BOK Financial
June 8, 2011 – 4:13 pm
Business Profile
BOK Financial Corporation, a regional financial company, operates in Tulsa, Oklahoma. The Company’s common stock is listed on NASDAQ under the ticker BOKF. The Company offers investment management and trust services through Southwest Trust Company and its subsidiary banks, and administers more than $30 billion of assets. The Company provides a broad range of financial services and products including mortgage banking, cash management services, and trading and brokerage services to retail clients, small businesses, middle-market players and financial institutions.
The Company operates through seven bank subsidiaries including Bank of Oklahoma, Bank of Albuquerque, Bank of Texas, Bank of Arkansas, Colorado State Bank and Trust, Bank of Arizona, and Bank of Kansas City. The Company’s also as another subsidiary BOSC, Inc., which is a dealer-broker engaged in institutional and retail securities sales and underwriting municipal bonds. BOK Financial Corporation recently entered in Kansas City and thereby increased its full service banking presence to seven US states. The Company also delivers investment brokerage services in ten US states and operates a network of electronic funds transfer spanning 11 US states. The Company has offices in Texas, Oklahoma, New Mexico, Arkansas, Colorado, Kansas, Arizona and Utah.
BOK Financial Corporation emphasizes on growing long-term value of its business by building on its existing market leadership in the state of Oklahoma and expanding into fast growing metropolitan areas in the region. Over the last five years, more than half of the Company’s loan and deposit growth came from markets outside of Oklahoma.
Commissions and fees comprise over 40% of the Company’s total revenues. BOK Financial Corporation has delivered record earnings for fourteen consecutive years.
The Company is currently exploring opportunities for growth in its focus regional markets and expansion into new geographies and markets through acquisitions as well as internal growth in banking operations.
BOK Financial corporations headquarters is located Tulsa, Oklahoma. The Company operates through five major business segments: Oklahoma consumer banking, Oklahoma corporate banking, mortgage banking, regional banking and wealth management.
The Oklahoma Corporate Banking segment offers lease and loan financing and cash management and treasury services to companies throughout Oklahoma. The segment fulfills banking services needs of middle market and large client, small businesses and specializes in the agriculture, energy, banking and finance, and healthcare sector. The segment also own TransFund, a network of electronic funds transfer. The segment’s operating revenue increased 9%. The segment contributed 36% or $77.2 million to the net income of the Company in 2006. The segment’s net interest revenue increased 8% in 2006 owing primarily to asset growth. The segment’s average earnings assets, which comprise primarily of commercial loans, rose 13% in 2006 over 2005 and average loans increased 8%.
The Oklahoma Consumer Banking segment offers a comprehensive range of consumer banking services and products including loan, deposit and fee-based services to clients across Oklahoma. The segment provides these services through a variety of distribution channels including traditional and supermarket branches, the Internet and 24-hour call center. The segment also generates a lot of cross selling opportunities by referring its clients to Mortgage banking segment and BOSC’s retail brokerage arm. This segment generated $35.7 million in net income in 2006, which was 17% of the Company’s total consolidated net income, a 5 percentage point increase from 12% in 2005. The segment’s net interest revenues increased 25% in 2006 over 2005. The segment’s average deposits grew 7% and average demand deposits increased 12% over 2005.
Mortgage Banking. The Company provides mortgage banking services and products through BOK Mortgage Division of the Bank of Oklahoma. The segment originates, markets and services government sponsored and conventional mortgage loans. The segment’s activities include loan production and servicing. The loan production activities typically produced good results when volume of loan origination is high and mortgage rates are low. In contrast, the loan servicing activities typically performs better in a high mortgage rate and low prepayments environment. Mortgage banking services contributed $2.0 million to the Company’s consolidated net income for 2006 up from $1.8 million in 2005.
Wealth Management. The segment offers a broad range of private financial products and services including banking, brokerage and fiduciary services. Wealth Management targets affluent individuals, not-for-profit companies, government agencies. The segment offers its services primarily to clients located in Texas, Oklahoma and New Mexico. The segment also offers retail sales of securities, mutual funds and annuities; institutional sales of securities; and bond underwriting. The segment generated net income of $25.2 million in 2006 up 12% from 2005. The segment’s average loan outstanding increased 39%, and trust fees and commissions increased 7% over 2005.
Regional Banking. The segment primarily consist of the consumer and corporate banking services offered by Bank of Albuquerque, Bank of Texas, Colorado State Bank and Trust, Bank of Arkansas, and Bank of Arizona. Regional Banking also provides fiduciary services offered by Colorado State Bank and Trust. The segment primarily focuses on middle sized corporations and small businesses. The segment generated net income of $92.4 million in 2006 and contributed 43% to the Company’s total net income.