BOK Financial Reports Quarterly Earnings of $111 million or $1.54 Per Share

Tulsa, Oklahoma, UNITED STATES


TULSA, Okla., April 24, 2019 (GLOBE NEWSWIRE) --

CEO Commentary

Steven G. Bradshaw, president and chief executive officer, stated, “The first quarter was a great start to the year for BOK Financial, with continued growth in our loan portfolio led by our specialty lines of business, and re-energized activity in our brokerage and trading and mortgage businesses. These drivers, combined with diligent expense management, helped us maintain the growth trend established with our record year in 2018. The economy across the BOK Financial footprint is strong and the credit environment remains benign with no trouble spots on the horizon. We are optimistic about prospects for continued earnings growth through the remainder of 2019.”

Bradshaw added, "We are proud to have completed the last steps of the CoBiz systems integration this quarter and look forward to the cost savings and revenue growth envisioned when we announced the deal a mere ten months ago. As I've said previously, I believe the combination of CoBiz and BOK Financial creates the premier commercial bank in Colorado and Arizona and I look forward to our success in these markets for the balance of 2019 and beyond."

First Quarter 2019 Financial Highlights

  • Net income was $110.6 million or $1.54 per diluted share for the first quarter of 2019 and $108.5 million and $1.50 per diluted share for the fourth quarter of 2018. The first quarter included a 13 cent per share reduction as a result of CoBiz integration costs and the fourth quarter included a 15 cent per share reduction.
     
  • Net interest revenue totaled $278.1 million, a decrease of $7.6 million. Net interest margin decreased to 3.30 percent from 3.40 percent.
     
  • Fees and commissions revenue totaled $160.6 million, consistent with the fourth quarter of 2018.
     
  • Operating expense was relatively consistent at $287.2 million. The first quarter of 2019 included $12.7 million of integration costs, while the fourth quarter of 2018 included $14.5 million.
     
  • An $8.0 million provision for credit losses was recorded in the first quarter of 2019. The combined allowance for credit losses totaled $207 million or 0.95 percent of outstanding loans compared to $209 million or 0.97 percent in the previous quarter.
     
  • Average loans increased $187 million and period-end loans increased $102 million to $21.8 billion.
     
  • The Company repurchased 705,609 shares at an average price of $85.85 per share.

First Quarter 2019 Business Segment Highlights

Commercial Banking

  • Contributed $86.1 million to net income, an increase of $1.6 million over the prior quarter. Net interest revenue increased by $3.3 million to $151.6 million. This was partially offset by decreased fee revenue.

    Operating expenses decreased $1.5 million, split relatively evenly between personnel and non-personnel expenses.
  • Average loans grew $364 million to $16.0 billion.

Consumer Banking

  • Contributed $15.6 million to net income, an increase of $12.8 million compared to the fourth quarter. Net interest revenue increased $9.7 million. Operating expense decreased $2.6 million.

  • Implemented the strategic decision to exit our online lead buying business, HomeDirect, to focus on our in-house channel that provides higher margins and allows us to build long-term client relationships.

Wealth Management

  • Contributed $23.7 million to net income, an increase of $6.2 million compared to the prior quarter. Fees and commission revenue increased $5.6 million largely due to an increase in brokerage and trading revenue.

  • Assets under management or administration were $78.9 billion at March 31, 2019 compared to $76.3 billion at December 31, 2018. Fiduciary assets totaled $46.4 billion at March 31, 2019 and $44.8 billion at December 31, 2018.

Net Interest Revenue

Net interest revenue was $278.1 million for the first quarter of 2019, a $7.6 million decrease compared to the fourth quarter of 2018. Net interest margin was 3.30 percent for the first quarter of 2019, down 10 basis points compared to the previous quarter. A decrease in average non-interest bearing demand deposits and an increase in average trading securities and related receivables combined to decrease net interest revenue and to compress the net interest margin.

The decrease in non-interest bearing demand deposits appears to have been driven primarily by seasonal factors along with commercial customers putting their cash to use.

Due to the nature of the trading activity, much of the revenue associated with average trading assets is recognized as brokerage and trading revenue, rather than interest income, while all of the related funding costs remain in interest expense.

The yield on average earning assets was 4.46 percent, a 13 basis point increase. The yield on the loan portfolio was 5.26 percent, up 17 basis points primarily due to increases in short-term market interest rates. The yield on the available for sale securities portfolio increased 6 basis points to 2.57 percent. The yield on the trading securities portfolio was down 22 basis points.

Funding costs were 1.66 percent, up 24 basis points. The cost of interest-bearing deposits increased 17 basis points to 1.04 percent. The cost of other borrowed funds was up 21 basis points to 2.54 percent. The benefit to net interest margin from assets funded by non-interest liabilities was relatively unchanged at 50 basis points.

Average earning assets increased $675 million compared to the fourth quarter of 2018. Average loan balances were up $187 million. Available for sale securities increased $178 million. Fair value option securities balances increased $317 million. Trading securities balances increased $39 million. Average borrowed funds increased $1.5 billion and average interest-bearing deposit balances increased $180 million compared to the fourth quarter of 2018. In addition, receivables from unsettled securities sales, primarily related to our U.S. agency residential mortgage back trading operations, were up $425 million. Growth in these non-interest bearing receivables was funded by increased borrowings.

Fees and Commissions Revenue

Fees and commissions revenue totaled $160.6 million for the first quarter of 2019, consistent with the fourth quarter of 2018.

Brokerage and trading revenue increased $3.5 million due to increased trading volumes. Lower mortgage interest rates have led to an increase in mortgage applications, which has positively affected mortgage banking revenue. Mortgage banking revenue increased $2.0 million over the fourth quarter of 2018. Mortgage gain on sale margins increased 18 basis points.

Other revenue decreased $3.6 million, primarily due to a decrease in revenue earned on certain repossessed assets compared to the fourth quarter of 2018. In addition, service charges were reduced by $1.2 million, primarily due to two less days in the quarter compared to the fourth quarter of 2018.

Operating Expense

Total operating expense was $287.2 million for the first quarter of 2019, relatively consistent with the fourth quarter of 2018. CoBiz integration costs were $12.7 million in the first quarter of 2019 compared to $14.5 million in the fourth quarter of 2018. The following discussion excludes the impact of these costs.

