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BOK Financial Reports Quarterly Earnings of $88 Million

TULSA, Okla., April 26, 2017 (GLOBE NEWSWIRE) -- BOK Financial Corporation (Nasdaq:BOKF) reported net income of $88.4 million or $1.35 per diluted share for the first quarter of 2017. Net income was $50.0 million or $0.76 per diluted share for the fourth quarter of 2016 and $42.6 million or $0.64 per diluted share for the first quarter of 2016.

Steven G. Bradshaw, president and chief executive officer of BOK Financial, stated, “The year is off to a very strong start, and financial results in the first quarter of 2017 represent the second-highest net income total in our company’s history. Net interest margin and net interest revenue are up substantially due to the improved interest rate environment. Fee and commissions revenue growth remains steady, driven by the strength of our diverse wealth management business. And cost containment initiatives executed last year are driving much better results in terms of expense management, with total expenses down by over $20 million sequentially despite including the first full quarter of Mobank-related operating expenses.”

Bradshaw continued, “We completed the operational conversion of Mobank in February, and this acquisition is well ahead of our financial forecasts. With Mobank, total deposits at quarter–end are up 11 percent compared to March 31, 2016; and organic deposit growth during the same period was 6.5 percent. Our deposit franchise provides a significant funding advantage, and while we continue to believe that some demand deposits will migrate into interest–bearing accounts in the current rising rate environment, to date we have seen very limited pressure on deposit costs.”

First Quarter 2017 Highlights

  • Net interest revenue totaled $201.2 million for the first quarter of 2017, up $7.0 million over the fourth quarter of 2016. Net interest margin was 2.81 percent for the first quarter of 2017, compared to 2.69 percent for the fourth quarter of 2016. Average earning assets increased $416 million during the first quarter of 2017, primarily due to a $412 million increase in average loan balances.
  • Fees and commissions revenue totaled $164.4 million for the first quarter of 2017, a $2.3 million increase over the prior quarter. Fiduciary and asset management revenue grew by $4.1 million due to an increase in the value of assets managed and a decrease in waived fees. Mortgage banking revenue decreased $3.2 million and transaction card revenue decreased $2.4 million. Brokerage and trading revenue was unchanged, excluding a $5.0 million loss on trading asset positions from the previous quarter.
  • The change in the fair value of mortgage servicing rights, net of economic hedges increased pre-tax net income in the first quarter of 2017 by $188 thousand. The change in the fair value of mortgage servicing rights, net of economic hedges decreased pre-tax net income in the fourth quarter of 2016 by $17.0 million.
  • Operating expense was $244.7 million for the first quarter of 2017, a decrease of $20.8 million compared to the prior quarter. Expenses related to the Mobank acquisition, severance and a contribution to the BOKF Foundation added $11.7 million to the fourth quarter of 2016. Excluding these items, operating expense decreased $9.1 million, primarily due to lower mortgage banking and deposit insurance costs.
  • Income tax expense was $38.1 million or 30.1 percent of net income before taxes for the first quarter of 2017, compared to $22.5 million or 31.1 percent in the fourth quarter of 2016. The first quarter included a $3.9 million benefit related to the implementation of a new accounting standard that includes the tax effect of vested equity compensation awards in income tax expense. Previously the tax effect of these awards was included in stockholders' equity.
  • No provision for credit losses was recorded in the first quarter of 2017 or the fourth quarter of 2016 due to continued improvement in credit metric trends. The company had a net recovery of $747 thousand in the first quarter of 2017, compared to a net recovery of $1.2 million in the previous quarter.
  • The combined allowance for credit losses totaled $258 million or 1.52 percent of outstanding loans at March 31, 2017 compared to $257 million or 1.52 percent of outstanding loans at December 31, 2016.
  • Nonperforming assets that are not guaranteed by U.S. government agencies totaled $240 million or 1.43 percent of outstanding loans and repossessed assets (excluding those guaranteed by U.S. government agencies) at March 31, 2017 and $263 million or 1.56 percent of outstanding loans and repossessed assets (excluding those guaranteed by U.S. government agencies) at December 31, 2016. The decrease in nonperforming assets was primarily due to a $22 million decrease in nonaccruing energy loans.
  • Average loans increased by $412 million over the previous quarter, primarily due to a full quarter's impact of the Mobank acquisition. Excluding this impact, average loan balances were largely unchanged compared to the fourth quarter of 2016. Period-end outstanding loan balances totaled $17.0 billion at March 31, 2017, largely unchanged compared to December 31, 2016.
  • Average deposits increased $666 million over the previous quarter, including $390 million related to the impact of a full quarter of deposits from the Mobank acquisition. Excluding this impact, average interest-bearing transaction deposits grew by $402 million and time deposit balances were up $63 million, partially offset by a $201 million decrease in demand deposits. Period-end deposits were $22.6 billion at March 31, 2017, a $173 million decrease compared to December 31, 2016.
  • The common equity Tier 1 capital ratio at March 31, 2017 was 11.60 percent. Other regulatory capital ratios were Tier 1 capital ratio, 11.60 percent, total capital ratio, 13.26 percent and leverage ratio, 8.89 percent. At December 31, 2016, the common equity Tier 1 capital ratio was 11.21 percent, the Tier 1 capital ratio was 11.21 percent, total capital ratio was 12.81 percent, and leverage ratio was 8.72 percent.
  • The company paid a regular quarterly cash dividend of $29 million or $0.44 per common share during the first quarter of 2017. On April 25, 2017, the board of directors approved a quarterly cash dividend of $0.44 per common share payable on or about May 26, 2017 to shareholders of record as of May 12, 2017.

Net Interest Revenue

Net interest revenue was $201.2 million for the first quarter of 2017, up $7.0 million over the fourth quarter of 2016.

Net interest margin was 2.81 percent for the first quarter of 2017, an increase of 12 basis points over the fourth quarter of 2016, due largely to a full quarter effect of the Fed's 25 basis point December increase in short-term rates. The yield on average earning assets was 3.15 percent, an increase of 17 basis points. The loan portfolio yield increased 21 basis points to 3.88 percent primarily due to increases in the 30 day and 90 day LIBOR and improved energy loan yields. The yield on the available for sale securities portfolio increased 5 basis points to 2.05 percent. The yield on interest-bearing cash and cash equivalents increased 27 basis points. Funding costs were 0.52 percent, up 8 basis points. Growth in the cost of interest-bearing deposits was limited to 3 basis points by a lack of market pricing pressure.

