BOK Financial Reports Quarterly Earnings Of $65 Million Or $0.94 Per Share

BOK Financial Corporation reported net income of $64.8 million or $0.94 per diluted share for the first quarter of 2011, up from $58.8 million or $0.86 per diluted share for the fourth quarter of 2010 and $60.1 million or $0.88 per diluted share for the first quarter of 2010.

“BOK Financial is pleased to announce a strong start to 2011 with record earnings for the first quarter,” said President and CEO Stan Lybarger. “The Company’s performance and capital position allows us to increase our quarterly cash dividend. This is the sixth consecutive annual increase since we paid our first cash dividend in the second quarter of 2005. Outstanding commercial loan balances were up in most of our markets and net interest revenue increased over the previous quarter. We continue to see steady credit quality improvements.”

Highlights of first quarter of 2011 included:
  • Net interest revenue totaled $170.6 million compared to $163.7 million for the fourth quarter of 2010. Net interest margin increased to 3.46% for the first quarter of 2011 compared to 3.19% for the fourth quarter of 2010. The yield on the securities portfolio improved as actual and expected prepayment speeds slowed in response to an increase in interest rates which began in the previous quarter.
  • Fees and commissions revenue totaled $123.3 million compared to $136.0 million for the fourth quarter of 2010. Mortgage banking revenue decreased $7.8 million due to reduced origination volumes.
  • Changes in the fair value of mortgage servicing rights, net of economic hedge, decreased pre-tax net income for the first quarter of 2011 by $2.8 million and increased pre-tax net income for the fourth quarter of 2010 by $6.6 million.
  • Operating expenses, excluding changes in the fair value of mortgage servicing rights, totaled $181.6 million, down $21.9 million compared to the prior quarter. Personnel expenses decreased $6.8 million due primarily to lower incentive compensation expense. Non-personnel expenses decreased $15.1 million due primarily to lower mortgage banking expenses and other operating expense.
  • Provision for credit losses totaled $6.3 million for the first quarter of 2011 compared to $7.0 million for the fourth quarter of 2010. Net loans charged off decreased to $10.3 million from $14.2 million for the previous quarter.
  • Combined allowance for credit losses totaled $303 million or 2.86% of outstanding loans at March 31, 2011 and $307 million or 2.89% of outstanding loans at December 31, 2010. Nonperforming assets totaled $379 million or 3.54% of outstanding loans and repossessed assets at March 31, 2011 and $394 million or 3.66% of outstanding loans and repossessed assets at December 31, 2010.
  • Outstanding loan balances were $10.6 billion at March 31, 2011, down $53 million since December 31, 2010. Commercial loan balances increased $114 million during the first quarter of 2011 primarily in the manufacturing, energy and healthcare sectors. Lower outstanding construction and land development loan balances decreased commercial real estate loans by $54 million. Residential mortgage loans decreased $51 million and consumer loans decreased $62 million.
  • Total period end deposits increased $694 million during the first quarter of 2011 to $17.9 billion. All categories of deposits increased during the first quarter. Deposit growth was largely centered on commercial customers across most of our markets.
  • Tangible common equity ratio increased to 9.54% at March 31, 2011 from 9.21% at December 31, 2010, due to retained earnings growth. 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, such as equity provided by the U.S. Treasury’s Asset Relief Program (“TARP”). BOK Financial chose not to participate in the TARP Capital Purchase Program. The Company and each of its subsidiary banks exceeded the regulatory definition of well capitalized. The Company’s Tier 1 capital ratios, as defined by banking regulations, were 12.97% at March 31, 2011 and 12.69% at December 31, 2010.
  • The Company paid a cash dividend of $17.1 million or $0.25 per common share during the first quarter of 2011. The Company will increase the quarterly cash dividend to $0.275 per common share payable on or about May 27, 2011 to shareholders of record as of May 13, 2011.

Net Interest Revenue

Net interest revenue increased $7.0 million over the fourth quarter of 2010. Net interest margin increased 27 basis points over the prior quarter to 3.46%. Average earning assets decreased $491 million.

The increase in net interest revenue and net interest margin resulted from improved yield on the securities portfolio. Extremely low intermediate and long-term interest rates experienced in the early fourth quarter of 2010 increased actual and projected prepayment speeds which reduced security portfolio yields through accelerated premium amortization and lower reinvestment rates. As intermediate and long-term interest rates increased near the end of the fourth quarter and stabilized throughout the first quarter of 2011, premium amortization slowed and reinvestment rates improved. The securities portfolio yield increased 52 basis points to 3.25%. The loan portfolio yield and the cost of interest-bearing liabilities were largely unchanged compared to the previous quarter.

The average balance of the securities portfolio decreased $319 million including a $239 million decrease in available for sale securities and a $78 million decrease in mortgage trading securities held as an economic hedge of mortgage servicing rights. Average outstanding loans decreased $13 million. The growth in average commercial loan balances was offset by decreases in commercial real estate, residential mortgage and consumer loans.

Average deposits increased $428 million over the previous quarter. Interest-bearing transaction account balances increased $307 million, demand deposit account balances increased $94 million and time deposit account balances increased $15 million. Average balances of borrowed funds decreased $1.0 billion from the previous quarter.

Fees and Commissions Revenue

Fees and commissions revenue decreased $12.7 million to $123.3 million for the first quarter of 2011 due primarily to a $7.8 million decrease in mortgage banking revenue and a $3.2 million decrease in brokerage and trading revenue.

The decrease in mortgage banking revenue was due to lower mortgage loan volume. Fundings of residential mortgage loans for sale totaled $452 million in the first quarter of 2011 and $822 million in the fourth quarter of 2010. Brokerage and trading revenue decreased due primarily to a $2.6 million credit loss on certain mortgage banking customer risk management derivative contracts and lower loan syndication fees. The derivatives credit loss was largely offset by a decrease in related incentive compensation expense.

Operating Expenses

Total operating expenses were $178.4 million for both the first quarter of 2011 and the fourth quarter of 2010. Excluding changes in the fair value of mortgage servicing rights, operating expenses totaled $181.6 million, down $21.9 million from the fourth quarter of 2010.

Personnel costs decreased $6.8 million from the prior quarter, primarily due to reduced incentive compensation. Cash-based incentive compensation decreased $6.9 million, including a decrease in incentive compensation related to derivative losses. Deferred compensation expense, which is directly linked to changes in the market value of Company stock and performance of other investments, decreased $2.2 million.

