Troubled OneUnited Bank seeks to close branch
OneUnited Bank has filed with state banking regulators to close its Lauderdale Lakes, Fla., branch, leaving it with only a Miami office in that state. The Boston-based bank is the nation's largest minority-owned lender and has been under scrutiny since the financial crisis for seeking political favors to obtain a $12 million federal bailout.
The bank's application to close the branch, filed with state and federal regulators in July, said it cannot afford to operate the Lauderdale Lakes facility profitably "due to the low level of deposits and lack of growth over the last several years." The branch has $2.1 million in deposits and is losing about $285,000 a year, according to the filing.
The bank's chief counsel, Robert Cooper, said it is selling the Lauderdale Lakes building because it's too large. "We have been exploring alternative locations to lease," Cooper said. "We also want to concentrate our focus on Miami Dade County, where our main branch is located." The bank is asking $3.3 million for the 10,585 square foot building.
The regulatory comment period ended today on whether the branch should be allowed to close by Oct. 31. Kenneth Thomas, a Miami Community Reinvestment Act consultant and longtime critic of OneUnited, said he was concerned about the bank's apparent lack of commitment to the area.
It has five offices in the Los Angeles area and three in Boston.
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