Average earning assets increased $416 million during the first quarter of 2017. Average loan balances increased $412 million, primarily due to a full quarter's impact of the Mobank acquisition. The average balance of fair value option securities held as an economic hedge of our mortgage servicing rights increased $206 million. Average trading securities portfolio balances increased $103 million and interest-bearing cash and cash equivalents balances were up $55 million. These increases were offset by a $200 million decrease in available for sale securities portfolio balances and a $125 million decrease in the average balance of residential mortgage loans held for sale.

Average interest-bearing deposit balances increased $689 million over the fourth quarter of 2016, including $212 million related to a full quarter's impact of the Mobank acquisition. The average balance of borrowed funds decreased $378 million.

Fees and Commissions Revenue

Fees and commissions revenue totaled $164.4 million for the first quarter of 2017, an increase of $2.3 million over the fourth quarter of 2016. Brokerage and trading revenue for the fourth quarter of 2016 included a $5.0 million decrease in the value of trading assets caused by an unexpected 85 basis point increase in the 10-year U.S. Treasury interest rate and related rates.

Fiduciary and asset management revenue grew by $4.1 million over the fourth quarter of 2016 to $38.6 million. Revenue growth was largely due to a $2.6 billion increase in the value of fiduciary assets under management to a record high of $44.4 billion at March 31, 2017. Additionally, waived fees earned as administrator and investment advisor of the Cavanal Hill Funds decreased $964 thousand compared to the previous quarter of $445 thousand.

Mortgage banking revenue totaled $25.2 million for the first quarter of 2017, a $3.2 million decrease over the fourth quarter of 2016. Revenue from mortgage loan production decreased $3.4 million due to a $103 million decrease in mortgage production volume and a 26 basis point decrease in gain on sale margin compared to the prior quarter. Production volume decreased in response to higher primary mortgage interest rates and margin narrowed due to increased competition, largely in the Home Direct online delivery channel.

Transaction card revenue was down $2.4 million, primarily due to a seasonal decrease in transaction volumes.

Operating Expense

Total operating expense was $244.7 million for the first quarter of 2017, a decrease of $20.8 million compared to the fourth quarter of 2016. Expenses related to the completion of the Mobank acquisition were $2.0 million in the first quarter of 2017 and $4.7 million in the fourth quarter of 2016. In addition, operating expense in the fourth quarter of 2016 included $5.0 million of severance and other expenses related to staff reductions and a $2.0 million contribution to the BOKF Foundation. The discussion following excludes the impact of these items.

Personnel expense increased $1.9 million over the fourth quarter of 2016. Employee benefits costs were up $4.7 million primarily due to a seasonal increase in payroll tax expense and increased employee retirement plans costs, partially offset by lower employee medical costs. Regular compensation increased $2.5 million and included a full quarter impact of the Mobank acquisition. Incentive compensation expense decreased $5.3 million.

Non-personnel expense decreased $13.1 million compared to the fourth quarter of 2016. Mortgage banking expense decreased $4.3 million primarily due to the effect of slowing actual residential mortgage loan prepayments on the fair value of mortgage servicing rights. Deposit insurance expense was $2.3 million lower due to improvements in credit quality and other risk factors. Professional fees were down $2.3 million and other expenses decreased $2.3 million.

Loans, Deposits and Capital

Loans

Outstanding loans were $17.0 billion at March 31, 2017, largely unchanged compared to the previous quarter. Growth in commercial real estate was offset by a decrease in commercial loan balances.

Outstanding commercial loan balances decreased $64 million. Healthcare sector loans grew by $64 million. Energy loan balances increased $39 million. Unfunded energy loan commitments were largely unchanged at $2.7 billion. Manufacturing loans increased $28 million. This growth was offset by a $96 million decrease in service sector loan balances, a $71 million decrease in wholesale/retail sector loan balances and a $29 million decrease in other commercial and industrial loans.

Commercial real estate loans grew by $62 million. Loans secured by office buildings increased by $62 million and were broadly distributed across the Texas, New Mexico and Oklahoma markets. Multifamily residential loans increased $20 million. Growth in the Arizona and Kansas/Missouri markets was partially offset by a decrease in loans attributed to the Texas and Oklahoma markets. Retail sector loans decreased $17 million, primarily in the Texas and Arizona markets, partially offset by growth in the Oklahoma market.

Deposits

Period-end deposits totaled $22.6 billion at March 31, 2017, a $173 million decrease compared to December 31, 2016. Interest-bearing transaction account balances decreased $506 million, partially offset by a $271 million increase in demand deposit balances. In addition, both savings and time deposit balances grew over the prior quarter. Excluding the impact of allocating Mobank deposits among the lines of business, Wealth Management deposits decreased $154 million and Commercial Banking deposits decreased $101 million. Consumer Banking deposits grew by $122 million.

Capital

The company's common equity Tier 1 capital ratio was 11.60 percent at March 31, 2017. In addition, the company's Tier 1 capital ratio was 11.60 percent, total capital ratio was 13.26 percent and leverage ratio was 8.89 percent at March 31, 2017. At December 31, 2016, the company's common equity Tier 1 capital ratio was 11.21 percent, Tier 1 capital ratio was 11.21 percent, total capital ratio was 12.81 percent, and leverage ratio was 8.72 percent.

The company's tangible common equity ratio, a non-GAAP measure, was 8.88 percent at March 31, 2017 and 8.61 percent at December 31, 2016. The tangible common equity ratio is primarily based on total shareholders' equity which includes unrealized gains and losses on available for sale securities. The company has elected to exclude unrealized gains and losses from available for sale securities from its calculation of Tier 1 capital for regulatory capital purposes, consistent with the treatment under the previous capital rules.

Credit Quality

Nonperforming assets totaled $334 million or 1.96 percent of outstanding loans and repossessed assets at March 31, 2017 compared to $357 million or 2.09 percent at December 31, 2016. Nonperforming assets that are not guaranteed by U.S. government agencies totaled $240 million or 1.43 percent of outstanding loans and repossessed assets (excluding those guaranteed by U.S. government agencies) at March 31, 2017 compared to $263 million or 1.56 percent at December 31, 2016.

