UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
July 2, 2008
BOK FINANCIAL CORPORATION
(Exact name of registrant as specified in its charter)
Oklahoma 000-19341 73-1373454
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
Bank of Oklahoma Tower, Boston Avenue at Second Street, Tulsa, Oklahoma 74172
(Address of principal executive offices)
Registrant's telephone number, including area code:
(918) 588-6000
_____________________N/A___________________________
(Former name or former address, if changes since last report)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:
|_| Written communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425).
|_| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12).
|_| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
Act (17 CFR 240.14d-2(b)).
|_| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
Act (17 CFR 240.13e-4(c)).
INFORMATION TO BE INCLUDED IN THE REPORT
ITEM 2.02. Results of Operations and Financial Condition.
BOK Financial Corporation (the "Company") has completed a preliminary
review of internal asset quality as part of its regular quarterly control
process. As a result of that review, the Company expects credit costs to
increase compared to the first quarter of 2008. The Company currently expects to
record a credit loss provision for the second quarter of between $30 million and
$35 million and expects net loan charge-offs to be within a range of $12 million
to $14 million. The provision for credit losses was $17.6 million and net loans
charged off totaled $8.9 million for the first quarter of 2008.
Non-performing assets are expected to be between $150 million and $165
million at quarter end, up from $126 million at March 31, 2008. Non-performing
assets include approximately $8 million of mortgage loans subject to government
guarantee and $14 million of assets subject to a cash escrow for credit losses
from a recent acquisition. The increase in non-performing assets includes $17
million of residential real estate development and construction exposures in
Arizona, including Tucson, a market that has more recently been impacted by
adverse real estate trends. Arizona real estate development and construction
loans represent approximately $152 million of the Company's $12.7 billion total
loan portfolio. The net loan charge-offs include $3.9 million from one credit in
the services segment of the Oklahoma loan portfolio. The remaining net loan
charge-offs are individually less than $1 million.
The Company expects Other Real Estate Owned to continue to increase in the
coming quarters as it tends to hold properties rather than elect a bulk sale
exit strategy at distressed prices. The Company will compare the cost of carry
for each property to the return potential from holding the property in order to
maximize shareholder value.
In addition, the Company expects to record a quarterly charge within a
range of $2.5 million to $3.0 million related to certain community development
residential mortgage loans that were sold with recourse. These mortgage loans
were underwritten to standards approved by U.S. government agencies, including
full documentation. However, these loans generally required a smaller initial
down payment and have a greater loss exposure. The principal balance of these
loans subject to recourse obligations is approximately $392 million;
approximately 70% of these loans are to borrowers in Oklahoma. The reserve for
credit risk from these loans is expected to total approximately $7.5 million at
the end of the quarter. The Company suspended originating and selling these
types of loans in the first quarter of 2008.
The Company completed a preliminary review of its investment securities
portfolio for Other Than Temporary Impairment. The Company does not expect any
impairment charges in the second quarter as a result of that review.
The Company expects to release earnings for the second quarter of 2008 on
Tuesday, July 15th.
About BOK Financial Corporation
BOK Financial is a regional financial services company that provides
commercial and consumer banking, investment and trust services, mortgage
origination and servicing, and an electronic funds transfer network. Holdings
include Bank of Albuquerque, N.A., Bank of Arizona, N.A., Bank of Arkansas,
N.A., Bank of Oklahoma, N.A., Bank of Texas, N.A., Colorado State Bank & Trust,
N.A., Bank of Kansas City, N.A., BOSC, Inc., the TransFund electronic funds
network, and Southwest Trust Company, N.A. Shares of BOK Financial are traded on
the NASDAQ under the symbol BOKF. For more information, visit www.bokf.com.
This current report contains forward-looking statements that are based on
management's beliefs, assumptions, current expectations, estimates and
projections about BOK Financial, the financial services industry and the economy
generally. Words such as "anticipates," "believes," "estimates," "expects,"
"forecasts," "plans," "projects," variations of such words and similar
expressions are intended to identify such forward-looking statements. Management
judgments relating to and discussion of the provision and allowance for credit
losses involve judgments as to future events and are inherently forward-looking
statements. Assessments that BOK Financial's acquisitions and other growth
endeavors will be profitable are necessary statements of belief as to the
outcome of future events based in part on information provided by others which
BOK Financial has not independently verified. These statements are not
guarantees of future performance and involve certain risks, uncertainties, and
assumptions which are difficult to predict with regard to timing, extent,
likelihood and degree of occurrence. Therefore, actual results and outcomes may
materially differ from what is expected, implied or forecasted in such
forward-looking statements. Internal and external factors that might cause such
a difference include, but are not limited to (1) the ability to fully realize
expected cost savings from mergers within the expected time frames, (2) the
ability of other companies on which BOK Financial relies to provide goods and
services in a timely and accurate manner, (3) changes in interest rates and
interest rate relationships, (4) demand for products and services, (5) the
degree of competition by traditional and nontraditional competitors, (6) changes
in banking regulations, tax laws, prices, levies and assessments, (7) the impact
of technological advances and (8) trends in consumer behavior as well as their
ability to repay loans. BOK Financial and its affiliates undertake no obligation
to update, amend or clarify forward-looking statements, whether as a result of
new information, future events, or otherwise.
Signature
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 hereunto duly authorized.
BOK FINANCIAL CORPORATION
By: /s/ Steven E. Nell
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Steven E. Nell
Executive Vice President
Chief Financial Officer
Date: July 2, 2008