LANSING, Mich. and PHOENIX, Oct. 26 /PRNewswire-FirstCall/ -- Capitol Bancorp Limited (NYSE: CBC) announced today that it has entered into a stock redemption agreement with Evansville Commerce Bank in which Capitol will sell its majority interest in the bank.
Capitol's Chairman and CEO Joseph D. Reid said, "This transaction will free additional capital that will be redirected to our affiliates still faced with the challenges of an unstable economy."
"We are pleased to have supported the Evansville Commerce Bank team under the leadership of President Thomas Austerman to establish the bank in 2006. Evansville Commerce Bank has worked diligently since its founding to create a positive market presence in the Evansville community," commented Reid.
The transaction is expected to be completed in 2011.About Capitol Bancorp Limited Capitol Bancorp Limited (NYSE: CBC) is a $4.7 billion national community banking company, with a network of bank operations in 14 states. Founded in 1988, Capitol Bancorp Limited has executive offices in Lansing, Michigan and Phoenix, Arizona. Forward Looking Statement Certain statements in this announcement contain forward-looking statements that are based on management's expectations, estimates, projections and assumptions. Words such as "expects," "anticipates," "plans," "believes," "scheduled," "estimates" and variations of these words and similar expressions are intended to identify forward-looking statements. Forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. These statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. Therefore, actual future results and trends may differ materially from what is forecast in forward-looking statements due to a variety of factors.