Bok Financial Corporation · NASDAQ:BOKF

Bok Financial — BOK Financial Corp ET AL — Investor Presentation (May 2018)

23 slides from Bok Financial's investor presentation, May 15, 2018

  1. Slide 1: Investor Presentation

    Investor Presentation NASDAQ: BOKF 1

  2. 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

  3. Slide 3: BOK Financial: A Regional Banking Powerhouse

    BOK Financial: A Regional Banking Powerhouse  One of the largest U.S. bank holding companies  Valuable Midwest / Southwest franchise  Seasoned management team  Proven ability to deliver organic growth  Consistent execution March 31, 2018 Assets $33 billion  Consistent strategy: Loans $17 billi

  4. Slide 4: Core Strategy: Build a recession-proof bank

    Core Strategy: Build a recession-proof bank that will outperform peers across the economic cycle . Consistent organic growth . Robust portfolio of fee generating businesses provides balance in As of 3/31/18 10 Yr. TSR 15 Yr. TSR periods of economic instability BOKF 144% 330% . Differentiated and gro

  5. Slide 5: Diverse Revenue Sources

    Diverse Revenue Sources • 43% fee income is significant differentiator for BOKF compared to other midsized regional banks Brokerage and Trading 9% • Well diversified: no single component of fee income accounts for more than 10% of total Transaction Card revenue 6% • Further diversity within the fee

  6. Slide 6: Strong Balance Sheet

    Strong Balance Sheet Metric: At 3/31/18 Period End Deposits $22.2 billion Capital Ratios: Regulatory minimum Excess over regulatory for well-capitalized: minimum for well-capitalized: Common Equity Tier 1 12.1% 7.0% 510 basis points Tier 1 Capital Ratio 12.1% 8.5% 360 basis points Total Capital Rati

  7. Slide 7: Strong Core Deposit Franchise

    Strong Core Deposit Franchise Deposit Mix ($bn) Geographic deposit mix TX Demand Interest-bearing transaction Savings Time 26% $24 $23 $22 $22 10% NM OK 7% 2% 53% AR $18 1% CO 6% AZ KC 46% 3% 4% $12 MSA Branches Deposit share Tulsa, OK 23 32% Dallas-Fort Worth-Arlington, TX 21 2% Oklahoma City, OK 1

  8. Slide 8: Diversified Loan Portfolio

    Diversified Loan Portfolio Loan Portfolio Segmentation Loan Portfolio by Collateral Location: CRE 20% Residential Mortgage TX 11% 34% OK Other C&I 3% 19% Wholesale/ Manufacturing Retail 3% 9% Personal 6% NM 5% Healthcare Services Other 14% 17% 20% CO 9% AZ 5% Energy KS/MO 17% 8% Disciplined concentr

  9. Slide 9: A National Energy Banking Leader

    A National Energy Banking Leader 100 year history in energy lending and a playbook Portfolio Composition at 3/31/18: that works: . Focus on first lien, senior secured E&P lending – the “sweet spot” in energy lending Oil & Gas . Producers Internal staff of 13 petroleum engineers and 84% engineering t

  10. Slide 10: Healthcare Banking Expertise

    Healthcare Banking Expertise . Growing line of business within commercial banking . As of March 31, 2018, outstandings totaled $2.4 billion across 31 states . Healthcare portfolio characteristics: . Favorable LIBOR spreads . Above-average loan utilization rates . Predominately BOK Financial originat

  11. Slide 11: Commercial Real Estate

    Commercial Real Estate . $3.5 billion outstanding and $1.2 billion CRE Portfolio by Product Type unfunded commitments at 3/31/18 . Primary focus is customers in the BOKF footprint. Multifamily . BOKF allocates 175% of Tier 1 capital plus Retail reserves to CRE. Office . Further controls and limitati

  12. Slide 12: Wealth Management

    Wealth Management . 500 Four primary lines of business: Wealth Management Revenue . The Private Bank 400 . BOK Financial Advisors CAGR: 9.8% . Institutional Wealth Management 300 . Cavanal Hill Investment Management 200 . Clients include high net worth individuals, corporations, pensions, foundation

