speaking of racism....
Largest Black-Owned Bank Created
07/31/2002 13:14:48 EST
LOS ANGELES (AP) - Boston Bank of Commerce and Family Savings Bank have agreed to merge, a deal that will create the nation's largest black-owned bank, the banks confirmed Wednesday.
The combined entity will have about $460 million in assets.
The deal is aimed at establishing a nationwide network of banks in black neighborhoods.
"This merger will serve as a model and source of strength for black businesses as we unite to share resources and expertise," Kevin Cohee, chairman and chief executive of Boston Bank of Commerce, said in a release.
Last year, Boston Bank merged with Founders National Bank, whose celebrity shareholders include former Los Angeles Laker Earvin "Magic" Johnson, singer Janet Jackson, and former Motown Records president Jheryl Busby. The union created the nation's third-largest black-run banking system, and the first with branches on both coasts.
Full terms of the Family Savings-Boston Bank cash deal were not disclosed.
However, The Los Angeles Times reported that Boston Bank agreed to pay $12 million for Family Savings, beating an $11 million offer by FBOP Inc., a large, white-owned banking company based in Illinois.
Family Savings' directors agreed in March to sell the thrift to FBOP, which promised to allow Family Savings' management considerable autonomy. However, community leaders protested that black ownership should be preserved. Family Savings backed out of that deal and accepted a higher offer from the Boston bank.
Family Savings Bank, founded in 1948, has $208 million in assets. Boston Bank of Commerce, founded in 1982, has $264 million in assets. |