Personnel expense increased $10.9 million. Personnel expenses related to CoBiz operations decreased $2.0 million compared to the prior quarter. Incentive compensation expense increased $9.6 million mainly due to changes in vesting assumptions related to the Company's earnings per share growth relative to a defined peer group. Employee benefits increased $1.9 million due to a seasonal increase in payroll taxes partially offset by a decrease in health care costs.

Non-personnel expense decreased $6.6 million. The fourth quarter of 2018 included a $2.8 million charitable donation to the BOKF Foundation. In addition, business promotion expense decreased $1.7 million and mortgage banking costs decreased $1.6 million, both due to seasonality. Professional fees and services decreased $1.0 million. These decreases were partially offset by an increase in data processing and communications expense of $3.0 million.

Loans, Deposits and Capital

Loans

Outstanding loans were $21.8 billion at March 31, 2019, up $102 million over December 31, 2018. Growth in outstanding commercial loan balances was partially offset by a decrease in commercial real estate loans.Loans

Outstanding commercial loan balances grew by $326 million or 2 percent over December 31, 2018. Energy loan balances were up $115 million, consistent with our ongoing support and commitment to the oil and gas industry. Healthcare sector loans increased by $117 million and wholesale/retail sector loans increased $86 million. This growth was partially offset by a $31 million decrease in other commercial and industrial loans.

Commercial real estate loan balances decreased $164 million or 3 percent compared to December 31, 2018 due to a cycle of pay-downs; however, commitment volume remains strong. Loans secured by multifamily residential properties decreased $78 million. Loans secured by office buildings decreased $40 million and loans secured by retail facilities decreased $28 million.

Deposits

Period-end deposits totaled $25.3 billion at March 31, 2019, a $68 million increase compared to December 31, 2018. Demand deposit balances decreased $318 million. Interest-bearing transaction account balances increased $270 million. Time deposit balances increased by $85 million.

Capital

The company's common equity Tier 1 capital ratio was 10.71 percent at March 31, 2019. In addition, the company's Tier 1 capital ratio was 10.71 percent, total capital ratio was 12.24 percent, and leverage ratio was 8.76 percent at March 31, 2019. At December 31, 2018, the company's common equity Tier 1 capital ratio was 10.92 percent, Tier 1 capital ratio was 10.92 percent, total capital ratio was 12.50 percent, and leverage ratio was 8.96 percent.

The company's tangible common equity ratio, a non-GAAP measure, was 8.64 percent at March 31, 2019 and 8.82 percent at December 31, 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 $262 million or 1.20 percent of outstanding loans and repossessed assets at March 31, 2019, compared to $267 million or 1.23 percent at December 31, 2018. Nonperforming assets that are not guaranteed by U.S. government agencies totaled $163 million or 0.75 percent of outstanding loans and repossessed assets at March 31, 2019, compared to $174 million or 0.81 percent at December 31, 2018.

Nonaccruing loans were $153 million or 0.70 percent of outstanding loans at March 31, 2019. Nonaccruing commercial loans totaled $90 million or 0.65 percent of outstanding commercial loans.  Nonaccruing commercial real estate loans totaled $22 million or 0.47 percent of outstanding commercial real estate loans. Nonaccruing residential mortgage loans totaled $40 million or 1.84 percent of outstanding residential mortgage loans.

Nonaccruing loans decreased $11 million from December 31, 2018, primarily due to a $12 million decrease in energy loans. Healthcare sector loans increased $2.2 million. New nonaccruing loans identified in the first quarter totaled $27 million, offset by $22 million in payments received and $12 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 $169 million at March 31, compared to $215 million at December 31. The decrease was primarily due to a $24 million decrease in healthcare sector loans, a $7.5 million decrease in permanent residential mortgage loans and a $5.3 million decrease in energy loans.

Net charge-offs were $10.1 million or 0.19 percent of average loans on an annualized basis for the first quarter of 2019, compared to $12.3 million or 0.23 percent of average loans on an annualized basis for the fourth quarter of 2018. Net charge-offs were 0.23 percent of average loans over the last four quarters. Net charge-offs for the first quarter were primarily related to a single energy production borrower and a single healthcare borrower, both of which had previously been identified as impaired and appropriately reserved. Gross charge-offs were $11.8 million for the first quarter compared to $14.5 million for the previous quarter. Recoveries totaled $1.7 million for the first quarter of 2019 and $2.2 million for the fourth 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 an $8.0 million provision for credit losses was appropriate for the first quarter of 2019. The company recorded a $9.0 million provision for credit losses in the fourth quarter of 2018.

The combined allowance for credit losses totaled $207 million or 0.95 percent of outstanding loans and 142 percent of nonaccruing loans at March 31, 2019, excluding residential mortgage loans guaranteed by U.S. government agencies. Excluding loans acquired in the CoBiz acquisition, which are measured at acquisition-date fair value, the combined allowance for loan losses was 1.09 percent of outstanding loans and 159 percent of nonaccruing loans at March 31, 2019 compared to 1.12 percent of outstanding loans and 146 percent of nonaccruing loans at December 31, 2018. The allowance for loan losses was $205 million and the accrual for off-balance sheet credit losses was $1.8 million. At December 31, 2018, the combined allowance for credit losses was $209 million or 0.97 percent of outstanding loans and 134 percent of nonaccruing loans, excluding loans guaranteed by U.S. government agencies. The allowance for loan losses was $207 million and the accrual for off-balance sheet credit losses was $1.8 million.

Securities and Derivatives

The fair value of the available for sale securities portfolio totaled $9.0 billion at March 31, 2019, a $168 million increase compared to December 31, 2018. At March 31, 2019, the available for sale securities portfolio consisted primarily of $6.0 billion of residential mortgage-backed securities fully backed by U.S. government agencies and $2.9 billion of commercial mortgage-backed securities fully backed by U.S. government agencies. At March 31, 2019, the available for sale securities portfolio had a net unrealized loss of $2.6 million compared to a $95 million net unrealized loss at December 31, 2018.

Trading securities increased $183 million to $2.1 billion during the first quarter of 2019. The company holds an inventory of securities, predominately composed of U.S. agency residential mortgage-backed 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 $5.4 million during the first quarter of 2019, including a $20.7 million decrease in the fair value of mortgage servicing rights, a $14.1 million increase in the fair value of securities and derivative contracts held as an economic hedge, and $1.1 million of related net interest revenue.

