The current number of Black-owned banks in the US

As of 2024, there are approximately 20 to 25 Black-owned banks operating in the United States, though the exact count shifts as banks open and close. This number has fluctuated significantly over the past few decades — in the 1980s there were over 100 Black-owned banks, so the current landscape represents a substantial decline.

The number varies depending on how "Black-owned" is defined. The Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC) track banks by ownership, but different sources may count differently based on whether they require majority ownership, significant ownership stakes, or board representation. When you search for current lists, you may see slightly different numbers because some sources include banks that closed recently or count banks in different regulatory categories.

These banks range from small community institutions serving a single neighborhood to regional banks with multiple branches across several states. Some of the longest-operating Black-owned banks have been in business for over 100 years, while others are newer institutions founded in the last two decades.

Key Takeaways

  • Approximately 20 to 25 Black-owned banks currently operate in the United States, a significant decrease from over 100 in the 1980s.
  • The exact count depends on how ownership is defined and which regulatory sources you consult, so different lists may show slightly different numbers.
  • Black-owned banks range from single-location community banks to regional institutions with branches across multiple states.
  • Many Black-owned banks focus on lending to Black entrepreneurs and communities that have historically faced barriers to traditional bank financing.
  • You can find current lists of Black-owned banks through the FDIC, the National Bankers Association, and community development organizations.

Why the number has declined since the 1980s

The drop from over 100 Black-owned banks to roughly 20 reflects broader changes in the banking industry. Consolidation — where larger banks acquire smaller ones — has affected all community banks, but Black-owned institutions faced particular pressure. Many were smaller and had less access to capital for growth or to weather economic downturns.

The 2008 financial crisis hit Black-owned banks especially hard. Several closed or merged with larger institutions during that period. Regulatory costs also increased over time, making it harder for small banks to remain independent. Starting a new bank requires substantial capital and navigating complex federal and state regulations, which has made it difficult for new Black-owned banks to enter the market despite growing interest.

Where Black-owned banks are located

Black-owned banks are not evenly distributed across the country. The largest concentration is in the South, particularly in states like Georgia, North Carolina, and Texas. Several significant Black-owned banks operate in major cities including Atlanta, Chicago, Los Angeles, and New York.

Some Black-owned banks serve primarily their local communities, while others have expanded to multiple states. A few operate primarily online or through partnerships with other financial institutions. The geographic distribution reflects both historical settlement patterns and where Black-owned business communities have been strongest.

What Black-owned banks typically offer

Black-owned banks offer the same basic services as other banks: checking and savings accounts, loans, credit cards, and investment services. They are insured by the FDIC just like any other bank, so your deposits are protected up to the standard limits.

Many Black-owned banks emphasize lending to Black entrepreneurs and small businesses, particularly those in underserved communities. Some have specialized programs for first-time homebuyers or focus on financing for minority-owned enterprises. This mission-driven approach is often what distinguishes them from larger national banks, though their specific offerings vary by institution.

How to find a Black-owned bank near you

The National Bankers Association maintains a directory of Black-owned banks on its website, organized by state. This is the most reliable source for a current list. You can also search the FDIC's bank locator tool and filter by ownership information, though this requires more navigation.

Community development organizations and local chambers of commerce often maintain lists of Black-owned financial institutions in their areas. If you are looking for a specific service — like a business loan or mortgage — calling ahead to ask about their offerings is worth doing, since not all Black-owned banks offer all products.

The difference between Black-owned banks and other financial institutions

A Black-owned bank is a federally chartered or state-chartered bank where Black individuals or families hold majority ownership. This is different from a credit union, which is member-owned and may or may not be Black-led. It is also different from a community development financial institution (CDFI), which is a broader category that includes banks, credit unions, and loan funds focused on underserved communities.

Some Black-led financial institutions operate as credit unions or CDFIs rather than traditional banks. These may offer similar services but operate under different regulatory structures. When you are looking for a Black-owned financial institution, clarifying which type you want matters if you have specific needs — for instance, credit unions sometimes offer different loan terms or membership requirements than banks.

Why the number of Black-owned banks matters

The decline in Black-owned banks reflects and reinforces broader wealth gaps. Banks that are rooted in and accountable to their communities often lend more readily to local entrepreneurs and homebuyers who might not meet the strict criteria of larger national banks. When those institutions close, the communities they served lose access to that relationship-based lending.

Black-owned banks also create jobs and build wealth within Black communities through ownership and employment. They serve as anchors for economic development in neighborhoods that have historically been underserved by mainstream financial institutions. The loss of these banks has real consequences for business formation, homeownership, and generational wealth building in those communities.

Frequently Asked Questions

Can I bank with a Black-owned bank if I don't live near one?

Some Black-owned banks offer online banking services and accept customers from multiple states. You can contact banks in your region or search for those with online options. However, not all Black-owned banks have expanded their digital services, so you may need to call ahead to ask about remote account opening.

Are deposits at Black-owned banks as safe as deposits at large national banks?

Yes. Black-owned banks that are FDIC-insured offer the same deposit protection as any other FDIC-insured bank — up to $250,000 per account type per depositor. You can verify a bank's FDIC status on the FDIC's website. The size of the bank does not affect the safety of your deposits.

Do Black-owned banks charge different fees than other banks?

Fees vary by institution and account type, just as they do at any bank. Some Black-owned banks may offer lower fees or waived fees for certain account types, while others may charge similarly to national banks. Compare specific accounts and fee schedules directly rather than assuming all Black-owned banks have the same pricing.

What is the oldest Black-owned bank in the United States?

Mechanics and Farmers Bank, founded in 1908 in Durham, North Carolina, is one of the oldest continuously operating Black-owned banks. Several other institutions have operated for over 80 years. You can find histories of individual banks through the National Bankers Association or by contacting the banks directly.

How do I know if a bank is actually Black-owned?

Check the National Bankers Association's directory or verify through the bank's official website and regulatory filings. Be cautious of claims made in marketing materials alone — the National Bankers Association list is the most reliable source for confirmation of Black ownership status.