Bok Financial Corporation · NASDAQ:BOKF
Bok Financial — Investor Presentation (2017)
24 slides from Bok Financial's investor presentation, 2017
Slide 1: Investor Presentation
Investor Presentation NASDAQ: BOKF 1
Slide 2: Forward-Looking Statements
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 constitute forward-lookin
Slide 3: BOK Financial at a Glance
BOK Financial at a Glance One of the largest U.S. bank holding companies Valuable Midwest / Southwest franchise Seasoned management team Consistent execution and solid performance across all economic cycles Proven ability to deliver organic growth Diverse revenue stream Mar 31, 2017 Di
Slide 4: Diverse Revenue Sources
Diverse Revenue Sources Sources of Revenue: 12 months ended 3/31/17 Revenue CAGR 2011–2016 Brokerage and Trading 6% Transaction Card 3% Trust Fees 13% Brokerage & Trading Service Charges 1% 10% Mortgage Banking 8% Transaction Overall CAGR 5% Net Interest Card 53% 9% TTM fees and commissions ($mm) Tr
Slide 5: Strong Balance Sheet
Strong Balance Sheet Metric: At Mar 31, 2017 Notes: Period End Deposits $22.6 billion LTM deposit growth of 10.6 percent Capital Ratios: Excess over regulatory minimum for well-capitalized: Common Equity Tier 1 11.60% 510 basis points Tier 1 Capital Ratio 11.60% 360 basis points Total Capital Ratio
Slide 6: Strong Core Deposit Franchise
Strong Core Deposit Franchise Deposit mix and cost ($bn) Geographic deposit mix Demand Interest-bearing transaction Savings Time $24 $23 $23 TX $21 27% $20 $21 10% 2% $18 NM OK 7% 53% AR 1% CO 6% 46% AZ $12 KC 2% 4% MSA Branches Deposit share Tulsa, OK 24 30.0% Dallas-Fort Worth-Arlington, TX 22 1.5
Slide 7: Diversified Loan Portfolio
Diversified Loan Portfolio Loan Portfolio Segmentation Loan Portfolio by Collateral Location: CRE Residential 23% Mortgage TX 11% 33% OK 19% Other C&I 3% Wholesale/Retail Mfr 3% 9% Personal 5% NM 5% Healthcare Services 18% Other CO 13% 21% 8% Energy AZ 5% 15% KS/MO 9% Disciplined concentration manag
Slide 8: A Top U.S. Energy Banker
A Top U.S. Energy Banker 7% Oil & Gas 15% Producers Core competency of BOK for over 100 years Midstream & Other Differentiated specialty lending business 78% Substantially all first lien, senior secured, Energy Services reserve-based loans – the sweet spot in energy lending Regionally divers
Slide 9: Healthcare Banking Expertise
Healthcare Banking Expertise Growing line of business within commercial banking Five year CAGR 17.7% through 12/31/16 As of December 2016, commitments totaled $2.2 billion across 35 states and three categories: Senior Housing Hospitals Service Medical Healthcare portfolio characteristi
Slide 10: Wealth Management
Wealth Management Four primary lines of business: The Private Bank BOK Financial Advisors Institutional Wealth Management Cavanal Hill Compounded Annual Revenue Growth 2011-2016: 8.4% Assets under management or custody: $77 billion Fiduciary assets: $44 billion Loans: Over $1 billi
Slide 11: Transaction Processing
Transaction Processing ATM Network 600 EFT Transaction Volumes (M) Among the top 10 networks in the US 500 CAGR: 8.18% Operates in 25 states; more than 60% of clients 400 outside Oklahoma 300 Clients: 221 Banks, 150 Credit Unions, 4 C-Store 200 partners 100 In 2016, processed 569 million EFT
Slide 12: Mortgage Banking
Mortgage Banking 160,000 Top 50 U.S. mortgage originator 140,000 120,000 Growing online sales channel – 100,000 HomeDirect Mortgage 80,000 60,000 Annual origination volume ~ $6 billion 40,000 Servicing $22 billion of mortgages at 20,000 3/31/17 - 2013 2014 2015 2016 TTM Mar '17 Originating a
