Exhibit 99 (a)
NASD: BOKF
For Further Information Contact:
Joseph Crivelli Andrea Myers
Investor Relations Corporate Communications
(918) 595-3027 (918) 594-7794
BOK Financial Reports Annual Earnings of $317 Million for 2013
Fourth Quarter Earnings Total $73 Million
TULSA, Okla. (Wednesday, January 29, 2014) - BOK Financial Corporation reported net income of $316.6 million or $4.59 per diluted share for the year ended December 31, 2013. Net income for the year ended December 31, 2012 was $351.2 million or $5.13 per diluted share.
Net income for fourth quarter of 2013 totaled $73.0 million or $1.06 per diluted share compared to net income of $75.7 million or $1.10 per diluted share for the third quarter of 2013.
Steven Bradshaw, President and Chief Executive Officer, stated, “Many of the factors that impacted earnings throughout 2013 persisted into the fourth quarter, including slower mortgage volumes and increased expenses to meet regulatory initiatives. However, loan growth accelerated nicely in the fourth quarter, led by commercial real estate and healthcare lending, and our capital strength and the credit quality of our loan portfolio remain at industry-leading levels.”
Bradshaw continued, “All told, 2013 was a challenging year. While we remained solidly profitable, it was the first year since 2008 that we were unable to grow earnings. Consistent earnings growth is the key to building long term shareholder value, and we don’t make excuses. Accordingly, our newly-constituted executive leadership team is executing on a plan to accelerate revenue growth, enhance our customer experience, and control internal expense growth while meeting heightened regulatory expectations and providing a great place to work for employees. These five key objectives will set the foundation for long-term growth in earnings and shareholder value.”
Highlights of fourth quarter of 2013 included:
| • | Net interest revenue totaled $166.2 million for the fourth quarter of 2013 compared to $167.9 million for the third quarter of 2013. Net interest margin was 2.74% for the fourth quarter of 2013, and 2.75% for the third quarter of 2013. |
| • | Fees and commissions revenue totaled $142.4 million for the fourth quarter of 2013 compared to $145.2 million for the third quarter of 2013. |
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| • | Operating expenses were $215.4 million for the fourth quarter, up $5.1 million over the previous quarter. Personnel expense was largely unchanged compared to the previous quarter. Non-personnel expense increased $5.3 million. |
| • | An $11.4 million negative provision for credit losses was recorded in the fourth quarter of 2013 compared to an $8.5 million negative provision for credit losses in the third quarter. BOK Financial had a net recovery of $3.0 million for the fourth quarter of 2013 compared to net charge-offs of $299 thousand in the third quarter. |
| • | The combined allowance for credit losses totaled $187 million or 1.47% of outstanding loans at December 31, 2013 compared to $196 million or 1.59% of outstanding loans at September 30, 2013. Nonperforming assets that are not guaranteed by U.S. government agencies totaled $155 million or 1.23% of outstanding loans and repossessed assets (excluding those guaranteed by U.S. government agencies) at December 31, 2013 and $183 million or 1.49% of outstanding loans and repossessed assets (excluding those guaranteed by U.S. government agencies) at September 30, 2013. |
| • | Average loans increased $59 million over the previous quarter due primarily to growth in commercial loans. Average commercial loans were up $135 million. Average commercial real estate loans were unchanged. Residential mortgage and consumer loans decreased by a total of $69 million. Period-end outstanding loan balances were $12.8 billion at December 31, 2013, an increase of $442 million over September 30, 2013. Commercial loan balances increased $372 million and commercial real estate loans were up $66 million over the prior quarter. Growth in residential mortgage loans was largely offset by a decrease in consumer loans. |
| • | Average deposits increased $428 million over the previous quarter. Growth in demand deposits and interest-bearing transaction accounts was partially offset by a decrease in time deposit balances. Period end deposits grew by $778 million over September 30, 2013 to $20.3 billion at December 31, 2013. Interest-bearing transaction accounts increased $814 million. Demand deposit account balances were largely unchanged and time deposits decreased $24 million. |
| • | Tangible common equity ratio was 9.90% at December 31, 2013 and 9.73% at September 30, 2013. The tangible common equity ratio is a non-GAAP measure of capital strength used by the Company and investors based on shareholders' equity minus intangible assets and equity that does not benefit common shareholders. The Company and its subsidiary bank continue to exceed the regulatory definition of well capitalized. The Company's Tier 1 capital ratios, as defined by banking regulations, were 13.73% at December 31, 2013 and 13.51% at September 30, 2013. |
| • | The Company paid a regular quarterly cash dividend of $28 million or $0.40 per common share during the fourth quarter of 2013. On January 28, 2014, the board of directors approved a quarterly cash dividend of $0.40 per common share payable on or about February 28, 2014 to shareholders of record as of February 14, 2014. |
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Net Interest Revenue
Net interest revenue decreased $1.6 million compared to the third quarter of 2013. Net interest margin was 2.74% for the fourth quarter of 2013, compared to 2.75% for the third quarter of 2013.
The yield on average earning assets was 3.02%, a decrease of 1 basis point compared to the prior quarter. The yield on the available for sale securities portfolio decreased 4 basis points to 1.89% primarily due to cash flows being reinvested at lower current market rates. Cash flows received from payments on residential mortgage-backed securities are currently being reinvested in short-duration securities that yield nearly 1.75%. The loan portfolio yield decreased 5 basis points from the previous quarter to 4.01% primarily due to continued market pricing pressure. Funding costs were unchanged compared to the prior quarter at 0.42%.
Average earning assets decreased $140 million during the fourth quarter of 2013 primarily due to a $124 million decrease in the available for sale securities portfolio and a $95 million decrease in interest-bearing cash and cash equivalents. Average loan balances were up $59 million over the previous quarter. Average deposits increased $428 million and the average balance of borrowed funds decreased $699 million compared to the third quarter of 2013.
Steven Nell, Chief Financial Officer commented, "In the fourth quarter, we began to proactively shrink the size of our bond portfolio to better position the balance sheet for a longer-term rising rate environment. Our outlook for earning assets is for continued declines in the securities portfolio to be partially offset by loan growth. The resulting shift in earnings asset mix will be supportive of the net interest margin."
Fees and Commissions Revenue
Fees and commissions revenue totaled $142.4 million for the fourth quarter of 2013, a decrease of $2.9 million compared to the third quarter of 2013.
Brokerage and trading revenue decreased $3.8 million compared to the prior quarter primarily due to a decrease in securities trading revenue and investment banking revenue, partially offset by an increase in customer hedging revenue.
Mortgage banking revenue totaled $21.9 million for the fourth quarter of 2013 compared to $23.5 million for the third quarter of 2013. Residential mortgage loans funded for sale totaled $849 million, a decrease of $231 million compared to the previous quarter. Outstanding commitments to originate mortgage loans also decreased to $259 million at December 31 from $351 million at September 30. Approximately 39% of loans originated in the fourth quarter were through correspondent channels, unchanged from the previous quarter. Refinanced mortgage loans represented 29% of loans originated for sale in the fourth quarter of 2013 compared to 30% in the third quarter of 2013.
Trust fees and commissions grew by $1.2 million over the third quarter of 2013 primarily due to the increase in the fair value of assets managed and seasonal increase in tax fees. Other revenue was up $3.7 million over the prior quarter primarily due to the favorable resolution of a lawsuit. Deposit service charges and fees decreased $1.3 million and transaction card revenue decreased $921 thousand.
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On December 10, 2013, federal banking agencies issued final rules implementing Section 619 of the Dodd-Frank Wall Street Reform and Consumer Act, commonly referred to as the Volcker Rule. Section 619 is effective April 1, 2014. During the fourth quarter, BOK Financial recognized a $1.4 million impairment charge as the Company may be required to divest a portion of its ownership interests in private equity funds by July 21, 2015.
Operating Expenses
Total operating expenses were $215.4 million for the fourth quarter of 2013, up $5.1 million over the third quarter of 2013. Personnel costs were largely unchanged compared to the third quarter of 2013. Non-personnel expense increased $5.3 million over the third quarter of 2013. Professional fees and services expense increased $2.8 million, data processing and communications expense increased $2.5 million and net occupancy expense increased $1.8 million over the third quarter. Operating expenses for the third quarter included a $2.1 million discretionary contribution of appreciated stock to the BOKF Foundation. This contribution also resulted in a $1.1 million reduction in income tax expense.
Loans, Deposits and Capital
Loans
Outstanding loans were $12.8 billion at December 31, 2013, an increase of $442 million over the previous quarter. Commercial, commercial real estate and residential mortgage loan balances all grew over the prior quarter, partially offset by a decrease in consumer loan balances.
Outstanding commercial loan balances increased $372 million over September 30, 2013. All sectors of our commercial loan portfolio grew over the prior quarter. Service sector loans balances grew by $134 million and healthcare sector loans were up $114 million. Other commercial and industrial loans increased $47 million, energy loan balances increased $40 million and wholesale/retail sector loans grew $20 million over September 30, 2013. Unfunded energy loan commitments decreased by $105 million in the fourth quarter to $2.5 billion. All other unfunded commercial loan commitments totaled $3.6 billion at December 31, 2013, up $49 million over September 30, 2013.
