LANSING, Mich., and
PHOENIX, Oct. 8 /PRNewswire-FirstCall/ -- Capitol Bancorp
Limited (NYSE: CBC) announced today that it has entered into a
definitive sales agreement with investors for the sale and
subsequent recapitalization of 1st Commerce Bank.
Capitol's Chairman and CEO Joseph D.
Reid said, "This transaction addresses one of our key
strategic initiatives by further deleveraging our consolidated
balance sheet."
Jason A. Awad, a veteran
Nevada businessman with deep roots
in the greater Las Vegas
community, has executed a definitive agreement that will acquire
100% ownership of 1st Commerce Bank. As of June 30, 2010, 1st Commerce Bank had
approximately $45 million in total
assets, $30 million in total loans
and reported a loss of approximately $1.2
million through the first six months of 2010.
Reid added, "1st Commerce Bank, which was launched in late 2006,
was almost immediately impacted by the early stages of the national
recession and subsequent banking crisis, in its efforts to gain
traction in its local market. And approximately one year ago
an aborted divestiture transaction initiated in the summer of 2009
further impeded the bank's original growth initiatives. As
Capitol continues to address challenges within its affiliate
network, this transition serves as a strategic opportunity to
deleverage our consolidated balance sheet while enabling 1st
Commerce Bank to partner with a local, seasoned banking team
possessing access to additional capital resources."
The transaction is expected to be completed by year-end 2010 or
in early 2011.
About Capitol Bancorp Limited
Capitol Bancorp Limited (NYSE: CBC) is a $4.7 billion 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
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