BOK Financial Shows 15.4% Increase in Earnings; Declares 3% Stock Dividend.TULSA Tulsa (tŭl`sə), city (1990 pop. 367,302), seat of Tulsa co., NE Okla., on the Arkansas River east of its junction with the Cimarron; inc. 1898. , Okla.--(BUSINESS WIRE)--Oct. 27, 1998--BOK Financial Corp. (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 : BOKF) today announced that earnings for the third quarter, 1998, were $18.7 million, or 75 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. - a 15.4 percent increase over the same quarter last year. Year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. earnings are $55.5 million, up 16.1 percent from the same period in 1997. Per share data are 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. . The board of directors also approved a 3 percent stock dividend on the common stock of the company. The shares will be issued Nov. 25, 1998, to shareholders of record Nov. 13, 1998. BOK Financial is the parent company of 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 Oklahoma (ōkləhō`mə), state in SW United States. It is bordered by Missouri and Arkansas (E); Texas, partially across the Red R. (S, W); New Mexico, across the narrow edge of the Oklahoma Panhandle (W); and Colorado and Kansas (N). , N.A.; and Bank of Texas, N.A. Its pending acquisition of 17 branches and approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $500 million in deposits 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). from BankAmerica Corp. is expected to close Dec. 5. The bank will be called Bank of Albuquerque Albuquerque (ăl`bəkûr'kē), city (1990 pop. 384,736), seat of Bernalillo co., W central N.Mex., on the upper Rio Grande; inc. 1890. , N.A. "Bank of Albuquerque has received requisite regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. approvals, and we anticipate opening for business on Dec. 7 after a system conversion that previous weekend," 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. Stanley Stanley, town (1991 pop. 1,557), capital of the Falkland Islands, S Atlantic Ocean, on East Falkland island. It is the main port and trading center of the islands. The name is sometimes written as Port Stanley. A. Lybarger. "Greg GREG Great Egg Harbor National Scenic and Recreational River (US National Park Service) Symons Sy·mons , Arthur 1865-1945. British poet and literary critic who translated many French symbolist works into English and wrote The Symbolist Movement in Literature (1899). Noun 1. , whom we earlier announced would be returning to his home state as president of Bank of Albuquerque, is making excellent progress as we prepare for the closing of the transaction and our opening for business. "We are particularly pleased with the enthusiastic support this acquisition has received from the staff who will be joining Bank of Albuquerque from the 17 branches and related commercial and operational units." Fee-based income continues to be strong for BOK Financial. Excluding gains on sales, fee-based revenue is up 26.4 percent from the same quarter last year. Non-interest revenue represents 47.8 percent of the company's total revenue for the quarter and 49 percent for the year, an industry-leading level for similar sized companies with broad product lines. Brokerage BROKERAGE, contracts. The trade or occupation of a broker; the commissions paid to a broker for his services. and trading revenue was up 62.9 percent for the quarter and 61.5 percent year-to-date. Mortgage banking revenue and transaction card revenue each climbed about 30 percent for the quarter, and trust revenues were up 21 percent. Expenses were up across the board, attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to the continued growth in volume company-wide. "We are pleased with the results of our hedging hedging, in commerce, method by which traders use two counterbalancing investment strategies so as to minimize any losses caused by price fluctuations. It is generally used by traders on the commodities market. program for 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, which performed well in a period of unprecedented volatility Volatility 1. A statistical measure of the tendency of a market or security to rise or fall sharply within a period of time. 2. A variable in option pricing formulas that denotes the extent to which the return of the underlying asset will fluctuate between now and the in interest rates and mortgage refinance Refinance 1. When a business or person