Supported by the bridges of the church, mutual aid societies and the fraternal orders, Black businessmen moved in the 1880s and 1890s to a new ledge of economic activity, organizing the first Black banks
and the first Black insurance companies.
Even so, the new landscape will force black banks
to venture outside of their traditional comfort zone.
She would eventually merge it with two other black banks
based in Richmond to form Consolidated Bank and Trust (No.
Some of the factors for the stock growth of black banks
include rising profits, lower interest rates, and greater visibility--all of which allow the banks to deliver higher returns to their investors.
Anderson says the acquisitions are "a very positive thing because a number of black banks
have been acquired by white-owned institutions and, without mergers of this type, a number of the black banks
would probably cease to exist.
Citizens Trust wants to be the first black financial institution to reach the billion-dollar mark and company executives say it has the cash and the aggressive acquisition strategy to do just that, so more consolidation among black banks
could lay ahead.
Unlike larger majority-owned institutions, many black banks
don't have a wide array of fee-based income sources.
Some experts say the law could foster new partnerships that will enable black banks
to better serve their customers and compete for mainstream clients.
Efforts to cope with the Y2K problem haven't kept black banks
from keeping up with technology.
This will bring a heightened awareness of black banks
and perhaps encourage more people in the community to use them.
If black banks
are going to stay competitive, then we'll have to offer the same products as the large institutions," says the silver-maned McDonald, whose bank is No.
The $35 million transaction promised to do two things: place OmniBank among the largest black banks
and create the first black interstate banking operation.