TULSA — Bad loans and a national credit crisis cut second-quarter profits at Tulsa-based BOK Financial, parent of Oklahoma's largest bank.
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Net income dipped to $43.7 million, or 65 cents per share, for the three-month period ending June 30 from $53.9 million, or 80 cents per share in the year-ago quarter. Analysts polled by Thomson Financial expected a profit of 69 cents per share.
Chief Financial Officer Steven Nell labeled the $43.7 million profit “solid,” and said BOK's capital remains “at good strong levels.”
Revenue rose
Net interest revenue from interest accounts like loans and deposits rose 18 percent to $159.1 million, from $134.9 million in the 2007 period. Non-interest revenue from things like charges and fees rose 17 percent to $105.6 million from $90.2 million.
The credit crisis hitting financial companies throughout the country hurt results. Net loans charged off more than doubled to $13 million from $5.8 million in the 2007 second quarter. Furthermore, BOK Financial nearly quintupled its provision for credit losses to $38.3 million from $7.8 million.
Non-performing assets totaled $158 million, or 1.26 percent of outstanding loans, more than double the $70 million, or 0.6 percent of outstanding loans, in the 2007 quarter. Non-performing assets are loans that have gone unpaid, but have not yet been written off.
Nell said BOK Financial is riding out the current economic maladies better than many of its peers.
Not much down
“I think when you look around the United States and you look at large banks and regional banks, all of those entities are having a difficult time,” Nell said. “It's evident in their stock performance. Although we're down, we're not down as much as many of them are.”
BOK shares closed Tuesday at $42.84, near the 52-week low set earlier this month. The stock has slipped more than 20 percent this month.
Chief Executive Officer Stan Lybarger lamented the state of credit markets while touting BOK's relatively strong position.
“Net interest revenue showed solid growth due to both earning assets and rising net interest margin,” Lybarger said. “Non-interest revenue was 42 percent of our total revenue for the second quarter – a level that sets us apart from most regional banks. We also have one of the stronger capital positions among the top 50 U.S. banks.”
BOK operates Bank of Oklahoma, Bank of Texas, Bank of Arkansas, Bank of Albuquerque, Bank of Arizona, Bank of Kansas City, Colorado State Bank & Trust, the TransFund electronic funds network, Cavanal Hill Investment Management and Southwest Trust Co.
Contributing: The Associated Press
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