Capitol Bancorp (Capitol), a national community banking company based in Michigan, has reported second quarter net loss of approximately $18.7 million. The net loss per share for the quarter ended June 30, 2009 was $1.08, compared to net income of $0.04 per diluted share reported for the second quarter of 2008.
Consolidated assets were approximated $5.7 billion compared to the approximate $5.3 billion reported at June 30, 2008, resulting in a 7% year-over-year increase. Total portfolio loans were relatively flat at approximately $4.6 billion year-over-year, but reflect a 7% decline year-to-date and a nearly 10% decline on a linked-quarter basis (annualized). Total deposits increased nearly 13% to approximately $4.7 billion from the approximate $4.2 billion reported at June 30, 2008.
Joseph Reid, chairman and CEO, Capitol, said, Capitol has maintained strong core capital ratios, with a total capital ratio in excess of 11% of total assets, and we continue to focus our attention on marshalling resources through the recently announced divestitures of five affiliate banks and the spin-off of Michigan Commerce Bancorp, with an aim to ensure the future soundness of the Corporation.”
“After careful consideration and factoring in potential costs of the Treasury’s TARP program, both quantifiable and hidden, Capitol decided to officially withdraw its application for funds. We believe Capitol’s key strategic initiatives, including the select divestitures of affiliate banks and the proposed spin-off of Michigan Commerce Bancorp’s operations, will prove to be both cost-effective and more shareholder-oriented paths toward our objectives of building balance sheet strength, enhancing corporate-wide liquidity, marshalling resources and preserving core capital to support our organization, he added.
