Capitol Bancorp's story is drawing to a close.
The Lansing, Mich., company said late Monday that it will sell its four remaining banks to Talmer Bancorp in Troy, Mich. Capitol (CBCRQ) entered into a stock purchase agreement to sell Bank of Las Vegas, Indiana Community Bank, Michigan Commerce Bank and Sunrise Bank of Albuquerque.
"We are pleased to provide the banks with a strategic partner that has the resources and capital to support the banks' long-term success," Joseph Reid, Capitol's chairman and chief executive, said in a press release. "This transaction presents significant opportunities for the banks, and their employees and customers."
Capitol said it expects the sale to close as part of its bankruptcy proceedings.
Reid had spent the last four years trying to keep Capitol's far-flung banks afloat by selling banks and using proceeds to prop up ailing ones. Several of its banks had failed this year, including Sunrise Bank of Arizona in August, Commerce Bank in North Las Vegas in June and three other banks in May.
Talmer, backed by capital from W.L. Ross & Co., is no stranger to buying banks out of bankruptcy. Last year, it agreed to buy and recapitalize First Place Bank in Warren, Ohio, through a bankruptcy process. It has grown by buying banks in states such as Michigan and Wisconsin.