BOK Financial Corporation (NASDAQ:BOKF) Q3 2021 Earnings Conference Call October 20, 2021 10:00 AM ET CorporateParticipants Steven Nell - Executive Vice President, Chief Financial Officer Steve Bradshaw - President and Chief Executive Officer Stacy Kymes - Executive Vice President, Chief Operating Officer Scott Grauer - Executive Vice President, Wealth Management; CEO, BOK Financial Securities, Inc. ConferenceCall Participants Will Jones - KBW Matt Olney – Stephens Inc., Jon Arfstrom - RBC Capital Markets G ...

[Part I. Financial Information](index=3&type=section&id=Part%20I.%20Financial%20Information) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=3&type=section&id=Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Q2 2021 net income rose significantly due to a negative credit provision, though pre-provision net revenue declined | Metric | Q2 2021 | Q1 2021 | Q2 2020 | | :--- | :--- | :--- | :--- | | **Net Income** | $166.4 million | $146.1 million | $64.7 million | | **Diluted EPS** | $2.40 | $2.10 | $0.92 | - The company recorded a **negative provision for expected credit losses of $35.0 million** in Q2 2021, compared to a $135.3 million provision in Q2 2020, due to improving macroeconomic forecasts[6](index=6&type=chunk) - **Pre-provision net revenue (PPNR)**, a non-GAAP measure, decreased to $179.9 million from $215.8 million in Q2 2020, attributed to lower loan balances and compressed margins[7](index=7&type=chunk) [Performance Summary](index=3&type=section&id=Performance%20Summary) - Net interest revenue was stable at $280.3 million, as asset growth was offset by a **23 basis point compression in net interest margin to 2.60%** YoY[8](index=8&type=chunk) - Fees and commissions revenue **fell by $44.3 million YoY to $169.4 million**, largely due to lower mortgage banking and brokerage revenue[9](index=9&type=chunk) - Period-end loan balances **decreased by $1.1 billion QoQ to $21.4 billion**, primarily due to a $727 million reduction in Paycheck Protection Program (PPP) loans[11](index=11&type=chunk) - The combined allowance for credit losses stood at $336 million, or **1.66% of outstanding loans** (excluding PPP loans), down from 1.86% in the prior quarter[12](index=12&type=chunk) - The company maintained strong capital ratios, with a **Common Equity Tier 1 capital ratio of 11.95%** at June 30, 2021[16](index=16&type=chunk) - During Q2 2021, the company **repurchased 492,994 shares** of common stock at an average price of $88.84 per share[17](index=17&type=chunk) [Results of Operations](index=5&type=section&id=Results%20of%20Operations) Tax-equivalent Net Interest Revenue | Metric | Q2 2021 | Q2 2020 | Change | | :--- | :--- | :--- | :--- | | Tax-equivalent Net Interest Revenue | $282.6M | $280.7M | +$1.9M | | Net Interest Margin | 2.60% | 2.83% | -23 bps | | Average Earning Assets | $43.9B | $40.3B | +$3.6B | - Other operating revenue **decreased by $41.8 million YoY to $191.4 million**, primarily due to a $32.7 million decline in mortgage banking revenue[9](index=9&type=chunk)[35](index=35&type=chunk) - Other operating expense **decreased by $4.8 million YoY to $291.2 million**, driven by a $4.2 million reduction in personnel expense[10](index=10&type=chunk)[62](index=62&type=chunk) [Lines of Business](index=13&type=section&id=Lines%20of%20Business) - The company operates three principal lines of business: **Commercial Banking, Consumer Banking, and Wealth Management**[70](index=70&type=chunk)[71](index=71&type=chunk) Net Income by Business Line | Line of Business | Net Income Q2 2021 | Net Income Q2 2020 | % Change | | :--- | :--- | :--- | :--- | | Commercial Banking | $72.6M | $81.0M | (10)% | | Consumer Banking | $1.7M | $32.5M | (95)% | | Wealth Management | $31.1M | $33.4M | (7)% | | **Subtotal** | **$105.4M** | **$146.9M** | **(28)%** | - The significant drop in net income from the business lines was primarily driven by **Consumer Banking**, where lower mortgage banking revenue and compressed deposit spreads negatively impacted results[77](index=77&type=chunk)[96](index=96&type=chunk) [Financial Condition](index=20&type=section&id=Financial%20Condition) - **Total loans decreased by $1.1 billion** from March 31, 2021, to $21.4 billion, mainly due to a decrease in PPP loan balances and paydowns in energy and commercial real estate[118](index=118&type=chunk) - **Trading securities increased by $613 million** during Q2 2021 to $5.7 billion, held in support of sales to various customers[113](index=113&type=chunk) - The available for sale securities portfolio had an **amortized cost of $13.0 billion** at quarter-end, primarily consisting of U.S. government agency mortgage-backed securities[115](index=115&type=chunk) [Summary of Credit Loss Experience](index=29&type=section&id=Summary%20of%20Credit%20Loss%20Experience) - A **negative provision for credit losses of $35.0 million** was recorded in Q2 2021, a significant reversal from the $135.2 million provision in Q2 2020, driven by an improved economic outlook[166](index=166&type=chunk)[169](index=169&type=chunk) Allowance for Credit Losses | Metric | June 30, 2021 | March 31, 2021 | | :--- | :--- | :--- | | Allowance for Loan Losses | $311.9M | $352.4M | | Allowance for Loan Losses to Loans (ex-PPP) | 1.54% | 1.70% | | Net Charge-offs (annualized, ex-PPP) | 0.30% | 0.28% | - **Nonperforming assets decreased by $51 million** from March 31, 2021, primarily due to a $31 million decrease in nonaccruing energy loans[183](index=183&type=chunk) [Liquidity and Capital](index=38&type=section&id=Liquidity%20and%20Capital) - The