Robert L. Johnson's plan to acquire an ailing, one-branch thrift in Orlando and build it into the nation's largest black-owned banking company would create a formidable competitor for the handful of other companies that harbor similar ambitions.
Two other black-owned companies are trying to build online banks targeting African-Americans, and the nation's largest black-owned thrift company, Carver Bancorp Inc. in New York, has talked about expanding its operations to cover the entire Middle Atlantic region.
But according to Mr. Johnson, who founded Black Entertainment Television and sold it for $3 billion in 2000, "none have the financial wherewithal" that he and his investor group bring to the table.
Mr. Johnson said this week that he plans to acquire the $9.4 million-asset Metro Bank, rename it Urban Trust, and move its headquarters to Bethesda, Md., the Washington suburb where his holding company, RLJ Cos., is based. The Washington Post reported his plans Wednesday.
In an interview Wednesday, Mr. Johnson said Urban Trust would keep its branch in Orlando and open a second one in downtown Washington this summer. He also said his long-term plans include opening more branches in Florida and Washington; marketing student loans, subprime credit cards, and other products to consumers nationwide; and possibly buying other banks.
He said that he has agreed to pay "several millions of dollars" for the privately held Metro, and that he and his partners would inject a substantial amount of capital into the thrift, which lost $1.6 million last year. He would not say how much capital would be injected.
The deal is expected to close next week; the Office of Thrift Supervision has already signed off on the change in control, Mr. Johnson said.
William Michael Cunningham, the president and chief executive of Creative Investment Research Inc., a Minneapolis firm that focuses on minority banking, said Urban Trust could become "a black banking powerhouse."
Joseph Gladue, an analyst at Cohen Bros. & Co. in Philadelphia, agreed with that assessment and said Mr. Johnson's entry into the banking business might draw more attention and investment to the sluggish black-owned banking industry.
"People are going to be looking at black-owned banks as acquisition targets, and that's going to help their stock prices," he said.
A onetime lobbyist for the cable television industry, Mr. Johnson founded BET in 1980. After selling it to Viacom Inc. he stayed on as the network's chairman until December.
Since selling BET, Mr. Johnson has made no secret of his desire to break into banking. He bought a small stake in Independence Federal Savings Bank of Washington in 2003. He looked seriously at buying the $167 million-asset company but gave up when Independence became mired in a bitter feud with its largest shareholder.
However, that was a minor setback for Mr. Johnson, who owns the National Basketball Association's Charlotte Bobcats and recently created a hedge fund in a joint venture with Deutsche Asset Management.
He has picked Dwight L. Bush, who was the vice president for corporate development at Sallie Mae, to be Urban Trust's CEO.
Mr. Johnson said that Florida and Washington are strong markets for a bank that targets blacks. Large numbers of financially well-off African-Americans are moving o Florida, he said, and the Washington market is home to many affluent and middle-class black consumers.
Metro was founded as a black-owned bank in 1963, but it struggled for most of its history. In 2003, it was acquired by Frank Hanna, a white businessman from Atlanta, but he always intended to return it to African-American control, according to Mr. Johnson.
Urban Trust would focus on traditional relationship banking in Orlando and Washington, but Mr. Johnson said it would develop several Internet-based business lines that it could market around the country, including student loans and subprime credit cards.
"In this age of digital transmission … a strong national brand can be leveraged nationwide in a non-bricks-and-mortar capacity," he said.
Some other black-owned banking companies have similar designs.
Last month the $541 million-asset OneUnited Bank of Boston launched an online high-interest savings account aimed at African-Americans. Another Boston company, BankBlackwell, is organizing an Internet bank aimed at African-Americans.
The $646 million-asset Carver has not announced any Internet ventures, but in 2004, it made an unsuccessful bid for Independence. It said then that it aimed to build a franchise stretching from New York to Washington.
