BOK Financial Corp 1998 10-K Summary
Business Context and Reporting Period
This Form 10-K covers the fiscal year ended December 31, 1998, for BOK Financial Corporation, a bank holding company incorporated in Oklahoma. The company operates primarily through four subsidiary banks: Bank of Oklahoma, N.A. (BOk), Bank of Texas, N.A., Bank of Albuquerque, N.A., and Bank of Arkansas, N.A. Significant non-banking subsidiaries include BOSC, Inc. (securities) and BOK Capital Services Corporation (leasing/financing). As of year-end, the company employed 2,758 full-time equivalent staff.
Key Financial Metrics
Note: Specific revenue, profit, cash flow, and debt figures are incorporated by reference to the 1998 Annual Report to Shareholders and are not explicitly stated in the provided text.
- Capital Ratios (Dec 31, 1998): Leverage 6.57%, Tier 1 7.80%, Total Capital 11.96% (All exceed "well capitalized" thresholds).
- Real Estate: Owned improved real estate carried at $44 million (net of depreciation/amortization).
- Market Capitalization: Aggregate market value of voting stock held by non-affiliates was $77,780,112 as of February 28, 1999.
- Stock Outstanding: 45,100,440 shares of common stock as of March 1, 1999.
- Deposit Composition: Approximately 17% of total deposits were acquired through Oakar transactions and insured through the Savings Association Insurance Fund (SAIF).
Material Changes and Developments
- Acquisitions: Bank of Albuquerque, N.A. was formed in December 1998 to acquire $465 million in deposits via a forced divestiture related to the NationsBank/Bank of America merger. A merger agreement with First Bancshares of Muskogee, Inc. was dated December 30, 1998.
- Stock Actions: A 3% stock dividend was declared in 1998. A two-for-one stock split (100% stock dividend) was declared on January 26, 1999, payable February 22, 1999.
- Stock Repurchase: A program to repurchase up to 200,000 shares was terminated on December 31, 1998.
- Market Position: BOk holds the number one market share in Oklahoma. Bank of Texas holds approximately 1% market share in the Dallas-Ft. Worth area, expected to rise to 2% after pending acquisitions.
Outlook, Risks, and Management Commentary
Management notes that the banking industry is highly competitive, with operations affected by Federal Reserve credit policies and legislative changes. The company does not engage in foreign operations or lend to foreign governments.
- Regulatory Risks: The company is subject to extensive federal and state regulation. Future changes in banking laws or capital requirements could materially affect operations, though current capital ratios are well above minimums.
- Insurance Assessments: The company pays risk-related premiums to the Bank Insurance Fund (BIF) and Savings Association Insurance Fund (SAIF), plus FICO quarterly payments (1.22 basis points for BIF; 6.10 basis points for SAIF).
- Legal Proceedings: Specific details are incorporated by reference to Note 13 of the financial statements; no summary of active litigation is provided in the text.
Investor Verification Checklist
- Verify the specific revenue, net income, and cash flow figures in the "Consolidated Selected Financial Data" (Page 9 of the Annual Report) as they are not listed in this filing text.
- Review Note 13 of the financial statements for details on legal proceedings and contingencies.
- Confirm the impact of the pending merger with First Bancshares of Muskogee and the Bank of Albuquerque acquisition on future earnings.
- Check the "Market Risk" section (Pages 22-24 of the Annual Report) for quantitative disclosures regarding interest rate and market risk.
- Verify the post-split share count and adjusted per-share metrics following the February 1999 two-for-one stock split.