Black-Owned Banks in the US
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:
Open a checking account with a Black-owned bank
Open an online savings 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
Open an individual retirement account (IRA) with a Black-owned bank
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.
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