Commercial real estate loans grew by $66 million over September 30, 2013. Loans secured by multifamily residential properties were up $56 million and retail sector loans by $29 million over the prior quarter. Loans secured by office buildings decreased $11 million and construction and land development loan balances decreased $10 million. Unfunded commercial real estate loan commitments totaled $534 million at December 31, 2013, a decrease of $13 million from September 30, 2013.
Residential mortgage loans increased $17 million over September 30, 2013, due primarily to growth in permanent mortgage balances guaranteed by U.S. government agencies. Growth in first lien, fully amortizing home equity loans, was partially offset by a decrease in non-guaranteed permanent mortgage loan balances. Consumer loans decreased $13 million compared to the prior quarter primarily due to a decrease in other consumer loans and continued runoff of the indirect automobile loan portfolio.
"As we moved through the fourth quarter, we saw significant acceleration in key lending segments including commercial real estate and our healthcare lending business," added Dan Ellinor, Chief Operating Officer. "As a result, we posted double-digit annualized loan growth during the quarter and now enter 2014 with strong pipelines and a solid plan for building on our commercial lending success."
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"The energy lending business was essentially flat in the fourth quarter, as paydowns due to long term refinancing and asset sales continue to offset new deals," Ellinor continued. "Commercial and industrial lending, while stronger in the fourth quarter than in the third, was flat overall in 2013 as business owners waited for more consistent economic growth before making long-term investments that require additional financing. Net/net, we believe we can deliver loan growth in 2014 in the mid to high single digits."
Deposits
Deposits totaled $20.3 billion at December 31, 2013, an increase of $778 million over September 30, 2013 primarily due to normal seasonality and temporary customer activity. During the first half of January 2014, deposits decreased approximately $300 million. Demand deposit balances were largely unchanged compared to the prior quarter. Interest-bearing transaction account balances grew by $814 million and time deposits decreased $24 million. Among the lines of business, commercial deposits increased $270 million, consumer deposits decreased $23 million and wealth management deposits increased $537 million. Growth in commercial deposit balances was primarily due to growth in balances attributed to treasury service customers. Growth in commercial and industrial, small business and healthcare customer balances were partially offset by a decrease in balances attributed to energy and commercial real estate customers during the fourth quarter.
Capital
The Company and its subsidiary bank exceeded the regulatory definition of well capitalized at December 31, 2013. The Company's Tier 1 capital ratio was 13.73% at December 31, 2013 and 13.51% at September 30, 2013. The total capital ratio was 15.52% at December 31, 2013 and 15.35% at September 30, 2013. In addition, the Company's tangible common equity ratio, a non-GAAP measure, was 9.90% at December 31, 2013 and 9.73% at September 30, 2013.
In July 2013, banking regulators issued the final rule revising regulatory capital rules for substantially all U.S. banking organizations. The new capital rule will be effective for BOK Financial on January 1, 2015. The new capital rule establishes a 7% threshold for the Tier 1 common equity ratio consisting of a minimum level plus a capital conservation buffer. The Company expects to exclude unrealized gains and losses from available for sale securities from its calculation of Tier 1 capital, consistent with the treatment under current capital rules. BOK Financial's Tier 1 common equity ratio based on the existing Basel I standards was 13.55% as of December 31, 2013. Based on our interpretation of the new capital rule, our estimated Tier 1 common equity ratio would be approximately 12.60%, nearly 560 basis points above the 7% regulatory threshold.
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Credit Quality
Nonperforming assets totaled $248 million or 1.92% of outstanding loans and repossessed assets at December 31, 2013 compared to $271 million or 2.18% of outstanding loans and repossessed assets at September 30, 2013. Nonperforming assets that are not guaranteed by U.S. government agencies totaled $155 million or 1.23% of outstanding loans and repossessed assets (excluding those guaranteed by U.S. government agencies) at December 31, 2013 and $183 million or 1.49% at September 30, 2013, a decrease of $27 million or 15%.
Nonaccruing loans totaled $101 million or 0.79% of outstanding loans at December 31, 2013 compared to $113 million or 0.91% of outstanding loans at September 30, 2013. New nonaccruing loans identified in the fourth quarter totaled $21 million, offset by $16 million in payments received, $14 million in foreclosures and repossessions and $3.1 million in charge-offs.
Nonaccruing commercial loans were $17 million or 0.21% of outstanding commercial loans at December 31, 2013 compared to $20 million or 0.26% of outstanding commercial loans at September 30, 2013.
Nonaccruing commercial real estate loans decreased to $41 million or 1.69% of outstanding commercial real estate loans at December 31, 2013 from $53 million or 2.23% of outstanding commercial real estate loans at September 30, 2013. Nonaccruing commercial real estate loans consist primarily of land development and residential construction loans. Nonaccruing land development and residential construction loans totaled $17 million at December 31, 2013, a decrease of $3.4 million during the fourth quarter.
Nonaccruing residential mortgage loans totaled $42 million or 2.06% of outstanding residential mortgage loans, an increase of $3.1 million over September 30, 2013. Principally all non-guaranteed residential mortgage loans past due 90 days or more are nonaccruing. Residential mortgage loans past due 30 to 89 days and still accruing interest, excluding loans guaranteed by U.S. government agencies, totaled $13 million at December 31, 2013 and $8.6 million at September 30, 2013.
After evaluating all credit factors, the Company determined that an $11.4 million negative provision for credit losses was necessary during the fourth quarter of 2013. A major employer in the Tulsa, Ft. Worth and Kansas City markets exited bankruptcy during the fourth quarter. The Company had previously established a non-specific allowance related to the secondary exposure to the employer's bankruptcy by employees, retirees, vendors, suppliers and other business partners. In addition, all credit metrics improved during the quarter and gross loss rates continued to decline. The combined allowance for credit losses totaled $187 million or 1.47% of outstanding loans and 185.35% of nonaccruing loans at December 31, 2013. The allowance for loan losses was $185 million and the accrual for off-balance sheet credit losses was $2.1 million. Gross charge-offs totaled $3.1 million for the fourth quarter, compared to $4.7 million for the previous quarter. Recoveries totaled $6.1 million for the fourth quarter of 2013. BOK Financial had a net recovery of $3.0 million for the fourth quarter of 2013 compared with net charge-offs of $299 thousand or 0.01% of average loans on an annualized basis for the third quarter of 2013.
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Real estate and other repossessed assets totaled $92 million at December 31, 2013, primarily consisting of $53 million of 1-4 family residential properties (including $37 million guaranteed by U.S. government agencies), $18 million of developed commercial real estate properties, $14 million of undeveloped land and $7.0 million of residential land and land development properties. The distribution of real estate owned and other repossessed assets among various markets included $19 million attributed to Oklahoma, $17 million attributed to Arizona and $27.8 million attributed to New Mexico. Real estate and other repossessed assets decreased $16 million during the fourth quarter of 2013. Additions of $14 million were offset by $29 million of sales. Additions included $12 million and sales included $12 million of 1-4 family residential properties guaranteed by U.S. government agencies. Net gains on sales and write-downs of real estate and other repossessed assets totaled $211 thousand in the fourth quarter of 2013 compared to $438 thousand in the third quarter.
Securities and Derivatives
The fair value of the available for sale securities portfolio totaled $10.1 billion at December 31, 2013 and $10.4 billion at September 30, 2013. At December 31, 2013, the available for sale portfolio consisted primarily of $7.7 billion of residential mortgage-backed securities fully backed by U.S. government agencies and $2.1 billion of commercial mortgage-backed securities fully backed by U.S. government agencies.
At December 31, 2013 the available for sale securities portfolio had a net unrealized loss of $38 million compared to a net unrealized gain of $7.4 million at September 30, 2013. Substantially all of the change in net unrealized losses and gains resulted from rising interest rates. Net unrealized gains on residential mortgage-backed securities issued by U.S. government agencies at September 30, 2013 decreased $42 million during the fourth quarter to a net unrealized loss of $4.2 million at December 31, 2013. Commercial mortgage-backed securities had a net unrealized loss of $44 million at December 31, 2013, compared to a net unrealized loss of $40 million at September 30, 2013.
In the fourth quarter of 2013, the Company recognized net gains of $1.6 million from sales of $270 million of available for sale securities. Securities were sold either because they had reached their expected maximum potential return or sold to reinvest those proceeds into shorter average life securities. Net gains from sales of $356 million of available for sale securities in the third quarter of 2013 totaled $478 thousand.
The Company also maintains a portfolio of residential mortgage-backed securities issued by U.S. government agencies and interest rate derivative contracts designated as an economic hedge of the changes in the fair value of our mortgage servicing rights. Due to fluctuations in residential mortgage interest rates during the fourth quarter of 2013, the value of our mortgage servicing rights increased by $6.1 million. The value of securities and interest rate derivative contracts held as an economic hedge decreased by $3.9 million.
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About BOK Financial Corporation
BOK Financial is a $27 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, BOSC, Inc., The Milestone Group, Inc. and Cavanal Hill Investment Management, Inc. BOKF, NA operates the TransFund electronic funds network 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 December 31, 2013 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,” 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 involve judgments as to future 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 (1) the ability to fully realize expected cost savings from mergers within the expected time frames, (2) the ability of other companies on which BOK Financial relies to provide goods and services in a timely and accurate manner, (3) changes in interest rates and interest rate relationships, (4) demand for products and services, (5) the degree of competition by traditional and nontraditional competitors, (6) changes in banking regulations, tax laws, prices, levies and assessments, (7) the impact of technological advances and (8) trends in consumer 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.
