Bok Financial Corporation · NASDAQ:BOKF
Bok Financial — Q4 2015 Earnings Presentation
25 slides from Bok Financial's earnings presentation, January 2016
Slide 1: Investor Presentation
Investor Presentation NASDAQ: BOKF 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: BOKF at a Glance
BOKF at a Glance Top 25 U.S bank holding company Valuable midwest/southwest franchise Seasoned management team Consistent execution and solid performance across all economic cycles Proven ability to deliver At 12/31/15: organic growth Assets $31.5 bil Loans $15.9 bil Leading energy and h
Slide 4: BOKF Investment Attributes
BOKF Investment Attributes Attribute Evidence Focused on long-term shareholder Strong growth in total shareholder return value over several economic cycles Management alignment with Insiders own 69% of outstanding shares shareholders Industry-leading performance 25-year track record of profitability
Slide 5: Delivering Long Term Shareholder Value
Delivering Long Term Shareholder Value As of 12/31/15 10 Yr. TSR 15 Yr. TSR BOKF 65% 395% Rank in Peer Group 7/36 4/36 Peer average 13% 113% Peer median 8% 76% KBW Bank Index (10%) 20% NASDAQ Bank Index 17% 109% “There is no principle more emphasized in our organization than managing for long-term v
Slide 6: Diversified Revenue Sources
Diversified Revenue Sources CAGR 2010-2015: Brokerage & Brokerage and Trading 5.0% Trading 9.5% Transaction Card 4.9% Trans. Trust Fees 14.5% Card Service Charges (2.7%) 9.4% Mortgage Banking 8.9% Net Interest Trust Overall CAGR 5.0% 51.6% Fees 9.3% Svc. Charges 6.6% Mortgage Other 9.9% 3.7% 12 Mont
Slide 7: Strong Core Deposit Franchise
Strong Core Deposit Franchise Market Branches Deposit Share Tulsa, OK 26 29.96 TX Dallas-Fort Worth-Arlington, TX 23 1.71 OK Oklahoma City, OK 20 12.28 Houston-The Woodlands-Sugar Land, TX 14 0.66 NM Denver-Aurora-Lakewood, CO 11 2.05 AR Albuquerque, NM 17 10.05 CO Phoenix-Mesa-Scottsdale, AZ 4 0.99
Slide 8: Commercial Banking
Commercial Banking Diversified by Sector and Geography Loan Portfolio Breakdown - by Sector: Loans by Principal Market: Commercial (Millions) 12/31/2015 (In Millions) 12/31/2015 Energy $ 3,097.3 19.4% Oklahoma 6,187.0 38.8% Services $ 2,784.3 17.5% Texas 5,535.2 34.7% Healthcare $ 1,883.4 11.8% New
Slide 9: Energy
Energy 100 year history in energy lending and expertise to manage through downturns Disciplined focus on senior secured, first lien, Wholesale/ Energy Retail reserve-based lending Services 3% 9% Only 16 basis points of gross losses in energy Midstream for the 15 years ended 12/31/15 6% As of
Slide 10: Q4 Energy Portfolio Stress Test: Energy LLR Appropriateness
Q4 Energy Portfolio Energy LLR Stress Test: Appropriateness: BOK Financial believes its 2.89% LLR Stress Nat Gas Oil for energy loans is appropriate at Test Price $/MMBTU: $/BBL: 12/31/15. Deck: BOK Financial has largely avoided the 2016 $1.80 $25.00 highest-risk areas of the energy 2017 $2.00 $
Slide 11: Healthcare Banking
Healthcare Banking Healthcare Commitments Growing line of business within Medical commercial Services Skilled 30% Nursing $1.9 billion portfolio at 36% 12/31/15 Five year CAGR 18.4% National expertise in skilled nursing facilities and acute care Senior Care hospitals and Memory Care Other
Slide 12: Commercial Real Estate
Commercial Real Estate Disciplined Concentration Management Concentration by Product Type: Concentration by Geography: (In Millions) 12/31/2015 (In Millions) 12/31/2015 Retail 796.5 24.4% Oklahoma 739.8 22.7% Multifamily 751.1 23.0% Texas 1,204.2 36.9% Office 637.7 19.6% New Mexico 313.4 9.6% Indust
Slide 13: Wealth Management
Wealth Management $71 billion in assets under management or custody Fiduciary and Asset Management Revenue ($millions) $126.2 $38.3 billion in fiduciary assets $115.7 More than $1 trillion in traded securities $96.1 annually $80.1 Clients include high net worth individuals, $73.3 $66.2 $69.0
