Bok Financial Corporation · NASDAQ:BOKF
Bok Financial — Q4 2015 Earnings Presentation
23 slides from Bok Financial's earnings presentation, Jan 27, 2016
Slide 1: Fourth Quarter 2015 Earnings Conference Call
Fourth Quarter 2015 Earnings Conference Call January 27, 2016 1
Slide 2: Forward Looking Statements
Forward Looking Statements: This presentation contains statements that are based on Forward-Looking management’s beliefs, assumptions, current expectations, estimates, and projections about BOK Financial Corporation, the financial services industry, and the economy generally. These remarks constitut
Slide 3: Steven G. Bradshaw, Chief Executive Officer
Steven G. Bradshaw Chief Executive Officer 3
Slide 4: Financial Highlights
Financial Highlights Full Year 2015 2014 Net Income ($mil) $288.6 $292.4 Diluted EPS $4 21 $4.21 $4 22 $4.22 • Double digit year-over-year loan growth • Mid-single-digit year over year revenue growth • S Strong expense controlsl • Higher-than-expected credit costs Fourth Q Quarter Q4 2015 Q Q3 2015
Slide 5: Additional Q4 2015 Highlights
Additional Q4 2015 Highlights % % Growth, Growth, ($bil) Q4 2015 Q3 2015 Seq. Q4 2014 YOY Period-End Loans $15.9 $15.4 3.7% $14.2 12.2% 14.9% ann. Avg. Loans 15.6 15.2 2.6% 13.9 12.3% 10.4% ann. Fiduciary Assets $38.3 $37.8 1.5% $36.0 6.5% Assets Under $71.0 $67.0 6.0% $64.6 10.0% Management or in C
Slide 6: M&A Update
M&A Update MBT Bancshares: Weaver Wealth Mgt: E-Spectrum Advisors: $645mm assets Fort Worth, TX Dallas based energy advisory practice 4 branches $340mm AUM Formerly affiliated with Kansas City Great high net worth Energy Spectrum, a clients leading energy PE firm Differentiated Dif
Slide 7: Steven Nell, Chief Financial Officer: Financial Overview
Steven Nell Chief Financial Officer Financial Overview 7
Slide 8: Net Interest Revenue and Margin
Net Interest Revenue and Margin Q4 Q3 Q2 Q1 Q4 ($mil) 2015 2015 2015 2015 2014 Net Interest Revenue $181.3 $178.6 $175.7 $167.7 $169.7 Provision for credit losses $ 22.5 $ 7.5 $ 4.0 $ 0.0 $ 0.0 NIR after provision $158.8 $171.1 $171.7 $167.7 $169.7 Net Interest Margin 2.64% 2.61% 2.61% 2.55% 2.61% N
Slide 9: Fees and Commissions Revenue
Fees and Commissions Revenue % Growth, 3 mos % 12 mos d d ended G Growth, th % Growth, G th ended d d ($mil) 12/31/15 Seq. YOY 12/31/15 Brokerage and trading $30.3 (4.2%) (1.1%) (-3.6%) Transaction card 32.3 (0.6%) 2.7% 4.0% Fiduciary and asset management 31.2 1.2% 1.7% 9.1% Deposit service charges
Slide 10: Expense Review
Expense Review %Incr. %Incr. ($mil) Q4 2015 Q3 2015 Q4 2014 Seq. YOY Personnel Expense $133.2 $129.1 $125.7 3.2% 6.0% Other Operating $ 99.4 99 4 $ 95.5 95 5 $100 1 $100.1 4 1% 4.1% (0 7%) (0.7%) Expense Total operating $232.6 $224.6 $225.9 3.6% 3.0% expense • Higher personnel expense: $1.1 million
Slide 11: Other Balance Sheet Statistics
Other Balance Sheet Statistics Q4 2015 Q3 2015 Q4 2014 Period End AFS Securities $9.0 billion $8.8 billion $9.0 billion Average AFS securities $9 0 billion $9.0 $8 9 billion $8.9 $9 2 billion $9.2 Period End Deposits $21.1 billion $20.6 billion $21.1 billion Average deposits $20.7 billion $20.7 bill