revises their payment schedule for repaying debt. 2. Replacing an older loan with a new loan offering better terms. Notes: When a business refinances they typically extend the maturity date. activity," Lybarger said. "Our provision for loan loss was $4 million for the quarter, bringing our reserve to 2.1 percent of loans. We continue to be pleased with the performance of our loan portfolio. As has been the case for the past five years, our commercial loan charge-offs, net of recoveries, were nominal Trifling, token, or slight; not real or substantial; in name only. Nominal capital, for example, refers to extremely small or negligible funds, the use of which in a particular business is incidental. NOMINAL. Relating to a name. . Our lending activity is entirely domestic, and therefore less susceptible susceptible /sus·cep·ti·ble/ (su-sep´ti-b'l) 1. readily affected or acted upon. 2. lacking immunity or resistance and thus at risk of infection. sus·cep·ti·ble adj. to pressure from the international markets. Our loans in the two sectors in the regional economy showing some weakness - energy and agriculture - continue to perform satisfactorily." Net interest revenue was up 17.9 percent, and the net interest margin increased nine basis points to 3.72 percent. The difference between our net interest margin and those of peer organizations is the result of our practice of deploying excess capital into supporting a program of short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. borrowing and reinvesting at a profitable spread. Return on equity was 15.76 percent for the quarter. Return on assets Return on assets (ROA) Indicator of profitability. Determined by dividing net income for the past 12 months by total average assets. Result is shown as a percentage. ROA can be decomposed into return on sales (net income/sales) multiplied by asset utilization (sales/assets). was 1.31 percent. Loans grew by 10.8 percent for the 12-month period ending Sept. 30, 1998 over the same period a year ago. The provision for loan losses during the third quarter was $4 million, versus $3 million during the same period last year. BOK Financial Corp. is multi-bank holding company based in Tulsa, Okla., with offices in Arkansas, Kansas Kansas, state, United States Kansas (kăn`zəs), midwestern state occupying the center of the coterminous United States. It is bordered by Missouri (E), Oklahoma (S), Colorado (W), and Nebraska (N). , New Mexico, Oklahoma and Texas. Assets of the organization total $5.9 billion. BOK Financial's trust company subsidiaries are responsible for $12 billion in assets. TransFund Trans`fund´ v. t. 1. To pour from one vessel into another; to transfuse. , the company's 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, has more than 800 machines installed in a seven-state area and services more than 220 financial institutions and approximately 950,000 cardholders. BOK Financial's mortgage companies have offices in three states with a total servicing portfolio of $6.8 billion. -0-
BOK FINANCIAL CORPORATION
(In thousands, except ratio and per share data)
Period End Balances Average Balances
September 30, Quarter Ended
September 30,
BALANCE SHEETS 1998 1997 1998 1997
ASSETS
Cash and due
from banks $ 346,183 $ 340,735 $ 311,754 $ 255,685
Trading
securities 22,730 2,555 27,389 3,583
Funds sold 35,936 37,850 25,287 49,645
Securities:
Available for
sale 1,981,415 1,719,554 1,853,805 1,711,556
Held for
investment 221,329 214,703 223,036 209,323
Total
securities 2,202,744 1,934,257 2,076,841 1,920,879
Loans:
Commercial 1,674,026 1,514,861 1,608,167 1,471,930
Commercial
real estate 639,143 447,895 625,398 428,198
Residential
mortgage 524,643 517,350 506,275 481,722
Consumer 230,702 289,892 238,247 294,386
Total loans 3,068,514 2,769,998 2,978,087 2,676,236
Less allowance
for loan
losses (62,131) (52,393) (59,821) (51,165)
Total loans,
net 3,006,383 2,717,605 2,918,266 2,625,071
Premises and
equipment 63,490 63,572 61,725 61,685
Accrued revenue
receivable 60,455 52,738 48,218 48,437
Goodwill and core
deposit premiums 64,444 70,180 65,754 71,400
Mortgage servicing
rights 52,233 82,868 71,314 74,762
Real estate and
other
repossessed
assets 4,353 5,187 5,092 5,684
Other assets 76,050 70,605 83,884 72,608
TOTAL ASSETS $5,935,001 $5,378,152 $5,695,524 $5,189,439
LIABILITIES AND EQUITY CAPITAL
Deposits:
Demand $ 909,592 $ 834,272 $ 904,128 $ 761,578
Interest-
bearing
transaction 1,165,398 1,098,404 1,187,685 1,067,895
