Tighter margins held back BOK Financial in Tulsa, Okla., last quarter.

The $28 billion-asset company reported a profit of $76.7 million, down 4% from the same period last year. It earned $1.10 per share, beating the consensus estimate of analysts polled by Bloomberg by six cents.

Total loans expanded by 8%, to $13.4 billion, thanks primarily to an uptick in commercial lending.

However, lower margins and yields cut into profits. BOK's net interest margin narrowed by 5 basis points, to 2.75%. And income from interest-bearing assets dipped 2%, to $166.1 million.

Growth in operating expenses also contributed to the decline in profits. Noninterest expenses increased 2%, to $214.7 million, partially because of increases in data-processing costs, as well as professional fees related to risk management.

Noninterest income was $162.6 million, unchanged from last year.

Asset quality improved. Net chargeoffs declined 15%, to $2 million. The company reported no allowance for problem loans.

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