage ratio, 9.06 percent. At June 30, 2016, the common equity Tier 1 capital ratio was 11.86 percent, the Tier 1 capital ratio was 11.86 percent, total capital ratio was 13.51 percent, and leverage ratio was 9.06 percent.

  • The company paid a regular quarterly cash dividend of $28 million or $0.43 per common share during the third quarter of 2016. On October 25, 2016, the board of directors approved an increase in the quarterly cash dividend to $0.44 per common share payable on or about November 28, 2016 to shareholders of record as of November 14, 2016.

Net Interest Revenue

Net interest revenue was $187.8 million for the third quarter of 2016, up $5.2 million over the second quarter of 2016.

Net interest margin was 2.64 percent for the third quarter of 2016, an increase of 1 basis point over the second quarter of 2016. The yield on average earning assets was 2.93 percent, an increase of 2 basis points. The loan portfolio yield increased 5 basis points to 3.63 percent primarily due to increases in the 30 day and 90 day LIBOR and improved energy loan yields. The yield on the available for sale securities portfolio decreased 3 basis points to 2.01 percent. Funding costs were 0.44 percent, up 3 basis points.

Average earning assets increased $260 million during the third quarter of 2016. Average loan balances increased $185 million, primarily due to growth in commercial real estate balances. Average trading securities balances increased $129 million and the average balance of residential mortgage loans held for sale was up $45 million, partially offset by a $101 million decrease in the balance of fair value option securities held as an economic hedge of our mortgage servicing rights. Average interest-bearing deposit balances decreased $38 million compared to the second quarter of 2016. The average balance of borrowed funds increased $175 million.

Fees and Commissions Revenue

Fees and commissions revenue totaled $185.3 million for the third quarter of 2016, an increase of $1.8 million over the second quarter of 2016.

Mortgage banking revenue totaled $42.5 million for the third quarter of 2016, a $4.3 million increase over the second quarter of 2016. Revenue from mortgage loan production increased $3.6 million due to growth in the volume of mortgage loans sold and increased gains on sale, partially offset by a decrease in mortgage loan commitments during the quarter. Average primary mortgage interest rates were 14 basis points lower than in the second quarter of 2016. Total mortgage loans originated during the third quarter increased $46 million or 3 percent over the prior quarter.

Outstanding mortgage loan commitments at September 30 decreased $335 million or 35 percent compared to June 30. The Company made a strategic decision to exit the correspondent lending channel based on careful consideration of continued pressure on margin due to the competitive landscape and increasing regulatory costs. This strategic decision decreased outstanding commitments by $414 million. Mortgage loan commitments continued to grow in our retail and HomeDirect online channels. The correspondent lending channel represented $4.6 million of the $26.0 million in total mortgage loan production revenue for the third quarter.

Brokerage and trading revenue decreased $1.5 million, primarily due to a $1.7 million decrease related to lower loan syndication fees and bond underwriting fees, which are both dependent on the timing and volume of completed transactions. Trading revenue decreased $307 thousand compared to the second quarter. The Company added a new group trading in U.S. government agency residential mortgage-backed securities and related to-be-announced securities. The addition of this group added $1.9 million of trading revenue during the third quarter and $426 million to the trading securities portfolio at September 30. This increase was partially offset by lower volumes of residential mortgage-backed and municipal securities sold to our institutional customers. Retail brokerage fees and customer hedging revenue were both up over the prior quarter.

Deposit service charges and fees were up $1.1 million over the prior quarter due to seasonal increases in overdraft volumes and higher commercial account service charge revenue. Transaction card revenue decreased $1.0 million, primarily due to a $1.2 million customer early termination fee recognized in the second quarter. A $740 thousand decrease in fiduciary and asset management revenue was largely due to an annual assessment of tax preparation fees in the second quarter, partially offset by growth in assets under management during the third quarter.

Operating Expense

Total operating expense was $262.1 million for the third quarter of 2016, an increase of $7.4 million over the second quarter of 2016. The Company agreed to settle a class action lawsuit concerning the manner in which the Company posted charges to certain deposit accounts for $7.8 million, $5.0 million of which was accrued in the third quarter.

Personnel expense increased by $695 thousand over the second quarter of 2016. Increased regular compensation expense and revenue-driven cash-based incentive compensation expense, was offset by a decrease in share-based compensation expense and a seasonal decrease in payroll tax expense.

Excluding the impact of the legal settlement accrual, non-personnel expense increased $1.7 million over the second quarter of 2016. Deposit insurance expense was up $2.3 million. The deposit insurance fund reached a target of 1.15 percent of insured deposits during the third quarter which triggered a new surcharge for banks with more than $10 billion in assets to bring the deposit insurance fund to 1.35 percent of insured deposits. This impact was partially offset by a reduction in the base rate.

Loans, Deposits and Capital

Loans

Outstanding loans were $16.5 billion at September 30, 2016, an increase of $58 million over the previous quarter. Growth in commercial real estate and personal loans, was partially offset by a decrease in commercial loan balances compared to the prior quarter.

Outstanding commercial loan balances decreased $236 million compared to June 30, 2016. Energy loan balances decreased $298 million compared to June 30, 2016 largely due to payments received from a single borrower. Unfunded energy loan commitments increased by $326 million during the third quarter to $2.3 billion. Service sector loans grew by $106 million, wholesale/retail sector loans increased $69 million and healthcare sector loans were up $34 million over the prior quarter. Manufacturing loans decreased $96 million and other commercial and industrial loans decreased $51 million.

