Bok Financial Corporation · NASDAQ:BOKF
Bok Financial — Investor Presentation (2017)
23 slides from Bok Financial's investor presentation, 2017
Slide 1: Investor Presentation
Investor Presentation NASDAQ: BOKF 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: BOK Financial: A Regional Banking Powerhouse
BOK Financial: A Regional Banking Powerhouse One of the largest U.S. bank holding companies Valuable Midwest / Southwest franchise Seasoned management team Proven ability to deliver organic growth Consistent execution Sept. 30, 2017 Assets $33 billion Consistent strategy: Loans $17 billi
Slide 4: Core Strategy: Build a recession proof bank
Core Strategy: Build a recession proof bank that will outperform peers across the economic cycle Disciplined credit focus Robust portfolio of fee generating As of 9/30/17 10 Yr. TSR 15 Yr. TSR businesses BOKF 123% 285% Largely focused on organic growth Peer average 66% 184% Neutral balance s
Slide 5: Diverse Revenue Sources
Diverse Revenue Sources Sources of Revenue: 12 months ended 9/30/17 Revenue CAGR 2011–2016 Brokerage and Trading 6% Transaction Card 3% Brokerage & Trust Fees 13% Trading 9% Service Charges 1% Mortgage Banking 8% Net Interest 55% Transaction Card Overall CAGR 5% 9% TTM fees and commissions ($mm) Tru
Slide 6: Strong Balance Sheet
Strong Balance Sheet Metric: At September Notes: 30, 2017 Period End Deposits $21.8 billion LTM deposit growth of 3.6 percent Capital Ratios: Excess over regulatory minimum for well-capitalized: Common Equity Tier 1 11.9% 540 basis points Tier 1 Capital Ratio 11.9% 390 basis points Total Capital Rat
Slide 7: Strong Core Deposit Franchise
Strong Core Deposit Franchise Deposit mix and cost ($bn) Geographic deposit mix Demand Interest-bearing transaction Savings Time $24 $23 $23 TX $22 $22 27% $21 10% 2% $18 NM OK 7% 52% AR 1% CO 7% 45% $12 AZ KC 2% 4% MSA Branches Deposit share Tulsa, OK 23 30.0% Dallas-Fort Worth-Arlington, TX 21 1.5
Slide 8: Diversified Loan Portfolio
Diversified Loan Portfolio Loan Portfolio Segmentation Loan Portfolio by Geography: CRE Residential 20% Mortgage 11% TX 34% OK Other C&I 3% 20% Wholesale/Ret ail Mfr 3% 10% Personal 6% NM Other 5% Healthcare Services 13% 17% 20% CO 8% Energy KS/MO AZ 5% 17% 8% Disciplined concentration management Di
Slide 9: Energy Lending Update
Energy Lending Update 6% Oil & Gas 11% Producers Midstream & Other 83% Energy Services At 9/30/17: $5.6 billion commitments $2.9 billion outstanding E&P line utilization 55% 20 year average gross loss rate on E&P loans Q3 energy net chargeoffs $4.1 million (gross chargeoffs as a percent of p
Slide 10: Healthcare Banking Expertise
Healthcare Banking Expertise Growing line of business within commercial banking Five year CAGR 17.7% through 12/31/16 As of September 2017, commitments totaled $2.2 billion across 35 states and three categories: Senior Housing Hospitals Service Medical Healthcare portfolio characterist
Slide 11: Wealth Management
Wealth Management Four primary lines of business: The Private Bank BOK Financial Advisors Institutional Wealth Management Cavanal Hill Compounded Annual Revenue Growth 2011-2016: 8.4% Assets under management or custody: $78 billion Fiduciary assets: $45 billion Loans: Over $1 billi
Slide 12: Transaction Processing
