Capitol Bancorp has entered into a selling shareholder agreement with Bank of San Francisco in which Capitol will sell its interest in the bank.
Joseph Reid, chairman and CEO of Capitol, said: “This sale will provide Capitol with access to new capital to support our ongoing strategic initiatives to enhance balance sheet strength and support those affiliates currently impacted by challenging economic conditions.
“Under the leadership of president and CEO Ed Obuchowski and executive vice president Wendy Ross, the Bank of San Francisco team has consistently delivered solid performance and exceptional customer service to the San Francisco Bay Area community.”
The transaction is expected to be completed in 2010.
Capitol Bancorp is a national community banking company, with a network of separately chartered banks in 16 US states. Founded in 1988, Capitol Bancorp has executive offices in Lansing, Michigan, and Phoenix, Arizona.