Daily News: February 4, 2019

BOK Sees Net income of $108.5MM in Q4/2018


BOK Financial finished the fourth quarter of 2018 with a net income of $108.5 million.

Steven G. Bradshaw, BOK president, and CEO, stated, “Another strong quarter was the capstone on a record year for BOK Financial. This quarter, and all throughout the year, we saw growth in net interest margin and net interest income, combined with strong, broad-based, loan growth. This year’s outstanding loan production, led by our specialty lines of business like Energy, Healthcare and Commercial Real Estate, fueled the largest annual revenues in the history of the company. While we benefited from a healthy economy and stable credit environment in 2018, the key driver for our expanding earnings leverage was our success at maintaining expense discipline throughout the year. I couldn’t be more proud of the hard work and dedication of every single one of our employees.”

Bradshaw continued, “2018 also brought the largest acquisition in company history, CoBiz Financial. Integration is well underway, and we are already capitalizing on our opportunities in Colorado and Arizona – two important growth markets. I am excited for what CoBiz adds to our organization, and I am as confident in our business prospects today as I have been in years. Though there are some market headwinds that many will point to as potential roadblocks for the financial industry, I have full faith in our diversified approach to driving shareholder value. We believe we are well-positioned to continue to grow revenues and energize earnings growth in 2019.”

Net interest revenue totaled $285.7 million, up $44.8 million. CoBiz added $43.1 million. Net interest margin increased to 3.40 percent from 3.21 percent.

A $9.0 million provision for credit losses was recorded in the fourth quarter of 2018. The combined allowance for credit losses totaled $209 million or 0.97 percent of outstanding loans and 1.12 percent of outstanding loans, excluding acquired loans.

Period-end loans increased $3.3 billion. Excluding $2.9 billion of acquired loans, period-end loans increased $393 million or 2%.

The bank contributed $84.6 million to net income, consistent with the prior quarter. Increased net interest revenue was offset by increased net charge-offs.

Net interest revenue was $148 million, an increase of $3.2 million.

Average loans increased $307 million or 2%

Outstanding loans were $21.7 billion at December 31, 2018, up $3.3 billion over September 30, 2018. Loan growth continued to be focused in commercial and commercial real estate. The fluctuation discussion following excludes acquired loans.

Outstanding commercial loan balances grew by $230 million or 2% over September 30, 2018. Energy loan balances were up $275 million, consistent with BOK’s ongoing support and commitment to the oil and gas industry. Other commercial and industrial loans were up $125 million. Service sector loans increased $50 million and healthcare sector loans increased by $47 million. This growth was partially offset by a $182 million decrease in wholesale/retail sector loans and an $82 million decrease in manufacturing sector loans.

BOK Financial is a $38 billion regional financial services company based in Tulsa, OK. The company’s holdings include BOKF, CoBiz Bank, BOK Financial Securities and The Milestone Group.