Liberty Bank to merge with First Tuskegee Bank, the oldest African American financial institution in the U.S.

October 25, 2013


Liberty Bank to merge with First Tuskegee Bank, the oldest African American financial institution in the U.S.

Montgomery Advertiser

First Tuskegee Bank plans to merge with Liberty Bank and Trust Company.

The definitive agreement announced Thursday is subject to shareholder and regulatory approval.

“The partnership with Liberty will afford us the opportunity to compete more effectively and continue to deliver world class products and service to our clients,” First Tuskegee Bank President and CEO Neill S. Wright said in a statement announcing the merger.

There were no other immediate details about the impact of the merger on First Tuskegee or its clients. The bank has two locations in Montgomery — 3900 Eastdale Circle and 660 Adams Ave.

A group of investors formed First Tuskegee Bank in the early 1990s after purchasing assets and liabilities of the former Tuskegee Federal Savings and Loan Association, which was created in 1894. The bank is the oldest continually operating minority financial institution in the United States.

The bank received a $600,000 federal award in 2011 as part of a U.S. Department of the Treasury initiative to help spur local economic growth and recovery.

Liberty Bank and Trust was established in New Orleans in 1972 and has grown to $600 million in assets. If the merger is approved, it will have expanded its footprint to 21 locations across 8 states.

First Tuskegee Bank

History of First Tuskegee Bank

Tuskegee Cooperative Building and Loan Association, was first chartered in 1894 it was housed in a classroom on the campus of Tuskegee University, in Tuskegee Alabama. In 1939, the Association purchased a parcel of land located on Montgomery Road, in Tuskegee, — directly across from the campus. This location served as the site of its first office building.

The institution changed its name to Tuskegee Savings and Loan Association in April of 1941. In 1952, a second name change occurred and it became known as Tuskegee Federal Savings and Loan Association (“TFSLA”).

By 1956, assets had reached the million dollar mark ($8.59 in 2013 dollars). In 1964, with assets approximating $2.5 million ($18.86 million in 2013 dollars), the office underwent a major renovation to accommodate its growing customer demand and need to expand its services.

However, by 1985, it had completely outgrown its Montgomery Road facility and the entire operation had to be transferred to the larger facility closer to downtown Tuskegee.

When TFSLA became insolvent in 1990, Resolution Trust Corporation (“RTC”) placed it in conservatorship. In October 1991, First Tuskegee Bank (“FTB”), a state chartered full service commercial bank, assumed certain liabilities and purchased selected assets of the former TFSLA from the RTC. Thus, First Tuskegee Bank became part of the chain which is identified as one of the oldest continuously operating minority owned-and-operated financial institutions in the country with the local bank led by James Wright.

Over the years, First Tuskegee Bank has broadened the scope and convenience of its services to include two additional branches in near-by Montgomery, the capitol of Alabama. The Capitol Hill branch is located blocks from the State’s Capitol, while the Eastdale branch is situated at one of the city’s busiest sections of East Montgomery.

First Tuskegee Bank has continually striven to provide quality products and services to the communities it serves. It prides itself on its status as a community bank and actively targets lending projects that address important community needs such as affordable housing, the construction of elderly care centers and access to SBA loans.

Source: The Tuskegee News

First Tuskegee Bank -downtown Montgomery

First Tuskegee Bank

Liberty Bank & Trust Company

In 1972, Liberty Bank was chartered in New Orleans, Louisiana, with a focus on service, integrity and a sincere interest in community and business development. Nearly four decades later, Liberty Bank has expanded to 18 branch offices in 6 states.

Liberty Bank established its Baton Rouge presence in 1994 and opened a third branch in 2004. Liberty then moved into Mississippi in 2003, acquiring First American Bank in Jackson. This was followed by expansion into the Greater Kansas City market with the acquisition of Douglass bank in Kansas City, Kansas, and Kansas City, Missouri, in 2008.

