Capitol Bancorp Reports Year-End 2011 Results

LANSING, Mich., March 29, 2012 /PRNewswire/ -- A net loss of $6.5 million, or ($0.16) per share, was reported for the fourth quarter of 2011, compared to a net loss of nearly $84.2 million, or ($3.95) per share, for the corresponding period in 2010 and a net loss of $22.8 million, or ($0.55) per share in the third quarter of 2011.  The following key factors contributed to these significantly improved operating results.

  • After removing the impact of bank divestitures:
    • The provision for loan losses decreased nearly 78 percent from the same quarter of 2010.
    • Employee compensation and benefits expense decreased 10 percent from the same period in 2010.
    • Total operating expenses declined 68 percent year-over-year.
    • On a linked-quarter basis, comparable positive trends were reflected in the provision for loan losses (down 76 percent), employee compensation and benefits expense (down 7 percent) and total operating expenses (down 4.5 percent).

Consolidated assets declined about 38 percent to $2.2 billion at December 31, 2011 from the $3.5 billion reported at December 31, 2010, and nearly 11 percent on a linked-quarter basis from the approximate $2.5 billion reported for the third quarter of 2011, as a result of bank divestitures and ongoing balance sheet deleveraging strategies.  Eliminating the effect of bank divestitures, total portfolio loans decreased 20 percent to nearly $1.7 billion at December 31, 2011, from $2.1 billion reported for year-end 2010.  Despite this decline, a continued focus on higher levels of corporate-wide liquidity and early signs of economic improvement in certain markets has enabled the Corporation to prudently manage its earning-asset profile and stabilize its net interest margin at approximately 2.9 percent over recent quarters.  Deposits reflected a 15 percent decline to $2.0 billion from $2.4 billion reported at December 31, 2010; however, the Corporation's consistent focus on core funding sources resulted in an ongoing favorable improvement in deposit mix as noninterest-bearing deposits were in excess of 17 percent of total deposits at December 31, 2011, compared to less than 16 percent at year-end 2010.

Capitol's Chairman and CEO Joseph D. Reid said, "We continue to focus on managing risk and improving liquidity, while enhancing balance sheet strength.  We are actively pursuing all strategic alternatives and prospective sources of support as we continue to address challenges throughout the markets in which we operate.  Over the last few years, more than twenty affiliates have been divested and several have been consolidated regionally as part of our efforts to reallocate equity capital across our affiliate bank network.  Current levels of nonperforming assets continue to require significant capital and managerial resources; however, we are encouraged by positive trends in asset quality and operating performance within the various regions in which Capitol operates."

"Another quarter of active management and resolution-oriented focus resulted in net loan charge-offs of approximately $13.9 million, a decrease from $25.3 million for the corresponding period of 2010 and $26.2 million linked-quarter," added Mr. Reid.  "In addition, from the first quarter of 2011 through year-end, (excluding the effect of affiliate divestitures), total nonperforming loans have declined 19 percent and total nonperforming assets have fallen 15 percent.  This continued decline is encouraging and we perceive these trendlines as an indication of continued improving fundamentals."

Quarterly Performance

In the fourth quarter of 2011, consolidated net operating revenues from continuing operations increased to nearly $25.8 million from $23.8 million for the corresponding period of 2010.  The net interest margin decreased slightly to 2.90 percent for the three months ended December 31, 2011 from 2.94 percent for the comparable period of 2010 and 2.97 percent on a linked-quarter basis.  Cash and cash equivalents were $387 million, or nearly 18 percent of consolidated total assets at December 31, 2011 (and up materially on a percentage basis from the approximate 12 percent level recorded at year-end 2010, when eliminating the impact of bank divestitures).  The Corporation continues to focus on liquidity to manage its balance sheet in the face of continued economic and other constraints, despite the negative short-term effect on net interest income and other traditional noninterest fee revenue.  Other noninterest income totaled nearly $10.4 million, compared to $6.6 million in the comparable 2010 period, fueled in large part by litigation recoveries on distressed assets.  Core noninterest revenue components, which consist primarily of trust and mortgage fees and SBA premiums, declined modestly, partly attributable to Capitol's divestiture activities, while service charges on deposit accounts remained relatively static in the quarter.

