Bok Financial Corporation · NASDAQ:BOKF
Bok Financial — Q4 2016 Earnings Presentation
19 slides from Bok Financial's earnings presentation, Jan 25, 2017
Slide 1: Fourth Quarter 2016 Earnings Conference Call
Fourth Quarter 2016 Earnings Conference Call January 25, 2017 1
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
Slide 3: Steven G. Bradshaw, Chief Executive Officer
Steven G. Bradshaw Chief Executive Officer 3
Slide 4: Fourth Quarter Summary
Fourth Quarter Summary: Net Income Q4 2016 Q3 2016 Q4 2015 $74.3 $65.8 Diluted EPS $0.76 $1.13 $0.89 $59.6 Net income before $72.4 $107.1 $87.3 $50.0 $42.6 taxes ($M) $1.00 $1.13 Net income $50.0 $74.3 $59.6 $0.89 $0.76 $0.64 attributable to BOKF shareholders ($M) 4Q15 1Q16 2Q16 3Q16 4Q16 Net income
Slide 5: Additional Details
Additional Details Annualized Quarterly Quarterly Year over Year ($B) Q4 2016 Growth Growth Growth Period-End Loans $17.0 3.2% 12.8% 6.6% Mobank Loans $0.5 Period –End Loans, excluding Mobank $16.5 0.2% 1.0% 3.5% Fiduciary Assets $41.8 1.4% 5.4% 9.0% Assets Under Management $75.4 0.2% 0.7% 6.1% or i
Slide 6: Steven Nell, Chief Financial Officer: Financial Overview
Steven Nell Chief Financial Officer Financial Overview 6
Slide 7: Net Interest Revenue and Net Interest Margin
Net Interest Revenue Net Interest Margin Q4 Q3 Q2 Q1 Q4 ($mil) 2016 2016 2016 2016 2015 Net Interest Revenue $194.2 $187.8 $182.6 $182.6 $181.3 Provision For Credit Losses $ 0 $ 10.0 $ 20.0 $ 35.0 $ 22.5 Net Interest Revenue After Provision $194.2 $177.8 $162.6 $147.6 $158.8 Net Interest Margin * 2.
Slide 8: Fees and Commissions
Fees and Commissions Revenue, $mil Change: Quarterly, Quarterly, Trailing 12 Q4 16 Sequential Year over Year Months Brokerage and Trading $28.5 (25.0)% (5.8)% 6.8% Transaction Card 34.5 1.7% 6.8% 5.5% Fiduciary and Asset Management 34.5 1.4% 10.8% 7.4% Deposit Service Charges and Fees 23.4 (1.3)% 2.
Slide 9: Expenses
Expenses %Incr. %Incr. ($mil) Q4 2016 Q3 2016 Q4 2015 Seq. YOY Personnel Expense * $141.1 $139.2 $131.1 1.4% 7.6% Other Operating Expense $124.4 $118.9 $ 99.3 4.7% 25.3% Total Operating Expense $265.5 $258.1 $230.4 2.9% 15.2% • Unusual items in Q4 include Mobank closing costs ($4.7 million), severan
Slide 10: Other Balance Sheet Statistics
Other Balance Sheet Statistics Dec 31 Sep 30 Dec 31 2016 2016 2015 Period End AFS Securities $8.7 billion $8.9 billion $9.0 billion Average AFS securities $8.8 billion $8.9 billion $9.0 billion Period End Deposits $22.7 billion $21.1 billion $21.1 billion Average Deposits $21.7 billion $20.8 billion
Slide 11: 2017 Assumptions
2017 Assumptions Mid-single-digit loan growth for the full year Stable to increasing net interest margin Low single digit net interest income growth Loan loss provision of $20 - $30 million for the year Low-single-digit revenue growth from fee-generating businesses on a trailing twelve mon
Slide 12: Stacy Kymes, EVP-Corporate Banking
Stacy Kymes EVP-Corporate Banking 12
Slide 13: Loan Portfolio by Geography
Loan Portfolio by Geography Seq. YOY Dec 31 Sep 30 Loan Dec 31 Loan ($mil) 2016 2016 Growth 2015 Growth OK $5,765.7 $6,014.3 (4.1)% $6,187.0 (6.8)% TX 5,978.2 5,811.4 2.9% 5,535.3 8.0% NM 803.4 819.8 (2.0)% 821.3 (2.2)% AR 173.7 169.9 2.2% 170.7 1.8% CO 1,393.5 1,370.1 1.7% 1,288.2 8.2% AZ 1,522.5 1
Slide 14: Commercial Loan Growth
Commercial Loan Growth Seq. YOY Dec 31 Sep 30 Loan Dec 31 Loan ($mil) 2016 2016 Growth 2015 Growth Energy $2,497.9 $2,520.8 (0.9)% $3,097.3 (19.4)% Services 3,109.0 2,936.6 5.9% 2,784.3 11.7% Healthcare 2,201.9 2,085.1 5.6% 1,883.4 16.9% Wholesale/retail 1,576.8 1,602.0 (1.6)% 1,422.1 10.9% Manufact
Slide 15: Energy
Energy Energy Services 8% At 12/31/16: Midstream $2.7 billion commitments and $2.5 billion O/S & Other 13% ~60/40 split between oil and gas E&P line utilization 50%, compared to 54% at 9/30/16 Oil & Gas Q4 energy net recoveries of $644,000 Producers Cumulative chargeoffs in the 2014-2016 c
Slide 16: Commercial Real Estate
Commercial Real Estate Seq. YOY Dec 31 Sep 30 Loan Dec 31 Loan ($mil) 2016 2016 Growth 2015 Growth Retail $761.9 $801.4 (4.9)% $796.5 (4.3)% Multifamily 903.3 873.8 3.4% 751.1 20.3% Office 798.9 752.7 6.1% 637.7 25.3% Industrial 871.7 838.0 4.0% 563.2 54.8% Residential Construction and Land Developm
Slide 17: Key Credit Quality Metrics
Key Credit Quality Metrics $241.8 $247.2 $250.0 $237.0 $231.0 1.50% Net charge offs (annualized) to average loans $200.0 1.00% $159.6 $168.1 $143.0 $132.5 0.56% $147.1 $150.0 0.50% $61.2 0.08% $100.0 -0.03% 0.00% 0.15% 0.18% $50.0 $94.0 $98.5 $85.9 $82.2 $79.1 -0.50% 4Q15 1Q16 2Q16 3Q16 4Q16 $- 4Q15
Slide 18: Steven G. Bradshaw, Closing Remarks
Steven G. Bradshaw Chief Executive Officer Closing Remarks 18
Slide 19: Question and Answer Session
Question and Answer Session 19