Capitol Bancorp broadens service roster in hopes of winning advisory clients. Capitol Bancorp has established a new subsidiary to provide wealth-management services to customers through its community-bank network. Capitol Bancorp chairman and CEO Joseph Reid calls Capitol Wealth Advisors a “natural evolution” of the company’s business model.

“Our community banks are successful because of their individual commitment to service delivery and their focus on building a financial relationship with each customer,” says Reid. “Through Capitol Wealth Advisors we now can provide our customers with wealth-management products and services in addition to the existing traditional financial services.”

All set now

Capitol Wealth Advisors will provide wealth-planning services to Capitol Bancorp’s affluent customers as well as their families and businesses. Capitol Wealth Advisors’ “complete suite of wealth products” includes investment-management, brokerage, insurance, trust-, estate- and tax-planning.

This puts small players like Capitol Bancorp, a $3.5 billion community-bank development company, in position to compete with bigger names for wallet share in a domestic wealth market worth between $30 trillion and $40 trillion, according to Capital Wealth Advisors’ newly appointed CEO Robert Hogan. “Even the top firms combined [serve] less than 12% of the market,” he says.

Hogan was COO of Banc of America Securities, Bank of America’s brokerage unit before he joined Capital Bancorp.

“Capitol Bancorp's community bank affiliates are built on providing one-on-one delivery of customized financial solutions,” says Hogan. “Capitol Wealth Advisors will mirror this approach by focusing on building one-on-one relationships, to better understand and address our client's needs.”

Lansing, Mich.- and Phoenix, Ariz.-based Capital Bancorp runs 42 community banks in Arizona, California, Colorado, Georgia, Illinois, Indiana, Michigan, Missouri, Nevada, New Mexico, North Carolina, Texas and Washington. –FWR

.