Commercial Banking 

Net income for Commercial Banking was $86.1 million for the first quarter of 2019, an increase of $1.6 million over the fourth quarter of 2018. Increased net interest revenue was partially offset by decreased fee revenue.

Average loans increased $364 million or 2 percent. Average customer deposits were $8.3 billion, a decrease of $131 million or 2 percent. We continue to see a shift in the deposit mix with demand deposit balances declining $411 million and interest-bearing transaction deposits increasing $277 million.

Operating revenue decreased $1.8 million, partially offset by a decrease in operating expenses of $1.5 million.

Consumer Banking

Net income from Consumer Banking was $15.6 million in the first quarter of 2019, an increase of $12.8 million.

Net interest revenue from Consumer Banking activities increased $9.7 million, primarily due to increased yields on deposits sold to our Funds Management unit as consumer deposits are more valuable in a rising rate environment. In addition, lower recent interest rates have spurred mortgage application volume in the first quarter of 2019. Average loans and average deposits were both relatively consistent with the fourth quarter of 2018.

Revenues from mortgage banking activities increased $1.9 million over the prior quarter due to lower interest rates. Mortgage production volume increased $153 million or 33 percent and gain on sale margins climbed to 1.28 percent from 1.10 percent. Deposit service charges declined $1.6 million due to two less days in the quarter compared to the previous quarter.

Operating expenses decreased $2.6 million. A $4.1 million decrease in non-personnel expenses was partially offset by an increase of $1.6 million in personnel expenses. In the first quarter of 2019, we made the decision to exit our lower margin online lead buying business, HomeDirect, to focus on our core competency of developing complete, long-term relationships with our clients.

The net economic cost of the changes in fair value of mortgage servicing rights and related economic hedges was $5.4 million for the first quarter of 2019 compared to $11.7 million for the fourth quarter of 2018.

Wealth Management

Net income for Wealth Management increased $6.2 million to $23.7 million during the first quarter of 2019. While fiduciary fees and commissions remained consistent with the fourth quarter of 2018, we saw an increase of $6.4 million in brokerage and trading revenue. This increase was partially offset by a decrease in interest received on trading securities and increase in funding costs. Operating expenses decreased $3.0 million, including $2.0 million related to personnel expenses and $1.1 million related to other operating expenses. Personnel expenses decreased primarily due to retention incentives accrued in the fourth quarter.

Average loans were stable at $1.4 billion. Average deposits increased $176 million to $5.7 billion, primarily due to an increase in interest-bearing transaction account balances. Assets under management or administration were $78.9 billion at March 31, 2019 compared to $76.3 billion at December 31, 2018. Fiduciary assets totaled $46.4 billion at March 31, 2019 and $44.8 billion at December 31, 2018.

Conference Call and Webcast

The company will hold a conference call at 9 a.m. Central time on Wednesday, April 24, 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 # 13689382.

About BOK Financial Corporation

BOK Financial Corporation is a $40 billion regional financial services company headquartered in Tulsa, Oklahoma with $79 billion in assets under management and administration. The company's stock is publicly traded on NASDAQ under the Global Select market listings (BOKF). BOK Financial Corporation's holdings include BOKF, NA; BOK Financial Securities, Inc., The Milestone Group, Inc., CoBiz Wealth, LLC and BOK Financial Insurance, Inc. BOKF, NA operates TransFund, Cavanal Hill Investment Management and BOK Financial Asset Management, Inc. BOKF, NA operates banking divisions across eight states as: Bank of Albuquerque; Bank of Arkansas; Bank of Oklahoma; Bank of Texas; BOK Financial in Colorado and Arizona; and Mobank in Kansas and Missouri; as well as having limited purpose offices in Nebraska, Milwaukee and Connecticut. Through its subsidiaries, BOK Financial Corporation provides commercial and consumer banking, brokerage trading, investment, trust and insurance services, mortgage origination and servicing, and an electronic funds transfer network. For more information, visit www.bokf.com.

The company will continue to evaluate critical assumptions and estimates, such as the appropriateness of the allowance for credit losses and asset impairment as of March 31, 2019 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 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.


BALANCE SHEETS -- UNAUDITED
BOK FINANCIAL CORPORATION
(In thousands)
 Mar. 31, 2019 Dec. 31, 2018
ASSETS   
Cash and due from banks$718,297  $741,749 
Interest-bearing cash and cash equivalents564,404  401,675 
Trading securities2,140,326  1,956,923 
Investment securities331,466  355,187 
Available for sale securities9,025,198  8,857,120 
Fair value option securities707,994  283,235 
Restricted equity securities376,429  344,447 
Residential mortgage loans held for sale160,157  149,221 
Loans:   
Commercial13,961,975  13,636,078 
Commercial real estate4,600,651  4,764,813 
Residential mortgage2,192,620  2,230,033 
Personal1,003,734  1,025,806 
Total loans21,758,980  21,656,730 
Allowance for loan losses(205,340) (207,457)
Loans, net of allowance21,553,640  21,449,273 
Premises and equipment, net468,293  330,033 
Receivables224,887  204,960 
Goodwill1,048,091  1,049,263 
Intangible assets, net129,482  134,849 
Mortgage servicing rights238,193  259,254 
Real estate and other repossessed assets, net17,139  17,487 
Derivative contracts, net359,223  320,929 
Cash surrender value of bank-owned life insurance384,174  381,608 
Receivable on unsettled securities sales966,455  336,400 
Other assets469,114  446,891 
TOTAL ASSETS$39,882,962  $38,020,504 
    
LIABILITIES AND EQUITY   
Deposits:   
Demand$10,096,552  $10,414,592 
Interest-bearing transaction12,476,977  12,206,576 
Savings559,884  529,215 
Time2,198,389  2,113,380 
Total deposits25,331,802  25,263,763 
Funds purchased and repurchase agreements1,439,673  1,018,411 
Other borrowings7,341,093  6,124,390 
Subordinated debentures275,880  275,913 
Accrued interest, taxes and expense173,434  192,826 
Due on unsettled securities purchases186,401  156,370 
Derivative contracts, net299,698  362,306 
Other liabilities303,272  183,480 
TOTAL LIABILITIES35,351,253  33,577,459 
Shareholders' equity:   
Capital, surplus and retained earnings4,526,404  4,504,694 
Accumulated other comprehensive loss(3,531) (72,585)
TOTAL SHAREHOLDERS' EQUITY4,522,873  4,432,109 
Non-controlling interests8,836  10,936 
TOTAL EQUITY4,531,709  4,443,045 
TOTAL LIABILITIES AND EQUITY$39,882,962  $38,020,504 

