High Plains Bank acquires Hugo-based bank

High Plains Bank will absorb The First National Bank of Hugo under terms of an acquisition agreement announced Wednesday.

Founded in Flagler in 1908, High Plains Bank has physical branches in Longmont and Keenesburg, as well as in Bennett, Flagler and Wiggins.

First Liberty Capital Corp., the holding company for The First National Bank of Hugo, and High Plains Banking Group Inc., the holding company for High Plains Bank, jointly announced the signing of a definitive agreement whereby High Plains Banking Group Inc. will acquire 100% of the shares of FNB Hugo. High Plains Bank and the Hugo-based bank will merge into one bank operating as High Plains Bank.

The merger will not be immediate. The Federal Reserve and Colorado Division of Banking must formally approve the acquisition and merger, and both banks must go through other regulatory procedures that could take 90 to 120 days. The two banks hope to have all necessary approvals in place to close in the first quarter or early second quarter of this year.

“We are excited to be joining forces with High Plains Bank,” Randy Younger, president and CEO of FNB Hugo, said in a prepared statement. “We know the team at High Plains well. We know they are committed to serving local communities and have a track record of creating jobs and investing in the communities where they do business. We are confident our customers will be well served by High Plains.”

FNB Hugo has full-service bank branches in the towns of Hugo and Limon, located in Lincoln County on the Eastern Plains, as well as one in Leadville that operates as First Mountain Bank.

“We are excited to have a larger footprint in Eastern Colorado and look forward to the opportunities to serve our agricultural roots,” said John Creighton, CEO of High Plains Bank. “Working in mountain communities is a new opportunity for us and we look forward to expanding into the regions of Colorado where we do business.”

Creighton said High Plains has “made a generational commitment to remain independent. We are grateful for the opportunity to merge The First National Bank of Hugo-Limon into our operations. We will be a stronger organization better prepared to provide the highest level of banking services in all of our communities.”

According to a High Plains news release, the merger “bucks the trend of bank consolidation. Many community banks have been swallowed up by corporate banks. What follows is all too familiar: Jobs in smaller communities are cut; lending to farmers and ranchers, as well as small businesses is severely curtailed; and decisions are no longer made locally. High Plains Bank’s approach is the opposite. This merger represents a deliberate reinvestment in the local economies of all High Plains Bank communities.”

The Hugo bank’s directors and staff will stay involved as well, Younger and Ryan Smithburg will join the High Plains Bank board of directors, after the merger is complete. In addition, several FNB Hugo bank shareholders plan to invest in High Plains Banking Group Inc.

High Plains Bank has made a commitment to retain all FNB Hugo staff members who want to continue their banking careers. Younger will retire from his role as bank president and CEO.

This acquisition increases High Plains Bank’s overall scale, according to the news release. “For small and medium-sized business clients in Longmont and the metro area, this merger provides a significant advantage: greater access to capital to help businesses launch and grow.” 

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