Bok Financial Corporation · NASDAQ:BOKF
Bok Financial — Q3 2017 Earnings Presentation
16 slides from Bok Financial's earnings presentation, Oct 25, 2017
Slide 1: Third Quarter 2017 Earnings Conference Call
Third Quarter 2017 Earnings Conference Call October 25, 2017 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: Steven G. Bradshaw, Chief Executive Officer
Steven G. Bradshaw Chief Executive Officer 3
Slide 4: Third Quarter Summary
Third Quarter Summary: Net Income $88.4 $88.1 $85.6 Q3 2017 Q2 2017 Q3 2016 $74.3 Diluted EPS $1.31 $1.35 $1.13 Net income before $128.2 $136.6 $107.1 $50.0 taxes ($M) $1.35 $1.35 $1.31 $1.13 Net income $85.6 $88.1 $74.3 $0.76 attributable to BOKF shareholders ($M) 3Q16 4Q16 1Q17 2Q17 3Q17 Net incom
Slide 5: Additional Details
Additional Details Annualized Quarterly Quarterly Year over Year ($B) Q3 2017 Growth Growth Growth Period-End Loans $17.2 0.1% 0.5% 4.5% Average Loans $17.3 0.8% 3.0% 4.9% Fiduciary Assets $45.2 0.2% 0.78% 8.1% Assets Under Management $77.7 (0.2%) (0.8%) 3.2% or in Custody • Commercial real estate a
Slide 6: Steven Nell, Chief Financial Officer: Financial Overview
Steven Nell Chief Financial Officer Financial Overview 6
Slide 7: Net Interest Revenue and Net Interest Margin
Net Interest Revenue Net Interest Margin Q3 Q2 Q1 Q4 Q3 ($mil) 2017 2017 2016 2016 2016 Net Interest Revenue $218.5 $205.2 $201.2 $194.2 $187.8 Provision For Credit Losses $ -- $ -- $ -- $ -- $10.00 Net Interest Revenue After Provision $218.5 $205.2 $201.2 $194.2 $177.8 Net Interest Margin 3.01% 2.8
Slide 8: Fees and Commissions
Fees and Commissions Revenue, $mil Change: Quarterly, Quarterly, Trailing 12 Q3 17 Sequential Year over Year Months Brokerage and Trading $33.2 4.4% (12.7%) (9.3%) Transaction Card 37.8 7.2% 11.5% 4.7% Fiduciary and Asset Management 40.7 (2.7%) 19.4% 17.8% Deposit Service Charges and Fees 23.2 (0.6%
Slide 9: Expenses
Expenses %Incr. %Incr. ($mil) Q3 2017 Q2 2017 Q3 2016 Seq. YOY Personnel Expense $147.9 $143.7 $139.2 2.9% 6.2% Other Operating Expense $118.0 $107.1 $118.9 8.5% (2.2%) Total Operating Expense $265.9 $250.9 $258.1 5.3% 2.3% Personnel Expense: • Q3 2017 includes $5.9 million in performance based ince
Slide 10: Forecast and Assumptions
Forecast and Assumptions Q4 / 2017 full year expectations: Preliminary 2018 Expectations Period end loan balances expected to be Low-single-digit loan growth flat to up slightly from the third quarter Available-for-sale securities flat to slightly Available-for-sale securities portfolio down
Slide 11: Stacy Kymes, EVP-Corporate Banking
Stacy Kymes EVP-Corporate Banking 11
Slide 12: Loan Portfolio
Loan Portfolio Seq. Sept. 30 June 30 Loan ($mil) 2017 2017 Growth Energy $2,868.0 $2,847.2 0.7% Services 2,967.5 2,958.8 0.3% Healthy mid-single-digit annualized growth in C&I. Healthcare 2,239.5 2,221.5 0.8% Paydowns accelerating in CRE Wholesale/retail 1,658.1 1,543.7 7.4% as more borrowers ar
Slide 13: Key Credit Quality Metrics
Key Credit Quality Metrics $250.0 $237.0 $231.0 1.50% $222.5 $207.6 $207.9 Net charge offs (annualized) $200.0 to average loans 94.0 1.00% $98.5 $98.5 $97.2 $97.2 $150.0 0.50% 0.15% 0.08% $100.0 -0.03% 0.00% $143.0 $132.5 $124.0 0.04% $50.0 $110.4 $110.7 -0.02% -0.50% 3Q16 4Q16 1Q17 2Q17 3Q17 $- 3Q1
Slide 14: Energy Lending Update
Energy Lending Update 6% Oil & Gas 11% Producers Midstream & Other 83% Energy Services At 9/30/17: $5.6 billion commitments $2.9 billion outstanding E&P line utilization 55% 20 year average gross loss rate on E&P loans Q3 energy net chargeoffs $4.1 million (gross chargeoffs as a percent of p
Slide 15: Closing Remarks
Steven G. Bradshaw Chief Executive Officer Closing Remarks 15
Slide 16: Question and Answer Session
Question and Answer Session 16