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Capitol Bancorp Ltd. is getting closer to exiting Colorado with an agreement to sell Mountain View Bank of Commerce.
August 17 -
Capitol Bancorp has struck a deal to sell yet another one of its bank units. AmericanWest Bank in Spokane, Wash., will buy Bank of the Northwest for $17 million in cash.
May 26 -
The embattled Capitol Bancorp Ltd. eked out a small profit in the first quarter, thanks largely to a $16.9 million gain on the conversion of trust-preferred securities to common equity.
May 17
As part of its ongoing effort to bolster its capital base, embattled Capitol Bancorp Ltd. is selling its ownership stake in an Ohio bank it co-founded to a group of local investors.
The $3 billion-asset multi-bank holding company announced Monday that it has struck a deal to sell its 51% ownership stake in the $36 million-asset Bank of Maumee to Winding Creek Holdings LLC. A sale price was not disclosed.
Capitol, with dual headquarters in Lansing, Mich., and Phoenix, co-founded the bank in 2006 with a group of local bankers. In a statement, its chairman and chief executive officer, Joseph D. Reid, said that President and co-founder Kevin Rahee and his management team would continue to run the bank.
"We are pleased that they have this opportunity to secure additional local ownership and maintain their autonomous operation," Reid said.
Capitol at one point owned majority stakes in roughly 60 community banks throughout the U.S., but over the last two years it has consolidated or sold off dozens in an attempt to preserve and raise capital. The company has lost hundreds of millions of dollars over the last three years on soured construction loans and Reid said in a statement that the sale of Bank of Maumee will "assist our ongoing efforts to deleverage our balance sheet and redeploy equity capital to those affiliates challenged by the economy."
The sale is expected to be completed later this year.
