LANSING, Mich. and PHOENIX, Aug. 18
/PRNewswire-FirstCall/ -- Capitol Bancorp Limited (NYSE: CBC) and
Grandpoint Capital, Inc. announced jointly 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 in excess of $11
million, simultaneous with a traditional
purchase-and-assumption transaction for the main office operations
of the Bank of Tucson (involving
total footings approximating $170
million). This transaction structure will enable
Capitol Bancorp to retain Bank of Tucson's $40
million branch office in Nogales, and the existing $20.1 million of tangible equity residing at the
entity as of June 30, 2010, while
positioning Grandpoint Capital, Inc. to commence its new
Arizona operations with a
consolidated $270 million,
Tucson-domiciled banking platform
that will conduct business under the Bank of Tucson banner.
Capitol Chairman and CEO Joseph D.
Reid said, "This sale will provide Capitol with access to
new capital that will be used to support our ongoing strategic
initiative to enhance balance sheet strength and assist those
affiliates currently facing challenges."
"In 1996, Bank of Tucson's
President and CEO Mike Hannley
partnered with Capitol to organize its first bank outside of
Michigan. He has played an
integral role in the growth and development of Capitol, serving as
both a corporate director and regional president overseeing the
Arizona market. Through
Mike's efforts, Bank of Tucson has
been a consistent top performer. As Mike moves forward with
Grandpoint Capital, Inc., I am confident that his customers will
continue to enjoy the stellar service and community support that
they have come to expect during the past 14 years."
This 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 $4.7 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.
About Grandpoint Capital, Inc.
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.
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
Copyright . 18 PR Newswire