Bok Financial Corporation · NASDAQ:BOKF

Bok Financial — Investor Day (June 2017)

95 slides from Bok Financial's investor day presentation, Jun 1, 2017

1. Slide 1: Investor Day Presentation

   Investor Day Presentation June 1, 2017 NASDAQ: BOKF 1

2. Slide 2: Welcome

   Joe Crivelli Director, Investor Relations & Corporate Communications Welcome 2

3. Slide 3: 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

4. Slide 4: Agenda

   Agenda Time Event 8:00 - 8:30 Greetings and strategic overview Steve Bradshaw, Chief Executive Officer Joe Crivelli, Senior Vice President, Investor Relations and Corporate Communications 8:30 - 9:30 Commercial Banking Norm Bagwell, Executive Vice President, Regional Banks Marc Maun, Chief Credit Of

5. Slide 5: Strategic Overview

   Steve Bradshaw Chief Executive Officer Strategic Overview 5

6. Slide 6: Core Strategy: Build a recession proof bank

   NASDAQ: BOKF Core Strategy: Build a recession proof bank that will outperform peers across the economic cycle  One of the largest U.S. bank holding companies  Valuable Midwest / Southwest franchise  Seasoned management team  Proven ability to deliver organic Dec 31, 2016 growth Assets $33 billio

7. Slide 7: 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 4/30/17 10 Yr. TSR 15 Yr. TSR businesses BOKF 111% 255%  Largely focused on organic growth Peer average 47% 128%  Neutral balance s

8. Slide 8: What's Changed Since Last Investor Day

   What’s Changed Since Last Investor Day (October 1, 2014) Internal External:  Acquisitions  BOKF passed the ultimate stress test: a two-year energy downturn  Mobank  Interest rate environment has changed for  Weaver Wealth Management the better  E-Spectrum Advisors  Improved regulatory environ

9. Slide 9: Primary Business Segments

   Primary Business Segments Percent of Net Interest Revenue Percent of Fees and Commissions (TTM 3/31/17) Revenue (TTM 3/31/17) Legend: Commercial Consumer Wealth Management Percent of Loans (3/31/17) Percent of Deposits (3/31/17) Funds Management and other 9

10. Slide 10: Diverse Revenue Sources

    Diverse Revenue Sources Sources of Revenue: 12 months ended 12/31/16 Brokerage & Trading 10% Revenue CAGR 2011–2016 Brokerage and Trading 6% Net Interest Transaction Card 52% 9% Transaction Card 3% Trust Fees 13% Trust Fees Service Charges 1% 9% Mortgage Banking 8% Service Charges Overall CAGR 5% 7%

11. Slide 11: Our Culture

    © BOK FINANCIAL N Our Culture Building high performing teams QURPOSeS Achieving more together ® fuyeeld = as = Sc & eG = @sodind 8 Yorsin oifaye Driving results 11

12. Slide 12: Strategic Growth Priorities

    Strategic Growth Priorities 2017-2019  Gain scale and efficiency in high growth, low-share markets  Grow loans and assets under management at above-market rates  Grow fee-generating businesses at the mid-single-digit rate  Drive earnings leverage by growing revenue at 2x the rate of expenses  C

13. Slide 13: Q&A with Steve Bradshaw

    © BOK FINANCIAL Q&A with Steve Bradshaw ‘N 13

14. Slide 14: Commercial Banking Overview and Panel Discussion

    Commercial Banking Overview and Panel Discussion 14

15. Slide 15: Regional Banking Overview

    Norm Bagwell Executive Vice President, Regional Banks Regional Banking Overview 15

16. Slide 16: The Commercial Bank

    The Commercial Bank Regional Banking Corporate Banking Norm Bagwell Stacy Kymes Middle Market (C&I) Energy Business Banking Commercial Real Estate Treasury Services Healthcare Market CEO Channel TransFund 16

