Bok Financial Corporation · NASDAQ:BOKF
Bok Financial — Q4 2018 Earnings Presentation
16 slides from Bok Financial's earnings presentation, Jan 30, 2019
Slide 1: Fourth Quarter 2018 Earnings Conference Call
Fourth Quarter 2018 Earnings Conference Call January 30, 2019 1
Slide 2: Legal Disclaimers
Legal Disclaimers 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 constit
Slide 3: Steven G. Bradshaw, Chief Executive Officer
Steven G. Bradshaw Chief Executive Officer 3
Slide 4: Fourth Quarter and FY2018 Summary
Fourth Quarter and FY2018 Summary: Noteworthy items impacting FY 2018 Noteworthy items impacting Q4 2018 profitability: profitability: • Strong growth in net interest margin and • CoBiz integration expense of $14.5 million net interest income realized this quarter • Outstanding loan growth • $9.0 mi
Slide 5: Additional Details
Additional Details Quarterly Year over $billions Q4 2018 Growth Year Growth Period-End Loans $21.7 18.0% 26.3% Average Loans $21.6 18.5% 25.6% Period-End Deposits $25.3 16.8% 14.5% Average Deposits $25.1 14.4% 13.2% Fiduciary Assets $44.8 (1.6)% (8.0)% Assets Under Management or in Custody $76.3 (1.
Slide 6: Steven Nell, Chief Financial Officer: Financial Overview
Steven Nell Chief Financial Officer Financial Overview 6
Slide 7: Net Interest Revenue and Margin
Net Interest Revenue and Margin ($millions) Q4 2018 Q3 2018 Q2 2018 Q1 2018 Q4 2017 Net interest revenue $285.7 $240.9 $238.6 $219.7 $216.9 Provision for credit losses $9.0 $4.0 $— $(5.0) $(7.0) NIR after provision $276.7 $236.9 $238.6 $224.7 $223.9 Net interest margin 3.40% 3.21% 3.17% 2.99% 2.97%
Slide 8: Fees and Commissions
Fees and Commissions Revenue, $mil Growth: Quarterly, Quarterly, Year Trailing 12 Q4 2018 Sequential over Year Months Brokerage and Trading $28.1 21.7% (15.0)% (17.7)% Transaction Card 20.7 (3.4)% 3.2% 3.6% Fiduciary and Asset Management 43.7 (24.1)% 4.5% 13.4% Deposit Service Charges and Fees 29.4
Slide 9: Expenses
Expenses %Incr. %Incr. ($mil) Q4 2018 Q3 2018 Q4 2017 Seq. YOY Personnel expense $160.7 $143.5 $145.3 12.0% 10.6% Other operating expense $123.9 $109.1 $109.2 13.6% 13.5% Total operating expense $284.6 $252.6 $254.5 12.7% 11.9% Efficiency Ratio 63.24% 61.59% 66.07% • CoBiz acquisition and integratio
Slide 10: Forecast and Assumptions
Forecast and Assumptions • Mid single digit loan growth for the consolidated BOKF and COBZ entity. • Provision levels moving forward will be influenced by loan growth, but are expected to be at similar dollar levels to the past couple of quarters. • We expect two rate hikes in 2019 which will result
Slide 11: Stacy Kymes, EVP-Corporate Banking
Stacy Kymes EVP-Corporate Banking 11
Slide 12: Loan Portfolio
Loan Portfolio Seq. YOY ($mil) Dec 31, Sep 30, Dec 31, Loan Loan Dec 31, 2018 Ex 2018 Ex 2017 Ex Growth Ex Growth Ex 2018 COBZ COBZ COBZ COBZ COBZ Energy $3,590.3 $3,570.2 $3,294.9 $2,930.2 8.4% 21.8% Services 3,252.1 2,647.8 2,597.7 2,522.0 1.9% 5.0% Healthcare 2,733.5 2,417.8 2,370.5 2,243.5 2.0%
Slide 13: Marc Maun, EVP-Chief Credit Officer
Marc Maun EVP-Chief Credit Officer 13
Slide 14: Key Credit Quality Metrics
Key Credit Quality Metrics ▪ No material signs of stress in any loan portfolio. ▪ Nonaccrual loans down 1.4 percent sequentially on a legacy BOKF basis. ▪ Appropriately reserved with a combined allowance of 0.97 percent with CoBiz portfolio included. Reserve of legacy portfolio is 1.12 percent. ▪ Ne
Slide 15: Closing Remarks
Steven G. Bradshaw Chief Executive Officer Closing Remarks 15
Slide 16: Question and Answer Session
Question and Answer Session 16