Capitol Bancorp has entered into a stock redemption agreement with Bank of Belleville to sell its 51% interest in the bank. Subject to regulatory approval, Capitol will receive approximately 1.42 times the bank’s book value for its shares.
The sale of Capitol’s interest in Bank of Belleville is consistent with the corporation’s well-publicized efforts to harness resources, de-leverage the consolidated balance sheet and preserve capital. Bank of Belleville will retain Capitol to provide certain services, including accounting, data & proof processing and wealth management services.
Joseph Reid, Chairman and CEO of Capitol Bancorp, said: “This is another step in our strategic initiative to maintain capital strength to weather the recession and support our affiliate bank network. We are pleased to have partnered with the community organizers to launch Bank of Belleville in 2005 while assisting this talented team in building a solid banking platform. The bank’s management and board of directors’ sound banking skills and extensive market knowledge have contributed to the bank’s success, and will also help the bank to continue delivering exemplary banking services in the Belleville market.
Capitol Bancorp is a $5.8 billion national community banking company, with a network of separately chartered banks in 17 states across the US.
Illinois-based Bank of Belleville is a commercial bank specializing in providing a menu of banking services for small and mid-sized businesses.