BOK Financial Corporation
(NASD:
BOKF) -
CEO Commentary
Stacy Kymes, president and chief executive officer,
stated, “The third quarter was another very strong quarter as we
sustain our momentum around top-line revenue growth. I am proud to
see the hard work of our team show up in consistent loan growth,
net interest margin improvement and non-interest revenue growth
while our efficiency ratio has moved well below 60 percent.
Although our asset quality trends remain unsustainably good, we
added to our loan loss reserves this quarter in recognition of the
loan growth and less certain economic forecast. While the
longer-term economic outlook is less certain, we remain optimistic
about our ability to grow earnings from current levels in the
near-term."
Third Quarter 2022 Financial Highlights(Unless
indicated otherwise, all comparisons are to the prior quarter)
- Net income was
$156.5 million or $2.32 per diluted share for the third quarter of
2022 and $132.8 million or $1.96 per diluted share for the second
quarter of 2022.
- Net interest revenue totaled $316.3
million, an increase of $42.3 million. Net interest margin was 3.24
percent compared to 2.76 percent. In response to rising inflation,
the Federal Reserve increased the federal funds rate another 150
basis points in the third quarter to a total of 300 basis points
since the beginning of 2022. The resulting impact on market
interest rates has increased net interest margin.
- Fees and commissions revenue
increased $19.3 million to $192.6 million. Brokerage and trading
revenue increased $17.0 million, largely due to higher margins on
trading activity driven by favorable market conditions and
increased market volatility. Additionally, the third quarter was a
record quarter for investment banking revenue.
- The net cost of the changes in fair
value of mortgage servicing rights and related economic hedges was
$4.8 million for the third quarter of 2022 compared to a net
benefit of $1.9 million for the second quarter of 2022, due to
increased market volatility in the third quarter.
- Operating expense increased $21.1
million to $294.8 million. Personnel expense increased $15.4
million, largely driven by higher incentive compensation expense.
Non-personnel expense increased $5.7 million, primarily related to
project-related professional fees and seasonal occupancy
costs.
- Period-end loans increased $499
million to $21.8 billion at September 30, 2022. Of this increase,
commercial real estate loans grew $368 million, while loans to
individuals increased $125 million. In addition, unfunded loan
commitments grew by $1.1 billion. Average outstanding loan balances
were $21.6 billion, a $542 million increase.
- A $15.0 million provision for
expected credit losses was recorded in the third quarter of 2022,
primarily due to loan growth and increased uncertainty in the
economic outlook, partially offset by improving credit quality
metrics. No provision for expected credit losses was necessary for
the second quarter of 2022. The combined allowance for credit
losses totaled $298 million or 1.37 percent of outstanding loans at
September 30, 2022. The combined allowance for credit losses was
$283 million or 1.33 percent of outstanding loans at June 30,
2022.
- Average deposits decreased $1.5
billion to $37.0 billion and period-end deposits decreased $2.2
billion to $36.4 billion, consistent with industry trends as
customers redeploy resources following the savings trend during the
height of the pandemic. Average interest-bearing deposits decreased
$1.4 billion and average demand deposits were reduced by $97
million.
- The company's common equity Tier 1
capital ratio was 11.80 percent at September 30, 2022. In addition,
the company's Tier 1 capital ratio was 11.82 percent, total capital
ratio was 12.81 percent, and leverage ratio was 9.76 percent at
September 30, 2022. At June 30, 2022, the company's common
equity Tier 1 capital ratio was 11.61 percent, Tier 1 capital ratio
was 11.63 percent, total capital ratio was 12.59 percent, and
leverage ratio was 9.12 percent.
- The company repurchased 548,034
shares of common stock at an average price of $91.20 a share in the
third quarter of 2022.
Third Quarter 2022 Segment
Highlights
- Commercial Banking
contributed $132.9 million to net income in the third quarter of
2022, an increase of $28.1 million. Combined net interest revenue
and fee revenue increased $38.6 million due to loan growth and
increased spreads on deposits sold to the Funds Management unit.
Net loans recovered were $976 thousand less than the prior quarter.
Personnel expense increased $2.8 million, driven by incentive
compensation costs associated with growth in loans. Linked quarter
performance also improved due to a $5.8 million write-down of a
repossessed equity interest in a midstream energy entity in the
prior quarter. Average loans increased $568 million or 3 percent to
$17.9 billion. Average deposits decreased $967 million or 5 percent
to $18.0 billion.
- Consumer Banking contributed $3.0 million to net income in the
third quarter of 2022, an increase of $1.7 million over the prior
quarter. The net cost of the changes in fair value of mortgage
servicing rights and related economic hedges was $4.8 million for
the third quarter of 2022 compared to a net benefit of $1.9 million
for the second quarter of 2022. Combined net interest revenue and
fee revenue increased $10.3 million, primarily due to an increase
in the spread on deposits sold to our Funds Management unit. Fees
and commissions revenue and operating expense were consistent with
the prior quarter. Both average loans and average deposits were
also relatively consistent with the previous quarter.
- Wealth Management contributed $41.8 million to net income in
the third quarter of 2022, an increase of $14.5 million over the
second quarter of 2022. Our diverse set of investment-focused
businesses, which include trading in fixed income securities and
other financial instruments and providing wealth management
services to institutional and private wealth clients, produced
total net interest and fee revenues of $146.7 million, an increase
of $22.2 million. Total revenue from trading activities increased
$5.0 million, primarily due to higher margins on residential
mortgage-backed securities trading activity. Investment banking
revenue grew $3.2 million due to increased underwriting fees and
financial advisory fees. Other revenue increased $8.3 million,
largely due to higher derivative margin use fees. Operating expense
increased $2.8 million, mainly due to increased volume-driven
incentive compensation costs. Average loans were consistent with
the prior quarter. Average deposits decreased $484 million or 6
percent to $8.0 billion. Assets under management were $95.4
billion, a decrease of $580 million.
Net Interest Revenue
Net interest revenue was $316.3 million for the third quarter of
2022 compared to $274.0 million for the second quarter of 2022. Net
interest margin was 3.24 percent compared to 2.76 percent. In
response to rising inflation, the Federal Reserve increased the
federal funds rate 150 basis points in the third quarter bringing
the year-to-date total rate increases to 300 basis points. The
resulting impact on market interest rates has increased net
interest margin as our earning assets, led by our significant
percentage of variable-rate commercial loans, reprice at a higher
rate and faster pace than our interest-bearing liabilities.
Average earning assets decreased $534 million. Average trading
securities decreased $989 million in response to lower origination
volumes in the residential mortgage industry driven by increases in
interest rates. Average loan balances increased $542 million,
largely due to growth in commercial real estate loans and loans to
individuals. Average available for sale securities decreased $2.0
billion while investment securities increased $2.0 billion. Late in
the second quarter, $2.4 billion in U.S. government agency
mortgage-backed securities were transferred from available for sale
to investment securities to limit the effect of future rate
increases on the tangible common equity ratio. Average interest
bearing cash and cash equivalents decreased $95 million. Average
interest-bearing deposits decreased $2.2 billion as customers
redeploy resources following the height of the pandemic. Average
funds purchased and repurchase agreements decreased $423 million
while other borrowings increased $228 million.
The yield on average earning assets was 3.71 percent, up 75
basis points. The loan portfolio yield increased 97 basis points to
4.89 percent while the yield on trading securities was up 72 basis
points to 2.72 percent. The yield on the available for sale
securities portfolio increased 37 basis points to 2.21 percent. The
yield on investment securities decreased 93 basis points due to the
transfer of securities from the available for sale portfolio to the
investment portfolio. The yield on interest-bearing cash and cash
equivalents increased 104 basis points.
Funding costs were 0.76 percent, a 45 basis point increase. The
cost of interest-bearing deposits increased 39 basis points to 0.63
percent. The cost of other borrowings was up 132 basis points to
2.33 percent while the cost of funds purchased and repurchase
agreements increased 19 basis points to 0.72 percent. The benefit
to net interest margin from assets funded by non-interest
liabilities was 29 basis points, an increase of 18 basis
points.
Operating Revenue
Fees and commissions revenue totaled $192.6 million for the
third quarter of 2022, up $19.3 million, led by a $17.0 million
increase in brokerage and trading revenue. Trading revenue
increased $14.5 million, largely due to higher margins on
residential mortgage-backed securities trading activity driven by
favorable market conditions and increased market volatility. Total
investment banking revenue increased $2.4 million, primarily due to
growth in the size and number of municipal bond transactions.
Mortgage banking revenue remained consistent with the prior
quarter with growth in mortgage servicing revenue offsetting a
reduction in mortgage production revenue. Two acquisitions of
mortgage servicing rights at the end of the second quarter led to
an increase in mortgage servicing revenue of $1.8 million. Mortgage
production revenue decreased $1.9 million as rising mortgage
interest rates and inventory constraints continue to place pressure
on mortgage loan originations. Mortgage production volume decreased
$76.0 million to $230.0 million. Refinance activity as percentage
of total production declined to 10 percent, the lowest in recent
history.
All other fee revenue was relatively consistent with the prior
quarter, increasing $2.4 million in total.
Other gains and losses, net, increased $8.6 million, primarily
driven by a write-down of a repossessed equity interest in a
midstream entity in the prior quarter combined with a change in the
value of deferred compensation investments, which are held to
offset the cost of various employee benefit programs.
Operating Expense
Total operating expense was $294.8 million for the third quarter
of 2022, an increase of $21.1 million compared to the second
quarter of 2022.
Personnel expense increased $15.4 million. Deferred compensation
expense increased $6.0 million and share-based incentive
compensation expense increased $4.3 million. These expenses are
influenced by market valuations and forecasted annual results
compared to a peer group, both of which can be volatile. Strong
sales results in our Commercial and Wealth segments led to a $4.9
million increase in cash-based incentive compensation.
Non-personnel expense was $124.4 million, up $5.7 million.
Higher seasonal operating costs on leases led to a $1.8 million
increase in net occupancy and equipment expense while
project-related professional fees led to a $1.6 million increase in
professional fees and services.
Loans, Deposits and Capital
Loans
Outstanding loans were $21.8 billion at September 30, 2022,
growing $499 million over June 30, 2022, due to growth in
commercial real estate loans and loans to individuals. Unfunded
loan commitments also were up $1.1 billion over the second
quarter.
Outstanding commercial loan balances were largely unchanged
compared to the prior quarter. Growth in healthcare and general
business loans were offset by a decrease in services and energy
loan balances.
Healthcare sector loan balances increased $130 million, totaling
$3.8 billion or 18 percent of total loans. Our healthcare sector
loans primarily consist of $3.1 billion of senior housing and care
facilities, including independent living, assisted living and
skilled nursing. Generally, we loan to borrowers with a portfolio
of multiple facilities, which serves to help diversify risks
specific to a single facility.
General business loans increased $61 million to $3.1 billion or
14 percent of total loans. General business loans include $1.8
billion of wholesale/retail loans and $1.3 billion of loans from
other commercial industries.
Services sector loan balances decreased $141 million to $3.3
billion or 15 percent of total loans. Services loans consist of a
large number of loans to a variety of businesses, including Native
American tribal and state and local municipal government entities,
Native American tribal casino operations, foundations and
not-for-profit organizations, educational services and specialty
trade contractors.
Energy loan balances decreased $21 million to $3.4 billion or 15
percent of total loans. The majority of this portfolio is first
lien, senior secured, reserve-based lending to oil and gas
producers, which we believe is the lowest risk form of energy
lending. Approximately 72 percent of committed production loans are
secured by properties primarily producing oil. The remaining 28
percent is secured by properties primarily producing natural gas.
Unfunded energy loan commitments were $3.5 billion at September 30,
2022, an increase of $107 million over June 30, 2022.
Commercial real estate loan balances grew $368 million and
represent 21 percent of total loans. Loans secured by multifamily
residential properties increased $248 million to 1.1 billion. Loans
secured by industrial facilities increased $150 million to $1.1
billion. This growth was partially offset by a $20 million decrease
in construction and land development loans and a $14 million
decrease in loans secured by office buildings.
PPP loan balances decreased $23 million to $20 million, or less
than 1 percent of the total loans balance.
