Issue link: http://read.dmtmag.com/i/114548
A Closer Look A Financial Partner in Good Times – and Bad The Equipment Finance Group of BOK Financial understands the equipment industry's ups and downs, which makes all the difference for dealers. By Joanne Costin When it comes to partnerships between dealers and lenders, some dealers discovered during the recession that their lenders were not in it for the long haul. As business declined and the dealer's collateral dropped in value, some lenders sought a quick exit. Overnight, terms were changed, credit lines reduced, and adjustments made to reduce the value of dealer fleets dramatically, leaving dealer partners scrambling. Bill Lathrop, president of B-C Equipment Sales in Corpus Christi, Texas, faced a similar scenario three years ago. "You thought you had a deal with your lender but they said, 'We're not doing that anymore.' You had about 30 days notice that things weren't going to be the same," he recalled. In April 2010, Lathrop moved his business to BOK Financial (BOKF). Since then, Lathrop has been happy with his banking relationship. "They understand the construction equipment business. They understand you can have hidden value in your equipment. They know there are swings in the value of the equipment over the long term – that it's not just today's value," he explained. BOKF Equipment Finance is a relationship lender, focused on establishing long-term relationships with customers. Regional Bank with a Community Bank Feel Senior Vice President Mark Killpack heads BOK Financial's tight-knit, specialty equipment group that provides funding exclusively for construction dealers and rental dealers. BOKF Equipment Finance is a successful subsidiary of BOK Financial, a $28 billion, publicly traded (NASDAQ: BOKF) regional financial services company headquartered in Tulsa, Okla. When he joined the company in 2007 after more than 20 years with CIT, Killpack was impressed by BOK Financial's stability and culture. "We get to know people extremely well," said Killpack. "We also do what we understand. That combination will generally make you very successful." SNL Financial ranks BOK Financial as the 21st largest U.S.-based publicly traded bank holding company. It has been profitable for 20 consecutive years and was the largest commercial bank in the U.S. that elected not to participate in the U.S. Treasury's Capital Purchase Plan, an element of the Troubled Asset Relief Plan (TARP). A focus on relationships sets the Equipment Finance Group at BOK Financial apart from other lenders. It is an approach that resonates with dealers. "They understand the importance of relationships," said Lathrop. "It is the same with my customers. I don't want a deal, I want a relationship so I can get multiple deals." Whit Perryman has relationships with BOK Financial employees that go back 25 years. The former banker is now CEO of Vermeer Equipment of Texas and has been a customer since 2008. He offers a unique perspective on what sets BOK Financial apart from other banks. "They have surrounded themselves with talented people who have a focus on the industry, and through those people they have developed good relationships," said Perryman. "Big banks tend to have a lot of turnover. They don't have that." The relationship approach has paid off for BOK Financial. The Equipment Finance Group has increased the value of loan commitments every year since 2007, and came through the recession unscathed by bad loans. Relationships and Lending "When we put a customer on the books we view them as a partner," said Killpack. "Before we enter into the relationship, we make sure we are the right fit for the prospect as our focus is to maintain the relationship longterm. We may drive you crazy with questions, but by the time we get the loan on the books there are at least three of us who know your business on multiple levels." Keeping customers is a source of pride for BOKF Equipment Finance. "We lost only one customer through 2008, 2009 and 2010. We found a way to work with everybody [else]," said Killpack. "That is what sets us apart." 48 | www.cedmag.com | Construction Equipment Distribution | March 2013 48_A Closer Look_KP_final.indd 48 2/28/13 4:54 AM