Capitol Bancorp Ltd. plans to sell its majority stake in a North Carolina bank to a private-equity-backed group.
Piedmont Community Bank Holdings Inc. in Raleigh, N.C., will pay about $10 million for all shares of the $149.5 million-asset Community Bank of Rowan, including the 51% stake held by Capitol, of Lansing, Mich. The $4.24 billion-asset company has been selling banks in several markets to boost capital and shrink its balance sheet.
Community Bank was well capitalized with a total risk-based capital ratio of 11.07% at Sept. 30. Scott Custer, Piedmont's chief executive, said in a press release Friday that his group plans to infuse Community Bank with more capital. Piedmont was formed last year through private-equity groups and businessmen such as Adam Abram, Custer and Steven Lerner.
Capitol said it expects to complete the sale next year.
