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

October 30, 2009 | About:
10qk

10qk

18 followers
BOK Financial Corp. (BOKF) filed Quarterly Report for the period ended 2009-09-30.

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 $2.91 billion; its shares were traded at around $42.97 with a P/E ratio of 14.6 and P/S ratio of 1.9. The dividend yield of Bok Financial Corp. stocks is 2.2%. 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:



- - - - - - - - -

Consolidated Statements of Earnings (Unaudited)

(In thousands, except share and per share data)

Three Months Ended September 30, Nine Months Ended September 30,

2009 2008 2009 2008

Interest revenue - - - - - - -



Loans $ 139,344 $ 179,847 $ 425,764 $ 557,029

Residential mortgage loans held for sale 2,198 1,743 7,791 4,122

Taxable securities 81,890 78,030 246,605 226,044

Tax-exempt securities 2,203 2,668 7,766 8,009

- - - - - - - - -

Total securities 84,093 80,698 254,371 234,053

- - - - - - - - -

Trading securities 593 780 2,170 2,796

Funds sold and resell agreements 18 290 62 1,485

- - - - - - - - -

Total interest revenue 226,246 263,358 690,158 799,485

- - - - - - - - -

Interest expense

Deposits 36,340 69,269 133,370 223,530

Borrowed funds 3,887 24,188 14,146 88,767

Subordinated debentures 5,558 5,553 16,756 16,773

- - - - - - - - -

Total interest expense 45,785 99,010 164,272 329,070

- - - - - - - - -

Net interest revenue 180,461 164,348 525,886 470,415

Provision for credit losses 55,120 52,711 147,280 129,592

- - - - - - - - -

Net interest revenue after provision for credit losses 125,341 111,637 378,606 340,823

- - - - - - - - -

Other operating revenue

Brokerage and trading revenue 24,944 30,846 71,437 19,297

Transaction card revenue 26,264 25,632 79,225 74,976

Trust fees and commissions 16,315 20,100 49,685 61,836

Deposit service charges and fees 30,464 30,404 86,290 88,289

Mortgage banking revenue 13,197 7,145 51,577 23,382

Bank-owned life insurance 2,634 2,829 7,369 7,999

Margin asset fees 51 1,934 186 8,361

Other revenue 6,087 7,768 18,794 20,124

- - - - - - - - -

Total fees and commissions 119,956 126,658 364,563 304,264

- - - - - - - - -

Gain (loss) on other assets, net 3,223 (841) 4,339 (1,986)

Gain (loss) on derivatives, net (294) 4,366 (2,995) 3,518

Gain on securities, net 12,266 2,103 38,845 6,787

Total other-than-temporary impairment losses (6,133) - (61,764) (5,306)

Portion of loss recognized in other comprehensive income (2,752) - (41,839) -

- - - - - - - - -

Net impairment losses recognized in earnings (3,381) - (19,925) (5,306)

- - - - - - - - -

Total other operating revenue 131,770 132,286 384,827 307,277

- - - - - - - - -

Other operating expense

Personnel 98,012 87,549 286,830 265,252

Business promotion 4,827 5,837 13,824 16,253

Professional fees and services 7,555 6,501 21,430 19,122

Net occupancy and equipment 15,884 15,570 48,115 45,731

Insurance 6,092 2,436 17,628 8,772

FDIC special assessment - - 11,773 -

Data processing and communications 20,413 19,911 60,171 58,327

Printing, postage and supplies 3,716 4,035 12,359 12,610

Net (gains) losses and operating expenses of repossessed assets 3,497 (136) 6,299 13

Amortization of intangible assets 1,686 1,884 5,058 5,694

Mortgage banking costs 8,065 5,811 24,868 17,546

Change in fair value of mortgage servicing rights 2,981 5,554 (6,839) 8,083

Visa retrospective responsibility obligation - 1,700 - (1,067)

Other expense 6,004 7,638 18,780 20,626

- - - - - - - - -

Total other operating expense 178,732 164,290 520,296 476,962

- - - - - - - - -

Income before taxes 78,379 79,633 243,137 171,138

Federal and state income tax 24,772 22,958 81,925 54,546

- - - - - - - - -

Net income before non-controlling interest 53,607 56,675 161,212 116,592

Net income (loss) attributable to non-controlling interest 2,947 (10) 3,405 (1,197)

- - - - - - - - -

Net income attributable to BOK Financial Corp. $ 50,660 $ 56,685 $ 157,807 $ 117,789

- - - - - - - - -

Earnings per share:

- - - - - - - - -

Basic $ 0.75 $ 0.84 $ 2.33 $ 1.75

- - - - - - - - -

Diluted $ 0.75 $ 0.84 $ 2.33 $ 1.74

- - - - - - - - -

Average shares used in computation:

- - - - - - - - -

Basic 67,392,059 67,263,317 67,351,436 67,305,916

- - - - - - - - -

Diluted 67,513,700 67,432,444 67,450,172 67,463,012

- - - - - - - - -

Dividends declared per share $ 0.24 $ 0.225 $ 0.705 $ 0.65

- - - - - - - - -

See accompanying notes to consolidated financial statements.





-

Consolidated Balance Sheets

(In Thousands Except Share Data)

September 30, December 31, September 30,

2009 2008 2008

-

Assets (Unaudited) (Footnote 1) (Unaudited)



Cash and due from banks $ 1,383,244 $ 581,133 $ 669,914

Funds sold and resell agreements 39,465 113,809 105,594

Trading securities 100,898 99,601 92,588

Securities:

Available for sale 8,176,631 5,800,691 5,047,524

Available for sale securities pledged to creditors 181,931 590,760 1,232,006

Investment (fair value: September 30, 2009 - $244,774;

December 31, 2008 - $245,769;

September 30, 2008 - $243,820) 238,101 242,344 243,617

Mortgage trading securities 320,971 399,211 198,201

-

Total securities 8,917,634 7,033,006 6,721,348

-

Residential mortgage loans held for sale 172,301 129,246 113,121

Loans 11,611,564 12,876,006 12,679,970

Less reserve for loan losses (280,902) (233,236) (186,516)

-

Loans, net of reserve 11,330,662 12,642,770 12,493,454

-

Premises and equipment, net 286,702 277,458 267,749

Accrued revenue receivable 68,617 96,673 118,096

Intangible assets, net 356,152 361,209 363,177

Mortgage servicing rights, net 66,689 42,752 68,680

Real estate and other repossessed assets 89,507 29,179 28,088

Bankers' acceptances 9,882 12,913 23,933

Derivative contracts 397,110 452,604 572,391

Cash surrender value of bank-owned life insurance 244,456 237,006 234,293

Receivable on unsettled securities trades - 239,474 169,494

Other assets 413,522 385,815 335,882

-

Total assets $ 23,876,841 $ 22,734,648 $ 22,377,802

-

Liabilities and Shareholders' Equity

Noninterest-bearing demand deposits $ 3,462,188 $ 3,082,379 $ 3,005,163

Interest-bearing deposits:

Transaction 7,380,449 6,562,350 6,606,622

Savings 167,896 154,635 156,847

Time (includes deposits carried at fair value: $98,068 at September

30, 2009; $632,754 at December 31, 2008; $528,715 at

September 30, 2008) 4,084,813 5,183,243 4,817,551

-

Total deposits 15,095,346 14,982,607 14,586,183

-

Funds purchased and repurchase agreements 2,198,900 3,025,399 3,667,225

Other borrowings 3,189,948 1,522,054 1,077,450

Subordinated debentures 398,502 398,407 398,372

Accrued interest, taxes and expense 123,409 133,220 120,280

Bankers' acceptances 9,882 12,913 23,933

Derivative contracts 395,197 667,034 377,973

Due on unsettled securities trades 133,974 - -

Other liabilities 127,689 132,902 166,597

-

Total liabilities 21,672,847 20,874,536 20,418,013

-

Shareholders' equity:

Common stock ($.00006 par value; 2,500,000,000 shares authorized; shares issued

and outstanding: September 30, 2009 - 70,137,096; December 31, 2008

- 69,884,749; September 30, 2008 - 69,838,173) 4 4 4

Capital surplus 750,487 743,411 740,578

Retained earnings 1,537,373 1,427,057 1,406,971

Treasury stock (shares at cost: September 30, 2009 - 2,429,549;

December 31, 2008 - 2,411,663; September 30, 2008 - 2,404,336) (102,088) (101,329) (100,801)

Accumulated other comprehensive loss (763) (222,886) (106,249)

-

Total shareholders' equity 2,185,013 1,846,257 1,940,503

Non-controlling interest 18,981 13,855 19,286

-

Total equity 2,203,994 1,860,112 1,959,789

-

Total liabilities and equity $ 23,876,841 $ 22,734,648 $ 22,377,802

-

See accompanying notes to consolidated financial statements.





