Regulators take over Community Banks of Colorado
Vail, CO Colorado
EDWARDS, Colorado – Federal regulators closed local branches of Community Banks of Colorado on Friday.
The Federal Deposit Insurance Corp. seized the Greenwood Village-based bank, including branches in Avon, Edwards and Eagle.
At 7 p.m. Friday at the Edwards branch, several people were working at desks as a deputy from the Eagle County Sheriff’s Office sat in the lobby.
A press release posted on the door said that the branches would open Saturday as Bank Midwest, which agreed to assume the assets and deposits of Community Banks of Colorado. In addition, the FDIC and Kansas City, Mo.-based Bank Midwest agreed to share losses on $714.2 million of Community Banks of Colorado’s loans and other assets.
Bank Midwest is a unit of NBH Holdings Corp. of Boston, which announced in August that it had reached a deal to buy 16 branches of Community Banks of Colorado, along with the Community Banks name.
Community Banks of Colorado was a state-chartered institution and under the supervision of the Federal Reserve. The Fed appointed the FDIC receiver of the bank after determining that it had been “critically undercapitalized” since July 29.
The FDIC seized the four banks across the country Friday. The largest by far was Community Banks of Colorado, with $1.38 billion in assets and $1.33 billion in deposits.
The seizures Friday, which also included two banks in Georgia and one in Florida, brought the number of U.S. banks that have failed this year to 84. By this time last year, regulators had shuttered 139 banks.
The Edwards branch of Community Banks of Colorado is in Edwards’ Riverwalk, the Avon branch is on Benchmark Road, and the Eagle branch is on Chambers Avenue. It has 40 branches in all.
Community Banks was created in 1989 with the purchase of the Rocky Ford National Bank, which was located in a community east of Pueblo, according to the bank’s website. It extended to Northern California in 1997.