Bok Financial Corporation · NASDAQ:BOKF

Bok Financial — Investor Presentation (September 2014)

32 slides from Bok Financial's investor presentation, September 2014

  1. Slide 1: Investor Presentation September 2014

    Investor Presentation September 2014 NASDAQ: BOKF BOK Financial Corporation. Member FDIC. Equal Housing Lender. Services provided by BOKF, NA doing business as Bank of Albuquerque, Bank of Arizona, Bank of Arkansas, Bank of Kansas City, Bank of Oklahoma, Bank of Texas, Colorado State Bank and Trust.

  2. Slide 2: 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

  3. Slide 3: BOK Financial Corp. at a Glance

    BOK Financial Corp. at a Glance Top 25 bank holding company Strong franchise throughout the Midwest and Southwest Leading energy and healthcare lender nationwide Seasoned management team with consistent execution and solid performance across all economic cycles At 6/30/14: NASDAQ: BOKF Assets $

  4. Slide 4: BOKF Investment Attributes

    BOKF Investment Attributes Attribute Evidence Focused on long-term shareholder value 14.06% compounded annual return from January 1992 through August 2014 Management alignment with Insiders own 69% of outstanding shares shareholders Industry-leading performance across all 23-year track record of pro

  5. Slide 5: Driving Long Term Shareholder Value

    Driving Long Term Shareholder Value As of 6/30/14 5 Yr. TSR 10 Yr. TSR 15 Yr. TSR BOKF 102% 106% 272% Peer average 130% 28% 165% Peer median 123% 18% 89% NASDAQ Bank Index 88% 14% 100% KBW Bank Index 112% -4% 19% “There is no principle more emphasized in our organization than managing for long-term

  6. Slide 6: Diversified Business Platform

    Diversified Business Platform Retail and Commercial Banking Wealth Management Transaction Processing Mortgage Banking BOK Financial Corporation. Member FDIC. Equal Housing Lender. Services provided by BOKF, NA doing business as Bank of Albuquerque, Bank of Arizona, Bank of Arkansas, Bank of Kansas C

  7. Slide 7: Balanced Revenue

    Balanced Revenue Fee Businesses Provide Stability and Growth Opportunity Brokerage & Trading 11.9% CAGR 2010- LT Growth Rates 2013 Transaction Brokerage and 7.34% Card Trading 9.6% Transaction Card (1) 1.32% Net Interest Trust Fees 11.68% 50.5% Trust Fees Service Charges (1) (2.8%) 9.0% Mortgage Ban

  8. Slide 8: Deposit Franchise

    Deposit Franchise Market Branches Deposit Share By Market Tulsa, OK 38 31.09% Dallas-Ft. Worth- 29 1.75% TX Arlington, TX 26% Oklahoma City, OK 31 10.57% CO 7% Houston-The Woodlands- 14 0.76% NM 7% Sugar Land, TX OK 54% AZ 3% Albuquerque, NM 20 10.74% Other Denver-Aurora- 11 2.08% 3% Lakewood, CO Ph

  9. Slide 9: Commercial Banking

    Commercial Banking Diversified by Sector and Geography Loan Portfolio Breakdown - by Sector: Loans by Principal Market: Commercial (In Millions) 6/30/2014 (In Millions) 6/30/2014 Energy $ 2,419.8 18.0% Oklahoma 5,378.4 40.1% Services $ 2,377.1 17.7% Texas 4,501.6 33.5% Wholesale/Retail $ 1,318.2 9.8

  10. Slide 10: Commercial Banking: Energy Lending

    Commercial Banking  $2.4 billion energy portfolio at 6/30/14 Energy Lending  Core competency of BOK for over 100 years  50-60% loan to value on proved producing reserves Energy  Approximately 59% of production loans are Wholesale/ Services Retail secured by oil 6% 3% Midstream 3%  Regionally di

  11. Slide 11: Commercial Banking: Healthcare Lending

    Commercial Banking Healthcare Lending  Growing line of business within Healthcare Commitments commercial  $1.4 billion portfolio at 6/30/14 Medical Skilled Svcs Nursing  Portfolio increased at a compound 25% Facilities 33% annual rate of 10% since 2007  National expertise in skilled Specialty nu

