EXHIBIT 99.1
| Capitol Bancorp Center 200 Washington Square North Lansing, MI 48933 2777 East Camelback Road Suite 375 Phoenix, AZ 85016 www.capitolbancorp.com |
Analyst Contact: Media Contact: | Michael M. Moran Chief of Capital Markets 877-884-5662 Stephanie Swan Director of Shareholder Services 517-372-7402 |
CAPITOL BANCORP REPORTS SECOND QUARTER RESULTS
2nd QUARTER 2007 HIGHLIGHTS
| · | Assets Reach Record $4.4 Billion |
| · | Loans Increase 20% Linked-Quarter |
| · | 16% Growth in Deposits Linked-Quarter |
| · | Larimer Bank of Commerce (CO) Opens |
| · | Eleven De Novo Applications Pending |
LANSING, Mich. and PHOENIX, Ariz.: July 19, 2007: Capitol Bancorp Limited (NYSE: CBC) today reported second quarter 2007 net income approximating $6.3 million compared to $10.3 million in the second quarter of 2006. Basic and diluted earnings per share (EPS) were both $0.37 for the second quarter of 2007, compared to $0.65 and $0.63, respectively, for the second quarter of 2006. Consolidated assets approximated $4.4 billion at June 30, 2007, a 19 percent increase when compared to $3.7 billion a year ago. Total portfolio loans approximated $3.8 billion, also increasing 19 percent year-over-year, when compared to the approximate $3.2 billion reported at June 30, 2006, and reflecting 20 percent growth, annualized, on a linked-quarter basis. Total deposits, exceeding $3.5 billion, reflect an 18 percent increase over the approximate $3.0 billion reported in 2006.
Capitol Bancorp’s Chairman and CEO Joseph D. Reid said, “Although we continue to experience a difficult economy in the Great Lakes Region, Capitol Bancorp has implemented measures necessary to address these challenges. The disappointing bank performance and related earnings contribution through the first two quarters of 2007 in the Great Lakes Region reinforces our strategic objective to continue to develop our community bank network nationally to provide greater geographic diversification.”
“Our significant development efforts throughout 2007 reflect the confidence that we have in our model. We are encouraged by the steps taken to provide greater geographic diversity that will offer increased earnings stability for the company and our shareholders. Our model of selecting a local president with an independent local board of directors allows us to selectively identify the leadership of our affiliates and their market area. Continuing with the plans for expansion into
new regions as well as additional growth opportunities in existing regions will serve to strengthen and stabilize Capitol Bancorp’s core earnings profile.”
During the second quarter of 2007, Larimer Bank of Commerce, in Fort Collins, Colorado was opened as an affiliate of Capitol Bancorp. Additionally, earlier this week Capitol Bancorp opened an affiliate bank in Issaquah, Washington, its fourth in that state. These recent additions join the de novo affiliates opened earlier this year in California and Washington. In addition, eleven applications are currently pending to establish community banks in the states of Arizona, California, Colorado, Missouri, Nebraska, New York, North Carolina, Oregon, and Texas. The Corporation’s capital base of approximately $668 million, representing more than 15 percent of consolidated total assets, supports the current network of 53 affiliate banks while providing a solid foundation for the Corporation’s plans for future growth.
Quarterly Performance
Consolidated net operating revenues grew 5 percent to $51.4 million for the second quarter of 2007 compared with $49.1 million for the second quarter of 2006, aided by 7 percent growth in fee income. The net interest margin was 4.53 percent, compared to 4.67 percent reported in the first quarter of 2007 and 5.17 percent reported for the second quarter of 2006. While the Corporation’s average earning assets expanded approximately 19 percent from a year ago, to more than $4 billion, Capitol Bancorp felt the effects of continued margin compression. Contributing factors were a flat-to-inverted yield curve, intense pricing competition at a time when robust loan growth outpaced the generation of traditional core funding sources, and the issuance of approximately $55 million of trust preferred financing near the end of the first quarter to support the current pace of bank development.
