Bok Financial Corporation · NASDAQ:BOKF
Bok Financial — BOK Financial Corp ET AL — Q1 2016 Earnings Presentation
21 slides from Bok Financial's earnings presentation, Apr 28, 2016
Slide 1: First Quarter 2016 Earnings Conference Call
1 First Quarter 2016 Earnings Conference Call April 27, 2016
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: Steven G. Bradshaw, Chief Executive Officer
3 Steven G. Bradshaw Chief Executive Officer
Slide 4: First Quarter Summary
First Quarter Summary: 4 • Noteworthy items impacting Q1 profitability: • Loan loss provision $35 million or $0.35 per share. • MSR mark to market expense, net of hedges of $11.4 million or $0.11 per share. • Large number of unusual or noteworthy expense items in the quarter. First Quarter Q1 2016 Q
Slide 5: Additional Q1 2016 Details
Additional Q1 2016 Details ($bil) Q1 2016 Q4 2015 % Growth, Seq. Q1 2015 % Growth, YOY Period-End Loans $16.0 $15.9 0.5% 2.0% ann. $14.7 9.1% Avg. Loans 16.0 15.6 2.6% 10.4% ann. 14.6 9.9% Fiduciary Assets $39.1 $38.3 2.1% $37.5 6.5% Assets Under Management or in Custody $71.9 $71.0 1.3% $66.7 7.8%
Slide 6: Steven Nell, Chief Financial Officer: Financial Overview
6 Steven Nell Chief Financial Officer Financial Overview
Slide 7: Q1 Noteworthy Items
Q1 Noteworthy Items Item Description Pretax Impact $mil EPS Impact Details Loan Loss Provision ($35.0) ($0.35) Front end loaded provision due to significant drop in commodity prices in Q1. Continue to forecast $60-$80 million of loan loss provision for the full year. MSR Impact, Net Of Hedges ($11.4
Slide 8: Q1 Noteworthy Items (continued)
Q1 Noteworthy Items Item description Pretax Impact $mil EPS Impact Details Purchase Accounting Adjustments (1.6) (0.02) Related to merchant banking investment. $2.7 million included in ‘other expense’ line item offset by $1.1 million benefit in non-controlling interests line item Mortgage Repurchase
Slide 9: Net Interest Revenue and Margin
Net Interest Revenue and Margin ($mil) Q1 2016 Q4 2015 Q3 2015 Q2 2015 Q1 2015 Net Interest Revenue $182.6 $181.3 $178.6 $175.7 $167.7 Provision For Credit Losses $ 35.0 $ 22.5 $ 7.5 $ 4.0 $ 0.0 Net Interest Revenue After Provision $147.6 $158.8 $171.1 $171.7 $167.7 Net Interest Margin * 2.65% 2.64%
Slide 10: Fees and Commissions Revenue
Fees and Commissions Revenue ($mil) 3 mos ended 3/31/16 % Growth, Seq. % Growth, YOY,3 Mos ended 3/31/16 % Growth, TTM ended 3/31/16 Brokerage and Trading $32.3 6.9% 2.0% (-4.7%) Transaction Card 32.4 0.1% 4.3% 3.5% Fiduciary and Asset Management 32.1 2.9% 1.9% 4.4% Deposit Service Charges and Fees
Slide 11: Expense Review
Expense Review ($mil) Q1 2016 Q4 2015 Q1 2015 %Incr. Seq. %Incr. YOY Personnel Expense $135.8 $133.2 $128.5 2.0% 5.7% Other Operating Expense $109.1 $ 99.4 $ 91.7 7.2% 18.9% Total Operating Expense $244.9 $232.6 $220.3 5.3% 11.2% • Higher personnel expense in Q1 due to merit increases and FICA expen
Slide 12: Other Balance Sheet Statistics
Other Balance Sheet Statistics Q1 2016 Q4 2015 Q1 2015 Period End AFS Securities $8.9 billion $9.0 billion $9.2 billion Average AFS securities $9.0 billion $9.0 billion $9.1 billion Period End Deposits $20.4 billion $21.1 billion $21.2 billion Average Deposits $20.6 billion $20.7 billion $21.2 billi
Slide 13: 2016 Assumptions
2016 Assumptions Mid-single-digit loan growth Continued gradual decline in the securities portfolio of $200-$250mm per quarter Stable to increasing NIM Increasing NII Provision for credit losses for the full year at high end of previously announced $60-$80 million forecast Continued mid-
Slide 14: Stacy Kymes, EVP-Corporate Banking
14 Stacy Kymes EVP-Corporate Banking
Slide 15: Loan Portfolio by Geography
Loan Portfolio by Geography ($mil) Mar 31 2016 Dec 31 2015 Seq. Loan Growth Mar 31 2015 YOY Loan Growth OK $6,019.3 $6,187.0 (2.7%) $5,537.0 8.70% TX 5,576.8 5,535.2 0.8% 5,228.3 6.7% NM 853.6 821.3 3.9% 824.1 3.6% AR 154.6 170.7 (9.4%) 190.4 (18.8%) CO 1,326.9 1,288.2 3.0% 1,301.3 2.0% AZ 1,320.6 1
Slide 16: Commercial Loan Growth
Commercial Loan Growth ($mil) Mar 31 2016 Dec 31 2015 Seq. Loan Growth Mar 31 2015 YOY Loan Growth Energy $3,029.4 $3,097.3 (2.2%) $2,903.4 4.4% Services 2,728.9 2,784.3 (2.0%) 2,592.9 5.2% Healthcare 1,995.4 1,883.4 5.9% 1,511.2 32.0% Wholesale/retail 1,451.8 1,422.1 2.1% 1,405.8 3.3% Manufacturing
Slide 17: Energy Loan Portfolio
Oil & Gas Producers 82% Midstream & Other 9% Energy Services 9% Energy At 3/31/16: $5.3 billion commitments and $3.0 billion O/S ~60/40 split between oil and gas SNCs = 54% of commitments, 45% of outstandings E&P line utilization 64% Allowance for credit losses to period end loans: 3.19%
Slide 18: Commercial Real Estate
Commercial Real Estate ($mil) Mar 31 2016 Dec 31 2015 Seq. Loan Growth Mar 31 2015 YOY Loan Growth Residential Construction and Land Development $171.9 $160.4 7.2% $139.2 23.5% Retail 810.5 796.5 1.8% 658.9 23.0% Office 695.6 637.7 9.1% 513.9 35.4% Multifamily 733.7 751.1 (2.3%) 750.0 (2.2%) Industr
Slide 19: Key Credit Quality Metrics
Combined allowance for credit losses to period end loans: 1.50% Combined allowance for credit losses to nonaccruing loans*: 105% Non-performing assets to period end loans and repossessed assets*: 1.59% *Excluding government guaranteed assets. Net annualized charge-offs to average loans: 0.56%
Slide 20: Closing Remarks
20 Steven G. Bradshaw Chief Executive Officer Closing Remarks
Slide 21: Question and Answer Session
21 Question and Answer Session
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