As filed with the Securities and Exchange Commission on May 15, 1997
================================================================================
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the Quarter Ended March 31, 1997
Commission File No. 0-19341
BOK FINANCIAL CORPORATION
Incorporated in the State of Oklahoma
I.R.S. Employer Identification No. 73-1373454
Bank of Oklahoma Tower
P.O. Box 2300
Tulsa, Oklahoma 74192
Registrant's Telephone Number,
Including Area Code (918) 588-6000
SECURITIES REGISTERED PURSUANT TO SECTION 12(b)
OF THE ACT: (NONE)
SECURITIES REGISTERED PURSUANT TO SECTION 12(g)
OF THE ACT:
COMMON STOCK ($.00006 Par Value)
Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding twelve months (or for such shorter period that the
Registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes X No
Indicate the number of shares outstanding of each of the Registrant's
classes of common stock, as of the latest practicable date: 21,211,270 shares of
common stock ($.00006 par value) as of April 30, 1997.
================================================================================
<PAGE> 2
BOK Financial Corporation
Form 10-Q
Quarter Ended March 31, 1997
Index
Part I. Financial Information
Management's Discussion and Analysis
of Financial Condition and
Results of Operations 2
Report of Management on Consolidated
Financial Statements 12
Consolidated Statements of Earnings 13
Consolidated Balance Sheets 15
Consolidated Statements of Changes
in Shareholders' Equity 17
Consolidated Statements of Cash Flows 18
Notes to Consolidated Financial Statements 20
Financial Summaries - Unaudited 24
Part II. Other Information
Item 6. Exhibits and Reports on Form 8-K 28
Signature 28
MANAGEMENT'S DISCUSSION AND ANALYSIS
HIGHLIGHTS
BOK Financial Corporation ("BOK Financial") recorded net income of $15.3 million
or $0.63 per fully diluted common share for the first quarter of 1997 compared
to $13.0 million or $0.54 per fully diluted common share for the first quarter
of 1996. Returns on average assets and equity were 1.30% and 16.92%,
respectively. This is compared to returns on average assets and equity of 1.25%
and 16.84%, respectively, for the same period of 1996.
BOK Financial completed the previously announced acquisitions of First National
Bank of Park Cities ("Park Cities") and First Texas Bank ("First Texas"). These
acquisitions, which added total assets of $438 million, furthers the development
of BOK Financial's niche strategy of serving small-business and middle-market
customers in complement to existing trust operations and energy lending in North
Texas.
Subsequent to March 31, BOK Financial received approval from the federal banking
regulators to begin securities underwriting through its subsidiary, Alliance
Securities Corp. Management intends to focus on underwriting municipal revenue
bonds and to perform related financial advisory services for communities in
Oklahoma and surrounding states.
<PAGE> 3
RESULTS OF OPERATIONS
Net interest revenue on a tax-equivalent basis was $37.5 million for the first
quarter of 1997 compared to $32.7 for the first quarter of 1996, an increase of
$4.8 million or 14.6%. Average earning assets increased by $518 million,
including $162 million from the Park Cities and First Texas acquisitions while
average interest bearing liabilities increased by $434 million. Demand deposit
accounts and equity funded the growth of earning assets in excess of interest
bearing liabilities. This improvement in the volume of total earning assets as
compared to interest bearing liabilities contributed $4.4 million to the
increase in net interest revenue. The combined effect of decreased yields on
earning assets and decreased costs of interest bearing liabilities contributed
$428 thousand.
TABLE 1 - VOLUME/RATE ANALYSIS
(In thousands)
Three months ended
March 31, 1997/1996
-----------------------------------------------
------Due to------
Yield
Change Volume /Rate
-----------------------------------------------
Tax-equivalent interest
revenue:
Securities $ 4,869 $ 4,291 $ 578
Trading securities (37) (35) (2)
Loans 3,580 4,554 (974)
Funds sold 309 333 (24)
- --------------------------------------------------------------------------------
Total 8,721 9,143 (422)
- --------------------------------------------------------------------------------
Interest expense:
Interest bearing
transaction deposits 1600 1,436 164
Savings deposits (65) (4) (61)
Time deposits (372) 355 (727)
Other borrowings 2,675 2,901 (226)
Subordinated debenture 96 96 -
- --------------------------------------------------------------------------------
Total 3,934 4,784 (850)
- --------------------------------------------------------------------------------
Tax-equivalent net
interest revenue $ 4,787 $ 4,359 $ 428
Change in tax-equivalent
adjustment (527)
- --------------------------------------------------------------------------------
Net interest revenue $ 4,260
================================================================================
(1) Changes attributable to both volume and yield are allocated to both volume
and yield/rate on an equal basis.
<PAGE> 4
Since its inception, BOK Financial has followed a strategy of utilizing its
capital resources by borrowing funds in the capital markets to supplement
deposit growth and investing in securities. This strategy frequently results in
a net interest margin which falls below those normally seen in the commercial
banking industry even though it provides positive net interest revenue because
of a relatively larger proportion of securities in earning assets. As more fully
discussed in the subsequent Interest Rate Sensitivity and Liquidity section,
management employs various techniques to control, within established parameters,
the interest rate and liquidity risk which results from this strategy.
Net interest margin, the ratio of net interest revenue to average earning assets
was 3.58% for the first quarter of 1997. This is compared to 3.53% for the first
quarter of 1996 and 3.45% for the fourth quarter of 1996. This increase in net
interest margin is primarily due to lower costs of interest deposits and
borrowed funds. The overall rates paid on interest bearing liabilities was 4.86%
compared to 4.97% for both the first quarter of 1996 and the fourth quarter of
1996. Additionally, the yield on earning assets increased by 4 basis points to
7.76% compared to the previous quarter.
TABLE 2 - OTHER OPERATING REVENUE
(In thousands)
Three Months Ended
----------------------------------------------------
March 31, Dec. 31, Sept. 30, June 30, March 31,
1997 1996 1996 1996 1996
----------------------------------------------------
Brokerage and trading
revenue $ 2,240 $ 1,964 $ 2,031 $ 1,823 $ 2,078
TransFund network revenue 2,543 2,310 2,236 2,153 2,096
Securities gains (losses),
net 262 (622) - (1,967) (18)
Trust fees and commissions 5,278 5,324 5,317 5,528 5,469
Service charges and fees
on deposit accounts 6,714 6,506 6,027 5,732 5,839
Mortgage banking revenue 6,948 7,206 7,103 6,056 5,869
Other revenue 6,467 4,846 4,514 4,641 5,251
- --------------------------------------------------------------------------------
Total $ 30,452 $ 27,534 $ 27,228 $ 23,966 $ 26,584
================================================================================
Other operating revenue increased $3.9 million or 14.6% compared to the same
quarter of 1996. This increase was primarily due to a $1.0 million or 17.0%
increase in servicing revenue on mortgage loans, a $929 thousand increase in
revenue from leasing activities, and an $875 thousand or 15% increase in deposit
fees. The increase in mortgage servicing revenue reflected the growth in the
volume of mortgage loans serviced by BOK Financial to $6.0 billion at March 31,
1997 compared to $5.4 billion at March 31, 1996. Revenue from leasing
activities, which is included in other revenue, increased to $1.3 million for
the first quarter of 1997 compared to $371 thousand for the same period of 1996.
