Black-Owned Banks in the US

Sulaiman Abdur-RahmanUpdated August 31, 2023

Share this article:

Editor’s note: Lantern by SoFi seeks to provide content that is objective, independent and accurate. Writers are separate from our business operation and do not receive direct compensation from advertisers or partners. Read more about our Editorial Guidelines and How We Make Money.

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:

Bank	City/State	Year Established	Total Assets
Alamerica Bank	Birmingham, AL	2000	$16.4 million
Commonwealth National Bank	Mobile, AL	1976	$65 million
Citizens Trust Bank	Atlanta, GA	1921	$745 million
Carver State Bank	Savannah, GA	1927	$86.3 million
Mechanics & Farmers Bank	Durham, NC	1908	$422 million
Optus Bank	Columbia, SC	1999	$419 million
GN Bank	Chicago, IL	1934	$70.1 million
First Independence Bank	Detroit, MI	1970	$546 million
Adelphi Bank	Columbus, OH	2023	$23.2 million
Columbia Savings and Loan Association	Milwaukee, WI	1924	$23.9 million
Liberty Bank and Trust Company	New Orleans, LA	1972	$1.07 billion
Grand Bank For Savings, FSB	Hattiesburg, MS	1968	$127 million
First Security Bank and Trust Company	Oklahoma City, OK	1951	$75.7 million
Citizens Savings Bank and Trust Company	Nashville, TN	1904	$154 million
Unity National Bank of Houston	Houston, TX	1985	$205 million
City First Bank, National Association	Washington, DC	1998	$1.2 billion
Industrial Bank	Washington, DC	1934	$713 million
The Harbor Bank of Maryland	Baltimore, MD	1982	$353 million
Carver Federal Savings Bank	New York, NY	1948	$724 million
Tioga-Franklin Savings Bank	Philadelphia, PA	2000	$67.3 million
United Bank of Philadelphia	Philadelphia, PA	1992	$59 million
OneUnited Bank	Boston, MA	1982	$609 million

How You Can Support Black-Owned Banks

Here are some ways you can support Black-owned banks:

Open a checking account with a Black-owned bank
Open an online savings account with a Black-owned bank
Open a money market account with a Black-owned bank
Open a no-penalty certificate of deposit (CD) with a Black-owned bank
Borrow mortgage home loans from a Black-owned bank
Borrow commercial real estate loans from a Black-owned bank
Open an individual retirement account (IRA) with a Black-owned bank

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

What is the largest Black-owned bank?

What is the oldest Black-owned bank?

How many Black banks exist today?

Photo credit: iStock/Ridofranz

LCBK0423001

About the Author

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.

Share this article: