Bok Financial Corporation · NASDAQ:BOKF
Bok Financial — BOK Financial Corp ET AL — Investor Presentation (April 2005)
31 slides from Bok Financial's investor presentation, Apr 26, 2005
Slide 1: The BOK Financial Corporation Story
Exhibit 99.2 The BOK Financial Corporation Story
Slide 2: Forward-Looking Statement
Forward-Looking Statement 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, and the economy generally. Words such as “anticipate
Slide 3: Agenda
Agenda 11:00 – 12:00 Annual Meeting 12:00 – 1:30 Lunch – Jim Huntzinger (ALCO) 1:30 - 2:00 Chuck Cotter (Credit Quality) 2:00 – 2:30 Jeff Pickryl (Regional Banks) 2:30 – 3:15 George Kaiser and Stan Lybarger 3:15 – 3:30 Break 3:30 – 4:00 Dan Ellinor (OK Com’l and Com’l Fee Businesses) 4:00 – 4:30 Ste
Slide 4: Investment Portfolio Management
Investment Portfolio Management Jim Huntzinger Senior Vice President Chief Investment Officer
Slide 5: Investment Portfolio Strategy
Investment Portfolio Strategy Portfolio Strategy BOKF uses the securities portfolio to generate earnings and manage overall interest rate risk. The current portfolio strategy has been consistently applied and frequently reviewed and approved since first implemented in 1993. The strategy centers arou
Slide 6: Securities Portfolio
Securities Portfolio $460,000 $450,000 $440,000 $430,000 $420,000 $410,000 Asset sensitivity increases and NIR decreases. Peer Group Portfolio is 28% of total assets. This reduces the BOKF portfolio by $1.2B. Holding risk constant shifts new portfolio to 4-year average life vs. 3 years. Down 100 Fla
Slide 7: Credit Quality
Credit Quality Chuck Cotter Executive Vice President Chief Credit Officer
Slide 8: Credit Quality
Credit Quality NCO’s / Average Loans 0.35% 0.33% 0.30% 0.28% 5 Year Average Reserve for Credit Losses/Loans 1.8% 1.5% 1.3% 1.0% 2000 2001 2002 2003 2004 BOKF Peer Median Source: SNL Financial Good historical charge-off levels Conservative reserve levels Strong credit staff and loan review team Recen
Slide 9: Regional Banks
Regional Banks Jeff Pickryl Senior Executive Vice President
Slide 10: Regional Bank Growth Strategy
Regional Bank Growth Strategy Recent trend in regional banking has been to increase the brick-and-mortar branch network to gain “retail” market share. Our strategy is to focus primarily on gaining commercial banking market share by having an adequate branch network, while investing in recruitment of
Slide 11: Regional Expansion
Regional Expansion Logical “step-outs” from Oklahoma Texas Seven bank acquisitions in Dallas and Houston since 1997 Built de-novo branches in Katy, Plano, Fort Worth – Coppell to open in late 2005 Eight supermarket branches acquired or built, primarily Kroger Continuous recruitment of top commercial
Slide 12: Loan Growth
Loan Growth Expansion and upgrade of commercial lending talent is an ongoing process. Year end loan balances ($Millions) $2,000 $1,500 $1,000 $500 $0 2001 2002 2003 2004 TEXAS NEW MEXICO COLORADO $1,857 $1,619 $1,747 $1,378 $524 $551 $656 $449 $366 $362 $30 $95
Slide 13: Operating Revenue
Operating Revenue Expansion of product lines in regional markets is key to our strategy of expanding sources of revenue. Annual revenue from non-credit sources ($Millions) $30.0 $25.0 $20.0 $15.0 $10.0 $5.0 $0.0 $25.4 $21.6 $17.7 $14.6 $10.8 $8.3 $8.1 $0.0 $0.0 2002 2003 2004 TEXAS NEW MEXICO COLORA
Slide 14: Operating Efficiency
Operating Efficiency Expansion of staff is centered around revenue generation. Ratio of Personnel Expense to Total Revenue * Colorado had an LPO only until 09/10/2003 50% 40% 30% 20% 10% 0% 43% 41% 35% 32% 32% 30% 25% 24% 22% * * 2002 2003 2004 TEXAS NEW MEXICO COLORADO
Slide 15: Net Income
Net Income Dollars (000s) BOKF administers an acute budgeting and management program that focuses on continuous improvement in profitability. $45,000 $40,000 $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $0 $40,256 $27,493 $25,822 $14,074 $10,364 $10,844 $1,688 $0 $0 2002 2003 2004 TEXAS NE
