BOK Financial Reports Quarterly Earnings Of $85 Million

BOK Financial Corporation reported quarterly net income of $85.1 million or $1.24 per diluted share for the third quarter of 2011, up from $69.0 million or $1.00 per diluted share for the second quarter of 2011 and $64.3 million or $0.94 per diluted share for the third quarter of 2010. Net income for the nine months ended September 30, 2011 totaled $218.9 million or $3.19 per diluted share compared to $187.9 million or $2.75 per diluted share for the nine months ended September 30, 2010.

“BOK Financial is pleased to announce another outstanding quarter underscored by commercial loan growth and strong fees and commissions revenue,” said President and CEO Stan Lybarger. “The Company’s performance and capital position allows us to increase our quarterly cash dividend for the second time this year. Net interest revenue increased modestly over the previous quarter despite falling market interest rates and we continue to benefit from diversified sources of non-interest income. Mortgage banking revenue grew in response to continued low interest rates and brokerage and trading revenue benefited from increased market volatility. Commercial loan growth gained momentum in most of our markets.”

Highlights of third quarter of 2011 included:
  • Fees and commissions revenue grew to $146.0 million for the third quarter of 2011, compared to $127.8 million for the second quarter of 2011. Mortgage banking revenue increased $10.1 million and brokerage and trading revenue increased $5.7 million.
  • Operating expenses, excluding changes in the fair value of mortgage servicing rights, totaled $196.1 million, up $6.4 million over the prior quarter. The Company accrued $5.0 million for exposure to on-going litigation and made a $4.0 million discretionary contribution to the BOKF Charitable Foundation during the third quarter.
  • No provision for credit losses was recorded in the third quarter of 2011, compared to a provision for credit losses of $2.7 million for the second quarter of 2011. Net loans charged off totaled $10.2 million or 0.37% of average loans on an annualized basis for the third quarter of 2011 compared to $8.5 million or 0.32% on an annualized basis for the previous quarter.
  • The combined allowance for credit losses totaled $287 million or 2.58% of outstanding loans at September 30, 2011 compared to $297 million or 2.77% of outstanding loans at June 30, 2011. Nonperforming assets totaled $388 million or 3.45% of outstanding loans and repossessed assets at September 30, 2011 and $351 million or 3.23% of outstanding loans and repossessed assets at June 30, 2011.
  • Outstanding loan balances were $11.1 billion at September 30, 2011 compared to $10.7 billion at June 30, 2011. Commercial loan balances continued to grow in the third quarter of 2011, increasing $297 million over June 30, 2011. Commercial real estate loans increased $76 million and residential mortgage loans increased $44 million. Consumer loans decreased $30 million.
  • Period end deposits totaled $18.4 billion at September 30, 2011 compared to $17.6 billion at June 30, 2011. Demand deposit accounts increased $688 million and interest-bearing transaction accounts increased $240 million. Time deposits decreased $80 million.
  • Tangible common equity ratio was 9.65% at September 30, 2011 and 9.71% at June 30, 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 continue to exceed the regulatory definition of well capitalized. The Company’s Tier 1 capital ratios, as defined by banking regulations, were 13.14% at September 30, 2011 and 13.30% at June 30, 2011.
  • The Company paid a cash dividend of $19 million or $0.275 per common share during the third quarter of 2011. On October 25, 2011, the board of directors approved an increase in the quarterly cash dividend to $0.33 per common share payable on or about November 30, 2011 to shareholders of record as of November 16, 2011.

Net Interest Revenue

Net interest revenue increased $1.4 million over the second quarter of 2011. Average earning assets increased $393 million. Net interest margin decreased 6 basis points from the prior quarter to 3.34%.

Average outstanding loans increased $192 million due primarily to a $183 million increase in average commercial loan balances. The average balance of the available for sale securities portfolio increased $113 million and the average balance of the mortgage trading securities held as an economic hedge of mortgage servicing rights increased $77 million.

Average interest-bearing deposits increased $116 million over the previous quarter. Interest-bearing transaction account balances increased $126 million, partially offset by a $14 million decrease in average time deposit account balances. Average demand deposits increased $533 million. Average balances of borrowed funds decreased $110 million compared to the previous quarter.

The yield on average earning assets decreased 10 basis points compared to the preceding quarter primarily due to lower interest rates. The available for sale securities portfolio yield decreased 21 basis points to 2.83%. Historically low residential mortgage rates in the third quarter of 2011 increased actual and projected prepayment speeds. Increased prepayment speeds reduced available for sale portfolio yields through accelerated premium amortization and lower reinvestment rates. The loan portfolio yield increased 2 basis points to 4.71%. The cost of interest-bearing liabilities decreased 5 basis points from the previous quarter to 0.76%.

Fees and Commissions Revenue

Fees and commissions revenue increased $18.2 million to $146.0 million for the third quarter of 2011. Mortgage banking revenue increased $10.1 million and brokerage and trading revenue increased $5.7 million.

Mortgage banking revenue grew on increased mortgage loan origination volume. Mortgage loan production revenue increased $10.3 million over the previous quarter. Residential mortgage loans funded for sale increased to $637 million in the third quarter of 2011 from $484 million in the second quarter of 2011. Refinanced mortgage loans increased to 54% of loans originated in the third quarter from 36% of loans originated in the second quarter. Loans originated for home purchases were slightly lower.

Brokerage and trading revenue increased primarily due to higher transaction volume as a result of increased market volatility. Revenue from sales of securities to customers was up $2.4 million. Lower interest rates also increased revenue from to-be announced securities sold to mortgage-banking customers by $1.8 million over the previous quarter.

“While we are pleased with growth in fees and commissions revenue, we expect interchange fee regulations which became effective October 1 to reduce annual revenue by $20 million to $25 million,” said Lybarger. “We continue to seek the appropriate balance between providing value-added services and charging reasonable fees.”

Operating Expenses

Total operating expenses were $220.9 million for the third quarter of 2011 and $203.2 million for the second quarter of 2011. Excluding changes in the fair value of mortgage servicing rights, operating expenses totaled $196.1 million, up $6.4 million over the second quarter of 2011.

Personnel costs decreased $2.3 million compared to the prior quarter. Deferred compensation expense decreased $3.9 million in response to the market performance of BOK Financial stock and other investments. Cash-based incentive compensation increased $2.7 million. In addition, seasonal changes reduced payroll taxes $1.4 million.

