Capitol Bancorp Announces the Planned Sale of North Carolina-Based Community Bank of Rowan
July 16 2009 - 7:53AM
PR Newswire (US)
LANSING, Mich. and PHOENIX, July 16 /PRNewswire-FirstCall/ --
Capitol Bancorp Limited (NYSE:CBC), announced today that it has
entered into a definitive agreement to sell Community Bank of
Rowan, a $147 million affiliate in North Carolina, to First
American Financial Management Company, based in Charlotte, North
Carolina, for total cash consideration approximating 1.5 times the
tangible common equity of the Bank. "This proposed sale is yet
another opportunity for Capitol to partner an affiliate with a
local organization committed to community banking, and to support
Capitol's efforts to harvest capital and enhance balance sheet
strength," said Capitol Chairman and CEO Joseph D. Reid. "It has
been rewarding to work with President & CEO Bruce Jones and the
entire Community Bank of Rowan team to establish their Bank. The
Bank has enjoyed a successful beginning, and I am confident that
the team will continue to deliver the best in personalized banking
service to their community," added Reid. The transaction, which is
subject to regulatory approval, is expected to be completed
sometime during the second half of 2009. It is anticipated that
Capitol will continue to provide certain back-office support
functions to Community Bank of Rowan after the transaction is
consummated. About Capitol Bancorp Limited Capitol Bancorp Limited
(NYSE:CBC) is a $5.8 billion national community banking company,
with a network of separately chartered banks in 17 states. It is
the holder of the most individual bank charters in the country.
Founded in 1988, Capitol Bancorp Limited has executive offices in
Lansing, Michigan, and Phoenix, Arizona. About Community Bank of
Rowan Community Bank of Rowan, founded in 2006, is a full-service
bank specializing in providing a complete array of financial
products for small and mid-size businesses, professionals and
entrepreneurs throughout the Rowan County area. The bank has
offices in Salisbury at 322 E. Innes St. and China Grove at 313 E.
Centerview St. 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. DATASOURCE: Capitol Bancorp Limited CONTACT:
Analyst: Michael M. Moran, Chief of Capital Markets,
+1-877-884-5662; Media: Stephanie Swan, Director of Shareholder
Services, +1-517-487-6555, both of Capitol Bancorp Limited Web
Site: http://www.capitolbancorp.com/
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