Commercial real estate loans grew by $212 million over June 30, 2016. Loans secured by industrial facilities grew by $192 million and were broadly distributed across the Texas, Arizona, Colorado and Oklahoma markets. Multifamily residential loans increased $87 million primarily in the Kansas/Missouri, Texas and Arizona markets. Other commercial real estate loans decreased $59 million and loans secured by office buildings decreased $16 million.

Deposits

Period-end deposits totaled $21.1 billion at September 30, 2016, an increase of $336 million over June 30, 2016. Demand deposit balances increased by $257 million and interest-bearing transaction account balances increased $155 million, partially offset by a $77 million decrease in time deposits. Among the lines of business, Consumer Banking deposits increased $166 million, Wealth Management deposits increased by $105 million and Commercial Banking deposits increased $61 million. Growth in Consumer Banking deposits includes escrow funds associated with mortgage loan servicing. These deposits tend to grow throughout the year and are largely disbursed near year end. Growth in Wealth Management deposits include funds being held temporarily in anticipation of money market reforms. The net increase in Commercial Banking deposits was due to increased balances held by our healthcare, small business and treasury services customers, partially offset by a decrease in balances held by energy customers.

Capital

The company's common equity Tier 1 capital ratio was 11.99 percent at September 30, 2016. In addition, the company's Tier 1 capital ratio was 11.99 percent, total capital ratio was 13.65 percent and leverage ratio was 9.06 percent at September 30, 2016. At June 30, 2016, the company's common equity Tier 1 capital ratio was 11.86 percent, Tier 1 capital ratio was 11.86 percent, total capital ratio was 13.51 percent, and leverage ratio was 9.06 percent.

The company's tangible common equity ratio, a non-GAAP measure, was 9.19 percent at September 30, 2016 and 9.33 percent at June 30, 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 $349 million or 2.12 percent of outstanding loans and repossessed assets at September 30, 2016 compared to $350 million or 2.13 percent at June 30, 2016. Nonperforming assets that are not guaranteed by U.S. government agencies totaled $253 million or 1.55 percent of outstanding loans and repossessed assets (excluding those guaranteed by U.S. government agencies) at September 30, 2016 compared to $251 million or 1.55 percent at June 30, 2016.

Nonaccruing loans totaled $237 million or 1.44 percent of outstanding loans at September 30, 2016, compared to $247 million or 1.51 percent of outstanding loans at June 30, 2016. The decrease in nonaccruing loans was primarily due to a $25 million decrease in nonaccruing energy loans, partially offset by a $21 million increase in nonaccruing other commercial and industrial sector loans. New nonaccruing loans identified in the third quarter totaled $29 million, offset by $15 million in foreclosures and repossessions, $11 million in payments received and $8.1 million in charge-offs. At September 30, 2016, nonaccruing commercial loans totaled $176 million or 1.74 percent of outstanding commercial loans, nonaccruing commercial real estate loans totaled $7.4 million or 0.19 percent of outstanding commercial real estate loans and nonaccruing residential mortgage loans totaled $52 million or 2.80 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, decreased to $478 million at September 30 from $501 million at June 30. The decrease largely resulted from a decrease in potential problem energy loans, partially offset by an increase in potential problem services loans.

Net loans charged off totaled $6.1 million for the third quarter of 2016, compared to $7.5 million in the second quarter of 2016. Gross charge-offs totaled $8.1 million for the third quarter, compared to $8.8 million for the previous quarter. Charge-offs in both quarters largely came from the energy loan portfolio. Recoveries totaled $2.0 million for the third quarter of 2016 and $1.4 million for the second quarter of 2016.

After evaluating all credit factors, the company recorded a $10.0 million provision for credit losses during the third quarter of 2016. The company recorded a $20.0 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 $256 million or 1.56 percent of outstanding loans and 116 percent of nonaccruing loans at September 30, 2016. The allowance for loan losses was $245 million and the accrual for off-balance sheet credit losses was $11.1 million.

Energy Portfolio Credit Quality

The company's $2.5 billion energy portfolio consists of 79 percent of loans to exploration and production companies, 8 percent to energy services companies and 13 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.

Credit quality metrics in the energy portfolio continued to improve during the third quarter. Nonaccruing energy loans decreased $25 million to $143 million or 5.67 percent of outstanding energy loans. Potential problem energy loans decreased $60 million to $361 million and other loans especially mentioned decreased $50 million to $147 million. Approximately $100 million of the nonaccruing energy loans require no allowance for loan losses based on underlying collateral values and $85 million of the nonaccruing energy loans are current on all payments due. At September 30, 2016, the portion of the combined allowance for credit losses attributed to the energy portfolio totaled $92 million or 3.67 percent of outstanding energy loans compared to $101 million or 3.58 percent of outstanding energy loans at June 30, 2016.

Marc Maun, chief credit officer added, “There were continued positive trends in our energy portfolio in the third quarter. Line of credit utilization, criticized loans and charge-offs were all down, and while we saw a decrease in overall commitments and outstandings, our energy banking team booked $200 million of new commitments to high–quality borrowers. If oil and natural gas prices remain in recent ranges, we expect the positive trends to continue in the fourth quarter.”

Securities and Derivatives

The fair value of the available for sale securities portfolio totaled $8.9 billion at September 30, 2016, a $32 million increase compared to June 30, 2016. At September 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 $3.0 billion of commercial mortgage-backed securities fully backed by U.S. government agencies.

