BOK Financial Reports 2017 Fourth Quarter and Full Year Results

TULSA, Okla., Jan. 24, 2018 (GLOBE NEWSWIRE) -- BOK Financial Corporation (NASDAQ:BOKF) reported net income of $334.6 million or $5.11 per diluted share for the year ended December 31, 2017. Net income for the year ended December 31, 2016 was $232.7 million or $3.53 per diluted share.

Net income for fourth quarter of 2017 totaled $72.5 million or $1.11 per diluted share compared to $85.6 million or $1.31 per diluted share for the third quarter of 2017 and $50.0 million or $0.76 per diluted share for the fourth quarter of 2016.

The Tax Cuts and Jobs Act ("the Act") signed into law on December 22, 2017 resulted in an $11.7 million or $0.18 per share reduction in net income for the fourth quarter. A decrease in the federal corporate tax rate from 35% to 21% required us to revalue deferred tax assets and liabilities. Provisions of the Act also limit the deductibility of certain other expenses.

Steven G. Bradshaw, president and chief executive officer, stated, “The fourth quarter wrapped up a very strong year for BOK Financial, in which we delivered our strongest earnings performance in the past five years. While we benefited from a healthy interest rate environment, the key to earnings leverage was maintaining expense discipline throughout the year. In addition, the benign credit environment combined with our strong underwriting minimized credit costs during the year. Finally, our wealth management business delivered record financial results in 2017 and surpassed $80 billion of assets under management and administration for the first time in company history, leading our diverse set of fee based businesses.”

Bradshaw continued, “Now that we have clarity on tax reform and healthcare, we believe the stage is set for stronger loan growth in 2018. In the fourth quarter our healthcare business grew at its strongest pace in over a year, and we are already seeing an increase in client loan demand in our commercial and industrial business. In addition, energy banking continues to benefit from the company’s long-term commitment to our energy borrowers, and our private banking division remains among our fastest-growing lending segments.”

“The write-down of our deferred tax asset was necessitated by expected lower future tax rates and negatively impacted fourth quarter earnings. However, we believe the passage of tax reform will be beneficial to economic growth across our footprint, drive increased loan demand in many of our businesses, and provide a material benefit to future profitability,” Bradshaw concluded.

Fourth Quarter 2017 Highlights

  • Net interest revenue totaled $216.9 million for the fourth quarter of 2017, compared to $218.5 million for the third quarter of 2017. Net interest margin was 2.97 percent, compared to 3.01 percent in the third quarter of 2017. Recoveries of foregone interest on nonaccruing loans added $4.7 million and 6 basis points to net interest margin in the third quarter. Average earning assets increased $122 million over the prior quarter.

  • Fees and commissions revenue totaled $168.2 million for the fourth quarter of 2017, compared to $173.5 million for the third quarter of 2017. Transaction card revenue decreased $3.3 million and other revenue decreased $1.9 million. Fiduciary and asset management revenue grew $1.1 million.

  • Operating expense was $264.0 million for the fourth quarter, a $1.9 million decrease compared to the prior quarter. Personnel costs decreased $2.6 million, partially offset by a $634 thousand increase in non-personnel expense.

  • The Company recorded a $7.0 million negative provision for credit losses in the fourth quarter, due to continued improvement in credit metric trends. No provision for credit losses was recorded in the third quarter of 2017. The company had net charge-offs of $11.7 million or 27 basis points of average loans on an annualized basis in the fourth quarter of 2017, compared to net charge-offs of $3.4 million or 8 basis points of average loans on annualized basis in the third quarter. For the full year, net charge-offs were $16.0 million or 9 basis points of average loans in 2017 and $34.8 million or 21 basis points of average loans in 2016.

  • The combined allowance for credit losses totaled $234 million or 1.37 percent of outstanding loans at December 31, 2017, compared to $253 million or 1.47 percent of outstanding loans at September 30, 2017.

  • Nonperforming assets that are not guaranteed by U.S. government agencies totaled $207 million or 1.22 percent of outstanding loans and repossessed assets at December 31, 2017 compared to $249 million or 1.46 percent of outstanding loans and repossessed assets at September 30, 2017. The decrease in nonperforming assets was primarily due to nonaccruing energy, other commercial and industrial and healthcare sector loans.

  • Average loan balances were largely unchanged compared to the previous quarter. Growth in residential mortgage and personal loans was offset by decreased commercial and commercial real estate loan balances. Period-end outstanding loan balances were $17.2 billion at December 31, 2017, a $53 million decrease compared to September 30, 2017.

  • Average deposits were largely unchanged compared to the previous quarter. Growth in interest-bearing transaction and demand deposit account balances was partially offset by a decrease in time deposits. Period end deposits increased $213 million over September 30, 2017 to $22.1 billion at December 31, 2017.

  • The common equity Tier 1 capital ratio was 11.95 percent at December 31, 2017. In addition, the Company's Tier 1 capital ratio was 11.95 percent, total capital ratio was 13.43 percent and leverage ratio was 9.31 percent. At September 30, 2017, the common equity Tier 1 capital ratio was 11.90 percent, the Tier 1 capital ratio was 11.90 percent, total capital ratio was 13.47 percent and leverage ratio was 9.30 percent.

  • The company repurchased 80,000 common shares at an average price of $92.54 per share during the fourth quarter of 2017. No shares were repurchased during the third quarter of 2017.

Tax Cuts and Jobs Act

Fourth quarter and full year 2017 earnings included an $11.7 million or $0.18 per diluted share charge as a result of the Tax Cuts and Jobs Act which was signed into law on December 22, 2017. The write-down of net deferred tax assets from a federal and state statutory tax rate of 38.9 percent to 25.5 percent totaled $9.5 million, including $6.4 million of deferred tax assets related to unrealized losses on available for sale securities. In addition, the charge included $2.2 million to write-off deferred tax assets related to the compensation of certain executive officers that will no longer be deductible.

