Bok Financial Corporation · NASDAQ:BOKF
Bok Financial — Q2 2020 Earnings Presentation
21 slides from Bok Financial's earnings presentation, Jul 22, 2020
Slide 1: Second Quarter 2020 Earnings Conference Call
Second Quarter 2020 Earnings Conference Call July 22, 2020 1
Slide 2: Legal Disclaimers
Legal Disclaimers Forward-Looking Statements: 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, the economy generally and the exp
Slide 3: Steven G. Bradshaw, Chief Executive Officer
Steven G. Bradshaw Chief Executive Officer 3
Slide 4: Second Quarter Summary
Second Quarter Summary Net Income $137.6 $142.2 Q2 Q1 Q2 ($mil, exc. EPS) 2020 2020 2019 $110.4 Net Income $64.7 $62.1 $137.6 Diluted EPS $0.92 $0.88 $1.93 $2.00 $1.93 $1.56 $62.1 $64.7 Net income before taxes $80.1 $79.3 $175.4 $0.88 $0.92 Provision for credit losses $135.3 $93.8 $5.0 Pre-provision
Slide 5: Additional Details
Additional Details Quarterly Year over ($bil) Q2 2020 Growth Year Growth Period-End Loans $24.2 7.5% 8.5% Average Loans $24.1 9.8% 9.5% Period-End Deposits $33.9 15.9% 33.9% Average Deposits $32.7 15.8% 29.8% Fiduciary Assets $50.6 7.5% 2.6% Assets Under Management or in Custody $79.5 4.8% (2.8)% •
Slide 6: Stacy Kymes, EVP-Corporate Banking
Stacy Kymes EVP-Corporate Banking 6
Slide 7: Loan Portfolio
Loan Portfolio Seq. Jun 30, Mar 31, Jun 30, Loan YOY Loan ($mil) 2020 2020 2019 Growth Growth Energy $3,974.2 $4,111.7 $3,921.4 (3.3)% 1.3% Services 3,779.9 3,955.7 4,105.1 (4.4)% (7.9)% Healthcare 3,289.3 3,165.1 2,926.5 3.9% 12.4% General business 3,115.1 3,563.5 3,383.9 (12.6)% (7.9)% Total C&I $
Slide 8: Marc Maun, EVP-Chief Credit Officer
Marc Maun EVP-Chief Credit Officer 8
Slide 9: COVID-19 Impact Areas
COVID-19 Impact Areas Percent of Total Percent of PPP Loan ($mil) Outstanding Portfolio PPP Loans Portfolio Entertainment and Recreation $592.8 2.45% $80.7 3.88% • Gaming Industries 388.0 1.61% 34.5 1.66% • All other Entertainment and Recreation 204.8 0.85% 46.2 2.22% Retail 588.0 2.43% 118.1 5.67%
Slide 10: ACL
ACL Combined ACL Portfolio Economic Combined ACL 03/31/20 Changes Factors 06/30/20 $54.6 million $70.1 million $468.5 Impairments Macroeconomic million variables Balances Weightings assigned Risk grades based on three $343.8 scenarios Payment profiles million • Combined ACL includes reserves for unf
Slide 11: Key Credit Quality Metrics
Key Credit Quality Metrics Non-accruals Net charge-offs (annualized) to average loans $255.4 0.40% 0.31% $183.8 $181.0 $172.5 $163.2 0.23% 0.22% 0.19% 0.20% 0.14% 0.00% 2Q19 3Q19 4Q19 1Q20 2Q20 2Q19 3Q19 4Q19 1Q20 2Q20 Energy Healthcare CRE Residential and Other • Net charge-offs decreased to 23 bas
Slide 12: Scott Grauer, EVP-Wealth Management
Scott Grauer EVP-Wealth Management 12
Slide 13: Wealth Management
Wealth Management Quarterly, Quarterly, Trailing 12 Q2 2020 Sequential Year over Year Months Total Revenue ($M) $133.6 14.4% 18.3% 4.5% Brokerage and Trading ($M) 54.7 19.4% 60.7% 13.2% Fiduciary and Asset Management ($M) 41.3 (7.2)% (8.4)% (2.1)% Net Direct Contribution ($M) 53.1 37.4% 21.9% 5.8% T
Slide 14: Steven Nell, Chief Financial Officer
Steven Nell Chief Financial Officer 14
Slide 15: Net Interest Revenue and Margin
Net Interest Revenue and Margin ($millions) Q2 2020 Q1 2020 Q4 2019 Q3 2019 Q2 2019 Net interest revenue $278.1 $261.4 $270.2 $279.1 $285.4 Net interest margin 2.83% 2.80% 2.88% 3.01% 3.30% Yield on loans 3.63% 4.50% 4.75% 5.12% 5.39% Cost of interest-bearing 0.34% 0.98% 1.09% 1.17% 1.13% deposits C
Slide 16: Fees and Commissions
Fees and Commissions Revenue, $mil Growth: Quarterly, Quarterly, Trailing 12 Q2 2020 Sequential Year over Year Months Brokerage and Trading $62.0 22.1% 53.0% 12.0% Transaction Card 22.9 4.8% 4.7% 1.2% Fiduciary and Asset Management 41.3 (7.2)% (8.4)% (2.1)% Deposit Service Charges and Fees 22.0 (15.
Slide 17: Expenses
Expenses %Incr. %Incr. ($mil) Q2 2020 Q1 2020 Q2 2019 Seq. YOY Personnel expense $176.2 $156.2 $160.3 12.8% 9.9% Other operating expense $119.2 $112.4 $116.8 6.0% 2.0% Total operating expense $295.4 $268.6 $277.1 10.0% 6.6% Efficiency Ratio 59.57% 58.62% 59.51% • Personnel expense up $20.1 million s
Slide 18: Liquidity & Capital
Liquidity & Capital Q2 2020 Q1 2020 Q2 2019 Loan to Deposit Ratio 71.3% 76.8% 87.9% Period End Deposits $33.9 billion $29.2 billion $25.3 billion Available secured wholesale $14.6 billion $12.8 billion $7.8 billion borrowing capacity Common Equity Tier 1 11.4% 11.0% 10.8% Total Capital Ratio 13.4% 1
Slide 19: Forecast and Assumptions
Forecast and Assumptions • Loan growth to remain soft for the foreseeable future • Available-for-sale security portfolio yield expected to decrease as prepayments force reinvestment at lower rates • Incremental deposit cost capture possible, though most has been realized to-date • Fee revenues to co
Slide 20: Steven G. Bradshaw, Chief Executive Officer
Steven G. Bradshaw Chief Executive Officer 20
Slide 21: Question and Answer Session
Question and Answer Session 21