Bok Financial Corporation · NASDAQ:BOKF
Bok Financial — Investor Presentation (2017)
24 slides from Bok Financial's investor presentation, 2017
Slide 1: Investor Presentation
Investor Presentation NASDAQ: BOKF 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-looking
Slide 3: BOK Financial at a Glance
BOK Financial at a Glance One of the largest U.S. bank holding companies Valuable Midwest / Southwest franchise Seasoned management team Consistent execution and solid performance across all economic cycles Proven ability to deliver organic growth Leading energy and healthcare lender nat
Slide 4: Diverse Revenue Sources
Diverse Revenue Sources Sources of Revenue: 12 months ended 12/31/16 Revenue CAGR 2011–2016 Brokerage and Trading 6% Transaction Card 3% Trust Fees 13% Brokerage & Trading Service Charges 1% 10% Mortgage Banking 8% Overall CAGR 5% Net Interest Transaction 52% Card 9% TTM fees and commissions ($mm) T
Slide 5: Well Capitalized Balance Sheet
Well Capitalized Balance Sheet Dec 31 Sep 30 Dec 31 2016 2016 2015 Period End AFS Securities $8.7 billion $8.9 billion $9.0 billion Average AFS securities $8.8 billion $8.9 billion $9.0 billion Period End Deposits $22.7 billion $21.1 billion $21.1 billion Average Deposits $21.7 billion $20.8 billion
Slide 6: Strong Core Deposit Franchise
Strong Core Deposit Franchise Deposit mix and cost ($bn) Geographic deposit mix Demand Interest-bearing transaction Savings Time $24 $23 TX 27% $21 $21 $20 $21 11% 2% $18 NM OK 7% 51% AR 1% CO 6% AZ 48% 3% $12 KC 5% MSA Branches Deposit share Tulsa, OK 24 30.0% Dallas-Fort Worth-Arlington, TX 22 1.5
Slide 7: Diversified Loan Portfolio
Diversified Loan Portfolio Loan Portfolio Segmentation Loan Portfolio by Collateral Location: Wholesale/Retail New Mexico 9% 5% Manufacturing Arkansas 3% Texas 2% Healthcare Other C&I 32% 13% 3% Colorado 7% Arizona 5% Commercial Real Estate Services 22% 18% Kansas / Missouri 9% Other Oklahoma Energy
Slide 8: Energy
Energy Core competency of BOK for over 100 years Energy Services Differentiated specialty lending business 7% Substantially all first lien, senior secured, reserve-based loans – the Midstream sweet spot in energy lending & Other Regionally diverse collateral focused on “lower 48” onshore dri
Slide 9: Healthcare Banking
Healthcare Banking Healthcare Commitments Growing line of business within Medical commercial Services Skilled 30% Nursing $2.2 billion portfolio at 12/31/16 36% Five year CAGR 17.7% through 12/31/16 National expertise in skilled nursing facilities and acute care hospitals Senior Care and O
Slide 10: Wealth Management
Wealth Management Compounded Annual Revenue Growth 2011-2016: 8.4% Assets under management or custody: $75 billion Fiduciary assets: $42 billion More than $1 trillion in traded securities annually ~$5 billion deposits, ~$1 billion loans Clients include high net worth individuals, corpora
Slide 11: Transaction Processing
Transaction Processing ATM Network 600 EFT Transaction Volumes (M) Among the top 10 networks in the US 500 CAGR: 8.18% Operates in 25 states; more than 60% of clients 400 outside Oklahoma 300 Clients: 221 Banks, 150 Credit Unions, 4 C-Store 200 partners 100 In 2016, processed 569 million EFT
Slide 12: Mortgage Banking
Mortgage Banking Top 50 U.S. mortgage originator 200,000 Growing online sales channel – HomeDirect Mortgage 150,000 Annual origination volume ~ $6 billion 100,000 Servicing $22 billion of mortgages at 50,000 12/31/16 - Refinancing volume 63% of total funded 2012 2013 2014 2015 2016 volume
