Capitol Bancorp Announces the Planned Sale of California-Based Napa Community Bank to Rabobank
February 16 2010 - 8:00PM
PR Newswire (US)
Rabobank to continue model of service and community involvement in
Napa Valley LANSING, Mich. and ROSEVILLE, Calif., Feb. 16
/PRNewswire/ -- Capitol Bancorp Limited (NYSE:CBC) and Rabobank,
N.A. today jointly announced the planned sale of Capitol's
California-based affiliate, Napa Community Bank, to Rabobank, a
community bank with more than 100 California locations, for an
initial cash consideration approximating $25 million and other
contingent considerations. Part of global financial services leader
Rabobank Group, Rabobank, N.A. is a community-oriented bank with
$10 billion in assets, providing full retail and commercial banking
services primarily in non-major metropolitan and agricultural
markets across a 700-mile expanse of California. "We look forward
to welcoming Napa Community Bank customers and employees to
Rabobank," said Ronald Blok, CEO of Rabobank, N.A. "The Rabobank
and Napa Community Bank organizations have much in common, most
importantly a strong commitment to community-oriented banking,
personalized service and local investment." The purchase is a step
forward in Rabobank, N.A.'s growth strategy to expand its branch
presence into key agricultural areas such as the Napa Valley wine
country, where the Rabobank Group as a whole already has a lending
portfolio of more than $500 million, primarily to wineries and
others in the food and agribusiness industry. Over the last 15
months, Rabobank has opened 12 new branches in California, bringing
the total to 92. The bank also has 15 financial service centers,
including one in Santa Rosa. "By combining our two banks," said
Blok, "we will be able to offer all our customers increased
convenience with a more extensive network of branches and ATMs, and
also provide our full suite of banking products and services to a
broader range of clients in the Napa Valley. We'll do this while
continuing to meet the high standards for service excellence and
community engagement that have been the hallmark of Napa Community
Bank's success." Rabobank, N.A. is backed by the financial strength
and stability of its parent company, Rabobank Group, which is rated
as one of the safest banks in the world. Rabobank Group and
Rabobank, N.A. are both well-capitalized and meet the needs of
customers without government assistance. Rabobank Group and
Rabobank, N.A. are not participating in the U.S. government's
Troubled Asset Relief Program nor any financial assistance programs
operated by other governments. "Under the leadership of President
and CEO Dennis Pedisich, Napa Community Bank has consistently
delivered solid performance and great customer service. We are
pleased to partner Napa Community Bank with an organization like
Rabobank, which will continue the bank's tradition of high
standards for performance and service as well as its commitment to
serving the Napa community," commented Capitol's Chairman and CEO
Joseph D. Reid. Rabobank expects to retain all Napa Community Bank
staff, including all senior management, commercial and branch
employees. Dennis Pedisich will become the Napa Valley Regional
President for Rabobank, N.A., managing the local business for the
bank. "The entire staff is excited about this partnership with
Rabobank," said Dennis Pedisich, "as we share the same core
community banking values and approach to doing business. We've
asked our Board of Directors to stay on as advisory board members,
further demonstrating both Rabobank's and Napa Community Bank's
continuing commitment to our market and our customers." Reid added,
"This sale will serve to strengthen Capitol's core capital ratios
and support our objectives to redeploy capital to those affiliates
currently facing challenges." The transaction is expected to be
completed in mid-2010, subject to shareholder and regulatory
approval. About Capitol Bancorp Limited Capitol Bancorp Limited
(NYSE:CBC) is a $5.2 billion national community banking company
with a network of separately chartered banks in 17 states. Founded
in 1988, Capitol Bancorp Limited has executive offices in Lansing,
Michigan, and Phoenix, Arizona. About Napa Community Bank Napa
Community Bank, founded in 2002, is a $163 million, full-service
community bank located in the city of Napa, in the heart of Napa
County. The bank offers a full range of financial services and
their board of directors is composed of local community and civic
leaders from the Napa Valley. Napa Community Bank has been
profitable for 7 consecutive years. This success is due to the
commitment of their employees and directors to serve their clients
and their community. Napa Community Bank is not "just a bank" to
their clients, they are part of their community. In both 2008 and
2009, the bank was named the best bank (Best of Napa and Sonoma
Valleys) and the Best Place to do Business in Napa County 2009.
Rabobank: Community Banking From a Leader in Safety and Soundness A
century-old cooperative bank with a strong commitment to community
banking and long heritage in agricultural finance, Rabobank Group
brings tremendous resources, competitive pricing and financial
expertise to its client relationships, backed by over $850 billion
in assets. The bank's international businesses are locally managed,
so that customers enjoy the advantages of Rabobank Group's
financial strength and safety, as well as the responsiveness of a
local community bank and personal access to trusted, experienced
bankers who are knowledgeable about the home market. Rabobank, N.A.
follows this localized strategy in California, approaching the
state as several individual regions based on geography and market
characteristics rather than as a single homogenous market. With
this regional strategy, Rabobank, N.A. is able to fulfill its
mission of being a true community bank in each of its different
markets: highly responsive to the needs of local customers,
tailored in its community outreach, and agile with regard to local
business and marketing initiatives. Rabobank, N.A. is part of the
Rabobank Group, is a community-oriented bank offering full retail
and commercial banking services to local businesses, individuals,
organizations, agricultural customers and communities. The bank has
92 locations extending 700 miles from the California border with
Mexico up through the Central Valley to Sacramento and throughout
the Central Coast. Rabobank, N.A. is FDIC-insured. Visit
http://www.rabobankamerica.com/. Rabobank Group is a 111-year old
financial services leader providing retail and institutional
banking and agricultural finance solutions in key markets around
the world. From its century-old roots as a finance cooperative
founded by Dutch farmers, Rabobank has grown into one of the
largest banks in the world with more than U.S. $850 billion in
assets and operations in over 35 countries. Rabobank is AAA rated
and ranks among the world's safest banks by Global Finance
magazine. Forward Looking Statement Certain statements in this
announcement contain forward-looking statements that are based on
management's expectations, estimates, projections and assumptions.
Words such as "expects," "anticipates," "plans," "believes,"
"scheduled," "estimates" and variations of these words and similar
expressions are intended to identify forward-looking statements.
Forward-looking statements are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995,
as amended. These statements are not guarantees of future
performance and involve certain risks and uncertainties, which are
difficult to predict. Therefore, actual future results and trends
may differ materially from what is forecast in forward-looking
statements due to a variety of factors. All forward-looking
statements speak only as of the date of this press release. All
subsequent written and oral forward-looking statements attributable
to the company or any person acting on the Corporation's behalf are
qualified by the cautionary statements in this press release. The
Corporation does not undertake any obligation to update or publicly
release any revisions to forward-looking statements to reflect
events, circumstances or changes in expectations after the date of
this press release. DATASOURCE: Rabobank CONTACT: Analyst Contact:
Michael M. Moran, Chief of Capital Markets, +1-877-884-5662; Media
Contact: Stephanie Swan, Director of Shareholder Services,
+1-517-487-6555; Rabobank Media Contact: Sean Dowdall, Executive
Director of Marketing , +1-916-865-8301, , or Rabobank European
Media Contact: Roelina Bolding, Press Officer, 0031 6 22607187, Web
Site: http://www.rabobank.com/
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