The Corporation continues to reduce operating expenses.  Total noninterest expenses decreased dramatically in the recent quarter to $29.1 million from $91.9 million for the three months ended December 31, 2010, after eliminating the impact of bank divestitures.  The fourth quarter of 2010 reflected a $59.7 million goodwill impairment charge (excluding discontinued operations), contributing to the significant decline on a comparable basis.  Costs associated with foreclosed properties and other real estate owned decreased to $5.6 million in the fourth quarter of 2011, as the Corporation continues to work through problem asset resolution, compared to nearly $7.0 million in the previous quarter, although these costs increased from the $4.6 million reported for the fourth quarter of 2010.  FDIC insurance premiums and other regulatory fees decreased from $3.4 million in 2010's fourth quarter to $1.9 million in the most recent three-month period.  Combined, these two expense areas totaled nearly $7.6 million in the most recent quarter, a decrease from the combined approximate $8.1 million level during the corresponding period of 2010.  Further, on a core, controllable-expense basis, year-over-year compensation costs declined more than 10 percent, from nearly $12.9 million in the 2010 period to approximately $11.6 million in 2011's fourth quarter.  

The fourth quarter 2011 provision for loan losses decreased dramatically to approximately $4.3 million from $19.2 million for the corresponding period of 2010, and the approximate $17.5 million on a linked-quarter basis, after the impact of bank divestitures.  During the fourth quarter of 2011, net loan charge-offs totaled $13.9 million, a significant decrease from 2010's corresponding level of approximately $25.3 million and the linked-quarter level of $26.2 million, as the Corporation continues to aggressively manage its exposure to nonperforming loans.

Continued legacy costs associated with problem asset resolution system-wide were major reasons for the core operating net loss in the three-month period.  However, Capitol is encouraged that aggregate levels of nonperforming loans reflected notable declines from the third quarter when compared to year-end as follows: Arizona (down 13.2 percent), Michigan (down 4.8 percent) and Nevada (down 12.6 percent).  

Results for 2011

Net operating revenues increased for 2011 to nearly $109.0 million, compared to $94.2 million for the corresponding period of 2010, an increase fueled almost exclusively by the nearly $17 million gain on an exchange of trust preferred securities recorded in the first quarter of 2011.  Excluding this significant component, and other more modest gain-on-sale activities in the periods, core operating revenue consisting of net interest income and traditional fee revenues was generally consistent with the year-ago period, but reflective of a shrinking balance sheet, after removing the impact of the divestiture activities.  While continued divestiture activity and significant deleveraging of Capitol's operations, coupled with measures designed to enhance liquidity levels, has contributed to the reduction in core operating revenues, ongoing system-wide management of asset mix and funding sources has helped mitigate the adverse impact of these declines.  The provision for loan losses of approximately $41.4 million for the twelve months of 2011 was a significant decrease from the nearly $148.3 million reported for the comparable 2010 period.  Including the modest first quarter profit which was driven by the gain on the exchange of trust preferred securities, the Corporation reported a net loss of $45.4 million for the year ended December 31, 2011, a notable improvement from the $225.2 million loss reported for 2010.  On a per share basis, the net loss for the year was $1.17, a dramatic improvement over the $11.16 reported for the corresponding period in 2010, tempered by a significantly expanded share count attributable to the trust preferred exchange.  

Balance Sheet

Divestiture efforts and ongoing balance sheet deleveraging are focused on strengthening consolidated capital ratios, although the Corporation continues to be classified as "undercapitalized."  The challenges, and multiple efforts to address this capital-restoration priority, remain ongoing.  As of December 31, 2011, Capitol has a $205.9 million valuation allowance related to deferred tax assets, which may be released upon a sustained return to profitability.  In July, Capitol announced that it had adopted a Tax Benefits Preservation Plan designed to preserve substantial tax assets.  This plan is similar to tax benefit preservation plans adopted by other public companies with significant tax attributes.  The purpose of such a plan is to protect Capitol's ability to carry forward its net operating losses and certain other tax attributes for utilization in certain circumstances to offset future taxable income and reduce its federal income tax liability.

