BOK Financial Corporation (NASD: BOKF) -
CEO Commentary |
Stacy Kymes, president and
chief executive officer, stated, “The strong financial results in
the first quarter are a testament to our diverse business model,
strong operating geographies, and disciplined approach to risk
management that has long been critical to our ability to sustain
success. Our peer-leading tangible capital ratio paired with our
balance sheet liquidity have served us well over the last 45 days
with the disruptions in our sector. The disruptions and almost
unprecedented level of rate volatility in the quarter have
demonstrated our ability to both manage critical risks well while
also continuing to post strong financial results for our
shareholders. In fact, this quarter was the second highest
pre-provision net revenue in our history. The first quarter showed
sustained revenue in our non-interest income businesses, continued
loan growth, and an efficiency ratio below 57 percent. While we
cannot be totally immune from the macro economy, we believe this is
exactly the environment where we can be most differentiated. Our
interest rate, liquidity, and credit risk management are strong and
we remain focused on increasing top line revenue in exceptional
growth markets." |
First Quarter 2023 Financial Highlights |
(Unless indicated otherwise, all comparisons are to the prior
quarter) |
- Net income was $162.4 million or $2.43 per diluted share for
the first quarter of 2023 and $168.4 million or $2.51 per diluted
share for the fourth quarter of 2022.
- Net interest revenue totaled $352.3 million, consistent with
the prior quarter. Net interest margin was 3.45 percent compared to
3.54 percent, driven by higher funding costs, as expected.
- Fees and commissions revenue was $186.0 million, a decrease of
$7.6 million. A $10.6 million reduction in brokerage and trading
revenue related to lower trading volumes due to escalated market
volatility was partially offset by a $4.3 million increase in
mortgage banking revenue related to higher production volume and
expanded mortgage servicing.
- Due to interest rate volatility in the first quarter, the net
cost of the changes in the fair value of mortgage servicing rights
and related economic hedges was $10.5 million compared to $1.2
million for the fourth quarter of 2022.
- Operating expense decreased $12.6 million to $305.8 million.
Personnel expense decreased $4.3 million. Lower incentive
compensation costs, driven largely by a one-time incentive given to
employees in the fourth quarter of 2022, were partially offset by
increased employee benefits costs related to higher seasonal
payroll taxes. Non-personnel expense decreased $8.4 million, led by
a reduction in professional fees and mortgage banking costs.
- Period-end loans increased $193 million to $22.8 billion at
March 31, 2023, primarily related to a $209 million increase in
commercial real estate loans driven largely by loans secured by
multifamily residential properties and industrial facilities.
Average outstanding loan balances were $22.5 billion, a $500
million increase, primarily due to higher commercial and commercial
real estate balances.
- We recorded a $16.0 million provision for expected credit
losses in the first quarter of 2023, as key economic assumptions in
the base case, including projected West Texas Intermediate ("WTI")
oil prices and projected commercial real estate vacancy rates, were
less favorable to economic growth. We recorded a $15.0 million
provision for expected credit losses in the fourth quarter of 2022,
primarily as a result of growth in loans and loan commitments
during the quarter. The combined allowance for credit losses
totaled $312 million or 1.37 percent of outstanding loans at March
31, 2023. The combined allowance for credit losses was $297 million
or 1.31 percent of outstanding loans at December 31, 2022. Net
charge-offs were $769 thousand or 0.01 percent of average loans on
an annualized basis in the first quarter compared to net
charge-offs of $15.5 million or 0.28 percent of average loans on an
annualized basis in the fourth quarter.
- Average deposits decreased $2.0 billion to $33.5 billion and
period-end deposits decreased $1.9 billion to $32.6 billion as
customers redeployed resources and pursued investment alternatives
following the savings trend during the height of the pandemic. The
impact of recent events in the banking industry was not significant
to our deposit trends. Average demand deposits were reduced by $1.8
billion and average interest-bearing deposits decreased $209
million. The loan to deposit ratio was 70 percent at March 31,
2023, up from 65 percent at December 31, 2022, representing a
funding profile more consistent with, but still below, pre-pandemic
levels.
- The company's tangible common equity ratio, a non-GAAP measure,
was 8.46 percent at March 31, 2023 and 7.63 percent at
December 31, 2022. The tangible common equity ratio is
primarily based on total shareholders' equity, which includes
unrealized gains and losses on available for sale securities.
Adjusted for all unrealized securities portfolio gains and losses,
including those in the investment portfolio, the tangible common
equity ratio would be 8.22 percent.
- The company's common equity Tier 1 capital ratio was 12.19
percent at March 31, 2023. In addition, the company's Tier 1
capital ratio was 12.20 percent, total capital ratio was 13.21
percent, and leverage ratio was 9.94 percent at March 31, 2023. At
December 31, 2022, the company's common equity Tier 1 capital
ratio was 11.69 percent, Tier 1 capital ratio was 11.71 percent,
total capital ratio was 12.67 percent, and leverage ratio was 9.91
percent.
- The company repurchased 447,071 shares of common stock at an
average price paid of $98.64 a share in the first quarter of
2023.
First Quarter 2023 Segment Highlights |
- Commercial Banking contributed $176.5 million to net income in
the first quarter of 2023, an increase of $37.2 million over the
fourth quarter of 2022. Combined net interest revenue and fee
revenue increased $30.7 million, primarily due to an increase in
the spread on deposits sold to our Funds Management unit. Net loans
charged-off decreased $14.3 million to $76 thousand in the first
quarter of 2023. Personnel expense decreased $5.3 million, driven
by incentive compensation costs. Average loans increased $496
million or 3 percent to $18.8 billion. Average deposits decreased
$971 million or 6 percent to $15.9 billion.
- Consumer Banking contributed $50.7 million to net income in the
first quarter of 2023, an increase of $41.7 million over the prior
quarter. Combined net interest revenue and fee revenue increased
$59.0 million, largely due to an increase in the spread on deposits
sold to our Funds Management unit. Fees and commissions revenue
increased $3.0 million. Mortgage banking revenue increased $4.3
million as mortgage production volumes grew $54.0 million,
partially offset by decreases in deposit service charges and other
revenue. Operating expense decreased $4.3 million. Mortgage banking
costs decreased $3.2 million from lower prepayments combined with
reduced accruals related to default servicing and loss mitigation
costs on loans serviced for others. Personnel expense decreased
$1.1 million. Average loans increased $22 million or 1 percent to
$1.7 billion. Average deposits decreased $369 million or 4 percent
to $8.2 billion.
- Wealth Management contributed $52.4 million to net income in
the first quarter of 2023, an increase of $11.0 million over the
fourth quarter of 2022. Combined net interest and fee revenue
increased $13.9 million, primarily due to an increase in the spread
on deposits sold to our Funds Management unit, which was partially
offset by a decrease of $9.0 million in total revenue from
institutional trading activities from reduced U.S. agency
residential mortgage-backed securities trading volumes. Average
loans decreased $22 million or 1 percent to $2.2 billion. Average
deposits decreased $456 million or 6 percent to $7.4 billion.
Assets under management or administration were $102.3 billion, an
increase of $2.6 billion.
Net interest revenue was $352.3 million for the first quarter of
2023, relatively unchanged from the prior quarter. Net interest
margin was 3.45 percent compared to 3.54 percent, driven by
expected deposit repricing activity. In recent prior quarters, the
rapid pace of market interest rate increases grew net interest
margin as our earning assets, led by our significant percentage of
variable-rate loans, repriced at a higher rate and faster pace than
our interest-bearing liabilities. In the current quarter, we saw
margin compression as our interest-bearing liabilities began to
catch up and reprice more quickly.
Average earning assets increased $1.5 billion. Average loan
balances increased $500 million, largely due to growth in
commercial and commercial real estate loans. Average available for
sale securities increased $785 million as we reposition our balance
sheet for the current rate environment. Average fair value option
securities, held as an economic hedge of the changes in fair value
of our mortgage servicing rights, increased $208 million while
average restricted equity securities grew $100 million. Average
interest-bearing deposits decreased $209 million as customers
redeployed resources following the savings trend during the height
of the pandemic. Average other borrowings increased $2.0 billion
while funds purchased and repurchase agreements grew $713
million.
The yield on average earning assets was 5.06 percent, up 53
basis points. The loan portfolio yield increased 68 basis points to
6.67 percent while the yield on trading securities was up 82 basis
points to 4.52 percent. The yield on the available for sale
securities portfolio increased 33 basis points to 2.87 percent
while the yield on the fair value option securities portfolio grew
77 basis points to 5.17 percent. The yield on interest-bearing cash
and cash equivalents increased 22 basis points to 4.28 percent.
Funding costs were 2.43 percent, an 86 basis point increase. The
cost of interest-bearing deposits increased 61 basis points to 1.83
percent. The cost of funds purchased and repurchase agreements
increased 128 basis points to 3.33 percent while the cost of other
borrowings was up 65 basis points to 4.73 percent. The benefit to
net interest margin from assets funded by non-interest liabilities
was 82 basis points, an increase of 24 basis points.
Fees and Commissions
Revenue |
Fees and commissions revenue totaled $186.0 million for the
first quarter of 2023, a decrease of $7.6 million from the prior
quarter.
Brokerage and trading revenue decreased $10.6 million, with an
$8.3 million reduction in trading revenue, largely due to a lower
volume of U.S. agency residential mortgage-backed securities
trading activity caused by high market volatility. Total investment
banking revenue decreased $2.6 million with a reduction in
syndication activity partially offset by higher underwriting fees.
Transaction card revenue decreased $1.5 million, largely related to
a decline in seasonal transaction volumes.
Mortgage banking revenue increased $4.3 million as mortgage
originations were up following seasonal declines in the prior
quarter. Mortgage production volume increased $54 million to $165
million.
Total operating expense was $305.8 million for the first quarter
of 2023, a decrease of $12.6 million compared to the fourth quarter
of 2022.
Personnel expense was $182.1 million, including $1.7 million of
deferred compensation expense. Excluding deferred compensation
costs, personnel expense decreased $2.1 million. Cash-based
incentive compensation decreased $12.6 million, largely due to a
one-time incentive given to employees in the fourth quarter of
2022. Share-based compensation expense increased $2.2 million due
to changes in assumptions of certain performance-based equity
awards while regular compensation increased $2.2 million along with
our annual merit increases in March. Employee benefits expense was
up $6.1 million due to a seasonal increase in payroll taxes.
Non-personnel expense was $123.7 million, a decrease of $8.4
million. Professional fees and services expense decreased $5.3
million, largely related to reduced legal fees and lower technology
project costs. Lower prepayments and decreased accruals related to
default servicing and loss mitigations costs led to a $3.2 million
reduction in mortgage banking costs. The fourth quarter of 2022
also included a $2.5 million charitable donation to the BOKF
Foundation. These decreases were partially offset by $2.6 million
more in FDIC insurance expenses from higher assessment rates.
Loans, Deposits and
Capital |
Loans
Outstanding loans were $22.8 billion at March 31, 2023, growing
$193 million over December 31, 2022, largely due to growth in
commercial real estate loans, primarily from loans secured by
multifamily residential properties and industrial facilities.
Unfunded loan commitments decreased $304 million compared to the
fourth quarter.
Outstanding commercial loan balances, which includes services,
general business, energy, and healthcare loans, were largely
unchanged compared to the prior quarter.