Net income for the quarter approximated $6.3 million, a decrease from $10.3 million reported in the second quarter of 2006. Bank performance and related earnings contribution of the Corporation’s mature banks in its Great Lakes Region was the major reason for the earnings decrease. Operating expenses increased 15 percent year-over-year, a result of the continued support and reinforcement of business development efforts at Capitol’s existing banks and nonbank affiliates in tandem with the Corporation’s active bank development campaign. Historically, it is not uncommon for Capitol Bancorp to report negative operating leverage in the early stages of vibrant de novo development. Diluted earnings per share of $0.37 decreased from $0.63 reported in the second quarter of 2006. Increased provisions for loan losses (at approximately two-times net charge-offs both for the second quarter and six-month period) tied primarily to the soft Michigan economy, coupled with an 8 percent increase in the Corporation’s outstanding share count year-over-year, were also contributing factors to the decline in earnings per share.
Six Month Performance
Comparable to the challenges noted in Capitol Bancorp’s quarterly performance, modest revenue growth (an increase of 6 percent to nearly $102 million for the six months ended June 30, 2007, when compared to the year-ago period) was offset by the costs attributable to the Corporation’s expanding national franchise. Diluted earnings per share of $0.73 for the first half of 2007 decreased from the $1.24 reported last year. Bank performance and related earnings contribution of the Corporation’s mature banks in its Great Lakes Region was the major reason for the earnings decrease.
Balance Sheet
The Corporation’s equity-to-asset ratio was 8.74 percent at June 30, 2007, up slightly compared to the 8.55 percent reported at June 30, 2006. The total capital-to-asset ratio was 15.05 percent at June 30, 2007, an increase from the 14.40 percent reported a year ago as total capital resources exceeded $668 million.
Net charge-offs at 0.18 percent of average portfolio loans outstanding for the second quarter of 2007 declined from the previous quarter’s 0.26 percent and were up slightly from 0.14 percent in the corresponding period of 2006. The ratio of nonperforming assets to total assets percent was 1.17 percent at June 30, 2007 compared to the 1.08 percent reported at the end of the preceding quarter, and the allowance coverage ratio of nonperforming loans was 118 percent at June 30, 2007. With commercial real estate often serving as the primary source of collateral and security for most affiliate bank loans, resolution timetables for nonperforming loans can be extended due to state-specific redemption laws as well as market conditions for sale of real estate. Consequently, while nonperforming loan and asset ratios at Capitol Bancorp may increase, historically net charge-off levels have been contained.
“Despite the first half challenges,” said Reid, “we remain focused on selective national growth. A little more than 10 years ago the Corporation had approximately 95 percent of its banking assets located in Michigan, as the Corporation launched its geographic diversification efforts with its first bank in Arizona. In addition, the very revenue challenges being faced by the Corporation’s more seasoned and, accordingly, wholly-owned banks reinforces its existing efforts to further diversify both its geographic sources and product mix of revenue generation. Today, Capitol Bancorp has operations in 14 states, spanning multiple regions. As a result, less than 47 percent of Capitol’s banking assets now reside in the Great Lakes Region. In addition, traditional margin-related revenue is being augmented by additional fee income sources, particularly the developing platform of our wealth management affiliate. With eleven de novo applications pending, we remain committed to our strategic objectives.”
About Capitol Bancorp Limited
Capitol Bancorp Limited (NYSE: CBC) is a $4.4 billion national community bank development company, with a network of more than 50 separately chartered banks and bank operations in 14 states. It is the holder of the most individual bank charters in the country. Capitol Bancorp Limited identifies opportunities for the development of new community banks, raises capital for and mentors new community banks through their formative stages, and provides efficient services to its growing network of community banks. Each community bank has full local decision-making authority and is managed by an on-site president under the direction of a local board of directors, composed of business leaders from the bank’s community. Founded in 1988, Capitol Bancorp Limited has executive offices in Lansing, Michigan, and Phoenix, Arizona.
