Bok Financial Corporation · NASDAQ:BOKF
Bok Financial — Investor Presentation (March 2021)
21 slides from Bok Financial's investor presentation, Mar 31, 2021
Slide 1: Investor Presentation
BOK Financial Corporation Investor Presentation March 31, 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: NASDAQ: BOKF
NASDAQ: BOKF • Top 30 national/regional bank* • Midwest/Southwest franchise with 118 full service locations across eight states • Seasoned management team • Proven ability to deliver March 31, 2021 organic growth Assets $47 billion Loans $23 billion • Consistent execution Deposits $38 billion • Cons
Slide 4: Core Strategy
Core Strategy Build a recession-ready bank that will outperform peers across the economic cycle $550,000 $8.00 $500,000 $7.00 Earnings Per Share CAGR across 28 year history of BOKF is 8.8% $450,000 $6.00 $400,000 $350,000 $5.00 $300,000 $4.00 $250,000 $200,000 $3.00 $150,000 $2.00 $100,000 $1.00 $50
Slide 5: Diverse Revenue Sources
Diverse Revenue Sources • Nearly 40% fee income is a differentiator for BOKF Revenue Composition at 03/31/2021 compared to other midsized regional banks • Well diversified: no single component of fee income accounts for 10% of total revenue Brokerage and • Further diversity within the fee income cat
Slide 6: Strong Balance Sheet
Strong Balance Sheet Metric: 03/31/2021 Period End Loans $22.5 billion Period End Deposits $37.9 billion Loan to Deposit Ratio 59.5% Regulatory minimum for well- Capital Ratios: 03/31/2021 capitalized: Common Equity Tier 1 7% 12.14% Tier 1 Capital Ratio 8.5% 12.21% Total Capital Ratio 10.5% 13.98% C
Slide 7: Strong Core Deposit Franchise
Strong Core Deposit Franchise Deposit mix and cost ($bn) Geographic deposit mix Demand Interest-bearing transaction Savings Time TX $40 $37.9 21% $36.1 5% NM $35 6% 2% AR $30 1% $27.6 OK $25.3 51% CO $25 58% 12% $22.1 AZ $20 5% KS/MO 4% $15 MSA Branches Deposit share Tulsa, OK 22 38% $10 Dallas-Fort
Slide 8: Diversified Loan Portfolio
Diversified Loan Portfolio Loan Portfolio Segmentation Loan Portfolio by Collateral Location Energy 14% TX Healthcare 31% 15% OK Services 17% 15% NM Loans to 4% PPP Individuals 8% 16% CO Other 12% 23% General Commercial AZ Business Real Estate 8% 12% KS/MO 20% 5% Disciplined concentration management
Slide 9: Energy Banking
Energy Banking Over 100 year history in energy lending and a playbook Portfolio Composition at 03/31/2021 that works • Focus on first lien, senior secured E&P lending – the “sweet spot” in energy lending • Internal staff of 16 petroleum engineers and engineering techs Oil & Gas to confirm property v
Slide 10: Healthcare Banking
Healthcare Banking • As of March 31, 2021, outstandings totaled $3.3 billion across Portfolio Composition at 03/31/2021 31 states • Healthcare portfolio characteristics: ▪ Favorable LIBOR spreads 11% ▪ Above-average loan utilization rates 10% ▪ Predominately BOK Financial originated commitments - Se
Slide 11: Commercial Real Estate
Commercial Real Estate CRE Portfolio by Product Type Office Retail 24% 17% • $4.5 billion outstanding and $1.5 billion unfunded commitments at March 31, 2021 • BOKF allocates 175% of Tier 1 capital plus reserves to CRE Industrial 18% • Further controls and limitations by product type and geography.
