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. The deal is expected to close in the first quarter. Elevations did not disclose the price it will pay.
If approved, the purchase would be the first credit union purchase of a community bank in Colorado, said Michael Bell, a lawyer at Howard & Howard in Royal Oak, Mich. Howard & Howard served as legal counsel to Elevations.
Acquiring Cache Bank would extend the reach of the $2.1 billion-asset Elevations in two counties in northern Colorado, Gerry Agnes, the credit union's president and CEO, said in a press release.
The $121 million-asset Cache Bank has three branches. Officials with the bank said in the release that they chose Elevations because it is “aligned with CBT’s culture to provide the best, personalized service for its customers, employees and community." 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. “We look forward to our two community-minded institutions coming together to better serve the expanding membership.”
Elevations plans to integrate Cache in the third quarter.
Elevations was founded in 1953 with 12 members and less than $100 in assets. It now serves more than 140,000 members.
The credit union's earnings for the first half of 2019 fell less than 1% from a year earlier, to roughly $8.1 million, based on its call reports. It was considered well capitalized on June 30, with a net worth ratio of 10.92%.