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BALANCE SHEETS -- UNAUDITED BOK FINANCIAL CORPORATION (In thousands) | ||||||||||||
| December 31, 2013 | September 30, 2013 | December 31, 2012 | ||||||||||
| ASSETS | ||||||||||||
| Cash and due from banks | $ | 512,931 | $ | 625,671 | $ | 710,739 | ||||||
| Interest-bearing cash and cash equivalents | 574,282 | 535,313 | 575,500 | |||||||||
| Trading securities | 91,616 | 150,887 | 214,102 | |||||||||
| Investment securities | 677,878 | 644,225 | 499,534 | |||||||||
| Available for sale securities | 10,147,162 | 10,372,903 | 11,287,221 | |||||||||
| Fair value option securities | 167,125 | 167,860 | 284,296 | |||||||||
| Restricted equity securities | 85,240 | 125,540 | 64,807 | |||||||||
| Residential mortgage loans held for sale | 200,546 | 230,511 | 293,762 | |||||||||
| Loans: | ||||||||||||
| Commercial | 7,943,221 | 7,571,075 | 7,641,912 | |||||||||
| Commercial real estate | 2,415,353 | 2,349,229 | 2,228,999 | |||||||||
| Residential mortgage | 2,052,026 | 2,034,765 | 2,045,040 | |||||||||
| Consumer | 381,664 | 395,031 | 395,505 | |||||||||
| Total loans | 12,792,264 | 12,350,100 | 12,311,456 | |||||||||
| Allowance for loan losses | (185,396 | ) | (194,325 | ) | (215,507 | ) | ||||||
| Loans, net of allowance | 12,606,868 | 12,155,775 | 12,095,949 | |||||||||
| Premises and equipment, net | 277,849 | 275,347 | 265,920 | |||||||||
| Receivables | 117,126 | 108,435 | 114,185 | |||||||||
| Goodwill | 359,759 | 359,759 | 361,979 | |||||||||
| Intangible assets, net | 24,564 | 25,407 | 28,192 | |||||||||
| Mortgage servicing rights, net | 153,333 | 140,863 | 100,812 | |||||||||
| Real estate and other repossessed assets, net | 92,272 | 108,122 | 103,791 | |||||||||
| Derivative contracts, net | 265,012 | 377,325 | 338,106 | |||||||||
| Cash surrender value of bank-owned life insurance | 284,801 | 282,490 | 274,531 | |||||||||
| Receivable on unsettled securities sales | 17,174 | 93,020 | 211,052 | |||||||||
| Other assets | 359,894 | 386,914 | 324,153 | |||||||||
| TOTAL ASSETS | $ | 27,015,432 | $ | 27,166,367 | $ | 28,148,631 | ||||||
| LIABILITIES AND EQUITY | ||||||||||||
| Deposits: | ||||||||||||
| Demand | $ | 7,316,277 | $ | 7,331,976 | $ | 8,038,286 | ||||||
| Interest-bearing transaction | 9,934,051 | 9,119,810 | 9,888,038 | |||||||||
| Savings | 323,006 | 319,849 | 284,744 | |||||||||
| Time | 2,695,993 | 2,720,020 | 2,967,992 | |||||||||
| Total deposits | 20,269,327 | 19,491,655 | 21,179,060 | |||||||||
| Funds purchased | 868,081 | 992,345 | 1,167,416 | |||||||||
| Repurchase agreements | 813,454 | 782,418 | 887,030 | |||||||||
| Other borrowings | 1,040,353 | 1,837,181 | 651,775 | |||||||||
| Subordinated debentures | 347,802 | 347,758 | 347,633 | |||||||||
| Accrued interest, taxes, and expense | 194,870 | 182,076 | 176,678 | |||||||||
| Due on unsettled securities purchases | 45,740 | 114,259 | 297,453 | |||||||||
| Derivative contracts, net | 247,185 | 232,544 | 283,589 | |||||||||
| Other liabilities | 133,647 | 159,157 | 164,316 | |||||||||
| TOTAL LIABILITIES | 23,960,459 | 24,139,393 | 25,154,950 | |||||||||
| Shareholders' equity: | ||||||||||||
| Capital, surplus and retained earnings | 3,045,672 | 2,993,870 | 2,807,940 | |||||||||
| Accumulated other comprehensive income (loss) | (25,623 | ) | (2,626 | ) | 149,920 | |||||||
| TOTAL SHAREHOLDERS' EQUITY | 3,020,049 | 2,991,244 | 2,957,860 | |||||||||
| Non-controlling interest | 34,924 | 35,730 | 35,821 | |||||||||
| TOTAL EQUITY | 3,054,973 | 3,026,974 | 2,993,681 | |||||||||
| TOTAL LIABILITIES AND EQUITY | $ | 27,015,432 | $ | 27,166,367 | $ | 28,148,631 | ||||||
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AVERAGE BALANCE SHEETS -- UNAUDITED BOK FINANCIAL CORPORATION (in thousands) | |||||||||||||||||||
| Three Months Ended | |||||||||||||||||||
| December 31, 2013 | September 30, 2013 | June 30, 2013 | March 31, 2013 | December 31, 2012 | |||||||||||||||
| ASSETS | |||||||||||||||||||
| Interest-bearing cash and cash equivalents | $ | 559,918 | $ | 654,591 | $ | 408,224 | $ | 388,132 | $ | 413,920 | |||||||||
| Trading securities | 127,011 | 124,689 | 181,866 | 162,353 | 165,109 | ||||||||||||||
| Investment securities | 672,722 | 621,104 | 610,940 | 534,772 | 474,085 | ||||||||||||||
| Available for sale securities | 10,434,810 | 10,558,677 | 11,060,700 | 11,292,181 | 11,482,212 | ||||||||||||||
| Fair value option securities | 167,490 | 169,299 | 216,312 | 251,725 | 292,490 | ||||||||||||||
| Restricted equity securities | 123,009 | 155,938 | 144,332 | 80,433 | 65,275 | ||||||||||||||
| Residential mortgage loans held for sale | 217,811 | 225,789 | 261,977 | 216,816 | 272,581 | ||||||||||||||
| Loans: | |||||||||||||||||||
| Commercial | 7,737,884 | 7,602,951 | 7,606,918 | 7,498,905 | 7,441,957 | ||||||||||||||
| Commercial real estate | 2,352,915 | 2,359,120 | 2,286,674 | 2,309,988 | 2,170,676 | ||||||||||||||
| Residential mortgage | 1,998,980 | 2,043,332 | 2,013,004 | 2,034,315 | 1,991,530 | ||||||||||||||
| Consumer | 371,798 | 396,694 | 370,847 | 381,752 | 385,156 | ||||||||||||||
| Total loans | 12,461,576 | 12,402,096 | 12,277,444 | 12,224,960 | 11,989,319 | ||||||||||||||
| Allowance for loan losses | (193,309 | ) | (201,616 | ) | (206,807 | ) | (214,017 | ) | (229,095 | ) | |||||||||
| Total loans, net | 12,268,267 | 12,200,480 | 12,070,637 | 12,010,943 | 11,760,224 | ||||||||||||||
| Total earning assets | 24,571,038 | 24,710,567 | 24,954,988 | 24,937,355 | 24,925,896 | ||||||||||||||
| Cash and due from banks | 324,349 | 386,331 | 546,558 | 465,412 | 455,247 | ||||||||||||||
| Derivative contracts, net | 314,530 | 377,664 | 401,485 | 286,772 | 316,579 | ||||||||||||||
| Cash surrender value of bank-owned life insurance | 283,289 | 280,909 | 278,501 | 275,705 | 272,778 | ||||||||||||||
| Receivable on unsettled securities sales | 83,016 | 90,014 | 135,964 | 178,561 | 144,077 | ||||||||||||||
| Other assets | 1,526,566 | 1,409,247 | 1,341,828 | 1,369,626 | 1,382,199 | ||||||||||||||
| TOTAL ASSETS | $ | 27,102,788 | $ | 27,254,732 | $ | 27,659,324 | $ | 27,513,431 | $ | 27,496,776 | |||||||||
| LIABILITIES AND EQUITY | |||||||||||||||||||
| Deposits: | |||||||||||||||||||
| Demand | $ | 7,356,063 | $ | 7,110,079 | $ | 6,888,983 | $ | 7,002,046 | $ | 7,505,074 | |||||||||
| Interest-bearing transaction | 9,486,136 | 9,276,136 | 9,504,128 | 9,836,204 | 9,343,421 | ||||||||||||||
| Savings | 323,123 | 317,912 | 315,421 | 296,319 | 278,714 | ||||||||||||||
| Time | 2,710,019 | 2,742,970 | 2,818,533 | 2,913,999 | 3,010,367 | ||||||||||||||
| Total deposits | 19,875,341 | 19,447,097 | 19,527,065 | 20,048,568 | 20,137,576 | ||||||||||||||
| Funds purchased | 748,074 | 776,356 | 789,302 | 1,155,983 | 1,295,442 | ||||||||||||||
| Repurchase agreements | 752,286 | 799,175 | 819,373 | 878,679 | 900,131 | ||||||||||||||
| Other borrowings | 1,551,591 | 2,175,747 | 2,172,417 | 863,360 | 364,425 | ||||||||||||||
| Subordinated debentures | 347,781 | 347,737 | 347,695 | 347,654 | 347,613 | ||||||||||||||
| Derivative contracts, net | 294,315 | 330,819 | 334,877 | 220,037 | 246,296 | ||||||||||||||
