LANSING, Mich., and
PHOENIX, April 16 /PRNewswire-FirstCall/ -- Capitol
Bancorp Limited (NYSE: CBC) announced today that it has entered
into a collective stock redemption transaction with three
Colorado affiliates, Fort Collins
Commerce Bank, Larimer Bank of
Commerce and Loveland Bank of
Commerce, to sell its 51 percent interest in each bank. At
year-end 2009, total assets were approximately $224 million for the three affiliates.
"This transaction will further advance our well-publicized
strategic initiatives to deleverage our consolidated balance sheet
and redistribute capital within our multi-state network,
particularly to our affiliates that have been adversely impacted by
challenging economic conditions," said Capitol Bancorp's Chairman
and CEO Joseph D. Reid.
This follows Capitol's announced sale of its fourth Colorado affiliate, Mountain View Bank of
Commerce, in December of 2009. The completion of these
transactions will constitute Capitol's exit from the Colorado market and divestiture of all
$274 million of its assets within the
State.
"We are pleased to have supported Fort Collins Commerce Bank
President and CEO Gerard Nalezny,
who also leads the talented Loveland
Bank of Commerce team, and Larimer
Bank of Commerce President and CEO Mark Kross to launch the banks' operations and
establish a successful presence in the Colorado market. This mutually
beneficial opportunity will permit the banks to acquire additional
local ownership and continue to build their current operations,"
added Reid.
The transaction, which is subject to regulatory approval, is
expected to be completed in 2010.
About Capitol Bancorp Limited
Capitol Bancorp Limited (NYSE: CBC) is a $5.1 billion national community bank 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.
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.
SOURCE Capitol Bancorp Limited