Non-personnel expenses decreased $15.1 million from the fourth quarter of 2010. Mortgage banking expenses decreased $5.5 million primarily due to lower provisions for losses on loans sold with recourse and foreclosure costs on loans serviced for others. Other expenses decreased $5.3 million due largely to a reduction in depreciation expense on equipment used in our leasing business. All other non-personnel expenses decreased by $4.3 million primarily due to decreases in professional fees, data processing costs and net losses and expenses on repossessed assets.

Credit Quality

Nonperforming assets decreased $15 million during the first quarter to $379 million or 3.54% of outstanding loans and repossessed assets at March 31, 2011. Nonaccruing loans decreased $4.9 million and repossessed assets decreased $10 million.

Nonaccruing loans totaled $226 million or 2.13% of outstanding loans at March 31, 2011 compared to $231 million or 2.17% of outstanding loans at December 31, 2010. During the first quarter of 2011, $55 million of new nonaccruing loans were identified offset by $24 million in payments received, $15 million in charge-offs and $21 million in foreclosures and repossessions .

Nonaccruing commercial loans totaled $57 million or 0.95% of total commercial loans at March 31, 2011. Nonaccruing loans in the wholesale/retail sector totaled $30 million or 3.09% of total wholesale/retail sector loans and nonaccruing services sector loans totaled $16 million or 0.99% of total services sector loans. Nonaccruing commercial loans increased $19 million over December 31, 2010 primarily due to a $22 million increase in nonaccruing wholesale/retail sector loans largely due to a single customer relationship. Newly identified nonaccruing commercial loans totaled $31 million, offset by $8.4 million in payments, $2.4 million in charge-offs and $1.1 million in foreclosures.

Nonaccruing commercial real estate loans totaled $126 million or 5.65% of outstanding commercial real estate loans at March 31, 2011, down $25 million from December 31, 2010. Nonaccruing commercial real estate loans attributed to various markets included $44 million or 21% of total commercial real estate loans in Arizona and $34 million or 20% of total commercial real estate loans in Colorado. Nonaccruing commercial real estate loans continued to be largely concentrated in land development and residential construction loans with $91 million or 23% of all land development and construction loans nonaccruing at March 31, 2011. Newly identified nonaccruing commercial real estate loans totaled $6.9 million, offset by $12 million of cash payments received, $6.9 million of charge-offs and $13 million of foreclosures.

Nonaccruing residential mortgage loans totaled $38 million or 2.13% of outstanding residential mortgage loans at March 31, 2011, up $398 thousand over December 31, 2010. Residential mortgage loans past due 90 days or more and still accruing interest totaled $1.2 million, down from $2.0 million at December 31, 2010. Residential mortgage loans past due 30 to 89 days totaled $14 million, down $9.3 million from December 31, 2010.

The combined allowance for credit losses totaled $303 million or 2.86% of outstanding loans and 134% of nonaccruing loans at March 31, 2011. The allowance for loan losses was $290 million and the allowance for off-balance sheet credit losses was $13 million. Approximately $66 million of impaired loans, which consist primarily of nonaccruing commercial and commercial real estate loans, have been charged-down to the amount management expects to recover and accordingly have no allowance for loan loss attributed to them. The remaining $132 million of impaired loans have $9.8 million of the allowance for loan losses attributed to them.

Real estate and other repossessed assets totaled $131 million at March 31, 2011 primarily consisting of $56 million of 1-4 family residential properties and residential land development properties, $46 million of developed commercial real estate properties and $25 million of undeveloped land. The distribution of real estate owned and other repossessed assets among various markets included $42 million attributed to Arizona, $32 million attributed to Texas, $16 million attributed to Colorado and $12 million attributed to Oklahoma. Real estate and other repossessed assets decreased by $10 million during the first quarter due to additions of $21 million partially offset by $15 million in sales and $4.3 million in write-downs and losses. In addition, the $12 million cost basis of shares of the entity in which we hold an equity interest were transferred to the available for sale securities portfolio as the shares are listed for trading on a national stock exchange.

The Company also has off-balance sheet obligations related to certain community development residential mortgage loans sold to U.S. government agencies with recourse. These mortgage loans were underwritten to standards approved by the agencies, including full documentation and originated under programs available only for owner-occupied properties. The outstanding principal balance of these loans totaled $284 million at March 31, 2011, down from $289 million at December 31, 2010. The loans are primarily to borrowers in our primary market areas, including $200 million in Oklahoma, $30 million in Arkansas, $17 million in New Mexico, $15 million in Kansas/Missouri and $13 million in Texas. At March 31, 2011, approximately 6% of these loans are nonperforming and 5% were past due 30 to 89 days. A separate allowance for credit risk of $16 million is available for losses on these loans.

Securities and Derivatives

The fair value of available for sale securities totaled $9.7 billion at March 31, 2011, a $397 million increase over December 31, 2010. The available for sale portfolio consisted primarily of residential mortgage-backed securities, including $8.9 billion fully backed by U.S. government agencies and $573 million privately issued by publicly owned financial institutions. Privately issued mortgage-backed securities included $391 million backed by Jumbo-A residential mortgage loans and $182 million backed by Alt-A residential mortgage loans.

Net unrealized gains on available for sale securities totaled $201 million at March 31, 2011 and $200 million at December 31, 2010. Net unrealized gains on residential mortgage-backed securities issued by U.S. government agencies decreased $26 million to $227 million at March 31, 2011. Net unrealized losses on privately-issued residential mortgage-backed securities decreased $14 million to $57 million at March 31, 2011. Net unrealized gains on equity securities and mutual funds increased $13 million to $27 million at March 31, 2011.

The amortized cost of privately issued residential mortgage-backed securities totaled $630 million at March 31, 2011, down $85 million since December 31, 2010 due primarily to cash received. Approximately $498 million of the privately issued residential mortgage-backed securities were rated below investment grade by at least one nationally-recognized rating agency. Cash received during the first quarter reduced the amortized cost of privately issued residential mortgage-backed securities rated below investment grade by $25 million. Amortized cost of these securities was also reduced by $4.6 million for credit-related impairment charges during the first quarter. Aggregate unrealized losses on privately-issued residential mortgage-backed securities rated below investment grade totaled $51 million at March 31, 2011. Aggregate unrealized losses on these same below investment grade securities were $62 million at December 31, 2010.