Non-personnel expenses increased $8.7 million over the second quarter of 2011. During the third quarter of 2011, the Company made a discretionary $4 million contribution to the BOKF Charitable Foundation. The BOKF Foundation partners with charitable organizations to support needs within our communities. The Company also accrued $5 million for exposure to on-going litigation. FDIC insurance expense decreased $2.5 million due to the change to a risk-sensitive assessment based on assets rather than deposits.

Credit Quality

Nonperforming assets increased $36 million during the third quarter to $388 million or 3.45% of outstanding and repossessed assets at September 30, 2011. Nonaccruing loans increased $29 million due largely to a single commercial credit identified as nonaccruing during the quarter. Renegotiated residential mortgage loans guaranteed by U.S. government agencies increased $8 million.

Nonaccruing loans totaled $229 million or 2.06% of outstanding loans at September 30, 2011 and $200 million or 1.86% of outstanding loans at June 30, 2011. During the third quarter of 2011, $62 million of new nonaccruing loans were identified offset by $10 million in payments received, $14 million in charge-offs and $7.4 million in foreclosures and repossessions .

Nonaccruing commercial loans totaled $84 million or 1.29% of total commercial loans at September 30, 2011, up $30 million since June 30, 2011. The increase in nonaccruing commercial loans included $24 million from a single credit in the manufacturing sector of the loan portfolio. Nonaccruing manufacturing sector loans totaled $28 million or 7.47% of total manufacturing sector loans, nonaccruing wholesale/retail sector loans totaled $27 million or 2.64% of total wholesale/retail sector loans and nonaccruing services sector loans totaled $18 million or 0.98% of total services sector loans.

Nonaccruing commercial real estate loans totaled $110 million or 4.87% of outstanding commercial real estate loans at September 30, 2011, largely unchanged from June 30, 2011. Nonaccruing commercial real estate loans continued to be largely concentrated in land development and residential construction loans with $72 million or 20% of all land development and construction loans nonaccruing at September 30, 2011. Approximately $24 million or 35% of total commercial real estate loans in Colorado and $15 million or 53% of total commercial real estate loans in Arizona are nonaccruing. Newly identified nonaccruing commercial real estate loans totaled $8.0 million, offset by $5.6 million of cash payments received, $2.3 million of charge-offs and $1.4 million of foreclosures.

Nonaccruing residential mortgage loans totaled $32 million or 1.66% of outstanding residential mortgage loans, unchanged from June 30, 2011. Principally all non-guaranteed residential mortgage loans past due 90 days or more are nonaccruing. Residential mortgage loans past due 30 to 89 days and still accruing interest, excluding loans guaranteed by U.S. government agencies, totaled $24 million at September 30, 2011 and $21 million at June 30, 2011.

The combined allowance for credit losses totaled $287 million or 2.58% of outstanding loans and 125.16% of nonaccruing loans at September 30, 2011. The allowance for loan losses was $271 million and the allowance for off-balance sheet credit losses was $16 million. Over the most recent five quarters, the general trend of net charge-offs has stabilized from their elevated levels. Net losses charged against the allowance for loan loss totaled $10.2 million or 0.37% on an annualized basis for the third quarter of 2011 compared to $8.5 million or 0.32% on an annualized basis for the second quarter 2011. Considering all credit factors, no provision for credit losses was necessary in the third quarter of 2011 to sustain an appropriate allowance for credit losses at September 30, 2011.

Real estate and other repossessed assets totaled $128 million at September 30, 2011 primarily consisting of $66 million of 1-4 family residential properties and residential land development properties, $39 million of developed commercial real estate properties and $19 million of undeveloped land. The distribution of real estate owned and other repossessed assets among various markets included $37 million attributed to Arizona, $31 million attributed to Texas, $14 million attributed to New Mexico, $14 million attributed to Oklahoma and $12 million attributed to Colorado. Real estate and other repossessed assets decreased by $1.1 million during the third quarter due to $24 million of additions, including $16 million of 1-4 family residential properties guaranteed by U.S. government agencies, offset by $23 million in sales and $1.4 million in write-downs and net losses.

The Company also has off-balance sheet credit risk related to residential mortgage loans sold to U.S. government agencies with full recourse prior to 2008 under various community development programs. 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 Company no longer sells residential mortgage loans with recourse other than obligations under standard representations and warranties. 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 decreased to $262 million at September 30, 2011 from $274 million at June 30, 2011. The loans are primarily to borrowers in our market areas, including $185 million in Oklahoma, $26 million in Arkansas, $16 million in New Mexico, $14 million in Kansas/Missouri and $12 million in Texas. At September 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 $19 million is available to absorb losses on these loans.

Securities and Derivatives

The fair value of the available for sale securities portfolio totaled $9.6 billion at September 30, 2011, down $53 million from June 30, 2011. The available for sale portfolio consisted primarily of residential mortgage-backed securities, including $9.0 billion fully backed by U.S. government agencies and $457 million privately issued by publicly owned financial institutions. Privately issued mortgage-backed securities included $309 million backed by Jumbo-A residential mortgage loans and $148 million backed by Alt-A residential mortgage loans.

Net unrealized gains on available for sale securities totaled $279 million at September 30, 2011 and $263 million at June 30, 2011. Net unrealized gains on residential mortgage-backed securities issued by U.S. government agencies increased $29 million to $334 million at September 30, 2011. Net unrealized losses on privately-issued residential mortgage-backed securities totaled $67 million at September 30, 2011 and $68 million at June 30, 2011. Net unrealized gains on equity securities and mutual funds totaled $9.8 million compared to $22 million at June 30, 2011.

The amortized cost of privately issued residential mortgage-backed securities totaled $525 million at September 30, 2011, down $57 million since June 30, 2011. Approximately $481 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 third quarter reduced the amortized cost of privately issued residential mortgage-backed securities rated below investment grade by $46 million. Amortized cost of these securities was also reduced by $11.3 million for credit-related impairment charges due to additional expected home price depreciation. Net unrealized losses on privately-issued residential mortgage-backed securities rated below investment grade totaled $64 million at September 30, 2011. Net unrealized losses on these same below investment grade securities were $66 million at June 30, 2011.

