2021 CSBS Community Bank Case Study Competition Journal

2021 COMMUNITY BANK CASE STUDY COMPETITION

are provided to minority owned contractors for working capital needs used in the participation of New Orleans construction projects (Cloy). In Detroit, Liberty, the W.K. Kellogg Foundation, and JPMorgan Chase have also funded the Entrepreneurs of Color Fund which helps provide capital to small minority owned businesses (Cloy). By serving their communities, Liberty and its affiliates promote the economic well-being of all who inhabit it. Market Demographic Changes Over the Past Decade Liberty’s primary depositors and borrowers have always been from the underserved African-American communities, like Montgomery and Tuskegee, AL. Liberty’s market areas are economically depressed and underserved. Tuskegee had only two banks, Regions and Liberty, but does not have the demographics to support two banks—Liberty remains.

Liberty has added major partnerships with municipalities, such as the city of Montgomery and Kansas City, where they have arranged for municipalities to deposit their resources with Liberty, supporting their mission. Although Liberty’s deposit base is still predominately black, the BLM and #BankBlack movement have directed deposits to Liberty from outside the urban cores. The BLMmovement has pushed down the physical market boundaries for deposits and non-voting equity investments. Liberty has allies outside of the urban cores. Liberty’s Support of Local Projects to Serve Underserved Areas and Promote Economic Development Local Projects: Liberty empowers young people in the impoverished market areas they serve by providing financial aid and interaction to rebuild the educational system. Like many community banks, Liberty sustains a high level of presence by sponsoring local school sports teams and raising funds for school programs. Liberty partners with non-profit organizations and local churches to provide free financial literacy seminars on financial products, the importance of credit, and budgeting. Liberty makes it part of their mission to help build financial wealth in African-American communities and holds a strong belief that it begins with financial education. To help with these relationships, Liberty acquired a bank whose portfolio largely consisted of loans to churches, providing a bridge for outreach. Liberty sees a clear obligation to serve young Americans and to address long-standing

Liberty’s primary depositors and borrowers have always been from the underserved African- American communities, like Montgomery and Tuskegee, AL.

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