Capitol Bancorp Ltd. in Lansing, Mich., announced Monday that it has a deal to sell its 51% stake in Adams Dairy Bank in Blue Springs, Mo., to the bank's board of directors.
The $45 million-asset bank's board plans to sell the stock in a simultaneous private placement to members of the community, David Chinnery, its president and chief executive officer, said in an interview. The deal is expected to close this year.
Adams Dairy was founded on Jan. 3, 2008, and has a relatively clean loan portfolio. Its nonperforming assets were 0.48% of total assets at Sept. 30, up from zero a year earlier.
The $5.4 billion-asset Capitol Bancorp's strategy is to open banks nationwide. Each bank has local ownership, yet Capitol Bancorp owns the majority stake.
The Michigan company, which has 49 banks, has been selling some of them in an effort to bolster its capital. It announced seven deals last year, but one was canceled when the buyer called it off. A blank-check company, which renamed itself Western Liberty Bancorp, was set to acquire the $45 million-asset 1st Commerce Bank in North Las Vegas, Nev. The bank was to serve as a charter for 21 branches to be acquired from the subsidiary of Colonial BancGroup Inc. in Montgomery, Ala. The subsidiary bank failed and Western Liberty no longer needed 1st Commerce to buy the branches.