The Company recognized $16.7 million of net gains on sales of $612 million of available for sale securities in the third quarter of 2011 and $5.5 million of net gains on sales of $654 million of available for sale securities in the second 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.

The Company also maintains a portfolio of residential mortgage-backed securities issued by U.S. government agencies and interest rate derivative contracts designated as an economic hedge of the changes in the fair value of our mortgage servicing rights. Benchmark mortgage interest rates decreased during the third quarter 2011, causing prepayment speeds to increase and the value of our mortgage servicing rights to decrease by $24.8 million. This decrease was largely offset by a gain of $21.8 million on securities and interest rate derivative contracts held as an economic hedge.

Loans, Deposits and Capital

Loans

Outstanding loans at September 30, 2011 were $11.1 billion, up $387 million over June 30, 2011. Growth in commercial, commercial real estate and residential mortgage loans was partially offset by a decrease in consumer loans.

Outstanding commercial loan balances continued to grow in most geographic regions, increasing $297 million over June 30, 2011. Commercial loan growth was notably strong in the Oklahoma and Texas markets. Commercial loans increased $213 million in Oklahoma and $65 million in Texas. Loans in the services sector of the portfolio increased $144 million. The services sector generally consists of smaller-balance commercial loans to a variety of businesses, including community foundations and gaming. Energy sector loans increased $115 million primarily due to increases in the Texas and Oklahoma markets, partially offset by a decrease in the Colorado market. Unfunded energy loan commitments increased $113 million during the third quarter to $2.2 billion. All other unfunded commercial loan commitments totaled $2.8 billion at September 30, 2011.

Commercial real estate loans increased $76 million during the third quarter of 2011. Outstanding balances were up in most geographic regions. Loans secured by industrial facilities increased $63 million and loan secured by multi-family residential properties increased $52 million. Loans secured by office properties decreased $57 million. Construction and land development loan balances continued to decline, down $12 million, primarily in the Colorado and Texas markets. Unfunded commercial real estate loan commitments increased $46 million during the third quarter to $354 million.

Residential mortgage loans increased $44 million over June 30, 2011 primarily due to a $38 million increase in loans guaranteed by U.S. government agencies. This increase consists of loans previously sold into Government National Mortgage Association mortgage pools that we have either repurchased or that are eligible to be repurchased by the Company.

Consumer loans decreased $30 million from June 30, 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 $130 million of indirect automobile loans remain outstanding at September 30, 2011.

Deposits

Total deposits increased $853 million over June 30, 2011 to $18.4 billion at September 30, 2011. Demand deposit balances increased $688 million and interest-bearing transaction account balances increased $240 million. Time deposits decreased $80 million. Among the lines of business, commercial deposits increased $382 million, wealth management deposits increased $325 million and consumer deposits increased $129 million. The increase in commercial deposit balances was largely driven by commercial and industrial and energy customers.

Capital

The Company and its subsidiary bank exceeded the regulatory definition of well capitalized at September 30, 2011. The Company’s Tier 1 and total capital ratios were 13.14% and 16.54%, respectively at September 30, 2011. Tier 1 and total capital ratios were 13.30% and 16.80%, respectively, at June 30, 2011. In addition the Company’s tangible common equity ratio, a non-GAAP measure, was 9.65% at September 30, 2011 and 9.71% at June 30, 2011. Unrealized securities gains added 59 basis points to the tangible common equity ratio at September 30, 2011. The Company repurchased 492,444 common shares at an average price of $46.43 per share during the third quarter through a previously-announced share repurchase program.

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 September 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)
 
September 30, June 30, September 30,
2011 2011 2010
(Unaudited) (Unaudited) (Unaudited)
ASSETS
Cash and due from banks $ 953,688 $ 1,098,721 $ 1,175,434
Funds sold and resell agreements 19,193 12,040 20,468
Trading securities 109,659 99,846 82,247
Investment securities 452,652 349,583 343,748
Available for sale securities 9,619,631 9,567,008 9,450,271
Mortgage trading securities 672,191 553,231 475,215
Residential mortgage loans held for sale 256,397 169,609 316,893
Loans:
Commercial 6,475,689 6,178,596 5,972,008
Commercial real estate 2,259,902 2,183,715 2,323,122
Residential mortgage 1,911,896 1,867,997 1,883,908
Consumer       477,082         507,236         626,806  
Total loans 11,124,569 10,737,544 10,805,844
Less allowance for loan losses       (271,456 )       (286,611 )       (299,154 )
Loans, net of allowance 10,853,113 10,450,933 10,506,690
Premises and equipment, net 264,325 265,057 267,189
Receivables 111,427 129,944 138,234
Goodwill 335,601 335,601 335,601
Intangible assets, net 11,115 12,010 15,168
Mortgage servicing rights, net 87,948 109,192 86,333
Real estate and other repossessed assets 127,943 129,026 126,859
Bankers' acceptances 211 1,661 259
Derivative contracts 370,616 229,887 266,104
Cash surrender value of bank-owned life insurance 260,506 261,203 254,884
Receivable on unsettled securities sales 172,641 170,600 124,365
Other assets       387,408         293,030         399,990  
TOTAL ASSETS     $ 25,066,265       $ 24,238,182       $ 24,385,952  
 
 
LIABILITIES AND EQUITY
Deposits:
Demand $ 5,414,284 $ 4,725,977 $ 4,046,515
Interest-bearing transaction 9,252,837 9,013,323 8,845,385
Savings 217,431 211,877 189,191
Time       3,554,470         3,634,700         3,741,500  
Total deposits 18,439,022 17,585,877 16,822,591
Funds purchased 1,318,668 1,706,893 923,879
Repurchase agreements 1,206,793 1,106,163 1,125,854
Other borrowings 80,276 149,703 1,303,591
Subordinated debentures 398,834 398,788 398,658
Accrued interest, taxes, and expense 155,188 104,493 132,564
Bankers' acceptances 211 1,661 259
Due on unsettled securities purchases 218,097 166,607 756,532
Derivative contracts 341,822 173,917 218,296
Other liabilities       139,804         151,906         179,740  
TOTAL LIABILITIES 22,298,715 21,546,008 21,861,964
Shareholders' equity:
Capital, surplus and retained earnings 2,569,021 2,521,462 2,364,609
Accumulated other comprehensive income       163,571         146,255         139,041  
TOTAL SHAREHOLDERS' EQUITY 2,732,592 2,667,717 2,503,650
Non-controlling interest       34,958         24,457         20,338  
TOTAL EQUITY       2,767,550         2,692,174         2,523,988  
TOTAL LIABILITIES AND EQUITY     $ 25,066,265       $ 24,238,182       $ 24,385,952  
                   