Loans to individuals increased $125 million and represent 17
percent of total loans. Total residential mortgage loans increased
$36 million while personal loans increased $90 million.
Deposits
Period-end deposits totaled $36.4 billion at September 30, 2022,
a $2.2 billion decrease, consistent with industry trends as
customers redeploy cash resources following the savings trend
during the pandemic. Interest-bearing transaction account balances
decreased $1.5 billion while demand deposits decreased $735
million. Period-end Commercial Banking deposits decreased $1.8
billion, Wealth Management deposits decreased $237 million, and
Consumer Banking deposits were largely unchanged. Average deposits
were $37.0 billion at September 30, 2022, a $1.5 billion decrease.
Average interest-bearing transaction account balances decreased
$1.5 billion and average demand deposit account balances decreased
$97 million.
Capital
The company's common equity Tier 1 capital ratio was 11.80
percent at September 30, 2022. In addition, the company's Tier 1
capital ratio was 11.82 percent, total capital ratio was 12.81
percent, and leverage ratio was 9.76 percent at September 30, 2022.
At the beginning of 2020, we elected to delay the regulatory
capital impact of the transition of the allowance for credit losses
from the incurred loss methodology to CECL for two years, followed
by a three-year transition period. This election added 9 basis
points to the company's common equity tier 1 capital ratio at
September 30, 2022. At June 30, 2022, the company's common
equity Tier 1 capital ratio was 11.61 percent, Tier 1 capital ratio
was 11.63 percent, total capital ratio was 12.59 percent, and
leverage ratio was 9.12 percent.
The company's tangible common equity ratio, a non-GAAP measure,
was 7.96 percent at September 30, 2022 and 8.16 percent at
June 30, 2022. The tangible common equity ratio is primarily
based on total shareholders' equity, which includes unrealized
gains and losses on available for sale securities. The company has
elected to exclude unrealized gains and losses from available for
sale securities from its calculation of Tier 1 capital for
regulatory capital purposes, consistent with the treatment under
the previous capital rules.
The company repurchased 548,034 shares of common stock at an
average price of $91.20 a share in the third quarter of 2022. We
view share buybacks opportunistically, but within the context of
maintaining our strong capital position.
Credit Quality
Expected credit losses on assets carried at amortized cost are
recognized over their projected lives based on models that measure
the probability of default and loss given default over a 12-month
reasonable and supportable forecast period. Our models incorporate
base case, downside and upside macroeconomic variables such as real
gross domestic product ("GDP") growth, civilian unemployment rates
and West Texas Intermediate ("WTI") oil prices on a probability
weighted basis.
A $15.0 million provision for credit losses was necessary for
the third quarter of 2022, primarily related to strong loan growth
in loans and unfunded commitments during the quarter. The level of
uncertainty in the economic outlook of our reasonable and
supportable forecast continued to increase, offset by the impact of
a sustained trend of improving credit quality metrics.
Our base case reasonable and supportable forecast assumes
inflation peaks in the third quarter of 2022 and begins to slowly
normalize thereafter. We expect the Russian-Ukraine conflict
remains isolated and conditions improve in the fourth quarter of
2022. GDP is projected to grow by 1.4 percent over the next twelve
months as labor force participants will continue to re-enter the
job market to help meet record job openings. Inflation pressures
cause modest declines in real household income compared to
pre-pandemic levels, resulting in below-trend GDP growth. Our
forecasted civilian unemployment rate is 3.9 percent for the fourth
quarter of 2022, increasing to 4.1 percent by the third quarter of
2023. Our base case also assumes the Federal Reserve increases
federal funds rates resulting in a target range of 4.00 percent to
4.25 percent by December 2022. No additional rate increases in 2023
are anticipated. WTI oil prices are projected to generally follow
the NYMEX forward curve that existed at the end of September 2022,
averaging $81.86 per barrel over the next twelve months.
The probability weighting of our base case reasonable and
supportable forecast decreased to 50 percent in the third quarter
of 2022 compared to 55 percent in the second quarter of 2022 as the
level of uncertainty in economic forecasts continued to increase.
Our downside case, probability weighted at 40 percent, assumes the
Russia-Ukraine conflict persists through the third quarter of 2023,
but does remain isolated. Higher levels of inflation force the
Federal Reserve to adopt a more aggressive monetary policy to
combat the inflationary environment. This results in a federal
funds target range of 4.75 percent to 5.00 percent by September
2023. The United States economy is pushed into a recession, with a
contraction in economic activity and a sharp increase in the
unemployment rate from 4.5 percent in the fourth quarter of 2022 to
6.4 percent in the third quarter of 2023. In this scenario, real
GDP is expected to contract 1.3 percent over the next four
quarters. WTI oil prices are projected to average $72.58 per barrel
over the next twelve months, peaking at $92.87 in the fourth
quarter of 2022 and falling 39 percent over the following three
quarters.
Nonperforming assets totaled $336 million or 1.54 percent of
outstanding loans and repossessed assets at September 30, 2022,
compared to $333 million or 1.56 percent at June 30, 2022.
Nonperforming assets that are not guaranteed by U.S. government
agencies totaled $144 million or 0.67 percent of outstanding loans
and repossessed assets at September 30, 2022, compared to $118
million or 0.56 percent at June 30, 2022.
Nonaccruing loans were $131 million or 0.60 percent of
outstanding loans at September 30, 2022. Nonaccruing commercial
loans totaled $76 million or 0.56 percent of outstanding commercial
loans. Nonaccruing commercial real estate loans totaled $8.0
million or 0.18 percent of outstanding commercial real estate
loans. Nonaccruing loans to individuals totaled $47 million or 1.28
percent of outstanding loans to individuals.
Nonaccruing loans increased $17 million over June 30, 2022,
primarily related to nonaccruing healthcare and services loans,
partially offset by a decrease in nonaccruing energy loans. New
nonaccruing loans identified in the third quarter totaled $54
million, offset by $24 million in payments received, $8.2 million
in foreclosures and $1.8 million in gross charge-offs.
Potential problem loans, which are defined as performing loans
that, based on known information, cause management concern as to
the borrowers' ability to continue to perform, totaled $95 million
at September 30, 2022, down from $131 million at June 30.
Potential problem healthcare loans decreased $27 million and
potential problem services loans decreased $10 million.
At September 30, 2022, the combined allowance for loan losses
and accrual for off-balance sheet credit risk from unfunded loan
commitments was $298 million or 1.37 percent of outstanding loans
and 262 percent of nonaccruing loans. The allowance for loan losses
totaled $242 million or 1.11 percent of outstanding loans and 212
percent of nonaccruing loans. At June 30, 2022, the combined
allowance for loan losses and accrual for off-balance sheet credit
risk from unfunded loan commitments was $283 million or 1.33
percent of outstanding loans and 295 percent of nonaccruing loans.
The allowance for loan losses was $241 million or 1.13 percent of
outstanding loans and 251 percent of nonaccruing loans. Allowance
percentages referenced above omit residential mortgage loans
guaranteed by U.S. government agencies.
Gross charge-offs were $1.8 million for the third quarter
compared to $1.4 million for the second quarter of 2022. Recoveries
totaled $1.3 million for the third quarter of 2022 and $2.2 million
for the prior quarter. Net charge-offs were $457 thousand or 0.01
percent of average loans on an annualized basis in the third
quarter compared to net recoveries of $799 thousand or (0.02)
percent of average loans on an annualized basis in the second
quarter. Net charge-offs were 0.02 percent of average loans over
the last four quarters.
Securities and Derivatives
The fair value of the available for sale securities portfolio
totaled $10.0 billion at September 30, 2022, a $112 million
decrease compared to June 30, 2022. At September 30, 2022, the
available for sale securities portfolio consisted primarily of $4.9
billion of residential mortgage-backed securities fully backed by
U.S. government agencies and $4.0 billion of commercial
mortgage-backed securities fully backed by U.S. government
agencies. At September 30, 2022, the available for sale securities
portfolio had a net unrealized loss of $936 million compared to
$523 million at June 30, 2022.
We hold an inventory of trading securities in support of sales
to a variety of customers. At September 30, 2022, the trading
securities portfolio totaled $2.2 billion compared to $2.9 billion
at June 30, 2022.
The company also maintains a portfolio of residential
mortgage-backed securities issued by U.S. government agencies and
interest rate derivative contracts as an economic hedge of the
changes in the fair value of our mortgage servicing rights. This
portfolio of fair value option securities decreased $4.0 million to
$34 million at September 30, 2022.
Derivative contracts are carried at fair value. At
September 30, 2022, the net fair values of derivative contracts,
before consideration of cash margin, reported as assets under our
customer derivative programs totaled $1.5 billion compared to $2.0
billion at June 30, 2022. The aggregate net fair value of
derivative contracts, before consideration of cash margin, held
under these programs reported as liabilities totaled $1.5 billion
at September 30, 2022 and $2.0 billion at June 30, 2022.
The net cost of the changes in the fair value of mortgage
servicing rights and related economic hedges was $4.8 million
during the third quarter of 2022, including a $16.6 million
increase in the fair value of mortgage servicing rights, $21.4
million decrease in the fair value of securities and derivative
contracts held as an economic hedge, and $29 thousand of related
net interest revenue.
Conference Call and Webcast
The company will hold a conference call at 9 a.m. Central time
on Wednesday, October 26, 2022 to discuss the financial
results with investors. The live audio webcast and
presentation slides will be available on the company’s website at
www.bokf.com. The conference call can also be accessed by dialing
1-201-689-8471. A conference call and webcast replay will also be
available shortly after conclusion of the live call at
www.bokf.com or by dialing 1-877-407-4018 and referencing
conference ID # 13733709.
About BOK Financial Corporation
BOK Financial Corporation is a $44 billion regional financial
services company headquartered in Tulsa, Oklahoma with $95 billion
in assets under management and administration. The company's stock
is publicly traded on NASDAQ under the Global Select market
listings (BOKF). BOK Financial Corporation's holdings include BOKF,
NA; BOK Financial Securities, Inc., BOK Financial Private Wealth,
Inc. and BOK Financial Insurance, Inc. BOKF, NA's holdings include
TransFund, Cavanal Hill Investment Management, Inc. and BOK
Financial Asset Management, Inc. BOKF, NA operates banking
divisions across eight states as: Bank of Albuquerque; Bank of
Oklahoma; Bank of Texas; and BOK Financial in Arizona, Arkansas,
Colorado, Kansas and Missouri; as well as having limited purpose
offices in Nebraska, Wisconsin and Connecticut. Through its
subsidiaries, BOK Financial Corporation provides commercial and
consumer banking, brokerage trading, investment, trust and
insurance services, mortgage origination and servicing, and an
electronic funds transfer network. For more information, visit
www.bokf.com.
The company will continue to evaluate critical assumptions and
estimates, such as the appropriateness of the allowance for credit
losses and asset impairment as of September 30, 2022 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 Corporation, the
financial services industry, the economy generally and the expected
or potential impact of the novel coronavirus (COVID-19) pandemic,
and the related responses of the government, consumers, and others,
on our business, financial condition and results of operations.
