BOK Financial reports strong 3Q on mortgage banking growth
BY LAURIE WINSLOW World Staff Writer
Thursday, November 01, 2012
11/01/12 at 8:09 AM
Growth in mortgage banking revenue contributed to BOK Financial Corp.'s strong third-quarter results, the Tulsa-based regional financial services company announced Wednesday.
BOK reported net income of $87.4 million, or $1.27 per diluted share, compared with $85.1 million, or $1.24 per share, in last year's third quarter year ago.
Net income for the first nine months of the year was $268.6 million, or $3.92 per diluted share, compared with $218.9 million, or $3.19 per share, for the same period in 2011.
The bank had a "very solid" quarter as it experienced strong growth in loans, deposits and mortgage banking, said Steven Nell, chief financial officer.
BOK's mortgage company continues to do well in the low-interest-rate environment, originating more than $1 billion in loans in the third quarter - the highest level for any quarter on record, Nell said. About 61 percent of the activity was in refinancing, while 39 percent involved home purchases.
Outstanding loan balances totaled $11.8 billion at the end of September, up $256 million over the previous quarter. Commercial loan balances grew by $221 million, or 13 percent on an annualized basis, Nell said.
Deposits at the end of the quarter totaled $19.1 billion, up from $18.4 billion at the end of the second quarter and the 2011 third quarter. Both commercial and wealth management customers are keeping significant amounts of cash on their balance sheets, Nell said.
During the quarter, BOK Financial acquired Milestone Group, a Denver-based wealth management firm that specializes in working with high net worth individuals. At the time of the acquisition, the firm - with clients in Colorado and Nebraska - had nearly $1.3 billion in assets under management, BOK said.
The acquisition was the first for BOK Financial since 2007 when it expanded in the Denver area and Texas with multimillion-dollar acquisitions of bank companies.
Also during the third quarter, BOK Financial's Bank of Kansas City broke ground on a banking center in Lee's Summit, Mo., which is expected to open next year.
BOK's net interest revenue for the third quarter totaled $176.0 million compared to $175.4 million a year ago. Total fees and commissions grew to $166.3 million for the quarter, up from $154.5 million in the second quarter and $146.0 million a year ago at the same time.
Mortgage banking revenue largely drove that growth, rising to $50.3 million for the quarter from $39.5 million in the second quarter, BOK reported.
BOK's nonperforming assets continued to decline, and for the quarter totaled $264.0 million, down from nearly $388 million a year earlier.
The company recorded no provision for credit losses in the quarter compared to an $8 million negative provision in the second quarter.
Net charge-offs totaled $5.7 million compared with $10.2 million in the same quarter last year.
According to BOK, credit quality indicators and most economic factors are stable or improving in its primary markets.
BOK Financial's board has approved a quarterly cash dividend of 38 cents per common share payable on or about Nov. 30. Also, due to the company's continued strong performance and solid capital position, the board approved a special cash dividend of $1 per common share to be paid at the same time.
"We're having a great year," Nell said. "It's been the best earnings year we've ever had. ... We thought we would share some of this success with our shareholders with this special dividend."
BOK reported it had total assets of $27.1 billion on Sept. 30.
BOK Financial Corp. Earnings
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Original Print Headline: BOK profit in 3Q rises 2.7 percent
Laurie Winslow 918-581-8466
Steven Nell: The chief financial officer said BOK had a “very solid” quarter as it experienced strong growth in loans and deposits.