Slide 13: Q1 2017 Financial Results
© BOK FINANCIAL ‘N Q1 2017 Financial Results 13
Slide 14: First Quarter Summary
First Quarter Summary: Net Income $88.4 Q1 2017 Q4 2016 Q1 2016 $74.3 $65.8 Diluted EPS $1.35 $0.76 $0.64 Net income before $126.8 $72.4 $62.4 $50.0 taxes ($M) $42.6 $1.35 $1.13 Net income $88.4 $50.0 $42.6 $1.00 $0.76 attributable to BOKF $0.64 shareholders ($M) 1Q16 2Q16 3Q16 4Q16 1Q17 Net income
Slide 15: Loan and AUM Growth
Loan and AUM Growth Annualized Quarterly Quarterly Year over Year ($B) Q1 2017 Growth Growth Growth Period-End Loans $17.0 --% 0.1% 6.0% Average Loans $17.1 2.5% *10.0% 7.2% Fiduciary Assets $44.3 6.1% 24.4% 13.3% Assets Under Management $77.4 2.6% 10.4% 7.6% or in Custody • Loans flat in Q1 but sti
Slide 16: Loan Portfolio by Type and Market
Loan Portfolio by Type: Loan Portfolio by Market: Seq. Seq. Mar 31 Dec 31 Loan Mar 31 Dec 31 Loan ($mil) 2017 2016 Growth ($mil) 2017 2016 Growth Commercial and OK $5,595.3 $5,765.7 (3.0)% $10,327.1 $10,390.8 (0.6)% Industrial Commercial TX 6,145.0 5,978.2 2.8% 3,871.1 3,809.0 1.6% Real Estate NM 83
Slide 17: Commercial & Industrial; Commercial Real Estate
Commercial & Industrial: Commercial Real Estate Seq. Seq. Mar 31 Dec 31 Loan Mar 31 Dec 31 Loan ($mil) 2017 2016 Growth ($mil) 2017 2016 Growth Energy $2,537.1 $2,497.9 1.6% Retail $745.0 $761.9 (2.2)% Services 3,013.4 3,109.0 (3.1)% Multifamily 923.0 903.3 2.2% Healthcare 2,265.6 2,201.9 2.9% Offic
Slide 18: Net Interest Revenue and Net Interest Margin
Net Interest Revenue Net Interest Margin Q1 Q4 Q3 Q2 Q1 ($mil) 2017 2016 2016 2016 2016 Net Interest Revenue $201.2 $194.2 $187.8 $182.6 $182.6 Provision For Credit Losses $ -- $ -- $ 10.0 $ 20.0 $ 35.0 Net Interest Revenue After Provision $201.2 $194.2 $177.8 $162.6 $147.6 Net Interest Margin * 2.8
Slide 19: Fees and Commissions
Fees and Commissions Revenue, $mil Change: Quarterly, Quarterly, Trailing 12 Q1 17 Sequential Year over Year Months Brokerage and Trading $33.6 18.0% 4.0% 7.3% Transaction Card 32.1 (6.9)% (0.7)% 4.3% Fiduciary and Asset Management 38.6 11.9% 20.5% 12.1% Deposit Service Charges and Fees 23.0 (1.4)%
Slide 20: Expenses
Expenses %Incr. %Incr. ($mil) Q1 2017 Q4 2016 Q1 2016 Seq. YOY Personnel Expense $136.4 $141.1 $133.6 (3.3)% 2.1% Other Operating Expense $108.3 $124.4 $109.0 (13.0)% (0.7)% Total Operating Expense $244.7 $265.5 $242.6 (7.8)% 0.9% Mobank acquisition: • One time integration expenses totaled $2.0 mill
Slide 21: Other Balance Sheet Statistics
Other Balance Sheet Statistics Mar 31 Dec 31 Mar 31 2017 2016 2016 Period End AFS Securities $8.4 billion $8.7 billion $8.9 billion Average AFS securities $8.6 billion $8.8 billion $9.0 billion Period End Deposits $22.6 billion $22.7 billion $20.4 billion Average Deposits $22.4 billion $21.7 billion
Slide 22: Key Credit Quality Metrics
Key Credit Quality Metrics $247.2 $250.0 $241.8 $237.0 $231.0 1.50% Net charge offs (annualized) $207.6 to average loans $200.0 1.00% $159.6 $168.1 $143.0 $132.5 0.56% $150.0 $110.4 0.50% 0.18% $100.0 -0.02% 0.00% 0.15% -0.03% $50.0 $94.0 $98.5 $97.2 $82.2 $79.1 -0.50% 1Q16 2Q16 3Q16 4Q16 1Q17 $- 1Q
Slide 23: 2017 Assumptions
2017 Assumptions Mid-single-digit loan growth for the full year $700 million reduction in available for sale securities portfolio for the full year Stable to increasing net interest margin Low-single-digit net interest revenue growth (linked quarter annualized) Loan loss provision of $15 -
Slide 24: Thank You!
© BOK FINANCIAL Thank You! ‘N