Form 8-K BOK FINANCIAL CORP ET For: Jan 30
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
January 30, 2019
Commission File No. 0-19341
BOK FINANCIAL CORPORATION
(Exact name of registrant as specified in its charter)
Oklahoma | 73-1373454 | |
(State or other jurisdiction of Incorporation or Organization) | (IRS Employer Identification No.) | |
Bank of Oklahoma Tower | ||
Boston Avenue at Second Street | ||
Tulsa, Oklahoma | 74192 | |
(Address of Principal Executive Offices) | (Zip Code) | |
(918) 588-6000
(Registrant’s telephone number, including area code)
N/A
___________________________________________
(Former name or former address, if changes since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
|_| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425).
|_| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12).
|_| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)).
|_| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)).
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
¨ Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
INFORMATION TO BE INCLUDED IN THE REPORT
ITEM 2.02. Results of Operations and Financial Condition.
On January 30, 2019, BOK Financial Corporation (“BOK Financial”) issued a press release announcing its financial results for the three months and year ended December 31, 2018 (“Press Release”). The full text of the Press Release is attached as Exhibit 99(a) to this report and is incorporated herein by reference. On January 30, 2019, in connection with issuance of the Press Release, BOK Financial released financial information related to the three months and year ended December 31, 2018 (“Financial Information”), which includes certain historical financial information relating to BOK Financial. The Financial Information is attached as Exhibit 99(b) to this report and is incorporated herein by reference.
ITEM 9.01. Financial Statements and Exhibits.
(a) | Exhibits |
99 |
Signature
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
BOK FINANCIAL CORPORATION
By: /s/ Steven E. Nell
Steven E. Nell
Executive Vice President
Chief Financial Officer
Date: January 30, 2019
Exhibit 99(a)
NASD: BOKF
BOK Financial Reports Quarterly Earnings of $108 million or $1.50 Per Share
Record Annual Earnings of $446 million or $6.63 Per Share
CEO Commentary |
Steven G. Bradshaw, president, and chief executive officer, stated, “Another strong quarter was the capstone on a record year for BOK Financial. This quarter, and all throughout the year, we saw growth in net interest margin and net interest income, combined with strong, broad-based, loan growth. This year’s outstanding loan production, led by our specialty lines of business like Energy, Healthcare and Commercial Real Estate, fueled the largest annual revenues in the history of the company. While we benefited from a healthy economy and stable credit environment in 2018, the key driver for our expanding earnings leverage was our success at maintaining expense discipline throughout the year. I couldn’t be more proud of the hard work and dedication of every single one of our employees.” Bradshaw continued, “2018 also brought the largest acquisition in company history, CoBiz Financial. Integration is well underway, and we are already capitalizing on our opportunities in Colorado and Arizona - two important growth markets. I am excited for what CoBiz adds to our organization, and I am as confident in our business prospects today as I have been in years. Though there are some market headwinds that many will point to as potential roadblocks for the financial industry, I have full faith in our diversified approach to driving shareholder value. We believe we are well-positioned to continue to grow revenues and energize earnings growth in 2019.” |
Fourth Quarter 2018 Financial Highlights | Fourth Quarter 2018 Business Segment Highlights | |
• | Net income was $108.5 million or $1.50 per diluted share for the fourth quarter of 2018 and $117.3 million and $1.79 per diluted share for the third quarter of 2018. The fourth quarter included a 15 cent per share reduction as a result of CoBiz closing and integrations costs. The third quarter included an 18 cent per share addition from a client asset management fee. The Company also issued 7.2 million shares in the fourth quarter to fund the CoBiz Financial acquisition. |
• | Net interest revenue totaled $285.7 million, up $44.8 million. CoBiz added $43.1 million. Net interest margin increased to 3.40 percent from 3.21 percent. |
• | Fees and commissions revenue totaled $160.1 million, a decrease of $6.1 million or 4 percent. |
• | Operating expense increased $32.0 million or 13 percent to $284.6 million, including $14.5 million of closing and integration costs. CoBiz added $29.7 million of operating costs. |
• | A $9.0 million provision for credit losses was recorded in the fourth quarter of 2018. The combined allowance for credit losses totaled $209 million or 0.97 percent of outstanding loans and 1.12 percent of outstanding loans, excluding acquired loans. |
• | Period-end loans increased $3.3 billion. Excluding $2.9 billion of acquired loans, period-end loans increased $393 million or 2 percent. |
• | The Company repurchased 525,000 shares at an average price of $85.82 per share. |
Commercial Banking
• | Contributed $84.6 million to net income, consistent with the prior quarter. Increased net interest revenue was offset by increased net charge-offs. |
• | Net interest revenue was $148 million, an increase of $3.2 million. |
• | Average loans increased $307 million or 2 percent. |
Consumer Banking
• | Contributed $2.7 million to net income, a decrease of$5.6 million compared to the third quarter. Interest rate volatility affected the effectiveness of our mortgage servicing rights hedging strategy. |
• | Net interest revenue increased $2.3 million or 6 percent. |
• | Fees and commissions revenue decreased $1.2 million or 3 percent while operating expenses decreased $1.9 million or 4 percent. |
Wealth Management
• | Contributed $17.5 million to net income, a decrease of $11.6 million compared to the prior quarter. The third quarter included a $15.4 million fee earned on the sale of client assets. |
• | Net interest revenue remained consistent compared to the prior quarter at $29.3 million. |
• | Average loans grew $9.0 million or 1 percent. |
• | Assets under management or administration were $76.3 billion at December 31, 2018 compared to $77.6 billion at September 30, 2018. Fiduciary assets totaled $44.8 billion at December 31, 2018 and $45.6 billion at September 30, 2018. |
1
Net Interest Revenue | ||||
Net interest revenue was $285.7 million for the fourth quarter of 2018, a $44.8 million increase over the third quarter of 2018. The CoBiz acquisition added $43.1 million to net interest revenue, including $6.4 million of net purchase accounting discount accretion.
Net interest margin was 3.40 percent for the fourth quarter of 2018, up 19 basis points over the third quarter of 2018. The yield on average earning assets was 4.33 percent, a 29 basis point increase. The yield on the loan portfolio was 5.09 percent, up 29 basis points including 12 basis points from net purchase accounting discount accretion. The remaining increase is due primarily to an increase in short-term market interest rates related to the Federal Reserve's 25 basis point rate increase in September. The yield on the available for sale securities portfolio increased 14 basis points to 2.51 percent. The yield on the trading securities portfolio was up 12 basis points.
Funding costs were 1.42 percent, up 17 basis points. The cost of interest-bearing deposits increased 10 basis points to 0.87 percent. The cost of other borrowed funds was up 29 basis points to 2.33 percent. The benefit to net interest margin from assets funded by non-interest liabilities increased to 49 basis points from 42 basis points in the third quarter of 2018.
Average earning assets increased $3.8 billion compared to the third quarter of 2018, primarily related to the CoBiz acquisition. Average loan balances were up $3.4 billion. Trading securities balances increased $167 million and interest-bearing cash and cash equivalents balances decreased $126 million. Available for sale securities increased $576 million. Average interest-bearing deposit balances increased $1.8 billion compared to the third quarter of 2018 and borrowed funds increased $608 million.
Fees and Commissions Revenue | ||||
Fees and commissions revenue totaled $160.1 million for the fourth quarter of 2018, a decrease of $6.1 million due largely to a $15.4 million fee earned on the sale of client assets in the third quarter. CoBiz added $8.5 million to fees and commissions revenue in the fourth quarter of 2018. Excluding these items, fees and commissions revenue was consistent with the prior quarter.
Brokerage and trading revenue increased $1.6 million due primarily to customer risk management products.
Mortgage banking revenue decreased $1.7 million. Rising interest rates combined with seasonal production reductions and increased market competition decreased mortgage production volume by $137 million. Mortgage gain on sale margins decreased 11 basis points.
2
Operating Expense | ||||
Total operating expense was $284.6 million for the fourth quarter of 2018, an increase of $32.0 million compared to the third quarter of 2018. CoBiz closing and integration costs were $14.5 million in the fourth quarter of 2018. The following discussion excludes the impact of these costs.
Personnel expense increased $11.5 million including $19.3 million due to the addition of CoBiz operations. Incentive compensation expense decreased $10.8 million mainly due to changes in vesting assumptions related to the Company's earnings per share growth relative to a defined peer group.
Non-personnel expense increased $6.8 million. The fourth quarter included $10.4 million related to CoBiz operations. Excluding this impact, non-personnel expense decreased $3.6 million or 3 percent. Data processing and communications expense decreased $4.1 million, primarily due to impairment of a software license in the third quarter. Insurance expense decreased $2.0 million due to the elimination of a large bank deposit insurance surcharge assessed by the FDIC. The fourth quarter included a $2.8 million contribution to the BOKF Foundation.
Income Taxes | ||||
The effective tax rate for the fourth quarter is less than 16 percent, nearly 7 percentage points lower than usual. The 2017 tax returns were finalized in the fourth quarter. This resolved several uncertainties caused by last year's Tax Cuts and Jobs Act. Resolution of these uncertainties and other routine adjustments reduced tax expense for the quarter by $8.6 million. This is a single-quarter impact and the tax rate will revert to a 22-23 percent level.
Loans, Deposits and Capital | ||||
Loans
Outstanding loans were $21.7 billion at December 31, 2018, up $3.3 billion over September 30, 2018. Excluding $2.9 billion of loans, net of fair value adjustments, added by the CoBiz acquisition, loans were up $393 million or 2 percent. Loan growth continued to be focused in commercial and commercial real estate. The fluctuation discussion following excludes acquired loans.
