Tuesday
Sep282004
Detroit Business Leaders Plan to Open New Black Community Bank
Tuesday, September 28, 2004 at 10:33AM - Originally published in Crain's Detroit Business September 27, 2004, Monday
Biz leaders plan to open new bank in southwest Detroit
By:Katie Merx
With $3 million, a fellow business leader at his side and a president with banking experience signed up, Donald Snider says he's ready to open Detroit's second African-American-owned community bank.
On Monday, Snider, CEO of Detroit-based Paper Plas Inc., filed an application with the Michigan Office of Financial and Insurance Services and the Federal Deposit Insurance Corp. to open a state-chartered bank in southwest Detroit.
Snider said First Spirit Bank will cater to underserved Hispanic and African-American residents and small businesses in southwest Detroit. He hopes to find a location near Springwells and Vernor for the bank that he plans to open in late 2005.
Snider plans to be First Spirit's chairman. Lizabeth Ardisana, ASG Renaissance CEO and president of the Michigan Hispanic Chamber of Commerce, plans to serve as vice chairman.
First Spirit needs to raise $10 million in equity capital, Snider said. The bank has commitments for one-third of that so far.
Isaac Darden, a senior banker from St. Louis-based minority-owned Gateway National Bank, has committed to work as First Spirit's president, Snider said.
Snider doesn't have banking experience. But a college friend who successfully opened a bank in Georgia encouraged Snider to open a community bank in Detroit.
Southwest Detroit in particular is underserved, Snider said.
Armando Cavazos, President and CEO of Ferndale-based Credit Union One, which also serves southwest Detroit, has said many financial institutions pulled out of the heavily Hispanic region because of hard times and high crime rates.
First Spirit plans to focus on microloans for individuals and businesses, Snider said. He defined those as loans of up to $50,000. The bank hopes to add mortgage services down the road.
Snider said he is working with law firm Dykema Gossett P.L.L.C. in Detroit and Southfield-based accounting firm Plante & Moran P.L.L.C.
Snider said his goals include helping small businesses have access to capital, educating consumers about smart banking and helping protect them from predatory lending practices.