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BOK Financial Reports Quarterly Earnings of $88 Million

TULSA, Okla., July 26, 2017 (GLOBE NEWSWIRE) -- BOK Financial Corporation (Nasdaq:BOKF) reported net income of $88.1 million or $1.35 per diluted share for the second quarter of 2017. Net income was $88.4 million or $1.35 per diluted share for the first quarter of 2017 and $65.8 million or $1.00 per diluted share for the second quarter of 2016.

Steven G. Bradshaw, president and chief executive officer of BOK Financial, stated, “It was another very strong quarter for BOK Financial, with net income up 34 percent compared to the second quarter of 2016 and 63 percent compared to the first half of 2016. Profit growth was driven by higher net interest margin and net interest income combined with continued careful expense management, as total expenses are essentially flat compared to last year. At the same time, credit quality remains sound, resulting in us recording no provision for credit losses for the third consecutive quarter.”

Bradshaw continued, “I want to commend all of our employees for their dedication to the company, as evidenced by BOK Financial being named one of the most respected banks in America in an annual survey by Reputation Institute and American Banker magazine. The survey ranks BOK Financial highest in the areas that are very important to us, including corporate citizenship, governance, workplace, ethical behavior and fairness in the way we conduct business. This validates that we have a strong and effective culture and that our employees show pride in our company and their work.”

Second Quarter 2017 Highlights

  • Net interest revenue totaled $205.2 million for the second quarter of 2017, up $4.0 million over the first quarter of 2017. Net interest margin increased to 2.89 percent for the second quarter of 2017 from 2.81 percent for the first quarter of 2017. Average earning assets decreased $359 million compared to the first quarter of 2017.

  • Fees and commissions revenue totaled $177.5 million for the second quarter of 2017, a $13.1 million increase over the prior quarter. Mortgage banking revenue was up $5.1 million. Fiduciary and asset management revenue grew by $3.2 million and transaction card revenue increased $3.2 million.

  • Operating expense was $250.9 million for the second quarter of 2017, an increase of $6.2 million over the prior quarter. Personnel expense was up $7.3 million over the prior quarter, primarily due to certain performance-based equity awards. Non-personnel expense decreased $1.1 million. Deposit insurance expense decreased primarily due to $5.1 million in credits received during the second quarter of 2017 related to revision of certain inputs to the assessment calculation filed in previous periods. Combined, all other non-personnel expense increased $4.0 million.

  • Income tax expense was $47.7 million or 34.9 percent of net income before taxes for the second quarter of 2017, compared to $38.1 million or 30.1 percent in the first quarter of 2017. The effective tax rate was 33.7 percent for the second quarter of 2017 and 33.2 percent for the first quarter of 2017, excluding a change in accounting for the tax effect of equity compensation. Tax expense may fluctuate based on the time period when equity awards vest as a result of this change.

  • No provision for credit losses was recorded in the second quarter of 2017 or the first quarter of 2017. The company had net charge-offs of $1.7 million in the second quarter of 2017, compared to a net recovery of $747 thousand in the previous quarter.

  • The combined allowance for credit losses totaled $256 million or 1.49 percent of outstanding loans at June 30, 2017 compared to $258 million or 1.52 percent of outstanding loans at March 31, 2017.

  • Nonperforming assets that are not guaranteed by U.S. government agencies totaled $276 million or 1.62 percent of outstanding loans and repossessed assets at June 30, 2017 and $240 million or 1.43 percent of outstanding loans and repossessed assets at March 31, 2017. The increase in nonperforming assets was primarily due to nonaccruing healthcare and energy loans.

  • Average loans were largely unchanged compared to the previous quarter. Period-end outstanding loan balances totaled $17.2 billion at June 30, 2017, an increase of $192 million over March 31, 2017.

  • Average deposits decreased $277 million compared to the previous quarter. Average demand deposit balances grew by $237 million, offset by a $480 million decrease in average interest-bearing transaction deposits and a $55 million decrease in time deposit balances. Period-end deposits were $22.3 billion at June 30, 2017, a $259 million decrease compared to March 31, 2017.

  • The common equity Tier 1 capital ratio at June 30, 2017 was 11.76 percent. Other regulatory capital ratios were Tier 1 capital ratio, 11.76 percent, total capital ratio, 13.37 percent and leverage ratio, 9.26 percent. At March 31, 2017, the common equity Tier 1 capital ratio was 11.59 percent, the Tier 1 capital ratio was 11.59 percent, total capital ratio was 13.25 percent, and leverage ratio was 8.89 percent.

  • The company paid a regular quarterly cash dividend of $29 million or $0.44 per common share during the second quarter of 2017. On July 25, 2017, the board of directors approved a quarterly cash dividend of $0.44 per common share payable on or about August 25, 2017 to shareholders of record as of August 11, 2017.

Net Interest Revenue

Net interest revenue was $205.2 million for the second quarter of 2017, up $4.0 million over the first quarter of 2017.

Net interest margin was 2.89 percent for the second quarter of 2017, an increase of 8 basis points over the first quarter of 2017, due largely to the impact of an increase in short-term market interest rates. The Federal Reserve's 25 basis point hikes in March and June increased yields on floating-rate earning assets, but had minimal impact on deposit costs. The yield on average earning assets was 3.30 percent, an increase of 15 basis points. The loan portfolio yield increased 15 basis points to 4.03 percent. The yield on the available for sale securities portfolio increased 6 basis points to 2.11 percent. The yield on interest-bearing cash and cash equivalents increased 22 basis points. Funding costs were 0.63 percent, up 11 basis points. Growth in the cost of interest-bearing deposits increased 5 basis points to 0.40 percent as market pricing pressure remained relatively subdued.

Steven Nell, chief financial officer, added, “We are encouraged that net interest margins continue to migrate back to pre–Great Recession levels. The banking industry still has a lot of ground to make up after a decade of near-zero interest rates. To date, we are seeing limited deposit price competition across our footprint, and we are hopeful that this rational behavior will continue."