Outstanding commercial loan balances grew by $230 million or 2 percent over September 30, 2018. Energy loan balances were up $275 million, consistent with our ongoing support and commitment to the oil and gas industry. Other commercial and industrial loans were up $125 million. Service sector loans increased $50 million and healthcare sector loans increased by $47 million. This growth was partially offset by a $182 million decrease in wholesale/retail sector loans and an $82 million decrease in manufacturing sector loans.
Commercial real estate loan balances continued to grow, up $122 million or 3 percent over September 30, 2018. Loans secured by office buildings increased $79 million and loans secured by multifamily residential properties increased $40 million.
3
Deposits
Period-end deposits totaled $25.3 billion at December 31, 2018, a $3.6 billion increase compared to September 30, 2018, including $3.3 billion related to CoBiz. Demand deposit balances increased $1.4 billion, interest-bearing transaction account balances increased $2.2 billion and time deposit balances increased by $38 million.
Capital
The company's common equity Tier 1 capital ratio was 10.92 percent at December 31, 2018. In addition, the company's Tier 1 capital ratio was 10.92 percent, total capital ratio was 12.50 percent, and leverage ratio was 8.96 percent at December 31, 2018. At September 30, 2018, the company's common equity Tier 1 capital ratio was 12.07 percent, Tier 1 capital ratio was 12.07 percent, total capital ratio was 13.37 percent, and leverage ratio was 9.90 percent.
The company's tangible common equity ratio, a non-GAAP measure, was 8.82 percent at December 31, 2018 and 9.55 percent at September 30, 2018. 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 $267 million or 1.23 percent of outstanding loans and repossessed assets at December 31, 2018, compared to $261 million or 1.42 percent at September 30, 2018. Nonperforming assets that are not guaranteed by U.S. government agencies totaled $174 million or 0.81 percent of outstanding loans and repossessed assets (excluding those guaranteed by U.S. government agencies) at December 31, 2018, compared to $170 million or 0.93 percent at September 30, 2018. The CoBiz acquisition added $18 million to nonperforming assets during the fourth quarter, net of fair value adjustments.
Nonaccruing loans were $163 million or 0.75 percent of outstanding loans at December 31, 2018. Nonaccruing commercial loans totaled $100 million or 0.73 percent of outstanding commercial loans. Nonaccruing commercial real estate loans totaled $22 million or 0.45 percent of outstanding commercial real estate loans. Nonaccruing residential mortgage loans totaled $42 million or 1.86 percent of outstanding residential mortgage loans.
Excluding CoBiz, nonaccruing loans decreased $2.2 million from September 30, 2018. Wholesale/retail sector loans decreased $8.6 million, energy loans decreased $7.5 million and healthcare sector loans decreased $4.6 million. These decreases were partially offset by a $20 million increase in nonaccruing retail sector loans. New nonaccruing loans identified in the fourth quarter totaled $44 million, offset by $31 million in payments received and $15 million in charge-offs.
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 $215 million at December 31, compared to $176 million at September 30. The increase was primarily due to the addition of $65 million of acquired potential problem loans. Potential problem loans from the legacy BOKF portfolio decreased $26 million.
4
Net charge-offs were $12.3 million or 0.23 percent of average loans on an annualized basis for fourth quarter of 2018, compared to $9.0 million or 0.20 percent of average loans on an annualized basis for the third quarter of 2018. Net charge-offs were 0.18 percent of average loans over the last four quarters. Net charge-offs for the fourth quarter were primarily related to a single wholesale/retail sector borrower and a single energy production borrower, both of which had previously been identified as impaired and appropriately reserved. Gross charge-offs were $14.5 million for the fourth quarter compared to $11.1 million for the previous quarter. Recoveries totaled $2.2 million for the fourth quarter of 2018 and $2.1 million for the third quarter of 2018.
Based on an evaluation of all credit factors, including overall loan portfolio growth, changes in nonaccruing and potential problem loans and net charge-offs, the company determined that a $9.0 million provision for credit losses was appropriate for the fourth quarter of 2018. The company recorded $4.0 million provision for credit losses in the third quarter of 2018.
The combined allowance for credit losses totaled $209 million or 0.97 percent of outstanding loans and 134 percent of nonaccruing loans at December 31, excluding residential mortgage loans guaranteed by U.S. government agencies. Excluding loans from the CoBiz acquisition, which are measured at acquisition-date fair value, the combined allowance for loan losses was 1.12 percent of outstanding loans and 146 percent of nonaccruing loans at December 31. The allowance for loan losses was $207 million and the accrual for off-balance sheet credit losses was $1.8 million. At September 30, the combined allowance for credit losses was $213 million or 1.16 percent of outstanding loans and 146 percent of nonaccruing loans, excluding loans guaranteed by U.S. government agencies. The allowance for loan losses was $211 million and the accrual for off-balance sheet credit losses was $2.0 million.
Securities and Derivatives | ||||
The fair value of the available for sale securities portfolio totaled $8.9 billion at December 31, 2018, a $785 million increase compared to September 30, 2018. At December 31, 2018, the available for sale securities portfolio consisted primarily of $5.8 billion of residential mortgage-backed securities fully backed by U.S. government agencies and $3.0 billion of commercial mortgage-backed securities fully backed by U.S. government agencies. At December 31, 2018, the available for sale securities portfolio had a net unrealized loss of $95 million compared to a $217 million net unrealized loss at September 30, 2018.
Trading securities increased $344 million to $2.0 billion during the fourth quarter of 2018 as a result of the company providing continued liquidity to its core client base of mortgage originators. The company holds an inventory of trading securities in support of sales to a variety of customers, including banks, corporations, insurance companies, money managers, and others.
The company also maintains a portfolio of residential mortgage-backed securities issued by U.S. government agencies and interest rate derivative contracts as an economic hedge of the changes in the fair value of our mortgage servicing rights.
The net economic cost of the changes in fair value of mortgage servicing rights and related economic hedges was $11.7 million during the fourth quarter of 2018, including a $24.2 million decrease in the fair value of mortgage servicing rights, a $11.9 million increase in the fair value of securities and derivative contracts held as an economic hedge, and $695 thousand of related net interest revenue largely driven by a 60 basis point drop in the primary mortgage interest rate in the last two months of the fourth quarter.
The fair value of mortgage servicing rights increased by $6.0 million during the third quarter of 2018. The fair value of securities and interest rate derivative contracts held as an economic hedge of mortgage servicing rights decreased by $7.2 million. Related net interest revenue was $1.1 million during the third quarter of 2018.
Commercial Banking | ||||
Net income for Commercial Banking was $84.6 million for the fourth quarter of 2018, consistent with the third quarter of 2018. Increased net interest revenue was offset by increased net charge-offs.
Average loan balances increased $307 million or 2 percent, largely due to increases in energy and commercial real estate loans. Average customer deposits were $8.4 billion, a decrease of $240 million or 3 percent, mostly due to the energy and real estate sectors. The fourth quarter of 2018 saw a shift in the deposit mix with demand deposit balances declining $330 million and interest-bearing transaction deposits increasing $95 million.
Both fees and commissions revenue and operating expenses were consistent with the third quarter of 2018. There has been continued success in leading syndicated loan transactions, which has led to a record year for syndication revenue.
Consumer Banking | ||||
Net income from Consumer Banking was $2.7 million in the fourth quarter of 2018, a decrease of $5.6 million or 67 percent. The net economic cost of the changes in fair value of mortgage servicing rights and related economic hedges was $11.7 million for the fourth quarter of 2018 compared to $156 thousand for the third quarter of 2018.
Net interest revenue from Consumer Banking activities increased $2.3 million. Average loans increased $26 million or 2 percent over the third quarter of 2018. Average deposits decreased $38 million or 1 percent due to a seasonal reduction in mortgage escrow accounts related to annual property tax payments.
Revenues from mortgage banking activities decreased $1.6 million from the prior quarter due to rising interest rates, increased market competition and seasonal production decreases. Mortgage production volume declined 21 percent compared to the prior quarter. Operating expenses decreased $1.9 million as expenses are reduced to align with lower mortgage production.
Wealth Management | ||||
Net income for Wealth Management decreased $11.6 million to $17.5 million during the fourth quarter of 2018. This decrease included an after tax benefit of $11.5 million as a result of a fee earned on the sale of client assets in the third quarter. Excluding this fee, fiduciary and asset management fees produced relatively consistent results compared to the third quarter of 2018.
Average loans increased $9 million or 1 percent to $1.4 billion. Average deposits were stable at $5.5 billion. Assets under management or administration were $76.3 billion at December 31, 2018 compared to $77.6 billion at September 30, 2018. Fiduciary assets totaled $44.8 billion at December 31, 2018 and $45.6 billion at September 30, 2018.
5
Conference Call and Webcast | ||||
The company will hold a conference call at 9 a.m. Central time on Wednesday, January 30, 2019 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 # 13686207.
About BOK Financial Corporation | ||||
BOK Financial Corporation is a $38 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, CoBiz Bank, 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, 2018 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, including its latest acquisition of CoBiz Financial, Inc., 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, inflation, 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. There may also be difficulties and delays in integrating CoBiz Financial Inc.'s business or fully realizing cost savings and other benefits including, but not limited to, business disruption and customer acceptance of BOK Financial Corporation's products and
6
services. 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.
