Bok Financial Corporation · NASDAQ:BOKF
Bok Financial — Q3 2020 Earnings Presentation
17 slides from Bok Financial's earnings presentation, Oct 21, 2020
Slide 1: Third Quarter 2020 Earnings Conference Call
Third Quarter 2020 Earnings Conference Call October 21, 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: Third Quarter Summary
Third Quarter Summary Net Income $154.0 Q3 Q2 Q3 $142.2 ($mil, exc. EPS) 2020 2020 2019 Net Income $154.0 $64.7 $142.2 $110.4 Diluted EPS $2.19 $0.92 $2.00 $2.19 $2.00 $1.56 $64.7 Net income before taxes $204.6 $80.1 $174.3 $62.1 $0.88 $0.92 Provision for credit losses $— $135.3 $12.0 Pre-provision
Slide 5: Additional Details
Additional Details Quarterly Year over ($bil) Q3 2020 Growth Year Growth Period-End Loans $23.8 (1.5)% 6.8% Average Loans $24.1 —% 7.6% Period-End Deposits $35.0 3.2% 33.6% Average Deposits $34.6 6.1% 34.8% Fiduciary Assets $52.9 4.7% 7.5% Assets Under Management or in Custody $82.4 3.7% 2.0% • Aver
Slide 6: Stacy Kymes, EVP-Corporate Banking
Stacy Kymes EVP-Corporate Banking 6
Slide 7: Loan Portfolio
Loan Portfolio Seq. Sep 30, June 30, Sep 30, Loan YOY Loan ($mil) 2020 2020 2019 Growth Growth Energy $3,717.1 $3,974.2 $4,114.3 (6.5)% (9.7)% Services 3,545.8 3,779.9 4,011.1 (6.2)% (11.6)% Healthcare 3,325.8 3,289.3 3,033.0 1.1% 9.6% General business 2,977.0 3,115.1 3,266.3 (4.4)% (8.9)% Total C&I
Slide 8: COVID-19
COVID-19 Loan Deferrals In Deferral Exited Deferral % of % of # of loans Amount ($mil) segment # of loans Amount ($mil) segment Business Market* 62 $229.4 1.2% 392 $1,312.7 6.6% Individual Market** 294 $34.5 2.1% 378 $36.6 2.2% Total 356 $263.9 1.2% 770 $1,349.3 6.3% * Includes C&I, Energy, Healthca
Slide 9: Key Credit Quality Metrics
Key Credit Quality Metrics Non-accruals (mil) Net charge-offs (annualized) to average loans $255.4 0.60% $221.2 $181.0 $172.5 $163.2 0.40% 0.37% 0.31% 0.22% 0.23% 0.19% 0.20% 0.00% 3Q19 4Q19 1Q20 2Q20 3Q20 3Q19 4Q19 1Q20 2Q20 3Q20 Energy Healthcare CRE Residential and Other • Net charge-offs increas
Slide 10: Steven Nell, Chief Financial Officer
Steven Nell Chief Financial Officer 10
Slide 11: Net Interest Revenue and Margin
Net Interest Revenue and Margin ($mil) Q3 2020 Q2 2020 Q1 2020 Q4 2019 Q3 2019 Net interest revenue $271.8 $278.1 $261.4 $270.2 $279.1 Net interest margin 2.81% 2.83% 2.80% 2.88% 3.01% Yield on loans 3.60% 3.63% 4.50% 4.75% 5.12% Cost of int-bearing deposits 0.26% 0.34% 0.98% 1.09% 1.17% Cost of who
Slide 12: Fees and Commissions
Fees and Commissions Revenue ($mil) Growth: Quarterly, Quarterly, Trailing 12 Q3 2020 Sequential Year over Year Months Brokerage and Trading $69.5 12.1% 58.6% 12.8% Transaction Card 23.5 2.3% 6.6% 1.6% Fiduciary and Asset Management 39.9 (3.2)% (8.5)% (2.1)% Deposit Service Charges and Fees 24.3 10.
Slide 13: Expenses
Expenses %Incr. %Incr. ($mil) Q3 2020 Q2 2020 Q3 2019 Seq. YOY Personnel expense $179.9 $176.2 $162.6 2.1% 10.6% Other operating expense $121.4 $119.2 $116.7 1.9% 4.0% Total operating expense $301.3 $295.4 $279.3 2.0% 7.9% Efficiency Ratio 60.41% 59.57% 59.31% • Personnel expense up only $3.6 millio
Slide 14: Liquidity & Capital
Liquidity & Capital Q3 2020 Q2 2020 Q3 2019 Loan to Deposit Ratio 68.1% 71.3% 85.2% Period End Deposits $35.0 billion $33.9 billion $26.2 billion Available secured wholesale $12.5 billion $14.6 billion $10.1 billion borrowing capacity Common Equity Tier 1 12.1% 11.4% 11.1% Total Capital Ratio 14.1%
Slide 15: Forecast and Assumptions
Forecast and Assumptions • Loan growth to remain soft, though we’ll be looking for opportunities to grow loans once again in 2021 • Available-for-sale security portfolio yield expected to decrease as prepayments force reinvestment at lower rates • Incremental deposit cost lowering possible, though n
Slide 16: Steven G. Bradshaw, Chief Executive Officer
Steven G. Bradshaw Chief Executive Officer 16
Slide 17: Question and Answer Session
Question and Answer Session 17