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Top 5 Black-Owned Banks in America

A History of Black-Owned Banks

Social media spread the word with the help of the hashtags #BankBlack and #MoveYourMoney, resulting in an estimated $60 million being moved to black-owned banks in just nine months. The movement draws on a long history of calls for black financial empowerment that dates back to a bank established by Congress in 1864 to serve former slaves. In the many decades since, other banks have emerged to help the African-American community start businesses, buy homes and invest in each other when other banks weren’t doing so. Some of those banks are still around today.

According to a Federal Deposit Insurance Corporation (FDIC) study, black-owned banks made about 67% of their mortgage loans to black borrowers in 2011, compared with fewer than 1% made by community banks not run by minorities. So while there are only 30 black-owned banks in the entire country, according to BankBlackUSA.org, they do make a difference.

These banks represent about 16% of the country’s minority-owned depository institutions (MDIs). MDIs support minorities and populations that live in low- to moderate-income census tracts, people who are underserved by mainstream financial institutions. These banks largely rely on core deposits to fund real estate loans. Only 2.6% of the country’s 6,800 FDIC-insured banks are MDIs. Further, only 1.1% of FDIC-insured banks are community development financial institutions (CDFIs), which make banking services accessible to low-income customers and underserved communities.

Here are the five biggest black-owned banks in America, where they’re located, how many millions they hold in assets and deposits, and how they serve their communities.

Read more: Top 5 Black-Owned Banks in America | Investopedia https://www.investopedia.com/personal-finance/top-5-blackowned-banks-america/#ixzz5L52YjBlR

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Originally posted at: https://www.investopedia.com/personal-finance/top-5-blackowned-banks-america/

#1 OneUnited Bank

  • Assets: $655 million 
  • Headquarters: Boston
  • Deposits: $376 million 
  • Number of branches: Six 

Opened almost 50 years ago, the nation’s largest black-owned bank’s slogan is “part protest, part progress.” OneUnited is a government-designated CDFI serving low- to moderate -income communities. The bank holds workshops and events to increase financial literacy in the communities it serves and offers affordable financial services to meet its customers’ needs, including a secured credit card for rebuilding credit and a second-chance checking account

Read more: Top 5 Black-Owned Banks in America | Investopedia https://www.investopedia.com/personal-finance/top-5-blackowned-banks-america/#ixzz5L52in1U6 

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#2 Liberty Bank and Trust Company

  • Assets: Over $550 million
  • Headquarters: New Orleans 
  • Deposits: $549 million 
  • Number of branches: 21

Liberty Bank, a CDFI with branches in seven states, has increased its assets from $183 million a decade ago to more than $550 million today. Its Liberty Foundation pursues philanthropic initiatives, such as expanding access to secondary and higher education and increasing the availability of affordable housing. The bank’s chairman since its founding in 1972, Dr. Norman C. Francis, has also served as president of Xavier University since 1968. 

Read more: Top 5 Black-Owned Banks in America | Investopedia https://www.investopedia.com/personal-finance/top-5-blackowned-banks-america/#ixzz5L52xQzGc 

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#3 Citizens Trust Bank

  • Assets: $396 million 
  • Headquarters: Atlanta 
  • Deposits: $340 million 
  • Number of branches: 10 

This strong and growing 96-year-old bank increased its assets, loans and mortgage originations in 2016. Its deposit accounts increased at six times the normal rate last year, thanks to an increased awareness of Citizens Trust generated by social media. The bank offers an affordable housing program for buyers who need down-payment assistance; it also offers financial counseling.

 This spring Citizens Trust is offering a program for middle- and high-school students called How to Do Your Banking, which uses learn-by-doing exercises to provide lessons on the importance of saving even small amounts, using a budget to achieve financial goals, how to bank online, how to keep checking accounts in balance and how to manage basic investing

Read more: Top 5 Black-Owned Banks in America | Investopedia https://www.investopedia.com/personal-finance/top-5-blackowned-banks-america/#ixzz5L533h7gC 

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#4 Industrial Bank

  • Assets: $383 million 
  • Headquarters: Washington, D.C. 
  • Deposits: $331 million 
  • Number of branches: Seven 

Industrial Bank, a CDFI founded in 1934, received about $2.7 million in deposits through more than 1,500 new accounts last July as part of D.C.’s #DivestToInvest movement, whose goal is to support African-American-owned banks and businesses. In 2015 the bank earned a Bank Enterprise Award worth $253,000 for increasing the number of loans it made in low- and moderate-income communities. More than 60% of its assets have been invested in these communities for more than 10 years. 

Read more: Top 5 Black-Owned Banks in America | Investopedia https://www.investopedia.com/personal-finance/top-5-blackowned-banks-america/#ixzz5L53CrxWA 

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#5 The Harbor Bank of Maryland

  • Assets: $266 million 
  • Headquarters: Baltimore 
  • Deposits: $233 million 
  • Number of branches: Seven 

Opened in 1982, Harbor Bank primarily serves the Baltimore area with a variety of checking accounts, savings accounts and loans. It is the country’s first community bank to have an investment subsidiary, Harbor Financial Services. Last November the bank announced plans to open a co-working incubator at its downtown headquarters to support local black-owned startups as well as community development and advocacy groups. It also received $70 million in federal funding to revitalize low-income communities.

Read more: Top 5 Black-Owned Banks in America | Investopedia https://www.investopedia.com/personal-finance/top-5-blackowned-banks-america/#ixzz5L53HbHXY 

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