At September 30, 2016, the available for sale securities portfolio had a net unrealized gain of $160 million compared to a net unrealized gain of $195 million at June 30, 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 September 30, 2016 decreased $25 million during the third quarter to $98 million. Commercial mortgage-backed securities had a net unrealized gain of $44 million at September 30, 2016, compared to $58 million at June 30, 2016.

The company also maintains a portfolio of U.S. Treasury securities, 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 increased by $2.3 million during the third quarter of 2016 primarily due to changes in short term interest rates. The fair value of securities and interest rate derivative contracts held as an economic hedge decreased by $1.1 million during the quarter due to an increase in interest rate swap rates, partially offset by a decrease in average secondary mortgage rates. The fair value of mortgage servicing rights, net of economic hedges, decreased $1.2 million in the second quarter of 2016, primarily due to a decrease in secondary mortgage and interest rate swap rates. Hedge coverage was increased during the second quarter to improve its effectiveness.

Conference Call and Webcast

The company will hold a conference call at 9 a.m. Central time on Wednesday, October 26, 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 1-201-689-8597. A conference call and webcast replay will also be available shortly after conclusion of the live call at www.bokf.com or by dialing 1-201-612-7415 and referencing conference ID # 13646085.

About BOK Financial Corporation

BOK Financial Corporation is a $33 billion regional financial services company based in Tulsa, Oklahoma. The company's stock is publicly traded on NASDAQ under the Global Select market listings (symbol: BOKF). BOK Financial's holdings include BOKF, NA, BOK Financial Securities, Inc. and The Milestone Group, Inc. BOKF, NA operates TransFund, Cavanal Hill Investment Management, BOK Financial Asset Management, Inc. and seven banking divisions: Bank of Albuquerque, Bank of Arizona, Bank of Arkansas, 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 September 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)
Sept. 30, 2016 June 30, 2016 Sept. 30, 2015
ASSETS
Cash and due from banks$535,916 $498,713 $489,268
Interest-bearing cash and cash equivalents2,080,978 1,907,838 1,830,105
Trading securities546,615 211,622 181,131
Investment securities546,457 560,711 612,384
Available for sale securities8,862,283 8,830,689 8,801,089
Fair value option securities222,409 263,265 427,760
Restricted equity securities333,391 319,639 263,587
Residential mortgage loans held for sale447,592 430,728 357,414
Loans:
Commercial10,120,163 10,356,437 9,797,422
Commercial real estate3,793,598 3,581,966 3,235,067
Residential mortgage1,872,793 1,880,923 1,868,995
Personal678,232 587,423 465,957
Total loans16,464,786 16,406,749 15,367,441
Allowance for loan losses(245,103) (243,259) (204,116)
Loans, net of allowance16,219,683 16,163,490 15,163,325
Premises and equipment, net318,196 315,199 294,669
Receivables650,368 173,638 151,451
Goodwill382,739 382,739 385,461
Intangible assets, net41,977 43,372 44,999
Mortgage servicing rights203,621 190,747 200,049
Real estate and other repossessed assets, net31,941 24,054 33,116
Derivative contracts, net655,078 883,673 726,159
Cash surrender value of bank-owned life insurance310,211 307,860 300,981
Receivable on unsettled securities sales19,642 142,820 30,009
Other assets370,134 319,653 273,948
TOTAL ASSETS$32,779,231 $31,970,450 $30,566,905
LIABILITIES AND EQUITY
Deposits:
Demand$8,681,364 $8,424,609 $8,041,767
Interest-bearing transaction9,824,160 9,668,869 9,698,849
Savings420,349 419,262 380,296
Time2,169,631 2,247,061 2,498,531
Total deposits21,095,504 20,759,801 20,619,443
Funds purchased109,031 56,780 62,297
Repurchase agreements504,573 472,683 555,677
Other borrowings6,533,443 5,830,736 4,635,150
Subordinated debentures144,631 371,812 226,314
Accrued interest, taxes and expense191,276 197,742 158,048
Due on unsettled securities purchases677 11,757 98,351
Derivative contracts, net573,987 719,159 636,115
Other liabilities193,698 147,242 159,348
TOTAL LIABILITIES29,346,820 28,567,712 27,150,743
Shareholders' equity:
Capital, surplus and retained earnings3,302,584 3,251,201 3,291,450
Accumulated other comprehensive income95,727 117,632 85,776
TOTAL SHAREHOLDERS' EQUITY3,398,311 3,368,833 3,377,226
Non-controlling interests34,100 33,905 38,936
TOTAL EQUITY3,432,411 3,402,738 3,416,162
TOTAL LIABILITIES AND EQUITY$32,779,231 $31,970,450 $30,566,905