 

AVERAGE BALANCE SHEETS -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands)
 Three Months Ended
 Mar. 31, 2019 Dec. 31, 2018 Sept. 30, 2018 June 30, 2018 Mar. 31, 2018
ASSETS         
Interest-bearing cash and cash equivalents$537,903  $563,132  $688,872  $1,673,387  $2,059,517 
Trading securities1,968,399  1,929,601  1,762,794  1,482,302  933,404 
Investment securities343,282  364,737  379,566  399,088  441,207 
Available for sale securities8,883,054  8,704,963  8,129,214  8,163,142  8,236,938 
Fair value option securities594,349  277,575  469,398  487,192  626,251 
Restricted equity securities395,432  362,729  328,842  348,546  349,176 
Residential mortgage loans held for sale145,040  179,553  207,488  218,600  199,380 
Loans:         
Commercial13,966,521  13,587,344  11,484,200  11,189,899  10,871,569 
Commercial real estate4,602,149  4,747,784  3,774,470  3,660,166  3,491,335 
Residential mortgage2,193,334  2,222,063  1,956,089  1,915,015  1,937,198 
Personal1,004,061  1,022,140  989,026  986,162  961,379 
Total loans21,766,065  21,579,331  18,203,785  17,751,242  17,261,481 
Allowance for loan losses(206,092) (209,613) (214,160) (222,856) (228,996)
Total loans, net21,559,973  21,369,718  17,989,625  17,528,386  17,032,485 
Total earning assets34,427,432  33,752,008  29,955,799  30,300,643  29,878,358 
Cash and due from banks705,411  731,700  578,905  571,333  564,585 
Derivative contracts, net262,927  299,319  294,126  318,375  278,694 
Cash surrender value of bank-owned life insurance382,538  379,893  322,038  319,507  317,334 
Receivable on unsettled securities sales1,224,700  799,548  768,785  618,240  998,803 
Other assets2,669,673  2,423,275  1,776,164  1,777,937  1,687,178 
TOTAL ASSETS$39,672,681  $38,385,743  $33,695,817  $33,906,035  $33,724,952 
          
LIABILITIES AND EQUITY         
Deposits:         
Demand$9,988,088  $10,648,683  $9,325,002  $9,223,327  $9,151,272 
Interest-bearing transaction11,931,539  11,773,651  10,010,031  10,189,354  10,344,469 
Savings541,575  526,275  503,821  503,671  480,110 
Time2,153,277  2,146,786  2,097,441  2,138,880  2,151,044 
Total deposits24,614,479  25,095,395  21,936,295  22,055,232  22,126,895 
Funds purchased and repurchase agreements2,033,036  1,205,568  1,193,583  593,250  532,412 
Other borrowings7,040,279  6,361,141  5,765,440  6,497,020  6,326,967 
Subordinated debentures275,882  276,378  144,702  144,692  144,682 
Derivative contracts, net273,786  268,848  185,029  235,543  223,373 
Due on unsettled securities purchases453,937  493,887  544,263  527,804  558,898 
Other liabilities501,788  341,438  311,605  340,322  333,151 
TOTAL LIABILITIES35,193,187  34,042,655  30,080,917  30,393,863  30,246,378 
Total equity4,479,494  4,343,088  3,614,900  3,512,172  3,478,574 
TOTAL LIABILITIES AND EQUITY$39,672,681  $38,385,743  $33,695,817  $33,906,035  $33,724,952 

 

STATEMENTS OF EARNINGS -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands, except per share data)
 Three Months Ended
 March 31,
 2019 2018
    
Interest revenue$376,074  $265,407 
Interest expense97,972  45,671 
Net interest revenue278,102  219,736 
Provision for credit losses8,000  (5,000)
Net interest revenue after provision for credit losses270,102  224,736 
Other operating revenue:   
Brokerage and trading revenue31,617  30,648 
Transaction card revenue20,738  20,990 
Fiduciary and asset management revenue43,358  41,832 
Deposit service charges and fees28,243  27,161 
Mortgage banking revenue23,834  26,025 
Other revenue12,762  12,958 
Total fees and commissions160,552  159,614 
Other gains (losses), net2,976  (1,292)
Gain (loss) on derivatives, net4,667  (5,685)
Gain (loss) on fair value option securities, net9,665  (17,564)
Change in fair value of mortgage servicing rights(20,666) 21,206 
Gain (loss) on available for sale securities, net76  (290)
Total other operating revenue157,270  155,989 
Other operating expense:   
Personnel169,228  139,947 
Business promotion7,874  6,010 
Professional fees and services16,139  10,200 
Net occupancy and equipment29,521  24,046 
Insurance4,839  6,593 
Data processing and communications31,449  27,817 
Printing, postage and supplies4,885  4,089 
Net losses and operating expenses of repossessed assets1,996  7,705 
Amortization of intangible assets5,191  1,300 
Mortgage banking costs9,906  10,149 
Other expense6,129  6,574 
Total other operating expense287,157  244,430 
    
Net income before taxes140,215  136,295 
Federal and state income taxes29,950  30,948 
    
Net income110,265  105,347 
Net loss attributable to non-controlling interests(347) (215)
Net income attributable to BOK Financial Corporation shareholders$110,612  $105,562 
    
Average shares outstanding:   
Basic71,387,070  64,847,334 
Diluted71,404,388  64,888,033 
    
Net income per share:   
Basic$1.54  $1.61 
Diluted$1.54  $1.61 

 

