BOK Financial Quarterly Earnings Grow To $69 Million Or $1.00 Per Share

BOK Financial Corporation (NASDAQ: BOKF) reported record quarterly net income of $69.0 million or $1.00 per diluted share for the second quarter of 2011, up from $64.8 million or $0.94 per diluted share for the first quarter of 2011 and $63.5 million or $0.93 per diluted share for the second quarter of 2010. Net income for the six months ended June 30, 2011, totaled $133.8 million or $1.95 per diluted share compared to $123.7 million or $1.81 per diluted share for the six months ended June 30, 2010.

“BOK Financial is pleased to announce another strong quarter of record earnings,” said President and CEO Stan Lybarger. “We continue to benefit from diversified sources of non-interest income. Transaction card, mortgage banking and deposit revenues all grew during the second quarter due to increased transaction volume. Outstanding commercial loan balances are up in most of our markets and credit quality metrics continue to improve.”

Highlights of second quarter of 2011 included:
  • Net interest revenue totaled $174.0 million compared to $170.6 million for the first quarter of 2011. Average earning assets grew $354 million. Net interest margin was 3.40% for the second quarter of 2011 compared to 3.47% for the first quarter of 2011.
  • Fees and commissions revenue totaled $127.8 million compared to $123.3 million for the first quarter of 2011. Revenue growth was distributed among most fee-generating activities.
  • Operating expenses, excluding changes in the fair value of mortgage servicing rights, totaled $189.7 million, up $8.1 million over the prior quarter. Personnel expenses increased $5.6 million due primarily to increased incentive compensation expense. Non-personnel expenses increased $2.5 million due primarily to increased mortgage banking expenses.
  • Provision for credit losses totaled $2.7 million for the second quarter of 2011 compared to $6.3 million for the first quarter of 2011. Net loans charged off decreased to $8.5 million from $10.3 million for the previous quarter.
  • The combined allowance for credit losses totaled $297 million or 2.77% of outstanding loans at June 30, 2011, and $303 million or 2.86% of outstanding loans at March 31, 2011. Nonperforming assets totaled $351 million or 3.23% of outstanding loans and repossessed assets at June 30, 2011, and $379 million or 3.54% of outstanding loans and repossessed assets at March 31, 2011.
  • Outstanding loan balances were $10.7 billion at June 30, 2011, compared to $10.6 billion at March 31, 2011. Commercial loan balances continued to grow in the second quarter of 2011, increasing $130 million over March 31, 2011. Commercial real estate loans decreased $39 million. Residential mortgage loans increased $91 million and consumer loans decreased $34 million.
  • Period end deposits totaled $17.6 billion at June 30, 2011, compared to $17.9 billion at March 31, 2011. Interest-bearing transaction accounts decreased $516 million and time deposits decreased $43 million. Demand deposit accounts increased $269 million.
  • Tangible common equity ratio increased to 9.71% at June 30, 2011 from 9.54% at March 31, 2011. 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 exceeded the regulatory definition of well capitalized. The Company’s Tier 1 capital ratios, as defined by banking regulations, were 13.30% at June 30, 2011, and 12.97% at March 31, 2011.
  • The Company paid a cash dividend of $19 million or $0.275 per common share during the second quarter of 2011. On July 26, 2011, the board of directors approved a quarterly cash dividend of $0.275 per common share payable on or about August 26, 2011, to shareholders of record as of August 12, 2011.

Net Interest Revenue

Net interest revenue increased $3.4 million over the first quarter of 2011. Average earning assets increased $354 million. Net interest margin decreased 7 basis points from the prior quarter to 3.40%.

The average balance of the available for sale securities portfolio increased $167 million and the average balance of the mortgage trading securities held as an economic hedge of mortgage servicing rights increased $121 million. Average outstanding loans increased $27 million. Growth in average commercial loan and residential mortgage loan balances was partially offset by lower commercial real estate loans and consumer loans.

Average interest-bearing deposits decreased $426 million from the previous quarter. Interest-bearing transaction account balances decreased $448 million, partially offset by a $15 million increase in average time deposit account balances. Average demand deposits increased $288 million. Average balances of borrowed funds increased $332 million over the previous quarter.

The yield on average earning assets decreased 9 basis points compared to the preceding quarter. The available for sale securities portfolio yield decreased 13 basis points to 3.04% and the loan portfolio yield decreased 7 basis points to 4.82%. The cost of interest-bearing liabilities increased 1 basis point to 0.81% compared to the previous quarter.

Fees and Commissions Revenue

Fees and commissions revenue increased $4.6 million to $127.8 million for the second quarter of 2011. Transaction card revenue increased $2.6 million, mortgage banking revenue increased $2.0 million and deposit service charges increased $1.4 million. Brokerage and trading revenue decreased $1.7 million.

Transaction card revenue growth resulted primarily from increased cross sales of merchant services in markets outside of Oklahoma. Merchant services revenue grew by $1.3 million. Fees related to the processing of automated teller machine transactions and interchange revenue earned on transactions from check cards issued by the Company also increased over the prior quarter. Mortgage banking revenue grew on higher mortgage loan origination volume. Mortgage loan production revenue increased $1.9 million over the previous quarter. Residential mortgage loans funded for sale increased to $529 million in the second quarter of 2011 from $452 million in the first quarter of 2011. Growth in deposit service charges was largely due to a $1.6 million increase in overdraft charges. The decrease in brokerage and trading revenue was primarily due to reduced transaction volume compared to the previous quarter.

Operating Expenses

Total operating expenses were $203.2 million for the second quarter of 2011 and $178.4 million for the first quarter of 2011. Excluding changes in the fair value of mortgage servicing rights, operating expenses totaled $189.7 million, up $8.1 million over the first quarter of 2011.

Personnel costs increased $5.6 million over the prior quarter, primarily due to increased incentive compensation. Cash-based incentive compensation increased $4.0 million over the first quarter of 2011. Employee benefit costs increased $1.4 million over the prior quarter primarily due to increased medical insurance costs. The Company self-insures a portion of its employee health care coverage and these costs may be volatile.

