Platte Valley Financial Services in Scottsbluff, Neb., is buying a bank it played a role in forming.
The $742 million-asset multi-bank holding company said Monday that it had agreed to buy the $157 million-asset Mountain Valley Bancshares in Hayden, Colo. Specific financial terms of the agreement were not disclosed.
Platte Valley partnered with a group of Colorado bankers and investors to form Mountain Valley in 2004. Platte Valley said it sold its controlling interest in 2007, but retained a "significant investment" in the bank.
Mountain Valley's shareholders are set to receive at least some stock in Platte Valley in a deal that was characterized as a "reunion of two progressive companies."
"We are pleased that under this merger agreement many local Mountain Valley... shareholders and employees will continue to hold ownership in the combined company," Hod Kosman, Platte Valley's president and chief executive, said in the release. Platte Valley and Mountain Valley "are two organizations that share a vision of providing exceptional customer service while encouraging employee success. Our common goal will be to foster growth and prosperity in the communities that we serve."
Platte Valley said it plans to keep Mountain Valleys Colorado charter and operate it as a sister bank to its Platte Valley Bank units in Wyoming and Nebraska. The deal is expected to close in the second quarter.
St. Charles Capital in Denver represented Mountain Valley in the deal.