Black Owned Banks

People don’t often consider the owners of a bank when they open an account or take out a loan at a particular bank. However, in recent years, a trend started using the hashtag #BankBlack. In this movement, citizens of the United States are encouraged to put their money in banks and credit unions that are black-owned. This trend started in wake of all the police shootings which have taken place around the country. A rapper named “Killer Mike” helped start the trend in response to the shootings.

In 1864, after the Emancipation Proclamation ended slavery, U.S. Congress chartered the Freedmen’s Savings and Trust Company in 1865. This bank catered specifically to former slaves. About 20 years later, the first solely black-owned bank was founded: Savings Bank of the Grand Fountain United Order of True Reformers.

Over the 130+ years since, an increasing number of banks have centered their efforts around helping black people set up bank accounts and get loans to purchase homes and start their own businesses.

This helps tremendously, because despite the Fair Housing Act law, some traditional banks continue to not give loans to black people because of their race. A study done by the FDIC revealed that roughly 67% of the home loan originations issued by black-owned banks are to black borrowers. Meanwhile, for non-minority owned banks, this number doesn’t even reach 1 percent!

As of today, the United States has a total of 22 banking institutions which are majority owned by African-Americans.

What Are the Largest Black Owned Banks in America?

Let’s look at two largest black-owned banks in the country. Their size is determined by the number of deposits and assets in which they hold.

#1) OneUnited Bank

OneUnited Bank has a total of 6 branches and is headquartered in Boston, Massachusetts. Its total deposits equal $376 million while its total assets equal $661 million. It is about half a century old and is the biggest black-owned bank in the country. There bank offers workshops which educate low-income communities around Boston about how to better manage their finances. Clients that have a poor credit history are introduced to the concept of second-chance checking accounts and secured credit cards as a way to rebuild that history.

#2) Liberty Bank

Liberty Bank is based in New Orleans, Louisiana. It has 15 branches, total deposits valued at $549 million, and assets worth more than $594 million. Its focus has been helping customers find affordable housing and giving them a chance at higher education.

Where Are the Black Owned Banks Located?

Below, you can view the branch locations of OneUnited, Liberty, and some of the largest black-owned banks: Broadway Federal Bank (now City First Bank), Unity National Bank of Texas, Commonwealth National Bank, Tri-State Bank of Memphis, GN Bank, Columbia Savings and Loan, First Independence Bank, M&F Bank, and Carver Federal Savings Bank.

Rounding out rest of the 22 black owned banks in America are: Alamerica Bank, Citizens Trust Bank, South Carolina Community Bank, Urban Partnership Bank, Metro Bank of Louisville Kentucky, Carver State Bank, Citizens Savings Bank & Trust Company, Industrial Bank, Harbor Bank of Maryland, City National Bank of New Jersey, and United Bank of Philadelphia.