Alvin J. Boutte
Alvin J. Boutte, Sr. | |
|---|---|
| Born | 10 October 1929 Lake Charles, Louisiana, U.S. |
| Died | 1 April 2012 (aged 82) Hazel Crest, Illinois, U.S. |
| Occupation(s) | Entrepreneur, banker |
| Known for | Founder, CEO, and chairman of Independence Bank; civil rights activism |
Alvin J. Boutte, Sr. (October 10, 1929 – April 1, 2012) was a distinguished American entrepreneur and banker. He played a pivotal role in founding Independence Bank, serving as its CEO and chairman. During the 1970s, Independence Bank stood as the largest Black-owned financial institution in the United States. Its parent company, Indecorp, Inc., reclaimed this leading position in the 1990s with assets surpassing $200 million.
Boutte maintained close associations with notable civil rights figures including Martin Luther King Jr., Jesse Jackson, and Harold Washington. The Chicago Tribune characterized him as a "moderate militant."
Early life
Hailing from Lake Charles, Louisiana, Boutte was the youngest child among ten siblings in a Louisiana Creole household. His father held multiple labor-intensive jobs during the hardships of the Great Depression. Experiencing racial segregation firsthand under Jim Crow laws, Boutte developed a strong sense of perseverance.
He completed his secondary education at Sacred Heart Catholic High School and earned a degree in pharmacology from Xavier University of Louisiana in 1951, supported by a basketball scholarship. Among his peers was Ernest "Dutch" Morial, who later became New Orleans' first African American mayor.
Following graduation, Boutte enlisted in the U.S. Army, excelling through Officer Candidate School and achieving the rank of captain before his discharge in 1954. He then relocated to Chicago’s Chatham-Avalon neighborhood and acquired Lakeside Pharmacy through a $28,000 loan. Demonstrating entrepreneurial acumen, he rapidly expanded by opening three additional outlets under Independent Drug Stores and emerged as a prominent figure among Chicago’s Black business community.
Independence Bank
In 1964, Boutte collaborated with other African American entrepreneurs from Chicago to establish Independence Bank, partnering notably with George E. Johnson Sr., founder of Johnson Products. Both men encountered significant obstacles securing funding from predominantly white-owned banks. Initially, Johnson was appointed chairman while Boutte served as vice chairman. After initial difficulties, Boutte divested his pharmacy enterprises in 1969 to assume the presidency of Independence Bank. Within three years under his leadership, bank assets surged from $16 million to $55 million. By 1973, Independence had become the largest Black-owned bank nationally; in 1977 it inaugurated a $4 million headquarters located on Chicago’s South Side.
Independence Bank absorbed smaller Black-owned institutions; in 1979 regulators requested that it assume control of two failing banks—Gateway National and Guaranty Bank and Trust. Boutte orchestrated an unprecedented $12 million syndicated corporate loan to auto-parts manufacturer BorgWarner, involving eighty Black- and women-owned banks. He ascended to chairman in 1981.
Under the holding company Indecorp, Independence Bank acquired Drexel National Bank of Chicago in 1988—the first instance of a Black-owned bank purchasing a financially sound white-owned bank. This merger boosted combined assets to $227 million, solidifying Indecorp’s status as the largest Black-owned banking entity. Boutte further diversified operations by introducing services such as foreign currency exchange at O'Hare International Airport.
Nevertheless, deregulation intensified competition from larger white-owned banks. A proposed merger with Detroit-based Omnibanc Corp. fell through in 1994. In 1995, Indecorp was purchased by ShoreBank’s holding company, concluding its 31-year tenure as a Black-owned bank with assets estimated at $279 million. ShoreBank itself succumbed to failure in 2010 amid losses linked to the Great Recession.
Activism and politics
Boutte was deeply engaged in advocating for the civil rights movement and championing African American causes. During the 1960s, he spearheaded a group of Chicago entrepreneurs who collectively raised $55,000 for the Southern Christian Leadership Conference and its leader, Martin Luther King Jr..
In 1972, Boutte took on the role of organizer and treasurer for the National Black Political Convention held in Gary, Indiana. The event attracted 8,000 participants and produced the Gary Declaration, which emphasized the necessity of independent Black political action to drive societal transformation.
A longstanding supporter of Rev. Jesse Jackson, Boutte was a founding board member of Operation PUSH and later assumed its chairmanship. Additionally, he served as vice president of the Chicago Urban League and was actively involved in fundraising efforts for the local NAACP chapter.
Following the death of Mayor Richard J. Daley in 1977, Boutte helped establish the Committee for a Black Mayor to identify a strong African American candidate after Wilson Frost was denied the acting mayor position. Alongside labor leader Charles Hayes as co-chair, Boutte was initially considered a mayoral contender but ultimately withdrew. The committee endorsed Harold Washington, who declined to run at that time but subsequently secured Congressional seats in 1980 and 1982.
After Washington’s 1982 Congressional re-election, Boutte pledged to raise $50,000 to support his prospective mayoral bid. This endorsement proved critical in Washington’s historic election as Chicago’s first Black mayor.
In 1993, Boutte played a key role in arranging a visit by freed Nelson Mandela to Chicago to assist with fundraising efforts for the African National Congress.
From 1969 to 1974, Boutte was a member of the Chicago Board of Education. Known as a "moderate militant," he prioritized enhancing educational opportunities for Black children. Although he sought to resign near the end of his tenure due to business obligations, Mayor Daley declined his resignation. Boutte aligned with a liberal faction on the board but often voiced dissatisfaction with internal power disputes.
Civic and business interests
Boutte held influential positions within Chicago’s civic and commercial communities. His board memberships included prestigious organizations such as the Chicago Symphony Orchestra and the YMCA of Metropolitan Chicago, along with serving as vice chairman of the city’s Better Business Bureau. In addition to civic engagement, he contributed to governance at leading Black-owned enterprises like Johnson Products Company and Chicago Metropolitan Mutual Assurance, as well as major corporations including Midway Airlines and Blue Cross Blue Shield Illinois. Moreover, he was part of a group of Black Chicago businessmen investing in Stellar Continental Cable, an early player in cable television.
Personal life
Boutte married Barbara Gonzaque, whom he met while attending Xavier University. Together they had four children: two daughters, Janice and Jeanette, and two sons, Gregory and Alvin Jr.
Alvin Boutte passed away at age 82 on April 1, 2012, at his residence in Hazel Crest, Illinois. His wife Barbara died five years later in 2017.