TULSA, Okla., Oct. 26, 2016 (GLOBE NEWSWIRE) -- BOK Financial Corporation (NASDAQ:BOKF) reported net income of $74.3 million or $1.13 per diluted share for the third quarter of 2016. Net income was $65.8 million or $1.00 per diluted share for the second quarter of 2016 and $74.9 million or $1.09 per diluted share for the third quarter of 2015.
Steven G. Bradshaw, president and chief executive officer of BOK Financial, stated, “Earnings were strong in the third quarter due to record revenue combined with lower credit costs as the commodities market continues to normalize. While loan growth was a bit softer than expected, this was in large part due to one significant paydown in the energy portfolio, and we continue to forecast mid-single-digit annual loan growth for the foreseeable future.”
Bradshaw continued, “In 2016 we have seen elevated expenses from a variety of sources including foreclosure and loss mitigation in mortgage, the settlement of litigation issues, and continued investment in systems and technology. While we have tactically reduced expenses and headcount over the past few years, in October we took further decisive action to align expenses with expected revenue growth. By reducing contract labor, not backfilling some open positions, and right-sizing our workforce, we believe we will reduce annual expenses by approximately $20 million in 2017.”
Third Quarter 2016 Highlights
- Net interest revenue totaled $187.8 million for the third quarter of 2016, up $5.2 million over the second quarter of 2016. Net interest margin was 2.64 percent for the third quarter of 2016, compared to 2.63 percent for the second quarter of 2016. Average earning assets increased $260 million during the third quarter of 2016, including a $185 million increase in average loan balances.
- Fees and commissions revenue totaled $185.3 million for the third quarter of 2016, an increase of $1.8 million over the prior quarter. Mortgage banking revenue grew by $4.3 million and deposit service charges and fees increased $1.1 million. Brokerage and trading revenue decreased $1.5 million, transaction card revenue decreased $1.0 million and fiduciary and asset management revenue decreased $740 thousand.
- Operating expense was $262.1 million for the third quarter, an increase of $7.4 million over the previous quarter, primarily due to a $5.0 million accrual related to a legal settlement during the quarter. All other non-personnel expenses increased $1.7 million. Deposit insurance expense was up $2.3 million, offset by a $2.5 million decrease in net losses and operating expenses of repossessed assets compared to the prior quarter. Personnel expense increased $695 thousand.
- Income tax expense was reduced by $2.6 million during the third quarter of 2016 due to the expiration of the statute of limitations on uncertain tax positions and the annual adjustment of the previous year's current income tax liability to amounts on filed tax returns for 2015. The effective tax rate was 29.8 percent for the third quarter of 2016. Excluding these adjustments the effective tax rate would have been 32.3 percent for the third quarter, up from 31.5 percent for the second quarter of 2016.
- A $10.0 million provision for credit losses was recorded in the third quarter of 2016 compared to a $20.0 million provision in the second quarter of 2016. The decrease in the provision for credit losses was due to improving credit metric trends, largely driven by energy price stability. Net loans charged off totaled $6.1 million in the third quarter of 2016, compared to $7.5 million in the previous quarter.
- The combined allowance for credit losses totaled $256 million or 1.56 percent of outstanding loans at September 30, 2016 compared to $252 million or 1.54 percent of outstanding loans at June 30, 2016. The portion of the combined allowance attributed to the energy portfolio totaled 3.67 percent of outstanding energy loans at September 30, 2016, an increase from 3.58 percent of outstanding energy loans at June 30, 2016.
- Nonperforming assets that are not guaranteed by U.S. government agencies totaled $253 million or 1.55 percent of outstanding loans and repossessed assets (excluding those guaranteed by U.S. government agencies) at September 30, 2016 and $251 million or 1.55 percent of outstanding loans and repossessed assets (excluding those guaranteed by U.S. government agencies) at June 30, 2016. Nonaccruing energy loans decreased $25 million during the third quarter, partially offset by a $21 million increase in nonaccruing other commercial and industrial sector loans.
- Average loans increased by $185 million over the previous quarter. Commercial real estate loans grew by $239 million, partially offset by a $156 million decrease in average commercial loan balances. Period-end outstanding loan balances increased $58 million to $16.5 billion at September 30, 2016.
- Average deposits increased $297 million over the previous quarter primarily due to growth in demand deposit balances of $335 million. Period-end deposits were $21.1 billion at September 30, 2016, an increase of $336 million from June 30, 2016.
- The common equity Tier 1 capital ratio at September 30, 2016 was 11.99 percent. Other regulatory capital ratios were Tier 1 capital ratio, 11.99 percent, total capital ratio, 13.65 percent and leverage ratio, 9.06 percent. At June 30, 2016, the common equity Tier 1 capital ratio was 11.86 percent, the Tier 1 capital ratio was 11.86 percent, total capital ratio was 13.51 percent, and leverage ratio was 9.06 percent.
- The company paid a regular quarterly cash dividend of $28 million or $0.43 per common share during the third quarter of 2016. On October 25, 2016, the board of directors approved an increase in the quarterly cash dividend to $0.44 per common share payable on or about November 28, 2016 to shareholders of record as of November 14, 2016.
Net Interest Revenue
Net interest revenue was $187.8 million for the third quarter of 2016, up $5.2 million over the second quarter of 2016.
Net interest margin was 2.64 percent for the third quarter of 2016, an increase of 1 basis point over the second quarter of 2016. The yield on average earning assets was 2.93 percent, an increase of 2 basis points. The loan portfolio yield increased 5 basis points to 3.63 percent primarily due to increases in the 30 day and 90 day LIBOR and improved energy loan yields. The yield on the available for sale securities portfolio decreased 3 basis points to 2.01 percent. Funding costs were 0.44 percent, up 3 basis points.
Average earning assets increased $260 million during the third quarter of 2016. Average loan balances increased $185 million, primarily due to growth in commercial real estate balances. Average trading securities balances increased $129 million and the average balance of residential mortgage loans held for sale was up $45 million, partially offset by a $101 million decrease in the balance of fair value option securities held as an economic hedge of our mortgage servicing rights. Average interest-bearing deposit balances decreased $38 million compared to the second quarter of 2016. The average balance of borrowed funds increased $175 million.
Fees and Commissions Revenue
Fees and commissions revenue totaled $185.3 million for the third quarter of 2016, an increase of $1.8 million over the second quarter of 2016.
Mortgage banking revenue totaled $42.5 million for the third quarter of 2016, a $4.3 million increase over the second quarter of 2016. Revenue from mortgage loan production increased $3.6 million due to growth in the volume of mortgage loans sold and increased gains on sale, partially offset by a decrease in mortgage loan commitments during the quarter. Average primary mortgage interest rates were 14 basis points lower than in the second quarter of 2016. Total mortgage loans originated during the third quarter increased $46 million or 3 percent over the prior quarter.
Outstanding mortgage loan commitments at September 30 decreased $335 million or 35 percent compared to June 30. The Company made a strategic decision to exit the correspondent lending channel based on careful consideration of continued pressure on margin due to the competitive landscape and increasing regulatory costs. This strategic decision decreased outstanding commitments by $414 million. Mortgage loan commitments continued to grow in our retail and HomeDirect online channels. The correspondent lending channel represented $4.6 million of the $26.0 million in total mortgage loan production revenue for the third quarter.
Brokerage and trading revenue decreased $1.5 million, primarily due to a $1.7 million decrease related to lower loan syndication fees and bond underwriting fees, which are both dependent on the timing and volume of completed transactions. Trading revenue decreased $307 thousand compared to the second quarter. The Company added a new group trading in U.S. government agency residential mortgage-backed securities and related to-be-announced securities. The addition of this group added $1.9 million of trading revenue during the third quarter and $426 million to the trading securities portfolio at September 30. This increase was partially offset by lower volumes of residential mortgage-backed and municipal securities sold to our institutional customers. Retail brokerage fees and customer hedging revenue were both up over the prior quarter.
Deposit service charges and fees were up $1.1 million over the prior quarter due to seasonal increases in overdraft volumes and higher commercial account service charge revenue. Transaction card revenue decreased $1.0 million, primarily due to a $1.2 million customer early termination fee recognized in the second quarter. A $740 thousand decrease in fiduciary and asset management revenue was largely due to an annual assessment of tax preparation fees in the second quarter, partially offset by growth in assets under management during the third quarter.
Operating Expense
Total operating expense was $262.1 million for the third quarter of 2016, an increase of $7.4 million over the second quarter of 2016. The Company agreed to settle a class action lawsuit concerning the manner in which the Company posted charges to certain deposit accounts for $7.8 million, $5.0 million of which was accrued in the third quarter.
Personnel expense increased by $695 thousand over the second quarter of 2016. Increased regular compensation expense and revenue-driven cash-based incentive compensation expense, was offset by a decrease in share-based compensation expense and a seasonal decrease in payroll tax expense.
Excluding the impact of the legal settlement accrual, non-personnel expense increased $1.7 million over the second quarter of 2016. Deposit insurance expense was up $2.3 million. The deposit insurance fund reached a target of 1.15 percent of insured deposits during the third quarter which triggered a new surcharge for banks with more than $10 billion in assets to bring the deposit insurance fund to 1.35 percent of insured deposits. This impact was partially offset by a reduction in the base rate.
Loans, Deposits and Capital
Loans
Outstanding loans were $16.5 billion at September 30, 2016, an increase of $58 million over the previous quarter. Growth in commercial real estate and personal loans, was partially offset by a decrease in commercial loan balances compared to the prior quarter.
