UPDATE 1-Capitol Bancorp to sell stake in 3 Colorado banks
* Sale marks exit from Colorado for the lender
* Divests 51 pct of its stake in three banks
* Adds to divestiture of $274 mln assets in Colorado
April 16 (Reuters) - Capitol Bancorp Ltd CBC.N said it agreed to sell its stake in three Colorado banks, marking its exit from the Colorado market.
The Lansing, Michigan-based company will sell 51 percent interest in Fort Collins Commerce Bank, Larimer Bank of Commerce and Loveland Bank of Commerce in the state.
This follows the sale of Mountain View Bank of Commerce by the bank in December 2009, and adds to asset divestiture worth $274 million in the state.
The sale is in line with the company's strategic initiatives to deleverage the consolidated balance sheet and redistribute capital within its multi-state network, Chief Executive Joseph Reid said.
Shares of the company rose more than 3 percent to $2.72 Friday on the New York Stock Exchange. (Reporting by Archana Shankar in Bangalore; Editing by Anil D'Silva)
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