Bank Recovers Some Impairment Reserve
Growth in net interest income, solid credit quality and a recovery of "impairment" to its mortgage servicing rights helped BOK Financial Corp. here grow net income by 12% in the second quarter.
The company reported net income of $45.5 million, or $0.68 per share, in the quarter. That's up from $40.8 million, or $0.61 per share, in the same period last year.
The company's president and CEO, Stan Lybarger, touts growing fee income, disciplined operating expense management, and investments made to improve operations as factors behind the increase, but the company also benefited from $10.9 million in recovered impairment to the value of the mortgage servicing portfolio. This recovery was offset by $10.1 million in losses on securities, as is typically the case when companies hedge their MSRs.
BOK also saw some growth in loan demand during the second quarter, with outstanding loan balances increasing by $25 million to total $7.5 billion as of June 30.
Commercial loans increased $14 million.
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