17. Slide 17: Diversified Loan Portfolio

    Diversified Loan Portfolio Loan Portfolio Segmentation Loan Portfolio by Collateral Location: CRE Residential 23% Mortgage TX 11% 33% OK Other C&I 19% 3% Wholesale/ Retail Mfr 3% 9% Personal 5% NM 5% Healthcare Services 18% Other CO 13% 21% 8% Energy AZ 5% 15% KS/MO 9% Disciplined concentration mana

18. Slide 18: Regional Bank Composition

    Regional Bank Composition Markets Business Units Albuquerque Middle Market (C&I) Arizona Business Banking Arkansas Treasury Services Colorado Specialty Groups Dallas Native American Fort Worth Financial Institutions Houston Leasing Kansas City Food & Commodities Oklahoma City Heavy Equipment Tulsa M

19. Slide 19: Regional Markets

    Regional Markets % of Regional Profit Growth Banks Profit 2015-2016 Tulsa 25% 1.9% OKC 16% 2.8% Dallas 15% 15.4% Houston 10% 7.1% Colorado 9% 2.6% New Mexico 6% 3.4% Kansas City 5% 26.8% Arizona 5% 24.3% Ft. Worth 5% 14.2% Arkansas 4% 8.7% 19

20. Slide 20: Market CEO Channel Directives

    Market CEO Channel Directives • Deliver the entirety of BOKF to the markets we serve • Mobilize all market resources to sell, service, and build the brand regardless of role or LOB • Commonality in approach • Team based delivery • Market coverage to drive expansion of the client base • Asset generat

21. Slide 21: Middle Market Banking Overview

    Middle Market Banking Overview $000s 2014 2015 2016 CAGR Gross Loans 4,413,803 4,975,513 5,314,470 9.5% Total Deposits 3,754,958 4,248,421 4,468,872 12.1% Net Interest Revenue 123,713 137,623 150,107 9.6% Operating Revenue 33,618 32,269 37,700 8.8% Key Drivers and Objectives • Target $25MM to $1B in

22. Slide 22: Business Banking Overview

    Business Banking Overview $000s 2014 2015 2016 CAGR Gross Loans 625,769 662,978 706,360 4.5% Total Deposits 1,139,752 1,257,988 1,326,217 7.1% Net Interest Revenue 26,436 28,358 31,498 6.2% Operating Revenue 5,629 6,192 6,882 6.7% Key Drivers and Objectives • Market generally consists of companies $

23. Slide 23: Market Coverage

    Market Coverage Call Trend Franchise Building 35,000 400 30,000 350 28,056 360 25,995 341 300 322 25,000 282 250 20,000 New 240 Relationships 200 17,540 217 Expanded 15,000 Relationships 150 * Revenue ≥ $10,000 10,000 100 5,000 50 0 0 2014 2015 2016 2014 2015 2016 23

24. Slide 24: Treasury Services

    Treasury Services  Balanced offering of technology, sales, and service Commercial DDA Supported  Healthcare is the fastest growing sector with strong potential 4.2% CAGR  Ideally positioned to bank the “modern economy” $6.2 $6.0  Core Competency of BOKF (Sales, Services, Platform) $5.8  Annuity

25. Slide 25: Energy, Healthcare, and Commercial Real Estate

    Stacy Kymes Executive Vice President, Corporate Banking Energy, Healthcare, and Commercial Real Estate 25

26. Slide 26: Energy Banking

    Energy Banking  Core competency of BOK for over 100 years  Differentiated specialty lending business  Substantially all first lien, senior 7% secured, reserve-based loans – Oil & Gas Producers the sweet spot in energy lending 15%  Regionally diverse collateral Midstream & Other focused on “lower

27. Slide 27: Energy Banking Attributes

    Energy Banking Attributes  Favorable LIBOR spreads  Collateralized by readily marketable assets – oil and natural gas  Advance rates typically under 60% of collateral value  Ability to redetermine collateral values and remargin loans every 6 months  Favorable credit metrics  Full and valuable