We currently expect that the federal and state effective tax rate for 2018 will be between 22 percent and 23 percent, compared to 33.8 percent for 2017, excluding the tax effects of equity compensation arrangements and similar discrete items.

Net Interest Revenue

Net interest revenue was $216.9 million for the fourth quarter of 2017, a decrease of $1.6 million compared to the third quarter of 2017.

Net interest margin was 2.97 percent for the fourth quarter of 2017, compared to 3.01 percent for the third quarter of 2017. Recoveries of foregone interest primarily related to nonaccruing energy loans added $4.7 million to net interest revenue and 6 basis points to net interest margin for the third quarter. Excluding the impact of interest recoveries in the third quarter, the yield on average earning assets was 3.49 percent, a 5 basis point increase over the prior quarter and the yield on the loan portfolio increased 9 basis points to 4.29 percent. The yield on the available for sale securities portfolio increased 4 basis points to 2.21 percent. Funding costs were 0.79 percent, up 4 basis points. The cost of interest-bearing deposits increased 3 basis points to 0.48 percent as market pricing pressure remained relatively subdued. The cost of other borrowed funds was up 5 basis points to 1.28 percent.

Average earning assets increased $122 million during the fourth quarter of 2017. Fair value option securities held as an economic hedge of our mortgage servicing rights increased $108 million. Average trading securities balances increased $69 million. This growth was partially offset by a $76 million decrease in average loan balances primarily due to lower commercial and commercial real estate balances, partially offset by growth in residential mortgage and personal loans. Average interest-bearing deposits increased $14 million over the third quarter of 2017. The average balance of borrowed funds increased $124 million.

Fees and Commissions Revenue

Fees and commissions revenue totaled $168.2 million for the fourth quarter of 2017, a $5.3 million decrease compared to the third quarter of 2017.

Fiduciary and asset management revenue grew $1.1 million or 3 percent over the third quarter of 2017. Total assets under management or in custody totaled $81.8 billion, up 5 percent since September 30 due to a combination of net cash inflows and higher asset valuation.

Mortgage banking revenue totaled $24.4 million, unchanged from the previous quarter. Production volume was down 9 percent from the previous quarter due primarily to the effect of higher interest rates. The impact of decreased production volume on revenue was offset by improved pricing margin.

Transaction card revenue decreased $3.3 million compared to the third quarter of 2017 primarily due to a customer early termination fee received in the third quarter. Additionally, other revenue decreased $1.9 million primarily as a result of the sale of a consolidated merchant banking investment. Other expense also decreased as a result of the sale.

Operating Expenses

Total operating expenses were $264.0 million for the fourth quarter of 2017, a decrease of $1.9 million compared to the third quarter of 2017.

Personnel costs decreased $2.6 million compared to the previous quarter. Employee benefits expense decreased $1.8 million primarily due to lower pension costs. Regular salary expense decreased $798 thousand while incentive compensation expense remained relatively flat.

Non-personnel expense increased $634 thousand over the third quarter of 2017. Professional fees increased $3.1 million primarily due to project costs related to the new online account opening product. The fourth quarter also included a $2.0 million contribution to the BOKF Foundation. Net losses and operating expenses of repossessed assets decreased $5.7 million. A $4.7 million write-down of a set of oil and gas properties was recognized in the third quarter.

Loans, Deposits and Capital

Loans

Outstanding loans were $17.2 billion at December 31, 2017, a $53 million decrease compared to September 30. Decreased commercial and commercial real estate loan balances were partially offset by growth in residential mortgage and personal loans.

Outstanding commercial loan balances decreased $62 million compared to September 30, 2017. Wholesale/retail sector loan balances decreased $187 million and manufacturing sector loan balances decreased $23 million. Healthcare sector loans grew by $75 million over the prior quarter and energy sector loans were up $62 million over September 30, 2017.

Unfunded energy loan commitments grew by $182 million in the fourth quarter to $2.9 billion. All other unfunded commercial loan commitments totaled $4.8 billion at December 31, 2017, largely unchanged compared to September 30, 2017.

Commercial real estate loans decreased by $38 million compared to September 30, 2017 due primarily to continued pay-down activity as borrowers took advantage of favorable long-term rates and refinanced into the permanent market. Retail sector loans decreased by $34 million, multifamily residential loans decreased by $19 million and loans secured by industrial facilities decreased by $18 million. Loans secured by office buildings increased $35 million. Unfunded commercial real estate loan commitments totaled $1.2 billion at December 31, 2017, a $112 million increase over September 30, 2017.

Residential mortgage loans grew by $28 million and personal loans were up $19 million over the prior quarter.

Deposits

Period-end deposits totaled $22.1 billion at December 31, 2017, a $213 million increase over September 30, 2017. Interest-bearing transaction account balances grew by $225 million and demand deposit balances increased $58 million, partially offset by a $74 million decrease in time deposits. Among the lines of business, Commercial Banking deposits increased $220 million and Wealth Management deposits increased $163 million, partially offset by a $147 million decrease in Consumer Banking deposits.

Capital

The company's common equity Tier 1 capital ratio was 11.95 percent at December 31, 2017. In addition, the Company's Tier 1 capital ratio was 11.95 percent, total capital ratio was 13.43 percent and leverage ratio was 9.31 percent at December 31, 2017. At September 30, 2017, the Company's common equity Tier 1 capital ratio was 11.90 percent, Tier 1 capital ratio was 11.90 percent, total capital ratio was 13.47 percent and leverage ratio was 9.30 percent.

The company's tangible common equity ratio, a non-GAAP measure, was 9.50 percent at December 31, 2017 and 9.23 percent at September 30, 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.

Credit Quality

Nonperforming assets totaled $290 million or 1.69 percent of outstanding loans and repossessed assets at December 31, 2017, down from $328 million or 1.90 percent of outstanding loans and repossessed assets at September 30, 2017. Nonperforming assets that are not guaranteed by U.S. government agencies totaled $207 million or 1.22 percent of outstanding loans and repossessed assets (excluding those guaranteed by U.S. government agencies) at December 31, 2017 and $249 million or 1.46 percent at September 30, 2017.