Liberty Bank and Trust Company expanded across Greater New Orleans with the 2009 acquisition of United Bank and Trust Company, securing 4 additional locations to serve that market. That was followed by the acquisition of Home Federal Savings in Detroit, Michigan, which increased the bank’s reach to 7 major urban areas in 6 states.

New Orleans, Louisiana (5 branch locactions, 15 ATM locations)
Baton Rouge, Louisiana (3 branch locactions, 5 ATM locations)
Opelousas, Louisiana (1 branch locaction, 2 ATM locations)
Jackson, Mississippi (1 branch locaction, 5 ATM locations)
Kansas City, Missouri (1 branch locaction, 1 ATM locations)
Kansas City, Kansas (1 branch locaction, 1 ATM locations)
Detroit Michigan (1 branch locaction, 1 ATM location)
Chicago Illinois (1 branch locaction, 2 ATM locations)

February 2013
Liberty Bank & Trust Company acquires Chicago’s Covenant Bank of Illinois
November 2009
Liberty buys failed bank in Home Federal Savings Bank of Detroit
February 2009
Liberty Bank to acquires New Orleans based United Bank and Trust Co.
January  2008

Liberty Bank acquires Missouri’s Douglass National Bank of Kansas City

June 2007
Liberty Bank acquires Houston’s SDI Mortgage
July 2003
Liberty Bank acquires Jackson, Mississippi’s First American Bank 

Video: History of Liberty Bank


Liberty Bank

Liberty Bank-Jackson, MS

Liberty Bank- New Orleans

Liberty Bank -Detroit


Largest African American financial institutions

This Year Last Year Company Location Assets (in millions) Capital (in millions) Deposits (in millions) Loans (in millions)
1 1 Carver Bancorp Inc. (Carver Federal Savings Bank) New York, NY 640.482 56 502 364
2 2 OneUnited Bank Boston, MA 601.776 45 343 320
3 4 Seaway Bank and Trust Co. Chicago, IL 546.59 44 487 278
4 3 Liberty Bank and Trust Co. New Orleans, LA 536.299 43 483 223
5 6 Citizens Bancshares Corporation (Citizens Trust Bank) Atlanta, GA 395.375 49.154 340.593 190.999
6 5 Broadway Financial Corp. (Broadway Federal Bank) Los Angeles, CA 374.073 33.268 258.435 270.775
7 7 Industrial Bank Washington, DC 364.041 37.028 233.81 279.84
8 8 City National Bank Newark, NJ 331.131 22.845 295.679 174.386
9 10 Capitol City Bank & Trust Co. ( Capitol City Bank) Atlanta, GA 300.942 13.213 281.382 221.172
10 9 M&F Bancorp Inc. (Mechanics & Farmers Bank) Durham, NC 293.717 34.523 252.219 173.212
11 11 Harbor Bancshares Corp. (The Harbor Bank of Maryland) Baltimore, MD 248.897 26.897 214.127 171.78
12 12 First Independence Bank Detroit, MI 184.64 20.101 147.651 132.715
13 14 Tri-State Bank of Memphis Memphis, TN 127.712 16.07 110.555 71.437
14 17 Citizens Savings Bank & Trust Co. Nashville, TN 89.16 8.542 78.17 63.577
15 15 Highland Community Bank Chicago, IL 82.975 3.053 79.308 48.905
16 18 South Carolina Community Bank Columbia, SC 80.604 3.1 78 51
17 Independence Federal Savings Bank Washington, DC 76.521 2.211 62.293 60.348
18 19 United Bancshares Inc. (United Bank of Philadelphia) Philadelphia, PA 66 4.621 60.976 41.502
19 20 First Tuskegee Bank Montgomery, AL 60.576 5.397 54.264 34.882
20 Commonwealth National Bank Mobile, AL 58.96 6.026 52.436 27.782
Totals 5,460.47 474.049 4,414.90 3,199.31
*In millions, as of Dec. 31. Prepared by Black Enterprise Research

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