General business loans decreased $155 million to $3.4 billion or
15 percent of total loans. General business loans include $2.0
billion of wholesale/retail loans and $1.4 billion of loans from
other commercial industries.
Services sector loan balances increased $132 million to $3.6
billion or 16 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.
Healthcare sector loan balances increased $54 million, totaling
$3.9 billion or 17 percent of total loans. Our healthcare sector
loans primarily consist of $3.2 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.
Energy loan balances decreased $27 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 67 percent of committed production loans are
secured by properties primarily producing oil. The remaining 33
percent is secured by properties primarily producing natural gas.
Unfunded energy loan commitments were $4.1 billion at March 31,
2023, an increase of $246 million over December 31, 2022.
Commercial real estate loan balances grew $209 million and
represent 21 percent of total loans. Loans secured by multifamily
residential properties increased $151 million to $1.4 billion.
Loans secured by industrial facilities increased $88 million to
$1.3 billion. This growth was partially offset by a $28 million
decrease in other real estate loans. Unfunded commercial real
estate loan commitments were $2.7 billion at March 31, 2023, a
decrease of $397 million compared to December 31, 2022. We
take a disciplined approach to managing our concentration of
commercial real estate loan commitments as a percentage of Tier 1
Capital. While loan commitments are presently at the upper
concentration limit, we expect continued growth in our commercial
real estate balances as loans fund, primarily in the multifamily
and industrial loan portfolios.
Loans to individuals decreased $20 million and represent 16
percent of total loans. Personal loans decreased $35 million while
total residential mortgage loans increased $14 million.
Liquidity and Capital
Our funding sources, which primarily include deposits and
borrowings from the Federal Home Loan Banks, provide adequate
liquidity to meet our needs. The loan to deposit ratio was 70
percent at March 31, 2023, providing significant on-balance sheet
liquidity to meet future loan demand and contractual
obligations.
Period-end deposits totaled $32.6 billion at March 31, 2023, a
$1.9 billion decrease, largely due to clients redeploying capital
and seeking higher yielding alternatives following the savings
trend during the pandemic. This trend is consistent with prior
quarters and is in line with previous guidance. Demand deposits
decreased $1.8 billion while interest-bearing transaction account
balances decreased $225 million. Time deposits increased $115
million. Average deposits were $33.5 billion at March 31, 2023, a
$2.0 billion decrease. Average demand deposit account balances
decreased $1.8 billion and average interest-bearing transaction
account balances decreased $258 million. Average Commercial Banking
deposits decreased $971 million to $15.9 billion or 47 percent of
total deposits. Our commercial deposit portfolio is highly
diversified across industries and customers. The highest
concentration by industry within our commercial deposit portfolio
is with our energy customers at 7 percent. Wealth Management
deposits decreased $456 million to $7.4 billion or 22 percent of
total deposits and Consumer Banking deposits declined $369 million
to $8.2 billion or 25 percent of total deposits.
The company's common equity Tier 1 capital ratio was 12.19
percent at March 31, 2023. In addition, the company's Tier 1
capital ratio was 12.20 percent, total capital ratio was 13.21
percent, and leverage ratio was 9.94 percent at March 31, 2023. 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 6 basis points to
the company's common equity tier 1 capital ratio at March 31, 2023.
At December 31, 2022, the company's common equity Tier 1
capital ratio was 11.69 percent, Tier 1 capital ratio was 11.71
percent, total capital ratio was 12.67 percent, and leverage ratio
was 9.91 percent.
The company's tangible common equity ratio, a non-GAAP measure,
was 8.46 percent at March 31, 2023 and 7.63 percent at
December 31, 2022. The tangible common equity ratio is
primarily based on total shareholders' equity, which includes
unrealized gains and losses on available for sale securities.
Adjusted for all unrealized securities portfolio gains and losses,
including those in the investment portfolio, the tangible common
equity ratio would be 8.22 percent. 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 447,071 shares of common stock at an
average price paid of $98.64 a share in the first quarter of 2023.
We view share buybacks opportunistically, but within the context of
maintaining our strong capital position.
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 WTI oil prices on a probability weighted basis.
A $16.0 million provision for credit losses was necessary for
the first quarter of 2023, as key economic assumptions in the base
case, including projected WTI oil prices and projected commercial
real estate vacancy rates, were less favorable to economic
growth.
The probability weighting of our base case reasonable and
supportable forecast remained at 50 percent in the first quarter of
2023 as the level of uncertainty in economic forecasts remained
high. Our base case reasonable and supportable forecast assumes
inflation continues to improve from the peak experienced in 2022
and reaches 3.0 percent by the end of 2023. We expect the impact of
the Russian-Ukraine conflict remains isolated and stress in the
banking sector does not become widespread. Inflation pressures
cause modest declines in real household income compared to
pre-pandemic levels, resulting in below-trend GDP growth. GDP is
projected to grow by 0.7 percent over the next twelve months. Job
openings revert to more normalized levels and overall hiring levels
decline, causing the national unemployment rate to modestly
increase over the next four quarters. Our forecasted civilian
unemployment rate is 3.8 percent for the second quarter of 2023,
increasing to 4.1 percent by the first quarter of 2024. Our base
case also assumes the Federal Reserve increases the federal funds
rate once in the second quarter of 2023, resulting in a target
range of 5.00 percent to 5.25 percent. No additional rate increases
are anticipated for the remainder of the forecast horizon. WTI oil
prices are projected to generally follow the NYMEX forward curve
that existed at the end of March 31, 2023, averaging $69.18 per
barrel over the next twelve months.
Our downside case, probability weighted at 40 percent, assumes
that inflation moderates slightly from the peak experienced in
2022, but remains elevated through the forecast horizon ending 2023
at 5.0 percent. Higher levels of inflation force the Federal
Reserve to adopt a more aggressive monetary policy as compared to
the base case scenario. This results in a federal funds target
range of 5.75 percent to 6.00 percent by the first quarter of 2024.
The United States economy is pushed into a recession, with a
contraction in economic activity and a sharp increase in the
unemployment rate from 4.7 percent in the second quarter of 2023 to
6.0 percent in the first quarter of 2024. In this scenario, real
GDP is expected to contract 2.0 percent over the next four
quarters. WTI oil prices are projected to average $58.02 per barrel
over the next twelve months, peaking at $62.53 in the second
quarter of 2023 and falling 17 percent over the following three
quarters.
Nonperforming assets totaled $133 million or 0.58 percent of
outstanding loans and repossessed assets at March 31, 2023,
compared to $300 million or 1.33 percent at December 31, 2022.
Excluding loans guaranteed by U.S. government agencies,
nonperforming assets totaled $119 million or 0.53 percent of
outstanding loans and repossessed assets at March 31, 2023,
compared to $121 million or 0.54 percent at December 31,
2022.
Nonaccruing loans were $120 million or 0.53 percent of
outstanding loans at March 31, 2023. Nonaccruing commercial loans
totaled $54 million or 0.38 percent of outstanding commercial
loans. Nonaccruing commercial real estate loans totaled $22 million
or 0.45 percent of outstanding commercial real estate loans.
Nonaccruing loans to individuals totaled $44 million or 1.19
percent of outstanding loans to individuals.
Nonaccruing loans decreased $1.5 million compared to
December 31, 2022. Nonaccruing services loans decreased $8.1
million, nonaccruing healthcare loans decreased $3.8 million and
nonaccruing energy loans decreased $1.3 million. These decreases
were partially offset by a $7.3 million increase in nonaccruing
general business loans and a $5.1 million increase in nonaccruing
commercial real estate loans. New nonaccruing loans identified in
the first quarter totaled $25 million, offset by $22 million in
payments received.
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 $137 million
at March 31, 2023, compared to $94 million at December 31,
2022. An increase in potential problem general business and
services loans was offset by a decrease in energy, healthcare and
commercial real estate potential problem loans.
At March 31, 2023, the combined allowance for loan losses and
accrual for off-balance sheet credit risk from unfunded loan
commitments was $312 million or 1.37 percent of outstanding loans
and 295 percent of nonaccruing loans. The allowance for loan losses
totaled $249 million or 1.10 percent of outstanding loans and 235
percent of nonaccruing loans. At December 31, 2022, the
combined allowance for loan losses and accrual for off-balance
sheet credit risk from unfunded loan commitments was $297 million
or 1.31 percent of outstanding loans and 278 percent of nonaccruing
loans. The allowance for loan losses was $236 million or 1.04
percent of outstanding loans and 221 percent of nonaccruing loans.
The allowance to nonaccruing loan percentages referenced above omit
residential mortgage loans guaranteed by U.S. government
agencies.
Gross charge-offs were $3.7 million for the first quarter
compared to $17.8 million for the fourth quarter of 2022. Gross
charge-offs for the first quarter were primarily related to a
single commercial real estate borrower. Recoveries totaled $2.9
million for the first quarter of 2023 and $2.3 million for the
prior quarter. Net charge-offs were $769 thousand or 0.01 percent
of average loans on an annualized basis in the first quarter
compared to net charge-offs of $15.5 million or 0.28 percent of
average loans on an annualized basis in the fourth quarter. Net
charge-offs were 0.07 percent of average loans over the last four
quarters.
Securities and
Derivatives |
The fair value of the available for sale securities portfolio
totaled $11.9 billion at March 31, 2023, a $444 million increase
over December 31, 2022. At March 31, 2023, the available for
sale securities portfolio consisted primarily of $6.0 billion of
residential mortgage-backed securities fully backed by U.S.
government agencies and $4.6 billion of commercial mortgage-backed
securities fully backed by U.S. government agencies. At March 31,
2023, the available for sale securities portfolio had a net
unrealized loss of $742 million compared to $866 million at
December 31, 2022.
We hold an inventory of trading securities in support of sales
to a variety of customers. At March 31, 2023, the trading
securities portfolio totaled $2.3 billion compared to $4.5 billion
at December 31, 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 increased $30 million to
$326 million at March 31, 2023.
Derivative contracts are carried at fair value. At March
31, 2023, the net fair values of derivative contracts, before
consideration of cash margin, reported as assets under our customer
derivative programs totaled $572 million compared to $1.0 billion
at December 31, 2022. The aggregate net fair value of
derivative contracts, before consideration of cash margin, held
under these programs reported as liabilities totaled $578 million
at March 31, 2023 and $1.0 billion at December 31, 2022.
The net cost of the changes in the fair value of mortgage
servicing rights and related economic hedges was $10.5 million
during the first quarter of 2023, including a $6.1 million decrease
in the fair value of mortgage servicing rights, $4.7 million
decrease in the fair value of securities and derivative contracts
held as an economic hedge, and $187 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, April 26, 2023 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 1-844-512-2921 and referencing conference ID #
13737852.
