- Originally published in Crain's Detroit Business September 27, 2004, Monday
Copyright 2004 Crain Communications, Inc.
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.