The 10 Biggest Black Bank Owners In the US
Banks have played an important role when it comes to the facilitation of the American dream.
Although there were no black-owned banks in the US before 1888, they have caught on when it comes to all the services they offer.
The black-owned banks give their customers the chance to access resources they need financially speaking as well as the opportunity to invest in not only their community’s well-fare but also in their financial health.
Another key factor is that the banks that are black-owned play a key role in the fight against racism in modern times. We will look at the black-owned banks as well as the owners in the US;
The 1st Choice Credit Union
This black-owned bank was founded with the aim of provision of services that are financially related to the Grady Hospitals’ employees. It was initially known as the Hospital Authority Credit Union. It was finally known by its present name, 1st Choice Union in 1991.
The bank is owned and dictated over by a board of directors who are namely;
- Howard Mosby is the board chairman.
- Alonzo Llorens who is the vice-chairman and other board members such as Archie L. Jones, Charlene Turner, Sheilah Montgomery, among others.
The bank has branches in Georgia and its total assets are at an outstanding 30 million dollars.
The Alamerica bank
The bank was set up by the area leaders of Birmingham who had identified that there was a need by both customers and businesses for banking services that were more personalized. The bank came to life officially in 2000, on the 28th of January. Since then, it was finally able to achieve its profitability operationally after six months. From then henceforth, it has grown to become one of the strongest institutions Birmingham has.
The Alamerica bank has its owners as the board of directors who include Mike Weaver as the chairman, Lawrence Tate as the CEO and president, Matthew Morris, and Jacqueline Anderson Smith.
The Broadway federal bank
The black-owned bank has its foundation in Los Angeles and was founded as a bank that was to be community-focused in 1946. Since then, it has been able to achieve a single office that deals in loan production as well as three branches that are more traditional banks. It stands as one of the remaining banks that are black-oriented with the headquarters in Dallas.
The bank has its CEO and president as Wayne- Kent A, and the chairman of the directors’ board as Vigil Roberts.
The Brookland federal credit union
The Brookland Federal Credit Union is found in the West of Columbia in the United States. It is part of the intermediation industry of depository credit. The institution was founded in 1999 and is currently led by Ronald Cooley.
Carver federal savings bank
Carver was founded in 1948 through the leadership of M. Moran Weston. Joseph E. Davis was the co-founder. It has been stated as the largest financial institution that is black-owned in the US. It has a holding company, that is Carver Bancorp, inc. The current CEO of the Carver Federal Savings bank is Michael T. Pugh who has been the president since 2015, 1st of January.
In the starting stages, it had purposes such as helping the homeowners who were people of color to secure mortgages, providing training of black people to allow them to work in other banks, and even hiring leaders to be, for example, T. Greene.
Carver state bank
Carver state bank is a financial institution that is black-operated and has been up since 1927. The bank operates in Georgia. The foundation of the bank was in 1927 on the 23rd of February. The founder was Louis B. It was originally known as Georgia Savings and Realty Corp. The name was permanently changed in 1962 when it started issuing checking accounts to Carver State Bank. The bank has its name from George Washington Carver.
The current president of the bank is Robert E James, with its Vice President being Deborah C Mcintosh among other officials who facilitate its smooth operation.
Citizens bank started as a savings bank (one-cent) in Tennessee. The institution got its name changed in 1920 to be the Citizens Savings Bank and Trust Co. It has branches in both Nashville and Memphis Tennessee. Its main office is in Tennessee.
The services that the bank offers include loans for both personal and business needs, the banking options also for both personal and business needs such as savings as well as checkings and also credit cards.
Citizens trust bank
Citizens Trust Bank was founded in 1921. This was by five colored businessmen. Since then, the bank has managed to get the title of being certified federally as well as to be one of the biggest financial institutions that are African American-owned in the whole nation. The bank boasts of assets that accumulate to over 388 million dollars.
Citizens Bank has its mission which is to empower not only their customers but their customers’ families as well for them to be able to succeed. Owing to this, the bank was able to launch an educational program that was free in 2015. The sole purpose of the program was to educate the young adults on the issues of managing money, budgeting, as well as the tools that one needs for them to be able to not only acquire as well as build but also be able to sustain their generated wealth.
Cynthia Day is the current president and the CEO of the Citizens Trust Bank.
Columbia Savings and loans
Columbia Savings and Loans is a financial institution that is black-owned and has one location which is in Wisconsin (Milwaukee). The bank was founded by Wilbur Halyard and Ardie. The main reason for the start-up was the fact that they wanted to establish a way that Milwaukee’s community that was African American could be able to access mortgage loans.
The institution gives church loans, home loans as well as any personal loans one may need. Because Columbia Savings and Loan does not have the option of accessing it from an app on a phone, if one is interested in getting services from them, they are required to work with the branch directly.
George Gary is the current president of Columbia savings and loans.
Commonwealth national bank
The commonwealth national bank was founded in 1976. It is one of the remaining black-owned businesses in the country. The financial institution is a commercial institution that is nationally fully serviced and chartered. It has its main branch in Mobile. It is majorly based in Alabama.
The importance of black-owned banks.
To be able to fully comprehend the importance of black-owned banks, one should be able to understand the overall roles that banks play in one’s financial life. These include;
- Checking accounts. This is a provision that ensures that the customers’ funds have safe storage and it is usually in exchange for some fee that is agreed upon. With that, banks are also giving loans to both institutions as well as individuals to suit whatever needs they may have.
- Mortgages. This is yet another important role banks play. Mortgages are issued when one is dealing with real estate or maybe looking into doing purchases that concern real estate.
Other than these functions, there are other functions that black-owned banks do such as launching programs that are aimed to help the individuals who are hardly able to access those services if left without help. Most banks do not agree to give out loans to individuals whose income is below a certain bracket. What makes this worse is the fact that the color of their skin also plays a role. There is still hate crime highly associated with black people.
The black-owned banks in this case act as their saving grace. They are in most cases willing to accept loan applications from the individuals who have been turned away by other banks due to several factors. Looking past risks and all factors that are put into it, black-owned banks can find a way to help the less advantaged black people.
Black-owned banks also usually focus on small businesses as well as start-ups, black people who want to be homebuyers, and non-profits. Since 2018, all the black-owned banks became community banks. This means that they are institutions that dedicate their services in the support of the economies of their respective communities. Even in the most difficult times, the black-owned banks have been seen to stand strong by their customers. An example of this is when there was a financial crisis in 2007 and 2008 and there was a drop in the lending of the mortgage by 69% yet in terms of the black-owned banks, their borrowers increased by 57%.
These black bank owners as well as their banks play a vital role in society in ways such as offering alternatives for residents who have been affected by discrimination from other banking institutions. They also provide opportunities for the low as well as the mid-income earners to be able to access loans to better their lives. The impact they have on society at large is very much admired and should be appreciated.