BOK Financial Corporation · NASDAQ:BOKF
BOK Financial — BOK Financial Corp ET AL — Q4 2016 Earnings Presentation
19 slides from BOK Financial's earnings presentation, Jan 25, 2017
Slide 1: Fourth Quarter 2016 Earnings Conference Call
1 Fourth Quarter 2016 Earnings Conference Call January 25, 2017
Slide 2: Forward-Looking Statements
2 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-look
Slide 3: Steven G. Bradshaw, Chief Executive Officer
3 Steven G. Bradshaw Chief Executive Officer
Slide 4: Fourth Quarter Summary
4 Fourth Quarter Summary: • Noteworthy items impacting Q4 profitability: • Q4 post-election increase in interest rates: $22 million or 23 cents per share (includes net change in hedged MSR asset and change in fair value of trading portfolio.) • Q4 expenses associated with October RIF: $5.0 million o
Slide 5: Additional Details
5 Additional Details ($B) Q4 2016 Quarterly Growth Annualized Quarterly Growth Year over Year Growth Period-End Loans $17.0 3.2% 12.8% 6.6% Mobank Loans $0.5 Period –End Loans, excluding Mobank $16.5 0.2% 1.0% 3.5% Fiduciary Assets $41.8 1.4% 5.4% 9.0% Assets Under Management or in Custody $75.4 0.2
Slide 6: Steven Nell, Chief Financial Officer: Financial Overview
6 Steven Nell Chief Financial Officer Financial Overview
Slide 7: Net Interest Revenue and Net Interest Margin
7 Net Interest Revenue Net Interest Margin ($mil) Q4 2016 Q3 2016 Q2 2016 Q1 2016 Q4 2015 Net Interest Revenue $194.2 $187.8 $182.6 $182.6 $181.3 Provision For Credit Losses $ 0 $ 10.0 $ 20.0 $ 35.0 $ 22.5 Net Interest Revenue After Provision $194.2 $177.8 $162.6 $147.6 $158.8 Net Interest Margin *
Slide 8: Fees and Commissions Revenue
8 Fees and Commissions Revenue, $mil Change: Q4 16 Quarterly, Sequential Quarterly, Year over Year Trailing 12 Months Brokerage and Trading $28.5 (25.0)% (5.8)% 6.8% Transaction Card 34.5 1.7% 6.8% 5.5% Fiduciary and Asset Management 34.5 1.4% 10.8% 7.4% Deposit Service Charges and Fees 23.4 (1.3)%
Slide 9: Expenses
9 Expenses ($mil) Q4 2016 Q3 2016 Q4 2015 %Incr. Seq. %Incr. YOY Personnel Expense * $141.1 $139.2 $131.1 1.4% 7.6% Other Operating Expense $124.4 $118.9 $ 99.3 4.7% 25.3% Total Operating Expense $265.5 $258.1 $230.4 2.9% 15.2% • Unusual items in Q4 include Mobank closing costs ($4.7 million), sever
Slide 10: Other Balance Sheet Statistics
10 Other Balance Sheet Statistics Dec 31 2016 Sep 30 2016 Dec 31 2015 Period End AFS Securities $8.7 billion $8.9 billion $9.0 billion Average AFS securities $8.8 billion $8.9 billion $9.0 billion Period End Deposits $22.7 billion $21.1 billion $21.1 billion Average Deposits $21.7 billion $20.8 bill
Slide 11: 2017 Assumptions
11 2017 Assumptions Mid-single-digit loan growth for the full year Stable to increasing net interest margin Low single digit net interest income growth Loan loss provision of $20 - $30 million for the year Low-single-digit revenue growth from fee-generating businesses on a trailing twelve
Slide 12: Stacy Kymes, EVP-Corporate Banking
12 Stacy Kymes EVP-Corporate Banking
Slide 13: Loan Portfolio by Geography
13 Loan Portfolio by Geography ($mil) Dec 31 2016 Sep 30 2016 Seq. Loan Growth Dec 31 2015 YOY Loan Growth OK $5,765.7 $6,014.3 (4.1)% $6,187.0 (6.8)% TX 5,978.2 5,811.4 2.9% 5,535.3 8.0% NM 803.4 819.8 (2.0)% 821.3 (2.2)% AR 173.7 169.9 2.2% 170.7 1.8% CO 1,393.5 1,370.1 1.7% 1,288.2 8.2% AZ 1,522.
Slide 14: Commercial Loan Growth
14 Commercial Loan Growth ($mil) Dec 31 2016 Sep 30 2016 Seq. Loan Growth Dec 31 2015 YOY Loan Growth Energy $2,497.9 $2,520.8 (0.9)% $3,097.3 (19.4)% Services 3,109.0 2,936.6 5.9% 2,784.3 11.7% Healthcare 2,201.9 2,085.1 5.6% 1,883.4 16.9% Wholesale/retail 1,576.8 1,602.0 (1.6)% 1,422.1 10.9% Manuf
Slide 15: Energy Loans
15 Oil & Gas Producers 79% Midstream & Other 13% Energy Services 8% Energy At 12/31/16: $2.7 billion commitments and $2.5 billion O/S ~60/40 split between oil and gas E&P line utilization 50%, compared to 54% at 9/30/16 Q4 energy net recoveries of $644,000 Cumulative chargeoffs in the 2014
Slide 16: Commercial Real Estate
16 Commercial Real Estate ($mil) Dec 31 2016 Sep 30 2016 Seq. Loan Growth Dec 31 2015 YOY Loan Growth Retail $761.9 $801.4 (4.9)% $796.5 (4.3)% Multifamily 903.3 873.8 3.4% 751.1 20.3% Office 798.9 752.7 6.1% 637.7 25.3% Industrial 871.7 838.0 4.0% 563.2 54.8% Residential Construction and Land Devel
Slide 17: Key Credit Quality Metrics
17 Key Credit Quality Metrics $85.9 $82.2 $79.1 $94.0 $98.5 $61.2 $159.6 $168.1 $143.0 $132.5 $147.1 $241.8 $247.2 $237.0 $231.0 $- $50.0 $100.0 $150.0 $200.0 $250.0 4Q15 1Q16 2Q16 3Q16 4Q16 Other Non-Accruals Energy Non-Accruals 1.43% 1.50% 1.54% 1.56% 1.52% 1.35% 1.40% 1.45% 1.50% 1.55% 1.60% 4Q15
Slide 18: Closing Remarks
18 Steven G. Bradshaw Chief Executive Officer Closing Remarks
Slide 19: Question and Answer Session
19 Question and Answer Session
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