Bok Financial Corporation · NASDAQ:BOKF
Bok Financial — Q4 2020 Earnings Presentation
17 slides from Bok Financial's earnings presentation, Jan 20, 2021
Slide 1: Fourth Quarter 2020 Earnings Conference Call
BOK Financial Corporation Fourth Quarter 2020 Earnings Conference Call January 20, 2021
Slide 2: Legal Disclaimers
Legal Disclaimers 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, the economy generally and the exp
Slide 3: Steven G. Bradshaw, Chief Executive Officer
Steven G. Bradshaw Chief Executive Officer 3
Slide 4: Fourth Quarter Summary
Fourth Quarter Summary Net Income- Annual Net Income- Quarter $154.0 $154.2 $500.8 $445.6 $435.0 $110.4 $7.03 $2.21 $6.63 $6.19 $2.19 $1.56 $62.1 $64.7 $0.88 $0.92 2018 2019 2020 4Q19 1Q20 2Q20 3Q20 4Q20 Net income attributable to shareholders Net income attributable to shareholders Earnings per sha
Slide 5: Additional Details
Additional Details Quarterly Year over Year ($bil) Q4 2020 Growth Growth Period-End Loans $23.0 (3.3)% 5.8% Average Loans $23.4 (2.7)% 5.4% Period-End Deposits $36.1 3.3% 30.9% Average Deposits $35.5 2.5% 31.1% Fiduciary Assets $60.5 14.3% 15.6% Assets Under Management or in Custody $91.6 11.1% 10.7
Slide 6: Stacy Kymes, Executive Vice President, Corporate Banking
Stacy Kymes Executive Vice President, Corporate Banking 6
Slide 7: Loan Portfolio
Loan Portfolio Seq. Dec 31, Sep 30, Dec 31, Loan YOY Loan ($mil) 2020 2020 2019 Growth Growth Energy $3,469.2 $3,717.1 $3,973.4 (6.7)% (12.7)% Services 3,508.6 3,545.8 3,832.0 (1.1)% (8.4)% Healthcare 3,306.0 3,325.8 3,033.9 (0.6)% 9.0% General business 2,793.8 2,977.0 3,192.3 (6.2)% (12.5)% Total C
Slide 8: COVID-19
COVID-19 Loan Deferrals In Deferral Exited Deferral # of loans Amount ($mil) % of segment # of loans Amount ($mil) % of segment Business Market* 30 $86.8 0.4% 448 $1,575.5 8.1% Individual Market** 296 $30.7 1.8% 473 $35.9 2.2% Total 326 $117.5 0.6% 921 $1,611.4 7.6% * Includes C&I, Energy, Healthcar
Slide 9: Key Credit Quality Metrics
Key Credit Quality Metrics Non-accruals (mil) Net charge-offs (annualized) to average loans $255.4 0.60% $234.7 $221.2 $181.0 $163.2 0.40% 0.37% 0.31% 0.28% 0.22% 0.23% 0.20% 0.00% 4Q19 1Q20 2Q20 3Q20 4Q20 4Q19 1Q20 2Q20 3Q20 4Q20 Energy Healthcare CRE Residential and Other • Net charge-offs decreas
Slide 10: Steven Nell, Chief Financial Officer
Steven Nell Chief Financial Officer 10
Slide 11: Net Interest Revenue and Margin
Net Interest Revenue and Margin ($mil) Q4 2020 Q3 2020 Q2 2020 Q1 2020 Q4 2019 Net interest revenue $297.2 $271.8 $278.1 $261.4 $270.2 Net interest margin 2.72% 2.81% 2.83% 2.80% 2.88% Yield on loans 3.68% 3.60% 3.63% 4.50% 4.75% Cost of int-bearing deposits 0.19% 0.26% 0.34% 0.98% 1.09% Cost of who
Slide 12: Fees and Commissions
Fees and Commissions Revenue ($mil) Growth: Quarterly, Quarterly, Year Trailing 12 Q4 2020 Sequential over Year Months Brokerage and Trading $39.5 (43.2)% (9.9)% (1.9)% Transaction Card 21.9 (6.7)% (2.9)% (0.7)% Fiduciary and Asset Management 41.8 4.7% (7.2)% (1.9)% Deposit Service Charges and Fees
Slide 13: Expenses
Expenses %Incr. %Incr. ($mil) Q4 2020 Q3 2020 Q4 2019 Seq. YOY Personnel expense $176.2 $179.9 $168.4 (2.0)% 4.6% Other operating expense $124.5 $121.4 $120.4 2.5% 3.4% Total operating expense $300.7 $301.3 $288.8 (0.2)% 4.1% Efficiency Ratio 62.36% 60.41% 63.65% • Quarterly personnel expense down d
Slide 14: Liquidity & Capital
Liquidity & Capital Q4 2020 Q3 2020 Q4 2019 Loan to Deposit Ratio 63.7% 68.1% 78.7% Period End Deposits $36.1 billion $35.0 billion $27.6 billion Available secured wholesale borrowing $12.8 billion $12.5 billion $10.6 billion capacity Common Equity Tier 1 11.9% 12.1% 11.4% Total Capital Ratio 13.8%
Slide 15: Forecast and Assumptions
Forecast and Assumptions • Loan growth to remain soft in the short-term, though accelerating in the back-half of 2021 • Available-for-sale security portfolio yield expected to decrease as prepayments force reinvestment at lower rates • Interest-bearing deposit costs nearing a bottom • The combinatio
Slide 16: Steven G. Bradshaw, Chief Executive Officer
Steven G. Bradshaw Chief Executive Officer 16
Slide 17: Question and Answer Session
Question and Answer Session 17