Bok Financial Corporation · NASDAQ:BOKF
Bok Financial — Q2 2023 Earnings Presentation
20 slides from Bok Financial's earnings presentation, Jul 26, 2023
Slide 1: Q2 Earnings Conference Call
Q2 Earnings Conference Call July 26, 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: Q2 summary
Q2 summary Noteworthy items impacting profitability Quarterly earnings trend • Continued benefit from our diverse fee-based businesses as NET INCOME MBS trading revenues and Energy customer hedging fees Attributable to shareholders contributed to a new quarterly high for our Wealth business Per shar
Slide 5: Additional details
Additional details ◦ Loan balances grew $488 million; unfunded commitments decreased Quarterly Quarterly $141 million ($Billion) Q2 2023 Sequential YOY ◦ Average deposits declined $1.1 billion Period-End Loans $23.2 2.1% 9.1% in Q2 as deposit competition continues across the financial Average Loans
Slide 6: Marc Maun, EVP, Regional Banking Executive
Marc Maun EVP, Regional Banking Executive 6
Slide 7: Loan portfolio
Loan portfolio • Energy balances increased $111 Seq. Loan YOY Loan ($Million) Jun. 30, 2023 Mar. 31, 2023 Jun. 30, 2022 Growth Growth million Energy $3,508.8 $3,398.1 $3,393.1 3.3% 3.4% • Combined Services & General Business ("Core C&I") balances Services 3,585.2 3,563.7 3,421.5 0.6% 4.8% increased
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 10 basis points • Limited CRE office exposure, with properties in resilient markets • $17 million credit provision in
Slide 9: Scott Grauer, EVP, Wealth Management Executive
Scott Grauer EVP, Wealth Management Executive 9
Slide 10: Fees & commissions
Fees & commissions Brokerage & trading • Linked quarter increase due to improved Qtr. Seq. Qtr. Seq. Qtr. YOY ($Million) Q2 2023 mortgage originations & trading volumes, $ Change % Change % Change combined with record energy customer Trading fees $36.9 $9.3 33.8% 207.9% hedging fees Customer hedging
Slide 11: Marty Grunst, EVP, Chief Financial Officer
Marty Grunst EVP, Chief Financial Officer 11
Slide 12: Yields, rate & margin
Yields, rate & margin Quarterly Quarterly Net interest revenue ($Million) Q2 2023 Q1 2023 Q2 2022 sequential YOY • Net interest revenue was down linked quarter as funding costs continue to increase; benefit of $2.0 billion increase Net interest revenue $322.3 $352.3 $274.0 (8.5)% 17.6% in earning as
Slide 13: Liquidity & capital
Liquidity & capital Q2 2023 Q1 2023 Q2 2022 69.8% • Period-end deposit balances increased $714 million this quarter Loan to Deposit Ratio 69.8% 55.1% Period-End Deposits $33.3 billion $32.6 billion $38.6 billion • Potential secured capacity was $23.5 billion, which reflects current available secured
Slide 14: Expenses
Expenses Expenses summary % Incr. % Incr. • Quarterly personnel expenses ($Million) Q2 2023 Q1 2023 Q2 2022 Seq. YOY increased 4.7%, primarily due to increases in cash-based comp Personnel expense $190.7 $182.1 $154.9 4.7% 23.1% related to increased sales activities, as well as the full impact of an
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. Changes in the competitive environment for loans should be a tailwind.
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 -3.57% -$49.7 million • Approximately 73% of the total loan portfolio are variable rate or fixed rate that reprice within a year Down 100 Ramp, year 1 -2.30% -$32.0 million • Approxima
Slide 20: BOK Financial Corporation
BOK FINANCIAL CORPORATION