Non-personnel expenses increased $2.5 million over the first quarter of 2011. Mortgage banking expenses increased $2.5 million primarily due to an increase in the provision for losses on loans sold with recourse and provision for foreclosure costs on loans serviced for others. Data processing and communication expense increased $2.0 million primarily due to increased transaction card activity. FDIC insurance expense decreased $1.5 million based on the estimated impact of a change from an assessment based on deposit balances to an assessment based on consolidated assets minus average tangible equity.

Credit Quality

Nonperforming assets decreased $28 million during the second quarter to $351 million or 3.23% of outstanding and repossessed assets at June 30, 2011. Nonaccruing loans decreased $26 million and repossessed assets decreased $2.4 million.

Nonaccruing loans totaled $200 million or 1.86% of outstanding loans at June 30, 2011, and $226 million or 2.13% of outstanding loans at March 31, 2011. During the second quarter of 2011, $27 million of new nonaccruing loans were identified offset by $28 million in payments received, $13 million in charge-offs and $13 million in foreclosures and repossessions .

Nonaccruing commercial loans totaled $53 million or 0.86% of total commercial loans at June 30, 2011, down $4.1 million since March 31, 2011. Nonaccruing loans in the wholesale/retail sector totaled $25 million or 2.35% of total wholesale/retail sector loans and nonaccruing services sector loans totaled $16 million or 0.95% of total services sector loans.

Nonaccruing commercial real estate loans totaled $110 million or 5.05% of outstanding commercial real estate loans at June 30, 2011, down $15 million from March 31, 2011. Nonaccruing commercial real estate loans continued to be largely concentrated in land development and residential construction loans with $76 million or 21% of all land development and construction loans nonaccruing at June 30, 2011. Approximately $33 million or 16% of total commercial real estate loans in Arizona and $31 million or 19% of total commercial real estate loans in Colorado are nonaccruing. Newly identified nonaccruing commercial real estate loans totaled $11 million, offset by $19 million of cash payments received, $3.4 million of charge-offs and $3.9 million of foreclosures.

Nonaccruing residential mortgage loans decreased $6.1 million from March 31, 2011, to $32 million or 1.70% of outstanding residential mortgage loans at June 30, 2011. The decrease is largely due to $6.7 million of foreclosures during the quarter. Principally all non-guaranteed residential mortgage loans past due 90 days or more are nonaccruing. In addition, residential mortgage loans past due 30 to 89 days, excluding loans guaranteed by U.S. government agencies, totaled $21 million at June 30, 2011, and $14 million at March 31, 2011.

The combined allowance for credit losses totaled $297 million or 2.77% of outstanding loans and 148.55% of nonaccruing loans at June 30, 2011. The allowance for loan losses was $287 million and the allowance for off-balance sheet credit losses was $10 million. Approximately $146 million of impaired loans, which consist primarily of nonaccruing commercial and commercial real estate loans, are recorded at the amount management expects to recover and accordingly have no allowance for loan loss attributed to them. The remaining $30 million of impaired loans have $6.7 million of the allowance for loan losses attributed to them.

Real estate and other repossessed assets totaled $129 million at June 30, 2011, primarily consisting of $55 million of 1-4 family residential properties and residential land development properties, $47 million of developed commercial real estate properties and $23 million of undeveloped land. The distribution of real estate owned and other repossessed assets among various markets included $41 million attributed to Arizona, $32 million attributed to Texas, $18 million attributed to Colorado and $13 million attributed to Oklahoma. Real estate and other repossessed assets decreased by $2.4 million during the second quarter due to additions of $13 million offset by $12 million in sales and $3.4 million in write-downs and losses.

The Company also has off-balance sheet obligations related to certain community development residential mortgage loans sold to U.S. government agencies with full 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 recourse obligation relates to the loan performance for the life of the loan. The Company is obligated to repurchase these loans at the time of foreclosure for the unpaid principal balance plus unpaid interest. The outstanding principal balance of these loans totaled $274 million at June 30, 2011, down from $284 million at March 31, 2011. The loans are primarily to borrowers in our market areas, including $193 million in Oklahoma, $28 million in Arkansas, $16 million in New Mexico, $15 million in Kansas/Missouri and $12 million in Texas. At June 30, 2011, approximately 6% of these loans are nonperforming and 5% were past due 30 to 89 days. A separate accrual for credit risk of $18 million is available for losses on these loans.

Securities and Derivatives

The fair value of the available for sale securities portfolio totaled $9.6 billion at June 30, 2011, down $99 million from March 31, 2011. The available for sale portfolio consisted primarily of residential mortgage-backed securities, including $8.9 billion fully backed by U.S. government agencies and $513 million privately issued by publicly owned financial institutions. Privately issued mortgage-backed securities included $346 million backed by Jumbo-A residential mortgage loans and $167 million backed by Alt-A residential mortgage loans.

Net unrealized gains on available for sale securities totaled $263 million at June 30, 2011, and $201 million at March 31, 2011. Net unrealized gains on residential mortgage-backed securities issued by U.S. government agencies increased $78 million to $305 million at June 30, 2011. Net unrealized losses on privately-issued residential mortgage-backed securities increased $12 million to $68 million at June 30, 2011.

The amortized cost of privately issued residential mortgage-backed securities totaled $581 million at June 30, 2011, down $49 million since March 31, 2011, due primarily to cash received. Approximately $469 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 second 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 $4.3 million for credit-related impairment charges during the second quarter. Aggregate unrealized losses on privately-issued residential mortgage-backed securities rated below investment grade totaled $62 million at June 30, 2011. Aggregate unrealized losses on these same below investment grade securities were $52 million at March 31, 2011.

The Company recognized $5.5 million of net gains on sales of $654 million of available for sale securities in the second quarter of 2011 and $4.9 million of net gains on sales of $793 million of available for sale securities in the first quarter of 2011. Securities were sold either to mitigate extension exposure from rising interest rates or because they had reached their expected maximum potential total return.

