Bok Financial Corporation · NASDAQ:BOKF
Bok Financial — Investor Presentation (December 2020)
22 slides from Bok Financial's investor presentation, Dec 31, 2020
Slide 1: Investor Presentation
BOK Financial Corporation Investor Presentation December 31, 2020
Slide 2: Legal Disclaimers
Legal Disclaimers 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 exp
Slide 3: NASDAQ: BOKF
NASDAQ: BOKF • Top 30 national/regional bank* • Midwest/Southwest franchise with 118 full service locations across eight states • Seasoned management team • Proven ability to deliver December 31, 2020 organic growth Assets $47 billion Loans $23 billion • Consistent execution Deposits $36 billion • C
Slide 4: Core Strategy
Core Strategy Build a recession-ready bank that will outperform peers across the economic cycle $550,000 $500,000 Earnings Per Share CAGR across 29 year history of BOKF is 9.7% $450,000 $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $0 91 92 93 94 95 96 97 98 99 00 01 02 03 0
Slide 5: Diverse Revenue Sources
Diverse Revenue Sources • Nearly 40% fee income is a differentiator for BOKF Revenue Composition at 12/31/2020 compared to other midsized regional banks • Well diversified: no single component of fee income accounts for 15% of total revenue Brokerage and • Further diversity within the fee income cat
Slide 6: Strong Balance Sheet
Strong Balance Sheet Metric: 12/31/2020 Period End Loans $23.0 billion Period End Deposits $36.1 billion Loan to Deposit Ratio 63.7% Regulatory minimum for well- Capital Ratios: 12/31/2020 capitalized: Common Equity Tier 1 7% 11.94% Tier 1 Capital Ratio 8.5% 11.94% Total Capital Ratio 10.5% 13.81% L
Slide 7: Strong Core Deposit Franchise
Strong Core Deposit Franchise Deposit mix and cost ($bn) Geographic deposit mix Demand Interest-bearing transaction Savings Time TX $40 21% $36.1 NM $35 5% 5% 2% AR 1% $30 $27.6 OK $25.3 51% CO 13% $25 59% $22.7 $22.1 AZ $20 5% KS/MO 4% $15 MSA Branches Deposit share Tulsa, OK 22 38% $10 Dallas-Fort
Slide 8: Diversified Loan Portfolio
Diversified Loan Portfolio Loan Portfolio Segmentation Loan Portfolio by Collateral Location Energy 15% TX 31% Healthcare 14% OK Services 17% 16% NM PPP Loans to 4% 7% Individuals 15% CO Other 12% 23% General Business AZ Commercial 12% 8% Real Estate KS/MO 21% 5% Disciplined concentration management
Slide 9: Energy Banking
Energy Banking Over 100 year history in energy lending and a playbook Portfolio Composition at 12/31/2020 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 Oil & Gas to confirm property v
Slide 10: Healthcare Banking
Healthcare Banking • As of December 31, 2020, outstandings totaled $3.3 billion Portfolio Composition at 12/31/2020 across 31 states • Healthcare portfolio characteristics: ▪ Favorable LIBOR spreads 10% ▪ Above-average loan utilization rates 11% ▪ Predominately BOK Financial originated commitments -
Slide 11: Commercial Real Estate
Commercial Real Estate CRE Portfolio by Product Type Office Retail 23% 17% • $4.7 billion outstanding and $1.4 billion unfunded commitments at December 31, 2020 • BOKF allocates 175% of Tier 1 capital plus Industrial reserves to CRE 17% • Further controls and limitations by product type and geograph
Slide 12: Wealth Management