The Company recognized $4.9 million of net gains on sale of $793 million of available for sale securities in the first quarter of 2011 and $953 thousand of net gains on the sale of $536 million of available for sale securities in the fourth quarter of 2010. Securities were sold either to mitigate extension exposure from rising interest rates or because they had reached their expected maximum potential total return.

Certain residential mortgage-backed securities and derivative contracts are held by the Company as an economic hedge against the changes in the fair value of the mortgage servicing rights that fluctuates due to changes in prepayment speeds and other assumptions. Changes in the fair value of mortgage servicing rights, net of economic hedge reduced pre-tax net income by $2.8 million in the first quarter of 2011 compared to an increase in pre-tax net income of $6.6 million in the fourth quarter of 2010.
   
Three Months Ended

March 31,

2011
 

Dec. 31,

2010
 

March 31,

2010
   
Loss on mortgage hedge derivative contracts $ (2,419 ) $ (7,392 ) $ (659 )
Gain (loss) on mortgage trading securities       (3,518 )     (11,117 )     448  

Total loss on financial instruments held as an economic hedge of mortgage servicing rights
(5,937 ) (18,509 ) (211 )

Gain on change in fair value of mortgage servicing rights
      3,129       25,111       2,100(1 )

Gain (loss) on changes in fair value of mortgage servicing rights, net of economic hedges
    $ (2,808 )   $ 6,602     $ 1,889  
 
Net interest revenue on mortgage trading securities     $ 3,058     $ 4,232     $ 4,237  

1 Excludes $11.8 million day-one gain on the purchase of mortgage servicing rights

Loans, Deposits and Capital

Loans

Outstanding loans at March 31, 2011 were $10.6 billion, down $53 million from December 31, 2010. Commercial loan balances were up $114 million primarily in the manufacturing, energy and healthcare sectors. Construction and land development commercial real estate loans decreased $54 million, residential mortgage loans decreased $51 million and consumer loans decreased $62 million during the first quarter of 2011.

Outstanding commercial loans grew to $6.0 billion at March 31, 2011. Manufacturing sector loans increased $55 million, energy sector loans increased $48 million and healthcare sector loans increased $31 million. Wholesale/retail sector loans decreased by $26 million from December 31, 2010. Unfunded energy loan commitments decreased $118 million to $1.9 billion. Unfunded commercial loan commitments, excluding the energy sector of the portfolio, remained at $2.5 billion at March 31, 2011.

Commercial real estate loans totaled $2.2 billion at March 31, 2011, down $54 million from December 31, 2010. Residential construction and land development loans continued to decrease, down $54 million during the first quarter. The decrease in commercial real estate loans was largely concentrated in the Oklahoma and Colorado markets, partially offset by an increase commercial real estate loans in the Arizona and Texas markets. Unfunded commercial real estate loan commitments increased $44 million during the first quarter to $281 million.

Permanent residential mortgage loans decreased $58 million. The residential mortgage loan portfolio generally represents variable rate jumbo mortgage loans that exceed the maximum principal balances set by government sponsored agency standards, but otherwise generally conform to those standards. Low interest rates in the first quarter continued a trend in increased demand to refinance these mortgage loans into long-term fixed rate loans. Generally we do not offer this type of loan because of excessive future interest rate risk. Additionally, home equity loans increased $7.2 million.

Consumer loans decreased $62 million compared to the prior quarter primarily due to $41 million in continued runoff of indirect automobile loans related to the previously announced decision to curtail that business in favor of a customer-focused direct approach to consumer lending. The outstanding balance of other consumer loans decreased $21 million.

Deposits

Total deposits increased $694 million during the first quarter to $17.9 billion at March 31, 2011. Interest-bearing transaction account balances increased $274 million, demand deposit balances increased $236 million and time deposits increased $168 million. Among the lines of business, commercial deposits increased $1.3 billion, partially offset by seasonal decreases in consumer deposits of $547 million and wealth management deposits of $115 million. Growth in commercial deposit balances was largely driven by small business and commercial and industrial customers.

Capital

The Company and its subsidiary bank exceeded the regulatory definition of well capitalized at March 31, 2011. The Company’s Tier 1 and total capital ratios were 12.97% and 16.48%, respectively, at March 31, 2011. Tier 1 and total capital ratios were 12.69% and 16.20%, respectively, at December 31, 2010. In addition the Company’s tangible common equity ratio, a non-GAAP measure, was 9.54% at March 31, 2011 and 9.21% at December 31, 2010. Unrealized securities gains added 45 basis points to the tangible common equity ratio at March 31, 2011.

Effective January 1, 2011, the Company combined each of its subsidiary banks into a newly-named entity, BOKF, NA. Divisions of BOKF, NA will continue to operate in each market under established bank trade names. Regulatory capital ratios for BOKF, NA will be more closely aligned with consolidated regulatory capital ratios for BOK Financial Corporation.

About BOK Financial Corporation

BOK Financial is a regional financial services company that provides commercial and consumer banking, investment and trust services, mortgage origination and servicing, and an electronic funds transfer network. Holdings include BOKF, NA, BOSC, Inc., Cavanal Hill Investment Management, Inc., and Southwest Trust Company, N.A. Operating divisions of BOKF, NA include Bank of Albuquerque, Bank of Arizona, Bank of Arkansas, Bank of Oklahoma, Bank of Texas, Colorado State Bank and Trust, Bank of Kansas City and the TransFund electronic funds network. Shares of BOK Financial are traded on the NASDAQ under the symbol BOKF. For more information, visit www.bokf.com.

The Company will continue to evaluate critical assumptions and estimates, such as the adequacy of the allowance for credit losses and asset impairment as of March 31, 2011 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.