Nonaccruing loans totaled $188 million or 1.10 percent of outstanding loans at December 31, 2017, compared to $226 million or 1.31 percent of outstanding loans at September 30, 2017. New nonaccruing loans identified in the fourth quarter totaled $33 million, offset by $53 million in payments received, $14.7 million in charge-offs and $1.9 million in foreclosures and repossessions. At December 31, 2017, nonaccruing commercial loans totaled $137 million or 1.28 percent of outstanding commercial loans. Nonaccruing commercial real estate loans were only $2.9 million or 0.08 percent of outstanding commercial real estate loans. Nonaccruing residential mortgage loans not guaranteed by U.S. government agencies totaled $38 million or 2.15 percent of outstanding residential mortgage loans.

At December 31, 2017, approximately $51 million of nonaccruing loans required a specific allowance of $8.8 million. No specific allowance was necessary for the remaining $137 million of nonaccruing loans based on estimated cash flows or collateral value. At September 30, 2017, $90 million of nonaccruing loans required a specific allowance of $13 million and no specific allowance was necessary on the remaining $136 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, decreased to $241 million at December 31, 2017 from $285 million at September 30, 2017. This decrease largely resulted from energy loans, partially offset by an increase in services and healthcare sector loans.

The company had net charge-offs of $11.7 million or 27 basis points of average loans on an annualized basis for the fourth quarter of 2017, compared to net charge-offs of $3.4 million or 8 basis points of average loans on annualized basis for the third quarter of 2017. Gross charge-offs totaled $14.7 million for the fourth quarter, compared to $5.8 million for the previous quarter. Recoveries totaled $3.1 million for the fourth quarter of 2017 and $2.4 million for the third quarter of 2017.

After evaluating all credit factors, including continued improvement in nonaccruing and potential problem loans, the company determined that a $7.0 million negative provision for credit losses was appropriate during the fourth quarter of 2017. No provision for credit losses was recorded in the third quarter of 2017.

The combined allowance for credit losses totaled $234 million or 1.37 percent of outstanding loans and 131 percent of nonaccruing loans, excluding loans guaranteed by U.S. government agencies, at December 31, 2017. The allowance for loan losses was $231 million and the accrual for off-balance sheet credit losses was $3.7 million. At September 30, 2017, the combined allowance for credit losses was $253 million or 1.47 percent of outstanding loans and 117 percent of nonaccruing loans, excluding loans guaranteed by U.S. government agencies. The allowance for loan losses was $248 million and the accrual for off-balance sheet credit losses was $5.4 million.

Securities and Derivatives

The fair value of the available for sale securities portfolio totaled $8.3 billion at December 31, 2017 and $8.4 billion at September 30, 2017. At December 31, 2017, the available for sale portfolio consisted primarily of $5.3 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.

The available for sale securities portfolio had a net unrealized loss of $47 million at December 31, 2017, compared to a net unrealized gain of $14 million at September 30, 2017. The increase in net unrealized loss was primarily due to an increase in interest rates during the fourth quarter.

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 held 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 $1.3 million during the fourth quarter of 2017, including a $5.9 million increase in the fair value of mortgage servicing rights, a $7.3 million decrease in the fair value of securities and derivative contracts held as an economic hedge and $2.7 million of related net interest revenue.

The fair value of mortgage servicing rights, net of economic hedge, increased by $1.0 million in the third quarter. The fair value of securities and interest rate derivative contracts held as an economic hedge of mortgage servicing rights increased by $1.7 million. Related net interest revenue was $2.5 million during the third quarter of 2017.

Conference Call and Webcast

The Company will hold a conference call at 9 a.m. Central time on Wednesday, January 24, 2018 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 replay PIN number 13675236.

About BOK Financial Corporation

BOK Financial 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 December 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, 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)
Dec. 31, 2017 Sept. 30, 2017 Dec. 31, 2016
ASSETS
Cash and due from banks $602,510 $547,203 $620,846
Interest-bearing cash and cash equivalents 1,714,544 1,926,779 1,916,651
Trading securities 462,676 614,117 337,628
Investment securities 461,793 466,562 546,145
Available for sale securities 8,321,578 8,383,199 8,676,829
Fair value option securities 755,054 819,531 77,046
Restricted equity securities 320,189 347,542 307,240
Residential mortgage loans held for sale 221,378 275,643 301,897
Loans:
Commercial 10,733,975 10,795,934 10,390,824
Commercial real estate 3,479,987 3,518,142 3,809,046
Residential mortgage 1,973,686 1,945,750 1,949,832
Personal 965,776 947,008 839,958
Total loans 17,153,424 17,206,834 16,989,660
Allowance for loan losses (230,682) (247,703) (246,159)
Loans, net of allowance 16,922,742 16,959,131 16,743,501
Premises and equipment, net 317,335 320,060 325,849
Receivables 442,897 314,251 772,952
Goodwill 447,430 446,697 448,899
Intangible assets, net 28,658 39,013 46,931
Mortgage servicing rights, net 252,867 245,858 247,073
Real estate and other repossessed assets, net 28,437 32,535 44,287
Derivative contracts, net 220,502 352,559 689,872
Cash surrender value of bank-owned life insurance 316,498 314,201 308,430
Receivable on unsettled securities sales 75,980 230,225 7,188
Other assets 359,092 370,409 353,017
TOTAL ASSETS $32,272,160 $33,005,515 $32,772,281
LIABILITIES AND EQUITY
Deposits:
Demand $9,243,338 $9,185,481 $9,235,720
Interest-bearing transaction 10,250,393 10,025,084 10,865,105
Savings 469,158 465,225 425,470
Time 2,098,416 2,172,289 2,221,800
Total deposits 22,061,305 21,848,079 22,748,095
Funds purchased 58,628 62,356 57,929
Repurchase agreements 516,335 328,189 668,661
Other borrowings 5,134,897 6,241,275 4,846,072
Subordinated debentures 144,677 144,668 144,640
Accrued interest, taxes, and expense 164,895 152,029 146,704
Due on unsettled securities purchases 151,198 160,781 6,508
Derivative contracts, net 171,963 336,327 664,531
Other liabilities 349,928 217,372 182,784
TOTAL LIABILITIES 28,753,826 29,491,076 29,465,924
Shareholders' equity:
Capital, surplus and retained earnings 3,524,991 3,482,057 3,285,821
Accumulated other comprehensive income (loss) (29,624) 6,757 (10,967)
TOTAL SHAREHOLDERS' EQUITY 3,495,367 3,488,814 3,274,854
Non-controlling interests 22,967 25,625 31,503
TOTAL EQUITY 3,518,334 3,514,439 3,306,357
TOTAL LIABILITIES AND EQUITY $32,272,160 $33,005,515 $32,772,281


