Bok Financial Corporation · NASDAQ:BOKF
Bok Financial — Investor Presentation (March 2014)
28 slides from Bok Financial's investor presentation, March 2014
Slide 1: Investor Presentation March 2014
Investor Presentation March 2014 NASDAQ: BOKF BOK Financial Corporation. Member FDIC. Equal Housing Lender. Services provided by BOKF, NA doing business as Bank of Albuquerque, Bank of Arizona, Bank of Arkansas, Bank of Kansas City, Bank of Oklahoma, Bank of Texas, Colorado State Bank and Trust. 1
Slide 2: Forward-Looking Statements
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-lookin
Slide 3: BOK Financial Corp. at a Glance
BOK Financial Corp. at a Glance Top 25 bank holding company Strong franchise throughout the Midwest and Southwest Leading energy and healthcare lender nationwide Seasoned management team with consistent execution and solid performance across all economic cycles At 12/31/13: NASDAQ: BOKF Assets
Slide 4: BOKF Investment Attributes
BOKF Investment Attributes Attribute Evidence Focused on long-term shareholder value 15.92% compounded annual return from January 1992 through December 2013 Management alignment with Insiders own 69% of outstanding shares shareholders Industry-leading performance across all 23-year track record of p
Slide 5: 23-Year Track Record of Profitability
23-Year Track Record of Profitability Driven Largely by Organic Growth 2012 and 2013: two best years in the company’s history BOK Financial Corporation. Member FDIC. Equal Housing Lender. Services provided by BOKF, NA doing business as Bank of Albuquerque, Bank of Arizona, Bank of Arkansas, Bank of
Slide 6: Driving Long Term Shareholder Value
Driving Long Term Shareholder Value As of 12/31/13 5 Yr. TSR 10 Yr. TSR 15 Yr. TSR BOKF 88% 112% 292% Peer average 63% 34% 150% Peer median 52% 21% 107% NASDAQ Bank Index 44% 14% 103% KBW Bank Index 70% -7% 28% “There is no principle more emphasized in our organization than managing for long-term va
Slide 7: Diversified Business Platform
Diversified Business Platform Retail and Commercial Banking Wealth Management Transaction Processing Mortgage Banking BOK Financial Corporation. Member FDIC. Equal Housing Lender. Services provided by BOKF, NA doing business as Bank of Albuquerque, Bank of Arizona, Bank of Arkansas, Bank of Kansas C
Slide 8: Balanced Revenue
Balanced Revenue Fee Businesses Provide Stability and Growth Opportunity Brokerage & Trading 10% CAGR 2010- LT Growth Rates Present Transaction Brokerage and 7.34% Card Trading 9% Transaction Card (1) 1.32% Trust Fees 11.68% Net interest Trust fees revenue 7% Service Charges (1) (2.8%) 53% Deposit M
Slide 9: Retail and Commercial Banking: Strong Core Deposit Base
Retail and Commercial Banking Strong Core Deposit Base Company Company Company Company Percent of Company Total Active Total Total Deposit Company Total Deposit Branches Deposits 2013 Market Share Deposits Market Rank 2013 2013 ($000) 2013 (%) 2013 (%) Tulsa, OK 1 38 6,839,818 31.09 35.63 Dallas-For
Slide 10: Retail and Commercial Banking: Strong Core Deposit Base
Retail and Commercial Banking Strong Core Deposit Base AZ Other CO 3% $24 Markets 7% 3% $18 NM Billions 7% $12 $6 TX OK $0 25% 4Q12 1Q13 2Q13 3Q13 4Q13 55% Demand Interest-bearing Trans Savings Time BOK Financial Corporation. Member FDIC. Equal Housing Lender. Services provided by BOKF, NA doing bus
Slide 11: Commercial Banking: Diversified by Sector and Geography
Commercial Banking Diversified by Sector and Geography Loan Portfolio Breakdown - by Sector: Loans by Principal Market: Commercial (In Millions) 12/31/2013 (In Millions) 12/31/2013 Energy $ 2,351.8 18.4% Oklahoma 5,220.6 40.8% Services $ 2,282.2 17.8% Texas 4,260.7 33.3% Wholesale/Retail $ 1,201.4 9
Slide 12: Commercial Banking: Energy Lending
Commercial Banking $2.4 billion energy portfolio at 12/31/13 Energy Lending Core competency of BOK for over 100 years 50-60% loan to value on proved producing reserves Approximately 59% of production loans are Wholesale/ Energy secured by oil Retail Services 9% 4% Regionally diverse oil an
Slide 13: Commercial Banking: Healthcare Lending
Commercial Banking Healthcare Lending Healthcare Commitments Growing line of business within commercial Medical Skilled Nursing $1.3 billion portfolio at 12/31/13 Svcs Facilities 25% 33% Portfolio increased at a compound annual rate of 10% since 2007 Specialty National expertise in skilled H
Slide 14: Commercial Real Estate Portfolio Trends
Commercial Banking Commercial Real Estate Portfolio Trends $600 CRE By Market $450 KS/MO AZ 7% OK Millions 10% 25% $300 CO 8% $150 AR 3% $0 TX C&D Retail Office Multifamily Industrial Other CRE 34% NM 3/31/2013 6/30/2013 9/30/2013 12/31/2013 13% BOK Financial Corporation. Member FDIC. Equal Housing
