Monday, October 1, 2012

Mile High Bank to remain open

Mile High Banks Announces Agreement to Raise Up to $90 Million in Additional Capital

New Owners to Recapitalize Bank, Meet Regulatory Requirements and Resume Lending to Customers

LONGMONT, COLORADO – September 27, 2012 – Mile High Banks, today, announced an agreement under which it is to be simultaneously sold and recapitalized with up to $90 million in new capital, positioning the Bank to meet the capital requirements set by its banking regulators and to resume making loans to customers in Colorado.

Under the agreement, all of the Bank’s stock is to be purchased by Strategic Growth Bancorp Incorporated (“SGB”), a bank holding company with banking locations in Texas and New Mexico. The agreement calls for a purchase price of $5.5 million, subject to a court-ordered competitive bidding process, in addition to the infusion of up to $90 million in new capital into the Bank.

“This transaction is the most effective way to recapitalize and position the Bank to meet its regulatory requirements and have the capital it will need in order to grow and resume making loans to its community – all without financial assistance from the government or taxpayers,” said Dan Allen, president and chief executive officer of the Bank and Big Sandy Holding Company.  “For more than two years, the Bank has been hampered in its efforts to make new loans because of our low capital levels, but the recapitalization will position the Bank to resume lending to customers and to once again compete strongly for banking business in the Front Range and Eastern Plains communities in Colorado.”

The Bank’s current owner, Big Sandy Holding Company (“Holding Company”), will ask for court approval to sell the Bank’s common stock to SGB, with SGB simultaneously investing the additional capital in the Bank. This process will be conducted under the supervision of the U.S. Bankruptcy Court for the District of Colorado ("Court") following a voluntary Chapter 11 filing by the Holding Company. As part of the process, other qualified bidders will be given the opportunity to submit competing bids for the Bank stock being sold, and any qualified bidder would also be required to recapitalize the Bank to an appropriate level and demonstrate the ability to promptly receive the required regulatory approvals.

Mile High Banks will continue to operate as before, without interruption, as the Holding Company’s filing will not include the Bank. The Bank operates separately and independently from the Holding Company.

"Mile High Banks will continue to offer the same protections to its depositors as before, and customers will continue to have full access to their accounts throughout this recapitalization process," said Allen. “Our offices will remain open as usual. Our customers can rest assured that their deposits continue to be insured to FDIC limits.”

Keefe, Bruyette & Woods, Inc. served as financial advisor to the Bank, and Ernie Panasci with Jones & Keller P.C. served as legal counsel to the Bank and special regulatory counsel to the Holding Company. 

About Mile High Banks:

Mile High Banks is a Colorado chartered commercial bank whose principal office is located in Longmont, Colorado, and it has 13 banking locations located along the Front Range and Eastern Plains of Colorado including the branch in Limon.

1 comment:

  1. I am looking forward to a challenging year for them this 2013. Challenges could yeild fruitful opportunities in terms of diverse stock exchanges like the quarterly yield of open a uk bank account.