As filed with the Securities and Exchange Commission on March 27, 1997 ================================================================================ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year ended December 31, 1996 Commission File No. 0-19341 BOK FINANCIAL CORPORATION Incorporated in the State I.R.S. Employer Identification of Oklahoma No.73-1373454 Bank of Oklahoma Tower P.O. Box 2300 Tulsa, Oklahoma 74192 Registrant's Telephone Number, Including Area Code (918) 588-6000 SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT: (NONE) SECURITIES REGISTERED PURSUANT TO SECTION 12(g) OF THE ACT: COMMON STOCK ($.00006 Par Value) Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-X is not contained herein, and will not be contained, to the best of Registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. [ ] State the aggregate market value of the voting stock held by non-affiliates of the Registrant: $117,691,489 as of February 28, 1997. Indicate the number of shares outstanding of each of the Registrant's classes of common stock, as of the latest practicable date: 21,161,789 shares of common stock ($.00006 par value) as of February 28, 1997. List hereunder the following documents if incorporated by reference and the part of Form 10-K in which the document is incorporated: Part I - Annual Report to Shareholders For Fiscal Year Ended December 31, 1996 (designated portions only) Part II - Annual Report to Shareholders For Fiscal Year Ended December 31, 1996 (designated portions only) Part III - Proxy Statement for Annual Meeting of Shareholders scheduled for April 29, 1997 (designated portions only) Part IV - Annual Report to Shareholders For Fiscal Year Ended December 31, 1996 (designated portions only) ================================================================================ 1 BOK FINANCIAL CORPORATION FORM 10-K ANNUAL REPORT INDEX ITEM PAGE PART I 1. Business 2 2. Properties 7 3. Legal Proceedings 7 4. Submission of Matters to a Vote of Security Holders 7 PART II 5. Market for Registrant's Common Equity and Related Stockholder Matters 7 6. Selected Financial Data 8 7. Management's Discussion and Analysis of Financial Condition and 8 Results of Operations 8. Financial Statements and Supplementary Data 8 9. Changes in and Disagreements with Accountants on Accounting and 8 Financial Disclosure PART III 10. Directors and Executive Officers of the Registrant 8 11. Executive Compensation 8 12. Security Ownership of Certain Beneficial Owners and Management 8 13. Certain Relationships and Related Transactions 8 PART IV 14. Exhibits, Financial Statement Schedules and Reports on Form 8-K 9-13 Signatures 14 2 PART I ITEM 1 - BUSINESS GENERAL DEVELOPMENT OF BUSINESS BOK Financial Corporation ("BOK Financial") was incorporated under the laws of the State of Oklahoma on October 24, 1990. Active operations as a bank holding company commenced on June 7, 1991 with the acquisition of the preferred stock ("BOk Preferred Stock") of Bank of Oklahoma, National Association ("BOk") from the Federal Deposit Insurance Corporation ("FDIC") and the conversion of the BOk Preferred Stock into 99.99% of the common stock of BOk. BOK Financial is regulated by the Board of Governors of the Federal Reserve System pursuant to the Bank Holding Company Act of 1956, as amended ("BHCA"). BOK Financial operates primarily through BOk, BOk's subsidiaries and Citizens Bank of Northwest Arkansas, National Association ("CBNWA"). The existing and future activities of BOK Financial and its subsidiaries are limited by the BHCA, which prohibits a bank holding company from engaging in any business other than banking, managing or controlling banks, and furnishing and performing certain bank-related services and activities. Shares disclosed in the following transactions have not been restated for subsequent stock dividends. On June 7, 1991, BOK Financial paid $60.75 million to the FDIC for the BOk Preferred Stock. To finance this acquisition, BOK Financial issued preferred stock totaling $15.0 million at $6.00 per share and common stock ("Common Stock") totaling $46.0 million at $5.75 per share to George B. Kaiser ("Kaiser"), BOK Financial's principal shareholder. Kaiser purchased an additional $10.0 million of BOK Financial Common Stock at $5.75 per share, and BOK Financial contributed the $10.0 million to BOk as additional capital. Per share amounts reflect a 1-for-100 reverse stock split effective December 17, 1991 ("reverse stock split"). Following a bidding process conducted by the Resolution Trust Corporation ("RTC"), BOK Financial, through the mortgage banking subsidiary of BOk, BancOklahoma Mortgage Corp. ("BOMC"), acquired on June 10, 1991 approximately $1.0 billion of mortgage servicing rights and certain other assets of Maxim Mortgage Corporation ("Maxim"). Maxim was formerly a subsidiary of Sooner Federal Savings and Loan Association, which had failed and had been placed under the control of the RTC. Also following a bidding process by the RTC, BOK Financial acquired on August 9, 1991 certain assets and assumed certain liabilities, primarily deposits, of eight branches of Continental Federal Savings and Loan Association of Oklahoma City, Oklahoma. BOK Financial assumed deposits of approximately $214.5 million and paid the RTC a premium of $4.1 million. Kaiser acquired an additional $20.0 million of BOK Financial's Common Stock at $5.75 per share (after effect of the reverse stock split), and BOK Financial contributed the $20.0 million to BOk to facilitate the purchase. On March 27, 1992, CBNWA acquired certain assets and assumed the deposits and certain obligations of two branches of the failed Home Federal Savings & Loan Association from the RTC for $1.1 million. On July 16, 1992, Bank of Oklahoma, N.A., South, an unconsolidated banking subsidiary, was merged into BOk. On November 13, 1992, BOK Financial purchased Southwest Trustcorp, Inc. and its subsidiary, The Trust Company