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Tuesday, December 26, 2006 5:32 PM ET
Capitol Bancorp to open thrifts in states that prohibit nonlocal bank holding companies


Capitol Bancorp Ltd. CEO Joseph Reid said the company will begin opening OTS-chartered de novo thrifts instead of state-chartered banks in certain states because of looser state regulations governing de novo thrifts.

Reid told SNL Financial Dec. 26 that any additional Capitol Bancorp de novos in Ohio will have OTS charters. He said Capitol Bancorp decided to stop opening Ohio-chartered banks because it is too expensive. To keep things consistent, the company's two existing Ohio de novos have applied to convert to thrifts.

Maumee, Ohio-based Bank of Maumee and Beachwood, Ohio-based Ohio Commerce Bank filed applications on Dec. 20 and Dec. 18, respectively, to change from state commercial banks to federal savings banks.

Capitol Bancorp holds 50 separately chartered banks in 14 states. Bank of Maumee and Ohio Commerce Bank will be the company's first thrift charters.

Reid said that Capitol Bancorp plans to open additional OTS-chartered institutions in other states that do not allow out-of-state holding companies to open de novo banks. He cited Texas, Oregon, Missouri, South Carolina and Kansas as examples.

Ohio Commerce Bank opened Nov. 2 and Bank of Maumee opened Oct. 2.

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