Bok Financial Corporation · NASDAQ:BOKF
Bok Financial — Investor Presentation (2020)
22 slides from Bok Financial's investor presentation, 2020
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 • Proven ability to deliver Additional Mortgage Banking Markets organic growth De
Slide 4: Core Strategy
Core Strategy Build a recession-ready bank that will outperform peers across the economic cycle $550,000 $500,000 $450,000 Earnings Per Share CAGR across 28 year history of BOKF is 9.7% $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $0 “There is no principle more emphasized i
Slide 5: Diverse Revenue Sources
Diverse Revenue Sources • Nearly 40% fee income is a differentiator for BOKF compared to other midsized regional banks Portfolio Composition at 12/31/2019 • Well diversified: no single component of fee income accounts for more than 10% of total revenue Brokerage and Trading • Further diversity withi
Slide 6: Strong Balance Sheet
Strong Balance Sheet Metric: 12/31/2019 Period End Loans $21.8 billion Period End Deposits $27.6 billion Loan to Deposit Ratio 79% Regulatory minimum Capital Ratios: 12/31/2019 for well-capitalized: Common Equity Tier 1 7% 11.39% Tier 1 Capital Ratio 8.5% 11.39% Total Capital Ratio 10.5% 12.94% Leve
Slide 7: Strong Core Deposit Franchise
Strong Core Deposit Franchise Deposit mix and cost ($bn) Geographic deposit mix Demand Interest-bearing transaction Savings Time TX 23% $30 $28 NM 5% $25 8% AR 2% 1% $24 $23 $22 $21 CO OK 14% 48% $18 56% AZ KS/MO 5% 4% $12 MSA Branches Deposit share Tulsa, OK 24 32% Dallas-Fort Worth-Arlington, TX 2
Slide 8: Diversified Loan Portfolio
Diversified Loan Portfolio Loan Portfolio Segmentation Loan Portfolio by Collateral Location Commercial TX Personal Real Estate 32% 6% 20% OK 16% Healthcare 14% Residential 10% NM 4% CO Energy Other 13% 18% 21% General C&I AZ 32% 8% KS/MO 6% Disciplined concentration management Diversified by sector
Slide 9: A National Energy Banking Leader
A National Energy Banking Leader Over 100 year history in energy lending Portfolio Composition at 12/31/2019 and a playbook 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 to confirm pr
Slide 10: Healthcare Banking Expertise
Healthcare Banking Expertise • Growing line of business within commercial banking Portfolio Composition at 12/31/2019 • As of December 31, 2019, outstandings totaled $3.0 billion across 31 states • Healthcare portfolio characteristics: Favorable LIBOR spreads Above-average loan utilization rates
Slide 11: Commercial Real Estate
Commercial Real Estate CRE Portfolio by Product Type Office Retail 21% 18% • $4.4 billion outstanding and $1.4 billion unfunded commitments at December 31, 2019 • BOKF allocates 175% of Tier 1 capital plus Industrial 19% reserves to CRE • Further controls and limitations by product type and geograph
Slide 12: Wealth Management
Wealth Management Four primary lines of business 500 Wealth Management Revenue 450 • Private Wealth 400 • BOK Financial Advisors CAGR: 7.8% 350 • Institutional Wealth Management 300 • Cavanal Hill Investment Management 250 • Clients include high net worth individuals, corporations, pensions, 200 fou
Slide 13: Transaction Processing
Transaction Processing 800 EFT Transaction Debit Processing & ATM Network Volumes (Mil) 700 • Among the top 10 networks in the US 600 CAGR: 7.3% • Operates nationally with customers based in 26 states and the Virgin Islands; more than 65% of 500 clients outside Oklahoma 400 • Clients: Banks / Credit
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 2019 Direct mortgage origination Servicing Rev. Originating and Marketing Rev. through BOKF retail network Mortgage Servicing 25.0 • Annua
Slide 15: 4Q 2019 Financial Results
© BOK FINANCIAL 4Q 2019 Financial Results ‘N 15
Slide 16: Fourth Quarter Summary
Fourth Quarter Summary Net Income- Annual Net Income- Quarter $142.2 $137.6 $500.8 $445.6 $110.6 $2.00 $110.4 $1.93 $7.03 $108.5 $334.6 $6.63 $1.54 $1.56 $5.11 $1.50 2017 2018 2019 4Q18 1Q19 2Q19 3Q19 4Q19 Net income attributable to shareholders Net income attributable to shareholders Net income per
Slide 17: Loan Portfolio
Loan Portfolio Seq. Dec 31, Sept 30, Dec 31, Loan YOY Loan ($mil) 2019 2019 2018 Growth Growth Energy $3,973.4 $4,114.3 $3,590.3 (3.4)% 10.7% Services 3,122.2 3,266.2 3,258.2 (4.4)% (4.2)% Healthcare 3,033.9 3,033.0 2,799.3 --% 8.4% Wholesale/retail 1,760.9 1,848.6 1,621.2 (4.7)% 8.6% Manufacturing
Slide 18: Net Interest Revenue and Margin
Net Interest Revenue and Margin ($mil) Q4 2019 Q3 2019 Q2 2019 Q1 2019 Q4 2018 Net interest revenue $270.2 $279.1 $285.4 $278.1 $285.7 Provision for credit losses $19.0 $12.0 $5.0 $8.0 $9.0 NIR after provision $251.2 $267.1 $280.4 $270.1 $276.7 Net interest margin 2.88% 3.01% 3.30% 3.30% 3.40% • Net
Slide 19: Fees and Commissions
Fees and Commissions Revenue, $mil Growth: Quarterly, Quarterly, Year over Trailing 12 Q4 2019 Sequential Year Months Brokerage and Trading $43.8 —% 56.0% 10.9% Transaction Card 22.5 2.4% 9.1% 2.2% Fiduciary and Asset Management 45.0 3.2% 3.1% (0.8)% Deposit Service Charges and Fees 27.3 (5.2)% (7.0
Slide 20: Expenses
Expenses %Incr. %Incr. ($mil) Q4 2019 Q3 2019 Q4 2018 Seq. YoY Personnel expense $168.4 $162.6 $160.7 3.6% 4.8% Non-personnel expense $120.4 $116.7 $123.9 3.1% (2.9)% Total operating expense $288.8 $279.3 $284.6 3.4% 1.5% Efficiency Ratio 63.65% 59.31% 63.25% • Personnel expense up $5.8 million larg
Slide 21: Key Credit Quality Metrics
Key Credit Quality Metrics Non-accruals Net charge-offs (annualized) to average loans $183.8 $181.0 0.40% $172.5 $163.2 $152.6 0.23% 0.22% 0.19% 0.19% 0.20% 0.14% 0.00% 4Q18 1Q19 2Q19 3Q19 4Q19 4Q18 1Q19 2Q19 3Q19 4Q19 Energy Healthcare CRE Residential and Other • Total non-accrual loans up $8.5 mil
Slide 22: Forecast and Assumptions
Forecast and Assumptions • Average securities balances remain comparable to current levels as we manage to a relatively neutral interest rate risk position. • Average loan growth around three to four percent, with lower growth in Energy compared to 2019. • Average deposits are expected to cover loan