2021 CSBS Community Bank Case Study Competition Journal

2021 COMMUNITY BANK CASE STUDY COMPETITION

recently, large corporate partners that wish to support Liberty’s mission. Recent social justice issues have put Liberty in the spotlight and has allowed society to see them as a conduit to stamp out racial economic disparity. Liberty brought their mission to eight states beginning in the 1990’s when they acquired a series of struggling financial institutions, including Corpus Christi Federal Credit Union, the first and only merger of a commercial bank and a credit union in U.S. history. This merger began the outreach of Liberty, but it was a merger done during one of the only unprofitable periods known to Liberty; the Savings and Loan crisis whose epicenter included the oil-dependent State of Louisiana. In 1994, Liberty established its presence in Baton Rouge, LA, by acquiring Life Federal Savings Bank. They expanded into Mississippi in 2003 by acquiring First American Bank in Jackson. By 2005, Liberty had 15 branches across the Gulf Cost when Hurricane Katrina devastated the communities in their market area. Katrina flooded six of the 15 branches, while the other branches were looted. Buildings were severely damaged and all of their customer’s loan files were destroyed (McDonald et al.). However, Liberty’s response to Katrina foreshadowed their COVID-19 reactions. Their physical branches may have been destroyed, but they continued to serve their clients from Baton Rouge. In the chaos, they developed an initiative called “Rebuild New Orleans” that provided financial assistance for families to come home and reconstruct their homes (McDonald, et al.). Their successful restart came through improved

which is a private institution whose focus is on personal lending and business development in poor communities. The mission is the mainstay, but through resilience and consistent leadership, Liberty’s acquisitions of challenged black-owned minority banks is projected to grow assets upward of $1 billion within the next two years. Their mission, focusing on minority community development, transcends race and attracts public and private partnerships; most “Liberty Bank’s mission is to serve as a catalyst for economic and community development, while generating a fair return to shareholders and being an excellent corporate citizen. Liberty wants to preserve the culture, to preserve the heritage, and afford the African-American community an opportunity to participate in the development of this city and its neighborhoods” (“History of Black Entrepreneurship”). —Liberty Preserves

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