Words such as “anticipates,” “believes,” “estimates,” “expects,”
“forecasts,” “plans,” “projects,” “will,” “intends,” variations of
such words and similar expressions are intended to identify such
forward-looking statements. Management judgments relating to and
discussion of the provision and allowance for credit losses,
allowance for uncertain tax positions, accruals for loss
contingencies and valuation of mortgage servicing rights involve
judgments as to expected events and are inherently forward-looking
statements. Assessments that acquisitions and 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 various
forward-looking statements are not guarantees of future performance
and involve certain risks, uncertainties, and assumptions which are
difficult to predict with regard to timing, extent, likelihood and
degree of occurrence. Therefore, actual results and outcomes may
materially differ from what is expected, implied or forecasted in
such forward-looking statements. Internal and external factors that
might cause such a difference include, but are not limited to
changes in government, consumer or business responses to, and
ability to treat or prevent further outbreak of the COVID-19
pandemic, changes in commodity prices, interest rates and interest
rate relationships, inflation, demand for products and services,
the degree of competition by traditional and nontraditional
competitors, changes in banking regulations, tax laws, prices,
levies and assessments, the impact of technological advances, and
trends in customer behavior as well as their ability to repay
loans. BOK Financial Corporation 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 -- UNAUDITEDBOK
FINANCIAL CORPORATION(In thousands)
|
Sep. 30, 2022 |
|
June 30, 2022 |
ASSETS |
|
|
|
Cash and due from banks |
$ |
804,110 |
|
|
$ |
1,313,563 |
|
Interest-bearing cash and cash
equivalents |
|
804,799 |
|
|
|
723,787 |
|
Trading securities |
|
2,194,618 |
|
|
|
2,859,444 |
|
Investment securities, net of
allowance |
|
2,572,360 |
|
|
|
2,637,345 |
|
Available for sale
securities |
|
10,040,894 |
|
|
|
10,152,663 |
|
Fair value option
securities |
|
33,966 |
|
|
|
37,927 |
|
Restricted equity
securities |
|
100,356 |
|
|
|
95,130 |
|
Residential mortgage loans
held for sale |
|
148,121 |
|
|
|
182,726 |
|
Loans: |
|
|
|
Commercial |
|
13,607,686 |
|
|
|
13,578,697 |
|
Commercial real estate |
|
4,473,911 |
|
|
|
4,106,148 |
|
Paycheck protection program |
|
20,233 |
|
|
|
43,140 |
|
Loans to individuals |
|
3,688,627 |
|
|
|
3,563,163 |
|
Total loans |
|
21,790,457 |
|
|
|
21,291,148 |
|
Allowance for loan losses |
|
(241,768 |
) |
|
|
(241,114 |
) |
Loans, net of allowance |
|
21,548,689 |
|
|
|
21,050,034 |
|
Premises and equipment,
net |
|
569,379 |
|
|
|
573,605 |
|
Receivables |
|
200,343 |
|
|
|
176,672 |
|
Goodwill |
|
1,044,749 |
|
|
|
1,044,749 |
|
Intangible assets, net |
|
79,833 |
|
|
|
83,744 |
|
Mortgage servicing rights |
|
283,806 |
|
|
|
270,312 |
|
Real estate and other
repossessed assets, net |
|
29,676 |
|
|
|
22,221 |
|
Derivative contracts, net |
|
1,693,742 |
|
|
|
1,992,977 |
|
Cash surrender value of
bank-owned life insurance |
|
407,722 |
|
|
|
409,937 |
|
Receivable on unsettled
securities sales |
|
49,089 |
|
|
|
60,168 |
|
Other
assets |
|
1,039,194 |
|
|
|
1,690,068 |
|
TOTAL ASSETS |
$ |
43,645,446 |
|
|
$ |
45,377,072 |
|
|
|
|
|
LIABILITIES AND
EQUITY |
|
|
|
Deposits: |
|
|
|
Demand |
$ |
14,985,115 |
|
|
$ |
15,720,296 |
|
Interest-bearing transaction |
|
19,000,023 |
|
|
|
20,544,199 |
|
Savings |
|
971,634 |
|
|
|
984,824 |
|
Time |
|
1,459,143 |
|
|
|
1,369,599 |
|
Total deposits |
|
36,415,915 |
|
|
|
38,618,918 |
|
Funds purchased and repurchase
agreements |
|
626,952 |
|
|
|
677,030 |
|
Other borrowings |
|
234,933 |
|
|
|
35,505 |
|
Subordinated debentures |
|
131,168 |
|
|
|
131,223 |
|
Accrued interest, taxes and
expense |
|
212,342 |
|
|
|
211,419 |
|
Due on unsettled securities
purchases |
|
205,388 |
|
|
|
297,352 |
|
Derivative contracts, net |
|
821,275 |
|
|
|
214,576 |
|
Other
liabilities |
|
483,165 |
|
|
|
449,507 |
|
TOTAL LIABILITIES |
|
39,131,138 |
|
|
|
40,635,530 |
|
Shareholders' equity: |
|
|
|
Capital, surplus and retained earnings |
|
5,414,879 |
|
|
|
5,339,967 |
|
Accumulated other comprehensive loss |
|
(904,945 |
) |
|
|
(602,628 |
) |
TOTAL SHAREHOLDERS' EQUITY |
|
4,509,934 |
|
|
|
4,737,339 |
|
Non-controlling interests |
|
4,374 |
|
|
|
4,203 |
|
TOTAL EQUITY |
|
4,514,308 |
|
|
|
4,741,542 |
|
TOTAL LIABILITIES AND EQUITY |
$ |
43,645,446 |
|
|
$ |
45,377,072 |
|
AVERAGE BALANCE SHEETS -- UNAUDITEDBOK
FINANCIAL CORPORATION(in thousands)
|
Three Months Ended |
|
Sep. 30, 2022 |
|
June 30, 2022 |
|
Mar. 31, 2022 |
|
Dec. 31, 2021 |
|
Sep. 30, 2021 |
ASSETS |
|
|
|
|
|
|
|
|
|
Interest-bearing cash and cash equivalents |
$ |
748,263 |
|
|
$ |
843,619 |
|
|
$ |
1,050,409 |
|
|
$ |
1,208,552 |
|
|
$ |
682,788 |
|
Trading securities |
|
3,178,068 |
|
|
|
4,166,954 |
|
|
|
8,537,390 |
|
|
|
9,260,778 |
|
|
|
7,617,236 |
|
Investment securities, net of
allowance |
|
2,593,989 |
|
|
|
610,983 |
|
|
|
195,198 |
|
|
|
213,188 |
|
|
|
218,117 |
|
Available for sale
securities |
|
10,306,257 |
|
|
|
12,258,072 |
|
|
|
13,092,422 |
|
|
|
13,247,607 |
|
|
|
13,446,095 |
|
Fair value option
securities |
|
36,846 |
|
|
|
54,832 |
|
|
|
75,539 |
|
|
|
46,458 |
|
|
|
56,307 |
|
Restricted equity
securities |
|
173,656 |
|
|
|
167,732 |
|
|
|
164,484 |
|
|
|
137,874 |
|
|
|
245,485 |
|
Residential mortgage loans
held for sale |
|
132,685 |
|
|
|
148,183 |
|
|
|
179,697 |
|
|
|
163,433 |
|
|
|
167,620 |
|
Loans: |
|
|
|
|
|
|
|
|
|
Commercial |
|
13,481,961 |
|
|
|
13,382,176 |
|
|
|
12,677,706 |
|
|
|
12,401,935 |
|
|
|
12,231,230 |
|
Commercial real estate |
|
4,434,650 |
|
|
|
4,061,129 |
|
|
|
4,059,148 |
|
|
|
3,838,336 |
|
|
|
4,218,190 |
|
Paycheck protection program |
|
26,364 |
|
|
|
90,312 |
|
|
|
210,110 |
|
|
|
404,261 |
|
|
|
792,728 |
|
Loans to individuals |
|
3,656,257 |
|
|
|
3,524,097 |
|
|
|
3,516,698 |
|
|
|
3,598,121 |
|
|
|
3,606,460 |
|
Total loans |
|
21,599,232 |
|
|
|
21,057,714 |
|
|
|
20,463,662 |
|
|
|
20,242,653 |
|
|
|
20,848,608 |
|
Allowance for loan losses |
|
(241,136 |
) |
|
|
(246,064 |
) |
|
|
(254,191 |
) |
|
|
(271,794 |
) |
|
|
(306,125 |
) |
Loans, net of allowance |
|
21,358,096 |
|
|
|
20,811,650 |
|
|
|
20,209,471 |
|
|
|
19,970,859 |
|
|
|
20,542,483 |
|
Total earning assets |
|
38,527,860 |
|
|
|
39,062,025 |
|
|
|
43,504,610 |
|
|
|
44,248,749 |
|
|
|
42,976,131 |
|
Cash and due from banks |
|
821,801 |
|
|
|
822,599 |
|
|
|
790,440 |
|
|
|
783,670 |
|
|
|
766,688 |
|
Derivative contracts, net |
|
2,019,905 |
|
|
|
3,051,429 |
|
|
|
2,126,282 |
|
|
|
1,441,869 |
|
|
|
1,501,736 |
|
Cash surrender value of
bank-owned life insurance |
|
410,667 |
|
|
|
408,489 |
|
|
|
406,379 |
|
|
|
404,149 |
|
|
|
401,926 |
|
Receivable on unsettled
securities sales |
|
219,113 |
|
|
|
457,165 |
|
|
|
375,616 |
|
|
|
585,901 |
|
|
|
632,539 |
|
Other
assets |
|
3,119,856 |
|
|
|
3,486,691 |
|
|
|
3,357,747 |
|
|
|
3,139,718 |
|
|
|
3,220,129 |
|
TOTAL ASSETS |
$ |
45,119,202 |
|
|
$ |
47,288,398 |
|
|
$ |
50,561,074 |
|
|
$ |
50,604,056 |
|
|
$ |
49,499,149 |
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY |
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
Demand |
$ |
15,105,305 |
|
|
$ |
15,202,597 |
|
|
$ |
15,062,282 |
|
|
$ |
14,818,841 |
|
|
$ |
13,670,656 |
|
Interest-bearing transaction |
|
19,556,806 |
|
|
|
21,037,294 |
|
|
|
22,763,479 |
|
|
|
22,326,401 |
|
|
|
21,435,736 |
|
Savings |
|
978,596 |
|
|
|
981,493 |
|
|
|
947,407 |
|
|
|
909,131 |
|
|
|
888,011 |
|
Time |
|
1,409,069 |
|
