BOK Financial Corp 10-K Summary (Fiscal Year Ended Dec 31, 1995)
Business Context and Reporting Period
This Form 10-K covers the fiscal year ended December 31, 1995, for BOK Financial Corporation, a bank holding company incorporated in Oklahoma. The company operates primarily through its subsidiary, Bank of Oklahoma, National Association (BOk), and Citizens Bank of Northwest Arkansas, National Association (CBNWA). As of December 31, 1995, the company employed 1,842 full-time equivalents and operated 62 banking locations in Oklahoma, 4 in Arkansas, and 2 nonbanking locations in Texas. The company's activities are limited to banking, managing banks, and bank-related services under the Bank Holding Company Act.
Key Financial Metrics
The provided filing text incorporates detailed financial statements by reference and does not contain specific numerical values for revenue, net income, cash flow, or margins within the body of this document. However, the following capital and balance sheet metrics are explicitly stated:
- Capital Ratios (Dec 31, 1995): Leverage Ratio: 6.55%; Tier 1 Capital Ratio: 9.91%; Total Capital Ratio: 11.17%.
- Deposits: Consolidated deposits were $2.9 billion as of December 31, 1995 (up from $2.7 billion at June 30, 1995).
- Assets Under Management: Trust subsidiaries managed approximately $7.6 billion in assets.
- Mortgage Servicing: Portfolio of approximately $5.4 billion.
- Real Estate: Owned improved real estate carried at $27.9 million, net of depreciation.
- Stock Information: 20,435,826 shares of common stock outstanding as of February 29, 1996. Market value of non-affiliate voting stock was $90,716,315.
Material Changes and Developments
The filing details a history of significant acquisitions from 1991 through 1994, including the acquisition of Bank of Oklahoma from the FDIC, Maxim Mortgage Corporation assets, and several other banks and trust companies. No specific acquisitions are listed for the 1995 period in the text provided, though the company notes that financial information for prior years was restated to reflect pooling-of-interests transactions completed in 1993 and 1994. The company declared a 3% stock dividend in November 1995. The Oklahoma economy showed modest improvement in 1995 with the creation of approximately 32,400 new jobs.
Outlook, Risks, and Management Commentary
Regulatory Environment: The company is subject to extensive regulation by the Federal Reserve and the Office of the Comptroller of the Currency. The Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994 is expected to increase competition in Oklahoma as interstate banking becomes more accessible. Oklahoma legislation to "opt-in" to early interstate branching was pending in 1996.
Capital Adequacy: The company is classified as "well capitalized" with capital ratios significantly exceeding the minimum requirements (5% leverage, 6% Tier 1, 10% Total).
Risks and Contingencies:
- FDIC/SAIF Assessments: Approximately 25% of deposits are insured through the Savings Association Insurance Fund (SAIF). Pending legislation may require a one-time assessment on SAIF-insured deposits, estimated to cost between 0.66% and 0.90% of those deposits.
- Competition: The banking industry in Oklahoma is highly competitive, with approximately 346 banks in the state. Consolidation and the entry of national and regional banks are increasing competitive pressure.
- Economic Sensitivity: Operations are tied to the Oklahoma economy, which is increasingly correlated with the national economy; a national downturn could adversely impact results.
Investor Verification Checklist
- Verify specific revenue, net income, and earnings per share figures in the "Consolidated Statements of Earnings" (Page 22 of the Annual Report) which is incorporated by reference.
- Review the "Consolidated Statements of Cash Flows" (Page 26) for liquidity details not present in this summary.
- Confirm the final cost and timing of the pending one-time SAIF assessment on deposits.
- Monitor the status of Oklahoma's "opt-in" legislation for interstate branching and its potential impact on market share.
- Examine the "Notes to Consolidated Financial Statements" for details on loan portfolio quality and non-performing assets.