Bok Financial Corporation · NASDAQ:BOKF
Bok Financial — BOK Financial Corp ET AL — Morgan Stanley Financial Services Conference 2010
38 slides from Bok Financial's conference presentation, Feb 3, 2010
Slide 1: Morgan Stanley Financial Services Conference February 2-3, 2010
Morgan Stanley Financial Services Conference February 2 - 3, 2010
Slide 2: Strategy Produced Strong Results Despite The Recession
12/31/08 12/31/09 Change* BOK Financial ($ in thousands) Strategy Produced Strong Results Despite The Recession • Annualized where appropriate • Market cap as of 1/26/10
Slide 3: Consistent Strategies Proven to Deliver Solid Results
Consistent Strategies Proven to Deliver Solid Results ü Utilize a decision making framework based on long-term economic benefit ü Develop long-term relationships with commercial customers ü Deliver diverse fee-based services in a personalized responsive manner ü Originate quality loans while maintai
Slide 4: Earnings History: Profitable Through All Cycles
EPS CAGR 12% Earnings History Profitable Through All Cycles Source: SNL Financial EPS have been restated for stock dividends and for a 2-for-1 split
Slide 5: Peer Analysis: A Standout Among Peers
Peer Analysis A Standout Among Peers Note: Peers are defined as 20 US publicly traded banks, 10 immediately larger and 10 immediately smaller as measured by total assets at 12/31/09. Two peers had not reported when this presentation was prepared.
Slide 6: Revenue
© BOK FINANCIAL CORPORATION
Slide 7: Quarterly Results
Quarterly Results (in 000s) Nearly $500 Million in Pre-tax Pre-Provision Income in 2009 Note: Other includes gains/losses on securities including OTTI and changes in the value of MSRs and related hedge
Slide 8: Components of Revenue
Components of Revenue Fee Revenue Consistently Represents At Least 40% of Total Revenue Net Interest Revenue = 59% of Total Revenue Deposit Service Charges 10% Transaction Card 9% Brokerage & Trading 8% Mortgage Banking 5% Other 4% Trust Fees 5%
Slide 9: Net Interest Margin
Net Interest Margin More Stable Through Economic Cycles Source: SNL data as of 1/27/10. Two peers had not reported when this presentation was prepared.
Slide 10: Service Charges
Service Charges Likely to Decrease Due to Changes in Regulation Demand Deposits and Fee Income
Slide 11: Transaction Card Revenue
Transaction Card Revenue Consistent Solid Contributor
Slide 12: Brokerage & Trading Revenue
Brokerage & Trading Revenue Tremendous Growth in Investment Banking & Trading Fees
Slide 13: Mortgage Originations
Mortgage Originations 46% of Production In Regional Markets
Slide 14: Trust Revenue
Trust Revenue $30B in Trust Assets
Slide 15: Efficiency Ratio
Efficiency Ratio * For purposes of this comparison, peers are defined as the subset of the peer group of 20 with fee revenue over 35% of total revenue; Source: SNL as of 1/27/10. Two peers had not yet reported.
Slide 16: Loans and Securities
© BOK FINANCIAL CORPORATION
Slide 17: Loan Trends
Loan Trends Consistent Portfolio Mix 7% 55% 22% 16% 57% 21% 14% 8% 56% 22% 14% 8% 56% 22% 15% 7% 7% 55% 22% 16%
Slide 18: Loan Portfolio Diversified by Sector and Geography
$11.2 Billion Loan Portfolio Diversified by Sector and Geography
Slide 19: Energy Portfolio
Energy Portfolio Core Competency
Slide 20: CRE by Market
CRE by Market 75% of Exposure is in Stable Markets Market $ in 000s % of Total Oklahoma 820,578 33 Texas 735,338 New Mexico 305,061 Colorado 239, Arizona 227,249 9 Arkansas 132, 436 5 Kansas 30,802 1
Slide 21: Additional Loan Detail
Additional Loan Detail in millions Permanent Mortgage Loans $1,303 Home Equity Loans 490 Total Residential Mortgage $1,793 Consumer Loans $455 Indirect Auto Loans 332 Total Consumer Loans $787 Off-Balance Sheet Obligations Related to CRA Loans Sold with Recourse $331
Slide 22: $8.9B Investment Portfolio
© BOK FINANCIAL CORPORATION $8.9B Investment Portfolio Key Component of Our Interest Rate Risk Management Whole Other, Loan, $703 $234 Alt-A, $285 Agency CMO, $4,534
Slide 23: Other Than Temporary Impairment on Debt Securities
Other Than Temporary Impairment on Debt Securities Summary ($ in millions) Amortized cost of private issue MBS $961 Amortized cost of securities rated AAA Amortized cost of securities rated >investment grade and 190 Amortized cost of securities rated < investment grade by at least one rating agency
Slide 24: Credit Quality
© BOK FINANCIAL CORPORATION
Slide 25: Nonperforming Assets
Non performing Assets Reduce Level But Maximize Total Return
Slide 26: Nonperforming Assets / Loans & OREO
Nonperforming Assets / Loans & OREO Source: SNL; Two peers had not reported when this presentation was prepared.
Slide 27: Net Charge-Offs in Basis Points
Net Charge-Offs in Basis Points CRE Charge-offs Decreased in 4Q
Slide 28: Net Charge-offs as a % of Average Loans
Net Charge-offs as a % of Average Loans (annualized) Consistently Lower Than the Peer Median * 62% of 2Q08 charge-offs consisted of a $26 million charge related to one energy company Source: SNL; Two peers had not reported when this presentation was prepared.
Slide 29: Other Real Estate Owned
Other Real Estate Owned $ in millions OREO & Related Expenses Likely to Remain Elevated
Slide 30: Funding and Capital
© BOK FINANCIAL CORPORATION
Slide 31: Funding Sources
Funding Sources Diverse Sources By Type and Region
Slide 32: Deposits
Deposits Dominated by Core Deposit Relationships
Slide 33: Well Capitalized
Well capitalized level as defined by regulators * Tangible common equity ratio is a non-GAAP measure of capital strength based on equity as defined by GAAP minus intangible assets and equity that does not benefit common shareholders. BOKF did not participate in TARP
Slide 34: Well Positioned to Take Advantage of Opportunities
Well Positioned to Take Advantage of Opportunities
Slide 35: Current Focus
Current Focus ü Aggressively address credit quality ü Renew the focus on profitable loan growth ü Employ team based selling and other initiatives to generate additional fee revenue ü Retain and grow deposits ü Secure the savings from expense control initiatives completed in 2009 ü Seek opportunistic
Slide 36: How We Are Different
How We Are Different ü Balanced strategy with long term focus successfully creates shareholder value through varying economic cycles ü Diversified mix of fee revenue ü Strong core earnings ü Diversified loan portfolio with consistent mix ü Attractive footprint ü Excess capital to fund opportunistic
Slide 37: Forward-Looking Statements
Forward-Looking Statements 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, and the economy generally. Words such as “anticipat
Slide 38: Q & A
Steven E. Nell, EVP & Chief Financial Officer Steven G. Bradshaw, SEVP Q & A
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