company's funding is primarily provided by deposit accounts (75%), with **average deposits increasing by $968 million** over Q1 2021 to $37.5 billion[193](index=193&type=chunk)[195](index=195&type=chunk) Capital Ratios | Capital Ratio | June 30, 2021 | Minimum Requirement (incl. buffer) | | :--- | :--- | :--- | | Common Equity Tier 1 | 11.95% | 7.00% | | Tier 1 Capital | 12.01% | 8.50% | | Total Capital | 13.61% | 10.50% | | Leverage Ratio | 8.58% | 4.00% | - The company **repurchased 492,994 shares of common stock for $44 million** in Q2 2021, with 2,726,807 shares repurchased under the current authorization as of June 30, 2021[213](index=213&type=chunk)[214](index=214&type=chunk) [Market Risk](index=43&type=section&id=Market%20Risk) The company's primary market risk stems from interest rate changes, which management aims to keep rate-neutral while actively transitioning away from LIBOR - Management's strategy is to maintain a **relatively neutral balance sheet** to limit exposure to interest rate fluctuations over a twelve-month period[226](index=226&type=chunk)[230](index=230&type=chunk) Interest Rate Sensitivity | Sensitivity Scenario | Anticipated Impact on Net Interest Revenue (Next 12 Months) | | :--- | :--- | | +200 bps Increase | +$57.1 million (+5.15%) | - The company is actively managing the transition away from LIBOR and **plans to cease originating LIBOR-indexed loans** by the end of 2021[247](index=247&type=chunk)[248](index=248&type=chunk) [Controls and Procedures](index=46&type=section&id=Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2021, with no material changes to internal controls during the quarter - Based on an evaluation as of June 30, 2021, the CEO and CFO concluded that the company's **disclosure controls and procedures were effective**[245](index=245&type=chunk) - Management's evaluation confirmed **no changes during the quarter materially affected** the company's internal controls over financial reporting[245](index=245&type=chunk) [Consolidated Financial Statements – Unaudited](index=48&type=section&id=Consolidated%20Financial%20Statements%20–%20Unaudited) This section presents the unaudited consolidated financial statements for periods ended June 30, 2021 and 2020 Consolidated Statements of Earnings | (In thousands) | Three Months Ended June 30, 2021 | Three Months Ended June 30, 2020 | | :--- | :--- | :--- | | Net Interest Revenue | $280,309 | $278,104 | | Provision for Credit Losses | ($35,000) | $135,321 | | Total Other Operating Revenue | $191,446 | $233,272 | | Total Other Operating Expense | $291,152 | $295,966 | | **Net Income Attributable to BOK** | **$166,421** | **$64,693** | [Notes to Consolidated Financial Statements (Unaudited)](index=54&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements%20(Unaudited)) [Quarterly Financial Summary – Unaudited](index=104&type=section&id=Quarterly%20Financial%20Summary%20–%20Unaudited) This section provides a detailed summary of consolidated average balances, revenues, and yields for recent quarters Quarterly Performance Metrics | Metric | Q2 2021 | Q1 2021 | | :--- | :--- | :--- | | Average Earning Assets | $43.87B | $44.22B | | Tax-equivalent Net Interest Revenue | $282.6M | $282.7M | | Tax-equivalent NIM | 2.60% | 2.62% | | Net Income | $166.4M | $146.1M | [Quarterly Earnings Trend – Unaudited](index=107&type=section&id=Quarterly%20Earnings%20Trend%20–%20Unaudited) This section presents a trend of key earnings statement line items over the past five quarters from Q2 2020 to Q2 2021 Five-Quarter Earnings Trend | (In thousands) | Q2 2021 | Q1 2021 | Q4 2020 | Q3 2020 | Q2 2020 | | :--- | :--- | :--- | :--- | :--- | :--- | | Net Interest Revenue | $280,309 | $280,420 | $297,230 | $271,750 | $278,104 | | Provision for Credit Losses | ($35,000) | ($25,000) | ($6,500) | $0 | $135,321 | | Net Income Attributable to BOK | $166,421 | $146,060 | $154,224 | $154,034 | $64,693 | | Diluted EPS | $2.40 | $2.10 | $2.21 | $2.19 | $0.92 | [Part II. Other Information](index=108&type=section&id=Part%20II.%20Other%20Information) [Legal Proceedings](index=108&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in several legal proceedings for which management believes a loss is not probable - The company is a defendant in class action lawsuits related to its role as a trustee for municipal bonds, but **believes it has valid defenses** and no loss is probable[389](index=389&type=chunk)[391](index=391&type=chunk) - Class actions alleging an extended overdraft fee constitutes excessive interest were **dismissed at the district court level** and are under appeal[393](index=393&type=chunk) - A class action by former employees alleging breach of fiduciary duties related to the company's 401k plan is **pending a motion to dismiss**[395](index=395&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=108&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased 492,994 shares of its common stock during Q2 2021 as part of its authorized plan Share Repurchases in Q2 2021 | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | April 2021 | 170,000 | $88.70 | | May 2021 | 227,994 | $88.82 | | June 2021 | 95,000 | $89.14 | | **Total Q2 2021** | **492,994** | **$88.84** | - As of June 30, 2021, a maximum of **2,273,193 shares may yet be purchased** under the company's current share repurchase authorization[479](index=479&type=chunk) [Exhibits](index=108&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including CEO/CFO certifications and Interactive Data Files [Signatures](index=109&type=section&id=Signatures)