AVERAGE BALANCE SHEETS -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands)
Three Months Ended
Sept. 30,2016 June 30, 2016 Mar. 31, 2016 Dec. 31, 2015 Sept. 30,2015
ASSETS
Interest-bearing cash and cash equivalents$2,047,991 $2,022,028 $2,052,840 $1,995,945 $2,038,611
Trading securities366,545 237,808 188,100 150,402 179,098
Investment securities552,592 562,391 587,465 602,369 616,091
Available for sale securities8,862,590 8,890,112 8,951,435 8,971,090 8,942,261
Fair value option securities266,998 368,434 450,478 435,449 429,951
Restricted equity securities335,812 319,136 294,529 262,461 255,610
Residential mortgage loans held for sale445,930 401,114 289,743 310,425 401,359
Loans:
Commercial10,109,692 10,265,782 10,268,793 10,024,756 9,685,768
Commercial real estate3,789,673 3,550,611 3,364,076 3,186,629 3,198,200
Residential mortgage1,870,855 1,864,458 1,865,742 1,835,195 1,847,696
Personal677,530 582,281 493,382 540,418 460,647
Total loans16,447,750 16,263,132 15,991,993 15,586,998 15,192,311
Allowance for loan losses(247,901) (245,448) (234,116) (207,156) (202,829)
Total loans, net16,199,849 16,017,684 15,757,877 15,379,842 14,989,482
Total earning assets29,078,307 28,818,707 28,572,467 28,107,983 27,852,463
Cash and due from banks511,534 507,085 505,522 514,629 487,283
Derivative contracts, net766,671 823,584 632,102 657,780 669,264
Cash surrender value of bank-owned life insurance308,670 306,318 304,141 301,793 299,424
Receivable on unsettled securities sales259,906 49,568 115,101 62,228 64,591
Other assets1,721,385 1,480,780 1,379,138 1,435,763 1,396,708
TOTAL ASSETS$32,646,473 $31,986,042 $31,508,471 $31,080,176 $30,769,733
LIABILITIES AND EQUITY
Deposits:
Demand$8,497,037 $8,162,134 $8,105,756 $8,312,961 $7,994,607
Interest-bearing transaction9,650,618 9,590,855 9,756,843 9,527,491 9,760,839
Savings420,009 417,122 397,479 382,284 379,828
Time2,197,350 2,297,621 2,366,543 2,482,714 2,557,874
Total deposits20,765,014 20,467,732 20,626,621 20,705,450 20,693,148
Funds purchased68,280 70,682 112,211 73,220 70,281
Repurchase agreements522,822 611,264 662,640 623,921 672,085
Other borrowings6,342,369 6,076,028 5,583,917 4,957,175 4,779,981
Subordinated debentures255,890 232,795 226,368 226,332 226,296
Derivative contracts, net747,187 791,313 544,722 632,699 597,908
Due on unsettled securities purchases200,574 93,812 158,050 248,811 90,135
Other liabilities352,671 298,170 268,705 251,953 240,704
TOTAL LIABILITIES29,254,807 28,641,796 28,183,234 27,719,561 27,370,538
Total equity3,391,666 3,344,246 3,325,237 3,360,615 3,399,195
TOTAL LIABILITIES AND EQUITY$32,646,473 $31,986,042 $31,508,471 $31,080,176 $30,769,733


STATEMENTS OF EARNINGS -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands, except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
2016 2015 2016 2015
Interest revenue$209,317 $193,664 $613,380 $570,046
Interest expense21,471 15,028 60,350 47,953
Net interest revenue187,846 178,636 553,030 522,093
Provision for credit losses10,000 7,500 65,000 11,500
Net interest revenue after provision for credit losses177,846 171,136 488,030 510,593
Other operating revenue:
Brokerage and trading revenue38,006 31,582 109,877 99,301
Transaction card revenue33,933 32,514 101,237 96,302
Fiduciary and asset management revenue34,073 30,807 100,942 94,988
Deposit service charges and fees23,668 23,606 68,828 67,618
Mortgage banking revenue42,548 33,170 115,202 109,336
Other revenue13,080 12,978 38,336 35,650
Total fees and commissions185,308 164,657 534,422 503,195
Other gains, net2,442 1,161 5,309 3,373
Gain on derivatives, net2,226 1,283 20,130 1,162
Gain (loss) on fair value option securities, net(3,355) 5,926 10,367 443
Change in fair value of mortgage servicing rights2,327 (11,757) (41,944) (12,269)
Gain on available for sale securities, net2,394 2,166 11,684 9,926
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 revenue191,342 163,436 539,968 505,738
Other operating expense:
Personnel143,185 129,062 421,518 390,305
Business promotion6,839 5,922 19,238 19,435
Charitable contributions to BOKF Foundation 796 796
Professional fees and services14,038 10,147 39,955 29,766
Net occupancy and equipment20,111 18,689 58,554 56,660
Insurance9,390 4,864 23,784 14,960
Data processing and communications33,331 30,708 98,150 91,135
Printing, postage and supplies3,790 3,376 11,586 10,390
Net losses (gains) and operating expenses of repossessed assets(926) 267 1,732 1,103
Amortization of intangible assets1,521 1,089 5,304 3,269
Mortgage banking costs16,022 9,107 44,210 27,501
Other expense14,819 10,601 37,714 26,686
Total other operating expense262,120 224,628 761,745 672,006
Net income before taxes107,068 109,944 266,253 344,325
Federal and state income taxes31,956 34,128 83,881 113,142
Net income75,112 75,816 182,372 231,183
Net income (loss) attributable to non-controlling interests835 925 (270) 2,219
Net income attributable to BOK Financial Corporation shareholders$74,277 $74,891 $182,642 $228,964
Average shares outstanding:
Basic65,085,392 67,668,076 65,208,774 68,004,508
Diluted65,157,841 67,762,483 65,263,566 68,104,017
Net income per share:
Basic$1.13 $1.09 $2.77 $3.33
Diluted$1.13 $1.09 $2.76 $3.32