Net loan charge-offs of 3.24 percent of average loans (annualized) for the fourth quarter of 2011 represented a notable decrease from the 4.68 percent in the corresponding period of 2010 (excluding discontinued operations) and 5.61 percent on a linked-quarter basis.  Recent activity reflected some encouragement in the trend of a declining level of nonperforming loans in the Arizona Region (a $19.1 million decline from year-end 2010), the Great Lakes Region (a $22.6 million decline from year-end 2010) and the Nevada Region (a $24.8 million decline from year-end 2010).  The consolidated coverage ratio of the allowance for loan losses in relation to nonperforming loans was 41.33 percent at December 31, 2011, fairly consistent with levels reported in recent quarters.  The allowance for loan losses as a percentage of portfolio loans remained relatively constant with recent periods at 5.56 percent, compared to 5.72 percent linked-quarter, and 5.52 percent at year-end 2010.    

Comprehensive Capital Strategy

In December 2010, Capitol announced a comprehensive capital strategy focused on the enhancement of the Corporation's capital levels.  Those initiatives are designed to augment existing strategic efforts focused on affiliate divestitures, operational cost savings, balance-sheet deleveraging and liquidity.  The Corporation successfully completed the first of these capital initiatives, an offer to exchange outstanding trust preferred securities for previously-unissued shares of its common stock.  On January 31, 2011, those exchanges resulted in an additional $19.5 million of equity for Capitol, the issuance of approximately 19.5 million previously-unissued shares of its common stock and the elimination of approximately $2.4 million of annual interest expense in future periods.  Additional prospective debt-for-equity exchanges are being assessed, as well as potential external capital sources the Corporation continues to pursue.  

Affiliate Bank Divestitures

Capitol previously announced plans to sell its controlling interests in several affiliate banks.  During the fourth quarter, the divestitures of California-based Bank of Feather River, Indiana-based Evansville Commerce Bank and Texas-based Bank of Las Colinas were completed.  These three recent transactions involved more than $150 million of assets and the reallocation of nearly $10 million of capital for reinvestment in Capitol's remaining bank affiliates.  After the close of the fourth quarter, Capitol completed the sale of Colorado-based Mountain View Bank of Commerce, in late January, marking the Corporation's exit from the state of Colorado.

Capitol has also entered into agreements to sell its interests in four additional affiliates in various regions of the country.  Those transactions, pending regulatory approvals (and other contingencies), represent nearly $235 million of assets.  The four pending divestitures are anticipated to be completed in 2012.

About Capitol Bancorp Limited

Capitol Bancorp Limited, which was founded in 1988, is a community banking company that has a network of separately chartered banks in ten states and executive offices in Lansing, Michigan.

CAPITOL BANCORP LIMITED

SUMMARY OF SELECTED FINANCIAL DATA

(in thousands, except share and per share data)
















Three Months Ended




Year Ended




December 31




December 31




2011


2010




2011


2010









Condensed consolidated results of operations:











Interest income

$      23,618


$      29,432




$    103,793


$    128,828


Interest expense

8,233


12,198




36,568


57,063



Net interest income

15,385


17,234




67,225


71,765


Provision for loan losses

4,259


19,206




41,362


148,275


Noninterest income

10,369


6,581




41,743


22,462


Noninterest expense

29,144


91,852




128,618


217,681


Loss from continuing operations before income    











taxes

(7,649)


(87,243)




(61,012)


(271,729)


Income (loss) from discontinued operations

898


(4,978)




5,948


10,111














Net loss attributable to Capitol Bancorp Limited

$      (6,516)


$     (84,164)




$    (45,427)


$  (225,215)














Net loss attributable to Capitol Bancorp Limited per          











common share  

$        (0.16)


$         (3.95)




$        (1.17)


$      (11.16)


Book value (deficit) per common share at end of period

(2.76)


(3.10)




(2.76)


(3.10)


Common stock closing price at end of period

$          0.09


$          0.52




$          0.09


$          0.52


Common shares outstanding at end of period

41,040,000


21,615,000




41,040,000


21,615,000


Number of common shares used to compute net loss      











per share:












Basic

41,019,000


21,305,000




38,817,000


20,186,000



Diluted

41,019,000


21,305,000




38,817,000


20,186,000




























4th Quarter


3rd Quarter


2nd Quarter


1st Quarter


4th Quarter




2011


2011


2011


2011


2010

Condensed summary of consolidated financial position:











Total assets

$ 2,205,265


$ 2,468,957


$  2,945,859


$ 3,196,962


$ 3,540,214


Portfolio loans(1)

1,664,209


1,758,933


1,879,686


1,996,768


2,084,176


Deposits(1)

2,009,847


2,111,418


2,208,417


2,299,503


2,369,072


Capitol Bancorp Limited stockholders' equity (deficit)  

(108,084)


(95,831)


(72,421)


(56,425)


(61,854)


Total capital

$      40,509


$      55,622


$       90,157


$    110,090


$    128,905













Key performance ratios:











Net interest margin

2.90%


2.97%


2.99%


3.15%


2.94%


Efficiency ratio

113.16%


138.91%


139.60%


87.58%


320.34%













Asset quality ratios:











Allowance for loan losses / portfolio loans

5.56%


5.72%


5.60%


5.58%


5.52%


Total nonperforming loans / portfolio loans

13.45%


13.73%


13.23%


11.86%


11.90%


Total nonperforming assets / total assets

14.72%


14.23%


12.65%


12.58%


12.03%


Net charge-offs (annualized) / average portfolio loans

3.24%


5.61%


3.32%


3.78%


4.05%


Allowance for loan losses / nonperforming loans

41.33%


41.70%


42.29%


47.02%


46.38%













Capital ratios:











Capitol Bancorp Limited stockholders' equity (deficit) / total assets

(4.90)%


(3.88)%


(2.46)%


(1.76)%


(1.75)%


Total equity / total assets

(4.93)%


(3.79)%


(2.00)%


(1.22)%


(1.09)%













(1)  Amounts as previously reported have been adjusted to exclude amounts related to discontinued operations.  



Forward-Looking Statements

This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include expressions such as "expect," "intend," "believe," "estimate," "may," "will," "anticipate" and "should" and similar expressions also identify forward-looking statements which are not necessarily statements of belief as to the expected outcomes  of future events.  Actual results could materially differ from those presented due to a variety of internal and external factors.  Actual results could materially differ from those contained in, or implied by, such statements.  Capitol Bancorp Limited undertakes no obligation to release revisions to these forward-looking statements or reflect events or circumstances after the date of this release.



 Supplemental analyses follow providing additional detail regarding Capitol's consolidated results of operations, financial position, asset quality and other supplemental data.  




CAPITOL BANCORP LIMITED

Condensed Consolidated Statements of Operations (Unaudited)

(in thousands, except per share data)












Three Months Ended December 31  


Year Ended December 31



2011


2010


2011


2010

INTEREST INCOME:









 Portfolio loans (including fees)


$ 23,192


$  28,863


$ 102,099


$  126,435

 Loans held for sale


35


57


86


210

 Taxable investment securities


61


57


233


359

 Federal funds sold


3


2


9


10

 Other


327


453


1,366


1,814

                           Total interest income


23,618


29,432


103,793


128,828










INTEREST EXPENSE:









 Deposits


5,061


8,392


24,215


41,065

 Debt obligations and other


3,172


3,806


12,353


15,998

                           Total interest expense


8,233


12,198


36,568


57,063

                           Net interest income


15,385


17,234


67,225


71,765










PROVISION FOR LOAN LOSSES


4,259


19,206


41,362


148,275

                           Net interest income (deficiency) after        









                             provision for loan losses    


11,126


(1,972)


25,863


(76,510)










NONINTEREST INCOME:









 Service charges on deposit accounts


818


809


3,256


3,373

 Trust and wealth-management revenue    


701


918


3,246


4,200

 Fees from origination of non-portfolio residential              









    mortgage loans    


291


492


994


1,643

 Gain on sale of government-guaranteed loans    


128


202


1,552


818

 Gain on debt extinguishment  


--


--


16,861


1,255

 Realized loss on sale of investment securities available









    for sale      


(10)