Slide 12: Wealth Management
Wealth Management 600 Four primary lines of business Wealth Management Revenue 500 • Private Wealth CAGR: 8.3% • Brokerage & Trading Services 400 • Institutional Wealth Management 300 • Cavanal Hill Investment Management • Clients include high net worth individuals, corporations, pensions, 200 found
Slide 13: Transaction Processing
Transaction Processing Debit Processing & ATM Network 900 EFT Transaction • Among the top 10 networks in the US 800 Volumes (Mil) 700 • Operates nationally with customers based in 26 states CAGR: 6.2% and the Virgin Islands; more than 65% of clients outside 600 Oklahoma 500 • Clients: Banks / Credit
Slide 14: Mortgage Banking
Mortgage Banking 200,000 180,000 160,000 140,000 120,000 100,000 80,000 60,000 • Top 50 U.S. mortgage originator 40,000 20,000 - • Two lines of business: 2017 2018 2019 2020 March 2021 TTM ▪ Direct mortgage origination Servicing Rev. Originating and Marketing Rev. through BOKF retail network ▪ Mortg
Slide 15: 1Q 2021 Financial Results
1Q 2021 Financial Results
Slide 16: First Quarter Summary
First Quarter Summary Net Income $154.0 $154.2 $146.1 ($mil, exc. EPS) Q1 2021 Q4 2020 Q1 2020 Net Income $146.1 $154.2 $62.1 Diluted EPS $2.10 $2.21 $0.88 $2.19 $2.21 $2.10 $64.7 Net income before taxes $186.7 $199.8 $79.3 $62.1 $0.88 $0.92 Provision for credit losses ($25.0) ($6.5) $93.8 Pre-provi
Slide 17: Loan Portfolio
Loan Portfolio Seq. Mar 31, Dec 31, Mar 31, Loan YOY Loan ($mil) 2021 2020 2020 Growth Growth Energy $3,202.5 $3,469.2 $4,111.7 (7.7)% (22.1)% Services 3,421.9 3,508.6 3,955.7 (2.5)% (13.5)% Healthcare 3,290.8 3,306.0 3,165.1 (0.5)% 4.0% General business 2,742.6 2,793.8 3,563.5 (1.8)% (23.0)% Total
Slide 18: Net Interest Revenue and Margin
Net Interest Revenue and Margin ($mil) Q1 2021 Q4 2020 Q3 2020 Q2 2020 Q1 2020 Net interest revenue $280.4 $297.2 $271.8 $278.1 $261.4 Net interest margin 2.62% 2.72% 2.81% 2.83% 2.80% Yield on available for sale securities 1.84% 1.98% 2.11% 2.29% 2.48% Yield on loans 3.55% 3.68% 3.60% 3.63% 4.50% C
Slide 19: Fees and Commissions
Fees and Commissions Revenue ($mil) Growth: Quarterly, Quarterly, Year Trailing 12 Q1 2021 Sequential over Year Months Brokerage and Trading $20.8 (47.4)% (59.1)% (13.5)% Transaction Card 22.4 2.4% 2.5% 0.6% Fiduciary and Asset Management 41.3 (1.1)% (7.1)% (1.9)% Deposit Service Charges and Fees 24
Slide 20: Expenses
Expenses %Incr. %Incr. ($mil) Q1 2021 Q4 2020 Q1 2020 Seq. YOY Personnel expense $173.0 $176.2 $156.2 (1.8)% 10.8% Other operating expense $109.6 $124.5 $112.4 (11.9)% (2.5)% Total operating expense $282.6 $300.7 $268.6 (6.0)% 5.2% Efficiency Ratio 63.32% 62.36% 58.62% • Quarterly personnel expense
Slide 21: Key Credit Quality Metrics
Key Credit Quality Metrics Non-accruals (mil) Net charge-offs (annualized) to average loans $255.4 0.60% $234.7 $221.2 $216.0 $163.2 0.40% 0.37% 0.31% 0.28% 0.25% 0.23% 0.20% 0.00% 1Q20 2Q20 3Q20 4Q20 1Q21 1Q20 2Q20 3Q20 4Q20 1Q21 Energy Healthcare CRE Residential and Other • Net charge-offs decreas