| Due on unsettled securities purchases | 152,078 | 111,998 | 330,926 | 665,175 | 854,474 | ||||||||||||||
| Other liabilities | 327,519 | 300,880 | 310,015 | 336,136 | 379,332 | ||||||||||||||
| TOTAL LIABILITIES | 24,048,985 | 24,289,809 | 24,631,670 | 24,515,592 | 24,525,289 | ||||||||||||||
| Total equity | 3,053,803 | 2,964,923 | 3,027,654 | 2,997,839 | 2,971,487 | ||||||||||||||
| TOTAL LIABILITIES AND EQUITY | $ | 27,102,788 | $ | 27,254,732 | $ | 27,659,324 | $ | 27,513,431 | $ | 27,496,776 | |||||||||
10
STATEMENTS OF EARNINGS -- UNAUDITED BOK FINANCIAL CORPORATION (in thousands, except per share data) | |||||||||||||||
| Three Months Ended | Year Ended | ||||||||||||||
| December 31, | December 31, | ||||||||||||||
| 2013 | 2012 | 2013 | 2012 | ||||||||||||
| Interest revenue | $ | 183,120 | $ | 195,206 | $ | 745,371 | $ | 794,871 | |||||||
| Interest expense | 16,876 | 20,945 | 70,894 | 87,322 | |||||||||||
| Net interest revenue | 166,244 | 174,261 | 674,477 | 707,549 | |||||||||||
| Provision for credit losses | (11,400 | ) | (14,000 | ) | (27,900 | ) | (22,000 | ) | |||||||
| Net interest revenue after provision for credit losses | 177,644 | 188,261 | 702,377 | 729,549 | |||||||||||
| Other operating revenue: | |||||||||||||||
| Brokerage and trading revenue | 28,515 | 31,958 | 125,478 | 126,930 | |||||||||||
| Transaction card revenue | 29,134 | 28,009 | 116,823 | 107,985 | |||||||||||
| Trust fees and commissions | 25,074 | 22,030 | 96,082 | 80,053 | |||||||||||
| Deposit service charges and fees | 23,440 | 24,174 | 95,110 | 98,917 | |||||||||||
| Mortgage banking revenue | 21,876 | 46,410 | 121,934 | 169,302 | |||||||||||
| Bank-owned life insurance | 2,285 | 2,673 | 10,155 | 11,089 | |||||||||||
| Other revenue | 12,048 | 9,661 | 38,262 | 34,604 | |||||||||||
| Total fees and commissions | 142,372 | 164,915 | 603,844 | 628,880 | |||||||||||
| Gain (loss) on other assets, net | 651 | 137 | (925 | ) | (1,415 | ) | |||||||||
| Loss on derivatives, net | (930 | ) | (637 | ) | (4,367 | ) | (301 | ) | |||||||
| Gain (loss) on fair value option securities, net | (2,805 | ) | (2,081 | ) | (15,212 | ) | 9,230 | ||||||||
| Change in fair value of mortgage servicing rights | 6,093 | 4,689 | 22,720 | (9,210 | ) | ||||||||||
| Gain on available for sale securities, net | 1,634 | 1,066 | 10,720 | 33,845 | |||||||||||
| Total other-than-temporary impairment losses | — | (504 | ) | (2,574 | ) | (1,144 | ) | ||||||||
| Portion of loss recognized in (reclassified from) other comprehensive income | — | (1,163 | ) | 266 | (6,207 | ) | |||||||||
| Net impairment losses recognized in earnings | — | (1,667 | ) | (2,308 | ) | (7,351 | ) | ||||||||
| Total other operating revenue | 147,015 | 166,422 | 614,472 | 653,678 | |||||||||||
| Other operating expense: | |||||||||||||||
| Personnel | 125,662 | 131,192 | 505,225 | 491,033 | |||||||||||
| Business promotion | 6,020 | 6,150 | 22,598 | 23,338 | |||||||||||
| Contribution to BOKF Foundation | — | 2,062 | 2,062 | 2,062 | |||||||||||
| Professional fees and services | 10,003 | 10,082 | 32,552 | 34,015 | |||||||||||
| Net occupancy and equipment | 19,103 | 16,883 | 69,773 | 66,726 | |||||||||||
| Insurance | 4,394 | 3,789 | 16,122 | 15,356 | |||||||||||
| Data processing and communications | 28,196 | 25,010 | 106,075 | 98,904 | |||||||||||
| Printing, postage and supplies | 3,126 | 3,403 | 13,885 | 14,228 | |||||||||||
| Net losses and operating expenses of repossessed assets | 1,618 | 6,665 | 5,160 | 20,528 | |||||||||||
| Amortization of intangible assets | 842 | 1,065 | 3,428 | 2,927 | |||||||||||
| Mortgage banking costs | 7,071 | 10,542 | 31,088 | 44,334 | |||||||||||
| Other expense | 9,384 | 9,931 | 32,652 | 26,912 | |||||||||||
| Total other operating expense | 215,419 | 226,774 | 840,620 | 840,363 | |||||||||||
| Net income before taxes | 109,240 | 127,909 | 476,229 | 542,864 | |||||||||||
| Federal and state income taxes | 35,318 | 44,293 | 157,298 | 188,740 | |||||||||||
| Net income | 73,922 | 83,616 | 318,931 | 354,124 | |||||||||||
| Net income attributable to non-controlling interest | 946 | 1,051 | 2,322 | 2,933 | |||||||||||
| Net income attributable to BOK Financial Corporation shareholders | $ | 72,976 | $ | 82,565 | $ | 316,609 | $ | 351,191 | |||||||
| Average shares outstanding: | |||||||||||||||
| Basic | 68,095,254 | 67,622,777 | 67,988,897 | 67,684,043 | |||||||||||
| Diluted | 68,293,758 | 67,914,717 | 68,205,519 | 67,964,940 | |||||||||||
| Net income per share: | |||||||||||||||
| Basic | $ | 1.06 | $ | 1.21 | $ | 4.61 | $ | 5.15 | |||||||
| Diluted | $ | 1.06 | $ | 1.21 | $ | 4.59 | $ | 5.13 | |||||||
11
FINANCIAL HIGHLIGHTS -- UNAUDITED BOK FINANCIAL CORPORATION (in thousands, except ratio and share data) | |||||||||||||||||||
| Three Months Ended | |||||||||||||||||||
| December 31, 2013 | September 30, 2013 | June 30, 2013 | March 31, 2013 | December 31, 2012 | |||||||||||||||
| Capital: | |||||||||||||||||||
| Period-end shareholders' equity | $ | 3,020,049 | $ | 2,991,244 | $ | 2,957,637 | $ | 3,011,958 | $ | 2,957,860 | |||||||||
| Risk weighted assets | $ | 19,437,711 | $ | 19,366,620 | $ | 19,157,978 | $ | 18,756,648 | $ | 19,016,673 | |||||||||
| Risk-based capital ratios: | |||||||||||||||||||
| Tier 1 | 13.73 | % | 13.51 | % | 13.37 | % | 13.35 | % | 12.78 | % | |||||||||
| Total capital | 15.52 | % | 15.35 | % | 15.28 | % | 15.68 | % | 15.13 | % | |||||||||
| Leverage ratio | 10.05 | % | 9.80 | % | 9.43 | % | 9.28 | % | 9.01 | % | |||||||||
Tangible common equity ratio1 | 9.90 | % | 9.73 | % | 9.38 | % | 9.70 | % | 9.25 | % | |||||||||
Tier 1 common equity ratio2 | 13.55 | % | 13.33 | % | 13.19 | % | 13.16 | % | 12.59 | % | |||||||||
| Common stock: | |||||||||||||||||||
| Book value per share | $ | 43.88 | $ | 43.49 | $ | 43.03 | $ | 43.85 | $ | 43.29 | |||||||||
| Market value per share: | |||||||||||||||||||
| High | $ | 66.32 | $ | 69.36 | $ | 65.95 | $ | 62.77 | $ | 59.77 | |||||||||
| Low | $ | 60.81 | $ | 62.93 | $ | 60.52 | $ | 55.05 | $ | 54.19 | |||||||||
| Cash dividends paid | $ | 27,523 | $ | 26,135 | $ | 26,118 | $ | 26,067 | $ | 94,231 | |||||||||
| Dividend payout ratio | 37.72 | % | 34.51 | % | 32.68 | % | 29.63 | % | 114.13 | % | |||||||||
| Shares outstanding, net | 68,829,450 | 68,787,584 | 68,739,208 | 68,687,718 | 68,327,351 | ||||||||||||||
| Stock buy-back program: | |||||||||||||||||||
| Shares repurchased | — | — | — | — | — | ||||||||||||||
| Amount | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||
| Average price per share | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||
| Performance ratios (quarter annualized): | |||||||||||||||||||
| Return on average assets | 1.07 | % | 1.10 | % | 1.16 | % | 1.30 | % | 1.19 | % | |||||||||
| Return on average equity | 9.48 | % | 10.13 | % | 10.59 | % | 11.90 | % | 11.05 | % | |||||||||
| Net interest margin | 2.74 | % | 2.75 | % | 2.80 | % | 2.90 | % | 2.95 | % | |||||||||
| Efficiency ratio | 66.57 | % | 66.14 | % | 58.82 | % | 60.25 | % | 64.63 | % | |||||||||
| Reconciliation of non-GAAP measures: | |||||||||||||||||||
1 Tangible common equity ratio: | |||||||||||||||||||
| Total shareholders' equity | $ | 3,020,049 | $ | 2,991,244 | $ | 2,957,637 | $ | 3,011,958 | $ | 2,957,860 | |||||||||
| Less: Goodwill and intangible assets, net | (384,323 | ) | (385,166 | ) | (386,001 | ) | (386,876 | ) | (390,171 | ) | |||||||||
| Tangible common equity | $ | 2,635,726 | $ | 2,606,078 | $ | 2,571,636 | $ | 2,625,082 | $ | 2,567,689 | |||||||||
| Total assets | $ | 27,015,432 | $ | 27,166,367 | $ | 27,808,200 | $ | 27,447,158 | $ | 28,148,631 | |||||||||
| Less: Goodwill and intangible assets, net | (384,323 | ) | (385,166 | ) | (386,001 | ) | (386,876 | ) | (390,171 | ) | |||||||||
| Tangible assets | $ | 26,631,109 | $ | 26,781,201 | $ | 27,422,199 | $ | 27,060,282 | $ | 27,758,460 | |||||||||
| Tangible common equity ratio | 9.90 | % | 9.73 | % | 9.38 | % | 9.70 | % | 9.25 | % | |||||||||
2 Tier 1 common equity ratio: | |||||||||||||||||||
| Tier 1 capital | $ | 2,668,981 | $ | 2,616,610 | $ | 2,561,399 | $ | 2,503,892 | $ | 2,430,671 | |||||||||
| Less: Non-controlling interest | (34,924 | ) | (35,730 | ) | (35,245 | ) | (35,934 | ) | (35,821 | ) | |||||||||
| Tier 1 common equity | $ | 2,634,057 | $ | 2,580,880 | $ | 2,526,154 | $ | 2,467,958 | $ | 2,394,850 | |||||||||
| Risk weighted assets | $ | 19,437,711 | $ | 19,366,620 | $ | 19,157,978 | $ | 18,756,648 | $ | 19,016,673 | |||||||||
| Tier 1 common equity ratio | 13.55 | % | 13.33 | % | 13.19 | % | 13.16 | % | 12.59 | % | |||||||||
12
FINANCIAL HIGHLIGHTS -- UNAUDITED BOK FINANCIAL CORPORATION (in thousands, except ratio and share data) | |||||||||||||||||||
| Three Months Ended | |||||||||||||||||||
| December 31, 2013 | September 30, 2013 | June 30, 2013 | March 31, 2013 | December 31, 2012 | |||||||||||||||
| Other data: | |||||||||||||||||||
| Fiduciary assets | $ | 30,137,092 | $ | 29,593,140 | $ | 28,280,214 | $ | 27,606,180 | $ | 25,829,038 | |||||||||
| Mortgage servicing portfolio | $ | 13,718,942 | $ | 13,298,479 | $ | 12,741,651 | $ | 12,272,691 | $ | 11,981,624 | |||||||||
| Mortgage commitments | $ | 258,873 | $ | 351,196 | $ | 547,508 | $ | 466,571 | $ | 356,634 | |||||||||
| Mortgage loans funded for sale | $ | 848,870 | $ | 1,080,167 | $ | 1,196,038 | $ | 956,315 | $ | 1,073,541 | |||||||||
| Mortgage loan refinances to total fundings | 29 | % | 30 | % | 48 | % | 62 | % | 62 | % | |||||||||
| Tax equivalent adjustment | $ | 2,467 | $ | 2,565 | $ | 2,647 | $ | 2,619 | $ | 2,472 | |||||||||
| Net unrealized gain (loss) on available for sale securities | $ | (37,929 | ) | $ | 7,425 | $ | 42,233 | $ | 228,620 | $ | 254,587 | ||||||||
| Gain (loss) on mortgage servicing rights, net of economic hedge: | |||||||||||||||||||
| Gain (loss) on mortgage hedge derivative contracts, net | $ | (931 | ) | $ | 31 | $ | (2,526 | ) | $ | (1,654 | ) | $ | (707 | ) | |||||
| Loss on fair value option securities, net | (3,013 | ) | (89 | ) | (9,102 | ) | (3,232 | ) | (2,177 | ) | |||||||||
| Loss on economic hedge of mortgage servicing rights | (3,944 | ) | (58 | ) | (11,628 | ) | (4,886 | ) | (2,884 | ) | |||||||||
| Gain (loss) on changes in fair value of mortgage servicing rights | 6,093 | (346 | ) | 14,315 | 2,658 | 4,689 | |||||||||||||
| Gain (loss) on changes in fair value of mortgage servicing rights, net of economic hedges | $ | 2,149 | $ | (404 | ) | $ | 2,687 | $ | (2,228 | ) | $ | 1,805 | |||||||
| Net interest revenue on fair value option securities | $ | 811 | $ | 741 | $ | 910 | $ | 828 | $ | 748 | |||||||||
13
QUARTERLY EARNINGS TREND -- UNAUDITED BOK FINANCIAL CORPORATION (in thousands, except ratio and per share data) | |||||||||||||||||||
| Three Months Ended | |||||||||||||||||||
| December 31, 2013 | September 30, 2013 | June 30, 2013 | March 31, 2013 | December 31, 2012 | |||||||||||||||
| Interest revenue | $ | 183,120 | $ | 185,428 | $ | 186,777 | $ | 190,046 | $ | 195,206 | |||||||||
| Interest expense | 16,876 | 17,539 | 17,885 | 18,594 | 20,945 | ||||||||||||||
| Net interest revenue | 166,244 | 167,889 | 168,892 | 171,452 | 174,261 | ||||||||||||||
| Provision for credit losses | (11,400 | ) | (8,500 | ) | — | (8,000 | ) | (14,000 | ) | ||||||||||
| Net interest revenue after provision for credit losses | 177,644 | 176,389 | 168,892 | 179,452 | 188,261 | ||||||||||||||
| Other operating revenue: | |||||||||||||||||||
| Brokerage and trading revenue | 28,515 | 32,338 | 32,874 | 31,751 | 31,958 | ||||||||||||||
| Transaction card revenue | 29,134 | 30,055 | 29,942 | 27,692 | 28,009 | ||||||||||||||
| Trust fees and commissions | 25,074 | 23,892 | 24,803 | 22,313 | 22,030 | ||||||||||||||
| Deposit service charges and fees | 23,440 | 24,742 | 23,962 | 22,966 | 24,174 | ||||||||||||||
| Mortgage banking revenue | 21,876 | 23,486 | 36,596 | 39,976 | 46,410 | ||||||||||||||
| Bank-owned life insurance | 2,285 | 2,408 | 2,236 | 3,226 | 2,673 | ||||||||||||||
| Other revenue | 12,048 | 8,314 | 8,760 | 9,140 | 9,661 | ||||||||||||||
| Total fees and commissions | 142,372 | 145,235 | 159,173 | 157,064 | 164,915 | ||||||||||||||
| Gain (loss) on other assets, net | 651 | (377 | ) | (1,666 | ) | 467 | 137 | ||||||||||||
| Gain (loss) on derivatives, net | (930 | ) | 31 | (2,527 | ) | (941 | ) | (637 | ) | ||||||||||
| Loss on fair value option securities, net | (2,805 | ) | (80 | ) | (9,156 | ) | (3,171 | ) | (2,081 | ) | |||||||||
| Change in fair value of mortgage servicing rights | 6,093 | (346 | ) | 14,315 | 2,658 | 4,689 | |||||||||||||
| Gain on available for sale securities, net | 1,634 | 478 | 3,753 | 4,855 | 1,066 | ||||||||||||||
| Total other-than-temporary impairment losses | — | (1,436 | ) | (1,138 | ) | — | (504 | ) | |||||||||||
| Portion of loss recognized in (reclassified from) other comprehensive income | — | (73 | ) | 586 | (247 | ) | (1,163 | ) | |||||||||||
| Net impairment losses recognized in earnings | — | (1,509 | ) | (552 | ) | (247 | ) | (1,667 | ) | ||||||||||
| Total other operating revenue | 147,015 | 143,432 | 163,340 | 160,685 | 166,422 | ||||||||||||||
| Other operating expense: | |||||||||||||||||||
| Personnel | 125,662 | 125,799 | 128,110 | 125,654 | 131,192 | ||||||||||||||
| Business promotion | 6,020 | 5,355 | 5,770 | 5,453 | 6,150 | ||||||||||||||
| Contribution to BOKF Foundation | — | 2,062 | — | — | 2,062 | ||||||||||||||
| Professional fees and services | 10,003 | 7,183 | 8,381 | 6,985 | 10,082 | ||||||||||||||
| Net occupancy and equipment | 19,103 | 17,280 | 16,909 | 16,481 | 16,883 | ||||||||||||||
| Insurance | 4,394 | 3,939 | 4,044 | 3,745 | 3,789 | ||||||||||||||
| Data processing and communications | 28,196 | 25,695 | 26,734 | 25,450 | 25,010 | ||||||||||||||
| Printing, postage and supplies | 3,126 | 3,505 | 3,580 | 3,674 | 3,403 | ||||||||||||||
| Net losses and operating expenses of repossessed assets | 1,618 | 2,014 | 282 | 1,246 | 6,665 | ||||||||||||||
| Amortization of intangible assets | 842 | 835 | 875 | 876 | 1,065 | ||||||||||||||
| Mortgage banking costs | 7,071 | 8,753 | 7,910 | 7,354 | 10,542 | ||||||||||||||
| Other expense | 9,384 | 7,878 | 8,326 | 7,064 | 9,931 | ||||||||||||||
| Total other operating expense | 215,419 | 210,298 | 210,921 | 203,982 | 226,774 | ||||||||||||||
| Net income before taxes | 109,240 | 109,523 | 121,311 | 136,155 | 127,909 | ||||||||||||||
