BOK Financial Continues Regional Expansion.Fort Worth and Denver Denver, city (1990 pop. 467,610), alt. 5,280 ft (1,609 m), state capital, coextensive with Denver co., N central Colo., on a plateau at the foot of the Front Range of the Rocky Mts., along the South Platte River where Cherry Creek meets it; inc. 1861. Acquisitions Completed TULSA, Okla. -- BOK Financial Corporation BOK Financial Corporation (BOKF) NASDAQ: BOKF, based in Tulsa, Oklahoma, is a financial services company in the West South Central States region of the United States. The corporate headquarters is located in the BOK Tower in downtown Tulsa. reported earnings of $53.9 million or $0.80 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share for the second quarter of 2007, compared with net income of $55.0 million or $0.82 per diluted share for the second quarter of 2006. Highlights of the quarter included: * Acquisitions of Worth National Bank and First United Bank were completed during the quarter. Worth added net loans of $281 million, total deposits of $369 million and five banking locations in Fort Worth, Texas Fort Worth is the fifth-largest city in the state of Texas, 18th-largest city in the United States[1], and voted one of "America’s Most Livable Communities. . First United added net loans of $94 million, total deposits of $133 million and eleven banking locations in the Denver, Colorado area. * Net interest revenue grew $13.8 million or 11% over the second quarter of 2006 and $6.1 million or 16% annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. over the first quarter of 2007, excluding the impact of acquisitions. * Average outstanding loans totaled $11.3 billion, up $1.9 billion or 20% over the second quarter of 2006; average deposits totaled $12.4 billion, up $1.2 billion or 10% over the second quarter of 2006. * Net interest margin was 3.31% for the second quarter of 2007, 3.32% for the first quarter of 2007 and 3.40% for the second quarter of 2006. * Provision for credit losses was $7.8 million for the second quarter of 2007, up from $3.8 million for the second quarter of 2006. Non-performing assets totaled $60 million or .52% of outstanding loans at June 30, 2007 and $39 million or .40% of outstanding loans at June 30, 2006. Non-performing assets totaled $50.7 million or .44% of outstanding loans at June 30, 2007 excluding acquisitions. * Fees and commissions revenue increased $4.9 million or 5% over the second quarter of 2006. * Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. , excluding changes in the fair value of mortgage servicing Mortgage servicing The collection of monthly payments and penalties, record keeping, payment of insurance and taxes, and possible settlement of default , involved with a mortgage loan. rights increased $15.3 million or 12%; personnel expenses grew $9.5 million or 13% over the second quarter of 2006. * Debt rating was placed on positive outlook by Standard & Poors. "Acquisitions completed during the second quarter significantly expanded our presence in the Fort Worth and Denver markets," said President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Stan STAN Stanchion STAN Stärke- und Ausrüstungsnachweis (German) Stan Standard Man (human patient simulator) STAN SEMCIP Technical Assistance Network STAN System Trace Audit Number STAN Star Trek Area Network Lybarger. "Worth increased our team of experienced bankers in Tarrant County, Texas Tarrant County is a county located in the U.S. state of Texas. As of 2000, the population was 1,446,219. Its county seat is Fort Worth6. Tarrant County is the second most populous county in the Dallas/Fort Worth Metroplex and contains its second largest principal city. . First United added eleven banking locations to our branch network in Denver, which almost triples our branch network in that market." Net Interest Revenue Net interest revenue totaled $134.9 million for the second quarter of 2007, up $13.8 million or 11% over the second quarter of 2006 and $6.1 million or 16% annualized over the first quarter of 2007. Average earning assets Earning Assets Any income-earning asset owned by a company. Notes: These assets are generally interest-bearing accounts, bonds, and securities available for sale. See also: Asset, Asset Valuation, Earnings, Net Interest Margin increased $2.2 billion or 15%, including a $1.9 billion increase in average outstanding loans. Compared with the previous quarter, average earning assets were up $699 million or 17% annualized, including a $445 million or 16% annualized increase in average outstanding loans. Average deposits were up $1.2 billion or 10% over the second quarter of 2006 and $314 million or 10% annualized over the first quarter of 2007. Average interest-bearing transaction accounts grew $1.1 billion compared with the second quarter of 2006 and $314 million compared with the first quarter of 2007. Net interest margin was 3.31% for the second quarter of 2007 compared with 3.40% for the second quarter of 2006 and 3.32% for the first quarter of 2007. Yields on average earning assets increased 29 basis points to 7.00% and the cost of interest-bearing liabilities increased 39 basis points to 4.12% compared with the second quarter of 2006. Yields on average earning assets and the cost of interest-bearing liabilities both decreased 2 basis points compared with the first quarter of 2007. Loans and Deposits Outstanding loans totaled $11.7 billion at June 30, 2007, up $556 million since March 31, 2007. Loans grew at a 6% annualized rate since March 