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

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.

http://www.montgomeryadvertiser.com/article/20131025/BUSINESS/310250037/First-Tuskegee-Bank-Liberty-Bank-reach-merger-deal
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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

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.

Locations
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)

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Video: History of Liberty Bank

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Largest African American financial institutions