Black-owned banks merge

Wednesday, May 2, 2001 | 11 a.m.

THE ASSOCIATED PRESS

LOS ANGELES -- Backed by majority shareholders Ervin "Magic" Johnson and Janet Jackson, Founders National Bank of Los Angeles, Boston Bank of Commerce and Miami's Peoples Bank of Commerce have agreed to merge, combining assets of $270 million.

In a move to unite inner-city communities, 42-year-old Kevin Cohee, chairman and chief executive of the merged bank, said the deal will establish a financial network and spur economic development in lower-income neighborhoods.

With five branches in Los Angeles, the newly formed bank will have a total of 12 branches in the United States that will take on the name Founders Bank of Commerce. It's one of the largest black-owned banks in the nation.

archive