About BOK Financial
Corporation |
BOK Financial Corporation is a $46 billion regional financial
services company headquartered in Tulsa, Oklahoma with $102 billion
in assets under management or 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 March 31, 2023 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)
|
Mar. 31, 2023 |
|
Dec. 31, 2022 |
ASSETS |
|
|
|
Cash and due from banks |
$ |
792,371 |
|
|
$ |
943,810 |
|
Interest-bearing cash and cash
equivalents |
|
571,613 |
|
|
|
457,906 |
|
Trading securities |
|
2,294,358 |
|
|
|
4,464,161 |
|
Investment securities, net of
allowance |
|
2,448,136 |
|
|
|
2,513,687 |
|
Available for sale
securities |
|
11,937,841 |
|
|
|
11,493,860 |
|
Fair value option
securities |
|
326,390 |
|
|
|
296,590 |
|
Restricted equity
securities |
|
288,181 |
|
|
|
299,651 |
|
Residential mortgage loans
held for sale |
|
74,175 |
|
|
|
75,272 |
|
Loans: |
|
|
|
Commercial |
|
14,217,349 |
|
|
|
14,212,499 |
|
Commercial real estate |
|
4,815,316 |
|
|
|
4,606,777 |
|
Loans to individuals |
|
3,717,388 |
|
|
|
3,737,874 |
|
Total loans |
|
22,750,053 |
|
|
|
22,557,150 |
|
Allowance for loan losses |
|
(249,460 |
) |
|
|
(235,704 |
) |
Loans, net of allowance |
|
22,500,593 |
|
|
|
22,321,446 |
|
Premises and equipment,
net |
|
623,112 |
|
|
|
565,175 |
|
Receivables |
|
265,680 |
|
|
|
273,815 |
|
Goodwill |
|
1,044,749 |
|
|
|
1,044,749 |
|
Intangible assets, net |
|
72,689 |
|
|
|
76,131 |
|
Mortgage servicing rights |
|
299,803 |
|
|
|
277,608 |
|
Real estate and other
repossessed assets, net |
|
12,651 |
|
|
|
14,304 |
|
Derivative contracts, net |
|
394,291 |
|
|
|
880,343 |
|
Cash surrender value of
bank-owned life insurance |
|
408,614 |
|
|
|
406,751 |
|
Receivable on unsettled
securities sales |
|
18,186 |
|
|
|
31,004 |
|
Other
assets |
|
1,150,689 |
|
|
|
1,354,379 |
|
TOTAL ASSETS |
$ |
45,524,122 |
|
|
$ |
47,790,642 |
|
|
|
|
|
LIABILITIES AND
EQUITY |
|
|
|
Deposits: |
|
|
|
Demand |
$ |
11,606,975 |
|
|
$ |
13,395,337 |
|
Interest-bearing transaction |
|
18,434,489 |
|
|
|
18,659,115 |
|
Savings |
|
962,673 |
|
|
|
964,411 |
|
Time |
|
1,576,610 |
|
|
|
1,461,842 |
|
Total deposits |
|
32,580,747 |
|
|
|
34,480,705 |
|
Funds purchased and repurchase
agreements |
|
1,599,724 |
|
|
|
2,270,377 |
|
Other borrowings |
|
4,735,885 |
|
|
|
4,736,908 |
|
Subordinated debentures |
|
131,148 |
|
|
|
131,205 |
|
Accrued interest, taxes and
expense |
|
268,449 |
|
|
|
296,870 |
|
Due on unsettled securities
purchases |
|
262,492 |
|
|
|
147,470 |
|
Derivative contracts, net |
|
510,483 |
|
|
|
554,900 |
|
Other
liabilities |
|
557,167 |
|
|
|
484,849 |
|
TOTAL LIABILITIES |
|
40,646,095 |
|
|
|
43,103,284 |
|
Shareholders' equity: |
|
|
|
Capital, surplus and retained earnings |
|
5,603,340 |
|
|
|
5,519,604 |
|
Accumulated other comprehensive loss |
|
(728,554 |
) |
|
|
(836,955 |
) |
TOTAL SHAREHOLDERS' EQUITY |
|
4,874,786 |
|
|
|
4,682,649 |
|
Non-controlling interests |
|
3,241 |
|
|
|
4,709 |
|
TOTAL EQUITY |
|
4,878,027 |
|
|
|
4,687,358 |
|
TOTAL LIABILITIES AND EQUITY |
$ |
45,524,122 |
|
|
$ |
47,790,642 |
|
AVERAGE BALANCE SHEETS –
UNAUDITEDBOK FINANCIAL
CORPORATION(in thousands)
|
Three Months Ended |
|
Mar. 31, 2023 |
|
Dec. 31, 2022 |
|
Sep. 30, 2022 |
|
June 30, 2022 |
|
Mar. 31, 2022 |
ASSETS |
|
|
|
|
|
|
|
|
|
Interest-bearing cash and cash equivalents |
$ |
616,596 |
|
|
$ |
568,307 |
|
|
$ |
748,263 |
|
|
$ |
843,619 |
|
|
$ |
1,050,409 |
|
Trading securities |
|
3,031,969 |
|
|
|
3,086,985 |
|
|
|
3,178,068 |
|
|
|
4,166,954 |
|
|
|
8,537,390 |
|
Investment securities, net of
allowance |
|
2,473,796 |
|
|
|
2,535,305 |
|
|
|
2,593,989 |
|
|
|
610,983 |
|
|
|
195,198 |
|
Available for sale
securities |
|
11,738,693 |
|
|
|
10,953,851 |
|
|
|
10,306,257 |
|
|
|
12,258,072 |
|
|
|
13,092,422 |
|
Fair value option
securities |
|
300,372 |
|
|
|
92,012 |
|
|
|
36,846 |
|
|
|
54,832 |
|
|
|
75,539 |
|
Restricted equity
securities |
|
316,724 |
|
|
|
216,673 |
|
|
|
173,656 |
|
|
|
167,732 |
|
|
|
164,484 |
|
Residential mortgage loans
held for sale |
|
65,769 |
|
|
|
98,613 |
|
|
|
132,685 |
|
|
|
148,183 |
|
|
|
179,697 |
|
Loans: |
|
|
|
|
|
|
|
|
|
Commercial |
|
14,046,237 |
|
|
|
13,846,339 |
|
|
|
13,508,325 |
|
|
|
13,472,488 |
|
|
|
12,887,816 |
|
Commercial real estate |
|
4,757,362 |
|
|
|
4,488,091 |
|
|
|
4,434,650 |
|
|
|
4,061,129 |
|
|
|
4,059,148 |
|
Loans to individuals |
|
3,672,648 |
|
|
|
3,641,574 |
|
|
|
3,656,257 |
|
|
|
3,524,097 |
|
|
|
3,516,698 |
|
Total loans |
|
22,476,247 |
|
|
|
21,976,004 |
|
|
|
21,599,232 |
|
|
|
21,057,714 |
|
|
|
20,463,662 |
|
Allowance for loan losses |
|
(238,909 |
) |
|
|
(242,450 |
) |
|
|
(241,136 |
) |
|
|
(246,064 |
) |
|
|
(254,191 |
) |
Loans, net of allowance |
|
22,237,338 |
|
|
|
21,733,554 |
|
|
|
21,358,096 |
|
|
|
20,811,650 |
|
|
|
20,209,471 |
|
Total earning assets |
|
40,781,257 |
|
|
|
39,285,300 |
|
|
|
38,527,860 |
|
|
|
39,062,025 |
|
|
|
43,504,610 |
|
Cash and due from banks |
|
857,771 |
|
|
|
865,796 |
|
|
|
821,801 |
|
|
|
822,599 |
|
|
|
790,440 |
|
Derivative contracts, net |
|
546,018 |
|
|
|
1,239,717 |
|
|
|
2,019,905 |
|
|
|
3,051,429 |
|
|
|
2,126,282 |
|
Cash surrender value of
bank-owned life insurance |
|
408,124 |
|
|
|
406,826 |
|
|
|
410,667 |
|
|
|
408,489 |
|
|
|
406,379 |
|
Receivable on unsettled
securities sales |
|
177,312 |
|
|
|
194,996 |
|
|
|
219,113 |
|
|
|
457,165 |
|
|
|
375,616 |
|
Other
assets |
|
3,211,986 |
|
|
|
3,216,983 |
|
|
|
3,119,856 |
|
|
|
3,486,691 |
|
|
|
3,357,747 |
|
TOTAL ASSETS |
$ |
45,982,468 |
|
|
$ |
45,209,618 |
|
|
$ |
45,119,202 |
|
|
$ |
47,288,398 |
|
|
$ |
50,561,074 |
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY |
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
Demand |
$ |
12,406,408 |
|
|
$ |
14,176,189 |
|
|
$ |
15,105,305 |
|
|
$ |
15,202,597 |
|
|
$ |
15,062,282 |
|
Interest-bearing transaction |
|
18,639,900 |
|
|
|
18,898,315 |
|
|
|
19,556,806 |
|
|
|
21,037,294 |
|
|
|
22,763,479 |
|
Savings |
|
958,443 |
|
|
|
969,275 |
|
|
|
978,596 |
|
|
|
981,493 |
|
|
|
947,407 |
|
Time |
|
1,477,720 |
|
|
|
1,417,606 |
|
|
|
1,409,069 |
|
|
|
1,373,036 |
|
|
|
1,589,039 |
|
Total deposits |
|
33,482,471 |
|
|
|
35,461,385 |
|
|
|
37,049,776 |
|
|
|
38,594,420 |
|
|
|
40,362,207 |
|
Funds purchased and repurchase
agreements |
|
1,759,237 |
|
|
|
1,046,447 |
|
|
|
800,759 |
|
|
|
1,224,134 |
|
|
|
2,004,466 |
|
Other borrowings |
|
4,512,280 |
|
|
|
2,523,195 |
|
|
|
1,528,887 |
|
|
|
1,301,358 |
|
|
|
1,148,440 |
|
Subordinated debentures |
|
131,166 |
|
|
|
131,180 |
|
|
|
131,199 |
|
|
|
131,219 |
|
|
|
131,228 |
|
Derivative contracts, net |
|
428,023 |
|
|
|
445,105 |
|
|
|
105,221 |
|
|
|
535,574 |
|
|
|
682,435 |
|
Due on unsettled securities
purchases |
|
316,738 |
|
|
|
575,957 |
|
|
|
331,428 |
|
|
|
380,332 |
|
|
|
519,097 |
|
Other
liabilities |
|
511,530 |
|
|
|
408,029 |
|
|
|
396,510 |
|
|
|
389,031 |
|
|
|
565,350 |
|
TOTAL LIABILITIES |
|
41,141,445 |
|
|
|
40,591,298 |
|
|
|
40,343,780 |
|
|
|
42,556,068 |
|
|
|
45,413,223 |
|
Total
equity |
|
4,841,023 |
|
|
|
4,618,320 |
|
|
|
4,775,422 |
|
|
|
4,732,330 |
|
|
|
5,147,851 |
|
TOTAL LIABILITIES AND EQUITY |
$ |
45,982,468 |
|
|
$ |
45,209,618 |
|
|
$ |
45,119,202 |
|
|
$ |
47,288,398 |
|
|
$ |
50,561,074 |
|
STATEMENTS OF EARNINGS –
UNAUDITEDBOK FINANCIAL
CORPORATION(in thousands, except per share data)
|
Three Months Ended |
|
March 31, |