AVERAGE BALANCE SHEETS -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands)
Three Months Ended
Dec. 31, 2017 Sept. 30, 2017 June 30, 2017 March 31, 2017 Dec. 31, 2016
ASSETS
Interest-bearing cash and cash equivalents$1,976,395 $1,965,645 $2,007,746 $2,087,964 $2,032,785
Trading securities560,321 491,613 456,028 579,549 476,498
Investment securities462,869 475,705 499,372 530,936 542,869
Available for sale securities8,435,916 8,428,353 8,384,057 8,567,049 8,766,555
Fair value option securities792,647 684,571 476,102 416,524 210,733
Restricted equity securities337,673 328,677 295,743 312,498 334,114
Residential mortgage loans held for sale257,927 256,343 245,401 220,325 345,066
Loans:
Commercial10,751,235 10,827,198 10,604,456 10,414,579 10,228,095
Commercial real estate3,485,583 3,528,330 3,676,976 3,903,850 3,749,393
Residential mortgage1,976,860 1,951,385 1,933,091 1,962,759 1,919,296
Personal967,329 949,750 915,010 854,637 826,804
Total loans17,181,007 17,256,663 17,129,533 17,135,825 16,723,588
Allowance for loan losses(246,143) (250,590) (251,632) (249,379) (246,977)
Total loans, net16,934,864 17,006,073 16,877,901 16,886,446 16,476,611
Total earning assets29,758,612 29,636,980 29,242,350 29,601,291 29,185,231
Cash and due from banks576,737 546,653 530,352 547,104 578,694
Derivative contracts, net292,961 238,583 248,168 401,886 681,455
Cash surrender value of bank-owned life insurance315,034 313,079 311,310 309,223 309,532
Receivable on unsettled securities sales49,219 76,622 79,248 62,641 33,813
Other assets2,459,552 2,196,253 1,957,143 2,032,844 2,172,351
TOTAL ASSETS$33,452,115 $33,008,170 $32,368,571 $32,954,989 $32,961,076
LIABILITIES AND EQUITY
Deposits:
Demand$9,417,351 $9,389,849 $9,338,683 $9,101,763 $9,124,595
Interest-bearing transaction10,142,744 10,088,522 10,087,640 10,567,475 9,980,132
Savings466,496 464,130 461,586 441,254 421,654
Time2,134,469 2,176,820 2,204,422 2,258,930 2,177,035
Total deposits22,161,060 22,119,321 22,092,331 22,369,422 21,703,416
Funds purchased63,713 49,774 63,263 55,508 62,004
Repurchase agreements424,617 361,512 427,353 523,561 560,891
Other borrowings6,209,903 6,162,641 5,572,031 5,737,955 6,072,150
Subordinated debentures144,673 144,663 144,654 144,644 144,635
Derivative contracts, net288,408 221,371 178,695 405,444 682,808
Due on unsettled securities purchases218,684 145,155 157,438 91,529 77,575
Other liabilities425,667 319,092 323,373 299,534 321,404
TOTAL LIABILITIES29,936,725 29,523,529 28,959,138 29,627,597 29,624,883
Total equity3,515,390 3,484,641 3,409,433 3,327,392 3,336,193
TOTAL LIABILITIES AND EQUITY$33,452,115 $33,008,170 $32,368,571 $32,954,989 $32,961,076


STATEMENTS OF EARNINGS -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands, except per share data)
Three Months Ended Year Ended
Dec. 31, Dec. 31,
2017 2016 2017 2016
Interest revenue$255,767 $215,737 $972,751 $829,117
Interest expense38,904 21,539 131,050 81,889
Net interest revenue216,863 194,198 841,701 747,228
Provision for credit losses(7,000) (7,000) 65,000
Net interest revenue after provision for credit losses223,863 194,198 848,701 682,228
Other operating revenue:
Brokerage and trading revenue33,045 28,500 131,601 138,377
Transaction card revenue129,536 29,682 119,988 116,452
Fiduciary and asset management revenue41,767 34,535 162,893 135,477
Deposit service charges and fees127,685 28,204 112,075 111,499
Mortgage banking revenue24,362 28,414 104,719 133,914
Other revenue11,762 12,693 52,168 51,029
Total fees and commissions168,157 162,028 683,444 686,748
Other gains (losses), net552 (1,279) 9,004 4,030
Gain (loss) on derivatives, net(3,045) (35,815) 779 (15,685)
Loss on fair value option securities, net(4,238) (20,922) (2,733) (10,555)
Change in fair value of mortgage servicing rights5,898 39,751 172 (2,193)
Gain (loss) on available for sale securities, net(488) (9) 4,428 11,675
Total other operating revenue166,836 143,754 695,094 674,020
Other operating expense:
Personnel145,329 141,132 573,408 553,119
Business promotion7,317 7,344 28,877 26,582
Charitable contributions to BOKF Foundation2,000 2,000 2,000 2,000
Professional fees and services15,344 16,828 51,067 56,783
Net occupancy and equipment22,403 21,470 86,477 80,024
Insurance6,555 8,705 19,653 32,489
Data processing and communications38,411 33,691 146,970 131,841
Printing, postage and supplies3,781 3,998 15,689 15,584
Net losses and operating expenses of repossessed assets340 1,627 9,687 3,359
Amortization of intangible assets1,430 1,558 6,779 6,862
Mortgage banking costs14,331 17,348 52,856 61,387
Other expense6,746 9,846 32,054 47,560
Total other operating expense263,987 265,547 1,025,517 1,017,590
Net income before taxes126,712 72,405 518,278 338,658
Federal and state income taxes54,347 22,496 182,593 106,377
Net income72,365 49,909 335,685 232,281
Net income (loss) attributable to non-controlling interests(127) (117) 1,041 (387)
Net income attributable to BOK Financial Corporation shareholders$72,492 $50,026 $334,644 $232,668
Average shares outstanding:
Basic64,793,005 64,719,018 64,745,364 65,085,627
Diluted64,843,179 64,787,728 64,806,284 65,143,898
Net income per share:
Basic$1.112 $0.76 $5.112 $3.53
Diluted$1.112 $0.76 $5.112 $3.53
1 Checkcard revenue was reclassified from transaction card revenue to deposit service charges and fees.
2 EPS decreased $0.18 due to tax reform.


