A North Carolina nonprofit is voicing concerns over a proposed merger involving Charlotte-based Capital Bank Financial Corp., telling the Federal Reserve the deal will negatively impact low-income and minority communities.
In a letter this month, Durham-based Reinvestment Partners criticizes the lending practices of Capital Bank and First Tennessee Bank, whose parent company is set to acquire the Charlotte firm. Underserved communities, particularly in North Carolina, will be “worse off” in the deal, the nonprofit said.
“To date, First Tennessee Bank and Capital Bank, have not demonstrated that commitment to serving all of their communities,” Peter Skillern, executive director for Reinvestment Partners, wrote in the letter. The advocacy group, whose roots trace to the 1980s, opposes the merger, arguing it will not benefit “those underserved communities that most need access to capital and opportunity.”
Both banks declined to comment.
In announcing the $2.2 billion deal in May, the banks said it would create the fourth-largest regional bank in the Southeast by assets, as First Horizon’s $30 billion joins Capital Bank’s $10 billion. Expectations are for the deal to…