|
|
1,373,036 |
|
|
|
1,589,039 |
|
|
|
1,747,715 |
|
|
|
1,839,983 |
|
Total deposits |
|
37,049,776 |
|
|
|
38,594,420 |
|
|
|
40,362,207 |
|
|
|
39,802,088 |
|
|
|
37,834,386 |
|
Funds purchased and repurchase
agreements |
|
800,759 |
|
|
|
1,224,134 |
|
|
|
2,004,466 |
|
|
|
2,893,128 |
|
|
|
1,448,800 |
|
Other borrowings |
|
1,528,887 |
|
|
|
1,301,358 |
|
|
|
1,148,440 |
|
|
|
880,837 |
|
|
|
2,546,083 |
|
Subordinated debentures |
|
131,199 |
|
|
|
131,219 |
|
|
|
131,228 |
|
|
|
131,224 |
|
|
|
214,654 |
|
Derivative contracts, net |
|
105,221 |
|
|
|
535,574 |
|
|
|
682,435 |
|
|
|
320,757 |
|
|
|
434,334 |
|
Due on unsettled securities
purchases |
|
331,428 |
|
|
|
380,332 |
|
|
|
519,097 |
|
|
|
629,642 |
|
|
|
957,538 |
|
Other
liabilities |
|
396,510 |
|
|
|
389,031 |
|
|
|
565,350 |
|
|
|
578,091 |
|
|
|
619,913 |
|
TOTAL LIABILITIES |
|
40,343,780 |
|
|
|
42,556,068 |
|
|
|
45,413,223 |
|
|
|
45,235,767 |
|
|
|
44,055,708 |
|
Total
equity |
|
4,775,422 |
|
|
|
4,732,330 |
|
|
|
5,147,851 |
|
|
|
5,368,289 |
|
|
|
5,443,441 |
|
TOTAL LIABILITIES AND EQUITY |
$ |
45,119,202 |
|
|
$ |
47,288,398 |
|
|
$ |
50,561,074 |
|
|
$ |
50,604,056 |
|
|
$ |
49,499,149 |
|
STATEMENTS OF EARNINGS -- UNAUDITEDBOK
FINANCIAL CORPORATION(in thousands, except per share
data)
|
Three Months Ended |
|
Nine Months Ended |
|
September 30, |
|
September 30, |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
|
|
Interest revenue |
$ |
363,150 |
|
|
$ |
293,463 |
|
|
$ |
940,496 |
|
|
$ |
887,595 |
|
Interest expense |
|
46,825 |
|
|
|
13,236 |
|
|
|
81,742 |
|
|
|
46,639 |
|
Net interest revenue |
|
316,325 |
|
|
|
280,227 |
|
|
|
858,754 |
|
|
|
840,956 |
|
Provision for credit losses |
|
15,000 |
|
|
|
(23,000 |
) |
|
|
15,000 |
|
|
|
(83,000 |
) |
Net interest revenue after provision for credit
losses |
|
301,325 |
|
|
|
303,227 |
|
|
|
843,754 |
|
|
|
923,956 |
|
Other operating revenue: |
|
|
|
|
|
|
|
Brokerage and trading revenue |
|
61,006 |
|
|
|
47,930 |
|
|
|
77,970 |
|
|
|
98,120 |
|
Transaction card revenue |
|
25,974 |
|
|
|
24,632 |
|
|
|
77,130 |
|
|
|
71,985 |
|
Fiduciary and asset management revenue |
|
50,190 |
|
|
|
45,248 |
|
|
|
146,427 |
|
|
|
131,402 |
|
Deposit service charges and fees |
|
28,703 |
|
|
|
27,429 |
|
|
|
84,207 |
|
|
|
77,499 |
|
Mortgage banking revenue |
|
11,282 |
|
|
|
26,286 |
|
|
|
39,300 |
|
|
|
84,618 |
|
Other revenue |
|
15,479 |
|
|
|
18,896 |
|
|
|
38,608 |
|
|
|
58,364 |
|
Total fees and commissions |
|
192,634 |
|
|
|
190,421 |
|
|
|
463,642 |
|
|
|
521,988 |
|
Other gains (losses), net |
|
979 |
|
|
|
31,091 |
|
|
|
(8,304 |
) |
|
|
57,661 |
|
Loss on derivatives, net |
|
(17,009 |
) |
|
|
(5,760 |
) |
|
|
(77,559 |
) |
|
|
(14,590 |
) |
Loss on fair value option securities, net |
|
(4,368 |
) |
|
|
(120 |
) |
|
|
(17,790 |
) |
|
|
(3,657 |
) |
Change in fair value of mortgage servicing rights |
|
16,570 |
|
|
|
12,945 |
|
|
|
83,165 |
|
|
|
33,778 |
|
Gain on available for sale securities, net |
|
892 |
|
|
|
1,255 |
|
|
|
3,017 |
|
|
|
3,152 |
|
Total other operating revenue |
|
189,698 |
|
|
|
229,832 |
|
|
|
446,171 |
|
|
|
598,332 |
|
Other operating expense: |
|
|
|
|
|
|
|
Personnel |
|
170,348 |
|
|
|
175,863 |
|
|
|
484,499 |
|
|
|
520,908 |
|
Business promotion |
|
6,127 |
|
|
|
4,939 |
|
|
|
18,965 |
|
|
|
9,837 |
|
Charitable contributions to BOKF Foundation |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4,000 |
|
Professional fees and services |
|
14,089 |
|
|
|
12,436 |
|
|
|
37,977 |
|
|
|
36,777 |
|
Net occupancy and equipment |
|
29,296 |
|
|
|
28,395 |
|
|
|
87,640 |
|
|
|
81,690 |
|
Insurance |
|
4,306 |
|
|
|
3,712 |
|
|
|
13,317 |
|
|
|
11,992 |
|
Data processing and communications |
|
41,743 |
|
|
|
38,371 |
|
|
|
122,859 |
|
|
|
112,256 |
|
Printing, postage and supplies |
|
4,349 |
|
|
|
3,558 |
|
|
|
11,967 |
|
|
|
11,283 |
|
Amortization of intangible assets |
|
3,943 |
|
|
|
4,488 |
|
|
|
11,956 |
|
|
|
13,873 |
|
Mortgage banking costs |
|
9,504 |
|
|
|
8,962 |
|
|
|
26,818 |
|
|
|
34,031 |
|
Other expense |
|
11,046 |
|
|
|
10,553 |
|
|
|
30,026 |
|
|
|
41,566 |
|
Total other operating expense |
|
294,751 |
|
|
|
291,277 |
|
|
|
846,024 |
|
|
|
878,213 |
|
|
|
|
|
|
|
|
|
Net income before
taxes |
|
196,272 |
|
|
|
241,782 |
|
|
|
443,901 |
|
|
|
644,075 |
|
Federal
and state income taxes |
|
39,681 |
|
|
|
54,061 |
|
|
|
92,000 |
|
|
|
144,939 |
|
|
|
|
|
|
|
|
|
Net
income |
|
156,591 |
|
|
|
187,721 |
|
|
|
351,901 |
|
|
|
499,136 |
|
Net
income (loss) attributable to non-controlling interests |
|
81 |
|
|
|
(601 |
) |
|
|
57 |
|
|
|
(1,667 |
) |
Net income attributable to BOK Financial Corporation
shareholders |
$ |
156,510 |
|
|
$ |
188,322 |
|
|
$ |
351,844 |
|
|
$ |
500,803 |
|
|
|
|
|
|
|
|
|
Average shares
outstanding: |
|
|
|
|
|
|
|
Basic |
|
67,003,199 |
|
|
|
68,359,125 |
|
|
|
67,409,789 |
|
|
|
68,768,044 |
|
Diluted |
|
67,004,623 |
|
|
|
68,360,871 |
|
|
|
67,411,222 |
|
|
|
68,770,663 |
|
|
|
|
|
|
|
|
|
Net income per
share: |
|
|
|
|
|
|
|
Basic |
$ |
2.32 |
|
|
$ |
2.74 |
|
|
$ |
5.18 |
|
|
$ |
7.23 |
|
Diluted |
$ |
2.32 |
|
|
$ |
2.74 |
|
|
$ |
5.18 |
|
|
$ |
7.23 |
|
FINANCIAL HIGHLIGHTS -- UNAUDITEDBOK
FINANCIAL CORPORATION(in thousands, except ratio and share
data)
|
Three Months Ended |
|
Sep. 30, 2022 |
|
June 30, 2022 |
|
Mar. 31, 2022 |
|
Dec. 31, 2021 |
|
Sep. 30, 2021 |
Capital: |
|
|
|
|
|
|
|
|
|
Period-end shareholders' equity |
$ |
4,509,934 |
|
|
$ |
4,737,339 |
|
|
$ |
4,849,582 |
|
|
$ |
5,363,732 |
|
|
$ |
5,388,973 |
|
Risk weighted assets |
$ |
36,866,994 |
|
|
$ |
36,787,092 |
|
|
$ |
37,160,258 |
|
|
$ |
34,575,277 |
|
|
$ |
33,916,456 |
|
Risk-based capital ratios: |
|
|
|
|
|
|
|
|
|
Common equity tier 1 |
|
11.80 |
% |
|
|
11.61 |
% |
|
|
11.30 |
% |
|
|
12.24 |
% |
|
|
12.26 |
% |
Tier 1 |
|
11.82 |
% |
|
|
11.63 |
% |
|
|
11.31 |
% |
|
|
12.25 |
% |
|
|
12.29 |
% |
Total capital |
|
12.81 |
% |
|
|
12.59 |
% |
|
|
12.25 |
% |
|
|
13.29 |
% |
|
|
13.38 |
% |
Leverage ratio |
|
9.76 |
% |
|
|
9.12 |
% |
|
|
8.47 |
% |
|
|
8.55 |
% |
|
|
8.77 |
% |
Tangible common equity ratio1 |
|
7.96 |
% |
|
|
8.16 |
% |
|
|
8.13 |
% |
|
|
8.61 |
% |
|
|
9.28 |
% |
|
|
|
|
|
|
|
|
|
|
Common
stock: |
|
|
|
|
|
|
|
|
|
Book value per share |
$ |
67.06 |
|
|
$ |
69.87 |
|
|
$ |
71.21 |
|
|
$ |
78.34 |
|
|
$ |
78.56 |
|
Tangible book value per share |
$ |
50.34 |
|
|
$ |
53.22 |
|
|
$ |
54.58 |
|
|
$ |
61.74 |
|
|
$ |
61.93 |
|
Market value per share: |
|
|
|
|
|
|
|
|
|
High |
$ |
95.51 |
|
|
$ |
94.76 |
|
|
$ |
119.59 |
|
|
$ |
110.21 |
|
|
$ |
92.97 |
|
Low |
$ |
69.82 |
|
|
$ |
74.03 |
|
|
$ |
93.76 |
|
|
$ |
89.01 |
|
|
$ |
77.20 |
|
Cash dividends paid |
$ |
35,661 |
|
|
$ |
35,892 |
|
|
$ |
36,093 |
|
|
$ |
36,256 |
|
|
$ |
35,725 |
|
Dividend payout ratio |
|
22.79 |
% |
|
|
27.02 |
% |
|
|
57.76 |
% |
|
|
30.90 |
% |
|
|
18.97 |
% |
Shares outstanding, net |
|
67,254,383 |
|
|
|
67,806,005 |
|
|
|
68,104,043 |
|
|
|
68,467,772 |
|
|
|
68,596,764 |
|
Stock buy-back program: |
|
|
|
|
|
|
|
|
|
Shares repurchased |
|
548,034 |
|
|
|
294,084 |
|
|
|
475,877 |
|
|
|
128,522 |
|
|
|
478,141 |
|
Amount |
$ |
49,980 |
|
|
$ |
24,404 |
|
|
$ |
48,074 |
|
|
$ |
13,426 |
|
|
$ |
40,644 |
|
Average price per share |
$ |
91.20 |
|
|
$ |
82.98 |
|
|
$ |
101.02 |
|
|
$ |
104.46 |
|
|
$ |
85.00 |
|
|
|
|
|
|
|
|
|
|
|
Performance ratios (quarter annualized): |
Return on average assets |
|
1.38 |
% |
|
|
1.13 |
% |
|
|
0.50 |
% |
|
|
0.92 |
% |
|
|
1.51 |
% |
Return on average equity |
|
13.01 |
% |
|
|
11.27 |
% |
|
|
4.93 |
% |
|
|
8.68 |
% |
|
|
13.78 |
% |
Net interest margin |
|
3.24 |
% |
|
|
2.76 |
% |
|
|
2.44 |
% |
|
|
2.52 |
% |
|
|
2.66 |