AVERAGE BALANCE SHEETS - UNAUDITED
BOK FINANCIAL CORPORATION
(In thousands)
Quarter Ended
September 30, June 30, March 31, December 31, September 30,
2011 2011 2011 2010 2010
 
ASSETS
Funds sold and resell agreements $ 12,344 $ 8,814 $ 20,680 $ 21,128 $ 18,882
Trading securities 88,576 80,113 60,768 74,084 69,315
Investment securities 329,627 357,698 339,246 341,941 336,455
Available for sale securities 9,656,592 9,543,482 9,376,674 9,581,708 9,152,111
Mortgage trading securities 594,629 518,073 397,093 474,731 602,049
Residential mortgage loans held for sale 156,621 134,876 125,494 282,734 242,559
Loans:
Commercial 6,329,135 6,145,918 6,084,765 5,946,960 6,003,159
Commercial real estate 2,208,757 2,172,166 2,236,400 2,282,779 2,335,226
Residential mortgage 1,868,627 1,858,117 1,788,049 1,832,624 1,893,162
Consumer       466,285         504,553         544,542         604,830         629,968  
Total loans 10,872,805 10,680,755 10,653,756 10,667,193 10,861,515
Less allowance for loan losses       (285,570 )       (291,308 )       (295,014 )       (307,223 )       (308,139 )
Total loans, net       10,587,235         10,389,447         10,358,742         10,359,970         10,553,376  
Total earning assets 21,425,624 21,032,503 20,678,697 21,136,296 20,974,747
Cash and due from banks 1,045,450 764,806 1,095,910 1,092,979 989,782
Cash surrender value of bank-owned life insurance 260,505 259,337 256,456 255,530 252,912
Derivative contracts 228,466 253,163 211,895 249,861 267,952
Other assets       1,661,693         1,669,426         1,496,816         1,548,285         1,706,897  
TOTAL ASSETS     $ 24,621,738       $ 23,979,235       $ 23,739,774       $ 24,282,951       $ 24,192,290  
 
LIABILITIES AND EQUITY
Deposits:
Demand $ 5,086,538 $ 4,554,000 $ 4,265,657 $ 4,171,595 $ 3,831,486
Interest-bearing transaction 9,310,046 9,184,141 9,632,595 9,325,573 8,699,495
Savings 214,979 210,707 203,638 191,235 189,512
Time       3,617,731         3,632,130         3,616,991         3,602,150         3,774,136  
Total deposits 18,229,294 17,580,978 17,718,881 17,290,553 16,494,629
Funds purchased 994,099 1,168,670 820,969 775,620 1,096,873
Repurchase agreements 1,128,275 1,004,217 1,062,359 1,201,760 1,130,215
Other borrowings 128,288 187,441 144,987 829,756 1,465,516
Subordinated debentures 398,812 398,767 398,723 398,680 398,638
Derivative contracts 187,515 175,199 144,492 197,330 228,297
Other liabilities       817,049         813,074         884,566         1,053,695         895,703  
TOTAL LIABILITIES 21,883,332 21,328,346 21,174,977 21,747,394 21,709,871
Total equity       2,738,406         2,650,889         2,564,797         2,535,557         2,482,419  
TOTAL LIABILITIES AND EQUITY     $ 24,621,738       $ 23,979,235       $ 23,739,774       $ 24,282,951       $ 24,192,290  

 

 

 

 

 
 
STATEMENTS OF EARNINGS - UNAUDITED
BOK FINANCIAL CORPORATION
(In thousands, except per share data)
    Quarter Ended     Nine Months Ended
September 30, September 30,
2011     2010 2011     2010
 
 
Interest revenue $ 205,749 $ 216,967 $ 613,555 $ 653,934
Interest expense       30,365         36,252         93,531         108,532  
Net interest revenue 175,384 180,715 520,024 545,402
Provision for credit losses       -         20,000         8,950         98,140  

Net interest revenue after provision for credit losses
175,384 160,715 511,074 447,262
 
Other operating revenue
Brokerage and trading revenue 29,451 27,072 78,552 72,861
Transaction card revenue 31,328 28,852 90,797 82,802
Trust fees and commissions 17,853 16,774 55,425 50,831
Deposit service charges and fees 24,614 24,290 70,951 79,879
Mortgage banking revenue 29,493 29,236 66,205 62,442
Bank-owned life insurance 2,761 3,004 8,496 8,884
Other revenue       10,535         7,708         26,709         22,720  
Total fees and commissions 146,035 136,936 397,135 380,419
Gain on other assets, net 712 (1,331 ) 3,988 (1,176 )
Gain (loss) on derivatives, net 4,048 4,626 2,860 11,557
Gain on mortgage trading securities, net 17,788 3,369 24,191 18,448
Gain on available for sale securities, net 16,694 8,384 27,064 20,929
Total other-than-temporary impairment losses (9,467 ) (4,525 ) (9,541 ) (25,192 )

Portion of loss recognized in (reclassified from) other comprehensive income
      (1,833 )       (9,786 )       (11,182 )       4,010  
Net impairment losses recognized in earnings       (11,300 )       (14,311 )       (20,723 )       (21,182 )
Total other operating revenue 173,977 137,673 434,515 408,995
 
Other operating expense
Personnel 103,260 101,216 308,857 295,094
Business promotion 5,280 4,426 14,681 13,349
Contribution to BOKF Charitable Foundation 4,000 - 4,000 -
Professional fees and services 7,418 7,621 21,134 20,690
Net occupancy and equipment 16,627 16,436 47,785 47,638
Insurance 2,206 6,052 13,163 18,181
Data processing and communications 24,446 21,601 71,377 63,850
Printing, postage and supplies 3,780 3,648 10,448 10,495

