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Black-Owned Banks in the US

Black-Owned Banks in the US
Sulaiman Abdur-Rahman
Sulaiman Abdur-RahmanUpdated August 31, 2023
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There are 22 Black-owned banks operating in the United States as of 2023. These Black-owned commercial banks and savings associations are identified by the Federal Deposit Insurance Corporation (FDIC) as Minority Depository Institutions (MDIs). The oldest Black-owned bank in the U.S. is Citizens Savings Bank and Trust Company of Nashville, Tennessee, established in 1904.In terms of total assets, the largest Black-owned bank in the U.S. is City First Bank, National Association. This Washington, D.C.-based financial institution has about $1.2 billion in total assets as of June 2023.The FDIC maintains a complete list of MDIs on its website, including 22 banks with majority Black ownership or a majority Black board of directors. Below we provide an overview on the Black-owned banks in the U.S.

What Are Black-Owned Banks?

Black-owned banks are any FDIC-insured depository institution with majority Black ownership or a majority Black board of directors. This includes any commercial bank or savings association with 51% or more of its voting stock owned by Black individuals.Black-owned banks are officially recognized by the FDIC as Minority Depository Institutions (MDIs). Other MDIs include banks with majority Asian American, Hispanic American, or Native American ownership.

Black-Owned Banks History and Background

The history of Black-owned banks in the United States is tied to the history of race and racism in America. The 13th Amendment to the U.S. Constitution abolished slavery in 1865, and Congress established a new institution — Freedman’s Savings Bank — to provide former slaves with access to financial services and capital.Freedman’s Savings Bank had 37 branches across 17 states during its nine years of existence. After the Reconstruction era ended, many Black people in the United States found themselves unable to attain equal access to credit in the mainstream banking system.In 1904, R.H. Boyd, Preston Taylor, and J.C. Napier founded the first Black-owned bank in Tennessee to create opportunities for Black Americans to build wealth and economic security. This historic institution is now known as Citizens Savings Bank and Trust Company — America’s oldest Black-owned bank.There are now 22 Black-owned banks operating in the United States as of 2023, according to the FDIC’s list of MDIs.

How Many Black-Owned Banks Exist in the US?

As mentioned above, there are now 22 Black-owned banks operating in the United States as of 2023. This is according to the FDIC’s list of MDIs. The oldest is Citizens Savings Bank and Trust Company, and the largest by assets is City First Bank, National Association.

Black-Owned Banks Listed by State

Here are the 22 Black-owned banks by state as of March 31, 2023:
BankCity/StateYear EstablishedTotal Assets
Alamerica BankBirmingham, AL2000$16.4 million
Commonwealth National BankMobile, AL 1976 $65 million
Citizens Trust BankAtlanta, GA1921$745 million
Carver State BankSavannah, GA1927$86.3 million
Mechanics & Farmers BankDurham, NC1908$422 million
Optus BankColumbia, SC1999$419 million
GN BankChicago, IL1934$70.1 million
First Independence BankDetroit, MI1970$546 million
Adelphi BankColumbus, OH2023$23.2 million
Columbia Savings and Loan AssociationMilwaukee, WI1924$23.9 million
Liberty Bank and Trust CompanyNew Orleans, LA1972$1.07 billion
Grand Bank For Savings, FSB Hattiesburg, MS1968$127 million
First Security Bank and Trust CompanyOklahoma City, OK1951$75.7 million
Citizens Savings Bank and Trust CompanyNashville, TN1904$154 million
Unity National Bank of HoustonHouston, TX1985$205 million
City First Bank, National AssociationWashington, DC1998$1.2 billion
Industrial BankWashington, DC1934$713 million
The Harbor Bank of MarylandBaltimore, MD1982$353 million
Carver Federal Savings BankNew York, NY1948$724 million
Tioga-Franklin Savings BankPhiladelphia, PA2000$67.3 million
United Bank of PhiladelphiaPhiladelphia, PA1992$59 million
OneUnited BankBoston, MA1982$609 million

How You Can Support Black-Owned Banks

Here are some ways you can support Black-owned banks:Recommended: Small Business Grants for Minorities

The Takeaway

Black-owned banks have provided consumer loans and small business lending to low-income communities for more than 100 years. These FDIC-insured depository institutions play a key role in the U.S. banking system, offering under-served communities with access to credit and personal bank accounts.If you’re looking to earn interest on your savings, Lantern by SoFi can help. Our online banking marketplace allows you to compare annual percentage yields (APYs) and choose a high-yield savings account that’s right for you.Lantern makes it easy to compare high-yield savings rates.

Frequently Asked Questions

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What is the oldest Black-owned bank?
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Photo credit: iStock/Ridofranz

About the Author

Sulaiman Abdur-Rahman

Sulaiman Abdur-Rahman

Sulaiman Abdur-Rahman writes about personal loans, auto loans, student loans, and other personal finance topics for Lantern. He’s the recipient of more than 10 journalism awards and served as a New Jersey Society of Professional Journalists board member. An alumnus of the Philadelphia-based Temple University, Abdur-Rahman is a strong advocate of the First Amendment and freedom of speech.
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