Capitol Bancorp receives OK to consolidate Arizona banks

Capitol Bancorp Ltd. has received the go-ahead to consolidate six affiliate banks in Arizona: Arrowhead Community Bank, Asian Bank of Arizona, Camelback Community Bank, Colonia Bank, Mesa Bank and Sunrise Bank of Arizona. As of Monday the six will operate as Sunrise Bank of Arizona, part of an effort of Michigan-based Capitol (NYSE:CBC) to preserve core capital and enhance its balance sheet strength. John Lewis, president of bank performance for Capitol, will serve as Sunrise chairman, president and CEO. Other members of the executive management team are Gail Grace, president of commercial lending; Douglas White, COO: and James Klussman, chief credit officer. The move was first reported in March and followed by plans for a similar combination in Las Vegas. Capitol announced Monday that the Arizona consolidation received approval from regulators and shareholders. “This merger of resources will improve operational efficiencies and strengthen risk management practices,” said Capitol Chairman Joseph Reid. Capitol Bancorp is a $5.4 billion national bank holding company, with separately chartered banks in 17 states and executive offices in Lansing, Mich., and Phoenix.

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