Capitol Bancorp Announces the Planned Sale of Bank of Fort Bend

Jun 18, 2010, 10:30 ET from Capitol Bancorp Limited

LANSING, Mich., and PHOENIX, June 18 /PRNewswire-FirstCall/ -- Capitol Bancorp Limited (NYSE: CBC) announced today that it has entered into an agreement with a local investor group to acquire all of the stock of Bank of Fort Bend, including the 51 percent interest in the bank held by Capitol.  

Capitol Bancorp's Chairman and CEO Joseph D. Reid said, "This sale will further our strategic deleveraging initiative and permit us to redeploy capital to our affiliates currently faced with economic challenges."

This follows Capitol's announced sale of its other Texas affiliate, Bank of Las Colinas, in January of 2010.  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.

"We are pleased to have supported President Bruce Mercer and the Bank of Fort Bend team to establish a presence in the Sugar Land market.  We welcome this opportunity that allows the bank to maintain a focus on the banking needs of the local market and also acquire additional local ownership," added Reid.

The transaction, which is subject to regulatory approval, is expected to be completed in 2010.    

About Capitol Bancorp Limited

Capitol Bancorp Limited (NYSE: CBC) is a national community bank company, with a network of separately chartered banks in 16 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.

SOURCE Capitol Bancorp Limited