  12. Slide 12: Commercial Real Estate Portfolio Trends

    Commercial Banking Commercial Real Estate Portfolio Trends CRE By Market KS/MO $600 6% OK AZ 23% 11% $450 Millions CO 8% $300 AR 3% $150 NM TX 12% 37% $0 C&D Retail Office Multifamily Industrial Other CRE 9/30/2013 12/31/2013 3/31/2014 6/30/2014 BOK Financial Corporation. Member FDIC. Equal Housing

  13. Slide 13: Wealth Management

    Wealth Management Fiduciary and Asset Management Revenue ($millions) $62 billion in assets under management or custody $96.1 $32.7 billion in fiduciary assets $80.1 $73.3 $66.2 $69.0 More than $1 trillion in traded securities annually Clients include high net worth individuals, corporations, pen

  14. Slide 14: ATM Network and Merchant Payment Processing

    ATM Network $2,500 Merchant Volume  Among the top 10 networks in the US $Mil $2,000  Operates in 21 states; 50% of clients CAGR: 9.47% outside Oklahoma $1,500  Clients: 207 Banks, 138 Credit Unions, 6 $1,000 C-Store partners $500  In 2013, processed 455 million EFT $- transactions 2008 2013 Merc

  15. Slide 15: Mortgage Banking

    Mortgage Banking Building a Recurring Revenue Model  Housed within the retail banking business 180,000 Mortgage Banking Revenue 160,000 ($000s)  Several key strategic 140,000 initiatives: 120,000 100,000  Build servicing portfolio 80,000  Expand correspondent 60,000 network 40,000 20,000  Build

  16. Slide 16: Mortgage Banking

    Mortgage Banking Building a Recurring Revenue Model Servicing Portfolio ($B) Servicing Revenue ($MM)  Consistent 15.0 15.0 growth in 14.0 14.0 13.0 servicing 12.0 portfolio drives 13.0 11.0 10.0 recurring 12.0 9.0 servicing 8.0 11.0 7.0 revenue Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 2013 2013 2013 201

  17. Slide 17: Q2 2014 Results

    Q2 2014 Results BOK Financial Corporation. Member FDIC. Equal Housing Lender. Services provided by BOKF, NA doing business as Bank of Albuquerque, Bank of Arizona, Bank of Arkansas, Bank of Kansas City, Bank of Oklahoma, Bank of Texas, Colorado State Bank and Trust. 17

  18. Slide 18: Second Quarter Highlights

    Second Quarter Highlights Q2 2014 Q1 2014 Net Income $75.9 million $76.6 million Diluted EPS $1.10 $1.11 Drivers: • Strong execution of growth strategies across the entire business • Double-digit annualized loan growth in Q2 • Sustainable growth across all fee-generating lines of business BOK Financ

  19. Slide 19: Second Quarter Highlights

    Second Quarter Highlights % Growth, % Growth, $billions Q2 2014 Q1 2014 Q2 2013 Seq. YOY Period-End $13.4 $13.1 $12.4 2.7% 7.9% (10.7% ann.) Loans Avg. Loans 13.3 12.9 12.3 2.4% 8.0% (9.8% ann.) Fiduciary $32.7 $31.3 $28.3 4.5% 15.7% Assets Drivers: • Loan growth driven by traditional C&I customers

  20. Slide 20: Commercial Loan Growth

    Commercial Loan Growth Sequential Jun 30, Mar 31, Loan ($millions) 2014 2014 Growth Energy $2,419.8 $2,344.1 3.2% Services 2,377.1 2,232.5 6.5% Wholesale/retail 1,318.2 1,226.0 7.5% Manufacturing 452.9 444.2 2.0% Healthcare 1,394.2 1,396.6 (0.2%) Other 405.6 408.4 (0.7%) Total Commercial $8,367.7 $8

  21. Slide 21: Commercial Real Estate

    Commercial Real Estate Sequential Jun 30, Mar 31, Loan ($millions) 2014 2014 Growth Residential construction $184.8 $184.8 0% and land development Retail 642.1 640.5 0.3% Office 394.2 436.3 -9.6% Multifamily 677.4 662.7 2.2% Industrial 342.1 305.2 12.1% Other CRE 414.4 401.9 3.1% Total CRE $2,655.0

