Bok Financial Corporation · NASDAQ:BOKF
Bok Financial — Investor Presentation (January 2024)
25 slides from Bok Financial's investor presentation, January 2024
Slide 1: Investor Presentation
Investor Presentation January 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: Financial Results Q4 2023
Financial Results Q4 2023 3
Slide 4: Summary Financial Statements
Summary Financial Statements Dec. 31, Sep. 30, Dec. 31, Linked-Quarter Commentary ($Million) 2023 2023 2022 Net Interest Revenue Average Securities $20,229 $20,189 $16,885 • Slower quarterly decline in NIM (5 bps) driven by reduced deposit cost pressures Average Loans $23,705 $23,414 $21,976 Average
Slide 5: Q4 summary
Q4 summary Noteworthy items impacting profitability Quarterly earnings trend Net income • Q4 net income includes the pretax FDIC special assessment of $43.8 million or $0.52 per share, as well as $3.1 million of Attributable to shareholders additional non-periodic tax expense or $0.05 per share. Q3
Slide 6: Loan portfolio
Loan portfolio Seq. Loan YOY Loan • Energy balances decreased slightly ($Million) Dec. 31, 2023 Sep. 30, 2023 Dec. 31, 2022 Growth Growth by $54 million Energy $ 3,437.1 $ 3,490.6 $ 3,424.8 (1.5)% 0.4% • Combined Services & General Services 3,576.2 3,566.4 3,431.5 0.3% 4.2% Business ("Core C&I") bal
Slide 7: Yields, rate & margin
Yields, rate & margin Quarterly Quarterly Net interest revenue ($Million) Q4 2023 Q3 2023 Q4 2022 sequential YOY • Net interest revenue was down $4.2 million linked quarter, Net interest revenue $296.7 $300.9 $352.6 (1.4)% (15.9)% the slowest pace of decline since the beginning of the hiking cycle N
Slide 8: Liquidity & capital
Liquidity & capital Q4 2023 Q3 2023 Q4 2022 Loan to Deposit Ratio 70.3% 70.5% 65.4% • Period-end deposit balances increased $367 million this quarter Period-End Deposits $34.0 billion $33.7 billion $34.5 billion Current available secured • Potential secured capacity was $23.1 billion, which reflects
Slide 9: Fees & commissions
Fees & commissions Brokerage & trading • Linked quarter decrease from a decline in Qtr. Seq. Qtr. Seq. Qtr. YOY ($Million) Q4 2023 Investment banking fees as Q3 was a $ Change % Change % Change record quarter for our Public & Corporate Trading fees $ 35.5 $ 1.1 3.1% (1.1)% Finance activities, with B
Slide 10: Expenses
Expenses Expenses summary • Quarterly personnel expenses % Incr. % Incr. ($Million) Q4 2023 Q3 2023 Q4 2022 increased 6.4% or $12 million; $5.4 Seq. YOY million due to market valuations in deferred comp, $4.0 million in cash- Personnel expense $203.0 $190.8 $186.4 6.4% 8.9% based sales related activ
Slide 11: Key credit quality metrics
Key credit quality metrics Quality metrics summary Net charge-offs to average loans Annualized • Credit quality better than pre-pandemic level 0.60% • Trailing 12 months net charge-offs at 8 basis points • CRE office exposure is less than 4% of outstanding 0.40% 0.28% period end total loan balances,
Slide 12: Forecast & assumptions
Forecast & assumptions • We expect mid to upper single digit annualized loan growth. Economic conditions in our geographic footprint remain favorable and continue to be supported by business in-migration from other markets. The competitive environment for loans should be a tailwind for us. • We expe
Slide 13: BOK Financial Corp
BOK Financial Corp 13
Slide 14: BOK Financial Corporation: 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 15: Core strategy
Core strategy Build a bank with diverse Earnings per share CAGR across 30 year history of BOKF is 9.3% revenues that can $650,000 $10.00 compete upstream and $600,000 $9.00 $550,000 outperform peers across $500,000 $8.00 $7.00 varying economic cycles. $450,000 $400,000 $6.00 $350,000 $5.00 $300,000
Slide 16: Diverse revenue sources
Diverse revenue sources Well diversified Revenue composition as of 12/31/2023 35%-40% of total revenues come from a diverse set of well-established fee income businesses, a differentiator compared to other midsized regional banks 3% 3% 6% 6% Additional fee income categories: Net interest revenue Bro
Slide 17: Strong core deposit franchise
Strong core deposit franchise Deposit Branches Deposit mix & cost ($million) Geographic deposit mix MSA share Tulsa, OK 21 30% Demand Interest-bearing transaction Dallas/Fort Worth/Metro, TX 20 1% Savings Time Oklahoma City, OK 15 12% $45,000 11% 4% Denver/Metro, CO 13 3% $40,000 Albuquerque, NM 12
Slide 18: Diversified loan portfolio
Diversified loan portfolio Disciplined concentration management, diversified by sector & geography Loan segmentation Collateral location as of 12/31/2023 as of 12/31/2023 16% 32% 22% Commercial real estate Texas 30% Healthcare Oklahoma Loans to individuals Colorado 14% Services Arizona Energy Kansas
Slide 19: Energy banking
Energy banking Portfolio composition More than 100-year history in energy lending as of 12/31/2023 and a playbook that works 7% • Focus on first lien, senior secured E&P lending, the “sweet spot” in energy 16% lending. • Internal staff of 16 petroleum engineers and engineering techs to confirm Oil &
Slide 20: Healthcare banking
Healthcare banking Portfolio composition Outstandings totaled $4.1 billion across as of 12/31/2023 8% 35 states at 12/31/2023 9% Healthcare portfolio characteristics: Senior housing • Favorable spreads Hospitals • Above-average loan utilization rates Service medical • Predominately BOK Financial ori
Slide 21: Commercial real estate
Commercial real estate Portfolio composition as of 12/31/2023 $5.3 billion outstanding and $1.8 billion BY PRODUCT TYPE unfunded commitments at 12/31/2023 7% 2% Multifamily • BOKF allocates 185% of Tier 1 capital plus reserves to CRE. The ratio is Industrial 11% currently at 172%. Office • Further c
Slide 22: Wealth Management
Wealth Management Wealth Management revenue as of 12/31/2023 Primary lines of business FEE INCOME AND NET INTEREST REVENUE ($Million) • Private Wealth, including banking and investment management, trust and estate administration Fee income • Brokerage & trading services Net interest revenue • Instit
Slide 23: 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 24: Mortgage banking
Mortgage banking Mortgage banking revenue as of 12/31/2023 SERVICING, ORIGINATING AND MARKETING REVENUE Top 50 U.S. mortgage originator ($Million) • Annual origination volume in 2023 was $656 million Servicing • Servicing an average of $20.5 billion of mortgages at Originating & marketing December 3
Slide 25: BOK Financial Corporation
BOK FINANCIAL CORPORATION