LANSING, Mich. -- Capitol Bancorp Ltd. said it has completed its acquisition of Financial Center Corp.
Financial Center, Holland, Mich., is the parent company of $50 million-asset Paragon Bank and Trust, which becomes Capitol's fifth bank. It has a branch in nearby Grand Haven.
With the transaction, Capitol has $300 million of assets. Capitol also has banks in Lansing, Portage, Ann Arbor, and Farmington Hills. The company also owns a mortgage banking company, Mortgage Connection.
Under terms of the merger, shareholders of Financial Center will receive a combination of common stock of Capitol and warrants to purchase additional Capitol common stock in exchange for their Financial Center common stock. The conversion ratio for the exchange of common stock will be determined soon, based on the formula in the merger agreement.