| Federal and state income taxes | 35,318 | 33,461 | 41,423 | 47,096 | 44,293 | ||||||||||||||
| Net income | 73,922 | 76,062 | 79,888 | 89,059 | 83,616 | ||||||||||||||
| Net income (loss) attributable to non-controlling interest | 946 | 324 | (43 | ) | 1,095 | 1,051 | |||||||||||||
| Net income attributable to BOK Financial Corporation shareholders | $ | 72,976 | $ | 75,738 | $ | 79,931 | $ | 87,964 | $ | 82,565 | |||||||||
| Average shares outstanding: | |||||||||||||||||||
| Basic | 68,095,254 | 68,049,179 | 67,993,822 | 67,814,550 | 67,622,777 | ||||||||||||||
| Diluted | 68,293,758 | 68,272,861 | 68,212,497 | 68,040,180 | 67,914,717 | ||||||||||||||
| Net income per share: | |||||||||||||||||||
| Basic | $ | 1.06 | $ | 1.10 | $ | 1.16 | $ | 1.28 | $ | 1.21 | |||||||||
| Diluted | $ | 1.06 | $ | 1.10 | $ | 1.16 | $ | 1.28 | $ | 1.21 | |||||||||
14
LOANS TREND -- UNAUDITED BOK FINANCIAL CORPORATION (In thousands) | ||||||||||||||||||||
| December 31, 2013 | September 30, 2013 | June 30, 2013 | March 31, 2013 | December 31, 2012 | ||||||||||||||||
| Commercial: | ||||||||||||||||||||
| Energy | $ | 2,351,760 | $ | 2,311,991 | $ | 2,384,746 | $ | 2,349,432 | $ | 2,460,659 | ||||||||||
| Services | 2,282,210 | 2,148,551 | 2,204,253 | 2,114,799 | 2,164,186 | |||||||||||||||
| Wholesale/retail | 1,201,364 | 1,181,806 | 1,175,543 | 1,085,000 | 1,106,439 | |||||||||||||||
| Manufacturing | 391,751 | 382,460 | 386,133 | 399,818 | 348,484 | |||||||||||||||
| Healthcare | 1,274,246 | 1,160,212 | 1,118,810 | 1,081,636 | 1,081,406 | |||||||||||||||
| Integrated food services | 150,494 | 141,440 | 163,551 | 173,800 | 191,106 | |||||||||||||||
| Other commercial and industrial | 291,396 | 244,615 | 275,084 | 213,820 | 289,632 | |||||||||||||||
| Total commercial | 7,943,221 | 7,571,075 | 7,708,120 | 7,418,305 | 7,641,912 | |||||||||||||||
| Commercial real estate: | ||||||||||||||||||||
| Construction and land development | 206,258 | 216,456 | 225,654 | 237,829 | 253,093 | |||||||||||||||
| Retail | 586,047 | 556,918 | 553,412 | 584,279 | 522,786 | |||||||||||||||
| Office | 411,499 | 422,043 | 459,558 | 420,644 | 427,872 | |||||||||||||||
| Multifamily | 576,502 | 520,454 | 500,452 | 460,474 | 402,896 | |||||||||||||||
| Industrial | 243,877 | 245,022 | 253,990 | 237,049 | 245,994 | |||||||||||||||
| Other real estate | 391,170 | 388,336 | 324,030 | 344,885 | 376,358 | |||||||||||||||
| Total commercial real estate | 2,415,353 | 2,349,229 | 2,317,096 | 2,285,160 | 2,228,999 | |||||||||||||||
| Residential mortgage: | ||||||||||||||||||||
| Permanent mortgage | 1,062,744 | 1,078,661 | 1,095,871 | 1,091,575 | 1,123,965 | |||||||||||||||
| Permanent mortgages guaranteed by U.S. government agencies | 181,598 | 163,919 | 156,887 | 162,419 | 160,444 | |||||||||||||||
| Home equity | 807,684 | 792,185 | 787,027 | 758,456 | 760,631 | |||||||||||||||
| Total residential mortgage | 2,052,026 | 2,034,765 | 2,039,785 | 2,012,450 | 2,045,040 | |||||||||||||||
| Consumer: | ||||||||||||||||||||
| Indirect automobile | 6,513 | 10,757 | 16,555 | 24,368 | 34,735 | |||||||||||||||
| Other consumer | 375,151 | 384,274 | 359,226 | 353,281 | 360,770 | |||||||||||||||
| Total consumer | 381,664 | 395,031 | 375,781 | 377,649 | 395,505 | |||||||||||||||
| Total | $ | 12,792,264 | $ | 12,350,100 | $ | 12,440,782 | $ | 12,093,564 | $ | 12,311,456 | ||||||||||
15
LOANS BY PRINCIPAL MARKET AREA -- UNAUDITED BOK FINANCIAL CORPORATION (in thousands) | |||||||||||||||||||
| December 31, 2013 | September 30, 2013 | June 30, 2013 | March 31, 2013 | December 31, 2012 | |||||||||||||||
| Bank of Oklahoma: | |||||||||||||||||||
| Commercial | $ | 2,902,140 | $ | 2,801,979 | $ | 2,993,247 | $ | 2,853,608 | $ | 3,089,686 | |||||||||
| Commercial real estate | 602,010 | 564,141 | 569,780 | 568,500 | 580,694 | ||||||||||||||
| Residential mortgage | 1,524,212 | 1,497,027 | 1,503,457 | 1,468,434 | 1,488,486 | ||||||||||||||
| Consumer | 192,283 | 207,360 | 211,744 | 207,662 | 220,096 | ||||||||||||||
| Total Bank of Oklahoma | 5,220,645 | 5,070,507 | 5,278,228 | 5,098,204 | 5,378,962 | ||||||||||||||
| Bank of Texas: | |||||||||||||||||||
| Commercial | 3,052,274 | 2,858,970 | 2,849,888 | 2,718,050 | 2,726,925 | ||||||||||||||
| Commercial real estate | 816,574 | 853,857 | 813,659 | 800,577 | 771,796 | ||||||||||||||
| Residential mortgage | 260,544 | 263,945 | 263,916 | 272,406 | 275,408 | ||||||||||||||
| Consumer | 131,297 | 129,144 | 105,390 | 110,060 | 116,252 | ||||||||||||||
| Total Bank of Texas | 4,260,689 | 4,105,916 | 4,032,853 | 3,901,093 | 3,890,381 | ||||||||||||||
| Bank of Albuquerque: | |||||||||||||||||||
| Commercial | 342,336 | 325,542 | 296,036 | 271,075 | 265,830 | ||||||||||||||
| Commercial real estate | 308,829 | 306,914 | 314,871 | 332,928 | 326,135 | ||||||||||||||
| Residential mortgage | 133,900 | 131,756 | 133,058 | 129,727 | 130,337 | ||||||||||||||
| Consumer | 13,842 | 14,583 | 14,364 | 14,403 | 15,456 | ||||||||||||||
| Total Bank of Albuquerque | 798,907 | 778,795 | 758,329 | 748,133 | 737,758 | ||||||||||||||
| Bank of Arkansas: | |||||||||||||||||||
| Commercial | 81,556 | 73,063 | 61,414 | 54,191 | 62,049 | ||||||||||||||
| Commercial real estate | 78,264 | 84,364 | 85,546 | 88,264 | 90,821 | ||||||||||||||
| Residential mortgage | 7,922 | 10,466 | 10,691 | 11,285 | 13,046 | ||||||||||||||
| Consumer | 8,023 | 9,426 | 11,819 | 13,943 | 15,421 | ||||||||||||||
| Total Bank of Arkansas | 175,765 | 177,319 | 169,470 | 167,683 | 181,337 | ||||||||||||||
| Colorado State Bank & Trust: | |||||||||||||||||||
| Commercial | 735,626 | 748,331 | 786,262 | 822,942 | 776,610 | ||||||||||||||
| Commercial real estate | 190,355 | 158,320 | 146,137 | 171,251 | 173,327 | ||||||||||||||
| Residential mortgage | 62,821 | 66,475 | 62,490 | 56,052 | 59,363 | ||||||||||||||
| Consumer | 22,686 | 22,592 | 23,148 | 20,990 | 19,333 | ||||||||||||||
| Total Colorado State Bank & Trust | 1,011,488 | 995,718 | 1,018,037 | 1,071,235 | 1,028,633 | ||||||||||||||
| Bank of Arizona: | |||||||||||||||||||
| Commercial | 417,702 | 379,817 | 355,698 | 326,266 | 313,296 | ||||||||||||||
| Commercial real estate | 257,477 | 250,129 | 258,938 | 229,020 | 201,760 | ||||||||||||||
| Residential mortgage | 47,111 | 49,109 | 51,774 | 54,285 | 57,803 | ||||||||||||||
| Consumer | 7,887 | 7,059 | 4,947 | 5,664 | 4,686 | ||||||||||||||
| Total Bank of Arizona | 730,177 | 686,114 | 671,357 | 615,235 | 577,545 | ||||||||||||||
| Bank of Kansas City: | |||||||||||||||||||
| Commercial | 411,587 | 383,373 | 365,575 | 372,173 | 407,516 | ||||||||||||||
| Commercial real estate | 161,844 | 131,504 | 128,165 | 94,620 | 84,466 | ||||||||||||||
| Residential mortgage | 15,516 | 15,987 | 14,399 | 20,261 | 20,597 | ||||||||||||||
| Consumer | 5,646 | 4,867 | 4,369 | 4,927 | 4,261 | ||||||||||||||
| Total Bank of Kansas City | 594,593 | 535,731 | 512,508 | 491,981 | 516,840 | ||||||||||||||
| TOTAL BOK FINANCIAL | $ | 12,792,264 | $ | 12,350,100 | $ | 12,440,782 | $ | 12,093,564 | $ | 12,311,456 | |||||||||
Loans attributed to a geographical region may not always represent the location of the borrower or the collateral.
