Bok Financial Corporation · NASDAQ:BOKF
Bok Financial — Q3 2024 Earnings Presentation
22 slides from Bok Financial's earnings presentation, Oct 22, 2024
Slide 1: Q3 Earnings Conference Call
Q3 Earnings Conference Call October 22, 2024
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, and the economy generally. Words such as “anticipates,” “beli
Slide 3: Stacy Kymes, Chief Executive Officer
Stacy Kymes Chief Executive Officer 3
Slide 4: Q3 Financial Highlights
Q3 Financial Highlights Net Income Attributable to shareholders • Net Income was $140.0 million, or $2.18 per diluted share Per share (diluted) • Asset quality remains strong with criticized levels $163.7 remaining well below pre-pandemic levels and non- $134.5 $140.0 performing assets declining 6.5
Slide 5: Additional Details
Additional Details Quarterly Quarterly ◦ Period end loan balances declined ($Billion) Q3 2024 Sequential YOY $569 million with lower commercial balances, partially offset by increased Period End Loans $24.0 (2.3)% 1.1% CRE activity while average loan balances were relatively consistent, Average Loan
Slide 6: Marc Maun, EVP, Regional Banking Executive
Marc Maun EVP, Regional Banking Executive 6
Slide 7: Loan Portfolio
Loan Portfolio Seq. Loan YOY Loan ($Million) Sep. 30, 2024 June 30, 2024 Sep. 30, 2023 Growth Growth • Combined Services & General Energy $ 3,126.6 $ 3,451.5 $ 3,490.6 (9.4)% (10.4)% Business (Core C&I) balances decreased $339 million; however Services 3,573.7 3,577.1 3,566.4 (0.1)% 0.2% are up $456
Slide 8: Credit Resilience
Credit Resilience Disciplined Credit Concentration 100 year history in energy lending and a tested playbook that works • CRE limit on total committed balances is 185% of tier • 70% oil / 30% gas-weighted borrowers one capital plus reserves • Robust stress testing process and 17 petroleum • Office CR
Slide 9: Credit Quality Metrics
Credit Quality Metrics • Credit quality remains better than pre-pandemic levels Net Charge-Offs to Average Loans with a 6.9% decline during the quarter in non-performing Annualized assets, excluding those guaranteed by U.S. government agencies 0.60% • Trailing 12 months net charge-offs at 7 bps with
Slide 10: Scott Grauer, EVP, Wealth Management Executive
Scott Grauer EVP, Wealth Management Executive 10
Slide 11: Fee Income - Markets & Securities
Fee Income - Markets & Securities Trading Fees ($Million) Q3 2024 Qtr. Seq. Qtr. Seq. Qtr. YOY $ Change % Change % Change • Decreased 14.6% driven by market Trading Fees $ 23.6 $ (4.1) (14.6)% (31.4)% conditions during the quarter, partially Mortgage Banking 18.4 (0.3) (1.4)% 37.6% offset by strong
Slide 12: Fee Income - Asset Management & Transactions
Fee Income - Asset Management & Transactions Fiduciary & Asset Management Qtr. Seq. Qtr. Seq. Qtr. YOY ($Million) Q3 2024 $ Change % Change % Change • Assets under management and Markets & Securities $ 68.7 $ (2.9) (4.0)% (9.1)% A administration (“AUMA”) increased $3.2 billion during the Fiduciary &
Slide 13: Marty Grunst, EVP, Chief Financial Officer
Marty Grunst EVP, Chief Financial Officer 13
Slide 14: Yields, Rate & Margin
Yields, Rate & Margin Quarterly Quarterly Net Interest Income ($Million) Q3 2024 Q2 2024 Q3 2023 sequential YOY • Net interest income was up $12.1 million linked quarter Net Interest Income $308.1 $296.0 $300.9 4.1% 2.4% led by a combination of increased loan yields, the benefit from upward repricin
Slide 15: Expenses
Expenses • Quarterly personnel expenses increased $15.7 million due % Incr. % Incr. ($Million) Q3 2024 Q2 2024 Q3 2023 primarily to higher incentive Seq. YOY compensation costs. These are largely timing related as Personnel Expense $206.8 $191.1 $190.8 8.2% 8.4% commercial incentive compensation pla
Slide 16: 2024 Full Year Outlook
2024 Full Year Outlook Business Driver FY as of 10/21/24 FY as of 7/23/24 Notes Low single digit Loans (EOP) +5% to +7% Reflects specialized lending payoff activity seen in Q3 growth rate Deposits (EOP) Moderate growth Modest growth Loan to deposit ratio is expected to remain below 70% Investment Se
Slide 17: Question & Answer Session
Question & Answer Session 17
Slide 18: Stacy Kymes, Chief Executive Officer
Stacy Kymes Chief Executive Officer 18
Slide 19: Appendix
Appendix 19
Slide 20: Securities and Interest Rate Risk Position
Securities and Interest Rate Risk Position Securities Portfolio Interest Rate Risk • Short duration with limited extension, current portfolio duration • Approximately 74% of the total loan portfolio is variable rate or is 3.0 years, extending to only 3.7 years if rates increase 300 fixed rate that r
Slide 21: Liquidity & Capital
Liquidity & Capital Q3 2024 Q2 2024 Q3 2023 Liquidity Loan to Deposit Ratio 64.4% 67.7% 70.5% • Period-end deposit balances increased $985 million this quarter Period-End Deposits $37.2 billion $36.2 billion $33.7 billion Available Secured Capacity $22.8 billion $20.4 billion $19.2 billion • Uninsur
Slide 22: BOK Financial Corporation
BOK FINANCIAL CORPORATION