The increase in deposit fees was consistent with the overall expansion of
economic activity in BOK Financial's primary market areas. Other operating
revenue for the first quarter of 1997 included a gain on the sale of student
loans of $1.1 million compared to a $1.0 million gain in the first quarter of
1996.
<PAGE> 5
TABLE 3 - OTHER OPERATING EXPENSE
(In thousands)
Three Months Ended
--------------------------------------------------
March 31, Dec. 31, Sept. 30, June 30, March 31,
1997 1996 1996 1996 1996
--------------------------------------------------
Personnel $ 19,294 $ 18,380 $ 17,759 $ 18,059 $ 17,747
Business promotion 1,950 1,459 1,618 1,801 1,494
Professional fees/services 1,496 1,286 1,458 1,420 1,242
Net occupancy, equipment
and data processing 8,320 8,029 7,799 7,845 7,158
FDIC and other insurance 333 89 4,377 555 539
Printing, postage and
supplies 1,825 1,769 1,683 1,763 1,577
Net gains and operating
expenses on repossessed
assets (412) (703) (2,706) (946) (197)
Amortization of intangible
assets 1,728 1,241 1,238 5,288 1,465
Mortgage banking costs 4,217 4,354 4,089 3,646 3,745
Other expense 2,975 2,411 2,982 3,343 2,872
- --------------------------------------------------------------------------------
Total $ 41,726 $ 38,315 $ 40,297 $ 42,774 $ 37,642
================================================================================
Operating expenses for the first quarter of 1997 increased $4.1 million or 10.8%
compared to the first quarter of 1996. Approximately $1.4 million of this
increase is due to operating expenses of Park Cities and First Texas. Other
notable increases included $1.0 million or 5.7% in personnel costs and $696
thousand or 24.2% in data processing costs. The increase in processing expense
is consistent with the increased volume of transactions between the two
quarters. Additionally, BOK Financial has increased its business promotion
activities to further capitalize on disruptions in banking relationships due to
recently announced mergers in Oklahoma. Control over the growth in operating
expenses relative to the increase in tax-equivalent revenue resulted in an
efficiency ratio of 62.3%, compared to 63.9% for the first quarter of 1996.
<PAGE> 6
Income tax expense increased to $7.4 million or 32.6% of pre-tax income for the
first quarter of 1997 compared to $5.8 million or 31% for the same period of
1996. The increase in the effective tax rate is due to an increase in
non-deductible expenses, primarily amortization expenses from the Park Cities
and First Texas acquisitions.
TABLE 4 - OTHER OPERATING EXPENSE, EXCLUDING
SIGNIFICANT OR NONRECURRING ITEMS
(In thousands)
Three Months Ended
--------------------------------------------------
March 31, Dec. 31, Sept. 30, June 30, March 31,
1997 1996 1996 1996 1996
-------------------------------------------------
Total Other Operating
Expense $ 41,726 $ 38,315 $ 40,297 $ 42,774 $ 37,642
FDIC Insurance premium
reduction, net of costs - - (3,820) - -
Net gains and operating
costs from repossessed
assets 412 703 2,706 946 197
Asset valuation charges - - - (4,071) (500)
Item processing conversion
and other related charges - - - (750) -
- -------------------------------------------------------------------------------
Total $ 42,138 $ 39,018 $ 39,183 $ 38,899 $ 37,339
================================================================================
RISK ELEMENTS
The aggregate loan portfolio at March 31, 1997 increased by $300 million to $2.5
billion compared to March 31, 1996, and by $105 million since December 31, 1996.
The year-to-date change in the loan portfolio includes increases of $79 million
and $59 million due to the acquisitions of Park Cities and First Texas,
respectively, partially offset by a $33 million decrease in the loan portfolios
of Bank of Oklahoma, N.A. and Bank of Arkansas, N.A. (formerly Citizens Bank of
Northwest Arkansas, N.A.). The largest decreases in outstanding loans were in
residential mortgage loans held for sale which decreased by $28 million, and
commercial real estate loans which decreased $16 million due to the payoff of
several multifamily real estate loans. These were partially offset by a $30
million increase in commercial loans, which was distributed across all loan
groups.
<PAGE> 7
Although the acquisitions of Park Cities and First Texas enhance the geographic
diversity of the loan portfolio, a substantial portion of the commercial and
consumer loans continues to be concentrated in Oklahoma and Northwest Arkansas.
This concentration subjects the portfolio to the general economic conditions
within BOK Financial's primary market area. Major segments of the commercial
loan portfolio are presented in Table 5. Commercial real estate loans are
secured primarily by properties located in the Tulsa or Oklahoma City
metropolitan areas.
TABLE 5 - LOANS
(In thousands)
March 31, Dec. 31, Sept. 30, June 30, March 31,
1997 1996 1996 1996 1996
-------------------------------------------------------
Commercial:
Energy $ 230,447 $ 217,056 $ 185,972 $ 176,685 $ 156,230
Manufacturing 163,312 137,529 126,356 139,509 148,068
Wholesale/retail 184,488 166,075 177,351 179,458 156,261
Agricultural 119,055 109,324 95,973 88,036 89,080
Loans for purchasing or
carrying securities 15,437 13,604 14,728 8,587 7,613
Other commercial and
industrial 346,785 340,602 341,352 287,339 288,518
Commercial real estate:
Construction and land
development 186,982 165,784 140,189 151,032 143,476
Other real estate loans 505,371 509,874 496,356 493,107 473,110
Residential mortgage:
Secured by 1-4 family
residential property 465,432 429,405 434,789 424,766 419,135
Residential mortgages
held for resale 67,192 95,332 66,310 73,335 102,836
- --------------------------------------------------------------------------------
Total $2,499,613 $2,394,580 $2,319,844 $2,244,698 $2,199,161
================================================================================
Nonperforming assets totaled $44.2 million at March 31, 1997 compared to $42.2
million at December 31, 1996. The increase was due primarily to a $1.6 million
increase in nonaccruing residential mortgage loans and a $1.4 million increase
in real estate owned. The increase in real estate owned was due to the First
Texas acquisition.
