Capitol City Bank & Trust Company Gets Impressive Investment from SunTrust Bank. Atlanta Hometown Banks Build Working Relationship for Minority Community.

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SunTrust Bank has made a commitment to provide up to $4 million to Capitol City Bank to reinvest in the Atlanta community through loans to the under-served minority community. The partnership between SunTrust and Capitol is a milestone investment.

If Capitol City was absent from the market place, this would leave a tremendous void. Small business would not have opportunities for growth. Jobs would be loss, said George Andrews.

SunTrust Bank and Capitol City Bank & Trust Company are community partners. When one partner is in need, the other partner steps up to the plate.

SunTrust Banks, Inc. has made a commitment to provide up to a $4 million investment to Capitol City Bank & Trust Company, of which $1 million has already been funded. “This investment is an example of one hometown bank providing assistance to another,” said George Andrews, President and CEO of Capitol City.

Capitol City Bank & Trust Company has always had an aggressive approach to raising capital in order to strengthen its balance sheet. Efforts were increased in 2011 in order to satisfy federal regulatory requirements to raise its capital level and to reduce the impact made on the bank from nonperforming assets and customers who were hit with hard times. While the SunTrust commitment is the largest investment, it has not been the only infusion of capital from other banks and other resources. Wells Fargo made a $600,000 equity investment to Capitol City Bank in 2010 which proved to be invaluable in terms of stabilizing the bank at that critical time when Capitol City Bank was undercapitalized. Wells Fargo Bank continues to be supportive in terms of exploring an additional investment. Capitol City Bank has also received a major commitment from Fifth Third Bank. The Board of Directors of Capitol City Bancshares, Inc. and Capitol City Bank & Trust Company has provided more than $1 million in investments. Community leaders responding to the opportunity to make capital investments include Ali Muhammad; Michael Thurmond (Georgia’s former Labor Commissioner); Kenneth Chestnut, President & CEO of The IntegralGude; and Cameron “Cam” Newton, professional football player with the Carolina Panthers , among others.

Capitol City Bank & Trust Company was organized to serve the minority community of Atlanta and its customer base is primarily African-American. Capitol City lends to churches, small businesses and individuals who have been one of the hardest hit in the economic downturn. These facts make Capitol City one of the most attractive investments under the Community Reinvestment Act. An investment in Capitol City Bank addresses some of the regulatory requirements under this act.    

George Andrews has built a solid professional career in Atlanta and the State of Georgia as a People’s Banker. “If Capitol City Bank did not have enough capital to survive, our absence from the market place would leave a tremendous void. Small businesses could not take advantage of opportunities for growth without the capital we provide; and without these businesses, there would be a critical loss of jobs in our communities. We made our mark in the communities that we serve through our practices to engage the communities through grass-roots leadership, churches and various start-up businesses,” said Andrews. We have been working on building a legacy to bank on.”

Michael Grant, President of the National Bankers Association (NBA), says, “The partnership between Capitol City Bank and SunTrust Bank in Atlanta is an ideal situation. When a mega financial institution like SunTrust decides to invest in a minority-owned bank, which is serving an under-served population usually ignored, this is cause for a celebration.    George Andrews is an innovative thinker who is always looking for new solutions for old problems. The NBA wants other major banks to follow the lead of SunTrust, if they have not already done so.”

“We’re proud to invest in such a long-standing and important community partner,” said William H. Rogers, Jr., Chairman and CEO of SunTrust Banks, Inc. “A SunTrust alumni, George Andrews, shares our commitment to serving Atlantans, and we are pleased to support the institution he leads as it works to meet the financial needs of the urban and minority communities in the area.”

Capitol City Bank & Trust Company, chartered in the State of Georgia in1994, has a full-service banking business and engages in a broad range of commercial banking activities, including accepting customary types of demand and time deposits, making individual, commercial and installment loans, money transfers, safe deposit box services, and making investments in U.S. government and municipal services. Capitol City serves its customers from eight locations: the main office is located at 562 Lee Street, SW, Atlanta, GA with four additional offices in Atlanta including Hartsfield International Airport. Other locations throughout the state include Albany, Augusta, and Savannah.
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BUNNIE JACKSON-RANSOM

Janice Colbert
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