CU-bank purchase trend hits the Rocky Mountain State
The trend of credit unions buying banks has reached Colorado.
Elevations Credit Union in Boulder, Colo., has agreed to buy the assets of Cache Bank & Trust in Greeley, Colo. If approved, the purchase would be the first credit union acquisition of a community bank in the Rocky Mountain State, according to Michael Bell, an attorney with the law firm of Howard & Howard in Royal Oak, Mich. Howard & Howard served as legal counsel to Elevations.
The deal will expand the reach of the $2.1 billion-asset Elevations in two counties in northern Colorado, Gerry Agnes, president and CEO of the credit union, said on Tuesday in a press release.
The $121 million-asset Cache Bank has three branches. Officials with the bank said they chose Elevations because it is “aligned with CBT’s culture to provide the best, personalized service for its customers, employees and community,” according to the press release. Stinson served as legal counsel to the bank.
“We are fulfilling Elevations’ long-term vision of serving northern Colorado and this will allow us to expand our commercial lending, business banking, consumer banking and mortgage capabilities even further in both Larimer and Weld counties,” Agnes said in the press release. “We look forward to our two community-minded institutions coming together to better serve the expanding membership.”
The deal is expected to be finalized in the first quarter of 2020, and full integration of operations should happen in the third quarter of next year. A purchase price was not disclosed.
Elevations Credit Union was founded in 1953 as U. of C. Federal Credit Union in Boulder, with 12 members and less than $100 in assets. Today, it serves more than 140,000 members.
In its most recent call report, Elevations earned roughly $8.1 million for the first six months of 2019, down less than 1% from the same period a year earlier. As of June 30, it was considered well capitalized with a net worth ratio of 10.92%.