7
Exhibit 99(b)
BALANCE SHEETS -- UNAUDITED BOK FINANCIAL CORPORATION (In thousands) | |||||||||||
Dec. 31, 2018 | Sept. 30, 2018 | Dec. 31, 2017 | |||||||||
ASSETS | |||||||||||
Cash and due from banks | $ | 741,749 | $ | 815,458 | $ | 602,510 | |||||
Interest-bearing cash and cash equivalents | 401,675 | 430,789 | 1,714,544 | ||||||||
Trading securities | 1,956,923 | 1,613,400 | 462,676 | ||||||||
Investment securities | 355,187 | 374,039 | 461,793 | ||||||||
Available for sale securities | 8,857,120 | 8,072,014 | 8,321,578 | ||||||||
Fair value option securities | 283,235 | 452,150 | 755,054 | ||||||||
Restricted equity securities | 344,447 | 311,189 | 320,189 | ||||||||
Residential mortgage loans held for sale | 149,221 | 175,866 | 221,378 | ||||||||
Loans: | |||||||||||
Commercial | 13,636,078 | 11,576,101 | 10,733,975 | ||||||||
Commercial real estate | 4,764,813 | 3,804,675 | 3,479,987 | ||||||||
Residential mortgage | 2,230,033 | 1,971,742 | 1,973,686 | ||||||||
Personal | 1,025,806 | 996,941 | 965,776 | ||||||||
Total loans | 21,656,730 | 18,349,459 | 17,153,424 | ||||||||
Allowance for loan losses | (207,457 | ) | (210,569 | ) | (230,682 | ) | |||||
Loans, net of allowance | 21,449,273 | 18,138,890 | 16,922,742 | ||||||||
Premises and equipment, net | 330,033 | 327,129 | 317,335 | ||||||||
Receivables | 204,960 | 277,738 | 178,800 | ||||||||
Goodwill | 1,049,263 | 447,430 | 447,430 | ||||||||
Intangible assets, net | 134,849 | 33,370 | 28,658 | ||||||||
Mortgage servicing rights | 259,254 | 284,673 | 252,867 | ||||||||
Real estate and other repossessed assets, net | 17,487 | 24,515 | 28,437 | ||||||||
Derivative contracts, net | 320,929 | 349,481 | 220,502 | ||||||||
Cash surrender value of bank-owned life insurance | 381,608 | 323,628 | 316,498 | ||||||||
Receivable on unsettled securities sales | 336,400 | 421,313 | 340,077 | ||||||||
Other assets | 446,891 | 416,792 | 359,092 | ||||||||
TOTAL ASSETS | $ | 38,020,504 | $ | 33,289,864 | $ | 32,272,160 | |||||
LIABILITIES AND EQUITY | |||||||||||
Deposits: | |||||||||||
Demand | $ | 10,414,592 | $ | 9,063,623 | $ | 9,243,338 | |||||
Interest-bearing transaction | 12,206,576 | 9,990,219 | 10,250,393 | ||||||||
Savings | 529,215 | 502,601 | 469,158 | ||||||||
Time | 2,113,380 | 2,075,846 | 2,098,416 | ||||||||
Total deposits | 25,263,763 | 21,632,289 | 22,061,305 | ||||||||
Funds purchased and repurchase agreements | 1,018,411 | 790,741 | 574,963 | ||||||||
Other borrowings | 6,124,390 | 6,025,483 | 5,134,897 | ||||||||
Subordinated debentures | 275,913 | 144,707 | 144,677 | ||||||||
Accrued interest, taxes and expense | 192,826 | 231,592 | 164,895 | ||||||||
Due on unsettled securities purchases | 156,370 | 414,283 | 338,745 | ||||||||
Derivative contracts, net | 362,306 | 252,387 | 171,963 | ||||||||
Other liabilities | 183,480 | 172,622 | 162,381 | ||||||||
TOTAL LIABILITIES | 33,577,459 | 29,664,104 | 28,753,826 | ||||||||
Shareholders' equity: | |||||||||||
Capital, surplus and retained earnings | 4,504,694 | 3,777,394 | 3,531,541 | ||||||||
Accumulated other comprehensive loss | (72,585 | ) | (162,362 | ) | (36,174 | ) | |||||
TOTAL SHAREHOLDERS' EQUITY | 4,432,109 | 3,615,032 | 3,495,367 | ||||||||
Non-controlling interests | 10,936 | 10,728 | 22,967 | ||||||||
TOTAL EQUITY | 4,443,045 | 3,625,760 | 3,518,334 | ||||||||
TOTAL LIABILITIES AND EQUITY | $ | 38,020,504 | $ | 33,289,864 | $ | 32,272,160 | |||||
8
AVERAGE BALANCE SHEETS -- UNAUDITED BOK FINANCIAL CORPORATION (in thousands) | |||||||||||||||||||
Three Months Ended | |||||||||||||||||||
Dec. 31, 2018 | Sept. 30, 2018 | June 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | |||||||||||||||
ASSETS | |||||||||||||||||||
Interest-bearing cash and cash equivalents | $ | 563,132 | $ | 688,872 | $ | 1,673,387 | $ | 2,059,517 | $ | 1,976,395 | |||||||||
Trading securities | 1,929,601 | 1,762,794 | 1,482,302 | 933,404 | 560,321 | ||||||||||||||
Investment securities | 364,737 | 379,566 | 399,088 | 441,207 | 462,869 | ||||||||||||||
Available for sale securities | 8,704,963 | 8,129,214 | 8,163,142 | 8,236,938 | 8,435,916 | ||||||||||||||
Fair value option securities | 277,575 | 469,398 | 487,192 | 626,251 | 792,647 | ||||||||||||||
Restricted equity securities | 362,729 | 328,842 | 348,546 | 349,176 | 337,673 | ||||||||||||||
Residential mortgage loans held for sale | 179,553 | 207,488 | 218,600 | 199,380 | 257,927 | ||||||||||||||
Loans: | |||||||||||||||||||
Commercial | 13,587,344 | 11,484,200 | 11,189,899 | 10,871,569 | 10,751,235 | ||||||||||||||
Commercial real estate | 4,747,784 | 3,774,470 | 3,660,166 | 3,491,335 | 3,485,583 | ||||||||||||||
Residential mortgage | 2,222,063 | 1,956,089 | 1,915,015 | 1,937,198 | 1,976,860 | ||||||||||||||
Personal | 1,022,140 | 989,026 | 986,162 | 961,379 | 967,329 | ||||||||||||||
Total loans | 21,579,331 | 18,203,785 | 17,751,242 | 17,261,481 | 17,181,007 | ||||||||||||||
Allowance for loan losses | (209,613 | ) | (214,160 | ) | (222,856 | ) | (228,996 | ) | (246,143 | ) | |||||||||
Total loans, net | 21,369,718 | 17,989,625 | 17,528,386 | 17,032,485 | 16,934,864 | ||||||||||||||
Total earning assets | 33,752,008 | 29,955,799 | 30,300,643 | 29,878,358 | 29,758,612 | ||||||||||||||
Cash and due from banks | 731,700 | 578,905 | 571,333 | 564,585 | 576,737 | ||||||||||||||
Derivative contracts, net | 299,319 | 294,126 | 318,375 | 278,694 | 292,961 | ||||||||||||||
Cash surrender value of bank-owned life insurance | 379,893 | 322,038 | 319,507 | 317,334 | 315,034 | ||||||||||||||
Receivable on unsettled securities sales | 799,548 | 768,785 | 618,240 | 998,803 | 821,275 | ||||||||||||||
Other assets | 2,423,275 | 1,776,164 | 1,777,937 | 1,687,178 | 1,687,496 | ||||||||||||||
TOTAL ASSETS | $ | 38,385,743 | $ | 33,695,817 | $ | 33,906,035 | $ | 33,724,952 | $ | 33,452,115 | |||||||||
LIABILITIES AND EQUITY | |||||||||||||||||||
Deposits: | |||||||||||||||||||
Demand | $ | 10,648,683 | $ | 9,325,002 | $ | 9,223,327 | $ | 9,151,272 | $ | 9,417,351 | |||||||||
Interest-bearing transaction | 11,773,651 | 10,010,031 | 10,189,354 | 10,344,469 | 10,142,744 | ||||||||||||||
Savings | 526,275 | 503,821 | 503,671 | 480,110 | 466,496 | ||||||||||||||
Time | 2,146,786 | 2,097,441 | 2,138,880 | 2,151,044 | 2,134,469 | ||||||||||||||
Total deposits | 25,095,395 | 21,936,295 | 22,055,232 | 22,126,895 | 22,161,060 | ||||||||||||||
Funds purchased and repurchase agreements | 1,205,568 | 1,193,583 | 593,250 | 532,412 | 488,330 | ||||||||||||||
Other borrowings | 6,361,141 | 5,765,440 | 6,497,020 | 6,326,967 | 6,209,903 | ||||||||||||||
Subordinated debentures | 276,378 | 144,702 | 144,692 | 144,682 | 144,673 | ||||||||||||||
Derivative contracts, net | 268,848 | 185,029 | 235,543 | 223,373 | 288,408 | ||||||||||||||
Due on unsettled securities purchases | 493,887 | 544,263 | 527,804 | 558,898 | 332,155 | ||||||||||||||
Other liabilities | 341,438 | 311,605 | 340,322 | 333,151 | 312,196 | ||||||||||||||
