Capitol Bancorp Announces the Planned Divestiture of Its Interest in Texas-Based Bank of Las Colinas

Mar 07, 2011, 16:00 ET from Capitol Bancorp Limited

LANSING, Mich. and PHOENIX, March 7, 2011 /PRNewswire/ -- Capitol Bancorp Limited (OTCQB: CBCR) announced today that it has entered into an agreement with Collin Bank to sell its majority interest in Bank of Las Colinas.  

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 to support our network of affiliate banks."  

This follows Capitol's announced sale of its other Texas affiliate, Bank of Fort Bend, last year.  The completion of these transactions will constitute Capitol's exit from the Texas market and divestiture of all $80 million of its assets within the state as of December 31, 2010.

"The Bank of Las Colinas team under President Gerold Hooker's leadership has enjoyed a promising start since establishing the bank in 2007.  The bank is well-positioned in its community, serving the financial needs of local people and businesses," added Reid.  

The transaction is expected to be completed in 2011.  

About Capitol Bancorp Limited

Capitol Bancorp Limited (OTCQB: CBCR) is a national community banking company, with a network of separately chartered banks with operations in 14 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.

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