FINANCIAL HIGHLIGHTS -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands, except ratio and share data)
Three Months Ended
Dec. 31, 2017 Sept. 30, 2017 June 30, 2017 March 31, 2017 Dec. 31, 2016
Capital:
Period-end shareholders' equity$3,495,367 $3,488,814 $3,422,469 $3,341,744 $3,274,854
Risk weighted assets$25,733,711 $25,409,728 $25,130,802 $24,901,019 $25,274,848
Risk-based capital ratios:
Common equity tier 111.95% 11.90% 11.76% 11.59% 11.21%
Tier 111.95% 11.90% 11.76% 11.59% 11.21%
Total capital13.43% 13.47% 13.36% 13.25% 12.81%
Leverage ratio9.31% 9.30% 9.27% 8.89% 8.72%
Tangible common equity ratio19.50% 9.23% 9.24% 8.88% 8.61%
Common stock:
Book value per share$53.45 $53.30 $52.32 $51.09 $50.12
Tangible book value per share46.17 45.88 44.87 43.63 42.53
Market value per share:
High$93.97 $90.69 $88.31 $85.25 $85.00
Low$79.67 $77.10 $74.09 $73.44 $67.11
Cash dividends paid$29,328 $28,655 $28,652 $28,646 $28,860
Dividend payout ratio40.46% 33.46% 32.50% 32.42% 57.69%
Shares outstanding, net65,394,937 65,456,786 65,416,403 65,408,019 65,337,432
Stock buy-back program:
Shares repurchased80,000 700,000
Amount$7,403 $ $ $ $49,021
Average price per share$92.54 $ $ $ $70.03
Performance ratios (quarter annualized):
Return on average assets0.86% 1.03% 1.09% 1.09% 0.60%
Return on average equity8.24% 9.83% 10.46% 10.86% 6.03%
Net interest margin2.97% 3.01% 2.89% 2.81% 2.69%
Efficiency ratio66.89% 66.77% 64.61% 65.77% 72.93%
Reconciliation of non-GAAP measures:
1 Tangible common equity ratio:
Total shareholders' equity$3,495,367 $3,488,814 $3,422,469 $3,341,744 $3,274,854
Less: Goodwill and intangible assets, net476,088 485,710 487,452 488,294 495,830
Tangible common equity$3,019,279 $3,003,104 $2,935,017 $2,853,450 $2,779,024
Total assets$32,272,160 $33,005,515 $32,263,532 $32,628,932 $32,772,281
Less: Goodwill and intangible assets, net476,088 485,710 487,452 488,294 495,830
Tangible assets$31,796,072 $32,519,805 $31,776,080 $32,140,638 $32,276,451
Tangible common equity ratio9.50% 9.23% 9.24% 8.88% 8.61%
Other data:
Fiduciary assets$48,761,477 $45,177,185 $45,089,153 $44,992,920 $42,378,053
Tax equivalent adjustment$4,131 $4,314 $4,330 $4,428 $4,389
Net unrealized gain (loss) on available for sale securities$(47,497) $14,061 $16,041 $(5,537) $(14,899)
Mortgage banking:
Mortgage production revenue$7,786 $8,329 $13,840 $8,543 $11,937
Mortgage loans funded for sale$840,080 $832,796 $902,978 $711,019 $1,189,975
Add: current period-end outstanding commitments222,919 334,337 362,088 381,732 318,359
Less: prior period end outstanding commitments334,337 362,088 381,732 318,359 630,804
Total mortgage production volume$728,662 $805,045 $883,334 $774,392 $877,530
Mortgage loan refinances to mortgage loans funded for sale47% 38% 33% 44% 63%
Gain on sale margin1.07% 1.03% 1.57% 1.10% 1.36%
Mortgage servicing revenue$16,576 $16,561 $16,436 $16,648 $16,477
Average outstanding principal balance of mortgage loans serviced for others22,054,877 22,079,177 22,055,127 22,006,295 21,924,552
Average mortgage servicing revenue rates0.30% 0.30% 0.30% 0.31% 0.30%
Gain (loss) on mortgage servicing rights, net of economic hedge:
Gain (loss) on mortgage hedge derivative contracts, net$(3,057) $1,025 $3,241 $(528) $(35,868)
Gain (loss) on fair value option securities, net(4,238) 661 1,984 (1,140) (20,922)
Gain (loss) on economic hedge of mortgage servicing rights(7,295) 1,686 5,225 (1,668) (56,790)
Gain (loss) on changes in fair value of mortgage servicing rights5,898 (639) (6,943) 1,856 39,751
Gain (loss) on changes in fair value of mortgage servicing rights, net of economic hedges, included in other operating revenue(1,397) 1,047 (1,718) 188 (17,039)
Net interest revenue on fair value option securities22,656 2,543 1,965 1,271 114
Total economic benefit (cost) of changes in the fair value of mortgage servicing rights, net of economic hedges$1,259 $3,590 $247 $1,459 $(16,925)
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
Dec. 31, 2017 Sept. 30, 2017 June 30, 2017 March 31, 2017 Dec. 31, 2016
Interest revenue$255,767 $255,413 $235,181 $226,390 $215,737
Interest expense38,904 36,961 29,977 25,208 21,539
Net interest revenue216,863 218,452 205,204 201,182 194,198
Provision for credit losses(7,000)
Net interest revenue after provision for credit losses223,863 218,452 205,204 201,182 194,198
Other operating revenue:
Brokerage and trading revenue33,045 33,169 31,764 33,623 28,500
Transaction card revenue129,536 32,844 30,228 27,380 29,682
Fiduciary and asset management revenue41,767 40,687 41,808 38,631 34,535
Deposit service charges and fees127,685 28,191 28,422 27,777 28,204
Mortgage banking revenue24,362 24,890 30,276 25,191 28,414
Other revenue11,762 13,670 14,984 11,752 12,693
Total fees and commissions168,157 173,451 177,482 164,354 162,028
Other gains (losses), net552 (1,283) 6,108 3,627 (1,279)
Gain (loss) on derivatives, net(3,045) 1,033 3,241 (450) (35,815)
Gain (loss) on fair value option securities, net(4,238) 661 1,984 (1,140) (20,922)
Change in fair value of mortgage servicing rights5,898 (639) (6,943) 1,856 39,751
Gain (loss) on available for sale securities, net(488) 2,487 380 2,049 (9)
Total other operating revenue166,836 175,710 182,252 170,296 143,754
Other operating expense:
Personnel145,329 147,910 143,744 136,425 141,132
Business promotion7,317 7,105 7,738 6,717 7,344
Contribution to BOKF Foundation2,000 2,000
Professional fees and services15,344 11,887 12,419 11,417 16,828
Net occupancy and equipment22,403 21,325 21,125 21,624 21,470
Insurance6,555 6,005 689 6,404 8,705
Data processing and communications38,411 37,327 36,330 34,902 33,691
Printing, postage and supplies3,781 3,917 4,140 3,851 3,998
Net losses and operating expenses of repossessed assets340 6,071 2,267 1,009 1,627
Amortization of intangible assets1,430 1,744 1,803 1,802 1,558
Mortgage banking costs14,331 13,450 12,072 13,003 17,348
Other expense6,746 9,193 8,558 7,557 9,846
Total other operating expense263,987 265,934 250,885 244,711 265,547
Net income before taxes126,712 128,228 136,571 126,767 72,405
Federal and state income taxes54,347 42,438 47,705 38,103 22,496
Net income72,365 85,790 88,866 88,664 49,909
Net income (loss) attributable to non-controlling interests(127) 141 719 308 (117)
Net income attributable to BOK Financial Corporation shareholders$72,492 $85,649 $88,147 $88,356 $50,026
Average shares outstanding:
Basic64,793,005 64,742,822 64,729,752 64,715,964 64,719,018
Diluted64,843,179 64,805,172 64,793,134 64,783,737 64,787,728
Net income per share:
Basic$1.112 $1.31 $1.35 $1.35 $0.76
Diluted$1.112 $1.31 $1.35 $1.35 $0.76
1 Checkcard revenue was reclassified from transaction card revenue to deposit service charges and fees.
2 EPS decreased $0.18 due to tax reform.


