BEACHWOOD, Ohio, June 30 /PRNewswire/ -- Ohio Commerce Bank today announced it has closed on an agreement to purchase all 50.53% of its outstanding shares of stock from its majority shareholder, Capitol Bancorp Ltd. in a cash transaction worth approximately $6.5 million. The stock redemption deal was negotiated and signed December 11, 2009. The agreement has been approved by Ohio Commerce Bank's board of directors and shareholders, and regulatory agencies. Ohio Commerce Bank was oversubscribed in this offering through local private investors.
The purchase will make Ohio Commerce Bank a wholly owned and operated independent community bank. This is an important advancement in the company's desire to assist customers and clients meet all of their financial needs. It will enhance their ability to increase lending to business owners who are seeking to develop a relationship with their banker.
Dell Duncan, President of Ohio Commerce Bank, stated "The purchase of our stock from Capitol Bancorp presents a rare opportunity for us to obtain total control and independence for future growth, as well as positioning us to be able to offer better returns to our stockholders, and to continue to offer our customers attractive lending options. Small and mid sized businesses, the core customer groups of our bank are a fundamental part of the U.S. economy and of our economy's recovery. Offering and servicing loans and other products for them is the key area of growth for Ohio Commerce Bank."
"We are keenly aware of the issues within the banking industry and this transaction will position us to better serve our customers, as well as to foster growth to enhance future profitability. The fact that we were oversubscribed confirms my belief this is the right decision for our shareholders, customers, and employees. We expect that other aspects of our operations will be also be substantially enhanced as a result of this transaction. Ohio Commerce Bank has ample capital and liquidity available to help fill the lending gap in our market," he continued.
Ohio Commerce Bank was established with $10.6 million in equity on November 2, 2006. Ohio Commerce Bank has grown to $75 million in assets in three plus years, posting 14% growth in assets during 2009. Ohio Commerce Bank focuses on business banking built around strong relationships and superior customer service. All decision making is local. They enjoy a diversified customer base that includes manufacturing, nonprofit, professionals, and distribution.
About Ohio Commerce Bank
Ohio Commerce Bank was founded on November 2, 2006. It offers a full menu of banking products and services for small to mid-sized businesses and professionals. The bank is located in Suite 100, The Reflections Building, 24400 Chagrin Boulevard, Beachwood, Ohio, 44122. For more information, call (216) 910-0550 or visit www.ohiocommercebank.com.
This press release contains forward-looking statements, including statements about the financial conditions, results of operations and earnings outlook of Ohio Commerce Bank. The forward-looking statements involve certain risks and uncertainties. Factors that may cause actual results or earnings to differ materially from such forward-looking statements include, among others, the following: 1) projected business increases following process changes and other investments are lower than expected; 2) competitive pressure among financial services companies increases significantly; 3) general economic conditions are less favorable than expected; 4) political conditions including the threat of future terrorist activity and related actions by the United States abroad may adversely affect the company's businesses and economic conditions as a whole; 5) changes in the interest rate environment and market liquidity reduce interest margins, impact funding sources and effect the ability to originate and distribute financial products in the primary and secondary markets; 6) changes in foreign exchange rates increases exposure; 7) changes in market rates and prices may adversely impact the value of financial products; 8) legislation or regulatory environments, requirements or changes adversely affect the businesses in which the company is engaged; 9) changes in accounting standards, rules or interpretations, 10) litigation liabilities, including costs, expenses, settlements and judgments, may adversely affect the company or its businesses; 11) mergers and acquisitions and their integration into the company; and 12) decisions to downsize, sell or close units or otherwise change the business mix of any of the company. Accordingly, readers are cautioned not to place undue reliance on forward- looking statements, which speak only as of the date on which they are made. Ohio Commerce Bank does not undertake to update forward-looking statements to reflect the impact of circumstances or events that arise after the date the forward-looking statements are made. For further information regarding Ohio Commerce Bank, please read the reports filed with the SEC and available at http://www.sec.gov.
SOURCE Ohio Commerce Bank