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Walking into the headquarters of City National Bank in Newark, N.J., memories of my first bank experience with my father came to mind: a quiet, intimate setting; no fancy lighting or décor; and people who looked like me. Fast-forward to the bank around the corner today, with its video kiosks, fancy ATM machines, gifts, e-banking services, late hours and people of all shades representing Blacks, and you can't help but wonder how City National can compete.
The truth of the matter is City National Bank, along with other Black owned and operated financial institutions, may well be the saving grace of small minority businesses. While many Black-owned banks are slow to change the way they operate or look, they remain true to their mission: They're responsible to the communities they serve. It is to these neighborhood banks that many small business owners return when they fail to obtain the capital they need to grow their businesses from the major banks.
The Turnaround
Established in 1973 in Newark by Charles L. Whigham, a local businessman and community leader, City National is the only Black owned and operated commercial bank in the state of New Jersey. It has branches in Newark, Hackensack and Paterson, N.J., as well as in Harlem, Brooklyn and on Long Island in New York. Faced with closure by federal regulators for allegedly questionable business practices, City National posted a $17 million loss in 1988 and lost most of its longtime clients. Today, the bank shows more than $300 million in assets, $281 million in deposits, $16.3 million in capital and $159.4 million in loans. The turnaround is attributed to the management skills of Louis E. Prezeau, a Haitian native who was named president and chief executive officer in 1989.
"What I offer is a niche market. I do the deals that are too...