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News & Articles Continued...
Banking on Hispanic Americans
U.S. banks are downright
zealous in their pursuit of
the Hispanic market
Hispanic-Owned Banks Rise to the Top
Long before
large American banks got
wind of the 2000 census,
a strong force of Hispanic-owned
and -operated financial institutions
were already in business.
Armed with hands-on knowledge
of their own culture, language
and buying habits, these
banks have a found a successful
niche in Hispanic communities
across the nation. Here are
a few that range from the
well-established to the freshly
minted:
OCEAN BANK:
Two Decades of Growth
Ocean Bank
of Miami got its start the
same way many of its small
business customers do: in a
humble, grassroots sort of
way. Chartered in 1982, the
bank began operating out of
a trailer that housed 18 eager
employees who shared a desire
to succeed.
By the end of its first fiscal year, Ocean
Bank had more than $100 million in deposits.
The following year, it also had a new home
at its current headquarters—on the same
location where the trailer once stood. Today,
the bank has 22 branches, 923 employees and
more than 60,000 customers. It has $4.1 billion
in assets.
Jose A. Concepcion, vice chairman of the
board, attributes the bank’s success
to a board of directors who gave it a mandate
of nurturing close, long-term relationships
with customers.
“Many of South Florida’s most
prominent real estate developers and business
leaders started banking with us 20 years
ago, when their own companies were just starting
up,” says Concepcion. Ocean Bank, which
in 2002 was awarded the Greater Miami Chamber
of Commerce Hispanic Business Community Involvement
Award, serves a customer base that’s
80 percent Hispanic but has seen an increase
in its number of non-Hispanic customers over
the last five years.
Going forward, the goal is to “be a
driving force in improving the quality of
life for those who live in our community.”
BANCO POPULAR:
America’s Largest Latin
Bank
When a group
of concerned businessmen noticed
a segment of Puerto Rico’s
population falling prey to
usury practices in 1893, they
took a bold step and opened
Banco Popular. During the years
that followed, the bank established
a presence in nearly every
town on the island, brought
the FHA program to Puerto Rico
in the 1960s, and became the
top U.S. Small Business Administration
(SBA) lender in Puerto Rico.
 Banco
Popular reached American shores in 1961 when
it opened its first branch in the Bronx.
The bank has since expanded its U.S. presence
aggressively, guided by the vision of becoming “the
preferred financial provider of Hispanics
in the U.S.,” according to Manuel Chinea,
senior vice president of marketing and product
development.>
Headed by Roberto R. Herencia, its president,
Banco Popular operates in the six states
that account for more than 60 percent of
the Hispanic population in the U.S.: New
York, New Jersey, Illinois, California, Texas
and Florida. As the largest Hispanic bank
on the U.S. mainland, the 1500-employee institution
is the eighth-largest SBA lender in the country,
and ranks either No. 1 or 2 in lending to
minorities and women in each of its markets.
Its assets total $30.7 billion.
Even with 110 years of experience under
its belt, Banco Popular faces challenges.
According to Chinea, “breaking out of
the Hispanic bank” stereotype to become
known as a community bank is an ongoing goal. “There’s
no community out there that’s 100 percent
Hispanic or any other ethnic group for that
matter. Therefore, as a bank we need to serve
the whole community.”
U.S. CENTURY BANK:
Overnight Success
Last year
wasn’t the best for business,
but at least one group of persistent
entrepreneurs managed to not
only get their new bank opened,
but also rake in a record $22
million in capital—the
largest ever for a new, state-chartered
independent bank in the state’s
history.
Miami-based U.S. Century Bank opened its
doors in October.
“There was capital available looking for a safe investment,” says Ramon
Rasco, chairman of the board. “People recognized that we had experience
doing this and saw that we put together an excellent management team,” adds
the former board member of Ready State Bank (which has since been acquired by
Union Planters Bank). “They felt comfortable investing with us.”
The bet those investors took is already
paying off. In January, U.S. Century Bank
announced that its year-end figures totaled
$51 million in deposits, $13 million in loans
and $81 million in total assets. “Support
from our shareholders helped pave the way
for our strong start,” says Rasco.
