Capitol Bancorp has formed a joint venture with Forethought Financial Group and DeGorter Capital Partners to collectively own and operate Forethought Federal Savings Bank, located in Batesville, Indiana, through the formation of a bank holding company.
The terms of the agreement will result in a 51% ownership position by Capitol Bancorp, 24% ownership by Forethought Financial Group and 25% ownership by DeGorter Capital Partners. The formation of the new company is subject to regulatory approval.
The business of the new venture will be overseen by Robert Hogan, who will serve as its president. Mr Hogan will continue in his role as president and CEO of Capitol Wealth, a wholly-owned affiliate of Capitol Bancorp.
Joseph Reid, chairman and CEO of Capitol Bancorp, said: This strategic alliance is consistent with our corporation’s growth strategy. It will enhance our national presence while creating an opportunity to increase our non-interest income.