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Showing posts with the label black-owned financial institutions

Another Black Bank Closes

"A long standing bank in North Tulsa is no more. Many say the closing of American State Bank is an end of an era.

Leroy Thomas had a front row seat to a moment that was truly ground breaking. "We were very excited. "It was quite the momentous occasion," Thomas told News Channel 8. He founded American State Bank in 1970. A crowd gathered to witness it's rebirth in it's new home on 38th North Peoria just seven years after it was founded. "It was a source of pride. There was no other institution in the state, financial institution controlled by blacks that in itself was an achievement we thought".

Thomas says he sold his interest in the bank in the 90s, but the bank still operated in the place he built. Until this week, it was still the only remaining black owned financial institution in Tulsa. Now a notice on the front door is directing customers to People's bank.

Edna Brooks worked at American State Bank for 15 years. She retired a few …

Dwelling House, a 119 year old Black bank, rallies

According to an article in the American Banker Newspaper,

"With public sentiment running so hard against the banking industry these days the story of Dwelling House Savings and Loan Association, a $13.4 million minority-controlled mutual in Pittsburgh, is nothing short of amazing.

Community leaders have rallied around the thrift for the past few months after cyber thieves took more than $3 million through fraudulent automated clearing house transactions, leaving the thrift with a $1 million capital hole.

Residents campaigned to boost the thrift's deposits, and it ultimately received pledges of cash injections from four local foundations and the $5.6 billion-asset Dollar Bank of Pittsburgh, just in time for a June 30 deadline that regulators imposed for getting the thrift adequately capitalized."

As was noted in the article, "Observers said the outpouring of support for the bank was primarily because of its age. 'It goes to show their importance to the community that…

Executives Working to Create Black-Owned Holding Company

High Growth, Low Returns Found at Minority Banks

From: American Banker Newspaper
Wednesday, September 19, 2007
By Katie Kuehner-Hebert

Banks that target minority groups, particularly Hispanics and Asian-Americans, are reporting asset growth well above the industry average, largely because of an influx of immigrants.

However, on average these banks are less profitable and less efficient than mainstream ones, according to a report published last week by Creative Investment Research Inc., a Washington consulting firm that focuses on minority banking.

Assets at minority-owned banks are on pace to increase by an average of 17.43% this year, compared with the overall industry average of 6.38%, according to the report, which cited data from the Federal Deposit Insurance Corp. and other sources.

William Michael Cunningham, the consulting firm's president and chief executive, said the trend reflects both the increased number of start-ups targeting Hispanics — about a dozen have opened since the end of 2005 — and the continued asset g…

Black-owned banks in North Carolina to merge

According to the Winston-Salem Journal, "M and F Bancorp Inc. said yesterday (August 10, 2007) that it has agreed to buy Mutual Community Savings Bank Inc. and merge it with M and F’s bank subsidiary, Mechanics and Farmers Bank. The banks, both based in Durham, are two of the nation’s oldest black-owned financial institutions."

We believe the merger is a positive development, and will insure that black banks remain a factor in North Carolina. We also note that this is the third transaction in the Black banking sector over the last 60 days.