Nonaccruing loans totaled $208 million or 1.22 percent of outstanding loans at March 31, 2017, down from $231 million or 1.36 percent of outstanding loans at December 31, 2016. The decrease in nonaccruing loans was primarily due to a $22 million decrease in nonaccruing energy loans. New nonaccruing loans identified in the first quarter totaled $23 million, offset by $35 million in payments received, $2.2 million in charge-offs and $3.3 million in foreclosures and repossessions. Additionally, $5.9 million was returned to accruing status based on improved credit risk and performance. At March 31, 2017, nonaccruing commercial loans totaled $157 million or 1.52 percent of outstanding commercial loans, nonaccruing commercial real estate loans totaled $4.5 million or 0.12 percent of outstanding commercial real estate loans and nonaccruing residential mortgage loans totaled $46 million or 2.37 percent of outstanding residential mortgage loans.

Potential problem loans, which are defined as performing loans based on known information cause management concern as to the borrowers' ability to continue to perform, totaled $413 million at March 31 compared to $399 million at December 31. The increase largely resulted from healthcare and manufacturing potential problem loans, partially offset by a decrease in potential problem energy loans.

Marc Maun, chief credit officer, stated, “We continued to see a stable credit environment in the first quarter, with no segments of our loan portfolio showing any material signs of stress. We recognized net recoveries during the quarter, saw nonaccrual loans decrease by over ten percent, and have a combined allowance for credit losses to period–end loans at or near the top of our peer group of mid-sized regional banks. After evaluating all credit factors, no provision for loan losses was booked for the first quarter. Looking forward, we are forecasting $15 million to $20 million provision for the full year.”

Maun continued, “Retail commercial real estate (CRE) has been in the spotlight recently due to several high–profile retailer store closings. I’m pleased to report that as of March 31, 2017 we had minimal criticized or classified retail CRE loans in our portfolio. Our portfolio is carefully constructed to limit CRE exposure to any one retailer, is geographically diverse, and represents best–in–class retail developers with multiple sources of repayment.”

The company had a net recovery of $747 thousand for the first quarter of 2017, compared to a net recovery of $1.2 million in the fourth quarter of 2016. Gross charge-offs totaled $2.2 million for the first quarter, compared to $1.7 million for the previous quarter. Recoveries totaled $2.9 million for the first quarter of 2017 and $2.8 million for the fourth quarter of 2016.

As noted above, the company determined that no provision for credit losses was necessary during the first quarter of 2017 based on the continued improvement in credit metrics. No provision for credit losses was recorded in the previous quarter. The combined allowance for credit losses totaled $258 million or 1.52 percent of outstanding loans and 131 percent of nonaccruing loans at March 31, 2017. The allowance for loan losses was $249 million and the accrual for off-balance sheet credit losses was $9.4 million.

Securities and Derivatives

The fair value of the available for sale securities portfolio totaled $8.4 billion at March 31, 2017, a $240 million decrease compared to December 31, 2016. At March 31, 2017, the available for sale portfolio consisted primarily of $5.4 billion of residential mortgage-backed securities fully backed by U.S. government agencies and $2.9 billion of commercial mortgage-backed securities fully backed by U.S. government agencies.

At March 31, 2017, the available for sale securities portfolio had a net unrealized loss of $5.5 million compared to a net unrealized loss of $15 million at December 31, 2016. The decrease in net unrealized loss was primarily due to changes in interest rates during the quarter. Net unrealized losses on residential mortgage-backed securities issued by U.S. government agencies at March 31, 2017 decreased $7.7 million during the first quarter to $7.3 million. Commercial mortgage-backed securities had a net unrealized loss of $18 million at March 31, 2017, unchanged compared to December 31, 2016.

The company also maintains a portfolio of financial instruments primarily consisting of residential mortgage-backed securities issued by U.S. government agencies and interest rate derivative contracts as an economic hedge of the changes in the fair value of our mortgage servicing rights.

The net economic benefit of the changes in fair value of mortgage servicing rights and related economic hedges was $1.5 million, including a $1.9 million increase in the fair value of the mortgage servicing rights, a $1.7 million decrease in the fair value of securities and derivative contracts held as an economic hedge and $1.3 million of related net interest revenue. The improvement over the prior quarter was due primarily to materially higher long-term interest rates and a relatively stable rate environment during the first quarter.

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

Conference Call and Webcast

The company will hold a conference call at 9 a.m. Central time on Wednesday, April 26, 2017 to discuss the financial results with investors. The live audio webcast and presentation slides will be available on the company’s website at www.bokf.com. The conference call can also be accessed by dialing 1-201-689-8471. A conference call and webcast replay will also be available shortly after conclusion of the live call at www.bokf.com or by dialing 1-844-512-2921 and referencing conference ID # 13659658.

About BOK Financial Corporation

BOK Financial Corporation is a $33 billion regional financial services company based in Tulsa, Oklahoma. The company's stock is publicly traded on NASDAQ under the Global Select market listings (symbol: BOKF). BOK Financial's holdings include BOKF, NA, BOK Financial Securities, Inc. and The Milestone Group, Inc. BOKF, NA operates TransFund, Cavanal Hill Investment Management, BOK Financial Asset Management, Inc. and seven banking divisions: Bank of Albuquerque, Bank of Arizona, Bank of Arkansas, Mobank, Bank of Oklahoma, Bank of Texas and Colorado State Bank and Trust. Through its subsidiaries, the company provides commercial and consumer banking, investment and trust services, mortgage origination and servicing, and an electronic funds transfer network. For more information, visit www.bokf.com.

The company will continue to evaluate critical assumptions and estimates, such as the appropriateness of the allowance for credit losses and asset impairment as of March 31, 2017 through the date its financial statements are filed with the Securities and Exchange Commission and will adjust amounts reported if necessary.