% |
Efficiency ratio |
|
57.35 |
% |
|
|
60.65 |
% |
|
|
75.07 |
% |
|
|
70.14 |
% |
|
|
61.23 |
% |
|
|
|
|
|
|
|
|
|
|
Reconciliation of non-GAAP measures: |
1 Tangible
common equity ratio: |
|
|
|
|
|
|
|
|
|
Total shareholders' equity |
$ |
4,509,934 |
|
|
$ |
4,737,339 |
|
|
$ |
4,849,582 |
|
|
$ |
5,363,732 |
|
|
$ |
5,388,973 |
|
Less: Goodwill and intangible assets, net |
|
1,124,582 |
|
|
|
1,128,493 |
|
|
|
1,132,510 |
|
|
|
1,136,527 |
|
|
|
1,140,935 |
|
Tangible common equity |
$ |
3,385,352 |
|
|
$ |
3,608,846 |
|
|
$ |
3,717,072 |
|
|
$ |
4,227,205 |
|
|
$ |
4,248,038 |
|
|
|
|
|
|
|
|
|
|
|
Total assets |
$ |
43,645,446 |
|
|
$ |
45,377,072 |
|
|
$ |
46,826,507 |
|
|
$ |
50,249,431 |
|
|
$ |
46,923,409 |
|
Less: Goodwill and intangible assets, net |
|
1,124,582 |
|
|
|
1,128,493 |
|
|
|
1,132,510 |
|
|
|
1,136,527 |
|
|
|
1,140,935 |
|
Tangible assets |
$ |
42,520,864 |
|
|
$ |
44,248,579 |
|
|
$ |
45,693,997 |
|
|
$ |
49,112,904 |
|
|
$ |
45,782,474 |
|
|
|
|
|
|
|
|
|
|
|
Tangible common equity ratio |
|
7.96 |
% |
|
|
8.16 |
% |
|
|
8.13 |
% |
|
|
8.61 |
% |
|
|
9.28 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-provision net
revenue: |
|
|
|
|
|
|
|
|
|
Net income before taxes |
$ |
196,272 |
|
|
$ |
168,980 |
|
|
$ |
78,649 |
|
|
$ |
152,025 |
|
|
$ |
241,782 |
|
Provision for expected credit losses |
|
15,000 |
|
|
|
— |
|
|
|
— |
|
|
|
(17,000 |
) |
|
|
(23,000 |
) |
Net income (loss) attributable to non-controlling interests |
|
81 |
|
|
|
12 |
|
|
|
(36 |
) |
|
|
(129 |
) |
|
|
(601 |
) |
Pre-provision net revenue |
$ |
211,191 |
|
|
$ |
168,968 |
|
|
$ |
78,685 |
|
|
$ |
135,154 |
|
|
$ |
219,383 |
|
|
|
|
|
|
|
|
|
|
|
Other
data: |
|
|
|
|
|
|
|
|
|
Tax equivalent interest |
$ |
2,163 |
|
|
$ |
2,040 |
|
|
$ |
1,973 |
|
|
$ |
2,104 |
|
|
$ |
2,217 |
|
Net unrealized gain (loss) on available for sale securities |
$ |
(935,788 |
) |
|
$ |
(522,812 |
) |
|
$ |
(546,598 |
) |
|
$ |
93,381 |
|
|
$ |
221,487 |
|
|
|
|
|
|
|
|
|
|
|
Mortgage
banking: |
|
|
|
|
|
|
|
|
|
Mortgage production revenue |
$ |
(2,406 |
) |
|
$ |
(504 |
) |
|
$ |
5,055 |
|
|
$ |
10,018 |
|
|
$ |
15,403 |
|
|
|
|
|
|
|
|
|
|
|
Mortgage loans funded for sale |
$ |
260,210 |
|
|
$ |
360,237 |
|
|
$ |
418,866 |
|
|
$ |
568,507 |
|
|
$ |
652,336 |
|
Add: current period-end outstanding commitments |
|
75,779 |
|
|
|
106,004 |
|
|
|
160,260 |
|
|
|
171,412 |
|
|
|
239,066 |
|
Less: prior period end outstanding commitments |
|
106,004 |
|
|
|
160,260 |
|
|
|
171,412 |
|
|
|
239,066 |
|
|
|
276,154 |
|
Total mortgage production volume |
$ |
229,985 |
|
|
$ |
305,981 |
|
|
$ |
407,714 |
|
|
$ |
500,853 |
|
|
$ |
615,248 |
|
|
|
|
|
|
|
|
|
|
|
Mortgage loan refinances to mortgage loans funded for sale |
|
10 |
% |
|
|
19 |
% |
|
|
45 |
% |
|
|
51 |
% |
|
|
48 |
% |
Realized margin on funded mortgage loans |
(0.41 |
)% |
|
|
0.88 |
% |
|
|
1.64 |
% |
|
|
2.34 |
% |
|
|
2.48 |
% |
Production revenue as a percentage of production volume |
(1.05 |
)% |
|
(0.16 |
)% |
|
|
1.24 |
% |
|
|
2.00 |
% |
|
|
2.50 |
% |
|
|
|
|
|
|
|
|
|
|
Mortgage servicing revenue |
$ |
13,688 |
|
|
$ |
11,872 |
|
|
$ |
11,595 |
|
|
$ |
11,260 |
|
|
$ |
10,883 |
|
Average outstanding principal balance of mortgage loans serviced
for others |
|
19,070,221 |
|
|
|
17,336,596 |
|
|
|
16,155,329 |
|
|
|
15,930,480 |
|
|
|
14,899,306 |
|
Average mortgage servicing revenue rates |
|
0.28 |
% |
|
|
0.27 |
% |
|
|
0.29 |
% |
|
|
0.28 |
% |
|
|
0.29 |
% |
|
|
|
|
|
|
|
|
|
|
Gain
(loss) on mortgage servicing rights, net of economic
hedge: |
Gain (loss) on mortgage hedge derivative contracts, net |
$ |
(17,027 |
) |
|
$ |
(13,639 |
) |
|
$ |
(46,694 |
) |
|
$ |
(4,862 |
) |
|
$ |
(5,829 |
) |
Gain (loss) on fair value option securities, net |
|
(4,368 |
) |
|
|
(2,221 |
) |
|
|
(11,201 |
) |
|
|
1,418 |
|
|
|
(120 |
) |
Loss on economic hedge of mortgage servicing rights |
|
(21,395 |
) |
|
|
(15,860 |
) |
|
|
(57,895 |
) |
|
|
(3,444 |
) |
|
|
(5,949 |
) |
Gain on changes in fair value of mortgage servicing rights |
|
16,570 |
|
|
|
17,485 |
|
|
|
49,110 |
|
|
|
7,859 |
|
|
|
12,945 |
|
Gain (loss) on changes in fair value of mortgage servicing rights,
net of economic hedges, included in other operating revenue |
|
(4,825 |
) |
|
|
1,625 |
|
|
|
(8,785 |
) |
|
|
4,415 |
|
|
|
6,996 |
|
Net interest revenue on fair value option securities2 |
|
29 |
|
|
|
275 |
|
|
|
383 |
|
|
|
259 |
|
|
|
286 |
|
Total economic benefit (cost) of changes in the fair value of
mortgage servicing rights, net of economic hedges |
$ |
(4,796 |
) |
|
$ |
1,900 |
|
|
$ |
(8,402 |
) |
|
$ |
4,674 |
|
|
$ |
7,282 |
|
2 Actual interest earned on fair value option
securities less internal transfer-priced cost of funds.
QUARTERLY EARNINGS TREND --
UNAUDITEDBOK FINANCIAL CORPORATION(in
thousands, except ratio and per share data)
|
Three Months Ended |
|
Sep. 30, 2022 |
|
June 30, 2022 |
|
Mar. 31, 2022 |
|
Dec. 31, 2021 |
|
Sep. 30, 2021 |
|
|
|
|
|
|
|
|
|
|
Interest revenue |
$ |
363,150 |
|
|
$ |
294,247 |
|
|
$ |
283,099 |
|
|
$ |
292,334 |
|
|
$ |
293,463 |
|
Interest expense |
|
46,825 |
|
|
|
20,229 |
|
|
|
14,688 |
|
|
|
15,257 |
|
|
|
13,236 |
|
Net interest revenue |
|
316,325 |
|
|
|
274,018 |
|
|
|
268,411 |
|
|
|
277,077 |
|
|
|
280,227 |
|
Provision for credit losses |
|
15,000 |
|
|
|
— |
|
|
|
— |
|
|
|
(17,000 |
) |
|
|
(23,000 |
) |
Net interest revenue after provision for credit
losses |
|
301,325 |
|
|
|
274,018 |
|
|
|
268,411 |
|
|
|
294,077 |
|
|
|
303,227 |
|
Other operating revenue: |
|
|
|
|
|
|
|
|
|
Brokerage and trading revenue |
|
61,006 |
|
|
|
44,043 |
|
|
|
(27,079 |
) |
|
|
14,869 |
|
|
|
47,930 |
|
Transaction card revenue |
|
25,974 |
|
|
|
26,940 |
|
|
|
24,216 |
|
|
|
24,998 |
|
|
|
24,632 |
|
Fiduciary and asset management revenue |
|
50,190 |
|
|
|
49,838 |
|
|
|
46,399 |
|
|
|
46,872 |
|
|
|
45,248 |
|
Deposit service charges and fees |
|
28,703 |
|
|
|
28,500 |
|
|
|
27,004 |
|
|
|
26,718 |
|
|
|
27,429 |
|
Mortgage banking revenue |
|
11,282 |
|
|
|
11,368 |
|
|
|
16,650 |
|
|
|
21,278 |
|
|
|
26,286 |
|
Other revenue |
|
15,479 |
|
|
|
12,684 |
|
|
|
10,445 |
|
|
|
11,586 |
|
|
|
18,896 |
|
Total fees and commissions |
|
192,634 |
|
|
|
173,373 |
|
|
|
97,635 |
|
|
|
146,321 |
|
|
|
190,421 |
|
Other gains (losses), net |
|
979 |
|
|
|
(7,639 |
) |
|
|
(1,644 |
) |
|
|
6,081 |
|
|
|
31,091 |
|
Loss on derivatives, net |
|
(17,009 |
) |
|
|
(13,569 |
) |
|
|
(46,981 |
) |
|
|
(4,788 |
) |
|
|
(5,760 |
) |
Gain (loss) on fair value option securities, net |
|
(4,368 |
) |
|
|
(2,221 |
) |
|
|
(11,201 |
) |
|
|
1,418 |
|
|
|
(120 |
) |
Change in fair value of mortgage servicing rights |
|
16,570 |
|
|
|
17,485 |
|
|
|
49,110 |
|
|
|
7,859 |
|
|
|
12,945 |
|
Gain on available for sale securities, net |
|
892 |
|
|
|
1,188 |
|
|
|
937 |
|
|
|
552 |
|
|
|
1,255 |
|
Total other operating revenue |
|
189,698 |
|
|
|
168,617 |
|
|
|
87,856 |
|
|
|
157,443 |
|
|
|
229,832 |
|
Other operating expense: |
|
|
|
|
|
|
|
|
|
Personnel |
|
170,348 |
|
|
|
154,923 |
|
|
|
159,228 |
|
|
|
174,474 |
|
|
|
175,863 |
|
Business promotion |
|
6,127 |
|
|
|
6,325 |
|
|
|
6,513 |
|
|
|
6,452 |
|
|
|
4,939 |
|
Charitable contributions to BOKF Foundation |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5,000 |
|
|
|
— |
|
Professional fees and services |
|
14,089 |
|
|
|
12,475 |
|
|
|
11,413 |
|
|
|
14,129 |
|
|
|
12,436 |
|
Net occupancy and equipment |
|
29,296 |
|
|
|
27,489 |
|
|
|
30,855 |
|
|
|
26,897 |
|
|
|
28,395 |
|
Insurance |
|
4,306 |
|
|
|
4,728 |
|
|
|
4,283 |
|
|
|
3,889 |
|
|
|
3,712 |
|
Data processing and communications |
|
41,743 |
|
|
|
41,280 |
|
|
|
39,836 |
|
|
|
39,358 |
|
|