FINANCIAL HIGHLIGHTS -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands, except ratio and share data)
 Three Months Ended
 Mar. 31, 2019 Dec. 31, 2018 Sept. 30, 2018 June 30, 2018 Mar. 31, 2018
Capital:         
Period-end shareholders' equity$4,522,873  $4,432,109  $3,615,032  $3,553,431  $3,495,029 
Risk weighted assets$31,601,558  $30,742,295  $27,398,072  $27,004,559  $26,025,660 
Risk-based capital ratios:         
Common equity tier 110.71% 10.92% 12.07% 11.92% 12.06%
Tier 110.71% 10.92% 12.07% 11.92% 12.06%
Total capital12.24% 12.50% 13.37% 13.26% 13.49%
Leverage ratio8.76% 8.96% 9.90% 9.57% 9.40%
Tangible common equity ratio18.64% 8.82% 9.55% 9.21% 9.18%
          
Common stock:         
Book value per share$63.30  $61.45  $55.25  $54.30  $53.39 
Tangible book value per share46.82  45.03  47.90  46.95  46.10 
Market value per share:         
High$93.72  $98.29  $105.22  $106.65  $107.00 
Low$72.11  $69.96  $92.40  $92.39  $89.82 
Cash dividends paid$35,885  $35,977  $32,591  $29,340  $29,342 
Dividend payout ratio32.44% 33.17% 27.79% 25.65% 27.80%
Shares outstanding, net71,449,982  72,122,932  65,434,258  65,439,090  65,459,505 
Stock buy-back program:         
Shares repurchased705,609  525,000    8,257  82,583 
Amount$60,577  $45,057  $  $824  $7,584 
Average price per share$85.85  $85.82  $  $99.84  $91.83 
          
Performance ratios (quarter annualized):
Return on average assets1.13% 1.12% 1.38% 1.35% 1.27%
Return on average equity10.04% 9.93% 12.95% 13.14% 12.39%
Net interest margin3.30% 3.40% 3.21% 3.17% 2.99%
Efficiency ratio64.80% 63.25% 61.60% 61.77% 64.98%
          
Reconciliation of non-GAAP measures:
1  Tangible common equity ratio:         
Total shareholders' equity$4,522,873  $4,432,109  $3,615,032  $3,553,431  $3,495,029 
Less: Goodwill and intangible assets, net1,177,573  1,184,112  480,800  481,366  477,088 
Tangible common equity$3,345,300  $3,247,997  $3,134,232  $3,072,065  $3,017,941 
          
Total assets$39,882,962  $38,020,504  $33,289,864  $33,833,107  $33,361,492 
Less: Goodwill and intangible assets, net1,177,573  1,184,112  480,800  481,366  477,088 
Tangible assets$38,705,389  $36,836,392  $32,809,064  $33,351,741  $32,884,404 
          
Tangible common equity ratio8.64% 8.82% 9.55% 9.21% 9.18%
          
Other data:         
Fiduciary assets$46,401,149  $44,841,339  $45,560,107  $46,531,900  $46,648,290 
Tax equivalent interest$3,148  $3,067  $1,894  $1,983  $2,010 
Net unrealized loss on available for sale securities$(2,609) $(95,271) $(216,793) $(180,602) $(148,247)
          
          
 

 
         
Mortgage banking:         
Mortgage production revenue$7,868  $5,073  $7,250  $9,915  $9,452 
          
Mortgage loans funded for sale$510,527  $497,353  $651,076  $773,910  $664,958 
Add: current period-end outstanding commitments263,434  160,848  197,752  251,231  298,318 
Less: prior period end outstanding commitments160,848  197,752  251,231  298,318  222,919 
Total mortgage production volume$613,113  $460,449  $597,597  $726,823  $740,357 
          
Mortgage loan refinances to mortgage loans funded for sale30% 23% 23% 22% 42%
Gain on sale margin1.28% 1.10% 1.21% 1.36% 1.28%
          
Mortgage servicing revenue$15,966  $16,807  $16,286  $16,431  $16,573 
Average outstanding principal balance of mortgage loans serviced for others21,581,835  21,706,541  21,895,041  21,986,065  22,027,726 
Average mortgage servicing revenue rates0.30% 0.31% 0.30% 0.30% 0.31%
          
Gain (loss) on mortgage servicing rights, net of economic hedge:
Gain (loss) on mortgage hedge derivative contracts, net$4,432  $12,162  $(2,843) $(3,070) $(5,698)
Gain (loss) on fair value option securities, net9,665  (282) (4,385) (3,341) (17,564)
Gain (loss) on economic hedge of mortgage servicing rights14,097  11,880  (7,228) (6,411) (23,262)
Gain (loss) on changes in fair value of mortgage servicing rights(20,666) (24,233) 5,972  1,723  21,206 
Loss on changes in fair value of mortgage servicing rights, net of economic hedges, included in other operating revenue(6,569) (12,353) (1,256) (4,688) (2,056)
Net interest revenue on fair value option securities21,129  695  1,100  1,203  1,800 
Total economic cost of changes in the fair value of mortgage servicing rights, net of economic hedges$(5,440) $(11,658) $(156) $(3,485) $(256)

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

 

QUARTERLY EARNINGS TREND -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands, except ratio and per share data)
 Three Months Ended
 Mar. 31, 2019 Dec. 31, 2018 Sept. 30, 2018 June 30, 2018 Mar. 31, 2018
          
