Liberty Bank acquires TriState Bank of Memphis
14th June 2021 · 0 Comments
By Fritz Esker
Contributing Writer
New Orleans-based Liberty Bank and Trust Company recently announced its acquisition of TriState Bank of Memphis in an all-cash transaction.
Both Liberty and TriState are minority-owned banks. Mike Edwards, interim CEO of TriState Bank of Memphis, said TriState’s board wanted to partner with another minority-owned bank. They were familiar with Liberty, so the partnership seemed like a natural fit.
“We had a strong relationship (with Liberty), one that made sense for TriState,” Edwards said. “Liberty and TriState are very similar in their mission and focus. They are both very focused on their employees and the communities they serve.”
Alden McDonald, president and CEO of Liberty Bank and Trust Company, said his bank has been in acquisition mode for the past 15 years. In that time, they have purchased 11 banking institutions. With the new acquisition of TriState, Liberty will now have a presence in Tennessee. It will be Liberty’s tenth state and Memphis will be Liberty’s twelfth city. With approximately $965 million in assets, Liberty is the largest Black-owned bank in the country.
“What we attempt to do is make acquisitions in communities of color to make sure minority banking is available in these communities,” McDonald said.
That mission is important to McDonald, who said that many minority communities in America are banking deserts. According to data from the Federal Deposit Insurance Corporation (FDIC), only 5.4 percent of American households do not have a bank or credit union account. However, that percentage is much higher for Black and Latino households (13.8 percent and 12.2 percent, respectively).
When these communities do not have access to banking, they do not have access to home loans. Homeownership is an important way to build wealth and equity, so when minority communities are denied those opportunities, it makes it harder for their residents to achieve upward economic mobility. McDonald said Liberty has provided over 10,000 home loans in the past 20 years.
In addition to providing home loans to residents, banks in minority communities keep residents from resorting to payday lenders with exorbitant interest rates.
When banking is unavailable, it also makes it difficult for community members to build a credit record.
Both McDonald and Edwards expressed excitement at the impending merger and the opportunities it will provide for Memphis residents.
“Memphis is extremely rich in history, and we are proud to continue serving the community. Both TriState and our board have a history of serving the underbanked, and this merger offers more financial access, products, banking technology, and enhanced capacity for lending,” McDonald said in a press release. “We are excited and focused on continuing to service the people of Memphis with an expanded suite of financial services – including a more robust mortgage product and a variety of commercial banking options.”
“Memphis and New Orleans are similar in many ways…TriState is very excited about the partnership,” Edwards said.
The transaction has been approved by both banks’ boards of directors, but still remains subject to approval from TriState’s shareholders and customary regulatory approvals. According to a press release from Liberty, the transaction is expected to be complete before the end of 2021.
This article originally published in the June 14, 2021 print edition of The Louisiana Weekly newspaper.
