Bok Financial Corporation · NASDAQ:BOKF
Bok Financial — Investor Presentation (2021)
23 slides from Bok Financial's investor presentation, 2021
Slide 1: Investor Presentation Q3 2021
INVESTOR PRESENTATION Q3 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 – 119 full service locations across 8 states – Seasoned management team Full Service Markets – Proven ability to deliver organic growth Additional Wealth Markets – Consistent execution and strategy – Long-
Slide 4: Managing for long-term value quote
“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% Build a recession-ready bank that will outperform peers across the economic cycle. 5
Slide 6: Diverse Revenue Sources
Diverse Revenue Sources WELL DIVERSIFIED No single component of fee income accounts for more than 10% of total revenue. 40% fee income is a differentiator compared to 4% Other other midsized regional banks. Revenue 10% Brokerage ADDITIONAL FEE INCOME CATEGORIES & Trading 59% Net Interest 5% Brokerag
Slide 7: Strong Balance Sheet
Strong Balance Sheet METRIC 9/30/2021 CREDIT RATINGS BOKF, NA BOK Financial Corp. Period End Loans $20.3 billion S&P A- (OS) BBB+ (OS) Period End Deposits $38.5 billion Moody’s A3 (OS) A3 (OS) Loan to Deposit Ratio 52.8% Fitch Ratings A (OS) A (OS) CAPITAL RATIOS Regulatory minimum 9/30/2021 CAPITAL
Slide 8: Strong Core Deposit Franchise
Strong Core Deposit Franchise Deposit DEPOSIT MIX & COST ($BILLION) GEOGRAPHIC DEPOSIT MIX MSA Branches Share Tulsa, OK 21 37% Demand Interest-bearing transaction Dallas/Fort Worth/Metro, TX 20 1% Savings Time $40,000 5% - CO - Oklahoma City, OK 16 9% 2% 12% - KS/MO - Albuquerque, NM 13 10% $35,000
Slide 9: Diversified Loan Portfolio
Diversified Loan Portfolio DISCIPLINED CONCENTRATION MANAGEMENT DIVERSIFIED BY SECTOR & GEOGRAPHY Loans to Individuals 17% Commercial Real Estate TX 20% 33% Services 16% Other 24% LOAN PPP SEGMENTATION COLLATERAL 3% as of 9/30/2021 NM LOCATION 4% as of 9/30/2021 KS/MO General 5% Business Healthcare
Slide 10: Energy Banking
Energy Banking Over 100 Year History in Energy Lending PORTFOLIO COMPOSITION AT 9/30/2021 and a Playbook That Works Midstream – Focus on first lien, senior secured E&P lending – the “sweet spot” in & Other energy lending. Oil & Gas 22% – Internal staff of 16 petroleum engineers and engineering techs
Slide 11: Healthcare Banking
Healthcare Banking Outstandings Totaled $3.3 Billion Across PORTFOLIO COMPOSITION AT 9/30/2021 31 States at September 30, 2021 Hospital Healthcare Portfolio Characteristics: 11% Senior Housing Service – Favorable LIBOR spreads Medical 78% – Above-average loan utilization rates 11% – Predominately BO
Slide 12: Commercial Real Estate
Commercial Real Estate $4.1 Billion Outstanding and $1.7 Billion Unfunded PORTFOLIO COMPOSITION AT 9/30/2021 Commitments at September 30, 2021 Residential – BOKF allocates 175% of Tier 1 capital plus reserves to CRE. 3% Industrial 22% – Further controls and limitations by product type and Office geo
Slide 13: Wealth Management
Wealth Management Primary Lines of Business WEALTH MANAGEMENT REVENUE – Private Wealth – Brokerage & Trading Services – Institutional Wealth TOTAL REVENUE ($Million) – Cavanal Hill Investment Management Fee Income Net Interest Revenue – Clients include high net worth individuals, corporations, pensi
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 – More than 65% of clients are outside of Oklahoma (Million) – Clients
Slide 15: Mortgage Banking
Mortgage Banking MORTGAGE BANKING REVENUE SERVICING, ORIGINATING & MARKETING REVENUE ($Million) Servicing Originating & Marketing Top 50 U.S. Mortgage Originator Sept. 2021 TTM 2020 – Annual origination volume in 2020 was $4.0 billion 2019 – YTD 2021 originations are $2.1 billion – Servicing an aver
Slide 16: Financial Results Q3 2021
FINANCIAL RESULTS Q3 2021 16
Slide 17: Q3 Summary
Q3 Summary NET INCOME Noteworthy Items Impacting Profitability • Strong performance from our fee-based businesses, with another Attributable to Shareholders Per Share (Diluted) record earnings quarter from our Wealth Management team • Net interest income continues to be stable $188.3 • $31 million g
Slide 18: Loan Portfolio
Loan Portfolio SEQ. LOAN YOY LOAN ($Million) Sept. 30, 2021 June 30, 2021 Sept. 30, 2020 LOANS OVERVIEW GROWTH GROWTH • Energy balances declined at a similar pace Energy $2,814.1 $3,011.3 $3,717.1 (6.6)% (24.3)% as previous periods, with positive trends in the number of new deals booked Services 3,3
Slide 19: Yields, Rate & Margin
Yields, Rate & Margin ($Million) Q3 2021 Q2 2021 Q1 2021 Q4 2020 Q3 2020 Net Interest Revenue $280.2 $280.3 $280.4 $297.2 $271.8 NET INTEREST REVENUE Net Interest Margin 2.66% 2.60% 2.62% 2.72% 2.81% • Net interest revenue largely unchanged over the past 3 quarters, with PPP fee recognition averagin
Slide 20: Fees & Commissions
Fees & Commissions BROKERAGE & TRADING REVENUE GROWTH • Product focus shift and client base expansion in Quarterly, Year over Institutional Trading; strong Energy derivatives, solid ($Million) Q3 2021 Quarterly, Sequential Trailing 12 Months Year Investment Banking activity Brokerage & Trading $47.9
Slide 21: Expenses
Expenses EXPENSES OVERVIEW %Incr. %Incr. ($Million) Q3 2021 Q2 2021 Q3 2020 • Quarterly personnel expense increased Seq. YOY slightly due to increased incentive compensation expense related to strong Personnel expense $175.9 $172.0 $179.9 2.2% (2.2)% revenue growth; offset by seasonal reductions in
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% • Total non-accrual loans down $37.7 million 0.41% 0.40% 0.31% 0.28% 0.30% 0.16% • A decrease of $24.8 million in Energy non-accruals 0.20% —% • Potential problem loans (substandard, acc
Slide 23: © BOK FINANCIAL CORPORATION
© BOK FINANCIAL CORPORATION