Bok Financial Corporation · NASDAQ:BOKF
Bok Financial — Q3 2019 Earnings Presentation
16 slides from Bok Financial's earnings presentation, Oct 23, 2019
Slide 1: Third Quarter 2019 Earnings Conference Call
Third Quarter 2019 Earnings Conference Call October 23, 2019 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: Third Quarter Summary
Third Quarter Summary Net Income $142.2 $137.6 Q3 Q2 Q3 $117.3 2019 2019 2018 $110.6 $2.00 $108.5 $1.93 Diluted EPS $2.00 $1.93 $1.79 $1.79 $1.54 Net income before taxes $174.3 $175.4 $152.2 $1.50 Net income attributable to BOKF shareholders $142.2 $137.6 $117.3 3Q18 4Q18 1Q19 2Q19 3Q19 Net income a
Slide 5: Additional Details
Additional Details Quarterly Annualized ($bil) Q3 2019 Growth Growth Average Loans $22.4 1.9% 7.4% Period-End Loans $22.3 0.1% 0.5% Average Deposits $25.7 2.1% 8.5% Period-End Deposits $26.2 3.4% 13.6% Fiduciary Assets $49.3 (0.1)% (0.3)% Assets Under Management or in Custody $80.8 (1.2)% (4.8)% • A
Slide 6: Stacy Kymes, EVP-Corporate Banking
Stacy Kymes EVP-Corporate Banking 6
Slide 7: Loan Portfolio
Loan Portfolio Seq. Sep 30, Jun 30, Loan ($mil) 2019 2019 Growth Energy $4,114.3 $3,921.4 4.9% Services 3,266.2 3,309.5 (1.3)% Healthcare 3,033.0 2,926.5 3.6% Wholesale/retail 1,848.6 1,793.1 3.1% Manufacturing 698.4 761.4 (8.3)% Public Finance 744.8 795.7 (6.4)% Other 719.3 829.5 (13.3)% Total C&I
Slide 8: Key Credit Quality Metrics
Key Credit Quality Metrics Non-accruals Net charge-offs (annualized) to average loans $183.8 0.40% $172.5 $163.2 $153.0 $152.6 0.23% 0.20% 0.19% 0.19% 0.20% 0.14% 0.00% 3Q18 4Q18 1Q19 2Q19 3Q19 3Q18 4Q18 1Q19 2Q19 3Q19 Energy Healthcare CRE Residential and Other • Total non-accrual loans down $11.3
Slide 9: Steven Nell, Chief Financial Officer: Financial Overview
Steven Nell Chief Financial Officer Financial Overview 9
Slide 10: Net Interest Revenue and Margin
Net Interest Revenue and Margin ($mil) Q3 2019 Q2 2019 Q1 2019 Q4 2018 Q3 2018 Net interest revenue $279.1 $285.4 $278.1 $285.7 $240.9 Provision for credit losses $12.0 $5.0 $8.0 $9.0 $4.0 NIR after provision $267.1 $280.4 $270.1 $276.7 $236.9 Net interest margin 3.01% 3.30% 3.30% 3.40% 3.21% • Net
Slide 11: Fees and Commissions
Fees and Commissions Revenue, $mil Growth: Quarterly, Trailing 12 Q3 2019 Sequential Months Brokerage and Trading $43.8 8.2% 16.8% Transaction Card 22.0 0.5% 0.7% Fiduciary and Asset Management 43.6 (3.1)% (7.3)%* Deposit Service Charges and Fees 28.8 2.7% 0.9% Mortgage Banking 30.2 7.3% 6.8% Other
Slide 12: Expenses
Expenses %Incr. %Incr. ($mil) Q3 2019 Q2 2019 Q3 2018 Seq. Annualized Personnel expense $162.6 $160.3 $143.5 1.4% 5.6% Non-personnel expense $116.7 $116.8 $109.1 (0.1)% (0.3)% Total operating expense $279.3 $277.1 $252.6 0.8% 3.1% Efficiency Ratio 59.31% 59.51% 61.60% • Personnel expense up $2.2 mil
Slide 13: Forecast and Assumptions
Forecast and Assumptions • Mid-single digit loan growth from C&I categories expected for the remainder of the year. • Provision level in fourth quarter influenced more by loan growth as opposed to any expected credit deterioration. • We expect one additional rate decrease before year-end, and are pl
Slide 14: CECL
CECL • CECL models have been developed, tested and validation is being finalized. • Based on the results of test runs, our allowance committee expects the pre- tax transition adjustment from CECL implementation will be between $50 million and $75 million. COBZ Acquired loans GNMA VA loans Other liab
Slide 15: Closing Remarks
Steven G. Bradshaw Chief Executive Officer Closing Remarks 15
Slide 16: Question and Answer Session
Question and Answer Session 16