of Oklahoma, Oklahoma City, in exchange for 400,000 shares of Common Stock valued at $4.6 million. On December 31, 1992, BOK Financial acquired certain assets and assumed $502.9 million of deposits and other liabilities of 19 branches of the Sooner Division of First Gibraltar Bank, FSB of Irving, Texas for a purchase price of $16.5 million. On May 7, 1993, BOK Financial issued 343,295 common shares valued at $6.9 million and paid $3.9 million to acquire Sand Springs Bancshares, Inc. and its subsidiary, Sand Springs State Bank. Also on May 7, 1993, BOK Financial issued 1,183,691 common shares to acquire Brookside Bancshares, Inc. and its subsidiary, Brookside State Bank, in a pooling-of-interests transaction. Financial information of BOK Financial for 1992 and 1991 has been restated to reflect this acquisition. On October 9, 1993, BOK Financial acquired certain assets and assumed the deposits and certain obligations of two branches of the failed Heartland Federal Savings & Loan Association from the FDIC for $5.1 million. On May 2, 1994, BOK Financial acquired Plaza National Bank, Bartlesville, Oklahoma for $11.7 million. On June 13, 1994, BOK Financial acquired Texas Commerce Trust Company - Sherman, National Association, Sherman, Texas, a national association limited to trust powers only, for $6.1 million. 3 On October 7, 1994, BOK Financial acquired Northwest Bank of Enid, Enid, Oklahoma for $8.2 million. On November 14, 1994, BOK Financial issued 1,380,017 common shares to acquire Citizens Holding Company and its subsidiaries, Citizens Bank of Muskogee and Citizens Bank of Northwest Arkansas, in a pooling-of-interests. Financial information of BOK Financial for 1993 and 1992 has been restated to reflect this acquisition. On February 12, 1997, BOK Financial acquired Park Cities Bancshares, Inc. and its subsidiary, First National Bank of Park Cities, in Dallas, Texas for $50.0 million. On March 4, 1997, BOK Financial acquired First TexCorp., Inc. and its subsidiary, First Texas Bank, in Dallas, Texas for $39.3 million. Developments relating to individual aspects of the business of BOK Financial are described under "Narrative Description of Business" and "Services Offered" on pages 3 and 4 of this report. Additional discussion of BOK Financial's activities during the current year is incorporated by reference to "Management's Assessment of Operations and Financial Condition" (pages 6 - 18) in BOK Financial's 1996 Annual Report to Shareholders. Additional information regarding BOK Financial's acquisitions is incorporated by reference to Note 2 of "Notes to Consolidated Financial Statements" (page 28 ) in BOK Financial's 1996 Annual Report to Shareholders. NARRATIVE DESCRIPTION OF BUSINESS BOK Financial is a bank holding company, and as such, its activities are limited by the BHCA to banking, certain bank-related services and activities, and managing or controlling banks. BOK Financial's banking and bank-related activities are primarily performed through BOk and CBNWA; nonbank subsidiary operations are not significant. As of December 31, 1996, BOK Financial and its subsidiaries had 2,102 full-time equivalent employees. Following is a description of the more significant services offered by BOK Financial and the competitive and regulatory environments in which it operates. SERVICES OFFERED COMMERCIAL BANKING SERVICES BOK Financial, through BOk and CBNWA, provides a wide range of financial services to commercial and industrial customers, including depository, lending and other financial services such as cash management, leasing and international collections. The loan portfolio is comprised primarily of real estate and commercial loans. The commercial loan portfolio is diversified and distributed among various commercial and industrial customers, including energy-related, manufacturing, trade and service industries. CORRESPONDENT BANKING SERVICES BOK Financial provides a broad range of financial services to banks, savings and loans, credit unions and other financial institutions in Oklahoma and surrounding states. BOK Financial works closely with community financial institutions, assisting them in satisfying the demands of their customers and trade areas by engaging in loan participations and providing other financial services. CONSUMER BANKING SERVICES At December 31, 1996, BOk had 65 banking locations, with 45 locations in the Tulsa and Oklahoma City areas. CBNWA had 4 locations in northwest Arkansas. Services offered include deposit accounts, installment loans, student loans, bank card accounts, personal lines of credit, debit cards, an automated 24-hour telephone loan application service, a 24-hour telephone branch and telephone and personal computer based bill paying services New services planned for 1997 include interactive video kiosks for consumer lending and other transactions. The BancOklahoma Investment Center makes available, through representatives in most BOk branches, a full range of mutual funds, annuities and securities. TransFund, BOk's network of automated teller machines, consists of 635 locations across Oklahoma, Arkansas, southwest Missouri, northern Texas and southern Kansas. INVESTMENT AND MONEY MARKET ACTIVITIES BOk provides securities brokerage, and trading services for corporations, governmental units, individual customers and correspondent banks. Securities include money market instruments, U.S. Government and municipal bonds, corporate stocks and bonds, and mutual funds. The public finance department provides bank-elegible underwriting financial advisory, private placement and term-financing services for governmental and corporate entities. BOK Financial recently announced its entrance into merchant banking which will provide a broad range of financial services outside those traditionally associated with banking, including financial advisory 4 services to both public and corporate sectors, leasing and mezzanine financing, and underwriting of