Bok Financial Corporation · NASDAQ:BOKF
Bok Financial — Q1 2023 Earnings Presentation
23 slides from Bok Financial's earnings presentation, Apr 26, 2023
Slide 1: Q1 Earnings Conference Call
Q1 Earnings Conference Call April 26, 2023
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 3
Slide 4: Q1 summary
Q1 summary Noteworthy items impacting profitability Quarterly earnings trend NET INCOME • Net interest revenue was flat linked quarter, with two fewer days in Q1, margin compressed 9 bps as the cost of Attributable to shareholders funds increased faster than earning asset yields, Per share (diluted)
Slide 5: Marty Grunst, EVP, Chief Financial Officer
Marty Grunst EVP, Chief Financial Officer 5
Slide 6: Strong Capital Position
Strong Capital Position Top tier TCE ratio: • TCE/total assets unadjusted is 8.5% at 3/31/2023, adjusting* for all securities portfolio net losses would reduce this ratio to 8.2% • At 12/31/2022, our 7.4% adjusted TCE metric ranked as the 3rd highest of the top 20 banks, and was in the top 17% of ba
Slide 7: Securities Portfolio
Securities Portfolio Short Duration: Portfolio Durations • The estimated effective duration of the combined investment -100 Base +100 +300 portfolio (AFS and HTM) is 3.4 years, which extends to 3.6 years in a +200 basis point instantaneous shock indicating AFS 3.0 3.2 3.3 3.5 low levels of extension
Slide 8: Diversified Deposit Portfolio
Diversified Deposit Portfolio Deposits by Business Line Diversified across industries and customers: as of 3/31/2023 • Energy banking is the largest industry concentration at 7% of total deposits • Commercial & Corporate banking comprise a diverse array of industries Insured and collateralized balan
Slide 9: Robust Liquidity and Available Funding
Robust Liquidity and Available Funding Overview: Availability • Total secured borrowing capacity available of $23.7 billion Funding Source ($ billions) • When comparing our uninsured and uncollateralized deposit Excess cash balance at Federal Reserve $ 0.5 amount of $14.2 billion to our "Potential S
Slide 10: Marc Maun, EVP, Regional Banking Executive
Marc Maun EVP, Regional Banking Executive 10
Slide 11: Loan portfolio
Loan portfolio Seq. Loan YOY Loan ($Million) Mar. 31, 2023 Dec. 31, 2022 Mar. 31, 2022 Growth Growth • Energy balances were down slightly Energy $3,398.1 $3,424.8 $3,197.7 (0.8)% 6.3% with unfunded commitments up 6.5% Services 3,563.7 3,431.5 3,351.5 3.9% 6.3% • Combined Services & General Healthcar
Slide 12: Key credit quality metrics
Key credit quality metrics Quality metrics summary Net charge-offs to average loans ANNUALIZED • Credit quality better than pre-pandemic level • Trailing 12 months net charge-offs at 7 basis points • $16 million credit provision in Q1; with a combined allowance for credit losses of $312 million or 1
Slide 13: Scott Grauer, EVP, Wealth Management Executive
Scott Grauer EVP, Wealth Management Executive 13
Slide 14: Fees & commissions
Fees & commissions Brokerage & trading • Linked quarter decrease due to low Qtr. Seq. Qtr. Seq. Qtr. YOY ($Million) Q1 2023 mortgage originations & trading volumes, $ Change % Change % Change combined with strong syndication fees in Trading fees $27.6 $(8.3) (23.2)% 151.1% the prior quarter Derivati
Slide 15: Marty Grunst, EVP, Chief Financial Officer
Marty Grunst EVP, Chief Financial Officer 15
Slide 16: Yields, rate & margin
Yields, rate & margin Net interest revenue Quarterly Quarterly • Net interest revenue was flat ($Million) Q1 2023 Q4 2022 Q1 2022 sequential YOY linked quarter with two fewer days in Q1; benefit of $1.5 Net interest revenue $352.3 $352.6 $268.4 (0.1)% 31.3% billion increase in earning assets was off
Slide 17: Additional details
Additional details Quarterly Quarterly ◦ Loan balances grew $193 million; ($Billion) Q1 2023 Sequential YOY unfunded commitments decreased Period-End Loans $22.8 0.9% 10.0% $304 million ◦ Average deposits declined $2 billion in Average Loans $22.5 2.3% 9.8% Q1 as customers continue to redeploy pande
Slide 18: Balanced Interest Rate Risk Position
Balanced Interest Rate Risk Position Scenario* ∆ NIR % ∆ NIR $ Noteworthy balance sheet items Down 200 Ramp, year 1 -2.93% -$40.9 million • During mid-Q4 2022, we added approximately $1.5 billion of securities, which meaningfully balances our interest rate risk position Down 100 Ramp, year 1 -1.90%
Slide 19: Expenses
Expenses Expenses summary % Incr. % Incr. • Quarterly personnel expenses ($Million) Q1 2023 Q4 2022 Q1 2022 Seq. YOY decreased 2.3%, primarily due to declines in cash-based comp Personnel expense $182.1 $186.4 $159.2 (2.3)% 14.4% partially offset by annual merit increases and seasonal benefits costs
Slide 20: Forecast & assumptions
Forecast & assumptions ◦ We continue to expect mid to upper single digit annualized loan growth. Economic conditions in our geographic footprint remain very strong, and continue to be supported by business in-migration from other markets. Strong growth in unfunded commitments throughout 2022 and cur
Slide 21: Stacy Kymes, Chief Executive Officer
Stacy Kymes Chief Executive Officer 21
Slide 22: Question and Answer Session
Question and Answer Session 22
Slide 23: BOK Financial Corporation
BOK FINANCIAL CORPORATION