Interest revenue$376,074  $365,592  $303,247  $294,180  $265,407 
Interest expense97,972  79,906  62,364  55,618  45,671 
Net interest revenue278,102  285,686  240,883  238,562  219,736 
Provision for credit losses8,000  9,000  4,000    (5,000)
Net interest revenue after provision for credit losses270,102  276,686  236,883  238,562  224,736 
Other operating revenue:         
Brokerage and trading revenue31,617  28,101  23,086  26,488  30,648 
Transaction card revenue20,738  20,664  21,396  20,975  20,990 
Fiduciary and asset management revenue43,358  43,665  57,514  41,692  41,832 
Deposit service charges and fees28,243  29,393  27,765  27,834  27,161 
Mortgage banking revenue23,834  21,880  23,536  26,346  26,025 
Other revenue12,762  16,404  12,900  13,923  12,958 
Total fees and commissions160,552  160,107  166,197  157,258  159,614 
Other gains (losses), net2,976  (8,305) 2,754  4,578  (1,292)
Gain (loss) on derivatives, net4,667  11,167  (2,847) (3,057) (5,685)
Gain (loss) on fair value option securities, net9,665  (282) (4,385) (3,341) (17,564)
Change in fair value of mortgage servicing rights(20,666) (24,233) 5,972  1,723  21,206 
Gain (loss) on available for sale securities, net76  (1,999) 250  (762) (290)
Total other operating revenue157,270  136,455  167,941  156,399  155,989 
Other operating expense:         
Personnel169,228  160,706  143,531  138,947  139,947 
Business promotion7,874  9,207  7,620  7,686  6,010 
Charitable contributions to BOKF Foundation  2,846       
Professional fees and services16,139  20,712  13,209  14,978  10,200 
Net occupancy and equipment29,521  27,780  23,394  22,761  24,046 
Insurance4,839  4,248  6,232  6,245  6,593 
Data processing and communications31,449  27,575  31,665  27,739  27,817 
Printing, postage and supplies4,885  5,232  3,837  4,011  4,089 
Net losses and operating expenses of repossessed assets1,996  2,581  4,044  2,722  7,705 
Amortization of intangible assets5,191  5,331  1,603  1,386  1,300 
Mortgage banking costs9,906  11,518  11,741  12,890  10,149 
Other expense6,129  6,907  5,741  7,111  6,574 
Total other operating expense287,157  284,643  252,617  246,476  244,430 
Net income before taxes140,215  128,498  152,207  148,485  136,295 
Federal and state income taxes29,950  20,121  34,662  33,330  30,948 
Net income110,265  108,377  117,545  115,155  105,347 
Net income (loss) attributable to non-controlling interests(347) (79) 289  783  (215)
Net income attributable to BOK Financial Corporation shareholders$110,612  $108,456  $117,256  $114,372  $105,562 
          
Average shares outstanding:         
Basic71,387,070  71,808,029  64,901,095  64,901,975  64,847,334 
Diluted71,404,388  71,833,334  64,934,351  64,937,226  64,888,033 
Net income per share:         
Basic$1.54  $1.50  $1.79  $1.75  $1.61 
Diluted$1.54  $1.50  $1.79  $1.75  $1.61 

 

LOANS TREND -- UNAUDITED
BOK FINANCIAL CORPORATION
(In thousands)
  Mar. 31, 2019 Dec. 31, 2018 Sept. 30, 2018 June 30, 2018 Mar. 31, 2018
Commercial:          
Energy $3,705,099  $3,590,333  $3,294,867  $3,147,219  $2,969,618 
Services 3,287,563  3,258,192  2,603,862  2,516,676  2,488,065 
Healthcare 2,915,885  2,799,277  2,437,323  2,353,722  2,359,928 
Wholesale/retail 1,706,900  1,621,158  1,650,729  1,699,554  1,531,576 
Public finance 803,083  804,550  418,578  433,408  445,814 
Manufacturing 742,374  730,521  660,582  647,816  559,695 
Other commercial and industrial 801,071  832,047  510,160  550,644  564,971 
Total commercial 13,961,975  13,636,078  11,576,101  11,349,039  10,919,667 
           
Commercial real estate:          
Multifamily 1,210,358  1,288,065  1,120,166  1,056,984  1,008,903 
Office 1,033,158  1,072,920  824,829  820,127  737,144 
Retail 890,685  919,082  759,423  768,024  750,396 
Industrial 767,757  778,106  696,774  653,384  613,608 
Residential construction and land development 149,686  148,584  101,872  118,999  117,458 
Other commercial real estate 549,007  558,056  301,611  294,702  279,273 
Total commercial real estate 4,600,651  4,764,813  3,804,675  3,712,220  3,506,782 
           
Residential mortgage:          
Permanent mortgage 1,098,481  1,122,610  1,094,926  1,068,412  1,047,785 
Permanent mortgages guaranteed by U.S. government agencies 193,308  190,866  180,718  169,653  177,880 
Home equity 900,831  916,557  696,098  704,185  720,104 
Total residential mortgage 2,192,620  2,230,033  1,971,742  1,942,250  1,945,769 
           
Personal 1,003,734  1,025,806  996,941  1,000,187  965,632 
           
Total $21,758,980  $21,656,730  $18,349,459  $18,003,696  $17,337,850 

 

LOANS BY PRINCIPAL MARKET AREA -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands)
 Mar. 31, 2019 Dec. 31, 2018 Sept. 30, 2018 June 30, 2018 Mar. 31, 2018
          
Oklahoma:         
Commercial$3,551,054  $3,491,117  $3,609,109  $3,465,407  $3,265,013 
Commercial real estate665,190  700,756  651,315  662,665  668,031 
Residential mortgage1,417,381  1,440,566  1,429,843  1,403,658  1,419,281 
Personal374,807  375,543  376,201  362,846  353,128 
Total Oklahoma6,008,432  6,007,982  6,066,468  5,894,576  5,705,453 
          
Texas:         
Commercial5,754,018  5,438,133  5,115,646  4,922,451  4,715,841 
Commercial real estate1,344,810  1,341,783  1,354,679  1,336,101  1,254,421 
Residential mortgage265,927  266,805  253,265  243,400  229,761 
Personal396,794  394,743  381,452  394,021  363,608 
Total Texas7,761,549  7,441,464  7,105,042  6,895,973  6,563,631 
          
New Mexico:         
Commercial342,915  340,489  325,048  305,167  315,701 
Commercial real estate371,416  383,670  392,494  386,878  348,485 
Residential mortgage85,326  87,346  88,110  90,581  93,490 
Personal11,065  10,662  11,659  11,107  11,667 
Total New Mexico810,722  822,167  817,311  793,733  769,343 
          
Arkansas:         
Commercial79,286  111,338  102,237  93,217  94,430 
Commercial real estate142,551  141,898  106,701  90,807  88,700 
Residential mortgage7,731  7,537  7,278  6,927  7,033 
Personal11,550  11,955  12,126  12,331  9,916 
Total Arkansas241,118  272,728  228,342  203,282  200,079 
          
Colorado:         
Commercial2,231,703  2,275,069  1,132,500  1,165,721  1,180,655 
Commercial real estate957,348  963,575  354,543  267,065  210,801 
Residential mortgage241,722  251,849  68,694  64,839  64,530 
Personal65,812  72,916  56,999  60,504  63,118 
Total Colorado3,496,585  3,563,409  1,612,736  1,558,129  1,519,104 
          