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


BALANCE SHEETS -- UNAUDITED
BOK FINANCIAL CORPORATION
(In thousands)
March 31, 2017 Dec. 31, 2016 March 31, 2016
ASSETS
Cash and due from banks$546,575 $620,846 $481,510
Interest-bearing cash and cash equivalents2,220,640 1,916,651 1,831,162
Trading securities677,156 337,628 279,539
Investment securities519,402 546,145 576,047
Available for sale securities8,437,291 8,676,829 8,886,036
Fair value option securities441,714 77,046 418,887
Restricted equity securities283,936 307,240 314,590
Residential mortgage loans held for sale248,707 301,897 332,040
Loans:
Commercial10,327,110 10,390,824 10,288,425
Commercial real estate3,871,063 3,809,046 3,370,507
Residential mortgage1,946,274 1,949,832 1,869,309
Personal847,459 839,958 494,325
Total loans16,991,906 16,989,660 16,022,566
Allowance for loan losses(248,710) (246,159) (233,156)
Loans, net of allowance16,743,196 16,743,501 15,789,410
Premises and equipment, net325,546 325,849 311,161
Receivables394,394 772,952 167,209
Goodwill445,738 448,899 383,789
Intangible assets, net42,556 46,931 44,944
Mortgage servicing rights249,403 247,073 196,055
Real estate and other repossessed assets, net42,726 44,287 29,896
Derivative contracts, net304,727 689,872 790,146
Cash surrender value of bank-owned life insurance310,537 308,430 305,510
Receivable on unsettled securities sales9,921 7,188 5,640
Other assets384,767 353,017 270,374
TOTAL ASSETS$32,628,932 $32,772,281 $31,413,945
LIABILITIES AND EQUITY
Deposits:
Demand$9,506,573 $9,235,720 $7,950,675
Interest-bearing transaction10,359,214 10,865,105 9,709,766
Savings465,724 425,470 416,505
Time2,243,848 2,221,800 2,341,374
Total deposits22,575,359 22,748,095 20,418,320
Funds purchased47,629 57,929 62,755
Repurchase agreements508,352 668,661 630,101
Other borrowings5,238,947 4,846,072 5,633,862
Subordinated debentures144,649 144,640 226,385
Accrued interest, taxes and expense140,235 146,704 148,711
Due on unsettled securities purchases137,069 6,508 19,508
Derivative contracts, net276,422 664,531 705,578
Other liabilities189,376 182,784 212,460
TOTAL LIABILITIES29,258,038 29,465,924 28,057,680
Shareholders' equity:
Capital, surplus and retained earnings3,346,965 3,285,821 3,228,446
Accumulated other comprehensive income (loss)(5,221) (10,967) 93,109
TOTAL SHAREHOLDERS' EQUITY3,341,744 3,274,854 3,321,555
Non-controlling interests29,150 31,503 34,710
TOTAL EQUITY3,370,894 3,306,357 3,356,265
TOTAL LIABILITIES AND EQUITY$32,628,932 $32,772,281 $31,413,945

AVERAGE BALANCE SHEETS -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands)
Three Months Ended
March 31, 2017 Dec. 31, 2016 Sept. 30, 2016 June 30, 2016 March 31, 2016
ASSETS
Interest-bearing cash and cash equivalents$2,087,964 $2,032,785 $2,047,991 $2,022,028 $2,052,840
Trading securities579,549 476,498 366,545 237,808 188,100
Investment securities530,936 542,869 552,592 562,391 587,465
Available for sale securities8,567,049 8,766,555 8,862,590 8,890,112 8,951,435
Fair value option securities416,524 210,733 266,998 368,434 450,478
Restricted equity securities312,498 334,114 335,812 319,136 294,529
Residential mortgage loans held for sale220,325 345,066 445,930 401,114 289,743
Loans:
Commercial10,414,579 10,228,095 10,109,692 10,265,782 10,268,793
Commercial real estate3,903,850 3,749,393 3,789,673 3,550,611 3,364,076
Residential mortgage1,962,759 1,919,296 1,870,855 1,864,458 1,865,742
Personal854,637 826,804 677,530 582,281 493,382
Total loans17,135,825 16,723,588 16,447,750 16,263,132 15,991,993
Allowance for loan losses(249,379) (246,977) (247,901) (245,448) (234,116)
Total loans, net16,886,446 16,476,611 16,199,849 16,017,684 15,757,877
Total earning assets29,601,291 29,185,231 29,078,307 28,818,707 28,572,467
Cash and due from banks547,104 578,694 511,534 507,085 505,522
Derivative contracts, net401,886 681,455 766,671 823,584 632,102
Cash surrender value of bank-owned life insurance309,223 309,532 308,670 306,318 304,141
Receivable on unsettled securities sales62,641 33,813 259,906 49,568 115,101
Other assets2,032,844 2,172,351 1,721,385 1,480,780 1,379,138
TOTAL ASSETS$32,954,989 $32,961,076 $32,646,473 $31,986,042 $31,508,471
LIABILITIES AND EQUITY
Deposits:
Demand$9,101,763 $9,124,595 $8,497,037 $8,162,134 $8,105,756
Interest-bearing transaction10,567,475 9,980,132 9,650,618 9,590,855 9,756,843
Savings441,254 421,654 420,009 417,122 397,479
Time2,258,930 2,177,035 2,197,350 2,297,621 2,366,543
Total deposits22,369,422 21,703,416 20,765,014 20,467,732 20,626,621
Funds purchased55,508 62,004 68,280 70,682 112,211
Repurchase agreements523,561 560,891 522,822 611,264 662,640
Other borrowings5,737,955 6,072,150 6,342,369 6,076,028 5,583,917
Subordinated debentures144,644 144,635 255,890 232,795 226,368
Derivative contracts, net405,444 682,808 747,187 791,313 544,722
Due on unsettled securities purchases91,529 77,575 200,574 93,812 158,050
Other liabilities299,534 321,404 352,671 298,170 268,705
TOTAL LIABILITIES29,627,597 29,624,883 29,254,807 28,641,796 28,183,234
Total equity3,327,392 3,336,193 3,391,666 3,344,246 3,325,237
TOTAL LIABILITIES AND EQUITY$32,954,989 $32,961,076 $32,646,473 $31,986,042 $31,508,471