Outstanding commercial loan balances decreased $236 million compared to June 30, 2016. Energy loan balances decreased $298 million compared to June 30, 2016 largely due to payments received from a single borrower. Unfunded energy loan commitments increased by $326 million during the third quarter to $2.3 billion. Service sector loans grew by $106 million, wholesale/retail sector loans increased $69 million and healthcare sector loans were up $34 million over the prior quarter. Manufacturing loans decreased $96 million and other commercial and industrial loans decreased $51 million.
Commercial real estate loans grew by $212 million over June 30, 2016. Loans secured by industrial facilities grew by $192 million and were broadly distributed across the Texas, Arizona, Colorado and Oklahoma markets. Multifamily residential loans increased $87 million primarily in the Kansas/Missouri, Texas and Arizona markets. Other commercial real estate loans decreased $59 million and loans secured by office buildings decreased $16 million.
Deposits
Period-end deposits totaled $21.1 billion at September 30, 2016, an increase of $336 million over June 30, 2016. Demand deposit balances increased by $257 million and interest-bearing transaction account balances increased $155 million, partially offset by a $77 million decrease in time deposits. Among the lines of business, Consumer Banking deposits increased $166 million, Wealth Management deposits increased by $105 million and Commercial Banking deposits increased $61 million. Growth in Consumer Banking deposits includes escrow funds associated with mortgage loan servicing. These deposits tend to grow throughout the year and are largely disbursed near year end. Growth in Wealth Management deposits include funds being held temporarily in anticipation of money market reforms. The net increase in Commercial Banking deposits was due to increased balances held by our healthcare, small business and treasury services customers, partially offset by a decrease in balances held by energy customers.
Capital
The company's common equity Tier 1 capital ratio was 11.99 percent at September 30, 2016. In addition, the company's Tier 1 capital ratio was 11.99 percent, total capital ratio was 13.65 percent and leverage ratio was 9.06 percent at September 30, 2016. At June 30, 2016, the company's common equity Tier 1 capital ratio was 11.86 percent, Tier 1 capital ratio was 11.86 percent, total capital ratio was 13.51 percent, and leverage ratio was 9.06 percent.
The company's tangible common equity ratio, a non-GAAP measure, was 9.19 percent at September 30, 2016 and 9.33 percent at June 30, 2016. The tangible common equity ratio is primarily based on total shareholders' equity which includes unrealized gains and losses on available for sale securities. The company has elected to exclude unrealized gains and losses from available for sale securities from its calculation of Tier 1 capital for regulatory capital purposes, consistent with the treatment under the previous capital rules.
Credit Quality
Nonperforming assets totaled $349 million or 2.12 percent of outstanding loans and repossessed assets at September 30, 2016 compared to $350 million or 2.13 percent at June 30, 2016. Nonperforming assets that are not guaranteed by U.S. government agencies totaled $253 million or 1.55 percent of outstanding loans and repossessed assets (excluding those guaranteed by U.S. government agencies) at September 30, 2016 compared to $251 million or 1.55 percent at June 30, 2016.
Nonaccruing loans totaled $237 million or 1.44 percent of outstanding loans at September 30, 2016, compared to $247 million or 1.51 percent of outstanding loans at June 30, 2016. The decrease in nonaccruing loans was primarily due to a $25 million decrease in nonaccruing energy loans, partially offset by a $21 million increase in nonaccruing other commercial and industrial sector loans. New nonaccruing loans identified in the third quarter totaled $29 million, offset by $15 million in foreclosures and repossessions, $11 million in payments received and $8.1 million in charge-offs. At September 30, 2016, nonaccruing commercial loans totaled $176 million or 1.74 percent of outstanding commercial loans, nonaccruing commercial real estate loans totaled $7.4 million or 0.19 percent of outstanding commercial real estate loans and nonaccruing residential mortgage loans totaled $52 million or 2.80 percent of outstanding residential mortgage loans.
Potential problem loans, which are defined as performing loans that based on known information cause management concern as to the borrowers' ability to continue to perform, decreased to $478 million at September 30 from $501 million at June 30. The decrease largely resulted from a decrease in potential problem energy loans, partially offset by an increase in potential problem services loans.
Net loans charged off totaled $6.1 million for the third quarter of 2016, compared to $7.5 million in the second quarter of 2016. Gross charge-offs totaled $8.1 million for the third quarter, compared to $8.8 million for the previous quarter. Charge-offs in both quarters largely came from the energy loan portfolio. Recoveries totaled $2.0 million for the third quarter of 2016 and $1.4 million for the second quarter of 2016.
After evaluating all credit factors, the company recorded a $10.0 million provision for credit losses during the third quarter of 2016. The company recorded a $20.0 million provision for credit losses in the previous quarter. The lower provision reflects improvement in credit metrics over the previous quarter, largely driven by energy price stability and decreased rates of newly identified nonaccruing and potential problem loans.
The combined allowance for credit losses totaled $256 million or 1.56 percent of outstanding loans and 116 percent of nonaccruing loans at September 30, 2016. The allowance for loan losses was $245 million and the accrual for off-balance sheet credit losses was $11.1 million.
Energy Portfolio Credit Quality
The company's $2.5 billion energy portfolio consists of 79 percent of loans to exploration and production companies, 8 percent to energy services companies and 13 percent to midstream and other energy borrowers. Substantially all of the loans to exploration and production companies are secured by first lien positions in established energy reserves. Only $10 million of these loans are in junior lien positions. None represent higher-risk mezzanine financing or subordinated debt and none are high-yield debt.
Credit quality metrics in the energy portfolio continued to improve during the third quarter. Nonaccruing energy loans decreased $25 million to $143 million or 5.67 percent of outstanding energy loans. Potential problem energy loans decreased $60 million to $361 million and other loans especially mentioned decreased $50 million to $147 million. Approximately $100 million of the nonaccruing energy loans require no allowance for loan losses based on underlying collateral values and $85 million of the nonaccruing energy loans are current on all payments due. At September 30, 2016, the portion of the combined allowance for credit losses attributed to the energy portfolio totaled $92 million or 3.67 percent of outstanding energy loans compared to $101 million or 3.58 percent of outstanding energy loans at June 30, 2016.
Marc Maun, chief credit officer added, “There were continued positive trends in our energy portfolio in the third quarter. Line of credit utilization, criticized loans and charge-offs were all down, and while we saw a decrease in overall commitments and outstandings, our energy banking team booked $200 million of new commitments to high–quality borrowers. If oil and natural gas prices remain in recent ranges, we expect the positive trends to continue in the fourth quarter.”
Securities and Derivatives
The fair value of the available for sale securities portfolio totaled $8.9 billion at September 30, 2016, a $32 million increase compared to June 30, 2016. At September 30, 2016, the available for sale portfolio consisted primarily of $5.7 billion of residential mortgage-backed securities fully backed by U.S. government agencies and $3.0 billion of commercial mortgage-backed securities fully backed by U.S. government agencies.
At September 30, 2016, the available for sale securities portfolio had a net unrealized gain of $160 million compared to a net unrealized gain of $195 million at June 30, 2016. The increase in net unrealized gain was primarily due to changes in interest rates during the quarter. Net unrealized gains on residential mortgage-backed securities issued by U.S. government agencies at September 30, 2016 decreased $25 million during the third quarter to $98 million. Commercial mortgage-backed securities had a net unrealized gain of $44 million at September 30, 2016, compared to $58 million at June 30, 2016.
The company also maintains a portfolio of U.S. Treasury securities, residential mortgage-backed securities issued by U.S. government agencies and interest rate derivative contracts as an economic hedge of the changes in the fair value of our mortgage servicing rights. Changes in the fair value of mortgage servicing rights are highly dependent on primary mortgage interest rates offered to borrowers and other factors. Changes in the fair value of securities and interest rate derivatives are highly dependent on secondary mortgage rates, or rates required by investors. Changes in the spread between primary and secondary mortgage rates cannot be effectively hedged and can cause significant earnings volatility.
The fair value of mortgage servicing rights increased by $2.3 million during the third quarter of 2016 primarily due to changes in short term interest rates. The fair value of securities and interest rate derivative contracts held as an economic hedge decreased by $1.1 million during the quarter due to an increase in interest rate swap rates, partially offset by a decrease in average secondary mortgage rates. The fair value of mortgage servicing rights, net of economic hedges, decreased $1.2 million in the second quarter of 2016, primarily due to a decrease in secondary mortgage and interest rate swap rates. Hedge coverage was increased during the second quarter to improve its effectiveness.
Conference Call and Webcast
The company will hold a conference call at 9 a.m. Central time on Wednesday, October 26, 2016 to discuss the financial results with investors. The live audio webcast and presentation slides will be available on the company’s website at www.bokf.com. The conference call can also be accessed by dialing 1-201-689-8597. A conference call and webcast replay will also be available shortly after conclusion of the live call at www.bokf.com or by dialing 1-201-612-7415 and referencing conference ID # 13646085.
About BOK Financial Corporation
BOK Financial Corporation is a $33 billion regional financial services company based in Tulsa, Oklahoma. The company's stock is publicly traded on NASDAQ under the Global Select market listings (symbol: BOKF). BOK Financial's holdings include BOKF, NA, BOK Financial Securities, Inc. and The Milestone Group, Inc. BOKF, NA operates TransFund, Cavanal Hill Investment Management, BOK Financial Asset Management, Inc. and seven banking divisions: Bank of Albuquerque, Bank of Arizona, Bank of Arkansas, Bank of Kansas City, Bank of Oklahoma, Bank of Texas and Colorado State Bank and Trust. Through its subsidiaries, the company provides commercial and consumer banking, investment and trust services, mortgage origination and servicing, and an electronic funds transfer network. For more information, visit www.bokf.com.
