Bank Midwest owner buys back shares

The Colorado company that owns Bank Midwest in Kansas City has bought back one of its largest owner’s shares in the company.

National Bank Holdings Corp. said it repurchased more than 5 million of its shares held by an institutional shareholder. It paid $20 a share in a private transaction, placing the value of the deal at $100.3 million.

Chief financial officer Brian Lilly declined to name the investor, but he said the deal came at the investor’s initiative.

“They approached us and said they wanted to lighten their exposure to the financial services industry,” Lilly said.

The seller probably is Paulson & Co. Inc. in New York. Its ownership, consisting of A shares that trade publicly and B shares that do not, total the 5,015,000 shares National Bank Holding repurchased. The two classes of shares have equal economic interests in the company, but the B shares do not include voting rights.

Paulson could not be reached for comment.

The repurchase, amounting to 9.8 percent of National Bank Holding’s total shares, worked into the company’s plans, Lilly said.

First, he said, the price was favorable. Shares have traded higher than $20 most of the time since July. Shares closed Wednesday at $20.48, up 21 cents.

National Bank Holding also can use the shares it repurchased in deals to buy other banks, just as it would have been able to use the cash it paid to the investor.

The company was formed by pooling money from investors to build a banking group. It acquired Bank Midwest from Dickinson Financial Corp. in Kansas City and the failed Hillcrest Bank in Kansas City from the Federal Deposit Insurance Corp.

It has combined its banks, including those in Colorado, under one national bank charter formally called NBH Bank, which uses different names in different markets.