Slide 16: General Discussion
General Discussion George Kaiser Chairman BOK Financial Corporation Stan Lybarger President and CEO
Slide 17: Oklahoma Commercial and Fee Businesses
Oklahoma Commercial and Fee Businesses Dan Ellinor Senior Executive Vice President
Slide 18: International
International Revenue $Millions CAGR 22% $12.0 $10.0 $11.4 $8.0 $8.9 $6.0 $7.5 $4.0 $6.2 $5.1 $2.0 $4.2 $0.0 1999 2000 2001 2002 2003 2004 Develop new products and services to fill broader array of customer needs – including On-Line FX system (Q2 ‘05) and LC issuance system (Q1 ‘05). Further exploit
Slide 19: BOk Commercial Lending
BOk Commercial Lending Average Loans and Deposits $ in mil 4,000.0 Avg. Deposits Avg. Loans 3,500.0 3,000.0 2,500.0 2,000.0 1,500.0 1,000.0 500.0 0.0 2000 2001 2002 2003 2004 2004 Volumes by Segment Small Bus Lending, $717.4 Other, $217.5 Middle Market, $2,820.8 Increase market share in OKC, Tulsa,
Slide 20: TransFund
TransFund Vol Transaction Volume & Revenue (in mil) Rev Trans Vol Revenue 160.0 $70.0 140.0 120.0 $60.0 100.0 $50.0 80.0 $40.0 60.0 $30.0 40.0 20.0 $20.0 ‘99 ‘00 ‘01 ‘02 ‘03 ‘04 Revenue growth CAGR 14% over the last five years – Continued growth of non-Oklahoma revenue Three year average return on e
Slide 21: Treasury Services
Treasury Services Charges (millions) Activity Charges $48.0 $46.0 $44.0 $42.0 $40.0 $38.0 2000 2001 2002 2003 2004 Invest heavily in new product development during 2005— 2006 Imaging, information reporting, lockbox, and ARC Exploit strong service delivery channel through CSC platform Develop more ro
Slide 22: Consumer Banking and Wealth Management
Consumer Banking and Wealth Management Steve Bradshaw Senior Executive Vice President
Slide 23: Consumer Banking
Consumer Banking 140 branches, 92 traditional and 48 in-store in 6 states Primary focus: Fee income lift Core deposit growth Perfect Banking sales & service mission Strategic branch expansion
Slide 24: Core Deposits and Fee Income
Core Deposits and Fee Income Dollars (OOO’s) CORE DEPOSITS FEE INCOME Free checking 1/1/01, ODP 4/1/02 $3,500 $3,000 $2,500 $2,000 $1,500 $1,000 $500 $0 11% CAGR total Core Deposits, 24% fee income $90 $80 $70 $60 $50 $40 $30 $20 $10 $0 2000 2001 2002 2003 2004 Core Dep w /o Houston/Denver Fee Incom
Slide 25: Sales Point Growth
Sales Point Growth Perfect Banking introduced Oct 1, 2001. CAGR ~ 29% 700 600 500 400 300 200 100 0 2000 2001 2002 2003 2004 (000’s)
Slide 26: Wealth Management
Wealth Management $25 billion in assets, $9 billion managed Primary focus: Nationally competitive products Extraordinary client experience Team investment delivery Open architecture & improved equity performance Trusted advisor sales & service mission
Slide 27: BOKF Investment Management Performance Highlights
BOKF Investment Management Performance Highlights AP Short-Term Income Fund: The #1 Short Investment Grade Debt fund for 4 of the last 7 years*. (Achieved highest average annual total return for 5 year periods ending December ‘98, ‘01, ‘02, ‘03) AP Bond Fund: Top quartile performance for the 10 year
Slide 28: Wealth Management New Business Revenue
Wealth Management — New Business Annualized Revenue CAGR ~ 13% ($ millions) $2.50 $2.00 $1.50 $1.00 $0.50 $0.00 2000 2001 2002 2003 2004
Slide 29: BOSC
BOSC Full service securities firm Retail Institutional Investment Banking Risk Management 90 brokers in 10 states Distribution-focused Revenue per million dollars of retail deposits 4 times industry average BOK Financial Corporation
Slide 30: BOSC Fee Income and Licensed Reps
BOSC — Fee Income and Licensed Reps $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $0 20% CAGR in Revenues, 10% CAGR in Reps REVENUES ($000’S) LICENSED REPS 100 90 80 70 60 50 40 30 20 10 0 2000 2001 2002 2003 2004 Fee Income # of Licensed Brokers
Slide 31: The BOK Financial Corporation Story
The BOK Financial Corporation Story
BOK Financial Corp ET AL — Investor Presentation (April 2005) on 6ix