Creating First Interstate African-American-Owned Bank, Boston Bank of Commerce Acquires Peoples National of Miami.

BOSTON--(BUSINESS WIRE)--Sept. 10, 1999--

In a historic deal that will create America's first interstate African-American-owned bank, the Boston Bank of Commerce ("BBoC") has acquired all of the deposits and most of the assets of Peoples National Bank of Commerce, Miami, Florida - the only African-American owned bank in Florida.

To preserve the legacy of Peoples National Bank of Commerce, the bank will be renamed Peoples Bank of Commerce ("Peoples Bank") and will operated as a division of BBoC. Peoples Bank will re-open for business on Monday, September 13, 1999 at Peoples National Bank of Commerce's main office in Miami and branch location in Lauderdale Lakes. With Peoples $36 million in deposits, BBoC's total assets will exceed $145 million.

Peoples National Bank of Commerce was founded in 1992. It was listed in Black Enterprise magazine (June 1998) as the 25th largest black bank in the country. The Boston Bank of Commerce acquired all of the deposits and most of the assets pursuant to a Purchase & Assumption agreement with the FDIC as the receiver of Peoples National Bank of Commerce on September 10th.

"Our primary motivation is to preserve the legacy of Peoples National Bank of Commerce and maintain an African-American banking presence in Florida. The acquisition will also allow us to expand our long standing community development efforts," said Kevin Cohee, chairman and chief executive officer of Boston Bank of Commerce. The closing would have left Florida without a black-owned financial institution, according to Cohee. Instead, customers of the new Peoples Bank can expect to receive the full range of banking services they are accustomed to when the bank reopens this Monday, September 13th.

According to Cohee, all depositors of the former Peoples National Bank of Commerce will receive 100% of their deposited dollars. Deposits will continue to be FDIC insured. Checks and ATM cards issued by the former entity will continue to be honored until replacements are sent. A welcome letter will be mailed to all loan and deposit customers on Monday, September 13, 1999.

This transaction is an important milestone in the history of African-American-owned banks. According to Black Enterprise magazine (June 1999), the top 25 African-American-owned banks represent $4 billion in assets. Each institution operates as a community bank within a major metropolitan area, including New York, Chicago, Boston, Atlanta, and Los Angeles.

"The current wave of bank consolidation has to date bypassed the African-American sector," Cohee said. "Our leadership in consolidating African-American-owned banks will serve as a model for community development. We represent the strength of African-American ownership, management, and community support."

The only African-American-owned bank in New England, The Boston Bank of Commerce has a long history of serving the needs of urban communities. Designated a Community Development Financial Institution by the US Department of Treasury, it has also received outstanding Community Redevelopment Act ratings for the past 5 years by the FDIC. Additionally, Veribanc, an independent bank rating agency, has awarded the Boston Bank of Commerce its highest credit rating.

Majority ownership of the Boston Bank of Commerce is held by Kevin Cohee and senior vice president/marketing Teri Williams, a husband-wife team who also manage the bank. Prior to receiving a BA from Brown University and an MBA from Harvard Business School, Ms. Williams graduated from Martin County High School in Stuart, Florida. Her family has lived in Florida for four generations and continues to reside in Indiantown, Florida. "We are very excited about expanding our community development efforts and making a significant difference in Florida," states Ms. Williams.