The company will continue to evaluate critical assumptions and estimates, such as the appropriateness of the allowance for credit losses and asset impairment as of September 30, 2016 through the date its financial statements are filed with the Securities and Exchange Commission and will adjust amounts reported if necessary.
This news release contains forward-looking statements that are based on management's beliefs, assumptions, current expectations, estimates and projections about BOK Financial, the financial services industry and the economy generally. Words such as “anticipates,” “believes,” “estimates,” “expects,” “forecasts,” “plans,” “projects,” “will,” “intends,” variations of such words and similar expressions are intended to identify such forward-looking statements. Management judgments relating to and discussion of the provision and allowance for credit losses, allowance for uncertain tax positions, accruals for loss contingencies and valuation of mortgage servicing rights involve judgments as to expected events and are inherently forward-looking statements. Assessments that BOK Financial's acquisitions and other growth endeavors will be profitable are necessary statements of belief as to the outcome of future events based in part on information provided by others which BOK Financial has not independently verified. These statements are not guarantees of future performance and involve certain risks, uncertainties, and assumptions which are difficult to predict with regard to timing, extent, likelihood and degree of occurrence. Therefore, actual results and outcomes may materially differ from what is expected, implied or forecasted in such forward-looking statements. Internal and external factors that might cause such a difference include, but are not limited to changes in commodity prices, interest rates and interest rate relationships, demand for products and services, the degree of competition by traditional and nontraditional competitors, changes in banking regulations, tax laws, prices, levies and assessments, the impact of technological advances, and trends in customer behavior as well as their ability to repay loans. BOK Financial and its affiliates undertake no obligation to update, amend or clarify forward-looking statements, whether as a result of new information, future events, or otherwise.
| BALANCE SHEETS -- UNAUDITED | |||||||||||
| BOK FINANCIAL CORPORATION | |||||||||||
| (In thousands) | |||||||||||
| Sept. 30, 2016 | June 30, 2016 | Sept. 30, 2015 | |||||||||
| ASSETS | |||||||||||
| Cash and due from banks | $ | 535,916 | $ | 498,713 | $ | 489,268 | |||||
| Interest-bearing cash and cash equivalents | 2,080,978 | 1,907,838 | 1,830,105 | ||||||||
| Trading securities | 546,615 | 211,622 | 181,131 | ||||||||
| Investment securities | 546,457 | 560,711 | 612,384 | ||||||||
| Available for sale securities | 8,862,283 | 8,830,689 | 8,801,089 | ||||||||
| Fair value option securities | 222,409 | 263,265 | 427,760 | ||||||||
| Restricted equity securities | 333,391 | 319,639 | 263,587 | ||||||||
| Residential mortgage loans held for sale | 447,592 | 430,728 | 357,414 | ||||||||
| Loans: | |||||||||||
| Commercial | 10,120,163 | 10,356,437 | 9,797,422 | ||||||||
| Commercial real estate | 3,793,598 | 3,581,966 | 3,235,067 | ||||||||
| Residential mortgage | 1,872,793 | 1,880,923 | 1,868,995 | ||||||||
| Personal | 678,232 | 587,423 | 465,957 | ||||||||
| Total loans | 16,464,786 | 16,406,749 | 15,367,441 | ||||||||
| Allowance for loan losses | (245,103 | ) | (243,259 | ) | (204,116 | ) | |||||
| Loans, net of allowance | 16,219,683 | 16,163,490 | 15,163,325 | ||||||||
| Premises and equipment, net | 318,196 | 315,199 | 294,669 | ||||||||
| Receivables | 650,368 | 173,638 | 151,451 | ||||||||
| Goodwill | 382,739 | 382,739 | 385,461 | ||||||||
| Intangible assets, net | 41,977 | 43,372 | 44,999 | ||||||||
| Mortgage servicing rights | 203,621 | 190,747 | 200,049 | ||||||||
| Real estate and other repossessed assets, net | 31,941 | 24,054 | 33,116 | ||||||||
| Derivative contracts, net | 655,078 | 883,673 | 726,159 | ||||||||
| Cash surrender value of bank-owned life insurance | 310,211 | 307,860 | 300,981 | ||||||||
| Receivable on unsettled securities sales | 19,642 | 142,820 | 30,009 | ||||||||
| Other assets | 370,134 | 319,653 | 273,948 | ||||||||
| TOTAL ASSETS | $ | 32,779,231 | $ | 31,970,450 | $ | 30,566,905 | |||||
| LIABILITIES AND EQUITY | |||||||||||
| Deposits: | |||||||||||
| Demand | $ | 8,681,364 | $ | 8,424,609 | $ | 8,041,767 | |||||
| Interest-bearing transaction | 9,824,160 | 9,668,869 | 9,698,849 | ||||||||
| Savings | 420,349 | 419,262 | 380,296 | ||||||||
| Time | 2,169,631 | 2,247,061 | 2,498,531 | ||||||||
| Total deposits | 21,095,504 | 20,759,801 | 20,619,443 | ||||||||
| Funds purchased | 109,031 | 56,780 | 62,297 | ||||||||
| Repurchase agreements | 504,573 | 472,683 | 555,677 | ||||||||
| Other borrowings | 6,533,443 | 5,830,736 | 4,635,150 | ||||||||
| Subordinated debentures | 144,631 | 371,812 | 226,314 | ||||||||
| Accrued interest, taxes and expense | 191,276 | 197,742 | 158,048 | ||||||||
| Due on unsettled securities purchases | 677 | 11,757 | 98,351 | ||||||||
| Derivative contracts, net | 573,987 | 719,159 | 636,115 | ||||||||
| Other liabilities | 193,698 | 147,242 | 159,348 | ||||||||
| TOTAL LIABILITIES | 29,346,820 | 28,567,712 | 27,150,743 | ||||||||
| Shareholders' equity: | |||||||||||
| Capital, surplus and retained earnings | 3,302,584 | 3,251,201 | 3,291,450 | ||||||||
| Accumulated other comprehensive income | 95,727 | 117,632 | 85,776 | ||||||||
| TOTAL SHAREHOLDERS' EQUITY | 3,398,311 | 3,368,833 | 3,377,226 | ||||||||
| Non-controlling interests | 34,100 | 33,905 | 38,936 | ||||||||
| TOTAL EQUITY | 3,432,411 | 3,402,738 | 3,416,162 | ||||||||
| TOTAL LIABILITIES AND EQUITY | $ | 32,779,231 | $ | 31,970,450 | $ | 30,566,905 | |||||
| AVERAGE BALANCE SHEETS -- UNAUDITED | |||||||||||||||||||
| BOK FINANCIAL CORPORATION | |||||||||||||||||||
| (in thousands) | |||||||||||||||||||
| Three Months Ended | |||||||||||||||||||
| Sept. 30,2016 | June 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sept. 30,2015 | |||||||||||||||
| ASSETS | |||||||||||||||||||
| Interest-bearing cash and cash equivalents | $ | 2,047,991 | $ | 2,022,028 | $ | 2,052,840 | $ | 1,995,945 | $ | 2,038,611 | |||||||||
| Trading securities | 366,545 | 237,808 | 188,100 | 150,402 | 179,098 | ||||||||||||||
| Investment securities | 552,592 | 562,391 | 587,465 | 602,369 | 616,091 | ||||||||||||||
| Available for sale securities | 8,862,590 | 8,890,112 | 8,951,435 | 8,971,090 | 8,942,261 | ||||||||||||||
| Fair value option securities | 266,998 | 368,434 | 450,478 | 435,449 | 429,951 | ||||||||||||||
| Restricted equity securities | 335,812 | 319,136 | 294,529 | 262,461 | 255,610 | ||||||||||||||
| Residential mortgage loans held for sale | 445,930 | 401,114 | 289,743 | 310,425 | 401,359 | ||||||||||||||
| Loans: | |||||||||||||||||||
| Commercial | 10,109,692 | 10,265,782 | 10,268,793 | 10,024,756 | 9,685,768 | ||||||||||||||
| Commercial real estate | 3,789,673 | 3,550,611 | 3,364,076 | 3,186,629 | 3,198,200 | ||||||||||||||
| Residential mortgage | 1,870,855 | 1,864,458 | 1,865,742 | 1,835,195 | 1,847,696 | ||||||||||||||
| Personal | 677,530 | 582,281 | 493,382 | 540,418 | 460,647 | ||||||||||||||
| Total loans | 16,447,750 | 16,263,132 | 15,991,993 | 15,586,998 | 15,192,311 | ||||||||||||||
| Allowance for loan losses | (247,901 | ) | (245,448 | ) | (234,116 | ) | (207,156 | ) | (202,829 | ) | |||||||||
