Capitol Bancorp Loses Another Bank to Failure

Capitol Bancorp (CBCRQ) has lost another bank after regulators closed its Sunrise Bank of Arizona on Friday.

First Fidelity Bank in Oklahoma City agreed to buy essentially all of Sunrise's $202 million of assets from the Federal Deposit Insurance Corp., which acted as receiver. The $1.2 billion-asset First Fidelity also agreed to assume all of the failed bank's $197 million in deposits.

Capitol, based in Lansing, Mich., has spent the last four years trying to keep its far-flung banks afloat by selling banks and using the proceeds to prop up ailing ones. The company had created Sunrise Bank of Arizona by consolidating six preexisting banks.

Regulators closed three of Capitol's banks in May and a fourth in June.

Earlier in the evening, regulators shuttered Community South Bank in Tennessee. The failures raised the year's tally to 20.