Memphis’ foremost minority-owned bank is about to be under new leadership. Liberty Bank and Trust Company and its parent holding company, Liberty Financial services, announced the acquisition of Memphis-based Tri-State Bank in an all-cash transaction. Both entities are designated as Minority Depository Institutions as defined by the Federal Deposit Insurance Corporation.
“Combining with Liberty, an extremely well-run institution that shares our culture, will enhance our ability to serve our customers and uphold our mission,” said Tri-State chairman Archie Willis in a press release yesterday afternoon. “This transaction is compelling for all of Tri-State’s stakeholders including customers, employees, shareholders and our community.”
Tri-State Bank was founded in 1946 by Dr. J.E. Walker and his son A. Maceo Walker, and later flourished under the leadership of Jesse E. Turner. As of March 2021, the bank reported about $105 million in assets and $95 million in deposits, all from just a single office in Memphis.
New Orleans-based Liberty Bank, the largest black-owned financial institution in the United States, was drawn to Tri-State through a shared set of values to provide affordable financial services and products to underserved communities. Liberty operates in nine states, and the proposed transaction will see the bank hold about $965 million in assets and offices in 12 cities.
“Memphis is extremely rich in history, and we are proud to continue servicing the Community,” said Liberty president and CEO Alden McDonald. “Both Tri-State 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.
“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 personal and commercial banking options. This is a great time for Minority Deposit Institutions, and we are honored to join the Memphis Community!”
Both companies’ board of directors have approved the transaction, but it remains subject to Tri-State Bank of Memphis’ shareholder approval and customary regulatory approvals. However, both entities expect the deal to be wrapped up by the end of 2021.