STATEMENTS OF EARNINGS -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands, except per share data)
Three Months Ended
March 31,
2017 2016
Interest revenue$226,390 $201,796
Interest expense25,208 19,224
Net interest revenue201,182 182,572
Provision for credit losses 35,000
Net interest revenue after provision for credit losses201,182 147,572
Other operating revenue:
Brokerage and trading revenue33,623 32,341
Transaction card revenue32,127 32,354
Fiduciary and asset management revenue38,631 32,056
Deposit service charges and fees23,030 22,542
Mortgage banking revenue25,191 32,100
Other revenue11,752 11,904
Total fees and commissions164,354 163,297
Other gains, net3,627 1,560
Gain (loss) on derivatives, net(450) 7,138
Gain (loss) on fair value option securities, net(1,140) 9,443
Change in fair value of mortgage servicing rights1,856 (27,988)
Gain on available for sale securities, net2,049 3,964
Total other operating revenue170,296 157,414
Other operating expense:
Personnel136,425 133,562
Business promotion6,717 5,696
Professional fees and services12,379 11,759
Net occupancy and equipment21,624 18,766
Insurance6,404 7,265
Data processing and communications33,940 32,017
Printing, postage and supplies3,851 3,907
Net losses and operating expenses of repossessed assets1,009 1,070
Amortization of intangible assets1,802 1,159
Mortgage banking costs13,003 12,330
Other expense7,557 15,039
Total other operating expense244,711 242,570
Net income before taxes126,767 62,416
Federal and state income taxes38,103 21,428
Net income88,664 40,988
Net income (loss) attributable to non-controlling interests308 (1,576)
Net income attributable to BOK Financial Corporation shareholders$88,356 $42,564
Average shares outstanding:
Basic64,639,437 65,296,541
Diluted64,707,210 65,331,428
Net income per share:
Basic$1.35 $0.64
Diluted$1.35 $0.64


FINANCIAL HIGHLIGHTS -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands, except ratio and share data)
Three Months Ended
March 31, 2017 Dec. 31, 2016 Sept. 30, 2016 June 30, 2016 March 31, 2016
Capital:
Period-end shareholders' equity$3,341,744 $3,274,854 $3,398,311 $3,368,833 $3,321,555
Risk weighted assets$24,882,046 $25,274,848 $24,358,385 $24,191,016 $23,707,824
Risk-based capital ratios:
Common equity tier 111.60% 11.21% 11.99% 11.86% 12.00%
Tier 111.60% 11.21% 11.99% 11.86% 12.00%
Total capital13.26% 12.81% 13.65% 13.51% 13.21%
Leverage ratio8.89% 8.72% 9.06% 9.06% 9.12%
Tangible common equity ratio18.88% 8.61% 9.19% 9.33% 9.34%
Common stock:
Book value per share$51.09 $50.12 $51.56 $51.15 $50.21
Tangible book value per share43.63 42.53 45.12 44.68 43.73
Market value per share:
High$85.25 $85.00 $70.05 $65.14 $60.16
Low$73.44 $67.11 $56.36 $51.00 $43.74
Cash dividends paid$28,646 $28,860 $28,181 $28,241 $28,294
Dividend payout ratio32.42% 57.69% 37.94% 42.92% 66.47%
Shares outstanding, net65,408,019 65,337,432 65,910,454 65,866,317 66,155,103
Stock buy-back program:
Shares repurchased 700,000 305,169
Amount$ $49,021 $ $17,771 $
Average price per share$ $70.03 $ $58.23 $
Performance ratios (quarter annualized):
Return on average assets1.09% 0.60% 0.91% 0.83% 0.54%
Return on average equity10.86% 6.03% 8.80% 8.00% 5.21%
Net interest margin2.81% 2.69% 2.64% 2.63% 2.65%
Efficiency ratio65.77% 72.93% 68.88% 68.16% 68.84%
Reconciliation of non-GAAP measures:
1 Tangible common equity ratio:
Total shareholders' equity$3,341,744 $3,274,854 $3,398,311 $3,368,833 $3,321,555
Less: Goodwill and intangible assets, net488,294 495,830 424,716 426,111 428,733
Tangible common equity$2,853,450 $2,779,024 $2,973,595 $2,942,722 $2,892,822
Total assets$32,628,932 $32,772,281 $32,779,231 $31,970,450 $31,413,945
Less: Goodwill and intangible assets, net488,294 495,830 424,716 426,111 428,733
Tangible assets$32,140,638 $32,276,451 $32,354,515 $31,544,339 $30,985,212
Tangible common equity ratio8.88% 8.61% 9.19% 9.33% 9.34%
Other data:
Fiduciary assets$44,371,510 $41,781,564 $41,222,162 $39,924,734 $39,113,305
Tax equivalent interest$4,428 $4,389 $4,455 $4,372 $4,385
Net unrealized gain (loss) on available for sale securities$(5,537) $(14,899) $159,533 $195,385 $155,236
Mortgage banking:
Mortgage production revenue$8,543 $11,937 $21,958 $19,086 $16,647
Mortgage loans funded for sale$711,019 $1,189,975 $1,864,583 $1,818,844 $1,244,015
Add: current period-end outstanding commitments381,732 318,359 630,804 965,631 902,986
Less: prior period end outstanding commitments318,359 630,804 965,631 902,986 601,147
Total mortgage production volume$774,392 $877,530 $1,529,756 $1,881,489 $1,545,854
Mortgage loan refinances to mortgage loans funded for sale44% 63% 51% 44% 49%
Gain on sale margin1.10% 1.36% 1.44% 1.01% 1.08%
Mortgage servicing revenue$16,648 $16,477 $16,558 $15,798 $15,453
Average outstanding principal balance of mortgage loans service for others22,006,295 21,924,552 21,514,962 20,736,525 19,986,444
Average mortgage servicing revenue rates0.31% 0.30% 0.31% 0.31% 0.31%
Gain (loss) on mortgage servicing rights, net of economic hedge:
Gain (loss) on mortgage hedge derivative contracts, net$(528) $(35,868) $2,268 $10,766 $7,138
Gain (loss) on fair value option securities, net(1,140) (20,922) (3,355) 4,279 9,443
Gain (loss) on economic hedge of mortgage servicing rights(1,668) (56,790) (1,087) 15,045 16,581
Gain (loss) on changes in fair value of mortgage servicing rights1,856 39,751 2,327 (16,283) (27,988)
Gain (loss) on changes in fair value of mortgage servicing rights, net of economic hedges, included in other operating revenue188 (17,039) 1,240 (1,238) (11,407)
Net interest revenue on fair value option securities21,271 114 861 1,348 2,033
Total economic benefit (cost) of changes in the fair value of mortgage servicing rights, net of economic hedges$1,459 $(16,925) $2,101 $110 $(9,374)

