* Sale for $10.5 mln in cash
* Expects to close deal during second half of 2009
May 5 (Reuters) - Capitol Bancorp Inc said it will sell Yuma Community Bank, a wholly-owned affiliate in Arizona, to Foothills Bank, a community bank, for about $10.5 million in cash.
The Lansing, Michigan-based Capitol, which currently owns 10 affiliate banks in Arizona, has been consolidating affiliate banks in Michigan and Arizona to conserve capital and increase efficiency as it combats weak economic conditions.
On April 17, the company posted a wider-than-expected first-quarter loss as provision for loan losses soared sequentially and said it reduced salaries, cut costs and suspended growth initiatives to strengthen its capital levels.
On March 31, it announced the consolidation of eight of its wholly owned bank affiliates into its largest bank affiliate Ann Arbor Commerce Bank, and renamed it Michigan Commerce Bank.
Earlier on Feb. 13, the company had announced plan to consolidate four Arizona affiliates into Sunrise Bank of Arizona.
Capitol said it expects to complete the sale to Foothills Bank in the second half of 2009. Shares of the company closed at $3.93 Tuesday on the New York Stock Exchange.
(Reporting by Amiteshwar Singh in Bangalore; Editing by Jarshad Kakkrakandy) Keywords: CAPITOLBANCORP/ (amiteshwar.singh@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: amiteshwar.singh.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
* Expects to close deal during second half of 2009
May 5 (Reuters) - Capitol Bancorp Inc said it will sell Yuma Community Bank, a wholly-owned affiliate in Arizona, to Foothills Bank, a community bank, for about $10.5 million in cash.
The Lansing, Michigan-based Capitol, which currently owns 10 affiliate banks in Arizona, has been consolidating affiliate banks in Michigan and Arizona to conserve capital and increase efficiency as it combats weak economic conditions.
On April 17, the company posted a wider-than-expected first-quarter loss as provision for loan losses soared sequentially and said it reduced salaries, cut costs and suspended growth initiatives to strengthen its capital levels.
On March 31, it announced the consolidation of eight of its wholly owned bank affiliates into its largest bank affiliate Ann Arbor Commerce Bank, and renamed it Michigan Commerce Bank.
Earlier on Feb. 13, the company had announced plan to consolidate four Arizona affiliates into Sunrise Bank of Arizona.
Capitol said it expects to complete the sale to Foothills Bank in the second half of 2009. Shares of the company closed at $3.93 Tuesday on the New York Stock Exchange.
(Reporting by Amiteshwar Singh in Bangalore; Editing by Jarshad Kakkrakandy) Keywords: CAPITOLBANCORP/ (amiteshwar.singh@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: amiteshwar.singh.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.