-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, M/dQPXvfcrJdSxQzQUKvbKkDz36E6R3uckSKslVvHCJM4X6rJ6Z9KxkaVzkfBli3 6LrAYTXUU8uYwDGTEyP7WQ== 0000950147-03-000827.txt : 20030715 0000950147-03-000827.hdr.sgml : 20030715 20030715160318 ACCESSION NUMBER: 0000950147-03-000827 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030715 ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20030715 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CAPITOL BANCORP LTD CENTRAL INDEX KEY: 0000840264 STANDARD INDUSTRIAL CLASSIFICATION: NATIONAL COMMERCIAL BANKS [6021] IRS NUMBER: 382761672 STATE OF INCORPORATION: MI FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-31708 FILM NUMBER: 03787369 BUSINESS ADDRESS: STREET 1: ONE BUSINESS & TRADE CNTR STREET 2: 200 WASHINGTON SQ N CITY: LANSING STATE: MI ZIP: 48933 BUSINESS PHONE: 5174876555 MAIL ADDRESS: STREET 1: ONE BUSINESS & TRADE CENTER STREET 2: 200 WASHINGTON SQUARE NORTH CITY: LANSING STATE: MI ZIP: 48933 8-K 1 e-10191.txt CURRENT REPORT DATED 7/15/03 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of Earliest Event Reported): July 15, 2003 ------------------------------ (July 15, 2003) ------------------------------ CAPITOL BANCORP LTD. - -------------------------------------------------------------------------------- (Exact name of Registrant as specified in its charter) Michigan 33-24728C 38-2761672 - -------------------------------------------------------------------------------- (State or other (Commission (IRS Employer jurisdiction of file number) identification incorporation) number) Capitol Bancorp Center 200 Washington Square North Lansing, Michigan 48933 - -------------------------------------------------------------------------------- (address of principal executive offices) (517) 487-6555 - -------------------------------------------------------------------------------- (registrant's telephone number, including area code) Not Applicable - -------------------------------------------------------------------------------- (former name or former address, if changed since last report) Page 1 of 2 ITEM 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION. Registrant is reporting hereunder its earnings announcement for the period ended June 30, 2003 as set forth in Exhibit 99 which is attached hereto, dated July 15, 2003. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. CAPITOL BANCORP LTD. ---------------------------------------- (Registrant) \s\ Joseph D. Reid ---------------------------------------- Joseph D. Reid, Chairman, President and Chief Executive Officer DATED: July 15, 2003 Page 2 of 2 EX-99 3 ex99.txt PRESS RELEASE RELATING TO EARNINGS RELEASE Exhibit 99 EXHIBIT TO ITEM 12 OF FORM 8-K [LOGO] 200 Washington Square North CAPITOL BANCORP LIMITED Lansing, MI 48933 2777 East Camelback Road, Suite 375 Phoenix, AZ 85016 www.capitolbancorp.com Analyst Contact: Michael M. Moran Chief of Capital Markets 877-884-5662 Media Contact: Joal Redmond Corporate Communications 602-977-3797 FOR IMMEDIATE DISTRIBUTION: CAPITOL BANCORP LIMITED ANNOUNCES RECORD 2003 SECOND QUARTER RESULTS WITH A 46% INCREASE IN EARNINGS TO $5.7 MILLION, AS EARNINGS PER SHARE INCREASE 29% VERSUS 2002 LANSING, MICH., AND PHOENIX, ARIZ.: JULY 15, 2003: Today, Capitol Bancorp Limited (NYSE:CBC) reported second quarter 2003 record earnings per share (EPS) of $0.45 on a diluted basis, a 29 percent increase versus the $0.35 reported in the second quarter of 2002. Net earnings reached $5.7 million, up 46 percent from the same period in 2002, while total earnings for the first six months of 2003 exceeded $11 million, up 58 percent from the first half of 2002. Total assets grew to over $2.6 billion reflecting an annualized growth rate of 17 percent, and were up an identical 17 percent from the $2.2 billion at the end of the second quarter of 2002. Total deposits exceeded $2.2 billion at June 30, 2003, an 18 percent increase over June 30, 2002. Despite a sluggish national economy, total portfolio loans of $2.1 billion grew 10 percent year-over-year, reflecting management's continued attention to prudently building earning assets during these volatile times. Commenting on the company's performance, Joseph D. Reid, chairman and CEO, said, "Our record second