NBH purchases branches of another Colorado bank

DENVER – NBH Holdings Corp., parent company of Bank Midwest, National Association that purchased Greeley-based Bank of Choice last month, has purchased 16 branches of Community Banks of Colorado as well as the rights to the Community Banks of Colorado name.

Boston-based NBH Holdings and Greenwood Village-based Community Bankshares Inc., holding company of Community Banks of Colorado, announced the deal Aug. 8.

Community Bankshares will retain 20 branches now known as Community Banks of Colorado but will rename and rebrand them. The new name has not been disclosed. Community Bankshares also owns four branches in California, which will also be renamed, but none of the branches owned by either company is located in Larimer or Weld counties.

Employees at the 16 branches purchased are expected to continue working in their current locations.

Community Banks of Colorado was considered undercapitalized by regulators, and the Federal Reserve Bank of Kansas City placed Community Banks of Colorado under an order to increase capital on Jan 31. But the deal with NBH was not the result of regulatory action.

The deal was attractive to both parties due to NBH’s desire to expand its Colorado footprint and Community Banks’ need to increase capital.

“We believe this transaction is a win-win for all parties,´ said Donald Woods, chairman and CEO of Community Bankshares in a statement. “The 16 branches involved in this transaction will be in very good hands and our remaining branches will be renamed and, with our enhanced capital resources, we will continue to improve the bank’s performance and maintain our ability to meet and exceed our customers’ expectations and needs.”

NBH was formed in 2009 specifically for the purpose of buying troubled banks. In 2010, NBH acquired Bank Midwest, based in Kansas City, Mo., which is listed as the purchaser of Bank of Choice in the July 22 deal with the Federal Deposit Insurance Corp. to acquire Bank of Choice.

“Colorado is an extremely important market to us,´ said Tim Laney, president and CEO of NBH. “Colorado is performing better than the national average in terms of population 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.”