BOK Financial in Tulsa, Okla., reported lower quarterly profit that reflected a still-elevated loan-loss provision.
The $32 billion-asset company said in a press release Wednesday that its second-quarter net income fell 18% from a year earlier to $66.3 million, or $1 a share.
BOK recorded a $20 million provision in the quarter that, while down from the first quarter, was much higher than the $4 million the company set aside a year earlier. The company said that energy price stability had contributed to "improving credit metric trends." Still, nonperforming energy loans increased by $8.6 million during the second quarter.
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The $31 billion-asset company said in a press release that Marty Grunst will also join its executive leadership team on Aug. 1.
July 13 -
BOK Financial continued to diversify its lending, booking strong increases in health care, manufacturing and commercial real estate credits. Progress on that front, however, was overshadowed by ongoing deterioration in its energy portfolio.
April 27 -
The rise in oil prices in recent months is welcome news for the energy sector, but it doesn't mean that oil and gas firms and the banks that lend to them are out of the woods just yet.
June 16
"Stability in the commodity price environment translated into lower credit costs for the quarter and reduced concern about spillover impact on the economies in energy states such as Oklahoma, Texas and Colorado," Steven Bradshaw, the company's chief executive, said in the release.
Net interest income rose 4% to $183 million. Total loans increased by 9% to $16.4 billion. BOK said in its release that it continues to lend to energy firms, providing $172 million in new loan commitments to 20 new borrowers during the second quarter. The net interest margin widened by 2 basis points to 2.63%.
Noninterest income rose 7% to $189 million as most fee businesses showed improvement. Gains on derivatives and securities offset a $16 million loss tied to a change in the fair value of mortgage-servicing rights.
Noninterest expenses increased by 12% to $255 million because of higher costs tied to personnel, professional fees and data processing.
