Central Fidelity Banks Inc. plans to end its four-year relationship with JMC Group Inc., a San Diego-based company that manages bank brokerage operations.
The Richmond, Va.-based bank will bring its brokerage program in-house in January, JMC said. The bank is the latest JMC client to do so.
Last year, Barnett Banks Inc., Jacksonville, Fla., which was responsible for 25% of JMC's sales, ended its relationship with the company.
The trend among big banks to bring their brokerage programs in-house has forced JMC and similar companies to target community banks, which they say cannot afford to run brokerages.
JMC chairman James K. Mitchell said Central Fidelity would acquire, for an undisclosed amount, the block of business JMC developed for the bank.
"The proceeds ... will be a substantial addition to our existing strong cash position as we continue our expansion into the community bank markets," Mr. Mitchell said in a statement.
Mr. Mitchell has placed high hopes on a pending merger with USBA Holdings Ltd., Atlanta, a company that offers consulting and auditing services to community banks nationwide.