28. Slide 28: The Energy Downturn of 2014-2016: A Retrospective

    The Energy Downturn of 2014-2016: A Retrospective  BOKF energy outstandings peaked at nearly $3 billion in December 2014 as the downturn was accelerating  Pre-downturn peak was $107 oil in June 2014 and $6 gas on in February 2014  Our pre-downturn expectations (from 12/31/14 earnings conference c

29. Slide 29: The Energy Downturn of 2014-2016: A Retrospective

    The Energy Downturn of 2014-2016: A Retrospective  What happened?  The downturn lasted over two years  There was no noticeable “spillover effect” in oil-dependent states  BOKF experienced only one material loss of $21.6 million out of a pre-downturn portfolio of over 600 borrowers  BOKF experie

30. Slide 30: The Energy Downturn of 2014-2016: Lessons Learned

    The Energy Downturn of 2014-2016: 12 Lessons Learned 1. Portfolio composition mattered 7. Texas and Oklahoma are more diverse than investors believed, 2. SNCs generally performed better and it was not “another 1980s” in than non-SNCs oil patch states 3. Large E&P borrowers performed 8. Services held

31. Slide 31: BOKF Energy Underwriting Discipline

    BOKF Energy Underwriting Discipline  Focus on first lien, senior secured, reserve-based lending  Maintain in house engineering staff  Avoid second lien  Cap energy prices in borrowing base during overheated commodity cycles  Limited availability on PUDs  Focus on “lower 48” production – avoid

32. Slide 32: Healthcare Banking

    Healthcare Banking  BOK Financial formed Healthcare Banking as a Line of Business in July 2013  As of December 2016, commitments totaled $2.2 billion across 35 states. Commitments are classified among three categories:  Senior Housing  Hospitals  Service Medical Senior Housing  Senior Housing

33. Slide 33: Strategy

    Strategy Senior Housing  Strong strategic focus on skilled nursing facilities where the market possesses significant barriers to entry  Continued prudent expansion into new territories Hospitals  Strategic focus on large health systems within BOK Financial’s metropolitan markets  Selective expan

34. Slide 34: Healthcare Banking Attributes

    Healthcare Banking Attributes  Favorable LIBOR spreads  Above-average loan utilization rates  Predominately BOK Financial originated commitments  Less than 14% of commitments from broadly syndicated transactions  Senior Housing commitments real-estate collateralized and secured  Favorable cred

35. Slide 35: An Ongoing Growth Opportunity

    An Ongoing Growth Opportunity  Despite persistent regulatory and legislative changes, the healthcare industry continues to grow with national healthcare expenditures now comprising 18% of GDP and projected to grow to 22% of GDP within the next decade Source: MedPAC 35

36. Slide 36: Centralized Underwriting

    Centralized Underwriting  Centralized underwriting streamlines workflow, promotes consistency, and enhances long-term credit outcomes  Seven senior underwriters possess an average of 20 years of banking experience and nearly seven years of healthcare experience  Senior underwriters have served in

37. Slide 37: Performance

    Performance  Consistent and prudent growth, including 17% CAGR in loan outstandings since inception  Significant ancillary business opportunities including:  $7MM of healthcare treasury revenue during 2016 alone  $2MM of syndication revenue since line of business inception  $10MM of mezzanine f

38. Slide 38: What's Next

    What’s Next  Continued strategic focus on Senior Housing sector (highlighting skilled nursing) with increased penetration in recently approved markets  “Sell-the-bank” focus with particular cross-selling emphasis on healthcare treasury management, wealth management, and derivative product offering

39. Slide 39: Commercial Real Estate

    Commercial Real Estate CRE Portfolio by Collateral Location CRE Portfolio by Product Type OK Industrial Other Multifamily Other TX KS/MO Office Construction/ Land Development Retail AZ CO NM  Concentration management is key to BOKF’s commercial real estate strategy  Overall CRE exposure capped as