Arizona:         
Commercial1,335,140  1,320,139  621,658  681,852  624,106 
Commercial real estate791,466  889,903  666,562  710,784  672,319 
Residential mortgage98,973  97,959  44,659  47,010  39,227 
Personal61,875  68,546  67,280  65,541  57,023 
Total Arizona2,287,454  2,376,547  1,400,159  1,505,187  1,392,675 
          
Kansas/Missouri:         
Commercial667,859  659,793  669,903  715,224  723,921 
Commercial real estate327,870  343,228  278,381  257,920  264,025 
Residential mortgage75,560  77,971  79,893  85,835  92,447 
Personal81,831  91,441  91,224  93,837  107,172 
Total Kansas/Missouri1,153,120  1,172,433  1,119,401  1,152,816  1,187,565 
          
TOTAL BOK FINANCIAL$21,758,980  $21,656,730  $18,349,459  $18,003,696  $17,337,850 

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)
 Mar. 31, 2019 Dec. 31, 2018 Sept. 30, 2018 June 30, 2018 Mar. 31, 2018
Oklahoma:         
  Demand$3,432,239  $3,610,593  $3,564,307  $3,867,934  $4,201,843 
  Interest-bearing:         
  Transaction6,542,548  6,445,831  6,010,972  5,968,459  6,051,301 
  Savings309,875  288,210  288,080  289,202  289,351 
  Time1,217,371  1,118,643  1,128,810  1,207,471  1,203,534 
  Total interest-bearing8,069,794  7,852,684  7,427,862  7,465,132  7,544,186 
Total Oklahoma11,502,033  11,463,277  10,992,169  11,333,066  11,746,029 
          
Texas:         
  Demand2,966,743  3,291,433  3,357,669  3,321,980  3,019,483 
  Interest-bearing:         
  Transaction2,385,305  2,295,169  2,182,114  2,169,155  2,208,892 
  Savings101,849  99,624  97,909  97,809  98,852 
  Time419,269  423,880  453,119  445,500  475,967 
  Total interest-bearing2,906,423  2,818,673  2,733,142  2,712,464  2,783,711 
Total Texas5,873,166  6,110,106  6,090,811  6,034,444  5,803,194 
          
New Mexico:         
  Demand662,362  691,692  722,188  770,974  695,060 
  Interest-bearing:         
  Transaction573,203  571,347  593,760  586,593  555,414 
  Savings61,497  58,194  57,794  59,415  60,596 
  Time228,212  224,515  221,513  212,689  216,306 
  Total interest-bearing862,912  854,056  873,067  858,697  832,316 
Total New Mexico1,525,274  1,545,748  1,595,255  1,629,671  1,527,376 
          
Arkansas:         
  Demand31,624  36,800  36,579  39,896  35,291 
  Interest-bearing:         
  Transaction147,964  91,593  128,001  143,298  94,206 
  Savings1,785  1,632  1,826  1,885  1,960 
  Time8,321  8,726  10,214  10,771  11,878 
  Total interest-bearing158,070  101,951  140,041  155,954  108,044 
Total Arkansas189,694  138,751  176,620  195,850  143,335 
          
Colorado:         
  Demand1,897,547  1,658,473  593,442  529,912  521,963 
  Interest-bearing:         
  Transaction1,844,632  1,899,203  622,520  701,362  687,785 
  Savings58,919  57,289  40,308  38,176  37,232 
  Time261,235  274,877  217,628  208,049  215,330 
  Total interest-bearing2,164,786  2,231,369  880,456  947,587  940,347 
Total Colorado4,062,333  3,889,842  1,473,898  1,477,499  1,462,310 
          
Arizona:         
  Demand695,238  707,402  365,878  383,627  326,581 
  Interest-bearing:         
  Transaction621,735  575,567  130,105  193,687  247,926 
  Savings12,144  10,545  3,559  3,935  4,116 
  Time44,004  43,051  23,927  22,447  21,009 
  Total interest-bearing677,883  629,163  157,591  220,069  273,051 
Total Arizona1,373,121  1,336,565  523,469  603,696  599,632 
          
Kansas/Missouri:         
  Demand410,799  418,199  423,560  459,636  505,802 
  Interest-bearing:         
  Transaction361,590  327,866  322,747  401,545  381,447 
  Savings13,815  13,721  13,125  13,052  13,845 
  Time19,977  19,688  20,635  20,805  22,230 
  Total interest-bearing395,382  361,275  356,507  435,402  417,522 
Total Kansas/Missouri806,181  779,474  780,067  895,038  923,324 
          
TOTAL BOK FINANCIAL$25,331,802  $25,263,763  $21,632,289  $22,169,264  $22,205,200 

 

NET INTEREST MARGIN TREND -- UNAUDITED
BOK FINANCIAL CORPORATION
 Three Months Ended
 Mar. 31, 2019 Dec. 31, 2018 Sept. 30, 2018 June 30, 2018 Mar. 31, 2018
          
TAX-EQUIVALENT ASSETS YIELDS         
Interest-bearing cash and cash equivalents2.56% 2.23% 1.98% 1.86% 1.57%
Trading securities3.88% 4.10% 3.98% 3.63% 3.40%
Investment securities5.22% 4.26% 4.06% 3.95% 3.78%
Available for sale securities2.57% 2.51% 2.37% 2.30% 2.23%
Fair value option securities3.62% 3.56% 3.25% 3.16% 2.95%
Restricted equity securities6.42% 6.39% 6.36% 6.21% 5.86%
Residential mortgage loans held for sale4.58% 4.00% 4.27% 4.28% 3.71%
Loans5.26% 5.09% 4.80% 4.80% 4.45%
Allowance for loan losses         
Loans, net of allowance5.31% 5.14% 4.86% 4.86% 4.51%
Total tax-equivalent yield on earning assets4.46% 4.33% 4.04% 3.91% 3.61%
          
COST OF INTEREST-BEARING LIABILITIES        
Interest-bearing deposits:         
  Interest-bearing transaction0.94% 0.79% 0.67% 0.55% 0.45%
  Savings0.12% 0.11% 0.09% 0.08% 0.07%
  Time1.80% 1.54% 1.40% 1.29% 1.25%
Total interest-bearing deposits1.04% 0.87% 0.77% 0.66% 0.57%
Funds purchased and repurchase agreements2.07% 1.36% 1.25% 0.53% 0.40%
Other borrowings2.68% 2.51% 2.20% 1.96% 1.60%
Subordinated debt5.51% 5.38% 5.55% 5.67% 5.61%
Total cost of interest-bearing liabilities1.66% 1.42% 1.25% 1.11% 0.93%
Tax-equivalent net interest revenue spread2.80% 2.91% 2.79% 2.80% 2.68%
Effect of noninterest-bearing funding sources and other0.50% 0.49% 0.42% 0.37% 0.31%
Tax-equivalent net interest margin3.30% 3.40% 3.21% 3.17% 2.99%

