BE 100s Bank Acquires Home Federal Savings - Black Enterprise
Black Enterprise Magazine July/August 2018 Issue

bankvaultLiberty Bank and Trust of New Orleans acquired Detroit-based Home Federal Savings Bank after the bank was shut down by the Office of Thrift Supervision (OTS) Nov. 6.

Liberty Bank (No. 5 on the BE 100s bank list with $373 million in assets) has assumed all of the $13.5 million retail deposits of Home Federal Savings Bank and has purchased approximately $14.9 million of its assets.

Home Federal, which was founded in May 1947, was “critically undercapitalized and in an unsafe and unsound condition to transact business,” according to the OTS. Its two branches and eight employees reopened under the Liberty Bank and Trust Company banner on Monday.

Liberty Bank was founded in 1972 and has expanded into seven metropolitan areas and six states while offering banking services and mortgage lending.

“The expansion of our banking network to Detroit is a significant benchmark in our development.  We want to broaden our reach and provide our services to a larger audience,” said Alden J. McDonald Jr., Liberty Bank and Trust Company’s president and CEO, in a news release. “This acquisition is another step to be more aggressive on a national stage.”

Separately, the Missouri Division of Finance took possession of Gateway Bank of St. Louis, another black-owned institution, and appointed the Federal Deposit Insurance Corporation receiver. The FDIC then sold Gateway to Central Bank of Kansas City, a minority-owned financial institution that was chartered in 1950. Central Bank will assume the failed bank’s deposits and its total assets of $27.7 million.

“My sense is that there are going to be a lot of other black-owned banks that are going to go belly up,” says William Cunningham, president of Creative Investment Research Inc., which tracks minority banks. He says even the loss of just two institutions takes a big chunk out of the number of black-owned banks, which has dwindled to 33.

The FDIC has instructed loan customers of the banks to continue to make payments as usual. The regulator estimates that the cost to the Deposit Insurance Fund (DIF) will be $5.4 million for Liberty Bank and $9.2 million for Gateway Bank.

Depositors’ accounts are insured by the FDIC up to the legal limits. Customers with questions can call the FDIC toll-free at 1-866-782-1969.

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Marcia Wade Talbert

Marcia is a multimedia content producer focusing on technology at Black Enterprise Magazine. In this capacity she writes and assigns stories to educate readers about social media; digital integration; gadgets, apps, and software for business and professional development; minority tech startups; and careers in STEM (Science, Technology, Engineering, and Mathematics). In 2012, she received two Salute to Excellence Awards from the National Association of Black Journalists and was recognized by Blacks in Technology (BiT) as one of the Top 10 Black achievers in the tech arena for 2011 at SXSW in Austin, Texas. She has spoken about technology on panels for New York Social Media Week, at The 2012 Rainbow/PUSH Wall Street Summit, as well as at Black Enterprise’s Entrepreneurs Conference and Women of Power Summit. In 2011, SocialWayne.com chose her as one of 28 People of Color Impacting the Social Web, and through crowdsourcing she was listed as one of BlackWeb2.0's/HP's 50 Most Notable African American Tastemakers in Social Media and Technology for 2010. Since taking on the role of Tech editor in September 2010, she has conceived and produced five cover stories on Technology and/or STEM and countless articles, videos, and slideshows online. Before joining BlackEnterprise.com as an interactive general assignment reporter in 2008, she freelanced with Black Enterprise beginning in 2003 while working as the technical editor at Prepared Foods magazine. There she further honed her writing skills and became an authority on food ingredients, including ingredients used in food fortification and enrichment. Meanwhile, her freelancing with Black Enterprise and BlackEnterprise.com helped her stay current on issues pertaining to the financial and business welfare of African Americans. As a general reporter for Black Enterprise she attended and reported on the Democratic and Republican National Conventions, where she interviewed Valerie Jarrett, senior advisor and assistant to President Barack Obama and U.S. Attorney General Eric Holder. Marcia has a Bachelor of Science degree in Agriculture with an emphasis in food science from the University of Minnesota, and a Master of Science degree in journalism from Roosevelt University in Chicago. En route to her secondary degree, she served as the editor-in-chief of the Roosevelt University Torch, a weekly, student-run newspaper. An avid photographer and videographer, Marcia is one of several employees at BLACK ENTERPRISE who interned for the publishing company as a college student. She lives in New Jersey with her husband, a food scientist; her seventeen-month-old daughter; and “The Cat”, but still considers Chicago home.


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