The FDIC swooped in and closed another bank in Colorado. United Western Bank had been struggling for some time. The financial institution finally had to close after trying to raise capital. United Western is the largest bank failure in Colorado since New Frontier Bank of Greeley closed almost 2 years ago. United Western had been rated a 1 star by the bank ratings system, Bauer Financial.
United Western’s trouble began when the mortgage market collapsed in 2008. To give you an idea how much trouble the bank was in; United Western sold securities backed by option adjustable-rate mortgages with unpaid principal of $47.3 million, it only received $378,000. In an attempt to raise additional capital the bank tried to to sell more stock, entertained a reverse-stock split and sell off other assets. All of these ideas failed and the bank was closed by the FDIC. First-Citizens Bank & Trust of Raleigh, N.C. will reopen all of the eight United Western Branches on Monday January 24th.
If you have an account, loan, or safe deposit box with United Western Bank you should be able to access everything on 1/24/2011.
For more information on your bank and its rating please visit: