LONGMONT - Ohio-based Liberty Capital, Inc. has entered into an agreement to sell two of its Liberty Savings Bank branches in Colorado, one of which is in Longmont.

Yuma-based Colorado Community Bank plans to purchase the Longmont branch at 351 Coffman St. and another Liberty Bank branch in Northglenn. Liberty is maintaining its one other branch in the Boulder Valley in Superior, and consolidating two of its branches elsewhere in Colorado.

Colorado Community will assume all of the deposit liabilities and buy the related non-real estate fixed assets of the branches it will acquire. Liberty will retain ownership of the multi-tenant facility housing the Longmont branch and will lease the banking office to Colorado Community. In addition, Colorado Community will acquire a minimal amount of performing small business and consumer loans associated with the branches.

Colorado Community anticipates retaining all current Liberty Savings employees in both locations.

Pursuant to the purchase agreement, Colorado Community will pay a premium of 2.5 percent for all of the Longmont branch's retail deposits and 3.3 percent for all of the Northglenn branch's retail deposits, which represents a total consideration of approximately $1.9 million to be paid in the stock of parent company Washington Investment Co. Colorado Community will also purchase fixed assets at a price equal to net book value as of the closing date.

The board of directors of both companies approved the transaction. No shareholder approvals are required. The transaction is subject to customary conditions, including regulatory approvals and is expected to close in March of 2010.

"We are excited about adding these two branches in Denver's northern suburbs, where we already have the greatest concentration of offices in our franchise, and taking on minimal credit risk in the process," Colorado Community Chairman and Chief Executive Officer Jerry Bryant said in a press release.

Jim Powell, chairman and chief executive officer of Liberty Capital, Inc. said the sale and consolidations should improve profitability in the region. "Liberty will continue to explore all avenues to rationalize our branch network and shore up our balance sheet," he said.