Bok Financial Corporation · NASDAQ:BOKF
Bok Financial — Q3 2015 Earnings Presentation
23 slides from Bok Financial's earnings presentation, Oct 28, 2015
Slide 1: Third Quarter 2015 Earnings Conference Call
Third Quarter 2015 Earnings Conference Call October 28, 2015 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: Q3 2015 Highlights
Q3 2015 Highlights Q3 2015 Q2 2015 Q3 2014 Net Income ($mil) $74.9 $79.2 $75.6 Diluted EPS $1.09 $1.15 $1.09 • Loan growth and loan loss provision in line with BOKF expectations • Good expense controls during the quarter • Lower than expected fee income in the quarter • Higher than expected negative
Slide 5: Additional Q3 2015 Highlights
Additional Q3 2015 Highlights % % Growth, Growth, ($bil) Q3 2015 Q2 2015 Seq. Q3 2014 YOY Period-End Loans $15.4 $15.1 1.6% $13.7 12.3% 6.43% ann. Avg. Loans 15.2 14.9 1.9% 13.5 12.4% 7.7% ann. Fiduciary Assets $37.8 $38.8 (2.6%) $34.0 11.1% Assets Under $67.0 68.6 (2.3%) $62.3 7.5% Management or in
Slide 6: Steven Nell, Chief Financial Officer: Financial Overview
Steven Nell Chief Financial Officer Financial Overview 6
Slide 7: Net Interest Revenue and Margin
Net Interest Revenue and Margin Q3 Q2 Q1 Q4 Q3 ($mil) 2015 2015 2015 2014 2014 Net Interest Revenue $178.6 $175.7 $167.7 $169.7 $166.8 Provision for credit losses $ 7.5 $ 4.0 $ 0.0 $ 0.0 $ 0.0 NIR after provision $171.1 $171.7 $167.7 $169.7 $166.8 Net Interest Margin 2.61% 2.61% 2.55% 2.61% 2.67% NI
Slide 8: Fees and Commissions Revenue
Fees and Commissions Revenue % Growth, % Growth, % Growth, ($mil) Q3 2015 Seq. YOY TTM Brokerage and trading $31.6 (12.3%) (10.4%) (1.8%) Transaction card 32.5 (0.8%) 3.0% 5.3% Fiduciary and asset management 30.8 (5.8%) 3.6% 14.1% Deposit service charges and fees 23.6 5.7% 4.9% (1.7%) Mortgage banki
Slide 9: Expense Review
Expense Review %Incr. %Incr. ($mil) Q3 2015 Q2 2015 Q3 2014 Seq. YOY Personnel Expense $129.1 $132.7 $123.0 (2.7%) 4.9% Other Operating $ 95.5 95 5 $ 94.4 94 4 $98 8 $98.8 1 2% 1.2% (3 3%) (3.3%) Expense Total operating $224.6 $227.1 $221.8 (1.1%) 1.3% expense • Lower personnel costs due to reductio
Slide 10: Other Balance Sheet Statistics
Other Balance Sheet Statistics Q3 2015 Q2 2015 Q3 2014 Period End AFS Securities $8.8 billion $9.0 billion $9.3 billion Average AFS securities $8.9 billion $9.1 billion $9.5 billion Period End Deposits $20.6 billion $21.1 billion $20.3 billion Average deposits $20.7 billion $21.1 billion $20.2 billi
Slide 11: 2015 and 2016 Preliminary Assumptions
2015 2016 Preliminary y Assumptions Assumptions Mid-to-high single digit loan Mid-to-high Mid to high single digit loan growth in Q4 growth Stable NIM and increasing NII Stable NIM and increasing NII Provision for credit losses for the Provision for credit losses for the full year of $15
Slide 12: Norm Bagwell, EVP-Regional Banking
Norm Bagwell EVP-Regional Banking 12