(361)


(10)


(351)

 Other


8,441


4,521


15,844


11,524

                           Total noninterest income


10,369


6,581


41,743


22,462










NONINTEREST EXPENSE:









 Salaries and employee benefits


11,573


12,880


49,851


58,099

 Occupancy


2,730


3,149


10,200


12,300

 Equipment rent, depreciation and maintenance    


1,629


2,032


7,468


8,678

 Costs associated with foreclosed properties and other      









    real estate owned


5,627


4,645


29,380


38,911

 FDIC insurance premiums and other regulatory fees    


1,935


3,425


9,457


13,709

 Goodwill impairment




59,734




59,734

 Other


5,650


5,987


22,262


26,250

                           Total noninterest expense    


29,144


91,852


128,618


217,681

                           Loss before income tax benefit              


(7,649)


(87,243)


(61,012)


(271,729)










Income tax expense (benefit)        


127


(960)


(3,138)


(7,254)










                           Loss from continuing operations


(7,776)


(86,283)


(57,874)


(264,475)










Discontinued operations:









 Income (loss) from operations of bank subsidiaries sold


296


(5,264)


2,582


3,641

 Gain on sale of bank subsidiaries


999


2,405


5,495


15,784

 Less income tax expense    


397


2,119


2,129


9,314

                           Income (loss) from discontinued operations    


898


(4,978)


5,948


10,111

                           NET LOSS      


(6,878)


(91,261)


(51,926)


(254,364)










Net losses attributable to noncontrolling interests in                    









   consolidated subsidiaries


362


7,097


6,499


29,149










         NET LOSS ATTRIBUTABLE TO CAPITOL            









         BANCORP LIMITED      


$ (6,516)


$ (84,164)


$ (45,427)


$ (225,215)










         NET LOSS PER COMMON SHARE ATTRIBUTABLE









         TO CAPITOL BANCORP LIMITED          









         (basic and diluted)            


$   (0.16)


$     (3.95)


$     (1.17)


$     (11.16)



CAPITOL BANCORP LIMITED

Condensed Consolidated Balance Sheets

(in thousands, except share and per-share data)












December 31





(Unaudited)







2011


2010

ASSETS














Cash and due from banks 


$      43,613


$      43,328

Money market and interest-bearing deposits  


343,611


377,966

Federal funds sold 


--


50



Cash and cash equivalents      


387,224


421,344

Loans held for sale   


2,936


5,587

Investment securities:





 Available for sale, carried at fair value       


25,082


15,489

 Held for long-term investment, carried at

  amortized cost which approximates fair value 


2,737


2,893



Total investment securities    


27,819


18,382

Federal Home Loan Bank and Federal Reserve    





 Bank stock (carried on the basis of cost)    


13,514


15,205

Portfolio loans:





 Loans secured by real estate:





      Commercial 


973,045


1,164,488

      Residential (including multi-family)      


363,802


437,411

      Construction, land development and other land      


117,736


178,214



Total loans secured by real estate      


1,454,583


1,780,113

 Commercial and other business-purpose loans      


192,851


280,352

 Consumer 


13,813


18,500

 Other 


2,962


5,211



Total portfolio loans  


1,664,209


2,084,176

 Less allowance for loan losses     


(92,529)


(130,062)



Net portfolio loans


1,571,680


1,954,114

Premises and equipment  


27,420


31,715

Accrued interest income    


5,507


6,721

Other real estate owned 


100,463


101,497

Other assets 


17,037


13,235

Assets of discontinued operations      


51,665


972,414








           TOTAL ASSETS 


$ 2,205,265


$ 3,540,214








LIABILITIES AND EQUITY












LIABILITIES:  





Deposits:





 Noninterest-bearing  


$    348,817


$    368,674

 Interest-bearing  


1,661,030


2,000,398



Total deposits    


2,009,847


2,369,072

Debt obligations:





 Notes payable and short-term borrowings  


60,178


107,789

 Subordinated debentures  


149,156


167,586



Total debt obligations      


209,334


275,375

Accrued interest on deposits and other liabilities    


50,593


49,638

Liabilities of discontinued operations    


44,138


884,810



Total liabilities      


2,313,912


3,578,895








EQUITY:





Capitol Bancorp Limited stockholders' equity:  





  Preferred stock (Series A), 700,000 shares authorized

   ($100 liquidation preference per share); 50,980 shares

   issued and outstanding    


5,098


5,098

  Preferred stock (for potential future issuance),

   19,300,000 shares authorized; none issued and outstanding  


--


--

 Common stock, no par value, 1,500,000,000 shares authorized;  





    issued and outstanding:    

 2011 - 41,039,767 shares  






 2010 - 21,614,856 shares  


292,135


287,190

 Retained-earnings deficit    


(404,846)


(353,757)

 Undistributed common stock held by employee-benefit trust        


(541)


(541)

 Fair value adjustment (net of tax effect) for investment securities

   available for sale (accumulated other comprehensive income)          


70


156

Total Capitol Bancorp Limited stockholders' equity deficit          


(108,084)


(61,854)

Noncontrolling interests in consolidated subsidiaries     


(563)


23,173



Total equity deficit            


(108,647)


(38,681)








           TOTAL LIABILITIES AND EQUITY      


$ 2,205,265


$ 3,540,214



CAPITOL BANCORP LIMITED

Allowance for Loan Losses Activity


ALLOWANCE FOR LOAN LOSSES ACTIVITY (in thousands):






Periods Ended December 31



Three Month Period


Year Ended



2011


2010(1)


2011


2010(1)










Allowance for loan losses at beginning of period


$      102,167


$      136,134


$      130,062


$      114,557










Allowance for loan losses of previously-discontinued bank subsidiary


--


--


2,380


--










Loans charged-off:









Loans secured by real estate:









Commercial


(7,933)


(4,010)


(34,558)


(49,823)

Residential (including multi-family)


(3,553)


(9,726)


(20,486)


(36,525)

Construction, land development and other land


(3,812)


(7,707)


(22,774)


(33,974)

Total loans secured by real estate


(15,298)


(21,443)


(77,818)


(120,322)

Commercial and other business-purpose loans


(1,761)


(7,433)


(18,805)


(25,184)

Consumer


(304)


(684)


(1,033)


(1,877)

Other


(2)


1


(2)


--

Total charge-offs


(17,365)


(29,559)


(97,658)


(147,383)

Recoveries:









Loans secured by real estate:









Commercial


1,891


1,651


5,033


3,126

Residential (including multi-family)


405


1,875


2,898


3,535

Construction, land development and other land


371


(84)


4,462


4,982

Total loans secured by real estate


2,667


3,442


12,393


11,643

Commercial and other business-purpose loans


717


686


3,746


2,726

Consumer


82


153


238


244

Other


2


--


6


--

Total recoveries


3,468


4,281


16,383


14,613

Net charge-offs


(13,897)


(25,278)


(81,275)


(132,770)

Additions to allowance charged to expense (provision for loan losses)


4,259


19,206


41,362


148,275










Allowance for loan losses at end of period


$        92,529


$      130,062


$        92,529


$      130,062










Average total portfolio loans for the period


$   1,716,069


$   2,159,221


$   1,890,839


$   2,323,453










Ratio of net charge-offs (annualized) to average portfolio loans outstanding


3.24%


4.68%


4.30%


5.71%










(1) For comparative purposes, original balances as previously reported have been adjusted to exclude amounts related to discontinued operations.



