Grandpoint Capital, Inc., and Capitol Bancorp Limited (NYSE: CBC) jointly announced today the planned sale of Capitol's Tucson operations involving Bank of Tucson and Southern Arizona Community Bank to Grandpoint Capital, Inc.
The transaction will be structured as a whole-bank purchase of the single-office, $99.4 million Southern Arizona Community Bank, which is expected to generate aggregate cash proceeds for Capitol in excess of $11 million, simultaneous with a traditional purchase-and-assumption transaction for the main office operations of the Bank of Tucson. As part of the transaction, Grandpoint Capital will purchase some Bank of Tucson loans. The consolidated operations, with total assets of approximately $270 million, will conduct business under the Bank of Tucson name.
The transaction, which is subject to regulatory approval, is expected to be completed in 2010. At completion, Grandpoint Capital will have an ownership interest in the bank of approximately 80 percent with the balance held by a group of local Arizona investors.
“Grandpoint Capital's strategy is to build strong banks around strong management in markets where we can make a difference,” said Don M. Griffith, chairman and chief executive officer of Grandpoint Capital. “This acquisition is an opportunity to build on a well established banking platform in a market we believe has tremendous long-term value. We'll do that by combining our capital with the outstanding talent and experience of the local management team, led by Bank of Tucson President and CEO Mike Hannley, who will serve in the same capacity for the new, combined operation.”Hannley, who partnered with Capitol Bancorp to launch Bank of Tucson in 1996, is a 38-year banking veteran. Southern Arizona Community Bank President and CEO John P. Lewis will serve as vice chair of the consolidated organization. Lewis has been in banking since 1966 and was recruited by Capitol Bancorp in 1998 to start Southern Arizona Community Bank. He was appointed last year to serve on the FDIC's 14-member Advisory Committee on Community Banking.