TOTAL LIABILITIES | 34,042,655 | 30,080,917 | 30,393,863 | 30,246,378 | 29,936,725 | ||||||||||||||
Total equity | 4,343,088 | 3,614,900 | 3,512,172 | 3,478,574 | 3,515,390 | ||||||||||||||
TOTAL LIABILITIES AND EQUITY | $ | 38,385,743 | $ | 33,695,817 | $ | 33,906,035 | $ | 33,724,952 | $ | 33,452,115 | |||||||||
9
STATEMENTS OF EARNINGS -- UNAUDITED BOK FINANCIAL CORPORATION (in thousands, except per share data) | |||||||||||||||
Three Months Ended | Year Ended | ||||||||||||||
Dec. 31, | Dec. 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Interest revenue | $ | 365,592 | $ | 255,767 | $ | 1,228,426 | $ | 972,751 | |||||||
Interest expense | 79,906 | 38,904 | 243,559 | 131,050 | |||||||||||
Net interest revenue | 285,686 | 216,863 | 984,867 | 841,701 | |||||||||||
Provision for credit losses | 9,000 | (7,000 | ) | 8,000 | (7,000 | ) | |||||||||
Net interest revenue after provision for credit losses | 276,686 | 223,863 | 976,867 | 848,701 | |||||||||||
Other operating revenue: | |||||||||||||||
Brokerage and trading revenue | 28,101 | 33,045 | 108,323 | 131,601 | |||||||||||
Transaction card revenue1 | 20,664 | 20,028 | 84,025 | 81,143 | |||||||||||
Fiduciary and asset management revenue | 43,665 | 41,773 | 184,703 | 162,889 | |||||||||||
Deposit service charges and fees | 29,393 | 27,679 | 112,153 | 112,079 | |||||||||||
Mortgage banking revenue | 21,880 | 24,362 | 97,787 | 104,719 | |||||||||||
Other revenue | 16,430 | 11,013 | 56,651 | 49,959 | |||||||||||
Total fees and commissions | 160,133 | 157,900 | 643,642 | 642,390 | |||||||||||
Other gains (losses), net | (8,331 | ) | 1,301 | (2,731 | ) | 11,213 | |||||||||
Gain (loss) on derivatives, net | 11,167 | (3,045 | ) | (422 | ) | 779 | |||||||||
Loss on fair value option securities, net | (282 | ) | (4,238 | ) | (25,572 | ) | (2,733 | ) | |||||||
Change in fair value of mortgage servicing rights | (24,233 | ) | 5,898 | 4,668 | 172 | ||||||||||
Gain (loss) on available for sale securities, net | (1,999 | ) | (488 | ) | (2,801 | ) | 4,428 | ||||||||
Total other operating revenue | 136,455 | 157,328 | 616,784 | 656,249 | |||||||||||
Other operating expense: | |||||||||||||||
Personnel | 160,706 | 145,329 | 583,131 | 573,408 | |||||||||||
Business promotion | 9,207 | 7,317 | 30,523 | 28,877 | |||||||||||
Charitable contributions to BOKF Foundation | 2,846 | 2,000 | 2,846 | 2,000 | |||||||||||
Professional fees and services | 20,712 | 15,344 | 59,099 | 51,067 | |||||||||||
Net occupancy and equipment | 27,780 | 22,403 | 97,981 | 86,477 | |||||||||||
Insurance | 4,248 | 6,555 | 23,318 | 19,653 | |||||||||||
Data processing and communications1 | 27,575 | 28,903 | 114,796 | 108,125 | |||||||||||
Printing, postage and supplies | 5,232 | 3,781 | 17,169 | 15,689 | |||||||||||
Net losses and operating expenses of repossessed assets | 2,581 | 340 | 17,052 | 9,687 | |||||||||||
Amortization of intangible assets | 5,331 | 1,430 | 9,620 | 6,779 | |||||||||||
Mortgage banking costs | 11,518 | 14,331 | 46,298 | 52,856 | |||||||||||
Other expense | 6,907 | 6,746 | 26,333 | 32,054 | |||||||||||
Total other operating expense | 284,643 | 254,479 | 1,028,166 | 986,672 | |||||||||||
Net income before taxes | 128,498 | 126,712 | 565,485 | 518,278 | |||||||||||
Federal and state income taxes | 20,121 | 54,347 | 119,061 | 182,593 | |||||||||||
Net income | 108,377 | 72,365 | 446,424 | 335,685 | |||||||||||
Net income (loss) attributable to non-controlling interests | (79 | ) | (127 | ) | 778 | 1,041 | |||||||||
Net income attributable to BOK Financial Corporation shareholders | $ | 108,456 | $ | 72,492 | $ | 445,646 | $ | 334,644 | |||||||
Average shares outstanding: | |||||||||||||||
Basic | 71,808,029 | 64,793,005 | 66,628,640 | 64,745,364 | |||||||||||
Diluted | 71,833,334 | 64,843,179 | 66,662,273 | 64,806,284 | |||||||||||
Net income per share: | |||||||||||||||
Basic | $ | 1.50 | $ | 1.11 | $ | 6.63 | $ | 5.11 | |||||||
Diluted | $ | 1.50 | $ | 1.11 | $ | 6.63 | $ | 5.11 | |||||||
1 | Non-GAAP measure to net interchange charges for periods prior to 2018 between transaction card revenue and data processing and communications expense. This measure has no effect on net income or earnings per share. |
10
FINANCIAL HIGHLIGHTS -- UNAUDITED BOK FINANCIAL CORPORATION (in thousands, except ratio and share data) | |||||||||||||||||||
Three Months Ended | |||||||||||||||||||
Dec. 31, 2018 | Sept. 30, 2018 | June 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | |||||||||||||||
Capital: | |||||||||||||||||||
Period-end shareholders' equity | $ | 4,432,109 | $ | 3,615,032 | $ | 3,553,431 | $ | 3,495,029 | $ | 3,495,367 | |||||||||
Risk weighted assets | $ | 30,741,989 | $ | 27,398,072 | $ | 27,004,559 | $ | 26,025,660 | $ | 25,733,711 | |||||||||
Risk-based capital ratios: | |||||||||||||||||||
Common equity tier 1 | 10.92 | % | 12.07 | % | 11.92 | % | 12.06 | % | 12.05 | % | |||||||||
Tier 1 | 10.92 | % | 12.07 | % | 11.92 | % | 12.06 | % | 12.05 | % | |||||||||
Total capital | 12.50 | % | 13.37 | % | 13.26 | % | 13.49 | % | 13.54 | % | |||||||||
Leverage ratio | 8.96 | % | 9.90 | % | 9.57 | % | 9.40 | % | 9.31 | % | |||||||||
Tangible common equity ratio1 | 8.82 | % | 9.55 | % | 9.21 | % | 9.18 | % | 9.50 | % | |||||||||
Common stock: | |||||||||||||||||||
Book value per share | $ | 61.45 | $ | 55.25 | $ | 54.30 | $ | 53.39 | $ | 53.45 | |||||||||
Tangible book value per share | 45.03 | 47.90 | 46.95 | 46.10 | 46.17 | ||||||||||||||
Market value per share: | |||||||||||||||||||
High | $ | 98.29 | $ | 105.22 | $ | 106.65 | $ | 107.00 | $ | 93.97 | |||||||||
Low | $ | 69.96 | $ | 92.40 | $ | 92.39 | $ | 89.82 | $ | 79.67 | |||||||||
Cash dividends paid | $ | 35,977 | $ | 32,591 | $ | 29,340 | $ | 29,342 | $ | 29,328 | |||||||||
Dividend payout ratio | 33.17 | % | 27.79 | % | 25.65 | % | 27.80 | % | 40.46 | % | |||||||||
Shares outstanding, net | 72,122,932 | 65,434,258 | 65,439,090 | 65,459,505 | 65,394,937 | ||||||||||||||
Stock buy-back program: | |||||||||||||||||||
Shares repurchased | 525,000 | — | 8,257 | 82,583 | 80,000 | ||||||||||||||
Amount | $ | 45,057 | $ | — | $ | 824 | $ | 7,584 | $ | 7,403 | |||||||||
Average price per share | $ | 85.82 | $ | — | $ | 99.84 | $ | 91.83 | $ | 92.54 | |||||||||
Performance ratios (quarter annualized): | |||||||||||||||||||
Return on average assets | 1.12 | % | 1.38 | % | 1.35 | % | 1.27 | % | 0.86 | % | |||||||||
Return on average equity | 9.93 | % | 12.95 | % | 13.14 | % | 12.39 | % | 8.24 | % | |||||||||
Net interest margin | 3.40 | % | 3.21 | % | 3.17 | % | 2.99 | % | 2.97 | % | |||||||||
Efficiency ratio3 | 63.24 | % | 61.59 | % | 61.76 | % | 64.93 | % | 66.07 | % | |||||||||
Reconciliation of non-GAAP measures: | |||||||||||||||||||
1 Tangible common equity ratio: | |||||||||||||||||||
Total shareholders' equity | $ | 4,432,109 | $ | 3,615,032 | $ | 3,553,431 | $ | 3,495,029 | $ | 3,495,367 | |||||||||
Less: Goodwill and intangible assets, net | 1,184,112 | 480,800 | 481,366 | 477,088 | 476,088 | ||||||||||||||
