BOK Financial Inc. Reports Growth
by October 28, 2002 12:00 am 70 views
Bank of Arkansas’ holding company, BOK Financial Inc., reported on Oct. 9 that growth in loans and its securities portfolio, higher revenue from fee-based products and a successful hedging strategy contributed to record third-quarter earnings.
That helped the Tulsa-based regional financial services firm offset a provision for mortgage servicing rights and post a net income of $44.1 million, up 48 percent from $29.8 million compared with 2001’s third quarter. The quarterly earnings were the highest in the company’s history.
Earnings per share were 73 cents compared with 50 cents for the third quarter of 2001, a 46 percent increase.
Net interest revenue increased 9 percent to $92 million as earning assets expanded during the quarter. Net interest margin declined to 3.58 percent, from 3.75 percent in the third quarter of 2001 and down slightly from 3.63 percent in the second quarter of 2002.
“BOK Financial continues to enjoy solid growth in noncredit financial services, adding balance to the company’s revenue sources,” said Jeff Dunn, president and CEO of the company’s Arkansas subsidiary.
Quarterly earnings benefited from $41.6 million in gains on securities sales and derivatives, which were partially offset by $29 million provision for mortgage servicing rights. BOK Financial also adopted recently issued standards of accounting for goodwill that improved pretax earnings by $2.6 million compared to the third quarter of 2001.
Excluding the effects of these items from the current quarter and the third quarter of 2001, the company would have reported a 23 percent increase in net income to $36 million.
“Our hedge activities proved very effective during the quarter,” Dunn said. “Realized gains of $27.5 million from sales of securities held as a hedge substantially offset the provision taken against our mortgage servicing asset.”