Bok Financial Corporation · NASDAQ:BOKF
Bok Financial — Investor Presentation (September 2024)
27 slides from Bok Financial's investor presentation, Sep 3, 2024
Slide 1: September 2024 Investor Presentation
Pri m ar y & se co nd ar y br an d co lor s Data viz colors Data viz monochromatic September 2024 Investor Presentation
Slide 2: Forward-looking statements
Pri m ar y & se co nd ar y br an d co lor s Data viz colors Data viz monochromatic 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 indust
Slide 3: Corporate Snapshot
Pri m ar y & se co nd ar y br an d co lor s Data viz colors Data viz monochromatic NASDAQ: BOKF *Total assets as of 12/31/2023 BROKER/DEALER & INDEPENDENT ADVISORY SERVICES CONSUMER, COMMERCIAL & MORTGAGE BANKING BOK Financial Corporation BOK Financial Asset Management BOK Private Wealth Cavanal Hil
Slide 4: Core Strategy
Pri m ar y & se co nd ar y br an d co lor s Data viz colors Data viz monochromatic Core Strategy Build a bank with diverse revenues that can compete upstream and outperform peers across varying economic cycles. Long-term EPS Growth vs. KRX Median 4 "There is no principle more emphasized in our organ
Slide 5: Diverse Revenue Sources
Pri m ar y & se co nd ar y br an d co lor s Data viz colors Data viz monochromatic Diverse Revenue Sources Well diversified 35%-40% of total revenues come from a diverse set of well-established fee income businesses, a differentiator compared to other midsized regional banks Fee income business line
Slide 6: Diversified Loan Portfolio
Pri m ar y & se co nd ar y br an d co lor s Data viz colors Data viz monochromatic Diversified Loan Portfolio Disciplined concentration management, diversified by sector & geography Loan Segmentation Collateral Location as of 6/30/2024 as of 6/30/2024 Commercial real estate Healthcare Loans to indiv
Slide 7: Diversified Loan Portfolio
Pri m ar y & se co nd ar y br an d co lor s Data viz colors Data viz monochromatic Diversified Loan Portfolio Portfolio composition as of 6/30/2024 78% 16% 6% Oil & Gas Producers Oil & Gas Midstream Services 9% 8% 83% Hospital Medical Services Senior Housing 39% 24% 17% 11% 2% 7% Multifamily Industr
Slide 8: Strong Core Deposit Franchise
Pri m ar y & se co nd ar y br an d co lor s Data viz colors Data viz monochromatic Dec '21 Dec '22 Dec '23 Jun '24 $— $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45,000 Strong Core Deposit Franchise Deposit Mix & Cost ($Million) Deposit Mix by Geography 10% 2% 64% 24% 4% 50% 10%
Slide 9: Wealth Management
Pri m ar y & se co nd ar y br an d co lor s Data viz colors Data viz monochromatic Wealth Management Primary Lines of Business • Private Wealth / Asset Management - banking and investment management, trust and estate administration, and Cavanal Hill family of funds • Institutional Wealth - Retiremen
Slide 10: Wealth Management Awards, Recognition and Rankings
Pri m ar y & se co nd ar y br an d co lor s Data viz colors Data viz monochromatic Wealth Management Awards, Recognition and Rankings • 12 out of 12 “Best in Class” awards for retirement plans group in 2022 • Eighth largest corporate trustee bank by number of trusteeships and fifth in paying agencie
Slide 11: Q2 Financial Highlights
Pri m ar y & se co nd ar y br an d co lor s Data viz colors Data viz monochromatic Q2 Financial Highlights * Non-GAAP measure Attributable to shareholders Per share (diluted) Net Income • Net Income of $163.7 million and EPS of $2.54, adjusted for the Visa B gain and related contribution to the BOKF
Slide 12: Loan Portfolio
Pri m ar y & se co nd ar y br an d co lor s Data viz colors Data viz monochromatic Loan Portfolio 12 ($Million) June 30, 2024 Mar. 31, 2024 June 30, 2023 Seq. Loan Growth YOY Loan Growth Energy $ 3,451.5 $ 3,443.7 $ 3,508.8 0.2% (1.6)% Services 3,577.1 3,529.4 3,585.2 1.4% (0.2)% Healthcare 4,231.1
Slide 13: Credit Quality Metrics
Pri m ar y & se co nd ar y br an d co lor s Data viz colors Data viz monochromatic Credit Quality Metrics • Credit quality remains better than pre-pandemic level with a 24% decline in non-performing assets during the quarter • Trailing 12 months net charge-offs at 9 bps • CRE office exposure is less
Slide 14: Credit Resilience
Pri m ar y & se co nd ar y br an d co lor s Data viz colors Data viz monochromatic Credit Resilience Disciplined Credit Concentration • CRE limit on total committed balances is 185% of tier one capital plus reserves • Office CRE outstandings is less than 4% of total loans 14 100 year history in ener
Slide 15: Liquidity & Capital
Pri m ar y & se co nd ar y br an d co lor s Data viz colors Data viz monochromatic Liquidity & Capital * Non-GAAP measure **Uninsured and non-collateralized deposits excludes intra-bank deposits 15 Q2 2024 Q1 2024 Q2 2023 Loan to Deposit Ratio 67.7% 68.3% 69.8% Period-End Deposits $36.2 billion $35.