BOK Financial monitors loan performance on a portfolio and individual loan
basis. Nonperforming loans, which include all loans classified as doubtful or
loss, are reviewed at least quarterly. The loan review process involves
evaluating the credit worthiness of customers and their ability, based upon
current and anticipated economic conditions, to meet future principal and
interest payments. Loans may be identified which possess more than the normal
amount of risk due to deterioration in the financial condition of the borrower
or the value of the collateral. Because the borrowers are performing in
accordance with the original terms of the loan agreements and no loss of
principal or interest is anticipated, such loans are not included in the
nonperforming assets totals. These loans are assigned to various risk categories
in order to focus management's attention on the loans with higher risk of loss.
Loans assigned to the substandard category totaled $46 million at March 31, 1997
compared to $40 million at December 31, 1996. Special mention loans increased to
$105 million at March 31, 1997. The majority of the $43 million increase since
December 31, 1996 was attributable to less than satisfactory results from
several large borrowers in the energy, agriculture, and manufacturing
industries. These
<PAGE> 8
changes in performance are concentrated in a few specific
credits and, in the opinion of management, does not indicate a trend of
increasing future levels of special mention loans.
The balance of the special mention increase is due to a strategic decision in
which BOK Financial made, on a limited and strategically selective basis,
certain new loans which were classified as special mention at inception. These
loans were to borrowers whose banking relationships were being displaced by
merger activity in BOK Financial's primary markets. Generally, criteria for such
loans included a long-term, stable operating history with only temporary credit
deficiencies. Management expects to build a long-term banking relationship with
these customers by meeting their credit needs at this time. Approximately $15
million of such loans were added during the first quarter of 1997 and up to $15
million are being considered for the second quarter of 1997.
Subsequent to March 31, 1997, a $15 million loan was downgraded from pass to
special mention based upon the borrower's decision not to pursue additional
equity financing and BOK Financial's assessment that the collateral value did
not exceed the outstanding loan balance by an adequate amount. Although this
loan continues to perform in accordance with its contractual terms and no loss
of principal or interest is expected, management will closely monitor the loan
in the future.
TABLE 6 - NONPERFORMING ASSETS
(In thousands)
March 31, Dec. 31, Sept. 30, June 30, March 31,
1997 1996 1996 1996 1996
------------------------------------------------
Nonperforming assets:
Nonperforming loans:
Nonaccrual loans:
Commercial $ 9,332 $ 9,589 $10,844 $ 11,418 $ 12,399
Commercial real estate 5,418 5,306 4,323 8,528 10,138
Residential mortgage 4,138 2,580 3,333 3,001 3,136
Consumer 1,366 1,360 1,114 1,037 1,178
- --------------------------------------------------------------------------------
Total nonaccrual loans 20,254 18,835 19,614 23,984 26,851
Loans past due (90 days)(1) 17,838 18,816 17,379 17,424 15,023
- --------------------------------------------------------------------------------
Total nonperforming loans(1) 38,092 37,651 36,993 41,408 41,874
- --------------------------------------------------------------------------------
Other nonperforming assets:
Commercial real estate 2,710 2,586 4,158 3,342 2,949
Other 3,381 1,990 926 481 526
- --------------------------------------------------------------------------------
Total other nonperforming
assets 6,091 4,576 5,084 3,823 3,475
- --------------------------------------------------------------------------------
Total nonperforming assets $44,183 $42,227 $ 42,077 $ 45,231 $ 45,349
- --------------------------------------------------------------------------------
Ratios:
Reserve for loan losses to
nonperforming loans 127.37% 119.91% 121.53% 103.38% 94.48%
Nonperforming loans(1) to
period-end loans(2) 1.57 1.64 1.64 1.91 2.00
- --------------------------------------------------------------------------------
(1) Includes 1-4 family loans
guaranteed by agencies of
the U.S. government $15,083 $13,932 $ 13,741 $12,456 $12,165
(2) Excludes residential
mortgage loans held for sale
================================================================================
<PAGE> 9
The allowance for loan losses, which is available to absorb losses inherent in
the loan portfolio, totaled $49 million at March 31, 1997 compared to $45
million at December 31, 1996 or 1.99% and 1.96%, respectively, of total loans,
excluding loans held for sale. Losses on loans held for sale, principally
fixed-rate residential mortgage loans accumulated for placement in securitized
pools, are charged to earnings through adjustments in carrying value to the
lower of cost or market value in accordance with accounting standards applicable
to mortgage banking. Table 7 presents statistical information regarding the
reserve for loan losses.
TABLE 7 - SUMMARY OF LOAN LOSS EXPERIENCE
(In thousands)
Three Months Ended
--------------------------------------------------
March 31, Dec. 31, Sept. 30, June 30, March 31,
1997 1996 1996 1996 1996
--------------------------------------------------
Beginning balance $ 45,148 $ 44,959 $ 42,807 $ 39,561 $ 38,287
Loans charged-off:
Commercial 199 224 1,475 222 397
Commercial real estate 1 - 335 106 82
Residential mortgage 89 46 97 1
Consumer 951 1,214 663 820 735
- --------------------------------------------------------------------------------
Total 1,240 1,484 2,570 1,228 1,228
- --------------------------------------------------------------------------------
Recoveries of loans previously charged-off:
Commercial 367 821 1,670 449 807
Commercial real estate 148 162 2,747 741 463
Residential mortgage 64 67 21 44 130
Consumer 479 266 222 303 191
- --------------------------------------------------------------------------------
Total 1,058 1,316 4,660 1,537 1,591
- --------------------------------------------------------------------------------
Net loans charged-off
(recoveries) 182 168 (2,090) (309) (363)
Provision for loan losses 1,026 357 62 2,937 911
Addition due to acquisition 2,525 - - - -
- --------------------------------------------------------------------------------
Ending balance $ 48,517 $ 45,148 $ 44,959 $ 42,807 $ 39,561
- --------------------------------------------------------------------------------
Reserve to loans outstanding
at period-end(1) 1.99 1.96 2.00 1.97 1.89
Net loan losses
(recoveries) (annualized)
to average loans(1) 0.03 0.06 (0.39) (0.06) (.07)
- --------------------------------------------------------------------------------
(1) Excludes residential mortgage loans held for sale
================================================================================
The adequacy of the allowance for loan losses is assessed by management based
upon an evaluation of the current risk characteristics of the loan portfolio
including current economic conditions, historical experience, collateral
valuation, changes in the composition of the portfolio and other relevant
factors. A provision for loan losses is charged against earnings in amounts
necessary to maintain the adequacy of the
<PAGE> 10
allowance for loan losses. The provision for loan losses totaled $1.0 million
for the first quarter of 1997 compared to $911 thousand for the first quarter of
1996. Management believes that the allowance for loan losses is adequate for
each period presented based upon the evaluation criteria and information
available at that time.
