Bok Financial Corporation · NASDAQ:BOKF
Bok Financial — BOK Financial Corp ET AL — Q3 2016 Earnings Presentation
19 slides from Bok Financial's earnings presentation, Oct 26, 2016
Slide 1: Third Quarter 2016 Earnings Conference Call
1 Third Quarter 2016 Earnings Conference Call October 26, 2016
Slide 2: Forward-Looking Statements
2 Forward-Looking Statements: This presentation contains statements that are based on management’s beliefs, assumptions, current expectations, estimates, and projections about BOK Financial Corporation, the financial services industry, and the economy generally. These remarks constitute forward-look
Slide 3: Steven G. Bradshaw, Chief Executive Officer
3 Steven G. Bradshaw Chief Executive Officer
Slide 4: Third Quarter Summary
4 Third Quarter Summary: • Noteworthy items impacting Q3 profitability: • The energy credit environment continues to stabilize. Loan loss provision fell to $10 million this quarter and should remain near that level in Q4 assuming relative stability in commodities market. • Another record quarter for
Slide 5: Additional Details ($B)
5 Additional Details ($B) Q3 2016 Quarterly Growth Annualized Quarterly Growth Year over Year Growth Period-End Loans $16.5 0.4% 1.4% 7.1% Average Loans $16.4 1.1% 4.5% 8.3% Fiduciary Assets $41.2 3.3% 13.0% 9.0% Assets Under Management or in Custody $75.3 3.2% 12.6% 12.4% • Large end-of-quarter pay
Slide 6: Steven Nell, Chief Financial Officer - Financial Overview
6 Steven Nell Chief Financial Officer Financial Overview
Slide 7: Net Interest Revenue and Net Interest Margin
7 Net Interest Revenue Net Interest Margin ($mil) Q3 2016 Q2 2016 Q1 2016 Q4 2015 Q3 2015 Net Interest Revenue $187.8 $182.6 $182.6 $181.3 $178.6 Provision For Credit Losses $ 10.0 $ 20.0 $ 35.0 $ 22.5 $ 7.5 Net Interest Revenue After Provision $177.8 $162.6 $147.6 $158.8 $171.1 Net Interest Margin
Slide 8: Fees and Commissions Revenue
8 Fees and Commissions Revenue, $mil Growth: Q2 16 Quarterly, Sequential Quarterly, Year over Year Trailing 12 Months Brokerage and Trading $38.0 (3.9)% 20.3% 7.9% Transaction Card 33.9 (2.9)% 4.4% 4.5% Fiduciary and Asset Management 34.1 (2.1)% 10.6% 5.1% Deposit Service Charges and Fees 23.7 4.6%
Slide 9: Expenses
9 Expenses ($mil) Q3 2016 Q2 2016 Q3 2015 %Incr. Seq. %Incr. YOY Personnel Expense $143.2 $142.5 $129.1 0.5% 10.9% Other Operating Expense $118.9 $112.2 $ 95.6 6.0% 24.5% Total Operating Expense $262.1 $254.7 $224.6 2.9% 16.7% • Increase in personnel expense largely due to higher variable compensati
Slide 10: Other Balance Sheet Statistics
10 Other Balance Sheet Statistics Q3 2016 Q2 2016 Q3 2015 Period End AFS Securities $8.9 billion $8.8 billion $8.8 billion Average AFS securities $8.9 billion $8.9 billion $8.9 billion Period End Deposits $21.1 billion $20.8 billion $20.6 billion Average Deposits $20.8 billion $20.5 billion $20.7 bi
Slide 11: 2016 and Preliminary 2017 Assumptions
11 2016 and Preliminary 2017 Assumptions Mid-single-digit loan growth Stable net interest margin and net interest income Loan loss provision $5-$15 million Mid-single-digit revenue growth from fee-generating businesses on a trailing twelve month basis Capital deployment through organic gro
Slide 12: Stacy Kymes, EVP-Corporate Banking
12 Stacy Kymes EVP-Corporate Banking
Slide 13: Loan Portfolio by Geography
13 Loan Portfolio by Geography ($mil) Sep 30 2016 Jun 30 2016 Seq. Loan Growth Sep 30 2015 YOY Loan Growth OK $6,014.3 $6,141.7 (2.1)% $5,782.5 4.0% TX 5,811.4 5,668.9 2.5% 5,426.4 7.1% NM 819.7 846.2 (3.1)% 812.7 0.9% AR 169.9 164.4 3.4% 171.3 (0.8)% CO 1,370.1 1,408.7 (2.7)% 1,340.4 2.2% AZ 1,477.
Slide 14: Commercial Loan Growth
14 Commercial Loan Growth ($mil) Sep 30 2016 Jun 30 2016 Seq. Loan Growth Sep 30 2015 YOY Loan Growth Energy $2,520.8 $2818.7 (10.6)% $2,838.2 (11.2)% Services 2,936.6 2,830.9 4.5% 2,706.6 9.3% Healthcare 2,085.1 2,051.1 1.7% 1,741.7 19.7% Wholesale/retail 1,602.0 1,533.0 4.5% 1,461.9 9.6% Manufactu
Slide 15: Energy Loan Portfolio
15 Oil & Gas Producers 79% Midstream & Other 13% Energy Services 8% Energy At 9/30/16: $4.9 billion commitments and $2.5 billion O/S $200 million new commitments booked in Q3 2016 ~60/40 split between oil and gas E&P line utilization 54%, compared to 60% at 6/30/16 Allowance for credit los
Slide 16: Commercial Real Estate
16 Commercial Real Estate ($mil) Sep 30 2016 Jun 30 2016 Seq. Loan Growth Sep 30 2015 YOY Loan Growth Residential Construction and Land Development $159.9 $157.6 1.5% $153.5 4.2% Retail 801.4 795.4 0.7% 769.4 4.1% Office 752.7 769.1 (2.1)% 626.2 20.2% Multifamily 873.8 787.2 11.0% 758.7 15.2% Indust
Slide 17: Key Credit Quality Metrics
17 Key Credit Quality Metrics $71.5 $85.9 $82.2 $79.1 $94.0 $17.8 $61.2 $159.6 $168.1 $143.0 $89.3 $147.1 $241.8 $247.2 $237.0 $- $50.0 $100.0 $150.0 $200.0 $250.0 3Q15 4Q15 1Q16 2Q16 3Q16 Nonaccrual Loans Other Non-Accruals Energy Non-Accruals 1.35% 1.43% 1.50% 1.54% 1.56% 1.20% 1.25% 1.30% 1.35% 1
Slide 18: Closing Remarks
18 Steven G. Bradshaw Chief Executive Officer Closing Remarks
Slide 19: Question and Answer Session
19 Question and Answer Session
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