Blaming economic conditions in the Great Lakes region, Capitol Bancorp Ltd. in Lansing, Mich., said Thursday that its third-quarter earnings fell 44% from the year earlier, to $6 million.
Per-share earnings fell 49%, to 35 cents.
The $4.7 billion-asset, multibank holding company attributed the decline to continued weakness in its "mature" banks in the Great Lakes states, particularly Michigan.
Its 1.42% ratio of nonperforming assets to total assets was 43 basis points higher than the year before, and its $15.8 million year-to-date loan-loss provision was up 82% from last year's first three quarters.
"The difficulties this quarter, particularly with our affiliate banks in Michigan, reinforce the strategic objectives we have set … , to decrease reliance on a particular region's environment," chairman and chief executive Joseph D. Reid said in a press release.
Capitol is the majority owner of more than 50 community banks in 16 states stretching from the Southeast to the Pacific Northwest. It has opened nine banks in the last 12 months.
In midday trading Thursday, Capitol's stock price was down 4.5%, at $22.10 per share.