CAPITOL BANCORP LIMITED | |
SUMMARY OF SELECTED FINANCIAL DATA | |
(in thousands, except share and per share data) | |
| | | | | | | | | | | | | | | | |
| | | Three Months Ended | | | | | | Six Months Ended | |
| | | June 30 | | | | | | June 30 | |
| | | 2007 | | | 2006 | | | | | | 2007 | | | 2006 | |
| | | | | | | | | | | | | | | | |
Condensed statements of operations: | | | | | | | | | | | | | | | |
| Interest income | | $ | 81,254 | | | $ | 68,196 | | | | | | $ | 159,093 | | | $ | 131,293 | |
| Interest expense | | | 35,712 | | | | 24,559 | | | | | | | 68,870 | | | | 46,303 | |
Net interest income | | | 45,542 | | | | 43,637 | | | | | | | 90,223 | | | | 84,990 | |
| Provision for loan losses | | | 3,990 | | | | 2,815 | | | | | | | 7,922 | | | | 5,271 | |
| Noninterest income | | | 5,843 | | | | 5,456 | | | | | | | 11,428 | | | | 10,566 | |
| Noninterest expense | | | 42,214 | | | | 36,614 | | | | | | | 84,037 | | | | 68,446 | |
| Income before income taxes | | | 8,644 | | | | 13,831 | | | | | | | 16,679 | | | | 28,165 | |
| | | | | | | | | | | | | | | | | | | | |
| Net income | | $ | 6,298 | | | $ | 10,267 | | | | | | $ | 12,569 | | | $ | 20,220 | |
| | | | | | | | | | | | | | | | | | | | |
Per share data: | | | | | | | | | | | | | | | | | | | |
| Net income - basic | | $ | 0.37 | | | $ | 0.65 | | | | | | $ | 0.75 | | | $ | 1.29 | |
| Net income - diluted | | | 0.37 | | | | 0.63 | | | | | | | 0.73 | | | | 1.24 | |
| Book value at end of period | | | 22.48 | | | | 19.95 | | | | | | | 22.48 | | | | 19.95 | |
| Common stock closing price at end of period | | $ | 27.33 | | | $ | 38.95 | | | | | | $ | 27.33 | | | $ | 38.95 | |
| Common shares outstanding at end of period | | | 17,256,000 | | | | 15,958,000 | | | | | | | 17,256,000 | | | | 15,958,000 | |
| Number of shares used to compute: | | | | | | | | | | | | | | | | | | | |
Basic earnings per share | | | 16,961,000 | | | | 15,706,000 | | | | | | | 16,829,000 | | | | 15,674,000 | |
Diluted earnings per share | | | 17,184,000 | | | | 16,412,000 | | | | | | | 17,222,000 | | | | 16,355,000 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | | 2nd Quarter | | | 1st Quarter | | | 4th Quarter | | | 3rd Quarter | | | 2nd Quarter | |
| | | 2007 | | | 2007 | | | 2006 | | | 2006 | | | 2006 | |
Condensed statements of financial position: | | | | | | | | | | | | | | | | | | | |
| Total assets | | $ | 4,439,279 | | | $ | 4,254,526 | | | $ | 4,065,816 | | | $ | 3,855,633 | | | $ | 3,722,642 | |
| Portfolio loans | | | 3,801,773 | | | | 3,620,981 | | | | 3,488,678 | | | | 3,307,222 | | | | 3,196,209 | |
| Deposits | | | 3,523,346 | | | | 3,392,035 | | | | 3,258,485 | | | | 3,114,206 | | | | 2,987,606 | |
| Stockholders' equity | | | 387,917 | | | | 381,992 | | | | 361,879 | | | | 327,791 | | | | 318,308 | |
| Total capital | | $ | 668,067 | | | $ | 661,650 | | | $ | 589,426 | | | $ | 542,734 | | | $ | 535,898 | |
| | | | | | | | | | | | | | | | | | | | | |
Key performance ratios: | | | | | | | | | | | | | | | | | | | | |
| Return on average assets | | | 0.58 | % | | | 0.61 | % | | | 1.16 | % | | | 1.14 | % | | | 1.13 | % |
| Return on average equity | | | 6.54 | % | | | 6.74 | % | | | 13.30 | % | | | 13.36 | % | | | 13.03 | % |