| Total loans, net | 16,199,849 | 16,017,684 | 15,757,877 | 15,379,842 | 14,989,482 | ||||||||||||||
| Total earning assets | 29,078,307 | 28,818,707 | 28,572,467 | 28,107,983 | 27,852,463 | ||||||||||||||
| Cash and due from banks | 511,534 | 507,085 | 505,522 | 514,629 | 487,283 | ||||||||||||||
| Derivative contracts, net | 766,671 | 823,584 | 632,102 | 657,780 | 669,264 | ||||||||||||||
| Cash surrender value of bank-owned life insurance | 308,670 | 306,318 | 304,141 | 301,793 | 299,424 | ||||||||||||||
| Receivable on unsettled securities sales | 259,906 | 49,568 | 115,101 | 62,228 | 64,591 | ||||||||||||||
| Other assets | 1,721,385 | 1,480,780 | 1,379,138 | 1,435,763 | 1,396,708 | ||||||||||||||
| TOTAL ASSETS | $ | 32,646,473 | $ | 31,986,042 | $ | 31,508,471 | $ | 31,080,176 | $ | 30,769,733 | |||||||||
| LIABILITIES AND EQUITY | |||||||||||||||||||
| Deposits: | |||||||||||||||||||
| Demand | $ | 8,497,037 | $ | 8,162,134 | $ | 8,105,756 | $ | 8,312,961 | $ | 7,994,607 | |||||||||
| Interest-bearing transaction | 9,650,618 | 9,590,855 | 9,756,843 | 9,527,491 | 9,760,839 | ||||||||||||||
| Savings | 420,009 | 417,122 | 397,479 | 382,284 | 379,828 | ||||||||||||||
| Time | 2,197,350 | 2,297,621 | 2,366,543 | 2,482,714 | 2,557,874 | ||||||||||||||
| Total deposits | 20,765,014 | 20,467,732 | 20,626,621 | 20,705,450 | 20,693,148 | ||||||||||||||
| Funds purchased | 68,280 | 70,682 | 112,211 | 73,220 | 70,281 | ||||||||||||||
| Repurchase agreements | 522,822 | 611,264 | 662,640 | 623,921 | 672,085 | ||||||||||||||
| Other borrowings | 6,342,369 | 6,076,028 | 5,583,917 | 4,957,175 | 4,779,981 | ||||||||||||||
| Subordinated debentures | 255,890 | 232,795 | 226,368 | 226,332 | 226,296 | ||||||||||||||
| Derivative contracts, net | 747,187 | 791,313 | 544,722 | 632,699 | 597,908 | ||||||||||||||
| Due on unsettled securities purchases | 200,574 | 93,812 | 158,050 | 248,811 | 90,135 | ||||||||||||||
| Other liabilities | 352,671 | 298,170 | 268,705 | 251,953 | 240,704 | ||||||||||||||
| TOTAL LIABILITIES | 29,254,807 | 28,641,796 | 28,183,234 | 27,719,561 | 27,370,538 | ||||||||||||||
| Total equity | 3,391,666 | 3,344,246 | 3,325,237 | 3,360,615 | 3,399,195 | ||||||||||||||
| TOTAL LIABILITIES AND EQUITY | $ | 32,646,473 | $ | 31,986,042 | $ | 31,508,471 | $ | 31,080,176 | $ | 30,769,733 | |||||||||
| STATEMENTS OF EARNINGS -- UNAUDITED | ||||||||||||||||
| BOK FINANCIAL CORPORATION | ||||||||||||||||
| (in thousands, except per share data) | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| Interest revenue | $ | 209,317 | $ | 193,664 | $ | 613,380 | $ | 570,046 | ||||||||
| Interest expense | 21,471 | 15,028 | 60,350 | 47,953 | ||||||||||||
| Net interest revenue | 187,846 | 178,636 | 553,030 | 522,093 | ||||||||||||
| Provision for credit losses | 10,000 | 7,500 | 65,000 | 11,500 | ||||||||||||
| Net interest revenue after provision for credit losses | 177,846 | 171,136 | 488,030 | 510,593 | ||||||||||||
| Other operating revenue: | ||||||||||||||||
| Brokerage and trading revenue | 38,006 | 31,582 | 109,877 | 99,301 | ||||||||||||
| Transaction card revenue | 33,933 | 32,514 | 101,237 | 96,302 | ||||||||||||
| Fiduciary and asset management revenue | 34,073 | 30,807 | 100,942 | 94,988 | ||||||||||||
| Deposit service charges and fees | 23,668 | 23,606 | 68,828 | 67,618 | ||||||||||||
| Mortgage banking revenue | 42,548 | 33,170 | 115,202 | 109,336 | ||||||||||||
| Other revenue | 13,080 | 12,978 | 38,336 | 35,650 | ||||||||||||
| Total fees and commissions | 185,308 | 164,657 | 534,422 | 503,195 | ||||||||||||
| Other gains, net | 2,442 | 1,161 | 5,309 | 3,373 | ||||||||||||
| Gain on derivatives, net | 2,226 | 1,283 | 20,130 | 1,162 | ||||||||||||
| Gain (loss) on fair value option securities, net | (3,355 | ) | 5,926 | 10,367 | 443 | |||||||||||
| Change in fair value of mortgage servicing rights | 2,327 | (11,757 | ) | (41,944 | ) | (12,269 | ) | |||||||||
| Gain on available for sale securities, net | 2,394 | 2,166 | 11,684 | 9,926 | ||||||||||||
| Total other-than-temporary impairment losses | — | — | — | (781 | ) | |||||||||||
| Portion of loss recognized in other comprehensive income | — | — | — | 689 | ||||||||||||
| Net impairment losses recognized in earnings | — | — | — | (92 | ) | |||||||||||
| Total other operating revenue | 191,342 | 163,436 | 539,968 | 505,738 | ||||||||||||
| Other operating expense: | ||||||||||||||||
| Personnel | 143,185 | 129,062 | 421,518 | 390,305 | ||||||||||||
| Business promotion | 6,839 | 5,922 | 19,238 | 19,435 | ||||||||||||
| Charitable contributions to BOKF Foundation | — | 796 | — | 796 | ||||||||||||
| Professional fees and services | 14,038 | 10,147 | 39,955 | 29,766 | ||||||||||||
| Net occupancy and equipment | 20,111 | 18,689 | 58,554 | 56,660 | ||||||||||||
| Insurance | 9,390 | 4,864 | 23,784 | 14,960 | ||||||||||||
| Data processing and communications | 33,331 | 30,708 | 98,150 | 91,135 | ||||||||||||
| Printing, postage and supplies | 3,790 | 3,376 | 11,586 | 10,390 | ||||||||||||
| Net losses (gains) and operating expenses of repossessed assets | (926 | ) | 267 | 1,732 | 1,103 | |||||||||||
| Amortization of intangible assets | 1,521 | 1,089 | 5,304 | 3,269 | ||||||||||||
| Mortgage banking costs | 16,022 | 9,107 | 44,210 | 27,501 | ||||||||||||
| Other expense | 14,819 | 10,601 | 37,714 | 26,686 | ||||||||||||
| Total other operating expense | 262,120 | 224,628 | 761,745 | 672,006 | ||||||||||||
| Net income before taxes | 107,068 | 109,944 | 266,253 | 344,325 | ||||||||||||
| Federal and state income taxes | 31,956 | 34,128 | 83,881 | 113,142 | ||||||||||||
| Net income | 75,112 | 75,816 | 182,372 | 231,183 | ||||||||||||
| Net income (loss) attributable to non-controlling interests | 835 | 925 | (270 | ) | 2,219 | |||||||||||
| Net income attributable to BOK Financial Corporation shareholders | $ | 74,277 | $ | 74,891 | $ | 182,642 | $ | 228,964 | ||||||||
| Average shares outstanding: | ||||||||||||||||
| Basic | 65,085,392 | 67,668,076 | 65,208,774 | 68,004,508 | ||||||||||||
| Diluted | 65,157,841 | 67,762,483 | 65,263,566 | 68,104,017 | ||||||||||||
| Net income per share: | ||||||||||||||||
| Basic | $ | 1.13 | $ | 1.09 | $ | 2.77 | $ | 3.33 | ||||||||
| Diluted | $ | 1.13 | $ | 1.09 | $ | 2.76 | $ | 3.32 | ||||||||
| FINANCIAL HIGHLIGHTS -- UNAUDITED | |||||||||||||||||||
| BOK FINANCIAL CORPORATION | |||||||||||||||||||
| (in thousands, except ratio and share data) | |||||||||||||||||||
| Three Months Ended | |||||||||||||||||||
| Sept. 30,2016 | June 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sept. 30,2015 | |||||||||||||||
| Capital: | |||||||||||||||||||
| Period-end shareholders' equity | $ | 3,398,311 | $ | 3,368,833 | $ | 3,321,555 | $ | 3,230,556 | $ | 3,377,226 | |||||||||
| Risk weighted assets | $ | 24,358,342 | $ | 24,191,016 | $ | 23,707,824 | $ | 23,429,897 | $ | 22,706,537 | |||||||||
| Risk-based capital ratios: | |||||||||||||||||||
| Common equity tier 1 | 11.99 | % | 11.86 | % | 12.00 | % | 12.13 | % | 12.78 | % | |||||||||
| Tier 1 | 11.99 | % | 11.86 | % | 12.00 | % | 12.13 | % | 12.78 | % | |||||||||
| Total capital | 13.65 | % | 13.51 | % | 13.21 | % | 13.30 | % | 13.89 | % | |||||||||
| Leverage ratio | 9.06 | % | 9.06 | % | 9.12 | % | 9.25 | % | 9.55 | % | |||||||||
| Tangible common equity ratio1 | 9.19 | % | 9.33 | % | 9.34 | % | 9.02 | % | 9.78 | % | |||||||||
| Common stock: | |||||||||||||||||||
| Book value per share | $ | 51.56 | $ | 51.15 | $ | 50.21 | $ | 49.03 | $ | 49.88 | |||||||||
| Tangible book value per share | 45.12 | 44.68 | 43.73 | 42.51 | 43.52 | ||||||||||||||
| Market value per share: | |||||||||||||||||||
