One of Colorado's largest independent banks plans to buy a Denver community bank that is being sold as part of its owner's bankruptcy settlement.
Vectra Banking Corp., which has $580 million of assets, agreed this week to buy Professional Bank, a two-branch Denver institution with $50 million of assets. The bank did not disclose the proposed selling price. "Professional's branches are in prime locations in the Denver market," Gary Judd, president and CEO of Vectra said in a written statement.
Professional Bank is being sold as part of the liquidation of its sole owner's assets. Oren Benton is in both personal and corporate bankruptcy. However, the bank is not in bankruptcy.
Everett Covington, president of Professional Bank, said Mr. Benton had not been involved with the bank for two years. A creditors committee assigned to liquidate Mr. Benton's assets hired an investment banker to sell the bank.
"It's a bit of an oddball deal since you have a bankruptcy court involved," said Ray Nash, Vectra's chief financial officer.
Steve Didion, an analyst at Hoefer & Arnett in San Francisco, said Professional Bank's branches would complement Vectra's growing branch network. Nine-year-old Vectra, which has made 11 bank acquisitions, has 13 branches.