2 Actual interest earned on fair value option securities less internal transfer-priced cost of funds.


QUARTERLY EARNINGS TREND -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands, except ratio and per share data)
Three Months Ended
March 31, 2017 Dec. 31, 2016 Sept. 30, 2016 June 30, 2016 March 31, 2016
Interest revenue$226,390 $215,737 $209,317 $202,267 $201,796
Interest expense25,208 21,539 21,471 19,655 19,224
Net interest revenue201,182 194,198 187,846 182,612 182,572
Provision for credit losses 10,000 20,000 35,000
Net interest revenue after provision for credit losses201,182 194,198 177,846 162,612 147,572
Other operating revenue:
Brokerage and trading revenue33,623 28,500 38,006 39,530 32,341
Transaction card revenue32,127 34,521 33,933 34,950 32,354
Fiduciary and asset management revenue38,631 34,535 34,073 34,813 32,056
Deposit service charges and fees23,030 23,365 23,668 22,618 22,542
Mortgage banking revenue25,191 28,414 38,516 34,884 32,100
Other revenue11,752 12,693 13,080 13,352 11,904
Total fees and commissions164,354 162,028 181,276 180,147 163,297
Other gains (losses), net3,627 (1,279) 2,442 1,307 1,560
Gain (loss) on derivatives, net(450) (35,815) 2,226 10,766 7,138
Gain (loss) on fair value option securities, net(1,140) (20,922) (3,355) 4,279 9,443
Change in fair value of mortgage servicing rights1,856 39,751 2,327 (16,283) (27,988)
Gain (loss) on available for sale securities, net2,049 (9) 2,394 5,326 3,964
Total other operating revenue170,296 143,754 187,310 185,542 157,414
Other operating expense:
Personnel136,425 141,132 139,212 139,213 133,562
Business promotion6,717 7,344 6,839 6,703 5,696
Charitable contributions to BOKF Foundation 2,000
Professional fees and services12,379 16,828 14,038 14,158 11,759
Net occupancy and equipment21,624 21,470 20,111 19,677 18,766
Insurance6,404 8,705 9,390 7,129 7,265
Data processing and communications33,940 33,691 33,331 32,802 32,017
Printing, postage and supplies3,851 3,998 3,790 3,889 3,907
Net losses (gains) and operating expenses of repossessed assets1,009 1,627 (926) 1,588 1,070
Amortization of intangible assets1,802 1,558 1,521 2,624 1,159
Mortgage banking costs13,003 17,348 15,963 15,746 12,330
Other expense7,557 9,846 14,819 7,856 15,039
Total other operating expense244,711 265,547 258,088 251,385 242,570
Net income before taxes126,767 72,405 107,068 96,769 62,416
Federal and state income taxes38,103 22,496 31,956 30,497 21,428
Net income88,664 49,909 75,112 66,272 40,988
Net income (loss) attributable to non-controlling interests308 (117) 835 471 (1,576)
Net income attributable to BOK Financial Corporation shareholders$88,356 $50,026 $74,277 $65,801 $42,564
Average shares outstanding:
Basic64,639,437 64,719,018 65,085,392 65,245,887 65,296,541
Diluted64,707,210 64,787,728 65,157,841 65,302,926 65,331,428
Net income per share:
Basic$1.35 $0.76 $1.13 $1.00 $0.64
Diluted$1.35 $0.76 $1.13 $1.00 $0.64


LOANS TREND -- UNAUDITED
BOK FINANCIAL CORPORATION
(In thousands)
March 31, 2017 Dec. 31, 2016 Sept. 30, 2016 June 30, 2016 March 31, 2016
Commercial:
Energy $2,537,112 $2,497,868 $2,520,804 $2,818,656 $3,029,420
Services 3,013,375 3,108,990 2,936,599 2,830,864 2,728,891
Healthcare 2,265,604 2,201,916 2,085,046 2,051,146 1,995,425
Wholesale/retail 1,506,243 1,576,818 1,602,030 1,532,957 1,451,846
Manufacturing 543,430 514,975 499,486 595,403 600,645
Other commercial and industrial 461,346 490,257 476,198 527,411 482,198
Total commercial 10,327,110 10,390,824 10,120,163 10,356,437 10,288,425
Commercial real estate:
Retail 745,046 761,888 801,377 795,419 810,522
Multifamily 922,991 903,272 873,773 787,200 733,689
Office 860,889 798,888 752,705 769,112 695,552
Industrial 871,463 871,749 838,021 645,586 564,467
Residential construction and land development 135,994 135,533 159,946 157,576 171,949
Other commercial real estate 334,680 337,716 367,776 427,073 394,328
Total commercial real estate 3,871,063 3,809,046 3,793,598 3,581,966 3,370,507
Residential mortgage:
Permanent mortgage 977,743 1,006,820 969,558 969,007 948,405
Permanent mortgages guaranteed by U.S. government agencies 204,181 199,387 190,309 192,732 197,350
Home equity 764,350 743,625 712,926 719,184 723,554
Total residential mortgage 1,946,274 1,949,832 1,872,793 1,880,923 1,869,309
Personal 847,459 839,958 678,232 587,423 494,325
Total $16,991,906 $16,989,660 $16,464,786 $16,406,749 $16,022,566


