Bok Financial Corporation · NASDAQ:BOKF
Bok Financial — Q1 2016 Earnings Presentation
21 slides from Bok Financial's earnings presentation, Apr 27, 2016
Slide 1: First Quarter 2016 Earnings Conference Call
First Quarter 2016 Earnings Conference Call April 27, 2016 1
Slide 2: Forward Looking Statements
Forward Looking Statements: This presentation contains statements that are based on Forward-Looking management’s beliefs, assumptions, current expectations, estimates, and projections about BOK Financial Corporation, the financial services industry, and the economy generally. These remarks constitut
Slide 3: Steven G. Bradshaw, Chief Executive Officer
Steven G. Bradshaw Chief Executive Officer 3
Slide 4: First Quarter Summary
First Quarter Summary: First Quarter Q1 2016 Q4 2015 Q1 2015 Net Income ($mil) $42 6 $42.6 $59 6 $59.6 $74 8 $74.8 Diluted EPS $0.64 $0.89 $1.08 • Noteworthy items impacting Q1 profitability: • Loan loss provision $35 million or $0.35 per share. • MSR mark to market expense, net of hedges of $11.4 m
Slide 5: Additional Q1 2016 Details
Additional Q1 2016 Details % % Growth, Growth, ($bil) Q1 2016 Q4 2015 Seq. Q1 2015 YOY Period-End Loans $16.0 $15.9 0.5% $14.7 9.1% 2.0% ann. Avg. Loans 16.0 15.6 2.6% 14.6 9.9% 10.4% ann. Fiduciary Assets $39.1 $38.3 2.1% $37.5 6.5% Assets Under $71.9 $71.0 1.3% $66.7 7.8% Management or in Custody
Slide 6: Steven Nell, Chief Financial Officer: Financial Overview
Steven Nell Chief Financial Officer Financial Overview 6
Slide 7: Q1 Noteworthy Items
Q1 Noteworthy Items Pretax Impact EPS Item Description $mil Impact Details Loan Loss Provision ($35.0) ($0.35) Front end loaded provision due to significant drop in commodity prices in Q1. Continue to forecast $60-$80 million of loan loss provision for the full year. year MSR Impact, Net Of ($11.4)
Slide 8: Q1 Noteworthy Items
Q1 Noteworthy Items Pretax Impact EPS Item description $mil Impact Details Purchase Accounting (1.6) (0.02) Related to merchant banking investment. $2.7 Adjustments million included in ‘other expense’ line item offset byy $1.1 million benefit in non-controlling g interests line item Mortgage Repurch
Slide 9: Net Interest Revenue and Margin
Net Interest Revenue and Margin Q1 Q4 Q3 Q2 Q1 ($mil) 2016 2015 2015 2015 2015 Net Interest Revenue $182.6 $181.3 $178.6 $175.7 $167.7 Provision For Credit Losses $ 35.0 $ 22.5 $ 7.5 $ 4.0 $ 0.0 Net Interest Revenue After Provision $147.6 $158.8 $171.1 $171.7 $167.7 Net Interest Margin * 2.65% 2.64%
Slide 10: Fees and Commissions Revenue
Fees and Commissions Revenue % Growth, 3 mos % YOY,3 Mos % Growth, ended Growth, ended TTM ended ($mil) 3/31/16 Seq. 3/31/16 3/31/16 B k Brokerage and d Trading T di $32 3 $32.3 6 9% 6.9% 2 0% 2.0% (-4.7%) Transaction Card 32.4 0.1% 4.3% 3.5% Fiduciary and Asset Management 32.1 2.9% 1.9% 4.4% Deposi
Slide 11: Expense Review
Expense Review %Incr. %Incr. ($mil) Q1 2016 Q4 2015 Q1 2015 Seq. YOY Personnel Expense $135.8 $133.2 $128.5 2.0% 5.7% Other Operating $109 1 $109.1 $ 99.4 99 4 $ 91.7 91 7 7 2% 7.2% 18 9% 18.9% Expense Total Operating $244.9 $232.6 $220.3 5.3% 11.2% Expense • Higher personnel expense in Q1 due to me
Slide 12: Other Balance Sheet Statistics
Other Balance Sheet Statistics Q1 2016 Q4 2015 Q1 2015 Period End AFS Securities $8.9 billion $9.0 billion $9.2 billion Average AFS securities $9.0 billion $9.0 billion $9.1 billion Period End Deposits $20.4 billion $21.1 billion $21.2 billion Average Deposits $20.6 billion $20.7 billion $21.2 billi
Slide 13: 2016 Assumptions
2016 Assumptions Mid-single-digit loan growth Continued gradual decline in the securities portfolio of $200-$250mm per quarter Stable to increasing NIM Increasing NII Provision for credit losses for the full year at high end of previously announced $60-$80 million forecast Continued mid-
Slide 14: Stacy Kymes, EVP-Corporate Banking
Stacy Kymes EVP-Corporate Banking 14
Slide 15: Loan Portfolio by Geography
Loan Portfolio by Geography Seq. YOY Mar 31 Dec 31 Loan Mar 31 Loan ($mil) 2016 2015 Growth 2015 Growth OK $6,019.3 $6,187.0 (2.7%) $5,537.0 8.70% TX 5,576.8 5,535.2 0.8% 5,228.3 6.7% NM 853.6 821.3 3.9% 824.1 3.6% AR 154.6 170.7 (9.4%) 190.4 (18.8%) CO 1,326.9 1,288.2 3.0% 1,301.3 2.0% AZ 1,320.6 1
Slide 16: Commercial Loan Growth
Commercial Loan Growth Seq. YOY Mar 31 Dec 31 Loan Mar 31 Loan ($mil) 2016 2015 Growth 2015 Growth Energy $3,029.4 $3,097.3 (2.2%) $2,903.4 4.4% Services 2,728.9 2,784.3 (2.0%) 2,592.9 5.2% Healthcare 1,995.4 1,883.4 5.9% 1,511.2 32.0% Wholesale/retail 1,451.8 1,422.1 2.1% 1,405.8 3.3% Manufacturing
Slide 17: Energy
Energy Energy At 3/31/16: Services 9% $5.3 billion commitments and $3.0 billion O/S Midstream ~60/40 split between oil and gas & Other SNCs = 54% of commitments, 45% of 9% outstandings E&P line utilization 64% Allowance for credit losses to period end Oil & Gas loans: 3.19% Producers Q1
Slide 18: Commercial Real Estate
Commercial Real Estate Seq. YOY Mar 31 Dec 31 Loan Mar 31 Loan ($mil) 2016 2015 Growth 2015 Growth Residential Construction $171 9 $171.9 $160 4 $160.4 7 2% 7.2% $139 2 $139.2 23 5% 23.5% and Land Development Retail 810.5 796.5 1.8% 658.9 23.0% Office 695.6 637.7 9.1% 513.9 35.4% Multifamily 733.7 7
Slide 19: Key Credit Quality Metrics
Key Credit Quality Metrics Combined allowance for credit Net annualized charge-offs to losses to period end loans: average loans: 1 50% 1.50% 0 56% 0.56% Combined allowance for credit Non Non-performing performing assets to losses to nonaccruing loans*: period end loans and repossessed assets
Slide 20: Closing Remarks
Steven G. Bradshaw Chief Executive Officer Closing Remarks 20
Slide 21: Question and Answer Session
Question and Answer Session 21