Loans, Deposits and Capital

Loans

Outstanding loans at June 30, 2011, were $10.7 billion, up $153 million over March 31, 2011. Growth in commercial and residential mortgage loans were partially offset by a decrease in commercial real estate and consumer loans.

Outstanding commercial loan balances continued to grow in most geographic regions, increasing $130 million over March 31, 2011. Commercial loan growth was notably strong in the Texas and Arizona markets. Commercial loans increased $88 million in Texas and $40 million in Arizona. Outstanding commercial loans attributed to Oklahoma decreased $24 million. Energy loans attributed to the Oklahoma market decreased $77 million during the second quarter of 2011. Unfunded energy loan commitments increased $159 million during the second quarter to $2.0 billion. All other unfunded commercial loan commitments grew by $238 million to $2.8 billion at June 30, 2011.

Commercial real estate loans continued to decrease, down $39 million during the second quarter of 2011. Outstanding balances were down in most geographic regions. Construction and land development loans decreased by $27 million, primarily in the Colorado, Texas and Arizona markets. Unfunded commercial real estate loan commitments increased $26 million during the second quarter to $308 million.

Residential mortgage loans increased $91 million over March 31, 2011, primarily due to a $71 million increase in loans guaranteed by U.S. government agencies. This increase consists of loans previously sold into Government National Mortgage Association mortgage pools. The Company must recognize it has regained control over these loans when certain delinquency criteria are met.

Consumer loans decreased $34 million from March 31, 2011, primarily due to 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. Approximately $162 million of indirect automobile loans remain outstanding at June 30, 2011.

Deposits

Total deposits decreased $287 million from March 31, 2011, to $17.6 billion at June 30, 2011. Interest-bearing transaction account balances decreased $516 million and time deposits decreased $43 million. Demand deposit balances increased $269 million. Among the lines of business, commercial deposits decreased $266 million. Consumer and wealth management deposits were largely unchanged from March 31, 2011. The decrease in commercial deposit balances was largely driven by commercial and industrial customers.

Capital

The Company and its subsidiary bank exceeded the regulatory definition of well capitalized at June 30, 2011. The Company’s Tier 1 and total capital ratios were 13.30% and 16.80%, respectively, at June 30, 2011. Tier 1 and total capital ratios were 12.97% and 16.48%, respectively, at March 31, 2011. In addition the Company’s tangible common equity ratio, a non-GAAP measure, was 9.71% at June 30, 2011, and 9.54% at March 31, 2011. Unrealized securities gains added 57 basis points to the tangible common equity ratio at June 30, 2011.

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 June 30, 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
June 30, March 31, June 30,
2011 2011 2010
(Unaudited) (Unaudited) (Unaudited)
ASSETS
Cash and due from banks $ 1,098,721 $ 805,928 $ 834,972
Funds sold and resell agreements 12,040 2,462 17,554
Trading securities 99,846 80,719 62,159
Investment securities 349,583 343,401 353,277
Available for sale securities 9,567,008 9,665,901 9,105,828
Mortgage trading securities 553,231 326,624 534,641
Residential mortgage loans held for sale 169,609 127,119 227,574
Loans:
Commercial 6,178,596 6,048,257 6,011,528
Commercial real estate 2,183,715 2,222,982 2,340,909
Residential mortgage 1,867,997 1,777,321 1,834,246
Consumer     507,236       541,275       696,034  
Total loans 10,737,544 10,589,835 10,882,717
Less allowance for loan losses     (286,611 )     (289,549 )     (299,489 )
Loans, net of allowance 10,450,933 10,300,286 10,583,228
Premises and equipment, net 265,057 265,532 277,225
Receivables 129,944 113,060 126,149
Goodwill 335,601 335,601 335,601
Intangible assets, net 12,010 12,906 15,991
Mortgage servicing rights, net 109,192 120,345 98,942
Real estate and other repossessed assets 129,026 131,420 119,908
Bankers' acceptances 1,661 1,884 2,885
Derivative contracts 229,887 245,124 334,576
Cash surrender value of bank-owned life insurance 261,203 258,322 251,857
Receivable on unsettled securities sales 170,600 242,828 -
Other assets     293,030       321,561       454,361  
TOTAL ASSETS   $ 24,238,182     $ 23,701,023     $ 23,736,728  
 
 
LIABILITIES AND EQUITY
Deposits:
Demand $ 4,725,977 $ 4,457,187 $ 3,735,289
Interest-bearing transaction 9,013,323 9,528,864 8,488,159
Savings 211,877 209,264 190,964
Time     3,634,700       3,677,611       3,673,088  
Total deposits 17,585,877 17,872,926 16,087,500
Funds purchased 1,706,893 466,749 1,157,465
Repurchase agreements 1,106,163 1,006,051 1,105,010
Other borrowings 149,703 36,864 1,708,295
Subordinated debentures 398,788 398,744 398,617
Accrued interest, taxes, and expense 104,493 135,486 91,471
Bankers' acceptances 1,661 1,884 2,885
Due on unsettled securities purchases 166,607 843,904 266,470
Derivative contracts 173,917 156,038 299,851
Other liabilities     151,906       184,689       169,137  
TOTAL LIABILITIES 21,546,008 21,103,335 21,286,701
Shareholders' equity:
Capital, surplus and retained earnings 2,521,462 2,467,820 2,314,967
Accumulated other comprehensive income     146,255       108,313       113,771  
TOTAL SHAREHOLDERS' EQUITY 2,667,717 2,576,133 2,428,738
Non-controlling interest     24,457       21,555       21,289  
TOTAL EQUITY     2,692,174       2,597,688       2,450,027  
TOTAL LIABILITIES AND EQUITY   $ 24,238,182     $ 23,701,023     $ 23,736,728  
 
         
AVERAGE BALANCE SHEETS - UNAUDITED
BOK FINANCIAL CORPORATION
(In thousands)
 
 
Quarter Ended
June 30, March 31, December 31, September 30, June 30,
2011 2011 2010 2010 2010
 
