Bok Financial Corporation · NASDAQ:BOKF
Bok Financial — Investor Presentation (January 2023)
25 slides from Bok Financial's investor presentation, January 2023
Slide 1: Investor Presentation
Investor Presentation January 2023
Slide 2: Forward-looking statements
Forward-looking statements 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, the economy generally and the expected or potential
Slide 3: Financial Results Q4 2022
Financial Results Q4 2022 3
Slide 4: Summary Financial Statements
Summary Financial Statements Dec. 31, Sep. 30, Dec. 31, Linked-Quarter Commentary ($Million) 2022 2022 2021 $16,885 $16,289 $22,906 Added $1.5 billion to AFS securities to move toward a neutral rate sensitivity Average Securities position. Average Loans $21,976 $21,599 $20,243 Excluding PPP loans, o
Slide 5: Q4 summary
Q4 summary Net Income - Yearly Net Income - Quarterly Attributable to shareholders ($Million) Per share (diluted) Attributable to shareholders ($Million) Per share (diluted) Noteworthy items impacting FY 2022 profitability Noteworthy items impacting Q4 2022 profitability • Strong growth in net inter
Slide 6: Loan portfolio
Loan portfolio Dec. 31, Sep. 30, Dec. 31, Seq. Loan YOY Loan ($Million) 2022 2022 2021 Growth Growth • Energy balances were up slightly with unfunded commitments up 9.6% Energy $3,424.8 $3,371.6 $3,006.9 1.6% 13.9% • Strong linked-quarter growth in Services 3,431.5 3,280.9 3,367.2 4.6% 1.9% Services
Slide 7: Yields, rate & margin
Yields, rate & margin Quarterly Quarterly Net interest revenue ($Million) Q4 2022 Q3 2022 Q4 2021 sequential YOY • Net interest revenue up $36.3 million linked quarter; increase Net interest revenue $352.6 $316.3 $277.1 11.5% 27.3% in short-term rates repriced loans - interest income +$88.5 Net inte
Slide 8: Fees & commissions
Fees & commissions Brokerage & trading • Linked quarter increase due to sustained elevated Qtr. Seq. Qtr. Seq. Qtr. YOY margins on Trading activities, offset by derivative ($Million) Q4 2022 $ Change % Change % Change and financial advisory fees coming off strong levels in the prior quarter Trading
Slide 9: Expenses
Expenses Expenses summary % Incr. % Incr. ($Million) Q4 2022 Q3 2022 Q4 2021 Seq. YOY • Total operating expenses increased 6.3% year-over-year Personnel expense $186.4 $170.3 $174.5 9.4% 6.8% • Quarterly personnel expenses increased 9.4%, driven primarily by incentive compensation related to Other o
Slide 10: Key credit quality metrics
Key credit quality metrics Quality metrics summary Net charge-offs to average loans ANNUALIZED • Total non-accrual loans decreased $9.0 million; primarily due to service, energy, and loans to individuals, partially offset by an increase in commercial real estate • Potential problem loans (substandar
Slide 11: Capital Management
Capital Management Capital Management Overview Q4 2022 Q3 2022 Q4 2021 • Robust capital ratios consistently remain well above regulatory and internal policy thresholds Common Equity Tier 1 11.7% 11.8% 12.2% • Repurchased 314,406 shares at an average price of $103.14 per Total Capital Ratio 12.7% 12.
Slide 12: Forecast & assumptions
Forecast & assumptions ◦ We expect mid to to upper single digit annualized loan growth. Economic conditions in our geographic footprint remain very strong, and continue to be supported by business in-migration from other markets. Strong growth in unfunded commitments throughout 2022 and current low
Slide 13: BOK Financial Corp
BOK Financial Corp 13
Slide 14: BOK Financial Corporation corporate snapshot
NASDAQ: BOKF BOK Financial Corporation CONSUMER, COMMERCIAL & BROKER/DEALER & Corporate snapshot MORTGAGE BANKING INDEPENDENT ADVISORY SERVICES BOK Financial ® BOK Financial Securities • Top 30 national/regional bank* Bank of Texas BOK Financial Advisors • Midwest/Southwest franchise Bank of Albuque
Slide 15: Core strategy
Core strategy Build a bank with diverse Earnings per share CAGR across 30 year history of BOKF is 9.5% revenues that can compete upstream and outperform peers across varying economic cycles. "There is no principle more emphasized in our organization than managing for long-term value rather than shor
Slide 16: Diverse revenue sources
Diverse revenue sources Well diversified Revenue composition as of 12/31/2022 35%-40% of total revenues come from a diverse set of well-established fee income businesses, a differentiator compared to other midsized regional banks. Additional fee income categories: Fiduciary & asset management Broker
Slide 17: Strong core deposit franchise
Strong core deposit franchise Deposit Branches Deposit mix & cost ($million) Geographic deposit mix MSA share Tulsa, OK 21 31% Demand Interest-bearing transaction Dallas/Fort Worth/Metro, TX 20 2% Savings Time Oklahoma City, OK 15 11% 14% 3% Albuquerque, NM 13 11% Denver/Metro, CO 13 4% 4% 3% 5% 6%
Slide 18: Diversified loan portfolio
Diversified loan portfolio Disciplined concentration management, diversified by sector & geography Loan segmentation Collateral location as of 12/31/2022 as of 12/31/2022 Commercial real estate Texas Loans to individuals Other Services Oklahoma Healthcare Colorado Energy Arizona General business Kan
Slide 19: Energy banking
Energy banking Portfolio composition More than 100-year history in energy lending as of 12/31/2022 and a playbook that works • Focus on first lien, senior secured E&P lending, the “sweet spot” in energy lending. • Internal staff of 16 petroleum engineers and engineering techs to confirm Oil & gas pr
Slide 20: Healthcare banking
Healthcare banking Portfolio composition Outstandings totaled $3.8 billion across as of 12/31/2022 35 states at 12/31/2022 Healthcare portfolio characteristics: Senior housing • Favorable spreads Hospitals • Above-average loan utilization rates Service medical • Predominately BOK Financial originate
Slide 21: Commercial real estate
Commercial real estate Portfolio composition as of 12/31/2022 $4.6 billion outstanding and $3.1 billion BY PRODUCT TYPE unfunded commitments at 12/31/2022 Multifamily Office • BOKF allocates 185% of Tier 1 capital plus reserves to CRE. Industrial • Further controls and limitations by product type an
Slide 22: Wealth Management
Wealth Management Wealth Management revenue as of 12/31/2022 FEE INCOME AND NET INTEREST REVENUE Primary lines of business ($Million) • Private Wealth, including banking and investment management Fee income • Brokerage & trading services Net interest revenue • Institutional Wealth, including retirem
Slide 23: Transaction processing
Transaction processing Transaction processing volume as of 12/31/2022 EFT TRANSACTION VOLUMES Debit processing & ATM network (Million) • Operates nationally • More than 72% of clients are outside of Oklahoma • Clients: banks, credit unions and C-store chains • 800 million EFT transactions processed
Slide 24: Mortgage banking
Mortgage banking Mortgage banking revenue as of 12/31/2022 SERVICING, ORIGINATING AND MARKETING REVENUE Top 50 U.S. mortgage originator ($Million) • Annual origination volume in 2022 was $1.1 billion Servicing • Servicing an average of $18.9 billion of mortgages at Originating & marketing December 3
Slide 25: BOK Financial Corporation
BOK FINANCIAL CORPORATION