BOK Financial Reports Record Earnings for 2010 of $247 Million.

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BOK Financial Reports Record Earnings for 2010 of $247 Million.

Fourth Quarter Earnings Total $59 Million

TULSA, Okla. -- BOK Financial Corporation reported record net income for 2010 of $246.8 million or $3.61 per diluted share, up 23% over 2009 on diversified fee income growth and improved credit quality. Net income was up 15% over last year excluding a $6.5 million or $0.10 per share day-one gain from the purchase of the rights to service $4.2 billion of residential mortgage loans on favorable terms in 2010 and a $7.7 million or $0.11 per share special assessment charge by the FDIC in 2009.

Net income for the fourth quarter of 2010 totaled $58.8 million or $0.86 per diluted share, up $16.1 million or 38% over the fourth quarter of 2009. Net income for the third quarter of 2010 totaled $64.3 million or $0.94 per share.

"We are proud to report record earnings of $247 million in our Company's 100th year," said President and CEO Stan Lybarger. "Diversified sources of fee and commission revenue grew $36 million over last year. Our mortgage banking division originated nearly $2.8 billion in new loans in 2010 and our portfolio of mortgage loans serviced grew by $4.7 billion, more than 70% over last year. Improved credit quality and lower non-performing assets reduced the provision for credit losses by $91 million."

"Fourth quarter net income of $59 million finished a year of strong performance for BOK Financial," said Lybarger. "Low interest rates and continued soft commercial loan demand did challenge net interest revenue during the quarter, but our fee-based business lines continued to grow. We exited 2010 with annual earnings in excess of levels seen before the recession and with strong capital resources to take advantage of an improving economy in 2011."

Highlights of fourth quarter of 2010 included:

* Net interest revenue totaled $163.7 million for the fourth quarter of 2010 and $180.7 million for the third quarter of 2010. Net interest margin was 3.19% for the fourth quarter of 2010 and 3.50% for the third quarter of 2010. Net interest revenue decreased as cash flows from the securities portfolio increased during the third and fourth quarters. Prepayments spiked as interest rates declined, resulting in portfolio reinvestment at lower rates.

* Fees and commissions revenue totaled $136.0 million, essentially unchanged from the third quarter of 2010. Mortgage banking revenue decreased $4.1 million. Brokerage and trading revenue grew $1.5 million and trust fees and commissions grew $1.4 million.

* Changes in the fair value of mortgage servicing rights, net of economic hedge, increased fourth qua...

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