One of the largest black banks in the country has grown after an acquisition announced Thursday merged two the branches of the institution in New Jersey and one in Harlem.
The Industrial Bank, which is based in Washington D.C., was founded in 1934 and has acquired the New Jersey’s City National Bank after being closed down on November 1 by the Office of the Comptroller of the Currency (OCC). The company now has three new branches after acquiring the black bank.
The Industrial Bank’s president and CEO B. Doyle Mitchell, Jr. in an official statement released on Thursday, said: “This acquisition will allow us to expand our footprint into the northeast region and deepen our commitment to impacting economic development in various communities,”
The company said in a recent press release that the Industrial Bank and the City National Bank are alike in that it was beginning “to fill a great economic void within the African American community whose access to credit and banking services was historically limited.”
According to the press release by the Industrial Bank, it claims that the company invests back into the community more than 60 percent of its assets each year and works to support community programs.
The OCC said in a press release that it took action of closing the New Jersey’s City National Bank because “after finding that the bank had experienced substantial dissipation of assets and earnings due to unsafe or unsound practices.”
The office also states that “The OCC also found that the bank was undercapitalized and failed to submit a capital restoration plan acceptable to the OCC.”
The bankrupt company has stated on its website that all deposit accounts, including contracted deposits, have been transferred to Industrial Bank, which has already welcomed City National Bank customers on its website.