LOANS BY PRINCIPAL MARKET AREA -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands)
March 31, 2017 Dec. 31, 2016 Sept. 30, 2016 June 30, 2016 March 31, 2016
Bank of Oklahoma:
Commercial$3,189,183 $3,370,259 $3,545,924 $3,698,215 $3,656,034
Commercial real estate691,332 684,381 795,806 781,458 747,689
Residential mortgage1,404,054 1,407,197 1,401,166 1,415,766 1,411,409
Personal310,708 303,823 271,420 246,229 204,158
Total Bank of Oklahoma5,595,277 5,765,660 6,014,316 6,141,668 6,019,290
Bank of Texas:
Commercial4,148,316 4,022,455 3,903,218 3,901,632 3,936,809
Commercial real estate1,452,988 1,415,011 1,400,709 1,311,408 1,211,978
Residential mortgage231,647 233,981 229,345 222,548 217,539
Personal312,092 306,748 278,167 233,304 210,456
Total Bank of Texas6,145,043 5,978,195 5,811,439 5,668,892 5,576,782
Bank of Albuquerque:
Commercial407,403 399,256 398,147 398,427 402,082
Commercial real estate307,927 284,603 299,785 322,956 323,059
Residential mortgage106,432 108,058 110,478 114,226 117,655
Personal11,305 11,483 11,333 10,569 10,823
Total Bank of Albuquerque833,067 803,400 819,743 846,178 853,619
Bank of Arkansas:
Commercial88,010 86,577 83,544 81,227 79,808
Commercial real estate74,469 73,616 72,649 69,235 66,674
Residential mortgage6,829 7,015 6,936 6,874 7,212
Personal6,279 6,524 6,757 7,025 918
Total Bank of Arkansas175,587 173,732 169,886 164,361 154,612
Colorado State Bank & Trust:
Commercial998,216 1,018,208 1,013,314 1,076,620 1,030,348
Commercial real estate266,218 265,264 254,078 237,569 219,078
Residential mortgage62,313 59,631 59,838 59,425 52,961
Personal49,523 50,372 42,901 35,064 24,497
Total Colorado State Bank & Trust1,376,270 1,393,475 1,370,131 1,408,678 1,326,884
Bank of Arizona:
Commercial643,222 686,253 680,447 670,814 656,527
Commercial real estate737,088 747,409 726,542 639,112 605,383
Residential mortgage36,737 36,265 39,206 38,998 40,338
Personal51,386 52,553 31,205 24,248 18,372
Total Bank of Arizona1,468,433 1,522,480 1,477,400 1,373,172 1,320,620
Mobank:
Commercial852,760 807,816 495,569 529,502 526,817
Commercial real estate341,041 338,762 244,029 220,228 196,646
Residential mortgage98,262 97,685 25,824 23,086 22,195
Personal106,166 108,455 36,449 30,984 25,101
Total Mobank1,398,229 1,352,718 801,871 803,800 770,759
TOTAL BOK FINANCIAL$16,991,906 $16,989,660 $16,464,786 $16,406,749 $16,022,566

Loans attributed to a geographical region may not always represent the location of the borrower or the collateral.


DEPOSITS BY PRINCIPAL MARKET AREA -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands)
March 31, 2017 Dec. 31, 2016 Sept. 30, 2016 June 30, 2016 March 31, 2016
Bank of Oklahoma:
Demand$4,320,666 $3,993,170 $4,158,273 $4,020,181 $3,813,128
Interest-bearing:
Transaction6,114,288 6,345,536 5,701,983 5,741,302 5,706,067
Savings265,014 241,696 242,959 247,984 246,122
Time1,189,144 1,118,355 1,091,464 1,167,271 1,198,022
Total interest-bearing7,568,446 7,705,587 7,036,406 7,156,557 7,150,211
Total Bank of Oklahoma11,889,112 11,698,757 11,194,679 11,176,738 10,963,339
Bank of Texas:
Demand3,091,258 3,137,009 2,734,981 2,677,253 2,571,883
Interest-bearing:
Transaction2,317,576 2,388,812 2,240,040 2,035,634 2,106,905
Savings89,640 83,101 84,642 83,862 83,263
Time511,037 535,642 528,380 516,231 530,657
Total interest-bearing2,918,253 3,007,555 2,853,062 2,635,727 2,720,825
Total Bank of Texas6,009,511 6,144,564 5,588,043 5,312,980 5,292,708
Bank of Albuquerque:
Demand593,117 627,979 584,681 530,853 557,200
Interest-bearing:
Transaction623,677 590,571 555,326 573,690 560,684
Savings53,683 49,963 54,480 49,200 47,187
Time233,506 238,408 244,706 250,068 259,630
Total interest-bearing910,866 878,942 854,512 872,958 867,501
Total Bank of Albuquerque1,503,983 1,506,921 1,439,193 1,403,811 1,424,701
Bank of Arkansas:
Demand42,622 26,389 32,203 30,607 31,318
Interest-bearing:
Transaction106,804 105,232 313,480 278,335 265,803
Savings2,304 2,192 2,051 1,853 1,929
Time15,067 16,696 17,534 18,911 21,035
Total interest-bearing124,175 124,120 333,065 299,099 288,767
Total Bank of Arkansas166,797 150,509 365,268 329,706 320,085
Colorado State Bank & Trust:
Demand601,778 576,000 517,063 528,124 413,506
Interest-bearing:
Transaction610,510 616,679 623,055 625,240 610,077
Savings37,801 32,866 31,613 31,509 33,108
Time234,740 242,782 247,667 254,164 271,475
Total interest-bearing883,051 892,327 902,335 910,913 914,660
Total Colorado State Bank & Trust1,484,829 1,468,327 1,419,398 1,439,037 1,328,166
Bank of Arizona:
Demand342,854 366,755 418,718 396,837 341,828
Interest-bearing:
Transaction180,254 305,099 303,750 302,297 313,825
Savings3,858 2,973 2,959 3,198 3,277
Time26,112 27,765 27,935 28,681 29,053
Total interest-bearing210,224 335,837 334,644 334,176 346,155
Total Bank of Arizona553,078 702,592 753,362 731,013 687,983
Mobank:
Demand514,278 508,418 235,445 240,755 221,812
Interest-bearing:
Transaction406,105 513,176 86,526 112,371 146,405
Savings13,424 12,679 1,645 1,656 1,619
Time34,242 42,152 11,945 11,735 31,502
Total interest-bearing453,771 568,007 100,116 125,762 179,526
Total Mobank968,049 1,076,425 335,561 366,517 401,338
TOTAL BOK FINANCIAL$22,575,359 $22,748,095 $21,095,504 $20,759,802 $20,418,320


