Bok Financial Corporation · NASDAQ:BOKF
Bok Financial — Q2 2024 Earnings Presentation
23 slides from Bok Financial's earnings presentation, Jul 23, 2024
Slide 1: Q2 Earnings Conference Call
Q2 Earnings Conference Call July 23, 2024
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, and the economy generally. Words such as “anticipates,” “beli
Slide 3: Stacy Kymes, Chief Executive Officer
Stacy Kymes Chief Executive Officer 3
Slide 4: Q2 Financial Highlights
Q2 Financial Highlights Net Income Attributable to shareholders • Net Income of $163.7 million and EPS of $2.54, adjusted Per share (diluted) for the Visa B gain and related contribution to the BOKF $163.7 Foundation and the additional FDIC special assessment $151.3 expense, net income would have be
Slide 5: Long-term EPS growth vs. KRX Median
Long-term EPS growth vs. KRX Median BOKF CAGR = 8.6% KRX CAGR = 4.3% * EPS excluding extraordinary items / Source: S&P Global. 5
Slide 6: Additional Details
Additional Details Quarterly Quarterly ◦ Period-end loan balances grew $381 ($Billion) Q2 2024 Sequential YOY million led by loan growth in commercial balances, partially offset Period-End Loans $24.6 1.6% 5.7% by normal CRE payoff activity Average Loans $24.4 1.8% 6.5% ◦ Average deposits increased
Slide 7: Marc Maun, EVP, Regional Banking Executive
Marc Maun EVP, Regional Banking Executive 7
Slide 8: Loan Portfolio
Loan Portfolio Seq. Loan YOY Loan ($Million) June 30, 2024 Mar. 31, 2024 June 30, 2023 Growth Growth • Combined Services & General Energy $ 3,451.5 $ 3,443.7 $ 3,508.8 0.2% (1.6)% Business (Core C&I) balances increased $498 million Services 3,577.1 3,529.4 3,585.2 1.4% (0.2)% Healthcare 4,231.1 4,24
Slide 9: Credit Resilience
Credit Resilience Disciplined Credit Concentration 100 year history in energy lending and a tested playbook that works • CRE limit on total committed balances is 185% of tier • 70% oil / 30% gas-weighted borrowers one capital plus reserves • Robust stress testing process and 17 petroleum • Office CR
Slide 10: Credit Quality Metrics
Credit Quality Metrics • Credit quality remains better than pre-pandemic level Net Charge-Offs to Average Loans with a 24% decline in non-performing assets during Annualized the quarter 0.60% • Trailing 12 months net charge-offs at 9 bps 0.40% • CRE office exposure is less than 4% of outstanding per
Slide 11: Scott Grauer, EVP, Wealth Management Executive
Scott Grauer EVP, Wealth Management Executive 11
Slide 12: Fee Income - Markets & Securities
Fee Income - Markets & Securities Trading Fees ($Million) Q2 2024 Qtr. Seq. Qtr. Seq. Qtr. YOY $ Change % Change % Change • Decreased 26.1% during the quarter Trading Fees $ 27.7 $ (9.8) (26.1)% (25.0)% driven by trading spread compression Mortgage Banking 18.6 (0.3) (1.8)% 23.0% Customer Hedging Fe
Slide 13: Fee Income - Asset Management & Transactions
Fee Income - Asset Management & Transactions Fiduciary & Asset Management Qtr. Seq. Qtr. Seq. Qtr. YOY ($Million) Q2 2024 $ Change % Change % Change • Assets under management and Markets & Securities $ 71.6 $ (6.5) (8.3)% (10.6)% A administration (“AUMA”) increased $1.9 billion during the Fiduciary
Slide 14: Marty Grunst, EVP, Chief Financial Officer
Marty Grunst EVP, Chief Financial Officer 14
Slide 15: Liquidity & Capital
Liquidity & Capital Q2 2024 Q1 2024 Q2 2023 Liquidity Loan to Deposit Ratio 67.7% 68.3% 69.8% • Period-end deposit balances increased $858 million this quarter Period-End Deposits $36.2 billion $35.4 billion $33.3 billion Available Secured Capacity $20.4 billion $20.0 billion $19.2 billion • Uninsur
Slide 16: Yields, Rate & Margin
Yields, Rate & Margin Quarterly Quarterly Net Interest Income ($Million) Q2 2024 Q1 2024 Q2 2023 sequential YOY • Net interest income was up $2.4 million linked quarter Net Interest Income $296.0 $293.6 $322.3 0.8% (8.1)% led by strong loan growth and asset repricing along with slowing deposit repri
Slide 17: Expenses
Expenses • Quarterly personnel expenses decreased $11.6 million due to ($Million) Q2 2024 Q1 2024 Q2 2023 % Incr. % Incr. lower incentive compensation Seq. YOY costs, regular compensation and employee benefits Personnel Expense $191.1 $202.7 $190.7 (5.7)% 0.2% Other Operating Expense $145.6 $137.7 $
Slide 18: 2024 Full Year Outlook
2024 Full Year Outlook Business Driver FY as of 7/23/24 FY as of 4/24/24 Notes Loans (EOP) No change +5% to +7% Deposits (EOP) No change Modest growth Loan to deposit ratio is expected to remain in the 70% area Investment Securities No change Flat Assumes 1 rate cut in November vs. 2 rate cuts in Ne
Slide 19: Question & Answer Session
Question & Answer Session 19
Slide 20: Stacy Kymes, Chief Executive Officer
Stacy Kymes Chief Executive Officer 20
Slide 21: Appendix
Appendix 21
Slide 22: Securities and Interest Rate Risk Position
Securities and Interest Rate Risk Position Securities Portfolio Interest Rate Risk • Short duration with limited extension, current portfolio duration • Approximately 74% of the total loan portfolio is variable rate or is 3.1 years, extending to only 3.6 years if rates increase fixed rate that repri
Slide 23: BOK Financial Corporation
BOK FINANCIAL CORPORATION