Other assets included at March 31, 1997, $16.2 million of natural gas
compression and other equipment which is being leased to various customers.
These leases are generally designed to be operating leases where both legal and
economic ownership remains with BOK Financial. Lease payments are recorded as
income when earned. The equipment is being depreciated over estimated useful
lives. The lease terms are generally much shorter than the estimated useful
lives of the related equipment. As each lease expires, the remaining net book
value of the equipment is evaluated for impairment based upon current market
values, re-leasing opportunities and other relevant factors.
INTEREST RATE SENSITIVITY AND LIQUIDITY
BOK Financial's asset / liability management policy addresses several
complementary goals: assuring adequate liquidity, maintaining an appropriate
balance between interest sensitive assets and liabilities, and maximizing net
interest revenue. The responsibility for attaining these goals rests with the
Asset / Liability Committee which operates under policy guidelines which have
been established by the Board of Directors. These guidelines limit the negative
acceptable variation in net interest revenue and economic value of equity due to
a 200 basis point rate increase or decrease to + / - 10%, establish maximum
levels for short-term assets, and public and brokered deposits, and establish
minimum levels for unpledged assets, among other things. Compliance with these
guidelines is reviewed monthly. At March 31, 1997, BOK Financial is within all
guidelines established under these policies.
Interest rate sensitivity, the risk associated with changes in interest rates,
is of primary importance within the banking industry. Management has established
strategies and procedures to protect net interest revenue against significant
changes in interest rates. Generally, these strategies are designed to achieve
an acceptable level of net interest revenue based upon management's projections
of future changes in interest rates..
Management simulates the potential effect of changes in interest rates through
computer modeling which incorporates both the current gap position and the
expected magnitude of the repricing of specific types of assets and liabilities.
This modeling is performed assuming expected interest rates over the next twelve
months based on both a Amost likely@ rate scenario and on two Ashock test@ rate
scenarios, the first assuming a 200 basis point increase and the second assuming
a 200 basis point decrease over the next twelve months. An independent source is
used to determine the most likely interest rates for the next year.
The estimated impact of changes in interest rates on net interest revenue is
projected not to exceed a 0.3% decrease within the + / - 200 basis point range
of assumptions. However, this modeling indicates that under the 200 basis point
decrease scenario the after-tax value of BOK Financial=s capitalized mortgage
servicing rights, net of mortgage loan refinancing income, would decrease by
approximately $6.6 million. While this decrease in value would largely be offset
by an increase in the value of the securities portfolio, current accounting
principles require that the net decreased value of mortgage loan servicing
rights would be charged to earnings while the increased value of available for
sale securities would be credited to shareholders= equity. The result is an
estimated decrease in net income of 10.4%. Additionally, a 200 basis point
increase in interest rates would decrease the economic value of equity by 7.6%
due primarily to the decrease in value of the securities portfolio. This
decrease is compared against the applicable policy which limits the negative
impact of a 200 basis point change in interest rates on the economic value of
equity to 10%.. These simulations are based on numerous assumptions regarding
the timing and extent of repricing characteristics. Actual results may differ
significantly.
<PAGE> 11
BOK Financial uses interest rate swaps, a form of off-balance sheet derivative
product, in managing its interest rate sensitivity. These swaps are used
primarily to more closely match the interest paid on certain long-term, fixed
rate certificates of deposit with earning assets. Swaps allow BOK Financial to
offer these deposits to its customers without altering the desired repricing
characteristics. BOK Financial accrues and periodically receives amounts from
the counter parties to these swaps and accrues and periodically makes payments
to the counterparties. During the first quarter of 1997, income from these swaps
exceeded costs of the swaps by $183 thousand. Credit risk from these swaps is
closely monitored and counterparties to these contracts are selected on the
basis of their credit worthiness among other factors. Derivative products are
not used for speculative purposes.
TABLE 8 - INTEREST RATE SWAPS
(In thousands)
Notional Pay Receive
Amount Rate Rate
---------------------------------------------------------
Expiration:
1998 63,000 5.47 - 5.78%(1) 6.64 - 7.96%
1999 22,000 5.51 (1) 6.80 - 7.68
2006 16,500 7.26 5.56 (1)
- --------------------------------------------------------------------------------
(1) Rates are variable based on LIBOR and reset quarterly or semiannually.
================================================================================
The best measure of liquidity is the ability to obtain funds to meet cash
requirements. Liquidity is achieved through maturities of earning assets,
securities available for sale and loans held for sale. On the liability side,
liquidity depends on the availability of deposits and short-term borrowings in
both the local and national markets for the subsidiary banks.
Cash provided by operating activities totaled $56 million for the first quarter
of 1997 ($27 million excluding the net change in mortgage loans held for sale)
compared to cash used by operating activities of $11 million (or cash provided
of $19 million excluding the net change in mortgage loans held for sale) in the
same period of 1996.
Investing activities used $202 million, primarily for the purchase of available
for sale securities. These securities were primarily funded by an increase in
borrowed funds.
<PAGE> 12
TABLE 9 - CAPITAL RATIOS
March 31, Dec. 31, Sept. 30, June 30, March 31,
1997 1996 1996 1996 1996
--------------------------------------------------
to average assets
Risk-based capital
Tier 1 capital 8.96% 10.49% 10.26% 10.43% 10.08%
Total capital 10.81 11.74 11.52 11.69 11.33
Leverage 6.34 7.46 7.34 7.09 6.80
================================================================================
REPORT OF MANAGEMENT ON CONSOLIDATED FINANCIAL STATEMENTS
Management is responsible for the consolidated financial statements which have
been prepared in accordance with generally accepted accounting principles. In
management's opinion, the accompanying unaudited consolidated financial
statements contain all adjustments (consisting of normal recurring accruals)
necessary to present fairly the financial condition, results of operations and
cash flows of BOK Financial and its subsidiaries at the dates and for the
periods presented.
The financial information included in this interim report has been prepared by
management without audit by independent public accountants and should be read in
conjunction with BOK Financial's 1996 Form 10-K to the Securities and Exchange
Commission which contains audited financial statements.
