Freed from an enforcement order that led it to sharply reduce its assets, Guaranty Bancorp (GBNK) in Denver is now turning its attention to growth.
The $1.7 billion-asset company announced Monday that it is buying Private Capital Management, a Denver-based wealth management firm that serves affluent individuals and families throughout the U.S. The wealth firm would operate as a subsidiary of Guaranty and would retain its headquarters, staff and management team. The companies did not disclose a sale price.
Paul W. Taylor, Guaranty's chief executive, said in a news release that the combination of the bank's menu of products with Private Capital Management's investment expertise "will further enhance our existing wealth management practice as we continue to assist individuals and businesses looking for a Colorado-based partner to help them achieve their financial goals."
The announcement of the deal comes roughly two weeks after the Federal Reserve Board released Guaranty from a two-year-old written agreement that required it to bolster its capital ratios and reduce its level of problem loans, among other things. Since the order was put in place Guaranty has shrunk its assets by nearly 20% as it has aimed to improve its overall performance.
Tom Meade, the founder and president of Private Capital Management, said the the decision to team up with the bank was made after thoughtful deliberation on what would be best for its clients. "During discussions with CEO, Paul Taylor, and President, Michael Hobbs, it became clear that Guaranty ...shares the same vision for serving the needs of clients while remaining focused on long-term relationships."
The deal is expected to close in the third quarter.