Call Start: 10:00 January 1, 0000 10:54 AM ET BOK Financial Corporation (NASDAQ:BOKF) Q2 2021 Earnings Conference Call July 21, 2021, 10:00 AM ET Company Participants Steve Bradshaw - CEO Steven Nell - CFO Stacy Kymes - Chief Operating Officer Conference Call Participants Peter Winter - Wedbush Securities Brandon King - Truist Securities Brady Gailey - KBW Gary Tenner - D.A. Davidson Matt Olney - Stephens Jon Arfstrom - RBC Capital Markets Scott Grauer - EVP, Wealth Management Operator Greetings. Welcome to ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____________ to ______________ Commission File No. 0-19341 | --- | --- | |----------------------------------------------------------------------------------- ...

BOK Financial Corporation (NASDAQ:BOKF) Q1 2021 Earnings Conference Call April 21, 2021 10:00 AM ET Company Participants Steven Nell - CFO Steve Bradshaw - CEO Stacy Kymes - COO Conference Call Participants Peter Winter - Wedbush Securities Will Jones - KBW Brett Rabatin - Hovde Group Matt Olney - Stephens Gary Tenner - D.A. Davidson Jennifer Demba - Truist Securities Operator Greetings, and welcome to BOK Financial Corporation First Quarter 2021 Earnings Call. At this time, all participants are in a listen ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____________ to ______________ | --- | --- | --- | |---------------------------------------------------------------------------------|---------------------------- ...

BOK Financial Corporation (NASDAQ:BOKF) Q4 2020 Earnings Conference Call January 20, 2021 10:00 AM ET Company Participants Steven Nell - Executive Vice President and Chief Financial Officer Steven Bradshaw - President and Chief Executive Officer Stacy Kymes - Executive Vice President, Corporate Banking Scott Grauer - Executive Vice President, Wealth Management; CEO, BOK Financial Securities, Inc. Marc Maun - Executive Vice President and Chief Credit Officer Conference Call Participants Ken Zerbe - Morgan St ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____________ to ______________ Commission File No. 0-19341 | --- | --- | |------------------------------------------------------------------------------- ...

BOK Financial Corporation (NASDAQ:BOKF) Q3 2020 Earnings Conference Call October 21, 2020 10:00 AM ET Company Participants Steven Nell - EVP and CFO Steve Bradshaw - President and CEO Stacy Kymes - EVP, Corporate Banking Scott Grauer - EVP, Wealth Management Marc Maun - Chief Credit Officer Conference Call Participants Ken Zerbe - Morgan Stanley Brady Gailey - KBW Jon Arfstrom - RBC Capital Markets Brandon King - Truist Securities Gary Tenner - D.A. Davidson Peter Winter - Wedbush Securities Operator Greeti ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____________ to ______________ Commission File No. 0-19341 BOK FINANCIAL CORP ET AL (Exact name of registrant as specified in its charter) Oklahoma 73-1373454 ...