ASSETS
Funds sold and resell agreements $ 8,814 $ 20,680 $ 21,128 $ 18,882 $ 22,776
Trading securities 80,113 60,768 74,084 69,315 58,722
Investment securities 357,698 339,246 341,941 336,455 335,117
Available for sale securities 9,543,482 9,376,674 9,581,708 9,152,111 8,774,148
Mortgage trading securities 518,073 397,093 474,731 602,049 435,693
Residential mortgage loans held for sale 134,876 125,494 282,734 242,559 183,489
Loans:
Commercial 6,145,918 6,084,765 5,946,960 6,003,159 6,060,642
Commercial real estate 2,172,166 2,236,400 2,282,779 2,335,226 2,359,958
Residential mortgage 1,858,117 1,788,049 1,832,624 1,893,162 1,848,692
Consumer     504,553       544,542       604,830       629,968       702,174  
Total loans 10,680,755 10,653,756 10,667,193 10,861,515 10,971,466
Less allowance for loan losses     (291,308 )     (295,014 )     (307,223 )     (308,139 )     (312,595 )
Total loans, net     10,389,447       10,358,742       10,359,970       10,553,376       10,658,871  
Total earning assets 21,032,503 20,678,697 21,136,296 20,974,747 20,468,816
Cash and due from banks 764,806 1,095,910 1,092,979 989,782 903,555
Cash surrender value of bank-owned life insurance 259,337 256,456 255,530 252,912 249,914
Derivative contracts 253,163 211,895 249,861 267,952 288,853
Other assets     1,669,426       1,496,816       1,548,285       1,706,897       1,533,669  
TOTAL ASSETS   $ 23,979,235     $ 23,739,774     $ 24,282,951     $ 24,192,290     $ 23,444,807  
 
LIABILITIES AND EQUITY
Deposits:
Demand $ 4,554,000 $ 4,265,657 $ 4,171,595 $ 3,831,486 $ 3,660,910
Interest-bearing transaction 9,184,141 9,632,595 9,325,573 8,699,495 8,287,296
Savings 210,707 203,638 191,235 189,512 184,376
Time     3,632,130       3,616,991       3,602,150       3,774,136       3,701,167  
Total deposits 17,580,978 17,718,881 17,290,553 16,494,629 15,833,749
Funds purchased 1,168,670 820,969 775,620 1,096,873 1,359,937
Repurchase agreements 1,004,217 1,062,359 1,201,760 1,130,215 1,131,147
Other borrowings 187,441 144,987 829,756 1,465,516 1,619,745
Subordinated debentures 398,767 398,723 398,680 398,638 398,598
Derivative contracts 175,199 144,492 197,330 228,297 243,089
Other liabilities     813,074       884,566       1,053,695       895,703       479,813  
TOTAL LIABILITIES 21,328,346 21,174,977 21,747,394 21,709,871 21,066,078
Total equity     2,650,889       2,564,797       2,535,557       2,482,419       2,378,729  
TOTAL LIABILITIES AND EQUITY   $ 23,979,235     $ 23,739,774     $ 24,282,951     $ 24,192,290     $ 23,444,807  
 
       
STATEMENTS OF EARNINGS - UNAUDITED
BOK FINANCIAL CORPORATION
(In thousands, except per share data)
 
 
Quarter Ended Six Months Ended
June 30, June 30,
2011 2010 2011 2010
 
Interest revenue $ 205,717 $ 217,597 $ 407,806 $ 436,967
Interest expense     31,716       35,484       63,166       72,280  
Net interest revenue 174,001 182,113 344,640 364,687
Provision for credit losses     2,700       36,040       8,950       78,140  

Net interest revenue after provision for credit losses
171,301 146,073 335,690 286,547
 
Other operating revenue
Brokerage and trading revenue 23,725 24,754 49,101 45,789
Transaction card revenue 31,024 28,263 59,469 53,950
Trust fees and commissions 19,150 17,737 37,572 34,057
Deposit service charges and fees 23,857 28,797 46,337 55,589
Mortgage banking revenue 19,356 18,335 36,712 33,206
Bank-owned life insurance 2,872 2,908 5,735 5,880
Other revenue     7,842       7,374       16,174       15,012  
Total fees and commissions 127,826 128,168 251,100 243,483
Gain on other assets, net 3,344 1,545 3,276 155
Gain (loss) on derivatives, net 1,225 7,272 (1,188 ) 6,931
Gain on mortgage trading securities, net 9,921 14,631 6,403 15,079
Gain on available for sale securities, net 5,468 8,469 10,370 12,545
Total other-than-temporary impairment losses (74 ) (10,959 ) (74 ) (20,667 )

Portion of loss recognized in (reclassified from) other comprehensive income
(4,750 ) 8,313 (9,349 ) 13,796
Net impairment losses recognized in earnings     (4,824 )     (2,646 )     (9,423 )     (6,871 )
Total other operating revenue 142,960 157,439 260,538 271,322
 
Other operating expense
Personnel 105,603 97,054 205,597 193,878
Business promotion 4,777 4,945 9,401 8,923
Professional fees and services 6,258 6,668 13,716 13,069
Net occupancy and equipment 15,554 15,691 31,158 31,202
Insurance 4,771 5,596 10,957 12,129
Data processing and communications 24,428 21,940 46,931 42,249
Printing, postage and supplies 3,586 3,525 6,668 6,847

Net losses and operating expenses of repossessed assets
5,859 13,067 11,874 20,287
Amortization of intangible assets 896 1,323 1,792 2,647
Mortgage banking costs 8,968 10,380 15,439 19,647
Change in fair value of mortgage servicing rights 13,493 19,458 10,364 5,526
Other expense     9,016       6,265       17,761       13,240  
Total other operating expense 203,209 205,912 381,658 369,644
 
Net income before taxes 111,052 97,600 214,570 188,225
Federal and state income taxes     39,357       32,042       78,109       62,325  
 
Net income 71,695 65,558 136,461 125,900
Net income (loss) attributable to non-controlling interest     2,688       2,036       2,680       2,245  
 
Net income attributable to BOK Financial Corporation   $ 69,007     $ 63,522     $ 133,781     $ 123,655  
 
