Holding company for Ann Arbor's Michigan Commerce Bank files for bankruptcy

Capitol Bancorp Ltd., the holding company that owns Michigan Commerce Bank, filed for Chapter 11 bankruptcy on Thursday, MLive reports.

The Lansing-based company, which has struggled for years, also reported a $10.3 million loss for the second quarter that ended in June, compared to a $16.4 million loss in the second quarter of 2011.

Capitol Bancorp has 13 affiliate banks in 10 states, including the Ann Arbor-based Michigan Commerce Bank and its nine branches. In the past few years, Capitol has sold 24 affiliate banks.

Company officials said the operations and deposits of the affiliate banks will not be affected by the bankruptcy, according to the report.

Michigan Commerce Bank operated under FDIC oversight starting in March 2010 due to concerns about its financial health. At that time, it was ordered to seek a sale or merger.

Read the full MLive report here.

Lizzy Alfs is a business reporter for AnnArbor.com. Reach her at 734-623-2584 or email her at lizzyalfs@annarbor.com. Follow her on Twitter at http://twitter.com/lizzyalfs.