GuruFocus Premium Membership

Serving Intelligent Investors since 2004. Only 96 cents a day.

Free Trial

Free 7-day Trial
All Articles and Columns »

BOK Financial Corp. Reports Operating Results (10-Q)

April 30, 2009 | About:

BOK Financial Corp. (BOKF) filed Quarterly Report for the period ended 2009-03-31.

BOK FINANCIAL CORP. through its subsidiaries provides a wide range of financial services to commercial and intrial customers other financial institutions and consumers throughout Oklahoma Northwest Arkansas and North Texas. These services include depository and cash management; lending and lease financing; mortgage banking; securities brokerage; trading and underwriting; and personal and corporate trust. BOK Financial Corp. has a market cap of $2.65 billion; its shares were traded at around $38.69 with a P/E ratio of 13.3 and P/S ratio of 1.8. The dividend yield of BOK Financial Corp. stocks is 2.3%. BOK Financial Corp. had an annual average earning growth of 7.8% over the past 10 years. GuruFocus rated BOK Financial Corp. the business predictability rank of 4-star.

Highlight of Business Operations:

Average earning assets for the first quarter of 2009 increased $2.1 billion or

12% compared to the first quarter of 2008, primarily due to a $1.4 billion

increase in average securities and a $688 million increase in average loans.

Average available for sale securities, which consist largely of U.S. government

agency issued mortgage-backed securities, increased $1.2 billion. We purchase

securities to supplement earnings and to manage interest rate risk. Average

outstanding commercial loans increased $341 million and average residential

mortgage loans increased $331 million. Growth in average earning assets was

funded by a $1.8 billion increase in average deposits and a $318 million

increase in average borrowed funds. Average time deposits increased $990 million

compared with the first quarter of 2008. Average demand deposits increased $422

million and average interest-bearing transaction accounts increased $344 million

over the first quarter of 2008.



Average earning assets for the first quarter of 2009 increased $477 million

compared to the fourth quarter of 2008, primarily due to a $447 million increase

in average securities. Growth in average securities was due to both additional

purchases of U.S. government agency issued mortgage-backed securities and

increases in the fair value of securities held by the Company. Average

outstanding loans decreased $42 million due primarily to lower outstanding

commercial loan balances. Residential mortgage loans held for sale increased $80

million due to refinancing activity. Average deposits increased $756 million

compared with the fourth quarter of 2008, including a $494 million increase in

average interest-bearing transaction accounts, a $152 million increase in

average demand deposits and a $106 million increase in average time deposits.

Average funds purchased, repurchase agreements and other borrowed funds

decreased $361 million from the fourth quarter of 2008.





-

Table 2 - Other Operating Revenue

(In thousands)

Three Months Ended

-

March 31, Dec. 31, Sept. 30, June 30, March 31,

2009 2008 2008 2008 2008

-



Brokerage and trading revenue $ 24,699 $ 23,507 $ 30,846 $ (35,462) $ 23,913

Transaction card revenue 25,428 25,177 25,632 25,786 23,558

Trust fees and commissions 16,510 17,143 20,100 20,940 20,796

Deposit service charges and fees 27,405 29,239 30,404 30,199 27,686

Mortgage banking revenue 18,498 7,217 7,145 8,203 8,034

Bank-owned life insurance 2,317 2,682 2,829 2,658 2,512

Margin asset fees 67 187 1,934 4,460 1,967

Other revenue 6,583 5,778 7,768 6,965 5,391

-

Total fees and commissions 121,507 110,930 126,658 63,749 113,857

-

Gain (loss) on other assets 143 (7,420) (841) (1,149) 4

Gain (loss) on derivatives, net (1,664) (2,219) 4,366 (2,961) 2,113

Gain (loss) on securities, net 20,108 20,156 2,103 (5,242) 9,926

Total other-than temporary impairment losses (54,368) - - - (5,306)

Portion of loss recognized in other

comprehensive income (39,366) - - - -

-

Net impairment losses recognized in earnings (15,002) - - - (5,306)

-

Total other operating revenue $ 125,092 $ 121,447 $ 132,286 $ 54,397 $ 120,594

-





-

Table 3 - Personnel Expense

(Dollars in thousands)

Three Months Ended

-

March 31, Dec. 31, Sept. 30, June 30, March 31,

2009 2008 2008 2008 2008

-



Regular compensation $ 54,976 $ 57,594 $ 55,435 $ 54,024 $ 52,576

Incentive compensation:

Cash-based 20,586 20,315 20,110 19,503 19,287

Stock-based 1,409 (1,138) 68 2,760 2,272

-

Total incentive compensation 21,995 19,177 20,178 22,263 21,559

Employee benefits 15,656 10,924 11,936 13,310 13,971

-

Total personnel expense $ 92,627 $ 87,695 $ 87,549 $ 89,597 $ 88,106

-

Number of employees

(full-time equivalent) 4,374 4,300 4,231 4,137 4,135

-





-

Table 4 - Other Operating Expense

(In thousands)

Three Months Ended

-

March 31, Dec. 31, Sept. 30, June 30, March 31,

2009 2008 2008 2008 2008

-



Personnel $ 92,627 $ 87,695 $ 87,549 $ 89,597 $ 88,106

Business promotion 4,428 7,283 5,837 5,777 4,639

Professional fees and services 6,512 7,923 6,501 6,973 5,648

Net occupancy and equipment 16,258 14,901 15,570 15,100 15,061

Insurance 5,638 3,216 2,436 2,626 3,710

Data processing & communications 19,306 19,720 19,911 19,523 18,893

Printing, postage and supplies 4,571 3,823 4,035 4,156 4,419

Net (gains) losses and operating

expenses of repossessed assets 1,806 1,006 (136) (229) 378

Amortization of intangible assets 1,686 1,967 1,884 1,885 1,925

Mortgage banking costs 7,467 4,967 5,811 6,054 5,681

Change in fair value of mortgage

servicing rights (1,955) 26,432 5,554 767 1,762

Visa retrospective responsibility

obligation - (1,700) 1,700 - (2,767)

Other expense 7,450 8,209 7,638 7,039 5,949

-

Total other operating expense $ 165,794 $ 185,442 $ 164,290 $ 159,268 $ 153,404

-



The average outstanding balance of loans attributed to commercial banking was

$9.8 billion for the first quarter of 2009, up $464 million or 5% over the first

quarter of 2008. Energy loans averaged $2.0 billion, an increase of $304 million

or 17% over the first quarter of 2008 and commercial real estate loans averaged

$2.1 billion, up $125 million or 6% over the first quarter of 2008. Average

other commercial and industrial loans of $2.9 billion for the first quarter of

2009 were essentially flat compared to the first quarter of 2008. Small business

loans averaged $2.0 billion for the first quarter of 2009, down $155 million or

7% compared to the first quarter of 2008.



Read the The complete Report

Rating: 0.0/5 (0 votes)

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Email Hide