Average shares outstanding:
Basic 67,898,483 67,605,807 67,900,279 67,599,349
Diluted 68,169,485 67,880,587 68,173,182 67,835,606
 
Net income per share:
Basic $ 1.01 $ 0.93 $ 1.96 $ 1.82
Diluted $ 1.00 $ 0.93 $ 1.95 $ 1.81
 
         
FINANCIAL HIGHLIGHTS - UNAUDITED
BOK FINANCIAL CORPORATION
(In thousands, except ratio and share data)
 
 
Quarter Ended
June 30, March 31, December 31, September 30, June 30,
2011 2011 2010 2010 2010
 
Capital:
Period-end shareholders' equity $ 2,667,717 $ 2,576,133 $ 2,521,726 $ 2,503,650 $ 2,428,738
Risk weighted assets $ 16,452,305 $ 16,416,387 $ 16,368,976 $ 16,484,702 $ 16,611,662
Risk-based capital ratios:
Tier 1 13.30 % 12.97 % 12.69 % 12.30 % 11.90 %
Total capital 16.80 % 16.48 % 16.20 % 15.79 % 15.38 %
Leverage ratio 9.29 % 9.13 % 8.74 % 8.61 % 8.57 %
Tangible common equity ratio (A) 9.71 % 9.54 % 9.21 % 8.96 % 8.88 %
Tier 1 common equity ratio (B) 13.15 % 12.84 % 12.55 % 12.17 % 11.77 %
 
Common stock:
Book value per share $ 38.97 $ 37.64 $ 36.97 $ 36.77 $ 35.67
 
Market value per share:
High $ 54.72 $ 56.32 $ 54.86 $ 50.58 $ 55.60
Low $ 50.13 $ 50.37 $ 44.83 $ 42.89 $ 47.45
 
Cash dividends paid $ 18,823 $ 17,102 $ 17,025 $ 16,856 $ 16,834
Dividend payout ratio 27.28 % 26.40 % 28.94 % 26.23 % 26.50 %
Shares outstanding, net 68,462,869 68,438,422 68,207,689 68,091,126 68,080,797
 
Performance ratios (quarter annualized):
Return on average assets 1.15 % 1.11 % 0.96 % 1.05 % 1.09 %
Return on average equity 10.44 % 10.24 % 9.21 % 10.27 % 10.71 %
Net interest margin 3.40 % 3.47 % 3.21 % 3.52 % 3.65 %
Efficiency ratio 62.23 % 61.15 % 65.60 % 59.07 % 59.56 %
 
Other data:
Trust assets $ 33,075,456 $ 32,013,487 $ 32,751,501 $ 31,460,021 $ 29,825,608
Mortgage servicing portfolio $ 11,283,442 $ 11,202,626 $ 11,263,130 $ 11,190,802 $ 11,057,385
Mortgage loans funded for sale $ 528,749 $ 451,821 $ 821,921 $ 756,022 $ 540,835
Mortgage loan refinances to total fundings 36 % 50 % 72 % 64 % 34 %
Tax equivalent adjustment $ 2,261 $ 2,321 $ 2,263 $ 2,152 $ 2,327
Net unrealized gain on available for sale securities $ 263,199 $ 201,340 $ 200,203 $ 255,421 $ 215,439
 
Gain (loss) on mortgage servicing rights, net of economic hedge:
Gain (loss) on mortgage hedge derivative contracts $ 1,224 $ (2,419 ) $ (7,392 ) $ 4,676 $ 7,800
Gain (loss) on mortgage trading securities     9,921       (3,518 )     (11,117 )     3,369       14,631  
Gain (loss) on economic hedge of mortgage servicing rights 11,145 (5,937 ) (18,509 ) 8,045 22,431
Gain (loss) on changes in fair value of mortgage servicing rights     (13,493 )     3,129       25,111       (15,924 )     (19,458 )

Gain (loss) on changes in fair value of mortgage servicing rights, net of economic hedges
  $ (2,348 )   $ (2,808 )   $ 6,602     $ (7,879 )   $ 2,973  
 
Net interest revenue on mortgage trading securities   $ 5,121     $ 3,058     $ 4,232     $ 5,710     $ 4,880  
 
Reconciliation of non-GAAP measures:
(A) Tangible common equity ratio:
Total shareholders' equity $ 2,667,717 $ 2,576,133 $ 2,521,726 $ 2,503,650 $ 2,428,738
Less: Goodwill and intangible assets, net     (347,611 )     (348,507 )     (349,404 )     (350,769 )     (351,592 )
Tangible common equity   $ 2,320,106     $ 2,227,626     $ 2,172,322     $ 2,152,881     $ 2,077,146  
 
Total assets $ 24,238,182 $ 23,701,023 $ 23,941,603 $ 24,385,952 $ 23,736,728
Less: Goodwill and intangible assets, net     (347,611 )     (348,507 )     (349,404 )     (350,769 )     (351,592 )
    $ 23,890,571     $ 23,352,516     $ 23,592,199     $ 24,035,183     $ 23,385,136  
 
Tangible common equity ratio 9.71 % 9.54 % 9.21 % 8.96 % 8.88 %
 
(B) Tier 1 common equity ratio:
Tier 1 capital $ 2,188,199 $ 2,129,998 $ 2,076,525 $ 2,027,226 $ 1,976,588
Less: Non-controlling interest     (24,457 )     (21,555 )     (22,152 )     (20,338 )     (21,289 )
Tier 1 common equity   $ 2,163,742     $ 2,108,443     $ 2,054,373     $ 2,006,888     $ 1,955,299  
 
Risk weighted assets $ 16,452,305 $ 16,416,387 $ 16,368,976 $ 16,484,702 $ 16,611,662
 
Tier 1 common equity ratio 13.15 % 12.84 % 12.55 % 12.17 % 11.77 %
 
         
QUARTERLY EARNINGS TRENDS - UNAUDITED
BOK FINANCIAL CORPORATION
(In thousands, except ratio and per share data)
 
 
Quarter Ended
June 30, March 31, December 31, September 30, June 30,
2011 2011 2010 2010 2010
 
