Bok Financial Corporation · NASDAQ:BOKF
Bok Financial — Q3 2023 Earnings Presentation
20 slides from Bok Financial's earnings presentation, Oct 25, 2023
Slide 1: Q3 Earnings Conference Call
Q3 Earnings Conference Call October 25, 2023
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: Q3 summary
Q3 summary Noteworthy items impacting profitability Quarterly earnings trend NET INCOME • We continue to benefit from our diverse fee-based businesses, with Fees & Commissions down slightly linked quarter; Q2 was Attributable to shareholders Per share (diluted) at near record levels driven by strong
Slide 5: Additional details
Additional details ◦ Period end loan balances grew $486 million; unfunded commitments Quarterly Quarterly decreased $575 million ($Billion) Q3 2023 Sequential YOY ◦ Average deposits increased $918 Period-End Loans $23.7 2.1% 8.9% million in Q3, with the mix continuing to shift to interest bearing. D
Slide 6: Marc Maun, EVP, Regional Banking Executive
Marc Maun EVP, Regional Banking Executive 6
Slide 7: Loan portfolio
Loan portfolio Seq. Loan YOY Loan • Energy balances decreased slightly ($Million) Sep. 30, 2023 June 30, 2023 Sep. 30, 2022 Growth Growth by $18 million Energy $ 3,490.6 $ 3,508.8 $ 3,371.6 (0.5)% 3.5% • Combined Services & General Services 3,566.4 3,585.2 3,280.9 (0.5)% 8.7% Business ("Core C&I") b
Slide 8: Key credit quality metrics
Key credit quality metrics Quality metrics summary Net charge-offs to average loans ANNUALIZED • Credit quality better than pre-pandemic level • Trailing 12 months net charge-offs at 13 basis points • Limited CRE office exposure, with properties in resilient markets • $7 million credit provision in
Slide 9: Scott Grauer, EVP, Wealth Management Executive
Scott Grauer EVP, Wealth Management Executive 9
Slide 10: Fees & commissions
Fees & commissions Brokerage & trading • Linked quarter decrease due to a record Q2 Qtr. Seq. Qtr. Seq. Qtr. YOY ($Million) Q3 2023 for energy customer hedging fees, partially $ Change % Change % Change offset with a record Q3 for our Public & Trading fees $ 34.5 $ (2.5) (6.7)% 30.2% Corporate Finan
Slide 11: Marty Grunst, EVP, Chief Financial Officer
Marty Grunst EVP, Chief Financial Officer 11
Slide 12: Yields, rate & margin
Yields, rate & margin Quarterly Quarterly Net interest revenue ($Million) Q3 2023 Q2 2023 Q3 2022 sequential YOY • Net interest revenue was down linked quarter as the Net interest revenue $300.9 $322.3 $316.3 (6.6)% (4.9)% financial sector continues to experience increased funding costs; offsetting
Slide 13: Liquidity & capital
Liquidity & capital Q3 2023 Q2 2023 Q3 2022 Loan to Deposit Ratio 70.5% 69.8% 59.8% • Period-end deposit balances increased $358 million this quarter Period-End Deposits $33.7 billion $33.3 billion $36.4 billion Current available secured • Potential secured capacity was $23.0 billion, which reflects
Slide 14: Expenses
Expenses Expenses summary % Incr. % Incr. • Quarterly personnel expenses ($Million) Q3 2023 Q2 2023 Q3 2022 Seq. YOY increased 0.1%, with increases in regular compensation from Personnel expense $190.8 $190.7 $170.3 0.1% 12.0% business expansion efforts offset by seasonal declines in payroll taxes.
Slide 15: Forecast & assumptions
Forecast & assumptions • We continue to expect upper single digit annualized loan growth. Economic conditions in our geographic footprint remain favorable, and continue to be supported by business in-migration from other markets. The competitive environment for loans should be a tailwind for us. • W
Slide 16: Stacy Kymes, Chief Executive Officer
Stacy Kymes Chief Executive Officer 16
Slide 17: Question and Answer Session
Question and Answer Session 17
Slide 18: Appendix
Appendix 18
Slide 19: Balanced Interest Rate Risk Position
Balanced Interest Rate Risk Position Scenario* ∆ NIR % ∆ NIR $ Noteworthy balance sheet items Down 200 Ramp, year 1 -1.38% -$17.7 million • Approximately 74% of the total loan portfolio are variable rate or fixed rate that reprice within a year Down 100 Ramp, year 1 -1.24% -$15.9 million • Approxima
Slide 20: BOK Financial Corporation
BOK FINANCIAL CORPORATION