Wealth Management 600 Four primary lines of business Wealth Management Revenue 500 • Private Wealth CAGR: 10.4% • Brokerage & Trading Services 400 • Institutional Wealth Management 300 • Cavanal Hill Investment Management • Clients include high net worth individuals, corporations, pensions, 200 foun
Slide 13: Transaction Processing
Transaction Processing Debit Processing & ATM Network 900 EFT Transaction • Among the top 10 networks in the US 800 Volumes (Mil) 700 • Operates nationally with customers based in 26 states and the Virgin Islands; more than 65% of clients outside 600 Oklahoma 500 • Clients: Banks / Credit Unions / C
Slide 14: Mortgage Banking
Mortgage Banking 200,000 180,000 160,000 140,000 120,000 100,000 80,000 60,000 • Top 50 U.S. mortgage originator 40,000 20,000 • Two lines of business: - 2016 2017 2018 2019 2020 ▪ Direct mortgage origination Servicing Rev. Originating and Marketing Rev. through BOKF retail network ▪ Mortgage Servic
Slide 15: 4Q 2020 Financial Results
4Q 2020 Financial Results
Slide 16: Fourth Quarter Summary
Fourth Quarter Summary Net Income- Annual Net Income- Quarter $154.0 $154.2 $500.8 $445.6 $435.0 $110.4 $7.03 $2.21 $6.63 $6.19 $2.19 $1.56 $62.1 $64.7 $0.88 $0.92 2018 2019 2020 4Q19 1Q20 2Q20 3Q20 4Q20 Net income attributable to shareholders Net income attributable to shareholders Earnings per sha
Slide 17: Loan Portfolio
Loan Portfolio Seq. Dec 31, Sep 30, Dec 31, Loan YOY Loan ($mil) 2020 2020 2019 Growth Growth Energy $3,469.2 $3,717.1 $3,973.4 (6.7)% (12.7)% Services 3,508.6 3,545.8 3,832.0 (1.1)% (8.4)% Healthcare 3,306.0 3,325.8 3,033.9 (0.6)% 9.0% General business 2,793.8 2,977.0 3,192.3 (6.2)% (12.5)% Total C
Slide 18: Net Interest Revenue and Margin
Net Interest Revenue and Margin ($mil) Q4 2020 Q3 2020 Q2 2020 Q1 2020 Q4 2019 Net interest revenue $297.2 $271.8 $278.1 $261.4 $270.2 Net interest margin 2.72% 2.81% 2.83% 2.80% 2.88% Yield on loans 3.68% 3.60% 3.63% 4.50% 4.75% Cost of int-bearing deposits 0.19% 0.26% 0.34% 0.98% 1.09% Cost of who
Slide 19: Fees and Commissions
Fees and Commissions Revenue ($mil) Growth: Quarterly, Quarterly, Year Trailing 12 Q4 2020 Sequential over Year Months Brokerage and Trading $39.5 (43.2)% (9.9)% (1.9)% Transaction Card 21.9 (6.7)% (2.9)% (0.7)% Fiduciary and Asset Management 41.8 4.7% (7.2)% (1.9)% Deposit Service Charges and Fees
Slide 20: Expenses
Expenses %Incr. %Incr. ($mil) Q4 2020 Q3 2020 Q4 2019 Seq. YOY Personnel expense $176.2 $179.9 $168.4 (2.0)% 4.6% Other operating expense $124.5 $121.4 $120.4 2.5% 3.4% Total operating expense $300.7 $301.3 $288.8 (0.2)% 4.1% Efficiency Ratio 62.36% 60.41% 63.65% • Quarterly personnel expense down d
Slide 21: Key Credit Quality Metrics
Key Credit Quality Metrics Non-accruals (mil) Net charge-offs (annualized) to average loans $255.4 0.60% $234.7 $221.2 $181.0 $163.2 0.40% 0.37% 0.31% 0.28% 0.22% 0.23% 0.20% 0.00% 4Q19 1Q20 2Q20 3Q20 4Q20 4Q19 1Q20 2Q20 3Q20 4Q20 Energy Healthcare CRE Residential and Other • Net charge-offs decreas
Slide 22: COVID-19
COVID-19 Loan Deferrals In Deferral Exited Deferral # of loans Amount ($mil) % of segment # of loans Amount ($mil) % of segment Business Market* 30 $86.8 0.4% 448 $1,575.5 8.1% Individual Market** 296 $30.7 1.8% 473 $35.9 2.2% Total 326 $117.5 0.6% 921 $1,611.4 7.6% * Includes C&I, Energy, Healthcar
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