TO OUR SHAREHOLDERS
From The Chairman
JOSEPH D. REID
Chairman & CEO
Dear Shareholder:
For years, Capitol Bancorp has committed itself to pursuing a strategy that balances expansion with quality earnings growth and compelling bottom-line performance. I am proud to report that this commitment produced another outstanding year of performance and growth for the company during 2006.
This past year saw Capitol Bancorp achieve a number of significant milestones. Earnings surpassed approximately $42 million, an 18 percent increase over 2005 and a record for our company. Basic and diluted earnings per share also reached record levels – at $2.69 and $2.57 respectively. The company was able to achieve these results despite a six percent expansion in outstanding share count. Finally, total assets increased 17 percent over the course of 2006 to eclipse $4 billion for the first time in Capitol Bancorp’s history.
Perhaps more importantly, Capitol Bancorp achieved these financial results simultaneously with another significant milestone: the opening of our 50th community bank. To reach this target – which we set at the outset of the year – we opened nine new banks during 2006: Community Bank of Rowan in North Carolina, Asian Bank of Arizona, Evansville Commerce Bank in Indiana, Bank of Valdosta and Sunrise Bank of Atlanta in Georgia, Bank of Everett in Washington, Bank of Maumee and Ohio Commerce Bank in Ohio, and 1st Commerce Bank in Nevada. As 2007 began, Capitol Bancorp had four applications for additional affiliate banks under consideration.
Due in large part to this growth, Capitol Bancorp’s total deposits approached $3.3 billion while total portfolio loans grew to $3.5 billion – both representing 17 percent increases over 2005. The growth that Capitol Bancorp achieved across all of these areas in 2006 continues to reinforce our commitment to expanding our geographic footprint with discipline while managing our balance sheet with prudence.
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