Bok Financial Corporation · NASDAQ:BOKF
Bok Financial — Investor Presentation (November 2023)
25 slides from Bok Financial's investor presentation, November 2023
Slide 1: Investor Presentation November 2023
Investor Presentation November 2023
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: Financial Results Q3 2023
Financial Results Q3 2023 3
Slide 4: Summary Financial Statements
Summary Financial Statements Sep. 30, June 30, Sep. 30, Linked-Quarter Commentary ($Million) 2023 2023 2022 $20,189 $19,314 $16,289 Growth due primarily to trading securities, as our desks continue to take advantage Average Securities of improved market opportunities. Average Loans $23,414 $22,889 $
Slide 5: Q3 summary
Q3 summary Noteworthy items impacting profitability Quarterly earnings trend NET INCOME • We continue to benefit from our diverse fee-based businesses, with Fees & Commissions down slightly linked quarter; Q2 was Attributable to shareholders Per share (diluted) at near record levels driven by strong
Slide 6: Loan portfolio
Loan portfolio Seq. Loan YOY Loan • Energy balances decreased slightly ($Million) Sep. 30, 2023 June 30, 2023 Sep. 30, 2022 Growth Growth by $18 million Energy $ 3,490.6 $ 3,508.8 $ 3,371.6 (0.5)% 3.5% • Combined Services & General Services 3,566.4 3,585.2 3,280.9 (0.5)% 8.7% Business ("Core C&I") b
Slide 7: Yields, rate & margin
Yields, rate & margin Quarterly Quarterly Net interest revenue ($Million) Q3 2023 Q2 2023 Q3 2022 sequential YOY • Net interest revenue was down linked quarter as the Net interest revenue $300.9 $322.3 $316.3 (6.6)% (4.9)% financial sector continues to experience increased funding costs; offsetting
Slide 8: Liquidity & capital
Liquidity & capital Q3 2023 Q2 2023 Q3 2022 Loan to Deposit Ratio 70.5% 69.8% 59.8% • Period-end deposit balances increased $358 million this quarter Period-End Deposits $33.7 billion $33.3 billion $36.4 billion Current available secured • Potential secured capacity was $23.0 billion, which reflects
Slide 9: Fees & commissions
Fees & commissions Brokerage & trading • Linked quarter decrease due to a record Q2 Qtr. Seq. Qtr. Seq. Qtr. YOY ($Million) Q3 2023 for energy customer hedging fees, partially $ Change % Change % Change offset with a record Q3 for our Public & Trading fees $ 34.5 $ (2.5) (6.7)% 30.2% Corporate Finan
Slide 10: Expenses
Expenses Expenses summary % Incr. % Incr. • Quarterly personnel expenses ($Million) Q3 2023 Q2 2023 Q3 2022 Seq. YOY increased 0.1%, with increases in regular compensation from Personnel expense $190.8 $190.7 $170.3 0.1% 12.0% business expansion efforts offset by seasonal declines in payroll taxes.
Slide 11: Key credit quality metrics
Key credit quality metrics Quality metrics summary Net charge-offs to average loans ANNUALIZED • Credit quality better than pre-pandemic level • Trailing 12 months net charge-offs at 13 basis points • Limited CRE office exposure, with properties in resilient markets • $7 million credit provision in
Slide 12: Forecast & assumptions
Forecast & assumptions • We continue to expect upper single digit annualized loan growth. Economic conditions in our geographic footprint remain favorable, and continue to be supported by business in-migration from other markets. The competitive environment for loans should be a tailwind for us. • W
Slide 13: BOK Financial Corp
BOK Financial Corp 13
Slide 14: BOK Financial Corporation: Corporate snapshot
NASDAQ: BOKF BOK Financial Corporation CONSUMER, COMMERCIAL & BROKER/DEALER & Corporate snapshot MORTGAGE BANKING INDEPENDENT ADVISORY SERVICES • Top 30 national/regional bank* BOK Financial ® BOK Financial Securities • Midwest/Southwest franchise Bank of Texas BOK Financial Advisors Bank of Albuque
Slide 15: Core strategy
Core strategy Build a bank with diverse Earnings per share CAGR across 30 year history of BOKF is 9.5% revenues that can compete upstream and outperform peers across varying economic cycles. "There is no principle more emphasized in our organization than managing for long-term value rather than shor
Slide 16: Diverse revenue sources
Diverse revenue sources Well diversified Revenue composition as of 9/30/2023 35%-40% of total revenues come from a diverse set of well-established fee income businesses, a differentiator compared to other midsized regional banks Additional fee income categories: Net interest revenue Brokerage & trad
Slide 17: Strong core deposit franchise
Strong core deposit franchise Deposit Deposit mix & cost ($million) Geographic deposit mix MSA Branches share Tulsa, OK 21 30% Demand Interest-bearing transaction Dallas/Fort Worth/Metro, TX 20 1% Savings Time Oklahoma City, OK 15 12% 11% 4% Albuquerque, NM 13 9% Denver/Metro, CO 13 3% 9% 4% 7% 49%
Slide 18: Diversified loan portfolio
Diversified loan portfolio Disciplined concentration management, diversified by sector & geography Loan segmentation Collateral location as of 9/30/2023 as of 9/30/2023 Commercial real estate Texas Healthcare Oklahoma Loans to individuals Colorado Services Arizona Energy Kansas/Missouri General busi
Slide 19: Energy banking
Energy banking Portfolio composition More than 100-year history in energy lending as of 9/30/2023 and a playbook that works • Focus on first lien, senior secured E&P lending, the “sweet spot” in energy lending. • Internal staff of 16 petroleum engineers and engineering techs to confirm Oil & gas pro
Slide 20: Healthcare banking
Healthcare banking Portfolio composition Outstandings totaled $4.1 billion across as of 9/30/2023 35 states at 9/30/2023 Healthcare portfolio characteristics: Senior housing • Favorable spreads Hospitals • Above-average loan utilization rates Service medical • Predominately BOK Financial originated
Slide 21: Commercial real estate
Commercial real estate Portfolio composition as of 9/30/2023 $5.2 billion outstanding and $2.0 billion BY PRODUCT TYPE unfunded commitments at 9/30/2023 Multifamily Industrial • BOKF allocates 185% of Tier 1 capital plus reserves to CRE. Office • Further controls and limitations by product type and
Slide 22: Wealth Management
Wealth Management Wealth Management revenue as of 9/30/2023 FEE INCOME AND NET INTEREST REVENUE Primary lines of business ($Million) • Private Wealth, including banking and investment management, trust and estate administration Fee income • Brokerage & trading services Net interest revenue • Institu
Slide 23: Transaction processing
Transaction processing Transaction processing volume as of 12/31/2022 EFT TRANSACTION VOLUMES Debit processing & ATM network (Million) • Operates nationally • More than 72% of clients are outside of Oklahoma • Clients: banks, credit unions and C-store chains • 800 million EFT transactions processed
Slide 24: Mortgage banking
Mortgage banking Mortgage banking revenue as of 9/30/2023 SERVICING, ORIGINATING AND MARKETING REVENUE Top 50 U.S. mortgage originator ($Million) • Annual origination volume in 2022 was $1.1 billion Servicing • Servicing an average of $20.7 billion of mortgages at Originating & marketing September 3
Slide 25: BOK Financial Corporation
BOK FINANCIAL CORPORATION
BOK Financial — Investor Presentation (November 2023) on 6ix