| High | $ | 70.05 | $ | 65.14 | $ | 60.16 | $ | 74.73 | $ | 70.26 | |||||||||
| Low | $ | 56.36 | $ | 51.00 | $ | 43.74 | $ | 58.25 | $ | 57.04 | |||||||||
| Cash dividends paid | $ | 28,181 | $ | 28,241 | $ | 28,294 | $ | 28,967 | $ | 28,766 | |||||||||
| Dividend payout ratio | 37.94 | % | 42.92 | % | 66.47 | % | 48.60 | % | 38.41 | % | |||||||||
| Shares outstanding, net | 65,910,454 | 65,866,317 | 66,155,103 | 65,894,032 | 67,713,031 | ||||||||||||||
| Stock buy-back program: | |||||||||||||||||||
| Shares repurchased | — | 305,169 | — | 1,874,074 | 1,258,348 | ||||||||||||||
| Amount | $ | — | $ | 17,771 | $ | — | $ | 119,780 | $ | 80,276 | |||||||||
| Average price per share | $ | — | $ | 58.23 | $ | — | $ | 63.91 | $ | 63.79 | |||||||||
| Performance ratios (quarter annualized): | |||||||||||||||||||
| Return on average assets | 0.91 | % | 0.83 | % | 0.54 | % | 0.76 | % | 0.97 | % | |||||||||
| Return on average equity | 8.80 | % | 8.00 | % | 5.21 | % | 7.12 | % | 8.84 | % | |||||||||
| Net interest margin | 2.64 | % | 2.63 | % | 2.65 | % | 2.64 | % | 2.61 | % | |||||||||
| Efficiency ratio | 69.21 | % | 68.45 | % | 69.05 | % | 67.93 | % | 64.34 | % | |||||||||
| Reconciliation of non-GAAP measures: | |||||||||||||||||||
| 1 Tangible common equity ratio: | |||||||||||||||||||
| Total shareholders' equity | $ | 3,398,311 | $ | 3,368,833 | $ | 3,321,555 | $ | 3,230,556 | $ | 3,377,226 | |||||||||
| Less: Goodwill and intangible assets, net | 424,716 | 426,111 | 428,733 | 429,370 | 430,460 | ||||||||||||||
| Tangible common equity | $ | 2,973,595 | $ | 2,942,722 | $ | 2,892,822 | $ | 2,801,186 | $ | 2,946,766 | |||||||||
| Total assets | $ | 32,779,231 | $ | 31,970,450 | $ | 31,413,945 | $ | 31,476,128 | $ | 30,566,905 | |||||||||
| Less: Goodwill and intangible assets, net | 424,716 | 426,111 | 428,733 | 429,370 | 430,460 | ||||||||||||||
| Tangible assets | $ | 32,354,515 | $ | 31,544,339 | $ | 30,985,212 | $ | 31,046,758 | $ | 30,136,445 | |||||||||
| Tangible common equity ratio | 9.19 | % | 9.33 | % | 9.34 | % | 9.02 | % | 9.78 | % | |||||||||
| Other data: | |||||||||||||||||||
| Fiduciary assets | $ | 41,222,162 | $ | 39,924,734 | $ | 39,113,305 | $ | 38,333,638 | $ | 37,780,669 | |||||||||
| Tax equivalent adjustment | $ | 4,455 | $ | 4,372 | $ | 4,385 | $ | 3,222 | $ | 3,244 | |||||||||
| Net unrealized gain on available for sale securities | $ | 159,533 | $ | 195,385 | $ | 155,236 | $ | 38,109 | $ | 144,884 | |||||||||
| Mortgage banking: | |||||||||||||||||||
| Mortgage servicing portfolio | $ | 21,851,536 | $ | 21,178,387 | $ | 20,294,662 | $ | 19,678,226 | $ | 18,928,726 | |||||||||
| Mortgage commitments | $ | 630,804 | $ | 965,631 | $ | 902,986 | $ | 601,147 | $ | 742,742 | |||||||||
| Mortgage loans funded for sale | $ | 1,864,583 | $ | 1,818,844 | $ | 1,244,015 | $ | 1,365,431 | $ | 1,614,225 | |||||||||
| Mortgage loan refinances to total fundings | 51 | % | 44 | % | 49 | % | 41 | % | 30 | % | |||||||||
| Mortgage loans sold | $ | 1,873,709 | $ | 1,742,582 | $ | 1,239,391 | $ | 1,424,527 | $ | 1,778,099 | |||||||||
| Net realized gains on mortgage loans sold | $ | 27,142 | $ | 19,205 | $ | 10,779 | $ | 15,705 | $ | 18,968 | |||||||||
| Change in net unrealized gain on mortgage loans held for sale | (1,152 | ) | 3,221 | 8,198 | (5,615 | ) | (251 | ) | |||||||||||
| Total production revenue | 25,990 | 22,426 | 18,977 | 10,090 | 18,717 | ||||||||||||||
| Servicing revenue | 16,558 | 15,798 | 15,453 | 14,949 | 14,453 | ||||||||||||||
| Total mortgage banking revenue | $ | 42,548 | $ | 38,224 | $ | 34,430 | $ | 25,039 | $ | 33,170 | |||||||||
| Gain (loss) on mortgage servicing rights, net of economic hedge: | |||||||||||||||||||
| Gain (loss) on mortgage hedge derivative contracts, net | $ | 2,268 | $ | 10,766 | $ | 7,138 | $ | (732 | ) | $ | 1,460 | ||||||||
| Gain (loss) on fair value option securities, net | (3,355 | ) | 4,279 | 9,443 | (4,127 | ) | 5,926 | ||||||||||||
| Gain (loss) on economic hedge of mortgage servicing rights | (1,087 | ) | 15,045 | 16,581 | (4,859 | ) | 7,386 | ||||||||||||
| Gain (loss) on changes in fair value of mortgage servicing rights | 2,327 | (16,283 | ) | (27,988 | ) | 7,416 | (11,757 | ) | |||||||||||
| Gain (loss) on changes in fair value of mortgage servicing rights, net of economic hedges | $ | 1,240 | $ | (1,238 | ) | $ | (11,407 | ) | $ | 2,557 | $ | (4,371 | ) | ||||||
| Net interest revenue on fair value option securities | $ | 861 | $ | 1,348 | $ | 2,033 | $ | 2,137 | $ | 2,140 | |||||||||
| QUARTERLY EARNINGS TREND -- UNAUDITED | |||||||||||||||||||
| BOK FINANCIAL CORPORATION | |||||||||||||||||||
| (in thousands, except ratio and per share data) | |||||||||||||||||||
| Three Months Ended | |||||||||||||||||||
| Sept. 30,2016 | June 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sept. 30,2015 | |||||||||||||||
| Interest revenue | $ | 209,317 | $ | 202,267 | $ | 201,796 | $ | 196,782 | $ | 193,664 | |||||||||
| Interest expense | 21,471 | 19,655 | 19,224 | 15,521 | 15,028 | ||||||||||||||
| Net interest revenue | 187,846 | 182,612 | 182,572 | 181,261 | 178,636 | ||||||||||||||
| Provision for credit losses | 10,000 | 20,000 | 35,000 | 22,500 | 7,500 | ||||||||||||||
| Net interest revenue after provision for credit losses | 177,846 | 162,612 | 147,572 | 158,761 | 171,136 | ||||||||||||||
| Other operating revenue: | |||||||||||||||||||
| Brokerage and trading revenue | 38,006 | 39,530 | 32,341 | 30,255 | 31,582 | ||||||||||||||
| Transaction card revenue | 33,933 | 34,950 | 32,354 | 32,319 | 32,514 | ||||||||||||||
| Fiduciary and asset management revenue | 34,073 | 34,813 | 32,056 | 31,165 | 30,807 | ||||||||||||||
| Deposit service charges and fees | 23,668 | 22,618 | 22,542 | 22,813 | 23,606 | ||||||||||||||
| Mortgage banking revenue | 42,548 | 38,224 | 34,430 | 25,039 | 33,170 | ||||||||||||||
| Other revenue | 13,080 | 13,352 | 11,904 | 14,233 | 12,978 | ||||||||||||||
| Total fees and commissions | 185,308 | 183,487 | 165,627 | 155,824 | 164,657 | ||||||||||||||
| Other gains, net | 2,442 | 1,307 | 1,560 | 2,329 | 1,161 | ||||||||||||||
| Gain (loss) on derivatives, net | 2,226 | 10,766 | 7,138 | (732 | ) | 1,283 | |||||||||||||
| Gain (loss) on fair value option securities, net | (3,355 | ) | 4,279 | 9,443 | (4,127 | ) | 5,926 | ||||||||||||
| Change in fair value of mortgage servicing rights | 2,327 | (16,283 | ) | (27,988 | ) | 7,416 | (11,757 | ) | |||||||||||
| Gain on available for sale securities, net | 2,394 | 5,326 | 3,964 | 2,132 | 2,166 | ||||||||||||||
| Total other-than-temporary impairment losses | — | — | — | (2,114 | ) | — | |||||||||||||
| Portion of loss recognized in other comprehensive income | — | — | — | 387 | — | ||||||||||||||
| Net impairment losses recognized in earnings | — | — | — | (1,727 | ) | — | |||||||||||||
| Total other operating revenue | 191,342 | 188,882 | 159,744 | 161,115 | 163,436 | ||||||||||||||
| Other operating expense: | |||||||||||||||||||
| Personnel | 143,185 | 142,490 | 135,843 | 133,182 | 129,062 | ||||||||||||||
| Business promotion | 6,839 | 6,703 | 5,696 | 8,416 | 5,922 | ||||||||||||||
| Charitable contributions to BOKF Foundation | — | — | — | — | 796 | ||||||||||||||
| Professional fees and services | 14,038 | 14,158 | 11,759 | 10,357 | 10,147 | ||||||||||||||
| Net occupancy and equipment | 20,111 | 19,677 | 18,766 | 19,356 | 18,689 | ||||||||||||||
| Insurance | 9,390 | 7,129 | 7,265 | 5,415 | 4,864 | ||||||||||||||
| Data processing and communications | 33,331 | 32,802 | 32,017 | 31,248 | 30,708 | ||||||||||||||
