Bok Financial Corporation · NASDAQ:BOKF
Bok Financial — Q1 2022 Earnings Presentation
26 slides from Bok Financial's earnings presentation, May 2022
Slide 1: Investor Presentation
Investor Presentation May 2022
Slide 2: Forward-looking statements
Forward-looking statements This presentation contains forward-looking statements that are based on management's beliefs, assumptions, current expectations, estimates and projections about BOK Financial Corporation, the financial services industry, the economy generally and the expected or potential
Slide 3: Financial Results Q1 2022
Financial Results Q1 2022 3
Slide 4: Summary Financial Statements
Summary Financial Statements Mar. 31, Dec. 31, Mar. 31, Linked-Quarter Commentary ($Million) 2022 2021 2021 Average Securities $22,065 $22,906 $20,929 Core AFS portfolio balances relatively flat, Trading Portfolio down on average. Average Loans $20,464 $20,243 $22,757 Excluding PPP loans, our core p
Slide 5: Q1 summary
Q1 summary Noteworthy items impacting profitability First quarter net income • Loan growth accelerated from the momentum seen last NET INCOME quarter Attributable to shareholders • Upward movement in interest rates and geopolitical uncertainty negatively impacted our fee generating Per share (dilute
Slide 6: Loan portfolio
Loan portfolio Mar 31, Dec 31, Mar 31, Seq. Loan YOY Loan ($Million) 2022 2021 2021 Growth Growth • Energy balances continued to increase with a growth rate similar Energy $3,197.7 $3,006.9 $3,202.5 6.3% (0.2)% to that seen in Q4 Services 3,351.5 3,367.2 3,421.9 (0.5)% (2.1)% • Slight decrease in Se
Slide 7: Yields, rate & margin
Yields, rate & margin Net interest revenue ($Million) Q1 2022 Q4 2021 Q1 2021 Quarterly Quarterly sequential YOY • Net interest revenue down $8.7 million linked quarter; Net interest revenue $268.4 $277.1 $280.4 (3.1)% (4.3)% $8.9 million from decreased loan fees, including a $3.8 Net interest margi
Slide 8: Asset sensitivity
Asset sensitivity Scenario* ∆ NIR % ∆ NIR $ Noteworthy balance sheet items • We anticipate holding the available-for-sale securities portfolio flat by Up 200 Ramp, months 1-12 7.53% $85.6 million reinvesting cash flows at current market rates, maintaining our asset- sensitive position Up 200 Ramp, m
Slide 9: Fees & commissions
Fees & commissions Brokerage & trading • Revenue decreased linked-quarter due to recognized losses on Trading Securities as a Quarterly Quarterly Trailing ($Million) Q1 2022 result of movements in fixed income markets and sequential YOY 12 months geopolitical uncertainties Brokerage & trading $(27.1
Slide 10: Expenses
Expenses Expenses summary % Incr. % Incr. ($Million) Q1 2022 Q4 2021 Q1 2021 Seq. YOY • Quarterly personnel expense down due to an $11.2 million decrease in cash based incentive Personnel expense $159.2 $174.5 $173.0 (8.7)% (8.0)% compensation, with additional decreases in deferred Other operating e
Slide 11: Key credit quality metrics
Key credit quality metrics Quality metrics summary Net charge-offs to average loans ANNUALIZED • Total non-accrual loans down $9.8 million • A decrease of $6.1 million in Energy non-accruals • Potential problem loans (substandard, accruing) totaled $169 million at 3/31, compared to $222 million at 1
Slide 12: Capital Management
Capital Management Capital Management Overview Q1 2022 Q4 2021 Q1 2021 • Robust capital ratios consistently remain well above regulatory and internal policy thresholds Common Equity Tier 1 11.3% 12.2% 12.1% • Repurchased 475,877 shares at an average price of $101.02 per share in the open market Tota
Slide 13: Forecast & assumptions
Forecast & assumptions ◦ We expect loan growth to continue the solid performance seen in Q1, with period-end point-to-point growth for the year in the upper single- digit range. We anticipate growth contributions from all of our regional markets and continued growth in our Wealth loan portfolio. ◦ W
