Category Archives: Business

2020 HBCU-Based Credit Unions Directory & Map

HBCU-based credit unions have been largely stagnant in the past four years since our last report in 2016. Assets have increased marginally by $1.7 million or a 1.9 percent. Only the top three HBCU-based credit unions saw increases in their assets of the eleven with all others declining. The asset decline was coupled as well with an acute decline in overall members with an almost 10 percent drop from 2016. With millions of dollars and thousands of potential accounts at their doorstep, it is extremely baffling how these institutions continue to struggle to grow. Especially in an environment of heightened social and economic desire to #BankBlack. The most glaring issue for these credit unions is a lack of FinTech investment. This includes everything from lack of a quality website, debit cards, bill pay, an app, and more. Things that would be considered basics at most financial institutions are still notoriously lacking at HBCU-based credit unions.

In 2012, we published a proposal for a merger among the 11 HBCU-based credit unions (or at the very least an alliance) that would immediately create one of the largest African American credit unions by assets and membership. You can read that here.

  1. Southern Teachers & Parents (LA) – $30.3 million
  2. Florida A&M University (FL) – $22.9 million
  3. Virginia State University (VA) – $10.2 million
  4. Howard University Employees (DC) – $10.1 million
  5. Prairie View (TX) – $3.7 million
  6. Councill (AL) – $2.9 million
  7. Savastate Teachers (GA) – $2.7 million
  8. Arkansas A&M College (AR) – $2.3 million
  9. Xavier University (LA) – $1.7 million
  10. Tennessee State University (TN) – $1.5 million
  11. Shaw University (NC) – $0.4 million

TOTAL ASSETS: $88.7 MILLION

MEDIAN ASSETS: $3.3 MILLION

AVERAGE ASSETS: $8.1 MILLION

TOTAL MEMBERSHIP: 14,953

MEDIAN MEMBERSHIP: 754

AVERAGE MEMBERSHIP: 1,359

Source: National Credit Union Administration

HBCU Money’s 2020 African American Owned Bank Directory

For the most current African American Owned Bank Directory visit the 2022 link by clicking here.

All banks are listed by state. In order to be listed in our directory the bank must have at least 51 percent African American ownership. You can click on the bank name to go directly to their website.

OTHER KEY FINDINGS:

  • AAOBs are in 16 states and territories. Key states absent are Florida, Mississippi, New York, Ohio, and Virginia.
  • There has not been an AAOB started in 19 years.
  • Alabama, Georgia, and Tennessee, each have two AAOBs.
  • 14 of the AAOBs saw increases in assets from the previous year.
  • African American Owned Banks have approximately $4.3 billion of America’s $19.5 trillion bank assets or 0.02 percent.
  • AAOBs control 1.7 percent of FDIC designated Minority-Owned Bank Assets, which is down from 1.8 percent in 2019. A third straight year of declines.
  • 2020 Median AAOBs Aseets: $106,140,000 ($142,129,000)*
  • 2020 Average AAOBs Assets: $225,519,000 ($217,533,000)*
  • For comparison, Asian American Owned Banks have approximately $129.3 billion in assets spread over 73 institutions. Asian AOBs saw an increase of $9.9 billion increase (8.3 percent) in assets from 2019, while African American Owned Banks saw a 5.2 percent increase in assets.
  • TOTAL AFRICAN AMERICAN OWNED BANK ASSETS: $4,284,856,000

