Bok Financial Corporation · NASDAQ:BOKF
Bok Financial — Q3 2022 Earnings Presentation
19 slides from Bok Financial's earnings presentation, Oct 26, 2022
Slide 1: Q3 Earnings Conference Call
Q3 Earnings Conference Call October 26, 2022
Slide 2: Legal Disclaimers
Legal Disclaimers 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 expected or potential impact of
Slide 3: Stacy Kymes, Chief Executive Officer
Stacy Kymes Chief Executive Officer 3
Slide 4: Q3 summary
Q3 summary Noteworthy items impacting profitability • Margin expansion as loans reprice in response to Quarterly earnings trend increases in short-term rates; loan growth continued to NET INCOME accelerate, both in outstanding balances & unfunded commitments Attributable to shareholders Per share (d
Slide 5: Additional details
Additional details Quarterly Quarterly ($Billion) Q3 2022 Sequential YOY ◦ Core loan balances grew $522 million; Period-End Loans* $21.8 2.5% 9.9% unfunded commitments grew $1.1 billion Average Loans* $21.6 2.9% 7.6% ◦ Average deposits declined $1.5 billion Period-End Deposits $36.4 (5.7)% (5.5)% in
Slide 6: Marc Maun
Marc Maun EVP, Regional Banking Executive 6
Slide 7: Loan portfolio
Loan portfolio Sep. 30, June 30, Sep. 30, Seq. Loan YOY Loan • Energy balances were flat while ($Million) 2022 2022 2021 Growth Growth unfunded commitments grew Energy $3,371.6 $3,393.1 $2,814.1 (0.6)% 19.8% • Seasonal decline in Services as well as continued payoffs in Services 3,280.9 3,421.5 3,32
Slide 8: Key credit quality metrics
Key credit quality metrics Quality metrics summary Net charge-offs to average loans ANNUALIZED • Total non-accrual loans increased $16.7 million; primarily due to healthcare & service loans, partially offset by a decrease in energy loans • Potential problem loans (substandard, accruing) totaled $95
Slide 9: Scott Grauer
Scott Grauer EVP, Wealth Management Executive 9
Slide 10: Fees & commissions
Fees & commissions Brokerage & trading • Linked quarter increase due to improved margins Qtr. Seq. Qtr. Seq. Qtr. YOY on Trading activities and a record quarter for ($Million) Q3 2022 $ Change % Change % Change municipal underwriting/financial advisory fees Trading fees $26.5 $14.5 120.7% 10.0% Deri
Slide 11: Steven Nell
Steven Nell EVP, Chief Financial Officer 11
Slide 12: Yields, rate & margin
Yields, rate & margin Net interest revenue ($Million) Q3 2022 Q2 2022 Q3 2021 Quarterly Quarterly sequential YOY • Net interest revenue up $42.3 million linked quarter; increase Net interest revenue $316.3 $274.0 $280.2 15.4% 12.9% in short-term rates drive loan repricing - interest income Net inter
Slide 13: Asset sensitivity
Asset sensitivity Scenario* ∆ NIR % ∆ NIR $ Noteworthy balance sheet items Up 200 Ramp, months 1-12 1.65% $24.2 million • Approximately 79% of Commercial and Commercial Real Estate portfolios are variable rate or fixed rate that reprice within a year Up 200 Ramp, months 13-24 4.15% $67.3 million • N
Slide 14: Liquidity & capital
Liquidity & capital Q3 2022 Q2 2022 Q3 2021 • Period-end deposit balances were down $2.2 Loan to Deposit Ratio 59.8% 55.1% 52.8% billion this quarter, and down $2.1 billion compared to September 30, 2021 Period-End Deposits $36.4 billion $38.6 billion $38.5 billion • $9.8 billion of secured wholesal
Slide 15: Expenses
Expenses Expenses summary % Incr. % Incr. • Total operating expenses increased ($Million) Q3 2022 Q2 2022 Q3 2021 Seq. YOY only 1.2% year- over- year • Quarterly personnel expenses Personnel expense $170.3 $154.9 $175.9 10.0% (3.1)% increased 10%, but down 3.1% year- over-year; both are driven by ma
Slide 16: Forecast & assumptions
Forecast & assumptions ◦ We currently expect mid to upper single digit annualized loan growth. Our geographic footprint remains very strong and may outperform in this cycle given the high level of business migration from other markets and the role energy plays in our footprint. ◦ We have a strong ba
Slide 17: Stacy Kymes, Chief Executive Officer
Stacy Kymes Chief Executive Officer 17
Slide 18: Question and Answer Session
Question and Answer Session 18
Slide 19: BOK Financial Corporation
BOK FINANCIAL CORPORATION