               
BALANCE SHEETS
BOK FINANCIAL CORPORATION
(In thousands)
Period Ended
March 31, December 31, March 31,
2011 2010 2010
(Unaudited) (Unaudited)
ASSETS
Cash and due from banks $ 805,928 $ 1,247,946 $ 902,575
Funds sold and resell agreements 2,462 21,458 29,410
Trading securities 80,719 55,467 115,641
Securities:
Available for sale 9,707,825 9,311,252 8,904,395
Investment 343,401 339,553 309,910
Mortgage trading securities   326,624     428,021     427,196  
Total securities 10,377,850 10,078,826 9,641,501
Residential mortgage loans held for sale 127,119 263,413 178,362
Loans:
Commercial 6,048,257 5,933,996 6,014,739
Commercial real estate 2,222,982 2,277,350 2,443,848
Residential mortgage 1,777,321 1,828,248 1,797,711
Consumer   541,275     603,442     714,926  
Total loans 10,589,835 10,643,036 10,971,224
Less allowance for loan losses   (289,549 )   (292,971 )   (299,717 )
Loans, net of allowance 10,300,286 10,350,065 10,671,507
Premises and equipment, net 265,532 265,465 279,152
Accrued revenue receivable 113,060 148,940 107,300
Goodwill 335,601 335,601 335,601
Intangible assets, net 12,906 13,803 17,315
Mortgage servicing rights, net 120,345 115,723 119,066
Real estate and other repossessed assets 131,420 141,394 121,933
Bankers' acceptances 1,884 1,222 2,945
Derivative contracts 245,124 270,445 325,364
Cash surrender value of bank-owned life insurance 258,322 255,442 248,927
Receivable on unsettled securities sales 242,828 135,059 -
Other assets   279,637     241,334     405,377  
TOTAL ASSETS $ 23,701,023   $ 23,941,603   $ 23,501,976  
 
 
 
LIABILITIES AND EQUITY
Deposits:
Demand $ 4,457,187 $ 4,220,764 $ 3,599,981
Interest-bearing transaction 9,528,864 9,255,362 8,093,725
Savings 209,264 193,767 179,554
Time   3,677,611     3,509,168     3,654,256  
Total deposits 17,872,926 17,179,061 15,527,516
Funds purchased 466,749 1,025,018 1,465,983
Repurchase agreements 1,006,051 1,258,762 1,172,280
Other borrowings 36,864 833,578 1,909,934
Subordinated debentures 398,744 398,701 398,578
Accrued interest, taxes, and expense 135,486 134,107 117,179
Bankers' acceptances 1,884 1,222 2,945
Due on unsettled securities purchases 843,904 160,425 103,186
Derivative contracts 156,038 215,420 311,685
Other liabilities   184,689     191,431     159,973  
TOTAL LIABILITIES 21,103,335 21,397,725 21,169,259
Shareholders' equity:
Capital, surplus and retained earnings 2,467,820 2,413,887 2,264,786
Accumulated other comprehensive income   108,313     107,839     47,657  
TOTAL SHAREHOLDERS' EQUITY 2,576,133 2,521,726 2,312,443
Non-controlling interest   21,555     22,152     20,274  
TOTAL EQUITY   2,597,688     2,543,878     2,332,717  
TOTAL LIABILITIES AND EQUITY $ 23,701,023   $ 23,941,603   $ 23,501,976  
 
                         
AVERAGE BALANCE SHEETS - UNAUDITED
BOK FINANCIAL CORPORATION
(In thousands)
Quarter Ended
March 31, December 31, September 30, June 30, March 31,
2011 2010 2010 2010 2010
 
ASSETS
Funds sold and resell agreements $ 20,680 $ 21,128 $ 18,882 $ 22,776 $ 32,363
Trading securities 60,768 74,084 69,315 58,722 70,979
Securities:
Available for sale 9,423,201 9,662,055 9,270,710 8,892,175 8,884,678
Investment 339,246 341,941 336,455 335,117 256,003
Mortgage trading securities   397,093     474,731     602,049     435,693     366,845  
Total securities 10,159,540 10,478,727 10,209,214 9,662,985 9,507,526
Residential mortgage loans held for sale 125,494 282,734 242,559 183,489 137,404
Loans:
Commercial 6,084,765 5,946,960 6,003,159 6,060,642 6,132,889
Commercial real estate 2,236,400 2,282,779 2,335,226 2,359,958 2,492,535
Residential mortgage 1,788,049 1,832,624 1,893,162 1,848,692 1,833,602
Consumer   544,542     604,830     629,968     702,174     728,294  
Total loans 10,653,756 10,667,193 10,861,515 10,971,466 11,187,320
Less allowance for loan losses   (295,014 )   (307,223 )   (308,139 )   (312,595 )   (309,194 )
Total loans, net   10,358,742     10,359,970     10,553,376     10,658,871     10,878,126  
Total earning assets 20,725,224 21,216,643 21,093,346 20,586,843 20,626,398
Cash and due from banks 1,095,910 1,092,979 989,782 903,555 1,089,971
Cash surrender value of bank-owned life insurance 256,456 255,530 252,912 249,914 247,415
Derivative contracts 211,895 249,861 267,952 288,853 300,865
Other assets   1,450,289     1,467,938     1,588,298     1,415,642     1,448,098  
TOTAL ASSETS $ 23,739,774   $ 24,282,951   $ 24,192,290   $ 23,444,807   $ 23,712,747  
 
LIABILITIES AND EQUITY
Deposits:
Demand $ 4,265,657 $ 4,171,595 $ 3,831,486 $ 3,660,910 $ 3,485,504
Interest-bearing transaction 9,632,595 9,325,573 8,699,495 8,287,296 7,963,752
Savings 203,638 191,235 189,512 184,376 170,990
Time   3,616,991     3,602,150     3,774,136     3,701,167     3,772,295  
Total deposits 17,718,881 17,290,553 16,494,629 15,833,749 15,392,541
Funds purchased 820,969 775,620 1,096,873 1,359,937 1,519,689
Repurchase agreements 1,062,359 1,201,760 1,130,215 1,131,147 1,055,597
Other borrowings 144,987 829,756 1,465,516 1,619,745 2,249,470
Subordinated debentures 398,723 398,680 398,638 398,598 398,559
Derivative contracts 144,492 197,330 228,297 243,089 276,696
Other liabilities   884,566     1,053,695     895,703     479,813     521,567  
TOTAL LIABILITIES 21,174,977 21,747,394 21,709,871 21,066,078 21,414,119
Total equity   2,564,797     2,535,557     2,482,419     2,378,729     2,298,628  
TOTAL LIABILITIES AND EQUITY $ 23,739,774   $ 24,282,951   $ 24,192,290   $ 23,444,807   $ 23,712,747  

 

 

 

 

 
     
STATEMENTS OF EARNINGS - UNAUDITED
BOK FINANCIAL CORPORATION
(In thousands, except per share data)
  Quarter Ended
March 31,
2011 2010
 
