Black-Owned Banks in Every State for Business Banking

According to the Urban Institute, a Black-owned bank is defined as a financial institution that provides services to minority communities and is 51% or more Black-owned.[1] Black-owned banks have been around since 1888, but they’ve stagnated in recent years.

Although there were 48 Black-owned banks in 2001, there are fewer than 25 today (not including a number of credit unions).[2] As the Black Lives Matter movement continues to be at the forefront of people’s minds, it’s a good time to be more cognizant of how you do your business banking.

By and large, Black-owned banks tend to be community institutions, offering the same services as major financial institutions with a greater focus on specific neighborhoods. As such, they’re a great resource for Black business owners—but they could also be a great lending partner for any community-oriented small business, as well.

As America reckons with a history of racism and discrimination, it must also address centuries of financial inequality. One of the best ways for small businesses to contribute to this rectification is by choosing a Black-owned bank.

Black-Owned Banks and the Inequality in Finance

In 2016, the average net worth of a white family was nearly 10 times that of a Black family.[3] This wealth gap is a product of inequality, discrimination, and a clear opportunity gap between white and Black individuals.

The same financial inequalities carry over to Black entrepreneurs as well. Black business owners experience greater scrutiny from lenders and are less likely to be approved for business loans, even when their loan applications are essentially the same as white business owners. Plus, when they are approved, they typically receive a fraction of the investment that white business owners receive.

All of this said, Black-owned banks are one of the few resources that are truly, equitably available to Black business owners, which makes their decline especially concerning. It goes beyond business, too.

In 2018, people of color were more likely to be denied home loans than white residents in 61 U.S. cities.[4] Therefore, because of their position and standing in the community, Black-owned banks are critical to fighting systemic racism at a local level.

Unfortunately, between the lack of access to business and personal capital, many Black Americans have had little reason to use banks. As a result, nearly 20% of Black Americans today are unbanked,[5] an astounding number that reflects the degree to which financial inequality pervades the United States.

When it comes down to it, financial inclusion benefits the entire economy,[6] which is why patronizing Black businesses and Black-owned banks is especially important in these economically turbulent times. 

Black-Owned Banks in Each State for Small Businesses

With this background information in mind, whether you’re considering applying for a business loan or simply need a new place to do your business banking, these are the Black-owned banks available to small businesses in each state.

Black-Owned Banks in Alabama

  • Alamerica Bank: Birmingham
  • Citizens Trust Bank: Birmingham and Eutaw
  • Commonwealth National Bank: Mobile
  • Liberty Bank: Montgomery and Tuskegee
  • Metro Bank: Ashville, Heflin, Lincoln, Moody, Pell City, Ragland, Southside
  • Hope Credit Union: Montgomery
  • OneUnited Bank: online and multiple ATM locations

Black-Owned Banks in Alaska

  • OneUnited Bank: online and multiple ATM locations

Black-Owned Banks in Arizona

  • OneUnited Bank: online and multiple ATM locations

Black-Owned Banks in Arkansas

  • Hope Credit Union: College Station, Little Rock, Pine Bluff, and West Memphis
  • OneUnited Bank: online and multiple ATM locations

Black-Owned Banks in California

  • OneUnited Bank: Los Angeles (in-person and online)
  • Broadway Federal Bank: Los Angeles

Black-Owned Banks in Colorado

  • OneUnited Bank: online and multiple ATM locations

Black-Owned Banks in Connecticut

  • OneUnited Bank: online and multiple ATM locations

Black-Owned Banks in Delaware

  • OneUnited Bank: online and multiple ATM locations

Black-Owned Banks in District of Columbia

  • Industrial Bank: Anacostia Gateway Banking Center, Ben’s Chili Bowl, DC Court of Appeals, DC Superior Court, F Street Banking Center, Forestville Banking Center, Georgia Avenue Banking Center, J.H. Mitchell Banking Center, Nationals Park, Oxon Hill Banking Center, U Street Banking Center
  • OneUnited Bank: online and multiple ATM locations

Black-Owned Banks in Florida

  • OneUnited Bank: Miami (in-person and online)
  • FAMU Federal Credit Union: Tallahassee

Black-Owned Banks in Georgia

  • Carver State Bank: Savannah
  • Citizens Trust Bank: Atlanta, Decatur, East Point, Lithonia, Stone Mountain, Stonecrest
  • OneUnited Bank: online and multiple ATM locations
  • Unity National Bank: Atlanta
  • 1st Choice Credit Union: Atlanta
  • Credit Union of Atlanta: Atlanta