| Net interest margin | | | 4.53 | % | | | 4.67 | % | | | 4.82 | % | | | 5.08 | % | | | 5.17 | % |
| Efficiency ratio | | | 82.15 | % | | | 83.20 | % | | | 70.30 | % | | | 68.77 | % | | | 74.58 | % |
| | | | | | | | | | | | | | | | | | | | | |
Asset quality ratios: | | | | | | | | | | | | | | | | | | | | |
| Allowance for loan losses / portfolio loans | | | 1.30 | % | | | 1.30 | % | | | 1.30 | % | | | 1.37 | % | | | 1.36 | % |
| Total nonperforming loans / portfolio loans | | | 1.10 | % | | | 1.02 | % | | | 0.98 | % | | | 0.90 | % | | | 0.87 | % |
| Total nonperforming assets / total assets | | | 1.17 | % | | | 1.08 | % | | | 1.08 | % | | | 0.99 | % | | | 0.91 | % |
| Net charge-offs (annualized) / average portfolio loans | | | 0.18 | % | | | 0.26 | % | | | 0.38 | % | | | 0.19 | % | | | 0.14 | % |
| Allowance for loan losses / nonperforming loans | | | 118.28 | % | | | 128.00 | % | | | 132.50 | % | | | 151.05 | % | | | 156.12 | % |
| | | | | | | | | | | | | | | | | | | | | |
Capital ratios: | | | | | | | | | | | | | | | | | | | | |
| Stockholders' equity / total assets | | | 8.74 | % | | | 8.98 | % | | | 8.90 | % | | | 8.50 | % | | | 8.55 | % |
| Total capital / total assets | | | 15.05 | % | | | 15.55 | % | | | 14.50 | % | | | 14.08 | % | | | 14.40 | % |
Forward-Looking Statements |
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include expressions such as "expects", "intends", "believes" and "should" which are not necessarily statements of belief as to the expected outcomes of future events. Actual results could materially differ from those presented due to a variety of internal and external factors. Actual results could materially differ from those contained in, or implied by, such statements. Capitol Bancorp Limited undertakes no obligation to release revisions to these forward-looking statements or reflect events or circumstances after the date of this release. |
| Supplemental analyses follow providing additional detail regarding Capitol's results of operations, financial position, asset quality and other supplemental data. |
CAPITOL BANCORP LIMITED |
Condensed Consolidated Statements of Income (Unaudited) |
| (in thousands, except per share data) |
| | | | | | | | | | | | |
| | | Three Months Ended June 30 | | | Six Months Ended June 30 |
| | | 2007 | | | 2006 | | | 2007 | | | 2006 |
INTEREST INCOME: | | | | | | | | | | | |
| Portfolio loans (including fees) | | $ | 77,178 | | | $ | 64,577 | | | $ | 150,702 | | | $ | 124,720 |
| Loans held for sale | | | 390 | | | | 739 | | | | 1,336 | | | | 1,262 |
| Taxable investment securities | | | 193 | | | | 244 | | | | 401 | | | | 507 |
| Federal funds sold | | | 3,109 | | | | 2,010 | | | | 5,653 | | | | 3,828 |
| Other | | | 384 | | | | 626 | | | | 1,001 | | | | 976 |
| Total interest income | | | 81,254 | | | | 68,196 | | | | 159,093 | | | | 131,293 |
| | | | | | | | | | | | | | | | |
INTEREST EXPENSE: | | | | | | | | | | | | | | | |
| Deposits | | | 30,267 | | | | 20,397 | | | | 58,596 | | | | 38,179 |
| Debt obligations and other | | | 5,445 | | | | 4,162 | | | | 10,274 | | | | 8,124 |
| Total interest expense | | | 35,712 | | | | 24,559 | | | | 68,870 | | | | 46,303 |
| | | | | | | | | | | | | | | | |