Slide 12: 2016 Assumptions
2016 Assumptions Mid-single-digit loan growth Approximately $200-$250 million per quarter decrease in fixed income portfolio Stable to increasing NIM Increasing NII Provision for credit losses for the full year of $60-$80 million Continued mid-single-digit revenue growth from fee-generat
Slide 13: Stacy Kymes, EVP-Corporate Banking
Stacy Kymes EVP-Corporate Banking 13
Slide 14: Loan Portfolio by Geography
Loan Portfolio by Geography Seq. YOY Dec 31 Sep 30 Loan Dec 31 Loan ($mil) 2015 2015 Growth 2014 Growth OK $6,187.0 $5,782.5 7.0% $5,419.5 14.2% TX 5,535.2 5,426.3 2.0% 4,967.3 11.4% NM 821.3 812.7 1.1% 818.7 0.3% AR 170.7 171.3 (0.4%) 196.2 (13.0%) CO 1,288.2 1,340.3 (3.9%) 1,257.6 2.4% AZ 1,189.4
Slide 15: Commercial Loan Growth
Commercial Loan Growth Seq. YOY Dec 31 Sep 30 Loan Dec 31 Loan ($mil) 2015 2015 Growth 2014 Growth Energy $3,097.3 $2,838.1 9.1% $2,860.4 8.3% Services 2,784.3 2,706.6 2.9% 2,391.5 16.4% Wholesale/retail 1,422.1 1,461.9 (2.7%) 1,440.0 (1.2%) Manufacturing 556.7 555.7 0.2% 532.6 4.5% Healthcare 1,883
Slide 16: Energy
Energy At 12/31/15: Wholesale/ Energy Retail $5.6 billion commitments and $3.1 billion O/S Services 3% 9% ~60/40 split between oil and gas Midstream SNC = 52% off commitments, SNCs it t 46% off 6% outstandings E&P line utilization 62% Allowance for credit losses to period end Oil & Gas G l
Slide 17: Commercial Real Estate
Commercial Real Estate Seq. YOY Dec 31 Sep 30 Loan Dec 31 Loan ($mil) 2015 2015 Growth 2014 Growth Residential construction and land development $160 4 $160.4 $153 5 $153.5 4 5% 4.5% $143 6 $143.6 11 7% 11.7% Retail 796.5 769.4 3.5% 666.9 19.4% Office 637.7 626.1 1.9% 415.6 53.4% Multifamily 751.1 7
Slide 18: Marc Maun, Chief Credit Officer
Marc Maun Chief Credit Officer 18
Slide 19: Key Credit Quality Metrics
Key Credit Quality Metrics Combined allowance for credit Net annualized charge-offs to losses to period end loans: average loans: 1 43% 1.43% 0 08% 0.08% Combined allowance for credit Non Non-performing performing assets to losses to nonaccruing loans*: period end loans and repossessed assets
Slide 20: Q4 Energy Portfolio Stress Test
Q4 Energy Portfolio Stress Test Stress Test Price Deck: Nat Gas $/MMBTU: Oil $/BBL: 2016 $1.80 $25.00 2017 $2.00 $28.00 2018 $2.25 $30.00 2019 $2 35 $2.35 $35 00 $35.00 2020 & Thereafter $2.45 $42.00 Assumes 10+ year depressed commodity price environment Inherent loss content in this scenario fa
Slide 21: Other Energy Portfolio Details
Other Energy Portfolio Details Energy Loan Quality and LLR for Peer Banks as of 12/31/15: % of energy portfolio Energy LLR Bank criticized % BOK Financial has largely avoided the highest- highest risk areas of the energy industry: CMA 39.1% 4.0% WFC 38.0% 7.1% Only 9 percent of portfolio to ener
Slide 22: Steven G. Bradshaw, Closing Remarks
Steven G. Bradshaw Chief Executive Officer Closing Remarks 22
Slide 23: Question and Answer Session
Question and Answer Session 23