Healthy commercial loan growth and record wealth management revenues helped to lift first-quarter profits at BOK Financial in Tulsa, Okla.
The $33.7 billion-asset BOK said that net income increased 19% to $105.6 million from the same quarter last year. Earnings per share came to $1.61, or 9 cents higher than the mean estimate of analysts polled by FactSet Research Systems.
President and CEO Steven Bradshaw attributed the company’s first-quarter gains to a number of factors, including strong commercial and industrial loan growth, a widening net interest margin and wealth management revenue, which topped $100 million for the first time.
“The economy across the BOK Financial footprint is strong, the financial markets are healthy, and the credit environment remains benign with no trouble spots on the horizon,” he said. “Accordingly, we are optimistic about prospects for continued earnings growth through the remainder of 2018.”
Net interest revenue increased 11% to $224.7 million, and the net interest margin expanded 18 basis points to 2.99%.
Total loans increased 2% to $17.3 billion. While commercial real estate loans declined 9% to $3.5 billion, commercial and industrial loans increased 6% to $10.9 billion. The C&I growth was driven largely by a 17% increase in energy loans to $2.9 billion.
On the consumer side, residential mortgages remained relatively flat at $1.9 billion, but personal loans increased 14% to $965.6 million.
Total deposits declined 1.7% to $22.2 billion.
Fees and commission revenue increased 2.5% to $159 million. Mortgage banking revenues increased 3% to $26 million, and card revenue increased 15% to $21 million.
Expenses increased 3.7% to $244.4 million.
Nonperforming assets fell 16.7% to $278 million and represented 1.60% of total assets, compared with 1.96% a year ago. Net charge-offs totaled $1.3 million, compared with $747,000 of net recoveries last year. The company also recorded a $5 million negative provision for credit losses in the first quarter, due to improving credit metrics.