Bok Financial Corporation · NASDAQ:BOKF
Bok Financial — Investor Presentation (August 2023)
25 slides from Bok Financial's investor presentation, August 2023
Slide 1: Investor Presentation
Investor Presentation August 2023
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
N Financial Results Q?2 2023
Slide 4: Summary Financial Statements
Summary Financial Statements June 30, Mar. 31, June 30, Linked-Quarter Commentary ($Million) 2023 2023 2022 $19,314 $17,862 $17,259 Growth due primarily to trading securities, as our desks took advantage of Average Securities improved market opportunities. $22,889 $22,476 $21,058 Excluding PPP loans
Slide 5: Q2 summary
Q2 summary Noteworthy items impacting profitability Quarterly earnings trend • Continued benefit from our diverse fee-based businesses as NET INCOME MBS trading revenues and Energy customer hedging fees Attributable to shareholders contributed to a new quarterly high for our Wealth business Per shar
Slide 6: Loan portfolio
Loan portfolio Seq. Loan YOY Loan • Energy balances increased $111 ($Million) Jun. 30, 2023 Mar. 31, 2023 Jun. 30, 2022 Growth Growth million Energy $3,508.8 $3,398.1 $3,393.1 3.3% 3.4% • Combined Services & General Services 3,585.2 3,563.7 3,421.5 0.6% 4.8% Business ("Core C&I") balances Healthcare
Slide 7: Yields, rate & margin
Yields, rate & margin Quarterly Quarterly Net interest revenue ($Million) Q2 2023 Q1 2023 Q2 2022 sequential YOY • Net interest revenue was down linked quarter as funding costs continue to increase; benefit of $2.0 billion increase Net interest revenue $322.3 $352.3 $274.0 (8.5)% 17.6% in earning as
Slide 8: Liquidity & capital
Liquidity & capital Q2 2023 Q1 2023 Q2 2022 69.8% • Period-end deposit balances increased $714 million this quarter Loan to Deposit Ratio 69.8% 55.1% Period-End Deposits $33.3 billion $32.6 billion $38.6 billion • Potential secured capacity was $23.5 billion, which reflects current available secured
Slide 9: Fees & commissions
Fees & commissions Brokerage & trading • Linked quarter increase due to improved Qtr. Seq. Qtr. Seq. Qtr. YOY ($Million) Q2 2023 mortgage originations & trading volumes, $ Change % Change % Change combined with record energy customer Trading fees $36.9 $9.3 33.8% 207.9% hedging fees Customer hedging
Slide 10: Expenses
Expenses Expenses summary % Incr. % Incr. • Quarterly personnel expenses ($Million) Q2 2023 Q1 2023 Q2 2022 Seq. YOY increased 4.7%, primarily due to increases in cash-based comp Personnel expense $190.7 $182.1 $154.9 4.7% 23.1% related to increased sales activities, as well as the full impact of an
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 • Trailing 12 months net charge-offs at 10 basis points • Limited CRE office exposure, with properties in resilient markets • $17 million credit provision in
Slide 12: Forecast & assumptions
Forecast & assumptions • We continue to expect upper single digit annualized loan growth. Economic conditions in our geographic footprint remain favorable, and continue to be supported by business in-migration from other markets. Changes in the competitive environment for loans should be a tailwind.
Slide 13: BOK Financial Corp
BOK Financial Corp 13
Slide 14: BOK Financial Corporation
NASDAQ: BOKF BOK Financial Corporation CONSUMER, COMMERCIAL & BROKER/DEALER & Corporate snapshot MORTGAGE BANKING INDEPENDENT ADVISORY SERVICES • Top 30 national/regional bank* BOK Financial ® BOK Financial Securities • Midwest/Southwest franchise Bank of Texas BOK Financial Advisors Bank of Albuque
Slide 15: Core strategy
Core strategy Build a bank with diverse Earnings per share CAGR across 30 year history of BOKF is 9.5% revenues that can compete upstream and outperform peers across varying economic cycles. "There is no principle more emphasized in our organization than managing for long-term value rather than shor
Slide 16: Diverse revenue sources
Diverse revenue sources Well diversified Revenue composition as of 6/30/2023 35%-40% of total revenues come from a diverse set of well-established fee income businesses, a differentiator compared to other midsized regional banks Additional fee income categories: Net interest revenue Brokerage & trad
Slide 17: Strong core deposit franchise
Strong core deposit franchise Deposit Deposit mix & cost ($million) Geographic deposit mix MSA Branches share Tulsa, OK 21 31% Demand Interest-bearing transaction Dallas/Fort Worth/Metro, TX 20 2% Savings Time Oklahoma City, OK 15 11% 11% 4% Albuquerque, NM 13 11% Denver/Metro, CO 13 4% 8% 4% 6% 50%
Slide 18: Diversified loan portfolio
Diversified loan portfolio Disciplined concentration management, diversified by sector & geography Loan segmentation Collateral location as of 6/30/2023 as of 6/30/2023 Commercial real estate Texas Healthcare Oklahoma Loans to individuals Colorado Services Arizona Energy Kansas/Missouri General busi
Slide 19: Energy banking
Energy banking Portfolio composition More than 100-year history in energy lending as of 6/30/2023 and a playbook that works • Focus on first lien, senior secured E&P lending, the “sweet spot” in energy lending. • Internal staff of 16 petroleum engineers and engineering techs to confirm Oil & gas pro
Slide 20: Healthcare banking
Healthcare banking Portfolio composition Outstandings totaled $4.0 billion across as of 6/30/2023 35 states at 6/30/2023 Healthcare portfolio characteristics: Senior housing • Favorable spreads Hospitals • Above-average loan utilization rates Service medical • Predominately BOK Financial originated
Slide 21: Commercial real estate
Commercial real estate Portfolio composition as of 6/30/2023 $5.0 billion outstanding and $2.4 billion BY PRODUCT TYPE unfunded commitments at 6/30/2023 Multifamily Industrial • BOKF allocates 185% of Tier 1 capital plus reserves to CRE. Office • Further controls and limitations by product type and
Slide 22: Wealth Management
Wealth Management Wealth Management revenue as of 6/30/2023 FEE INCOME AND NET INTEREST REVENUE Primary lines of business ($Million) • Private Wealth, including banking and investment management, trust and estate administration Fee income • Brokerage & trading services Net interest revenue • Institu
Slide 23: Transaction processing
Transaction processing Transaction processing volume as of 12/31/2022 EFT TRANSACTION VOLUMES Debit processing & ATM network (Million) • Operates nationally • More than 72% 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 6/30/2023 SERVICING, ORIGINATING AND MARKETING REVENUE Top 50 U.S. mortgage originator ($Million) • Annual origination volume in 2022 was $1.1 billion Servicing • Servicing an average of $20.8 billion of mortgages at Originating & marketing June 30, 20
Slide 25: BOK Financial Corporation
BOK FINANCIAL CORPORATION