/PRNewswire-FirstCall/ -- Capitol Bancorp Limited (NYSE: CBC) and Grandpoint Capital, Inc. announced jointly today the planned sale of Capitol's
operations involving Bank of
and Southern Arizona Community Bank to Grandpoint Capital, Inc.
The transaction will be structured as a whole-bank purchase of the single-office,
Southern Arizona Community Bank, which is expected to generate aggregate cash proceeds in excess of
, simultaneous with a traditional purchase-and-assumption transaction for the main office operations of the Bank of
(involving total footings approximating
). This transaction structure will enable Capitol Bancorp to retain Bank of
branch office in
, and the existing
of tangible equity residing at the entity as of
June 30, 2010
, while positioning Grandpoint Capital, Inc. to commence its new
operations with a consolidated
-domiciled banking platform that will conduct business under the Bank of
Capitol Chairman and CEO
Joseph D. Reid
said, "This sale will provide Capitol with access to new capital that will be used to support our ongoing strategic initiative to enhance balance sheet strength and assist those affiliates currently facing challenges."
"In 1996, Bank of
's President and CEO
partnered with Capitol to organize its first bank outside of
. He has played an integral role in the growth and development of Capitol, serving as both a corporate director and regional president overseeing the
market. Through Mike's efforts, Bank of
has been a consistent top performer. As Mike moves forward with Grandpoint Capital, Inc., I am confident that his customers will continue to enjoy the stellar service and community support that they have come to expect during the past 14 years."
This transaction, which is subject to regulatory approval, is expected to be completed in 2010.