Capitol Bancorp Announces the Planned Sale of Three Colorado-Based Affiliate Banks

LANSING, Mich., and PHOENIX, April 16 /PRNewswire-FirstCall/ -- Capitol Bancorp Limited (NYSE: CBC) announced today that it has entered into a collective stock redemption transaction with three Colorado affiliates, Fort Collins Commerce Bank, Larimer Bank of Commerce and Loveland Bank of Commerce, to sell its 51 percent interest in each bank.  At year-end 2009, total assets were approximately $224 million for the three affiliates.

"This transaction will further advance our well-publicized strategic initiatives to deleverage our consolidated balance sheet and redistribute capital within our multi-state network, particularly to our affiliates that have been adversely impacted by challenging economic conditions," said Capitol Bancorp's Chairman and CEO Joseph D. Reid.  

This follows Capitol's announced sale of its fourth Colorado affiliate, Mountain View Bank of Commerce, in December of 2009.  The completion of these transactions will constitute Capitol's exit from the Colorado market and divestiture of all $274 million of its assets within the State.

"We are pleased to have supported Fort Collins Commerce Bank President and CEO Gerard Nalezny, who also leads the talented Loveland Bank of Commerce team, and Larimer Bank of Commerce President and CEO Mark Kross to launch the banks' operations and establish a successful presence in the Colorado market.  This mutually beneficial opportunity will permit the banks to acquire additional local ownership and continue to build their current operations," 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 $5.1 billion national community bank company, with a network of separately chartered banks in 17 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

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