Net losses and operating expenses of repossessed assets
5,939 7,230 17,813 27,517
Amortization of intangible assets 896 1,324 2,688 3,971
Mortgage banking costs 9,349 9,093 24,788 28,740
Change in fair value of mortgage servicing rights 24,822 15,924 35,186 21,450
Visa retrospective responsibility obligation - 1,103 - 1,103
Other expense       12,873         9,491         30,634         22,731  
Total other operating expense 220,896 205,165 602,554 574,809
 
Net income before taxes 128,465 93,223 343,035 281,448
Federal and state income taxes       43,006         29,935         121,115         92,260  
 
Net income 85,459 63,288 221,920 189,188
Net income (loss) attributable to non-controlling interest       358         (979 )       3,038         1,266  
 
Net income attributable to BOK Financial Corporation     $ 85,101       $ 64,267       $ 218,882       $ 187,922  
 
Average shares outstanding:
Basic 67,827,591 67,625,378 67,875,875 67,608,277
Diluted 68,037,419 67,765,344 68,127,754 67,812,436
 
Net income per share:
Basic $ 1.24 $ 0.94 $ 3.20 $ 2.76
Diluted $ 1.24 $ 0.94 $ 3.19 $ 2.75
                   
FINANCIAL HIGHLIGHTS - UNAUDITED
BOK FINANCIAL CORPORATION
(In thousands, except ratio and share data)
Quarter Ended
September 30, June 30, March 31, December 31, September 30,
2011 2011 2011 2010 2010
Capital:
Period-end shareholders' equity $ 2,732,592 $ 2,667,717 $ 2,576,135 $ 2,521,726 $ 2,503,650
Risk weighted assets $ 17,106,533 $ 16,452,305 $ 16,416,387 $ 16,368,976 $ 16,484,702
Risk-based capital ratios:
Tier 1 13.14 % 13.30 % 12.97 % 12.69 % 12.30 %
Total capital 16.54 % 16.80 % 16.48 % 16.20 % 15.79 %
Leverage ratio 9.37 % 9.29 % 9.13 % 8.74 % 8.61 %
Tangible common equity ratio (A) 9.65 % 9.71 % 9.54 % 9.21 % 8.96 %
Tier 1 common equity ratio (B) 12.94 % 13.15 % 12.84 % 12.55 % 12.17 %
 
Common stock:
Book value per share $ 40.18 $ 38.97 $ 37.64 $ 36.97 $ 36.77
Market value per share:
High $ 55.81 $ 54.72 $ 56.32 $ 54.86 $ 50.58
Low $ 44.00 $ 50.13 $ 50.37 $ 44.83 $ 42.89
Cash dividends paid $ 18,836 $ 18,823 $ 17,102 $ 17,025 $ 16,856
Dividend payout ratio 22.13 % 27.28 % 26.40 % 28.94 % 26.23 %
Shares outstanding, net 68,006,390 68,462,869 68,438,422 68,207,689 68,091,126
Stock buy-back program:
Shares repurchased 492,444 - - - -
Amount     $ 22,866       $ -       $ -       $ -       $ -  
Average price per share     $ 46.43       $ -       $ -       $ -       $ -  
 
Performance ratios (quarter annualized):
Return on average assets 1.37 % 1.15 % 1.11 % 0.96 % 1.05 %
Return on average equity 12.33 % 10.44 % 10.24 % 9.21 % 10.27 %
Net interest margin 3.34 % 3.40 % 3.47 % 3.21 % 3.52 %
Efficiency ratio 60.13 % 62.23 % 61.15 % 65.60 % 59.07 %
 
Other data:
Trust assets $ 31,750,636 $ 33,075,456 $ 32,013,487 $ 32,751,501 $ 31,460,021
Mortgage servicing portfolio $ 11,249,503 $ 11,283,442 $ 11,202,626 $ 11,263,130 $ 11,190,802
Mortgage loans funded for sale $ 637,127 $ 483,808 $ 419,684 $ 821,481 $ 756,060
Mortgage loan refinances to total fundings 54 % 36 % 49 % 72 % 64 %
Tax equivalent adjustment $ 2,233 $ 2,261 $ 2,321 $ 2,263 $ 2,152
Net unrealized gain on available for sale securities $ 278,616 $ 263,199 $ 201,340 $ 200,203 $ 255,421
 
Gain (loss) on mortgage servicing rights, net of economic hedge:
Gain (loss) on mortgage hedge derivative contracts $ 4,048 $ 1,224 $ (2,419 ) $ (7,392 ) $ 4,676
Gain (loss) on mortgage trading securities       17,788         9,921         (3,518 )       (11,117 )       3,369  
Gain (loss) on economic hedge of mortgage servicing rights 21,836 11,145 (5,937 ) (18,509 ) 8,045
Gain (loss) on changes in fair value of mortgage servicing rights       (24,822 )       (13,493 )       3,129         25,111         (15,924 )

Gain (loss) on changes in fair value of mortgage servicing rights, net of economic hedges
    $ (2,986 )     $ (2,348 )     $ (2,808 )     $ 6,602       $ (7,879 )
Net interest revenue on mortgage trading securities     $ 5,036       $ 5,121       $ 3,058       $ 4,232       $ 5,710  
 
Reconciliation of non-GAAP measures:
(A) Tangible common equity ratio:
Total shareholders' equity $ 2,732,592 $ 2,667,717 $ 2,576,135 $ 2,521,726 $ 2,503,650
Less: Goodwill and intangible assets, net       (346,716 )       (347,611 )       (348,507 )       (349,404 )       (350,769 )
Tangible common equity     $ 2,385,876       $ 2,320,106       $ 2,227,628       $ 2,172,322       $ 2,152,881  
 
Total assets $ 25,066,265 $ 24,238,182 $ 23,701,023 $ 23,941,603 $ 24,385,952
Less: Goodwill and intangible assets, net       (346,716 )       (347,611 )

 
    (348,507 )       (349,404 )       (350,769 )
      $ 24,719,549       $ 23,890,571       $ 23,352,516       $ 23,592,199       $ 24,035,183  
Tangible common equity ratio 9.65 % 9.71 % 9.54 % 9.21 % 8.96 %
 
(B) Tier 1 common equity ratio:
Tier 1 capital $ 2,248,743 $ 2,188,199 $ 2,129,998 $ 2,076,525 $ 2,027,226
Less: Non-controlling interest       (34,958 )       (24,457 )       (21,555 )       (22,152 )       (20,338 )
Tier 1 common equity     $ 2,213,785       $ 2,163,742       $ 2,108,443       $ 2,054,373       $ 2,006,888  
 