Average earning assets decreased $359 million compared to the second quarter of 2017. The average balance of the available for sale securities portfolio decreased $183 million. Average trading securities portfolio balances decreased $124 million and interest-bearing cash and cash equivalents balances decreased $80 million. These decreases were partially offset by a $60 million increase in the average balance of fair value option securities held as an economic hedge of our mortgage servicing rights.

Average interest-bearing deposit balances decreased $514 million compared to the first quarter of 2017. The average balance of borrowed funds decreased $254 million.

Fees and Commissions Revenue

Fees and commissions revenue totaled $177.5 million for the second quarter of 2017, an increase of $13.1 million over the first quarter of 2017.

Mortgage banking revenue totaled $30.3 million for the second quarter of 2017, a $5.1 million increase over the first quarter of 2017. Revenue from mortgage loan production increased $5.3 million. Mortgage production volume increased $109 million in response to lower primary mortgage interest rates and normal seasonality. Gain on sale margin improved 47 basis points over the first quarter of 2017, primarily due to increased retail margins and improved pipeline hedging performance.

Fiduciary and asset management revenue grew by $3.2 million to $41.8 million, primarily due to an annual assessment of tax preparation fees and a $96 million increase in the value of fiduciary assets under management.

Transaction card revenue was up $3.2 million, primarily due to a seasonal increase in transaction volumes and a full quarter's impact of TransFund's expansion into the Arizona market.

Brokerage and trading revenue decreased $1.9 million primarily due to a $1.0 million decrease in trading revenue and an $862 thousand decrease in retail brokerage revenue. Institutional trading volumes were lower compared to the prior quarter, primarily due to customer anticipation of future interest rate increases. Implementation of the fiduciary rule during the second quarter slowed retail sales activity.

Other Gains, Net

Other gains totaled $6.1 million primarily due to a $5.7 million gain on sale of a merchant banking investment during the second quarter of 2017. Other gains totaled $3.6 million in the first quarter of 2017.

Operating Expense

Total operating expense was $250.9 million for the second quarter of 2017, a $6.2 million increase over the first quarter of 2017.

Personnel expense increased $7.3 million. Incentive compensation expense increased $7.1 million. Share-based compensation expense was up $5.8 million related to adjustments in the vesting assumptions of certain performance-based awards that were granted in January 2015 and a $5.86 per share increase in the fair value of BOK Financial common shares. Cash-based incentive compensation expense increased $1.1 million. A $2.6 million increase in employee healthcare costs were offset by a $2.2 million seasonal decrease in payroll tax expense.

Non-personnel expense decreased $1.1 million compared to the first quarter of 2017. Deposit insurance expense decreased $5.7 million. In conjunction with ongoing cost reduction efforts, management performed a comprehensive review of inputs into the deposit insurance assessment calculation that resulted in $5.1 million of rebates for years 2013 through 2016. Data processing and communication expense increased $1.4 million primarily due to increased transaction activity. Net losses and operating expenses of repossessed assets increased $1.3 million primarily due to increased operating expenses related to repossessed oil and gas properties. This increased expense was offset by revenue from these properties included in other revenue.

Loans, Deposits and Capital

Loans

Outstanding loans were $17.2 billion at June 30, 2017, an increase of $192 million over March 31, 2017. Growth in commercial loan balances was partially offset by a decrease in commercial real estate loan balances.

Outstanding commercial loan balances increased $311 million, primarily due to growth in energy loan balances. Unfunded energy loan commitments were largely unchanged at $2.7 billion. Other commercial and industrial loans increased by $59 million and wholesale/retail sector loan balances increased by $37 million. This growth was offset by a $55 million decrease in service sector loan balances and a $44 million decrease in healthcare sector loan balances.

Commercial real estate loan balances decreased $182 million from March 31, 2017. Loans secured by industrial properties decreased $178 million. Retail sector loans decreased $22 million, primarily in the Oklahoma, Arizona and Texas markets, partially offset by growth in the Kansas/Missouri and Colorado markets. Multifamily residential loans increased $29 million. Growth in the Texas market was partially offset by a decrease in the Kansas/Missouri market.

Deposits

Period-end deposits totaled $22.3 billion at June 30, 2017, a $259 million decrease compared to March 31, 2017. Interest-bearing transaction account balances decreased $272 million and time deposits decreased $48 million, partially offset by a $62 million increase in demand deposit balances. Wealth Management deposits grew by $207 million and Commercial Banking deposits decreased $344 million. Consumer Banking deposits were largely unchanged compared to the previous quarter.

Capital

The company's common equity Tier 1 capital ratio was 11.76 percent at June 30, 2017. In addition, the company's Tier 1 capital ratio was 11.76 percent, total capital ratio was 13.37 percent and leverage ratio was 9.26 percent at June 30, 2017. At March 31, 2017, the company's common equity Tier 1 capital ratio was 11.59 percent, Tier 1 capital ratio was 11.59 percent, total capital ratio was 13.25 percent, and leverage ratio was 8.89 percent.

The company's tangible common equity ratio, a non-GAAP measure, was 9.24 percent at June 30, 2017 and 8.88 percent at March 31, 2017. 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 $365 million or 2.12 percent of outstanding loans and repossessed assets at June 30, 2017, compared to $334 million or 1.96 percent at March 31, 2017. Nonperforming assets that are not guaranteed by U.S. government agencies totaled $276 million or 1.62 percent of outstanding loans and repossessed assets (excluding those guaranteed by U.S. government agencies) at June 30, 2017, compared to $240 million or 1.43 percent at March 31, 2017.