LOANS TREND -- UNAUDITED
BOK FINANCIAL CORPORATION
(In thousands)
Dec. 31, 2017 Sept. 30, 2017 June 30, 2017 March 31, 2017 Dec. 31, 2016
Commercial:
Services $2,986,949 $2,967,513 $2,958,827 $3,013,375 $3,108,990
Energy 2,930,156 2,867,981 2,847,240 $2,537,112 2,497,868
Healthcare 2,314,753 2,239,451 2,221,518 2,265,604 2,201,916
Wholesale/retail 1,471,256 1,658,098 1,543,695 1,506,243 1,576,818
Manufacturing 496,774 519,446 546,137 543,430 514,975
Other commercial and industrial 534,087 543,445 520,538 461,346 490,257
Total commercial 10,733,975 10,795,934 10,637,955 10,327,110 10,390,824
Commercial real estate:
Multifamily 980,017 999,009 952,380 922,991 903,272
Office 831,770 797,089 862,973 860,889 798,888
Retail 691,532 725,865 722,805 745,046 761,888
Industrial 573,014 591,080 693,635 871,463 871,749
Residential construction and land development 117,245 112,102 141,592 135,994 135,533
Other real estate 286,409 292,997 315,207 334,680 337,716
Total commercial real estate 3,479,987 3,518,142 3,688,592 3,871,063 3,809,046
Residential mortgage:
Permanent mortgage 1,043,435 1,013,965 989,040 977,743 1,006,820
Permanent mortgages guaranteed by U.S. government agencies 197,506 187,370 191,729 204,181 199,387
Home equity 732,745 744,415 758,429 764,350 743,625
Total residential mortgage 1,973,686 1,945,750 1,939,198 1,946,274 1,949,832
Personal 965,776 947,008 917,900 847,459 839,958
Total $17,153,424 $17,206,834 $17,183,645 $16,991,906 $16,989,660