Tangible common equity | $ | 3,247,997 | $ | 3,134,232 | $ | 3,072,065 | $ | 3,017,941 | $ | 3,019,279 | |||||||||
Total assets | $ | 38,020,504 | $ | 33,289,864 | $ | 33,833,107 | $ | 33,361,492 | $ | 32,272,160 | |||||||||
Less: Goodwill and intangible assets, net | 1,184,112 | 480,800 | 481,366 | 477,088 | 476,088 | ||||||||||||||
Tangible assets | $ | 36,836,392 | $ | 32,809,064 | $ | 33,351,741 | $ | 32,884,404 | $ | 31,796,072 | |||||||||
Tangible common equity ratio | 8.82 | % | 9.55 | % | 9.21 | % | 9.18 | % | 9.50 | % | |||||||||
11
FINANCIAL HIGHLIGHTS -- UNAUDITED BOK FINANCIAL CORPORATION (in thousands, except ratio and share data) | |||||||||||||||||||
Three Months Ended | |||||||||||||||||||
Dec. 31, 2018 | Sept. 30, 2018 | June 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | |||||||||||||||
Other data: | |||||||||||||||||||
Fiduciary assets | $ | 44,841,339 | $ | 45,560,107 | $ | 46,531,900 | $ | 46,648,290 | $ | 48,761,477 | |||||||||
Tax equivalent interest | $ | 3,069 | $ | 1,894 | $ | 1,983 | $ | 2,010 | $ | 4,131 | |||||||||
Net unrealized loss on available for sale securities | $ | (95,271 | ) | $ | (216,793 | ) | $ | (180,602 | ) | $ | (148,247 | ) | $ | (47,497 | ) | ||||
Mortgage banking: | |||||||||||||||||||
Mortgage production revenue | $ | 5,073 | $ | 7,250 | $ | 9,915 | $ | 9,452 | $ | 7,786 | |||||||||
Mortgage loans funded for sale | $ | 497,353 | $ | 651,076 | $ | 773,910 | $ | 664,958 | $ | 840,080 | |||||||||
Add: current period-end outstanding commitments | 160,848 | 197,752 | 251,231 | 298,318 | 222,919 | ||||||||||||||
Less: prior period end outstanding commitments | 197,752 | 251,231 | 298,318 | 222,919 | 334,337 | ||||||||||||||
Total mortgage production volume | $ | 460,449 | $ | 597,597 | $ | 726,823 | $ | 740,357 | $ | 728,662 | |||||||||
Mortgage loan refinances to mortgage loans funded for sale | 23 | % | 23 | % | 22 | % | 42 | % | 47 | % | |||||||||
Gain on sale margin | 1.10 | % | 1.21 | % | 1.36 | % | 1.28 | % | 1.07 | % | |||||||||
Mortgage servicing revenue | $ | 16,807 | $ | 16,286 | $ | 16,431 | $ | 16,573 | $ | 16,576 | |||||||||
Average outstanding principal balance of mortgage loans serviced for others | 21,706,541 | 21,895,041 | 21,986,065 | 22,027,726 | 22,054,877 | ||||||||||||||
Average mortgage servicing revenue rates | 0.31 | % | 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 | $ | 12,162 | $ | (2,843 | ) | $ | (3,070 | ) | $ | (5,698 | ) | $ | (3,057 | ) | |||||
Loss on fair value option securities, net | (282 | ) | (4,385 | ) | (3,341 | ) | (17,564 | ) | (4,238 | ) | |||||||||
Gain (loss) on economic hedge of mortgage servicing rights | 11,880 | (7,228 | ) | (6,411 | ) | (23,262 | ) | (7,295 | ) | ||||||||||
Gain (loss) on changes in fair value of mortgage servicing rights | (24,233 | ) | 5,972 | 1,723 | 21,206 | 5,898 | |||||||||||||
Loss on changes in fair value of mortgage servicing rights, net of economic hedges, included in other operating revenue | (12,353 | ) | (1,256 | ) | (4,688 | ) | (2,056 | ) | (1,397 | ) | |||||||||
Net interest revenue on fair value option securities2 | 695 | 1,100 | 1,203 | 1,800 | 2,656 | ||||||||||||||
Total economic benefit (cost) of changes in the fair value of mortgage servicing rights, net of economic hedges | $ | (11,658 | ) | $ | (156 | ) | $ | (3,485 | ) | $ | (256 | ) | $ | 1,259 | |||||
2 | Actual interest earned on fair value option securities less internal transfer-priced cost of funds. |
3 | Periods prior to 2018 are shown on a comparable basis to net interchange charges between transaction card revenue and data processing and communications expense. |
12
QUARTERLY EARNINGS TREND -- UNAUDITED BOK FINANCIAL CORPORATION (in thousands, except ratio and per share data) | |||||||||||||||||||
Three Months Ended | |||||||||||||||||||
Dec. 31, 2018 | Sept. 30, 2018 | June 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | |||||||||||||||
Interest revenue | $ | 365,592 | $ | 303,247 | $ | 294,180 | $ | 265,407 | $ | 255,767 | |||||||||
Interest expense | 79,906 | 62,364 | 55,618 | 45,671 | 38,904 | ||||||||||||||
Net interest revenue | 285,686 | 240,883 | 238,562 | 219,736 | 216,863 | ||||||||||||||
Provision for credit losses | 9,000 | 4,000 | — | (5,000 | ) | (7,000 | ) | ||||||||||||
Net interest revenue after provision for credit losses | 276,686 | 236,883 | 238,562 | 224,736 | 223,863 | ||||||||||||||
Other operating revenue: | |||||||||||||||||||
Brokerage and trading revenue | 28,101 | 23,086 | 26,488 | 30,648 | 33,045 | ||||||||||||||
Transaction card revenue1 | 20,664 | 21,396 | 20,975 | 20,990 | 20,028 | ||||||||||||||
Fiduciary and asset management revenue | 43,665 | 57,514 | 41,692 | 41,832 | 41,773 | ||||||||||||||
Deposit service charges and fees | 29,393 | 27,765 | 27,834 | 27,161 | 27,679 | ||||||||||||||
Mortgage banking revenue | 21,880 | 23,536 | 26,346 | 26,025 | 24,362 | ||||||||||||||
Other revenue | 16,430 | 12,968 | 13,996 | 13,257 | 11,013 | ||||||||||||||
Total fees and commissions | 160,133 | 166,265 | 157,331 | 159,913 | 157,900 | ||||||||||||||
Other gains (losses), net | (8,331 | ) | 2,686 | 4,505 | (1,591 | ) | 1,301 | ||||||||||||
Gain (loss) on derivatives, net | 11,167 | (2,847 | ) | (3,057 | ) | (5,685 | ) | (3,045 | ) | ||||||||||
Loss on fair value option securities, net | (282 | ) | (4,385 | ) | (3,341 | ) | (17,564 | ) | (4,238 | ) | |||||||||
Change in fair value of mortgage servicing rights | (24,233 | ) | 5,972 | 1,723 | 21,206 | 5,898 | |||||||||||||
Gain (loss) on available for sale securities, net | (1,999 | ) | 250 | (762 | ) | (290 | ) | (488 | ) | ||||||||||
Total other operating revenue | 136,455 | 167,941 | 156,399 | 155,989 | 157,328 | ||||||||||||||
Other operating expense: | |||||||||||||||||||
Personnel | 160,706 | 143,531 | 138,947 | 139,947 | 145,329 | ||||||||||||||
Business promotion | 9,207 | 7,620 | 7,686 | 6,010 | 7,317 | ||||||||||||||
Charitable contributions to BOKF Foundation | 2,846 | — | — | — | 2,000 | ||||||||||||||
Professional fees and services | 20,712 | 13,209 | 14,978 | 10,200 | 15,344 | ||||||||||||||
Net occupancy and equipment | 27,780 | 23,394 | 22,761 | 24,046 | 22,403 | ||||||||||||||
Insurance | 4,248 | 6,232 | 6,245 | 6,593 | 6,555 | ||||||||||||||
Data processing and communications1 | 27,575 | 31,665 | 27,739 | 27,817 | 28,903 | ||||||||||||||
Printing, postage and supplies | 5,232 | 3,837 | 4,011 | 4,089 | 3,781 | ||||||||||||||
Net losses (gains) and operating expenses of repossessed assets | 2,581 | 4,044 | 2,722 | 7,705 | 340 | ||||||||||||||
Amortization of intangible assets | 5,331 | 1,603 | 1,386 | 1,300 | 1,430 | ||||||||||||||
Mortgage banking costs | 11,518 | 11,741 | 12,890 | 10,149 | 14,331 | ||||||||||||||
Other expense | 6,907 | 5,741 | 7,111 | 6,574 | 6,746 | ||||||||||||||
Total other operating expense | 284,643 | 252,617 | 246,476 | 244,430 | 254,479 | ||||||||||||||
Net income before taxes | 128,498 | 152,207 | 148,485 | 136,295 | 126,712 | ||||||||||||||
