Bok Financial Corporation · NASDAQ:BOKF
Bok Financial — Q1 2015 Earnings Presentation
22 slides from Bok Financial's earnings presentation, Apr 29, 2015
Slide 1: First Quarter 2015 Earnings Conference Call
First Quarter 2015 Earnings Conference Call April 29, 2015 Steven G. Bradshaw Steven Nell Chief Executive Officer Chief Financial Officer Stacy Kymes EVP-Corporate Banking 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: Q1 2015 Highlights
Q1 2015 Highlights Q1 2015 Q4 2014 Q1 2014 Net Income $74.8 $64.3 $76.6 Diluted EPS $1.08 $0.93 $1.11 Double digit annualized loan growth Record quarterly revenue from fee-generating businesses, led by mortgage Good expense controls Continued excellent credit quality across the portfolio NOT
Slide 5: Additional Q1 2015 Highlights
Additional Q1 2015 Highlights % Growth, % Growth, $billions Q1 2015 Q4 2014 Q1 2014 Seq. YOY Period-End $14.7 $14.2 $13.1 3.4% 12.3% (13.4% ann.) Loans Avg. Loans 14.6 13.9 12.9 4.8% 12.4% (19.4% ann.) Fiduciary $37.5 $36.0 $31.3 4.2% 19.9% Assets Drivers: • Loans: Continued strong loan growth acros
Slide 6: Steven Nell, Financial Overview
Steven Nell Chief Financial Officer Financial Overview 6
Slide 7: Net Interest Revenue and Margin
Net Interest Revenue and Margin Q1 2015 Q4 2014 Q3 2014 Q2 2014 Q1 2014 Net Interest $167.7 $169.7 $166.8 $166.1 $162.6 Revenue ($mil) Net Interest 2.55% 2.61% 2.67% 2.75% 2.71% Margin NIM dilutive 0.14% 0.14% 0.06% --- --- impact of FHLB/Fed trade Normalized NIM 2.70% 2.75% 2.73% 2.75% 2.71% • 4 ba
Slide 8: Record Quarterly Fees and Commissions Revenue
Record Quarterly Fees and Commissions Revenue ($millions) Q1 2015 % Growth, % Growth, Seq. YOY Brokerage and trading $31.7 3.6% 7.4% Transaction card 31.0 (1.5%) 6.4% Fiduciary and asset management 31.5 2.7% 22.3% Deposit service charges and fees 21.7 (4.0%) (4.4%) Mortgage banking 39.3 30.6% 72.1%
Slide 9: Change in Fair Value of Mortgage Servicing Rights
Change in Fair Value of Mortgage Servicing Rights $8.5 million decrease in MSR value at quarter end driven by continued decrease in interest rates during the quarter Net of hedges P&L impact $5.0 million pretax 10-year treasury rate 1.93% at quarter end, compared to 2.17% at 12/31/14 Q1 2015 Q
Slide 10: Expense Review
Expense Review ($millions) Q1 2015 Q4 2014* Q1 2014 ** %Incr. %Incr. Seq. YOY Personnel Expense $128.5 $124.9 $119.9 2.9% 7.2% Other Operating Expense $ 91.8 $96.1 $80.7 (4.5%) 13.7% Total operating expense $220.3 $221.0 $200.6 (0.3%) 9.8% Total OpEx/Total Rev. 66.0% 67.5% 66.1% • Seasonal increase
Slide 11: Other Balance Sheet Statistics
Other Balance Sheet Statistics Q1 2015 Q4 2014 Q1 2014 Period End AFS Securities $9.2 billion $9.0 billion $9.9 billion Average AFS securities $9.1 billion $9.2 billion $10.1 billion Period End Deposits $21.2 billion $21.1 billion $20.4 billion Average deposits $21.2 billion $20.7 billion $20.2 bill
Slide 12: 2015 Assumptions
2015 Assumptions Continued low-double-digit loan growth NII will increase in 2015 from earning asset composition and stable to improving NIM Provision for credit losses of $15-$20 million Continued mid-single-digit revenue growth from fee-generating businesses Mid-single-digit expense grow
Slide 13: Stacy Kymes, EVP-Corporate Banking
Stacy Kymes EVP-Corporate Banking 13
Slide 14: Loan Portfolio by Geography
Loan Portfolio by Geography ($millions) Mar 31, Dec 31, Sequential Mar 31, Mar 31, YOY 2015 2014 Loan 2015 2014 Loan Growth Growth Oklahoma $5,537.0 $5,419.5 2.2% $5,537.0 $5,061.7 9.4% Texas 5,228.3 4,967.3 5.3% 5,228.3 4,524.1 15.6% Albuquerque 824.1 818.7 0.7% 824.1 801.4 2.8% Arkansas 190.4 196.
Slide 15: Commercial Loan Growth
Commercial Loan Growth Sequential YOY Mar 31, Dec 31, Loan Mar 31, Mar 31, Loan ($millions) 2015 2014 Growth 2015 2014 Growth Energy $2,903.0 $2,860.4 1.5% $2,903.0 $2,344.1 23.8% Services 2,728.4 2,518.2 8.3% 2,728.4 2,232.5 22.2% Wholesale/retail 1,270.3 1,313.3 -3.3% 1,270.3 1,226.0 3.6% Manufact
Slide 16: Commercial Real Estate
Commercial Real Estate Sequential YOY Mar 31, Dec 31, Loan Mar 31, Mar 31, Loan ($millions) 2015 2014 Growth 2015 2014 Growth Residential $139.2 $143.6 -3.1% $139.2 $184.8 -24.7% construction and land development Retail 658.9 666.9 -1.2% 658.9 640.5 2.9% Office 513.9 415.5 23.7% 513.9 436.3 17.8% Mu
Slide 17: Total Loans
Total Loans ($millions) Mar 31, Dec 31, Sequential Mar 31, Mar 31, YOY 2015 2014 Loan 2015 2014 Loan Growth Growth Total Commercial $9,391.2 $9,095.7 3.2% $9,391.2 $8,051.7 16.6% Total CRE 2,935.5 2,728.2 7.6% 2,935.5 2,631.4 11.6% Total Residential 1,927.0 1,949.5 -1.2% 1,927.0 2,018.7 -4.5% Mortga
Slide 18: Loan Yields
Loan Yields Three Months Ended Mar 31, Dec 31, Sep 30, Jun 30, Mar 31, 2015 2014 2014 2014 2014 3.59% 3.73% 3.78% 3.85% 3.89% Loan yield decrease driven by lower average spreads on new loans, Higher average spreads on loan paydowns Interest recoveries enhanced yields in Q3 ‘14 and Q4 ‘14 18
Slide 19: Commercial Banking: Energy Lending
Commercial Banking $2.9 billion energy portfolio at 3/31/15 Energy Lending Core competency of BOK for over 100 years 50-60% loan to value on proved producing reserves Wholesale/ Energy Retail Services Approximately 59% of production loans 3% 8% are secured by oil Midstream 3% Regionally di
Slide 20: Solid Credit Quality at March 31, 2015
Solid Credit Quality at March 31, 2015 Continued Positive Trends Net annualized charge-offs to Alowance for credit losses to average loans: period end loans: (0.23%) 1.35% (Net recoveries in five of the last six quarters) Allowance for credit losses to Non-performing assets to period nonaccru
Slide 21: Closing Remarks
Steven G. Bradshaw Chief Executive Officer Closing Remarks 21
Slide 22: Question and Answer Session
Question and Answer Session 22