Bok Financial Corporation · NASDAQ:BOKF
Bok Financial — Q1 2024 Earnings Presentation
22 slides from Bok Financial's earnings presentation, Apr 24, 2024
Slide 1: Q1 Earnings Conference Call
Q1 Earnings Conference Call April 24, 2024
Slide 2: Legal Disclaimers
Legal Disclaimers 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, and the economy generally. Words such as “anticipates,” “beli
Slide 3: Stacy Kymes, Chief Executive Officer
Stacy Kymes Chief Executive Officer 3
Slide 4: Q1 Financial Highlights
Q1 Financial Highlights Net Income Attributable to shareholders • Net Income of $83.7 million and EPS of $1.29, Per share (diluted) adjusted for the additional FDIC special assessment $162.4 and securities portfolio restructuring income would $151.3 have been $123.2 million and EPS $1.91 per share $
Slide 5: Additional Details
Additional Details Quarterly Quarterly ◦ Period end loan balances grew $268 ($Billion) Q1 2024 Sequential YOY million; unfunded commitments decreased $359 million Period-End Loans $24.2 1.1% 6.3% ◦ Average deposits increased $1.3 Average Loans $23.9 1.0% 6.6% billion in Q1, with the mix continuing t
Slide 6: Marc Maun, EVP, Regional Banking Executive
Marc Maun EVP, Regional Banking Executive 6
Slide 7: Credit Resilience
Credit Resilience Disciplined Credit Concentration 100 year history in energy lending and a tested playbook that works • CRE limit on total committed balances is 185% of tier • 70% oil / 30% gas-weighted borrowers one capital plus reserves • Robust stress testing process and 17 petroleum • Office CR
Slide 8: Loan Portfolio
Loan Portfolio Seq. Loan YOY Loan ($Million) Mar. 31, 2024 Dec. 31, 2023 Mar. 31, 2023 Growth Growth • Energy balances increased by $7 Energy $ 3,443.7 $ 3,437.1 $ 3,398.1 0.2% 1.3% million Services 3,529.4 3,576.2 3,563.7 (1.3)% (1.0)% • Combined Services & General Healthcare 4,245.9 4,143.2 3,899.
Slide 9: Credit Quality Metrics
Credit Quality Metrics • Credit quality remains better than pre-pandemic level Net Charge-Offs to Average Loans with a decline in non-performing assets during the Annualized quarter 0.60% • Trailing 12 months net charge-offs at 10 bps 0.40% • CRE office exposure is less than 4% of outstanding period
Slide 10: Scott Grauer, EVP, Wealth Management Executive
Scott Grauer EVP, Wealth Management Executive 10
Slide 11: Fee Income - Markets & Securities
Fee Income - Markets & Securities Trading Fees ($Million) Q1 2024 Qtr. Seq. Qtr. Seq. Qtr. YOY $ Change % Change % Change • Up modestly during the quarter as Trading Fees $ 37.5 $ 1.9 5.4% 35.7% trading activity in fixed income Mortgage Banking 19.0 6.1 47.8% 32.0% markets increased early in the qua
Slide 12: Fee Income - Asset Management & Transactions
Fee Income - Asset Management & Transactions Fiduciary & Asset Management Qtr. Seq. Qtr. Seq. Qtr. YOY ($Million) Q1 2024 $ Change % Change % Change • Assets under management and Markets & Securities $ 78.2 $ 4.4 6.0% 17.0% A administration (“AUMA”) increased slightly during the Fiduciary & Asset Ma
Slide 13: Marty Grunst, EVP, Chief Financial Officer
Marty Grunst EVP, Chief Financial Officer 13
Slide 14: Liquidity & Capital
Liquidity & Capital Q1 2024 Q4 2023 Q1 2023 Liquidity Loan to Deposit Ratio 68.3% 70.3% 69.8% • Period-end deposit balances increased $1.4 billion this quarter Period-End Deposits $35.4 billion $34.0 billion $32.6 billion Available Secured Capacity $20.0 billion $18.3 billion $13.6 billion • Uninsur
Slide 15: Yields, Rate & Margin
Yields, Rate & Margin Quarterly Quarterly Net Interest Income ($Million) Q1 2024 Q4 2023 Q1 2023 sequential YOY • Net interest income was down $3.1 million linked Net Interest Income $293.6 $296.7 $352.3 (1.0)% (16.7)% quarter, $1 million of which is day count Net Interest Margin 2.61% 2.64% 3.45% (
Slide 16: Expenses
Expenses • Quarterly personnel expenses were relatively flat with higher ($Million) Q1 2024 Q4 2023 Q1 2023 % Incr. % Incr. seasonal employee benefits Seq. YOY offset by reduced incentive compensation Personnel Expense $202.7 $203.0 $182.1 (0.2)% 11.3% • Other operating expense decreased $43.3 milli
Slide 17: 2024 Full Year Outlook
2024 Full Year Outlook Business Driver FY as of 4/24/24 FY as of 1/24/24 Notes Loans (EOP) +5% to +7% Mid to upper single digit Deposits (EOP) No change Modest growth Loan to deposit ratio is expected to remain in the 70% area Investment Securities No change Flat Assumes 2 rate cuts occurring later
Slide 18: Question & Answer Session
Question & Answer Session 18
Slide 19: Stacy Kymes, Chief Executive Officer
Stacy Kymes Chief Executive Officer 19
Slide 20: Appendix
Appendix 20
Slide 21: Securities and Interest Rate Risk Position
Securities and Interest Rate Risk Position Securities Portfolio Interest Rate Risk • Short duration with limited extension, current portfolio duration • Approximately 74% of the total loan portfolio is variable rate or is 3.2 years, extending to only 3.7 years if rates increase fixed rate that repri
Slide 22: BOK Financial Corporation
BOK FINANCIAL CORPORATION