Capitol Bancorp has entered into a definitive agreement to sell Community Bank of Rowan, a $147 million affiliate, to North Carolina-based First American Financial Management, for total cash consideration approximating 1.5 times the tangible common equity of the bank.
As per the agreement Capitol will continue to provide certain back-office support functions to Community Bank of Rowan after the transaction is consummated.
Joseph Reid, chairman and CEO of Capitol, said: “This proposed sale is yet another opportunity for Capitol to partner an affiliate with a local organization committed to community banking, and to support Capitol’s efforts to harvest capital and enhance balance sheet strength.”
Capital Bancorp has added that the transaction is subject to regulatory approval, and expected to be completed sometime during the second half of 2009.
North Carolina-based Community Bank of Rowan is a full-service bank providing financial products for small and mid-size businesses, professionals and entrepreneurs throughout the Rowan county area.
