BOK Financial Corporation (NASDAQ:BOKF) Q1 2022 Earnings Conference Call April 27, 2022 10:00 AM ET
Company Participants
Steven Nell - Chief Financial Officer
Stacy Kymes - President & Chief Executive Officer
Marc Maun - Executive Vice President, Regional Banking
Scott Grauer - Executive Vice President, Wealth Management
Conference Call Participants
Jared Shaw - Wells Fargo
Peter Winter - Wedbush Securities
Jon Arfstrom - RBC Capital Markets
Jennifer Demba - Truist Securities
Brady Gailey - KBW
Gary Tenner - D.A. Davidson
Matt Olney - Stephens
Taylor Brodarick - Hovde Group
Operator
Greetings and welcome to BOK Financial Corporation First Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded.
I would now like to turn the conference over to your host. Mr. Steven Nell. Thank you. You may begin.
Steven Nell
Good morning and thanks for joining us. Today our President and CEO, Stacy Kymes will provide opening comments and Marc Maun, Executive Vice President for Regional Banking will cover our loan portfolio and related credit metrics. Scott Grauer, Executive Vice President of Wealth Management will cover our fee-based results, and I'll provide details regarding net interest income, net interest margin, expenses, and our overall balance sheet position from a liquidity and capital standpoint.
PDF of the slide presentation and first quarter press release are available on our website at bokf.com. We refer you to the disclaimers on slide two regarding any forward-looking statements we make during the call.
I'll now turn the call over to Stacy Kymes.
Stacy Kymes
Good morning and thanks for joining us to discuss BOK Financial's first quarter financial results. Starting on slide four, first quarter net income was $62 million or $0.91 per diluted share, a $55 million decline from last quarter. The first quarter ushered in dramatic changes in the economic and geopolitical environment resulting in extreme interest rate volatility. This volatility negatively impacted our mortgage-related businesses, especially our mortgage trading activities.
On a pretax basis, our net contribution from our institutional trading group decreased $43 million linked quarter. Demand for lower coupon, US government agency residential mortgage-backed securities was constrained as investors reacted to interest rate volatility and market uncertainty.
Interest rate volatility also negatively impacted outcomes in our mortgage servicing right hedging results, creating a $13 million pretax decline in performance compared to the fourth quarter.