31, 2007, excluding $378 million of loans acquired with Worth National Bank and First United Bank. Commercial loans increased $38 million or 2% and residential mortgage loans grew $43 million or 13%. Outstanding consumer loans grew $59 million or 31% due largely to indirect automobile lending. Commercial and commercial real estate loan balances were reduced by significant payoffs of energy, healthcare and real estate loans during the second quarter of 2007. The June 30, 2007 pipeline of new lending opportunities remains strong. "Although commercial loan growth slowed from an almost 20% annual pace during the second quarter, we expect the overall rate of loan growth to increase from second quarter levels," said Lybarger. Outstanding loans grew $117 million or 8% annualized in the Oklahoma market during the second quarter of 2007. Growth in the Oklahoma market was centered in consumer and residential mortgage loans. Loans grew at a combined annual rate of 5% in the regional markets. Annualized loan growth, excluding acquisitions, during the second quarter of 2007 was 10% in Arizona Arizona (âr'əzō`nə), state in the southwestern United States. It is bordered by Utah (N), New Mexico (E), Mexico (S), and, across the Colorado R., Nevada and California (W). , 4% in Colorado and 3% in Texas. Total deposits increased $954 million during the second quarter to $13.2 billion at June 30, 2007. Excluding acquisitions, deposits increased $451 million or 15% annualized since March 31, 2007. Time deposits and interest-bearing transaction accounts each increased during the second quarter while demand deposit account balances declined. Excluding acquisitions, deposits grew by annualized rates of 14% in Texas, 13% in Oklahoma, 21% in New Mexico New Mexico, state in the SW United States. At its northwestern corner are the so-called Four Corners, where Colorado, New Mexico, Arizona, and Utah meet at right angles; New Mexico is also bordered by Oklahoma (NE), Texas (E, S), and Mexico (S). and 23% in Colorado during the second quarter of 2007. Credit Quality Net loans charged-off during the second quarter of 2007 totaled $5.8 million, compared with $3.1 million in the previous quarter and $3.8 million in the second quarter of 2006. Net charge-offs were dispersed dis·perse v. dis·persed, dis·pers·ing, dis·pers·es v.tr. 1. a. To drive off or scatter in different directions: The police dispersed the crowd. b. among our operating regions and by industries. Non-performing assets totaled $60 million or .52% of outstanding loans at June 30, 2007, compared with $41 million or .37% at March 31, 2007 and $39 million or .40% at June 30, 2006. Non-performing assets at June 30, 2007 included $6.9 million of non-accruing loans acquired with First United Bank. The Company will be reimbursed by the sellers for up to $8 million of losses incurred on any acquired loans in the three-year period after the acquisition date. Excluding acquisitions, non-performing assets increased $10.0 million due primarily to three loans identified as non-accruing during the quarter. These credits were not concentrated in any one segment of the loan portfolio or geographic region. "Non-performing assets increased from abnormally low levels in 2005 and 2006, though they remain lower than the levels we will see over a full credit cycle," said Lybarger. The combined allowance for loan losses and reserve for off-balance sheet credit losses totaled $139 million or 1.20% of outstanding loans and 268% of non-accruing loans at June 30, 2007. The allowance for loan losses was $120 million and the reserve for off-balance sheet credit losses was $19 million. At March 31, 2007, the combined allowance for loan losses and reserve for off-balance sheet credit losses totaled $134 million or 1.21% of outstanding loans and 427% of non-accruing loans. The allowance for loan losses was $114 million and the reserve for off-balance sheet credit losses was $20 million. The provision for credit losses for the second quarter of 2007 was $7.8 million, compared with $6.5 million for the first quarter of 2007 and $3.8 million for the second quarter of 2006. Fees and Commissions Revenue Fees and commissions revenue totaled $98.8 million for the second quarter of 2007, up $4.9 million or 5% over the same period of 2006. Transaction card revenue increased $3.0 million or 15% due to growth in both ATM fees and debit card debit card, card that allows the cost of goods or services that are purchased to be deducted directly from the purchaser's checking account. They can also be used at automated teller machines for withdrawing cash from the user's checking account. revenue. Trust revenue was up $1.7 million or 10% due to growth in the value of trust assets managed. Revenue from investments in bank-owned life insurance increased $2.5 million. Other revenue decreased $2.9 million due to a $2.7 million reduction in fees earned on margin asset balances. Average margin asset balances for the second quarter of 2007 decreased $164 million compared with the same period of 2006. The decrease in margin asset fee revenue was offset by an increase in net interest revenue due to lower costs to fund margin assets. Operating Expenses Operating expenses, excluding changes in the fair value of mortgage servicing rights, totaled $141.0 million, up $15.3 million or 12% over the second quarter of 2006. Personnel expense totaled $81.9 million, up $9.5 million or 13% over the second quarter of 2006. Salaries and wages increased $6.8 million or 15% due to an 8% growth