Black-Owned Banks in Hawaii

  • OneUnited Bank: online and multiple ATM locations

Black-Owned Banks in Idaho

  • OneUnited Bank: online and multiple ATM locations

Black-Owned Banks in Illinois

  • GN Bank: Chicago
  • Liberty Bank: Forest Park
  • OneUnited Bank: online and multiple ATM locations
  • South Side Community Federal Credit Union: Chicago

Black-Owned Banks in Indiana

  • OneUnited Bank: online and multiple ATM locations

Black-Owned Banks in Iowa

  • First Security Bank: Aredale, Charles City, Dumont, Hampton, Ionia, Manly, Marble Rock, Nora Springs, Riceville, Rockford, Rockwell, Rudd, and Thornton
  • OneUnited Bank: online and multiple ATM locations

Black-Owned Banks in Kansas

  • Liberty Bank: Kansas City
  • OneUnited Bank: online and multiple ATM locations

Black-Owned Banks in Kentucky

  • Liberty Bank: Louisville
  • OneUnited Bank: online and multiple ATM locations

Black-Owned Banks in Louisiana

  • Liberty Bank: Baton Rouge and New Orleans
  • Hope Credit Union: New Orleans
  • OneUnited Bank: online and multiple ATM locations
  • Southern Teachers & Parents Federal Credit Union: Baton Rouge and Thibodaux

Black-Owned Banks in Maine

  • OneUnited Bank: online and multiple ATM locations

Black-Owned Banks in Maryland

  • OneUnited Bank: online and multiple ATM locations
  • The Harbor Bank of Maryland: Baltimore, Randallstown, and Silver Spring

Black-Owned Banks in Massachusetts

  • OneUnited Bank: Dorchester and Roxbury (in-person and online)

Black-Owned Banks in Michigan

  • First Independence Bank: Clinton Township and Detroit
  • Liberty Bank: Detroit
  • OneUnited Bank: online and multiple ATM locations

Black-Owned Banks in Minnesota

  • OneUnited Bank: online and multiple ATM locations

Black-Owned Banks in Mississippi

  • Hope Credit Union: Biloxi, Drew, Greenville, Jackson, Louisville, Macon, Moorhead, Robinsonville, Shaw, Terry, Utica, and West Point
  • Liberty Bank: Jackson
  • OneUnited Bank: online and multiple ATM locations

Black-Owned Banks in Missouri

  • Liberty Bank: Kansas City
  • OneUnited Bank: online and multiple ATM locations
  • St. Louis Community Credit Union: Ferguson, Florissant, Pagedale, Richmond Heights, St. John, St. Louis, University City, and Wellston

Black-Owned Banks in Montana

  • OneUnited Bank: online and multiple ATM locations

Black-Owned Banks in Nebraska

  • OneUnited Bank: online and multiple ATM locations

Black-Owned Banks in Nevada

  • OneUnited Bank: online and multiple ATM locations

Black-Owned Banks in New Hampshire

  • OneUnited Bank: online and multiple ATM locations

Black-Owned Banks in New Jersey

  • Industrial Bank: Newark
  • OneUnited Bank: online and multiple ATM locations

Black-Owned Banks in New Mexico

  • OneUnited Bank: online and multiple ATM locations

Black-Owned Banks in New York

  • Carver Federal Savings Bank: Brooklyn, Jamaica, and New York City
  • Industrial Bank: New York City
  • OneUnited Bank: online and multiple ATM locations
  • Urban Upbound Federal Credit Union: Long Island City

Black-Owned Banks in North Carolina

  • Mechanics & Farmers Bank: Charlotte, Durham, Greensboro, Raleigh, and Winston-Salem
  • First Legacy Community Credit Union: Charlotte
  • Greater Kinston Credit Union: Kinston
  • OneUnited Bank: online and multiple ATM locations

Black-Owned Banks in North Dakota

  • OneUnited Bank: online and multiple ATM locations

Black-Owned Banks in Ohio

  • Faith Community United Credit Union: Cleveland
  • OneUnited Bank: online and multiple ATM locations
  • Toledo Urban Federal Credit Union: Toledo

Black-Owned Banks in Oklahoma

  • OneUnited Bank: online and multiple ATM locations

Black-Owned Banks in Oregon

  • OneUnited Bank: online and multiple ATM locations

Black-Owned Banks in Pennsylvania

  • OneUnited Bank: online and multiple ATM locations
  • United Bank of Philadelphia: Philadelphia
  • Hill District Federal Credit Union: Pittsburgh

