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.

Steven Bradshaw is BOK Financial's president and CEO.
Steven Bradshaw is BOK Financial's president and CEO.

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.

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