Bok Financial Corporation · NASDAQ:BOKF
Bok Financial — Investor Presentation (2021)
23 slides from Bok Financial's investor presentation, 2021
Slide 1: Investor Presentation Q2 2021
INVESTOR PRESENTATION Q2 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: Corporate Snapshot
NASDAQ: BOKF CORPORATE SNAPSHOT - Top 30 national/regional bank* - Midwest/Southwest franchise - 118 full service locations across 8 states - Seasoned management team Full Service Markets Additional Wealth Markets - Proven ability to deliver organic growth - Consistent execution and strategy - Long-
Slide 4: Chairman quote on long-term value
“There is no principle more emphasized in our organization than managing for long-term value rather than short-term results.” – George Kaiser, Chairman 4
Slide 5: Core Strategy
CORE STRATEGY EARNINGS PER SHARE CAGR ACROSS 28 YEAR HISTORY OF BOKF IS 8.8% $550,000 $500,000 $450,000 $400,000 Build a recession-ready $350,000 bank that will outperform $300,000 peers across the $250,000 $200,000 economic cycle. $150,000 $100,000 $50,000 $0 92 93 94 95 96 97 98 99 00 01 02 03 04
Slide 6: Diverse Revenue Sources
DIVERSE REVENUE SOURCES WELL DIVERSIFIED 4% No single component of fee income accounts for more than 10% Other 7% Revenue Brokerage of total revenue. Nearly 40% fee income is a differentiator & Trading compared to other midsized regional banks. 6% Transaction 62% Card Revenue Net Interest ADDITIONAL
Slide 7: Strong Balance Sheet
STRONG BALANCE SHEET METRIC 06/30/2021 CREDIT RATINGS BOKF, NA BOK Financial Corp. Period End Loans $21.4 billion S&P A- (OS) BBB+ (OS) Period End Deposits $37.4 billion Moody’s A3 (OS) A3 (OS) Loan to Deposit Ratio 57.2% Fitch Ratings A (OS) A (OS) CAPITAL RATIOS Regulatory minimum 06/30/2021 CAPIT
Slide 8: Strong Core Deposit Franchise
STRONG CORE DEPOSIT FRANCHISE Deposit DEPOSIT MIX & COST ($BILLION) GEOGRAPHIC DEPOSIT MIX MSA Branches Share Demand Interest-bearing transaction Savings Time Tulsa, OK 22 38% Dallas/Fort Worth/Metro, TX 20 1% $40,000 - CO - Oklahoma City, OK 16 10% 5% $35,000 12% - KS/MO - 2% 4% Albuquerque, NM 14
Slide 9: Diversified Loan Portfolio
DIVERSIFIED LOAN PORTFOLIO DISCIPLINED CONCENTRATION MANAGEMENT DIVERSIFIED BY SECTOR & GEOGRAPHY Loans to Individuals 17% Commercial Real Estate TX Other 20% 31% Services 23% 16% LOAN COLLATERAL NM PPP SEGMENTATION 5% LOCATION as of 06/30/2021 as of 06/30/2021 5% Healthcare KS/MO 16% 5% OK General
Slide 10: Energy Banking
ENERGY BANKING Over 100 Year History in Energy Lending PORTFOLIO COMPOSITION AT 06/30/2021 and a Playbook That Works - Focus on first lien, senior secured E&P lending – the “sweet spot” in Midstream energy lending. & Other Oil & Gas - Internal staff of 16 petroleum engineers and engineering techs to
Slide 11: Healthcare Banking
HEALTHCARE BANKING Outstandings Totaled $3.4 Billion Across PORTFOLIO COMPOSITION AT 06/30/2021 31 States at June 30, 2021 Hospital Healthcare Portfolio Characteristics: Senior 10% Housing Service - Favorable LIBOR spreads 79% Medical - Above-average loan utilization rates 11% PORTFOLIO - Predominat
Slide 12: Commercial Real Estate