<PAGE> 13
CONSOLIDATED STATEMENTS OF EARNINGS
(In Thousands Except Share Data)
For Three months ended
March 31,
--------------------------------
1997 1996
--------------------------------
INTEREST REVENUE
Loans $ 51,355 $ 47,866
Taxable securities 22,567 20,251
Tax-exempt securities 4,119 2,002
- --------------------------------------------------------------------------------
Total securities 26,686 22,253
- --------------------------------------------------------------------------------
Trading securities 58 95
Funds sold 711 402
- --------------------------------------------------------------------------------
Total interest revenue 78,810 70,616
- --------------------------------------------------------------------------------
INTEREST EXPENSE
Deposits 29,984 28,821
Other borrowings 13,668 10,993
Subordinated debenture 96 -
- --------------------------------------------------------------------------------
Total interest expense 43,748 39,814
- --------------------------------------------------------------------------------
NET INTEREST REVENUE 35,062 30,802
PROVISION FOR LOAN LOSSES 1,026 911
- --------------------------------------------------------------------------------
NET INTEREST REVENUE AFTER
PROVISION FOR LOAN LOSSES 34,036 29,891
- --------------------------------------------------------------------------------
OTHER OPERATING REVENUE
Brokerage and trading revenue 2,240 2,078
TransFund network revenue 2,543 2,096
Securities gains (losses), net 262 (18)
Trust fees and commissions 5,278 5,469
Service charges and fees on
deposit accounts 6,714 5,839
Mortgage banking revenue, net 6,948 5,869
Other revenue 6,467 5,251
- --------------------------------------------------------------------------------
Total other operating revenue 30,452 26,584
- --------------------------------------------------------------------------------
OTHER OPERATING EXPENSE
Personnel 19,294 17,747
Business promotion 1,950 1,494
Professional fees and services 1,496 1,242
Net occupancy, equipment and
data processing 8,320 7,158
FDIC and other insurance 333 539
Printing postage and supplies 1,825 1,577
Net gains and operating expenses
on repossessed assets (412) (197)
<PAGE> 14
Amortization of intangible assets 1,728 1,465
Mortgage banking costs 4,217 3,745
Other expense 2,975 2,872
- --------------------------------------------------------------------------------
Total other operating expense 41,726 37,642
- --------------------------------------------------------------------------------
INCOME BEFORE TAXES 22,762 18,833
Federal and state income tax 7,415 5,838
- --------------------------------------------------------------------------------
NET INCOME $ 15,347 $ 12,995
================================================================================
EARNINGS PER SHARE:
Net income
Primary $ 0.70 $ 0.60
- --------------------------------------------------------------------------------
Fully diluted $ 0.63 $ 0.54
- --------------------------------------------------------------------------------
AVERAGE SHARES USED IN COMPUTATION:
Primary 21,493,730 21,187,219
- --------------------------------------------------------------------------------
Fully diluted 24,310,945 24,017,812
================================================================================
See accompanying notes to consolidated financial statements.
<PAGE> 15
CONSOLIDATED BALANCE SHEETS
(In Thousands Except Share Data)
March 31, December 31, March 31,
1997 1996 1996
------------------------------------
ASSETS
Cash and due from banks $ 342,913 $ 322,791 $ 270,364
Funds sold 76,387 44,760 36,000
Trading securities 3,887 6,454 6,753
Securities:
Available for sale 1,787,637 1,459,122 1,367,894
Investment (fair value:
March 31, 1997 - $202,325;
December 31, 1996 - $199,549;
March 31, 1996 - $192,572) 202,750 198,408 192,481
- --------------------------------------------------------------------------------
Total securities 1,990,387 1,657,530 1,560,375
- --------------------------------------------------------------------------------
Loans 2,499,613 2,394,580 2,199,161
Less reserve for loan losses 48,517 45,148 39,561
- --------------------------------------------------------------------------------
Net loans 2,451,096 2,349,432 2,159,600
- --------------------------------------------------------------------------------
Premises and equipment, net 62,039 47,479 48,032
Accrued revenue receivable 49,566 46,020 45,324
Excess cost over fair value of net
assets acquired and core deposit
premiums (net of accumulated amortization:
March 31, 1997 - $32,486;
December 31, 1996 - $30,758;
March 31, 1996 - $22,991) 74,926 28,276 36,043
Mortgage servicing rights 67,005 61,544 50,895
Real estate and other repossessed
assets 6,091 4,576 3,475
Other assets 60,215 51,838 45,054
- --------------------------------------------------------------------------------
Total assets $5,184,512 $4,620,700 $4,261,915
================================================================================
<PAGE> 16
LIABILITIES AND SHAREHOLDERS' EQUITY
Noninterest-bearing demand deposit $ 822,984 $ 696,853 $ 632,720
Interest-bearing deposits:
Transaction 1,046,562 954,546 826,865
Savings 112,292 97,019 104,176
Time 1,616,860 1,508,337 1,629,254
- --------------------------------------------------------------------------------
Total deposits 3,598,698 3,256,755 3,193,015
- --------------------------------------------------------------------------------
Funds purchased and repurchase
agreements 802,990 669,176 522,108
Other borrowings 325,530 277,128 182,831
Accrued interest, taxes and expense 50,332 46,047 46,667
Other liabilities 15,786 11,628 11,325
Subordinated debenture 20,000 -
- --------------------------------------------------------------------------------
Total liabilities 4,813,336 4,260,734 3,955,946
- --------------------------------------------------------------------------------
Stockholders' equity:
Preferred stock 23 23 23
Common stock ($.00006 par value;
2,500,000,000 shares authorized;
shares issued and outstanding:
March 31, 1997 - 21,193,453;
December 31, 1996 - 21,148,729;
March 31, 1996 - 20,436,431) 1 1 1
Capital surplus 176,982 176,093 157,844
Retained earnings 197,864 182,892 159,347
Treasury stock (shares at cost:
March 31, 1997 - 30,512;
December 31, 1996 - 16,834) (844) (428) -
Unrealized gain/ (loss) on securities
available for sale (2,845) 1,472 (11,102)
Less notes receivable from
exercise of stock options (5) (87) (144)
- --------------------------------------------------------------------------------
Total shareholders' equity 371,176 359,966 305,969
- --------------------------------------------------------------------------------
Total liabilities and
shareholders' equity $5,184,512 $4,620,700 $4,261,915
================================================================================
See accompanying notes to consolidated financial statements.
