BOK Financial earnings rise 41 percent in second quarter
BY LAURIE WINSLOW World Staff Writer
Thursday, August 02, 2012
8/02/12 at 2:57 AM
Growth in non-interest revenue and continued credit improvements boosted BOK Financial Corp.'s net income by 41 percent in the second quarter, the regional financial services company reported Wednesday.
Tulsa-based BOK saw earnings rise to $97.6 million, or $1.43 a diluted share, from $69.0 million, or $1 a share, in the same quarter a year ago.
For the first six months of 2012, net income rose 35 percent to $181.2 million, or $2.65 a diluted share, from $133.8 million, or $1.95 a share, a year earlier.
"Earnings remain very solid," said Steven Nell, chief financial officer of BOK, parent of Bank of Oklahoma.
"The biggest driver would be the mortgage business that we had in the quarter," he said. "We continue to benefit from a low-rate environment."
Mortgage banking revenue grew to $39.5 million from $19.4 million a year ago, BOK reported.
About half of the mortgage activity involved new home purchases, and the other half focused on refinancing of existing mortgages, Nell said.
He also noted that some non-recurring items boosted net income for the quarter, along with net-interest revenue growth and continued credit improvements.
The company also recognized a $14 million pretax gain on the sale of common stock received in a settlement of a defaulted loan and recovered $2.9 million in interest from a non-accruing commercial loan.
Total fees and commissions grew to $154.5 million from $127.8 million in last year's second quarter. As part of that, BOK Financial saw an increase in brokerage and trading revenue, trust fees and commissions, and deposit service charges and fees.
Loans continued to grow, though they slowed a bit in the second quarter compared to the first quarter, Nell said.
Net interest revenue was $181.4 million for the quarter compared with $174 million in the year-earlier quarter. After provision for credit losses, net interest revenue was $189.4 million, up from $171.3 million.
Credit quality was strong, with non-performing assets continuing their decline as the company works through problem assets, Nell said. Non-performing assets totaled $278.6 million for the quarter, down from $351.5 million a year ago.
Net charge-offs totaled $4.8 million compared with $8.5 million last year.
The company recorded an $8 million negative provision for credit losses for the quarter.
On July 18, BOK Financial refunded $7.1 million to the city of Tulsa. BOK had received the money from the city in 2008 to settle claims related to a defaulted loan with Great Plains Airlines. Last year, the Oklahoma Supreme Court ruled that the bank must return that payment to the city.
The refund will increase the bank company's third-quarter net charge-offs.
During the second quarter, BOK Financial Mortgage opened offices in Austin and San Antonio, Texas.
BOK currently has 18 loan officers plus support staff between the two markets.
On Tuesday, BOK Financial's board of directors approved a quarterly cash dividend of 38 cents per common share payable on or about Aug. 31 to shareholders of record Aug. 17.
At the end of the quarter, BOK Financial had total assets of $25.6 billion, total loans of $11.6 billion and total deposits of $18.4 billion.
BOK Financial Corp. Earnings
|
2012 2Q |
2011 2Q |
2012 Half-year |
2011 Half-year |
Pct. Change |
| Net income |
$97.6 mil. |
$69.0 mil. |
$181.2 mil. |
$133.8 mil. |
35% |
| Net per share |
$1.43 |
$1.00 |
$2.65 |
$1.95 |
36% |
Original Print Headline: BOK earnings rise 41 percent
Laurie Winslow 918-581-8466
laurie.winslow@tulsaworld.com
