Capitol Bancorp Ltd. continued its selling spree, on Friday announcing its 10th deal since May.
The $5.4 billion-asset multibank holding company announced that it had made a stock redemption agreement with the $44 million-asset Bank of Las Colinas in Irving, Texas, to sell its 51% interest to the local bank investors for an undisclosed price.
Bank of Las Colinas was chartered in December 2007 at the height of Capitol's push to open banks in fast-growing areas. At the time, its model called for 49% of the bank to be owned by local investors and management, with the understanding that Capitol would buy out their interest after about three years.
However, credit losses, primarily in the company's Michigan and Arizona banks, prompted Capitol to alter that model in late 2008 in order to preserve capital.
In April the company, which has dual headquarters in Lansing, Mich., and Phoenix, hired KBW Inc.'s Keefe, Bruyette & Woods Inc. to help it identify divestiture targets among the 53 banks it owned.
Last week the company announced the sale of its 51% stake in the $45 million-asset Adams Dairy Bank in Blue Springs, Mo. Of the 10 deals announced in the past year, two have closed, and one was terminated.
According to the Federal Deposit Insurance Corp., the Bank of Las Colinas had no noncurrent loans as of Sept. 30 and was in excess of the minimum requirements for well-capitalized institutions.