Newspaper article THE JOURNAL RECORD

BOK Financial Posts Record Quarterly Earnings

Newspaper article THE JOURNAL RECORD

BOK Financial Posts Record Quarterly Earnings

Article excerpt

BOK Financial on Wednesday reported record earnings for the first quarter.

The parent company of Bank of Oklahoma reported earnings for the first quarter of $44.2 million, or 71 cents per share, up 34 percent from $32.9 million, or 55 cents per share, for the first quarter of 2002. Earnings for the quarter were slightly higher than the previous record high in the third quarter of 2002.

"Despite a difficult economic environment, our revenues continue to grow because of strong deposit growth and our broad fee-based services," said Vice Chairman Burns Hargis.

Non-interest revenue from fees and commissions rose 23 percent compared with the first quarter of 2002, led by a 46 percent increase in revenue from mortgage banking, a 43 percent gain on revenue from brokerage and trading due to increased sales of fixed income securities to institutional customers and a 37 percent increase in service charges and fees on deposit accounts.

Mortgage banking revenue increased as $6.1 million growth in secondary marketing gains exceeded a $1.2 million decrease in servicing revenue. Amortization expense related to mortgage servicing rights increased $6.5 million to $13.1 million, but was partially offset by a $7.8 million decrease in a related valuation allowance.

Gains on the sales of securities held as an economic hedge against impairment of mortgage servicing rights totaled $3.2 million in the first quarter, compared with losses of $19.9 million in the first quarter of 2002.

For the past year, BOK Financial has actively managed the impact of the high volume of loan prepayments on the securities portfolio. Securities with limited potential for further appreciation were sold and replaced with securities that had less prepayment risk but acceptable extension risk. Net gains from these sales totaled $6.5 million in the first quarter of 2003 compared with net gains of $12.3 million in 2002.

Net interest revenue totaled $95.5 million for the first quarter, up $4. …

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