<PAGE> 17
<TABLE>
CONSOLIDATED STATEMENTS OF CHANGES IN
SHAREHOLDERS EQUITY
(In Thousands)
PreferredStock Common Stock Capital Retained Treasury Stock Unrealized Notes
Shares Amount Shares Amount Surplus Earnings Shares Amount Gain/(loss) Receivable Total
--------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Balances at
December 31, 1995 250,102 $ 23 20,416 $ 1 $157,395 $146,727 - $ - $ (2,427) $(154) $301,565
Net income - - - - - 12,995 - - - - 12,995
Exercise of stock
options - - 2 - 34 - - - - - 34
Payments on stock
option notes receivable - - - - - - - - - 10 10
Preferred dividends
paid in shares of
common stock - - 16 - 375 (375) - - - - -
Director retainer
shares - - 2 - 40 - - - - - 40
Change in unrealized
net gain(loss) on
securities
available for sale - - - - - - - - (8,675) - (8,675)
- -------------------------------------------------------------------------------------------------------------------------
Balances at
March 31, 1996 250,102 $ 23 20,436 $ 1 $157,844 $159,347 - $ - $(11,102) $(144) $305,969
=========================================================================================================================
Balances at
December 31, 1996 250,102 $ 23 21,149 $ 1 $176,093 $182,892 17 $(428) $ 1,472 $ (87) $359,966
Net income - - - - - 15,347 - - - - 15,347
Exercise of stock
options - - 25 - 469 - 14 (416) - - 53
Payments on stock
option notes receivable - - - - - - - - - 82 82
Preferred dividends
paid in shares of
common stock - - 17 - 375 (375) - - - - -
Director retainer
shares - - 2 - 45 - - - - - 45
Change in unrealized
net gain(loss) on
securities
available for sale - - - - - - - - (4,317) - (4,317)
- -------------------------------------------------------------------------------------------------------------------------
Balances at
March 31, 1997 250,102 $ 23 21,193 $ 1 $176,982 $197,864 31 $(844) $ (2,845) $ (5) $371,176
=========================================================================================================================
See accompanying notes to consolidated financial statements.
</TABLE>
<PAGE> 18
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands Except Share Data)
Three Months Ended
March 31,
---------------------
1997 1996
---------------------
CASH FLOW FROM OPERATING ACTIVITIES:
Net income $ 15,347 $ 12,995
Adjustments to reconcile net income
to net cash provided/(used) by operating
activities:
Provisions for loan losses 1,026 912
Depreciation and amortization 6,577 5,583
Net amortization of investment security
discounts and premiums 790 697
Net gain on sales of assets (2,339) (1,862)
Mortgage loans originated for resale (180,488) (194,294)
Proceeds from sale of mortgage loans
held for resale 209,336 164,483
Change in trading securities 2,567 1,024
Change in accrued revenue receivable 2,071 (4,203)
Change in other assets (4,312) (2,476)
Change in accrued interest, taxes and expense 5,568 4,922
Change in other liabilities (304) 1,370
- --------------------------------------------------------------------------------
Net cash provided/(used) by operating activities 55,839 (10,849)
- --------------------------------------------------------------------------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from maturities of investment securities 4,822 6,959
Proceeds from maturities of available for sale securities 59,084 107,179
Purchases of investment securities (9,187) (20,404)
Purchases of available for sale securities (317,023) (159,472)
Proceeds from sales of available for sale securities 75,508 36,193
Loans originated or acquired net or principal collected 2,748 975
Proceeds from sales of assets 2,978 26,334
Purchases of assets (20,239) (4,813)
Cash and cash equivalents of branches & subsidiaries
acquired and sold, net (1,240) (200)
- --------------------------------------------------------------------------------
Net cash used by investing activities (202,549) (7,249)
- --------------------------------------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Net change in demand deposits,
transaction deposits, money market deposits,
and savings accounts (4,053) 26,696
Net change in certificates of deposit 406 228,610
Net change in other borrowings 181,926 (242,867)
Issuance of subordinated debenture 20,000 -
Issuance of preferred, common and treasury stock, net 98 74
<PAGE> 19
Payments on stock option notes receivable 82 10
- --------------------------------------------------------------------------------
Net cash provided by financing activities 198,459 12,523
- --------------------------------------------------------------------------------
Net change in cash and cash equivalents 51,749 (5,575)
Cash and cash equivalents at beginning of period 367,551 311,939
- --------------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 419,300 $ 306,364
================================================================================
CASH PAID FOR INTEREST $ 42,118 $ 38,876
================================================================================
CASH PAID FOR TAXES $ 385 $ 253
================================================================================
NET LOANS TRANSFERRED TO
REPOSSESSED REAL ESTATE AND OTHER ASSETS $ 694 $ 223
================================================================================
PAYMENT OF PREFERRED STOCK DIVIDENDS IN COMMON STOCK $ 375 $ 375
================================================================================
See accompanying notes to consolidated financial statements .
<PAGE> 20
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(1) BASIS OF PRESENTATION
The accounting and reporting policies of BOK Financial Corporation conform to
generally accepted accounting principles and to generally accepted practices
within the banking industry. The Consolidated Financial Statements of BOK
Financial include the accounts of BOK Financial and its subsidiaries, primarily
Bank of Oklahoma, N.A. ("BOk"), Bank of Arkansas N.A. (formerly Citizens Bank of
Northwest Arkansas, N.A.), First National Bank of Park Cities, and First Texas
Bank. Certain prior period balances have been reclassified to conform with the
current period presentation.
(2) MORTGAGE BANKING ACTIVITIES
At March 31, 1997, BOk owned the rights to service 83,330 mortgage loans with
outstanding principal balances of $6.0 billion, including $234 million serviced
for BOk. The weighted average interest rate and remaining term was 7.70% and 280
months, respectively.
Activity in capitalized mortgage servicing rights and related valuation
allowance during the current period is as follows:
Capitalized Mortgage Servicing Rights
------------------------------------------------------
Valuation
Purchased Originated Total Allowance Net
------------------------------------------------------
Balance at
December 31, 1996 $ 57,256 $ 5,188 $ 62,444 $ (900) $ 61,544
Additions 7,079 935 8,014 - 8,014
Amortization expense (2,253) (300) (2,553) - (2,553)
------------------------------------------------------
Balance at
March 31, 1997 $ 62,082 $ 5,823 $ 67,905 $ (900) $ 67,005
======================================================
Estimated fair value of
mortgage servicing
rights (1) $ 85,013 $ 10,936 $ 95,949 $ - $ 95,949
======================================================
(1) Excludes approximately $16.0 million of loan servicing rights on mortgage
loans originated prior to the adoption of FAS 122.