Savings 108,003 106,536 108,911 108,104
Time deposits 1,605,334 1,552,894 1,643,596 1,533,191
Total deposits 3,788,327 3,592,106 3,844,320 3,470,768
Federal funds
purchased and
repurchase
agreements 817,840 735,868 785,384 725,297
Other borrowed
funds 609,579 400,044 367,119 444,143
Subordinated
debenture 148,415 148,311 148,392 70,960
Accrued interest,
taxes, and
expenses 51,742 63,336 48,035 58,108
Other liabilities 23,839 22,249 30,348 17,624
TOTAL
LIABILITIES 5,439,742 4,961,914 5,223,598 4,786,900
Equity Capital:
Stockholders'
equity 474,906 407,225 463,417 397,955
Unrealized
securities
gains (losses) 20,353 9,013 8,509 4,584
TOTAL EQUITY
CAPITAL 495,259 416,238 471,926 402,539
TOTAL LIABILITIES
AND EQUITY
CAPITAL $5,935,001 $5,378,152 $5,695,524 $5,189,439
For the Quarters Ended For the Nine Months Ended
September 30, September 30,
STATEMENTS OF
EARNINGS 1998 1997 1998 1997
Interest
revenue $ 98,411 $ 88,548 $ 284,013 $ 254,129
Interest
expense 51,634 48,890 150,737 140,241
Net interest
revenue 46,777 39,658 133,276 113,888
Provision for
loan losses 4,001 3,000 10,424 5,526
Net interest
revenue after
provision for
loan losses 42,776 36,658 122,852 108,362
Other operating
revenue
Brokerage and
trading revenue 4,109 2,522 11,291 6,991
Transaction card
revenue 6,516 5,012 18,066 13,753
Trust fees and
commissions 7,751 6,405 22,289 17,534
Service charges
and fees on
deposit
accounts 8,015 7,255 23,093 21,081
Mortgage banking
revenue, net 10,929 8,416 31,190 22,824
Leasing revenue 1,749 1,566 5,214 4,339
Other revenue 3,240 2,303 8,941 7,574
Total fees and
commissions 42,309 33,479 120,084 94,096
Gain on sale of
student loans 13 26 1,548 1,211
Securities gains
(losses), net 538 810 6,370 871
Total other
operating
revenue 42,860 34,315 128,002 96,178
Other operating expense
Personnel 26,067 22,475 76,611 62,917
Business
promotion 1,862 2,067 5,421 6,207
Contribution of
stock to BOk
Charitable
Foundation - - 2,257 -
Professional fees
and services 2,622 1,579 6,526 4,646
Net occupancy,
equipment &
data
processing 10,574 8,618 30,382 25,188
FDIC and other
insurance 270 374 925 1,035
Printing, postage
and supplies 2,267 1,817 6,537 5,563
Net gains and
operating
expenses on
repossessed
assets (19) (1,662) (389) (2,296)
Amortization of
intangible
assets 2,268 2,362 6,842 6,488
Mortgage banking
costs 6,374 5,202 18,687 13,831
Provision for
impairment of
mortgage
servicing
rights - - 2,000 -
Other expense 4,552 3,888 12,035 10,310
Total other
operating
expense 56,837 46,720 167,834 133,889
Income before
taxes 28,799 24,253 83,020 70,651
Federal and state
income taxes 10,049 7,857 27,519 22,844
NET INCOME $ 18,750 $ 16,396 $ 55,501 $ 47,807
For the Quarters Ended For the Nine Months Ended
September 30, September 30,
FINANCIAL DATA 1998 1997 1998 1997
Capital:
Average
equity $ 471,926 $ 402,539 $ 456,987 $ 381,586
Period-end
equity 495,259 416,238 495,259 -
Risk-based capital ratios:
Tier 1 9.44% 8.93%
Total capital 14.11% 14.08%
Leverage ratio 7.28% 6.53%
Common stock:
Book value per
share $ 21.88 $ 19.44
Basic earnings per share:
Income before
taxes $ 1.30 $ 1.09 $ 3.74 $ 3.18
Federal and
state
income
taxes (0.46) (0.36) (1.26) (1.05)
Net income $ 0.84 $ 0.73 $ 2.48 $ 2.13
Diluted earnings per share:
Income before
taxes $ 1.15 $ 0.97 $ 3.30 $ 2.82
Federal and
state
income
taxes (0.40) (0.32) (1.09) (0.91)
Net income $ 0.75 $ 0.65 $ 2.21 $ 1.91
Average shares outstanding:
Basic 21,862,010 21,906,321 21,897,677 21,882,733
Diluted 25,090,677 25,099,709 25,150,794 25,032,857
Key ratios:
Return on
average
assets 1.31% 1.25% 1.33% 1.27%
Return on
average equity 15.76% 16.16% 16.24% 16.75%
Net interest
margin 3.72% 3.63% 3.71% 3.63%
Credit Quality:
Nonperforming assets:
Nonaccrual
loans $ 14,013 $ 23,182
90-day past
due (1) and
restructured
loans 15,594 20,551
Real estate
and other
repossessed
assets 4,353 5,187
Total nonperforming
assets $ 33,960 $ 48,920
Gross charge-
offs $ 1,498 $ 2,515 $ 5,320 $ 5,178
Recoveries 1,846 2,037 3,926 4,371
Net charge-offs
(recoveries) $ (348) $ 478 $ 1,394 $ 807
Key ratios:
Reserve for
loan losses
to period
end loans
(2) 2.08% 1.96%
Nonperforming
assets to period
end loans (2)
and repossessed
assets 1.14% 1.83%
Net charge-offs
(annualized) to
average loans
(2) -0.05% 0.07%
(1) Includes $18,191 and $16,010, respectively, of 1-4 family
loans guaranteed by agencies of the United States government.
(2) Excluding residential mortgage loans held for sale.
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion