Bok Financial Corporation · NASDAQ:BOKF
Bok Financial — Investor Presentation (May 2024)
23 slides from Bok Financial's investor presentation, May 2024
Slide 1: Investor Presentation May 2024
Investor Presentation May 2024
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: 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 • 113 full-serv
Slide 4: Core Strategy
Core Strategy Build a bank with diverse Earnings per share CAGR across 30 year history of BOKF is 9.3% revenues that can $650,000 $10.00 compete upstream and $600,000 $9.00 $550,000 outperform peers across $500,000 $8.00 $7.00 varying economic cycles. $450,000 $400,000 $6.00 $350,000 $5.00 $300,000
Slide 5: Diversified Loan Portfolio
Diversified Loan Portfolio Disciplined concentration management, diversified by sector & geography Loan Segmentation Collateral Location as of 3/31/2024 as of 3/31/2024 15% 32% 22% Commercial real estate Texas 30% Healthcare Oklahoma Loans to individuals Colorado 14% Services Arizona Energy Kansas/M
Slide 6: Diversified Loan Portfolio: Portfolio composition
Diversified Loan Portfolio Portfolio composition Energy Banking as of 3/31/2024 • More than 100-year history in energy lending 5% • Focus on first-lien, senior-secured E&P lending, the "sweet spot" in energy lending 18% • Internal staff of 17 petroleum engineers and analysts to confirm collateral va
Slide 7: Strong Core Deposit Franchise
Strong Core Deposit Franchise Deposit Mix & Cost ($million) Deposit Mix by Geography Deposit Mix by Line of Business Demand Total Deposit Breakdown Interest-bearing transaction Savings 5% Time 20% 28% $45,000 10% 4% 4% $40,000 2% $35,000 4% 9% 10% 5% 6% 52% 3% 2% 2% $30,000 $25,000 $20,000 57% 54% 6
Slide 8: Wealth Management
Wealth Management Wealth Management Revenue as of 3/31/2024 Primary Lines of Business Fee Income and Net Interest Revenue ($Million) • Private Wealth, including banking and investment management, trust and estate administration Fee income • Brokerage & trading services Net interest revenue • Institu
Slide 9: Transaction Processing
Transaction Processing Transaction Processing Volume as of 12/31/2023 EFT TRANSACTION VOLUMES Debit Processing & ATM Network (Million) • Operates nationally • More than 75% of clients are outside of Oklahoma • Clients: Banks, Credit Unions and C-store chains • 800+ million EFT transactions processed
Slide 10: Mortgage Banking
Mortgage Banking Mortgage Banking Revenue as of 3/31/2024 Servicing and Origination Revenue • Retail origination channel that has averaged $2.3 ($Million) billion in origination volume over the last 5-years Servicing ◦ YTD Net Promoter Score of 90 vs. national Origination benchmark of 49 TTM March 2
Slide 11: Q1 Financial Highlights
Q1 Financial Highlights Net Income Attributable to shareholders • Net Income of $83.7 million and EPS of $1.29, Per share (diluted) adjusted for the additional FDIC special assessment $162.4 and securities portfolio restructuring income would $151.3 have been $123.2 million and EPS $1.91 per share $
Slide 12: Additional Details
Additional Details Quarterly Quarterly ◦ Period end loan balances grew $268 ($Billion) Q1 2024 Sequential YOY million; unfunded commitments decreased $359 million Period-End Loans $24.2 1.1% 6.3% ◦ Average deposits increased $1.3 Average Loans $23.9 1.0% 6.6% billion in Q1, with the mix continuing t
Slide 13: Credit Resilience
Credit Resilience Disciplined Credit Concentration 100 year history in energy lending and a tested playbook that works • CRE limit on total committed balances is 185% of tier • 70% oil / 30% gas-weighted borrowers one capital plus reserves • Robust stress testing process and 17 petroleum • Office CR
Slide 14: Loan Portfolio
Loan Portfolio Seq. Loan YOY Loan ($Million) Mar. 31, 2024 Dec. 31, 2023 Mar. 31, 2023 Growth Growth • Energy balances increased by $7 million Energy $ 3,443.7 $ 3,437.1 $ 3,398.1 0.2% 1.3% Services 3,529.4 3,576.2 3,563.7 (1.3)% (1.0)% • Combined Services & General Healthcare 4,245.9 4,143.2 3,899.
Slide 15: Credit Quality Metrics
Credit Quality Metrics • Credit quality remains better than pre-pandemic level Net Charge-Offs to Average Loans with a decline in non-performing assets during the Annualized quarter 0.60% • Trailing 12 months net charge-offs at 10 bps 0.40% • CRE office exposure is less than 4% of outstanding period
Slide 16: Liquidity & Capital
Liquidity & Capital Q1 2024 Q4 2023 Q1 2023 Liquidity Loan to Deposit Ratio 68.3% 70.3% 69.8% • Period-end deposit balances increased $1.4 billion this quarter Period-End Deposits $35.4 billion $34.0 billion $32.6 billion Available Secured Capacity $20.0 billion $18.3 billion $13.6 billion Common Eq
Slide 17: Yields, Rate & Margin
Yields, Rate & Margin Quarterly Quarterly Net Interest Revenue ($Million) Q1 2024 Q4 2023 Q1 2023 sequential YOY • Net interest revenue was down $3.1 million linked quarter, Net interest revenue $293.6 $296.7 $352.3 (1.0)% (16.7)% the slowest pace of decline since the beginning of the hiking cycle N
Slide 18: Fee Income - Markets & Securities
Fee Income - Markets & Securities Trading Fees ($Million) Q1 2024 Qtr. Seq. Qtr. Seq. Qtr. YOY $ Change % Change % Change • Up modestly during the quarter as Trading Fees $ 37.5 $ 1.9 5.4% 35.7% trading activity in fixed income Mortgage Banking 19.0 6.1 47.8% 32.0% markets increased early in the qua
Slide 19: Fee Income - Asset Management & Transactions
Fee Income - Asset Management & Transactions Fiduciary & Asset Management Qtr. Seq. Qtr. Seq. Qtr. YOY ($Million) Q1 2024 $ Change % Change % Change • Assets under management or Markets & Securities $ 78.2 $ 4.4 6.0% 17.0% A administration (“AUMA”) increased slightly during the Fiduciary & Asset Man
Slide 20: Expenses
Expenses • Quarterly personnel expenses were relatively flat with higher ($Million) Q1 2024 Q4 2023 Q1 2023 % Incr. % Incr. seasonal employee benefits Seq. YOY offset by reduced incentive compensation Personnel Expense $202.7 $203.0 $182.1 (0.2)% 11.3% • Other operating expense decreased $43.3 milli
Slide 21: 2024 Full Year Outlook
2024 Full Year Outlook Business Driver FY as of 4/24/24 FY as of 1/24/24 Notes Loans (EOP) +5% to +7% Mid to upper single digit Deposits (EOP) No change Modest growth Loan to deposit ratio is expected to remain in the 70% area Investment Securities No change Flat Assumes 2 rate cuts occurring later
Slide 22: Securities and Interest Rate Risk Position
Securities and Interest Rate Risk Position Securities Portfolio Interest Rate Risk • Short duration with limited extension, current portfolio duration • Approximately 74% of the total loan portfolio is variable rate or is 3.2 years, extending to only 3.7 years if rates increase fixed rate that repri
Slide 23: BOK Financial Corporation
BOK FINANCIAL CORPORATION