Black banks offer huge stock returns.Long shunned by Wall Street, shares of publicly traded African American African American Multiculture A person having origins in any of the black racial groups of Africa. See Race. banks are now some of the nation's best performing stocks. "For various reasons, these stocks have outperformed others," says Joe Gladue, a banking analyst at Philadelphia-based Cohen cohen or kohen (Hebrew: “priest”) Jewish priest descended from Zadok (a descendant of Aaron), priest at the First Temple of Jerusalem. The biblical priesthood was hereditary and male. Bros BROS Brothers BROS Benefits and Retirement Operations Section (King County, Washington) BROS Barnes and Richmond Operatic Society (London, UK) . & Co. Gladue has measured the performance of both black-owned banks and major market indices from Dec. 29, 2000, through Dec. 26, 2003. Some of the factors for the stock growth of black banks include rising profits, lower interest rates, and greater visibility--all of which allow the banks to deliver higher returns to their investors. Among the handful of black-owned banks or thrift stocks that have traded with any regularity and performed very well since 2000 are Los Angeles-based Broadway Financial Corp., the holding company of Broadway Federal Bank (No. 10 on the BE BANKS list with $204.9 million in assets); Atlanta's Citizens Bancshares Corp., parent company of Citizens Trust Bank (No. 5 on the BE BANKS list with $277.3 million in assets); New York's Carver Bancorp Carver Bancorp, Inc. is the holding company of Carver Federal Savings Bank. It is a public company, and notable for being the first and only black-managed bank on NASDAQ and one of only 11 black-managed publicly traded companies, making it the largest black-owned Inc., holding company of Carver carver /car·ver/ (kahr´ver) a tool for producing anatomic form in artificial teeth and dental restorations. carver (carving instrument), n Federal Savings Bank Noun 1. federal savings bank - a federally chartered savings bank FSB savings bank - a thrift institution in the northeastern United States; since deregulation in the 1980s they offer services competitive with many commercial banks (No. 2 on the BE BANKS list with $484.4 million in assets); and Independence Federal Savings Bank of Washington, D.C. (No. 6 on the BE BANKS list with $251 million in assets). In March, Bancorp acquired Independence in a transaction valued at $32.6 million. The above-market performance of the black-owned bank stocks is profound because the appreciation came in a tough and highly competitive banking environment, explains James E. Young, president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Citizens Bancshares.
TOP-PERFORMING
BLACK BANKS
Shair Price
Institution 12/29/00 12/26/03 Gain
Broadway $3.81 $13.52 254.86%
Citizens 5.50 13.00 136.36
Carver 9.75 25.75 164.10
Independence 8.68 23.20 167.28
Note: Over the same three-year period,
the S&P 500 Index lost 17%, the NASDAQ
Composite Index lost 20.1%, and the
NASDAQ Bank Index gained 48.7%.
SOURCE: COHEN BROS & CO.
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