“Hassle Free, Worry Free, Services – because you have better things to do with your time”. 
Deposit Products
Loan Products
Other Services
Locations & Hours
Community Links
About Us
Contact Us
Merger FAQ

Frequently Asked Questions (FAQs)

Regarding the merger of...
Colorado Mountain Bank - Paonia State Bank - First State Bank of Hotchkiss

1) Why are the banks merging?
The three banks are affiliate banks or “sister banks” and have common ownership. Many systems and operations are duplicated as a result of operating as three separate banks. A significant savings can be realized by combining the banks under one charter. Also the banks will have more capacity, financial strength and capital as a combined entity.

2) Who owns the banks? Is this a change in ownership?
The three banks are commonly owned by Custer Bancorp the parent “holding company” headquartered in Denver, Colorado. The bank headquarters will be in Hotchkiss, Colorado, the current headquarters for First State Bank of Hotchkiss. The ownership of the banks will not change as a result of this combination.

3) When will the merger occur?
The first phase of the merger will occur on June 29, 2010 when, legally, the three banks will combine to become known as First State Bank of Colorado. The operations of the three banks will be combined later in the fall to provide for a smooth and transparent transition.

4) Will there be a name change?
The signs and names of each location will not change other than they will be identified as a branch or division of First State Bank of Colorado.

5) Will I have to complete any paperwork?
You won't need to complete any paperwork as a result of the merger.

6) Can I make deposits to my account at any branch?
Immediately, you will not be able to make deposits into your account at another of the banks. However, in the near future, this is a convenience we will make available to you, and will notify you in advance.

7) Can I continue to use my debit card for ATM withdrawals and purchases?
You can continue to use your debit card for all purchases and ATM withdrawals.

8) Will I have to order new checks or change my account number?
You will not have to change your account number or order new checks.

9) Can I still use online services and the same website?
You can continue to use the bank website for online transactions and bill pay. The websites of the three banks will be combined later in the fall.

10) Will there be a change in banking hours, staffing or management?
There will be no change in banking hours or staffing changes out of the ordinary. The present Branch Presidents will remain in their current positions at all locations.

11) Are personal and business accounts at the bank still federally insured?
Yes. The Federal Deposit Insurance Corporation (FDIC) continues to insure and guarantee the safety of all funds up to $250,000 per account, per owner, at all qualified banking institutions, including First State Bank of Colorado.

12) What happens to my insurance coverage if I have deposits at two insured banks that merge?
When two or more insured banks merge, deposits from the assumed bank are separately insured from deposits at the assuming bank for at least six months after the merger. This grace period gives a depositor the opportunity to restructure his or her accounts, if necessary.

CDs from the assumed bank are separately insured until the earliest maturity date after the end of the six-month grace period. CDs that mature during the six-month period and are renewed for the same term and in the same dollar amount (either with or without accrued interest) continue to be separately insured until the first maturity date after the six-month period. If a CD matures during the six-month grace period and is renewed on any other basis, it would be separately insured only until the end of the six-month grace period.

13) Where will I send my loan payments? Will there be a change in who the payments are made out to?
Loan payments should be sent to the same address until further notice. Checks can be made payable to either the “original bank name” or First State Bank of Colorado. We recommend including your remittance or coupon and the loan number on the check when submitting payments.


Online Banking Login

Deposit Products
Checking Products
Savings Products
Time Deposit Products