-

Consolidated Statements of Changes in Equity (Unaudited)

(In Thousands)

Accumulated

Other Total Non-

Common Stock Comprehensive Capital Retained Treasury Stock Shareholders' Controlling Total

- -

Shares Amount Loss Surplus Earnings Shares Amount Equity Interest Equity

-

Balances at



December 31, 2007 69,465 $ 4 $(31,234) $722,088 $1,332,954 2,159 $ (88,428) $1,935,384 $ 18,849 $1,954,233

Effect of

implementing FAS

159, net of income taxes - - - - 62 - - 62 - 62

Comprehensive income:

Net income from BOKF - - - - 117,789 - - 117,789 - 117,789

Net income (loss)

attributable to

non-controlling interest - - - - - - - - 1,197 1,197

Other comprehensive

loss, net of tax - - (75,015) - - - - (75,015) - (75,015)

-

Comprehensive income 42,774 1,197 43,971

-

Treasury stock purchase - - - - - 166 (7,992) (7,992) - (7,992)

Exercise of stock options 373 - - 11,359 - 79 (4,381) 6,978 - 6,978

Tax benefit on exercise of

stock options, net - - - 1,004 - - - 1,004 - 1,004

Stock-based compensation - - - 6,127 - - - 6,127 - 6,127

Cash dividends on

common stock - - - - (43,834) - - (43,834) - (43,834)

Capital calls, net - - - - - - - - (760) (760)

-

Balances at

September 30, 2008 69,838 $ 4 $(106,249) $740,578 $1,406,971 2,404 $(100,801) $1,940,503 $ 19,286 $1,959,789

-



Balances at

December 31, 2008 69,885 $ 4 $(222,886) $743,411 $1,427,057 2,412 $(101,329) $1,846,257 $ 13,855 $1,860,112

Comprehensive income:

Net income from BOKF - - - - 157,807 - - 157,807 - 157,807

Net income (loss)

attributable to

non-controlling interest - - - - - - - - (3,405) (3,405)

Other comprehensive

income, net of tax - - 222,123 - - - - 222,123 - 222,123

-

Comprehensive income 379,930 (3,405) 376,525

-

Exercise of stock options 252 - - 3,351 - 18 (759) 2,592 - 2,592

Tax benefit on exercise of

stock options, net - - - (539) - - - (539) - (539)

Stock-based compensation - - - 4,264 - - - 4,264 - 4,264

Cash dividends on

common stock - - - - (47,491) - - (47,491) - (47,491)

Capital calls, net - - - - - - - - 8,531 8,531

-

Balances at

September 30, 2009 70,137 $ 4 $ (763) $750,487 $1,537,373 2,430 $(102,088) $2,185,013 $ 18,981 $2,203,994

-





Cash paid for interest $ 184,734 $ 329,982

-

Cash paid for taxes $ 97,689 $ 80,441

-

Net loans transferred to repossessed real estate and other assets $ 79,627 $ 25,532

-





September 30,

-

2009 2008

-

Not Recognized in OCI (1) Not Recognized in OCI (1)

- -

Amortized Fair Gross Unrealized Amortized Fair Gross Unrealized

Cost Value Gain Loss Cost Value Gain Loss

-



Municipal and other tax-exempt $230,868 $237,520 $6,667 $ (15) $238,042 $238,208 $ 1,530 $ (1,364)

Other debt securities 7,233 7,254 21 - 5,575 5,612 37 -

-

Total $238,101 $244,774 $6,688 $ (15) $243,617 $243,820 $ 1,567 $ (1,364)

-

December 31, 2008

-

Not Recognized in OCI (1)

-

Amortized Fair Gross Unrealized

Cost Value Gain Loss

-

Municipal and other tax-exempt $235,791 $239,178 $3,736 $(349)

Other debt securities 6,553 6,591 38 -

-

Total $242,344 $245,769 $3,774 $(349)

-



Read the The complete ReportBOKF is in the portfolios of David Dreman of Dreman Value Management, John Keeley of Keeley Fund Management.

About the author:

10qk
GuruFocus - Stock Picks and Market Insight of Gurus

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