The Colorado State Banking Board today denied the sale of a Colorado community bank to one of the state’s largest credit unions. The board found that the deal—in which Boulder, Colorado-based Elevations Credit Union would purchase the assets of Cache Bank and Trust, headquartered in Greeley—did not meet the requirements of state law.
In a letter to the state regulator earlier this week, the Colorado Bankers Association cited a state statute regarding the sale of assets between state-chartered banks, which essentially establishes “that a bank may only sell the bulk of its assets to another bank.”
CBA CEO Don Childears welcomed the board’s decision, emphasizing the need for a level playing field between taxpaying banks and tax-exempt credit unions. “We welcome the (sale) transaction between Elevations and Cache,” he said. “Elevations simply needs to convert from a tax-subsidized credit union to a taxpaying bank.”