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
Interest revenue |
$ |
516,729 |
|
|
$ |
283,099 |
|
Interest expense |
|
164,381 |
|
|
|
14,688 |
|
Net interest revenue |
|
352,348 |
|
|
|
268,411 |
|
Provision for credit losses |
|
16,000 |
|
|
|
— |
|
Net interest revenue after provision for credit
losses |
|
336,348 |
|
|
|
268,411 |
|
Other operating revenue: |
|
|
|
Brokerage and trading revenue |
|
52,396 |
|
|
|
(27,079 |
) |
Transaction card revenue |
|
25,621 |
|
|
|
24,216 |
|
Fiduciary and asset management revenue |
|
50,657 |
|
|
|
46,399 |
|
Deposit service charges and fees |
|
25,968 |
|
|
|
27,004 |
|
Mortgage banking revenue |
|
14,367 |
|
|
|
16,650 |
|
Other revenue |
|
16,970 |
|
|
|
10,445 |
|
Total fees and commissions |
|
185,979 |
|
|
|
97,635 |
|
Other gains (losses), net |
|
2,251 |
|
|
|
(1,644 |
) |
Loss on derivatives, net |
|
(1,344 |
) |
|
|
(46,981 |
) |
Loss on fair value option securities, net |
|
(2,962 |
) |
|
|
(11,201 |
) |
Change in fair value of mortgage servicing rights |
|
(6,059 |
) |
|
|
49,110 |
|
Gain on available for sale securities, net |
|
— |
|
|
|
937 |
|
Total other operating revenue |
|
177,865 |
|
|
|
87,856 |
|
Other operating expense: |
|
|
|
Personnel |
|
182,145 |
|
|
|
159,228 |
|
Business promotion |
|
8,569 |
|
|
|
6,513 |
|
Professional fees and services |
|
13,048 |
|
|
|
11,413 |
|
Net occupancy and equipment |
|
28,459 |
|
|
|
30,855 |
|
Insurance |
|
7,315 |
|
|
|
4,283 |
|
Data processing and communications |
|
44,802 |
|
|
|
39,836 |
|
Printing, postage and supplies |
|
3,893 |
|
|
|
3,689 |
|
Amortization of intangible assets |
|
3,391 |
|
|
|
3,964 |
|
Mortgage banking costs |
|
5,782 |
|
|
|
7,877 |
|
Other expense |
|
8,408 |
|
|
|
9,960 |
|
Total other operating expense |
|
305,812 |
|
|
|
277,618 |
|
|
|
|
|
Net income before
taxes |
|
208,401 |
|
|
|
78,649 |
|
Federal
and state income taxes |
|
45,905 |
|
|
|
16,197 |
|
|
|
|
|
Net
income |
|
162,496 |
|
|
|
62,452 |
|
Net
income (loss) attributable to non-controlling interests |
|
128 |
|
|
|
(36 |
) |
Net income attributable to BOK Financial Corporation
shareholders |
$ |
162,368 |
|
|
$ |
62,488 |
|
|
|
|
|
Average shares
outstanding: |
|
|
|
Basic |
|
66,331,775 |
|
|
|
67,812,400 |
|
Diluted |
|
66,331,775 |
|
|
|
67,813,851 |
|
|
|
|
|
Net income per
share: |
|
|
|
Basic |
$ |
2.43 |
|
|
$ |
0.91 |
|
Diluted |
$ |
2.43 |
|
|
$ |
0.91 |
|
QUARTERLY EARNINGS TREND –
UNAUDITEDBOK FINANCIAL
CORPORATION(in thousands, except ratio and per share
data)
|
Three Months Ended |
|
Mar. 31, 2023 |
|
Dec. 31, 2022 |
|
Sep. 30, 2022 |
|
June 30, 2022 |
|
Mar. 31, 2022 |
|
|
|
|
|
|
|
|
|
|
Interest revenue |
$ |
516,729 |
|
|
$ |
451,606 |
|
|
$ |
363,150 |
|
|
$ |
294,247 |
|
|
$ |
283,099 |
|
Interest expense |
|
164,381 |
|
|
|
98,980 |
|
|
|
46,825 |
|
|
|
20,229 |
|
|
|
14,688 |
|
Net interest revenue |
|
352,348 |
|
|
|
352,626 |
|
|
|
316,325 |
|
|
|
274,018 |
|
|
|
268,411 |
|
Provision for credit losses |
|
16,000 |
|
|
|
15,000 |
|
|
|
15,000 |
|
|
|
— |
|
|
|
— |
|
Net interest revenue after provision for credit
losses |
|
336,348 |
|
|
|
337,626 |
|
|
|
301,325 |
|
|
|
274,018 |
|
|
|
268,411 |
|
Other operating revenue: |
|
|
|
|
|
|
|
|
|
Brokerage and trading revenue |
|
52,396 |
|
|
|
63,008 |
|
|
|
61,006 |
|
|
|
44,043 |
|
|
|
(27,079 |
) |
Transaction card revenue |
|
25,621 |
|
|
|
27,136 |
|
|
|
25,974 |
|
|
|
26,940 |
|
|
|
24,216 |
|
Fiduciary and asset management revenue |
|
50,657 |
|
|
|
49,899 |
|
|
|
50,190 |
|
|
|
49,838 |
|
|
|
46,399 |
|
Deposit service charges and fees |
|
25,968 |
|
|
|
26,429 |
|
|
|
28,703 |
|
|
|
28,500 |
|
|
|
27,004 |
|
Mortgage banking revenue |
|
14,367 |
|
|
|
10,065 |
|
|
|
11,282 |
|
|
|
11,368 |
|
|
|
16,650 |
|
Other revenue |
|
16,970 |
|
|
|
17,034 |
|
|
|
15,479 |
|
|
|
12,684 |
|
|
|
10,445 |
|
Total fees and commissions |
|
185,979 |
|
|
|
193,571 |
|
|
|
192,634 |
|
|
|
173,373 |
|
|
|
97,635 |
|
Other gains (losses), net |
|
2,251 |
|
|
|
8,427 |
|
|
|
979 |
|
|
|
(7,639 |
) |
|
|
(1,644 |
) |
Gain (loss) on derivatives, net |
|
(1,344 |
) |
|
|
4,548 |
|
|
|
(17,009 |
) |
|
|
(13,569 |
) |
|
|
(46,981 |
) |
Loss on fair value option securities, net |
|
(2,962 |
) |
|
|
(2,568 |
) |
|
|
(4,368 |
) |
|
|
(2,221 |
) |
|
|
(11,201 |
) |
Change in fair value of mortgage servicing rights |
|
(6,059 |
) |
|
|
(2,904 |
) |
|
|
16,570 |
|
|
|
17,485 |
|
|
|
49,110 |
|
Gain (loss) on available for sale securities, net |
|
— |
|
|
|
(3,988 |
) |
|
|
892 |
|
|
|
1,188 |
|
|
|
937 |
|
Total other operating revenue |
|
177,865 |
|
|
|
197,086 |
|
|
|
189,698 |
|
|
|
168,617 |
|
|
|
87,856 |
|
Other operating expense: |
|
|
|
|
|
|
|
|
|
Personnel |
|
182,145 |
|
|
|
186,419 |
|
|
|
170,348 |
|
|
|
154,923 |
|
|
|
159,228 |
|
Business promotion |
|
8,569 |
|
|
|
7,470 |
|
|
|
6,127 |
|
|
|
6,325 |
|
|
|
6,513 |
|
Charitable contributions to BOKF Foundation |
|
— |
|
|
|
2,500 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Professional fees and services |
|
13,048 |
|
|
|
18,365 |
|
|
|
14,089 |
|
|
|
12,475 |
|
|
|
11,413 |
|
Net occupancy and equipment |
|
28,459 |
|
|
|
29,227 |
|
|
|
29,296 |
|
|
|
27,489 |
|
|
|
30,855 |
|
Insurance |
|
7,315 |
|
|
|
4,677 |
|
|
|
4,306 |
|
|
|
4,728 |
|
|
|
4,283 |
|
Data processing and communications |
|
44,802 |
|
|
|
43,048 |
|
|
|
41,743 |
|
|
|
41,280 |
|
|
|
39,836 |
|
Printing, postage and supplies |
|
3,893 |
|
|
|
3,890 |
|
|
|
4,349 |
|
|
|
3,929 |
|
|
|
3,689 |
|
Amortization of intangible assets |
|
3,391 |
|
|
|
3,736 |
|
|
|
3,943 |
|
|
|
4,049 |
|
|
|
3,964 |
|
Mortgage banking costs |
|
5,782 |
|
|
|
9,016 |
|
|
|
9,504 |
|
|
|
9,437 |
|
|
|
7,877 |
|
Other expense |
|
8,408 |
|
|
|
10,108 |
|
|
|
11,046 |
|
|
|
9,020 |
|
|
|
9,960 |
|
Total other operating expense |
|
305,812 |
|
|
|
318,456 |
|
|
|
294,751 |
|
|
|
273,655 |
|
|
|
277,618 |
|
Net income before
taxes |
|
208,401 |
|
|
|
216,256 |
|
|
|
196,272 |
|
|
|
168,980 |
|
|
|
78,649 |
|
Federal
and state income taxes |
|
45,905 |
|
|
|
47,864 |
|
|
|
39,681 |
|
|
|
36,122 |
|
|
|
16,197 |
|
Net income |
|
162,496 |
|
|
|
168,392 |
|
|
|
156,591 |
|
|
|
132,858 |
|
|
|
62,452 |
|
Net
income (loss) attributable to non-controlling interests |
|
128 |
|
|
|
(37 |
) |
|
|
81 |
|
|
|
12 |
|
|
|
(36 |
) |
Net income attributable to BOK Financial Corporation
shareholders |
$ |
162,368 |
|
|
$ |
168,429 |
|
|
$ |
156,510 |
|
|
$ |
132,846 |
|
|
$ |
62,488 |
|
|
|
|
|
|
|
|
|
|
|
Average shares
outstanding: |
|
|
|
|
|
|
|
|
|
Basic |
|
66,331,775 |
|
|
|
66,627,955 |
|
|
|
67,003,199 |
|
|
|
67,453,748 |
|
|
|
67,812,400 |
|
Diluted |
|
66,331,775 |
|
|
|
66,627,955 |
|
|
|
67,004,623 |
|
|
|
67,455,172 |
|
|
|
67,813,851 |
|
Net income per
share: |
|
|
|
|
|
|
|
|
|
Basic |
$ |
2.43 |
|
|
$ |
2.51 |
|
|
$ |
2.32 |
|
|
$ |
1.96 |
|
|
$ |
0.91 |
|
Diluted |
$ |
2.43 |
|
|
$ |
2.51 |
|
|
$ |
2.32 |
|
|
$ |
1.96 |
|
|
$ |
0.91 |
|
FINANCIAL HIGHLIGHTS –
UNAUDITEDBOK FINANCIAL
CORPORATION(in thousands, except ratio and share data)
|
Three Months Ended |
|
Mar. 31, 2023 |
|
Dec. 31, 2022 |
|
Sep. 30, 2022 |
|
June 30, 2022 |
|
Mar. 31, 2022 |
Capital: |
|
|
|
|
|
|
|
|
|
Period-end shareholders' equity |
$ |
4,874,786 |
|
|
$ |
4,682,649 |
|
|
$ |
4,509,934 |
|
|
$ |
4,737,339 |
|
|
$ |
4,849,582 |
|
Risk weighted assets |
$ |
37,192,197 |
|
|
$ |
38,142,231 |
|
|
$ |
36,866,994 |
|
|
$ |
36,787,092 |
|
|
$ |
37,160,258 |
|
Risk-based capital ratios: |