Risk weighted assets $ 17,106,533 $ 16,452,305 $ 16,416,387 $ 16,368,976 $ 16,484,702
 
Tier 1 common equity ratio 12.94 % 13.15 % 12.84 % 12.55 % 12.17 %
               
QUARTERLY EARNINGS TRENDS - UNAUDITED
BOK FINANCIAL CORPORATION
(In thousands, except ratio and per share data)
    Quarter Ended
September 30, June 30, March 31, December 31, September 30,
2011 2011 2011 2010 2010
 
Interest revenue $ 205,749 $ 205,717 $ 202,089 $ 197,148 $ 216,967
Interest expense       30,365         31,716         31,450         33,498         36,252  
Net interest revenue 175,384 174,001 170,639 163,650 180,715
Provision for credit losses       -         2,700         6,250         6,999         20,000  

Net interest revenue after provision for credit losses
175,384 171,301 164,389 156,651 160,715
 
Other operating revenue
Brokerage and trading revenue 29,451 23,725 25,376 28,610 27,072
Transaction card revenue 31,328 31,024 28,445 29,500 28,852
Trust fees and commissions 17,853 19,150 18,422 18,145 16,774
Deposit service charges and fees 24,614 23,857 22,480 23,732 24,290
Mortgage banking revenue 29,493 19,356 17,356 25,158 29,236
Bank-owned life insurance 2,761 2,872 2,863 3,182 3,004
Other revenue       10,535         7,842         8,332         7,648         7,708  
Total fees and commissions 146,035 127,826 123,274 135,975 136,936
Gain (loss) on other assets, net 712 3,344 (68 ) 15 (1,331 )
Gain (loss) on derivatives, net 4,048 1,225 (2,413 ) (7,286 ) 4,626
Gain (loss) on mortgage trading securities 17,788 9,921 (3,518 ) (11,117 ) 3,369
Gain on available for sale securities, net 16,694 5,468 4,902 953 8,384
Total other-than-temporary impairment losses (9,467 ) (74 ) - (4,768 ) (4,525 )

Portion of loss recognized in (reclassified from) other comprehensive income
      (1,833 )       (4,750 )       (4,599 )       (1,859 )       (9,786 )
Net impairment losses recognized in earnings       (11,300 )       (4,824 )       (4,599 )       (6,627 )       (14,311 )
Total other operating revenue 173,977 142,960 117,578 111,913 137,673
 
Other operating expense
Personnel 103,260 105,603 99,994 106,770 101,216
Business promotion 5,280 4,777 4,624 4,377 4,426
Contribution to BOKF Charitable Foundation 4,000 - - - -
Professional fees and services 7,418 6,258 7,458 9,527 7,621
Net occupancy and equipment 16,627 15,554 15,604 16,331 16,436
Insurance 2,206 4,771 6,186 6,139 6,052
Data processing and communications 24,446 24,428 22,503 23,902 21,601
Printing, postage and supplies 3,780 3,586 3,082 3,170 3,648

Net losses and operating expenses of repossessed assets
5,939 5,859 6,015 6,966 7,230
Amortization of intangible assets 896 896 896 1,365 1,324
Mortgage banking costs 9,349 8,968 6,471 11,999 9,093
Change in fair value of mortgage servicing rights 24,822 13,493 (3,129 ) (25,111 ) 15,924
Visa retrospective responsibility obligation - - - (1,103 ) 1,103
Other expense       12,873         9,016         8,745         14,029         9,491  
Total other operating expense 220,896 203,209 178,449 178,361 205,165
 
Net income before taxes 128,465 111,052 103,518 90,203 93,223
Federal and state income taxes       43,006         39,357         38,752         31,097         29,935  
 
Net income 85,459 71,695 64,766 59,106 63,288
Net income (loss) attributable to non-controlling interest       358         2,688         (8 )       274         (979 )
 
Net income attributable to BOK Financial Corporation     $ 85,101       $ 69,007       $ 64,774       $ 58,832       $ 64,267  
 
Average shares outstanding:
Basic 67,827,591 67,898,483 67,901,722 67,685,434 67,625,378
Diluted 68,037,419 68,169,485 68,176,527 67,888,950 67,765,344
 
Net income per share:
Basic $ 1.24 $ 1.01 $ 0.95 $ 0.86 $ 0.94
Diluted $ 1.24 $ 1.00 $ 0.94 $ 0.86 $ 0.94
               
LOANS BY PRINCIPAL MARKET AREA - UNAUDITED
BOK FINANCIAL CORPORATION
(In thousands)
    Quarter Ended
September 30, June 30, March 31, December 31, September 30,
2011 2011 2011 2010 2010
 
Oklahoma:
Commercial $ 2,807,979 $ 2,594,502 $ 2,618,045 $ 2,581,082 $ 2,662,347
Commercial real estate 624,990 619,201 661,254 726,409 748,501
Residential mortgage 1,366,953 1,309,110 1,219,237 1,253,466 1,293,334
Consumer       248,851       267,550       291,412       336,492       349,720
Total Oklahoma       5,048,773       4,790,363       4,789,948       4,897,449       5,053,902
 
Texas:
Commercial 2,069,117 2,003,847 1,916,270 1,888,635 1,876,994
Commercial real estate 741,984 711,906 687,817 686,956 715,859
Residential mortgage 273,025 282,934 283,925 297,027 309,815
Consumer       133,286       140,044       141,199       146,986       151,434
Total Texas       3,217,412       3,138,731       3,029,211       3,019,604       3,054,102
 
New Mexico:
Commercial 269,690 280,306 262,597 279,432 289,368
Commercial real estate 314,701 311,565 326,104 314,781 314,957
Residential mortgage 93,444 95,021 90,466 88,392 87,851
Consumer       18,142       18,536       19,242       19,583       20,153
Total New Mexico       695,977       705,428       698,409       702,188       712,329
 
Arkansas:
Commercial 89,262 74,677 75,889 84,775 91,752
Commercial real estate 124,393 121,286 124,875 116,989 117,137
Residential mortgage 14,428 13,939 14,114 13,155 14,937
Consumer       44,163       52,439       61,746       72,787       84,869
Total Arkansas       272,246       262,341       276,624       287,706       308,695
 
