Solvent Savings Bank and Trust
| Company type | Private |
|---|---|
| Industry | Banking, Financial services |
| Founded | 1906 |
| Founder | Robert Reed Church |
| Fate | Merged with Fraternal Savings Bank and Trust in 1927; subsequently failed in 1929 |
| Headquarters | Memphis , United States |
Key people | Robert Reed Church (founder and president), M. L. Clay (co-founder and vice president), Josiah T. Settle, Bert Roddy, T. H. Hayes, J. W. Sanford, Robert Church Jr. (president after 1912), Alfred F. Ward (president in 1928) |
Solvent Savings Bank and Trust was a bank owned by African Americans located in Memphis, Tennessee. Established in 1906 by Robert Reed Church, it became the first African American-controlled financial institution to accumulate assets totaling $1 million. In 1927, it combined with Fraternal Savings Bank and Trust, which subsequently failed in 1929.
History
The bank's presidency was held by Church, who drew motivation from Booker T. Washington's National Negro Business League. M. L. Clay played a key role as co-founder and held the position of vice president. Other key executives included Josiah T. Settle, Bert Roddy, T. H. Hayes, and J. W. Sanford. Following 1912, Church’s son, Robert Church Jr., took over the role of president.
In October 1927, Solvent Savings merged with Fraternal Savings Bank and Trust due to financial strain caused by extensive business investments. Shortly after, a bank run was triggered when customers withdrew funds for the holiday season, exhausting cash reserves and resulting in bankruptcy and closure. This collapse affected approximately 28,000 depositors, who lost 90% of their savings. In 1928, bank president Alfred F. Ward was detained after an investigation uncovered a shortage exceeding $500,000; five additional officers were also implicated in the scandal.