FINANCIAL HIGHLIGHTS -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands, except ratio and share data)
Three Months Ended
Sept. 30,2016 June 30, 2016 Mar. 31, 2016 Dec. 31, 2015 Sept. 30,2015
Capital:
Period-end shareholders' equity$3,398,311 $3,368,833 $3,321,555 $3,230,556 $3,377,226
Risk weighted assets$24,358,342 $24,191,016 $23,707,824 $23,429,897 $22,706,537
Risk-based capital ratios:
Common equity tier 111.99% 11.86% 12.00% 12.13% 12.78%
Tier 111.99% 11.86% 12.00% 12.13% 12.78%
Total capital13.65% 13.51% 13.21% 13.30% 13.89%
Leverage ratio9.06% 9.06% 9.12% 9.25% 9.55%
Tangible common equity ratio19.19% 9.33% 9.34% 9.02% 9.78%
Common stock:
Book value per share$51.56 $51.15 $50.21 $49.03 $49.88
Tangible book value per share45.12 44.68 43.73 42.51 43.52
Market value per share:
High$70.05 $65.14 $60.16 $74.73 $70.26
Low$56.36 $51.00 $43.74 $58.25 $57.04
Cash dividends paid$28,181 $28,241 $28,294 $28,967 $28,766
Dividend payout ratio37.94% 42.92% 66.47% 48.60% 38.41%
Shares outstanding, net65,910,454 65,866,317 66,155,103 65,894,032 67,713,031
Stock buy-back program:
Shares repurchased 305,169 1,874,074 1,258,348
Amount$ $17,771 $ $119,780 $80,276
Average price per share$ $58.23 $ $63.91 $63.79
Performance ratios (quarter annualized):
Return on average assets0.91% 0.83% 0.54% 0.76% 0.97%
Return on average equity8.80% 8.00% 5.21% 7.12% 8.84%
Net interest margin2.64% 2.63% 2.65% 2.64% 2.61%
Efficiency ratio69.21% 68.45% 69.05% 67.93% 64.34%
Reconciliation of non-GAAP measures:
1 Tangible common equity ratio:
Total shareholders' equity$3,398,311 $3,368,833 $3,321,555 $3,230,556 $3,377,226
Less: Goodwill and intangible assets, net424,716 426,111 428,733 429,370 430,460
Tangible common equity$2,973,595 $2,942,722 $2,892,822 $2,801,186 $2,946,766
Total assets$32,779,231 $31,970,450 $31,413,945 $31,476,128 $30,566,905
Less: Goodwill and intangible assets, net424,716 426,111 428,733 429,370 430,460
Tangible assets$32,354,515 $31,544,339 $30,985,212 $31,046,758 $30,136,445
Tangible common equity ratio9.19% 9.33% 9.34% 9.02% 9.78%
Other data:
Fiduciary assets$41,222,162 $39,924,734 $39,113,305 $38,333,638 $37,780,669
Tax equivalent adjustment$4,455 $4,372 $4,385 $3,222 $3,244
Net unrealized gain on available for sale securities$159,533 $195,385 $155,236 $38,109 $144,884
Mortgage banking:
Mortgage servicing portfolio$21,851,536 $21,178,387 $20,294,662 $19,678,226 $18,928,726
Mortgage commitments$630,804 $965,631 $902,986 $601,147 $742,742
Mortgage loans funded for sale$1,864,583 $1,818,844 $1,244,015 $1,365,431 $1,614,225
Mortgage loan refinances to total fundings51% 44% 49% 41% 30%
Mortgage loans sold$1,873,709 $1,742,582 $1,239,391 $1,424,527 $1,778,099
Net realized gains on mortgage loans sold$27,142 $19,205 $10,779 $15,705 $18,968
Change in net unrealized gain on mortgage loans held for sale(1,152) 3,221 8,198 (5,615) (251)
Total production revenue25,990 22,426 18,977 10,090 18,717
Servicing revenue16,558 15,798 15,453 14,949 14,453
Total mortgage banking revenue$42,548 $38,224 $34,430 $25,039 $33,170
Gain (loss) on mortgage servicing rights, net of economic hedge:
Gain (loss) on mortgage hedge derivative contracts, net$2,268 $10,766 $7,138 $(732) $1,460
Gain (loss) on fair value option securities, net(3,355) 4,279 9,443 (4,127) 5,926
Gain (loss) on economic hedge of mortgage servicing rights(1,087) 15,045 16,581 (4,859) 7,386
Gain (loss) on changes in fair value of mortgage servicing rights2,327 (16,283) (27,988) 7,416 (11,757)
Gain (loss) on changes in fair value of mortgage servicing rights, net of economic hedges$1,240 $(1,238) $(11,407) $2,557 $(4,371)
Net interest revenue on fair value option securities$861 $1,348 $2,033 $2,137 $2,140



