Magazine article Black Enterprise

Emma Chappell Drops CEO Status

Magazine article Black Enterprise

Emma Chappell Drops CEO Status

Article excerpt

Head of United Bank takes director's seat after Federal Reserve enforcement

The president and CEO of United Bank of Philadelphia (No. 14 on BE 100 BANKS LIST has relinquished daily control of the bank she founded in an effort to save an institution with a proud history of community investment in the City of Brotherly Love.

Opened by Emma Chappell in 1992, United Bank of Philadelphia is the first full-service commercial bank controlled by an African American in nearly 70 years. But Chappell stepped down in May soon after the bank signed an enforcement agreement with the Federal Reserve Bank of Philadelphia.

"As a state-chartered bank that elected to be part of the Federal Reserve System," says Herbert Taylor, vice-president and secretary of the Federal Reserve Bank of Philadelphia, "we are their primary regulator and we routinely examine the bank for safe and sound business practices. Our concern was with the overall management of the bank, and not with a particular individual."

He added that a written agreement is the least severe of formal actions that the Federal Reserve can take when they feel an institution needs to improve its financial situation.

Once named "Bank of the Year" by the U.S. Small Business Administration, United Bank has nearly $150 million in assets and $7.7 million in Tier 1 capital that guards against sudden losses. But in the 1999 calendar year, United Bank reported net losses of $1.2 million with the Securities and Exchange Commission. …

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