16
DEPOSITS BY PRINCIPAL MARKET AREA -- UNAUDITED BOK FINANCIAL CORPORATION (in thousands) | |||||||||||||||||||
| December 31, 2013 | September 30, 2013 | June 30, 2013 | March 31, 2013 | December 31, 2012 | |||||||||||||||
| Bank of Oklahoma: | |||||||||||||||||||
| Demand | $ | 3,432,940 | $ | 3,442,831 | $ | 3,552,328 | $ | 3,591,661 | $ | 4,207,263 | |||||||||
| Interest-bearing: | |||||||||||||||||||
| Transaction | 6,318,045 | 5,565,462 | 5,644,959 | 6,132,736 | 6,023,384 | ||||||||||||||
| Savings | 191,880 | 189,186 | 185,345 | 185,363 | 163,512 | ||||||||||||||
| Time | 1,214,507 | 1,197,617 | 1,179,869 | 1,264,365 | 1,267,854 | ||||||||||||||
| Total interest-bearing | 7,724,432 | 6,952,265 | 7,010,173 | 7,582,464 | 7,454,750 | ||||||||||||||
| Total Bank of Oklahoma | 11,157,372 | 10,395,096 | 10,562,501 | 11,174,125 | 11,662,013 | ||||||||||||||
| Bank of Texas: | |||||||||||||||||||
| Demand | 2,481,603 | 2,498,668 | 2,299,632 | 2,098,891 | 2,606,176 | ||||||||||||||
| Interest-bearing: | |||||||||||||||||||
| Transaction | 1,966,580 | 1,853,586 | 1,931,758 | 1,979,318 | 2,129,084 | ||||||||||||||
| Savings | 64,632 | 63,368 | 63,745 | 63,218 | 58,429 | ||||||||||||||
| Time | 638,465 | 667,873 | 692,888 | 717,974 | 762,233 | ||||||||||||||
| Total interest-bearing | 2,669,677 | 2,584,827 | 2,688,391 | 2,760,510 | 2,949,746 | ||||||||||||||
| Total Bank of Texas | 5,151,280 | 5,083,495 | 4,988,023 | 4,859,401 | 5,555,922 | ||||||||||||||
| Bank of Albuquerque: | |||||||||||||||||||
| Demand | 502,395 | 491,894 | 455,580 | 446,841 | 427,510 | ||||||||||||||
| Interest-bearing: | |||||||||||||||||||
| Transaction | 529,140 | 541,565 | 525,481 | 513,774 | 511,758 | ||||||||||||||
| Savings | 33,944 | 34,003 | 34,096 | 35,560 | 31,926 | ||||||||||||||
| Time | 327,281 | 334,946 | 346,506 | 354,303 | 364,928 | ||||||||||||||
| Total interest-bearing | 890,365 | 910,514 | 906,083 | 903,637 | 908,612 | ||||||||||||||
| Total Bank of Albuquerque | 1,392,760 | 1,402,408 | 1,361,663 | 1,350,478 | 1,336,122 | ||||||||||||||
| Bank of Arkansas: | |||||||||||||||||||
| Demand | 38,566 | 33,378 | 31,778 | 32,761 | 39,897 | ||||||||||||||
| Interest-bearing: | |||||||||||||||||||
| Transaction | 144,018 | 205,891 | 187,223 | 156,079 | 101,868 | ||||||||||||||
| Savings | 1,986 | 1,919 | 1,974 | 2,642 | 2,239 | ||||||||||||||
| Time | 32,949 | 35,184 | 37,272 | 41,613 | 42,573 | ||||||||||||||
| Total interest-bearing | 178,953 | 242,994 | 226,469 | 200,334 | 146,680 | ||||||||||||||
| Total Bank of Arkansas | 217,519 | 276,372 | 258,247 | 233,095 | 186,577 | ||||||||||||||
| Colorado State Bank & Trust: | |||||||||||||||||||
| Demand | 409,942 | 375,060 | 367,407 | 298,470 | 336,252 | ||||||||||||||
| Interest-bearing: | |||||||||||||||||||
| Transaction | 541,675 | 536,734 | 519,584 | 528,060 | 676,144 | ||||||||||||||
| Savings | 26,880 | 27,782 | 27,948 | 27,187 | 25,889 | ||||||||||||||
| Time | 407,088 | 424,225 | 451,168 | 461,496 | 472,305 | ||||||||||||||
| Total interest-bearing | 975,643 | 988,741 | 998,700 | 1,016,743 | 1,174,338 | ||||||||||||||
| Total Colorado State Bank & Trust | 1,385,585 | 1,363,801 | 1,366,107 | 1,315,213 | 1,510,590 | ||||||||||||||
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DEPOSITS BY PRINCIPAL MARKET AREA -- UNAUDITED BOK FINANCIAL CORPORATION (in thousands) | |||||||||||||||||||
| December 31, 2013 | September 30, 2013 | June 30, 2013 | March 31, 2013 | December 31, 2012 | |||||||||||||||
| Bank of Arizona: | |||||||||||||||||||
| Demand | 204,092 | 188,365 | 186,382 | 157,754 | 161,093 | ||||||||||||||
| Interest-bearing: | |||||||||||||||||||
| Transaction | 364,736 | 339,158 | 376,305 | 378,420 | 360,276 | ||||||||||||||
| Savings | 2,432 | 2,511 | 2,238 | 2,122 | 1,978 | ||||||||||||||
| Time | 34,391 | 36,285 | 35,490 | 34,690 | 31,371 | ||||||||||||||
| Total interest-bearing | 401,559 | 377,954 | 414,033 | 415,232 | 393,625 | ||||||||||||||
| Total Bank of Arizona | 605,651 | 566,319 | 600,415 | 572,986 | 554,718 | ||||||||||||||
| Bank of Kansas City: | |||||||||||||||||||
| Demand | 246,739 | 301,780 | 252,216 | 274,482 | 260,095 | ||||||||||||||
| Interest-bearing: | |||||||||||||||||||
| Transaction | 69,857 | 77,414 | 81,250 | 53,915 | 85,524 | ||||||||||||||
| Savings | 1,252 | 1,080 | 1,029 | 983 | 771 | ||||||||||||||
| Time | 41,312 | 23,890 | 24,779 | 25,613 | 26,728 | ||||||||||||||
| Total interest-bearing | 112,421 | 102,384 | 107,058 | 80,511 | 113,023 | ||||||||||||||
| Total Bank of Kansas City | 359,160 | 404,164 | 359,274 | 354,993 | 373,118 | ||||||||||||||
| TOTAL BOK FINANCIAL | $ | 20,269,327 | $ | 19,491,655 | $ | 19,496,230 | $ | 19,860,291 | $ | 21,179,060 | |||||||||
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NET INTEREST MARGIN TREND -- UNAUDITED BOK FINANCIAL CORPORATION | ||||||||||||||
| Three Months Ended | ||||||||||||||
| December 31, 2013 | September 30, 2013 | June 30, 2013 | March 31, 2013 | December 31, 2012 | ||||||||||
| TAX-EQUIVALENT ASSETS YIELDS | ||||||||||||||
| Interest-bearing cash and cash equivalents | 0.18 | % | 0.22 | % | 0.27 | % | 0.19 | % | 0.21 | % | ||||
| Trading securities | 1.73 | % | 2.25 | % | 2.40 | % | 2.13 | % | 1.54 | % | ||||
| Investment securities: | ||||||||||||||
| Taxable | 5.75 | % | 5.78 | % | 5.88 | % | 5.88 | % | 5.90 | % | ||||
| Tax-exempt | 1.66 | % | 1.60 | % | 1.88 | % | 2.38 | % | 2.95 | % | ||||
| Total investment securities | 3.12 | % | 3.22 | % | 3.58 | % | 4.17 | % | 4.69 | % | ||||
| Available for sale securities: | ||||||||||||||
| Taxable | 1.89 | % | 1.92 | % | 1.94 | % | 2.09 | % | 2.15 | % | ||||
| Tax-exempt | 2.74 | % | 2.81 | % | 3.59 | % | 3.39 | % | 3.10 | % | ||||
| Total available for sale securities | 1.89 | % | 1.93 | % | 1.96 | % | 2.11 | % | 2.16 | % | ||||
| Fair value option securities | 2.06 | % | 1.80 | % | 1.92 | % | 2.06 | % | 1.64 | % | ||||
| Restricted equity securities | 5.06 | % | 3.05 | % | 4.05 | % | 4.30 | % | 4.15 | % | ||||
| Residential mortgage loans held for sale | 4.16 | % | 3.87 | % | 3.54 | % | 3.36 | % | 3.44 | % | ||||
| Loans | 4.01 | % | 4.06 | % | 4.12 | % | 4.20 | % | 4.33 | % | ||||
| Allowance for loan losses | ||||||||||||||
| Loans, net of allowance | 4.07 | % | 4.13 | % | 4.19 | % | 4.27 | % | 4.42 | % | ||||
| Total tax-equivalent yield on earning assets | 3.02 | % | 3.03 | % | 3.10 | % | 3.21 | % | 3.30 | % | ||||
| COST OF INTEREST-BEARING LIABILITIES | ||||||||||||||
| Interest-bearing deposits: | ||||||||||||||
| Interest-bearing transaction | 0.11 | % | 0.11 | % | 0.12 | % | 0.13 | % | 0.15 | % | ||||
| Savings | 0.12 | % | 0.13 | % | 0.15 | % | 0.16 | % | 0.18 | % | ||||
| Time | 1.55 | % | 1.55 | % | 1.57 | % | 1.62 | % | 1.80 | % | ||||
| Total interest-bearing deposits | 0.42 | % | 0.43 | % | 0.44 | % | 0.46 | % | 0.54 | % | ||||
| Funds purchased | 0.08 | % | 0.07 | % | 0.10 | % | 0.13 | % | 0.15 | % | ||||
| Repurchase agreements | 0.06 | % | 0.06 | % | 0.06 | % | 0.07 | % | 0.09 | % | ||||
| Other borrowings | 0.31 | % | 0.28 | % | 0.27 | % | 0.49 | % | 0.90 | % | ||||
| Subordinated debt | 2.48 | % | 2.52 | % | 2.54 | % | 2.52 | % | 2.56 | % | ||||
| Total cost of interest-bearing liabilities | 0.42 | % | 0.42 | % | 0.43 | % | 0.46 | % | 0.54 | % | ||||
| Tax-equivalent net interest revenue spread | 2.60 | % | 2.61 | % | 2.67 | % | 2.75 | % | 2.76 | % | ||||
| Effect of noninterest-bearing funding sources and other | 0.14 | % | 0.14 | % | 0.13 | % | 0.15 | % | 0.19 | % | ||||
| Tax-equivalent net interest margin | 2.74 | % | 2.75 | % | 2.80 | % | 2.90 | % | 2.95 | % | ||||
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.
