BOK Financial in Tulsa, Oklahoma, reported a small drop in third-quarter profit, as a decline in the value of mortgage servicing rights offset loan and fee income growth.

The $30.6 billion-asset company's net income fell 1% to of $74.9 million. Earnings per share were unchanged at $1.09.

BOK recorded an $11.8 million decline in the fair value of its mortgage servicing rights. The change in value reduced third-quarter net income by $4.4 million.

Net interest income before the loan-loss provision rose 7.1% to $178.6 million. BOK recorded a $7.5 million provision for credit migration and loan portfolio growth. The net interest margin shrank 6 basis points to 2.61%.

Total loans grew 12.3% to $15.4 billion. Business loans rose 14.3% to $9.8 billion. Commercial real estate loans rose 18.8% to $3.2 billion.

Fee income grew 3.9% to $164.7 million, with growth in mortgage banking revenue, card fees, and fiduciary and asset management services.

Noninterest expense rose 1.3% to $224.6 million, on higher salaries, data processing and mortgage banking costs. BOK in November announced it would close or relocate 39 in-store branches, to reduce yearly costs by $7 million to $8 million.

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