BOK Financial Corporation (NASDAQ: BOKF) reported record quarterly net income of $69.0 million or $1.00 per diluted share for the second quarter of 2011, up from $64.8 million or $0.94 per diluted share for the first quarter of 2011 and $63.5 million or $0.93 per diluted share for the second quarter of 2010. Net income for the six months ended June 30, 2011, totaled $133.8 million or $1.95 per diluted share compared to $123.7 million or $1.81 per diluted share for the six months ended June 30, 2010.
“BOK Financial is pleased to announce another strong quarter of record earnings,” said President and CEO Stan Lybarger. “We continue to benefit from diversified sources of non-interest income. Transaction card, mortgage banking and deposit revenues all grew during the second quarter due to increased transaction volume. Outstanding commercial loan balances are up in most of our markets and credit quality metrics continue to improve.”
Highlights of second quarter of 2011 included:
- Net interest revenue totaled $174.0 million compared to $170.6 million for the first quarter of 2011. Average earning assets grew $354 million. Net interest margin was 3.40% for the second quarter of 2011 compared to 3.47% for the first quarter of 2011.
- Fees and commissions revenue totaled $127.8 million compared to $123.3 million for the first quarter of 2011. Revenue growth was distributed among most fee-generating activities.
- Operating expenses, excluding changes in the fair value of mortgage servicing rights, totaled $189.7 million, up $8.1 million over the prior quarter. Personnel expenses increased $5.6 million due primarily to increased incentive compensation expense. Non-personnel expenses increased $2.5 million due primarily to increased mortgage banking expenses.
- Provision for credit losses totaled $2.7 million for the second quarter of 2011 compared to $6.3 million for the first quarter of 2011. Net loans charged off decreased to $8.5 million from $10.3 million for the previous quarter.
- The combined allowance for credit losses totaled $297 million or 2.77% of outstanding loans at June 30, 2011, and $303 million or 2.86% of outstanding loans at March 31, 2011. Nonperforming assets totaled $351 million or 3.23% of outstanding loans and repossessed assets at June 30, 2011, and $379 million or 3.54% of outstanding loans and repossessed assets at March 31, 2011.
- Outstanding loan balances were $10.7 billion at June 30, 2011, compared to $10.6 billion at March 31, 2011. Commercial loan balances continued to grow in the second quarter of 2011, increasing $130 million over March 31, 2011. Commercial real estate loans decreased $39 million. Residential mortgage loans increased $91 million and consumer loans decreased $34 million.
- Period end deposits totaled $17.6 billion at June 30, 2011, compared to $17.9 billion at March 31, 2011. Interest-bearing transaction accounts decreased $516 million and time deposits decreased $43 million. Demand deposit accounts increased $269 million.
- Tangible common equity ratio increased to 9.71% at June 30, 2011 from 9.54% at March 31, 2011. The tangible common equity ratio is a non-GAAP measure of capital strength used by the Company and investors based on shareholders’ equity minus intangible assets and equity that does not benefit common shareholders. The Company and its subsidiary bank exceeded the regulatory definition of well capitalized. The Company’s Tier 1 capital ratios, as defined by banking regulations, were 13.30% at June 30, 2011, and 12.97% at March 31, 2011.
- The Company paid a cash dividend of $19 million or $0.275 per common share during the second quarter of 2011. On July 26, 2011, the board of directors approved a quarterly cash dividend of $0.275 per common share payable on or about August 26, 2011, to shareholders of record as of August 12, 2011.
Net Interest RevenueNet interest revenue increased $3.4 million over the first quarter of 2011. Average earning assets increased $354 million. Net interest margin decreased 7 basis points from the prior quarter to 3.40%.