|
38,371 |
|
Printing, postage and supplies |
|
4,349 |
|
|
|
3,929 |
|
|
|
3,689 |
|
|
|
2,935 |
|
|
|
3,558 |
|
Amortization of intangible assets |
|
3,943 |
|
|
|
4,049 |
|
|
|
3,964 |
|
|
|
4,438 |
|
|
|
4,488 |
|
Mortgage banking costs |
|
9,504 |
|
|
|
9,437 |
|
|
|
7,877 |
|
|
|
8,667 |
|
|
|
8,962 |
|
Other expense |
|
11,046 |
|
|
|
9,020 |
|
|
|
9,960 |
|
|
|
13,256 |
|
|
|
10,553 |
|
Total other operating expense |
|
294,751 |
|
|
|
273,655 |
|
|
|
277,618 |
|
|
|
299,495 |
|
|
|
291,277 |
|
Net income before
taxes |
|
196,272 |
|
|
|
168,980 |
|
|
|
78,649 |
|
|
|
152,025 |
|
|
|
241,782 |
|
Federal
and state income taxes |
|
39,681 |
|
|
|
36,122 |
|
|
|
16,197 |
|
|
|
34,836 |
|
|
|
54,061 |
|
Net income |
|
156,591 |
|
|
|
132,858 |
|
|
|
62,452 |
|
|
|
117,189 |
|
|
|
187,721 |
|
Net
income (loss) attributable to non-controlling interests |
|
81 |
|
|
|
12 |
|
|
|
(36 |
) |
|
|
(129 |
) |
|
|
(601 |
) |
Net income attributable to BOK Financial Corporation
shareholders |
$ |
156,510 |
|
|
$ |
132,846 |
|
|
$ |
62,488 |
|
|
$ |
117,318 |
|
|
$ |
188,322 |
|
|
|
|
|
|
|
|
|
|
|
Average shares
outstanding: |
|
|
|
|
|
|
|
|
|
Basic |
|
67,003,199 |
|
|
|
67,453,748 |
|
|
|
67,812,400 |
|
|
|
68,069,160 |
|
|
|
68,359,125 |
|
Diluted |
|
67,004,623 |
|
|
|
67,455,172 |
|
|
|
67,813,851 |
|
|
|
68,070,910 |
|
|
|
68,360,871 |
|
Net income per
share: |
|
|
|
|
|
|
|
|
|
Basic |
$ |
2.32 |
|
|
$ |
1.96 |
|
|
$ |
0.91 |
|
|
$ |
1.71 |
|
|
$ |
2.74 |
|
Diluted |
$ |
2.32 |
|
|
$ |
1.96 |
|
|
$ |
0.91 |
|
|
$ |
1.71 |
|
|
$ |
2.74 |
|
LOANS TREND -- UNAUDITEDBOK FINANCIAL
CORPORATION(In thousands)
|
|
Sep. 30, 2022 |
|
June 30, 2022 |
|
Mar. 31, 2022 |
|
Dec. 31, 2021 |
|
Sep. 30, 2021 |
Commercial: |
|
|
|
|
|
|
|
|
|
|
Healthcare |
|
$ |
3,826,623 |
|
$ |
3,696,963 |
|
$ |
3,441,732 |
|
$ |
3,414,940 |
|
$ |
3,347,641 |
Energy |
|
|
3,371,588 |
|
|
3,393,072 |
|
|
3,197,667 |
|
|
3,006,884 |
|
|
2,814,059 |
Services |
|
|
3,280,925 |
|
|
3,421,493 |
|
|
3,351,495 |
|
|
3,367,193 |
|
|
3,323,422 |
General business |
|
|
3,128,550 |
|
|
3,067,169 |
|
|
2,892,295 |
|
|
2,717,448 |
|
|
2,690,018 |
Total commercial |
|
|
13,607,686 |
|
|
13,578,697 |
|
|
12,883,189 |
|
|
12,506,465 |
|
|
12,175,140 |
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate: |
|
|
|
|
|
|
|
|
|
|
Multifamily |
|
|
1,126,700 |
|
|
878,565 |
|
|
867,288 |
|
|
786,404 |
|
|
875,586 |
Industrial |
|
|
1,103,905 |
|
|
953,626 |
|
|
911,928 |
|
|
766,125 |
|
|
890,316 |
Office |
|
|
1,086,615 |
|
|
1,100,115 |
|
|
1,097,516 |
|
|
1,040,963 |
|
|
1,030,755 |
Retail |
|
|
635,021 |
|
|
637,304 |
|
|
667,561 |
|
|
679,917 |
|
|
766,402 |
Residential construction and land development |
|
|
91,690 |
|
|
111,575 |
|
|
120,506 |
|
|
120,016 |
|
|
118,416 |
Other commercial real estate |
|
|
429,980 |
|
|
424,963 |
|
|
436,157 |
|
|
437,900 |
|
|
435,417 |
Total commercial real estate |
|
|
4,473,911 |
|
|
4,106,148 |
|
|
4,100,956 |
|
|
3,831,325 |
|
|
4,116,892 |
|
|
|
|
|
|
|
|
|
|
|
Paycheck protection
program |
|
|
20,233 |
|
|
43,140 |
|
|
137,365 |
|
|
276,341 |
|
|
536,052 |
|
|
|
|
|
|
|
|
|
|
|
Loans to individuals: |
|
|
|
|
|
|
|
|
|
|
Residential mortgage |
|
|
1,851,836 |
|
|
1,784,729 |
|
|
1,723,506 |
|
|
1,722,170 |
|
|
1,747,243 |
Residential mortgages guaranteed by U.S. government agencies |
|
|
262,466 |
|
|
293,838 |
|
|
322,581 |
|
|
354,173 |
|
|
376,986 |
Personal |
|
|
1,574,325 |
|
|
1,484,596 |
|
|
1,506,832 |
|
|
1,515,206 |
|
|
1,395,623 |
Total loans to individuals |
|
|
3,688,627 |
|
|
3,563,163 |
|
|
3,552,919 |
|
|
3,591,549 |
|
|
3,519,852 |
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
21,790,457 |
|
$ |
21,291,148 |
|
$ |
20,674,429 |
|
$ |
20,205,680 |
|
$ |
20,347,936 |
LOANS MANAGED BY PRINCIPAL MARKET AREA --
UNAUDITEDBOK FINANCIAL CORPORATION(in
thousands)
|
Sep. 30, 2022 |
|
June 30, 2022 |
|
Mar. 31, 2022 |
|
Dec. 31, 2021 |
|
Sep. 30, 2021 |
|
|
|
|
|
|
|
|
|
|
Texas: |
|
|
|
|
|
|
|
|
|
Commercial |
$ |
6,632,610 |
|
$ |
6,631,658 |
|
$ |
6,254,883 |
|
$ |
6,068,700 |
|
$ |
5,815,562 |
Commercial real estate |
|
1,448,590 |
|
|
1,339,452 |
|
|
1,345,105 |
|
|
1,253,439 |
|
|
1,383,871 |
Paycheck protection program |
|
12,280 |
|
|
14,040 |
|
|
31,242 |
|
|
81,654 |
|
|
115,623 |
Loans to individuals |
|
970,459 |
|
|
934,856 |
|
|
957,320 |
|
|
942,982 |
|
|
901,121 |
Total Texas |
|
9,063,939 |
|
|
8,920,006 |
|
|
8,588,550 |
|
|
8,346,775 |
|
|
8,216,177 |
|
|
|
|
|
|
|
|
|
|
Oklahoma: |
|
|
|
|
|
|
|
|
|
Commercial |
|
3,104,037 |
|
|
3,125,764 |
|
|
2,883,663 |
|
|
2,633,014 |
|
|
2,590,887 |
Commercial real estate |
|
608,856 |
|
|
576,458 |
|
|
552,310 |
|
|
546,021 |
|
|
552,184 |
Paycheck protection program |
|
4,571 |
|
|
13,329 |
|
|
52,867 |
|
|
69,817 |
|
|
192,474 |
Loans to individuals |
|
2,054,362 |
|
|
1,982,247 |
|
|
1,977,886 |
|
|
2,024,404 |
|
|
2,014,099 |
Total Oklahoma |
|
5,771,826 |
|
|
5,697,798 |
|
|
5,466,726 |
|
|
5,273,256 |
|
|
5,349,644 |
|
|
|
|
|
|
|
|
|
|
Colorado: |
|
|
|
|
|
|
|
|
|
Commercial |
|
2,115,883 |
|
|
2,074,455 |
|
|
1,977,773 |
|
|
1,936,149 |
|
|
1,874,613 |
Commercial real estate |
|
565,057 |
|
|
473,231 |
|
|
480,740 |
|
|
470,937 |
|
|
526,653 |
Paycheck protection program |
|
1,298 |
|
|
8,233 |
|
|
28,584 |
|
|
82,781 |
|
|
140,470 |
Loans to individuals |
|
237,981 |
|
|
234,105 |
|
|
236,125 |
|
|
256,533 |
|
|
249,298 |
Total Colorado |
|
2,920,219 |
|
|
2,790,024 |
|
|
2,723,222 |
|
|
2,746,400 |
|
|
2,791,034 |
|
|
|
|
|
|
|
|
|
|
Arizona: |
|
|
|
|
|
|
|
|
|
Commercial |
|
1,101,917 |
|
|
1,080,228 |
|
|
1,074,551 |
|
|
1,130,798 |
|
|
1,194,801 |
Commercial real estate |
|
850,319 |
|
|
766,767 |
|
|
719,970 |
|
|
674,309 |
|
|
734,174 |
Paycheck protection program |
|
1,083 |
|
|
5,173 |
|
|
11,644 |
|
|
21,594 |
|
|
42,815 |
Loans to individuals |
|
225,981 |
|
|
212,870 |
|
|
190,746 |
|
|
186,528 |
|
|
182,506 |
Total Arizona |
|
2,179,300 |
|
|
2,065,038 |
|
|
1,996,911 |
|
|
2,013,229 |
|
|
2,154,296 |
|
|
|
|
|
|
|
|
|
|
Kansas/Missouri: |
|
|
|
|
|
|
|
|
|
Commercial |
|
307,446 |
|
|
338,337 |
|
|
334,371 |
|
|
338,697 |
|
|
336,414 |
Commercial real estate |
|
466,955 |
|
|
458,157 |
|
|
436,740 |
|
|
382,761 |
|
|
408,001 |
Paycheck protection program |
|
10 |
|
|
573 |
|
|
2,595 |
|
|
4,718 |
|
|
6,920 |
Loans to individuals |
|
125,039 |
|
|
125,584 |
|
|
121,247 |
|
|
110,889 |
|
|
100,920 |
Total Kansas/Missouri |
|
899,450 |
|
|
922,651 |
|
|
894,953 |
|
|
837,065 |
|
|
852,255 |
|
|
|
|
|
|
|
|
|
|
New Mexico: |
|
|
|
|
|
|
|
|
|
Commercial |
|
257,763 |
|
|
252,033 |
|
|
262,533 |
|
|
306,964 |
|
|
287,695 |
Commercial real estate |
|
426,367 |
|
|
431,606 |
|
|
504,632 |
|
|
442,128 |
|
|
437,302 |
Paycheck protection program |
|
991 |
|
|
1,792 |
|
|
9,713 |
|
|
13,510 |
|
|
31,444 |
Loans to individuals |
|
68,095 |
|
|
67,026 |
|
|
63,299 |
|
|
63,930 |
|
|
66,651 |
Total New Mexico |
|
753,216 |
|
|
752,457 |
|
|
840,177 |
|
|
826,532 |
|
|
823,092 |
|
|
|
|
|
|
|
|
|
|
Arkansas: |
|
|
|
|
|
|
|
|
|
Commercial |
|
88,030 |
|
|
76,222 |
|
|
95,415 |
|
|
92,143 |
|
|
75,168 |
Commercial real estate |
|
107,767 |
|
|
60,477 |
|
|
61,459 |
|
|
61,730 |
|
|
74,707 |
Paycheck protection program |
|
— |
|
|
— |
|
|
720 |
|
|
2,267 |
|
|
6,306 |
Loans to individuals |
|
6,710 |
|
|
6,475 |
|
|
6,296 |
|
|
6,283 |
|
|
5,257 |
Total Arkansas |
|
202,507 |
|
|
143,174 |
|
|
163,890 |
|
|
162,423 |
|
|
161,438 |
|
|
|
|
|
|
|
|
|
|
TOTAL
BOK FINANCIAL |
$ |
21,790,457 |
|
$ |
21,291,148 |
|
$ |
20,674,429 |
|
$ |
20,205,680 |
|
$ |
20,347,936 |
Loans attributed to a principal market may not always represent
the location of the borrower or the collateral.
