Boulder group buys control of New Frontier Bank

GREELEY – New Frontier Bank entered into a definitive agreement for an infusion of at least $30 million from a Boulder-based investment group and selected a new chief executive, the institution announced Wednesday.

Colorado Financial Holdings LLC, headed by Mark Wong and Gary Jacobs, will receive at least 51 percent ownership of the bank’s holding company in exchange for the capital infusion. The consummation of the deal is subject to regulatory approval and due diligence but is expected to close in the next 60 days.

A deal has been in the works for months, as Colorado Financial Holdings applied with the Federal Reserve to become a bank holding company in early December. The investment group plans to seek additional investments from current shareholders to further shore up the bank’s capital.

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New Frontier is subject of a cease and desist enforcement action from the Federal Deposit Insurance Corp.

“We are committed to taking the corrective actions which the bank and its regulators believe are appropriate to address the operations and soundness of the bank, including increasing capital, improving management and oversight, while improving the asset and loan administration process to position the Bank for long term growth and success,´ said Wong, in a prepared statement.

The action requires the bank implement a number of actions in order to improve the health of New Frontier, including the replacement of its current president, Larry Seastrom. The bank has tentatively selected Jim Slavik as the new CEO, pending regulatory approval. Slavik has international banking experience with a focus on turnarounds.