Bok Financial Corporation · NASDAQ:BOKF
Bok Financial — Q2 2016 Earnings Presentation
19 slides from Bok Financial's earnings presentation, Jul 27, 2016
Slide 1: Second Quarter 2016 Earnings Conference Call
Second Quarter 2016 Earnings Conference Call July 27, 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: Second Quarter Summary
Second Quarter Summary: Net Income Q2 2016 Q1 2016 Q2 2015 $79.2 $65.8 Diluted EPS $1.00 $0.64 $1.15 $74.9 Net income before $96.8 $62.4 $120.9 $59.6 taxes ($M) $42.6 $1.15 $1.09 $0.89 $1.00 Net income $65.8 $42.6 $79.2 $0.64 attributable to BOKF shareholders ($M) 2Q15 3Q15 4Q15 1Q16 2Q16 Net income
Slide 5: Additional Details
Additional Details Annualized Quarterly Quarterly Year over Year ($B) Q2 2016 Growth Growth Growth Period-End Loans $16.4 2.4% 9.6% 8.5% Average Loans $16.3 1.7% 6.8% 9.1% Fiduciary Assets $39.9 2.1% 8.4% 3.0% Assets Under Management $73.0 1.6% 6.4% 6.4% or in Custody • Strong loan growth in Q2 driv
Slide 6: Steven Nell, Chief Financial Officer: Financial Overview
Steven Nell Chief Financial Officer Financial Overview 6
Slide 7: Net Interest Revenue and Net Interest Margin
Net Interest Revenue Net Interest Margin Q2 Q1 Q4 Q3 Q2 ($mil) 2016 2016 2015 2015 2015 Net Interest Revenue $182.6 $182.6 $181.3 $178.6 $175.7 Provision For Credit Losses $ 20.0 $ 35.0 $ 22.5 $ 7.5 $ 4.0 Net Interest Revenue After Provision $162.6 $147.6 $158.8 $171.1 $171.7 Net Interest Margin * 2
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 $39.5 22.2% 9.8% 0.1% Transaction Card 35.0 8.0% 6.6% 4.2% Fiduciary and Asset Management 34.8 8.6% 6.4% 3.4% Deposit Service Charges and Fees 22.6 0.3% 1.3% 2.8%
Slide 9: Expenses
Expenses %Incr. %Incr. ($mil) Q2 2016 Q1 2016 Q2 2015 Seq. YOY Personnel Expense $142.5 $135.8 $132.7 4.9% 7.4% Other Operating Expense $112.2 $109.1 $ 94.4 2.8% 18.9% Total Operating Expense $254.7 $244.9 $227.1 4.0% 12.2% • Increase in personnel expense largely due to higher variable compensation
Slide 10: Other Balance Sheet Statistics
Other Balance Sheet Statistics Q2 2016 Q1 2016 Q2 2015 Period End AFS Securities $8.8 billion $8.9 billion $9.0 billion Average AFS securities $8.9 billion $9.0 billion $9.1 billion Period End Deposits $20.8 billion $20.4 billion $21.1 billion Average Deposits $20.5 billion $20.6 billion $21.1 billi
Slide 11: 2016 Assumptions
2016 Assumptions Mid-single-digit loan growth for the full year No plans to materially reduce securities portfolio due to achievement of neutral balance sheet Stable NIM Increasing NII Loan loss provision of $8-$12 million per quarter for balance of 2016 Total net chargeoffs in 2016 expe
Slide 12: Stacy Kymes, EVP-Corporate Banking
Stacy Kymes EVP-Corporate Banking 12
Slide 13: Loan Portfolio by Geography
Loan Portfolio by Geography Seq. YOY Jun 30 Mar 31 Loan Jun 30 Loan ($mil) 2016 2016 Growth 2015 Growth OK $6,141.6 $6,019.3 2.0% $5,749.0 6.8% TX 5,668.9 5,576.8 1.7% 5,281.7 7.3% NM 846.2 853.6 (0.9)% 819.6 3.2% AR 164.3 154.6 6.3% 197.3 (16.7)% CO 1,408.7 1,326.9 6.2% 1,333.7 5.6% AZ 1,373.2 1,32
Slide 14: Commercial Loan Growth
Commercial Loan Growth Seq. YOY Jun 30 Mar 31 Loan Jun 30 Loan ($mil) 2016 2016 Growth 2015 Growth Energy $2,818.6 $3,029.4 (7.0)% $2,902.1 (2.9)% Services 2,830.9 2,728.9 3.7% 2,681.1 5.6% Healthcare 2,051.1 1,995.4 2.8% 1,646.0 24.6% Wholesale/retail 1,533.0 1,451.8 5.6% 1,533.7 (0.1)% Manufacturi
Slide 15: Energy
Energy Energy Services 9% At 6/30/16: Midstream & Other $4.9 billion commitments and $2.8 billion O/S 12% $254 million new commitments booked in 2016 ~60/40 split between oil and gas E&P line utilization 60%, down from 64% in Q1 Oil & Gas Producers Allowance for credit losses to period end
Slide 16: Commercial Real Estate
Commercial Real Estate Seq. YOY Jun 30 Mar 31 Loan Jun 30 Loan ($mil) 2016 2016 Growth 2015 Growth Residential Construction and Land Development $157.6 $171.9 (8.3%) $148.6 6.1% Retail 795.4 810.5 (1.9%) 688.4 15.5% Office 769.1 695.6 10.6% 563.1 36.6% Multifamily 787.2 733.7 7.3% 711.3 10.7% Indust
Slide 17: Key Credit Quality Metrics
Key Credit Quality Metrics $247.2 $250.0 $241.8 Nonaccrual Loans 1.00% TTM Net Recoveries (Charge Offs) to Average Loans $200.0 0.50% Energy credit migration $147.1 $159.6 $168.1 has stabilized… 0.04% 0.03% $150.0 0.00% -0.22% $61.2 0.02% $100.0 $90.9 $89.3 -0.18% -0.50% $50.0 …and there are no sign
Slide 18: Closing Remarks
Steven G. Bradshaw Chief Executive Officer Closing Remarks 18
Slide 19: Question and Answer Session
Question and Answer Session 19