Federal and state income taxes | 20,121 | 34,662 | 33,330 | 30,948 | 54,347 | ||||||||||||||
Net income | 108,377 | 117,545 | 115,155 | 105,347 | 72,365 | ||||||||||||||
Net income (loss) attributable to non-controlling interests | (79 | ) | 289 | 783 | (215 | ) | (127 | ) | |||||||||||
Net income attributable to BOK Financial Corporation shareholders | $ | 108,456 | $ | 117,256 | $ | 114,372 | $ | 105,562 | $ | 72,492 | |||||||||
Average shares outstanding: | |||||||||||||||||||
Basic | 71,808,029 | 64,901,095 | 64,901,975 | 64,847,334 | 64,793,005 | ||||||||||||||
Diluted | 71,833,334 | 64,934,351 | 64,937,226 | 64,888,033 | 64,843,179 | ||||||||||||||
Net income per share: | |||||||||||||||||||
Basic | $ | 1.50 | $ | 1.79 | $ | 1.75 | $ | 1.61 | $ | 1.11 | |||||||||
Diluted | $ | 1.50 | $ | 1.79 | $ | 1.75 | $ | 1.61 | $ | 1.11 | |||||||||
1 | Non-GAAP measure to net interchange charges for periods prior to 2018 between transaction card revenue and data processing and communications expense. This measure has no effect on net income or earnings per share. |
13
LOANS TREND -- UNAUDITED BOK FINANCIAL CORPORATION (In thousands) | ||||||||||||||||||||
Dec. 31, 2018 | Sept. 30, 2018 | June 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | ||||||||||||||||
Commercial: | ||||||||||||||||||||
Energy | $ | 3,590,333 | $ | 3,294,867 | $ | 3,147,219 | $ | 2,969,618 | $ | 2,930,156 | ||||||||||
Services | 3,252,146 | 2,597,711 | 2,510,445 | 2,481,754 | 2,522,025 | |||||||||||||||
Healthcare | 2,733,537 | 2,370,455 | 2,285,732 | 2,289,779 | 2,243,487 | |||||||||||||||
Wholesale/retail | 1,621,158 | 1,650,729 | 1,699,554 | 1,531,576 | 1,471,256 | |||||||||||||||
Public finance | 876,336 | 491,597 | 507,629 | 522,274 | 541,775 | |||||||||||||||
Manufacturing | 730,521 | 660,582 | 647,816 | 559,695 | 496,774 | |||||||||||||||
Other commercial and industrial | 832,047 | 510,160 | 550,644 | 564,971 | 528,502 | |||||||||||||||
Total commercial | 13,636,078 | 11,576,101 | 11,349,039 | 10,919,667 | 10,733,975 | |||||||||||||||
Commercial real estate: | ||||||||||||||||||||
Multifamily | 1,288,065 | 1,120,166 | 1,056,984 | 1,008,903 | 980,017 | |||||||||||||||
Office | 1,072,920 | 824,829 | 820,127 | 737,144 | 831,770 | |||||||||||||||
Retail | 919,082 | 759,423 | 768,024 | 750,396 | 691,532 | |||||||||||||||
Industrial | 778,106 | 696,774 | 653,384 | 613,608 | 573,014 | |||||||||||||||
Residential construction and land development | 148,584 | 101,872 | 118,999 | 117,458 | 117,245 | |||||||||||||||
Other commercial real estate | 558,056 | 301,611 | 294,702 | 279,273 | 286,409 | |||||||||||||||
Total commercial real estate | 4,764,813 | 3,804,675 | 3,712,220 | 3,506,782 | 3,479,987 | |||||||||||||||
Residential mortgage: | ||||||||||||||||||||
Permanent mortgage | 1,320,165 | 1,094,926 | 1,068,412 | 1,047,785 | 1,043,435 | |||||||||||||||
Permanent mortgages guaranteed by U.S. government agencies | 190,866 | 180,718 | 169,653 | 177,880 | 197,506 | |||||||||||||||
Home equity | 719,002 | 696,098 | 704,185 | 720,104 | 732,745 | |||||||||||||||
Total residential mortgage | 2,230,033 | 1,971,742 | 1,942,250 | 1,945,769 | 1,973,686 | |||||||||||||||
Personal | 1,025,806 | 996,941 | 1,000,187 | 965,632 | 965,776 | |||||||||||||||
Total | $ | 21,656,730 | $ | 18,349,459 | $ | 18,003,696 | $ | 17,337,850 | $ | 17,153,424 | ||||||||||
14
LOANS BY PRINCIPAL MARKET AREA -- UNAUDITED BOK FINANCIAL CORPORATION (in thousands) | |||||||||||||||||||
Dec. 31, 2018 | Sept. 30, 2018 | June 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | |||||||||||||||
Oklahoma: | |||||||||||||||||||
Commercial | $ | 3,491,117 | $ | 3,609,109 | $ | 3,465,407 | $ | 3,265,013 | $ | 3,238,720 | |||||||||
Commercial real estate | 700,756 | 651,315 | 662,665 | 668,031 | 682,037 | ||||||||||||||
Residential mortgage | 1,440,566 | 1,429,843 | 1,403,658 | 1,419,281 | 1,435,432 | ||||||||||||||
Personal | 375,543 | 376,201 | 362,846 | 353,128 | 342,212 | ||||||||||||||
Total Oklahoma | 6,007,982 | 6,066,468 | 5,894,576 | 5,705,453 | 5,698,401 | ||||||||||||||
Texas: | |||||||||||||||||||
Commercial | 5,438,133 | 5,115,646 | 4,922,451 | 4,715,841 | 4,520,401 | ||||||||||||||
Commercial real estate | 1,341,783 | 1,354,679 | 1,336,101 | 1,254,421 | 1,261,864 | ||||||||||||||
Residential mortgage | 266,805 | 253,265 | 243,400 | 229,761 | 233,675 | ||||||||||||||
Personal | 394,743 | 381,452 | 394,021 | 363,608 | 375,084 | ||||||||||||||
Total Texas | 7,441,464 | 7,105,042 | 6,895,973 | 6,563,631 | 6,391,024 | ||||||||||||||
New Mexico: | |||||||||||||||||||
Commercial | 340,489 | 325,048 | 305,167 | 315,701 | 343,296 | ||||||||||||||
Commercial real estate | 383,670 | 392,494 | 386,878 | 348,485 | 341,282 | ||||||||||||||
Residential mortgage | 87,346 | 88,110 | 90,581 | 93,490 | 98,018 | ||||||||||||||
Personal | 10,662 | 11,659 | 11,107 | 11,667 | 11,721 | ||||||||||||||
Total New Mexico | 822,167 | 817,311 | 793,733 | 769,343 | 794,317 | ||||||||||||||
Arkansas: | |||||||||||||||||||
Commercial | 111,338 | 102,237 | 93,217 | 94,430 | 95,644 | ||||||||||||||
Commercial real estate | 141,898 | 106,701 | 90,807 | 88,700 | 87,393 | ||||||||||||||
Residential mortgage | 7,537 | 7,278 | 6,927 | 7,033 | 6,596 | ||||||||||||||
Personal | 11,955 | 12,126 | 12,331 | 9,916 | 9,992 | ||||||||||||||
Total Arkansas | 272,728 | 228,342 | 203,282 | 200,079 | 199,625 | ||||||||||||||
Colorado: | |||||||||||||||||||
Commercial | 2,275,069 | 1,132,500 | 1,165,721 | 1,180,655 | 1,130,714 | ||||||||||||||
Commercial real estate | 963,575 | 354,543 | 267,065 | 210,801 | 174,201 | ||||||||||||||
Residential mortgage | 251,849 | 68,694 | 64,839 | 64,530 | 63,350 | ||||||||||||||
Personal | 72,916 | 56,999 | 60,504 | 63,118 | 63,115 | ||||||||||||||
Total Colorado | 3,563,409 | 1,612,736 | 1,558,129 | 1,519,104 | 1,431,380 | ||||||||||||||
Arizona: | |||||||||||||||||||
Commercial | 1,320,139 | 621,658 | 681,852 | 624,106 | 687,792 | ||||||||||||||
Commercial real estate | 889,903 | 666,562 | 710,784 | 672,319 | 660,094 | ||||||||||||||
Residential mortgage | 97,959 | 44,659 | 47,010 | 39,227 | 41,771 | ||||||||||||||
Personal | 68,546 | 67,280 | 65,541 | 57,023 | 57,140 | ||||||||||||||
Total Arizona | 2,376,547 | 1,400,159 | 1,505,187 | 1,392,675 | 1,446,797 | ||||||||||||||
Kansas/Missouri: | |||||||||||||||||||
Commercial | 659,793 | 669,903 | 715,224 | 723,921 | 717,408 | ||||||||||||||
Commercial real estate | 343,228 | 278,381 | 257,920 | 264,025 | 273,116 | ||||||||||||||
Residential mortgage | 77,971 | 79,893 | 85,835 | 92,447 | 94,844 | ||||||||||||||
Personal | 91,441 | 91,224 | 93,837 | 107,172 | 106,512 | ||||||||||||||
Total Kansas/Missouri | 1,172,433 | 1,119,401 | 1,152,816 | 1,187,565 | 1,191,880 | ||||||||||||||
TOTAL BOK FINANCIAL | $ | 21,656,730 | $ | 18,349,459 | $ | 18,003,696 | $ | 17,337,850 | $ | 17,153,424 | |||||||||
Loans attributed to a geographical region may not always represent the location of the borrower or the collateral.
