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.