Bok Financial Corporation · NASDAQ:BOKF
Bok Financial — Q4 2019 Earnings Presentation
15 slides from Bok Financial's earnings presentation, Jan 22, 2020
Slide 1: Fourth Quarter 2019 Earnings Conference Call
Fourth Quarter 2019 Earnings Conference Call January 22, 2020 1
Slide 2: Legal Disclaimers
Legal Disclaimers 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 constit
Slide 3: Steven G. Bradshaw, Chief Executive Officer
Steven G. Bradshaw Chief Executive Officer 3
Slide 4: Fourth Quarter Summary
Fourth Quarter Summary Net Income- Annual Net Income- Quarter $142.2 $137.6 $500.8 $445.6 $110.6 $2.00 $110.4 $1.93 $334.6 $7.03 $108.5 $6.63 $5.11 $1.54 $1.56 $1.50 2017 2018 2019 4Q18 1Q19 2Q19 3Q19 4Q19 Net income attributable to shareholders Net income attributable to shareholders Earnings per s
Slide 5: Additional Details
Additional Details Quarterly Year over ($bil) Q4 2019 Growth Year Growth Period-end Loans $21.8 (2.4)% 0.4% Average Loans $22.2 (0.8)% 3.0% Period-end Deposits $27.6 5.6% 9.3% Average Deposits $27.1 5.4% 8.0% Fiduciary Assets $52.4 6.1% 16.6% Assets Under Management or in Custody $82.7 2.3% 8.4% • Q
Slide 6: Stacy Kymes, EVP-Corporate Banking
Stacy Kymes EVP-Corporate Banking 6
Slide 7: Loan Portfolio
Loan Portfolio Seq. Dec 31, Sept 30, Dec 31, Loan YOY Loan ($mil) 2019 2019 2018 Growth Growth Energy $3,973.4 $4,114.3 $3,590.3 (3.4)% 10.7% Services 3,122.2 3,266.2 3,258.2 (4.4)% (4.2)% Healthcare 3,033.9 3,033.0 2,799.3 --% 8.4% Wholesale/retail 1,760.9 1,848.6 1,621.2 (4.7)% 8.6% Manufacturing
Slide 8: Key Credit Quality Metrics
Key Credit Quality Metrics Non-accruals Net charge-offs (annualized) to average loans $183.8 $181.0 0.40% $172.5 $163.2 $152.6 0.23% 0.22% 0.19% 0.19% 0.20% 0.14% 0.00% 4Q18 1Q19 2Q19 3Q19 4Q19 4Q18 1Q19 2Q19 3Q19 4Q19 Energy Healthcare CRE Residential and Other • Total non-accrual loans up $8.5 mil
Slide 9: Steven Nell, Chief Financial Officer: Financial Overview
Steven Nell Chief Financial Officer Financial Overview 9
Slide 10: Net Interest Revenue and Margin
Net Interest Revenue and Margin ($mil) Q4 2019 Q3 2019 Q2 2019 Q1 2019 Q4 2018 Net interest revenue $270.2 $279.1 $285.4 $278.1 $285.7 Provision for credit losses $19.0 $12.0 $5.0 $8.0 $9.0 NIR after provision $251.2 $267.1 $280.4 $270.1 $276.7 Net interest margin 2.88% 3.01% 3.30% 3.30% 3.40% • Net
Slide 11: Fees and Commissions
Fees and Commissions Revenue, $mil Growth: Quarterly, Quarterly, Year over Trailing 12 Q4 2019 Sequential Year Months Brokerage and Trading $43.8 —% 56.0% 10.9% Transaction Card 22.5 2.4% 9.1% 2.2% Fiduciary and Asset Management 45.0 3.2% 3.1% (0.8)% Deposit Service Charges and Fees 27.3 (5.2)% (7.0
Slide 12: Expenses
Expenses %Incr. %Incr. ($mil) Q4 2019 Q3 2019 Q4 2018 Seq. YoY Personnel expense $168.4 $162.6 $160.7 3.6% 4.8% Non-personnel expense $120.4 $116.7 $123.9 3.1% (2.9)% Total operating expense $288.8 $279.3 $284.6 3.4% 1.5% Efficiency Ratio 63.65% 59.31% 63.25% • Personnel expense up $5.8 million larg
Slide 13: Forecast and Assumptions
Forecast and Assumptions • Average securities balances remain comparable to current levels as we manage to a relatively neutral interest rate risk position. • Average loan growth around three to four percent, with lower growth in Energy compared to 2019. • Average deposits are expected to cover loan
Slide 14: Steven G. Bradshaw, Chief Executive Officer: Closing Remarks
Steven G. Bradshaw Chief Executive Officer Closing Remarks 14
Slide 15: Question and Answer Session
Question and Answer Session 15