LOANS BY PRINCIPAL MARKET AREA -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands)
Dec. 31, 2017 Sept. 30, 2017 June 30, 2017 March 31, 2017 Dec. 31, 2016
Bank of Oklahoma:
Commercial$3,238,720 $3,408,973 $3,369,967 $3,189,183 $3,370,259
Commercial real estate682,037 712,915 667,932 691,332 684,381
Residential mortgage1,435,432 1,405,900 1,398,021 1,404,054 1,407,197
Personal342,212 322,320 318,016 310,708 303,823
Total Bank of Oklahoma5,698,401 5,850,108 5,753,936 5,595,277 5,765,660
Bank of Texas:
Commercial4,520,401 4,434,595 4,339,634 4,148,316 4,022,455
Commercial real estate1,261,864 1,236,702 1,360,164 1,452,988 1,415,011
Residential mortgage233,675 229,993 232,074 231,647 233,981
Personal375,084 375,173 354,222 312,092 306,748
Total Bank of Texas6,391,024 6,276,463 6,286,094 6,145,043 5,978,195
Bank of Albuquerque:
Commercial343,296 367,747 369,370 407,403 399,256
Commercial real estate341,282 319,208 324,405 307,927 284,603
Residential mortgage98,018 101,983 103,849 106,432 108,058
Personal11,721 12,953 12,439 11,305 11,483
Total Bank of Albuquerque794,317 801,891 810,063 833,067 803,400
Bank of Arkansas:
Commercial95,644 91,051 85,020 88,010 86,577
Commercial real estate87,393 80,917 73,943 74,469 73,616
Residential mortgage6,596 6,318 6,395 6,829 7,015
Personal9,992 10,388 11,993 6,279 6,524
Total Bank of Arkansas199,625 188,674 177,351 175,587 173,732
Colorado State Bank & Trust:
Commercial1,130,714 1,124,200 1,065,780 998,216 1,018,208
Commercial real estate174,201 186,427 255,379 266,218 265,264
Residential mortgage63,350 63,734 63,346 62,313 59,631
Personal63,115 60,513 56,187 49,523 50,372
Total Colorado State Bank & Trust1,431,380 1,434,874 1,440,692 1,376,270 1,393,475
Bank of Arizona:
Commercial687,792 634,809 617,759 643,222 686,253
Commercial real estate660,094 706,188 705,858 737,088 747,409
Residential mortgage41,771 40,730 37,034 36,737 36,265
Personal57,140 55,050 55,528 51,386 52,553
Total Bank of Arizona1,446,797 1,436,777 1,416,179 1,468,433 1,522,480
Mobank (Kansas City):
Commercial717,408 734,559 790,425 852,760 807,816
Commercial real estate273,116 275,785 300,911 341,041 338,762
Residential mortgage94,844 97,092 98,479 98,262 97,685
Personal106,512 110,611 109,515 106,166 108,455
Total Mobank (Kansas City)1,191,880 1,218,047 1,299,330 1,398,229 1,352,718
TOTAL BOK FINANCIAL$17,153,424 $17,206,834 $17,183,645 $16,991,906 $16,989,660
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)
Dec. 31, 2017 Sept. 30, 2017 June 30, 2017 March 31, 2017 Dec. 31, 2016
Bank of Oklahoma:
Demand$3,885,008 $4,061,612 $4,353,421 $4,320,666 $3,993,170
Interest-bearing:
Transaction5,901,293 5,909,259 5,998,787 6,114,288 6,345,536
Savings265,870 265,023 263,664 265,014 241,696
Time1,092,133 1,131,547 1,170,014 1,189,144 1,118,355
Total interest-bearing7,259,296 7,305,829 7,432,465 7,568,446 7,705,587
Total Bank of Oklahoma11,144,304 11,367,441 11,785,886 11,889,112 11,698,757
Bank of Texas:
Demand3,239,098 3,094,184 3,121,890 3,091,258 3,137,009
Interest-bearing:
Transaction2,397,071 2,272,987 2,272,185 2,317,576 2,388,812
Savings93,620 93,400 91,491 89,640 83,101
Time502,879 521,072 502,128 511,037 535,642
Total interest-bearing2,993,570 2,887,459 2,865,804 2,918,253 3,007,555
Total Bank of Texas6,232,668 5,981,643 5,987,694 6,009,511 6,144,564
Bank of Albuquerque:
Demand663,353 659,793 612,117 593,117 627,979
Interest-bearing:
Transaction552,393 551,884 558,523 623,677 590,571
Savings55,647 53,532 54,136 53,683 49,963
Time216,743 224,773 229,616 233,506 238,408
Total interest-bearing824,783 830,189 842,275 910,866 878,942
Total Bank of Albuquerque1,488,136 1,489,982 1,454,392 1,503,983 1,506,921
Bank of Arkansas:
Demand30,384 31,442 40,511 42,622 26,389
Interest-bearing:
Transaction85,095 126,746 129,848 106,804 105,232
Savings1,881 1,876 2,135 2,304 2,192
Time14,045 14,434 14,876 15,067 16,696
Total interest-bearing101,021 143,056 146,859 124,175 124,120
Total Bank of Arkansas131,405 174,498 187,370 166,797 150,509
Colorado State Bank & Trust:
Demand633,714 540,300 577,617 601,778 576,000
Interest-bearing:
Transaction657,629 628,807 626,343 610,510 616,679
Savings35,223 34,776 35,651 37,801 32,866
Time224,962 231,927 228,458 234,740 242,782
Total interest-bearing917,814 895,510 890,452 883,051 892,327
Total Colorado State Bank & Trust1,551,528 1,435,810 1,468,069 1,484,829 1,468,327
Bank of Arizona:
Demand334,701 335,740 366,866 342,854 366,755
Interest-bearing:
Transaction274,846 174,010 154,457 180,254 305,099
Savings3,343 4,105 3,638 3,858 2,973
Time20,394 20,831 19,911 26,112 27,765
Total interest-bearing298,583 198,946 178,006 210,224 335,837
Total Bank of Arizona633,284 534,686 544,872 553,078 702,592
Mobank (Kansas City):
Demand457,080 462,410 496,473 514,278 508,418
Interest-bearing:
Transaction382,066 361,391 346,996 406,105 513,176
Savings13,574 12,513 13,603 13,424 12,679
Time27,260 27,705 31,119 34,242 42,152
Total interest-bearing422,900 401,609 391,718 453,771 568,007
Total Mobank (Kansas City)879,980 864,019 888,191 968,049 1,076,425
TOTAL BOK FINANCIAL$22,061,305 $21,848,079 $22,316,474 $22,575,359 $22,748,095


