Grandpoint Capital, Inc., Announces Plans to Acquire Tucson, Arizona Banks from Capitol Bancorp Limited
August 17 2010 - 8:15PM
Business Wire
Grandpoint Capital, Inc., and Capitol Bancorp Limited (NYSE:
CBC) jointly announced today the planned sale of Capitol's Tucson
operations involving Bank of Tucson and Southern Arizona Community
Bank to Grandpoint Capital, Inc.
The transaction will be structured as a whole-bank purchase of
the single-office, $99.4 million Southern Arizona Community Bank,
which is expected to generate aggregate cash proceeds for Capitol
in excess of $11 million, simultaneous with a traditional
purchase-and-assumption transaction for the main office operations
of the Bank of Tucson. As part of the transaction, Grandpoint
Capital will purchase some Bank of Tucson loans. The consolidated
operations, with total assets of approximately $270 million, will
conduct business under the Bank of Tucson name.
The transaction, which is subject to regulatory approval, is
expected to be completed in 2010. At completion, Grandpoint Capital
will have an ownership interest in the bank of approximately 80
percent with the balance held by a group of local Arizona
investors.
“Grandpoint Capital's strategy is to build strong banks around
strong management in markets where we can make a difference,” said
Don M. Griffith, chairman and chief executive officer of Grandpoint
Capital. “This acquisition is an opportunity to build on a well
established banking platform in a market we believe has tremendous
long-term value. We'll do that by combining our capital with the
outstanding talent and experience of the local management team, led
by Bank of Tucson President and CEO Mike Hannley, who will serve in
the same capacity for the new, combined operation.”
Hannley, who partnered with Capitol Bancorp to launch Bank of
Tucson in 1996, is a 38-year banking veteran. Southern Arizona
Community Bank President and CEO John P. Lewis will serve as vice
chair of the consolidated organization. Lewis has been in banking
since 1966 and was recruited by Capitol Bancorp in 1998 to start
Southern Arizona Community Bank. He was appointed last year to
serve on the FDIC's 14-member Advisory Committee on Community
Banking.
Griffith, who served on the board of directors of the former
Tucson-based Arizona Bank for roughly 10 years in the 1990s, is
well acquainted with the Arizona market and the opportunities it
presents. Arizona Bank was the largest independent bank in the
state before its sale to Compass Bank in 1998. Among the prominent
local Arizona investors who will participate in the pending
acquisition are two individuals formerly associated with Arizona
Bank, David T. C. Wright, former president and CEO of Arizona Bank,
who will serve as the chair of the executive committee, and Jim
Click, former chairman of the board of Arizona Bank, who will
become chairman of the board of the new, combined bank. Click and
Robert H. Tuttle, former U.S. Ambassador to the Court of St.
James's, were majority shareholders of Arizona Bank and are
co-owners of Tucson-based Jim Click Automotive Team. Tuttle is an
investor in Grandpoint Capital, Inc. Both Hannley and Lewis have
previously worked with Wright.
“These are very accomplished and distinguished business leaders,
who know banking and the southern Arizona market well,” said
Griffith. “We are pleased to have their support and participation
in this acquisition.”
Grandpoint Capital launched Grandpoint Bank in California in
June 2010, through the acquisition of Santa Ana Business Bank in
Santa Ana, Calif., with a total capital investment of $75 million.
On July 14, 2010, the bank holding company announced a definitive
agreement to acquire First Commerce Bank. The two First Commerce
offices, in Encino and Brentwood, Calif., will become part of
Grandpoint Bank when the transaction closes, which is expected by
year-end 2010. Grandpoint Bank also has plans to open a future
office later this year in the South Bay area of Los Angeles, a
region well known to Griffith and Grandpoint Capital's Chief
Operating Officer Deborah A. Marsten, who have both managed banks
headquartered there over the past 15 years.
Grandpoint Capital, Inc., is a bank holding company
headquartered at 333 South Grand Avenue, Suite 4250, Los Angeles,
Calif. Grandpoint Bank has offices in downtown Los Angeles, at 355
South Grand Avenue, Suite 2400, and in Santa Ana, Calif., at 1666
North Main Street. The bank serves small and mid-sized businesses,
professionals and entrepreneurs, and high-net-worth individuals
with an integrated product set of private client services, business
banking and treasury management capabilities. It also provides
correspondent services to financial institutions. At June 30, 2010,
Grandpoint Bank had total assets of $95 million.
Capitol Bancorp Limited (NYSE: CBC) is a $5.1 billion national
community banking company with a network of separately chartered
banks in 15 states. Founded in 1988, Capitol Bancorp Limited has
executive offices in Lansing, Michigan, and Phoenix, Arizona.
Forward Looking Statements
Certain statements in this press release 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 either Grandpoint Capital or First
Commerce Bancorp or any person acting on their behalf are qualified
by the cautionary statements in this press release. Grandpoint
Capital and First Commerce Bancorp do 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.
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