Bok Financial Corporation · NASDAQ:BOKF
Bok Financial — Q4 2017 Earnings Presentation
18 slides from Bok Financial's earnings presentation, Jan 24, 2018
Slide 1: Fourth Quarter 2017 Earnings Conference Call
Fourth Quarter 2017 Earnings Conference Call January 24, 2018 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: Fourth Quarter and FY2017 Summary
Fourth Quarter and FY2017 Summary: Net Income - Annual Net Income - Quarterly $334.6 $85.6 $288.6 $5.11 $72.5 $232.7 $4.21 $50.0 $3.53 $1.31 $1.11 $0.76 2015 2016 2017 4Q16 3Q17 4Q17 Net income attributable to shareholders Net income per share - diluted Net income attributable to shareholders Net in
Slide 5: Loan Growth
Loan Growth Annualized Quarterly Quarterly Year over Year ($B) Q4 2017 Growth Growth Growth Period-End Loans $17.2 (0.3%) (1.2%) 1.0% Average Loans $17.2 (0.4%) (1.8%) 2.7% • Low single digit year-over-year loan growth despite multiple headwinds – CRE paydowns due to flattening of yield curve and un
Slide 6: Scott Grauer, EVP-Wealth Management
Scott Grauer EVP-Wealth Management 6
Slide 7: Wealth Management Preliminary 2017 Results
Wealth Management Preliminary 2017 Results Year over Year FY 2017 Growth Total Revenue ($M) $384.8 11.4% Net Direct Contribution ($M) (1) $138.9 46.1% Total Loans ($B) $1.3 16.0% Total Deposits ($B) $5.5 13.3% Fiduciary Assets ($B) $48.8 15.1% Assets Under Management $81.8 8.5% or in Custody ($B) •
Slide 8: Steven Nell, Chief Financial Officer: Financial Overview
Steven Nell Chief Financial Officer Financial Overview 8
Slide 9: Net Interest Revenue and Net Interest Margin
Net Interest Revenue Net Interest Margin Q4 Q3 Q2 Q1 Q4 ($mil) 2017 2017 2017 2017 2016 Net Interest Revenue $216.9 $218.5 $205.2 $201.2 $194.2 Provision For Credit Losses ($7.0) $ -- $ -- $ -- $ -- Net Interest Revenue After Provision $223.9 $218.5 $205.2 $201.2 $194.2 Net Interest Margin 2.97% 3.0
Slide 10: Fees and Commissions
Fees and Commissions Revenue, $mil Change: Quarterly, Quarterly, Q4 17 Sequential Year over Year 12 Months Brokerage and Trading $33.0 (0.4%) 15.9% (4.9%) Transaction Card 29.5 (10.1%) (0.5%) 3.0% Fiduciary and Asset Management 41.8 2.7% 20.9% 20.2% Deposit Service Charges and Fees 27.7 (1.8%) (1.8%
Slide 11: Expenses
Expenses %Incr. %Incr. ($mil) Q4 2017 Q3 2017 Q4 2016 Seq. YOY Personnel Expense $145.3 $147.9 $141.1 (1.7%) 3.0% Other Operating Expense $118.7 $118.0 $124.4 0.5% (4.6%) Total Operating Expense $264.0 $265.9 $265.5 (0.7%) (0.7%) 12 mos. 12 Mos %Incr. ($mil) 2017 2016 YOY Personnel Expense $573.4 $5
Slide 12: Forecast and Assumptions
Forecast and Assumptions 2018 Expectations Mid-single-digit loan growth Available-for-sale securities flat to slightly down Modest growth in net interest margin Assuming two Fed rate hikes (March and September) with assumed active management and control of deposit pricing Mid-single-digit
Slide 13: Stacy Kymes, EVP-Corporate Banking
Stacy Kymes EVP-Corporate Banking 13
Slide 14: Loan Portfolio
Loan Portfolio Seq. YOY Dec 31 Sept. 30 Dec 31 Loan Loan ($mil) 2017 2017 2016 Growth Growth Energy $2,930.2 $2,868.0 $2,497.9 2.2% 17.3% Services 2,986.9 2,967.5 3,109.0 0.7% 3.9% Healthcare 2,314.8 2,239.5 2,201.9 3.4% 5.1% Wholesale/retail 1,471.3 1,658.1 1,576.8 (11.3%) (6.7%) Manufacturing 496.
Slide 15: Key Credit Quality Metrics
Key Credit Quality Metrics 1.50% $250.0 $245.4 $231.0 Net charge offs (annualized) $225.6 to average loans $207.6 1.00% $200.0 $187.9 $98.5 $121.4 $114.9 $97.2 $150.0 0.50% $95.6 0.27% -0.03% -0.02% $100.0 0.00% 0.08% $132.5 $124.0 0.04% $50.0 $110.4 $110.7 $92.3 -0.50% 4Q16 1Q17 2Q17 3Q17 4Q17 $- 4
Slide 16: Energy Lending Update
Energy Lending Update Oil & Gas Producers 85% Midstream & Other Energy 4% 11% Services 20 year average gross loss rate on E&P loans (gross At 12/31/17: chargeoffs as a percent of period average loans) is 16 bps $2.9 billion unfunded commitments $2.9 billion outstanding E&P line utilization 53%
Slide 17: Closing Remarks
Steven G. Bradshaw Chief Executive Officer Closing Remarks 17
Slide 18: Question and Answer Session
Question and Answer Session 18