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Third Quarter 2017
Earnings Conference Call
October 25, 2017
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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-looking statements
within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “anticipates”,
“believes”, “estimates”, “expects”, “forecasts”, “plans”, “projects”, variations of such words, and similar
expressions are intended to identify such forward-looking statements. Management judgments relating to,
and discussion of the provision and allowance for credit losses involve judgments as to future events and are
inherently forward-looking statements. Assessments that BOK Financial’s acquisitions and other growth
endeavors will be profitable are necessary statements of belief as to the outcome of future events, based in
part on information provided by others which BOKF has not independently verified. These statements are not
guarantees of future performance and involve certain risks, uncertainties, and assumptions which are difficult
to predict with regard to timing, extent, likelihood and degree of occurrence. Therefore, actual results and
outcomes may materially differ from what is expressed, implied or forecasted in such forward-looking
statements. Internal and external factors that might cause such a difference include, but are not limited to,
changes in interest rates and interest rate relationships, demand for products and services, the degree of
competition by traditional and non-traditional competitors, changes in banking regulations, tax laws, prices,
levies, and assessments, the impact of technological advances, and trends in customer behavior as well as
their ability to repay loans. For a discussion of risk factors that may cause actual results to differ from
expectations, please refer to BOK Financial Corporation’s most recent annual and quarterly reports. BOK
Financial Corporation and its affiliates undertake no obligation to update, amend, or clarify forward-looking
statements, whether as a result of new information, future events, or otherwise.
Non-GAAP Financial Measures: This presentation may refer to non-GAAP financial measures. Additional
information on these financial measures is available in BOK Financial’s 10-Q and 10-K filings with the
Securities and Exchange Commission which can be accessed at www.BOKF.com.
All data is presented as of September 30, 2017 unless otherwise noted.
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Steven G. Bradshaw
Chief Executive Officer
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Third Quarter Summary:
• Noteworthy items impacting Q3 profitability:
• Continued net interest margin improvement and higher associated net interest income
• No loan loss provision for fourth consecutive quarter – continued strong credit environment and sound BOKF
credit culture and credit underwriting
• Record performance from Wealth Management: total revenue up 10% and net income up 70% year-to-date.
• Weaker than expected results from Mortgage Banking, due to lower production volume and gain on sale
margins as well as a sequential change in pipeline hedging results
• Unusual expense items total $11.8 million and include $5.9 million in performance based incentive accruals to
reflect updated earnings performance and equity vesting assumptions; $4.7 million in OREO expense for write-
down of an energy property set; and a $2.4 million pretax impact related to natural disasters during the quarter.
Q3 2017 Q2 2017 Q3 2016
Diluted EPS $1.31 $1.35 $1.13
Net income before
taxes ($M)
$128.2 $136.6 $107.1
Net income
attributable to BOKF
shareholders ($M)
$85.6 $88.1 $74.3
$74.3
$50.0
$88.4 $88.1
$85.6
$1.13
$0.76
$1.35 $1.35 $1.31
3Q16 4Q16 1Q17 2Q17 3Q17
Net Income
Net income attributable to shareholders
Net income per share - diluted
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Additional Details
($B)
Q3 2017
Quarterly
Growth
Annualized
Quarterly
Growth
Year over Year
Growth
Period-End Loans $17.2 0.1% 0.5% 4.5%
Average Loans $17.3 0.8% 3.0% 4.9%
Fiduciary Assets $45.2 0.2% 0.78% 8.1%
Assets Under Management
or in Custody
$77.7 (0.2%) (0.8%) 3.2%
• Commercial real estate and energy pay-downs at quarter-end negatively impacted loan growth.
• Strong loan growth from Commercial and Industrial as well as Private Banking
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Steven Nell
Chief Financial Officer
Financial Overview
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Net Interest Revenue
Net Interest Margin
($mil)
Q3
2017
Q2
2017
Q1
2016
Q4
2016
Q3
2016
Net Interest Revenue $218.5 $205.2 $201.2 $194.2 $187.8
Provision For Credit Losses $ -- $ -- $ -- $ -- $10.00
Net Interest Revenue After Provision $218.5 $205.2 $201.2 $194.2 $177.8
Net Interest Margin 3.01% 2.89% 2.81% 2.69% 2.64%
Add Back: Dilution due to FHLB/Fed Trade 0.13% 0.13% 0.13% 0.12% 0.12%
Normalized Net Interest Margin 3.14% 3.02% 2.94% 2.81% 2.76%
• Yield on investment securities up 10 basis points
• Nonaccrual interest recoveries of $4.7 million during the quarter
• Interest recoveries positively impacted NIM by 6 basis points during the quarter
• Loan yields up 28 basis points (11 basis points due to interest recoveries)
• Modest 5 basis point increase in deposit costs
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Fees and Commissions
Revenue, $mil Change:
Q3 17
Quarterly,
Sequential
Quarterly,
Year over Year
Trailing 12
Months
Brokerage and Trading $33.2 4.4% (12.7%) (9.3%)
Transaction Card 37.8 7.2% 11.5% 4.7%
Fiduciary and Asset Management 40.7 (2.7%) 19.4% 17.8%
Deposit Service Charges and Fees 23.2 (0.6%) (1.9%) 1.4%
Mortgage Banking 24.9 (17.8%) (35.4%) (15.3%)
Other Revenue 13.7 (8.8%) 4.5% 1.0%
Total Fees and Commissions $173.5 (2.3%) (4.3%) (0.2%)
Fee and commission revenue drivers:
• Brokerage and trading up due to strong institutional brokerage and investment banking revenue, partially offset
by lower retail brokerage and derivatives revenues.