DEPOSITS BY PRINCIPAL MARKET AREA --
UNAUDITEDBOK FINANCIAL CORPORATION(in
thousands)
|
Sep. 30, 2022 |
|
June 30, 2022 |
|
Mar. 31, 2022 |
|
Dec. 31, 2021 |
|
Sep. 30, 2021 |
Oklahoma: |
|
|
|
|
|
|
|
|
|
Demand |
$ |
5,143,405 |
|
$ |
5,422,593 |
|
$ |
5,205,806 |
|
$ |
5,433,405 |
|
$ |
5,080,162 |
Interest-bearing: |
|
|
|
|
|
|
|
|
|
Transaction |
|
9,619,419 |
|
|
10,240,378 |
|
|
11,410,709 |
|
|
12,689,367 |
|
|
11,692,679 |
Savings |
|
558,256 |
|
|
561,413 |
|
|
558,634 |
|
|
521,439 |
|
|
510,906 |
Time |
|
776,306 |
|
|
678,127 |
|
|
817,744 |
|
|
978,822 |
|
|
1,039,866 |
Total interest-bearing |
|
10,953,981 |
|
|
11,479,918 |
|
|
12,787,087 |
|
|
14,189,628 |
|
|
13,243,451 |
Total Oklahoma |
|
16,097,386 |
|
|
16,902,511 |
|
|
17,992,893 |
|
|
19,623,033 |
|
|
18,323,613 |
|
|
|
|
|
|
|
|
|
|
Texas: |
|
|
|
|
|
|
|
|
|
Demand |
|
4,609,255 |
|
|
4,670,535 |
|
|
4,552,001 |
|
|
4,552,983 |
|
|
3,987,503 |
Interest-bearing: |
|
|
|
|
|
|
|
|
|
Transaction |
|
4,781,920 |
|
|
5,344,326 |
|
|
4,963,118 |
|
|
5,345,461 |
|
|
4,985,465 |
Savings |
|
179,049 |
|
|
183,708 |
|
|
182,536 |
|
|
178,458 |
|
|
165,043 |
Time |
|
343,015 |
|
|
333,038 |
|
|
329,931 |
|
|
337,559 |
|
|
337,389 |
Total interest-bearing |
|
5,303,984 |
|
|
5,861,072 |
|
|
5,475,585 |
|
|
5,861,478 |
|
|
5,487,897 |
Total Texas |
|
9,913,239 |
|
|
10,531,607 |
|
|
10,027,586 |
|
|
10,414,461 |
|
|
9,475,400 |
|
|
|
|
|
|
|
|
|
|
Colorado: |
|
|
|
|
|
|
|
|
|
Demand |
|
2,510,179 |
|
|
2,799,798 |
|
|
2,673,352 |
|
|
2,526,855 |
|
|
2,158,596 |
Interest-bearing: |
|
|
|
|
|
|
|
|
|
Transaction |
|
2,221,796 |
|
|
2,277,563 |
|
|
2,387,304 |
|
|
2,334,371 |
|
|
2,337,354 |
Savings |
|
80,542 |
|
|
82,976 |
|
|
81,762 |
|
|
78,636 |
|
|
79,873 |
Time |
|
151,064 |
|
|
160,795 |
|
|
165,401 |
|
|
174,351 |
|
|
184,002 |
Total interest-bearing |
|
2,453,402 |
|
|
2,521,334 |
|
|
2,634,467 |
|
|
2,587,358 |
|
|
2,601,229 |
Total Colorado |
|
4,963,581 |
|
|
5,321,132 |
|
|
5,307,819 |
|
|
5,114,213 |
|
|
4,759,825 |
|
|
|
|
|
|
|
|
|
|
New Mexico: |
|
|
|
|
|
|
|
|
|
Demand |
|
1,296,410 |
|
|
1,347,600 |
|
|
1,271,264 |
|
|
1,196,057 |
|
|
1,222,895 |
Interest-bearing: |
|
|
|
|
|
|
|
|
|
Transaction |
|
717,492 |
|
|
845,442 |
|
|
888,257 |
|
|
858,394 |
|
|
837,630 |
Savings |
|
113,056 |
|
|
115,660 |
|
|
115,457 |
|
|
107,963 |
|
|
107,615 |
Time |
|
142,856 |
|
|
148,532 |
|
|
156,140 |
|
|
163,871 |
|
|
168,879 |
Total interest-bearing |
|
973,404 |
|
|
1,109,634 |
|
|
1,159,854 |
|
|
1,130,228 |
|
|
1,114,124 |
Total New Mexico |
|
2,269,814 |
|
|
2,457,234 |
|
|
2,431,118 |
|
|
2,326,285 |
|
|
2,337,019 |
|
|
|
|
|
|
|
|
|
|
Arizona: |
|
|
|
|
|
|
|
|
|
Demand |
|
903,296 |
|
|
901,543 |
|
|
947,775 |
|
|
934,282 |
|
|
1,110,884 |
Interest-bearing: |
|
|
|
|
|
|
|
|
|
Transaction |
|
788,142 |
|
|
792,269 |
|
|
810,896 |
|
|
834,491 |
|
|
784,614 |
Savings |
|
18,258 |
|
|
17,999 |
|
|
18,122 |
|
|
16,182 |
|
|
16,468 |
Time |
|
26,704 |
|
|
28,774 |
|
|
27,259 |
|
|
31,274 |
|
|
30,862 |
Total interest-bearing |
|
833,104 |
|
|
839,042 |
|
|
856,277 |
|
|
881,947 |
|
|
831,944 |
Total Arizona |
|
1,736,400 |
|
|
1,740,585 |
|
|
1,804,052 |
|
|
1,816,229 |
|
|
1,942,828 |
|
|
|
|
|
|
|
|
|
|
Kansas/Missouri: |
|
|
|
|
|
|
|
|
|
Demand |
|
479,459 |
|
|
537,143 |
|
|
553,345 |
|
|
658,342 |
|
|
488,595 |
Interest-bearing: |
|
|
|
|
|
|
|
|
|
Transaction |
|
747,981 |
|
|
913,921 |
|
|
1,107,525 |
|
|
1,086,946 |
|
|
965,757 |
Savings |
|
19,375 |
|
|
19,943 |
|
|
19,589 |
|
|
18,844 |
|
|
17,303 |
Time |
|
13,258 |
|
|
13,962 |
|
|
11,527 |
|
|
12,255 |
|
|
13,040 |
Total interest-bearing |
|
780,614 |
|
|
947,826 |
|
|
1,138,641 |
|
|
1,118,045 |
|
|
996,100 |
Total Kansas/Missouri |
|
1,260,073 |
|
|
1,484,969 |
|
|
1,691,986 |
|
|
1,776,387 |
|
|
1,484,695 |
|
|
|
|
|
|
|
|
|
|
Arkansas: |
|
|
|
|
|
|
|
|
|
Demand |
|
43,111 |
|
|
41,084 |
|
|
38,798 |
|
|
42,499 |
|
|
41,594 |
Interest-bearing: |
|
|
|
|
|
|
|
|
|
Transaction |
|
123,273 |
|
|
130,300 |
|
|
122,020 |
|
|
119,543 |
|
|
149,611 |
Savings |
|
3,098 |
|
|
3,125 |
|
|
3,265 |
|
|
3,213 |
|
|
3,289 |
Time |
|
5,940 |
|
|
6,371 |
|
|
6,414 |
|
|
6,196 |
|
|
6,677 |
Total interest-bearing |
|
132,311 |
|
|
139,796 |
|
|
131,699 |
|
|
128,952 |
|
|
159,577 |
Total Arkansas |
|
175,422 |
|
|
180,880 |
|
|
170,497 |
|
|
171,451 |
|
|
201,171 |
|
|
|
|
|
|
|
|
|
|
TOTAL
BOK FINANCIAL |
$ |
36,415,915 |
|
$ |
38,618,918 |
|
$ |
39,425,951 |
|
$ |
41,242,059 |
|
$ |
38,524,551 |
NET INTEREST MARGIN TREND --
UNAUDITEDBOK FINANCIAL CORPORATION
|
Three Months Ended |
|
Sep. 30, 2022 |
|
June 30, 2022 |
|
Mar. 31, 2022 |
|
Dec. 31, 2021 |
|
Sep. 30, 2021 |
|
|
|
|
|
|
|
|
|
|
TAX-EQUIVALENT ASSETS
YIELDS |
|
|
|
|
|
|
|
|
|
Interest-bearing cash and cash equivalents |
1.87 |
% |
|
0.83 |
% |
|
0.18 |
% |
|
0.16 |
% |
|
0.14 |
% |
Trading securities |
2.72 |
% |
|
2.00 |
% |
|
1.71 |
% |
|
1.89 |
% |
|
2.04 |
% |
Investment securities, net of
allowance |
1.42 |
% |
|
2.35 |
% |
|
5.07 |
% |
|
4.99 |
% |
|
5.02 |
% |
Available for sale
securities |
2.21 |
% |
|
1.84 |
% |
|
1.77 |
% |
|
1.72 |
% |
|
1.80 |
% |
Fair value option
securities |
2.98 |
% |
|
2.92 |
% |
|
2.81 |
% |
|
2.71 |
% |
|
2.62 |
% |
Restricted equity
securities |
6.23 |
% |
|
3.30 |
% |
|
2.69 |
% |
|
2.98 |
% |
|
2.55 |
% |
Residential mortgage loans
held for sale |
5.05 |
% |
|
4.22 |
% |
|
3.11 |
% |
|
3.06 |
% |
|
3.06 |
% |
Loans |
4.89 |
% |
|
3.92 |
% |
|
3.57 |
% |
|
3.70 |
% |
|
3.68 |
% |
Allowance for loan losses |
|
|
|
|
|
|
|
|
|
Loans, net of allowance |
4.94 |
% |
|
3.96 |
% |
|
3.61 |
% |
|
3.75 |
% |
|
3.73 |
% |
Total tax-equivalent
yield on earning assets |
3.71 |
% |
|
2.96 |
% |
|
2.58 |
% |
|
2.66 |
% |
|
2.78 |
% |
|
|
|
|
|
|
|
|
|
|
COST OF
INTEREST-BEARING LIABILITIES |
|
|
|
|
|
|
|
|
Interest-bearing
deposits: |
|
|
|
|
|
|
|
|
|
Interest-bearing transaction |
0.63 |
% |
|
0.22 |
% |
|
0.10 |
% |
|
0.09 |
% |
|
0.09 |
% |
Savings |
0.05 |
% |
|
0.03 |
% |
|
0.03 |
% |
|
0.04 |
% |
|
0.04 |
% |
Time |
0.93 |
% |
|
0.68 |
% |
|
0.56 |
% |
|
0.53 |
% |
|
0.55 |
% |
Total interest-bearing deposits |
0.63 |
% |
|
0.24 |
% |
|
0.12 |
% |
|
0.12 |
% |
|
0.13 |
% |
Funds purchased and repurchase
agreements |
0.72 |
% |
|
0.53 |
% |
|
0.95 |
% |
|
0.73 |
% |
|
0.20 |
% |
Other borrowings |
2.33 |
% |
|
1.01 |
% |
|
0.38 |
% |
|
0.49 |
% |
|
0.37 |
% |
Subordinated debt |
5.07 |
% |
|
4.50 |
% |
|
4.02 |
% |
|
4.02 |
% |
|
4.63 |
% |
Total cost of interest-bearing liabilities |
0.76 |
% |
|
0.31 |
% |
|
0.21 |
% |
|
0.21 |
% |
|
0.19 |
% |
Tax-equivalent net interest revenue spread |
2.95 |
% |
|
2.65 |
% |
|
2.37 |
% |
|
2.45 |
% |
|
2.59 |
% |
Effect
of noninterest-bearing funding sources and other |
0.29 |
% |
|
0.11 |
% |
|
0.07 |
% |
|
0.07 |
% |
|
0.07 |
% |
Tax-equivalent net interest margin |
3.24 |
% |
|
2.76 |
% |
|
2.44 |
% |
|
2.52 |
% |
|
2.66 |
% |
Yield calculations are shown on a tax equivalent basis at the
statutory federal and state rates for the periods presented. The
yield calculations exclude security trades that have been recorded
on trade date with no corresponding interest income and the
unrealized gains and losses. The yield calculation also includes
average loan balances for which the accrual of interest has been
discontinued and are net of unearned income. Yield/rate
calculations are generally based on the conventions that determine
how interest income and expense is accrued.