ALABAMA

ALAMERICA BANK

Location: Birmingham, Alabama

Founded: January 28, 2000

FDIC Region: Atlanta

Assets: $19,584,000

Asset Change (2019): DOWN 27.8%

COMMONWEALTH NATIONAL BANK

Location: Mobile, Alabama

Founded: February 19, 1976

FDIC Region: Atlanta

Assets: $49,791,000

Asset Change (2019): UP 6.5%

CALIFORNIA

BROADWAY FEDERAL BANK FSB

Location: Los Angeles, California

Founded: February 26, 1947

FDIC Region: San Francisco

Assets: $438,033,000

Asset Change (2019): UP 5.0%

DISTRICT OF COLUMBIA

INDUSTRIAL BANK

Location: Washington, DC

Founded: August 18, 1934

FDIC Region: New York

Assets: $530,840,000

Asset Change (2019): UP 26.1%

GEORGIA

CARVER STATE BANK

Location: Savannah, Georgia

Founded: January 1, 1927

FDIC Region: Atlanta

Assets: $42,345,000

Asset Change (2019): UP 6.7%

CITIZENS TRUST BANK

Location: Atlanta, Georgia

Founded: June 18, 1921

FDIC Region: Atlanta

Assets: $418,130,000

Asset Change (2019): UP 5.6%

ILLINOIS

GN BANK

Location: Chicago, Illinois

Founded: January 01, 1934

FDIC Region: Chicago

Assets: $137,351,000

Asset Change (2019): DOWN 3.4%

LOUISIANA

LIBERTY BANK & TRUST COMPANY

Location: New Orleans, Louisiana

Founded: November 16, 1972

FDIC Region: Dallas

Assets: $627,856,000

Asset Change (2019): UP 5.2%

MARYLAND

HARBOR BANK OF MARYLAND

Location: Baltimore, Maryland

Founded: September 13, 1982

FDIC Region: New York

Assets: $311,321,000

Asset Change (2019): UP 9.6%

MASSACHUSETTS

ONEUNITED BANK

Location: Boston, Massachusetts

Founded: August 02, 1982

FDIC Region: New York

Assets: $654,051,000

Asset Change (2019): UP 0.8%

MICHIGAN

FIRST INDEPENDENCE BANK

Location: Detroit, Michigan

Founded: May 14, 1970

FDIC Region: Chicago

Assets: $295,951,000

Asset Change (2019): UP 15.8%

NORTH CAROLINA

MECHANICS & FARMERS BANK

Location: Durham, North Carolina

Founded: March 01, 1908

FDIC Region: Atlanta

Assets: $265,273,000

Asset Change (2019): UP 1.2%

OKLAHOMA

FIRST SECURITY BANK & TRUST

Location: Oklahoma City, Oklahoma

Founded:

FDIC Region: Dallas

Assets: $55,713

Asset Change (2019): N/A

PENNSYLVANIA

UNITED BANK OF PHILADELPHIA

Location: Philadelphia, Pennsylvania

Founded: March 23, 1992

FDIC Region: New York

Assets: $49,442,000

Asset Change (2019): DOWN 8.5%

SOUTH CAROLINA

OPTUS BANK (FORMERLY SOUTH CAROLINA COMMUNITY)

Location: Columbia, South Carolina

Founded: March 26, 1999

FDIC Region: Atlanta

Assets: $78,131,000

Asset Change (2019): UP 30.7%

TENNESSEE

CITIZENS SAVINGS B&T COMPANY

Location: Nashville, Tennessee

Founded: January 4, 1904

FDIC Region: Dallas

Assets: $97,321,000

Asset Change (2019): DOWN 7.2%

TRI-STATE BANK OF MEMPHIS

Location: Memphis, Tennessee

Founded: December 16, 1946

FDIC Region: Dallas

Assets: $85,617,000

Asset Change (2019): UP 2.9%

TEXAS

UNITY NB OF HOUSTON

Location: Houston, Texas

Founded: August 01, 1985

FDIC Region: Dallas

Assets: $106,140,000

Asset Change (2019): UP 6.8%

WISCONSIN

COLUMBIA SAVINGS & LOAN ASSOCIATION 

Location: Milwaukee, Wisconsin

Founded: January 1, 1924

FDIC Region: Chicago

Assets: $23,586,000

Asset Change (2018): Down 1.6%

Industrial Bank Acquires City NB of New Jersey Strengthening One Black Bank And Closing Another

Industrial Bank, based in Washington D.C., becomes the undisputed third largest African American owned bank by assets after securing City NB of New Jersey, based in Newark, New Jersey, at the end of 2019 after City NB of New Jersey went under receivership by the FDIC as a failed bank. Previously, Industrial was competing with Broadway Bank in California and Citizens Trust Bank in Georgia for third position. However, with the acquisition of City’s $120 million in assets that spot is now comfortably secured. This makes what was going to be an otherwise paltry year for Industrial being able to increase their assets into a blowout one. Prior to the acquisition, Industrial was on pace to increase its assets by just over 1 percent in fiscal 2019, but this gives them a gain of 26.1 percent instead.

It also pushes the geographic reach of the D.C. based bank into multi-state territory. A claim that only three other African American banks, OneUnited, Liberty Bank & Trust, and Unity National Bank of Houston have. The first two being the largest two African American owned banks, respectively. New Jersey is home to almost 1.4 million African Americans, the 14th largest African American population in the United States so if Industrial can get right what City was getting wrong, there is immense opportunity there.

The FDIC Press Release: “City National Bank of New Jersey (“City National”) in Newark was closed today by the Office of the Comptroller of the Currency, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect depositors, the FDIC entered into a purchase and assumption agreement with Industrial Bank in Washington, D.C. to assume all of the deposits of City National.

The three branches of City National will reopen as branches of Industrial Bank during normal business hours. Depositors of City National will automatically become depositors of Industrial Bank.  Because deposits will continue to be insured by the FDIC up to applicable limits, customers do not need to change their banking relationship in order to retain their deposit insurance coverage.

Customers of City National should continue to use their existing branch until they receive notice from Industrial Bank that it has completed systems changes to allow other Industrial Bank branches to process their accounts as well.

This evening and over the weekend, depositors of City National can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.

As of September 30, 2019, City National had approximately $120.6 million in total assets and $111.2 million in total deposits. In addition to assuming all of the deposits of the failed bank, Industrial Bank agreed to purchase essentially all of its assets.”