 
Interest revenue $ 202,089 $ 219,370
Interest expense   31,450     36,796  
Net interest revenue 170,639 182,574
Provision for credit losses   6,250     42,100  

Net interest revenue after provision for credit losses
164,389 140,474
 
Other operating revenue
Brokerage and trading revenue 25,376 21,035
Transaction card revenue 28,445 25,687
Trust fees and commissions 18,422 16,320
Deposit service charges and fees 22,480 26,792
Mortgage banking revenue 17,356 14,871
Bank-owned life insurance 2,863 2,972
Other revenue   8,332     7,638  
Total fees and commissions 123,274 115,315
Loss on other assets, net (68 ) (1,390 )
Loss on derivatives, net (2,413 ) (341 )
Gain on securities, net 1,384 4,524
Total other-than-temporary impairment losses - (9,708 )

Portion of loss recognized in (reclassified from) other comprehensive income
  (4,599 )   5,483  
Net impairment losses recognized in earnings   (4,599 )   (4,225 )
Total other operating revenue 117,578 113,883
 
Other operating expense
Personnel 99,994 96,824
Business promotion 4,624 3,978
Professional fees and services 7,458 6,401
Net occupancy and equipment 15,604 15,511
Insurance 6,186 6,533
Data processing and communications 22,503 20,309
Printing, postage and supplies 3,082 3,322

Net losses and operating expenses of repossessed assets
6,015 7,220
Amortization of intangible assets 896 1,324
Mortgage banking costs 6,471 9,267
Change in fair value of mortgage servicing rights (3,129 ) (13,932 )
Other expense   8,745     6,975  
Total other operating expense 178,449 163,732
 
Net income before taxes 103,518 90,625
Federal and state income taxes   38,752     30,283  
 
Net income 64,766 60,342
Net income (loss) attributable to non-controlling interest   (8 )   209  
 
Net income attributable to BOK Financial Corporation $ 64,774   $ 60,133  
 
Average shares outstanding:
Basic 67,901,722 67,592,315
Diluted 68,176,527 67,790,049
 
Net income per share:
Basic $ 0.95   $ 0.88  
Diluted $ 0.94   $ 0.88  
 
                 
FINANCIAL HIGHLIGHTS - UNAUDITED
BOK FINANCIAL CORPORATION
(In thousands, except ratio and share data)
Quarter Ended
March 31, December 31, September 30, June 30, March 31,
2011 2010 2010   2010 2010
 
Capital:
Period-end shareholders' equity $ 2,576,133 $ 2,521,726 $ 2,503,650 $ 2,428,738 $ 2,312,443
Risk weighted assets $ 16,416,387 $ 16,368,976 $ 16,484,702 $ 16,611,662 $ 16,787,566
Risk-based capital ratios:
Tier 1 12.97 % 12.69 % 12.30 % 11.90 % 11.45 %
Total capital 16.48 % 16.20 % 15.79 % 15.38 % 15.09 %
Leverage ratio 9.13 % 8.74 % 8.61 % 8.57 % 8.25 %
Tangible common equity ratio (A) 9.54 % 9.21 % 8.96 % 8.88 % 8.46 %
Tier 1 common equity ratio (B) 12.84 % 12.55 % 12.17 % 11.77 % 11.33 %
 
Common stock:
Book value per share $ 37.64 $ 36.97 $ 36.77 $ 35.67 $ 33.99
 
Market value per share:
High $ 56.32 $ 54.86 $ 50.58 $ 55.60 $ 53.11
Low $ 50.37 $ 44.83 $ 42.89 $ 47.45 $ 45.43
 
Cash dividends paid $ 17,102 $ 17,025 $ 16,856 $ 16,834 $ 16,304
Dividend payout ratio 26.40 % 28.94 % 26.23 % 26.50 % 27.11 %
Shares outstanding, net 68,438,422 68,207,689 68,091,126 68,080,797 68,042,918
Stock buy-back program:
Shares repurchased - - - - -
Amount $ -   $ -   $ -   $ -   $ -  
Average price per share $ -   $ -   $ - $ -   $ -  
 
Performance ratios (quarter annualized):
Return on average assets 1.11 % 0.96 % 1.05 % 1.09 % 1.03 %
Return on average equity 10.24 % 9.21 % 10.27 % 10.71 % 10.61 %
Net interest margin 3.46 % 3.19 % 3.50 % 3.63 % 3.68 %
Efficiency ratio 61.15 % 65.60 % 59.07 % 59.56 % 59.11 %
 
Other data:
Gain (loss) on economic hedge of mortgage servicing rights $ (5,937 ) $ (18,509 ) $ 8,045 $ 22,431 $ (211 )
Trust assets $ 32,013,487 $ 32,751,501 $ 31,460,021 $ 29,825,608 $ 30,739,254
Mortgage servicing portfolio $ 11,202,626 $ 11,263,130 $ 11,190,802 $ 11,057,385 $ 10,895,182
Mortgage loans funded for sale $ 451,821 $ 821,921 $ 756,022 $ 540,835 $ 383,293
Mortgage loan refinances to total fundings 49 % 72 % 64 % 34 % 55 %
Tax equivalent adjustment $ 2,321 $ 2,263 $ 2,152 $ 2,327 $ 2,416
Net unrealized gain on available for sale securities $ 201,340 $ 200,203 $ 255,421 $ 215,439 $ 107,754
 
(A) Tangible common equity ratio is a non-GAAP measure.
Reconciliation to a GAAP financial measure follows:
Total shareholders' equity $ 2,576,133 $ 2,521,726 $ 2,503,650 $ 2,428,738 $ 2,312,443
Less: Goodwill and intangible assets, net   (348,507 )   (349,404 )   (350,769 )   (351,592 )   (352,916 )
Tangible common equity $ 2,227,626   $ 2,172,322   $ 2,152,881   $ 2,077,146   $ 1,959,527  
 
Total assets $ 23,701,023 $ 23,941,603 $ 24,385,952 $ 23,736,728 $ 23,501,976
Less: Goodwill and intangible assets, net   (348,507 )   (349,404 )   (350,769 )   (351,592 )   (352,916 )
$ 23,352,516   $ 23,592,199   $ 24,035,183   $ 23,385,136   $ 23,149,060  
 
