Bok Financial Corporation · NASDAQ:BOKF
Bok Financial — Q2 2021 Earnings Presentation
17 slides from Bok Financial's earnings presentation, Jul 21, 2021
Slide 1: Q2 Earnings Conference Call
Q2 Earnings Conference Call July 21, 2021
Slide 2: Legal Disclaimers
LEGAL DISCLAIMERS Forward-Looking Statements: 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 exp
Slide 3: Steven G. Bradshaw, Chief Executive Officer
Steven G. Bradshaw Chief Executive Officer
Slide 4: Q2 Summary
Q2 SUMMARY NET INCOME Noteworthy Items Impacting Profitability • Another outstanding earnings quarter from our Wealth Management Attributable to Shareholders Per Share (Diluted) team • Net interest income stabilization $166.4 • $35 million negative provision for credit loss $154.0 $154.2 • Expense m
Slide 5: Additional Details
ADDITIONAL DETAILS Year over Year ($Billion) Q2 2021 Quarterly Growth Growth • PPP forgiveness accounts for $727 million of Period-End Loans $21.4 (5.0)% (11.3)% $1.1 billion reduction in loan balances Average Loans $22.2 (2.6)% (8.0)% • Average deposits continue to grow Period-End Deposits $37.4 (1
Slide 6: Stacy Kymes, Chief Operating Officer
Stacy Kymes Chief Operating Officer
Slide 7: Loan Portfolio
LOAN PORTFOLIO June 30, Mar 31, June 30, SEQ. LOAN YOY LOAN ($Million) LOANS OVERVIEW 2021 2021 2020 GROWTH GROWTH • Energy balances decline, but at a slower Energy $3,011.3 $3,202.5 $3,974.2 (6.0)% (24.2)% pace than previous periods Services 3,389.8 3,421.9 3,779.9 (0.9)% (10.3)% • Quarterly growth
Slide 8: Key Credit Quality Metrics
KEY CREDIT QUALITY METRICS NET CHARGE-OFFS TO AVERAGE LOANS ANNUALIZED, NET OF PPP QUALITY METRICS OVERVIEW 0.60% 0.41% • Total non-accrual loans down $36.4 million 0.40% 0.31% 0.28% 0.30% • A decrease of $31.5 million in Energy non-accruals 0.25% 0.20% • Potential problem loans (substandard, accrui
Slide 9: Fees & Commissions
FEES & COMMISSIONS BROKERAGE & TRADING REVENUE GROWTH • Product focus shift and client base expansion Q2 2021 Quarterly, Sequential Quarterly, Year over Trailing 12 Months promoted revenue growth ($Million) Year FIDUCIARY & ASSET MANAGEMENT Brokerage & Trading $29.4 41.5% (52.6)% (17.0)% • Strong sa
Slide 10: Steven Nell, Chief Financial Officer
Steven Nell Chief Financial Officer
Slide 11: Yields, Rate & Margin
YIELDS, RATE & MARGIN ($Million) Q2 2021 Q1 2021 Q4 2020 Q3 2020 Q2 2020 Net Interest Revenue $280.3 $280.4 $297.2 $271.8 $278.1 NET INTEREST REVENUE Net Interest Margin 2.60% 2.62% 2.72% 2.81% 2.83% • Net interest revenue largely unchanged from previous quarter Yield on Available for Sale Securitie
Slide 12: Expenses
EXPENSES EXPENSES OVERVIEW %Incr. %Incr. ($Million) Q2 2021 Q1 2021 Q2 2020 • Quarterly personnel expense flat due to Seq. YOY regular compensation decrease of $1.1 million was mostly offset by an increase in Personnel expense $172.0 $173.0 $176.2 (0.6)% (2.4)% incentive compensation expense • Quart
Slide 13: Liquidity & Capital
LIQUIDITY & CAPITAL Q2 2021 Q1 2021 Q2 2020 Loan to Deposit Ratio 57.2% 59.5% 71.3% • Deposit growth continues to be strong Period End Deposits $37.4 billion $37.9 billion $33.9 billion • Nearly $13 billion of secured borrowing capacity Available secured wholesale borrowing capacity $12.8 billion $1
Slide 14: Forecast & Assumptions
FORECAST & ASSUMPTIONS • Loan growth will slowly accelerate in tandem with the broader economic recovery this year, excluding the impact of PPP • We expect the overall loan loss reserve as a percent of loan balances to continue to migrate toward pre-pandemic levels • NIM may continue to move down sl
Slide 15: Steven G. Bradshaw, Chief Executive Officer
Steven G. Bradshaw Chief Executive Officer
Slide 16: Question and Answer Session
QUESTION AND ANSWER SESSION
Slide 17: © BOK FINANCIAL CORPORATION
© BOK FINANCIAL CORPORATION