The board of directors of the First National Bank of Hays has approved a definitive agreement for sale of the bank to Colorado National Bank.

The announcement was made by Alan States, President of First National Bank of Hays, who described current challenges faced by community banks, as well as his optimism about the future of the Hays-Plainville bank.

“We are very proud of the role that First National Bank and its employees have played in our community. We have served our friends and customers for over 108 years. However, small community banks such as ours, are increasingly constrained by additional regulations, the need for greater capitalization and a cost structure that can’t be maintained by stand-alone banks with only several branches. These conditions severely limit our growth and limit our ability to make loans to small businesses and consumers,” States said in a press release.

States continued, saying that it was in the best interest of their customers to be acquired by a broader based organization, but not just any group.

States also feels that Colorado National Bank has the experience and ability necessary to handle and build a network of community banks in western Kansas, Colorado, and other adjacent states.

“As I’ve gotten to know these folks, I’ve been very impressed by their western roots. Their commitment to small community banks, and their understanding of rural and agricultural economies,” said States.

After final regulatory approval, First National Bank will be known as Kansas National Bank of Hays.