15
DEPOSITS BY PRINCIPAL MARKET AREA -- UNAUDITED BOK FINANCIAL CORPORATION (in thousands) | |||||||||||||||||||
Dec. 31, 2018 | Sept. 30, 2018 | June 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | |||||||||||||||
Oklahoma: | |||||||||||||||||||
Demand | $ | 3,610,593 | $ | 3,564,307 | $ | 3,867,933 | $ | 4,201,842 | $ | 3,885,008 | |||||||||
Interest-bearing: | |||||||||||||||||||
Transaction | 6,445,831 | 6,010,972 | 5,968,460 | 6,051,302 | 5,901,293 | ||||||||||||||
Savings | 288,210 | 288,080 | 289,202 | 289,351 | 265,870 | ||||||||||||||
Time | 1,118,643 | 1,128,810 | 1,207,471 | 1,203,534 | 1,092,133 | ||||||||||||||
Total interest-bearing | 7,852,684 | 7,427,862 | 7,465,133 | 7,544,187 | 7,259,296 | ||||||||||||||
Total Oklahoma | 11,463,277 | 10,992,169 | 11,333,066 | 11,746,029 | 11,144,304 | ||||||||||||||
Texas: | |||||||||||||||||||
Demand | 3,289,659 | 3,353,248 | 3,317,656 | 3,015,869 | 3,239,098 | ||||||||||||||
Interest-bearing: | |||||||||||||||||||
Transaction | 2,294,740 | 2,181,382 | 2,168,488 | 2,208,480 | 2,397,071 | ||||||||||||||
Savings | 99,624 | 97,909 | 97,809 | 98,852 | 93,620 | ||||||||||||||
Time | 423,880 | 453,119 | 445,500 | 475,967 | 502,879 | ||||||||||||||
Total interest-bearing | 2,818,244 | 2,732,410 | 2,711,797 | 2,783,299 | 2,993,570 | ||||||||||||||
Total Texas | 6,107,903 | 6,085,658 | 6,029,453 | 5,799,168 | 6,232,668 | ||||||||||||||
New Mexico: | |||||||||||||||||||
Demand | 691,692 | 722,188 | 770,974 | 695,060 | 663,353 | ||||||||||||||
Interest-bearing: | |||||||||||||||||||
Transaction | 571,347 | 593,760 | 586,593 | 555,414 | 552,393 | ||||||||||||||
Savings | 58,194 | 57,794 | 59,415 | 60,596 | 55,647 | ||||||||||||||
Time | 224,515 | 221,513 | 212,689 | 216,306 | 216,743 | ||||||||||||||
Total interest-bearing | 854,056 | 873,067 | 858,697 | 832,316 | 824,783 | ||||||||||||||
Total New Mexico | 1,545,748 | 1,595,255 | 1,629,671 | 1,527,376 | 1,488,136 | ||||||||||||||
Arkansas: | |||||||||||||||||||
Demand | 36,800 | 36,579 | 39,896 | 35,291 | 30,384 | ||||||||||||||
Interest-bearing: | |||||||||||||||||||
Transaction | 91,593 | 128,001 | 143,298 | 94,206 | 85,095 | ||||||||||||||
Savings | 1,632 | 1,826 | 1,885 | 1,960 | 1,881 | ||||||||||||||
Time | 8,726 | 10,214 | 10,771 | 11,878 | 14,045 | ||||||||||||||
Total interest-bearing | 101,951 | 140,041 | 155,954 | 108,044 | 101,021 | ||||||||||||||
Total Arkansas | 138,751 | 176,620 | 195,850 | 143,335 | 131,405 | ||||||||||||||
Colorado: | |||||||||||||||||||
Demand | 1,658,473 | 593,442 | 529,912 | 521,963 | 633,714 | ||||||||||||||
Interest-bearing: | |||||||||||||||||||
Transaction | 1,899,203 | 622,520 | 701,362 | 687,785 | 657,629 | ||||||||||||||
Savings | 57,289 | 40,308 | 38,176 | 37,232 | 35,223 | ||||||||||||||
Time | 274,877 | 217,628 | 208,049 | 215,330 | 224,962 | ||||||||||||||
Total interest-bearing | 2,231,369 | 880,456 | 947,587 | 940,347 | 917,814 | ||||||||||||||
Total Colorado | 3,889,842 | 1,473,898 | 1,477,499 | 1,462,310 | 1,551,528 | ||||||||||||||
16
DEPOSITS BY PRINCIPAL MARKET AREA -- UNAUDITED BOK FINANCIAL CORPORATION (in thousands) | |||||||||||||||||||
Dec. 31, 2018 | Sept. 30, 2018 | June 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | |||||||||||||||
Arizona: | |||||||||||||||||||
Demand | 709,176 | 370,299 | 387,952 | 330,196 | 334,701 | ||||||||||||||
Interest-bearing: | |||||||||||||||||||
Transaction | 575,996 | 130,837 | 194,353 | 248,337 | 274,846 | ||||||||||||||
Savings | 10,545 | 3,559 | 3,935 | 4,116 | 3,343 | ||||||||||||||
Time | 43,051 | 23,927 | 22,447 | 21,009 | 20,394 | ||||||||||||||
Total interest-bearing | 629,592 | 158,323 | 220,735 | 273,462 | 298,583 | ||||||||||||||
Total Arizona | 1,338,768 | 528,622 | 608,687 | 603,658 | 633,284 | ||||||||||||||
Kansas/Missouri: | |||||||||||||||||||
Demand | 418,199 | 423,560 | 459,636 | 505,802 | 457,080 | ||||||||||||||
Interest-bearing: | |||||||||||||||||||
Transaction | 327,866 | 322,747 | 401,545 | 381,447 | 382,066 | ||||||||||||||
Savings | 13,721 | 13,125 | 13,052 | 13,845 | 13,574 | ||||||||||||||
Time | 19,688 | 20,635 | 20,805 | 22,230 | 27,260 | ||||||||||||||
Total interest-bearing | 361,275 | 356,507 | 435,402 | 417,522 | 422,900 | ||||||||||||||
Total Kansas/Missouri | 779,474 | 780,067 | 895,038 | 923,324 | 879,980 | ||||||||||||||
TOTAL BOK FINANCIAL | $ | 25,263,763 | $ | 21,632,289 | $ | 22,169,264 | $ | 22,205,200 | $ | 22,061,305 | |||||||||
17
NET INTEREST MARGIN TREND -- UNAUDITED BOK FINANCIAL CORPORATION | ||||||||||||||
Three Months Ended | ||||||||||||||
Dec. 31, 2018 | Sept. 30, 2018 | June 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | ||||||||||
TAX-EQUIVALENT ASSETS YIELDS | ||||||||||||||
Interest-bearing cash and cash equivalents | 2.23 | % | 1.98 | % | 1.86 | % | 1.57 | % | 1.27 | % | ||||
Trading securities | 4.10 | % | 3.98 | % | 3.63 | % | 3.40 | % | 3.38 | % | ||||
Investment securities | 4.26 | % | 4.06 | % | 3.95 | % | 3.78 | % | 3.98 | % | ||||
Available for sale securities | 2.51 | % | 2.37 | % | 2.30 | % | 2.23 | % | 2.21 | % | ||||
Fair value option securities | 3.56 | % | 3.25 | % | 3.16 | % | 2.95 | % | 2.90 | % | ||||
Restricted equity securities | 6.39 | % | 6.36 | % | 6.21 | % | 5.86 | % | 5.87 | % | ||||
Residential mortgage loans held for sale | 4.00 | % | 4.27 | % | 4.28 | % | 3.71 | % | 3.72 | % | ||||
Loans | 5.09 | % | 4.80 | % | 4.80 | % | 4.45 | % | 4.29 | % | ||||
Allowance for loan losses | ||||||||||||||
Loans, net of allowance | 5.14 | % | 4.86 | % | 4.86 | % | 4.51 | % | 4.35 | % | ||||
Total tax-equivalent yield on earning assets | 4.33 | % | 4.04 | % | 3.91 | % | 3.61 | % | 3.49 | % | ||||
COST OF INTEREST-BEARING LIABILITIES | ||||||||||||||
Interest-bearing deposits: | ||||||||||||||
Interest-bearing transaction | 0.79 | % | 0.67 | % | 0.55 | % | 0.45 | % | 0.35 | % | ||||
Savings | 0.11 | % | 0.09 | % | 0.08 | % | 0.07 | % | 0.07 | % | ||||
Time | 1.54 | % | 1.40 | % | 1.29 | % | 1.25 | % | 1.17 | % | ||||
Total interest-bearing deposits | 0.87 | % | 0.77 | % | 0.66 | % | 0.57 | % | 0.48 | % | ||||
Funds purchased and repurchase agreements | 1.36 | % | 1.25 | % | 0.53 | % | 0.40 | % | 0.28 | % | ||||
Other borrowings | 2.51 | % | 2.20 | % | 1.96 | % | 1.60 | % | 1.36 | % | ||||
Subordinated debt | 5.38 | % | 5.55 | % | 5.67 | % | 5.61 | % | 5.55 | % | ||||
Total cost of interest-bearing liabilities | 1.42 | % | 1.25 | % | 1.11 | % | 0.93 | % | 0.79 | % | ||||
Tax-equivalent net interest revenue spread | 2.91 | % | 2.79 | % | 2.80 | % | 2.68 | % | 2.70 | % | ||||
Effect of noninterest-bearing funding sources and other | 0.49 | % | 0.42 | % | 0.37 | % | 0.31 | % | 0.27 | % | ||||
Tax-equivalent net interest margin | 3.40 | % | 3.21 | % | 3.17 | % | 2.99 | % | 2.97 | % | ||||
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.