• Transaction card up primarily due to customer activity.
• Fiduciary and asset management revenue down slightly due to non-recurrence of seasonal tax planning
revenue.
• Mortgage banking revenue decline due to lower production volume combined with sequential decrease in
pipeline hedging results
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Expenses
($mil)
Q3 2017
Q2 2017
Q3 2016
%Incr.
Seq.
%Incr.
YOY
Personnel Expense $147.9 $143.7 $139.2 2.9% 6.2%
Other Operating Expense $118.0 $107.1 $118.9 8.5% (2.2%)
Total Operating Expense $265.9 $250.9 $258.1 5.3% 2.3%
Personnel Expense:
• Q3 2017 includes $5.9 million in performance based incentive accruals to reflect updated earnings performance and
corresponding equity vesting assumptions as well as higher stock price.
Other Operating Expense:
• Q3 2017 includes $1.3 million* related to storm damage (Hurricane Harvey and August 2017 Tulsa tornado) and OREO
write-down of $4.7 million related to repossessed energy property set.
* NOTE: $1.1 million related to storm damage also included in Other Gains (Losses) on the income statement
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Forecast and Assumptions
Q4 / 2017 full year expectations:
Period end loan balances expected to be
flat to up slightly from the third quarter
Available-for-sale securities portfolio
expected to be relatively flat for balance of
the year
Stable net interest margin in Q4 (excluding
impact of interest recoveries)
Modest increase in net interest income
Revenue from fee-generating businesses
flat to slightly down for the full year
Flat expenses for the full year compared to
2016 on a GAAP basis
No loan loss provision in Q4
Preliminary 2018 Expectations
Low-single-digit loan growth
Available-for-sale securities flat to slightly
down
Modest growth in net interest margin
(assuming one Fed rate hike in Q1 2018
and continued limited deposit pricing
pressure)
Low-single-digit growth in net interest
income
Revenue from fee generating businesses
flat to slightly up for the year
Mid-single-digit expense growth
Loan loss provision guidance to be
provided on Q4 call.
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Stacy Kymes
EVP-Corporate Banking
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Healthy mid-single-digit
annualized growth in C&I.
Paydowns accelerating in CRE
as more borrowers are tapping
the permanent markets.
Personal (Private Bank)
continues to deliver strong
growth.
($mil)
Sept. 30
2017
June 30
2017
Seq.
Loan
Growth
Energy $2,868.0 $2,847.2 0.7%
Services 2,967.5 2,958.8 0.3%
Healthcare 2,239.5 2,221.5 0.8%
Wholesale/retail 1,658.1 1,543.7 7.4%
Manufacturing 519.4 546.2 (4.9%)
Other 543.4 520.6 4.4%
Total C&I $10,795.9 $10,638.0 1.5%
Commercial Real Estate 3,518.1 3,688.6 (4.6%)
Residential Mortgage 1,945.8 1,939.2 0.3%
Personal 947.0 917.9 3.2%
Total Loans $17,206.8 $17,183.7 0.1%
Loan Portfolio
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Key Credit Quality Metrics
$143.0 $132.5
$110.4
$124.0
$110.7
94.0
$98.5
$97.2
$98.5
$97.2
$237.0 $231.0
$207.6
$222.5
$207.9
$-
$50.0
$100.0
$150.0
$200.0
$250.0
3Q16 4Q16 1Q17 2Q17 3Q17
Energy Non-Accruals Other Non-Accruals
1.56% 1.52%
1.52% 1.49%
1.47%
0.00%
0.50%
1.00%
1.50%
2.00%
3Q16 4Q16 1Q17 2Q17 3Q17
Combined Allowance for Credit Losses
to Period End Loans
0.15%
-0.03%
-0.02%
0.04%
0.08%
-0.50%
0.00%
0.50%
1.00%
1.50%
3Q16 4Q16 1Q17 2Q17 3Q17
Net charge offs (annualized)
to average loans
No material signs of stress in any loan
portfolio
Nonaccruals down 7% sequentially
Modest net charge-offs of 8 basis points
Appropriately reserved for any potential
issues with a combined allowance of 1.47%,
which is at or near the top of the peer group
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Energy Lending Update
At 9/30/17:
$5.6 billion commitments
$2.9 billion outstanding
E&P line utilization 55%
Q3 energy net chargeoffs $4.1 million
Sixth consecutive quarterly reduction in
criticized/classified energy loan
outstandings
20 year average gross loss rate on E&P loans
(gross chargeoffs as a percent of period
average loans) is 14.3 bps
83%
11%
6% Oil & Gas
Producers
Midstream &
Other
Energy
Services
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Steven G. Bradshaw
Chief Executive Officer
Closing Remarks
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Question and Answer Session