<PAGE> 21
(3) DISPOSAL OF AVAILABLE FOR SALE SECURITIES
Sales of available for sale securities for the three months ending March 31,
1997 resulted in gains and losses as follows (in thousands):
Proceeds 75,508
Gross realized gains 435
Gross realized losses 173
Related federal and state
income tax expense (benefit) 85
(4) ACQUISITIONS
During the first quarter of 1997, BOK Financial completed the acquisitions of
Park Cities Bancshares, Inc. and its subsidiary, First National Bank of Park
Cities, Dallas, Texas (collectively "Park Cities") and First Texcorp, Inc. and
its subsidiary First Texas Bank, Dallas, Texas (collectively "First Texas").
<PAGE> 22
On February 12, 1997, BOK Financial issued notes totaling $10.9 million and
$40.0 million in cash to acquire all outstanding common shares of Park Cities
and on March 4, 1997, BOK Financial paid $39.3 million to acquire all
outstanding common shares of First Texas. Both of these acquisitions were
accounted for by the purchase method of accounting. Preliminary allocation of
the purchase price to the net assets acquired is as follows:
Park First
Cities Texas
---------- ----------
Cash and cash equivalents $ 59,417 $ 32,164
Securities 102,505 45,967
Loans 79,124 58,714
Less allowance for loan losses (1,081) (1,444)
-------- ---------
Loans, net 78,043 57,270
Premises and equipment 3,357 1,784
Core deposit premium 6,544 4,565
Other assets 4,864 4,518
-------- ---------
Total assets acquired 254,730 146,268
-------- ---------
Deposits:
Noninterest bearing 67,275 56,441
Interest bearing 158,352 62,664
-------- ---------
Total deposits 225,627 119,105
Borrowed funds 290 333
Other liabilities 955 1,838
--------- ---------
Total liabilities assumed 226,872 121,276
--------- ---------
Net assets acquired (27,858) (24,992)
Purchase price 50,855 39,263
--------- ---------
Goodwill $ 22,997 $ 14,271
========= =========
In conjunction with these acquisitions, BOK Financial issued a $20.0
subordinated debenture to an affiliate of its principal shareholder, George B.
Kaiser. The terms of this debt provide for quarterly interest payments based
upon the 30 day LIBOR rate plus 70 basis points. Principal payment is due on
March 4, 2004.
<PAGE> 23
(5) EARNINGS PER SHARE
In February 1997, the Financial Accounting Standards Board issued Statement No.
128, Earnings Per Share, which is required to be adopted on December 31, 1997.
At that time, BOKF will be required to change the method currently used to
compute earnings per share and to restate for all periods presented. This new
standard requires the disclosure of basic earnings per share and diluted
earnings per share in place of primary and fully diluted earnings per share. The
pro forma results of applying FAS 128 to the first quarter of 1997 are basic
earnings per share of $0.71 and diluted earnings per share of $0.63.
(6) CONTINGENT LIABILITIES
In the ordinary course of business, BOK Financial and its subsidiaries are
subject to legal actions and complaints. Management believes, based upon the
opinion of counsel, that the actions and liability or loss, if any, resulting
from the final outcomes of the proceedings, will not be material in the
aggregate.
<PAGE> 24
<TABLE>
QUARTERLY FINANCIAL SUMMARY - UNAUDITED
Consolidated Daily Average Balances,
Average Yields and Rates
(In Thousands Except Share Data)
For Three months ended
-----------------------------------------------------------
March 31, 1997 December 31, 1996
-----------------------------------------------------------
Average Revenue/ Yield Average Revenue/ Yield
Balance Expense(1) /Rate Balance Expense(1) /Rate
-----------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Taxable securities $ 1,484,137 $ 22,861 6.25% $ 1,326,104 $ 20,042 6.01%
Tax-exempt securities(1) 339,542 6,135 7.33 330,195 6,129 7.38
- --------------------------------------------------------------------------------------------
Total securities 1,823,679 28,996 6.45 1,656,299 26,171 6.29
- --------------------------------------------------------------------------------------------
Trading securities 3,790 58 6.21 3,870 72 7.40
Funds sold 50,967 711 5.66 24,949 356 5.68
Loans(2) 2,414,234 51,446 8.64 2,329,981 50,414 8.61
Less reserve for
loan losses 46,771 -- -- 45,455 -- --
- --------------------------------------------------------------------------------------------
Loans, net of reserve 2,367,463 51,446 8.81 2,284,526 50,414 8.78
- --------------------------------------------------------------------------------------------
Total earning assets 4,245,899 81,211 7.76 3,969,644 77,013 7.72
- --------------------------------------------------------------------------------------------
Cash and other assets 532,386 475,824
- --------------------------------------------------------------------------------------------
Total assets $ 4,778,285 $ 4,445,468
============================================================================================
LIABILITIES AND
SHAREHOLDERS' EQUITY
Transaction deposits $ 988,110 7,987 3.28 $ 891,053 7,678 3.43
Savings deposits 103,542 564 2.21 96,609 595 2.45
Other time deposits 1,565,153 21,433 5.55 1,533,447 21,582 5.60
- --------------------------------------------------------------------------------------------
Total interest-bearing
deposits 2,656,805 29,984 4.58 2,521,109 29,855 4.71
- --------------------------------------------------------------------------------------------
Other borrowings 990,278 13,668 5.60 887,502 12,707 5.70
Subordinated debenture 6,666 96 5.84 -- -- --
- --------------------------------------------------------------------------------------------
Total interest-bearing
liabilities 3,653,749 43,748 4.86 3,408,611 42,562 4.97
- --------------------------------------------------------------------------------------------
Demand deposits 688,440 633,441
Other liabilities 68,159 60,023
Shareholders' equity 367,937 343,393
- --------------------------------------------------------------------------------------------
<PAGE> 25
Total liabilities and
shareholders' equity $ 4,778,285 $ 4,445,468
- --------------------------------------------------------------------------------------------
TAX-EQUIVALENT NET
INTEREST REVENUE(1) 37,463 2.90 34,451 2.75
TAX-EQUIVALENT NET
INTEREST REVENUE(1)
TO EARNING ASSETS 3.58 3.45
Less tax-equivalent
adjustment(1)
2,401 2,207
- --------------------------------------------------------------------------------------------
NET INTEREST REVENUE 35,062 32,244
Provision for loan losses 1,026 357
Other operating revenue 30,452 27,534
Other operating expense 41,726 38,315
- --------------------------------------------------------------------------------------------
INCOME BEFORE TAXES 22,762 21,106
Federal and state income tax 7,415 6,540
- --------------------------------------------------------------------------------------------
NET INCOME $ 15,347 $ 14,566
- --------------------------------------------------------------------------------------------
EARNINGS PER SHARE:
NET INCOME
Primary $ 0.70 $ 0.66
- --------------------------------------------------------------------------------------------
Fully Diluted $ 0.63 $ 0.60
============================================================================================
<FN>
(1) Tax - equivalent at the statutory federal and state rates for all periods
presented. The taxable equivalent adjustments shown above are for
comparative purposes.
