On Jul 4, 2014, we issued an updated research report on
BOK Financial Corporation
). The company has transformed from a mere bank in Oklahoma to a
leading financial service provider owing to its expansion strategy
through inorganic routes and a local leadership-based business
Consistent with its strategy, BOK Financial made two acquisitions
in the first half of 2014. In Feb 2014, BOK Financial completed the
acquisition of Kansas-based GTRUST Financial Corporation, an
independent trust and asset management company. The company's
wealth management platform assumed assets worth $600 million.
In Apr 2014, the company acquired Houston-based MBM Advisors, an
independent full service retirement and pension plan investment
company for around $27 million. The company assumed assets under
management of around $1.3 billion.
Further, BOK Financial is strengthening its balance sheet with
rising loan balances. The company's credit quality has been showing
decent improvement as well. Period end loans grew at a Compound
Annual Growth Rate (CAGR) of 6.3% in the last 4 years (2010-2013)
while the company has been able to improve its credit metrics with
a declining trend in allowance for credit losses and charge offs in
the recent quarters.
Despite these positives, we believe there are certain concerns that
may pose threats to the company's financials in the near term.
These include a low interest rate environment, escalating operating
expenses and the prevailing stringent regulatory landscape.
Over the past 60 days, the Zacks Consensus Estimate for 2014
remained stable at $4.28 per share, while it fell 0.4% to $4.43 per
share for 2015.
BOK Financial currently carries a Zacks Rank #3 (Hold).
CVB Financial Corp.
First Connecticut Bancorp, Inc.
Central Pacific Financial Corp.
) are better-ranked stocks in the banking space. All these stocks
sport a Zacks Rank #1 (Strong Buy).
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BOK FINL CORP (BOKF): Free Stock Analysis
FIRST CT BANCRP (FBNK): Free Stock Analysis
CENTRAL PAC FIN (CPF): Free Stock Analysis
CVB FINL (CVBF): Free Stock Analysis Report
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