Capitol Bancorp (CBCRQ) in Lansing, Mich., may have found its first lifeline after years of searching.

The embattled $1.9 billion-asset company announced earlier this week that it had entered into agreements with two units of ValStone Partners, a private-equity firm in Birmingham, Mich. The ValStone units have agreed to buy $35 million in common stock and $15 million in preferred stock. They will also buy $207 million of Capitol’s nonperforming loans.

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