Slide 16: Yields, Rate & Margin
Pri m ar y & se co nd ar y br an d co lor s Data viz colors Data viz monochromatic Yields, Rate & Margin Net Interest Income • Net interest income was up $2.4 million linked quarter led by strong loan growth and asset repricing along with slowing deposit repricing Net Interest Margin • 5 bps NIM dec
Slide 17: Fee Income - Markets & Securities
Pri m ar y & se co nd ar y br an d co lor s Data viz colors Data viz monochromatic Fee Income - Markets & Securities 17 ($Million) Q2 2024 Qtr. Seq. $ Change Qtr. Seq. % Change Qtr. YOY % Change Trading Fees $ 27.7 $ (9.8) (26.1)% (25.0)% Mortgage Banking 18.6 (0.3) (1.8)% 23.0% Customer Hedging Fee
Slide 18: Fee Income - Asset Management & Transactions
Pri m ar y & se co nd ar y br an d co lor s Data viz colors Data viz monochromatic Fee Income - Asset Management & Transactions 18 ($Million) Q2 2024 Qtr. Seq. $ Change Qtr. Seq. % Change Qtr. YOY % Change Markets & Securities $ 71.6 $ (6.5) (8.3)% (10.6)% Fiduciary & Asset Management 57.6 2.3 4.1%
Slide 19: Expenses
Pri m ar y & se co nd ar y br an d co lor s Data viz colors Data viz monochromatic Expenses 19 ($Million) Q2 2024 Q1 2024 Q2 2023 % Incr. Seq. % Incr. YOY Personnel Expense $191.1 $202.7 $190.7 (5.7)% 0.2% Other Operating Expense $145.6 $137.7 $128.0 5.7% 13.7% Total Operating Expense $336.7 $340.4
Slide 20: 2024 Full Year Outlook
Pri m ar y & se co nd ar y br an d co lor s Data viz colors Data viz monochromatic 2024 Full Year Outlook 20 • Additionally, we expect to continue opportunistic share repurchase activity. • Changes to outlook shown in Bold font *Refer to Slide #2 regarding forward looking statements, expectations ab
Slide 21: Appendix
Pri m ar y & se co nd ar y br an d co lor s Data viz colors Data viz monochromatic Appendix 21
Slide 22: Additional Details
Pri m ar y & se co nd ar y br an d co lor s Data viz colors Data viz monochromatic Additional Details 22 ◦ Period-end loan balances grew $381 million led by loan growth in commercial balances, partially offset by normal CRE payoff activity ◦ Average deposits increased $627 million in Q2, with the mi
Slide 23: Transaction Processing
Pri m ar y & se co nd ar y br an d co lor s Data viz colors Data viz monochromatic Transaction Processing CAGR: 5.0% CAGR: 6.7% Debit Processing & ATM Network • Operates nationally • More than 75% of clients are outside of Oklahoma • Clients: Banks, Credit Unions and C-store chains • 800+ million EF
Slide 24: Mortgage Banking
Pri m ar y & se co nd ar y br an d co lor s Data viz colors Data viz monochromatic Mortgage Banking • Retail origination channel that has averaged $2.3 billion in origination volume over the last 5-years ◦ YTD Net Promoter Score of 90 vs. national benchmark of 49 • In-house mortgage servicing platfo
Slide 25: Healthcare Banking
Pri m ar y & se co nd ar y br an d co lor s Data viz colors Data viz monochromatic Healthcare Banking Outstandings totaled $4.2 billion across 40 states at 6/30/2024 Healthcare portfolio characteristics: • Favorable spreads • Above-average loan utilization rates • Predominately BOK Financial origina
Slide 26: Securities and Interest Rate Risk Position
Pri m ar y & se co nd ar y br an d co lor s Data viz colors Data viz monochromatic Securities and Interest Rate Risk Position Interest Rate Risk • Approximately 74% of the total loan portfolio is variable rate or fixed rate that reprice within a year • Approximately 81% of Commercial and Commercial
Slide 27: ar y br an
Pri m ar y & se co nd ar y br an d co lor s Data viz colors Data viz monochromatic
BOK Financial — Investor Presentation (September 2024) on 6ix