Bok Financial Corporation · NASDAQ:BOKF
Bok Financial — Q2 2022 Earnings Presentation
18 slides from Bok Financial's earnings presentation, Jul 27, 2022
Slide 1: Q2 Earnings Conference Call
Q2 Earnings Conference Call July 27, 2022
Slide 2: Legal Disclaimers
Legal Disclaimers 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 impact of
Slide 3: Stacy Kymes, Chief Executive Officer
Stacy Kymes Chief Executive Officer
Slide 4: Q2 summary
Q2 summary Noteworthy items impacting profitability Quarterly earnings trend • Margin expansion as loans reprice and loan growth NET INCOME continued to accelerate, continuing the momentum seen over the past several quarters Attributable to shareholders • Strong performance from our fee-based busine
Slide 5: Additional details
Additional details Quarterly Quarterly ($Billion) Q2 2022 Sequential YOY ◦ Core loan balances grew $711 million; Period-End Loans* $21.2 3.5% 4.7% unfunded commitments grew $979 million or 7.8% Average Loans* $21.0 3.5% 2.3% ◦ Average deposits declined $1.8 billion Period-End Deposits $38.6 (2.0)% 3
Slide 6: Marc Maun, EVP, Regional Banking Executive
Marc Maun EVP, Regional Banking Executive
Slide 7: Loan portfolio
Loan portfolio June 30, Mar. 31, June 30, Seq. Loan YOY Loan ($Million) 2022 2022 2021 Growth Growth • Energy balances continued to see strong growth similar to that Energy $3,393.1 $3,197.7 $3,011.3 6.1% 12.7% experienced over the past two Services 3,421.5 3,351.5 3,389.8 2.1% 0.9% quarters • Growt
Slide 8: Key credit quality metrics
Key credit quality metrics Quality metrics summary Net charge-offs to average loans ANNUALIZED • Total non-accrual loans down $10.1 million • A decrease of $4.1 million in Energy non-accruals • Potential problem loans (substandard, accruing) totaled $131 million at 6/30, compared to $169 million at
Slide 9: Scott Grauer, EVP, Wealth Management Executive
Scott Grauer EVP, Wealth Management Executive 9
Slide 10: Fees & commissions
Fees & commissions Brokerage & trading • Revenue increased linked quarter due to Qtr. Seq. Qtr. Seq. Qtr. YOY recognized losses on Trading Securities ($Million) Q2 2022 $ Change % Change % Change experienced in Q1 from disruptions in fixed- income markets Trading fees $12.0 $66.0 122.2% (7.8)% Deriv
Slide 11: Steven Nell, EVP, Chief Financial Officer
Steven Nell EVP, Chief Financial Officer 11
Slide 12: Yields, rate & margin
Yields, rate & margin Net interest revenue ($Million) Q2 2022 Q1 2022 Q2 2021 Quarterly Quarterly sequential YOY • Net interest revenue up $5.6 million linked quarter; with the Net interest revenue $274.0 $268.4 $280.3 2.1% (2.2)% benefits of rate increases offset by a decline in trading Net interes
Slide 13: 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 5.19% $66.7 million reinvesting cash flows at current market rates, maintaining our asset- sensitive position Up 200 Ramp, m
Slide 14: Liquidity & capital
Liquidity & capital Q2 2022 Q1 2022 Q2 2021 • Average deposit balances were down $1.8 billion Loan to Deposit Ratio 55.1% 52.4% 57.2% this quarter, but are $1.1 billion above the second quarter 2021 Period-End Deposits $38.6 billion $39.4 billion $37.4 billion • $10 billion of secured wholesale borr
Slide 15: Expenses
Expenses Expenses summary % Incr. % Incr. • Quarterly personnel expense down ($Million) Q2 2022 Q1 2022 Q2 2021 Seq. YOY $4.3 million, with decreases in deferred compensation, share- Personnel expense $154.9 $159.2 $172.0 (2.7)% (9.9)% based incentive compensation, and employee benefits offset by an
Slide 16: Forecast & assumptions
Forecast & assumptions ◦ We expect loan growth to continue the solid performance seen in Q1 and Q2, with period-end point-to-point total loan growth for the year approaching a double-digit rate. ◦ We expect a continued reduction in deposit balances; with the point-to-point decline in the upper singl
Slide 17: Stacy Kymes, Chief Executive Officer
Stacy Kymes Chief Executive Officer
Slide 18: Question & answer session
Question & answer session BOK FINANCIAL CORPORATION