Slide 14: BOK Financial Corp
BOK Financial Corp 14
Slide 15: BOK Financial Corporation corporate snapshot
NASDAQ: BOKF BOK Financial Corporation CONSUMER, COMMERCIAL & BROKER/DEALER & Corporate snapshot MORTGAGE BANKING INDEPENDENT ADVISORY SERVICES • Top 30 national/regional bank* BOK Financial ® BOK Financial Securities • Midwest/Southwest franchise Bank of Texas BOK Financial Advisors • 119 full serv
Slide 16: Core strategy
Core strategy Build a bank with diverse Earnings per share CAGR across 29 year history of BOKF is 9.9% revenues can compete upstream and outperform peers across varying economic cycles. "There is no principle more emphasized in our organization than managing for long-term value rather than short-ter
Slide 17: Diverse revenue sources
Diverse revenue sources Well diversified Revenue composition as of 3/31/2022 Nearly 35% of total revenues come from a diverse set of well established fee income businesses, a differentiator compared to other midsized regional banks. Additional fee income categories: Fiduciary & asset management Brok
Slide 18: Strong core deposit franchise
Strong core deposit franchise Deposit Deposit mix & cost ($billion) Geographic deposit mix MSA Branches share Tulsa, OK 21 37% Demand Interest-bearing transaction Dallas/Fort Worth/Metro, TX 20 1% Savings Time Oklahoma City, OK 16 9% 4% 13% 4% Albuquerque, NM 13 10% 2% Denver/Metro, CO 13 3% 5% 6% 4
Slide 19: Diversified loan portfolio
Diversified loan portfolio Disciplined concentration management, diversified by sector & geography Loan segmentation Collateral location as of 3/31/2022 as of 3/31/2022 Commercial real estate Texas Loans to individuals Other Services Oklahoma Healthcare Colorado Energy Arizona General business Kansa
Slide 20: Energy banking
Energy banking Portfolio composition More than 100-year history in energy lending as of 3/31/2022 and a playbook that works • Focus on first lien, senior secured E&P lending, the “sweet spot” in energy lending. • Internal staff of 16 petroleum engineers and engineering techs to confirm Oil & gas pro
Slide 21: Healthcare banking
Healthcare banking Portfolio composition Outstandings totaled $3.4 billion across as of 3/31/2022 31 states at 3/31/2022 Healthcare portfolio characteristics: Senior housing • Favorable spreads Hospitals • Above-average loan utilization rates Service medical • Predominately BOK Financial originated
Slide 22: Commercial real estate
Commercial real estate Portfolio composition as of 3/31/2022 $4.1 billion outstanding and $2.0 billion BY PRODUCT TYPE unfunded commitments at 3/31/2022 Multifamily Office • BOKF allocates 185% of Tier 1 capital plus reserves to CRE. Industrial • Further controls and limitations by product type and
Slide 23: Wealth Management
Wealth Management Wealth Management revenue as of 3/31/2022 FEE INCOME AND NET INTEREST REVENUE Primary lines of business Fee income • Private Wealth, including banking and investment management • Brokerage & trading services Net interest revenue • Institutional Wealth, including retirement plans, a
Slide 24: Transaction processing
Transaction processing Transaction processing volume as of 12/31/2021 EFT TRANSACTION VOLUMES Debit processing & ATM network (Million) • Operates nationally • More than 72% of clients are outside of Oklahoma • Clients: banks, credit unions and C-store chains • 825 million EFT transactions processed
Slide 25: Mortgage banking
Mortgage banking Mortgage banking revenue as of 3/31/2022 SERVICING, ORIGINATING AND MARKETING REVENUE Top 50 U.S. mortgage originator Servicing • Annual origination volume in 2021 was $2.6 billion Originating & marketing • Servicing an average of $16.2 billion of mortgages at March 31, 2022 Two lin
Slide 26: BOK Financial Corporation
BOK FINANCIAL CORPORATION