Colorado:
Commercial 508,222 515,829 514,100 470,500 457,421
Commercial real estate 188,659 167,414 172,416 197,180 203,866
Residential mortgage 65,327 66,985 67,975 72,310 75,152
Consumer       22,024       19,507       20,145       21,409       15,402
Total Colorado       784,232       769,735       774,636       761,399       751,841
 
Arizona:
Commercial 283,867 291,515 251,390 231,117 234,739
Commercial real estate 222,249 205,269 213,442 201,018 188,943
Residential mortgage 85,243 86,415 89,384 89,245 85,184
Consumer       6,625       6,772       5,266       3,445       3,061
Total Arizona       597,984       589,971       559,482       524,825       511,927
 
Kansas / Missouri:
Commercial 447,552 417,920 409,966 398,455 359,387
Commercial real estate 42,926 47,074 37,074 34,017 33,859
Residential mortgage 13,476 13,593 12,220 14,653 17,635
Consumer       3,991       2,388       2,265       2,740       2,167
Total Kansas / Missouri       507,945       480,975       461,525       449,865       413,048
 
TOTAL BOK FINANCIAL     $ 11,124,569     $ 10,737,544     $ 10,589,835     $ 10,643,036     $ 10,805,844
               
DEPOSITS BY PRINCIPAL MARKET AREA - UNAUDITED
BOK FINANCIAL CORPORATION
(In thousands)
    Quarter Ended
September 30, June 30, March 31, December 31, September 30,
2011 2011 2011 2010 2010
 
Oklahoma:
Demand $ 2,953,410 $ 2,486,671 $ 2,420,210 $ 2,271,375 $ 2,238,303
Interest-bearing:
Transaction 6,038,770 5,916,784 6,068,304 6,061,626 5,609,811
Savings 122,829 120,278 120,020 106,411 103,524
Time       1,489,486       1,462,137       1,465,506       1,373,307       1,497,344
Total interest-bearing       7,651,085       7,499,199       7,653,830       7,541,344       7,210,679
Total Oklahoma       10,604,495       9,985,870       10,074,040       9,812,719       9,448,982
 
Texas:
Demand 1,710,315 1,528,772 1,405,892 1,389,876 1,238,103
Interest-bearing:
Transaction 1,820,116 1,741,176 1,977,850 1,791,810 1,786,979
Savings 42,272 42,185 40,313 36,429 35,614
Time       938,200       992,366       1,015,754       966,116       1,031,877
Total interest-bearing       2,800,588       2,775,727       3,033,917       2,794,355       2,854,470
Total Texas       4,510,903       4,304,499       4,439,809       4,184,231       4,092,573
 
New Mexico:
Demand 325,612 299,305 282,708 270,916 262,567
Interest-bearing:
Transaction 480,816 483,026 498,355 530,244 535,012
Savings 26,127 24,613 24,455 28,342 27,906
Time       431,436       449,618       453,580       450,177       469,493
Total interest-bearing       938,379       957,257       976,390       1,008,763       1,032,411
Total New Mexico       1,263,991       1,256,562       1,259,098       1,279,679       1,294,978
 
Arkansas:
Demand 21,809 17,452 15,144 15,310 17,604
Interest-bearing:
Transaction 181,486 138,954 130,613 129,580 137,797
Savings 1,735 1,673 1,514 1,266 1,522
Time       74,163       82,112       94,889       100,998       116,536
Total interest-bearing       257,384       222,739       227,016       231,844       255,855
Total Arkansas       279,193       240,191       242,160       247,154       273,459
 
Colorado:
Demand 217,394 196,915 197,579 157,742 156,685
Interest-bearing:
Transaction 520,743 509,738 528,948 522,207 501,405
Savings 22,599 21,406 21,655 20,310 19,681
Time       547,481       563,642       546,586       502,889       495,899
Total interest-bearing       1,090,823       1,094,786       1,097,189       1,045,406       1,016,985
Total Colorado       1,308,217       1,291,701       1,294,768       1,203,148       1,173,670
 
Arizona:
Demand 138,971 150,194 106,880 74,887 97,384
Interest-bearing:
Transaction 101,933 107,961 102,089 95,890 94,108
Savings 1,366 1,364 984 809 812
Time       40,007       44,619       50,060       52,227       59,678
Total interest-bearing       143,306       153,944       153,133       148,926       154,598
Total Arizona       282,277       304,138       260,013       223,813       251,982
 
Kansas / Missouri:
Demand 46,773 46,668 28,774 40,658 35,869
Interest-bearing:
Transaction 108,973 115,684 222,705 124,005 180,273
Savings 503 358 323 200 132
Time       33,697       40,206       51,236       63,454       70,673
Total interest-bearing       143,173       156,248       274,264       187,659       251,078
Total Kansas / Missouri       189,946       202,916       303,038       228,317       286,947
 