in the number of employees and a 7% growth in average compensation per employee. During the second half of 2006, the Company increased employment of experienced bankers in each of the regional markets and made investments in additional operational and support staff. Incentive compensation and employee benefit expenses were up $1.3 million or 8% and $1.4 million or 12%, respectively. Data processing data processing or information processing, operations (e.g., handling, merging, sorting, and computing) performed upon data in accordance with strictly defined procedures, such as recording and summarizing the financial transactions of a and communications expenses were up $2.2 million or 14% due largely to growth in the volume of bankcard bank·card n. A card issued by a bank authorizing the holder to receive bank services and often functioning as a debit card. transactions. Professional fees included costs related to acquisitions and the issuance of $250 million of subordinated debt Subordinated Debt A loan (or security) that ranks below other loans (or securities) with regard to claims on assets or earnings. Also known as "junior security" or "subordinated loan". during the second quarter of 2007. All other operating expenses grew 6% over the second quarter of 2006. About BOK Financial Corporation BOK Financial is a regional financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. company that provides commercial and consumer banking, investment and trust services, mortgage origination Origination The process through which a mortgage lender creates a mortgage secured by some amount of the mortgagor's real property. Notes: Also known as loan origination, everyone must go through the origination process when securing a mortgage for a piece of real and servicing, and an electronic funds transfer See EFT. (application, communications) electronic funds transfer - (EFT, EFTS, - system) Transfer of money initiated through electronic terminal, automated teller machine, computer, telephone, or magnetic tape. network. Holdings include Bank of Albuquerque, N.A., Bank of Arizona, N.A., Bank of Arkansas Arkansas, river, United States Arkansas (ärkăn`zəs, är`kənsô'), river, c.1,450 mi (2,330 km) long, rising in the Rocky Mts., central Colo. , N.A., Bank of Oklahoma, N.A., Bank of Texas, N.A., Colorado State Bank & Trust, N.A., Bank of Kansas City Kansas City, two adjacent cities of the same name, one (1990 pop. 149,767), seat of Wyandotte co., NE Kansas (inc. 1859), the other (1990 pop. 435,146), Clay, Jackson, and Platte counties, NW Mo. (inc. 1850). , N.A., BOSC, Inc., the TransFund electronic funds network, Southwest Trust Company, N.A. and AXIA Investment Management, Inc. Shares of BOK Financial are traded on the NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on under the symbol BOKF. For more information, visit www.bokf.com. This news release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that are based on management's beliefs, assumptions, current expectations, estimates and projections about BOK Financial, the financial services industry and the economy generally. Words such as "anticipates," "believes," "estimates," "expects," "forecasts," "plans," "projects," variations of such words and similar expressions are intended to identify such forward-looking statements. Management judgments relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc and discussion of the provision and allowance for credit losses involve judgments as to future events and are inherently forward-looking statements. Assessments that BOK Financial's acquisitions and other growth endeavors will be profitable are necessary statements of belief as to the outcome of future events based in part on information provided by others which BOK Financial has not independently verified ver·i·fy tr.v. ver·i·fied, ver·i·fy·ing, ver·i·fies 1. To prove the truth of by presentation of evidence or testimony; substantiate. 2. . These statements are not guarantees of future performance and involve certain risks, uncertainties, and assumptions which are difficult to predict with regard to timing, extent, likelihood and degree of occurrence. Therefore, actual results and outcomes may materially differ from what is expected, implied or forecasted in such forward-looking statements. Internal and external factors that might cause such a difference include, but are not limited to (1) the ability to fully realize expected cost savings from mergers within the expected time frames, (2) the ability of other companies on which BOK Financial relies to provide goods and services In economics, economic output is divided into physical goods and intangible services. Consumption of goods and services is assumed to produce utility (unless the "good" is a "bad"). It is often used when referring to a Goods and Services Tax. in a timely and accurate manner, (3) changes in interest rates and interest rate relationships, (4) demand for products and services, (5) the degree of competition by traditional and nontraditional competitors, (6) changes in banking regulations, tax laws, prices, levies and assessments, (7) the impact of technological advances and (8) trends in consumer behavior as well as their ability to repay loans. BOK Financial and its affiliates undertake no obligation to update, amend or clarify forward-looking statements, whether as a result of new information, future events, or otherwise. [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] |
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