municipal revenue bonds, mortgage backed debt, consumer receivables, and commercial paper. MORTGAGE BANKING BOMC, through its own locations as well as BOk's branch network, offered a full array of mortgage options from federally sponsored programs to "jumbo loans" on higher priced houses. BOMC is the largest originator of mortgage loans in Oklahoma and has a servicing portfolio of approximately $5.9 billion, including $243 million serviced for BOk. Effective January 1, 1997, these mortgage banking activities were transferred to BOk. TRUST AND ASSET MANAGEMENT SERVICES BOk's trust subsidiaries (BancOklahoma Trust Company ("BOTC") in Oklahoma and Alliance Trust Company N.A. in Texas) offer a variety of services to both corporate and individual customers in Oklahoma and Texas. Individual financial trust services include personal trust management, administration of estates and management of individual investment and custodial accounts. For corporate clients, the services include management, administration and recordkeeping of pension plans, thrift plans, 401(k) plans and master trust plans, including a state-of-the-art system for employee benefit plan recordkeeping. BOk's trust division also serves as transfer agent and registrar for corporate securities, paying agent for municipalities and governmental agencies and indenture trustee of bond issues. BOTC serves as an investment advisor to the American Performance Funds, a family of proprietary mutual funds distributed by the Winsbury Company of Columbus, Ohio. At December 31, 1996, trust subsidiaries were responsible for approximately $7.5 billion in assets. Effective March 22, 1997, BOTC was merged into BOk. FOREIGN OPERATIONS BOK Financial does not engage in operations in foreign countries, nor does it lend to foreign governments. COMPETITION The banking industry in Oklahoma is highly competitive. BOK Financial competes with other banks in obtaining deposits, making loans and providing additional services related to banking. There are approximately 332 banks located in Oklahoma, of which approximately 38 are located in the Tulsa County and surrounding metropolitan area and approximately 55 are located in the Oklahoma County and surrounding metropolitan area. BOK Financial is also in competition with other businesses engaged in extending credit or accepting deposits, such as major retail establishments, major brokerage firms, savings and loan associations, credit unions, finance companies, small loan companies, insurance companies and loan production offices of major banks located within and outside Oklahoma. Limited branch banking as permitted in Oklahoma is increasing competition. Generally, a bank may establish two new branch offices within the town or city where the bank is located or in nearby areas not already served by a bank or branch, and may acquire an unlimited number of existing banks and convert them and their branches into branch offices. Within its primary markets, BOk has 23 locations in the Tulsa area and 22 locations in the Oklahoma City area, the state's largest financial markets. Subject to regulatory approval, BOk is considering various locations for additional facilities. Like BOk, other banks are taking advantage of the bank branching laws to establish additional facilities. These additional banking offices are further increasing competition. Limited branch banking is, on the other hand, permitting banks to compete more effectively with savings and loan associations, credit unions and other financial institutions that may establish offices more freely than banks, some of which are not subject to comparable regulatory restrictions on their activities. Oklahoma also permits the acquisition of an unlimited number of wholly-owned bank subsidiaries so long as aggregate deposits at the time of acquisition in a multibank holding company do not exceed 12.25% of all deposits in Oklahoma financial institutions insured by the federal government, exclusive of credit union deposits. Based on the latest statistical data available (as of June 30, 1996), BOK Financial could acquire additional bank subsidiaries so long as the aggregate deposits of all Oklahoma subsidiaries do not exceed approximately $4.1 billion. Deposits of BOk were $3.1 billion and $3.2 billion at June 30, and December 31, 1996, respectively. Oklahoma also permits out-of-state bank holding companies to acquire banks and bank holding companies located in the state and, subject to certain limitations, make additional acquisitions within the state. During the last few years the Oklahoma banking industry has been consolidated into fewer but larger banks. In 1996, two "super-regional" holding companies announced significant acquisitions in Oklahoma. The consolidation over the past several years has brought about a highly competitive environment, in which many customers have access to national and regional financial institutions for many products and services. 5 On September 29, 1994, the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994 ("Riegle-Neal") was signed into law. In summary, commencing one year after passage, qualifying bank holding companies will be permitted to acquire banks in any state. As of June 1, 1997, qualifying banks may be able to engage in interstate branching by merging banks in different states. States " opt-out" of interstate branching by enacting specific legislation prior to June 1, 1997, in which case out-of-state banks would generally not be able to branch into that state, and banks headquartered in that state would not be permitted to branch into other states. States may also opt into interstate branching earlier than 1997 with specific legislation. The law imposes a 10% nationwide deposit cap and a 30% state deposit cap; however, the states' authority is preserved to impose a lower, nondiscriminatory deposit cap. Oklahoma elected to "opt-in" to interstate branching effective May 1997 and established a 12.25% deposit cap. It is anticipated that the total number of Oklahoma banks may decrease and national and regional bank presence in the state may increase. Over the near-term, these changes are expected to increase competition with a greater number of products and services available to Oklahoma customers. Over the long-term, the number of competitors could decrease, depending on the extent of consolidations nationwide, but competition could continue to increase as a result of the remaining institutions needing to be stronger, more innovative and more aggressive to retain a significant presence in a consolidated environment. Additional legislation, judicial and administrative decisions also may affect the ability of banks to compete with each other as well as with other businesses. These statutes and decisions may tend to make the operations of various financial institutions more similar and increase competition among banks and other financial institutions or limit the ability of banks to compete with other businesses. Management currently cannot predict whether and, if so, when any such changes might occur or the impact any such changes would have upon the income or operations of BOK Financial or its subsidiaries, or upon the Oklahoma regional banking environment. SUPERVISION AND REGULATION Bank holding companies and banks are extensively regulated under both federal and state law. The following information, to the extent it describes statutory or regulatory provisions, is qualified in its entirety by reference to the particular statutory and regulatory provisions. It is not possible to predict the changes, if any, that may be made to existing banking laws and regulations or whether such changes, if made, would have a materially adverse effect on the business and prospects of BOK Financial, BOk and CBNWA. BOK FINANCIAL As a bank holding company, BOK Financial is subject to regulation under the BHCA and to supervision by the Board of Governors of the Federal Reserve System (the "Reserve Board"). Under the BHCA, BOK Financial is required to file with the Reserve Board an annual report and such other additional information as the Reserve Board may require. The Reserve Board may also make examinations of BOK Financial and its subsidiaries. The BHCA requires the prior approval of the Reserve Board in any case where a bank holding company proposes to acquire control of more than five percent of the voting shares of any bank, unless it already controls a majority of such voting shares. Additionally, approval must also be obtained before a bank holding company may acquire all or substantially all of the assets of another bank or before it may merge or consolidate with another bank holding company. The BHCA further provides that the Reserve Board shall not approve any such acquisition, merger or consolidation that will substantially lessen competition, tend to create a monopoly or be in restraint of trade, unless it finds the anti-competitive effects of the proposed transaction are clearly outweighed in the public interest by the probable effect of the transaction in meeting the convenience and needs of the community to be served. The BHCA presently prohibits the Reserve Board from approving an application from a bank holding company to acquire shares of a bank located outside the state in which the operations of the holding company's banking subsidiaries are principally conducted, unless such an acquisition is specifically authorized by statute of the state in which the bank whose shares are to be acquired is located, but Riegle-Neal permits interstate banking as of September 29, 1995, as discussed above in "Competition". The BHCA also prohibits a bank holding company, with certain exceptions, from acquiring more than five percent of the voting shares of any company that is not a bank and from engaging in any business other than banking or managing or controlling banks. Under the BHCA, the Reserve Board is authorized to approve the ownership of shares by a bank holding company in any company whose activities the Reserve Board has determined to be so closely related to banking or to managing or controlling banks as to be a proper incident thereto. In making such determinations, the Reserve Board weighs the Community Reinvestment Act activities of the bank holding company and the expected benefit to the public, such as greater convenience, increased competition or gains in efficiency, against the possible adverse effects, such as undue concentration of resources, decreased or unfair competition, conflicts of interest or unsound banking practices. The Reserve Board has by regulation determined that certain activities are closely related to banking within the meaning of the BHCA. These activities include operating a mortgage company, finance company, credit card company 6 or factoring company; performing certain data processing operations; servicing loans and other extensions of credit; providing investment and financial advice; acting as an insurance agent for certain types of credit-related insurance; owning and operating savings and loan associations; and leasing personal property on a full-payout, nonoperating basis. A bank holding and its subsidiaries are further prohibited under the BHCA from engaging in certain tie-in arrangements in connection with the provision of any credit, property or services. Thus, a subsidiary of a bank holding company may not extend credit, lease or sell property, furnish any services or fix or vary the consideration for these activities on the condition that (1) the customer obtain or provide some additional credit, property or services from or to the bank holding company or any subsidiary thereof or (2) the customer may not obtain some other credit, property or services from a competitor, except to the extent reasonable conditions are imposed to insure the soundness of credit extended. The Federal Deposit Insurance Corporation Improvement Act of 1991 established five capital rating tiers ranging from "well capitalized" to "critically undercapitalized". A financial institution is considered to be well capitalized if its Leverage, Tier 1 and Total Capital ratios are at 5%, 6% and 10%, respectively. Any institution experiencing significant growth or acquiring other institutions or branches is expected to maintain capital ratios above the well capitalized level. At December 31, 1996, BOK Financial's Leverage, Tier 1 and Total Capital ratios were 7.46%, 10.49% and 11.74%, respectively. BOK AND CBNWA BOk and CBNWA are national banking associations and are subject to the National Banking Act and other federal statutes governing national banks. Under federal law, the Office of the Comptroller of the Currency ("Comptroller") charters, regulates and serves as the primary regulator of national banks. In addition, the Comptroller must approve certain corporate or structural changes, including an increase or decrease in capitalization, payment of dividends, change of place of business, establishment of a branch and establishment of an operating subsidiary. The Comptroller performs its functions through national bank examiners who provide the Comptroller with information concerning the soundness of a national bank, the quality of management and directors, and compliance with applicable laws, rules and regulations. The National Banking Act authorizes the Comptroller to examine every national bank as often as necessary. Although the Comptroller has primary supervisory responsibility for national banks, such banks must also comply with Reserve Board rules and regulations as members of the Federal Reserve System. CBNWA is also subject to certain consumer-protection laws incorporated in the Arkansas Constitution, which, among other restrictions, limit the maximum interest rate on general loans to five percent above the Federal Reserve Discount Rate. The rate on consumer loans is five percent above the discount rate or seventeen percent, whichever is lower. BOk and CBNWA are insured by the FDIC and are required to pay certain fees and premiums to the Bank Insurance Fund ("BIF"). The BIF has implemented a risk-related insurance system for determining premiums to be paid by a bank. Each bank is placed in one of nine risk categories based on its level of capital and supervisory rating with the well-capitalized banks with the highest supervisory rating paying a premium of 0.00% of deposits and the critically undercapitalized banks paying up to 0.27% of deposits. Also, approximately 21% of BOK Financial's total deposits at December 31, 1996 were acquired through Oakar transactions and are insured through the Savings Association Insurance Fund ("SAIF"). The Deposit Insurance Funds Act of 1996 was enacted on September 30, 1996, which recapitalized the SAIF and implemented a risk-related insurance system identical to the BIF system discussed above. In addition, the Deposit Insurance Fund Act of 1996 implemented an additional assessment on BIF and SAIF deposits, the Financing Corporation ("FICO") Quarterly Payment, which is not tied to the BIF risk classification. The FICO BIF annual rate is 1.296 basis points and the FICO SAIF annual rate is 6.48 basis points. Applicable federal statutes and regulations require national banks to meet certain leverage and risk-based capital requirements. At December 31, 1996, BOk's and CBNWA's leverage and risk-based capital ratios were well above the required minimum ratios. 7 GOVERNMENTAL POLICIES AND ECONOMIC FACTORS The operations of BOK Financial and its subsidiaries are affected by legislative changes and by the policies of various regulatory authorities and, in particular, the credit policies of the Reserve Board. An important function of the Reserve Board is to regulate the national supply of bank credit. Among the instruments of monetary policy used by the Reserve Board to implement its objectives are: open market operations in U.S. Government securities; changes in the discount rate on bank borrowings; and changes in reserve requirements on bank deposits. The effect of such policies in the future on the business and earnings of BOK Financial and its subsidiaries cannot be predicted with certainty. The Oklahoma economy, BOK Financial's primary market, continues to generate job growth. Certain economic indicators show that employment growth within the state has now exceeded U.S. employment growth for fifteen consecutive months, although wage and salary growth in Oklahoma only slightly exceeded the growth rate observed nationally. With Oklahoma's economy tied more closely with the national economy than in the past, a downturn in the national economy could have an adverse impact on BOK Financial's financial position and results of operations. ITEM 2 - PROPERTIES BOK Financial, through BOk, BOk's subsidiaries and CBNWA, owns improved real estate that was carried at $31.0 million, net of depreciation and amortization, as of December 31, 1996. BOK Financial conducts its operations through a total of 65 banking and 4 nonbanking locations in Oklahoma, 4 banking locations in Arkansas and 2 nonbanking locations in Texas as of December 31, 1996. BOk's facilities are suitable for their respective uses and present needs. The information set forth in Notes 6 and 13 of "Notes to Consolidated Financial Statements" (pages 32 and 38, respectively) of BOK Financial's 1996 Annual Report to Shareholders provides further discussion related to properties and is incorporated herein by reference. ITEM 3 - LEGAL PROCEEDINGS None. ITEM 4 - SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS No matters were submitted to a vote of security holders, through the solicitation of proxies or otherwise, during the three months ended December 31, 1996. PART II ITEM 5 - MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS BOK Financial's $.00006 par value common stock is traded over-the-counter and is reported on the facilities of the