  22. Slide 22: Total Loans

    Total Loans ($millions) Jun 30, Mar 31, Sequential 2014 2014 Loan Growth Total Commercial $8,367.7 $8,051.7 3.9% Total CRE 2,655.0 2,631.4 0.9% Total Residential 2,008.2 2,018.7 -0.5% Mortgage Total Consumer 396.0 376.1 5.3% Total Loans $13,426.9 $13,077.9 2.7% BOK Financial Corporation. Member FDIC

  23. Slide 23: $9.7B AFS Portfolio

    $9.7B AFS Portfolio High Quality, Actively Managed  Securities portfolio used primarily to manage interest Private rate risk and generate Issue MBS, $0.2 incremental net interest revenue Agency  Consistent strategy; actively CMBS, $2.1 managed for total return Other, $0.1  Total AFS portfolio est

  24. Slide 24: Net Interest Margin

    Net Interest Margin Yields (%) 5 Net Interest Revenue & Margin 3.50 4 $180 3 $170 3.25 2 NIR ($ in millions) 1 $160 3.00 Margin (%) 2Q13 3Q13 3Q13 4Q13 1Q14 2Q14 $150 AFS Loans 2.75 $140 $130 2.50 Cost of Int Bearing Liab (%) $120 0.75 2.25 $110 0.50 $100 2.00 2Q13 3Q13 4Q13 1Q14 2Q14 0.25 0.00 NIR

  25. Slide 25: Net Interest Revenue

    Net Interest Revenue Q2 2014 Q1 2014 Net Interest Revenue $166.1 million $162.6 million Drivers: • Strong loan growth • Improved NIM in Q2 • One additional day in Q2 BOK Financial Corporation. Member FDIC. Equal Housing Lender. Services provided by BOKF, NA doing business as Bank of Albuquerque, Ban

  26. Slide 26: Other Operating Revenue

    Other Operating Revenue % % Growth, Growth, ($millions) Q2 2014 Seq. YOY Brokerage and trading $39.1 32.3% 18.8% Investment banking business posts best quarter ever Transaction card 31.5 8.2% 5.2% Record quarter driven by higher transaction volume, new customer growth Fiduciary and asset 29.5 14.9%

  27. Slide 27: Expenses

    Expenses Q2 2014 Q1 2014 Other Operating Expense $214.7 million $185.1 million Drivers: • Personnel expense in Q2 2014 in line with expectations • Q1 included ~$17 million of accrual reversals • Higher variable expenses due to strong Q2 revenue growth (impacts several expense line items) • Forecaste

  28. Slide 28: Balance Sheet

    Balance Sheet Q2 2014 Q1 2014 Available for sale securities $9.7 billion $9.9 billion Average deposits $20.5 billion $20.2 billion Tier 1 Capital Ratio 13.63% 13.77% Total Capital Ratio 15.38% 15.55% Leverage Ratio 10.26% 10.17% Tier 1 Common Equity ratio (1) 13.46% 13.59% 1) Based on our interpreta

  29. Slide 29: Capital

    Capital  Tier 1 common equity ratio 13.46% as of June 30, 2014.  Based on our interpretation of the new capital rule, our estimated Tier 1 common equity ratio is approximately 12.35%, nearly 535 basis points above the 7% regulatory threshold. Capital deployment  Acquired MBM Advisors in April 201

  30. Slide 30: Solid Credit Quality at June 30, 2014

    Solid Credit Quality at June 30, 2014 Continued Positive Trends ALL to period end loans: Net annualized charge-offs to average loans: 1.42% (.06)% Allowance for loan losses to Non-performing assets to period nonaccruing loans: end loans and repossessed assets*: 197.24% 1.09% *Excluding governmen

  31. Slide 31: Revised 2014 Assumptions

    Revised 2014 Assumptions Low double-digit annual loan growth Continued nominal pressure on NIM Continued reduction of securities portfolio offset by growth in loan portfolio Reduce the securities portfolio by $1.2 billion over the full year Net interest income to be flat to slightly down for th

  32. Slide 32: Superior Balanced Strategy

    Superior Balanced Strategy Management alignment with shareholders Industry-leading performance across all market cycles Strong recurring revenue model Sound capital base Pristine credit quality Returning cash to shareholders BOK Financial Corporation. Member FDIC. Equal Housing Lender. Service

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