Interest revenue $ 205,717 $ 202,089 $ 197,148 $ 216,967 $ 217,597
Interest expense     31,716       31,450       33,498       36,252       35,484  
Net interest revenue 174,001 170,639 163,650 180,715 182,113
Provision for credit losses     2,700       6,250       6,999       20,000       36,040  

Net interest revenue after provision for credit losses
171,301 164,389 156,651 160,715 146,073
 
Other operating revenue
Brokerage and trading revenue 23,725 25,376 28,610 27,072 24,754
Transaction card revenue 31,024 28,445 29,500 28,852 28,263
Trust fees and commissions 19,150 18,422 18,145 16,774 17,737
Deposit service charges and fees 23,857 22,480 23,732 24,290 28,797
Mortgage banking revenue 19,356 17,356 25,158 29,236 18,335
Bank-owned life insurance 2,872 2,863 3,182 3,004 2,908
Other revenue     7,842       8,332       7,648       7,708       7,374  
Total fees and commissions 127,826 123,274 135,975 136,936 128,168
Gain (loss) on other assets, net 3,344 (68 ) 15 (1,331 ) 1,545
Gain (loss) on derivatives, net 1,225 (2,413 ) (7,286 ) 4,626 7,272
Gain (loss) on mortgage trading securities 9,921 (3,518 ) (11,117 ) 3,369 14,631
Gain on available for sale securities, net 5,468 4,902 953 8,384 8,469
Total other-than-temporary impairment losses (74 ) - (4,768 ) (4,525 ) (10,959 )

Portion of loss recognized in (reclassified from) other comprehensive income
(4,750 ) (4,599 ) (1,859 ) (9,786 ) 8,313
Net impairment losses recognized in earnings     (4,824 )     (4,599 )     (6,627 )     (14,311 )     (2,646 )
Total other operating revenue 142,960 117,578 111,913 137,673 157,439
 
Other operating expense
Personnel 105,603 99,994 106,770 101,216 97,054
Business promotion 4,777 4,624 4,377 4,426 4,945
Professional fees and services 6,258 7,458 9,527 7,621 6,668
Net occupancy and equipment 15,554 15,604 16,331 16,436 15,691
Insurance 4,771 6,186 6,139 6,052 5,596
Data processing and communications 24,428 22,503 23,902 21,601 21,940
Printing, postage and supplies 3,586 3,082 3,170 3,648 3,525

Net losses and operating expenses of repossessed assets
5,859 6,015 6,966 7,230 13,067
Amortization of intangible assets 896 896 1,365 1,324 1,323
Mortgage banking costs 8,968 6,471 11,999 9,093 10,380
Change in fair value of mortgage servicing rights 13,493 (3,129 ) (25,111 ) 15,924 19,458
Visa retrospective responsibility obligation - - (1,103 ) 1,103 -
Other expense     9,016       8,745       14,029       9,491       6,265  
Total other operating expense 203,209 178,449 178,361 205,165 205,912
 
Net income before taxes 111,052 103,518 90,203 93,223 97,600
Federal and state income taxes     39,357       38,752       31,097       29,935       32,042  
 
Net income 71,695 64,766 59,106 63,288 65,558
Net income (loss) attributable to non-controlling interest     2,688       (8 )     274       (979 )     2,036  
 
Net income attributable to BOK Financial Corporation   $ 69,007     $ 64,774     $ 58,832     $ 64,267     $ 63,522  
 
Average shares outstanding:
Basic 67,898,483 67,901,722 67,685,434 67,625,378 67,605,807
Diluted 68,169,485 68,176,527 67,888,950 67,765,344 67,880,587
 
Net income per share:
Basic $ 1.01 $ 0.95 $ 0.86 $ 0.94 $ 0.93
Diluted $ 1.00 $ 0.94 $ 0.86 $ 0.94 $ 0.93
 
         
LOANS BY PRINCIPAL MARKET AREA - UNAUDITED
BOK FINANCIAL CORPORATION
(In thousands)
 
 
Quarter Ended
June 30, March 31, December 31, September 30, June 30,
2011 2011 2010 2010 2010
 
Oklahoma:
Commercial $ 2,594,502 $ 2,618,045 $ 2,581,082 $ 2,662,347 $ 2,704,460
Commercial real estate 619,201 661,254 726,409 748,501 784,549
Residential mortgage 1,309,110 1,219,237 1,253,466 1,293,334 1,257,497
Consumer     267,550     291,412     336,492     349,720     395,274
Total Oklahoma     4,790,363     4,789,948     4,897,449     5,053,902     5,141,780
 
Texas:
Commercial 2,003,847 1,916,270 1,888,635 1,876,994 1,902,934
Commercial real estate 711,906 687,817 686,956 715,859 731,399
Residential mortgage 282,934 283,925 297,027 309,815 308,496
Consumer     140,044     141,199     146,986     151,434     160,377
Total Texas     3,138,731     3,029,211     3,019,604     3,054,102     3,103,206
 
New Mexico:
Commercial 280,306 262,597 279,432 289,368 286,555
Commercial real estate 311,565 326,104 314,781 314,957 294,425
Residential mortgage 95,021 90,466 88,392 87,851 87,549
Consumer     18,536     19,242     19,583     20,153     20,542
Total New Mexico     705,428     698,409     702,188     712,329     689,071
 
Arkansas:
Commercial 74,677 75,889 84,775 91,752 89,376
Commercial real estate 121,286 124,875 116,989 117,137 114,576
Residential mortgage 13,939 14,114 13,155 14,937 15,823
Consumer     52,439     61,746     72,787     84,869     96,189
Total Arkansas     262,341     276,624     287,706     308,695     315,964
 
Colorado:
Commercial 515,829 514,100 470,500 457,421 484,188
Commercial real estate 167,414 172,416 197,180 203,866 225,758
Residential mortgage 66,985 67,975 72,310 75,152 69,325
Consumer     19,507     20,145     21,409     15,402     18,548
Total Colorado     769,735     774,636     761,399     751,841     797,819
 
