Discontinued Operations

6 Months Ended

Jun. 30, 2013

Discontinued Operations [Abstract]

Discontinued Operations

Note G – Discontinued Operations

During the six months ended June 30, 2013, 1^st Commerce Bank, Central Arizona Bank, Pisgah Community Bank and Sunrise Bank were closed either by their state regulators or the FDIC (see Note M).  Capitol recorded a net loss of $1,258,000 on its investment in these banks, which has been included in discontinued operations.

The assets, liabilities and results of operations of 1^st Commerce Bank, Central Arizona Bank, Pisgah Community Bank and Sunrise Bank, closed in 2013, together with the results of operations of Mountain View Bank of Commerce, Bank of Michigan, First Carolina State Bank and High Desert Bank, sold in 2012, are classified as discontinued operations for the three and six months ended June 30, 2013 and 2012 and include the following components (in $1,000s):

	Three Months Ended						Six Months Ended
	June 30						June 30
	2013			2012			2013			2012
Interest income	$	577		$	3,553		$	1,825		$	7,774
Interest expense		114			846			374			1,796
Net interest income		463			2,707			1,451			5,978
Provision for loan losses		-			165			(787	)		830
Net interest income after provision for  loan losses		463			2,542			2,238			5,148
Noninterest income		53			587			282			1,093
Gain (loss) on bank subsidiaries discontinued		(1,258	)		-			(1,258	)		126
Noninterest expense		1,170			4,546			3,040			9,556
Loss before income taxes		(1,912	)		(1,417	)		(1,778	)		(3,189	)
Less income taxes (benefit)		-			80			-			62
Net loss from discontinued operations		(1,912	)		(1,497	)		(1,778	)		(3,251	)
Net loss attributable to noncontrolling interests  in consolidated subsidiaries		264			363			327			1,095
Net loss from discontinued operations attributable to Capitol Bancorp Limited	$	(1,648	)		(1,134	)		(1,451	)		(2,156	)
Net loss from discontinued operations per common share attributable to Capitol Bancorp Limited	$	(0.04	)		(0.03	)		(0.04	)		(0.05	)

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

	Dec 31, 2012				Dec 31, 2012
Assets:				Liabilities:
Cash and cash equivalents	$	37,113		Noninterest-bearing deposits	$	20,883
Investment securities		21		Interest-bearing deposits		119,134
Federal Home Loan Bank stock		684		Total deposits		140,017
Portfolio loans		100,049		Other liabilities		3,318
Less allowance for loan losses		(6,839	)
Net portfolio loans		93,210			$	143,335
Premises and equipment		1,800
Other real estate owned		11,913
Other assets		1,739
	$	146,480

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

CAPITOL BANCORP LIMITED (DEBTOR-IN-POSSESSION)