One of the largest Black-owned banks in the country just got even larger after an acquisition announced Thursday netted the institution two branches in New Jersey and one in Harlem.
The D.C.-based Industrial Bank founded in 1934 acquired City National Bank of New Jersey after it was closed by the Office of the Comptroller of the Currency on Nov. 1.
“This acquisition will allow us to expand our footprint into the northeast region and deepen our commitment to impacting economic development in various communities,” Industrial Bank President and CEO B. Doyle Mitchell, Jr. said Thursday in a news release.
The company said in the release that like Industrial Bank, City National Bank was started “to fill a great economic void within the African American community whose access to credit and banking services was historically limited.”
“We consider this more of a partnership than an acquisition as we have enjoyed a long-standing relationship with City National Bank and its great team of bankers who share our common values and commitment to community service,” Industrial Bank said.
The company reinvests more than 60 percent of its assets back into the community each year and works to support community programs, Industrial Bank said in the news release.
The Comptroller Office said in a news release that it acted to close the City National Bank of New Jersey “after finding that the bank had experienced substantial dissipation of assets and earnings due to unsafe or unsound practices.”
“The OCC also found that the bank was undercapitalized and failed to submit a capital restoration plan acceptable to the OCC,” the office said.
The failed company said on its website all deposit accounts, including brokered deposits, have been transferred to Industrial Bank, which has already welcomed its new customers on its website.