Slide 15: Mortgage Banking: Building a Recurring Revenue Model
Mortgage Banking Building a Recurring Revenue Model Housed within the retail banking business Several key strategic initiatives: 180,000 Mortgage Banking Revenue Build servicing portfolio 160,000 ($000s) 140,000 Expand correspondent 120,000 network 100,000 80,000 Build platform that 60,000
Slide 16: Mortgage Banking: Building a Recurring Revenue Model
Mortgage Banking Building a Recurring Revenue Model Servicing Portfolio ($B) Servicing Revenue ($MM) Consistent 14.0 11.5 growth in 13.5 11.0 servicing 13.0 portfolio drives 12.5 10.5 12.0 recurring 10.0 servicing 11.5 11.0 9.5 revenue Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 2012 2013 2013 2013 2013 2012 20
Slide 17: Wealth Management
Wealth Management Trust Fees and Commissions ($millions) $96.1 $56.4 billion in assets under management or custody $80.1 $73.3 $66.2 $69.0 $29.6 billion in fiduciary assets Clients include high net worth individuals, corporations, pensions, foundations, government entities, 2009 2010 2011 2012 20
Slide 18: ATM Network and Merchant Payment Processing
ATM Network $2,500 Merchant Volume Among the top 10 networks in the US $Mil $2,000 Operates in 21 states; 50% of clients CAGR: 9.47% outside Oklahoma $1,500 Clients: 207 Banks, 138 Credit Unions, 6 $1,000 C-Store partners $500 In 2013, processed 455 million EFT $- transactions 2008 2013 Merc
Slide 19: 2013 Results
2013 Results BOK Financial Corporation. Member FDIC. Equal Housing Lender. Services provided by BOKF, NA doing business as Bank of Albuquerque, Bank of Arizona, Bank of Arkansas, Bank of Kansas City, Bank of Oklahoma, Bank of Texas, Colorado State Bank and Trust. 19
Slide 20: 2013 Highlights
2013 Highlights Net income of $317 million or $4.59 per share Down from $351 million and $5.13 per share in 2012 Main drivers of financial results in 2013 include: Headwinds included lower short-term interest rates which negatively impacted net interest income, reduced mortgage refinancing act
Slide 21: Linked Quarter Summary
Linked Quarter Summary $Millions Q4 2013 Q3 2013 $ Change % Change Comments Average AFS Securities $ 10,434.8 $ 10,558.7 $ (123.9) -1.17% Reducing bond portfolio to manage interest rate sensitivity Average Loans 12,461.6 12,402.1 59.5 0.48% Growth driven by healthcare and commerical real estate Aver
Slide 22: Loan Portfolio Trends
Loan Portfolio Trends Strong growth in commercial lending C&I Loans and commercial real estate at year end $8.0 Strong pipelines entering 2014 $7.5 Healthcare business in execution Billions mode; poised for continued success in $7.0 2014 $6.5 Commercial real estate heating up, 4Q12 1Q13 2Q13
Slide 23: Net Interest Revenue
Net Interest Revenue Low Interest Rates Pressure NIR Yields (%) 5 Net Interest Revenue & Margin $185 3.50 4 3 3.25 2 NIR ($ in millions) 1 $175 3.00 Margin (%) 1Q13 2Q13 3Q13 3Q13 4Q13 AFS Loans 2.75 Cost of Int Bearing Liab (%) $165 2.50 0.75 2.25 0.50 $155 2.00 4Q12 1Q13 2Q13 3Q13 4Q13 0.25 0.00 N
Slide 24: $10.1B AFS Portfolio
$10.1B AFS Portfolio High Quality, Actively Managed Securities portfolio used primarily to manage interest rate risk and generate Private incremental net interest Issue MBS, revenue $0.2 Consistent strategy; actively Agency managed for total return CMBS, $2.1 Total AFS portfolio estimated Othe
Slide 25: Operating Revenue
Operating Revenue Diverse Revenue Provides Stability & Growth Opportunity Year Ended 31-Dec Fees and commissions 2013 2012 % Change Brokerage and trading revenue 125,478 126,930 -1.1% Transaction card revenue 116,823 107,985 8.2% Trust fees and commissions 96,082 80,053 20.0% Deposit service charges
Slide 26: Solid Credit Quality at Year End 2013
Solid Credit Quality at Year End 2013 Continued Positive Trends ALL to period end loans: Net annualized charge-offs to average loans: 1.45% (.02)% Allowance for loan losses to Non-performing assets* to period nonaccruing loans: end loans and repossessed assets: 183.29% 1.23% All metrics as of 12
Slide 27: Capital
Capital BOK Financial's Tier 1 common equity ratio based on the existing Basel I Tangible Common Equity Ratio standards was 13.73% as of December 31, 2013. SNV KEY Based on our interpretation of the new CMA capital rule, our estimated Tier 1 common FITB BOKF equity ratio is approximately 12.60%,
Slide 28: Superior Balanced Strategy
Superior Balanced Strategy Management alignment with shareholders Industry-leading performance across all market cycles Strong recurring revenue model Sound capital base Pristine credit quality Returning cash to shareholders BOK Financial Corporation. Member FDIC. Equal Housing Lender. Service