Slide 13: Loan Portfolio by Geography
Loan Portfolio by Geography Seq. YOY Sep 30 Jun 30 Loan Sep 30 Loan ($mil) 2015 2015 Growth 2014 Growth OK $5,782.5 $5,749.0 0.6% $5,373.6 7.6% TX 5,426.3 5,281.7 2.7% 4,611.9 17.7% NM 812.7 819.6 (0.8%) 834.3 (2.6%) AR 171.3 197.3 (13.2%) 184.7 (7.3%) CO 1,340.3 1,333.7 0.5% 1,230.2 8.9% AZ 1 150 5
Slide 14: Commercial Loan Growth
Commercial Loan Growth Seq. YOY Sep 30 Jun 30 Loan Sep 30 Loan ($mil) 2015 2015 Growth 2014 Growth Energy $2,838.1 $2,902.1 (2.2%) $2,551.7 11.2% Services 2,706.6 2,681.1 1.0% 2,340.0 15.7% Wholesale/retail 1,461.9 1,533.7 (4.7%) 1,421.1 2.9% Manufacturing 555.7 579.6 (4.1%) 479.5 15.9% Healthcare 1
Slide 15: Total Loans
Total Loans Seq. YOY Sep 30 Jun 30 Loan Sep 30 Loan ($mil) 2015 2015 Growth 2014 Growth Total Comm’l $9,797.4 $9,775.7 0.2% $8,572.0 14.3% Total CRE 3,235.1 3,033.5 6 6% 6.6% 2,724.2 18 8% 18.8% Total Residential 1,869.0 1,884.7 (0.8%) 1,979.7 (5.6%) Mortgage Total Personal 465.9 430.2 8.3% 407.8 14
Slide 16: Loan Yields
Loan Yields Three Months Ended Sep 30, Jun 30, Mar 31, Dec 31, Sep 30, 2015 2015 2015 2014 2014 3.54% 3.65% 3.59% 3.73% 3.78% Tough competitive landscape in Q3 impacted new production p pricing g Sequential decrease partially attributable to non-recurrence of Q2 interest recoveries, which impact
Slide 17: Stacy Kymes, EVP-Corporate Banking
Stacy Kymes EVP-Corporate Banking 17
Slide 18: Energy Banking
Energy Banking Wholesale/ Energy Retail 3% Services At 9/30/15: 8% Midstream $ $5.4 billion commitments and $2.8 $ billion O/S / 4% E&P line utilization 57% SNCs = 53% of commitments, 48% of outstandings ~60/40 split p between oil and g gas Oil & Gas Producers 85% Gross Losses Fifteen Year T
Slide 19: Energy Banking
Energy Banking To date, credit migration has been manageable: $mil Q4 2014 Q1 2015 Q2 2015 Q3 2015 Pass Performing Loans 2,832.6 99.0% 2,748.3 94.7% 2,658.5 91.6% 2,527.5 89.1% Spec. Mention Performing (“Criticized”) 10.5 0.4% 108.7 3.7% 112.8 3.9% 196.3 6.9% Potential Problem Loans 15.9 0.6% 44.1 1
Slide 20: Commercial Real Estate
Commercial Real Estate Seq. YOY Sep 30 Jun 30 Loan Sep 30 Loan ($mil) 2015 2015 Growth 2014 Growth Residential construction $153 5 $153.5 $148 6 $148.6 3 3% 3.3% $175 2 $175.2 (12 4%) (12.4%) and land development Retail 769.4 688.4 11.8% 611.3 25.9% Office 626.1 563.1 11.2% 438.9 42.7% Multifamily 7
Slide 21: Industry-Leading Credit Quality
Industry-Leading Credit Quality Combined allowance for credit Net annualized charge-offs to losses to period end loans: average loans: 1 35% 1.35% 0 05% 0.05% Combined allowance for credit Non Non-performing performing assets to losses to nonaccruing loans: period end loans and repossessed as
Slide 22: Closing Remarks
Steven G. Bradshaw Chief Executive Officer Closing Remarks 22
Slide 23: Question and Answer Session
Question and Answer Session 23