quarter results continue to validate the Capitol Bancorp operating model which focuses on steady growth through continued strong service and quality-oriented delivery at the community level, and by looking for opportunities to develop banks in new markets. "We focus on responsible, well-managed growth. It takes diligence and determination to be consistent, and we believe we have the disciplines in place that enable us to respond to market conditions, allowing us to stay on course. Despite the combined impact of a sluggish economy and a low interest rate environment, our strong quarterly record earnings performance is testament to those disciplines, " said Reid. Page 1 of 4 RECORD QUARTERLY EARNINGS PERFORMANCE Consolidated earnings reached another record quarterly level for Capitol Bancorp at $5.7 million, up 46 percent compared to the second quarter of 2002. An increase of more than 19 percent in net operating revenues when compared to 2002, a quarterly record of $33.2 million, was fueled by an expanding earning-asset base, a steady margin and a solid 52 percent increase in noninterest income. Even with a more than 17 percent increase in Capitol's outstanding share base year-over-year, from approximately 10.7 million to 12.6 million shares, reflecting minority interest consolidations at the affiliate level and a 550,000 share institutionally-directed private placement in mid-April 2003, Capitol Bancorp reported a 29 percent increase in diluted earnings per share. RECORD SIX MONTH OPERATING RESULTS For the six months ended June 30, 2003, net operating revenues of $64.7 million increased 21 percent when compared to the $53.5 million recorded in the comparable six-month period of 2002. Earnings of more than $11 million for the first half of 2003 reflect solid 58 percent growth when compared to the approximate $7 million generated in the corresponding 2002 period. On an EPS basis, Capitol Bancorp reported basic ($0.92) and diluted ($0.89) figures for the first six months of 2003 that were 23 percent and 22 percent, respectively, ahead of 2002's comparable period levels of $0.75 and $0.73. Continued improved operating leverage, as the 21 percent increase in net operating revenues easily outpaced the organization's 14 percent expansion in its operating expense base, contributed to Capitol Bancorp's solid six-month performance. BALANCE SHEET Capitol Bancorp's equity-to-asset ratio improved from 5.8 percent at June 30, 2002 to approximately 6.9 percent at June 30, 2003, while its total capital-to-assets ratio remains a healthy 10.5 percent. Reflecting the lingering effects of a softening economy and the often lagging implications on asset quality measures, both nonperforming loans and nonperforming assets have increased from year-end levels, but only modestly from March 31, 2003. Annualized consolidated net charge-offs of 0.31 percent through the first six months of 2003 are within the range experienced by the Corporation over the past 12-18 months, reflecting the normal ebb and flow of these ratios as loans move through the collection process. The Corporation's allowance for loan losses (as a percentage of total portfolio loans) at June 30, 2003 was 1.42 percent versus 1.45 percent at year-end 2002 and 1.39 percent at the end of last year's second quarter. Page 2 of 4 Page 3 of 4 CAPITOL BANCORP LIMITED SUMMARY OF SELECTED FINANCIAL DATA (in $1,000s, except share and per share data)
THREE MONTHS ENDED JUNE 30 SIX MONTHS ENDED JUNE 30 -------------------------- -------------------------- 2003 2002 2003 2002 ----------- ----------- ----------- ----------- CONDENSED STATEMENTS OF OPERATIONS: Interest income $ 41,087 $ 38,561 $ 81,073 $ 75,816 Interest expense 13,121 14,140 26,120 28,572 ----------- ----------- ----------- ----------- Net interest income 27,966 24,421 54,953 47,244 Provision for loan losses 1,826 2,684 3,716 4,774 Noninterest income 5,217 3,424 9,746 6,222 Noninterest expense 21,953 19,040 43,109 37,833 Income before federal income taxes 8,905 6,064 17,162 10,651 Net income $ 5,694 $ 3,913 $ 11,007 $ 6,957 =========== =========== =========== =========== PER SHARE DATA: Net income - basic $ 0.46 $ 0.37 $ 0.92 $ 0.75 Net income - diluted 0.45 0.35 0.89 0.73 Book value at end of period 