Bayfield’s Pine River Valley Bank has been sold to National Bank Holdings Corp. of Greenwood Village in a deal that values the local bank at $14 million.
The sale, which the banks described as a merger agreement, was announced Friday. The boards of directors of both companies unanimously approved the deal.
Pine River Valley Bank was established in 1977 in Bayfield. It also has branches in Durango at 1701 Main Ave., Creede and Lake City. The Creede and Lake City branches use the name Miners and Merchants Bank.
Pine River Valley Bank had $120 million in deposits as of Dec. 31.
“We’ll be able to offer our customers a lot more products and services,” Pine River Valley Bank President and Chief Executive Boyd Hodges said Monday.
The transaction is expected to be completed during the third quarter of 2015, subject to regulatory approvals and closing conditions, including the approval of Pine River Bank Corp. shareholders.
Pine River Valley Bank has 49 employees across the four offices.
Pine River Valley Bank reported a net income loss of $650,000 for the first nine months of 2014, according to the FDIC.
“We’re a small community bank, and it’s getting a little more difficult nowadays to comply with all the regulations as a smaller institution,” Hodges said.
National Bank Holdings Corp. has 97 banks in Colorado, Texas and the greater Kansas City area. In Colorado, it operates as Community Banks of Colorado.
“We are very pleased to announce our agreement to acquire Pine River Valley Bank,” Tim Laney, chief executive of National Bank Holdings, said in a news release. “This opportunity is consistent with our focus on strengthening our position in our existing markets and allows us to leverage our capital in a disciplined manner.”
cslothower@ durangoherald.com