COMMERCIAL REAL ESTATE $4.2 Billion Outstanding and $1.5 Billion Unfunded PORTFOLIO COMPOSITION AT 06/30/2021 Commitments at June 30, 2021 Residential - BOKF allocates 175% of Tier 1 capital plus reserves to CRE. 3% Office Industrial - Further controls and limitations by product type and 25% 19% geo
Slide 13: Wealth Management
WEALTH MANAGEMENT Primary Lines of Business WEALTH MANAGEMENT REVENUE - Private Wealth - Brokerage & Trading Services - Institutional Wealth Management FEE INCOME & NET INTEREST REVENUE - Cavanal Hill Investment Management Fee Income Net Interest Revenue - Clients include high net worth individuals,
Slide 14: Transaction Processing
TRANSACTION PROCESSING Debit Processing & ATM Network TRANSACTION PROCESSING VOLUME - Among the top 10 networks in the US - Operates nationally with customers based in 26 states and the U.S. Virgin Islands EFT TRANSACTION VOLUMES (Million) - More than 65% of clients are outside of Oklahoma - Clients
Slide 15: Mortgage Banking
MORTGAGE BANKING MORTGAGE BANKING REVENUE SERVICING, ORIGINATING & MARKETING REVENUE Servicing Originating & Marketing 6/2021 TTM Top 50 U.S. Mortgage Originator 2020 - Annual origination volume in 2020 was $4.0 billion 2019 - YTD 2021 originations are $1.5 billion 2018 - Servicing an average of $15
Slide 16: Financial Results Q2 2021
FINANCIAL RESULTS Q2 | 2021 16
Slide 17: Q2 Summary
Q2 SUMMARY NET INCOME Noteworthy Items Impacting Profitability • Another outstanding earnings quarter from our Wealth Management Attributable to Shareholders Per Share (Diluted) team • Net interest income stabilization $166.4 • $35 million negative provision for credit loss $154.0 $154.2 • Expense m
Slide 18: Loan Portfolio
LOAN PORTFOLIO June 30, Mar 31, June 30, SEQ. LOAN YOY LOAN ($Million) LOANS OVERVIEW 2021 2021 2020 GROWTH GROWTH • Energy balances decline, but at a slower Energy $3,011.3 $3,202.5 $3,974.2 (6.0)% (24.2)% pace than previous periods Services 3,389.8 3,421.9 3,779.9 (0.9)% (10.3)% • Quarterly growth
Slide 19: Yields, Rate & Margin
YIELDS, RATE & MARGIN ($Million) Q2 2021 Q1 2021 Q4 2020 Q3 2020 Q2 2020 Net Interest Revenue $280.3 $280.4 $297.2 $271.8 $278.1 NET INTEREST REVENUE Net Interest Margin 2.60% 2.62% 2.72% 2.81% 2.83% • Net interest revenue largely unchanged from previous quarter Yield on Available for Sale Securitie
Slide 20: Fees & Commissions
FEES & COMMISSIONS BROKERAGE & TRADING REVENUE GROWTH • Product focus shift and client base expansion Quarterly, Year over promoted revenue growth ($Million) Q2 2021 Quarterly, Sequential Year Trailing 12 Months FIDUCIARY & ASSET MANAGEMENT Brokerage & Trading $29.4 41.5% (52.6)% (17.0)% • Strong sa
Slide 21: Expenses
EXPENSES EXPENSES OVERVIEW %Incr. %Incr. ($Million) Q2 2021 Q1 2021 Q2 2020 • Quarterly personnel expense flat due to Seq. YOY regular compensation decrease of $1.1 million was mostly offset by an increase in Personnel expense $172.0 $173.0 $176.2 (0.6)% (2.4)% incentive compensation expense • Quart
Slide 22: Key Credit Quality Metrics
KEY CREDIT QUALITY METRICS NET CHARGE-OFFS TO AVERAGE LOANS ANNUALIZED, NET OF PPP QUALITY METRICS OVERVIEW 0.60% 0.41% • Total non-accrual loans down $36.4 million 0.40% 0.31% 0.28% 0.30% • A decrease of $31.5 million in Energy non-accruals 0.25% 0.20% • Potential problem loans (substandard, accrui
Slide 23: © BOK Financial Corporation
© BOK FINANCIAL CORPORATION