Arizona:
Commercial 291,515 251,390 231,117 234,739 204,326
Commercial real estate 205,269 213,442 201,018 188,943 163,374
Residential mortgage 86,415 89,384 89,245 85,184 78,890
Consumer     6,772     5,266     3,445     3,061     2,971
Total Arizona     589,971     559,482     524,825     511,927     449,561
 
Kansas / Missouri:
Commercial 417,920 409,966 398,455 359,387 339,689
Commercial real estate 47,074 37,074 34,017 33,859 26,828
Residential mortgage 13,593 12,220 14,653 17,635 16,666
Consumer     2,388     2,265     2,740     2,167     2,133
Total Kansas / Missouri     480,975     461,525     449,865     413,048     385,316
 
TOTAL BOK FINANCIAL   $ 10,737,544   $ 10,589,835   $ 10,643,036   $ 10,805,844   $ 10,882,717
 
         
DEPOSITS BY PRINCIPAL MARKET AREA - UNAUDITED
BOK FINANCIAL CORPORATION
(In thousands)
 
 
Quarter Ended
June 30, March 31, December 31, September 30, June 30,
2011 2011 2010 2010 2010
 
Oklahoma:
Demand $ 2,486,671 $ 2,420,210 $ 2,271,375 $ 2,238,303 $ 2,101,994
Interest-bearing:
Transaction 5,916,784 6,068,304 6,061,626 5,609,811 5,562,287
Savings 120,278 120,020 106,411 103,524 102,590
Time     1,462,137     1,465,506     1,373,307     1,497,344     1,442,525
Total interest-bearing     7,499,199     7,653,830     7,541,344     7,210,679     7,107,402
Total Oklahoma     9,985,870     10,074,040     9,812,719     9,448,982     9,209,396
 
Texas:
Demand 1,528,772 1,405,892 1,389,876 1,238,103 1,150,495
Interest-bearing:
Transaction 1,741,176 1,977,850 1,791,810 1,786,979 1,674,519
Savings 42,185 40,313 36,429 35,614 36,814
Time     992,366     1,015,754     966,116     1,031,877     1,003,936
Total interest-bearing     2,775,727     3,033,917     2,794,355     2,854,470     2,715,269
Total Texas     4,304,499     4,439,809     4,184,231     4,092,573     3,865,764
 
New Mexico:
Demand 299,305 282,708 270,916 262,567 223,869
Interest-bearing:
Transaction 483,026 498,355 530,244 535,012 491,708
Savings 24,613 24,455 28,342 27,906 30,231
Time     449,618     453,580     450,177     469,493     476,155
Total interest-bearing     957,257     976,390     1,008,763     1,032,411     998,094
Total New Mexico     1,256,562     1,259,098     1,279,679     1,294,978     1,221,963
 
Arkansas:
Demand 17,452 15,144 15,310 17,604 14,919
Interest-bearing:
Transaction 138,954 130,613 129,580 137,797 108,104
Savings 1,673 1,514 1,266 1,522 1,288
Time     82,112     94,889     100,998     116,536     119,472
Total interest-bearing     222,739     227,016     231,844     255,855     228,864
Total Arkansas     240,191     242,160     247,154     273,459     243,783
 
Colorado:
Demand 196,915 197,579 157,742 156,685 143,783
Interest-bearing:
Transaction 509,738 528,948 522,207 501,405 441,085
Savings 21,406 21,655 20,310 19,681 18,869
Time     563,642     546,586     502,889     495,899     497,538
Total interest-bearing     1,094,786     1,097,189     1,045,406     1,016,985     957,492
Total Colorado     1,291,701     1,294,768     1,203,148     1,173,670     1,101,275
 
Arizona:
Demand 150,194 106,880 74,887 97,384 71,711
Interest-bearing:
Transaction 107,961 102,089 95,890 94,108 94,033
Savings 1,364 984 809 812 1,062
Time     44,619     50,060     52,227     59,678     63,643
Total interest-bearing     153,944     153,133     148,926     154,598     158,738
Total Arizona     304,138     260,013     223,813     251,982     230,449
 
Kansas / Missouri:
Demand 46,668 28,774 40,658 35,869 28,518
Interest-bearing:
Transaction 115,684 222,705 124,005 180,273 116,423
Savings 358 323 200 132 110
Time     40,206     51,236     63,454     70,673     69,819
Total interest-bearing     156,248     274,264     187,659     251,078     186,352
Total Kansas / Missouri     202,916     303,038     228,317     286,947     214,870
 