Nonaccruing loans totaled $245 million or 1.43 percent of outstanding loans at June 30, 2017, up from $208 million or 1.22 percent of outstanding loans at March 31, 2017. The increase in nonaccruing loans was primarily due to a $24 million increase in healthcare loans and a $14 million increase in energy loans. New nonaccruing loans identified in the second quarter totaled $59 million, offset by $15 million in payments received, $2.9 million in charge-offs and $2.3 million in foreclosures and repossessions. Additionally, $618 thousand was returned to accruing status based on improved credit risk and performance. At June 30, 2017, nonaccruing commercial loans totaled $197 million or 1.85 percent of outstanding commercial loans, nonaccruing commercial real estate loans totaled $3.8 million or 0.10 percent of outstanding commercial real estate loans and nonaccruing residential mortgage loans totaled $44 million or 2.28 percent of outstanding residential mortgage loans.

Approximately $73 million of nonaccruing loans required a specific allowance of $9.7 million. No specific allowance was necessary for the remaining $172 million of nonaccruing loans based on estimated cash flows or collateral value. At March 31, 2017, $52 million of nonaccruing loans required specific allowances of $3.5 million. No specific allowance was necessary for the remaining $156 million of nonaccruing 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, totaled $327 million at June 30 compared to $413 million at March 31. The decrease largely resulted from energy, manufacturing and service sector potential problem loans, partially offset by an increase in other commercial and industrial potential problem loans.

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

Based on an evaluation of all credit factors, including changes in nonaccruing and potential problem loans, overall loan portfolio growth and net charge-offs, the company determined that no provision for credit losses was necessary during the first and second quarter of 2017.

The combined allowance for credit losses totaled $256 million or 1.49 percent of outstanding loans and 109 percent of nonaccruing loans at June 30, 2017, excluding residential mortgage loans guaranteed by U.S. government agencies. The allowance for loan losses was $250 million and the accrual for off-balance sheet credit losses was $6.4 million. At March 31, 2017, the combined allowance for credit losses was $258 million or 1.52 percent of outstanding loans and 131 percent of nonaccruing loans, excluding loans guaranteed by U.S. government agencies. 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 $8.3 billion at June 30, 2017, a $96 million decrease compared to March 31, 2017. At June 30, 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 $2.8 billion of commercial mortgage-backed securities fully backed by U.S. government agencies.

At June 30, 2017, the available for sale securities portfolio had a net unrealized gain of $16 million compared to a net unrealized loss of $5.5 million at March 31, 2017, primarily due to changes in interest rates. The $7.3 million net unrealized loss on residential mortgage-backed securities issued by U.S. government agencies at March 31, 2017 improved to a net unrealized gain of $995 thousand at June 30, 2017. Commercial mortgage-backed securities had a net unrealized loss of $6.5 million at June 30, 2017, a $12 million improvement compared to March 31, 2017.

The company also maintains a portfolio of financial instruments consisting primarily 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 $247 thousand during the second quarter of 2017, including a $6.9 million decrease in the fair value of mortgage servicing rights, a $5.2 million increase in the fair value of securities and derivative contracts held as an economic hedge and $2.0 million of related net interest revenue.

The fair value of mortgage servicing rights increased by $1.9 million during the first quarter of 2017 primarily due to an increase in residential mortgage rates. The fair value of securities and interest rate derivative contracts held as an economic hedge of mortgage servicing rights decreased by $1.7 million.

Conference Call and Webcast

The company will hold a conference call at 9 a.m. Central time on Wednesday, July 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 1-412-317-6671 and referencing conference ID # 13666185.

About BOK Financial Corporation

BOK Financial Corporation is a $32 billion regional financial services company based in Tulsa, Oklahoma. The company's stock is publicly traded on NASDAQ under the Global Select market listings (symbol: BOKF). BOK Financial's holdings include BOKF, NA, BOK Financial Securities, Inc. and The Milestone Group, Inc. BOKF, NA operates TransFund, Cavanal Hill Investment Management, BOK Financial Asset Management, Inc. and seven banking divisions: Bank of Albuquerque, Bank of Arizona, Bank of Arkansas, 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 June 30, 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)
June 30, 2017 Mar. 31, 2017 June 30, 2016
ASSETS
Cash and due from banks$561,587 $546,575 $498,713
Interest-bearing cash and cash equivalents2,078,831 2,220,640 1,907,838
Trading securities441,414 677,156 211,622
Investment securities490,426 519,402 560,711
Available for sale securities8,341,041 8,437,291 8,830,689
Fair value option securities445,169 441,714 263,265
Restricted equity securities311,033 283,936 319,639
Residential mortgage loans held for sale287,259 248,707 430,728
Loans:
Commercial10,637,955 10,327,110 10,356,437
Commercial real estate3,688,592 3,871,063 3,581,966
Residential mortgage1,939,198 1,946,274 1,880,923
Personal917,900 847,459 587,423
Total loans17,183,645 16,991,906 16,406,749
Allowance for loan losses(250,061) (248,710) (243,259)
Loans, net of allowance16,933,584 16,743,196 16,163,490
Premises and equipment, net321,038 325,546 315,199
Receivables295,042 394,394 173,638
Goodwill446,697 445,738 382,739
Intangible assets, net40,755 42,556 43,372
Mortgage servicing rights245,239 249,403 190,747
Real estate and other repossessed assets, net39,436 42,726 24,054
Derivative contracts, net280,289 304,727 883,673
Cash surrender value of bank-owned life insurance312,774 310,537 307,860
Receivable on unsettled securities sales33,177 9,921 142,820
Other assets358,741 384,767 319,653
TOTAL ASSETS$32,263,532 $32,628,932 $31,970,450
LIABILITIES AND EQUITY
Deposits:
Demand$9,568,895 $9,506,573 $8,424,609
Interest-bearing transaction10,087,139 10,359,214 9,668,869
Savings464,318 465,724 419,262
Time2,196,122 2,243,848 2,247,061
Total deposits22,316,474 22,575,359 20,759,801
Funds purchased67,990 47,629 56,780
Repurchase agreements396,333 508,352 472,683
Other borrowings5,232,343 5,238,947 5,830,736
Subordinated debentures144,658 144,649 371,812
Accrued interest, taxes and expense133,198 140,235 197,742
Due on unsettled securities purchases32,636 137,069 11,757
Derivative contracts, net285,819 276,422 719,159
Other liabilities204,536 189,376 147,242
TOTAL LIABILITIES28,813,987 29,258,038 28,567,712
Shareholders' equity:
Capital, surplus and retained earnings3,414,505 3,346,965 3,251,201
Accumulated other comprehensive income (loss)7,964 (5,221) 117,632
TOTAL SHAREHOLDERS' EQUITY3,422,469 3,341,744 3,368,833
Non-controlling interests27,076 29,150 33,905
TOTAL EQUITY3,449,545 3,370,894 3,402,738
TOTAL LIABILITIES AND EQUITY$32,263,532 $32,628,932 $31,970,450


