Showing its commitment to Texas, BOK Financial Corp. announced Monday that it has signed definitive agreements to buy two small banks in the Dallas-Fort Worth area.
The transactions, for an undisclosed amount of cash, would boost the Tulsa, Okla., banking company's assets in the Lone Star State's biggest market by 29%, to $700 million. BOK Financial has $6.8 billion of assets.
The targets-Canyon Creek National Bank in Richardson, with assets of $99.3 million, and Mid-Cities National Bank in Hurst, with assets of $73.4 million-are to be merged into Bank of Texas, a BOK subsidiary established in January. Bank of Texas would have nine offices in the Dallas-Fort Worth market once the deals close, which is projected for the second quarter.
Stanley A. Lybarger, BOK Financial's president and chief executive, said the company plans to make two to four acquisitions a year in the Dallas- Fort Worth area. Banks with assets of $100 million to $500 million are the likeliest targets, he said.
"We want to have $1 billion of assets in that market," Mr. Lybarger said. "That seems to be the magic number in which we will have a material presence and adequate branch system for our customers."
BOK Financial wants to acquire niche-focused banks-in areas such as private banking or small-business lending-or those with attractive branch networks. The goal is to build a middle-market bank in Dallas-Fort Worth that will not compete with the industry's biggest players, Mr. Lybarger said.
David E. Mudd, bank analyst at Howe Barnes Investments in Chicago, said the Oklahoma company is eyeing the Dallas-Fort Worth area because the "growth prospects are better than those cities in their home markets."
BOK first entered the Texas market in 1994 by buying a trust company. It bought two Dallas banks-First National Bank of Texas of Park City and First Texas Bank-in December 1996.