CREDIT QUALITY INDICATORS --
UNAUDITEDBOK FINANCIAL CORPORATION(in
thousands, except ratios)
|
Three Months Ended |
|
Sep. 30, 2022 |
|
June 30, 2022 |
|
Mar. 31, 2022 |
|
Dec. 31, 2021 |
|
Sep. 30, 2021 |
Nonperforming assets: |
|
|
|
|
|
|
|
|
|
Nonaccruing loans: |
|
|
|
|
|
|
|
|
|
Commercial: |
|
|
|
|
|
|
|
|
|
Healthcare |
$ |
41,438 |
|
|
$ |
14,886 |
|
|
$ |
15,076 |
|
|
$ |
15,762 |
|
|
$ |
509 |
|
Services |
|
27,315 |
|
|
|
15,259 |
|
|
|
16,535 |
|
|
|
17,170 |
|
|
|
25,714 |
|
Energy |
|
4,164 |
|
|
|
20,924 |
|
|
|
24,976 |
|
|
|
31,091 |
|
|
|
45,500 |
|
General business |
|
2,753 |
|
|
|
3,539 |
|
|
|
3,750 |
|
|
|
10,081 |
|
|
|
8,951 |
|
Total commercial |
|
75,670 |
|
|
|
54,608 |
|
|
|
60,337 |
|
|
|
74,104 |
|
|
|
80,674 |
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate |
|
7,971 |
|
|
|
10,939 |
|
|
|
15,989 |
|
|
|
14,262 |
|
|
|
21,223 |
|
|
|
|
|
|
|
|
|
|
|
Loans to individuals: |
|
|
|
|
|
|
|
|
|
Permanent mortgage |
|
30,066 |
|
|
|
30,460 |
|
|
|
30,757 |
|
|
|
31,574 |
|
|
|
30,674 |
|
Permanent mortgage guaranteed by U.S. government agencies |
|
16,957 |
|
|
|
18,000 |
|
|
|
16,992 |
|
|
|
13,861 |
|
|
|
9,188 |
|
Personal |
|
136 |
|
|
|
132 |
|
|
|
171 |
|
|
|
258 |
|
|
|
188 |
|
Total loans to individuals |
|
47,159 |
|
|
|
48,592 |
|
|
|
47,920 |
|
|
|
45,693 |
|
|
|
40,050 |
|
|
|
|
|
|
|
|
|
|
|
Total nonaccruing loans |
$ |
130,800 |
|
|
$ |
114,139 |
|
|
$ |
124,246 |
|
|
$ |
134,059 |
|
|
$ |
141,947 |
|
Accruing renegotiated loans
guaranteed by U.S. government agencies |
|
176,022 |
|
|
|
196,420 |
|
|
|
204,121 |
|
|
|
210,618 |
|
|
|
178,554 |
|
Real
estate and other repossessed assets |
|
29,676 |
|
|
|
22,221 |
|
|
|
24,492 |
|
|
|
24,589 |
|
|
|
28,770 |
|
Total nonperforming assets |
$ |
336,498 |
|
|
$ |
332,780 |
|
|
$ |
352,859 |
|
|
$ |
369,266 |
|
|
$ |
349,271 |
|
Total nonperforming assets excluding those guaranteed by U.S.
government agencies |
$ |
143,519 |
|
|
$ |
118,360 |
|
|
$ |
131,746 |
|
|
$ |
144,787 |
|
|
$ |
161,529 |
|
|
|
|
|
|
|
|
|
|
|
Accruing loans 90 days past
due1 |
$ |
120 |
|
|
$ |
3 |
|
|
$ |
307 |
|
|
$ |
313 |
|
|
$ |
223 |
|
|
|
|
|
|
|
|
|
|
|
Gross charge-offs |
$ |
1,766 |
|
|
$ |
1,368 |
|
|
$ |
7,805 |
|
|
$ |
6,558 |
|
|
$ |
9,584 |
|
Recoveries |
|
(1,309 |
) |
|
|
(2,167 |
) |
|
|
(1,824 |
) |
|
|
(7,272 |
) |
|
|
(1,769 |
) |
Net charge-offs (recoveries) |
$ |
457 |
|
|
$ |
(799 |
) |
|
$ |
5,981 |
|
|
$ |
(714 |
) |
|
$ |
7,815 |
|
|
|
|
|
|
|
|
|
|
|
Provision for loan losses |
$ |
1,111 |
|
|
$ |
(6,158 |
) |
|
$ |
(3,967 |
) |
|
$ |
(20,973 |
) |
|
$ |
(27,395 |
) |
Provision for credit losses
from off-balance sheet unfunded loan commitments |
|
14,060 |
|
|
|
6,005 |
|
|
|
3,268 |
|
|
|
3,738 |
|
|
|
4,952 |
|
Provision for expected credit
losses from mortgage banking activities |
|
(66 |
) |
|
|
69 |
|
|
|
621 |
|
|
|
150 |
|
|
|
(534 |
) |
Provision for credit losses related to held-to maturity
(investment) securities portfolio |
|
(105 |
) |
|
|
84 |
|
|
|
78 |
|
|
|
85 |
|
|
|
(23 |
) |
Total provision for credit losses |
$ |
15,000 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(17,000 |
) |
|
$ |
(23,000 |
) |
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses to
period end loans |
|
1.11 |
% |
|
|
1.13 |
% |
|
|
1.19 |
% |
|
|
1.27 |
% |
|
|
1.36 |
% |
Combined allowance for loan
losses and accrual for off-balance sheet credit risk from unfunded
loan commitments to period end loans |
|
1.37 |
% |
|
|
1.33 |
% |
|
|
1.37 |
% |
|
|
1.43 |
% |
|
|
1.50 |
% |
Nonperforming assets to period
end loans and repossessed assets |
|
1.54 |
% |
|
|
1.56 |
% |
|
|
1.70 |
% |
|
|
1.83 |
% |
|
|
1.71 |
% |
Net charge-offs (annualized)
to average loans |
|
0.01 |
% |
|
(0.02 |
)% |
|
|
0.12 |
% |
|
(0.01 |
)% |
|
|
0.15 |
% |
Allowance for loan losses to
nonaccruing loans1 |
|
212.37 |
% |
|
|
250.80 |
% |
|
|
229.80 |
% |
|
|
213.33 |
% |
|
|
208.41 |
% |
Combined allowance for loan
losses and accrual for off-balance sheet credit risk from unfunded
loan commitments to nonaccruing loans1 |
|
261.83 |
% |
|
|
294.74 |
% |
|
|
263.60 |
% |
|
|
240.77 |
% |
|
|
230.43 |
% |
1 Excludes residential mortgage loans guaranteed by
agencies of the U.S. government.
SEGMENTS -- UNAUDITEDBOK FINANCIAL
CORPORATION(in thousands, except ratios)
|
|
Three Months Ended |
|
3Q22 vs
2Q22 |
|
3Q22 vs
3Q21 |
|
|
Sep. 30, 2022 |
|
June 30, 2022 |
|
Sep. 30, 2021 |
|
$ change |
|
% change |
|
$ change |
|
% change |
Commercial
Banking |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest revenue |
|
$ |
206,904 |
|
$ |
166,542 |
|
$ |
134,104 |
|
$ |
40,362 |
|
|
24.2 |
% |
|
$ |
72,800 |
|
|
54.3 |
% |
Fees
and commissions revenue |
|
|
58,147 |
|
|
59,881 |
|
|
56,452 |
|
|
(1,734 |
) |
|
(2.9 |
)% |
|
|
1,695 |
|
|
3.0 |
% |
Combined net interest and fee revenue |
|
|
265,051 |
|
|
226,423 |
|
|
190,556 |
|
|
38,628 |
|
|
17.1 |
% |
|
|
74,495 |
|
|
39.1 |
% |
Other operating expense |
|
|
75,872 |
|
|
70,009 |
|
|
68,301 |
|
|
5,863 |
|
|
8.4 |
% |
|
|
7,571 |
|
|
11.1 |
% |
Corporate expense
allocations |
|
|
16,451 |
|
|
16,634 |
|
|
11,769 |
|
|
(183 |
) |
|
(1.1 |
)% |
|
|
4,682 |
|
|
39.8 |
% |
Net income |
|
|
132,941 |
|
|
104,813 |
|
|
102,694 |
|
|
28,128 |
|
|
26.8 |
% |
|
|
30,247 |
|
|
29.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average assets |
|
|
28,890,429 |
|
|
29,269,712 |
|
|
28,474,132 |
|
|
(379,283 |
) |
|
(1.3 |
)% |
|
|
416,297 |
|
|
1.5 |
% |
Average loans |
|
|
17,904,779 |
|
|
17,336,841 |
|
|
16,588,875 |
|
|
567,938 |
|
|
3.3 |
% |
|
|
1,315,904 |
|
|
7.9 |
% |
Average deposits |
|
|
17,966,661 |
|
|
18,933,766 |
|
|
17,881,673 |
|
|
(967,105 |
) |
|
(5.1 |
)% |
|
|
84,988 |
|
|
0.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer
Banking |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest revenue |
|
$ |
43,951 |
|
$ |
33,786 |
|
$ |
27,222 |
|
$ |
10,165 |
|
|
30.1 |
% |
|
$ |
16,729 |
|
|
61.5 |
% |
Fees
and commissions revenue |
|
|
30,230 |
|
|
30,101 |
|
|
44,405 |
|
|
129 |
|
|
0.4 |
% |
|
|
(14,175 |
) |
|
(31.9 |
)% |
Combined net interest and fee revenue |
|
|
74,181 |
|
|
63,887 |
|
|
71,627 |
|
|
10,294 |
|
|
16.1 |
% |
|
|
2,554 |
|
|
3.6 |
% |
Other operating expense |
|
|
53,236 |
|
|
52,660 |
|
|
49,483 |
|
|
576 |
|
|
1.1 |
% |
|
|
3,753 |
|
|
7.6 |
% |
Corporate expense
allocations |
|
|
10,792 |
|
|
10,120 |
|
|
11,516 |
|
|
672 |
|
|
6.6 |
% |
|
|
(724 |
) |
|
(6.3 |
)% |
Net income |
|
|
2,970 |
|
|
1,239 |
|
|
12,432 |
|
|
1,731 |
|
|
139.7 |
% |
|
|
(9,462 |
) |
|
(76.1 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average assets |
|
|
10,233,401 |
|
|
10,338,191 |
|
|
10,083,593 |
|
|
(104,790 |
) |
|
(1.0 |
)% |
|
|
149,808 |
|
|
1.5 |
% |
Average loans |
|
|
1,686,498 |
|
|
1,669,830 |
|
|
1,763,705 |
|
|
16,668 |
|
|
1.0 |
% |
|
|
(77,207 |
) |
|
(4.4 |
)% |
Average deposits |
|
|
8,812,884 |
|
|
8,876,469 |
|
|
8,516,942 |
|
|
(63,585 |
) |
|
(0.7 |
)% |
|
|
295,942 |
|
|
3.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wealth
Management |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest revenue |
|
$ |
33,584 |
|
$ |
37,747 |
|
$ |
55,196 |
|
$ |
(4,163 |
) |
|
(11.0 |
)% |
|
$ |
(21,612 |
) |
|
(39.2 |
)% |
Fees
and commissions revenue |
|
|
113,113 |
|
|
86,771 |
|
|
97,966 |
|
|
26,342 |
|
|
30.4 |
% |
|
|
15,147 |
|
|
15.5 |
% |
Combined net interest and fee revenue |
|
|
146,697 |
|
|
124,518 |
|
|
153,162 |
|
|
22,179 |
|
|
17.8 |
% |
|
|
(6,465 |
) |
|
(4.2 |
)% |
Other operating expense |
|
|
79,151 |
|
|
76,393 |
|
|
87,498 |
|
|
2,758 |
|
|
3.6 |
% |
|
|
(8,347 |
) |
|
(9.5 |
)% |
Corporate expense
allocations |
|
|
12,934 |
|
|
12,503 |
|
|
10,110 |
|
|
431 |
|
|
3.4 |
% |
|
|
2,824 |
|
|
27.9 |
% |
Net income |
|
|
41,808 |
|
|
27,287 |
|
|
41,339 |
|
|
14,521 |
|
|
53.2 |
% |
|
|
469 |
|
|
1.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average assets |
|
|
13,818,299 |
|
|
16,902,721 |
|
|
19,109,704 |
|
|
(3,084,422 |
) |
|
(18.2 |
)% |
|
|
(5,291,405 |
) |
|
(27.7 |
)% |
Average loans |
|
|
2,163,975 |
|
|
2,157,771 |
|
|
1,971,380 |
|
|
6,204 |
|
|
0.3 |
% |
|
|
192,595 |
|
|
9.8 |
% |
Average deposits |
|
|
7,999,074 |
|
|
8,482,785 |
|
|
9,120,446 |
|
|
(483,711 |
) |
|
(5.7 |
)% |
|
|
(1,121,372 |
) |
|
(12.3 |
)% |
Fiduciary assets |
|
|
54,714,705 |
|
|
55,972,584 |
|
|
60,497,576 |
|
|
(1,257,879 |
) |
|
(2.2 |
)% |
|
|
(5,782,871 |
) |
|
(9.6 |
)% |
Assets under management or
administration |
|
|
95,401,638 |
|
|
95,981,289 |
|
|
98,842,789 |
|
|
(579,651 |
) |
|
(0.6 |
)% |
|
|
(3,441,151 |
) |
|
(3.5 |
)% |
Contact:
Sue Hermann
Director, Corporate Communications
303-312-3488
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