|
|
|
|
|
|
|
|
|
Common equity tier 1 |
|
12.19 |
% |
|
|
11.69 |
% |
|
|
11.80 |
% |
|
|
11.61 |
% |
|
|
11.30 |
% |
Tier 1 |
|
12.20 |
% |
|
|
11.71 |
% |
|
|
11.82 |
% |
|
|
11.63 |
% |
|
|
11.31 |
% |
Total capital |
|
13.21 |
% |
|
|
12.67 |
% |
|
|
12.81 |
% |
|
|
12.59 |
% |
|
|
12.25 |
% |
Leverage ratio |
|
9.94 |
% |
|
|
9.91 |
% |
|
|
9.76 |
% |
|
|
9.12 |
% |
|
|
8.47 |
% |
Tangible common equity ratio1 |
|
8.46 |
% |
|
|
7.63 |
% |
|
|
7.96 |
% |
|
|
8.16 |
% |
|
|
8.13 |
% |
Adjusted tangible common equity ratio1 |
|
8.22 |
% |
|
|
7.36 |
% |
|
|
7.66 |
% |
|
|
8.10 |
% |
|
|
8.15 |
% |
|
|
|
|
|
|
|
|
|
|
Common
stock: |
|
|
|
|
|
|
|
|
|
Book value per share |
$ |
73.19 |
|
|
$ |
69.93 |
|
|
$ |
67.06 |
|
|
$ |
69.87 |
|
|
$ |
71.21 |
|
Tangible book value per share |
$ |
56.42 |
|
|
$ |
53.19 |
|
|
$ |
50.34 |
|
|
$ |
53.22 |
|
|
$ |
54.58 |
|
Market value per share: |
|
|
|
|
|
|
|
|
|
High |
$ |
106.47 |
|
|
$ |
110.28 |
|
|
$ |
95.51 |
|
|
$ |
94.76 |
|
|
$ |
119.59 |
|
Low |
$ |
80.00 |
|
|
$ |
88.46 |
|
|
$ |
69.82 |
|
|
$ |
74.03 |
|
|
$ |
93.76 |
|
Cash dividends paid |
$ |
36,006 |
|
|
$ |
36,188 |
|
|
$ |
35,661 |
|
|
$ |
35,892 |
|
|
$ |
36,093 |
|
Dividend payout ratio |
|
22.18 |
% |
|
|
21.49 |
% |
|
|
22.79 |
% |
|
|
27.02 |
% |
|
|
57.76 |
% |
Shares outstanding, net |
|
66,600,833 |
|
|
|
66,958,634 |
|
|
|
67,254,383 |
|
|
|
67,806,005 |
|
|
|
68,104,043 |
|
Stock buy-back program: |
|
|
|
|
|
|
|
|
|
Shares repurchased |
|
447,071 |
|
|
|
314,406 |
|
|
|
548,034 |
|
|
|
294,084 |
|
|
|
475,877 |
|
Amount |
$ |
44,100 |
|
|
$ |
32,429 |
|
|
$ |
49,980 |
|
|
$ |
24,404 |
|
|
$ |
48,074 |
|
Average price paid per share2 |
$ |
98.64 |
|
|
$ |
103.14 |
|
|
$ |
91.20 |
|
|
$ |
82.98 |
|
|
$ |
101.02 |
|
|
|
|
|
|
|
|
|
|
|
Performance ratios (quarter annualized): |
Return on average assets |
|
1.43 |
% |
|
|
1.48 |
% |
|
|
1.38 |
% |
|
|
1.13 |
% |
|
|
0.50 |
% |
Return on average equity |
|
13.61 |
% |
|
|
14.48 |
% |
|
|
13.01 |
% |
|
|
11.27 |
% |
|
|
4.93 |
% |
Net interest margin |
|
3.45 |
% |
|
|
3.54 |
% |
|
|
3.24 |
% |
|
|
2.76 |
% |
|
|
2.44 |
% |
Efficiency ratio |
|
56.38 |
% |
|
|
57.87 |
% |
|
|
57.35 |
% |
|
|
60.65 |
% |
|
|
75.07 |
% |
|
|
|
|
|
|
|
|
|
|
Reconciliation of non-GAAP measures: |
1 Tangible common equity ratio and adjusted tangible common equity
ratio: |
Total shareholders' equity |
$ |
4,874,786 |
|
|
$ |
4,682,649 |
|
|
$ |
4,509,934 |
|
|
$ |
4,737,339 |
|
|
$ |
4,849,582 |
|
Less: Goodwill and intangible assets, net |
|
1,117,438 |
|
|
|
1,120,880 |
|
|
|
1,124,582 |
|
|
|
1,128,493 |
|
|
|
1,132,510 |
|
Tangible common equity |
|
3,757,348 |
|
|
|
3,561,769 |
|
|
|
3,385,352 |
|
|
|
3,608,846 |
|
|
|
3,717,072 |
|
Add: Unrealized gain (loss) on investment securities, net |
|
(140,947 |
) |
|
|
(167,477 |
) |
|
|
(165,206 |
) |
|
|
(30,305 |
) |
|
|
6,778 |
|
Add: Tax effect on unrealized gain (loss) on investment securities,
net |
|
33,149 |
|
|
|
39,196 |
|
|
|
38,665 |
|
|
|
7,093 |
|
|
|
(1,586 |
) |
Adjusted tangible common equity |
$ |
3,649,550 |
|
|
$ |
3,433,488 |
|
|
$ |
3,258,811 |
|
|
$ |
3,585,634 |
|
|
$ |
3,722,264 |
|
|
|
|
|
|
|
|
|
|
|
Total assets |
$ |
45,524,122 |
|
|
$ |
47,790,642 |
|
|
$ |
43,645,446 |
|
|
$ |
45,377,072 |
|
|
$ |
46,826,507 |
|
Less: Goodwill and intangible assets, net |
|
1,117,438 |
|
|
|
1,120,880 |
|
|
|
1,124,582 |
|
|
|
1,128,493 |
|
|
|
1,132,510 |
|
Tangible assets |
$ |
44,406,684 |
|
|
$ |
46,669,762 |
|
|
$ |
42,520,864 |
|
|
$ |
44,248,579 |
|
|
$ |
45,693,997 |
|
|
|
|
|
|
|
|
|
|
|
Tangible common equity ratio |
|
8.46 |
% |
|
|
7.63 |
% |
|
|
7.96 |
% |
|
|
8.16 |
% |
|
|
8.13 |
% |
|
|
|
|
|
|
|
|
|
|
Adjusted tangible common equity ratio |
|
8.22 |
% |
|
|
7.36 |
% |
|
|
7.66 |
% |
|
|
8.10 |
% |
|
|
8.15 |
% |
Pre-provision net
revenue: |
|
|
|
|
|
|
|
|
|
Net income before taxes |
$ |
208,401 |
|
|
$ |
216,256 |
|
|
$ |
196,272 |
|
|
$ |
168,980 |
|
|
$ |
78,649 |
|
Provision for expected credit losses |
|
16,000 |
|
|
|
15,000 |
|
|
|
15,000 |
|
|
|
— |
|
|
|
— |
|
Net income (loss) attributable to non-controlling interests |
|
128 |
|
|
|
(37 |
) |
|
|
81 |
|
|
|
12 |
|
|
|
(36 |
) |
Pre-provision net revenue |
$ |
224,273 |
|
|
$ |
231,293 |
|
|
$ |
211,191 |
|
|
$ |
168,968 |
|
|
$ |
78,685 |
|
|
|
|
|
|
|
|
|
|
|
Other
data: |
|
|
|
|
|
|
|
|
|
Tax equivalent interest |
$ |
2,285 |
|
|
$ |
2,287 |
|
|
$ |
2,163 |
|
|
$ |
2,040 |
|
|
$ |
1,973 |
|
Net unrealized loss on available for sale securities |
$ |
(741,508 |
) |
|
$ |
(865,553 |
) |
|
$ |
(935,788 |
) |
|
$ |
(522,812 |
) |
|
$ |
(546,598 |
) |
|
|
|
|
|
|
|
|
|
|
Mortgage
banking: |
|
|
|
|
|
|
|
|
|
Mortgage production revenue |
$ |
(633 |
) |
|
$ |
(3,983 |
) |
|
$ |
(2,406 |
) |
|
$ |
(504 |
) |
|
$ |
5,055 |
|
|
|
|
|
|
|
|
|
|
|
Mortgage loans funded for sale |
$ |
138,624 |
|
|
$ |
141,090 |
|
|
$ |
260,210 |
|
|
$ |
360,237 |
|
|
$ |
418,866 |
|
Add: current period-end outstanding commitments |
|
71,693 |
|
|
|
45,492 |
|
|
|
75,779 |
|
|
|
106,004 |
|
|
|
160,260 |
|
Less: prior period end outstanding commitments |
|
45,492 |
|
|
|
75,779 |
|
|
|
106,004 |
|
|
|
160,260 |
|
|
|
171,412 |
|
Total mortgage production volume |
$ |
164,825 |
|
|
$ |
110,803 |
|
|
$ |
229,985 |
|
|
$ |
305,981 |
|
|
$ |
407,714 |
|
|
|
|
|
|
|
|
|
|
|
Mortgage loan refinances to mortgage loans funded for sale |
|
9 |
% |
|
|
10 |
% |
|
|
10 |
% |
|
|
19 |
% |
|
|
45 |
% |
Realized margin on funded mortgage loans |
(1.25)% |
|
(1.10)% |
|
(0.41)% |
|
|
0.88 |
% |
|
|
1.64 |
% |
Production revenue as a percentage of production volume |
(0.38)% |
|
(3.59)% |
|
(1.05)% |
|
(0.16)% |
|
|
1.24 |
% |
|
|
|
|
|
|
|
|
|
|
Mortgage servicing revenue |
$ |
15,000 |
|
|
$ |
14,048 |
|
|
$ |
13,688 |
|
|
$ |
11,872 |
|
|
$ |
11,595 |
|
Average outstanding principal balance of mortgage loans serviced
for others |
|
21,121,319 |
|
|
|
18,923,078 |
|
|
|
19,070,221 |
|
|
|
17,336,596 |
|
|
|
16,155,329 |
|
Average mortgage servicing revenue rates |
|
0.29 |
% |
|
|
0.29 |
% |
|
|
0.28 |
% |
|
|
0.27 |
% |
|
|
0.29 |
% |
|
|
|
|
|
|
|
|
|
|
Gain
(loss) on mortgage servicing rights, net of economic
hedge: |
Gain (loss) on mortgage hedge derivative contracts, net |
$ |
(1,711 |
) |
|
$ |
4,373 |
|
|
$ |
(17,027 |
) |
|
$ |
(13,639 |
) |
|
$ |
(46,694 |
) |
Loss on fair value option securities, net |
|
(2,962 |
) |
|
|
(2,568 |
) |
|
|
(4,368 |
) |
|
|
(2,221 |
) |
|
|
(11,201 |
) |
Gain (loss) on economic hedge of mortgage servicing rights |
|
(4,673 |
) |
|
|
1,805 |
|
|
|
(21,395 |
) |
|
|
(15,860 |
) |
|
|
(57,895 |
) |
Gain (loss) on changes in fair value of mortgage servicing
rights |
|
(6,059 |
) |
|
|
(2,904 |
) |
|
|
16,570 |
|
|
|
17,485 |
|
|
|
49,110 |
|
Gain (loss) on changes in fair value of mortgage servicing rights,
net of economic hedges, included in other operating revenue |
|
(10,732 |
) |
|
|
(1,099 |
) |
|
|
(4,825 |
) |
|
|
1,625 |
|
|
|
(8,785 |
) |
Net interest revenue on fair value option securities3 |
|
187 |
|
|
|
(118 |
) |
|
|
29 |
|
|
|
275 |
|
|
|
383 |
|
Total economic benefit (cost) of changes in the fair value of
mortgage servicing rights, net of economic hedges |
$ |
(10,545 |
) |
|
$ |
(1,217 |
) |
|
$ |
(4,796 |
) |
|
$ |
1,900 |
|
|
$ |
(8,402 |
) |
2 Excludes 1 percent excise tax on corporate stock
repurchases.3 Actual interest earned on fair value option
securities less internal transfer-priced cost of funds.