| Printing, postage and supplies | 3,790 | 3,889 | 3,907 | 3,108 | 3,376 | ||||||||||||||
| Net losses (gains) and operating expenses of repossessed assets | (926 | ) | 1,588 | 1,070 | 343 | 267 | |||||||||||||
| Amortization of intangible assets | 1,521 | 2,624 | 1,159 | 1,090 | 1,089 | ||||||||||||||
| Mortgage banking costs | 16,022 | 15,809 | 12,379 | 11,496 | 9,107 | ||||||||||||||
| Other expense | 14,819 | 7,856 | 15,039 | 8,547 | 10,601 | ||||||||||||||
| Total other operating expense | 262,120 | 254,725 | 244,900 | 232,558 | 224,628 | ||||||||||||||
| Net income before taxes | 107,068 | 96,769 | 62,416 | 87,318 | 109,944 | ||||||||||||||
| Federal and state income taxes | 31,956 | 30,497 | 21,428 | 26,242 | 34,128 | ||||||||||||||
| Net income | 75,112 | 66,272 | 40,988 | 61,076 | 75,816 | ||||||||||||||
| Net income (loss) attributable to non-controlling interests | 835 | 471 | (1,576 | ) | 1,475 | 925 | |||||||||||||
| Net income attributable to BOK Financial Corporation shareholders | $ | 74,277 | $ | 65,801 | $ | 42,564 | $ | 59,601 | $ | 74,891 | |||||||||
| Average shares outstanding: | |||||||||||||||||||
| Basic | 65,085,392 | 65,245,887 | 65,296,541 | 66,378,380 | 67,668,076 | ||||||||||||||
| Diluted | 65,157,841 | 65,302,926 | 65,331,428 | 66,467,729 | 67,762,483 | ||||||||||||||
| Net income per share: | |||||||||||||||||||
| Basic | $ | 1.13 | $ | 1.00 | $ | 0.64 | $ | 0.89 | $ | 1.09 | |||||||||
| Diluted | $ | 1.13 | $ | 1.00 | $ | 0.64 | $ | 0.89 | $ | 1.09 | |||||||||
| LOANS TREND -- UNAUDITED | ||||||||||||||||||||
| BOK FINANCIAL CORPORATION | ||||||||||||||||||||
| (In thousands) | ||||||||||||||||||||
| Sept. 30,2016 | June 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sept. 30,2015 | ||||||||||||||||
| Commercial: | ||||||||||||||||||||
| Energy | $ | 2,520,804 | $ | 2,818,656 | $ | 3,029,420 | $ | 3,097,328 | $ | 2,838,167 | ||||||||||
| Services | 2,936,599 | 2,830,864 | 2,728,891 | 2,784,276 | 2,706,624 | |||||||||||||||
| Healthcare | 2,085,046 | 2,051,146 | 1,995,425 | 1,883,380 | 1,741,680 | |||||||||||||||
| Wholesale/retail | 1,602,030 | 1,532,957 | 1,451,846 | 1,422,064 | 1,461,936 | |||||||||||||||
| Manufacturing | 499,486 | 595,403 | 600,645 | 556,729 | 555,677 | |||||||||||||||
| Other commercial and industrial | 476,198 | 527,411 | 482,198 | 508,754 | 493,338 | |||||||||||||||
| Total commercial | 10,120,163 | 10,356,437 | 10,288,425 | 10,252,531 | 9,797,422 | |||||||||||||||
| Commercial real estate: | ||||||||||||||||||||
| Retail | 801,377 | 795,419 | 810,522 | 796,499 | 769,449 | |||||||||||||||
| Multifamily | 873,773 | 787,200 | 733,689 | 751,085 | 758,658 | |||||||||||||||
| Office | 752,705 | 769,112 | 695,552 | 637,707 | 626,151 | |||||||||||||||
| Industrial | 838,021 | 645,586 | 564,467 | 563,169 | 563,871 | |||||||||||||||
| Residential construction and land development | 159,946 | 157,576 | 171,949 | 160,426 | 153,510 | |||||||||||||||
| Other commercial real estate | 367,776 | 427,073 | 394,328 | 350,147 | 363,428 | |||||||||||||||
| Total commercial real estate | 3,793,598 | 3,581,966 | 3,370,507 | 3,259,033 | 3,235,067 | |||||||||||||||
| Residential mortgage: | ||||||||||||||||||||
| Permanent mortgage | 969,558 | 969,007 | 948,405 | 945,336 | 937,664 | |||||||||||||||
| Permanent mortgages guaranteed by U.S. government agencies | 190,309 | 192,732 | 197,350 | 196,937 | 192,712 | |||||||||||||||
| Home equity | 712,926 | 719,184 | 723,554 | 734,620 | 738,619 | |||||||||||||||
| Total residential mortgage | 1,872,793 | 1,880,923 | 1,869,309 | 1,876,893 | 1,868,995 | |||||||||||||||
| Personal | 678,232 | 587,423 | 494,325 | 552,697 | 465,957 | |||||||||||||||
| Total | $ | 16,464,786 | $ | 16,406,749 | $ | 16,022,566 | $ | 15,941,154 | $ | 15,367,441 | ||||||||||
| LOANS BY PRINCIPAL MARKET AREA -- UNAUDITED | |||||||||||||||||||
| BOK FINANCIAL CORPORATION | |||||||||||||||||||
| (in thousands) | |||||||||||||||||||
| Sept. 30, 2016 | June 30, 2016 | March 31, 2016 | Dec. 31, 2015 | Sept. 30, 2015 | |||||||||||||||
| Bank of Oklahoma: | |||||||||||||||||||
| Commercial | $ | 3,545,924 | $ | 3,698,215 | $ | 3,656,034 | $ | 3,782,687 | $ | 3,514,391 | |||||||||
| Commercial real estate | 795,806 | 781,458 | 747,689 | 739,829 | 677,372 | ||||||||||||||
| Residential mortgage | 1,401,166 | 1,415,766 | 1,411,409 | 1,409,114 | 1,405,235 | ||||||||||||||
| Personal | 271,420 | 246,229 | 204,158 | 255,387 | 185,463 | ||||||||||||||
| Total Bank of Oklahoma | 6,014,316 | 6,141,668 | 6,019,290 | 6,187,017 | 5,782,461 | ||||||||||||||
| Bank of Texas: | |||||||||||||||||||
| Commercial | 3,903,218 | 3,901,632 | 3,936,809 | 3,908,425 | 3,752,193 | ||||||||||||||
| Commercial real estate | 1,400,709 | 1,311,408 | 1,211,978 | 1,204,202 | 1,257,741 | ||||||||||||||
| Residential mortgage | 229,345 | 222,548 | 217,539 | 219,126 | 222,395 | ||||||||||||||
| Personal | 278,167 | 233,304 | 210,456 | 203,496 | 194,051 | ||||||||||||||
| Total Bank of Texas | 5,811,439 | 5,668,892 | 5,576,782 | 5,535,249 | 5,426,380 | ||||||||||||||
| Bank of Albuquerque: | |||||||||||||||||||
| Commercial | 398,147 | 398,427 | 402,082 | 375,839 | 368,027 | ||||||||||||||
| Commercial real estate | 299,785 | 322,956 | 323,059 | 313,422 | 312,953 | ||||||||||||||
| Residential mortgage | 110,478 | 114,226 | 117,655 | 120,507 | 121,232 | ||||||||||||||
| Personal | 11,333 | 10,569 | 10,823 | 11,557 | 10,477 | ||||||||||||||
| Total Bank of Albuquerque | 819,743 | 846,178 | 853,619 | 821,325 | 812,689 | ||||||||||||||
| Bank of Arkansas: | |||||||||||||||||||
| Commercial | 83,544 | 81,227 | 79,808 | 92,359 | 76,044 | ||||||||||||||
| Commercial real estate | 72,649 | 69,235 | 66,674 | 69,320 | 82,225 | ||||||||||||||
| Residential mortgage | 6,936 | 6,874 | 7,212 | 8,169 | 8,063 | ||||||||||||||
| Personal | 6,757 | 7,025 | 918 | 819 | 4,921 | ||||||||||||||
| Total Bank of Arkansas | 169,886 | 164,361 | 154,612 | 170,667 | 171,253 | ||||||||||||||
| Colorado State Bank & Trust: | |||||||||||||||||||
| Commercial | 1,013,314 | 1,076,620 | 1,030,348 | 987,076 | 1,029,694 | ||||||||||||||
| Commercial real estate | 254,078 | 237,569 | 219,078 | 223,946 | 229,835 | ||||||||||||||
| Residential mortgage | 59,838 | 59,425 | 52,961 | 53,782 | 50,138 | ||||||||||||||
| Personal | 42,901 | 35,064 | 24,497 | 23,384 | 30,683 | ||||||||||||||
| Total Colorado State Bank & Trust | 1,370,131 | 1,408,678 | 1,326,884 | 1,288,188 | 1,340,350 | ||||||||||||||
| Bank of Arizona: | |||||||||||||||||||
| Commercial | 680,447 | 670,814 | 656,527 | 606,733 | 608,235 | ||||||||||||||
| Commercial real estate | 726,542 | 639,112 | 605,383 | 507,523 | 482,918 | ||||||||||||||
| Residential mortgage | 39,206 | 38,998 | 40,338 | 44,047 | 41,722 | ||||||||||||||
| Personal | 31,205 | 24,248 | 18,372 | 31,060 | 17,609 | ||||||||||||||
| Total Bank of Arizona | 1,477,400 | 1,373,172 | 1,320,620 | 1,189,363 | 1,150,484 | ||||||||||||||
| Bank of Kansas City: | |||||||||||||||||||
| Commercial | 495,569 | 529,502 | 526,817 | 499,412 | 448,838 | ||||||||||||||
| Commercial real estate | 244,029 | 220,228 | 196,646 | 200,791 | 192,023 | ||||||||||||||
| Residential mortgage | 25,824 | 23,086 | 22,195 | 22,148 | 20,210 | ||||||||||||||
| Personal | 36,449 | 30,984 | 25,101 | 26,994 | 22,753 | ||||||||||||||
| Total Bank of Kansas City | 801,871 | 803,800 | 770,759 | 749,345 | 683,824 | ||||||||||||||
| TOTAL BOK FINANCIAL | $ | 16,464,786 | $ | 16,406,749 | $ | 16,022,566 | $ | 15,941,154 | $ | 15,367,441 | |||||||||
Loans attributed to a geographical region may not always represent the location of the borrower or the collateral.