AVERAGE BALANCE SHEETS -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands)
Three Months Ended
June 30, 2017 Mar. 31, 2017 Dec. 31, 2016 Sept. 30, 2016 June 30, 2016
ASSETS
Interest-bearing cash and cash equivalents$2,007,746 $2,087,964 $2,032,785 $2,047,991 $2,022,028
Trading securities456,028 579,549 476,498 366,545 237,808
Investment securities499,372 530,936 542,869 552,592 562,391
Available for sale securities8,384,057 8,567,049 8,766,555 8,862,590 8,890,112
Fair value option securities476,102 416,524 210,733 266,998 368,434
Restricted equity securities295,743 312,498 334,114 335,812 319,136
Residential mortgage loans held for sale245,401 220,325 345,066 445,930 401,114
Loans:
Commercial10,604,456 10,414,579 10,228,095 10,109,692 10,265,782
Commercial real estate3,676,976 3,903,850 3,749,393 3,789,673 3,550,611
Residential mortgage1,933,091 1,962,759 1,919,296 1,870,855 1,864,458
Personal915,010 854,637 826,804 677,530 582,281
Total loans17,129,533 17,135,825 16,723,588 16,447,750 16,263,132
Allowance for loan losses(251,632) (249,379) (246,977) (247,901) (245,448)
Total loans, net16,877,901 16,886,446 16,476,611 16,199,849 16,017,684
Total earning assets29,242,350 29,601,291 29,185,231 29,078,307 28,818,707
Cash and due from banks530,352 547,104 578,694 511,534 507,085
Derivative contracts, net248,168 401,886 681,455 766,671 823,584
Cash surrender value of bank-owned life insurance311,310 309,223 309,532 308,670 306,318
Receivable on unsettled securities sales79,248 62,641 33,813 259,906 49,568
Other assets1,957,143 2,032,844 2,172,351 1,721,385 1,480,780
TOTAL ASSETS$32,368,571 $32,954,989 $32,961,076 $32,646,473 $31,986,042
LIABILITIES AND EQUITY
Deposits:
Demand$9,338,683 $9,101,763 $9,124,595 $8,497,037 $8,162,134
Interest-bearing transaction10,087,640 10,567,475 9,980,132 9,650,618 9,590,855
Savings461,586 441,254 421,654 420,009 417,122
Time2,204,422 2,258,930 2,177,035 2,197,350 2,297,621
Total deposits22,092,331 22,369,422 21,703,416 20,765,014 20,467,732
Funds purchased63,263 55,508 62,004 68,280 70,682
Repurchase agreements427,353 523,561 560,891 522,822 611,264
Other borrowings5,572,031 5,737,955 6,072,150 6,342,369 6,076,028
Subordinated debentures144,654 144,644 144,635 255,890 232,795
Derivative contracts, net178,695 405,444 682,808 747,187 791,313
Due on unsettled securities purchases157,438 91,529 77,575 200,574 93,812
Other liabilities323,373 299,534 321,404 352,671 298,170
TOTAL LIABILITIES28,959,138 29,627,597 29,624,883 29,254,807 28,641,796
Total equity3,409,433 3,327,392 3,336,193 3,391,666 3,344,246
TOTAL LIABILITIES AND EQUITY$32,368,571 $32,954,989 $32,961,076 $32,646,473 $31,986,042


STATEMENTS OF EARNINGS -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands, except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
2017 2016 2017 2016
Interest revenue$235,181 $202,267 $461,571 $404,063
Interest expense29,977 19,655 55,185 38,879
Net interest revenue205,204 182,612 406,386 365,184
Provision for credit losses 20,000 55,000
Net interest revenue after provision for credit losses205,204 162,612 406,386 310,184
Other operating revenue:
Brokerage and trading revenue31,764 39,530 65,387 71,871
Transaction card revenue35,296 34,950 67,423 67,304
Fiduciary and asset management revenue41,808 34,813 80,439 66,869
Deposit service charges and fees23,354 22,618 46,384 45,160
Mortgage banking revenue30,276 34,884 55,467 66,984
Other revenue14,984 13,352 26,736 25,256
Total fees and commissions177,482 180,147 341,836 343,444
Other gains, net6,108 1,307 9,735 2,867
Gain on derivatives, net3,241 10,766 2,791 17,904
Gain on fair value option securities, net1,984 4,279 844 13,722
Change in fair value of mortgage servicing rights(6,943) (16,283) (5,087) (44,271)
Gain on available for sale securities, net380 5,326 2,429 9,290
Total other operating revenue182,252 185,542 352,548 342,956
Other operating expense:
Personnel143,744 139,213 280,169 272,775
Business promotion7,738 6,703 14,455 12,399
Professional fees and services12,419 14,158 23,836 25,917
Net occupancy and equipment21,125 19,677 42,749 38,443
Insurance689 7,129 7,093 14,394
Data processing and communications36,330 32,802 71,232 64,819
Printing, postage and supplies4,140 3,889 7,991 7,796
Net losses and operating expenses of repossessed assets2,267 1,588 3,276 2,658
Amortization of intangible assets1,803 2,624 3,605 3,783
Mortgage banking costs12,072 15,746 25,075 28,076
Other expense8,558 7,856 16,115 22,895
Total other operating expense250,885 251,385 495,596 493,955
Net income before taxes136,571 96,769 263,338 159,185
Federal and state income taxes47,705 30,497 85,808 51,925
Net income88,866 66,272 177,530 107,260
Net income (loss) attributable to non-controlling interests719 471 1,027 (1,105)
Net income attributable to BOK Financial Corporation shareholders$88,147 $65,801 $176,503 $108,365
Average shares outstanding:
Basic64,729,752 65,245,887 64,722,744 65,271,214
Diluted64,793,134 65,302,926 64,788,322 65,317,177
Net income per share:
Basic$1.35 $1.00 $2.70 $1.64
Diluted$1.35 $1.00 $2.69 $1.64