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
 Mar. 31, 2019 Dec. 31, 2018 Sept. 30, 2018 June 30, 2018 Mar. 31, 2018
Nonperforming assets:         
Nonaccruing loans:         
Commercial$90,358  $99,841  $109,490  $120,978  $131,460 
Commercial real estate21,508  21,621  1,316  1,996  2,470 
Residential mortgage40,409  41,555  41,917  42,343  45,794 
Personal302  230  269  340  340 
Total nonaccruing loans152,577  163,247  152,992  165,657  180,064 
Accruing renegotiated loans guaranteed by U.S. government agencies91,787  86,428  83,347  75,374  74,418 
Real estate and other repossessed assets17,139  17,487  24,515  27,891  23,652 
Total nonperforming assets$261,503  $267,162  $260,854  $268,922  $278,134 
Total nonperforming assets excluding those guaranteed by U.S. government agencies$162,770  $173,602  $169,717  $185,981  $194,833 
          
Nonaccruing loans by loan class:         
Commercial:         
Energy$35,332  $47,494  $54,033  $65,597  $89,942 
Services9,555  8,567  4,097  4,377  2,109 
Healthcare18,768  16,538  15,704  16,125  15,342 
Manufacturing9,548  8,919  9,202  2,991  3,002 
Wholesale/retail1,425  1,316  9,249  14,095  2,564 
Public finance         
Other commercial and industrial15,730  17,007  17,205  17,793  18,501 
Total commercial90,358  99,841  109,490  120,978  131,460 
Commercial real estate:         
Retail20,159  20,279  777  1,068  264 
Residential construction and land development350  350  350  350  1,613 
Multifamily  301       
Office855      275  275 
Industrial         
Other commercial real estate144  691  189  303  318 
Total commercial real estate21,508  21,621  1,316  1,996  2,470 
Residential mortgage:         
Permanent mortgage22,937  23,951  22,855  23,105  24,578 
Permanent mortgage guaranteed by U.S. government agencies6,946  7,132  7,790  7,567  8,883 
Home equity10,526  10,472  11,272  11,671  12,333 
Total residential mortgage40,409  41,555  41,917  42,343  45,794 
Personal302  230  269  340  340 
Total nonaccruing loans$152,577  $163,247  $152,992  $165,657  $180,064 
          
Performing loans 90 days past due1$610  $1,338  $518  $879  $90 
          
Gross charge-offs$11,775  $14,515  $11,073  $15,105  $2,890 
Recoveries(1,689) (2,168) (2,092) (4,578) (1,576)
Net charge-offs$10,086  $12,347  $8,981  $10,527  $1,314 
          
Provision for credit losses$8,000  $9,000  $4,000  $  $(5,000)
          
Allowance for loan losses to period end loans0.94% 0.96% 1.15% 1.19% 1.29%
Combined allowance for credit losses to period end loans0.95% 0.97% 1.16% 1.21% 1.32%
Nonperforming assets to period end loans and repossessed assets1.20% 1.23% 1.42% 1.49% 1.60%
Net charge-offs (annualized) to average loans0.19% 0.23% 0.20% 0.24% 0.03%
Allowance for loan losses to nonaccruing loans1141.00% 132.89% 145.02% 136.09% 130.84%
Combined allowance for credit losses to nonaccruing loans1142.25% 134.03% 146.41% 137.63% 133.25%

1   Excludes residential mortgage loans guaranteed by agencies of the U.S. government.

SEGMENTS -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands, except ratios)
  Three Months Ended Change
Commercial Banking Mar. 31, 2019 Dec. 31, 2018 Mar. 31, 2018 1Q19 vs 4Q18 1Q19 vs 1Q18
Net interest revenue $151,647  $148,359  $132,071  2.2% 14.8%
Fees and commissions revenue 38,046  39,667  40,017  (4.1)% (4.9)%
Other operating expense 50,177  51,628  48,370  (2.8)% 3.7%
Corporate expense allocations 10,148  9,112  10,603  11.4% (4.3)%
Net income 86,143  84,588  79,247  1.8% 8.7%
           
Average assets 19,931,964  19,341,927  17,793,820  3.1% 12.0%
Average loans 15,992,749  15,628,731  14,426,750  2.3% 10.9%
Average deposits 8,261,543  8,393,016  8,664,452  (1.6)% (4.7)%
           
Consumer Banking          
Net interest revenue $51,102  $41,364  $36,977  23.5% 38.2%
Fees and commissions revenue 42,821  42,839  44,963  % (4.8)%
Other operating expense 53,506  56,081  54,695  (4.6)% (2.2)%
Corporate expense allocations 11,883  11,098  11,188  7.1% 6.2%
Net income 15,584  2,741  9,374  468.6% 66.2%
           
Average assets 8,371,683  8,071,978  8,468,101  3.7% (1.1)%
Average loans 1,750,642  1,745,642  1,746,136  0.3% 0.3%
Average deposits 6,544,665  6,542,188  6,538,096  % 0.1%
           
Wealth Management          
Net interest revenue $28,256  $29,292  $25,339  (3.5)% 11.5%
Fees and commissions revenue 73,256  67,607  74,807  8.4% (2.1)%
Other operating expense 61,507  64,549  64,942  (4.7)% (5.3)%
Corporate expense allocations 8,360  8,828  8,815  (5.3)% (5.2)%
Net income 23,719  17,472  19,609  35.8% 21.0%
           
Average assets 9,312,154  8,687,234  8,095,794  7.2% 15.0%
Average loans 1,448,718  1,448,805  1,389,926  % 4.2%
Average deposits 5,659,771  5,483,455  5,662,470  3.2% %
Fiduciary assets 46,401,149  44,841,339  46,648,290  3.5% (0.5)%
Assets under management or administration 78,852,284  76,279,777  78,878,989  3.4% %