Profile: BOK Financial Corp (BOKF.O)
16 Mar 2018
BOK Financial Corporation, incorporated on October 24, 1990, is a financial holding company. The Company offers full service banking in Oklahoma, Texas, New Mexico, Northwest Arkansas, Colorado, Arizona and Kansas/Missouri. The Company's segments include Commercial Banking, Consumer Banking, Wealth Management, and Funds Management and Other. The Commercial Banking segment includes lending, treasury and cash management services, and customer risk management products for small businesses, middle market and commercial customers. The Commercial Banking segment also includes the TransFund Electronic Funds Network. The Consumer Banking segment includes retail lending and deposit services, lending and deposit services to small business customers served through the retail branch network and all mortgage banking activities. The Wealth Management segment provides fiduciary services, private bank services and investment advisory services in all markets. Its Wealth Management segment also underwrites state and municipal securities and engages in brokerage and trading activities.
The primary purpose of the Funds Management unit is to manage overall liquidity needs and interest rate risk. Each line of business borrows funds from and provides funds to the Funds Management unit as needed to support their operations. The operating results for Funds Management and other include the effect of interest rate risk positions and risk management activities, securities gains and losses, including impairment charges, the provision for credit losses in excess of net loans charged off, tax planning strategies and certain executive compensation costs that are not attributed to the lines of business. The Company's Consumer banking services are provided through f primary distribution channels, including traditional branches, the 24-hour ExpressBank call center, Internet banking and mobile banking. Consumer banking also conducts mortgage banking activities through offices located outside of its consumer banking markets and through HomeDirect Mortgage, an online origination channel.
The Company's loan portfolio includes commercial loans, commercial real estate loans, residential mortgage and personal loans. Commercial loans are generally secured by the customer's assets, including real property, inventory, accounts receivable, operating equipment, interests in mineral rights and other property and may also include personal guarantees of the owners and related parties, the primary source of repayment of the loans is the on-going cash flow from operations of the customer's business. Commercial real estate represents loans for the construction of buildings or other improvements to real estate and property held by borrowers for investment purposes. Residential mortgage loans provide funds for its customers to purchase or refinance their primary residence or to borrow against the equity in their home. Residential mortgage loans are secured by a first or second mortgage on the customer's primary residence. As of December 31, 2016, the Company's total loans amounted to $246.159 million.
The Company maintains a securities portfolio, including the United States Government agency debentures, the United States agency residential mortgage-backed securities, municipal and other tax-exempt securities, and other trading securities. As of December 31, 2016, the Company's total investment securities amounted to approximately $546.145 million.
Sources of funds
The primary sources of liquidity for the Company are cash on hand and dividends from the subsidiary bank. Deposits and borrowed funds are the primary sources of liquidity for the subsidiary bank. The Company's subsidiary bank relies on other financial institutions and the Federal Home Loan Bank of Topeka as a source of funds. As of December 31, 2016, the Company's total deposits amounted to approximately $22,748.095 million.
BOKF, NA, a subsidiary bank of the Company, operates TransFund EFT network, Cavanal Hill Investment Management, MBM Advisors and seven banking divisions, including Bank of Albuquerque, Bank of Arizona, Bank of Arkansas, Bank of Kansas City, Bank of Oklahoma, Bank of Texas and Colorado State Bank and Trust. The Company's other subsidiaries include BOSC, Inc., which is a broker/dealer that engages in retail and institutional securities sales and municipal bond underwriting, and The Milestone Group, Inc., which is an investment advisor to high net worth clients.
BOK Financial Corp
Bank Of Oklahoma Tower
Boston Avenue At Second Street
TULSA OK 74172