40. Slide 40: CRE Underwriting – Stress Testing

    CRE Underwriting – Stress Testing  New or renewal term and construction loans over $2,000,000  Cash flow sensitivity for required debt service:  Current and pro-forma cash flow stressed for:  Interest Rate  Vacancies  CAP Rates  Rental Rates  Variable operating expenses  Officer support req

41. Slide 41: CRE Underwriting – CAP Rates

    CRE Underwriting – CAP Rates  Appraised values evaluated for acceptable CAP rates considering market data and historical investment returns  Internal value established using BOKF minimum CAP Rates for underwriting and grading decisions  Considerations include:  Property Class (age, condition, re

42. Slide 42: BOKF 10-year CRE Loss Rates

    BOKF 10-year CRE Loss Rates 10 Yr Max 10 Yr Min 10 Yr Avg 6.00% CLD – Res Dev Max = 9% 5.00% 4.00% 3.00% 2.46% 2.00% 1.19% 1.17% 1.00% 0.36% 0.77% 0.43% 0.40% 0.13% 0.00% 42

43. Slide 43: The Current Credit Environment

    Marc Maun Chief Credit Officer The Current Credit Environment 43

44. Slide 44: Current Credit Environment

    Current Credit Environment  Energy portfolio continues to improve  No signs of material stress in non-energy portfolio  Net recoveries for two consecutive quarters  Material reductions in non-accruals and non-performing assets  Healthy combined allowance for credit losses to period end loans of

45. Slide 45: Reserve for Credit Losses - Policy

    Reserve for Credit Losses - Policy  Evaluation of loan portfolio by industry (29 categories)  For each industry:  Greater of 10 year or trailing 12 months gross loss rate  For the graded portion of the portfolio, 20 categories:  Correlation of our loss data and grades to Moody’s loss data and r

46. Slide 46: Focus Areas: Retail CRE and Healthcare

    Focus Areas: Retail CRE and Healthcare Retail CRE: Healthcare  Total outstandings of $745 million at  Total outstandings of $2.3 billion at 3/31/17 3/31/17  Limited exposure to asset-light, cash flow  Criticized/classified Retail CRE loans based healthcare loans that have caused totaled $6MM at

47. Slide 47: Commercial Banking Q&A

    © BOK FINANCIAL Commercial Banking Q&A ‘N

48. Slide 48: Transaction Processing Overview

    Stacy Kymes Executive Vice President, Commercial Banking Brian Bourgeois Executive Vice President, TransFund Transaction Processing Overview 48

49. Slide 49: TransFund History

    TransFund History  1975: Bank of Oklahoma installs first ATM in State of Oklahoma  1981: TransFund becomes a shared EFT Network by signing its first participating Financial Institution Oklahoma Networks: • SCS (Fiserv) • Exchequer (MPact) • ChecOKard (Chase) • TransFund  1990s: TransFund saturate

50. Slide 50: TransFund Today

    TransFund Today ATM Network 600 EFT Transaction Volumes (M)  Among the top 10 networks in the US 500 CAGR: 8.18%  Operates in 26 states 400  63% of clients are outside of Oklahoma generating 300 55% of the revenue 200  Clients: 221 Banks, 150 Credit Unions, 4 C-Store 100 partners  In 2016, proc

51. Slide 51: TransFund Overview

    TransFund Overview Customers  Financial Institutions (Banks / Credit Unions)  Convenience Stores  Merchants Products  ATM Driving  Debit Card Processing Services  Merchant Payment Processing 51

52. Slide 52: Payment Card Transaction Flow

    Payment Card Transaction Flow 52

53. Slide 53: Growth Strategies

    Growth Strategies Mobile TransFund provides mega-bank products and solutions to community banks and credit unions On/Off Spend Location Region Transaction Merchant Thresholds Type Type 53

