BOK Financial Corp. in Tulsa announced Wednesday that it has a deal to buy the troubled United Banks of Colorado Inc. in Englewood for $43 million in cash.
United Banks of Colorado is the parent of the $179 million-asset First United Bank, which has 10 Denver branches and one in Colorado Springs. First United is to merge into and take the name of the BOK's Denver subsidiary, Colorado State Bank and Trust.
BOK, with $18.1 billion of assets, is a multibank holding company with banks in seven states. Its deal for United Banks would more than triple its Colorado branch network.
United Banks' First United subsidiary has been operating under an enforcement order from the Office of the Comptroller of the Currency since October. The order required it to improve board oversight, increase capital, and hire an outside consultant to review management. It has lost $936,000 in the last four quarters, according to Carson Medlin Co. Investment Bankers, which initiated the transaction and acted as First United's financial adviser.
The deal price is about 2.33 times United Banks' tangible book value.
The deal is expected to close this quarter.