National Association of Securities Dealers Automated Quotation system ("NASDAQ"), with the symbol BOKF. At December 31, 1996, common shareholders of record numbered 1,674 with 21,131,895 shares outstanding. During 1996, BOK Financial declared a 3% stock dividend in respect of its Common Stock payable in shares of Common Stock. The dividend was payable on November 27, 1996 to shareholders of record on November 18, 1996. BOK Financial's quarterly market information follows: First Second Third Fourth --------------- -------------- -------------- --------------- 1996: Low $19.25 $20.00 $21.25 $23.25 High 23.25 22.75 23.75 28.00 1995: Low $19.75 $20.25 $21.50 $19.00 High 22.25 22.75 25.25 24.50 8 The information set forth under the captions "Table 1 - Consolidated Selected Financial Data" (page 5), "Table 5 - Selected Quarterly Financial Data" (page 11) and Note 15 of "Notes to Consolidated Financial Statements" (page 39) of BOK Financial's 1996 Annual Report to Shareholders is incorporated herein by reference. ITEM 6 - SELECTED FINANCIAL DATA The information set forth under the caption "Table 1 - Consolidated Selected Financial Data" (page 5) of BOK Financial's 1996 Annual Report to Shareholders is incorporated herein by reference. ITEM 7 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The information set forth under the captions "Management's Assessment of Operations and Financial Condition" (pages 6 - 18), "Annual Financial Summary - Unaudited" (pages 44 - 45) and "Quarterly Financial Summary -Unaudited" (pages 46 - 47) of BOK Financial's 1996 Annual Report to Shareholders is incorporated herein by reference. ITEM 8 - FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA The supplementary data regarding quarterly results of operations set forth under the caption "Table 5 Selected Quarterly Financial Data" (page 11) of BOK Financial's 1996 Annual Report to Shareholders is incorporated herein by reference. ITEM 9 - CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE None. PART III ITEM 10 - DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT The information set forth under the captions "Election of Directors" and "Executive Compensation" in BOK Financial's 1997 Annual Proxy Statement for its Annual Meeting of Shareholders scheduled for April 29, 1997 ("1997 Annual Proxy Statement") is incorporated herein by reference. ITEM 11 - EXECUTIVE COMPENSATION The information set forth under the caption "Executive Compensation" in BOK Financial's 1997 Annual Proxy Statement is incorporated herein by reference. ITEM 12 - SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT The information set forth under the captions "Security Ownership of Certain Beneficial Owners and Management" and "Election of Directors" in BOK Financial's 1997 Annual Proxy Statement is incorporated herein by reference. ITEM 13 - CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS The information set forth under the caption "Certain Transactions" in BOK Financial's 1997 Annual Proxy Statement is incorporated herein by reference. The information set forth under Notes 3, 5 and 9 of "Notes to Consolidated Financial Statements" (pages 29, 31, and 34, respectively) of BOK Financial's 1996 Annual Report to Shareholders is incorporated herein by reference. 9 PART IV ITEM 14 - EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K (A)(1) List of Financial Statements filed. The following financial statements and reports included in BOK Financial's Annual Report to Shareholders for the Fiscal Year Ended December 31, 1996 are incorporated by reference in Parts I and II of this Annual Report on Form 10-K. Exhibit 13 1996 Annual Report Description Page Number - ------------------------------------------ ------------------ Consolidated Selected Financial Data 5 Selected Quarterly Financial Data 11 Report of Management on Financial Statements 19 Report of Independent Auditors 19 Consolidated Statements of Earnings 20 Consolidated Balance Sheets 21 Consolidated Statements of Changes in Shareholders' Equity 22-23 Consolidated Statements of Cash Flows 24 Notes to Consolidated Financial Statements 25-43 Annual Financial Summary - Unaudited 44-45 Quarterly Financial Summary - Unaudited 46-47 Appendix A 48 (A)(2) LIST OF FINANCIAL STATEMENT SCHEDULES FILED. The schedules to the consolidated financial statements required by Regulation S-X are not required under the related instructions or are inapplicable and are therefore omitted. (A)(3) LIST OF EXHIBITS FILED. Exhibit Number Description of Exhibit - -------------- ---------------------- 3.0 The Articles of Incorporation of BOK Financial, incorporated by reference to (i) Amended and Restated Certificate of Incorporation of BOK Financial filed with the Oklahoma Secretary of State on May 28, 1991, filed as Exhibit 3.0 to S-1 Registration Statement No. 33-90450, and (ii) Amendment attached as Exhibit A to Information Statement and Prospectus Supplement filed November 20, 1991. 3.1 Bylaws of BOK Financial, incorporated by reference to Exhibit 3.1 of S-1 Registration Statement No.33-90450. 4.0 The rights of the holders of the Common Stock and Preferred Stock of BOK Financial are set forth in its Certificate of Incorporation. 10.0 Purchase and Sale Agreement dated October 25, 1990, among BOK Financial, Kaiser, and the FDIC, incorporated by reference to Exhibit 2.0 of S-1 Registration Statement No. 33-90450. 10 10.1 Amendment to Purchase and Sale Agreement effective March 29, 1991, among BOK Financial, Kaiser, and the FDIC, incorporated by reference to Exhibit 2.2 of S-1 Registration Statement No. 33-90450 10.2 Letter agreement dated April 12, 1991, among BOK Financial, Kaiser, and the FDIC, incorporated by reference to Exhibit 2.3 of S-1 Registration Statement No. 33-90450. 10.3 Second Amendment to Purchase and Sale Agreement effective April 15, 1991, among BOK Financial, Kaiser, and the FDIC, incorporated by reference to Exhibit 2.4 of S-1 Registration Statement No. 33-90450. 