54. Slide 54: Growth Strategies

    Growth Strategies Surcharge-Free ATMs TransFund builds relationships with Convenience Stores allowing participating financial institutions Surcharge-Free access to ATMs. TransFund also offers access to a National Surcharge Free Network with over 25,000 locations. 54

55. Slide 55: Growth Strategies

    Growth Strategies Card Products TransFund offers unique custom affinity card solutions to increase fee income for participating financial institutions. School Employee Health Savings Community Charitable Personal Photo Business 55

56. Slide 56: Growth Strategies

    Growth Strategies PAU Analytics TransFund analyzes the primary drivers of financial institutions’ debit card portfolios (penetration, activation, usage, revenue, etc.) enabling them to make precise marketing decisions to increase profitability. Growth Strategies  Affinity/Loyalty programs  Rewards

57. Slide 57: Key Objectives 2017

    Key Objectives 2017  EMV  Apple Pay / Samsung Pay / Android Pay  Mobile  ATM Managed Services  Grow Merchant Services  Continue to monitor evolution of FinTech in payments space for additional opportunities 57

58. Slide 58: TransFund Revenue Growth

    TransFund Revenue Growth 10 Year CAGR = 7.1% 58

59. Slide 59: Transaction Processing Q&A

    Transaction Processing Q&A 59

60. Slide 60: Intermission

    Intermission Presentations will resume at approximately 10:30 AM eastern time 60

61. Slide 61: Wealth Management Overview

    Scott Grauer Executive Vice President, Wealth Management Wealth Management Overview 61

62. Slide 62: Wealth Management at BOKF

    Wealth Management at BOKF  Differentiated products and services that address all aspects of the market from mass affluent to ultra-high net worth  Capability dates back to the origins of the bank in the early 1900s  Trust powers since 1918  Fee-based asset management since 1949  Balanced revenu

63. Slide 63: BOKF Wealth Management By the Numbers

    BOKF Wealth Management By the Numbers KPI Q1 2017 Notes: Assets Under Management or Administration $77.4 billion 13.3% growth for 12 months ended 3/31/17 Fiduciary Assets $44.4 billion 7.6% growth for 12 months ended 3/31/17 Average Loans $1.3 billion 8% of BOKF total Average Assets $7.2 billion 22%

64. Slide 64: Wealth Management AUMA Growth

    Wealth Management AUMA Growth 10.2% CAGR 64

65. Slide 65: Wealth Management Revenue Growth

    Wealth Management Revenue Growth 8.6% CAGR 65

66. Slide 66: Wealth Management Loans and Deposits

    Wealth Management Loans and Deposits 6.7% CAGR 4.3% CAGR 66

67. Slide 67: Wealth Management Revenue and AUMA by Business Line

    Wealth Management Revenue and AUMA by Business Line Wealth Revenue by LOB: Wealth AUMA by LOB: The Private Cavanal Hill BOK Financial Bank 40% 4% Securities Cavanal Hill 5% 22% The Private Bank 20% Institutional Institutional BOK Financial Wealth Wealth Securities 15% 54% 40% 67

68. Slide 68: BOK Financial Securities

    BOK Financial Securities Practice areas:  Institutional Sales & Trading  Retail Brokerage  Investment Banking  Financial Risk Management Metrics: Awards, Recognition, and Rankings: Five top-ten rankings for investment banking underwriting  More than $1 trillion in traded securities services ann

69. Slide 69: Connecticut Trading Desk

    Connecticut Trading Desk  BOK Financial is a significant player in all aspects of the mortgage industry:  Origination  Servicer  Owner of mortgage securities  Top 25 TBA player  Secondary dealer of mortgage securities  Connecticut trading desk maximizes opportunities from this positioning in

70. Slide 70: Institutional Wealth

    Institutional Wealth Practice areas:  Bond Trustee Services  Escrow Services Awards, Recognition, and Rankings:  Retirement Plan Services 14 “Best in Class” awards – Plan Sponsor Magazine 2016  Investment Management Services and Seventh largest corporate trustee bank ranked by number of Investme