(2) The loan averages include loans on which the accrual of interest has been
discontinued and are stated net of unearned income.
</FN>
</TABLE>
<PAGE> 26
<TABLE>
For Three months ended
- ---------------------------------------------------------------------------------------------------------------
September 30, 1996 June 30, 1996 March 31, 1996
- ---------------------------------------------------------------------------------------------------------------
Average Revenue/ Yield Average Revenue/ Yield Average Revenue/ Yield
Balance Expense(1) /Rate Balance Expense(1) /Rate Balance Expense(1) /Rate
- ---------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C> <C> <C> <C> <C>
$ 1,281,588 $ 19,610 6.09% $ 1,258,382 $ 18,841 6.02% $ 1,274,853 $ 19,095 6.02%
315,844 5,920 7.46 304,450 5,720 7.56 269,115 5,032 7.52
- ---------------------------------------------------------------------------------------------------------------
1,597,432 25,530 6.36 1,562,832 24,561 6.32 1,543,968 24,127 6.28
- ---------------------------------------------------------------------------------------------------------------
4,116 73 7.06 6,416 100 6.27 6,005 95 6.36
21,040 298 5.63 43,274 574 5.33 27,409 402 5.90
2,254,863 49,173 8.68 2,233,711 49,085 8.84 2,189,423 47,866 8.79
43,510 -- -- 40,311 -- -- 38,966 -- --
- ---------------------------------------------------------------------------------------------------------------
2,211,353 49,173 8.85 2,193,400 49,085 9.00 2,150,457 47,866 8.95
- ---------------------------------------------------------------------------------------------------------------
3,833,941 75,074 7.79 3,805,922 74,320 7.85 3,727,839 72,490 7.82
- ---------------------------------------------------------------------------------------------------------------
469,575 468,001 454,281
- ---------------------------------------------------------------------------------------------------------------
$ 4,303,516 $ 4,273,923 $ 4,182,120
===============================================================================================================
$ 864,904 7,411 3.41 $ 832,127 6,860 3.32 $ 804,723 6,387 3.19
101,328 616 2.42 103,274 624 2.43 103,931 629 2.43
1,548,832 21,757 5.59 1,605,179 22,122 5.54 1,533,143 21,805 5.72
- ---------------------------------------------------------------------------------------------------------------
2,515,064 29,784 4.71 2,540,580 29,606 4.69 2,441,797 28,821 4.75
- ---------------------------------------------------------------------------------------------------------------
780,037 11,160 5.69 732,122 10,167 5.59 778,343 10,993 5.68
-- -- -- -- -- -- -- -- --
- ---------------------------------------------------------------------------------------------------------------
3,295,101 40,944 4.94 3,272,702 39,773 4.89 3,220,140 39,814 4.97
- ---------------------------------------------------------------------------------------------------------------
631,981 629,973 588,624
53,609 58,979 63,065
322,825 312,269 310,291
- ---------------------------------------------------------------------------------------------------------------
<PAGE> 27
$ 4,303,516 $ 4,273,923 $ 4,182,120
===============================================================================================================
34,130 2.85 34,547 2.96 32,676 2.85
3.54 3.65 3.53
2,184 2,100 1,874
- ---------------------------------------------------------------------------------------------------------------
31,946 32,447 30,802
62 2,937 911
27,228 23,966 26,584
40,297 42,774 37,642
- ---------------------------------------------------------------------------------------------------------------
18,815 10,702 18,833
5,840 (2,889) 5,838
- ---------------------------------------------------------------------------------------------------------------
$ 12,975 $ 13,591 $ 12,995
===============================================================================================================
$ 0.59 $ 0.62 $ 0.60
- ---------------------------------------------------------------------------------------------------------------
$ 0.54 $ 0.57 $ 0.54
===============================================================================================================
</TABLE>
<PAGE> 28
PART II. Other Information
Item 6. Exhibits and Reports on Form 8-K
(A) Exhibits:
No. 27 Financial Data Schedule filed herewith electronically.
(B) Reports on Form 8-K:
No reports on Form 8-K were filed during the three months ended
March 31, 1997.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
BOK FINANCIAL CORPORATION
-------------------------
(Registrant)
Date: April 15, 1997 /s/ James A. White
--------------- -------------------
James A. White
Executive Vice President and
Chief Financial Officer
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
This schedule contains summary financial information extracted from the BOK
Financial Corporation's 10-Q for the period ended March 31, 1997 and is
qualified in its entirety by reference to such financial statements.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> MAR-31-1997
<CASH> 342,913
<INT-BEARING-DEPOSITS> 100
<FED-FUNDS-SOLD> 76,387
<TRADING-ASSETS> 3,887
<INVESTMENTS-HELD-FOR-SALE> 1,787,637
<INVESTMENTS-CARRYING> 202,750
<INVESTMENTS-MARKET> 202,325
<LOANS> 2,499,613
<ALLOWANCE> 48,517
<TOTAL-ASSETS> 5,184,512
<DEPOSITS> 3,598,698
<SHORT-TERM> 1,025,367
<LIABILITIES-OTHER> 66,118
<LONG-TERM> 123,153
0
23
<COMMON> 1
<OTHER-SE> 371,176
<TOTAL-LIABILITIES-AND-EQUITY> 5,184,512
<INTEREST-LOAN> 51,355
<INTEREST-INVEST> 26,686
<INTEREST-OTHER> 769
<INTEREST-TOTAL> 78,810
<INTEREST-DEPOSIT> 29,984
<INTEREST-EXPENSE> 43,748
<INTEREST-INCOME-NET> 35,062
<LOAN-LOSSES> 1,026
<SECURITIES-GAINS> 262
<EXPENSE-OTHER> 41,726
<INCOME-PRETAX> 22,762
<INCOME-PRE-EXTRAORDINARY> 15,347
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 15,347
<EPS-PRIMARY> .70
<EPS-DILUTED> .63
<YIELD-ACTUAL> 3.58
<LOANS-NON> 20,254
<LOANS-PAST> 17,838
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 45,519
<ALLOWANCE-OPEN> 45,148
<CHARGE-OFFS> 1,240
<RECOVERIES> 1,058
<ALLOWANCE-CLOSE> 48,517
<ALLOWANCE-DOMESTIC> 48,517
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
