Two minority owned financial companies have joined forces to expand their businesses in the Southeast.
Atlanta-based Capitol City Bank & Trust Company has partnered up with North Carolina Mutual Life Insurance Company in a new strategic alliance that will enable each company to expand to more cities and states, offering more products and services.
Founded in Durham, N.C. in 1898, NCM calls itself one of the oldest and most successful African-American insurance companies in the country. Capitol City, founded in Georgia in 1994, is a progressive African-American financial institution that operates a full-service banking business.
George Andrews, president and chief executive officer of Capitol City, said the bank, located in one of the states that lead the nation in banking failures, continues to survive through the creative initiatives such as this new alliance.
“Capitol City did not get any of the $770 billion dollars made available to banks by the federal government’s Trouble Asset Relief Program,” he said. “However, with the assistance of North Carolina Mutual, we have put together our own TARP.”
According to Capitol City, the partnership with the bank will allow NCM to increase its distribution in markets where they have historically done business. The bank said the alliance between the two African-American owned institutions will become a competitive force to capture major group insurance opportunities with corporate America and municipalities.
“We anticipate this model is scalable and plan to duplicate it in other minority banks and community financial institutions throughout the country,” said James Speed, president and chief executive officer of NCM. “Our new venture with CCB will contribute to our efforts in providing financial literacy information to communities across the Southeast.”