14.31 12.16 14.31 12.16 Common stock closing price at end of period $ 27.10 $ 23.84 $ 27.10 $ 23.84 Common shares outstanding at end of period 12,567,000 10,705,000 12,567,000 10,705,000 Number of shares used to compute: Basic earnings per share 12,347,000 10,685,000 12,024,000 9,301,000 Diluted earnings per share 12,771,000 11,187,000 12,409,000 9,541,000 2ND QUARTER 1ST QUARTER 4TH QUARTER 3RD QUARTER 2ND QUARTER 2003 2003 2002 2002 2002 ----------- ----------- ----------- ----------- ----------- CONDENSED STATEMENTS OF FINANCIAL POSITION: Total assets $ 2,614,376 $ 2,540,289 $ 2,409,288 $ 2,347,594 $ 2,233,766 Portfolio loans 2,083,985 2,052,157 1,991,372 1,958,820 1,897,776 Deposits 2,243,139 2,181,440 2,062,072 2,018,051 1,908,359 Stockholders' equity 179,856 164,471 160,037 144,838 130,223 Total capital $ 273,892 $ 257,578 $ 239,635 $ 230,747 $ 222,151 KEY PERFORMANCE RATIOS: Return on average assets 0.88% 0.86% 0.87% 0.78% 0.71% Return on average equity 13.23% 13.10% 14.27%* 13.47%** 12.20% Net interest margin 4.71% 4.71% 4.93% 4.90% 4.80% Efficiency ratio 66.16% 67.13% 64.19% 62.38% 68.38% ASSET QUALITY RATIOS: Allowance for loan losses / portfolio loans 1.42% 1.46% 1.45% 1.42% 1.39% Total nonperforming loans / portfolio loans 1.28% 1.27% 1.15% 1.34% 1.23% Total nonperforming assets / total assets 1.22% 1.20% 1.15% 1.28% 1.16% Net charge-offs (annualized) / average portfolio loans 0.46% 0.16% 0.59% 0.48% 0.24% Allowance for loan losses / nonperforming loans 110.24% 115.60% 126.49% 106.07% 112.87% CAPITAL RATIOS: Shareholders' equity / total assets 6.88% 6.47% 6.64% 6.17% 5.83% Total capital / total assets 10.48% 10.14% 9.95% 9.83% 9.95%
* As adjusted for East Valley Community Bank and Detroit Commerce Bank share exchanges consummated effective December 31, 2002. Also adjusted for Nevada Community Bancorp share exchange consummated effective January 17, 2003, as if it occurred December 31, 2002. ** As adjusted for Sunrise Capital Corporation and Indiana Community Bancorp Limited share exchanges consummated on September 30, 2002. - -------------------------------------------------------------------------------- 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. - -------------------------------------------------------------------------------- ABOUT CAPITOL BANCORP LIMITED CAPITOL BANCORP LIMITED is a $2.6 billion community bank development company, with 29 individual bank charters operating in eight states. Capitol Bancorp Limited identifies opportunities for the development of new community banks, raises capital and mentors a community bank through its formative stages. 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. Capitol Bancorp Limited was founded in 1988 and has headquarters in Lansing, Mich. and Phoenix, Ariz. The company was named to FORTUNE magazine's 100 fastest-growing small public companies in the country in July 2003. Capitol Bancorp's operations include the following banks and loan production offices (LPO): Community IN ARIZONA: --------- Arrowhead Community Bank Glendale Bank of Tucson Tucson Camelback Community Bank Phoenix East Valley Community Bank Chandler Mesa Bank Mesa Southern Arizona Community Bank Tucson Sunrise Bank of Arizona Phoenix Valley First Community Bank Scottsdale Yuma Community Bank Yuma IN CALIFORNIA: Bank of Escondido (proposed) Escondido Napa Community Bank Napa Sunrise Bank of San Diego San Diego Sunrise Bank - Orange County LPO Irvine IN GEORGIA: Sunrise Bank - Atlanta LPO Atlanta IN INDIANA: Elkhart Community Bank Elkhart Goshen Community Bank Goshen IN MICHIGAN: Ann Arbor Commerce Bank Ann Arbor Brighton Commerce Bank Brighton Capitol National Bank Lansing Detroit Commerce Bank Detroit Grand Haven Bank Grand Haven Kent Commerce Bank Grand Rapids Macomb Community Bank Clinton Township Muskegon Commerce Bank Muskegon Oakland Commerce Bank Farmington Hills Paragon Bank & Trust Holland Portage Commerce Bank Portage IN NEVADA: Bank of Las Vegas Las Vegas Black Mountain Community Bank Henderson Desert Community Bank Las Vegas Red Rock Community Bank Las Vegas IN NEW MEXICO: Sunrise Bank of Albuquerque Albuquerque IN TEXAS: Sunrise Bank - Dallas LPO Dallas Sunrise Bank - Houston LPO Houston Page 4 of 4 -----END PRIVACY-ENHANCED MESSAGE-----