QUARTERLY EARNINGS TREND -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands, except ratio and per share data)
Three Months Ended
Sept. 30,2016 June 30, 2016 Mar. 31, 2016 Dec. 31, 2015 Sept. 30,2015
Interest revenue$209,317 $202,267 $201,796 $196,782 $193,664
Interest expense21,471 19,655 19,224 15,521 15,028
Net interest revenue187,846 182,612 182,572 181,261 178,636
Provision for credit losses10,000 20,000 35,000 22,500 7,500
Net interest revenue after provision for credit losses177,846 162,612 147,572 158,761 171,136
Other operating revenue:
Brokerage and trading revenue38,006 39,530 32,341 30,255 31,582
Transaction card revenue33,933 34,950 32,354 32,319 32,514
Fiduciary and asset management revenue34,073 34,813 32,056 31,165 30,807
Deposit service charges and fees23,668 22,618 22,542 22,813 23,606
Mortgage banking revenue42,548 38,224 34,430 25,039 33,170
Other revenue13,080 13,352 11,904 14,233 12,978
Total fees and commissions185,308 183,487 165,627 155,824 164,657
Other gains, net2,442 1,307 1,560 2,329 1,161
Gain (loss) on derivatives, net2,226 10,766 7,138 (732) 1,283
Gain (loss) on fair value option securities, net(3,355) 4,279 9,443 (4,127) 5,926
Change in fair value of mortgage servicing rights2,327 (16,283) (27,988) 7,416 (11,757)
Gain on available for sale securities, net2,394 5,326 3,964 2,132 2,166
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 revenue191,342 188,882 159,744 161,115 163,436
Other operating expense:
Personnel143,185 142,490 135,843 133,182 129,062
Business promotion6,839 6,703 5,696 8,416 5,922
Charitable contributions to BOKF Foundation 796
Professional fees and services14,038 14,158 11,759 10,357 10,147
Net occupancy and equipment20,111 19,677 18,766 19,356 18,689
Insurance9,390 7,129 7,265 5,415 4,864
Data processing and communications33,331 32,802 32,017 31,248 30,708
Printing, postage and supplies3,790 3,889 3,907 3,108 3,376
Net losses (gains) and operating expenses of repossessed assets(926) 1,588 1,070 343 267
Amortization of intangible assets1,521 2,624 1,159 1,090 1,089
Mortgage banking costs16,022 15,809 12,379 11,496 9,107
Other expense14,819 7,856 15,039 8,547 10,601
Total other operating expense262,120 254,725 244,900 232,558 224,628
Net income before taxes107,068 96,769 62,416 87,318 109,944
Federal and state income taxes31,956 30,497 21,428 26,242 34,128
Net income75,112 66,272 40,988 61,076 75,816
Net income (loss) attributable to non-controlling interests835 471 (1,576) 1,475 925
Net income attributable to BOK Financial Corporation shareholders$74,277 $65,801 $42,564 $59,601 $74,891
Average shares outstanding:
Basic65,085,392 65,245,887 65,296,541 66,378,380 67,668,076
Diluted65,157,841 65,302,926 65,331,428 66,467,729 67,762,483
Net income per share:
Basic$1.13 $1.00 $0.64 $0.89 $1.09
Diluted$1.13 $1.00 $0.64 $0.89 $1.09


LOANS TREND -- UNAUDITED
BOK FINANCIAL CORPORATION
(In thousands)
Sept. 30,2016 June 30, 2016 Mar. 31, 2016 Dec. 31, 2015 Sept. 30,2015
Commercial:
Energy $2,520,804 $2,818,656 $3,029,420 $3,097,328 $2,838,167
Services 2,936,599 2,830,864 2,728,891 2,784,276 2,706,624
Healthcare 2,085,046 2,051,146 1,995,425 1,883,380 1,741,680
Wholesale/retail 1,602,030 1,532,957 1,451,846 1,422,064 1,461,936
Manufacturing 499,486 595,403 600,645 556,729 555,677
Other commercial and industrial 476,198 527,411 482,198 508,754 493,338
Total commercial 10,120,163 10,356,437 10,288,425 10,252,531 9,797,422
Commercial real estate:
Retail 801,377 795,419 810,522 796,499 769,449
Multifamily 873,773 787,200 733,689 751,085 758,658
Office 752,705 769,112 695,552 637,707 626,151
Industrial 838,021 645,586 564,467 563,169 563,871
Residential construction and land development 159,946 157,576 171,949 160,426 153,510
Other commercial real estate 367,776 427,073 394,328 350,147 363,428
Total commercial real estate 3,793,598 3,581,966 3,370,507 3,259,033 3,235,067
Residential mortgage:
Permanent mortgage 969,558 969,007 948,405 945,336 937,664
Permanent mortgages guaranteed by U.S. government agencies 190,309 192,732 197,350 196,937 192,712
Home equity 712,926 719,184 723,554 734,620 738,619
Total residential mortgage 1,872,793 1,880,923 1,869,309 1,876,893 1,868,995
Personal 678,232 587,423 494,325 552,697 465,957
Total $16,464,786 $16,406,749 $16,022,566 $15,941,154 $15,367,441


LOANS BY PRINCIPAL MARKET AREA -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands)
Sept. 30, 2016 June 30, 2016 March 31, 2016 Dec. 31, 2015 Sept. 30, 2015
Bank of Oklahoma:
Commercial$3,545,924 $3,698,215 $3,656,034 $3,782,687 $3,514,391
Commercial real estate795,806 781,458 747,689 739,829 677,372
Residential mortgage1,401,166 1,415,766 1,411,409 1,409,114 1,405,235
Personal271,420 246,229 204,158 255,387 185,463
Total Bank of Oklahoma6,014,316 6,141,668 6,019,290 6,187,017 5,782,461
Bank of Texas:
Commercial3,903,218 3,901,632 3,936,809 3,908,425 3,752,193
Commercial real estate1,400,709 1,311,408 1,211,978 1,204,202 1,257,741
Residential mortgage229,345 222,548 217,539 219,126 222,395
Personal278,167 233,304 210,456 203,496 194,051
Total Bank of Texas5,811,439 5,668,892 5,576,782 5,535,249 5,426,380
Bank of Albuquerque:
Commercial398,147 398,427 402,082 375,839 368,027
Commercial real estate299,785 322,956 323,059 313,422 312,953
Residential mortgage110,478 114,226 117,655 120,507 121,232
Personal11,333 10,569 10,823 11,557 10,477
Total Bank of Albuquerque819,743 846,178 853,619 821,325 812,689
Bank of Arkansas:
Commercial83,544 81,227 79,808 92,359 76,044
Commercial real estate72,649 69,235 66,674 69,320 82,225
Residential mortgage6,936 6,874 7,212 8,169 8,063
Personal6,757 7,025 918 819 4,921
Total Bank of Arkansas169,886 164,361 154,612 170,667 171,253
Colorado State Bank & Trust:
Commercial1,013,314 1,076,620 1,030,348 987,076 1,029,694
Commercial real estate254,078 237,569 219,078 223,946 229,835
Residential mortgage59,838 59,425 52,961 53,782 50,138
Personal42,901 35,064 24,497 23,384 30,683
Total Colorado State Bank & Trust1,370,131 1,408,678 1,326,884 1,288,188 1,340,350
Bank of Arizona:
Commercial680,447 670,814 656,527 606,733 608,235
Commercial real estate726,542 639,112 605,383 507,523 482,918
Residential mortgage39,206 38,998 40,338 44,047 41,722
Personal31,205 24,248 18,372 31,060 17,609
Total Bank of Arizona1,477,400 1,373,172 1,320,620 1,189,363 1,150,484
Bank of Kansas City:
Commercial495,569 529,502 526,817 499,412 448,838
Commercial real estate244,029 220,228 196,646 200,791 192,023
Residential mortgage25,824 23,086 22,195 22,148 20,210
Personal36,449 30,984 25,101 26,994 22,753
Total Bank of Kansas City801,871 803,800 770,759 749,345 683,824
TOTAL BOK FINANCIAL$16,464,786 $16,406,749 $16,022,566 $15,941,154 $15,367,441