| Net interest income | | | 45,542 | | | | 43,637 | | | | 90,223 | | | | 84,990 |
| | | | | | | | | | | | | | | | |
PROVISION FOR LOAN LOSSES | | | 3,990 | | | | 2,815 | | | | 7,922 | | | | 5,271 |
| Net interest income after provision | | | | | | | | | | | | | | | |
| for loan losses | | | 41,552 | | | | 40,822 | | | | 82,301 | | | | 79,719 |
| | | | | | | | | | | | | | | | |
NONINTEREST INCOME: | | | | | | | | | | | | | | | |
| Service charges on deposit accounts | | | 1,187 | | | | 1,103 | | | | 2,292 | | | | 2,134 |
| Trust and wealth-management revenue | | | 1,117 | | | | 768 | | | | 2,154 | | | | 1,635 |
| Fees from origination of non-portfolio | | | | | | | | | | | | | | | |
| residential mortgage loans | | | 1,305 | | | | 1,440 | | | | 2,612 | | | | 2,729 |
| Other | | | 2,234 | | | | 2,145 | | | | 4,370 | | | | 4,068 |
| Total noninterest income | | | 5,843 | | | | 5,456 | | | | 11,428 | | | | 10,566 |
| | | | | | | | | | | | | | | | |
NONINTEREST EXPENSE: | | | | | | | | | | | | | | | |
| Salaries and employee benefits | | | 26,437 | | | | 21,675 | | | | 52,509 | | | | 43,225 |
| Occupancy | | | 3,552 | | | | 2,918 | | | | 7,049 | | | | 5,596 |
| Equipment rent, depreciation and maintenance | | | 2,590 | | | | 2,047 | | | | 5,232 | | | | 4,013 |
| Other | | | 9,635 | | | | 9,974 | | | | 19,247 | | | | 15,612 |
| Total noninterest expense | | | 42,214 | | | | 36,614 | | | | 84,037 | | | | 68,446 |
| | | | | | | | | | | | | | | | |
| Income before income taxes and minority interest | | | 5,181 | | | | 9,664 | | | | 9,692 | | | | 21,839 |
| | | | | | | | | | | | | | | | |
| Income taxes | | | 2,346 | | | | 3,564 | | | | 4,110 | | | | 7,945 |
| Income before minority interest | | | 2,835 | | | | 6,100 | | | | 5,582 | | | | 13,894 |
| | | | | | | | | | | | | | | | |
| Minority interest in net losses | | | | | | | | | | | | | | | |
| of consolidated subsidiaries | | | 3,463 | | | | 4,167 | | | | 6,987 | | | | 6,326 |
| | | | | | | | | | | | | | | | |
NET INCOME | | $ | 6,298 | | | $ | 10,267 | | | $ | 12,569 | | | $ | 20,220 |
| | | | | | | | | | | | | | | | |
NET INCOME PER SHARE: | | | | | | | | | | | | | | | |
| Basic | | $ | 0.37 | | | $ | 0.65 | | | $ | 0.75 | | | $ | 1.29 |
| | | | | | | | | | | | | | | | |
| Diluted | | $ | 0.37 | | | $ | 0.63 | | | $ | 0.73 | | | $ | 1.24 |
CAPITOL BANCORP LIMITED | |
Condensed Consolidated Balance Sheets | |
| (in thousands, except share data) | |
| | | | | | | | |
| | | | | | | | |
| | | | (Unaudited) | | | | |
| | | | June 30 | | | December 31 | |
| | | | 2007 | | | 2006 | |
ASSETS | | | | | | | |
| | | | | | | | |
| Cash and due from banks | | | $ | 184,439 | | | $ | 169,753 | |
| Money market and interest-bearing deposits | | | 9,389 | | | | 37,204 | |
| Federal funds sold | | | | 216,633 | | | | 141,913 | |
| Cash and cash equivalents | | | 410,461 | | | | 348,870 | |
| Loans held for sale | | | | 21,356 | | | | 34,593 | |
| Investment securities: | | | | | | | | | |
| Available for sale, carried at market value | | | 15,377 | | | | 18,904 | |
| Held for long-term investment, carried at | | | | | | | | |
| amortized cost which approximates market value | | | 22,697 | | | | 21,749 | |
| Total investment securities | | | 38,074 | | | | 40,653 | |