LOANS TREND –
UNAUDITEDBOK FINANCIAL
CORPORATION(In thousands)
|
|
Mar. 31, 2023 |
|
Dec. 31, 2022 |
|
Sep. 30, 2022 |
|
June 30, 2022 |
|
Mar. 31, 2022 |
Commercial: |
|
|
|
|
|
|
|
|
|
|
Healthcare |
|
$ |
3,899,341 |
|
$ |
3,845,017 |
|
$ |
3,826,623 |
|
$ |
3,696,963 |
|
$ |
3,441,732 |
Services |
|
|
3,563,702 |
|
|
3,431,521 |
|
|
3,280,925 |
|
|
3,421,493 |
|
|
3,351,495 |
Energy |
|
|
3,398,057 |
|
|
3,424,790 |
|
|
3,371,588 |
|
|
3,393,072 |
|
|
3,197,667 |
General business |
|
|
3,356,249 |
|
|
3,511,171 |
|
|
3,148,783 |
|
|
3,110,309 |
|
|
3,029,660 |
Total commercial |
|
|
14,217,349 |
|
|
14,212,499 |
|
|
13,627,919 |
|
|
13,621,837 |
|
|
13,020,554 |
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate: |
|
|
|
|
|
|
|
|
|
|
Multifamily |
|
|
1,363,881 |
|
|
1,212,883 |
|
|
1,126,700 |
|
|
878,565 |
|
|
867,288 |
Industrial |
|
|
1,309,435 |
|
|
1,221,501 |
|
|
1,103,905 |
|
|
953,626 |
|
|
911,928 |
Office |
|
|
1,045,700 |
|
|
1,053,331 |
|
|
1,086,615 |
|
|
1,100,115 |
|
|
1,097,516 |
Retail |
|
|
618,264 |
|
|
620,518 |
|
|
635,021 |
|
|
637,304 |
|
|
667,561 |
Residential construction and land development |
|
|
102,828 |
|
|
95,684 |
|
|
91,690 |
|
|
111,575 |
|
|
120,506 |
Other commercial real estate |
|
|
375,208 |
|
|
402,860 |
|
|
429,980 |
|
|
424,963 |
|
|
436,157 |
Total commercial real estate |
|
|
4,815,316 |
|
|
4,606,777 |
|
|
4,473,911 |
|
|
4,106,148 |
|
|
4,100,956 |
|
|
|
|
|
|
|
|
|
|
|
Loans to individuals: |
|
|
|
|
|
|
|
|
|
|
Residential mortgage |
|
|
1,926,027 |
|
|
1,890,784 |
|
|
1,851,836 |
|
|
1,784,729 |
|
|
1,723,506 |
Residential mortgages guaranteed by U.S. government agencies |
|
|
224,753 |
|
|
245,940 |
|
|
262,466 |
|
|
293,838 |
|
|
322,581 |
Personal |
|
|
1,566,608 |
|
|
1,601,150 |
|
|
1,574,325 |
|
|
1,484,596 |
|
|
1,506,832 |
Total loans to individuals |
|
|
3,717,388 |
|
|
3,737,874 |
|
|
3,688,627 |
|
|
3,563,163 |
|
|
3,552,919 |
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
22,750,053 |
|
$ |
22,557,150 |
|
$ |
21,790,457 |
|
$ |
21,291,148 |
|
$ |
20,674,429 |
LOANS MANAGED BY PRINCIPAL MARKET AREA
– UNAUDITEDBOK FINANCIAL
CORPORATION(in thousands)
|
Mar. 31, 2023 |
|
Dec. 31, 2022 |
|
Sep. 30, 2022 |
|
June 30, 2022 |
|
Mar. 31, 2022 |
|
|
|
|
|
|
|
|
|
|
Texas: |
|
|
|
|
|
|
|
|
|
Commercial |
$ |
7,103,166 |
|
$ |
6,878,618 |
|
$ |
6,644,890 |
|
$ |
6,645,698 |
|
$ |
6,286,125 |
Commercial real estate |
|
1,675,831 |
|
|
1,555,508 |
|
|
1,448,590 |
|
|
1,339,452 |
|
|
1,345,105 |
Loans to individuals |
|
992,343 |
|
|
982,700 |
|
|
970,459 |
|
|
934,856 |
|
|
957,320 |
Total Texas |
|
9,771,340 |
|
|
9,416,826 |
|
|
9,063,939 |
|
|
8,920,006 |
|
|
8,588,550 |
|
|
|
|
|
|
|
|
|
|
Oklahoma: |
|
|
|
|
|
|
|
|
|
Commercial |
|
3,178,934 |
|
|
3,382,577 |
|
|
3,108,608 |
|
|
3,139,093 |
|
|
2,936,530 |
Commercial real estate |
|
574,708 |
|
|
582,109 |
|
|
608,856 |
|
|
576,458 |
|
|
552,310 |
Loans to individuals |
|
2,049,472 |
|
|
2,077,124 |
|
|
2,054,362 |
|
|
1,982,247 |
|
|
1,977,886 |
Total Oklahoma |
|
5,803,114 |
|
|
6,041,810 |
|
|
5,771,826 |
|
|
5,697,798 |
|
|
5,466,726 |
|
|
|
|
|
|
|
|
|
|
Colorado: |
|
|
|
|
|
|
|
|
|
Commercial |
|
2,148,066 |
|
|
2,149,199 |
|
|
2,117,181 |
|
|
2,082,688 |
|
|
2,006,357 |
Commercial real estate |
|
646,537 |
|
|
613,912 |
|
|
565,057 |
|
|
473,231 |
|
|
480,740 |
Loans to individuals |
|
231,368 |
|
|
241,902 |
|
|
237,981 |
|
|
234,105 |
|
|
236,125 |
Total Colorado |
|
3,025,971 |
|
|
3,005,013 |
|
|
2,920,219 |
|
|
2,790,024 |
|
|
2,723,222 |
|
|
|
|
|
|
|
|
|
|
Arizona: |
|
|
|
|
|
|
|
|
|
Commercial |
|
1,115,973 |
|
|
1,124,289 |
|
|
1,103,000 |
|
|
1,085,401 |
|
|
1,086,195 |
Commercial real estate |
|
881,465 |
|
|
860,947 |
|
|
850,319 |
|
|
766,767 |
|
|
719,970 |
Loans to individuals |
|
240,556 |
|
|
229,872 |
|
|
225,981 |
|
|
212,870 |
|
|
190,746 |
Total Arizona |
|
2,237,994 |
|
|
2,215,108 |
|
|
2,179,300 |
|
|
2,065,038 |
|
|
1,996,911 |
|
|
|
|
|
|
|
|
|
|
Kansas/Missouri: |
|
|
|
|
|
|
|
|
|
Commercial |
|
318,782 |
|
|
310,715 |
|
|
307,456 |
|
|
338,910 |
|
|
336,966 |
Commercial real estate |
|
489,951 |
|
|
479,968 |
|
|
466,955 |
|
|
458,157 |
|
|
436,740 |
Loans to individuals |
|
129,580 |
|
|
131,307 |
|
|
125,039 |
|
|
125,584 |
|
|
121,247 |
Total Kansas/Missouri |
|
938,313 |
|
|
921,990 |
|
|
899,450 |
|
|
922,651 |
|
|
894,953 |
|
|
|
|
|
|
|
|
|
|
New Mexico: |
|
|
|
|
|
|
|
|
|
Commercial |
|
280,945 |
|
|
263,349 |
|
|
258,754 |
|
|
253,825 |
|
|
272,246 |
Commercial real estate |
|
449,715 |
|
|
417,008 |
|
|
426,367 |
|
|
431,606 |
|
|
504,632 |
Loans to individuals |
|
65,770 |
|
|
67,163 |
|
|
68,095 |
|
|
67,026 |
|
|
63,299 |
Total New Mexico |
|
796,430 |
|
|
747,520 |
|
|
753,216 |
|
|
752,457 |
|
|
840,177 |
|
|
|
|
|
|
|
|
|
|
Arkansas: |
|
|
|
|
|
|
|
|
|
Commercial |
|
71,483 |
|
|
103,752 |
|
|
88,030 |
|
|
76,222 |
|
|
96,135 |
Commercial real estate |
|
97,109 |
|
|
97,325 |
|
|
107,767 |
|
|
60,477 |
|
|
61,459 |
Loans to individuals |
|
8,299 |
|
|
7,806 |
|
|
6,710 |
|
|
6,475 |
|
|
6,296 |
Total Arkansas |
|
176,891 |
|
|
208,883 |
|
|
202,507 |
|
|
143,174 |
|
|
163,890 |
|
|
|
|
|
|
|
|
|
|
TOTAL
BOK FINANCIAL |
$ |
22,750,053 |
|
$ |
22,557,150 |
|
$ |
21,790,457 |
|
$ |
21,291,148 |
|
$ |
20,674,429 |
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)
|
Mar. 31, 2023 |
|
Dec. 31, 2022 |
|
Sep. 30, 2022 |
|
June 30, 2022 |
|
Mar. 31, 2022 |
Oklahoma: |
|
|
|
|
|
|
|
|
|
Demand |
$ |
4,369,944 |
|
$ |
4,585,963 |
|
$ |
5,143,405 |
|
$ |
5,422,593 |
|
$ |
5,205,806 |
Interest-bearing: |
|
|
|
|
|
|
|
|
|
Transaction |
|
9,468,100 |
|
|
9,475,528 |
|
|
9,619,419 |
|
|
10,240,378 |
|
|
11,410,709 |
Savings |
|
564,829 |
|
|
555,407 |
|
|
558,256 |
|
|
561,413 |
|
|
558,634 |
Time |
|
942,787 |
|
|
794,002 |
|
|
776,306 |
|
|
678,127 |
|
|
817,744 |
Total interest-bearing |
|
10,975,716 |
|
|
10,824,937 |
|
|
10,953,981 |
|
|
11,479,918 |
|
|
12,787,087 |
Total Oklahoma |
|
15,345,660 |
|
|
15,410,900 |
|
|
16,097,386 |
|
|
16,902,511 |
|
|
17,992,893 |
|
|
|
|
|
|
|
|
|
|
Texas: |
|
|
|
|
|
|
|
|
|
Demand |
|
3,154,789 |
|
|
3,873,759 |
|
|
4,609,255 |
|
|
4,670,535 |
|
|
4,552,001 |
Interest-bearing: |
|
|
|
|
|
|
|
|
|
Transaction |
|
4,366,932 |
|
|
4,878,482 |
|
|
4,781,920 |
|
|
5,344,326 |
|
|
4,963,118 |
Savings |
|
175,012 |
|
|
178,356 |
|
|
179,049 |
|
|
183,708 |
|
|
182,536 |
Time |
|
321,774 |
|
|
356,538 |
|
|
343,015 |
|
|
333,038 |
|
|
329,931 |
Total interest-bearing |
|
4,863,718 |
|
|
5,413,376 |
|
|
5,303,984 |
|
|
5,861,072 |
|
|
5,475,585 |
Total Texas |
|
8,018,507 |
|
|
9,287,135 |
|
|
9,913,239 |
|
|
10,531,607 |
|
|
10,027,586 |
|
|
|
|
|
|
|
|
|
|
Colorado: |
|
|
|
|
|
|
|
|
|
Demand |
|
1,869,194 |
|
|
2,462,891 |
|
|
2,510,179 |
|
|
2,799,798 |
|
|
2,673,352 |
Interest-bearing: |
|
|
|
|
|
|
|
|
|