CAPITOL BANCORP LIMITED

Asset Quality Data


ASSET QUALITY (in thousands):












December 31,

2011


September 30,

2011(1)


June 30,

2011(1)


March 31,

2011(1)










Nonaccrual loans:









Loans secured by real estate:









Commercial


$      122,481


$      134,363


$      142,627


$      140,851

Residential (including multi-family)


47,728


50,327


51,860


51,027

Construction, land development and other land


31,297


38,129


47,077


45,440

       Total loans secured by real estate


201,506


222,819


241,564


237,318

Commercial and other business-purpose loans


18,002


18,654


22,883


28,725

Consumer


124


299


112


500

Other


--


3


--


--

       Total nonaccrual loans


219,632


241,775


264,559


266,543










Past due (> or = 90 days) loans and accruing interest:









Loans secured by real estate:









Commercial


3,778


2,365


995


4,808

Residential (including multi-family)


259


1,245


106


688

Construction, land development and other land


--


689


--


2,374

Total loans secured by real estate


4,037


4,299


1,101


7,870

Commercial and other business-purpose loans


148


--


417


410

Consumer


38


638


78


19

Other


--


67


--


--

       Total past due loans


4,223


5,004


1,596


8,299










       Total nonperforming loans


$      223,855


$      246,779


$      266,155


$      274,842










  Real estate owned and other

     repossessed assets


100,727


103,437


102,111


105,247










       Total nonperforming assets


$      324,582


$      350,216


$      368,266


$      380,089










(1) For comparative purposes, original balances as previously reported have been adjusted to exclude amounts related to discontinued operations.



CAPITOL BANCORP LIMITED

Selected Supplemental Data


EPS COMPUTATION COMPONENTS (in thousands):




Periods Ended December 31


Three Month Period


Year Ended


2011


2010


2011


2010









Numerator -- net loss attributable to Capitol Bancorp

 Limited for the period

$        (6,516)


$      (84,164)


$      (45,427)


$    (225,215)









Denominator:








Weighted average number of common shares

  outstanding, excluding unvested restricted shares

  of common stock (denominator for basic and diluted

  net loss per share)

41,019


21,305


38,817


20,186









Number of antidilutive stock options excluded

 from diluted net loss per share computation

2,163


1,746


2,163


1,746









Number of antidilutive unvested restricted shares

 excluded from basic and diluted net loss per

 share computation

21


310


21


310









Number of antidilutive warrants excluded

 from diluted net loss per share computation

1,326


1,326


1,326


1,326









Net income (loss) per common share attributable to

 Capitol Bancorp Limited:








From continuing operations

$          (0.18)


$          (3.77)


$          (1.32)


$        (11.76)

From discontinued operations

0.02


(0.18)


0.15


0.60









Total net loss per common share attributable

  to Capitol Bancorp Limited

$          (0.16)


$          (3.95)


$          (1.17)


$        (11.16)












AVERAGE BALANCES (in thousands):




Periods Ended December 31


Three Month Period


Year Ended


2011


2010


2011


2010









Portfolio loans(1)

$  1,716,069


$  2,159,221


$  1,890,839


$  2,323,453

Earning assets(1)

2,118,840


2,624,505


2,293,225


2,865,559

Total assets

2,309,445


3,873,673


2,821,131


4,580,606

Deposits(1)

2,069,040


2,498,957


2,207,056


2,712,515

Capitol Bancorp Limited stockholders' equity (deficit)

(101,366)


7,142


(75,189)


84,786









(1) Amounts as previously reported have been adjusted to exclude amounts related to discontinued operations.



Capitol Bancorp's National Network of Community Banks



Arizona Region:


Central Arizona Bank

Scottsdale, Arizona

Sunrise Bank of Albuquerque

Albuquerque, New Mexico

Sunrise Bank of Arizona

Phoenix, Arizona



Great Lakes Region:


Bank of Maumee

Maumee, Ohio

Bank of Michigan

Farmington Hills, Michigan

Capitol National Bank

Lansing, Michigan

Indiana Community Bank

Goshen, Indiana

Michigan Commerce Bank

Ann Arbor, Michigan



Midwest Region:


Summit Bank of Kansas City

Lee's Summit, Missouri



Nevada Region:


1st Commerce Bank

North Las Vegas, Nevada

Bank of Las Vegas

Las Vegas, Nevada



Northwest Region:


High Desert Bank

Bend, Oregon



Southeast Region:


First Carolina State Bank

Rocky Mount, North Carolina

Pisgah Community Bank

Asheville, North Carolina

Sunrise Bank  

Valdosta, Georgia






SOURCE Capitol Bancorp Limited



RELATED LINKS
http://www.capitolbancorp.com

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