BOK's profit get boost from loan growth, wealth management fees
Loan growth and wealth management gains boosted quarterly profit at BOK Financial in Tulsa, Okla.
The $33.3 billion-asset company said in a press release Wednesday that its third-quarter earnings rose by 37%, to $117.5 million, or $1.79 a share.
Net interest income increased by 10%, to $240.9 million. The net interest margin expanded by 20 basis points, to 3.21%
Total loans rose by 6.6%, to $18.4 billion, largely because of a 7.2% increase in commercial lending and an 8.1% rise in commercial real estate lending.
Total deposits fell by 1%, to $21.6 billion.
Fee and commission income increased by 2.4%, to $167.5 million. BOK benefited from a 41.4% increase in fiduciary and asset management revenue. Brokerage and trading revenue, transaction card revenue and deposit service charges and fees fell.
The company’s efficiency ratio improved to 61.41% from 65.92% a year earlier.
"This is yet another record quarter ... with continued growth in both our loan portfolio and net interest revenue,” Steven Bradshaw, BOK's president and CEO, said in the release.
“We added $346 million in new loan production to last quarter's record loan growth," Bradshaw added. "The competitive ability and scale of our wealth management business allowed us to earn a $15 million fee in client asset management. These factors, combined with a stable credit environment and diligent expense management, cause us to see earnings leverage continuing."
BOK completed its purchase of CoBiz Financial in Denver on Oct. 1 in a deal more than doubled the company's deposit market share in Colorado and Arizona.