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BOK Financial Corp. Reports Operating Results (10-K)
Posted by: gurufocus (IP Logged)
Date: February 28, 2012 11:19PM
BOK Financial Corp. (BOKF) filed Annual Report for the period ended 2011-12-31. Bok Finl Corp has a market cap of $3.66 billion; its shares were traded at around $53.52 with a P/E ratio of 12.9 and P/S ratio of 2.6. The dividend yield of Bok Finl Corp stocks is 2.5%. Bok Finl Corp had an annual average earning growth of 2.4% over the past 10 years.
Highlight of Business Operations:Other operating revenue totaled $520.9 million for 2010, up $27.9 million over 2009. Fees and commissions revenue increased $35.9 million partially offset by a $14.6 million decrease in net gains on securities, derivatives and other assets. Other-than-temporary impairment charges recognized in earnings in 2010 were $6.6 million less than in 2009. Brokerage and trading revenue increased $9.8 million over 2009. Customer hedging revenue increased $5 million over 2009 primarily due to energy derivatives. Investment banking revenue increased $2.3 million and retail brokerage revenue increased $3.0 million. Securities trading revenue was flat compared to 2009. Increased lending activity by our mortgage banking customers increased related securities transaction volume in 2010. This activity was offset by decreased municipal trading activity as credit spreads widened on credit concerns in municipal securities. Transaction card revenue increased $6.8 million over 2009 due to increases in check card revenue and merchant services fees. Trust fees and commissions increased $2.8 million over 2009 primarily due to growth in the fair value of trust assets, partially offset by lower balances in our proprietary mutual funds. Deposit service charges decreased $12.2 million compared to 2009 primarily due to changes in federal regulations concerning overdraft charges which were effective July 1, 2010. Mortgage banking revenue increased $22.6 million or 35% over 2009 primarily due to increased mortgage loan servicing revenue as the result of the Company s acquisition of rights to service $4.2 billion of residential mortgage loans in the first quarter of 2010.
Our Consumer banking division originates, markets and services conventional and government-sponsored mortgage loans for all of our geographical markets. During 2011, we funded $2.5 billion of mortgage loans compared to $2.8 billion in 2010. Approximately 42% of our mortgage loans funded were in the Oklahoma market, 15% in the New Mexico market, 15% in the Colorado market and 12% in the Texas market. Mortgage fundings included $2.2 billion of mortgage loans funded for sale in the secondary market and $250 million of loans funded for retention within the consolidated group. Revenue from originating and marketing mortgage loans for sale totaled $52.1 million in 2011 and $49.7 million in 2010. As of December 31, 2011, the Consumer banking division services $11.3 billion of mortgage loans for others and $1.1 billion of loans retained within the consolidated group. Approximately 97% of the mortgage loans serviced was to borrowers in our primary geographical market areas. Mortgage loan servicing revenue totaled $39.9 million in 2011 compared to $38.4 million in 2010.
Net income attributed to our New Mexico market totaled $14.3 million or 7% of consolidated net income, a $5.4 million or 61% increase over the prior year. Net interest revenue increased $1.3 million or 4% over the prior year. Average deposit balances increased $11.3 million or 1%. Average demand deposit balances increased $50 million or 22%, partially offset by a $38 million or 8% decrease in average time deposits balances. Net charge-offs declined by $4.3 million to $2.0 million or 0.28% of average loans compared to $6.3 million or 0.87% of average loans for 2010. Fees and commissions revenue increased $3.2 million over the prior year due primarily to increased mortgage banking revenue. Increased brokerage and trading revenue, transaction card revenues and trust fees and commissions were mostly offset by a decrease in deposit service charges and fees. Other operating expenses were flat compared to the prior year.
Net income for the Arkansas market totaled $6.0 million, up $2.1 million or 52% over 2010. Net interest revenue decreased $2.0 million primarily due to a $57 million decrease in average loans. Loans in the Arkansas market continue to decrease due to the run-off of indirect automobile loans. Average deposits attributed to the Arkansas market were up $14 million or 7% over 2010, primarily related to increases in commercial banking deposits, partially offset by decreased wealth management and consumer deposit balances. Net loans charged off decreased $4.0 million to $2.7 million or 1.00% of average loans in 2011, compared to $6.7 million or 2.04% of average loans in 2010. Other operating revenue decreased $3.6 million or 9% compared to 2010, primarily on decreased securities trading revenue at our Little Rock office, partially offset by increased mortgage banking and transaction card revenue. Other operating expenses decreased $5.0 million due primarily to decreased incentive compensation costs related to securities trading activity.
The Arizona market s performance continued to improve during 2011. The net loss attributed to the Arizona market narrowed from $22.8 million in 2010 to $8.0 million in 2011. Net loans charged off improved by $15.8 million to $6.6 million or 1.14% of average loans attributed to the Arizona market. Net losses and operating expenses on repossessed assets decreased by $3.7 million compared to the prior year. Excluding these credit costs, we continue to see improvement in the Arizona market. Net interest revenue increased $4.4 million or 38% over the prior year. Average loans balances grew by $40 million or 60% and average deposit balances increased $37 million or 17%. Growth was primarily related to commercial loans and deposits. Other operating revenue increased $773 thousand. Deposit service charges, transaction card revenues and trust fees and commissions all increased over the prior year, partially offset by a decrease in mortgage banking revenue. Excluding net losses and operating expenses of repossessed assets, other operating expense decreased $496 thousand compared to the prior year.
Stocks Discussed: BOKF,