BOK Financial Corporation
) announced a deal for the acquisition of Kansas-based GTRUST
Financial Corporation, an independent trust and asset management
company. Though the share price of BOK Financial was expected to
get a boost after the announcement, it declined slightly based on
market dynamics and stood at $62.71.
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Financial terms of the agreement were not disclosed. Further, the
acquisition is anticipated to be completed before the end of the
fourth quarter 2013, subject to certain customary regulatory
The acquisition by BOK Financial demonstrates its aim of
diversifying its revenue opportunities by increasing its
fee-based business. This is the first acquisition of a fee-only
financial planner by the company. Moreover, BOK Financial expects
to leverage the new wealth management potential of GTRUST across
its geographic footprints. Further, following the acquisition,
the company's assets under management would increase by $600
Previously, the company had purchased United Banks of Colorado in
2007 and Colorado State Bank and Trust in 2003. Last year, BOK
Financial completed the acquisition of Denver-based The Milestone
Group Inc., a wealth management firm. Notably, over the period of
one year, The Milestone Group has increased its discretionary
assets by 19%.
GTRUST Financial, which provides varied financial services in
Topeka, Wichita, Marysville, Larned and Overland Park, was
founded in 1991. The services provided by the firm includes asset
and risk management, tax planning, fee-only financial planning,
debt management, estate planning and charitable capital strategy.
Having strengthened its foothold over the years, through its
local bank brand, Colorado State Bank and Trust, BOK Financial
has a robust presence in Denver. Therefore, with the acquisition
of GTRUST Financial, the company will expand in Kansas with the
help of the acquired firm's wealth management brand and
With the aim of providing a wide array of investment products to
its clients, BOK Financial has become enthusiastic in making
acquisitions and preparing a platform for growth. Moreover, this
acquisition depicts the company's efforts toward providing
quality investment services and advice to clients.
On the other hand, the deal widens GTRUST Financial's scope and
will help its expansion efforts with the commitment of providing
investment decisions to its clients. Moreover, there will be no
change in the company's current client teams.
Overall, the clients of GTRUST Financial will have access to the
additional services and products provided by Colorado State Bank
and Trust, while BOK Financial will take advantage of GTRUST
Financial's investment management potencies.
The acquisitions of such asset management companies are welcome
as they play a major role in preserving investor confidence in
the stock. We also believe that BOK Financial's diverse revenue
stream, sturdy capital position and expense control initiatives
augur well for investors.
Capital deployment efforts also bode well and boost investors'
confidence. Nevertheless, a protracted economic recovery and its
exposure to the energy sector and risky assets remain our
BOK Financial currently carries a Zacks Rank #3 (Hold).Some
companies in the same sector that are worth considering include
BofI Holding, Inc.
Central Pacific Financial Corp.
) with a Zacks Rank #1 (Strong Buy), while
Prosperity Bancshares Inc.
) carries a Zacks Rank #2 (Buy).