| Portfolio loans: | | | | | | | | | |
| Commercial | | | | 3,398,448 | | | | 3,103,125 | |
| Real estate mortgage | | | | 256,845 | | | | 259,604 | |
| Installment | | | | 146,480 | | | | 125,949 | |
| Total portfolio loans | | | 3,801,773 | | | | 3,488,678 | |
| Less allowance for loan losses | | | | (49,349 | ) | | | (45,414 | ) |
| Net portfolio loans | | | 3,752,424 | | | | 3,443,264 | |
| Premises and equipment | | | | 56,869 | | | | 54,295 | |
| Accrued interest income | | | | 18,249 | | | | 17,524 | |
| Goodwill and other intangibles | | | | 70,539 | | | | 62,215 | |
| Other assets | | | | 71,307 | | �� | | 64,402 | |
| | | | | | | | | | |
TOTAL ASSETS | | | $ | 4,439,279 | | | $ | 4,065,816 | |
| | | | | | | | | | |
| | | | | | | | | | |
LIABILITIES AND STOCKHOLDERS' EQUITY | | | | | | | | |
| | | | | | | | | | |
| LIABILITIES: | | | | | | | | | |
| Deposits: | | | | | | | | | |
| Noninterest-bearing | | | $ | 638,173 | | | $ | 651,253 | |
| Interest-bearing | | | | 2,885,173 | | | | 2,607,232 | |
| Total deposits | | | 3,523,346 | | | | 3,258,485 | |
| Debt obligations: | | | | | | | | | |
| Notes payable and short-term borrowings | | | 219,934 | | | | 191,154 | |
| Subordinated debentures | | | | 156,082 | | | | 101,035 | |
| Total debt obligations | | | 376,016 | | | | 292,189 | |
| Accrued interest on deposits and other liabilities | | | 27,932 | | | | 26,751 | |
| Total liabilities | | | 3,927,294 | | | | 3,577,425 | |
| | | | | | | | | | |
| MINORITY INTERESTS IN CONSOLIDATED SUBSIDIARIES | | | 124,068 | | | | 126,512 | |
| | | | | | | | | | |
| STOCKHOLDERS' EQUITY: | | | | | | | | | |
| Common stock, no par value, 50,000,000 shares authorized; | | | | | | | | |
issued and outstanding: 2007 - 17,255,622 shares | | | | | | | | | |
| 2006 - 16,656,481 shares | | | | 271,292 | | | | 249,244 | |
| Retained earnings | | | | 116,804 | | | | 112,779 | |
| Market value adjustment (net of tax effect) for | | | | | | | | |
| investment securities available for sale (accumulated | | | | | | | | |
| other comprehensive income/loss) | | | | (179 | ) | | | (144 | ) |
| Total stockholders' equity | | | 387,917 | | | | 361,879 | |
| | | | | | | | | | |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | | $ | 4,439,279 | | | $ | 4,065,816 | |
CAPITOL BANCORP LIMITED
Allowance for Loan Losses and Asset Quality Data
ALLOWANCE FOR LOAN LOSSES ACTIVITY (in thousands):
| | Periods Ended June 30 | |
| | Three Month Period | | | Six Month Period | |
| | 2007 | | | 2006 | | | 2007 | | | 2006 | |
| Allowance for loan losses at beginning of period | $ | 47,052 | | | $ | 41,600 | | | $ | 45,414 | | | $ | 40,559 | |
| | | | | | | | | | | | | | | | |
| Loans charged-off: | | | | | | | | | | | | | | | |
| Commercial | | (1,662 | ) | | | (1,402 | ) | | | (4,106 | ) | | | (3,120 | ) |
| Real estate mortgage | | (296 | ) | | | (23 | ) | | | (296 | ) | | | (48 | ) |
| Installment | | (110 | ) | | | (121 | ) | | | (303 | ) | | | (233 | ) |
| Total charge-offs | | (2,068 | ) | | | (1,546 | ) | | | (4,705 | ) | | | (3,401 | ) |
| Recoveries: | | | | | | | | | | | | | | | |
| Commercial | | 325 | | | | 342 | | | | 567 | | | | 695 | |
