Community Banks of Colorado, Greenwood Village, CO, was closed by the Board of Governors of the Federal Reserve System. The FDIC, appointed as receiver, sold the failed bank to Bank Midwest, N.A., Kansas City, Missouri.
Bank Midwest will assume all deposits and purchase all assets of failed Community Banks. All 40 branches of failed Community Banks will reopen on Saturday as branches of Bank Midwest and deposits will continue to be insured by the FDIC. Over the weekend, depositors of Community Banks of Colorado will have access to their money through checking, ATM and debit cards.
Community Banks history goes back nearly 100 years according to the Bank’s website.
We began Community Banks in 1989 with the purchase of the Rocky Ford National Bank. This bank, located in a community east of Pueblo, Colorado, had already enjoyed a wonderful reputation for nearly 100 years. Our intention, where ever we go, is to build on the best traditions that have built our communities.
Our exceptional growth in Colorado is a testimony that our strategy is well received. We currently operate over three dozen full service branches across the State, with more on the way. Because, our strategy is people and community centric, we believe we have unlimited growth potential.
In 1997 we extended our reach into Northern California.
Community Banks rapidly expanded during the real estate boom, growing assets from from $400 million in 2003 to almost $1.8 billion by 2008. Many of the loans made by Community Bank quickly defaulted as real estate values plummeted. In April 2009, Community Bank signed a Consent Order issued by regulators that cited the Bank for numerous financial and managerial deficiencies.
At June 30, 2011, Community Banks had total assets of $1.38 billion and total deposits of $1.33 billion. Bank Midwest agreed to purchase all of the failed Bank’s assets subject to a loss-share transaction with the FDIC that covers $714.2 million of the assets acquired. The loss-share transaction limits future losses to Bank Midwest on the asset pool acquired.
Bank Midwest previously acquired the failed Bank of Choice in July 2011.
The estimate loss for the failure of Community Banks is $224.9 million. Community Banks is the nation’s 84th banking failure and the 6th in Colorado.