Grandpoint Capital, Inc., and Bank Capital Corporation, the parent company of The Biltmore Bank of Arizona, jointly announced today that they have entered into a definitive agreement for Grandpoint Capital to acquire Bank Capital Corporation. The Biltmore Bank of Arizona will become a wholly owned subsidiary of Grandpoint Capital.

The Biltmore Bank was founded in 2003 and has offices in Phoenix and Scottsdale. As of December 31, 2011, Biltmore Bank had total assets of $261 million.

Completion of the transaction is subject to regulatory and shareholder approvals. It is anticipated the transaction will be completed in the second quarter 2012.

“The events of the past several years have illustrated that in order for us to support the continued growth of our current clients we need to have a strong balance sheet and a formidable capital position,” said Richard J. Lehmann, chairman of Bank Capital Corporation and The Biltmore Bank of Arizona. “The affiliation with Grandpoint is an excellent fit for us because we have a common business focus and operating philosophy, and Grandpoint’s substantial capital base will enable us to accelerate our growth and expand our banking capabilities, which will benefit our clients.”

Following the acquisition, The Biltmore Bank will continue to operate under its existing name with its current management and staff, including Richard J. Lehmann, founder and chairman of The Biltmore Bank of Arizona; Jeffrey P. Gaia, president and chief executive officer; and John T. Byrd, senior credit officer.

“The Biltmore Bank of Arizona is a well-managed bank that supports our strategic vision and strengthens our presence in Arizona,” said Don M. Griffith, chairman and chief executive officer of Grandpoint Capital. Grandpoint is the majority owner of the Bank of Tucson, the largest community bank in Tucson. “We are pleased that Rich Lehmann and his talented management team will guide our growth in Phoenix, a region we believe has tremendous long-term value.”

The Biltmore Bank specializes in serving the business banking needs of locally owned and managed Arizona businesses. Products and services include customized loan solutions, SBA lending, treasury management, business checking, and online and mobile banking. Biltmore Bank has been recognized by Ranking Arizona as the #1 Mid-Sized Bank in Arizona four of the last five years.

Grandpoint Capital is a bank holding company with three wholly owned subsidiaries: Grandpoint Bank, Regents Bank, N.A. and Peoria Holdings, LLC. The company is also a majority owner of the Bank of Tucson. At January 31, 2012, Grandpoint Capital had total assets of approximately $1.5 billion and in excess of $210 million in shareholders’ equity.

Certain of the statements contained herein that are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act. Forward-looking statements are typically identified by words or phrases such as “believe,” “expect,” “anticipate,” “intend,” “estimate,” “target,” “plans,” “may increase,” “may fluctuate,” “may result in,” “are projected,” and similar expressions. Actual results may differ materially from those included in the forward-looking statements. These forward-looking statements involve risks and uncertainties. The Biltmore Bank and Grandpoint Capital do not undertake, and specifically disclaim any obligation, to update any forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of such statements.

Contacts:

The Biltmore Bank of Arizona – Abbie S. Fink, HMA Public Relations – (602) 957-8881
Grandpoint Capital, Inc. – Penny Maines SVP & Director of Corporate Communications – (213) 542-2716