| Real estate mortgage | | 2 | | | | -- | | | | 3 | | | | 1 | |
| Installment | | 48 | | | | 100 | | | | 148 | | | | 186 | |
| Total recoveries | | 375 | | | | 442 | | | | 718 | | | | 882 | |
| Net charge-offs | | (1,693 | ) | | | (1,104 | ) | | | (3,987 | ) | | | (2,519 | ) |
| Additions to allowance charged to expense | | 3,990 | | | | 2,815 | | | | 7,922 | | | | 5,271 | |
| | | | | | | | | | | | | | | | |
| Allowance for loan losses at June 30 | $ | 49,349 | | | $ | 43,311 | | | $ | 49,349 | | | $ | 43,311 | |
| | | | | | | | | | | | | | | | |
Average total portfolio loans for period ended June 30 | $ | 3,708,267 | | | $ | 3,121,206 | | | $ | 3,633,402 | | | $ | 3,066,333 | |
| | | | | | | | | | | | | | | | |
Ratio of net charge-offs (annualized) to average portfolio loans outstanding | | 0.18 | % | | | 0.14 | % | | | 0.22 | % | | | 0.16 | % |
ASSET QUALITY (in thousands):
| | June 30 | | | Dec 31 |
| | 2007 | | | 2006 |
| Nonaccrual loans: | |
| Commercial | $ | 35,261 | | | $ | 25,219 |
| Real estate mortgage | | 3,475 | | | | 3,609 |
| Installment | | 1,363 | | | | 898 |
| Total nonaccrual loans | | 40,099 | | | | 29,726 |
| | | | | | | |
| Past due (>90 days) loans: | | | | | | |
| Commercial | | 1,352 | | | | 3,860 |
| Real estate mortgage | | 230 | | | | 523 |
| Installment | | 40 | | | | 165 |
| Total past due loans | | 1,622 | | | | 4,548 |
| | | | | | | |
| Total nonperforming loans | $ | 41,721 | | | $ | 34,274 |
| | | | | | | |
| Real estate owned and other repossessed assets | | 10,087 | | | | 9,478 |
| | | | | | | |
| Total nonperforming assets | $ | 51,808 | | | $ | 43,752 |
CAPITOL BANCORP LIMITED
Selected Supplemental Data
EPS COMPUTATION COMPONENTS (in thousands):
| | | Three Months Ended June 30 | | | Six Months Ended June 30 | |
| | | 2007 | | | 2006 | | | 2007 | | | 2006 | |
| | | | | | | | | | | | | |
| Numerator—net income for the period | | $ | 6,298 | | | $ | 10,267 | | | $ | 12,569 | | | $ | 20,220 | |
| | | | | | | | | | | | | | | | | |
| Denominator: | | | | | | | | | | | | | | | | |
Weighted average number of shares outstanding, excluding unvested restricted shares (denominator for basic earnings per share) | | | 16,961 | | | | 15,706 | | | | 16,829 | | | | 15,674 | |
| | | | | | | | | | | | | | | | | |
| Effect of dilutive securities: | | | | | | | | | | | | | | | | |
| Unvested restricted shares | | | 15 | | | | 56 | | | | 42 | | | | 56 | |
| Stock options | | | 208 | | | | 650 | | | | 351 | | | | 625 | |
| Total effect of dilutive securities | | | 223 | | | | 706 | | | | 393 | | | | 681 | |
| Denominator for diluted earnings per share— | | | | | | | | | | | | | | | | |
Weighted average number of shares and potential dilution | | | 17,184 | | | | 16,412 | | | | 17,222 | | | | 16,355 | |
| | | | | | | | | | | | | | | | | |
Number of antidilutive stock options excluded from diluted earnings per share computation | | | 1,063 | | | | -- | | | | 368 | | | | -- | |
AVERAGE BALANCES (in thousands):
| | | Three Months Ended June 30 | | | Six Months Ended June 30 | |
| | | 2007 | | | 2006 | | | 2007 | | | 2006 | |
| | | | | | | | | | | | | |
| Portfolio loans | | $ | 3,708,267 | | | $ | 3,121,206 | | | $ | 3,633,402 | | | $ | 3,066,333 | |