71. Slide 71: Cavanal Hill

    Cavanal Hill Practice Areas: Awards, Recognition, and Rankings:  SMAs and mutual funds Two five-star ratings from Morningstar for Cavanal Hill  Acts as CIO for all of wealth management Three #1 Lipper awards in 2016 for Cavanal Hill  Fixed income (taxable and tax free)  Equity (fundamental and q

72. Slide 72: The Private Bank

    The Private Bank Practice Areas:  Lending and deposit taking  Personal trust services  Mineral rights management Metrics:  $143 million of revenue for TTM 3/31/17  $15.2 billion of trust assets at 3/31/17  $1.3 billion average loans  $3.3 billion average deposits Growth Strategies:  Pricing

73. Slide 73: Wealth Management Q&A

    © BOK FINANCIAL Wealth Management Q&A ‘N

74. Slide 74: Consumer Banking and Mortgage Overview

    Pat Piper Executive Vice President, Consumer Banking Glenn Brunker Senior Vice President, President, BOKF Mortgage Consumer Banking and Mortgage Overview 74

75. Slide 75: Strong Core Deposit Franchise

    Strong Core Deposit Franchise Deposit mix ($bn) Demand Interest-bearing transaction Savings Time $24 $23 $21 $21 Deposit $21 $20 MSA Branches share Tulsa 25 32% $18 DFW 21 2% Oklahoma City 18 13% Albuquerque 16 9% $12 Houston 12 1% Denver 11 2% Kansas City 6 2% Phoenix 4 1% $6 Northwest Arkansas 2 4

76. Slide 76: Optimizing Delivery

    Optimizing Delivery 126 Banking Centers, down 28%.  Strategic reduction of banking center network vs. peers at 15%. o Exit Instore Channel o $13MM annual expense reduction o Focus on solutions vs. transactions  Significant investment to create a strong digital foundation  Established the Digital

77. Slide 77: Positioned for Rising Rates

    Positioned for Rising Rates Market Based Pricing Differential ++ AZ AR + CO  7 distinct brands priced Par TX at the market-level K.C. - -- OK NM  Market compositions offer pricing advantage Consumer Banking Deposit Concentration  Positioned to price efficiently when rates move 8.5% 1.4%  Ability

78. Slide 78: Mortgage Banking

    Mortgage Banking 200,000 Mortgage Banking Revenue  2016 Top 50 U.S. mortgage originator ($000s)  Balanced fee generating business aligned 150,000 with global strategy 100,000  2016 Annual origination volume ~ $6.3 billion 50,000  Diversified platform – retail and direct origination channels - 20

79. Slide 79: Mortgage Banking – Strategic Focus

    Mortgage Banking – Strategic Focus  Grow Sales Platform Mortgage loan refinances to total fundings 70.0%  Scale and optimize origination mix; Purchase money stability 60.0%  Cultivate portfolio retention, cross sell and 50.0% affinity relationship programs 40.0%  Enhance marketing / digital conn

80. Slide 80: Mortgage Banking – Strategic Focus

    Mortgage Banking – Strategic Focus  Invest in Technology HomeDirect Channel % of Originations 40%  Upgraded loan operating / servicing 35% platform with supporting technologies 30%  Install customer portal offering robust digital 25% capability 20%  Implement CMS solution to enhance lead 15% con

81. Slide 81: Consumer Banking Q&A

    © BOK FINANCIAL Consumer Banking Q&A ‘N

82. Slide 82: Intermission

    Intermission Presentations will resume at approximately 12:30 PM eastern time 82

83. Slide 83: Financial Overview

    Steven Nell Executive Vice President, Chief Financial Officer Financial Overview 83

