Bok Financial Corporation · NASDAQ:BOKF
Bok Financial — Q1 2017 Earnings Presentation
19 slides from Bok Financial's earnings presentation, Apr 26, 2017
Slide 1: First Quarter 2017 Earnings Conference Call
First Quarter 2017 Earnings Conference Call April 26, 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: First Quarter Summary
First Quarter Summary: Net Income $88.4 Q1 2017 Q4 2016 Q1 2016 $74.3 $65.8 Diluted EPS $1.35 $0.76 $0.64 Net income before $126.8 $72.4 $62.4 $50.0 taxes ($M) $42.6 $1.35 $1.13 Net income $88.4 $50.0 $42.6 $1.00 $0.76 attributable to BOKF $0.64 shareholders ($M) 1Q16 2Q16 3Q16 4Q16 1Q17 Net income
Slide 5: Additional Details
Additional Details Annualized Quarterly Quarterly Year over Year ($B) Q1 2017 Growth Growth Growth Period-End Loans $17.0 --% 0.1% 6.0% Average Loans $17.1 2.5% *10.0% 7.2% Fiduciary Assets $44.3 6.1% 24.4% 13.3% Assets Under Management $77.4 2.6% 10.4% 7.6% or in Custody • Loans flat in Q1 but stil
Slide 6: Steven Nell, Chief Financial Officer: Financial Overview
Steven Nell Chief Financial Officer Financial Overview 6
Slide 7: Net Interest Revenue and Net Interest Margin
Net Interest Revenue Net Interest Margin Q1 Q4 Q3 Q2 Q1 ($mil) 2017 2016 2016 2016 2016 Net Interest Revenue $201.2 $194.2 $187.8 $182.6 $182.6 Provision For Credit Losses $ -- $ -- $ 10.0 $ 20.0 $ 35.0 Net Interest Revenue After Provision $201.2 $194.2 $177.8 $162.6 $147.6 Net Interest Margin * 2.8
Slide 8: Fees and Commissions
Fees and Commissions Revenue, $mil Change: Quarterly, Quarterly, Trailing 12 Q1 17 Sequential Year over Year Months Brokerage and Trading $33.6 18.0% 4.0% 7.3% Transaction Card 32.1 (6.9)% (0.7)% 4.3% Fiduciary and Asset Management 38.6 11.9% 20.5% 12.1% Deposit Service Charges and Fees 23.0 (1.4)%
Slide 9: Expenses
Expenses %Incr. %Incr. ($mil) Q1 2017 Q4 2016 Q1 2016 Seq. YOY Personnel Expense $136.4 $141.1 $133.6 (3.3)% 2.1% Other Operating Expense $108.3 $124.4 $109.0 (13.0)% (0.7)% Total Operating Expense $244.7 $265.5 $242.6 (7.8)% 0.9% Mobank acquisition: • One time integration expenses totaled $2.0 mill
Slide 10: Other Balance Sheet Statistics
Other Balance Sheet Statistics Mar 31 Dec 31 Mar 31 2017 2016 2016 Period End AFS Securities $8.4 billion $8.7 billion $8.9 billion Average AFS securities $8.6 billion $8.8 billion $9.0 billion Period End Deposits $22.6 billion $22.7 billion $20.4 billion Average Deposits $22.4 billion $21.7 billion
Slide 11: 2017 Assumptions
2017 Assumptions Mid-single-digit loan growth for the full year $700 million reduction in available for sale securities portfolio for the full year Stable to increasing net interest margin Low-single-digit net interest revenue growth (linked quarter annualized) Loan loss provision of $15 -
Slide 12: Stacy Kymes, EVP-Corporate Banking
Stacy Kymes EVP-Corporate Banking 12
Slide 13: Loan Portfolio by Type and by Market
Loan Portfolio by Type: Loan Portfolio by Market: Seq. Seq. Mar 31 Dec 31 Loan Mar 31 Dec 31 Loan ($mil) 2017 2016 Growth ($mil) 2017 2016 Growth Commercial and OK $5,595.3 $5,765.7 (3.0)% $10,327.1 $10,390.8 (0.6)% Industrial Commercial TX 6,145.0 5,978.2 2.8% 3,871.1 3,809.0 1.6% Real Estate NM 83
Slide 14: Commercial & Industrial and Commercial Real Estate
Commercial & Industrial: Commercial Real Estate Seq. Seq. Mar 31 Dec 31 Loan Mar 31 Dec 31 Loan ($mil) 2017 2016 Growth ($mil) 2017 2016 Growth Energy $2,537.1 $2,497.9 1.6% Retail $745.0 $761.9 (2.2)% Services 3,013.4 3,109.0 (3.1)% Multifamily 923.0 903.3 2.2% Healthcare 2,265.6 2,201.9 2.9% Offic
Slide 15: Energy Lending Update
Energy Lending Update Energy Services 7% Midstream & Other 15% Oil & Gas Producers 78% At 3/31/17: $2.8 billion unfunded commitments and $2.5 billion O/S E&P line utilization 51% 20 year average gross loss rate on E&P loans Q1 energy net chargeoffs $309,000 (gross chargeoffs as a percent of pe
Slide 16: Retail CRE Update
Retail CRE Update Total outstandings of $745 million at 3/31/17 Criticized/classified Retail CRE loans totaled $6MM at 3/31/17 – less than 1% of the portfolio $4MM paid off in April No exposure to traditional enclosed malls Very limited exposure to high-profile troubled retailers Well-di
Slide 17: Key Credit Quality Metrics
Key Credit Quality Metrics $247.2 $250.0 $241.8 $237.0 $231.0 1.50% Net charge offs (annualized) $207.6 to average loans $200.0 1.00% $159.6 $168.1 $143.0 $132.5 0.56% $150.0 $110.4 0.50% 0.18% $100.0 -0.02% 0.00% 0.15% -0.03% $50.0 $94.0 $98.5 $97.2 $82.2 $79.1 -0.50% 1Q16 2Q16 3Q16 4Q16 1Q17 $- 1Q
Slide 18: Closing Remarks
Steven G. Bradshaw Chief Executive Officer Closing Remarks 18
Slide 19: Question and Answer Session
Question and Answer Session 19