Capitol City Bank & Trust Company in Atlanta, Ga., and North Carolina Mutual Life Insurance Company in Durham, N.C., two major African-American businesses, have come together in a unique partnership.
North Carolina Mutual Life Insurance Company (NCM), the oldest and one of the most successful African-American insurance companies in the United States, joined with Capitol City Bank & Trust Company (CCB), a new progressive African-American financial institution that sells financial services, the companies announced March 12.
In what the companies’ joint statement called a “strategic alliance,” CCB and NCM will pursue major contracts with municipalities and major corporations and will offer customers a wide variety of financial products and services.
“Georgia is one of the states that lead the nation in banking failures. Capitol City Bank is surviving through the creative initiatives such as this alliance we have with North Carolina Mutual. Capitol City did not get any of the $770 billion dollars made available to banks by the federal government’s TARP (Trouble Asset Relief Program); however, with the assistance of North Carolina Mutual, we have put together our own TARP,” said George Andrews, president and CEO of Capitol City Bank & Trust Company.
The partnership with CCB will allow North Carolina Mutual Life Insurance Company to increase its distribution in markets where they have historically done business, the statement said.
“We anticipate this model is scalable and plan to duplicate it in other minority banks and community financial institutions throughout the country. Our new venture with CCB will contribute to our efforts in providing financial literacy information to communities across the southeast. We are confident that other alliances will follow suit,” said James Speed, president and CEO, “North Carolina Mutual Life Insurance Company.
While these two African-American owned institutions have joined forces in a partnership, not a merger, to become a competitive force to capture major group insurance opportunities with corporate America and municipalities, the statement noted that other minority owned banks are located throughout the United States.