84. Slide 84: Earnings Momentum

    Earnings Momentum: Net Income $88.4 Q1 2017 Q4 2016 Q1 2016 $74.3 $65.8 Diluted EPS $1.35 $0.76 $0.64 Net income before $126.8 $72.4 $62.4 $50.0 taxes ($M) $42.6 $1.35 $1.13 Net income $88.4 $50.0 $42.6 $1.00 $0.76 attributable to BOKF $0.64 shareholders ($M) 1Q16 2Q16 3Q16 4Q16 1Q17 Net income attr

85. Slide 85: 2017 Expectations

    2017 Expectations  Mid-single-digit loan growth for the full year  $700 million reduction in available for sale securities portfolio for the full year  Stable to increasing net interest margin  Low-single-digit net interest revenue growth (linked quarter annualized)  Loan loss provision of $15

86. Slide 86: Sustainability of Earnings Momentum

    Sustainability of Earnings Momentum Metric Guidance Rationale Net Interest Margin Barring dramatic change in competitive environment or deposit betas, NIM is expected to trend up for balance of the year Net Interest Loan growth offset by reduction in AFS securities portfolio, combined with higher In

87. Slide 87: Interest Rate Risk Management

    Interest Rate Risk Management  Managing the balance sheet to be neutral for interest rate movements is a core, fundamental tenet of BOKF’s long-term philosophy  If BOKF had moved 4% asset sensitive (peer average) on January 1, 2013 (assumed as the starting date for the current banking industry ass

88. Slide 88: Interest Rate Risk Management

    Interest Rate Risk Management Non-maturity Deposit Assumptions • Now, more than ever, non-maturity deposit assumptions play a critical role in the measurement of interest rate risk. • Relatively small differences in repricing and balance assumptions can drive large differences among the interest rat

89. Slide 89: Liquidity/Deposits

    Liquidity/Deposits BOKF Funding Sources BOKF Wholesale Funding Availability 1Q17 Average Balances $10.3 billion as of 03/31/17 Brokered NMD/Cust Deposits DDA REPO Securities $3.0 B Collateral $4.0 B All Other Fed Funds FHLB CDs $3.3 B Capital • Liquidity remains strong • No material pressure on depo

90. Slide 90: Available for Sale Securities Portfolio

    Available for Sale Securities Portfolio  $8.4 Billion at 3/31/17  High quality, actively managed  Securities portfolio used primarily to manage interest rate risk and generate incremental net interest Agency revenue Agency CMBS, RMBS, $2.9  Consistent strategy; actively $5.4 managed for total re

91. Slide 91: Uses of Capital / Rationale

    Uses of Capital / Rationale Capital Management  BOKF internal operating limit: maintain 100 basis point capital conservation buffer over regulatory minimum for a well-capitalized bank Current Priorities  Organic growth  Regular quarterly dividends  M&A  Stock buyback Tier 1 Common Capital Ratio

92. Slide 92: M&A Criteria and Return Objectives

    M&A Criteria and Return Objectives  Whole bank acquisitions  Primarily in-market (TX, KS/MO, CO)  Bank and non-bank entities  Ability to leverage existing business or add elements  Revenue-generating capabilities  Solid customer base  Talented employee continuance  Expense synergies are impo

93. Slide 93: Conclusion: BOKF is a Best-in-Class Midsized Regional Bank

    Conclusion: BOKF is a Best-in- Class Midsized Regional Bank  A consistent strategy that works  Plentiful organic growth opportunities  Disciplined  Entrepreneurial  A mix of fee businesses unlike any other in the regional banking sector…all of which would trade at a premium on a stand alone bas

94. Slide 94: Conclusion: BOKF is a Best-in-Class Midsized Regional Bank

    Conclusion: BOKF is a Best-in-Class Midsized Regional Bank And a great investment opportunity for investors. 94

95. Slide 95: Open Q&A with Leadership Team

    Open Q&A with Leadership Team 95

BOK Financial — Investor Day (June 2017) on 6ix