Tangible common equity ratio 9.54 % 9.21 % 8.96 % 8.88 % 8.46 %
 
(B) Tier 1 common equity ratio is a non-GAAP measure.
Reconciliation to a GAAP financial measure follows:
Tier 1 capital $ 2,129,998 $ 2,076,525 $ 2,027,226 $ 1,976,588 $ 1,922,783
Less: Non-controlling interest   (21,555 )   (22,152 )   (20,338 )   (21,289 )   (20,274 )
Tier 1 common equity $ 2,108,443   $ 2,054,373   $ 2,006,888   $ 1,955,299   $ 1,902,509  
 
Risk weighted assets $ 16,416,387 $ 16,368,976 $ 16,484,702 $ 16,611,662 $ 16,787,566
 
Tier 1 common equity ratio 12.84 % 12.55 % 12.17 % 11.77 % 11.33 %
 
 
QUARTERLY EARNINGS TRENDS - UNAUDITED
BOK FINANCIAL CORPORATION
(In thousands, except ratio and per share data)
    Quarter Ended
March 31,     December 31,     September 30,   June 30,     March 31,
  2011     2010     2010     2010     2010  
 
Interest revenue $ 202,089 $ 197,148 $ 216,967 $ 217,597 $ 219,370
Interest expense   31,450     33,498     36,252     35,484     36,796  
Net interest revenue 170,639 163,650 180,715 182,113 182,574
Provision for credit losses   6,250     6,999     20,000     36,040     42,100  

Net interest revenue after provision for credit losses
164,389 156,651 160,715 146,073 140,474
 
Other operating revenue
Brokerage and trading revenue 25,376 28,610 27,072 24,754 21,035
Transaction card revenue 28,445 29,500 28,852 28,263 25,687
Trust fees and commissions 18,422 18,145 16,774 17,737 16,320
Deposit service charges and fees 22,480 23,732 24,290 28,797 26,792
Mortgage banking revenue 17,356 25,158 29,236 18,335 14,871
Bank-owned life insurance 2,863 3,182 3,004 2,908 2,972
Other revenue   8,332     7,648     7,708     7,374     7,638  
Total fees and commissions 123,274 135,975 136,936 128,168 115,315
Gain (loss) on other assets, net (68 ) 15 (1,331 ) 1,545 (1,390 )
Gain (loss) on derivatives, net (2,413 ) (7,286 ) 4,626 7,272 (341 )
Gain (loss) on securities, net 1,384 (10,164 ) 11,753 23,100 4,524
Total other-than-temporary impairment losses - (4,768 ) (4,525 ) (10,959 ) (9,708 )

Portion of loss recognized in (reclassified from) other comprehensive income
  (4,599 )   (1,859 )   (9,786 )   8,313     5,483  
Net impairment losses recognized in earnings   (4,599 )   (6,627 )   (14,311 )   (2,646 )   (4,225 )
Total other operating revenue 117,578 111,913 137,673 157,439 113,883
 
Other operating expense
Personnel 99,994 106,770 101,216 97,054 96,824
Business promotion 4,624 4,377 4,426 4,945 3,978
Professional fees and services 7,458 9,527 7,621 6,668 6,401
Net occupancy and equipment 15,604 16,331 16,436 15,691 15,511
Insurance 6,186 6,139 6,052 5,596 6,533
Data processing and communications 22,503 23,902 21,601 21,940 20,309
Printing, postage and supplies 3,082 3,170 3,648 3,525 3,322

Net losses and operating expenses of repossessed assets
6,015 6,966 7,230 13,067 7,220
Amortization of intangible assets 896 1,365 1,324 1,323 1,324
Mortgage banking costs 6,471 11,999 9,093 10,380 9,267
Change in fair value of mortgage servicing rights (3,129 ) (25,111 ) 15,924 19,458 (13,932 )
Visa retrospective responsibility obligation - (1,103 ) 1,103 - -
Other expense   8,745     14,029     9,491     6,265     6,975  
Total other operating expense 178,449 178,361 205,165 205,912 163,732
 
Net income before taxes 103,518 90,203 93,223 97,600 90,625
Federal and state income taxes   38,752     31,097     29,935     32,042     30,283  
 
Net income 64,766 59,106 63,288 65,558 60,342
Net income (loss) attributable to non-controlling interest   (8 )   274     (979 )   2,036     209  
 
Net income attributable to BOK Financial Corporation $ 64,774   $ 58,832   $ 64,267   $ 63,522   $ 60,133  
 
Average shares outstanding:
Basic 67,901,722 67,685,434 67,625,378 67,605,807 67,592,315
Diluted 68,176,527 67,888,950 67,765,344 67,880,587 67,790,049
 
Net income per share:
Basic $ 0.95 $ 0.86 $ 0.94 $ 0.93 $ 0.88
Diluted $ 0.94 $ 0.86 $ 0.94 $ 0.93 $ 0.88
 
             
LOANS BY PRINCIPAL MARKET AREA - UNAUDITED
BOK FINANCIAL CORPORATION
(In thousands)
    Quarter Ended
March 31, December 31, September 30, June 30, March 31,
  2011   2010   2010   2010   2010
 
Oklahoma:
Commercial $ 2,618,045 $ 2,581,082 $ 2,662,347 $ 2,704,460 $ 2,616,086
Commercial real estate 661,254 726,409 748,501 784,549 787,543
Residential mortgage 1,219,237 1,253,466 1,293,334 1,257,497 1,235,788
Consumer   291,412   336,492   349,720   395,274   404,570
Total Oklahoma 4,789,948 4,897,449 5,053,902 5,141,780 5,043,987
 
Texas:
Commercial 1,916,270 1,888,635 1,876,994 1,902,934 1,935,819
Commercial real estate 687,817 686,956 715,859 731,399 769,682
Residential mortgage 283,925 297,027 309,815 308,496 307,643
Consumer   141,199   146,986   151,434   160,377   160,449
Total Texas 3,029,211 3,019,604 3,054,102 3,103,206 3,173,593
 
New Mexico:
Commercial 262,597 279,432 289,368 286,555 326,203
Commercial real estate 326,104 314,781 314,957 294,425 298,197
Residential mortgage 90,466 88,392 87,851 87,549 85,629
Consumer   19,242   19,583   20,153   20,542   16,713
Total New Mexico 698,409 702,188 712,329 689,071 726,742
 