10.4 Employment agreements. 10.4(a) Employment Agreement between BOk and Stanley A. Lybarger, incorporated by reference to Exhibit 10.4(a) of Form 10-K for the fiscal year ended December 31, 1991. 10.5 Director indemnification agreement dated June 30, 1987, between BOk and Kaiser, incorporated by reference to Exhibit 10.5 of S-1 Registration Statement No. 33-90450. Substantially similar director indemnification agreements were executed between BOk and the following: Date of Agreement James E. Barnes June 30, 1987 William H. Bell June 30, 1987 James S. Boese June 30, 1987 Dennis L. Brand June 30, 1987 Chester E. Cadieux June 30, 1987 William B. Cleary June 30, 1987 Glenn A. Cox June 30, 1987 William E. Durrett June 30, 1987 Leonard J. Eaton, Jr. June 30, 1987 William B. Fader December 5, 1990 Gregory J. Flanagan June 30, 1987 Jerry L. Goodman June 30, 1987 David A. Hentschel July 7, 1987 Philip N. Hughes July 8, 1987 Thomas J. Hughes, III June 30, 1987 William G. Kerr June 30, 1987 Philip C. Lauinger, Jr. June 30, 1987 Stanley A. Lybarger December 5, 1990 Patricia McGee Maino June 30, 1987 Robert L. Parker, Sr. June 30, 1987 James A. Robinson June 30, 1987 William P. Sweich June 30, 1987 10.6 Capitalization and Stock Purchase Agreement dated May 20, 1991, between BOK Financial and Kaiser, incorporated by reference to Exhibit 10.6 of S-1 Registration Statement No. 33-90450. 10.7 BOK Financial Corporation 1991 Special Stock Option Plan, incorporated by reference to Exhibit 4.0 of S-8 Registration Statement No. 33-44122. 10.7.1 BOK Financial Corporation 1992 Stock Option Plan, incorporated by reference to Exhibit 4.0 of S-8 Registration Statement No. 33-55312. 10.7.2 BOK Financial Corporation 1993 Stock Option Plan, incorporated by reference to Exhibit 4.0 of S-8 Registration Statement No. 33-70102. 10.7.3 BOK Financial Corporation 1994 Stock Option Plan, incorporated by reference to Exhibit 4.0 of S-8 Registration Statement No. 33-79834. 11 10.7.4 BOK Financial Corporation 1994 Stock Option Plan (Typographical Error Corrected January 16, 1995), incorporated by reference to Exhibit 10.7.4 of Form 10-K for the fiscal year ended December 31, 1994 10.7.5 BOK Financial Corporation Directors' Stock Compensation Plan, incorporated by reference to Exhibit 4.0 of S-8 Registration Statement No. 33-79836. 10.7.6 Bank of Oklahoma Thrift Plan (Amended and Restated Effective as of January 1, 1995), incorporated by reference to Exhibit 10.7.6 of Form 10-K for the year ended December 31, 1994. 10.7.7 Trust Agreement for the Bank of Oklahoma Thrift Plan (December 30, 1994), incorporated by reference to Exhibit 10.7.7 of Form 10-K for the year ended December 31, 1994. 10.8 Lease Agreement between One Williams Center Co. and National Bank of Tulsa (predecessor to BOk) dated June 18, 1974, incorporated by reference to Exhibit 10.9 of S-1 Registration Statement No. 33-90450. 10.9 Lease Agreement between Security Capital Real Estate Fund and BOk dated January 1, 1988, incorporated by reference to Exhibit 10.10 of S-1 Registration Statement No. 33-90450. 10.10 Asset Purchase Agreement (OREO and other assets) between BOk and Phi-Lea-Em Corporation dated April 30, 1991, incorporated by reference to Exhibit 10.11 of S-1 Registration Statement No. 33-90450. 10.11 Asset Purchase Agreement (Tanker Assets) between BOk and Green River Exploration Company dated April 30, 1991, incorporated by reference to Exhibit 10.12 of S-1 Registration Statement No. 33-90450. 10.12 Asset Purchase Agreement (Recovery Rights) between BOk and Kaiser dated April 30, 1991, incorporated by reference to Exhibit 10.13 of S-1 Registration Statement No. 33-90450. 10.13 Purchase and Assumption Agreement dated August 7, 1992 among First Gibraltar Bank, FSB, Fourth Financial Corporation and BOk, as amended, incorporated by reference to Exhibit 10.14 of Form 10-K for the fiscal year ended December 31, 1992. 10.13.1 Allocation Agreement dated August 7, 1992 between BOk and Fourth Financial Corporation, incorporated by reference to Exhibit 10.14.1 of Form 10-K for the fiscal year ended December 31, 1992. 10.14 Merger Agreement among BOK Financial, BOKF Merger Corporation Number Two, Brookside Bancshares, Inc., The Shareholders of Brookside Bancshares, Inc. and Brookside State Bank dated December 22, 1992, as amended, incorporated by reference to Exhibit 10.15 of Form 10-K for the fiscal year ended December 31, 1992. 10.14.1 Agreement to Merge between BOk and Brookside State Bank dated January 27, 1993, incorporated by reference to Exhibit 10.15.1 of Form 10-K for the fiscal year ended December 31, 1992. 10.15 Merger Agreement among BOK Financial, BOKF Merger Corporation Number Three, Sand Springs Bancshares, Inc., The Shareholders of Sand Springs Bancshares, Inc. and Sand Springs State Bank dated December 22, 1992, as amended, incorporated by reference to Exhibit 10.16 of Form 10-K for the fiscal year ended December 31, 1992. 10.15.1 Agreement to Merge between BOk and Sand Springs State Bank dated January 27, 1993, incorporated by reference to Exhibit 10.16.1 of Form 10-K for the fiscal year ended December 31, 1992. 12 10.16 Partnership Agreement between Kaiser-Francis Oil Company and BOK Financial dated December 1, 1992, incorporated by reference to Exhibit 10.16 of Form 10-K for the fiscal year ended December 31, 1993. 10.16.1 Amendment to Partnership Agreement between Kaiser-Francis Oil Company and BOK Financial dated May 17, 1993, incorporated by reference to Exhibit 10.16.1 of Form 10-K for the fiscal year ended December 31, 1993. 10.17 Purchase and Assumption Agreement between BOk and FDIC, Receiver of Heartland Federal Savings and Loan Association dated October 9, 1993, incorporated by reference to Exhibit 10.17 of Form 10-K for the fiscal year ended December 31, 1993. 10.18 Merger Agreement among BOk, Plaza National Bank and The Shareholders of Plaza National Bank dated December 20, 1993, incorporated by reference to Exhibit 10.18 of Form 10-K for the fiscal year ended December 31, 1993. 