  13. Slide 13: Transaction Processing

    Transaction Processing Debit Processing & ATM Network 800 EFT Transaction 700 Volumes (M) . Among the top 10 networks in the US 600 . CAGR: 7.2% Operates nationally with customers based in 26 500 states and the Virgin Islands; more than 65% of 400 clients outside Oklahoma 300 . Clients: Banks / Cred

  14. Slide 14: Mortgage Banking

    Mortgage Banking 160,000 . Top 50 U.S. mortgage originator 140,000 120,000 . Three lines of business: 100,000 . Direct mortgage origination through 80,000 BOKF branches 60,000 . Growing online sales channel – 40,000 HomeDirect Mortgage 20,000 . Mortgage Servicing - 2013 2014 2015 2016 2017 . Annual

  15. Slide 15: 1Q 2018 Financial Results

    © BOK FINANCIAL 1Q 2018 Financial Results

  16. Slide 16: First Quarter Summary

    First Quarter Summary: Net Income $105.6 $88.1 Q1 2018 Q4 2017 Q1 2017 $88.4 $85.6 $72.5 Diluted EPS $1.61 $1.11 $1.35 $1.61 Net income before $136.3 $126.7 $126.8 $1.35 $1.35 $1.31 $1.11 taxes ($M) Net income $105.6 $72.5 $88.4 attributable to BOKF shareholders ($M) 1Q17 2Q17 3Q17 4Q17 1Q18 Net inc

  17. Slide 17: Loan Portfolio

    Loan Portfolio Seq. YOY Mar 31 Dec 31 Mar 31 Loan Loan ($mil) 2018 2017 2017 Growth Growth Energy $2,969.6 $2,930.2 $2,537.1 1.3% 17.0% Services 2,928.3 2,986.9 3,013.4 (2.0%) (2.8%) Healthcare 2,359.9 2,314.8 2,265.6 1.9% 4.2% Wholesale/retail 1,531.6 1,471.3 1,506.2 4.1% 1.7% Manufacturing 559.7 4

  18. Slide 18: Net Interest Revenue

    Net Interest Revenue Net Interest Margin Q1 Q4 Q3 Q2 Q1 ($mil) 2018 2017 2017 2017 2017 Net Interest Revenue $219.7 $216.9 $218.5 $205.2 $201.2 Provision For Credit Losses ($5.0) ($7.0) $ -- $ -- $ -- Net Interest Revenue After Provision $224.7 $223.9 $218.5 $205.2 $201.2 Net Interest Margin 2.99% 2

  19. Slide 19: Fees and Commissions

    Fees and Commissions Revenue, $mil Change: Quarterly, Quarterly, Trailing Q1 18 Sequential Year over Year 12 Months Brokerage and Trading $30.6 (7.3%) (8.9%) (7.9%) Transaction Card 21.0 4.8% 15.5% (4.4%) Fiduciary and Asset Management 41.8 0.2% 8.3% 16.9% Deposit Service Charges and Fees 27.2 (1.9%

  20. Slide 20: Expenses

    Expenses %Incr. %Incr. ($mil) Q1 2018 Q4 2017 Q1 2017 Seq. YOY Personnel Expense $139.9 $145.3 $136.4 (3.7%) 2.6% Other Operating Expense $104.5 $109.2 $99.1 (4.3%) 5.4% Total Operating Expense $244.4 $254.5 $235.5 (3.9%) 3.8% • Personnel expense down in Q1 due to lower-than-expected incentive compe

  21. Slide 21: Key Credit Quality Metrics

    Key Credit Quality Metrics $250.0 $245.4 $225.6 $207.6 1.50% $200.0 $187.9 $180.1 Net charge offs (annualized) to average loans 1.00% $150.0 0.50% 0.27% $100.0 0.08% 0.04% -0.02% 0.03% 0.00% $50.0 $- -0.50% 1Q17 2Q17 3Q17 4Q17 1Q18 1Q17 2Q17 3Q17 4Q17 1Q18 Energy Non-Accruals Other Non-Accruals Comb

  22. Slide 22: Forecast and Assumptions

    Forecast and Assumptions 2018 Expectations . Mid-single-digit loan growth . Available-for-sale securities flat to slightly down . Modest growth in net interest margin . Assuming two additional Fed rate hikes in 2018 (June and September) with continued active management and control of deposit pricing

  23. Slide 23: Thank You!

    © BOK FINANCIAL Thank You!

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