Arkansas:
Commercial 75,889 84,775 91,752 89,376 86,566
Commercial real estate 124,875 116,989 117,137 114,576 129,125
Residential mortgage 14,114 13,155 14,937 15,823 17,071
Consumer   61,746   72,787   84,869   96,189   110,123
Total Arkansas 276,624 287,706 308,695 315,964 342,885
 
Colorado:
Commercial 514,100 470,500 457,421 484,188 495,916
Commercial real estate 172,416 197,180 203,866 225,758 228,998
Residential mortgage 67,975 72,310 75,152 69,325 68,049
Consumer   20,145   21,409   15,402   18,548   17,991
Total Colorado 774,636 761,399 751,841 797,819 810,954
 
Arizona:
Commercial 251,390 231,117 234,739 204,326 209,019
Commercial real estate 213,442 201,018 188,943 163,374 202,192
Residential mortgage 89,384 89,245 85,184 78,890 68,015
Consumer   5,266   3,445   3,061   2,971   3,068
Total Arizona 559,482 524,825 511,927 449,561 482,294
 
Kansas / Missouri:
Commercial 409,966 398,455 359,387 339,689 345,130
Commercial real estate 37,074 34,017 33,859 26,828 28,111
Residential mortgage 12,220 14,653 17,635 16,666 15,516
Consumer   2,265   2,740   2,167   2,133   2,012
Total Kansas / Missouri 461,525 449,865 413,048 385,316 390,769
         
TOTAL BOK FINANCIAL $ 10,589,835 $ 10,643,036 $ 10,805,844 $ 10,882,717 $ 10,971,224
 
           
DEPOSITS BY PRINCIPAL MARKET AREA - UNAUDITED
BOK FINANCIAL CORPORATION
(In thousands)
    Quarter Ended
March 31,   December 31, September 30, June 30, March 31,
  2011   2010   2010   2010   2010
 
Oklahoma:
Demand $ 2,420,210 $ 2,271,375 $ 2,238,303 $ 2,101,994 $ 2,062,084
Interest-bearing:
Transaction 6,068,304 6,061,626 5,609,811 5,562,287 5,237,983
Savings 120,020 106,411 103,524 102,590 101,708
Time   1,465,506   1,373,307   1,497,344   1,442,525   1,360,756
Total interest-bearing   7,653,830   7,541,344   7,210,679   7,107,402   6,700,447
Total Oklahoma   10,074,040   9,812,719   9,448,982   9,209,396   8,762,531
 
Texas:
Demand 1,405,892 1,389,876 1,238,103 1,150,495 1,068,656
Interest-bearing:
Transaction 1,977,850 1,791,810 1,786,979 1,674,519 1,675,759
Savings 40,313 36,429 35,614 36,814 37,175
Time   1,015,754   966,116   1,031,877   1,003,936   1,043,813
Total interest-bearing   3,033,917   2,794,355   2,854,470   2,715,269   2,756,747
Total Texas   4,439,809   4,184,231   4,092,573   3,865,764   3,825,403
 
New Mexico:
Demand 282,708 270,916 262,567 223,869 222,685
Interest-bearing:
Transaction 498,355 530,244 535,012 491,708 480,189
Savings 24,455 28,342 27,906 30,231 20,036
Time   453,580   450,177   469,493   476,155   495,243
Total interest-bearing   976,390   1,008,763   1,032,411   998,094   995,468
Total New Mexico   1,259,098   1,279,679   1,294,978   1,221,963   1,218,153
 
Arkansas:
Demand 15,144 15,310 17,604 14,919 17,599
Interest-bearing:
Transaction 130,613 129,580 137,797 108,104 61,398
Savings 1,514 1,266 1,522 1,288 1,266
Time   94,889   100,998   116,536   119,472   105,794
Total interest-bearing   227,016   231,844   255,855   228,864   168,458
Total Arkansas   242,160   247,154   273,459   243,783   186,057
 
Colorado:
Demand 197,579 157,742 156,685 143,783 136,048
Interest-bearing:
Transaction 528,948 522,207 501,405 441,085 456,508
Savings 21,655 20,310 19,681 18,869 18,118
Time   546,586   502,889   495,899   497,538   509,410
Total interest-bearing   1,097,189   1,045,406   1,016,985   957,492   984,036
Total Colorado   1,294,768   1,203,148   1,173,670   1,101,275   1,120,084
 
Arizona:
Demand 106,880 74,887 97,384 71,711 61,183
Interest-bearing:
Transaction 102,089 95,890 94,108 94,033 81,851
Savings 984 809 812 1,062 1,105
Time   50,060   52,227   59,678   63,643   64,592
Total interest-bearing   153,133   148,926   154,598   158,738   147,548
Total Arizona   260,013   223,813   251,982   230,449   208,731
 
Kansas / Missouri:
Demand 28,774 40,658 35,869 28,518 31,726
Interest-bearing:
Transaction 222,705 124,005 180,273 116,423 100,037
Savings 323 200 132 110 146
Time   51,236   63,454   70,673   69,819   74,648
Total interest-bearing   274,264   187,659   251,078   186,352   174,831
Total Kansas / Missouri   303,038   228,317   286,947   214,870   206,557
 
