LANSING, Mich. and PHOENIX, Jan. 25,
2011 /PRNewswire/ -- Capitol Bancorp Limited ("Capitol")
announced today that it has completed the sale of the main office
of Bank of Tucson to Grandpoint
Capital, Inc., and it has also entered into a stock purchase
agreement with Bend, Oregon-based
High Desert Bank in which Capitol will sell its majority interest
in the bank.
Capitol will retain Bank of Tucson's Nogales branch office with total assets of
approximately $40 million and
approximately $15.5 million of
tangible equity as of September 30,
2010, while also recording a modest deposit premium
associated with the sale. The Nogales branch office is now
part of Capitol's Phoenix-based
affiliate, Sunrise Bank of Arizona, expanding the bank's Arizona presence to nine offices.
While the Bank of Tucson
transaction represents the 14th sale consummated by Capitol during
the past 18 months, the announced divestiture of High Desert Bank
positions the institution as one of five additional affiliates
currently awaiting requisite approvals and contingencies before
consummation.
Capitol's Chairman and CEO Joseph D.
Reid said, "We are pleased with the continued progress of
our strategic divestitures initiative that continues to generate
equity capital which is being redirected to Capitol's network of
affiliate banks."
"Bank of Tucson's President and
CEO Mike Hannley has made
significant contributions within the Capitol organization and has
been instrumental in operating a first-rate financial institution
for the last 14 years. We wish Mike and his team continued
success as they advance their exceptional banking services in the
Tucson community."
Reid added, "High Desert Bank is a developing institution with
strong community ties. The bank has established a reliable
banking platform to continue serving the Bend community under the leadership of
Larry Snyder."
At September 30, 2010, Bank of
Tucson's main office had total
assets of approximately $175 million.
Capitol divested its other Tucson operation, Southern Arizona Community
Bank, to Grandpoint Capital, Inc., in December of 2010.
At September 30, 2010, High Desert
Bank had assets of approximately $37
million. The transaction is expected to be completed
in 2011.
About Capitol Bancorp Limited
Capitol Bancorp Limited is a national community banking company
with a network of bank operations in 14 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.
www.capitolbancorp.com
SOURCE Capitol Bancorp Limited