TOTAL BOK FINANCIAL     $ 18,439,022     $ 17,585,877     $ 17,872,926     $ 17,179,061     $ 16,822,591
               
NET INTEREST MARGIN TREND - UNAUDITED
BOK FINANCIAL CORPORATION
    Quarter Ended
September 30, June 30, March 31, December 31, September 30,
2011 2011 2011 2010 2010
TAX-EQUIVALENT ASSETS YIELDS
Funds sold and resell agreements 0.16 % 0.14 % 0.08 % 0.13 % 0.08 %
Trading securities 2.85 % 2.92 % 3.84 % 4.06 % 3.26 %
Investment securities:
Taxable (A) 5.63 % 6.13 % 6.15 % 6.01 % 5.72 %
Tax-exempt (A)     4.94 %     4.82 %     4.88 %     4.88 %     4.78 %
Total investment securities (A)     5.35 %     5.49 %     5.46 %     5.39 %     5.20 %
Available for sale securities:
Taxable (A) 2.82 % 3.02 % 3.15 % 2.61 % 3.25 %
Tax-exempt (A)     4.92 %     5.12 %     5.68 %     5.42 %     5.13 %
Total available for sale securities (A)     2.83 %     3.04 %     3.17 %     2.63 %     3.27 %
Mortgage trading securities 3.66 % 4.42 % 3.74 % 3.43 % 4.14 %
Residential mortgage loans held for sale 4.09 % 4.48 % 4.33 % 3.85 % 4.24 %
Loans 4.71 % 4.69 % 4.75 % 4.76 % 4.87 %
Less allowance for loan losses     -       -       -       -       -  
Loans, net of allowance 4.84 % 4.82 % 4.89 % 4.90 % 5.01 %
Total tax-equivalent yield on earning assets (A) 3.91 % 4.01 % 4.10 % 3.86 % 4.22 %
COST OF INTEREST-BEARING LIABILITIES
Interest-bearing deposits:
Interest-bearing transaction 0.23 % 0.27 % 0.32 % 0.37 % 0.45 %
Savings 0.34 % 0.39 % 0.37 % 0.35 % 0.39 %
Time     1.84 %     1.86 %     1.82 %     1.78 %     1.80 %
Total interest-bearing deposits 0.68 % 0.71 % 0.72 % 0.76 % 0.85 %
Funds purchased 0.05 % 0.09 % 0.16 % 0.25 % 0.19 %
Repurchase agreements 0.17 % 0.20 % 0.40 % 0.49 % 0.52 %
Other borrowings 5.26 % 4.76 % 1.31 % 0.37 % 0.36 %
Subordinated debt     5.60 %     5.57 %     5.67 %     5.64 %     5.64 %
Total cost of interest-bearing liabilities     0.76 %     0.81 %     0.80 %     0.81 %     0.86 %
Tax-equivalent net interest revenue spread 3.15 % 3.20 % 3.30 % 3.05 % 3.36 %
Effect of noninterest-bearing funding sources and other     0.19 %     0.20 %     0.17 %     0.16 %     0.16 %
Tax-equivalent net interest margin     3.34 %     3.40 %     3.47 %     3.21 %     3.52 %
 
(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
September 30, June 30, March 31, December 31, September 30,
2011 2011 2011 2010 2010
 
Nonperforming assets:
Nonaccruing loans:
Commercial $ 83,736 $ 53,365 $ 57,449 $ 38,455 $ 49,361
Commercial real estate 110,048 110,363 125,504 150,366 177,709
Residential mortgage 31,731 31,693 37,824 37,426 38,898
Consumer       3,960         4,749         5,185         4,567         2,784  
Total nonaccruing loans 229,475 200,170 225,962 230,814 268,752
Renegotiated loans (A) 30,477 22,261 21,705 22,261 25,252
Real estate and other repossessed assets       127,943         129,026         131,420         141,394         126,859  
Total nonperforming assets     $ 387,895       $ 351,457       $ 379,087       $ 394,469       $ 420,863  
 
Nonaccruing loans by principal market:
Oklahoma $ 73,794 $ 41,411 $ 49,585 $ 60,805 $ 72,264
Texas 29,783 32,385 34,404 33,157 36,979
New Mexico 17,242 17,244 17,510 19,283 23,792
Arkansas 26,831 24,842 29,769 7,914 9,990
Colorado 36,854 37,472 40,629 49,416 55,631
Arizona 44,929 43,307 54,065 60,239 70,038
Kansas / Missouri       42         3,509         -         -         58  
Total nonaccruing loans     $ 229,475       $ 200,170       $ 225,962       $ 230,814       $ 268,752  
 
Nonaccruing loans by loan portfolio sector:
Commercial:
Energy $ 3,900 $ 345 $ 415 $ 465 $ 8,189
Manufacturing 27,691 4,366 4,545 2,116 2,454
Wholesale / retail 27,088 25,138 30,411 8,486 5,584
Integrated food services - - 6 13 58
Services 18,181 16,254 15,720 19,262 23,925
Healthcare 5,715 5,962 2,574 3,534 2,608
Other commercial and industrial       1,161         1,300         3,778         4,579         6,543  
Total commercial       83,736         53,365         57,449         38,455         49,361  
Commercial real estate:
Construction and land development 72,207 76,265 90,707 99,579 116,252
Retail 6,492 4,642 5,276 4,978 8,041
Office 11,967 11,473 14,628 19,654 24,942
Multifamily 4,036 4,717 1,900 6,725 6,924
Industrial - - - 4,087 4,151
Other commercial real estate       15,346         13,266         12,993         15,343         17,399  
Total commercial real estate       110,048         110,363         125,504         150,366         177,709  
Residential mortgage:
Permanent mortgage 27,486 27,991 33,466 32,111 36,654
Home equity       4,245         3,702         4,358         5,315         2,244  
Total residential mortgage       31,731         31,693         37,824         37,426         38,898  
Consumer       3,960         4,749         5,185         4,567         2,784  
Total nonaccruing loans     $ 229,475       $ 200,170       $ 225,962       $ 230,814       $ 268,752  
- - - - -
Performing loans 90 days past due (B) $ 1,401 $ 2,341 $ 8,043 $ 7,966 $ 5,579
 
Gross charge-offs $ 14,023 $ 12,774 $ 15,232 $ 20,152 $ 25,340
Recoveries       3,869         4,256         4,914         5,939         5,205  
Net charge-offs     $ 10,154       $ 8,518       $ 10,318       $ 14,213       $ 20,135  
 
Provision for credit losses $ - $ 2,700 $ 6,250 $ 6,999 $ 20,000
 
Allowance for loan losses to period end loans 2.44 % 2.67 % 2.73 % 2.75 % 2.77 %
Combined allowance for credit losses to period end loans 2.58 % 2.77 % 2.86 % 2.89 % 2.91 %
Nonperforming assets to period end loans

and repossessed assets
3.45 % 3.23 % 3.54 % 3.66 % 3.85 %
Net charge-offs (annualized) to average loans 0.37 % 0.32 % 0.39 % 0.53 % 0.74 %
Allowance for loan losses to nonaccruing loans 118.29 % 143.18 % 128.14 % 126.93 % 111.31 %
Combined allowance for credit losses to nonaccruing loans 125.16 % 148.55 % 134.17 % 133.11 % 117.01 %
 
(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. $ 26,670 $ 18,716 $ 18,304 $ 18,551 $ 21,706
 
 
 
 
(B) Excludes residential mortgage loans guaranteed agencies of the U.S. government
 

Copyright Business Wire 2010

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