Black-Owned Bank in L.A. Weighs Opening O.C. Office

Trying to determine whether there’s support for opening an Orange County office, Founder’s National Bank of Los Angeles is relying on a tried-and-true method: word-of-mouth. Last Saturday, about 35 business owners and community leaders met at Mimi’s Cafe in Tustin where officials from the largest black-owned commercial bank west of the Mississippi spoke of expansion plans.

The meeting was held during “Change Bank Month,” an effort by an Inglewood group called Recycling Black Dollars to encourage African Americans to build the community’s wealth by investing in black institutions. So far this month, the group has succeeded in getting $1.7 million in new accounts opened at three black-owned banks in Los Angeles, including Founders.

“This is a growing movement to make our banks stronger,” said Muhammad Nassardeen, the group’s chief executive officer, who hosted the breakfast along with Barbara Hearnes, owner of Galleri Beautiful, an Orange County art dealer.

Founders would consider a full range of options in Orange County, which has no black-owned banks. A self-contained branch could be opened with $25 million in new accounts, while a supermarket branch could be established with $5 million. Even with fewer deposits, Founders could lease office space for a customer service representative, said Eric Lee, the bank’s business retention liaison.

“Orange County has traditionally been one of the most profitable and economically prosperous counties in the U.S.,” said Lee, adding that the 7-year-old bank has assets of $100 million and a loan portfolio of $70 million. “There is a minority population that deserves to be served with the wide range of banking products they may not be receiving from mainstream organizations.”

This month, Founders formed a partnership with Shell Oil Co. that made the bank’s job easier to reach into underserved communities. Still, Founders hopes its grass-roots effort pays off. “I want to do what I can to encourage my customers to open up accounts,” said Ernesta Wright, owner of Elite Beauty Supply in Santa Ana, who keeps a sign-up sheet at her shop. Within two days, she netted five new customers for the bank.

Daryl Strickland covers tourism and small and minority business issues for The Times. He can be reached at (714) 966-5670, and at daryl.strickland@latimes.com