Federal regulators closed United Western Bank on Friday evening, ending the $2 billion thrift's long struggle to raise capital and survive.
First-Citizens Bank & Trust Co. of Raleigh, N.C., will assume United Western's deposits, valued at $1.65 billion last September, the Federal Deposit Insurance Corp. said in a statement.
United Western's eight branches will reopen Monday as branches of First-Citizens Bank & Trust.
The FDIC urged customers to keep using ATM or debit cards and to write checks as they normally would over the weekend. All outstanding checks will be processed.
Those with questions were directed to call 1-800-405-8028 begin_of_the_skype_highlighting 1-800-405-8028 end_of_the_skype_highlighting or visit www.fdic.gov/bank/individual /failed/unitedwestern.html.
"This is a prime example of a seasoned and time-tested resolution system at work," said Don Childears, president of the Colorado Bankers Association.
Childears said customers shouldn't experience any noticeable changes, and the state will gain a new bank eager to compete.
United Western is the state's largest bank failure since the collapse on April 10, 2009, of New Frontier Bank, a $1 billion bank in Greeley. The FDIC couldn't find a bank to take over New Frontier.
United Western, formerly known as Matrix Bancorp, shifted from a wholesale mortgage bank to a more diversified commercial lender in 2006.
But it continued to hold a large concentration in mortgage-backed securities, which dropped sharply in value during the credit crisis. Those losses were compounded when commercial borrowers began defaulting.
The FDIC on Friday also took over Bank of Asheville, based in Asheville, N.C., with $195.1 million in assets, and CommunitySouth Bank and Trust, based in Easley, S.C., with $440.6 million in assets.
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