BOK Financial reports record 2012 earnings
BY LAURIE WINSLOW World Staff Writer
Thursday, January 31, 2013
1/31/13 at 7:05 AM
BOK Financial Corp. generated record earnings in 2012 as net income grew 23 percent, driven largely by strong mortgage banking activity, the company reported Wednesday.
The Tulsa-based regional banking company recorded net income of $351.2 million, or $5.13 per diluted share, compared with $285.9 million, or $4.17 per share, in 2011.
Net income for the fourth quarter grew 23 percent and totaled $82.6 million, or $1.21 per diluted share, compared with $67.0 million, or 98 cents a share, for the 2011 fourth quarter.
Steven Nell, chief financial officer, called 2012 an "exceptional year of significant growth in clients, talent and revenue."
Non-interest revenue increased 20 percent over 2011, led by tremendous growth in mortgage banking revenue, said BOK, whose holdings include Bank of Oklahoma.
BOK said it originated more than $3.7 billion in mortgage loans last year. Most of that BOK sold into the secondary mortgage market in which residential mortgages are assembled into pools and sold to investors. Even after those are sold into the secondary market, BOK retains relationships with its mortgage clients through its ongoing servicing of those loans, which also generates revenue, Nell said.
Mortgage banking revenue grew to $169.3 million for the year, up from $91.6 million in 2011. Overall, loans grew by more than $1 billion, or 9 percent.
"We had really good commercial and industrial growth," Nell said. "Many of our markets, particularly Oklahoma, Texas, Colorado and Kansas City had double-digit loan growth in 2012. And we had good growth in energy lending activities."
In addition to mortgage banking revenue, brokerage and trading revenue rose nearly $23 million over the previous year.
"While persistently low interest rates and modest economic growth present a challenge for all banks, including BOK Financial, we expect the company to continue to perform well," said President and CEO Stan Lybarger, in a written comment. "Our outlook for the upcoming year includes continued loan growth, increased non-interest revenue and operating expense discipline."
Net interest revenue for the quarter was $173.4 million, up from $171.5 million in the year earlier
Deposits totaled $21.2 billion on Dec. 31, up from $18.8 billion a year earlier.
"Commercial customers continue to maintain high account balances due to continued economic uncertainty and persistently low yields available on high-quality investment alternatives," according to the company's release.
Sales of businesses or assets by customers also drove deposit growth in the fourth quarter.
Credit quality continued to improve for the year as economic factors stabilize or improve in BOK's primary markets, the company stated.
"We continue to work through credit quality and try to work through any issues. ... Our performing asset levels have improved significantly. Charge-offs have gone down significantly," Nell said.
BOK's nonperforming assets totaled $276.7 million at the end of the quarter, down from $356.9 million in the same quarter a year earlier. Total nonaccruing loans were $134.4 million for the quarter, up from $131.9 million in the third quarter, but below $201.3 million recorded a year ago.
The company recorded a $14 million negative provision for credit losses in the fourth quarter compared to no provision for credit losses in the third quarter. Net charge-offs totaled $4.3 million at the end of the quarter compared with $9.5 million a year ago.
BOK's capital levels are strong, which gives the bank company a lot of flexibility to serve clients with lending needs and opens the way for any merger or acquisition opportunities if they develop within the company's geographic footprint, Nell said.
Strong capital levels and good earnings enabled BOK to pay a regular dividend every quarter last year plus a special dividend in the fourth quarter of $1 per common share, Nell said.
The board of directors approved a quarterly cash dividend of 38 cents per common share payable on or about March 1.
At the end of December, BOK Financial had total assets of $28.1 billion.
BOK Financial Corp. Earnings
|Net income (loss)
|Net per share
Original Print Headline: BOK Financial reports record earnings in 2012
Laurie Winslow 918-581-8466