ST. GEORGE– The Village Bank, founded in 1996 and headquartered in St. George, and Cache Valley Bank, organized in 1975 and headquartered in Logan, Utah, entered into an agreement on May 24, 2012, in which Cache Valley Bank acquired the Sunset Office, the River Road Office and the Cotton Mill Office of The Village Bank. The three branches now operate under the Cache Valley Bank name with the existing branch leadership teams.
The Village Bank determined that the best way to meet the changing regulatory requirements was to reduce the size of the bank, while maintaining a significant presence in St. George. Cache Valley Bank was selected as a partner, vis-a-vis the purchase and sale transaction, because it shares the same vision of community banking built on the tradition of customer relationships and quality service.
“We believe this transaction is in the best interest of our shareholders, customers and the communities we serve,” said Douglas Bringhurst, The Village Bank’s President. “The Village Bank will continue to offer a full service menu and maintain the same values that have made the bank the community bank leader in our market.”
The Village Bank will remain a full service community bank operating from the main office location at 294 E. Tabernacle. Bringhurst said he pledges to continue to offer the same quality service that has been a trademark of the community bank leader in St. George.
Cache Valley Bank is a highly-rated bank that, according to an approved statement issued by the two banks, states it has been built on loyal employees that take pride in providing personal service to each of its customers. “We welcome the opportunity to work with the employees and to serve the customers that have come to us with this transaction,” said Gregg Miller, President of the Cache Valley Bank.
According to its website, The Village Bank “was severely affected with the recession. The bank’s capital was depleted to an unacceptable level under the FDIC (the Federal Deposit Insurance Corp.) written guidelines. The sale reduces the size and overhead of the bank, as well as strengthens the bank’s capital position. The combination makes The Village Bank a stronger bank.”
The Village Bank’s website also states that the ownership remains at approximately 350 individuals located for the most part in the St. George area. The Board of Directors and management remain with the bank, together with its employees who have been at The Village Bank on average nine of the 16 years it has been in operation.
Depositors and loan obligors of The Village Bank may visit The Village Bank website for details on the transfer and its impact. For the most part, deposit accounts will run with the branch from which they originated; if at any of the branches acquired by Cache Valley Bank, they will now be accounts of Cache Valley Bank. Some loans transfer with the sale transaction to Cache Valley Bank, others remain with The Village Bank; loan obligors are referred to specific communiqué with their lender as well as The Village Bank’s website for direction on any assignments.
The transaction increases Cache Valley Bank’s presence in Washington County, established when it prevailed in a purchase bid acquiring the former SunFirst Bank from the FDIC, after the Utah Department of Financial Institutions closed SunFirst on November 4, 2011, and appointed the FDIC its receiver.
Unlike the SunFirst transaction which arose from regulatory receivership and resulted in termination of employment for key officers and employees of SunFirst Bank, officers and employees of The Village Bank are expected to maintain continuing employment with one of the two banks, Village or Cache Valley, as may apply.
Also unlike the SunFirst receivership, this transaction was a negotiated transaction between the institutional parties, with the approval of the requisite financial regulatory agencies.
Copyright 2012 St. George News.