It is widely known that Michigan and Ohio have experienced serious economic challenges
during the last two years. What is not as well known is that we continue to enjoy
pockets of opportunity in the region.
Ann Arbor Commerce Bank, Brighton Commerce Bank and Capitol National Bank, each
a mature bank, continue to strengthen their core commercial banking operations by
concentrating on relationship building within their respective local communities.
Our de novo banks, Bank of Auburn Hills, Bank of Michigan, Ohio Commerce Bank and
Bank of Maumee, have each made good progress during 2008. Current and future economic
prospects have encouraged us to reexamine aspects of our Michigan operations to
develop a more cost-efficient business strategy. To that end, we have centralized
certain deposit and loan operation functions at banks that are geographically close
to one another. This reorganization will provide significant operational cost savings
while improving asset quality and credit administration through enhanced underwriting
and monitoring procedures. Ongoing analysis of our loan portfolios is a priority.
Bank presidents and their senior management teams have worked diligently to strengthen
their banks. I am confident we will see the rewards of our many current initiatives
as we move through 2009, while we continue to draw upon the strength of Capitol
Bancorp Limited to reinforce the principles of banking safety and soundness in the
communities we serve.