A few weeks after announcing plans to sell some subsidiary banks, Capitol Bancorp Ltd. has its first suitor.
The $132.5 million-asset Foothills Bank in Yuma, Ariz., agreed to pay $10.5 million for Capitol's $72.3 million-asset Yuma Community Bank.
Late last month the $5.8 billion-asset Capitol said it had hired KBW Inc.'s Keefe, Bruyette & Woods Inc. to help divest some of its 53 banks. Hurt by persistent credit losses, the company, which has dual headquarters in Lansing, Mich., and Phoenix, aims to bolster its capital.
Though Yuma Community was not on the sell list, Capitol opted to divest it anyway, after getting an attractive offer, Joseph D. Reid, the company's chairman and chief executive officer, said in a press release. Yuma Community is one of 10 banks that Capitol owns in Arizona, the company's second-largest market after Michigan.