Transaction |
|
2,126,435 |
|
|
2,123,218 |
|
|
2,221,796 |
|
|
2,277,563 |
|
|
2,387,304 |
Savings |
|
72,548 |
|
|
77,961 |
|
|
80,542 |
|
|
82,976 |
|
|
81,762 |
Time |
|
128,583 |
|
|
135,043 |
|
|
151,064 |
|
|
160,795 |
|
|
165,401 |
Total interest-bearing |
|
2,327,566 |
|
|
2,336,222 |
|
|
2,453,402 |
|
|
2,521,334 |
|
|
2,634,467 |
Total Colorado |
|
4,196,760 |
|
|
4,799,113 |
|
|
4,963,581 |
|
|
5,321,132 |
|
|
5,307,819 |
|
|
|
|
|
|
|
|
|
|
New Mexico: |
|
|
|
|
|
|
|
|
|
Demand |
|
997,364 |
|
|
1,141,958 |
|
|
1,296,410 |
|
|
1,347,600 |
|
|
1,271,264 |
Interest-bearing: |
|
|
|
|
|
|
|
|
|
Transaction |
|
674,328 |
|
|
691,915 |
|
|
717,492 |
|
|
845,442 |
|
|
888,257 |
Savings |
|
111,771 |
|
|
112,430 |
|
|
113,056 |
|
|
115,660 |
|
|
115,457 |
Time |
|
137,875 |
|
|
133,625 |
|
|
142,856 |
|
|
148,532 |
|
|
156,140 |
Total interest-bearing |
|
923,974 |
|
|
937,970 |
|
|
973,404 |
|
|
1,109,634 |
|
|
1,159,854 |
Total New Mexico |
|
1,921,338 |
|
|
2,079,928 |
|
|
2,269,814 |
|
|
2,457,234 |
|
|
2,431,118 |
|
|
|
|
|
|
|
|
|
|
Arizona: |
|
|
|
|
|
|
|
|
|
Demand |
|
780,051 |
|
|
844,327 |
|
|
903,296 |
|
|
901,543 |
|
|
947,775 |
Interest-bearing: |
|
|
|
|
|
|
|
|
|
Transaction |
|
687,527 |
|
|
739,628 |
|
|
788,142 |
|
|
792,269 |
|
|
810,896 |
Savings |
|
16,993 |
|
|
16,496 |
|
|
18,258 |
|
|
17,999 |
|
|
18,122 |
Time |
|
27,755 |
|
|
24,846 |
|
|
26,704 |
|
|
28,774 |
|
|
27,259 |
Total interest-bearing |
|
732,275 |
|
|
780,970 |
|
|
833,104 |
|
|
839,042 |
|
|
856,277 |
Total Arizona |
|
1,512,326 |
|
|
1,625,297 |
|
|
1,736,400 |
|
|
1,740,585 |
|
|
1,804,052 |
|
|
|
|
|
|
|
|
|
|
Kansas/Missouri: |
|
|
|
|
|
|
|
|
|
Demand |
|
393,321 |
|
|
436,259 |
|
|
479,459 |
|
|
537,143 |
|
|
553,345 |
Interest-bearing: |
|
|
|
|
|
|
|
|
|
Transaction |
|
1,040,009 |
|
|
694,163 |
|
|
747,981 |
|
|
913,921 |
|
|
1,107,525 |
Savings |
|
18,292 |
|
|
20,678 |
|
|
19,375 |
|
|
19,943 |
|
|
19,589 |
Time |
|
13,061 |
|
|
12,963 |
|
|
13,258 |
|
|
13,962 |
|
|
11,527 |
Total interest-bearing |
|
1,071,362 |
|
|
727,804 |
|
|
780,614 |
|
|
947,826 |
|
|
1,138,641 |
Total Kansas/Missouri |
|
1,464,683 |
|
|
1,164,063 |
|
|
1,260,073 |
|
|
1,484,969 |
|
|
1,691,986 |
|
|
|
|
|
|
|
|
|
|
Arkansas: |
|
|
|
|
|
|
|
|
|
Demand |
|
42,312 |
|
|
50,180 |
|
|
43,111 |
|
|
41,084 |
|
|
38,798 |
Interest-bearing: |
|
|
|
|
|
|
|
|
|
Transaction |
|
71,158 |
|
|
56,181 |
|
|
123,273 |
|
|
130,300 |
|
|
122,020 |
Savings |
|
3,228 |
|
|
3,083 |
|
|
3,098 |
|
|
3,125 |
|
|
3,265 |
Time |
|
4,775 |
|
|
4,825 |
|
|
5,940 |
|
|
6,371 |
|
|
6,414 |
Total interest-bearing |
|
79,161 |
|
|
64,089 |
|
|
132,311 |
|
|
139,796 |
|
|
131,699 |
Total Arkansas |
|
121,473 |
|
|
114,269 |
|
|
175,422 |
|
|
180,880 |
|
|
170,497 |
|
|
|
|
|
|
|
|
|
|
TOTAL
BOK FINANCIAL |
$ |
32,580,747 |
|
$ |
34,480,705 |
|
$ |
36,415,915 |
|
$ |
38,618,918 |
|
$ |
39,425,951 |
NET INTEREST MARGIN TREND –
UNAUDITEDBOK FINANCIAL
CORPORATION
|
Three Months Ended |
|
Mar. 31, 2023 |
|
Dec. 31, 2022 |
|
Sep. 30, 2022 |
|
June 30, 2022 |
|
Mar. 31, 2022 |
|
|
|
|
|
|
|
|
|
|
TAX-EQUIVALENT ASSETS
YIELDS |
|
|
|
|
|
|
|
|
|
Interest-bearing cash and cash
equivalents |
4.28% |
|
4.06% |
|
1.87% |
|
0.83% |
|
0.18% |
Trading securities |
4.52% |
|
3.70% |
|
2.72% |
|
2.00% |
|
1.71% |
Investment securities, net of
allowance |
1.46% |
|
1.46% |
|
1.42% |
|
2.35% |
|
5.07% |
Available for sale
securities |
2.87% |
|
2.54% |
|
2.21% |
|
1.84% |
|
1.77% |
Fair value option
securities |
5.17% |
|
4.40% |
|
2.98% |
|
2.92% |
|
2.81% |
Restricted equity
securities |
7.34% |
|
5.70% |
|
6.23% |
|
3.30% |
|
2.69% |
Residential mortgage loans
held for sale |
5.79% |
|
5.56% |
|
5.05% |
|
4.22% |
|
3.11% |
Loans |
6.67% |
|
5.99% |
|
4.89% |
|
3.92% |
|
3.57% |
Allowance for loan losses |
|
|
|
|
|
|
|
|
|
Loans, net of allowance |
6.74% |
|
6.06% |
|
4.94% |
|
3.96% |
|
3.61% |
Total tax-equivalent
yield on earning assets |
5.06% |
|
4.53% |
|
3.71% |
|
2.96% |
|
2.58% |
|
|
|
|
|
|
|
|
|
|
COST OF
INTEREST-BEARING LIABILITIES |
|
|
|
|
|
|
|
|
Interest-bearing deposits: |
|
|
|
|
|
|
|
|
|
Interest-bearing transaction |
1.91% |
|
1.28% |
|
0.63% |
|
0.22% |
|
0.10% |
Savings |
0.10% |
|
0.08% |
|
0.05% |
|
0.03% |
|
0.03% |
Time |
1.95% |
|
1.25% |
|
0.93% |
|
0.68% |
|
0.56% |
Total interest-bearing deposits |
1.83% |
|
1.22% |
|
0.63% |
|
0.24% |
|
0.12% |
Funds purchased and repurchase
agreements |
3.33% |
|
2.05% |
|
0.72% |
|
0.53% |
|
0.95% |
Other borrowings |
4.73% |
|
4.08% |
|
2.33% |
|
1.01% |
|
0.38% |
Subordinated debt |
6.40% |
|
6.16% |
|
5.07% |
|
4.50% |
|
4.02% |
Total cost of interest-bearing liabilities |
2.43% |
|
1.57% |
|
0.76% |
|
0.31% |
|
0.21% |
Tax-equivalent net interest revenue spread |
2.63% |
|
2.96% |
|
2.95% |
|
2.65% |
|
2.37% |
Effect
of noninterest-bearing funding sources and other |
0.82% |
|
0.58% |
|
0.29% |
|
0.11% |
|
0.07% |
Tax-equivalent net interest margin |
3.45% |
|
3.54% |
|
3.24% |
|
2.76% |
|
2.44% |
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 |
|
Mar. 31, 2023 |
|
Dec. 31, 2022 |
|
Sep. 30, 2022 |
|
June 30, 2022 |
|
Mar. 31, 2022 |
Nonperforming assets: |
|
|
|
|
|
|
|
|
|
Nonaccruing loans: |
|
|
|
|
|
|
|
|
|
Commercial: |
|
|
|
|
|
|
|
|
|
Healthcare |
$ |
37,247 |
|
|
$ |
41,034 |
|
|
$ |
41,438 |
|
|
$ |
14,886 |
|
|
$ |
15,076 |
|
Services |
|
8,097 |
|
|
|
16,228 |
|
|
|
27,315 |
|
|
|
15,259 |
|
|
|
16,535 |
|
Energy |
|
127 |
|
|
|
1,399 |
|
|
|
4,164 |
|
|
|
20,924 |
|
|
|
24,976 |
|
General business |
|
8,961 |
|
|
|
1,636 |
|
|
|
2,753 |
|
|
|
3,539 |
|
|
|
3,750 |
|
Total commercial |
|
54,432 |
|
|
|
60,297 |
|
|
|
75,670 |
|
|
|
54,608 |
|
|
|
60,337 |
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate |
|
21,668 |
|
|
|
16,570 |
|
|
|
7,971 |
|
|
|
10,939 |
|
|
|
15,989 |
|
|
|
|
|
|
|
|
|
|
|
Loans to individuals: |
|
|
|
|
|
|
|
|
|
Permanent mortgage |
|
29,693 |
|
|
|
29,791 |
|
|
|
30,066 |
|
|
|
30,460 |
|
|
|
30,757 |
|
Permanent mortgage guaranteed by U.S. government agencies |
|
14,302 |
|
|
|
15,005 |
|
|
|
16,957 |
|
|
|
18,000 |
|
|
|
16,992 |
|
Personal |
|
200 |
|
|
|
134 |
|
|
|
136 |
|
|
|
132 |
|
|
|
171 |
|
Total loans to individuals |
|
44,195 |
|
|
|
44,930 |
|
|
|
47,159 |
|
|
|
48,592 |
|
|
|
47,920 |
|
|
|
|
|
|
|
|
|
|
|
Total nonaccruing loans |
$ |
120,295 |
|
|
$ |
121,797 |
|
|
$ |
130,800 |
|
|
$ |
114,139 |
|
|
$ |
124,246 |
|
Accruing renegotiated loans
guaranteed by U.S. government agencies1 |
|
— |
|
|
|
163,535 |
|
|
|
176,022 |
|
|
|
196,420 |
|
|
|
204,121 |
|
Real
estate and other repossessed assets |
|
12,651 |
|
|
|
14,304 |
|
|
|
29,676 |
|
|
|
22,221 |
|
|
|
24,492 |
|
Total nonperforming assets |
$ |
132,946 |
|
|
$ |
299,636 |
|
|
$ |
336,498 |
|
|
$ |
332,780 |
|
|
$ |
352,859 |
|
Total nonperforming assets excluding those guaranteed by U.S.
