Bok Financial Corporation · NASDAQ:BOKF
Bok Financial — Q2 2017 Earnings Presentation
20 slides from Bok Financial's earnings presentation, Jul 26, 2017
Slide 1: Second Quarter 2017 Earnings Conference Call
Second Quarter 2017 Earnings Conference Call July 26, 2017 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-lookin
Slide 3: Steven G. Bradshaw, Chief Executive Officer
Steven G. Bradshaw Chief Executive Officer 3
Slide 4: Second Quarter Summary
Second Quarter Summary: Net Income $88.4 $88.1 Q2 2017 Q1 2017 Q2 2016 $74.3 Diluted EPS $1.35 $1.35 $1.00 $65.8 Net income before $136.6 $126.8 $96.8 $50.0 taxes ($M) $1.35 $1.35 $1.00 $1.13 Net income $88.1 $88.4 $65.8 $0.76 attributable to BOKF shareholders ($M) 2Q16 3Q16 4Q16 1Q17 Q217 Net incom
Slide 5: Additional Details
Additional Details Annualized Quarterly Quarterly Year over Year ($B) Q2 2017 Growth Growth Growth Period-End Loans $17.2 1.1% 4.5% 4.7% Average Loans $17.1 -% -% 5.3% Fiduciary Assets $44.5 0.2% 0.8% 11.3% Assets Under Management $77.8 0.5% 2.0% 6.6% or in Custody • Mid single digit annualized loan
Slide 6: Steven Nell, Chief Financial Officer: Financial Overview
Steven Nell Chief Financial Officer Financial Overview 6
Slide 7: Net Interest Revenue and Net Interest Margin
Net Interest Revenue Net Interest Margin Q2 Q1 Q4 Q3 Q2 ($mil) 2017 2017 2016 2016 2016 Net Interest Revenue $205.2 $201.2 $194.2 $187.8 $182.6 Provision For Credit Losses $ -- $ -- $ -- $ 10.0 $ 20.0 Net Interest Revenue After Provision $205.2 $201.2 $194.2 $177.8 $162.6 Net Interest Margin 2.89% 2
Slide 8: Fees and Commissions
Fees and Commissions Revenue, $mil Change: Quarterly, Quarterly, Trailing 12 Q2 17 Sequential Year over Year Months Brokerage and Trading $31.8 (5.5%) (19.6%) (1.4%) Transaction Card 35.3 9.9% 1.0% 2.8% Fiduciary and Asset Management 41.8 8.2% 20.1% 15.7% Deposit Service Charges and Fees 23.4 1.4% 3
Slide 9: Expenses
Expenses %Incr. %Incr. ($mil) Q2 2017 Q1 2017 Q2 2016 Seq. YOY Personnel Expense $143.7 $136.4 $139.2 5.4% 3.3% Other Operating Expense $107.1 $108.3 $112.2 (1.1)% (4.5)% Total Operating Expense $250.9 $244.7 $251.4 2.5% (0.2)% Personnel Expense: • Increase due to full quarter’s impact of March meri
Slide 10: Other Balance Sheet Statistics
Other Balance Sheet Statistics June 30 Mar 31 June 30 2017 2017 2016 Period End AFS Securities $8.3 billion $8.4 billion $8.8 billion Average AFS securities $8.4 billion $8.6 billion $8.9 billion Period End Deposits $22.3 billion $22.6 billion $20.8 billion Average Deposits $22.1 billion $22.4 billi
Slide 11: 2017 Assumptions
2017 Assumptions Mid-single-digit loan growth for the full year Available-for-sale securities portfolio expected to be flat for balance of the year (*) Stable to increasing net interest margin and modest sequential growth in net interest income expected in Q3 and Q4 Loan loss provision of $0
Slide 12: Stacy Kymes, EVP-Corporate Banking
Stacy Kymes EVP-Corporate Banking 12
Slide 13: Loan Portfolio by Type and by Market
Loan Portfolio by Type: Loan Portfolio by Market: Seq. Seq. June 30 Mar 31 Loan June 30 Mar 31 Loan ($mil) 2017 2017 Growth ($mil) 2017 2017 Growth Commercial and OK $5,753.9 $5,595.3 2.8% $10,638.0 $10,327.1 3.0% Industrial Commercial TX 6,286.1 6,145.0 2.3% 3,688.6 3,871.1 (4.7%) Real Estate NM 81
Slide 14: Commercial & Industrial and Commercial Real Estate
Commercial & Industrial: Commercial Real Estate Seq. Seq. June 30 Mar 31 Loan June 30 Mar 31 Loan ($mil) 2017 2017 Growth ($mil) 2017 2017 Growth Energy $2,847.2 $2,537.1 12.2% Retail $722.8 $745.0 (3.0%) Services 2,958.8 3,013.4 (1.8%) Multifamily 952.4 923.0 3.2% Healthcare 2,221.5 2,265.6 (1.9%)
Slide 15: Key Credit Quality Metrics
Key Credit Quality Metrics $247.2 $245.4 $250.0 $237.0 $231.0 1.50% $207.6 Net charge offs (annualized) 79.1 to average loans $200.0 94.0 121.5 1.00% 98.5 97.2 $150.0 0.50% 0.18% 0.15% $100.0 0.04% $168.1 0.00% $143.0 $132.5 $124.0 -0.02% $50.0 $110.4 -0.03% -0.50% 2Q16 3Q16 4Q16 1Q17 2Q17 $- 2Q16 3
Slide 16: Energy Lending Update
Energy Lending Update 6% Oil & Gas 11% Producers Midstream & Other 83% Energy Services At 6/30/17: $5.7 billion commitments $2.8 billion outstanding E&P line utilization 53% 20 year average gross loss rate on E&P loans Q2 energy net chargeoffs $228k (gross chargeoffs as a percent of period
Slide 17: Retail CRE Update
Retail CRE Update $723 million outstanding at 6/30/17 Only $2 million criticized loans – no change from 3/31/17 60% of portfolio considered service based and less susceptible to online competition Diversified portfolio: Top ten “goods based” retail CRE exposures total $192 million. Goods bas
Slide 18: Retail C&I Update
Retail C&I Update Total Retail/Wholesale category outstandings at 6/30: $1,543.7 million Retailers total $652.6 million or 42% of this category 65% of retailer outstandings are service-based retailers (61% of commitments) Criticized loans total $8.6 million (1.32%) Retail C&I portfolio by
Slide 19: Closing Remarks
Steven G. Bradshaw Chief Executive Officer Closing Remarks 19
Slide 20: Question and Answer Session
Question and Answer Session 20