TOTAL BOK FINANCIAL   $ 17,585,877   $ 17,872,926   $ 17,179,061   $ 16,822,591   $ 16,087,500
 
         
NET INTEREST MARGIN TREND - UNAUDITED
BOK FINANCIAL CORPORATION
 
 
Quarter Ended
June 30, March 31, December 31, September 30, June 30,
2011 2011 2010 2010 2010
TAX-EQUIVALENT ASSETS YIELDS
Funds sold and resell agreements 0.14 % 0.08 % 0.13 % 0.08 % 0.14 %
Trading securities 2.92 % 3.84 % 4.06 % 3.26 % 4.51 %
Investment securities:
Taxable (A) 6.13 % 6.15 % 6.01 % 5.85 % 6.92 %
Tax-exempt (A)   4.82 %   4.88 %   4.88 %   4.89 %   4.94 %
Total investment securities (A)   5.49 %   5.46 %   5.39 %   5.31 %   5.56 %
Available for sale securities:
Taxable (A) 3.02 % 3.15 % 2.61 % 3.25 % 3.54 %
Tax-exempt (A)   5.12 %   5.68 %   5.42 %   5.13 %   5.06 %
Total available for sale securities (A)   3.04 %   3.17 %   2.63 %   3.27 %   3.55 %
Mortgage trading securities 4.42 % 3.74 % 3.43 % 4.14 % 4.38 %
Residential mortgage loans held for sale 4.48 % 4.33 % 3.85 % 4.24 % 4.76 %
Loans 4.69 % 4.75 % 4.76 % 4.87 % 4.83 %
Less allowance for loan losses   -     -     -     -     -  
Loans, net of allowance 4.82 % 4.89 % 4.90 % 5.01 % 4.97 %
Total tax-equivalent yield on earning assets (A) 4.01 % 4.10 % 3.86 % 4.22 % 4.35 %
COST OF INTEREST-BEARING LIABILITIES
Interest-bearing deposits:
Interest-bearing transaction 0.27 % 0.32 % 0.37 % 0.45 % 0.49 %
Savings 0.39 % 0.37 % 0.35 % 0.39 % 0.40 %
Time   1.86 %   1.82 %   1.78 %   1.80 %   1.74 %
Total interest-bearing deposits 0.71 % 0.72 % 0.76 % 0.85 % 0.87 %
Funds purchased 0.09 % 0.16 % 0.25 % 0.19 % 0.20 %
Repurchase agreements 0.20 % 0.40 % 0.49 % 0.52 % 0.56 %
Other borrowings 4.76 % 1.31 % 0.37 % 0.36 % 0.35 %
Subordinated debt   5.57 %   5.67 %   5.64 %   5.64 %   5.57 %
Total cost of interest-bearing liabilities   0.81 %   0.80 %   0.81 %   0.86 %   0.85 %
Tax-equivalent net interest revenue spread 3.20 % 3.30 % 3.05 % 3.36 % 3.50 %
Effect of noninterest-bearing funding sources and other   0.20 %   0.17 %   0.16 %   0.16 %   0.15 %
Tax-equivalent net interest margin   3.40 %   3.47 %   3.21 %   3.52 %   3.65 %
 
(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
June 30, March 31, December 31, September 30, June 30,
2011 2011 2010 2010 2010
 
Nonperforming assets:
Nonaccruing loans:
Commercial $ 53,365 $ 57,449 $ 38,455 $ 49,361 $ 82,775
Commercial real estate 110,363 125,504 150,366 177,709 193,698
Residential mortgage 31,693 37,824 37,426 38,898 40,033
Consumer     4,749       5,185       4,567       2,784       3,188  
Total nonaccruing loans 200,170 225,962 230,814 268,752 319,694
Renegotiated loans (A) 22,261 21,705 22,261 25,252 21,327
Real estate and other repossessed assets     129,026       131,420       141,394       126,859       119,908  
Total nonperforming assets   $ 351,457     $ 379,087     $ 394,469     $ 420,863     $ 460,929  
 
Nonaccruing loans by principal market:
Oklahoma $ 41,411 $ 49,585 $ 60,805 $ 72,264 $ 93,898
Texas 32,385 34,404 33,157 36,979 49,695
New Mexico 17,244 17,510 19,283 23,792 26,956
Arkansas 24,842 29,769 7,914 9,990 10,933
Colorado 37,472 40,629 49,416 55,631 66,040
Arizona 43,307 54,065 60,239 70,038 72,111
Kansas / Missouri     3,509       -       -       58       61  
Total nonaccruing loans   $ 200,170     $ 225,962     $ 230,814     $ 268,752     $ 319,694  
 
Nonaccruing loans by loan portfolio sector:
Commercial:
Energy $ 345 $ 415 $ 465 $ 8,189 $ 26,259
Manufacturing 4,366 4,545 2,116 2,454 3,237
Wholesale / retail 25,138 30,411 8,486 5,584 5,561
Integrated food services - 6 13 58 58
Services 16,254 15,720 19,262 23,925 31,062
Healthcare 5,962 2,574 3,534 2,608 8,568
Other commercial and industrial     1,300       3,778       4,579       6,543       8,030  
Total commercial     53,365       57,449       38,455       49,361       82,775  
Commercial real estate:
Construction and land development 76,265 90,707 99,579 116,252 132,686
Retail 4,642 5,276 4,978 8,041 4,967
Office 11,473 14,628 19,654 24,942 24,764
Multifamily 4,717 1,900 6,725 6,924 7,253
Industrial - - 4,087 4,151 4,223
Other commercial real estate     13,266       12,993       15,343       17,399       19,805  
Total commercial real estate     110,363       125,504       150,366       177,709       193,698  
Residential mortgage:
Permanent mortgage 27,991 33,466 32,111 36,654 37,978
Home equity     3,702       4,358       5,315       2,244       2,055  
Total residential mortgage     31,693       37,824       37,426       38,898       40,033  
Consumer     4,749       5,185       4,567       2,784       3,188  
Total nonaccruing loans   $ 200,170     $ 225,962     $ 230,814     $ 268,752     $ 319,694  
 
Performing loans 90 days past due (B) $ 2,341 $ 8,043 $ 7,966 $ 5,579 $ 9,264
 
Gross charge-offs $ 12,774 $ 15,232 $ 20,152 $ 25,340 $ 38,168
Recoveries     4,256       4,914       5,939       5,205       2,614  
Net charge-offs   $ 8,518     $ 10,318     $ 14,213     $ 20,135     $ 35,554  
 
Provision for credit losses $ 2,700 $ 6,250 $ 6,999 $ 20,000 $ 36,040
 
Allowance for loan losses to period end loans 2.67 % 2.73 % 2.75 % 2.77 % 2.75 %
Combined allowance for credit losses to period end loans 2.77 % 2.86 % 2.89 % 2.91 % 2.89 %

Nonperforming assets to period end loans and repossessed assets
3.23 % 3.54 % 3.66 % 3.85 % 4.19 %
Net charge-offs (annualized) to average loans 0.32 % 0.39 % 0.53 % 0.74 % 1.30 %
Allowance for loan losses to nonaccruing loans 143.18 % 128.14 % 126.93 % 111.31 % 93.68 %
Combined allowance for credit losses to nonaccruing loans 148.55 % 134.17 % 133.11 % 117.01 % 98.40 %
 

(A) includes residential mortgage loans guaranteed by agencies of the U.S. government. These loans have been modified to extend payment terms and/or reduce interest rates to current market.
$ 18,716 $ 18,304 $ 18,551 $ 21,706 $ 17,598
 

(B) Excludes residential mortgage loans guaranteed agencies of the U.S. government
 

Copyright Business Wire 2010

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