Black-Owned Banks In America: A State-by-State List (2024)

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According to the Federal Reserve, Black people are two times more likely to be denied credit than their white counterparts—regardless of income level. This discriminatory practice, also known as redlining, has contributed to disparities in wealth between Black and white households.

To combat this inequality, Black-owned banks have emerged across the U.S., providing economic security for disenfranchised Black communities that have long been underserved by financial institutions.

How Many Black-Owned Banks Are There in America?

According to FDIC data, only 23 out of 5,400 insured financial institutions in the United States were owned and operated by Black people as of 2018.

The number of Black-owned banks in America has declined over the past two decades, decreasing by more than 50% from 2001 to 2018. The 2008 financial crisis was particularly damaging to the income level and employment rate of Black Americans and led to the dwindling of Black-owned banks.

Black-owned banks have far fewer assets at their disposal than major players in the banking industry. OneUnited, the largest Black-owned bank in the U.S., manages around $625 million in assets. In comparison, Bank of America manages nearly $2.5 trillion.

Who Owned the First Black Bank?

Rev. William Washington Browne, a former slave and Union Army officer from Georgia, founded the first Black-owned bank in America—True Reformers Bank—on March 2, 1888. The name of the bank was inspired by the Grand Fountain United Order of True Reformers, a Black fraternal organization established by Browne.

Browne formed True Reformers Bank when his fraternal organization encountered problems while attempting to establish a local branch in Virginia. The branch arranged to keep its savings in the safe of a white storekeeper. However, with racial tensions running high after a lynching in Charlotte County, white locals were suspicious and paranoid about what the organization planned to do with the funds.

To avoid having the organization’s finances managed and scrutinized by white people, Browne decided to open a bank serving Black customers in Richmond, Virginia. After his death in 1897, the bank continued to thrive and operate in over 20 states.

However, problems arose when the bank’s new president, Rev. William Lee Taylor, failed to manage and regulate each branch properly. In 1910, Virginia’s State Corporation Commission officially ordered the closure of True Reformers Bank.

What Makes a Bank Black-Owned?

Black-owned banks are depository institutions where Black people own 51% or more of the stock. These financial institutions are typically located in communities of color and provide a source of local economic support.

Black-owned banks typically focus on lending to Black homeowners, small businesses and nonprofit organizations like churches. And though these banks focus predominantly on Black communities, non-Black individuals and companies are welcome to become customers. Opening an account with a Black-owned bank as an ally can be a great way to support its mission of closing the wealth gap in America.

Why Switch to a Black-Owned Bank?

Black-owned banks work to provide fair and equal services and uplift Black businesses, homeowners and entrepreneurs in ways that major white-owned banks are often unable to. By depositing funds in Black-owned banks, you empower them to lend more funds to African American-owned businesses, further creating opportunities for employment, mentorship and educational advancement in the Black community.

List of Black-Owned Banks by State

We compiled a list of Black-owned banks across the U.S. so you can support these financial institutions and help build wealth within the African American community. Note that not every state has a Black-owned bank with physical branch locations.

Alabama

Alamerica Bank
Citizens Trust Bank
Commonwealth National Bank

Arkansas

Hope Credit Union

California

Broadway Federal Bank

District of Columbia

Phi Beta Sigma Federal Credit Union
Howard University Employees Federal Credit Union
City First Bank

Florida

FAMU Federal Credit Union

Georgia

Carver State Bank
Omega Psi Phi Fraternity Federal Credit Union

Illinois

GN Bank

Indiana

Mount Zion Indianapolis Credit Union

Kansas

Liberty Bank

Kentucky

Liberty Bank

Louisiana

Find The Best Online Banks Of 2024

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Black-Owned Online Banks

Black-owned online banks offer similar benefits to traditional brick-and-mortar financial institutions and are available to Americans nationwide. Open an account with an online Black-owned bank if you can’t find a brick-and-mortar bank in your area.

Be sure to perform your due diligence and comparison shop to find the best option for your needs.