NATIONAL BANK OPERATIONS

8/7/2019 NATIONAL BANK OPERATIONS

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The US Banking industry

In 2001 there were 9,613 Banks.

8,080 were commercial Banks and 1,533 were saving

institution .

The key factors for improvement in industry earnings

included lowering funding costs and g

There was slow growth rates in the banking sector.

Major banks were failing to maintain the assets.



Issues affecting banking industry

1st issue:

level of debt is increasing due to spending byhousehold and high business debt.

2nd issue:intense competition in the banking.

weakening internal control

3rd issue

financial market instability.more expensive and less stable market.



THE OKLAHOMA BANKING INDUSTRY

The Oklahoma banking industry is growing faster than the nationalindustry.

Oklahoma bank posted a net income of $487 million as of dec.2001

According to the FDIC report for Oklahoma:

Bank assets totaled $45.9 billion at the end of year , up 6.2% from 2000.

The average return on asset for the industry was 1.09% up from 1.07%

a year earlier.

Total bank deposits grew by 5.1% from $33.4 billion to $35.1billion in

2001.

The ratio of non interest income to average earning assets grew from

1.40 to 1.46% in 2001.

The percentage of unprofitable banks decreased from 5.94% to 3.55%

The ratio of net loans offs (losses) to total loans increased in 2001 to .44%

Oklahoma had 282 commercial banks. The number of bank employees

grew by more than 400 to 17,701.



HISTORY OF OKLAHOMA NATIONAL BANK

After retiring from 26 years in banking business, Tom Bennett, jr., ONB

chairman got idea for start up bank from his son.

They appointed Garry Groom as CFO at other two banks.

Bezanson became Oklahoma National Bank¶s president and the process of

creating a dream to turn into reality. Bennett pulled together a group of investors and board members that

reflected the bank interest in entrepreneurs and business professionals.

The bank employees includes mix of veteran bankers and industry new

comers.

The average banking experience of the twelve senior officers is 22 yearsand the average banking experience of 33 person staff is 15 years.



NATIONAL BANK OPERATIONS

1.PRODUCTS

Bank offers a variety of deposits products

including regular checking, saving accounts.

Personal checking account pays a fix rate of interest to the customer who maintain a minimum

balance of $5,000.

Bank makes mortgage loans, consumer loansand specialize in small and medium sized business

loan.



2. CULTURE

Bank opens all meetings with a prayer.

The bank that makes dreams come true

employee and customer surveys have reveled

that the bank has one of the best reputations

in the community.



3. MARKET DYNAMICS

Bank has chosen one of the most successful

economic regions in Oklahoma as its home.

Tulsa, accounts for 32 % of all the GDP in the

state, and in the next year it will increase with3.3 %.

The value of goods and services produced in

Tulsa area is growing faster than in most citiesnationwide.



4. FINANCIAL PERFORMANCE

In 2001 national bank made a net profit of

$ 65,237 for the year, $ 359,237 ahead of the

original plan given to investors.



MAJOR COMPETITORS

Bank of America

Bank of America reported earnings of $8.04 billion, a earlier year companyreported operating earnings of $7.86 billion.

Net income for 2001 was $6.89 billion compared to previous year.

Bank of America currently operates 49 full service banking center in state of Oklahoma.

Bank of Oklahoma It is a multi bank holding company based in Tulsa, Oklahoma.

The assets of organization exceeds $11 billion and enjoy market leadershipthrough the state of Oklahoma.

Bank financial operates four principal lines of business under its bank of Oklahoma franchise:

1. Corporate Banking2. Consumer Banking

3. Mortgage Banking

4. Trust Services



Contd.

Stillwater National Bank and Trust Company

It offers commercial and consumer lending and deposit services from

offices in Stillwater, Tulsa, Oklahoma City.

Stillwater had total assets of $1.2 billion, deposits of $905 million and

shareholders equity of $85.1 million.

Stillwater philosophy is to provide high level of quality customer service,

and products responsive to customer needs.



THE FUTURE

The bank plans to add three branches in the Tulsa area within the next

years.

They hope to grow to $170 million in total assets by year ended 2002, and

to $250 by bank¶s 5th anniversary in 2005.



Swot analysis of ONC bank

Strenght

always looking ahead.

maintain high quality assets.try to manage the high growth in future

unique culture.

hard working staff.



Contd.

Weakness

not providing loans to the large organizations.

lower percentage in total asset of the banks.

Opportunity

maintain profitable niche marketby providingpersonalize services.

increse more cutomers by giving them values.



Contd

Threat

threat from competitor.

continuous slow down in US market.new entering of the market.

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NATIONAL BANK OPERATIONS