FINANCIAL HIGHLIGHTS -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands, except ratio and share data)
Three Months Ended
June 30, 2017 Mar. 31, 2017 Dec. 31, 2016 Sept. 30, 2016 June 30, 2016
Capital:
Period-end shareholders' equity$3,422,469 $3,341,744 $3,274,854 $3,398,311 $3,368,833
Risk weighted assets$25,127,604 $24,901,019 $25,274,848 $24,358,385 $24,191,016
Risk-based capital ratios:
Common equity tier 111.76% 11.59% 11.21% 11.99% 11.86%
Tier 111.76% 11.59% 11.21% 11.99% 11.86%
Total capital13.37% 13.25% 12.81% 13.65% 13.51%
Leverage ratio9.26% 8.89% 8.72% 9.06% 9.06%
Tangible common equity ratio19.24% 8.88% 8.61% 9.19% 9.33%
Common stock:
Book value per share$52.32 $51.09 $50.12 $51.56 $51.15
Tangible book value per share44.87 43.63 42.53 45.12 44.68
Market value per share:
High$88.31 $85.25 $85.00 $70.05 $65.14
Low$74.09 $73.44 $67.11 $56.36 $51.00
Cash dividends paid$28,652 $28,646 $28,860 $28,181 $28,241
Dividend payout ratio32.50% 32.42% 57.69% 37.94% 42.92%
Shares outstanding, net65,416,403 65,408,019 65,337,432 65,910,454 65,866,317
Stock buy-back program:
Shares repurchased 700,000 305,169
Amount$ $ $49,021 $ $17,771
Average price per share$ $ $70.03 $ $58.23
Performance ratios (quarter annualized):
Return on average assets1.09% 1.09% 0.60% 0.91% 0.83%
Return on average equity10.46% 10.86% 6.03% 8.80% 8.00%
Net interest margin2.89% 2.81% 2.69% 2.64% 2.63%
Efficiency ratio64.61% 65.77% 72.93% 68.88% 68.16%
Reconciliation of non-GAAP measures:
1 Tangible common equity ratio:
Total shareholders' equity$3,422,469 $3,341,744 $3,274,854 $3,398,311 $3,368,833
Less: Goodwill and intangible assets, net487,452 488,294 495,830 424,716 426,111
Tangible common equity$2,935,017 $2,853,450 $2,779,024 $2,973,595 $2,942,722
Total assets$32,263,532 $32,628,932 $32,772,281 $32,779,231 $31,970,450
Less: Goodwill and intangible assets, net487,452 488,294 495,830 424,716 426,111
Tangible assets$31,776,080 $32,140,638 $32,276,451 $32,354,515 $31,544,339
Tangible common equity ratio9.24% 8.88% 8.61% 9.19% 9.33%
Other data:
Fiduciary assets$45,089,153 $44,992,920 $42,378,053 $41,810,943 $40,496,583
Tax equivalent interest$4,330 $4,428 $4,389 $4,455 $4,372
Net unrealized gain (loss) on available for sale securities$16,041 $(5,537) $(14,899) $159,533 $195,385
Mortgage banking:
Mortgage production revenue$13,840 $8,543 $11,937 $21,958 $19,086
Mortgage loans funded for sale$902,978 $711,019 $1,189,975 $1,864,583 $1,818,844
Add: current period-end outstanding commitments362,088 381,732 318,359 630,804 965,631
Less: prior period end outstanding commitments381,732 318,359 630,804 965,631 902,986
Total mortgage production volume$883,334 $774,392 $877,530 $1,529,756 $1,881,489
Mortgage loan refinances to mortgage loans funded for sale33% 44% 63% 51% 44%
Gain on sale margin1.57% 1.10% 1.36% 1.44% 1.01%
Mortgage servicing revenue$16,436 $16,648 $16,477 $16,558 $15,798
Average outstanding principal balance of mortgage loans service for others22,055,127 22,006,295 21,924,552 21,514,962 20,736,525
Average mortgage servicing revenue rates0.30% 0.31% 0.30% 0.31% 0.31%
Gain (loss) on mortgage servicing rights, net of economic hedge:
Gain (loss) on mortgage hedge derivative contracts, net$3,241 $(528) $(35,868) $2,268 $10,766
Gain (loss) on fair value option securities, net1,984 (1,140) (20,922) (3,355) 4,279
Gain (loss) on economic hedge of mortgage servicing rights5,225 (1,668) (56,790) (1,087) 15,045
Gain (loss) on changes in fair value of mortgage servicing rights(6,943) 1,856 39,751 2,327 (16,283)
Gain (loss) on changes in fair value of mortgage servicing rights, net of economic hedges, included in other operating revenue(1,718) 188 (17,039) 1,240 (1,238)
Net interest revenue on fair value option securities21,965 1,271 114 861 1,348
Total economic benefit (cost) of changes in the fair value of mortgage servicing rights, net of economic hedges$247 $1,459 $(16,925) $2,101 $110