But Octavio Hernandez, president and CEO,
knows that just because business was good
during the bank’s first few months doesn’t
mean it can rest on its laurels. With one
location in Hialeah and another on the way,
10-employee U.S. Century Bank—which
serves primarily a Hispanic customer base—knows
anyone’s first two years in business
can be tough.
“Things have gone fairly smoothly for
us, but we do expect to face the same challenges
that everyone else faces around here,” says
Hernandez.
“This is a very competitive environment
and we will be competing with some of the
big boys for some of the best accounts in
town.”
LONE STAR NATIONAL BANK:
Serving Small Business
At Lone Star
National Bank, success hasn’t
come without having to break
down barriers. In fact, the
Pharr, Texas-based institution
has had to prove itself numerous
times, particularly every time
it moves into a new community.
“We’ve had to show a true interest
in helping the community grow, and prove
that we’re genuinely interested in all
small businesses—not just Hispanic businesses,” says
A. Jabier Rodriguez,  president
and CEO. “We’ve done this by taking
the time to establish rapport in the communities
we serve.”
Lone Star National Bank’s path to success
was laid in 1983, the year the bank was founded
by a handful of ambitious businessmen. Spearheading
the new venture was Rudy Margo, who saw a
void in the small business financial services
sector. “He felt like banks weren’t
focused enough on small business,” says
Rodriguez, who joined Lone Star National
Bank in 1993. “The bank was started
with the idea of making the community more
progressive, with a focus on family-run and
professional small businesses.”
With seven locations and 180 employees,
Lone Star National Bank has about $560 million
in assets, up from $60 million 10 years ago.
An eighth location is currently under construction,
and the bank plans to add two more locations
in 2003.
>“Our goal is to double our equity
and grow to approximately $1 billion in assets
over the next three years,” Rodriguez
says.
UNITED AMERICAS BANK:
Breaking Down Barriers
Jorge Forment
knows that many Hispanic immigrants
are wary of national banks,
but that hasn’t stopped
him from doing everything he
can to lure them in the doors
of Atlanta-based United Americas
Bank, Georgia’s first
Hispanic-owned financial institution. “The
distrust of the banking system
coupled with the numbers of
undocumented people here has
left Hispanics to wonder why
they even need to establish
a relationship with a bank,” says
Forment, the company’s
president. “It’s
our job to clear up those questions
for them.”
With 25 employees and two locations, United
Americas Bank has been breaking down the
barriers between Latin immigrants and the
banking system since it opened in 1999. According
to Reinaldo Pascual, one of the bank’s
founders and current director and secretary,
a group of Hispanic businessmen founded it
after determing there was a need for such
an institution to meet the needs of the surging
Hispanic population.
With $75 million in assets, United Americas
Bank has been well received, says Forment,
who credits much of the success to the fact
that its employees and leadership team speak
Spanish and thoroughly understand the Latin
culture. “You can go to some of the
big banks that want to target the Hispanic
population and find one or two people who
speak Spanish,” says Forment. “But
we’re all Hispanic here, and that makes
a difference.”
—Bridget McCrea
LANDING THE LOAN
Tips for getting a loan—and
building a relationship with
your  bank
Any entrepreneur looking for a loan would
do well to follow these helpful tips, culled
from loan officers:
1) Be Prepared: Bankers
want to see an executive summary,
a balance sheet, three years’ worth
of Profit-and-Loss statements,
an income statement, and a
cash-flow analysis. It also
helps to bring anything that
will help them understand what
your company does—including
products or photos.
2) Calm Their Fears: Loan officers
aren’t just looking for the standard
C’s—capital, collateral and conditions.
They also value one more—comfort. So
start with a bank you’ve worked with
before; they’d rather work with someone
they know. If you’re dealing with a
new lender, tell the loan officer that you’ll
move all your accounts to the bank should
the loan be approved.
3) Be Honest: Don’t fudge the
truth about your credit history. Put together
a letter explaining past misdeeds in detail
and highlighting the positive side of your
credit record.
4) Be Professional: Follow old-fashioned
business etiquette and mores: Dress up for
your meeting, then remember to send a thank
you note or e-mail.
5) Be Reasonable, Realistic: Ask
for what you really need.
6) Keep Communicating: Once you get
the loan, keep the lines of communication
open—especially if you plan to ask for
more money later.
—-Jack Vega
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