Liberty Financial institution and Belief Firm, the Gulf Coast area’s largest black-owned financial institution, stated it’s shopping for Tri-State Financial institution of Memphis, bringing it into Tennessee’s business capital for the primary time.
The acquisition will add Tri-State’s $105 million in property, bringing Liberty’s whole property to $965 million, simply shy the $1 billion-asset goal for the minority-focused group financial institution set this yr by Liberty’s long-time CEO Alden McDonald.
The 2 corporations stated the acquisition is for money however didn’t disclose the quantity Liberty is paying for Tri-State. The Memphis financial institution has $95 million in deposits, the banks stated in an announcement saying the transaction Thursday after markets closed.
Along with New Orleans and now Memphis, Liberty operates branches in Baton Rouge; Detroit; Forest Park, Illinois; Jackson, Mississippi; Kansas Metropolis, Kansas; Kansas Metropolis, Missouri; Louisville, Kentucky; and Montgomery and Tuskegee, Alabama, in keeping with its web site.
“Each Tri-State and our board have a historical past of serving the underbanked, and this merger presents extra monetary entry, merchandise, banking know-how, and enhanced capability for lending,” stated McDonald within the assertion saying the takeover.
McDonald joined Liberty when it was based in 1972 and has been its CEO for the reason that mid-1970s.
Tri-State was based in 1946. Its chairman, Archie Willis, stated: “Combining with Liberty, an especially well-run establishment that shares our tradition, will improve our capacity to serve our clients.”
Earlier this yr, Liberty was one in all three banks wherein JP Morgan Chase, the nation’s largest financial institution, invested so-called Tier-1 capital as a part of its $30 billion program to put money into black-owned monetary providers corporations launched final summer season.
The $16 million JP Morgan funding will permit Liberty to develop its property — that’s, improve its lending — by about $150 million, McDonald stated.