| DEPOSITS BY PRINCIPAL MARKET AREA -- UNAUDITED | |||||||||||||||||||
| BOK FINANCIAL CORPORATION | |||||||||||||||||||
| (in thousands) | |||||||||||||||||||
| Sept. 30, 2016 | June 30, 2016 | March 31, 2016 | Dec. 31, 2015 | Sept. 30, 2015 | |||||||||||||||
| Bank of Oklahoma: | |||||||||||||||||||
| Demand | $ | 4,158,273 | $ | 4,020,181 | $ | 3,813,128 | $ | 4,133,520 | $ | 3,834,145 | |||||||||
| Interest-bearing: | |||||||||||||||||||
| Transaction | 5,701,983 | 5,741,302 | 5,706,067 | 5,971,819 | 5,783,258 | ||||||||||||||
| Savings | 242,959 | 247,984 | 246,122 | 226,733 | 225,580 | ||||||||||||||
| Time | 1,091,464 | 1,167,271 | 1,198,022 | 1,202,274 | 1,253,137 | ||||||||||||||
| Total interest-bearing | 7,036,406 | 7,156,557 | 7,150,211 | 7,400,826 | 7,261,975 | ||||||||||||||
| Total Bank of Oklahoma | 11,194,679 | 11,176,738 | 10,963,339 | 11,534,346 | 11,096,120 | ||||||||||||||
| Bank of Texas: | |||||||||||||||||||
| Demand | 2,734,981 | 2,677,253 | 2,571,883 | 2,627,764 | 2,689,493 | ||||||||||||||
| Interest-bearing: | |||||||||||||||||||
| Transaction | 2,240,040 | 2,035,634 | 2,106,905 | 2,132,099 | 1,996,223 | ||||||||||||||
| Savings | 84,642 | 83,862 | 83,263 | 77,902 | 74,674 | ||||||||||||||
| Time | 528,380 | 516,231 | 530,657 | 549,740 | 554,106 | ||||||||||||||
| Total interest-bearing | 2,853,062 | 2,635,727 | 2,720,825 | 2,759,741 | 2,625,003 | ||||||||||||||
| Total Bank of Texas | 5,588,043 | 5,312,980 | 5,292,708 | 5,387,505 | 5,314,496 | ||||||||||||||
| Bank of Albuquerque: | |||||||||||||||||||
| Demand | 584,681 | 530,853 | 557,200 | 487,286 | 520,785 | ||||||||||||||
| Interest-bearing: | |||||||||||||||||||
| Transaction | 555,326 | 573,690 | 560,684 | 563,723 | 529,862 | ||||||||||||||
| Savings | 54,480 | 49,200 | 47,187 | 43,672 | 41,380 | ||||||||||||||
| Time | 244,706 | 250,068 | 259,630 | 267,821 | 281,426 | ||||||||||||||
| Total interest-bearing | 854,512 | 872,958 | 867,501 | 875,216 | 852,668 | ||||||||||||||
| Total Bank of Albuquerque | 1,439,193 | 1,403,811 | 1,424,701 | 1,362,502 | 1,373,453 | ||||||||||||||
| Bank of Arkansas: | |||||||||||||||||||
| Demand | 32,203 | 30,607 | 31,318 | 27,252 | 25,397 | ||||||||||||||
| Interest-bearing: | |||||||||||||||||||
| Transaction | 313,480 | 278,335 | 265,803 | 202,857 | 290,728 | ||||||||||||||
| Savings | 2,051 | 1,853 | 1,929 | 1,747 | 1,573 | ||||||||||||||
| Time | 17,534 | 18,911 | 21,035 | 24,983 | 26,203 | ||||||||||||||
| Total interest-bearing | 333,065 | 299,099 | 288,767 | 229,587 | 318,504 | ||||||||||||||
| Total Bank of Arkansas | 365,268 | 329,706 | 320,085 | 256,839 | 343,901 | ||||||||||||||
| Colorado State Bank & Trust: | |||||||||||||||||||
| Demand | 517,063 | 528,124 | 413,506 | 497,318 | 430,675 | ||||||||||||||
| Interest-bearing: | |||||||||||||||||||
| Transaction | 623,055 | 625,240 | 610,077 | 616,697 | 655,206 | ||||||||||||||
| Savings | 31,613 | 31,509 | 33,108 | 31,927 | 31,398 | ||||||||||||||
| Time | 247,667 | 254,164 | 271,475 | 296,224 | 320,279 | ||||||||||||||
| Total interest-bearing | 902,335 | 910,913 | 914,660 | 944,848 | 1,006,883 | ||||||||||||||
| Total Colorado State Bank & Trust | 1,419,398 | 1,439,037 | 1,328,166 | 1,442,166 | 1,437,558 | ||||||||||||||
| Bank of Arizona: | |||||||||||||||||||
| Demand | 418,718 | 396,837 | 341,828 | 326,324 | 306,425 | ||||||||||||||
| Interest-bearing: | |||||||||||||||||||
| Transaction | 303,750 | 302,297 | 313,825 | 358,556 | 293,319 | ||||||||||||||
| Savings | 2,959 | 3,198 | 3,277 | 2,893 | 4,121 | ||||||||||||||
| Time | 27,935 | 28,681 | 29,053 | 29,498 | 26,750 | ||||||||||||||
| Total interest-bearing | 334,644 | 334,176 | 346,155 | 390,947 | 324,190 | ||||||||||||||
| Total Bank of Arizona | 753,362 | 731,013 | 687,983 | 717,271 | 630,615 | ||||||||||||||
| Bank of Kansas City: | |||||||||||||||||||
| Demand | 235,445 | 240,754 | 221,812 | 197,424 | 234,847 | ||||||||||||||
| Interest-bearing: | |||||||||||||||||||
| Transaction | 86,526 | 112,371 | 146,405 | 153,203 | 150,253 | ||||||||||||||
| Savings | 1,645 | 1,656 | 1,619 | 1,378 | 1,570 | ||||||||||||||
| Time | 11,945 | 11,735 | 31,502 | 35,524 | 36,630 | ||||||||||||||
| Total interest-bearing | 100,116 | 125,762 | 179,526 | 190,105 | 188,453 | ||||||||||||||
| Total Bank of Kansas City | 335,561 | 366,516 | 401,338 | 387,529 | 423,300 | ||||||||||||||
| TOTAL BOK FINANCIAL | $ | 21,095,504 | $ | 20,759,801 | $ | 20,418,320 | $ | 21,088,158 | $ | 20,619,443 | |||||||||
| NET INTEREST MARGIN TREND -- UNAUDITED | ||||||||||||||
| BOK FINANCIAL CORPORATION | ||||||||||||||
| Three Months Ended | ||||||||||||||
| Sept. 30, 2016 | June 30, 2016 | March 31, 2016 | Dec. 31, 2015 | Sept. 30, 2015 | ||||||||||
| TAX-EQUIVALENT ASSETS YIELDS | ||||||||||||||
| Interest-bearing cash and cash equivalents | 0.51 | % | 0.51 | % | 0.53 | % | 0.29 | % | 0.28 | % | ||||
| Trading securities | 2.71 | % | 1.89 | % | 2.47 | % | 2.86 | % | 2.70 | % | ||||
| Investment securities: | ||||||||||||||
| Taxable | 5.34 | % | 5.41 | % | 5.53 | % | 5.41 | % | 5.49 | % | ||||
| Tax-exempt | 2.26 | % | 2.25 | % | 2.22 | % | 1.53 | % | 1.54 | % | ||||
| Total investment securities | 3.51 | % | 3.52 | % | 3.51 | % | 3.03 | % | 3.04 | % | ||||
| Available for sale securities: | ||||||||||||||
| Taxable | 1.99 | % | 2.01 | % | 2.06 | % | 2.02 | % | 1.99 | % | ||||
| Tax-exempt | 5.47 | % | 5.06 | % | 4.95 | % | 4.22 | % | 4.15 | % | ||||
| Total available for sale securities | 2.01 | % | 2.04 | % | 2.08 | % | 2.04 | % | 2.01 | % | ||||
| Fair value option securities | 1.70 | % | 2.19 | % | 2.38 | % | 2.32 | % | 2.30 | % | ||||
| Restricted equity securities | 5.37 | % | 4.84 | % | 5.85 | % | 5.95 | % | 5.95 | % | ||||
| Residential mortgage loans held for sale | 3.28 | % | 3.53 | % | 3.75 | % | 3.85 | % | 3.79 | % | ||||
| Loans | 3.63 | % | 3.58 | % | 3.57 | % | 3.55 | % | 3.54 | % | ||||
| Allowance for loan losses | ||||||||||||||
| Loans, net of allowance | 3.69 | % | 3.63 | % | 3.63 | % | 3.60 | % | 3.59 | % | ||||
| Total tax-equivalent yield on earning assets | 2.93 | % | 2.91 | % | 2.92 | % | 2.86 | % | 2.83 | % | ||||