Morehouse Alumnus Kevin Perry Investment Brings African American Owned Banking Back To Oklahoma

As one of the places with a storied African American economic history, Oklahoma holds a certain lore among African American economic historians. The home of Greendwood, Oklahoma, better known to many as Black Wall Street, its symbolic significance can never be overstated. It is also home to Langston University, a quiet but premier HBCU whose goat research is legendary in HBCU research circles and has considerable commercial value. However, Oklahoma has been without an African American owned bank for quite sometime but no more. Enter Kevin Perry, president and CEO of Perry Publishing & Broadcasting, a second-generation family owned company based in Oklahoma City, Oklahoma, and director at First Security Bank & Trust has helped usher in a new era of African American owned banking in Oklahoma.

According to S&P Global, “Kevin Perry, owner of 71,240 shares of FSB Bancshares Inc. stock, is proposing to acquire an additional 23,800 shares, according to a change in control notice filed in late March (2018). Perry already owns a 22.44% stake in the Oklahoma City-based company. The sale would increase his ownership in FSB to 29.948% — and in turn give him and other African American shareholders an aggregate 51% stake.”

The addition of First Security Bank & Trust to the African American Owned Banks banking landscape has stopped the proverbial bleeding the group has been experiencing over the past decade. Since 2010, African American Owned Banks have seen almost 50 percent of the institutions disappear. It is also worth noting that there have been no new AAOBs started in almost two decades and although First Security Bank & Trust is not new per se (founded in 1951), its acquisition by African American investors does make it new to our banking infrastructure and expands the financial geography of African American owned financial institutions. It is a vital addition and hopefully will build momentum for a new expansion that will help strengthen AAOBs in HBCU states and territories for the future.

 

Black News Channel’s Chairman J.C. Watts Discusses BNC’s Deep HBCU Ties & FAMU Partnership

In a recent interview with Bold TV, Chairman of Black News Channel, J.C. Watts, discusses his plans for the coming launch of the new television channel that seeks to focus on a myriad of topics from culture, religion, politics, economics, and more that cover the diverse range of African America’s views on topics. Chairman Watts emphasizes that this will be a channel for African Americans and by African Americans. Just how far that is to go though we will discuss later on in the article.

Starting at the 8:50 mark in the video, Chairman Watts discusses with Ms. Sheffield, Founder of Bold TV, the important relationship that Black News Channel will seek to build with HBCUs and just how much content there is available within those institutions alone. A statement that should be not underappreciated given that BNC is going to attempt to be a 24/7 news channel. While the plan a few years ago was for BCN to be housed on the campus of Florida A&M University, the company has shifted its focus on making the FAMU School of Journalism a target school for BCN with internships, curriculum engagement, and employment opportunities upon graduation.

The company features a host of Rattler alumnae. Mr. Amir Windom, a rising star in media circles will be the Director of Creative Services. It also features Ms. Georgia Dawkins, who will serve as Director of HBCU Services. Lastly, the Director of Corporate Business Development is Ms. Erika Littles.

Ms. Sheffield brings up just some of the larger outlets in the landscape that currently stands in African American targeted media like The Root, Black Entertainment Television, NBC Black, OWN, TV One, and questions aloud where BCN will find its place among the field.

However, a point that was not brought up and should always be at the forefront of our minds when new products are launched that target African America is who actually is profiting from our eyeballs. We are often providing the labor and the viewership in many instances while reaping none of the economic rewards that comes with ownership and ultimately the control of the narrative. BET is owned by Viacom, NBC is owned by Comcast, The Root is owned by Univision, which itself is owned by very Eurocentric private equity firms, and even OWN, the channel beloved by Oprah followers, is majority owned by Discovery Communications. On the website for Black News Channel, while Chairman J.C. Watts is listed as a co-founder, the other co-founder is Bob Brillante. What is the potential ownership split? There are seven other owner/investors listed on the company’s website, but what each individuals stake is remains unclear. As a private company, they are certainly not required by any means to disclose this information, but it would certainly go a long way to endorsing just how much of an African American “owned” media asset this actually is.

There is a harsh reality that the majority of sizeable media assets focusing on African Americans is not in the ownership hands of African Americans. The Washington Post reported that in 2013, “African American ownership remains particularly low, hovering at less than one percent of all television properties, and less than 2 percent of radio.” This is certainly not to say that Black News Channel will not have an impact. It is projected to employ almost 100 people, many of them being HBCU alumni and students as we have already seen in key positions, but we must push the envelope further. We need more investment in publications that are owned by our community like HBCU Digest, Atlanta Black Star, HBCU Gameday and many others.  Traditional media is not dying, it is evolving (and consolidating into the hands of a few) and has already done so in major ways. Unfortunately, we are often lacking the resources to keep up despite our ingenuity.

We appreciate that the Black News Channel makes it a point to be transparent about their ownership, hope that they will be an inclusive platform to smaller African American owned publications looking to establish themselves, and definitely continue to integrate itself within the many schools of journalism that HBCUs have and the richness that those assets can bring to the table.