Bok Financial Corporation · NASDAQ:BOKF
Bok Financial — Investor Presentation (2016)
24 slides from Bok Financial's investor presentation, 2016
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: Diversified Revenue Sources
Diversified Revenue Sources TTM revenue sources (12 months ended 9/30/16) Revenue CAGR 2010–2015 Brokerage and Trading 5% Transaction Card 5% Trust Fees 15% Brokerage & Trading Service Charges (3%) 10% Mortgage Banking 9% Transaction Overall CAGR 5% Net Interest Card 52% 9% TTM fees and commissions
Slide 5: Strong Capital Base
Strong Capital Base Q3 2016 Q2 2016 Q3 2015 Period End AFS Securities $8.9 billion $8.8 billion $8.8 billion Average AFS securities $8.9 billion $8.9 billion $8.9 billion Period End Deposits $21.1 billion $20.8 billion $20.6 billion Average Deposits $20.8 billion $20.5 billion $20.7 billion Common E
Slide 6: Strong Core Deposit Franchise
Strong Core Deposit Franchise Deposit mix and cost ($bn) Geographic deposit mix Demand Interest-bearing transaction Savings Time TX $24 26% $21 $21 $21 $21 $20 11% 2% $18 OK NM 53% 7% AR 2% 48% CO $12 AZ 7% KC 2% 3% MSA Branches Deposit share Tulsa, OK 26 30.0% $6 Dallas-Fort Worth-Arlington, TX 23
Slide 7: Diversified Loan Portfolio
Diversified Loan Portfolio Loan Portfolio Segmentation Loan Portfolio by Collateral Location: Wholesale/Retail New Mexico 10% Manufacturing Texas 5% 3% 33% Arkansas Healthcare Other C&I 2% 13% 3% Colorado 8% Commercial Arizona Services Real Estate 5% 18% 23% Kansas / Missouri 6% Oklahoma Energy Othe
Slide 8: Energy Banking
Energy Banking Energy Services Expertise of BOKF for over 100 years 8% In-house engineering team is significant differentiator Midstream & Other Navigated two year commodity downturn from 2014 to 13% 2016 with only modest stress to the portfolio and minimal chargeoffs Cumulative chargeoffs i
Slide 9: Healthcare Banking
Healthcare Banking Healthcare Commitments Growing line of business within Medical commercial Services Skilled 30% Nursing $2.1 billion portfolio at 9/30/16 36% Five year CAGR 18.4% through 12/31/15 National expertise in skilled nursing facilities and acute care hospitals Senior Care and Ot
Slide 10: Wealth Management
Wealth Management Compounded Annual Revenue Growth 2011-2016: 8.4% Assets under management or custody: $75 billion Fiduciary assets: $41 billion More than $1 trillion in traded securities annually $4 billion deposits, $1 billion loans Clients include high net worth individuals, corporati
Slide 11: Transaction Processing
Transaction Processing 600 EFT Transaction ATM Network Volumes (M) 500 Among the top 10 networks in the US 400 CAGR: 9.91% Operates in 23 states; 60% of clients outside 300 Oklahoma 200 Clients: 216 Banks, 137 Credit Unions, 5 C-Store partners 100 0 In 2015, processed 537 million EFT transac
Slide 12: Mortgage Banking
Mortgage Banking Top 50 U.S. mortgage originator 200,000 Growing online sales channel – HomeDirect Mortgage 150,000 100,000 Annual origination volume ~ $6 billion 50,000 Servicing $21.9 billion of mortgages at 9/30/16 - 2010 2011 2012 2013 2014 2015 TTM Refinancing volume 51% of total fund
Slide 13: Q3 2016 Financial Results
© BOK FINANCIAL ~ Q3 2016 Financial Results
Slide 14: Third Quarter Summary