NET INTEREST MARGIN TREND -- UNAUDITED
BOK FINANCIAL CORPORATION
Three Months Ended
Dec. 31, 2017 Sept. 30, 2017 June 30, 2017 March 31, 2017 Dec. 31, 2016
TAX-EQUIVALENT ASSETS YIELDS
Interest-bearing cash and cash equivalents1.27% 1.29% 1.04% 0.82% 0.55%
Trading securities3.38% 3.47% 3.23% 3.87% 3.91%
Investment securities:
Taxable5.31% 5.31% 5.34% 5.44% 5.39%
Tax-exempt2.69% 2.60% 2.51% 2.45% 2.33%
Total investment securities3.98% 3.86% 3.76% 3.70% 3.60%
Available for sale securities:
Taxable2.19% 2.16% 2.09% 2.02% 1.98%
Tax-exempt5.41% 5.27% 6.09% 5.37% 5.27%
Total available for sale securities2.21% 2.17% 2.11% 2.05% 2.00%
Fair value option securities2.90% 2.97% 2.92% 2.27% 0.99%
Restricted equity securities5.87% 5.87% 5.95% 5.52% 5.45%
Residential mortgage loans held for sale3.72% 3.36% 3.92% 3.35% 3.31%
Loans4.29% 4.31% 4.03% 3.88% 3.67%
Allowance for loan losses
Loans, net of allowance4.35% 4.38% 4.09% 3.94% 3.72%
Total tax-equivalent yield on earning assets3.49% 3.50% 3.30% 3.15% 2.98%
COST OF INTEREST-BEARING LIABILITIES
Interest-bearing deposits:
Interest-bearing transaction0.35% 0.32% 0.26% 0.20% 0.16%
Savings0.07% 0.08% 0.08% 0.08% 0.09%
Time1.17% 1.16% 1.11% 1.09% 1.12%
Total interest-bearing deposits0.48% 0.45% 0.40% 0.35% 0.32%
Funds purchased0.90% 0.92% 0.61% 0.47% 0.28%
Repurchase agreements0.18% 0.15% 0.06% 0.02% 0.02%
Other borrowings1.36% 1.29% 1.09% 0.83% 0.61%
Subordinated debt5.55% 5.68% 5.55% 5.68% 5.51%
Total cost of interest-bearing liabilities0.79% 0.75% 0.63% 0.52% 0.44%
Tax-equivalent net interest revenue spread2.70% 2.75% 2.67% 2.63% 2.54%
Effect of noninterest-bearing funding sources and other0.27% 0.26% 0.22% 0.18% 0.15%
Tax-equivalent net interest margin2.97% 3.01% 2.89% 2.81% 2.69%
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
BOK FINANCIAL CORPORATION
(in thousands, except ratios)
Three Months Ended
Dec. 31, 2017 Sept. 30, 2017 June 30, 2017 March 31, 2017 Dec. 31, 2016
Nonperforming assets:
Nonaccruing loans:
Commercial$137,303 $176,900 $197,157 $156,825 $178,953
Commercial real estate2,855 2,975 3,775 4,475 5,521
Residential mortgage47,447 45,506 44,235 46,081 46,220
Personal269 255 272 235 290
Total nonaccruing loans187,874 225,636 245,439 207,616 230,984
Accruing renegotiated loans guaranteed by U.S. government agencies73,994 69,440 80,624 83,577 81,370
Real estate and other repossessed assets:28,437 32,535 39,436 42,726 44,287
Total nonperforming assets$290,305 $327,611 $365,499 $333,919 $356,641
Total nonperforming assets excluding those guaranteed by U.S. government agencies$207,132 $249,280 $275,823 $240,234 $263,425
Nonaccruing loans by loan portfolio sector:
Commercial:
Energy$92,284 $110,683 $123,992 $110,425 $132,499
Services2,620 1,174 7,754 7,713 8,173
Healthcare14,765 24,446 24,505 909 825
Wholesale/retail2,574 1,893 10,620 11,090 11,407
Manufacturing5,962 9,059 9,656 5,907 4,931
Other commercial and industrial19,098 29,645 20,630 20,781 21,118
Total commercial137,303 176,900 197,157 156,825 178,953
Commercial real estate:
Construction and land development1,832 1,924 2,051 2,616 3,433
Retail276 289 301 314 326
Office275 275 396 413 426
Multifamily 10 24 38
Industrial 76 76
Other commercial real estate472 487 1,017 1,032 1,222
Total commercial real estate2,855 2,975 3,775 4,475 5,521
Residential mortgage:
Permanent mortgage25,193 24,623 23,415 24,188 22,855
Permanent mortgage guaranteed by U.S. government agencies9,179 8,891 9,052 10,108 11,846
Home equity13,075 11,992 11,768 11,785 11,519
Total residential mortgage47,447 45,506 44,235 46,081 46,220
Personal269 255 272 235 290
Total nonaccruing loans$187,874 $225,636 $245,439 $207,616 $230,984
Performing loans 90 days past due1$633 $253 $1,414 $95 $5
Gross charge-offs$(14,749) $(5,825) $(2,872) $(2,153) $(1,651)
Recoveries3,061 2,437 1,214 2,900 2,813
Net recoveries (charge-offs)$(11,688) $(3,388) $(1,658) $747 $1,162
Provision for credit losses$(7,000) $ $ $ $
Allowance for loan losses to period end loans1.34% 1.44% 1.46% 1.46% 1.45%
Combined allowance for credit losses to period end loans1.37% 1.47% 1.49% 1.52% 1.52%
Nonperforming assets to period end loans and repossessed assets1.69% 1.90% 2.12% 1.96% 2.09%
Net charge-offs (annualized) to average loans0.27% 0.08% 0.04% (0.02)% (0.03)%
Allowance for loan losses to nonaccruing loans1129.09% 114.28% 105.78% 125.92% 112.33%
Combined allowance for credit losses to nonaccruing loans1131.18% 116.78% 108.51% 130.70% 117.46%
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