Business Context and Reporting Period
Company: BOK Financial Corporation
Filing Type: Form 10-K (Annual Report)
Period Ended: December 31, 2003
Filing Date: March 12, 2004
BOK Financial is a financial holding company headquartered in Tulsa, Oklahoma, operating full-service banking in Oklahoma, Texas, New Mexico, Arkansas, and Colorado. The company operates through five principal lines of business: corporate banking, consumer banking, mortgage banking, wealth management, and regional banks. As of December 31, 2003, the company employed 3,449 full-time equivalent employees and operated 140 locations across its footprint.
Key Financial Metrics
Note: Specific revenue, profit, cash flow, and margin figures are incorporated by reference to the 2003 Annual Report to Shareholders and are not explicitly detailed in the provided text. The following metrics are available from the filing text:
- Capital Ratios (Dec 31, 2003): Tier 1 risk-based capital ratio of 9.15%; Total risk-based capital ratio of 11.31%.
- Leverage Ratio: 7.17% (Tier 1 capital divided by adjusted average total assets).
- Capital Classification: All subsidiary banks were classified as "well capitalized" under regulatory guidelines.
- Dividend Capacity: Banks could declare up to $121 million in dividends without regulatory approval; internal policy limits this to $71 million.
- Real Estate: Owned and leased improved real estate carried at $122 million (net of depreciation and amortization).
- Stock Data: 57,366,616 shares outstanding as of March 1, 2004. Market value of non-affiliate stock was approximately $712.9 million (based on June 30, 2003 price).
Material Changes and Operational Highlights
- Market Share: Bank of Oklahoma (BOk) maintained a 13% market share of total deposits in Oklahoma, with 32% in Tulsa and 10% in Oklahoma City. Bank of Albuquerque held an 11% share in its market.
- Acquisitions: The filing references acquisitions incorporated by reference to the Annual Report, including the Bank of Tanglewood acquisition (completed Oct 2002) and the Colorado State Bank and Trust merger (July 2003).
- Stock Repurchases: No shares were repurchased under the company's program in 2003. Since the program's 1998 authorization, 617,051 shares have been repurchased.
- Dividend Policy: The company continues its practice of not paying cash dividends, instead recommending an annual dividend in shares of common stock.
Guidance, Risks, and Contingencies
Regulatory Environment: The company is subject to extensive federal and state regulations. The filing highlights the potential impact of a new Basel Committee on Banking Supervision (BCBS) capital accord, expected to be finalized by mid-2004, which may increase minimum capital requirements and introduce charges for operational risk.
Market Risk: Primary exposure is to interest rate changes. The company has no material investments affected by foreign exchange or equity prices. Energy derivative contracts are matched against offsetting contracts to mitigate commodity price risk.
Contingencies:
- Stock Price Guarantee: A limited price guarantee exists on shares issued during the Bank of Tanglewood acquisition.
- Source of Strength: As a bank holding company, BOK Financial is expected to act as a source of financial strength to its subsidiaries, potentially requiring resource commitment during times of subsidiary distress.
- Legal Proceedings: Specific details are incorporated by reference to the Annual Report; no specific pending litigation is detailed in the text provided.
Investor Verification Checklist
- Verify specific revenue, net income, and earnings per share figures in the "Consolidated Selected Financial Data" table of the 2003 Annual Report to Shareholders (incorporated by reference).
- Review the "Management's Assessment of Operations and Financial Condition" for detailed analysis of loan concentrations and deposit distributions.
- Confirm the status and potential financial impact of the stock price guarantee related to the Bank of Tanglewood acquisition.
- Monitor the implementation timeline and specific capital charge requirements of the new BCBS capital accord.
- Check the 2004 Proxy Statement for details on executive compensation and director elections.