Black-Owned Banks in Rhode Island

  • OneUnited Bank: online and multiple ATM locations

Black-Owned Banks in South Carolina

  • OneUnited Bank: online and multiple ATM locations
  • OPTUS Bank: Columbia
  • Brookland Federal Credit Union: West Columbia
  • Community Owned Federal Credit Union: Charleston

Black-Owned Banks in South Dakota

  • OneUnited Bank: online and multiple ATM locations

Black-Owned Banks in Tennessee

  • OneUnited Bank: online and multiple ATM locations
  • Citizens Banks: Memphis and Nashville
  • Tri-State Bank: Memphis
  • Hope Credit Union: Jackson and Memphis

Black-Owned Banks in Texas

  • OneUnited Bank: online and multiple ATM locations
  • Unity National Bank: Houston and Missouri City
  • Faith Cooperative Credit Union: Dallas
  • Mount Olive Baptist Church Federal Credit Union: Dallas
  • Oak Cliff Christian Federal Credit Union: Dallas

Black-Owned Banks in Utah

  • OneUnited Bank: online and multiple ATM locations

Black-Owned Banks in Vermont

  • OneUnited Bank: online and multiple ATM locations

Black-Owned Banks in Virginia

  • OneUnited Bank: online and multiple ATM locations
  • Virginia State University Federal Credit Union: South Chesterfield

Black-Owned Banks in Washington

  • OneUnited Bank: online and multiple ATM locations

Black-Owned Banks in West Virginia

  • OneUnited Bank: online and multiple ATM locations

Black-Owned Banks in Wisconsin

  • Columbia Savings & Loan: Milwaukee
  • OneUnited Bank: online and multiple ATM locations

Black-Owned Banks in Wyoming

  • OneUnited Bank: online and multiple ATM locations

Digital Black-Owned Banks for Small Businesses

If one of the above Black-owned banks in your state doesn’t work for you, consider signing up for Greenwood, a new majority Black and Latinx-owned and operated online-only bank. Greenwood doesn’t launch until January 2021, but you can sign up to get on their waiting list today.

Frequently Asked Questions

How many black-owned banks are in America?

Including credit unions, there are 42 Black-owned financial institutions in the United States today. Of these financial institutions, about half are Black-owned banks and half are not-for-profit credit unions.

These financial institutions have approximately $5.813 billion in assets combined. Although this may sound like a significant number of assets, to put things in perspective, Wells Fargo has more than $1.7 trillion in assets alone.

What is the largest Black-owned bank?

OneUnited Bank is the nation’s largest Black-owned and FDIC insured bank, with offices in Boston, Los Angeles, and Miami. Founded in 1968 in Roxbury, Massachusetts, it’s also the first Black internet bank and offers ATM access and digital banking options in all 50 states.

OneUnited has also been awarded the highest Bank Enterprise Award by the U.S. Department of Treasury for community development lending 10 times and is a designated Community Development Financial Institution (CDFI).

What was the first Black-owned bank?

The Savings Bank of the Grand Fountain United Order of True Reformers, also known as The True Reformers Bank, was the first officially chartered Black-owned bank.

The True Reformers Bank was founded in 1888 by Reverend William Washington Browne who wanted a way for Black locals to protect their finances from white residents. Browne, a former slave in Georgia, established the bank in Richmond, Virginia, with first-day deposits of more than $1,270.

The Bottom Line

Racial inequality is an inextricable theme of the American story. And unfortunately, financial inequality is right at the heart of that theme. Black-owned banks, however, have long stood as sentinels against systemic racism—serving as reliable resources to help Black communities thrive.

Today, with their numbers dwindling, there’s more of an opportunity than ever to reevaluate your banking needs and consider supporting a Black-owned bank in your local area.

Article Sources:

  1. Urban.org. “The Potential and Limits of Black-Owned Banks
  2. Washingtonpost.com. “The Country’s Last Black-Owned Banks Are in a Fight for Their Survival
  3. Americanprogress.org. “Simulating How Progressive Proposals Affect the Racial Wealth Gap
  4. Revealnews.org. “We Exposed Modern-Day Redlining in 61 Cities. Find out What’s Happened Since
  5. FDIC.gov. “FDIC National Survey of Unbanked and Underbanked Households
  6. Mckinsey.com. “The Case for Accelerating Financial Inclusion in Black Communities

Nick Perry

Nick Perry is a freelance writer based out of Boston. After working in Hollywood and Silicon Beach, he launched his own small business and frequently referenced Fundera’s resources. Now, he’s a contributing writer at Fundera. Nick has written extensively about small businesses, ecommerce, the restaurant industry, and entertainment. His work has appeared on Entrepreneur, Digital Trends, Toast’s On The Line, and more.

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