government agencies |
$ |
118,644 |
|
|
$ |
121,096 |
|
|
$ |
143,519 |
|
|
$ |
118,360 |
|
|
$ |
131,746 |
|
|
|
|
|
|
|
|
|
|
|
Accruing loans 90 days past
due2 |
$ |
76 |
|
|
$ |
510 |
|
|
$ |
120 |
|
|
$ |
3 |
|
|
$ |
307 |
|
|
|
|
|
|
|
|
|
|
|
Gross charge-offs |
$ |
3,667 |
|
|
$ |
17,807 |
|
|
$ |
1,766 |
|
|
$ |
1,368 |
|
|
$ |
7,805 |
|
Recoveries |
|
(2,898 |
) |
|
|
(2,301 |
) |
|
|
(1,309 |
) |
|
|
(2,167 |
) |
|
|
(1,824 |
) |
Net charge-offs (recoveries) |
$ |
769 |
|
|
$ |
15,506 |
|
|
$ |
457 |
|
|
$ |
(799 |
) |
|
$ |
5,981 |
|
|
|
|
|
|
|
|
|
|
|
Provision for loan losses |
$ |
14,525 |
|
|
$ |
9,442 |
|
|
$ |
1,111 |
|
|
$ |
(6,158 |
) |
|
$ |
(3,967 |
) |
Provision for credit losses
from off-balance sheet unfunded loan commitments |
|
2,024 |
|
|
|
4,609 |
|
|
|
14,060 |
|
|
|
6,005 |
|
|
|
3,268 |
|
Provision for expected credit
losses from mortgage banking activities |
|
(488 |
) |
|
|
1,003 |
|
|
|
(66 |
) |
|
|
69 |
|
|
|
621 |
|
Provision for credit losses related to held-to maturity
(investment) securities portfolio |
|
(61 |
) |
|
|
(54 |
) |
|
|
(105 |
) |
|
|
84 |
|
|
|
78 |
|
Total provision for credit losses |
$ |
16,000 |
|
|
$ |
15,000 |
|
|
$ |
15,000 |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses to
period end loans |
|
1.10 |
% |
|
|
1.04 |
% |
|
|
1.11 |
% |
|
|
1.13 |
% |
|
|
1.19 |
% |
Combined allowance for loan
losses and accrual for off-balance sheet credit risk from unfunded
loan commitments to period end loans |
|
1.37 |
% |
|
|
1.31 |
% |
|
|
1.37 |
% |
|
|
1.33 |
% |
|
|
1.37 |
% |
Nonperforming assets to period
end loans and repossessed assets |
|
0.58 |
% |
|
|
1.33 |
% |
|
|
1.54 |
% |
|
|
1.56 |
% |
|
|
1.70 |
% |
Net charge-offs (annualized)
to average loans |
|
0.01 |
% |
|
|
0.28 |
% |
|
|
0.01 |
% |
|
(0.02)% |
|
|
0.12 |
% |
Allowance for loan losses to
nonaccruing loans2 |
|
235.36 |
% |
|
|
220.71 |
% |
|
|
212.37 |
% |
|
|
250.80 |
% |
|
|
229.80 |
% |
Combined allowance for loan
losses and accrual for off-balance sheet credit risk from unfunded
loan commitments to nonaccruing loans2 |
|
294.74 |
% |
|
|
277.76 |
% |
|
|
261.83 |
% |
|
|
294.74 |
% |
|
|
263.60 |
% |
1 The Company adopted FASB Accounting Standards Update No.
2022-02, Financial Instruments - Credit Losses (Topic 326):
Troubled Debt Restructurings and Vintage Disclosures, which
eliminates designation of these loans as troubled debt
restructurings effective January 1, 2023. 2 Excludes
residential mortgage loans guaranteed by agencies of the U.S.
government.
SEGMENTS –
UNAUDITEDBOK FINANCIAL
CORPORATION(in thousands, except ratios)
|
|
Three Months Ended |
|
1Q23 vs
4Q22 |
|
1Q23 vs
1Q22 |
|
|
Mar. 31, 2023 |
|
Dec. 31, 2022 |
|
Mar. 31, 2022 |
|
$ change |
|
% change |
|
$ change |
|
% change |
Commercial
Banking |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest revenue |
|
$ |
266,545 |
|
$ |
232,834 |
|
$ |
137,011 |
|
|
$ |
33,711 |
|
|
14.5% |
|
$ |
129,534 |
|
|
94.5% |
Fees
and commissions revenue |
|
|
55,835 |
|
|
58,881 |
|
|
56,964 |
|
|
|
(3,046 |
) |
|
(5.2)% |
|
|
(1,129) |
|
|
(2.0)% |
Combined net interest and fee revenue |
|
|
322,380 |
|
|
291,715 |
|
|
193,975 |
|
|
|
30,665 |
|
|
10.5% |
|
|
128,405 |
|
|
66.2% |
Other operating expense |
|
|
73,504 |
|
|
79,722 |
|
|
65,114 |
|
|
|
(6,218 |
) |
|
(7.8)% |
|
|
8,390 |
|
|
12.9% |
Corporate expense
allocations |
|
|
17,729 |
|
|
18,007 |
|
|
16,246 |
|
|
|
(278 |
) |
|
(1.5)% |
|
|
1,483 |
|
|
9.1% |
Net income |
|
|
176,547 |
|
|
139,374 |
|
|
82,344 |
|
|
|
37,173 |
|
|
26.7% |
|
|
94,203 |
|
|
114.4% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average assets |
|
|
28,162,934 |
|
|
28,373,856 |
|
|
29,823,905 |
|
|
|
(210,922 |
) |
|
(0.7)% |
|
|
(1,660,971) |
|
|
(5.6)% |
Average loans |
|
|
18,750,426 |
|
|
18,254,559 |
|
|
16,696,428 |
|
|
|
495,867 |
|
|
2.7% |
|
|
2,053,998 |
|
|
12.3% |
Average deposits |
|
|
15,861,285 |
|
|
16,832,244 |
|
|
19,595,260 |
|
|
|
(970,959 |
) |
|
(5.8)% |
|
|
(3,733,975) |
|
|
(19.1)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer
Banking |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest revenue |
|
$ |
109,381 |
|
$ |
53,302 |
|
$ |
27,207 |
|
|
$ |
56,079 |
|
|
105.2% |
|
$ |
82,174 |
|
|
302.0% |
Fees
and commissions revenue |
|
|
30,581 |
|
|
27,618 |
|
|
33,977 |
|
|
|
2,963 |
|
|
10.7% |
|
|
(3,396) |
|
|
(10.0)% |
Combined net interest and fee revenue |
|
|
139,962 |
|
|
80,920 |
|
|
61,184 |
|
|
|
59,042 |
|
|
73.0% |
|
|
78,778 |
|
|
128.8% |
Other operating expense |
|
|
50,198 |
|
|
54,526 |
|
|
48,789 |
|
|
|
(4,328 |
) |
|
(7.9)% |
|
|
1,409 |
|
|
2.9% |
Corporate expense
allocations |
|
|
11,618 |
|
|
11,972 |
|
|
12,080 |
|
|
|
(354 |
) |
|
(3.0)% |
|
|
(462) |
|
|
(3.8)% |
Net income (loss) |
|
|
50,687 |
|
|
8,996 |
|
|
(7,317 |
) |
|
|
41,691 |
|
|
463.4% |
|
|
58,004 |
|
|
(792.7)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average assets |
|
|
9,934,511 |
|
|
10,078,381 |
|
|
10,273,890 |
|
|
|
(143,870 |
) |
|
(1.4)% |
|
|
(339,379) |
|
|
(3.3)% |
Average loans |
|
|
1,747,237 |
|
|
1,725,555 |
|
|
1,672,346 |
|
|
|
21,682 |
|
|
1.3% |
|
|
74,891 |
|
|
4.5% |
Average deposits |
|
|
8,248,541 |
|
|
8,617,085 |
|
|
8,746,622 |
|
|
|
(368,544 |
) |
|
(4.3)% |
|
|
(498,081) |
|
|
(5.7)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wealth
Management |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest revenue |
|
$ |
54,106 |
|
$ |
34,498 |
|
$ |
55,766 |
|
|
$ |
19,608 |
|
|
56.8% |
|
$ |
(1,660) |
|
|
(3.0)% |
Fees
and commissions revenue |
|
|
108,911 |
|
|
114,630 |
|
|
25,023 |
|
|
|
(5,719 |
) |
|
(5.0)% |
|
|
83,888 |
|
|
335.2% |
Combined net interest and fee revenue |
|
|
163,017 |
|
|
149,128 |
|
|
80,789 |
|
|
|
13,889 |
|
|
9.3% |
|
|
82,228 |
|
|
101.8% |
Other operating expense |
|
|
82,039 |
|
|
82,211 |
|
|
74,620 |
|
|
|
(172 |
) |
|
(0.2)% |
|
|
7,419 |
|
|
9.9% |
Corporate expense
allocations |
|
|
12,386 |
|
|
12,733 |
|
|
12,071 |
|
|
|
(347 |
) |
|
(2.7)% |
|
|
315 |
|
|
2.6% |
Net income (loss) |
|
|
52,427 |
|
|
41,447 |
|
|
(4,521 |
) |
|
|
10,980 |
|
|
26.5% |
|
|
56,948 |
|
|
(1,259.6)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average assets |
|
|
11,663,096 |
|
|
12,912,630 |
|
|
21,323,795 |
|
|
|
(1,249,534 |
) |
|
(9.7)% |
|
|
(9,660,699) |
|
|
(45.3)% |
Average loans |
|
|
2,201,622 |
|
|
2,223,275 |
|
|
2,118,780 |
|
|
|
(21,653 |
) |
|
(1.0)% |
|
|
82,842 |
|
|
3.9% |
Average deposits |
|
|
7,432,413 |
|
|
7,888,753 |
|
|
9,619,323 |
|
|
|
(456,340 |
) |
|
(5.8)% |
|
|
(2,186,910) |
|
|
(22.7)% |
Fiduciary assets |
|
|
57,457,925 |
|
|
56,060,496 |
|
|
61,095,320 |
|
|
|
1,397,429 |
|
|
2.5% |
|
|
(3,637,395) |
|
|
(6.0)% |
Assets under management or
administration |
|
|
102,310,126 |
|
|
99,735,040 |
|
|
101,081,355 |
|
|
|
2,575,086 |
|
|
2.6% |
|
|
1,228,771 |
|
|
1.2% |
Contact:
Sue Hermann
Director, Corporate Communications
303-312-3488
BOK Financial (NASDAQ:BOKF)
Gráfico Histórico do Ativo
De Abr 2024 até Mai 2024
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