Capitol Bancorp has entered into an agreement with a local investor group to acquire all of the stock of Bank of Fort Bend, including the 51% interest in the bank held by Capitol.
This follows Capitol’s announced sale of its other Texas affiliate, Bank of Las Colinas, in January 2010. The completion of these transactions will constitute Capitol’s exit from the Texas market and divestiture of all $80m of its assets within the state.
The transaction, which is subject to regulatory approval, is expected to be completed in 2010.
Joseph Reid, chairman and CEO of Capitol Bancorp, said: “This sale will further our strategic deleveraging initiative and permit us to redeploy capital to our affiliates currently faced with economic challenges.
“We are pleased to have supported president Bruce Mercer and the Bank of Fort Bend team to establish a presence in the Sugar Land market. We welcome this opportunity that allows the bank to maintain a focus on the banking needs of the local market and also acquire additional local ownership.”