Bok Financial Corporation · NASDAQ:BOKF
Bok Financial — Investor Presentation (November 2024)
25 slides from Bok Financial's investor presentation, November 2024
Slide 1: Investor Presentation
Investor Presentation November 2024
Slide 2: Legal Disclaimers
Legal Disclaimers 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, and the economy generally. Words such as “anticipates,” “beli
Slide 3: Corporate Snapshot
NASDAQ: BOKF BOK Financial Corporation CONSUMER, COMMERCIAL & BROKER/DEALER & Corporate Snapshot MORTGAGE BANKING INDEPENDENT ADVISORY SERVICES • Top 30 national/regional bank* BOK Financial ® BOK Financial Securities • Midwest/Southwest franchise Bank of Texas BOK Financial Advisors • 113 full-serv
Slide 4: Core Strategy
Core Strategy Build a bank with diverse Long-term EPS Growth vs. KRX Median revenues that can compete upstream and BOKF CAGR = 8.6% outperform peers across varying economic cycles. KRX CAGR = 4.3% "There is no principle more emphasized in our organization than managing for long-term value rather tha
Slide 5: Diversified Loan Portfolio
Diversified Loan Portfolio Disciplined concentration management, diversified by sector & geography Loan Segmentation Collateral Location as of 9/30/2024 as of 9/30/2024 17% 31% 22% Commercial real estate Texas 29% Healthcare Oklahoma Loans to individuals Colorado Services Arizona 13% Energy Kansas/M
Slide 6: Diversified Loan Portfolio
Diversified Loan Portfolio Portfolio Composition Energy Banking as of 9/30/2024 • More than 100-year history in energy lending 6% • Focus on first-lien, senior-secured E&P lending, the "sweet spot" in energy lending 13% • Internal staff of 17 petroleum engineers and analysts to confirm collateral va
Slide 7: Strong Core Deposit Franchise
Strong Core Deposit Franchise Deposit Mix & Cost ($Millions) Deposit Mix by Geography Deposit Mix by Line of Business Demand Total Deposit Breakdown Interest-bearing transaction Savings 4% Time 18% 26% $45,000 9% 4% 4% $40,000 2% $35,000 4% 9% 10% 2% 5% 6% 51% 3% $30,000 2% $25,000 $20,000 57% 54% 6
Slide 8: Wealth Management
Wealth Management Wealth Management Revenue ($Millions) CAGR: 8.66% $700.0 $594.5 Primary Lines of Business $600.0 • Private Wealth / Asset Management - Banking and investment management, trust and estate administration, and Cavanal Hill family of funds $500.0 $400.0 • Institutional Wealth - Retirem
Slide 9: Wealth Management
Wealth Management Wealth Revenue by Line of Business For the nine months ended September 30, 2024 Cavanal Hill, 2% Private BOK Wealth, Financial 42% Securities, 37% Awards, Recognition and Rankings • 12 out of 12 “Best in Class” awards for retirement plans group in 2022 Institutional Wealth, 19% • E
Slide 10: Transaction Processing
Transaction Processing Transaction Processing Volume as of 12/31/2023 EFT TRANSACTION VOLUMES Debit Processing & ATM Network (Million) • Operates nationally • More than 75% of clients are outside of Oklahoma • Clients: Banks, Credit Unions and C-store chains • 800+ million EFT transactions processed
Slide 11: Mortgage Banking
Mortgage Banking Mortgage Banking Revenue as of 9/30/2024 Servicing and Origination Revenue • Retail origination channel that has averaged $2.3 ($Million) billion in origination volume over the last 5 years Servicing ◦ YTD Net Promoter Score of 90 vs. national Origination benchmark of 49 TTM Sep 202
Slide 12: Healthcare Banking
Healthcare Banking Portfolio composition Outstandings totaled $4.1 billion across as of 9/30/2024 8% 39 states at 9/30/2024 10% Healthcare portfolio characteristics: Senior Housing • Favorable spreads Hospitals • Above-average loan utilization rates Medical Services • Predominately BOK Financial ori
Slide 13: Q3 Financial Highlights
Q3 Financial Highlights Net Income Attributable to shareholders • Net Income was $140.0 million, or $2.18 per diluted share Per share (diluted) • Asset quality remains strong with criticized levels $163.7 remaining well below pre-pandemic levels and non- $134.5 $140.0 performing assets declining 6.5
Slide 14: Additional Details
Additional Details Quarterly Quarterly ◦ Period end loan balances declined ($Billion) Q3 2024 Sequential YOY $569 million with lower commercial balances, partially offset by increased Period-End Loans $24.0 (2.3)% 1.1% CRE activity while average loan balances were relatively consistent, Average Loan
Slide 15: Credit Resilience
Credit Resilience Disciplined Credit Concentration 100 year history in energy lending and a tested playbook that works • CRE limit on total committed balances is 185% of tier • 70% oil / 30% gas-weighted borrowers one capital plus reserves • Robust stress testing process and 17 petroleum • Office CR
Slide 16: Loan Portfolio
Loan Portfolio Seq. Loan YOY Loan ($Million) Sep. 30, 2024 June 30, 2024 Sep. 30, 2023 Growth Growth • Combined Services & General Energy $ 3,126.6 $ 3,451.5 $ 3,490.6 (9.4)% (10.4)% Business (Core C&I) balances decreased $339 million; however Services 3,573.7 3,577.1 3,566.4 (0.1)% 0.2% are up $456
Slide 17: Credit Quality Metrics
Credit Quality Metrics • Credit quality remains better than pre-pandemic levels Net Charge-Offs to Average Loans with a 6.9% decline during the quarter in non-performing Annualized assets, excluding those guaranteed by U.S. government agencies 0.60% • Trailing 12 months net charge-offs at 7 bps with
Slide 18: Liquidity & Capital
Liquidity & Capital Q3 2024 Q2 2024 Q3 2023 Liquidity Loan to Deposit Ratio 64.4% 67.7% 70.5% • Period-end deposit balances increased $985 million this quarter Period-End Deposits $37.2 billion $36.2 billion $33.7 billion Available Secured Capacity $22.8 billion $20.4 billion $18.7 billion Common Eq
Slide 19: Yields, Rate & Margin
Yields, Rate & Margin Quarterly Quarterly Net Interest Income ($Million) Q3 2024 Q2 2024 Q3 2023 sequential YOY • Net interest income was up $12.1 million linked quarter Net Interest Income $308.1 $296.0 $300.9 4.1% 2.4% led by a combination of increased loan yields, the benefit from upward repricin
Slide 20: Fee Income - Markets & Securities
Fee Income - Markets & Securities Trading Fees ($Million) Q3 2024 Qtr. Seq. Qtr. Seq. Qtr. YOY $ Change % Change % Change • Decreased 14.6% driven by market Trading Fees $ 23.6 $ (4.1) (14.6)% (31.4)% conditions during the quarter, partially Mortgage Banking 18.4 (0.3) (1.4)% 37.6% offset by strong
Slide 21: Fee Income - Asset Management & Transactions
Fee Income - Asset Management & Transactions Fiduciary & Asset Management Qtr. Seq. Qtr. Seq. Qtr. YOY ($Million) Q3 2024 $ Change % Change % Change • Assets under management and Markets & Securities $ 68.7 $ (2.9) (4.0)% (9.1)% A administration (“AUMA”) increased $3.2 billion during the Fiduciary &
Slide 22: Expenses
Expenses • Quarterly personnel expenses increased $15.7 million due % Incr. % Incr. ($Million) Q3 2024 Q2 2024 Q3 2023 primarily to higher incentive Seq. YOY compensation costs. These are largely timing related as Personnel Expense $206.8 $191.1 $190.8 8.2% 8.4% commercial incentive compensation pla
Slide 23: 2024 Full Year Outlook
2024 Full Year Outlook Business Driver FY as of 10/21/24 FY as of 7/23/24 Notes Low single digit Loans (EOP) +5% to +7% Reflects specialized lending payoff activity seen in Q3 growth rate Deposits (EOP) Moderate growth Modest growth Loan to deposit ratio is expected to remain below 70% Investment Se
Slide 24: Securities and Interest Rate Risk Position
Securities and Interest Rate Risk Position Securities Portfolio Interest Rate Risk • Short duration with limited extension, current portfolio duration • Approximately 74% of the total loan portfolio is variable rate or is 3.0 years, extending to only 3.7 years if rates increase 300 fixed rate that r
Slide 25: BOK Financial Corporation
BOK FINANCIAL CORPORATION
BOK Financial — Investor Presentation (November 2024) on 6ix