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 by
household 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 national
industry.
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 years
and 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 loans
and 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 with
3.3 %.
 The value of goods and services produced in
Tulsa area is growing faster than in most cities
nationwide.
 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 company
reported 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 leadership
through the state of Oklahoma.
• Bank financial operates four principal lines of business under its bank of
Oklahoma franchise:
1. Corporate Banking
2. 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 providing
personalize services.
increse more cutomers by giving them values.
 Contd…

• Threat
threat from competitor.
continuous slow down in US market.
new entering of the market.