Bok Financial Corporation · NASDAQ:BOKF
Bok Financial — Investor Presentation (2019)
22 slides from Bok Financial's investor presentation, 2019
Slide 1: Investor Presentation
Investor Presentation NASDAQ: BOKF 1
Slide 2: Disclosures
Disclosures 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 for
Slide 3: NASDAQ: BOKF
NASDAQ: BOKF • Top 30 national/regional bank* • Long-term focused Midwest/Southwest franchise with market cap over $5 billion. • Seasoned management team Full Service Banking Markets Additional Wealth Management Markets Additional Mortgage Banking Markets • Proven ability to deliver organic growth D
Slide 4: Core Strategy
Core Strategy Build a recession-proof bank that will outperform peers across the economic cycle $550,000 $500,000 $450,000 $400,000 Earnings Per Share CAGR across 28 year history of BOKF is 11% $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $0 “There is no principle more emphasized in
Slide 5: Diverse Revenue Sources
Diverse Revenue Sources • 38% fee income is a differentiator for BOKF compared to other midsized regional banks • Well diversified: no single component of fee Brokerage and income accounts for more than 10% of total Trading revenue 8% • Further diversity within the fee income categories: Net Interes
Slide 6: Strong Balance Sheet
Strong Balance Sheet Metric: 06/30/2019 Period End Loans $22.3 billion Period End Deposits $25.3 billion Loan to Deposit Ratio 88% Regulatory minimum for Capital Ratios: 06/30/2019 well-capitalized: Common Equity Tier 1 7% 10.84% Tier 1 Capital Ratio 8.5% 10.84% Total Capital Ratio 10.5% 12.34% Leve
Slide 7: Strong Core Deposit Franchise
Strong Core Deposit Franchise Deposit mix and cost ($bn) Geographic deposit mix Demand Interest-bearing transaction Savings Time TX 23% $25 $25 NM 6% $24 $23 9% AR $22 2% 1% $21 OK CO $18 47% 15% 51% AZ KS/MO 5% 3% $12 MSA Branches Deposit share Tulsa, OK 24 32% Dallas-Fort Worth-Arlington, TX 20 2%
Slide 8: Diversified Loan Portfolio
Diversified Loan Portfolio Loan Portfolio Segmentation Loan Portfolio by Collateral Location Commercial TX Personal Real Estate 30% 5% 21% OK Healthcare 17% 13% Resi 10% NM 4% Energy CO Other 17% 14% 21% General C&I AZ 33% KS/MO 8% 6% Disciplined concentration management Diversified by sector and ge
Slide 9: A National Energy Banking Leader
A National Energy Banking Leader Over 100 year history in energy lending and a Portfolio Composition at 06/30/2019 playbook that works: • Focus on first lien, senior secured E&P lending – the “sweet spot” in energy lending Oil & Gas • Internal staff of 16 petroleum engineers and Producers engineerin
Slide 10: Healthcare Banking Expertise
Healthcare Banking Expertise • Growing line of business within commercial banking • As of June 30, 2019, outstandings totaled $2.9 billion across 31 states • Healthcare portfolio characteristics: • Favorable LIBOR spreads • Above-average loan utilization rates • Predominately BOK Financial originate
Slide 11: Commercial Real Estate
Commercial Real Estate CRE Portfolio by Product Type • $4.7 billion outstanding and $1.6 billion unfunded commitments at June 30, 2019. Multifamily • BOKF allocates 175% of Tier 1 capital plus reserves to CRE. Retail • Further controls and limitations by product Office type and geography. Concentrat
Slide 12: Wealth Management
Wealth Management • Four primary lines of business: 500 Wealth Management Revenue • The Private Bank 400 • BOK Financial Advisors CAGR: 9.6% • Institutional Wealth Management 300 • Cavanal Hill Investment Management 200 • Clients include high net worth individuals, corporations, pensions, foundation
Slide 13: Transaction Processing
Transaction Processing Debit Processing & ATM Network 800 EFT Transaction 700 Volumes (M) • Among the top 10 networks in the US 600 CAGR: 7.6% • Operates nationally with customers based in 26 500 states and the Virgin Islands; more than 65% of 400 clients outside Oklahoma 300 • Clients: Banks / Cred
Slide 14: Mortgage Banking
Mortgage Banking 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: 2015 2016 2017 2018 TTM June '19 • Direct mortgage origination Servicing Originating and marketing through BOKF retail network • Mortgage Servicing 22.5 22.0 • An
Slide 15: 2Q 2019 Financial Results
© BOK FINANCIAL 2Q 2019 Financial Results ~
Slide 16: Second Quarter Summary
Second Quarter Summary Net Income $137.6 $137.6 $117.3 $114.4 $110.6 Q2 2019 Q1 2019 Q2 2018 $108.5 $1.93 $1.79 Diluted EPS $1.93 $1.54 $1.75 $1.75 $1.50 $1.54 Net income before taxes $175.4 $140.2 $148.5 Net income attributable to BOKF shareholders $137.6 $110.6 $114.4 2Q18 3Q18 4Q18 1Q19 2Q19 Net
Slide 17: Loan Portfolio
Loan Portfolio ($mil) Seq. Jun 30, Mar 31, Loan 2019 2019 Growth Energy $3,921.4 $3,705.1 5.8% Services 3,309.5 3,287.6 0.7% Healthcare 2,926.5 2,915.9 0.4% Wholesale/retail 1,793.1 1,706.9 5.1% Manufacturing 761.4 742.4 2.6% Public Finance 795.7 803.1 (0.9)% Other 829.5 801.1 3.5% Total C&I $14,336
Slide 18: Net Interest Revenue and Margin
Net Interest Revenue and Margin ($millions) Q2 2019 Q1 2019 Q4 2018 Q3 2018 Q2 2018 Net interest revenue $285.4 $278.1 $285.7 $240.9 $238.6 Provision for credit losses $5.0 $8.0 $9.0 $4.0 $— NIR after provision $280.4 $270.1 $276.7 $236.9 $238.6 Net interest margin 3.30% 3.30% 3.40% 3.21% 3.17% • Ne
Slide 19: Fees and Commissions
Fees and Commissions Revenue, $mil Growth: Quarterly, Quarterly, Year Trailing 12 Q2 2019 Sequential over Year Months Brokerage and Trading $40.5 28.2% 53.0% 12.8% Transaction Card 21.9 5.7% 4.5% 1.1% Fiduciary and Asset Management 45.0 3.8% 8.0% 1.8% Deposit Service Charges and Fees 28.1 (0.6)% 0.9
Slide 20: Expenses
Expenses %Incr. %Incr. ($mil) Q2 2019 Q1 2019 Q2 2018 Seq. YOY Personnel expense $160.3 $169.2 $138.9 (5.3)% 15.4% Other operating expense $116.8 $117.9 $107.5 (1.0)% 8.6% Total operating expense $277.1 $287.2 $246.5 (3.5)% 12.4% Efficiency Ratio 59.51% 64.80% 61.77% • Excluding CoBiz integration co
Slide 21: Key Credit Quality Metrics
Key Credit Quality Metrics • No material signs of stress in any loan portfolio. • Nonaccrual loans up $31 million sequentially. • Appropriately reserved with a combined allowance of 0.92 percent with CoBiz portfolio included. • Net charge-offs were 0.14 percent of average loans, the lowest level we’
Slide 22: Forecast and Assumptions
Forecast and Assumptions • Mid single digit loan growth with continued strength in Energy, Healthcare and General C&I. • Provision levels moving forward will be influenced by loan growth, but are expected to be at similar dollar levels to the past couple of quarters. • Interest rate decreases foreca