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Community Banks sold to equity firm

by Gretchen Sporleder Orr
WALSENBURG- Community Banks of Colorado announced on Tuesday they have reached an agreement for NBH Holdings Corp. of Boston, a private equity firm, to acquire 16 of 33 Community Banks of Colorado banking centers, as well as the Community Banks of Colorado name. The remaining branches of Community Banks of Colorado will be retained by Community Bankshares, Inc. and will be renamed. The Walsenburg branch was not included in the sale. The new name is not yet known
NBH will continue to operate the 16 banking centers it is acquiring under the Community Banks of Colorado name. When the transaction is completed, the current Community Banks of Colorado associates working in the 16 banking centers are expected to continue with their jobs.
NBH Holdings Corp. is a bank holding company created to build a leading community bank franchise delivering high quality client service and strong shareholder results. NBH raised in excess of $1.0 billion through the sale of common stock in a private placement in late 2009, making it one of the best-capitalized holding companies in the U.S. In 2010 NBH acquired two banks in the Kansas City, Mo. market: Bank Midwest and Hillcrest Bank. NBH recently added Bank of Choice in Greeley, CO. to the company’s current community banking assets.
Community Banks has been troubled for some time. According to BauerFinancial Inc, in September of 2010, the banks were downgraded from a two star rating (problematic) to zero, their lowest rating.