UNITY BANK: Stronger and better than ever

Try asking Unity National Bank Executive Vice President John Scroggins a question laced with the potential for controversy and you'll get something back many corporate types won't give; a quick honest answer.

Of the more than 1,500 banks in Texas, Houston based Unity is the only African American owned bank in the entire state.

That's ridiculous!

"I concur. That is ridiculous," said Mr. Scroggins. "Now, that does give us a certain advantage. But the African American community (in Texas) has enough wealth, where we should have more than one bank."

That number was almost zero. In 1985, Riverside National Bank was forced to close its doors after bank failure. The name was changed to Unity that year and in 1989 an African-American group bought the bank.

Since then another group led by former Houston Mayor Dr. Lee Brown, who sits as Unity's Chairman of the Board, has acquired ownership.

Today, Unity has cash assets over $55 million dollars. Its 40 plus employees operate at the original 2602 Blodgett site as well as 1661 Texas Parkway in Missouri City. Unity also has a corporate office at 1330 Post Oak Blvd in the Galleria area. And future plans include developing branches in other Texas cities.

"We're much stronger today. And we're making progress on a daily basis. But like a lot of the small business owners we deal with everyday, we have to be careful and focused on how we spend our dollars," said Unity President Charles "Chuck" Cowell.

Senior Vice President Donna Flowers said because Unity is an independent minority owned bank "we're like an entrepreneur business our self."

Precisely the reason said Mr. Scroggins why Unity can better relate to issues facing small businesses compared to some larger banking institutions.

"No bank can do every deal that's put in front of them," said Mr. Scroggins. "But we have a willingness to listen and to educate. And because many of our customers are minority we have a strong sensitivity to that community."

Because of its historical ties to Houston, (the old Riverside was the first African American bank west of the Mississippi River) Mr. Scroggins says Unity will always have a special relationship with its African American customer base.

At the same time, Mr. Scroggins says Unity must continue "to be a profitable business." Both executives see the influx of non-African Americans into the midtown/Third Ward area as a potential plus for Unity. The bank recently developed a customer service department and has had online banking since October 2006.

"These are fairly mainstream products, but this will allow us to do business with anyone," said Mr. Scroggins.

Like most Texas banks, Unity was forced to diversify its portfolio after the oil crisis of the mid 1980s (WHAT'S INCLUDED IN THE PORTFOLIO?.)

And though the bank is as strong as ever, Mr. Scroggins says that's not necessarily the case when it comes to people choosing banking as a profession.

What is Unity doing about it? Go to Texas Southern or the University of Houston on any given day and you're likely to see Unity execs selling their vocation. What's sort of feedback have they been getting?

"Honestly, the recruitment is not where it should be. Many students don't have the patience to work up the system," said Mr. Scroggins who believes universities should have more curriculums which involve banking.

Maybe more interest in banking can be achieved if the model Unity has installed is followed.

"We are close to fulfilling the mission we started 15 months ago," said Mr. Scroggins.