Michigan-based Northstar Financial Group agreed to pay Lansing-based Capitol Bancorp Limited $52 million in cash for four affiliate banks. The affiliate banks include Grand Haven Bank, Kent Commerce Bank, Muskegon Commerce Bank and Paragon Bank & Trust.
According to excerpts from the article:
Northstar Financial Group has a family of three community banks, two in Michigan and one in Florida, with a combined asset value of more than $500 million. John Booms, President of Northstar Financial Group, said that he is pleased to add four strong community banks with combined assets exceeding $400 million to the family. John Pattison, a banking professional, willbe the coordinator of the banking activities of the four banks.
Capitol Bancorp said that the deal is part of its geographical diversification strategy. Commenting on the deal, Capitol Bancorp Chairman and Chief Executive Officer Joseph Reid said, “This transaction will enable Capitol Bancorp to continue its national expansion by redeploying capital into new markets to further support its foundation."
Reid added, "This transaction will serve to help balance our level of banking assets in the state, placing Michigan on par with Capitol Bancorp's presence in the states of Arizona and California."
Read the entire article here.
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