10.18.1 Amendment to Merger Agreement among BOk, Plaza National Bank and The Shareholders of Plaza National Bank dated January 14, 1994, incorporated by reference to Exhibit 10.18.1 of Form 10-K for the fiscal year ended December 31, 1993. 10.19 Stock Purchase Agreement between Texas Commerce Bank, National Association and BOk dated March 11, 1994, incorporated by reference to Exhibit 10.19 of Form 10-K for the fiscal year ended December 31, 1993. 10.20 Merger Agreement among BOK Financial Corporation, BOKF Merger Corporation Number Four, Citizens Holding Company and others dated May 11, 1994, incorporated by reference to Exhibit 10.20 of Form 10-K for the fiscal year ended December 31, 1994. 10.21 Stock Purchase and Merger Agreement among Northwest Bank of Enid, BOk and The Shareholders of Northwest Bank of Enid effective as of May 16, 1994, incorporated by reference to Exhibit 10.21 of Form 10-K for the fiscal year ended December 31, 1994. 10.22 Agreement and Plan of Merger among BOK Financial Corporation, BOKF Merger Corporation Number Five and Park Cities Bancshares, Inc. dated October 3, 1996, incorporated by reference to Exhibit C of S-4 Registratioin Statement No. 333-16337. 10.23 Agreement and Plan of Merger among BOK Financial Corporation and First TexCorp., Inc. dated December 18, 1996, incorporated by reference to Exhibit 10.24 of S-4 Registration Statement No. 333-16337. 11.0 Statement regarding the computation of per share earnings. 13.0 Annual Report to Shareholders for the fiscal year ended December 31, 1996. Such report, except for those portions thereof which are expressly incorporated by reference in this filing, is furnished for the information of the Commission and is not deemed to be "filed" as part of this Annual Report on Form 10-K. 21.0 Subsidiaries of BOK Financial. 23.0 Consent of independent auditors - Ernst & Young LLP. 27.0 Financial Data Schedule 99.0 Additional Exhibits. 99.1 Undertakings incorporated by reference into S-8 Registration Statement No. 33-44121 for Bank of Oklahoma Master Thrift Plan and Trust, incorporated by reference to Exhibit 99.1 of Form 10-K for the fiscal year ended December 31, 1993. 99.2 Undertakings incorporated by reference into S-8 Registration Statement No. 33-44122 for BOK Financial Corporation 1991 Special Stock Option Plan, incorporated by reference to Exhibit 99.2 of Form 10-K for the fiscal year ended December 31, 1993. 99.3 Undertakings incorporated by reference into S-8 Registration Statement No. 33-55312 for BOK Financial Corporation 1992 Stock Option Plan, incorporated by reference to Exhibit 99.3 of Form 10-K for the fiscal year ended December 31, 1993. 13 99.4 Undertakings incorporated by reference into S-8 Registration Statement No. 33-70102 for BOK Financial Corporation 1993 Stock Option Plan, incorporated by reference to Exhibit 99.4 of Form 10-K for the fiscal year ended December 31, 1993. 99.5 Undertakings incorporated by reference into S-8 Registration Statement No. 33-79834 for BOK Financial Corporation 1994 Stock Option Plan, incorporated by reference to Exhibit 99.5 of Form 10-K for the fiscal year ended December 31, 1994. 99.6 Undertakings incorporated by reference into S-8 Registration Statement No. 33-79836 for BOK Financial Corporation Directors' Stock Compensation Plan, incorporated by reference to Exhibit 99.6 of Form 10-K for the fiscal year ended December 31, 1994. (B) Reports on Form 8-K None. (C) Exhibits Required by Item 601 of Regulation S-K The exhibits listed in response to Item 14(A)(3) are filed as part of this report. (D) Financial Statement Schedules None. 14 SIGNATURES Pursuant to the requirements of Section 13 and 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. BOK FINANCIAL CORPORATION DATE: March 25, 1997 BY: /s/George B. Kaiser --------------------- George B. Kaiser, Chairman of the Board of Directors Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below on March 25, 1997 , by the following persons on behalf of the Registrant and in the capacities indicated. OFFICERS /s/George B. Kaiser /s/Stanley A. Lybarger - -------------------------------- ---------------------------- George B. Kaiser, Stanley A. Lybarger, Chairman of the Board of Directors Director, President and Chief Executive Officer /s/James A. White /s/John C. Morrow - ------------------------------ ---------------------------- James A. White, John C. Morrow Executive Vice President and Senior Vice President and Chief Financial Officer/Treasurer Coontroller, Financial Accounting DIRECTORS /s/ V. Burns Hargis - ------------------------------- -------------------------------- W. Wayne Allen V. Burns Hargis /s/ Keith E. Bailey /s/ E. Carey Joullian, IV - ------------------------------- -------------------------------- Keith E. Bailey E. Carey Joullian, IV /s/ Robert J. LaFortune - ------------------------------- -------------------------------- James E. Barnes Robert J. LaFortune /s/ Sharon J. Bell - ------------------------------- -------------------------------- Sharon J. Bell Philip C. Lauinger, Jr. /s/Glenn A. Cox /s/ David R. Lopez - -------------------------------- -------------------------------- Glenn A. Cox David R. Lopez - ------------------------------- -------------------------------- Ralph S. Cunningham Frank A. McPherson /s/ Nancy J. Davies - ------------------------------- -------------------------------- Nancy J. Davies Robert L. Parker, Sr. /s/ Dr. Robert H. Donaldson /s/ James W. Pielsticker - ------------------------------- -------------------------------- Dr. Robert H. Donaldson James W. Pielsticker - ------------------------------- -------------------------------- William E. Durrett James A. Robinson /s/ James O. Goodwin - ------------------------------- -------------------------------- James O. Goodwin L. Francis Rooney, III /s/ Robert L. Zemanek -------------------------------- Robert L. Zemanek