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
June 30, 2017 Mar. 31, 2017 Dec. 31, 2016 Sept. 30, 2016 June 30, 2016
Interest revenue$235,181 $226,390 $215,737 $209,317 $202,267
Interest expense29,977 25,208 21,539 21,471 19,655
Net interest revenue205,204 201,182 194,198 187,846 182,612
Provision for credit losses 10,000 20,000
Net interest revenue after provision for credit losses205,204 201,182 194,198 177,846 162,612
Other operating revenue:
Brokerage and trading revenue31,764 33,623 28,500 38,006 39,530
Transaction card revenue35,296 32,127 34,521 33,933 34,950
Fiduciary and asset management revenue41,808 38,631 34,535 34,073 34,813
Deposit service charges and fees23,354 23,030 23,365 23,668 22,618
Mortgage banking revenue30,276 25,191 28,414 38,516 34,884
Other revenue14,984 11,752 12,693 13,080 13,352
Total fees and commissions177,482 164,354 162,028 181,276 180,147
Other gains (losses), net6,108 3,627 (1,279) 2,442 1,307
Gain (loss) on derivatives, net3,241 (450) (35,815) 2,226 10,766
Gain (loss) on fair value option securities, net1,984 (1,140) (20,922) (3,355) 4,279
Change in fair value of mortgage servicing rights(6,943) 1,856 39,751 2,327 (16,283)
Gain (loss) on available for sale securities, net380 2,049 (9) 2,394 5,326
Total other operating revenue182,252 170,296 143,754 187,310 185,542
Other operating expense:
Personnel143,744 136,425 141,132 139,212 139,213
Business promotion7,738 6,717 7,344 6,839 6,703
Charitable contributions to BOKF Foundation 2,000
Professional fees and services12,419 11,417 16,828 14,038 14,158
Net occupancy and equipment21,125 21,624 21,470 20,111 19,677
Insurance689 6,404 8,705 9,390 7,129
Data processing and communications36,330 34,902 33,691 33,331 32,802
Printing, postage and supplies4,140 3,851 3,998 3,790 3,889
Net losses (gains) and operating expenses of repossessed assets2,267 1,009 1,627 (926) 1,588
Amortization of intangible assets1,803 1,802 1,558 1,521 2,624
Mortgage banking costs12,072 13,003 17,348 15,963 15,746
Other expense8,558 7,557 9,846 14,819 7,856
Total other operating expense250,885 244,711 265,547 258,088 251,385
Net income before taxes136,571 126,767 72,405 107,068 96,769
Federal and state income taxes47,705 38,103 22,496 31,956 30,497
Net income88,866 88,664 49,909 75,112 66,272
Net income (loss) attributable to non-controlling interests719 308 (117) 835 471
Net income attributable to BOK Financial Corporation shareholders$88,147 $88,356 $50,026 $74,277 $65,801
Average shares outstanding:
Basic64,729,752 64,715,964 64,719,018 65,085,392 65,245,887
Diluted64,793,134 64,783,737 64,787,728 65,157,841 65,302,926
Net income per share:
Basic$1.35 $1.35 $0.76 $1.13 $1.00
Diluted$1.35 $1.35 $0.76 $1.13 $1.00


LOANS TREND -- UNAUDITED
BOK FINANCIAL CORPORATION
(In thousands)
June 30, 2017 Mar. 31, 2017 Dec. 31, 2016 Sept. 30, 2016 June 30, 2016
Commercial:
Energy $2,847,240 $2,537,112 $2,497,868 $2,520,804 $2,818,656
Services 2,958,827 3,013,375 3,108,990 2,936,599 2,830,864
Healthcare 2,221,518 2,265,604 2,201,916 2,085,046 2,051,146
Wholesale/retail 1,543,695 1,506,243 1,576,818 1,602,030 1,532,957
Manufacturing 546,137 543,430 514,975 499,486 595,403
Other commercial and industrial 520,538 461,346 490,257 476,198 527,411
Total commercial 10,637,955 10,327,110 10,390,824 10,120,163 10,356,437
Commercial real estate:
Retail 722,805 745,046 761,888 801,377 795,419
Multifamily 952,380 922,991 903,272 873,773 787,200
Office 862,973 860,889 798,888 752,705 769,112
Industrial 693,635 871,463 871,749 838,021 645,586
Residential construction and land development 141,592 135,994 135,533 159,946 157,576
Other commercial real estate 315,207 334,680 337,716 367,776 427,073
Total commercial real estate 3,688,592 3,871,063 3,809,046 3,793,598 3,581,966
Residential mortgage:
Permanent mortgage 989,040 977,743 1,006,820 969,558 969,007
Permanent mortgages guaranteed by U.S. government agencies 191,729 204,181 199,387 190,309 192,732
Home equity 758,429 764,350 743,625 712,926 719,184
Total residential mortgage 1,939,198 1,946,274 1,949,832 1,872,793 1,880,923
Personal 917,900 847,459 839,958 678,232 587,423
Total $17,183,645 $16,991,906 $16,989,660 $16,464,786 $16,406,749


