Banks
BOK Financial and F.N.B. widen margins as more regional lenders report
Net interest income rose at BOK Financial, F.N.B. and Mercantile, while fee revenue softened at the two larger banks.
HedgeWeekly News Desk ·
BOK Financial earned $159.9 million, or $2.64 a diluted share, in the third quarter, down from $2.92 in the second quarter but up from $2.22 a year earlier. The Tulsa lender's second quarter had been flattered by a gain on its Visa class B shares; excluding that gain and a loss on repositioning securities, second-quarter earnings would have been $2.59 a share. Net interest income climbed to $370.0 million and the margin widened 9 basis points to 3.00%, while fees and commissions fell to $188.0 million as brokerage and trading revenue dropped $13.0 million.
Credit stayed quiet at BOK Financial. It booked no provision for credit losses, net charge-offs were $0.9 million and nonperforming assets were 0.24% of loans. Period-end loans rose to $27.7 billion, and the company bought back no stock in the quarter.
Pittsburgh-based F.N.B. reported net income of $152.9 million, or $0.43 a share, up from $0.42 in the second quarter and $0.41 a year earlier. Net interest income reached a record $376.5 million and the margin rose 4 basis points to 3.29%. Period-end loans and deposits grew at annualized rates of 8.5% and 8.9%, net charge-offs fell to 0.12% of loans, and the bank repurchased $51 million of stock.
Michigan's Mercantile Bank posted net income of $24.1 million, or $1.39 a share, against $1.46 a year earlier, as an $8.8 million rise in expenses, mostly from salaries, bonuses and hiring, offset a 17.1% jump in net interest income to $60.9 million. Its margin rose to 3.73% from 3.49%.