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There are currently more than 250 Black-owned banks and credit unions operating in 28 states. Of the 250+, only 21 are banks; the rest are Black-owned credit unions. The oldest Black-owned bank in the U.S. is Citizens Savings Bank and Trust Company of Nashville, Tennessee, established in 1904.The largest Black-owned bank in the U.S. is OneUnited Bank, which has been named to Inc.’s 2024 Best in Business list in Financial Services. The bank has financed nearly $1 billion in loans to moderate- to low-income communities.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.
How Many Black-Owned Banks Exist in the US?
As mentioned above, there are now 21 Black-owned banks operating in the United States. 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 OneUnited Bank.
Black-Owned Banks Listed by State
Here are the Black-owned banks by state as of 2024:
Bank
City/State
Year Established
Total Assets
Alamerica Bank
Birmingham, AL
2000
$17.7 million
Commonwealth National Bank
Mobile, AL
1976
$66.3 million
Citizens Trust Bank
Atlanta, GA
1921
$793 million
Carver State Bank
Savannah, GA
1927
$106 million
Mechanics & Farmers Bank
Durham, NC
1908
$498 million
Optus Bank
Columbia, SC
1999
$662 million
GN Bank
Chicago, IL
1934
$64 million
First Independence Bank
Detroit, MI
1970
$644 million
Adelphi Bank
Columbus, OH
2023
$68 million
Columbia Savings and Loan Association
Milwaukee, WI
1924
$24 million
Liberty Bank and Trust Company
New Orleans, LA
1972
$1.07 billion
Grand Bank For Savings, FSB
Hattiesburg, MS
1968
$252 million
First Security Bank and Trust Company
Oklahoma City, OK
1951
$174 million
Citizens Savings Bank and Trust Company
Nashville, TN
1904
$181 million
Unity National Bank of Houston
Houston, TX
1985
$201 million
City First Bank, National Association
Washington, DC
1998
$1.3 billion
Industrial Bank
Washington, DC
1934
$755 million
The Harbor Bank of Maryland
Baltimore, MD
1982
$382 million
Carver Federal Savings Bank
New York, NY
1948
$731 million
Tioga-Franklin Savings Bank
Philadelphia, PA
2000
$70 million
United Bank of Philadelphia
Philadelphia, PA
1992
$53 million
OneUnited Bank
Boston, MA
1982
$756 million
How You Can Support Black-Owned Banks
Here are some ways you can support Black-owned banks:
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
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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.