LOANS BY PRINCIPAL MARKET AREA -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands)
June 30, 2017 Mar. 31, 2017 Dec. 31, 2016 Sept. 30, 2016 June 30, 2016
Bank of Oklahoma:
Commercial$3,369,967 $3,189,183 $3,370,259 $3,545,924 $3,698,215
Commercial real estate667,932 691,332 684,381 795,806 781,458
Residential mortgage1,398,021 1,404,054 1,407,197 1,401,166 1,415,766
Personal318,016 310,708 303,823 271,420 246,229
Total Bank of Oklahoma5,753,936 5,595,277 5,765,660 6,014,316 6,141,668
Bank of Texas:
Commercial4,339,634 4,148,316 4,022,455 3,903,218 3,901,632
Commercial real estate1,360,164 1,452,988 1,415,011 1,400,709 1,311,408
Residential mortgage232,074 231,647 233,981 229,345 222,548
Personal354,222 312,092 306,748 278,167 233,304
Total Bank of Texas6,286,094 6,145,043 5,978,195 5,811,439 5,668,892
Bank of Albuquerque:
Commercial369,370 407,403 399,256 398,147 398,427
Commercial real estate324,405 307,927 284,603 299,785 322,956
Residential mortgage103,849 106,432 108,058 110,478 114,226
Personal12,439 11,305 11,483 11,333 10,569
Total Bank of Albuquerque810,063 833,067 803,400 819,743 846,178
Bank of Arkansas:
Commercial85,020 88,010 86,577 83,544 81,227
Commercial real estate73,943 74,469 73,616 72,649 69,235
Residential mortgage6,395 6,829 7,015 6,936 6,874
Personal11,993 6,279 6,524 6,757 7,025
Total Bank of Arkansas177,351 175,587 173,732 169,886 164,361
Colorado State Bank & Trust:
Commercial1,065,780 998,216 1,018,208 1,013,314 1,076,620
Commercial real estate255,379 266,218 265,264 254,078 237,569
Residential mortgage63,346 62,313 59,631 59,838 59,425
Personal56,187 49,523 50,372 42,901 35,064
Total Colorado State Bank & Trust1,440,692 1,376,270 1,393,475 1,370,131 1,408,678
Bank of Arizona:
Commercial617,759 643,222 686,253 680,447 670,814
Commercial real estate705,858 737,088 747,409 726,542 639,112
Residential mortgage37,034 36,737 36,265 39,206 38,998
Personal55,528 51,386 52,553 31,205 24,248
Total Bank of Arizona1,416,179 1,468,433 1,522,480 1,477,400 1,373,172
Mobank:
Commercial790,425 852,760 807,816 495,569 529,502
Commercial real estate300,911 341,041 338,762 244,029 220,228
Residential mortgage98,479 98,262 97,685 25,824 23,086
Personal109,515 106,166 108,455 36,449 30,984
Total Mobank1,299,330 1,398,229 1,352,718 801,871 803,800
TOTAL BOK FINANCIAL$17,183,645 $16,991,906 $16,989,660 $16,464,786 $16,406,749

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

DEPOSITS BY PRINCIPAL MARKET AREA -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands)
June 30, 2017 Mar. 31, 2017 Dec. 31, 2016 Sept. 30, 2016 June 30, 2016
Bank of Oklahoma:
Demand$4,353,421 $4,320,666 $3,993,170 $4,158,273 $4,020,181
Interest-bearing:
Transaction5,998,787 6,114,288 6,345,536 5,701,983 5,741,302
Savings263,664 265,014 241,696 242,959 247,984
Time1,170,014 1,189,144 1,118,355 1,091,464 1,167,271
Total interest-bearing7,432,465 7,568,446 7,705,587 7,036,406 7,156,557
Total Bank of Oklahoma11,785,886 11,889,112 11,698,757 11,194,679 11,176,738
Bank of Texas:
Demand3,121,890 3,091,258 3,137,009 2,734,981 2,677,253
Interest-bearing:
Transaction2,272,185 2,317,576 2,388,812 2,240,040 2,035,634
Savings91,491 89,640 83,101 84,642 83,862
Time502,128 511,037 535,642 528,380 516,231
Total interest-bearing2,865,804 2,918,253 3,007,555 2,853,062 2,635,727
Total Bank of Texas5,987,694 6,009,511 6,144,564 5,588,043 5,312,980
Bank of Albuquerque:
Demand612,117 593,117 627,979 584,681 530,853
Interest-bearing:
Transaction558,523 623,677 590,571 555,326 573,690
Savings54,136 53,683 49,963 54,480 49,200
Time229,616 233,506 238,408 244,706 250,068
Total interest-bearing842,275 910,866 878,942 854,512 872,958
Total Bank of Albuquerque1,454,392 1,503,983 1,506,921 1,439,193 1,403,811
Bank of Arkansas:
Demand40,511 42,622 26,389 32,203 30,607
Interest-bearing:
Transaction129,848 106,804 105,232 313,480 278,335
Savings2,135 2,304 2,192 2,051 1,853
Time14,876 15,067 16,696 17,534 18,911
Total interest-bearing146,859 124,175 124,120 333,065 299,099
Total Bank of Arkansas187,370 166,797 150,509 365,268 329,706
Colorado State Bank & Trust:
Demand577,617 601,778 576,000 517,063 528,124
Interest-bearing:
Transaction626,343 610,510 616,679 623,055 625,240
Savings35,651 37,801 32,866 31,613 31,509
Time228,458 234,740 242,782 247,667 254,164
Total interest-bearing890,452 883,051 892,327 902,335 910,913
Total Colorado State Bank & Trust1,468,069 1,484,829 1,468,327 1,419,398 1,439,037
Bank of Arizona:
Demand366,866 342,854 366,755 418,718 396,837
Interest-bearing:
Transaction154,457 180,254 305,099 303,750 302,297
Savings3,638 3,858 2,973 2,959 3,198
Time19,911 26,112 27,765 27,935 28,681
Total interest-bearing178,006 210,224 335,837 334,644 334,176
Total Bank of Arizona544,872 553,078 702,592 753,362 731,013
Mobank:
Demand496,473 514,278 508,418 235,445 240,755
Interest-bearing:
Transaction346,996 406,105 513,176 86,526 112,371
Savings13,603 13,424 12,679 1,645 1,656
Time31,119 34,242 42,152 11,945 11,735
Total interest-bearing391,718 453,771 568,007 100,116 125,762
Total Mobank888,191 968,049 1,076,425 335,561 366,517
TOTAL BOK FINANCIAL$22,316,474 $22,575,359 $22,748,095 $21,095,504 $20,759,802