Slide 14: Transaction Processing: ATM Network and Merchant Payments
ATM Network Among the top 10 networks in the US 600 EFT Transaction Operates in 23 states; 60% of clients Volumes (M) outside Oklahoma 500 400 CAGR: 9.91% Clients: 216 Banks, 137 Credit Unions, 5 C-Store partners 300 In 2015, processed 537 million EFT 200 transactions 100 Merchant Payment Pr
Slide 15: Mortgage Banking
Mortgage Banking Top 50 U.S. mortgage originator 200,000 702 employees 150,000 Three distinct origination channels – Retail, Correspondent, 100,000 HomeDirect (online) 50,000 Annual origination volume approaching $7 billion - 2010 2011 2012 2013 2014 2015 Building servicing portfolio to Or
Slide 16: Summary
Summary Diverse sources of revenue Capital and willingness to make accretive acquisitions Deep and experienced Sound financial condition management team Multiple growth drivers Differentiated business model BOK Financial is a high-quality bank holding company that deserves a premium valu
Slide 17: Appendix: 2015 Financial Results
Appendix 2015 Financial Results 17
Slide 18: Financial Highlights
Financial Highlights Full Year 2015 2014 Net Income ($mil) $288.6 $292.4 Diluted EPS $4.21 $4.22 • Double digit year-over-year loan growth • Mid-single-digit year over year revenue growth • Strong expense controls • Higher-than-expected credit costs Fourth Quarter Q4 2015 Q3 2015 Q4 2014 Net Income
Slide 19: Additional Q4 2015 Highlights
Additional Q4 2015 Highlights % % Growth, Growth, ($bil) Q4 2015 Q3 2015 Seq. Q4 2014 YOY Period-End Loans $15.9 $15.4 3.7% $14.2 12.2% 14.9% ann. Avg. Loans 15.6 15.2 2.6% 13.9 12.3% 10.4% ann. Fiduciary Assets $38.3 $37.8 1.5% $36.0 6.5% Assets Under $71.0 $67.0 6.0% $64.6 10.0% Management or in C
Slide 20: Net Interest Revenue and Margin
Net Interest Revenue and Margin Q4 Q3 Q2 Q1 Q4 ($mil) 2015 2015 2015 2015 2014 Net Interest Revenue $181.3 $178.6 $175.7 $167.7 $169.7 Provision for credit losses $ 22.5 $ 7.5 $ 4.0 $ 0.0 $ 0.0 NIR after provision $158.8 $171.1 $171.7 $167.7 $169.7 Net Interest Margin 2.64% 2.61% 2.61% 2.55% 2.61% N
Slide 21: Fees and Commissions Revenue
Fees and Commissions Revenue % Growth, 3 mos % 12 mos ended Growth, % Growth, ended ($mil) 12/31/15 Seq. YOY 12/31/15 Brokerage and trading $30.3 (4.2%) (1.1%) (-3.6%) Transaction card 32.3 (0.6%) 2.7% 4.0% Fiduciary and asset management 31.2 1.2% 1.7% 9.1% Deposit service charges and fees 22.8 (3.4
Slide 22: Expense Review
Expense Review %Incr. %Incr. ($mil) Q4 2015 Q3 2015 Q4 2014 Seq. YOY Personnel Expense $133.2 $129.1 $125.7 3.2% 6.0% Other Operating $ 99.4 $ 95.5 $100.1 4.1% (0.7%) Expense Total operating $232.6 $224.6 $225.9 3.6% 3.0% expense • Higher personnel expense: $1.1 million increase in regular compensat
Slide 23: Other Balance Sheet Statistics
Other Balance Sheet Statistics Q4 2015 Q3 2015 Q4 2014 Period End AFS Securities $9.0 billion $8.8 billion $9.0 billion Average AFS securities $9.0 billion $8.9 billion $9.2 billion Period End Deposits $21.1 billion $20.6 billion $21.1 billion Average deposits $20.7 billion $20.7 billion $20.7 billi
Slide 24: Key Credit Quality Metrics
Key Credit Quality Metrics Combined allowance for credit Net annualized charge-offs to losses to period end loans: average loans: 1.43% 0.08% Combined allowance for credit Non-performing assets to losses to nonaccruing loans*: period end loans and repossessed assets*: 181.5% 0.99% *Excluding
Slide 25: 2016 Assumptions
2016 Assumptions Mid-single-digit loan growth Approximately $200-$250 million per quarter decrease in fixed income portfolio Stable to increasing NIM Increasing NII Provision for credit losses for the full year of $60-$80 million Continued mid-single-digit revenue growth from fee-generat