Transaction Processing Debit Processing & ATM Network 600 EFT Transaction Volumes (M) Among the top 10 networks in the US 500 CAGR: 8.18% Operates nationally with customers based in 26 400 states and the Virgin Islands; more than 65% of 300 clients outside Oklahoma 200 Clients: Banks / Credit
Slide 13: Mortgage Banking
Mortgage Banking 160,000 Top 50 U.S. mortgage originator 140,000 120,000 Growing online sales channel – 100,000 HomeDirect Mortgage 80,000 60,000 Annual origination volume ~ $6 billion 40,000 Servicing $22 billion of mortgages at 20,000 9/30/17 - 2013 2014 2015 2016 TTM Sep '17 Originating a
Slide 14: Q3 2017 Financial Results
© BOK FINANCIAL ‘N Q3 2017 Financial Results
Slide 15: Third Quarter Summary
Third Quarter Summary: Net Income $88.4 $88.1 $85.3 Q3 2017 Q2 2017 Q3 2016 $74.3 Diluted EPS $1.31 $1.35 $1.13 Net income before $128.2 $136.6 $107.1 $50.0 taxes ($M) $1.35 $1.35 $1.30 $1.13 Net income $85.6 $88.1 $74.3 $0.76 attributable to BOKF shareholders ($M) 3Q16 4Q16 1Q17 2Q17 3Q17 Net incom
Slide 16: Additional Details
Additional Details Annualized Quarterly Quarterly Year over Year ($B) Q3 2017 Growth Growth Growth Period-End Loans $17.2 0.1% 0.5% 4.5% Average Loans $17.3 0.8% 3.0% 4.9% Fiduciary Assets $45.9 1.72% 6.88% 8.1% Assets Under Management $77.7 (0.2%) (0.8%) 3.2% or in Custody • Commercial real estate
Slide 17: Loan Portfolio
Loan Portfolio Seq. Sept. 30 June 30 Loan ($mil) 2017 2017 Growth Energy $2,868.0 $2,847.2 0.7% Services 2,967.5 2,958.8 0.3% Healthy mid-single-digit annualized growth in C&I. Healthcare 2,239.5 2,221.5 0.8% Paydowns accelerating in CRE Wholesale/retail 1,658.1 1,543.7 7.4% as more borrowers ar
Slide 18: Net Interest Revenue and Net Interest Margin
Net Interest Revenue Net Interest Margin Q3 Q2 Q1 Q4 Q3 ($mil) 2017 2017 2016 2016 2016 Net Interest Revenue $218.5 $205.2 $201.2 $194.2 $187.8 Provision For Credit Losses $ -- $ -- $ -- $ -- $10.00 Net Interest Revenue After Provision $218.5 $205.2 $201.2 $194.2 $177.8 Net Interest Margin 3.01% 2.8
Slide 19: Fees and Commissions
Fees and Commissions Revenue, $mil Change: Quarterly, Quarterly, Trailing 12 Q3 17 Sequential Year over Year Months Brokerage and Trading $33.2 4.4% (12.7%) (9.3%) Transaction Card 37.8 7.2% 11.5% 4.7% Fiduciary and Asset Management 40.7 (2.7%) 19.4% 17.8% Deposit Service Charges and Fees 23.2 (0.6%
Slide 20: Expenses
Expenses %Incr. %Incr. ($mil) Q3 2017 Q2 2017 Q3 2016 Seq. YOY Personnel Expense $147.9 $143.7 $139.2 2.9% 6.2% Other Operating Expense $118.0 $107.1 $118.9 8.5% (2.2%) Total Operating Expense $265.9 $250.9 $258.1 5.3% 2.3% Personnel Expense: • Q3 2017 includes $5.9 million in performance based ince
Slide 21: Key Credit Quality Metrics
Key Credit Quality Metrics $250.0 $237.0 $231.0 1.50% $222.5 $207.6 $207.9 Net charge offs (annualized) $200.0 to average loans 94.0 1.00% $98.5 $98.5 $97.2 $97.2 $150.0 0.50% 0.15% 0.08% $100.0 -0.03% 0.00% $143.0 $132.5 $124.0 0.04% $50.0 $110.4 $110.7 -0.02% -0.50% 3Q16 4Q16 1Q17 2Q17 3Q17 $- 3Q1
Slide 22: Forecast and Assumptions
Forecast and Assumptions Q4 / 2017 full year expectations: Preliminary 2018 Expectations Period end loan balances expected to be Low-single-digit loan growth flat to up slightly from the third quarter Available-for-sale securities flat to slightly Available-for-sale securities portfolio down
Slide 23: Thank You!
© BOK FINANCIAL Thank You! ‘N