As president of First Independence Bank in Detroit—one of the institutions highlighted here—Dimitrius Hutcherson knows the “unique role” Black-owned banks play in supporting the Black community and ensuring equitable access to capital for underserved communities.
“Black-owned banks came out of necessity during periods of segregation when they were often the only option for accessing capital,” he explains, noting how, even today, many Black-owned banks still operate in neighborhoods that other banks don’t serve and provide access to safe and affordable bank accounts, mortgages and business loans.
Access to capital is critical especially for growing businesses, Hutcherson notes. “Studies have shown that Black entrepreneurs face more challenges than their white counterparts to qualify for business loans and secure capital, even if they have a stronger credit profile,” he says. “Thus the success of the Black business community is intertwined to the viability and continued existence of Black banks.”
City First Bank, National Association (Established 1998)
Washington, D.C.
Total assets: $1.2 billion
Liberty Bank and Trust Co. (1972)
New Orleans
Total assets: $1.07 billion
Citizens Trust Bank (1921)
Atlanta
Total assets: $745 million
Carver Federal Savings Bank (1948)
New York City
Total assets: $724 million
Industrial Bank (1934)
Washington, D.C.
$713 million
OneUnited Bank (1982)
Boston
Total assets: $609 million
First Independence Bank (1970)
Detroit
Total assets: $546 million
Mechanics & Farmers Bank (1908)
Durham, North Carolina
Total assets: $422 million
Optus Bank (1999)
Columbia, South Carolina
Total assets: $419 million
The Harbor Bank of Maryland (1982)
Baltimore
Total assets: $353 million
Source: www.lanterncredit.com/banking/black-owned-banks
Derek T. Batts is Managing Partner and Chief Investment Officer at Union Heritage, one of the nation’s leading minority-owned, diversified investment management companies. He is also a part owner of WayMaker Media.