| Earning assets | | | 4,017,948 | | | | 3,378,217 | | | | 3,926,022 | | | | 3,323,078 | |
| Total assets | | | 4,328,592 | | | | 3,625,174 | | | | 4,233,762 | | | | 3,569,638 | |
| Deposits | | | 3,433,081 | | | | 2,927,890 | | | | 3,378,825 | | | | 2,877,424 | |
| Stockholders’ equity | | | 385,129 | | | | 315,080 | | | | 378,217 | | | | 310,850 | |
Capitol Bancorp’s National Network of Community Banks
Eastern Regions | |
Great Lakes Region: | |
| Ann Arbor Commerce Bank | Ann Arbor, Michigan |
| Bank of Auburn Hills | Auburn Hills, Michigan |
| Bank of Belleville | Belleville, Illinois |
| Bank of Maumee | Maumee, Ohio |
| Bank of Michigan | Farmington Hills, Michigan |
| Brighton Commerce Bank | Brighton, Michigan |
| Capitol National Bank | Lansing, Michigan |
| Detroit Commerce Bank | Detroit, Michigan |
| Elkhart Community Bank | Elkhart, Indiana |
| Evansville Commerce Bank | Evansville, Indiana |
| Goshen Community Bank | Goshen, Indiana |
| Grand Haven Bank | Grand Haven, Michigan |
| Kent Commerce Bank | Grand Rapids, Michigan |
| Macomb Community Bank | Clinton Township, Michigan |
| Muskegon Commerce Bank | Muskegon, Michigan |
| Oakland Commerce Bank | Farmington Hills, Michigan |
| Ohio Commerce Bank | Beachwood, Ohio |
| Paragon Bank & Trust | Holland, Michigan |
| Portage Commerce Bank | Portage, Michigan |
| | |
Midwest Region: | |
| Summit Bank of Kansas City | Lee’s Summit, Missouri |
| | |
Southeast Region: | |
| Bank of Valdosta | Valdosta, Georgia |
| Community Bank of Rowan | Salisbury, North Carolina |
| First Carolina State Bank | Rocky Mount, North Carolina |
| Peoples State Bank | Jeffersonville, Georgia |
| Sunrise Bank of Atlanta | Atlanta, Georgia |
| | |
Western Regions | |
Southwest Region: | |
| 1st Commerce Bank | Las Vegas, Nevada |
| Arrowhead Community Bank | Glendale, Arizona |
| Asian Bank of Arizona | Phoenix, Arizona |
| Bank of Las Vegas | Las Vegas, Nevada |
| Bank of Tucson | Tucson, Arizona |
| Black Mountain Community Bank | Henderson, Nevada |
| Camelback Community Bank | Phoenix, Arizona |
| Desert Community Bank | Las Vegas, Nevada |
| Fort Collins Commerce Bank | Fort Collins, Colorado |
| Larimer Bank of Commerce | Fort Collins, Colorado |
| Mesa Bank | Mesa, Arizona |
| Red Rock Community Bank | Las Vegas, Nevada |
| Southern Arizona Community Bank | Tucson, Arizona |
| Sunrise Bank – Dallas LPO | Dallas, Texas |
| Sunrise Bank – Houston LPO | Houston, Texas |
| Sunrise Bank of Albuquerque | Albuquerque, New Mexico |
| Sunrise Bank of Arizona | Phoenix, Arizona |
| Valley First Community Bank | Scottsdale, Arizona |
| Yuma Community Bank | Yuma, Arizona |
| | |
California Region: | |
| Bank of Escondido | Escondido, California |
| Bank of San Francisco | San Francisco, California |
| Bank of Santa Barbara | Santa Barbara, California |
| Napa Community Bank | Napa, California |
| Point Loma Community Bank | Point Loma, California |
| Sunrise Bank of San Diego | San Diego, California |
| Sunrise Community Bank | Palm Desert, California |
| | |
Northwest Region: | |
| Bank of Bellevue | Bellevue, Washington |
| Bank of Everett | Everett, Washington |
| Bank of Tacoma | Tacoma, Washington |
| Issaquah Community Bank | Issaquah, Washington |
