Tri-State Bank to be acquired by New Orleans banking company
Tri-State Bank in Memphis will be acquired by New Orleans-based Liberty Financial Services Inc., the parent company of Liberty Bank and Trust Co., both institutions announced Thursday, June 3.
Financial details of the all-cash transaction were not disclosed.
The merger of the two minority-owned banks is expected to provide Tri-State with more products and resources and expand the footprint of each, enabling both banks to better achieve their missions of providing affordable financial products and services to the underserved.
Liberty operates in nine states. When it enters the Memphis market, it will have about $965 million in assets and offices in 12 cities.
“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,” Alden McDonald, president and CEO of Liberty, said in a release. “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.”
Archie Willis, chairman of Tri-State, called Liberty Bank and Trust “an extremely well-run institution that shares our culture, will enhance our ability to serve our customers and uphold our mission.”
“This transaction is compelling for all of Tri-State’s stakeholders including customers, employees, shareholders and our community,” Willis said.
The transaction has been approved by both companies’ boards, but must still be approved by Tri-State shareholders and meet customary regulatory approvals.
The transaction is expected to close by the end of 2021.
Tri-State Bank of Memphis was founded in 1946 by the late Dr. J. E. Walker, and his son, the late A. Maceo Walker. It operates from a single office in Memphis and reported approximately $105 million in assets and $95 million in deposits as of this spring.
Liberty Financial Services was founded in 1972. It had about $860 million in total assets as of March 31 and is now the largest African American owned financial institution in the U.S., according to the release.
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