Bok Financial Corporation · NASDAQ:BOKF
Bok Financial — Investor Presentation (August 2022)
26 slides from Bok Financial's investor presentation, August 2022
Slide 1: Investor Presentation
Investor Presentation August 2022
Slide 2: Forward-looking statements
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 expected or potential
Slide 3: Financial Results Q2 2022
Financial Results Q2 2022 3
Slide 4: Summary Financial Statements
Summary Financial Statements June 30, Mar. 31, June 30, Linked-Quarter Commentary ($Million) 2022 2022 2021 Average Securities $17,259 $22,065 $21,169 Shifted $2.4 billion AFS to HTM portfolio, Trading Portfolio down on average. Average Loans $21,058 $20,464 $22,167 Excluding PPP loans, our core por
Slide 5: Q2 summary
Q2 summary Noteworthy items impacting profitability Quarterly earnings trend • Margin expansion as loans reprice and loan growth NET INCOME continued to accelerate, continuing the momentum seen over the past several quarters Attributable to shareholders • Strong performance from our fee-based busine
Slide 6: Loan portfolio
Loan portfolio June 30, Mar. 31, June 30, Seq. Loan YOY Loan ($Million) 2022 2022 2021 Growth Growth • Energy balances continued to see strong growth similar to that Energy $3,393.1 $3,197.7 $3,011.3 6.1% 12.7% experienced over the past two Services 3,421.5 3,351.5 3,389.8 2.1% 0.9% quarters • Growt
Slide 7: Yields, rate & margin
Yields, rate & margin Net interest revenue ($Million) Q2 2022 Q1 2022 Q2 2021 Quarterly Quarterly sequential YOY • Net interest revenue up $5.6 million linked quarter; with the Net interest revenue $274.0 $268.4 $280.3 2.1% (2.2)% benefits of rate increases offset by a decline in trading Net interes
Slide 8: Asset sensitivity
Asset sensitivity Scenario* ∆ NIR % ∆ NIR $ Noteworthy balance sheet items • We anticipate holding the available-for-sale securities portfolio flat by Up 200 Ramp, months 1-12 5.19% $66.7 million reinvesting cash flows at current market rates, maintaining our asset- sensitive position Up 200 Ramp, m
Slide 9: Fees & commissions
Fees & commissions Brokerage & trading • Revenue increased linked quarter due to Qtr. Seq. Qtr. Seq. Qtr. YOY recognized losses on Trading Securities ($Million) Q2 2022 $ Change % Change % Change experienced in Q1 from disruptions in fixed- income markets Trading fees $12.0 $66.0 122.2% (7.8)% Deriv
Slide 10: Expenses
Expenses Expenses summary % Incr. % Incr. ($Million) Q2 2022 Q1 2022 Q2 2021 Seq. YOY • Quarterly personnel expense down $4.3 million, with decreases in deferred compensation, share- Personnel expense $154.9 $159.2 $172.0 (2.7)% (9.9)% based incentive compensation, and employee benefits offset by an
Slide 11: Key credit quality metrics
Key credit quality metrics Quality metrics summary Net charge-offs to average loans ANNUALIZED • Total non-accrual loans down $10.1 million • A decrease of $4.1 million in Energy non-accruals • Potential problem loans (substandard, accruing) totaled $131 million at 6/30, compared to $169 million at
Slide 12: Capital Management
Capital Management Capital Management Overview Q2 2022 Q1 2022 Q2 2021 • Robust capital ratios consistently remain well above regulatory and internal policy thresholds Common Equity Tier 1 11.6% 11.3% 12.0% • Repurchased 294,084 shares at an average price of $82.98 per share in the open market Total
Slide 13: Forecast & assumptions
Forecast & assumptions ◦ We expect loan growth to continue the solid performance seen in Q1 and Q2, with period-end point-to-point total loan growth for the year approaching a double-digit rate. ◦ We expect a continued reduction in deposit balances; with the point-to-point decline in the upper singl
Slide 14: BOK Financial Corp
BOK Financial Corp 14
Slide 15: BOK Financial Corporation
NASDAQ: BOKF BOK Financial Corporation CONSUMER, COMMERCIAL & BROKER/DEALER & Corporate snapshot MORTGAGE BANKING INDEPENDENT ADVISORY SERVICES • Top 30 national/regional bank* BOK Financial ® BOK Financial Securities • Midwest/Southwest franchise Bank of Texas BOK Financial Advisors • 119 full serv
Slide 16: Core strategy
Core strategy Build a bank with diverse Earnings per share CAGR across 29 year history of BOKF is 9.9% revenues that can compete upstream and outperform peers across varying economic cycles. "There is no principle more emphasized in our organization than managing for long-term value rather than shor
Slide 17: Diverse revenue sources
Diverse revenue sources Well diversified Revenue composition as of 6/30/2022 Approximately 35%-40% of total revenues come from a diverse set of well-established fee income businesses, a differentiator compared to other midsized regional banks. Additional fee income categories: Fiduciary & asset mana
Slide 18: Strong core deposit franchise
Strong core deposit franchise Deposit Deposit mix & cost ($billion) Geographic deposit mix MSA Branches share Tulsa, OK 21 37% Demand Interest-bearing transaction Dallas/Fort Worth/Metro, TX 20 1% Savings Time Oklahoma City, OK 16 9% 3% 14% 4% Albuquerque, NM 13 10% 3% Denver/Metro, CO 13 3% 5% 6% 4
Slide 19: Diversified loan portfolio
Diversified loan portfolio Disciplined concentration management, diversified by sector & geography Loan segmentation Collateral location as of 6/30/2022 as of 6/30/2022 Commercial real estate Texas Loans to individuals Other Services Oklahoma Healthcare Colorado Energy Arizona General business Kansa
Slide 20: Energy banking
Energy banking Portfolio composition More than 100-year history in energy lending as of 6/30/2022 and a playbook 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 to confirm Oil & gas pro
Slide 21: Healthcare banking
Healthcare banking Portfolio composition Outstandings totaled $3.7 billion across as of 6/30/2022 31 states at 6/30/2022 Healthcare portfolio characteristics: Senior housing • Favorable spreads Hospitals • Above-average loan utilization rates Service medical • Predominately BOK Financial originated
Slide 22: Commercial real estate
Commercial real estate Portfolio composition as of 6/30/2022 $4.1 billion outstanding and $2.5 billion BY PRODUCT TYPE unfunded commitments at 6/30/2022 Multifamily Office • BOKF allocates 185% of Tier 1 capital plus reserves to CRE. Industrial • Further controls and limitations by product type and
Slide 23: Wealth Management
Wealth Management Wealth Management revenue as of 6/30/2022 FEE INCOME AND NET INTEREST REVENUE Primary lines of business Fee income • Private Wealth, including banking and investment management • Brokerage & trading services Net interest revenue • Institutional Wealth, including retirement plans, a
Slide 24: Transaction processing
Transaction processing Transaction processing volume as of 12/31/2021 EFT TRANSACTION VOLUMES Debit processing & ATM network (Million) • Operates nationally • More than 72% of clients are outside of Oklahoma • Clients: banks, credit unions and C-store chains • 825 million EFT transactions processed
Slide 25: Mortgage banking
Mortgage banking Mortgage banking revenue as of 6/30/2022 SERVICING, ORIGINATING AND MARKETING REVENUE Top 50 U.S. mortgage originator Servicing • Annual origination volume in 2021 was $2.6 billion Originating & marketing • Servicing an average of $17.3 billion of mortgages at June 30, 2022 Two line
Slide 26: BOK Financial Corporation
BOK FINANCIAL CORPORATION