Capitol Bancorp Announces the Planned Divestiture of Its Interest in Texas-based Bank of Las Colinas
LANSING, Mich. and PHOENIX, Aug. 8, 2011 /PRNewswire/ -- Capitol Bancorp Limited (OTCQB: CBCR) announced today that it has entered into an agreement pursuant to which all outstanding shares of Bank of Las Colinas, including the 51 percent interest held by Capitol, will be acquired by Veritex Community Bank.
Capitol's Chairman and CEO Joseph D. Reid said, "This transaction, along with several other pending sales, will generate equity capital that will be reapportioned among our affiliate banks in an effort to improve their capital ratios."
"Over the last three years, President Gerold Hooker and the Bank of Las Colinas team have worked diligently to establish a sound banking operation in the Irving market. We wish them future success as they continue to serve the financial needs of their community," commented Reid.
The transaction, which is subject to shareholder and regulatory approvals, is expected to be completed in 2011.
About Capitol Bancorp Limited
Capitol Bancorp Limited is a national community banking company, with a network of separately chartered banks with operations in 13 states. Founded in 1988, the Corporation 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.
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SOURCE Capitol Bancorp Limited