Bok Financial Corporation · NASDAQ:BOKF
Bok Financial — Q3 2016 Earnings Presentation
19 slides from Bok Financial's earnings presentation, Oct 26, 2016
Slide 1: Third Quarter 2016 Earnings Conference Call
Third Quarter 2016 Earnings Conference Call October 26, 2016 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: Third Quarter Summary
Third Quarter Summary: Net Income Q3 2016 Q2 2016 Q3 2015 $74.3 $74.9 $65.8 Diluted EPS $1.13 $1.00 $1.09 Net income before $107.1 $96.8 $109.9 $59.6 taxes ($M) $42.6 $1.13 Net income $74.3 $65.8 $74.9 $1.09 $1.00 $0.89 $0.64 attributable to BOKF shareholders ($M) 3Q15 4Q15 1Q16 2Q16 3Q16 Net income
Slide 5: Additional Details
Additional Details Annualized Quarterly Quarterly Year over Year ($B) Q3 2016 Growth Growth Growth Period-End Loans $16.5 0.4% 1.4% 7.1% Average Loans $16.4 1.1% 4.5% 8.3% Fiduciary Assets $41.2 3.3% 13.0% 9.0% Assets Under Management $75.3 3.2% 12.6% 12.4% or in Custody • Large end-of-quarter paydo
Slide 6: Steven Nell, Chief Financial Officer: Financial Overview
Steven Nell Chief Financial Officer Financial Overview 6
Slide 7: Net Interest Revenue and Net Interest Margin
Net Interest Revenue Net Interest Margin Q3 Q2 Q1 Q4 Q3 ($mil) 2016 2016 2016 2015 2015 Net Interest Revenue $187.8 $182.6 $182.6 $181.3 $178.6 Provision For Credit Losses $ 10.0 $ 20.0 $ 35.0 $ 22.5 $ 7.5 Net Interest Revenue After Provision $177.8 $162.6 $147.6 $158.8 $171.1 Net Interest Margin *
Slide 8: Fees and Commissions
Fees and Commissions Revenue, $mil Growth: Quarterly, Quarterly, Trailing 12 Q2 16 Sequential Year over Year Months Brokerage and Trading $38.0 (3.9)% 20.3% 7.9% Transaction Card 33.9 (2.9)% 4.4% 4.5% Fiduciary and Asset Management 34.1 (2.1)% 10.6% 5.1% Deposit Service Charges and Fees 23.7 4.6% 0.
Slide 9: Expenses
Expenses %Incr. %Incr. ($mil) Q3 2016 Q2 2016 Q3 2015 Seq. YOY Personnel Expense $143.2 $142.5 $129.1 0.5% 10.9% Other Operating Expense $118.9 $112.2 $ 95.6 6.0% 24.5% Total Operating Expense $262.1 $254.7 $224.6 2.9% 16.7% • Increase in personnel expense largely due to higher variable compensation
Slide 10: Other Balance Sheet Statistics
Other Balance Sheet Statistics Q3 2016 Q2 2016 Q3 2015 Period End AFS Securities $8.9 billion $8.8 billion $8.8 billion Average AFS securities $8.9 billion $8.9 billion $8.9 billion Period End Deposits $21.1 billion $20.8 billion $20.6 billion Average Deposits $20.8 billion $20.5 billion $20.7 billi
Slide 11: 2016 and Preliminary 2017 Assumptions
2016 and Preliminary 2017 Assumptions Q4 2016: Preliminary 2017: Mid-single-digit loan growth for the full year Mid-single-digit loan growth Stable to increasing net interest margin and net Stable net interest margin and net interest income interest income Loan loss provision $5-$15 millio
Slide 12: Stacy Kymes, EVP-Corporate Banking
Stacy Kymes EVP-Corporate Banking 12
Slide 13: Loan Portfolio by Geography
Loan Portfolio by Geography Seq. YOY Sep 30 Jun 30 Loan Sep 30 Loan ($mil) 2016 2016 Growth 2015 Growth OK $6,014.3 $6,141.7 (2.1)% $5,782.5 4.0% TX 5,811.4 5,668.9 2.5% 5,426.4 7.1% NM 819.7 846.2 (3.1)% 812.7 0.9% AR 169.9 164.4 3.4% 171.3 (0.8)% CO 1,370.1 1,408.7 (2.7)% 1,340.4 2.2% AZ 1,477.4 1
Slide 14: Commercial Loan Growth
Commercial Loan Growth Seq. YOY Sep 30 Jun 30 Loan Sep 30 Loan ($mil) 2016 2016 Growth 2015 Growth Energy $2,520.8 $2818.7 (10.6)% $2,838.2 (11.2)% Services 2,936.6 2,830.9 4.5% 2,706.6 9.3% Healthcare 2,085.1 2,051.1 1.7% 1,741.7 19.7% Wholesale/retail 1,602.0 1,533.0 4.5% 1,461.9 9.6% Manufacturin
Slide 15: Energy
Energy Energy Services 8% At 9/30/16: $4.9 billion commitments and $2.5 billion O/S Midstream $200 million new commitments booked in Q3 2016 & Other 13% ~60/40 split between oil and gas E&P line utilization 54%, compared to 60% at 6/30/16 Allowance for credit losses to period end loans: 3.
Slide 16: Commercial Real Estate
Commercial Real Estate Seq. YOY Sep 30 Jun 30 Loan Sep 30 Loan ($mil) 2016 2016 Growth 2015 Growth Residential Construction and Land Development $159.9 $157.6 1.5% $153.5 4.2% Retail 801.4 795.4 0.7% 769.4 4.1% Office 752.7 769.1 (2.1)% 626.2 20.2% Multifamily 873.8 787.2 11.0% 758.7 15.2% Industria
Slide 17: Key Credit Quality Metrics
Key Credit Quality Metrics $250.0 $241.8 $247.2 $237.0 Net annualized charge offs Nonaccrual Loans 1.10% to average loans $200.0 0.90% 0.70% $147.1 $159.6 $168.1 $143.0 $150.0 0.50% 0.30% 0.56% 0.15% $61.2 0.08% 0.05% $100.0 $89.3 0.10% 0.18% $17.8 -0.10% $50.0 -0.30% Note: 10-yr NCO average is 36 b
Slide 18: Closing Remarks
Steven G. Bradshaw Chief Executive Officer Closing Remarks 18
Slide 19: Question and Answer Session
Question and Answer Session 19