NET INTEREST MARGIN TREND -- UNAUDITED
BOK FINANCIAL CORPORATION
Three Months Ended
March 31, 2017 Dec. 31, 2016 Sept. 30, 2016 June 30, 2016 March 31, 2016
TAX-EQUIVALENT ASSETS YIELDS
Interest-bearing cash and cash equivalents0.82% 0.55% 0.51% 0.51% 0.53%
Trading securities3.87% 3.91% 2.71% 1.89% 2.47%
Investment securities:
Taxable5.44% 5.39% 5.34% 5.41% 5.53%
Tax-exempt2.45% 2.33% 2.26% 2.25% 2.22%
Total investment securities3.70% 3.60% 3.51% 3.52% 3.51%
Available for sale securities:
Taxable2.02% 1.98% 1.99% 2.01% 2.06%
Tax-exempt5.37% 5.27% 5.47% 5.06% 4.95%
Total available for sale securities2.05% 2.00% 2.01% 2.04% 2.08%
Fair value option securities2.27% 0.99% 1.70% 2.19% 2.38%
Restricted equity securities5.52% 5.45% 5.37% 4.84% 5.85%
Residential mortgage loans held for sale3.35% 3.31% 3.28% 3.53% 3.75%
Loans3.88% 3.67% 3.63% 3.58% 3.57%
Allowance for loan losses
Loans, net of allowance3.94% 3.72% 3.69% 3.63% 3.63%
Total tax-equivalent yield on earning assets3.15% 2.98% 2.93% 2.91% 2.92%
COST OF INTEREST-BEARING LIABILITIES
Interest-bearing deposits:
Interest-bearing transaction0.20% 0.16% 0.14% 0.14% 0.14%
Savings0.08% 0.09% 0.09% 0.10% 0.09%
Time1.09% 1.12% 1.14% 1.16% 1.21%
Total interest-bearing deposits0.35% 0.32% 0.32% 0.33% 0.34%
Funds purchased0.47% 0.28% 0.19% 0.19% 0.27%
Repurchase agreements0.02% 0.02% 0.04% 0.05% 0.05%
Other borrowings0.83% 0.61% 0.57% 0.57% 0.56%
Subordinated debt5.68% 5.51% 3.84% 1.52% 1.26%
Total cost of interest-bearing liabilities0.52% 0.44% 0.44% 0.41% 0.40%
Tax-equivalent net interest revenue spread2.63% 2.54% 2.49% 2.50% 2.52%
Effect of noninterest-bearing funding sources and other0.18% 0.15% 0.15% 0.13% 0.13%
Tax-equivalent net interest margin2.81% 2.69% 2.64% 2.63% 2.65%

Yield calculations are shown on a tax equivalent basis at the statutory federal and state rates for the periods presented. The yield calculations exclude security trades that have been recorded on trade date with no corresponding interest income and the unrealized gains and losses. The yield calculation also includes average loan balances for which the accrual of interest has been discontinued and are net of unearned income. Yield/rate calculations are generally based on the conventions that determine how interest income and expense is accrued.


CREDIT QUALITY INDICATORS -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands, except ratios)
Three Months Ended
March 31, 2017 Dec. 31, 2016 Sept. 30, 2016 June 30, 2016 March 31, 2016
Nonperforming assets:
Nonaccruing loans:
Commercial$156,825 $178,953 $176,464 $181,989 $174,652
Commercial real estate4,475 5,521 7,350 7,780 9,270
Residential mortgage46,081 46,220 52,452 57,061 57,577
Personal235 290 686 354 331
Total nonaccruing loans207,616 230,984 236,952 247,184 241,830
Accruing renegotiated loans guaranteed by U.S. government agencies83,577 81,370 80,306 78,806 77,597
Real estate and other repossessed assets42,726 44,287 31,941 24,054 29,896
Total nonperforming assets$333,919 $356,641 $349,199 $350,044 $349,323
Total nonperforming assets excluding those guaranteed by U.S. government agencies$240,234 $263,425 $253,461 $251,497 $252,176
Nonaccruing loans by loan class:
Commercial:
Energy$110,425 $132,499 $142,966 $168,145 $159,553
Services7,713 8,173 8,477 9,388 9,512
Wholesale / retail11,090 11,407 2,453 2,772 3,685
Manufacturing5,907 4,931 274 293 312
Healthcare909 825 855 875 1,023
Other commercial and industrial20,781 21,118 21,439 516 567
Total commercial156,825 178,953 176,464 181,989 174,652
Commercial real estate:
Residential construction and land development2,616 3,433 3,739 4,261 4,789
Retail314 326 1,249 1,265 1,302
Office413 426 882 606 629
Multifamily24 38 51 65 250
Industrial76 76 76 76 76
Other commercial real estate1,032 1,222 1,353 1,507 2,224
Total commercial real estate4,475 5,521 7,350 7,780 9,270
Residential mortgage:
Permanent mortgage24,188 22,855 25,956 27,228 27,497
Permanent mortgage guaranteed by U.S. government agencies10,108 11,846 15,432 19,741 19,550
Home equity11,785 11,519 11,064 10,092 10,530
Total residential mortgage46,081 46,220 52,452 57,061 57,577
Personal235 290 686 354 331
Total nonaccruing loans$207,616 $230,984 $236,952 $247,184 $241,830
Performing loans 90 days past due1$95 $5 $3,839 $2,899 $8,019
Gross charge-offs$(2,153) $(1,651) $(8,101) $(8,845) $(23,991)
Recoveries2,900 2,813 2,038 1,386 1,519
Net recoveries (charge-offs)$747 $1,162 $(6,063) $(7,459) $(22,472)
Provision for credit losses$ $ $10,000 $20,000 $35,000
Allowance for loan losses to period end loans1.46% 1.45% 1.49% 1.48% 1.46%
Combined allowance for credit losses to period end loans1.52% 1.52% 1.56% 1.54% 1.50%
Nonperforming assets to period end loans and repossessed assets1.96% 2.09% 2.12% 2.13% 2.18%
Net charge-offs (annualized) to average loans(0.02)% (0.03)% 0.15% 0.18% 0.56%
Allowance for loan losses to nonaccruing loans1125.92% 112.33% 110.65% 106.95% 104.89%
Combined allowance for credit losses to nonaccruing loans1130.70% 117.46% 115.67% 110.93% 107.87%

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