Press Release

As Printed in the Kansas City Star
Dan Margolies

With financial backing from a multibillion-dollar holding company in Lansing, Mich., a group of eastern Jackson County investors plans to form a new community bank in Lee's Summit.

The group has raised $8 million in capital and is awaiting regulatory approval of the proposed bank, to be called Summit Bank of Kansas City. The bank would be near the new St. Luke's Hospital at the intersection of Interstate 470 and Douglas Road.

"This will be a bank with a local board, with decision-making from people who understand the community and are interested in its success," said Rick Viar, a banking veteran who leads the investment group.

Capitol Bancorp Limited, a publicly traded company with financial interests in 39 banks in 11 states, will own a 51 percent stake in the new bank. Viar said the remaining stock would be owned by more than 240 investors, most of them eastern Jackson County businessmen, businesswomen and professionals.

Capitol Bancorp was formed in 1988 in Lansing and specializes in developing community banks. The company controls $3.3 billion in assets and operates 13 banks in Michigan, nine in Arizona, five in California, four in Nevada, two in Indiana and one each in Georgia, North Carolina, New Mexico, Washington, Colorado and Illinois.

Earlier this year the company opened banks in Fort Collins, Colo.; Bellevue, Wash.; and Auburn Hills, Mich., and acquired a majority interest in a bank in Jeffersonville, Ga. Summit Bank will mark its first foray into Missouri.

All of Capitol Bancorp's banks have separate charters, with decision-making vested in local management and local boards of directors. Backroom functions such as data processing and compliance are centralized and handled by the company.

"The banks that have been successful in our company are typically associated with population bases of 100,000 or so in growing areas," said Stan Ricketts, president of Capitol Bancorp's Midwest region. "We look for strong demographics, but more so we're looking for good bankers, who, through their relationships, can develop a community bank."

Ricketts, who was a regional president of Wichita-based Intrust Bank until he left last year and joined Capitol Bancorp, said Capitol Bancorp is looking for other opportunities in the area, including on the Kansas side.

"Our growth strategy is to be nationwide," he said, adding that the company's preference is to form its own banks but that it is also open to making suitable acquisitions.

"We're very passionate about community banking - relationship sort of banking. It sounds trite because everyone says it, but the only way you can deliver it is through local decision-making.

"The largest bank in our operation is in Ann Arbor, Michigan, and it has $330 million in assets. These banks don't get large by design. You start getting larger and it's harder and harder to stay close to your customers."

Viar, who formerly headed Gold Bank's branch at U.S. 40 and Missouri 291, said Summit Bank would mainly serve Lee's Summit, Independence and Blue Springs. He said the bank raised its $8 million in capital - the typical amount raised by Capitol Bancorp's banks - in just 34 business days.

"Our goal is to open our doors on November 7," he said.

The bank will face plenty of competition in Lee's Summit, where at least 16 other banks operate main facilities or branches. Lee's Summit is one of the fastest-growing cities in Missouri.

Viar, who was a senior lender at Blue Ridge Bank before joining Gold Bank, will be president of Summit Bank. The bank's chairman will be Jack A. Accurso, chairman of American Foodservice Co.

To reach Dan Margolies, call (816) 234-4481 or send e-mail to dmargolies@kcstar.com.

First glance An investment group has raised $8 million in capital and is awaiting regulatory approval for the proposed bank, to be called Summit Bank of Kansas City.

The bank would be near the new St. Luke's Hospital at the intersection of Interstate 470 and Douglas Road.

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