Rising interest income and wealth management revenue drove fourth-quarter profits at BOK Financial in Tulsa, Okla., amid flat loan growth and declines in some of its other fee businesses.
Net income for the $32.3 billion-asset BOK totaled $72.5 million in the quarter, a 45% year-over-year increase.
But a revaluation of tax deferred assets and liabilities, related to the recent tax reform law, reduced net income by $11.6 million in the fourth quarter. Earnings per share totaled $1.11, falling 21 cents short the mean estimates of analysts polled by FactSet Research Systems.
Net interest revenue increased grew 11% to $216.9 million in the fourth quarter. The net interest margin expanded by 28 basis points to 2.97%.
Total loans grew 1.7% to $17.2 billion. Commercial real estate loans declined, while commercial lending, residential mortgages and personal loans all increased.
Total deposits declined 2.6% to $22.1 billion.
Fee and commission income rose 3.8% year over year to $168.2 million. BOK benefited from a 21% increase in fiduciary and asset management revenue and a 15% increase in brokerage and trading revenue, while card income, deposit fees and mortgage banking income all declined.
"Our wealth management business delivered record financial results in 2017 and surpassed $80 billion of assets under management and administration for the first time in company history, leading our diverse set of fee based businesses,” President and CEO Steven Bradshaw said in a press release.
Noninterest expenses declined slightly to $263.9 million in the fourth quarter.
Nonperforming assets totaled 1.69% of loans and repossessed assets at the end of the quarter, compared with 2.09% a year earlier. The company charged off $11.7 million in loans during the fourth quarter, compared with $1.5 million in recoveries a year earlier. BOK also recorded a $7 million negative provision for loan losses in the quarter. It recorded no provision for loan losses a year earlier.