TOTAL BOK FINANCIAL $ 17,872,926 $ 17,179,061 $ 16,822,591 $ 16,087,500 $ 15,527,516
 
               
NET INTEREST MARGIN TREND - UNAUDITED
BOK FINANCIAL CORPORATION
  Quarter Ended
March 31, December 31, September 30, June 30, March 31,
2011 2010 2010 2010 2010
TAX-EQUIVALENT ASSETS YIELDS
Trading securities 3.84 % 4.06 % 3.26 % 4.51 % 4.53 %
Funds sold and resell agreements 0.08 % 0.13 % 0.08 % 0.14 % 0.10 %
Securities:
Taxable (A) 3.20 % 2.67 % 3.28 % 3.56 % 3.73 %
Tax-exempt (A) 5.07 % 4.95 % 4.87 % 4.89 % 5.28 %
Total securities (A) 3.25 % 2.73 % 3.32 % 3.60 % 3.78 %
Residential mortgage loans held for sale 4.33 % 3.85 % 4.24 % 4.76 % 5.16 %
Loans 4.75 % 4.76 % 4.87 % 4.83 % 4.81 %
Less allowance for loan losses -   -   -   -   -  
Loans, net of allowance 4.89 % 4.90 % 5.01 % 4.97 % 4.95 %
Total tax-equivalent yield on earning assets (A) 4.09 % 3.84 % 4.19 % 4.33 % 4.41 %
COST OF INTEREST-BEARING LIABILITIES
Interest-bearing deposits:
Interest-bearing transaction 0.32 % 0.37 % 0.45 % 0.49 % 0.52 %
Savings 0.37 % 0.35 % 0.39 % 0.40 % 0.42 %
Time 1.82 % 1.78 % 1.80 % 1.74 % 1.86 %
Total interest-bearing deposits 0.72 % 0.76 % 0.85 % 0.87 % 0.94 %
Funds purchased 0.16 % 0.25 % 0.19 % 0.20 % 0.14 %
Repurchase agreements 0.40 % 0.49 % 0.52 % 0.56 % 0.57 %
Other borrowings 1.31 % 0.37 % 0.36 % 0.35 % 0.29 %
Subordinated debt 5.67 % 5.64 % 5.64 % 5.57 % 5.66 %
Total cost of interest-bearing liabilities 0.80 % 0.81 % 0.86 % 0.85 % 0.87 %
Tax-equivalent net interest revenue spread 3.29 % 3.03 % 3.33 % 3.48 % 3.54 %
Effect of noninterest-bearing funding sources and other 0.17 % 0.16 % 0.17 % 0.15 % 0.14 %
Tax-equivalent net interest margin 3.46 % 3.19 % 3.50 % 3.63 % 3.68 %
 
(A) Yield calculations exclude security trades that have been recorded on trade date with no corresponding interest income.
 
CREDIT QUALITY INDICATORS
BOK FINANCIAL CORPORATION

(In thousands, except ratios)
 

 
    Quarter Ended
March 31,     December 31,     September 30,   June 30,     March 31,
  2011     2010     2010     2010     2010  
 
Nonperforming assets:
Nonaccruing loans (B):
Commercial $ 57,449 $ 38,455 $ 49,361 $ 82,775 $ 84,491
Commercial real estate 125,504 150,366 177,709 193,698 219,639
Residential mortgage 37,824 37,426 38,898 40,033 36,281
Consumer   5,185     4,567     2,784     3,188     3,164  
Total nonaccruing loans 225,962 230,814 268,752 319,694 343,575
Renegotiated loans (A) 21,705 22,261 25,252 21,327 17,763
Real estate and other repossessed assets   131,420     141,394     126,859     119,908     121,933  
Total nonperforming assets $ 379,087   $ 394,469   $ 420,863   $ 460,929   $ 483,271  
 
Nonaccruing loans by principal market (B):
Oklahoma $ 49,585 $ 60,805 $ 72,264 $ 93,898 $ 102,231
Texas 34,404 33,157 36,979 49,695 58,067
New Mexico 17,510 19,283 23,792 26,956 23,021
Arkansas 29,769 7,914 9,990 10,933 14,652
Colorado 40,629 49,416 55,631 66,040 66,883
Arizona 54,065 60,239 70,038 72,111 78,656
Kansas / Missouri   -     -     58     61     65  
Total nonaccruing loans $ 225,962   $ 230,814   $ 268,752   $ 319,694   $ 343,575  

 

 

 

 

 
Nonaccruing loans by loan portfolio sector (B):
Commercial:
Energy $ 415 $ 465 $ 8,189 $ 26,259 $ 17,182
Manufacturing 4,545 2,116 2,454 3,237 4,834
Wholesale / retail 30,411 8,486 5,584 5,561 6,629
Integrated food services 6 13 58 58 65
Services 15,720 19,262 23,925 31,062 35,535
Healthcare 2,574 3,534 2,608 8,568 10,538
Other commercial and industrial   3,778     4,579     6,543     8,030     9,708  
Total commercial 57,449 38,455 49,361 82,775 84,491
Commercial real estate:
Construction and land development 90,707 99,579 116,252 132,686 140,508
Retail 5,276 4,978 8,041 4,967 14,843
Office 14,628 19,654 24,942 24,764 26,660
Multifamily 1,900 6,725 6,924 7,253 15,725
Industrial - 4,087 4,151 4,223 -
Other commercial real estate   12,993     15,343     17,399     19,805     21,903  
Total commercial real estate 125,504 150,366 177,709 193,698 219,639
Residential mortgage:
Permanent mortgage 33,466 32,111 36,654 37,978 34,134
Home equity   4,358     5,315     2,244     2,055     2,147  
Total residential mortgage 37,824 37,426 38,898 40,033 36,281
Consumer   5,185     4,567     2,784     3,188     3,164  
Total nonaccruing loans $ 225,962   $ 230,814   $ 268,752   $ 319,694   $ 343,575  
- - - - -
Performing loans 90 days past due $ 9,291 $ 9,961 $ 6,433 $ 12,474 $ 12,915
 
Gross charge-offs $ 15,232 $ 20,152 $ 25,340 $ 38,168 $ 40,328
Recoveries   4,914     5,939     5,205     2,614     5,850  
Net charge-offs $ 10,318   $ 14,213   $ 20,135   $ 35,554   $ 34,478  
 
Provision for credit losses $ 6,250 $ 6,999 $ 20,000 $ 36,040 $ 42,100
 
Allowance for loan losses to period end loans 2.73 % 2.75 % 2.77 % 2.75 % 2.73 %
Combined allowance for credit losses to period end loans 2.86 % 2.89 % 2.91 % 2.89 % 2.86 %
Nonperforming assets to period end loans
and repossessed assets 3.54 % 3.66 % 3.85 % 4.19 % 4.36 %
Net charge-offs (annualized) to average loans 0.39 % 0.53 % 0.74 % 1.30 % 1.23 %
Allowance for loan losses to nonaccruing loans 128.14 % 126.93 % 111.31 % 93.68 % 87.23 %
Combined allowance for credit losses to nonaccruing loans 134.17 % 133.11 % 117.01 % 98.40 % 91.42 %
 
(A) includes residential mortgage loans guaranteed by $ 18,304 $ 18,551 $ 21,706 $ 17,598 $ 14,083
agencies of the U.S. government. These loans
have been modified to extend payment terms and/or
reduce interest rates to current market.
(B) includes loans subject to First United Bank sellers escrow $ - $ - $ - $ - $ 4,281
 

Copyright Business Wire 2010

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