NET INTEREST MARGIN TREND -- UNAUDITED
BOK FINANCIAL CORPORATION
Three Months Ended
June 30, 2017 Mar. 31, 2017 Dec. 31, 2016 Sept. 30, 2016 June 30, 2016
TAX-EQUIVALENT ASSETS YIELDS
Interest-bearing cash and cash equivalents1.04% 0.82% 0.55% 0.51% 0.51%
Trading securities3.23% 3.87% 3.91% 2.71% 1.89%
Investment securities:
Taxable5.34% 5.44% 5.39% 5.34% 5.41%
Tax-exempt2.51% 2.45% 2.33% 2.26% 2.25%
Total investment securities3.76% 3.70% 3.60% 3.51% 3.52%
Available for sale securities:
Taxable2.09% 2.02% 1.98% 1.99% 2.01%
Tax-exempt6.09% 5.37% 5.27% 5.47% 5.06%
Total available for sale securities2.11% 2.05% 2.00% 2.01% 2.04%
Fair value option securities2.92% 2.27% 0.99% 1.70% 2.19%
Restricted equity securities5.95% 5.52% 5.45% 5.37% 4.84%
Residential mortgage loans held for sale3.92% 3.35% 3.31% 3.28% 3.53%
Loans4.03% 3.88% 3.67% 3.63% 3.58%
Allowance for loan losses
Loans, net of allowance4.09% 3.94% 3.72% 3.69% 3.63%
Total tax-equivalent yield on earning assets3.30% 3.15% 2.98% 2.93% 2.91%
COST OF INTEREST-BEARING LIABILITIES
Interest-bearing deposits:
Interest-bearing transaction0.26% 0.20% 0.16% 0.14% 0.14%
Savings0.08% 0.08% 0.09% 0.09% 0.10%
Time1.11% 1.09% 1.12% 1.14% 1.16%
Total interest-bearing deposits0.40% 0.35% 0.32% 0.32% 0.33%
Funds purchased0.61% 0.47% 0.28% 0.19% 0.19%
Repurchase agreements0.06% 0.02% 0.02% 0.04% 0.05%
Other borrowings1.09% 0.83% 0.61% 0.57% 0.57%
Subordinated debt5.55% 5.68% 5.51% 3.84% 1.52%
Total cost of interest-bearing liabilities0.63% 0.52% 0.44% 0.44% 0.41%
Tax-equivalent net interest revenue spread2.67% 2.63% 2.54% 2.49% 2.50%
Effect of noninterest-bearing funding sources and other0.22% 0.18% 0.15% 0.15% 0.13%
Tax-equivalent net interest margin2.89% 2.81% 2.69% 2.64% 2.63%

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

CREDIT QUALITY INDICATORS -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands, except ratios)
Three Months Ended
June 30, 2017 Mar. 31, 2017 Dec. 31, 2016 Sept. 30, 2016 June 30, 2016
Nonperforming assets:
Nonaccruing loans:
Commercial$197,157 $156,825 $178,953 $176,464 $181,989
Commercial real estate3,775 4,475 5,521 7,350 7,780
Residential mortgage44,235 46,081 46,220 52,452 57,061
Personal272 235 290 686 354
Total nonaccruing loans245,439 207,616 230,984 236,952 247,184
Accruing renegotiated loans guaranteed by U.S. government agencies80,624 83,577 81,370 80,306 78,806
Real estate and other repossessed assets39,436 42,726 44,287 31,941 24,054
Total nonperforming assets$365,499 $333,919 $356,641 $349,199 $350,044
Total nonperforming assets excluding those guaranteed by U.S. government agencies$275,823 $240,234 $263,425 $253,461 $251,497
Nonaccruing loans by loan class:
Commercial:
Energy$123,992 $110,425 $132,499 $142,966 $168,145
Services7,754 7,713 8,173 8,477 9,388
Wholesale / retail10,620 11,090 11,407 2,453 2,772
Manufacturing9,656 5,907 4,931 274 293
Healthcare24,505 909 825 855 875
Other commercial and industrial20,630 20,781 21,118 21,439 516
Total commercial197,157 156,825 178,953 176,464 181,989
Commercial real estate:
Residential construction and land development2,051 2,616 3,433 3,739 4,261
Retail301 314 326 1,249 1,265
Office396 413 426 882 606
Multifamily10 24 38 51 65
Industrial 76 76 76 76
Other commercial real estate1,017 1,032 1,222 1,353 1,507
Total commercial real estate3,775 4,475 5,521 7,350 7,780
Residential mortgage:
Permanent mortgage23,415 24,188 22,855 25,956 27,228
Permanent mortgage guaranteed by U.S. government agencies9,052 10,108 11,846 15,432 19,741
Home equity11,768 11,785 11,519 11,064 10,092
Total residential mortgage44,235 46,081 46,220 52,452 57,061
Personal272 235 290 686 354
Total nonaccruing loans$245,439 $207,616 $230,984 $236,952 $247,184
Performing loans 90 days past due1$1,414 $95 $5 $3,839 $2,899
Gross charge-offs$(2,872) $(2,153) $(1,651) $(8,101) $(8,845)
Recoveries1,214 2,900 2,813 2,038 1,386
Net recoveries (charge-offs)$(1,658) $747 $1,162 $(6,063) $(7,459)
Provision for credit losses$ $ $ $10,000 $20,000
Allowance for loan losses to period end loans1.46% 1.46% 1.45% 1.49% 1.48%
Combined allowance for credit losses to period end loans1.49% 1.52% 1.52% 1.56% 1.54%
Nonperforming assets to period end loans and repossessed assets2.12% 1.96% 2.09% 2.12% 2.13%
Net charge-offs (annualized) to average loans0.04% (0.02)% (0.03)% 0.15% 0.18%
Allowance for loan losses to nonaccruing loans1105.78% 125.92% 112.33% 110.65% 106.95%
Combined allowance for credit losses to nonaccruing loans1108.51% 130.70% 117.46% 115.67% 110.93%

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