Discontinued Operations

9 Months Ended

Sep. 30, 2012

Discontinued Operations [Abstract]

Discontinued Operations

Note F – Discontinued Operations

During the nine months ended September 30, 2012, Capitol completed the following sales of bank subsidiaries (in $1,000s):

		Sale		Gain
	Date Sold	Proceeds		(Loss)
Mountain View Bank of Commerce(1)	January 30, 2012	$	4,060	$	126
Bank of Michigan(2)	July 27, 2012		3,611		(260	)
First Carolina State Bank(2)	July 30, 2012		1,269		289
		$	8,940	$	155

(1) Previously a majority-owned subsidiary of a bank-development subsidiary controlled by Capitol.

(2) Previously a majority-owned subsidiary of Capitol.

The assets, liabilities and results of operations of Mountain View Bank of Commerce, Bank of Michigan and First Carolina State Bank, together with the results of operations of banks sold in 2011, including Bank of Feather River, Bank of Fort Bend, Bank of Las Colinas, Bank of the Northwest, Bank of Tucson – main office, Community Bank of Rowan, Evansville Commerce Bank and Sunrise Bank, are classified as discontinued operations for the periods presented and include the following components (in $1,000s):

	Three Months Ended September 30						Nine Months Ended September 30
	2012			2011			2012		2011
Interest income	$	582		$	5,800		$	4,278	$	25,661
Interest expense		129			1,111			985		4,631
Net interest income		453			4,689			3,293		21,030
Provision for loan losses		63			2,015			624		6,870
Net interest income after provision for loan losses		390			2,674			2,669		14,160
Noninterest income		175			782			883		3,061
Gain (loss) on sale of bank subsidiaries		29			(56	)		155		4,496
Noninterest expense		496			4,366			3,450		18,447
Income (loss) before income taxes		98			(966	)		257		3,270
Less income tax expense		39			63			101		1,871
Net income (loss) from discontinued operations		59			(1,029	)		156		1,399
Net (income) loss attributable to noncontrolling interests in consolidated subsidiaries		(15	)		328			51		880
Net income (loss) from discontinued operations attributable to Capitol Bancorp Limited	$	44		$	(701	)	$	207	$	2,279
Net income from discontinued operations per common share attributable to Capitol Bancorp Limited	$	--		$	(0.02	)	$	0.01	$	0.06

Assets and liabilities of discontinued operations are summarized below (in $1,000s):

	Dec 31, 2011				Dec 31, 2011
Assets:				Liabilities:
Cash and cash equivalents	$	40,575		Noninterest-bearing deposits	$	27,292
Investment securities		10,199		Interest-bearing deposits		165,864
Federal Home Loan Bank stock		957		Total deposits		193,156
Portfolio loans		163,156		Other liabilities		12,600
Less allowance for loan losses		(6,535	)
Net portfolio loans		156,621			$	205,756
Premises and equipment		3,452
Other real estate owned		5,949
Other assets		4,745
	$	222,498