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)
Sept. 30, 2016 June 30, 2016 March 31, 2016 Dec. 31, 2015 Sept. 30, 2015
Bank of Oklahoma:
Demand$4,158,273 $4,020,181 $3,813,128 $4,133,520 $3,834,145
Interest-bearing:
Transaction5,701,983 5,741,302 5,706,067 5,971,819 5,783,258
Savings242,959 247,984 246,122 226,733 225,580
Time1,091,464 1,167,271 1,198,022 1,202,274 1,253,137
Total interest-bearing7,036,406 7,156,557 7,150,211 7,400,826 7,261,975
Total Bank of Oklahoma11,194,679 11,176,738 10,963,339 11,534,346 11,096,120
Bank of Texas:
Demand2,734,981 2,677,253 2,571,883 2,627,764 2,689,493
Interest-bearing:
Transaction2,240,040 2,035,634 2,106,905 2,132,099 1,996,223
Savings84,642 83,862 83,263 77,902 74,674
Time528,380 516,231 530,657 549,740 554,106
Total interest-bearing2,853,062 2,635,727 2,720,825 2,759,741 2,625,003
Total Bank of Texas5,588,043 5,312,980 5,292,708 5,387,505 5,314,496
Bank of Albuquerque:
Demand584,681 530,853 557,200 487,286 520,785
Interest-bearing:
Transaction555,326 573,690 560,684 563,723 529,862
Savings54,480 49,200 47,187 43,672 41,380
Time244,706 250,068 259,630 267,821 281,426
Total interest-bearing854,512 872,958 867,501 875,216 852,668
Total Bank of Albuquerque1,439,193 1,403,811 1,424,701 1,362,502 1,373,453
Bank of Arkansas:
Demand32,203 30,607 31,318 27,252 25,397
Interest-bearing:
Transaction313,480 278,335 265,803 202,857 290,728
Savings2,051 1,853 1,929 1,747 1,573
Time17,534 18,911 21,035 24,983 26,203
Total interest-bearing333,065 299,099 288,767 229,587 318,504
Total Bank of Arkansas365,268 329,706 320,085 256,839 343,901
Colorado State Bank & Trust:
Demand517,063 528,124 413,506 497,318 430,675
Interest-bearing:
Transaction623,055 625,240 610,077 616,697 655,206
Savings31,613 31,509 33,108 31,927 31,398
Time247,667 254,164 271,475 296,224 320,279
Total interest-bearing902,335 910,913 914,660 944,848 1,006,883
Total Colorado State Bank & Trust1,419,398 1,439,037 1,328,166 1,442,166 1,437,558
Bank of Arizona:
Demand418,718 396,837 341,828 326,324 306,425
Interest-bearing:
Transaction303,750 302,297 313,825 358,556 293,319
Savings2,959 3,198 3,277 2,893 4,121
Time27,935 28,681 29,053 29,498 26,750
Total interest-bearing334,644 334,176 346,155 390,947 324,190
Total Bank of Arizona753,362 731,013 687,983 717,271 630,615
Bank of Kansas City:
Demand235,445 240,754 221,812 197,424 234,847
Interest-bearing:
Transaction86,526 112,371 146,405 153,203 150,253
Savings1,645 1,656 1,619 1,378 1,570
Time11,945 11,735 31,502 35,524 36,630
Total interest-bearing100,116 125,762 179,526 190,105 188,453
Total Bank of Kansas City335,561 366,516 401,338 387,529 423,300
TOTAL BOK FINANCIAL$21,095,504 $20,759,801 $20,418,320 $21,088,158 $20,619,443