Slide 13: Q4 2016 Financial Results
© BOK FINANCIAL ‘N Q4 2016 Financial Results 13
Slide 14: Fourth Quarter Summary
Fourth Quarter Summary: Net Income Q4 2016 Q3 2016 Q4 2015 $74.3 $65.8 Diluted EPS $0.76 $1.13 $0.89 $59.6 Net income before $72.4 $107.1 $87.3 $50.0 $42.6 taxes ($M) $1.00 $1.13 Net income $50.0 $74.3 $59.6 $0.89 $0.76 $0.64 attributable to BOKF shareholders ($M) 4Q15 1Q16 2Q16 3Q16 4Q16 Net income
Slide 15: Additional Q4 Details
Additional Q4 Details Annualized Quarterly Quarterly Year over Year ($B) Q4 2016 Growth Growth Growth Period-End Loans $17.0 3.2% 12.8% 6.6% Mobank Loans $0.5 Period –End Loans, excluding Mobank $16.5 0.2% 1.0% 3.5% Fiduciary Assets $41.8 1.4% 5.4% 9.0% Assets Under Management $75.4 0.2% 0.7% 6.1% o
Slide 16: Loan Portfolio by Geography
Loan Portfolio by Geography Seq. YOY Dec 31 Sep 30 Loan Dec 31 Loan ($mil) 2016 2016 Growth 2015 Growth OK $5,765.7 $6,014.3 (4.1)% $6,187.0 (6.8)% TX 5,978.2 5,811.4 2.9% 5,535.3 8.0% NM 803.4 819.8 (2.0)% 821.3 (2.2)% AR 173.7 169.9 2.2% 170.7 1.8% CO 1,393.5 1,370.1 1.7% 1,288.2 8.2% AZ 1,522.5 1
Slide 17: Commercial Loan Portfolio
Commercial Loan Portfolio Seq. YOY Dec 31 Sep 30 Loan Dec 31 Loan ($mil) 2016 2016 Growth 2015 Growth Energy $2,497.9 $2,520.8 (0.9)% $3,097.3 (19.4)% Services 3,109.0 2,936.6 5.9% 2,784.3 11.7% Healthcare 2,201.9 2,085.1 5.6% 1,883.4 16.9% Wholesale/retail 1,576.8 1,602.0 (1.6)% 1,422.1 10.9% Manuf
Slide 18: Commercial Real Estate
Commercial Real Estate Seq. YOY Dec 31 Sep 30 Loan Dec 31 Loan ($mil) 2016 2016 Growth 2015 Growth Retail $761.9 $801.4 (4.9)% $796.5 (4.3)% Multifamily 903.3 873.8 3.4% 751.1 20.3% Office 798.9 752.7 6.1% 637.7 25.3% Industrial 871.7 838.0 4.0% 563.2 54.8% Residential Construction and Land Developm
Slide 19: Net Interest Revenue and Net Interest Margin
Net Interest Revenue Net Interest Margin Q4 Q3 Q2 Q1 Q4 ($mil) 2016 2016 2016 2016 2015 Net Interest Revenue $194.2 $187.8 $182.6 $182.6 $181.3 Provision For Credit Losses $ 0 $ 10.0 $ 20.0 $ 35.0 $ 22.5 Net Interest Revenue After Provision $194.2 $177.8 $162.6 $147.6 $158.8 Net Interest Margin * 2.
Slide 20: Fees and Commissions
Fees and Commissions Revenue, $mil Change: Quarterly, Quarterly, Trailing 12 Q4 16 Sequential Year over Year Months Brokerage and Trading $28.5 (25.0)% (5.8)% 6.8% Transaction Card 34.5 1.7% 6.8% 5.5% Fiduciary and Asset Management 34.5 1.4% 10.8% 7.4% Deposit Service Charges and Fees 23.4 (1.3)% 2.
Slide 21: Expenses
Expenses %Incr. %Incr. ($mil) Q4 2016 Q3 2016 Q4 2015 Seq. YOY Personnel Expense * $141.1 $139.2 $131.1 1.4% 7.6% Other Operating Expense $124.4 $118.9 $ 99.3 4.7% 25.3% Total Operating Expense $265.5 $258.1 $230.4 2.9% 15.2% • Unusual items in Q4 include Mobank closing costs ($4.7 million), severan
Slide 22: Key Credit Quality Metrics
Key Credit Quality Metrics $241.8 $247.2 $250.0 $237.0 $231.0 1.50% Net charge offs (annualized) to average loans $200.0 1.00% $159.6 $168.1 $143.0 $132.5 0.56% $147.1 $150.0 0.50% $61.2 0.08% $100.0 -0.03% 0.00% 0.15% 0.18% $50.0 $94.0 $98.5 $85.9 $82.2 $79.1 -0.50% 4Q15 1Q16 2Q16 3Q16 4Q16 $- 4Q15
Slide 23: 2017 Assumptions
2017 Assumptions Mid-single-digit loan growth for the full year Stable to increasing net interest margin Low single digit net interest income growth Loan loss provision of $20 - $30 million for the year Low-single-digit revenue growth from fee-generating businesses on a trailing twelve mon
Slide 24: Thank you!
© BOK FINANCIAL Thank you! ‘N