18
CREDIT QUALITY INDICATORS -- UNAUDITED BOK FINANCIAL CORPORATION (in thousands, except ratios) | |||||||||||||||||||
Three Months Ended | |||||||||||||||||||
Dec. 31, 2018 | Sept. 30, 2018 | June 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | |||||||||||||||
Nonperforming assets: | |||||||||||||||||||
Nonaccruing loans: | |||||||||||||||||||
Commercial | $ | 99,841 | $ | 109,490 | $ | 120,978 | $ | 131,460 | $ | 137,303 | |||||||||
Commercial real estate | 21,621 | 1,316 | 1,996 | 2,470 | 2,855 | ||||||||||||||
Residential mortgage | 41,555 | 41,917 | 42,343 | 45,794 | 47,447 | ||||||||||||||
Personal | 230 | 269 | 340 | 340 | 269 | ||||||||||||||
Total nonaccruing loans | 163,247 | 152,992 | 165,657 | 180,064 | 187,874 | ||||||||||||||
Accruing renegotiated loans guaranteed by U.S. government agencies | 86,428 | 83,347 | 75,374 | 74,418 | 73,994 | ||||||||||||||
Real estate and other repossessed assets | 17,487 | 24,515 | 27,891 | 23,652 | 28,437 | ||||||||||||||
Total nonperforming assets | $ | 267,162 | $ | 260,854 | $ | 268,922 | $ | 278,134 | $ | 290,305 | |||||||||
Total nonperforming assets excluding those guaranteed by U.S. government agencies | $ | 173,602 | $ | 169,717 | $ | 185,981 | $ | 194,833 | $ | 207,132 | |||||||||
Nonaccruing loans by loan class: | |||||||||||||||||||
Commercial: | |||||||||||||||||||
Energy | $ | 47,494 | $ | 54,033 | $ | 65,597 | $ | 89,942 | $ | 92,284 | |||||||||
Services | 8,567 | 4,097 | 4,377 | 2,109 | 2,620 | ||||||||||||||
Healthcare | 16,538 | 15,704 | 16,125 | 15,342 | 14,765 | ||||||||||||||
Manufacturing | 8,919 | 9,202 | 2,991 | 3,002 | 5,962 | ||||||||||||||
Wholesale/retail | 1,316 | 9,249 | 14,095 | 2,564 | 2,574 | ||||||||||||||
Public finance | — | — | — | — | — | ||||||||||||||
Other commercial and industrial | 17,007 | 17,205 | 17,793 | 18,501 | 19,098 | ||||||||||||||
Total commercial | 99,841 | 109,490 | 120,978 | 131,460 | 137,303 | ||||||||||||||
Commercial real estate: | |||||||||||||||||||
Retail | 20,279 | 777 | 1,068 | 264 | 276 | ||||||||||||||
Residential construction and land development | 350 | 350 | 350 | 1,613 | 1,832 | ||||||||||||||
Multifamily | 301 | — | — | — | — | ||||||||||||||
Office | — | — | 275 | 275 | 275 | ||||||||||||||
Industrial | — | — | — | — | — | ||||||||||||||
Other commercial real estate | 691 | 189 | 303 | 318 | 472 | ||||||||||||||
Total commercial real estate | 21,621 | 1,316 | 1,996 | 2,470 | 2,855 | ||||||||||||||
Residential mortgage: | |||||||||||||||||||
Permanent mortgage | 23,951 | 22,855 | 23,105 | 24,578 | 25,193 | ||||||||||||||
Permanent mortgage guaranteed by U.S. government agencies | 7,132 | 7,790 | 7,567 | 8,883 | 9,179 | ||||||||||||||
Home equity | 10,472 | 11,272 | 11,671 | 12,333 | 13,075 | ||||||||||||||
Total residential mortgage | 41,555 | 41,917 | 42,343 | 45,794 | 47,447 | ||||||||||||||
Personal | 230 | 269 | 340 | 340 | 269 | ||||||||||||||
Total nonaccruing loans | $ | 163,247 | $ | 152,992 | $ | 165,657 | $ | 180,064 | $ | 187,874 | |||||||||
19
CREDIT QUALITY INDICATORS -- UNAUDITED BOK FINANCIAL CORPORATION (in thousands, except ratios) | |||||||||||||||||||
Three Months Ended | |||||||||||||||||||
Dec. 31, 2018 | Sept. 30, 2018 | June 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | |||||||||||||||
Performing loans 90 days past due1 | $ | 1,338 | $ | 518 | $ | 879 | $ | 90 | $ | 633 | |||||||||
Gross charge-offs | $ | 14,515 | $ | 11,073 | $ | 15,105 | $ | 2,890 | $ | 14,749 | |||||||||
Recoveries | (2,168 | ) | (2,092 | ) | (4,578 | ) | (1,576 | ) | (3,061 | ) | |||||||||
Net charge-offs | $ | 12,347 | $ | 8,981 | $ | 10,527 | $ | 1,314 | $ | 11,688 | |||||||||
Provision for credit losses | $ | 9,000 | $ | 4,000 | $ | — | $ | (5,000 | ) | $ | (7,000 | ) | |||||||
Allowance for loan losses to period end loans | 0.96 | % | 1.15 | % | 1.19 | % | 1.29 | % | 1.34 | % | |||||||||
Combined allowance for credit losses to period end loans | 0.97 | % | 1.16 | % | 1.21 | % | 1.32 | % | 1.37 | % | |||||||||
Nonperforming assets to period end loans and repossessed assets | 1.23 | % | 1.42 | % | 1.49 | % | 1.60 | % | 1.69 | % | |||||||||
Net charge-offs (annualized) to average loans | 0.23 | % | 0.20 | % | 0.24 | % | 0.03 | % | 0.27 | % | |||||||||
Allowance for loan losses to nonaccruing loans1 | 132.89 | % | 145.02 | % | 136.09 | % | 130.84 | % | 129.09 | % | |||||||||
Combined allowance for credit losses to nonaccruing loans1 | 134.03 | % | 146.41 | % | 137.63 | % | 133.25 | % | 131.18 | % | |||||||||
1 | Excludes residential mortgage loans guaranteed by agencies of the U.S. government. |
20
SEGMENTS -- UNAUDITED BOK FINANCIAL CORPORATION (in thousands, except ratios) | ||||||||||||||||||
Three Months Ended | Change | |||||||||||||||||
Commercial Banking | Dec. 31, 2018 | Sept. 30, 2018 | Dec. 31, 2017 | 4Q18 vs 3Q18 | 4Q18 vs 4Q17 | |||||||||||||
Net interest revenue | $ | 148,359 | $ | 145,147 | $ | 132,185 | 2.2 | % | 12.2 | % | ||||||||
Fees and commissions revenue | 39,667 | 39,391 | 41,317 | 0.7 | % | (4.0 | )% | |||||||||||
Other operating expense | 49,725 | 49,135 | 48,849 | 1.2 | % | 1.8 | % | |||||||||||
Corporate expense allocations | 11,015 | 11,028 | 7,846 | (0.1 | )% | 40.4 | % | |||||||||||
Net income | 84,588 | 84,965 | 62,138 | (0.4 | )% | 36.1 | % | |||||||||||
Average assets | 19,341,927 | 18,499,979 | 17,708,194 | 4.6 | % | 9.2 | % | |||||||||||
Average loans | 15,628,731 | 15,321,600 | 14,385,927 | 2.0 | % | 8.6 | % | |||||||||||
Average deposits | 8,393,016 | 8,633,204 | 8,799,166 | (2.8 | )% | (4.6 | )% | |||||||||||
Consumer Banking | ||||||||||||||||||
Net interest revenue | $ | 41,364 | $ | 39,044 | $ | 37,044 | 5.9 | % | 11.7 | % | ||||||||
Fees and commissions revenue | 42,840 | 44,040 | 44,085 | (2.7 | )% | (2.8 | )% | |||||||||||
Other operating expense | 51,240 | 53,186 | 57,542 | (3.7 | )% | (11.0 | )% | |||||||||||
Corporate expense allocations | 15,939 | 15,863 | 16,743 | 0.5 | % | (4.8 | )% | |||||||||||
Net income | 2,741 | 8,365 | 2,500 | (67.2 | )% | 9.6 | % | |||||||||||
Average assets | 8,071,978 | 8,323,542 | 8,766,423 | (3.0 | )% | (7.9 | )% | |||||||||||
Average loans | 1,745,642 | 1,719,679 | 1,741,148 | 1.5 | % | 0.3 | % | |||||||||||
Average deposits | 6,542,188 | 6,580,395 | 6,622,149 | (0.6 | )% | (1.2 | )% | |||||||||||
Wealth Management | ||||||||||||||||||
Net interest revenue | $ | 29,292 | $ | 29,095 | $ | 21,454 | 0.7 | % | 36.5 | % | ||||||||
Fees and commissions revenue | 67,607 | 83,562 | 76,095 | (19.1 | )% | (11.2 | )% | |||||||||||
Other operating expense | 62,410 | 62,255 | 63,809 | 0.2 | % | (2.2 | )% | |||||||||||
Corporate expense allocations | 10,967 | 11,126 | 10,125 | (1.4 | )% | 8.3 | % | |||||||||||
Net income | 17,472 | 29,105 | 14,528 | (40.0 | )% | 20.3 | % | |||||||||||
Average assets | 8,687,234 | 8,498,363 | 7,373,081 | 2.2 | % | 17.8 | % | |||||||||||
Average loans | 1,448,805 | 1,439,774 | 1,352,694 | 0.6 | % | 7.1 | % | |||||||||||
Average deposits | 5,483,455 | 5,492,048 | 5,457,566 | (0.2 | )% | 0.5 | % | |||||||||||
Fiduciary assets | 44,841,339 | 45,560,107 | 48,761,477 | (1.6 | )% | (8.0 | )% | |||||||||||
Assets under management or administration | 76,279,777 | 77,628,015 | 81,827,797 | (1.7 | )% | (6.8 | )% | |||||||||||
21