Acquisition, commercial loan demand boost BOK's 4Q profit

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BOK Financial in Tulsa, Okla., rode strong commercial loan growth and the largest acquisition in its history to a $108,5 million profit in the fourth quarter.

The $38 billion-asset company earned $1.50 per share, or 6 cents better than the mean estimate of analysts surveyed by FactSet Research Systems.

“This quarter, and all throughout the year, we saw growth in net interest margin and net interest income, combined with strong, broad-based, loan growth,” President and CEO Steven Bradshaw said in a press release Wednesday.

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Early in the fourth quarter, BOK also closed on its $1 bilion purchase of the Denver-based CoBiz Financial, a $3.8 billion-asset commercial bank that specialized in health care lending and public finance.

“Integration is well underway, and we are already capitalizing on our opportunities in Colorado and Arizona — two important growth markets,” Bradshaw said.

Net interest revenue increased 32%, or $68.8 million, to $285.7 million. CoBiz added $43.1 million, the company said. The net interest margin widened 43 basis points to 3.40%.

Total loans increased 26% to $21.6 billion in the fourth quarter. Commercial loans increased 27% to $13.6 billion, commercial real estate increased 37% to $4.8 billion, residential mortgages rose 13% to $2.2 billion, and personal loans increased 6% to $1 billion.

Excluding the CoBiz acquisition, loans would have risen 9% on a yearly basis. Within its commercial-and-industrial book, energy loans increased 22% to $3.6 billion, and health care loans grew 7.8% to $2.7 billion.

Total deposits increased 14% to $25.3 billion. The CoBiz deal accounted for most of that growth.

Fees and commissions increased a little more than 1% to $160 million in the fourth quarter.

Operating expenses increased 12%, or a little over $30 million, to $284.6 million from the year-ago quarter. Closing costs associated with CoBiz added $14.5 million to BOK’s operating expenses in the quarter.

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