BOK Financial's (BOKF) second-quarter earnings rose from a year earlier and surpassed expectations as fee revenue increased and credit quality continued to improve.
The $25.6 billion-asset company said Wednesday that it earned $97.6 million in the second quarter, 41% higher than a year earlier. Its earnings per share totaled $1.43, beating analysts' estimates by 30 cents, according to Thomson Reuters. For the first six months of the year, the company earned $181.2 million, up 35% from the same period a year earlier.
All of the Tulsa, Okla., company's sources of noninterest revenue increased over the previous quarter, led by a 20% rise in mortgage banking revenue, Stan Lybarger, president and chief executive, said in a news release.
Fees and commissions totaled $154.5 million, up roughly 7% from the previous quarter and 21% higher than a year earlier. Mortgage banking revenue roughly doubled from a year earlier to $39.5 million
Improvements in credit quality also increased net income by more than $14 million and BOK recognized a $14 million pretax gain from the sale of common stock received in settlement of a defaulted loan, Lybarger said.
Nonperforming assets fell almost 21%, to $278.6 million, while nonaccruing loans decreased almost 28%, to $144.5 million, from a year earlier. Net chargeoffs totaled $4.8 million, down more than 43% from a year earlier.
BOK recorded an $8 million credit for its provision for credit losses compared with a charge of $2.7 million a year earlier.
