Bank of Tucson Sale to Grandpoint Completed

Grandpoint Capital, Inc.
January 25, 2011 04:15 PM Eastern Time
Grandpoint Capital, Inc., Announces Completion of Bank of Tucson Acquisition

LOS ANGELES--(BUSINESS WIRE)--Grandpoint Capital, Inc., a bank holding company, announced today that Southern Arizona Community Bank, of which it is a majority owner, completed the acquisition of the main office operations of Bank of Tucson after receiving all regulatory and shareholder approvals.

“With the financial strength of Grandpoint and the outstanding experience and leadership Jim and David bring to the bank, we have the ability to expand our presence in the southern Arizona region and bring enhanced product capabilities to our community.”

The acquisition was a purchase and assumption transaction whereby Southern Arizona acquired approximately $105 million in loans and assumed approximately $179 million in deposits along with the operating assets of the main office of the Bank of Tucson. The combined operations, with total assets of approximately $290 million, plans to conduct business under the Bank of Tucson name at two locations in Tucson.

Grandpoint Capital and a group of local Tucson investors acquired Southern Arizona Community Bank from Capitol Bancorp on December 10, 2010.

“We are very pleased to have such a strong presence in the southern Arizona market with the completion of the Bank of Tucson acquisition,” says James H. Click, Jr., chairman of the board of the newly consolidated entity. “We've combined two of the healthiest banks in the region, led by very experienced managers who know the southern Arizona market very well. We are delighted that they will be guiding our growth in a region we believe has tremendous long-term value.”

Former Bank of Tucson President and CEO Mike Hannley will serve in the same capacity for the newly combined organization. Hannley, a 38-year banking veteran, partnered with Capitol Bancorp in 1996 to launch Bank of Tucson. Southern Arizona Community Bank President and CEO John P. Lewis will now serve as Vice Chair of the combined entity. Lewis was recruited by Capitol Bancorp in 1998 to start Southern Arizona Community Bank. He serves on the FDIC's 14-member Advisory Committee on Community Banking.

Tucson businessmen Click and David T.C. Wright, who have served as chairman of the board and chair of the executive committee of Southern Arizona Community Bank, respectively, since the December 10, 2010 acquisition, will hold those positions with the combined entity. Click and Wright, part of the local Tucson investor group that acquired Southern Arizona Community Bank, were instrumental in initiating the partnership with Grandpoint Capital. Both business leaders have known Grandpoint Capital Chairman and CEO Don M. Griffith since he served on the board of directors of the former Tucson-based Arizona Bank in the 1990s. Wright was the former president and CEO of Arizona Bank and Click was chairman of the board and a majority shareholder.

“We have combined two very complementary organizations,” says Hannley. “With the financial strength of Grandpoint and the outstanding experience and leadership Jim and David bring to the bank, we have the ability to expand our presence in the southern Arizona region and bring enhanced product capabilities to our community.”

Grandpoint Capital, Inc., is a bank holding company headquartered at 333 South Grand Avenue, Suite 4250, Los Angeles, Calif. Grandpoint Bank, its wholly owned subsidiary, has offices in downtown Los Angeles, Brentwood, El Segundo, Encino, Santa Ana and Westminster, Calif.

Grandpoint Bank serves small and mid-sized businesses, professionals and entrepreneurs, and high-net-worth individuals with an integrated product set of personal client services, commercial banking and treasury management capabilities. It also provides correspondent services to financial institutions. At December 31, 2010, the bank had total assets of approximately $490 million.
Contacts

Grandpoint Capital
Penny Maines, 213.542.2716