Third Quarter Summary: Net Income Q3 2016 Q2 2016 Q3 2015 $74.3 $74.9 $65.8 Diluted EPS $1.13 $1.00 $1.09 Net income before $107.1 $96.8 $109.9 $59.6 taxes ($M) $42.6 $1.13 $1.09 $1.00 Net income $74.3 $65.8 $74.9 $0.89 $0.64 attributable to BOKF shareholders ($M) 3Q15 4Q15 1Q16 2Q16 3Q16 Net income
Slide 15: Additional Details
Additional Details Annualized Quarterly Quarterly Year over Year ($B) Q3 2016 Growth Growth Growth Period-End Loans $16.5 0.4% 1.4% 7.1% Average Loans $16.4 1.1% 4.5% 8.3% Fiduciary Assets $41.2 3.3% 13.0% 9.0% Assets Under Management $75.3 3.2% 12.6% 12.4% or in Custody • Large end-of-quarter paydo
Slide 16: Loan Portfolio by Geography
Loan Portfolio by Geography Seq. YOY Sep 30 Jun 30 Loan Sep 30 Loan ($mil) 2016 2016 Growth 2015 Growth OK $6,014.3 $6,141.7 (2.1)% $5,782.5 4.0% TX 5,811.4 5,668.9 2.5% 5,426.4 7.1% NM 819.7 846.2 (3.1)% 812.7 0.9% AR 169.9 164.4 3.4% 171.3 (0.8)% CO 1,370.1 1,408.7 (2.7)% 1,340.4 2.2% AZ 1,477.4 1
Slide 17: Commercial Loan Growth
Commercial Loan Growth Seq. YOY Sep 30 Jun 30 Loan Sep 30 Loan ($mil) 2016 2016 Growth 2015 Growth Energy $2,520.8 $2818.7 (10.6)% $2,838.2 (11.2)% Services 2,936.6 2,830.9 4.5% 2,706.6 9.3% Healthcare 2,085.1 2,051.1 1.7% 1,741.7 19.7% Wholesale/retail 1,602.0 1,533.0 4.5% 1,461.9 9.6% Manufacturin
Slide 18: Commercial Real Estate
Commercial Real Estate Seq. YOY Sep 30 Jun 30 Loan Sep 30 Loan ($mil) 2016 2016 Growth 2015 Growth Residential Construction and Land Development $159.9 $157.6 1.5% $153.5 4.2% Retail 801.4 795.4 0.7% 769.4 4.1% Office 752.7 769.1 (2.1)% 626.2 20.2% Multifamily 873.8 787.2 11.0% 758.7 15.2% Industria
Slide 19: Net Interest Revenue and Net Interest Margin
Net Interest Revenue Net Interest Margin Q3 Q2 Q1 Q4 Q3 ($mil) 2016 2016 2016 2015 2015 Net Interest Revenue $187.8 $182.6 $182.6 $181.3 $178.6 Provision For Credit Losses $ 10.0 $ 20.0 $ 35.0 $ 22.5 $ 7.5 Net Interest Revenue After Provision $177.8 $162.6 $147.6 $158.8 $171.1 Net Interest Margin *
Slide 20: Fees and Commissions
Fees and Commissions Revenue, $mil Growth: Quarterly, Quarterly, Trailing 12 Q2 16 Sequential Year over Year Months Brokerage and Trading $38.0 (3.9)% 20.3% 7.9% Transaction Card 33.9 (2.9)% 4.4% 4.5% Fiduciary and Asset Management 34.1 (2.1)% 10.6% 5.1% Deposit Service Charges and Fees 23.7 4.6% 0.
Slide 21: Expenses
Expenses %Incr. %Incr. ($mil) Q3 2016 Q2 2016 Q3 2015 Seq. YOY Personnel Expense $143.2 $142.5 $129.1 0.5% 10.9% Other Operating Expense $118.9 $112.2 $ 95.6 6.0% 24.5% Total Operating Expense $262.1 $254.7 $224.6 2.9% 16.7% • Increase in personnel expense largely due to higher variable compensation
Slide 22: Key Credit Quality Metrics
Key Credit Quality Metrics $241.8 $247.2 $250.0 $237.0 Net annualized charge offs Nonaccrual Loans 1.10% to average loans $200.0 0.90% 0.70% $147.1 $159.6 $168.1 $143.0 $150.0 0.50% 0.30% 0.56% 0.15% $61.2 0.05% 0.08% $100.0 $89.3 0.10% 0.18% $17.8 -0.10% $50.0 -0.30% Note: 10-yr NCO average is 36 b
Slide 23: 2016 and Preliminary 2017 Assumptions
2016 and Preliminary 2017 Assumptions Q4 2016: Preliminary 2017: Mid-single-digit loan growth for the full year Mid-single-digit loan growth Stable to increasing net interest margin and net Stable net interest margin and net interest income interest income Loan loss provision $5-$15 millio
Slide 24: Thank you!
© BOK FINANCIAL Thank you! ~