|
BOK unit reports home loan losses
(Daily Oklahoman, The (KRT) Via Acquire Media NewsEdge) Jul. 3--A filing Wednesday by Tulsa-based BOK Financial provided evidence that the swoon in the nation's housing market and rise in mortgage foreclosures has finally washed over an Oklahoma company's bottom line.
In the Securities and Exchange Commission filing, BOK told regulators that it expects to record a charge to second-quarter earnings in a range of $2.5 million to $3 million "related to certain community residential mortgage loans."
News that mortgage loan losses were hitting BOK's bottom line sent the company's stock tumbling 11.54 percent in Wednesday's trading on the Nasdaq market. The stock closed at $47.81 per share, down $6.24 from the previous day's close.
BOK also said it expects the net loan charge-offs to total between $12 million and $14 million, while its credit loss provision is expected to total between $30 million and $35 million. The provision for credit losses was $17.6 million and net loans charged off totaled $8.9 million for the first quarter of 2008.
BOK reported net loan charge-offs of $3.3 million in the same quarter of 2007.
What led to results?
The filing, which is a prelude to BOK's quarterly earnings report later this month, shows the risks and rewards that come with expansion beyond Oklahoma's borders, said Tulsa money manager Jake Dollarhide.
BOK operates banks in Kansas, Missouri, Texas, Arkansas, Colorado, New Mexico and Arizona in addition to Oklahoma.
"BOK obviously has exposure to markets outside of Tulsa and Oklahoma City," said Dollarhide, chief executive officer of Longbow Asset Management.
"When they started this very opportunistic expansion strategy, they opened themselves up for increased opportunities and higher profit opportunities, but they also opened themselves up to a lot more risk."
BOK Financial corporate spokesman Jesse Boudiette said the company would not comment "any further than what you've seen in the 8K filing."
To see more of The Oklahoman, or to subscribe to the newspaper, go to http://www.newsok.com.
Copyright (c) 2008, The Oklahoman
Distributed by McClatchy-Tribune Information Services.
For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.
[ Back To TMCnet.com's Homepage ]
|
INDUSTRIES
Activate Email 
Find Solutions for Enterprises, SMBs & Service Providers at the INTERNET TELEPHONY Conference and EXPO East, January 20-22, 2010. Miami, FL.
