Banks’ buyer may move headquarters
Vail, CO Colorado
The company that bought Community Banks of Colorado seems to like the state. Does that mean the state is ready to be home for another bank holding company?
Bank Midwest Friday bought the assets of Community Banks of Colorado, a Greenwood Village-based company with branches in Avon, Edwards and Eagle. The move was brokered by the Federal Deposit Insurance Corp., which determined that the bank company had been “critically undercapitalized” since late July.
The banks re-opened Saturday.
The purchase announcement, which was posted on the front door of the Edwards branch Friday, stated that Bank Midwest and the FDIC would share losses over $714.2 million from Community Banks. The announcement also stated that the FDIC’s Deposit Insurance Fund would pay about $225 million of those losses.
While initial reports indicated that the banks would operate under the Bank Midwest flag, The Denver Post reported Monday that the banks would continue to operate as Community Banks of Colorado.
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G. Timothy Laney, CEO of Boston-based National Bank Holdings, of which Midwest Banks is a subsidiary, Monday told The Denver Post that the company is also considering relocating its headquarters to Denver.
Bank Midwest in July acquired Bank of Choice in Greeley. That bank had $1.07 billion in assets. Community Banks had $1.38 billion in assets at the time of its sale. National Bank Holdings has $6.8 billion in assets.
Community Banks was the sixth Colorado bank to fail this year. The last, in July, was Bank of Choice. Nationwide, 84 FDIC-insured banks have failed this year.