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CREDIT QUALITY INDICATORS BOK FINANCIAL CORPORATION (in thousands, except ratios) | |||||||||||||||||||
| Three Months Ended | |||||||||||||||||||
| December 31, 2013 | September 30, 2013 | June 30, 2013 | March 31, 2013 | December 31, 2012 | |||||||||||||||
| Nonperforming assets: | |||||||||||||||||||
| Nonaccruing loans: | |||||||||||||||||||
| Commercial | $ | 16,760 | $ | 19,522 | $ | 20,869 | $ | 19,861 | $ | 24,467 | |||||||||
| Commercial real estate | 40,850 | 52,502 | 58,693 | 65,175 | 60,626 | ||||||||||||||
| Residential mortgage | 42,320 | 39,256 | 40,534 | 45,426 | 46,608 | ||||||||||||||
| Consumer | 1,219 | 1,624 | 2,037 | 2,171 | 2,709 | ||||||||||||||
| Total nonaccruing loans | 101,149 | 112,904 | 122,133 | 132,633 | 134,410 | ||||||||||||||
| Accruing renegotiated loans guaranteed by U.S. government agencies | 54,322 | 50,099 | 48,733 | 47,942 | 38,515 | ||||||||||||||
| Real estate and other repossessed assets: | |||||||||||||||||||
| Guaranteed by U.S. government agencies | 37,431 | 37,906 | 32,155 | 27,864 | 22,365 | ||||||||||||||
| Other | 54,841 | 70,216 | 77,957 | 74,837 | 81,426 | ||||||||||||||
| Total real estate and other repossessed assets | 92,272 | 108,122 | 110,112 | 102,701 | 103,791 | ||||||||||||||
| Total nonperforming assets | $ | 247,743 | $ | 271,125 | $ | 280,978 | $ | 283,276 | $ | 276,716 | |||||||||
| Total nonperforming assets excluding those guaranteed by U.S. government agencies | $ | 155,213 | $ | 182,543 | $ | 200,007 | $ | 207,256 | $ | 215,347 | |||||||||
| Nonaccruing loans by loan portfolio sector: | |||||||||||||||||||
| Commercial: | |||||||||||||||||||
| Energy | $ | 1,860 | $ | 1,953 | $ | 2,277 | $ | 2,377 | $ | 2,460 | |||||||||
| Manufacturing | 592 | 843 | 876 | 1,848 | 2,007 | ||||||||||||||
| Wholesale / retail | 6,969 | 7,223 | 6,700 | 2,239 | 3,077 | ||||||||||||||
| Integrated food services | — | — | — | — | 684 | ||||||||||||||
| Services | 4,922 | 6,927 | 7,448 | 9,474 | 12,090 | ||||||||||||||
| Healthcare | 1,586 | 1,733 | 2,670 | 2,962 | 3,166 | ||||||||||||||
| Other commercial and industrial | 831 | 843 | 898 | 961 | 983 | ||||||||||||||
| Total commercial | 16,760 | 19,522 | 20,869 | 19,861 | 24,467 | ||||||||||||||
| Commercial real estate: | |||||||||||||||||||
| Construction and land development | 17,377 | 20,784 | 21,135 | 23,462 | 26,131 | ||||||||||||||
| Retail | 4,857 | 7,914 | 8,406 | 8,921 | 8,117 | ||||||||||||||
| Office | 6,391 | 6,838 | 7,828 | 12,851 | 6,829 | ||||||||||||||
| Multifamily | 7 | 4,350 | 6,447 | 4,501 | 2,706 | ||||||||||||||
| Industrial | 252 | — | — | 2,198 | 3,968 | ||||||||||||||
| Other commercial real estate | 11,966 | 12,616 | 14,877 | 13,242 | 12,875 | ||||||||||||||
| Total commercial real estate | 40,850 | 52,502 | 58,693 | 65,175 | 60,626 | ||||||||||||||
| Residential mortgage: | |||||||||||||||||||
| Permanent mortgage | 34,279 | 31,797 | 32,747 | 38,153 | 39,863 | ||||||||||||||
| Permanent mortgage guaranteed by U.S. government agencies | 777 | 577 | 83 | 214 | 489 | ||||||||||||||
| Home equity | 7,264 | 6,882 | 7,704 | 7,059 | 6,256 | ||||||||||||||
| Total residential mortgage | 42,320 | 39,256 | 40,534 | 45,426 | 46,608 | ||||||||||||||
| Consumer | 1,219 | 1,624 | 2,037 | 2,171 | 2,709 | ||||||||||||||
| Total nonaccruing loans | $ | 101,149 | $ | 112,904 | $ | 122,133 | $ | 132,633 | $ | 134,410 | |||||||||
Performing loans 90 days past due1 | $ | 1,415 | $ | 188 | $ | 2,460 | $ | 4,229 | $ | 3,925 | |||||||||
20
CREDIT QUALITY INDICATORS BOK FINANCIAL CORPORATION (in thousands, except ratios) | |||||||||||||||||||
| Three Months Ended | |||||||||||||||||||
| December 31, 2013 | September 30, 2013 | June 30, 2013 | March 31, 2013 | December 31, 2012 | |||||||||||||||
| Gross charge-offs | $ | (3,113 | ) | $ | (4,708 | ) | $ | (8,552 | ) | $ | (8,909 | ) | $ | (8,000 | ) | ||||
| Recoveries | 6,068 | 4,409 | 6,210 | 6,557 | 3,723 | ||||||||||||||
| Net recoveries (charge-offs) | $ | 2,955 | $ | (299 | ) | $ | (2,342 | ) | $ | (2,352 | ) | $ | (4,277 | ) | |||||
| Provision for credit losses | $ | (11,400 | ) | $ | (8,500 | ) | $ | — | $ | (8,000 | ) | $ | (14,000 | ) | |||||
| Allowance for loan losses to period end loans | 1.45 | % | 1.57 | % | 1.63 | % | 1.70 | % | 1.75 | % | |||||||||
| Combined allowance for credit losses to period end loans | 1.47 | % | 1.59 | % | 1.65 | % | 1.71 | % | 1.77 | % | |||||||||
| Nonperforming assets to period end loans and repossessed assets | 1.92 | % | 2.18 | % | 2.24 | % | 2.32 | % | 2.23 | % | |||||||||
| Net charge-offs (annualized) to average loans | (0.09 | )% | 0.01 | % | 0.08 | % | 0.08 | % | 0.14 | % | |||||||||
| Allowance for loan losses to nonaccruing loans | 183.29 | % | 172.12 | % | 166.31 | % | 155.29 | % | 160.34 | % | |||||||||
| Combined allowance for credit losses to nonaccruing loans | 185.35 | % | 173.54 | % | 167.63 | % | 156.12 | % | 161.76 | % | |||||||||
1 Excludes residential mortgage loans guaranteed by agencies of the U.S. government. | |||||||||||||||||||
21