NBH Corp. buys 16 Community Banks branches
GLENWOOD SPRINGS, Colorado – Community Banks branches in Aspen, Basalt, Glenwood Springs, Eagle, Edwards and Avon are among the 16 branches sold to NBH Holdings Corp. of Boston.
It’s the corporation’s second major purchase of troubled banks in Colorado, following its July 22 acquisition of Bank of Choice, a Front Range institution with 17 branches from Fort Collins to Kiowa.
Community Banks, held by the Greenwood Village-based Community Bankshares Inc., was under an order from the Federal Reserve Bank of Kansas City, issued Jan. 31, to increase its equity or sell out to another bank.
Under the deal announced this week, Community Bankshares will sell 16 of its 35 Community Banks branches along with the Community Banks name.
The 16 branches sold will continue to operate under the Community Banks name, and staff at the branches are expected to keep their jobs, according to a statement issued by NBH.
Community Bankshares will retain ownership of 21 other branches, including banks in Rifle, Grand Junction and Montrose. Those banks will have to be renamed under terms of the agreement, but a new name was not included in the sales announcement.
“We believe this transaction is a win-win for all parties,” said Donald McG. Woods, chairman and president of Community Bankshares Inc. “The 16 branches involved in this transaction will be in very good hands and our remaining branches will be renamed.
“With our enhanced capital resources, we will continue to improve the bank’s performance,” Woods said.
“We are very pleased to reach this agreement with Community Bankshares to expand our presence in the Colorado banking market,” said Tim Laney, president and chief executive officer of NBH.
“We are confident that we can build on the foundation provided by this transaction – and our recent acquisition of Bank of Choice in Colorado – to demonstrate our commitment and offer high-quality service. The new Community Banks of Colorado will be very well capitalized and poised for growth throughout the state,” Laney added.
NBH Holdings Corp. is a bank holding company created to build a community bank franchise. NBH raised more than $1 billion through the sale of common stock in late 2009. In 2010, it acquired Bank Midwest and Hillcrest Bank in the Kansas City, Mo., market .
“Colorado is an extremely important market to us,” said Laney. “Colorado is performing better than the national average in terms of population growth, job growth forecast and median household income. By growing our community banking franchise in Colorado, we look forward to playing a role in helping Colorado realize its economic potential.”
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