Mountain Valley Bank enters into merger with Platte Valley Financial Service Companies
March 24, 2014
Mountain Valley Bank announced Monday that it has entered into a definitive merger agreement with Platte Valley Financial Service Companies Inc., also known as Platte Valley Companies.
According to a news release, Platte Valley Companies will acquire the outstanding shares of Mountain Valley Bank and its parent holding company, Mountain Valley Bancshares Inc.
"It's very exciting, and I couldn't be more pleased," Mountain Valley Bank President and CEO Terry Jost said. "Our community will benefit from it greatly."
Besides its Steamboat Springs location, which opened in 2004, Mountain Valley Bank has three other branches in Northwest Colorado — in Hayden, Walden and Meeker.
Jost said the merger allows the bank to provide more services to the community, including additional mortgage, insurance and leasing options.
"We believe this arrangement accomplishes the goals we've set to meet the needs of our shareholders, employee associates and communities," Jost said in the news release. "This merger will also benefit each of our local communities as Platte Valley Companies has shown it is deeply committed to the success of the communities it serves."
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Mountain Valley Bank and Platte Valley Companies announced the signing of the definitive agreement to their employees Friday. Both companies are working toward a closing date within the second quarter of 2014.
After closing, Platte Valley Companies will have total banking assets of approximately $900 million with 16 locations serving 13 communities in Colorado, Nebraska and Wyoming, according to the release.
Jost said there will be no changes within the organization, and Mountain Valley Bank will continue to be a state-charter community bank.
"What we are doing is making a move to grow with the future and be strong and viable for many years to come," he said.
In 2004, Platte Valley Companies, based in Scottsbluff, Neb., joined with a group of Colorado bankers and investors to form Mountain Valley Bank. In 2007, Platte Valley Companies sold its controlling interest to the Colorado shareholders of Mountain Valley Bank but continued to hold a significant investment in Mountain Valley Bancshares Inc.
According to the release, the boards of directors of the companies regarded this merger as a reunion of two progressive companies because of their past working history.
"We are pleased that under this merger agreement many local Mountain Valley Bancshares Inc. shareholders and employees will continue to hold ownership in the combined company," Platte Valley Companies President and CEO Hod Kosman said in the release.
"Platte Valley Companies and Mountain Valley Bank are two organizations that share a vision of providing exceptional customer service while encouraging employee success," Kosman added. "Our common goal will be to foster growth and prosperity in the communities that we serve."
Mountain Valley Bank, according to Kosman, will maintain its Colorado banking charter and operate as a "sister bank" to Platte Valley Bank-Wyoming and Platte Valley Bank-Nebraska.
The merger agreement is subject to approval by the shareholders of Mountain Valley Bancshares, Inc. and bank regulators.