Bok Financial Corporation · NASDAQ:BOKF
Bok Financial — Q2 2015 Earnings Presentation
23 slides from Bok Financial's earnings presentation, Jul 29, 2015
Slide 1: Second Quarter 2015 Earnings Conference Call
Second Quarter 2015 Earnings Conference Call July 29, 2015 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: Q2 2015 Highlights
Q2 2015 Highlights Q2 2015 Q1 2015 Q2 2014 Net Income ($mil) $79.2 $74.8 $75.7 Diluted EPS $1.15 $1.08 $1.10 Double digit loan growth and 5 basis points of net interest margin expansion Second consecutive quarter of record fees and commissions, with all key fee-generating businesses contributing
Slide 5: Additional Q2 2015 Highlights
Additional Q2 2015 Highlights % Growth, % Growth, $billions Q2 2015 Q1 2015 Q2 2014 Seq. YOY Period-End $15.1 $14.7 $13.4 3.0% 12.6% (12 0% ann (12.0% ann.)) Loans Avg. Loans 14.9 14.6 13.3 2.4% 12.4% (9.6% ann.) Fiduciary $38.8 $37.5 $32.7 3.4% 18.5% (13.4% ann.) Assets Drivers: • Loans: Continued
Slide 6: Economic Metrics – BOKF Footprint
Economic Metrics – BOKF Footprint Unemployment June 2015 June 2014 Oklahoma 4.5% 4.5% Texas 4.2% 5.0% National Average 5.3% 6.1% Oklahoma Texas YOY Change in Non-Farm Payroll +0.56% +2.34% June 2014 to June 2015 YOY Change in Mining/Logging Payroll (9.41%) (3.11%) June 2014 to June 2015 Source: U.S.
Slide 7: Martin Grunst, EVP and Treasurer: Financial Overview
Martin Grunst EVP and Treasurer Financial Overview 7
Slide 8: Net Interest Revenue and Margin
Net Interest Revenue and Margin Q2 Q1 Q4 Q3 Q2 2015 2015 2014 2014 2014 Net Interest Revenue ($mil) $175.7 $167.7 $169.7 $166.8 $166.1 Provision for credit losses $ 4.0 $ 0.0 $ 0.0 $ 0.0 $ 0.0 NIR after provision $171.7 $167.7 $169.7 $166.8 $166.1 Net Interest Margin 2.61% 2.55% 2.61% 2.67% 2.75% NI
Slide 9: Record Quarterly Fees and Commissions Revenue
Record Quarterly Fees and Commissions Revenue ($millions) Q2 2015 % Growth, % Growth, Seq Seq. YOY Brokerage and trading $36.0 13.6% (7.9%) Transaction card 32.8 5.7% 4.0% Fiduciary and asset management 32 7 32.7 4 0% 4.0% 10 7% 10.7% Deposit service charges and fees 22.3 3.0% (3.5%) Mortgage bankin
Slide 10: Expense Review
Expense Review (($millions)) Q2 2015 Q1 2015 Q2 2014 %Incr. %Incr. Seq. YOY Personnel Expense $132.7 $128.5 $123.7 3.2% 7.3% Other Operating Expense $ 94.4 $ 91.8 $91.0 2.9% 3.8% Total operating expense $227.1 $220.3 $214.7 3.1% 5.8% • $6.3 $6 3 million increase in incentive compensation expense due
Slide 11: Other Balance Sheet Statistics
Other Balance Sheet Statistics Q2 2015 Q1 2015 Q2 2014 Period End AFS Securities $9.0 billion $9.2 billion $9.7 billion Average AFS securities $9.1 billion $9.1 billion $9.8 billion Period End Deposits $21.1 billion $21.2 billion $20.6 billion A Average deposits d it $21 1 billi $21.1 billion $21 2
Slide 12: 2015 Assumptions
2015 Assumptions Mid-to-high Mid t hi h single i l didigit it lloan growth th iin Q3 and d Q4 Q4, low l double d bl didigit it loan growth for the full year. NII will continue to increase slightly in 2015 from earning asset composition and stable to improving NIM Provision for credit losses fo
Slide 13: Norm Bagwell, EVP-Regional Banking
Norm Bagwell EVP-Regional Banking 13
Slide 14: Loan Portfolio by Geography
Loan Portfolio by Geography ($millions) Jun 30, Mar 31, Sequential Jun 30, Jun 30, YOY 2015 2015 Loan 2015 2014 Loan Growth Growth Oklahoma $5,749.0 $5,537.0 3.8% $5,749.0 $5,378.4 6.9% Texas 5,281.7 5,228.3 1.0% 5,281.7 4,501.6 17.3% Albuquerque 819.6 824.1 (0.5%) 819.6 840.7 (2.5%) Arkansas 197.3
Slide 15: Commercial Loan Growth
Commercial Loan Growth Sequential YOY Jun 30, Mar 31, Loan Jun 30, Jun 30, Loan ($millions)) ($ 2015 2015 Growth 2015 2014 Growth Energy $2,902.1 $2,903.0 0.0% $2,902.1 $2,419.8 19.9% Services 2,837.6 2,728.4 4.0% 2,837.6 2,377.1 19.4% Wh l Wholesale/retail l / t il 1 377 3 1,377.3 1 270 3 1,270.3 8
Slide 16: Total Loans
Total Loans ($millions) Jun 30, Mar 31, Sequential Jun 30, Jun 30, YOY 2015 2015 Loan 2015 2014 Loan Growth Growth Total Commercial $9,775.7 $9,391.2 4.1% $9,775.7 $8,367.7 16.8% Total CRE 3,033.5 2,935.5 3.3% 3,033.5 2,655.0 14.3% Total Residential 1,884.7 1,927.0 (2.2%) 1,884.7 2,008.2 (6.1%) Mort
Slide 17: Loan Yields
Loan Yields Three Months Ended Jun 30, 30 Mar 31 31, Dec 31 31, Sep 30 30, Jun 30 30, 2015 2015 2014 2014 2014 3.65% 3.59% 3.73% 3.78% 3.85% Stable loan pricing during Q2 Nonaccrual interest recoveries and higher loan fees enhanced loan yields i ld 17
Slide 18: Stacy Kymes, EVP-Corporate Banking
Stacy Kymes EVP-Corporate Banking 18
Slide 19: Commercial Banking
Commercial Banking Energy Lending At 6/30/15: $5.6 billion commitments and $2.9 billion O/S Wholesale/Energy Retail Services E&P line utilization 58% 3% 8% Mid t Midstream 52% of commitments, commitments 48% of outstandings are SNCs 4% Approx. 61% of production loans secured by oil Nonaccr
Slide 20: Commercial Real Estate
Commercial Real Estate Sequential YOY Jun 30, Mar 31, Loan Jun 30, Jun 30, Loan ($millions)) ($ 2015 2015 Growth 2015 2014 Growth Residential construction and $148.6 $139.1 6.8% $148.6 $184.5 (19.6%) land development Retail 688 4 688.4 658 9 658.9 4 5% 4.5% 688 4 688.4 642 1 642.1 7 2% 7.2% Office 5
Slide 21: Solid Credit Quality at June 30, 2015
Solid Credit Quality at June 30, 2015 Continued Positive Trends Allowance for credit losses to Net annualized charge-offs to period end loans: average loans: 1.33% 0.02% Allowance for credit losses to Non-performing assets to period nonaccruing loans: end loans and repossessed assets*: 222.21
Slide 22: Closing Remarks
Steven G. Bradshaw Chief Executive Officer Closing Remarks 22
Slide 23: Question and Answer Session
Question and Answer Session 23