| COST OF INTEREST-BEARING LIABILITIES | ||||||||||||||
| Interest-bearing deposits: | ||||||||||||||
| Interest-bearing transaction | 0.14 | % | 0.14 | % | 0.14 | % | 0.09 | % | 0.08 | % | ||||
| Savings | 0.09 | % | 0.10 | % | 0.09 | % | 0.09 | % | 0.10 | % | ||||
| Time | 1.14 | % | 1.16 | % | 1.21 | % | 1.26 | % | 1.33 | % | ||||
| Total interest-bearing deposits | 0.32 | % | 0.33 | % | 0.34 | % | 0.32 | % | 0.34 | % | ||||
| Funds purchased | 0.19 | % | 0.19 | % | 0.27 | % | 0.11 | % | 0.08 | % | ||||
| Repurchase agreements | 0.04 | % | 0.05 | % | 0.05 | % | 0.04 | % | 0.03 | % | ||||
| Other borrowings | 0.57 | % | 0.57 | % | 0.56 | % | 0.38 | % | 0.30 | % | ||||
| Subordinated debt | 3.84 | % | 1.52 | % | 1.26 | % | 1.13 | % | 1.04 | % | ||||
| Total cost of interest-bearing liabilities | 0.44 | % | 0.41 | % | 0.40 | % | 0.34 | % | 0.32 | % | ||||
| Tax-equivalent net interest revenue spread | 2.49 | % | 2.50 | % | 2.52 | % | 2.52 | % | 2.51 | % | ||||
| Effect of noninterest-bearing funding sources and other | 0.15 | % | 0.13 | % | 0.13 | % | 0.12 | % | 0.10 | % | ||||
| Tax-equivalent net interest margin | 2.64 | % | 2.63 | % | 2.65 | % | 2.64 | % | 2.61 | % | ||||
Yield calculations are shown on a tax equivalent basis at the statutory federal and state rates for the periods presented. The yield calculations exclude security trades that have been recorded on trade date with no corresponding interest income and the unrealized gains and losses. The yield calculation also includes average loan balances for which the accrual of interest has been discontinued and are net of unearned income. Yield/rate calculations are generally based on the conventions that determine how interest income and expense is accrued.
| CREDIT QUALITY INDICATORS -- UNAUDITED | |||||||||||||||||||
| BOK FINANCIAL CORPORATION | |||||||||||||||||||
| (in thousands, except ratios) | |||||||||||||||||||
| Three Months Ended | |||||||||||||||||||
| Sept. 30, 2016 | June 30, 2016 | March 31, 2016 | Dec. 31, 2015 | Sept. 30, 2015 | |||||||||||||||
| Nonperforming assets: | |||||||||||||||||||
| Nonaccruing loans: | |||||||||||||||||||
| Commercial | $ | 176,464 | $ | 181,989 | $ | 174,652 | $ | 76,424 | $ | 33,798 | |||||||||
| Commercial real estate | 7,350 | 7,780 | 9,270 | 9,001 | 10,956 | ||||||||||||||
| Residential mortgage | 52,452 | 57,061 | 57,577 | 61,240 | 44,099 | ||||||||||||||
| Personal | 686 | 354 | 331 | 463 | 494 | ||||||||||||||
| Total nonaccruing loans | 236,952 | 247,184 | 241,830 | 147,128 | 89,347 | ||||||||||||||
| Accruing renegotiated loans guaranteed by U.S. government agencies | 80,306 | 78,806 | 77,597 | 74,049 | 81,598 | ||||||||||||||
| Real estate and other repossessed assets | 31,941 | 24,054 | 29,896 | 30,731 | 33,116 | ||||||||||||||
| Total nonperforming assets | $ | 349,199 | $ | 350,044 | $ | 349,323 | $ | 251,908 | $ | 204,061 | |||||||||
| Total nonperforming assets excluding those guaranteed by U.S. government agencies | $ | 253,461 | $ | 251,497 | $ | 252,176 | $ | 155,959 | $ | 118,578 | |||||||||
| Nonaccruing loans by loan class: | |||||||||||||||||||
| Commercial: | |||||||||||||||||||
| Energy | $ | 142,966 | $ | 168,145 | $ | 159,553 | $ | 61,189 | $ | 17,880 | |||||||||
| Services | 8,477 | 9,388 | 9,512 | 10,290 | 10,692 | ||||||||||||||
| Wholesale / retail | 2,453 | 2,772 | 3,685 | 2,919 | 3,058 | ||||||||||||||
| Manufacturing | 274 | 293 | 312 | 331 | 352 | ||||||||||||||
| Healthcare | 855 | 875 | 1,023 | 1,072 | 1,218 | ||||||||||||||
| Other commercial and industrial | 21,439 | 516 | 567 | 623 | 598 | ||||||||||||||
| Total commercial | 176,464 | 181,989 | 174,652 | 76,424 | 33,798 | ||||||||||||||
| Commercial real estate: | |||||||||||||||||||
| Residential construction and land development | 3,739 | 4,261 | 4,789 | 4,409 | 4,748 | ||||||||||||||
| Retail | 1,249 | 1,265 | 1,302 | 1,319 | 1,648 | ||||||||||||||
| Office | 882 | 606 | 629 | 651 | 684 | ||||||||||||||
| Multifamily | 51 | 65 | 250 | 274 | 185 | ||||||||||||||
| Industrial | 76 | 76 | 76 | 76 | 76 | ||||||||||||||
| Other commercial real estate | 1,353 | 1,507 | 2,224 | 2,272 | 3,615 | ||||||||||||||
| Total commercial real estate | 7,350 | 7,780 | 9,270 | 9,001 | 10,956 | ||||||||||||||
| Residential mortgage: | |||||||||||||||||||
| Permanent mortgage | 25,956 | 27,228 | 27,497 | 28,984 | 30,660 | ||||||||||||||
| Permanent mortgage guaranteed by U.S. government agencies | 15,432 | 19,741 | 19,550 | 21,900 | 3,885 | ||||||||||||||
| Home equity | 11,064 | 10,092 | 10,530 | 10,356 | 9,554 | ||||||||||||||
| Total residential mortgage | 52,452 | 57,061 | 57,577 | 61,240 | 44,099 | ||||||||||||||
| Personal | 686 | 354 | 331 | 463 | 494 | ||||||||||||||
| Total nonaccruing loans | $ | 236,952 | $ | 247,184 | $ | 241,830 | $ | 147,128 | $ | 89,347 | |||||||||
| Performing loans 90 days past due1 | $ | 3,839 | $ | 2,899 | $ | 8,019 | $ | 1,207 | $ | 101 | |||||||||
| Gross charge-offs | $ | (8,101 | ) | $ | (8,845 | ) | $ | (23,991 | ) | $ | (4,851 | ) | $ | (5,274 | ) | ||||
| Recoveries | 2,038 | 1,386 | 1,519 | 1,870 | 3,521 | ||||||||||||||
| Net charge-offs | $ | (6,063 | ) | $ | (7,459 | ) | $ | (22,472 | ) | $ | (2,981 | ) | $ | (1,753 | ) | ||||
| Provision for credit losses | $ | 10,000 | $ | 20,000 | $ | 35,000 | $ | 22,500 | $ | 7,500 | |||||||||
| Allowance for loan losses to period end loans | 1.49 | % | 1.48 | % | 1.46 | % | 1.41 | % | 1.33 | % | |||||||||
| Combined allowance for credit losses to period end loans | 1.56 | % | 1.54 | % | 1.50 | % | 1.43 | % | 1.35 | % | |||||||||
| Nonperforming assets to period end loans and repossessed assets | 2.12 | % | 2.13 | % | 2.18 | % | 1.58 | % | 1.33 | % | |||||||||
| Net charge-offs (annualized) to average loans | 0.15 | % | 0.18 | % | 0.56 | % | 0.08 | % | 0.05 | % | |||||||||
| Allowance for loan losses to nonaccruing loans1 | 110.65 | % | 106.95 | % | 104.89 | % | 180.09 | % | 238.84 | % | |||||||||
| Combined allowance for credit losses to nonaccruing loans1 | 115.67 | % | 110.93 | % | 107.87 | % | 181.46 | % | 243.05 | % | |||||||||
1 Excludes residential mortgage loans guaranteed by agencies of the U.S. government.