NET INTEREST MARGIN TREND -- UNAUDITED
BOK FINANCIAL CORPORATION
Three Months Ended
Sept. 30, 2016 June 30, 2016 March 31, 2016 Dec. 31, 2015 Sept. 30, 2015
TAX-EQUIVALENT ASSETS YIELDS
Interest-bearing cash and cash equivalents0.51% 0.51% 0.53% 0.29% 0.28%
Trading securities2.71% 1.89% 2.47% 2.86% 2.70%
Investment securities:
Taxable5.34% 5.41% 5.53% 5.41% 5.49%
Tax-exempt2.26% 2.25% 2.22% 1.53% 1.54%
Total investment securities3.51% 3.52% 3.51% 3.03% 3.04%
Available for sale securities:
Taxable1.99% 2.01% 2.06% 2.02% 1.99%
Tax-exempt5.47% 5.06% 4.95% 4.22% 4.15%
Total available for sale securities2.01% 2.04% 2.08% 2.04% 2.01%
Fair value option securities1.70% 2.19% 2.38% 2.32% 2.30%
Restricted equity securities5.37% 4.84% 5.85% 5.95% 5.95%
Residential mortgage loans held for sale3.28% 3.53% 3.75% 3.85% 3.79%
Loans3.63% 3.58% 3.57% 3.55% 3.54%
Allowance for loan losses
Loans, net of allowance3.69% 3.63% 3.63% 3.60% 3.59%
Total tax-equivalent yield on earning assets2.93% 2.91% 2.92% 2.86% 2.83%
COST OF INTEREST-BEARING LIABILITIES
Interest-bearing deposits:
Interest-bearing transaction0.14% 0.14% 0.14% 0.09% 0.08%
Savings0.09% 0.10% 0.09% 0.09% 0.10%
Time1.14% 1.16% 1.21% 1.26% 1.33%
Total interest-bearing deposits0.32% 0.33% 0.34% 0.32% 0.34%
Funds purchased0.19% 0.19% 0.27% 0.11% 0.08%
Repurchase agreements0.04% 0.05% 0.05% 0.04% 0.03%
Other borrowings0.57% 0.57% 0.56% 0.38% 0.30%
Subordinated debt3.84% 1.52% 1.26% 1.13% 1.04%
Total cost of interest-bearing liabilities0.44% 0.41% 0.40% 0.34% 0.32%
Tax-equivalent net interest revenue spread2.49% 2.50% 2.52% 2.52% 2.51%
Effect of noninterest-bearing funding sources and other0.15% 0.13% 0.13% 0.12% 0.10%
Tax-equivalent net interest margin2.64% 2.63% 2.65% 2.64% 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
Sept. 30, 2016 June 30, 2016 March 31, 2016 Dec. 31, 2015 Sept. 30, 2015
Nonperforming assets:
Nonaccruing loans:
Commercial$176,464 $181,989 $174,652 $76,424 $33,798
Commercial real estate7,350 7,780 9,270 9,001 10,956
Residential mortgage52,452 57,061 57,577 61,240 44,099
Personal686 354 331 463 494
Total nonaccruing loans236,952 247,184 241,830 147,128 89,347
Accruing renegotiated loans guaranteed by U.S. government agencies80,306 78,806 77,597 74,049 81,598
Real estate and other repossessed assets31,941 24,054 29,896 30,731 33,116
Total nonperforming assets$349,199 $350,044 $349,323 $251,908 $204,061
Total nonperforming assets excluding those guaranteed by U.S. government agencies$253,461 $251,497 $252,176 $155,959 $118,578
Nonaccruing loans by loan class:
Commercial:
Energy$142,966 $168,145 $159,553 $61,189 $17,880
Services8,477 9,388 9,512 10,290 10,692
Wholesale / retail2,453 2,772 3,685 2,919 3,058
Manufacturing274 293 312 331 352
Healthcare855 875 1,023 1,072 1,218
Other commercial and industrial21,439 516 567 623 598
Total commercial176,464 181,989 174,652 76,424 33,798
Commercial real estate:
Residential construction and land development3,739 4,261 4,789 4,409 4,748
Retail1,249 1,265 1,302 1,319 1,648
Office882 606 629 651 684
Multifamily51 65 250 274 185
Industrial76 76 76 76 76
Other commercial real estate1,353 1,507 2,224 2,272 3,615
Total commercial real estate7,350 7,780 9,270 9,001 10,956
Residential mortgage:
Permanent mortgage25,956 27,228 27,497 28,984 30,660
Permanent mortgage guaranteed by U.S. government agencies15,432 19,741 19,550 21,900 3,885
Home equity11,064 10,092 10,530 10,356 9,554
Total residential mortgage52,452 57,061 57,577 61,240 44,099
Personal686 354 331 463 494
Total nonaccruing loans$236,952 $247,184 $241,830 $147,128 $89,347
Performing loans 90 days past due1$3,839 $2,899 $8,019 $1,207 $101
Gross charge-offs$(8,101) $(8,845) $(23,991) $(4,851) $(5,274)
Recoveries2,038 1,386 1,519 1,870 3,521
Net charge-offs$(6,063) $(7,459) $(22,472) $(2,981) $(1,753)
Provision for credit losses$10,000 $20,000 $35,000 $22,500 $7,500
Allowance for loan losses to period end loans1.49% 1.48% 1.46% 1.41% 1.33%
Combined allowance for credit losses to period end loans1.56% 1.54% 1.50% 1.43% 1.35%
Nonperforming assets to period end loans and repossessed assets2.12% 2.13% 2.18% 1.58% 1.33%
Net charge-offs (annualized) to average loans0.15% 0.18% 0.56% 0.08% 0.05%
Allowance for loan losses to nonaccruing loans1110.65% 106.95% 104.89% 180.09% 238.84%
Combined allowance for credit losses to nonaccruing loans1115.67% 110.93% 107.87% 181.46% 243.05%

1 Excludes residential mortgage loans guaranteed by agencies of the U.S. government.


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

Source:BOK Financial Corporation