Capitol Bancorp Ltd. in Lansing, Mich., said it reduced its loss in the second quarter to $41 million, compared with a $47.9 million loss a year earlier.
The $4.7 billion-asset company said Monday that nonperforming assets rose 5% from the previous quarter, to $468 million, or 9.86% of total assets. Capitol took a $44.6 million loan-loss provision, and charged off $33.4 million, a 20% decline from the first quarter.
Capitol was significantly undercapitalized as of June 30, with a leverage ratio of 2.39% and a total risk-based capital ratio of 6.38%. Capitol has sold six of its bank subsidiaries, and hopes to raise additional capital through an exchange offer for its trust-preferred securities.