4.9 C
Thursday, March 30, 2023

Black Owned Banks In Chicago

Table 2 Demographic Characteristics Of Local Service Areas

Chicago Entrepreneurs Urge Consumers To Open Accounts At Black-Owned Banks

American Community SurveyMinority-Owned Depository Institutions

In sum, a comparison of branch location between MDIs and non-MDIs indicates that MDI branches are more likely to be located in nonwhite communities, with lower incomes and higher poverty rates than the national averages. MDIs are located in areas with higher shares of multifamily housing units, and a larger share of their lending goes to those places, suggesting that, consistent with their mission, they are targeting customers, neighborhoods, and types of housing markets that may be underserved by other banks.

South Side Community Federal Credit Union

Since 2004, the South Side Community Federal Credit Union has offered access to credit and savings services for its members, in addition to financial education. Individuals are eligible for membership if they live, work, worship, attend school, or belong to an organization that is within Chicagos South Side.

  • Branches: South Side Community Federal Credit Union
  • ATMs: N/A
  • States: Illinois
  • Services: Accounts , loans , financial education classes, and other services
  • Assets: $5.08 million
  • Availability: Brick-and-mortar and online

On What The Banks Struggles Meant To The Community

Williams: Some of the effects of rapidly cleaning a banks books mean closing businesses, foreclosing on homes, emptying those homes out, those homes being abandoned, then the homes being razed and torn to the ground and the ground remaining vacant.

Our customers felt it this way. There was a great deal of shame because our customers had a personal sense of obligation to pay their debts. They did not give up. Our way of trying to work with our customers was that it would be a better investment for the bank if a property could remain occupied and a relationship with a customer could be preserved, even if the loan was chronically delinquent.

Bank regulators, state and federal, dont share that view. Its easier to measure a bank and measure its performance by trying to quickly clean the banks books and records of nonperforming assets or nonpaying loans.

Norman Williams stands in the Bronzeville funeral home founded by his father in the 1930s. He currently runs the business.

Norman Williams stands in the Bronzeville funeral home founded by his father in the 1930s. He currently runs the business.

You May Like: Hawaii To Chicago Flight Time

Southern Teachers & Parents Federal Credit Union

With more than 80 years of service, Southern Teachers & Parents Federal Credit Union provides personalized financial services to its members. Those eligible for membership include alumni, employees, parents, and students of Southern University employees in Assumption, East Baton Rouge, Lafourche, and West Feliciana parishes employees in Thibodaux and the Lafourche Parish Juvenile Justice Facility and their family members.

  • Branches: Main Office and Lafeda Branch
  • ATMs: Part of the CU Alliance network
  • States: Louisiana
  • Services: Accounts , loans, other services
  • Assets: $30.34 million
  • Availability: Brick-and-mortar and online

On Illinois Federals Support Of Local Businesses

One of Chicago

Williams: I remember as a young man, my father would take me to a store on the first floor of the Rosenwald Building it was a meat market, and it was run by a butcher. And you could actually, in that little place, get some of the finest cuts of meat that you could get anywhere in Chicago.

It was mostly family-owned, or maybe a community of families that owned and operated these businesses. They operated them with a sense of pride and purpose because they were invested. They lived in the community, they worked in the community, they made their investment in the community. They wanted a piece of commercial ownership in their community. So in these commercial corridors, alongside single-family residences, alongside multifamily residences, you are generating economic life and youre circulating those dollars within the community not just our bank, but all of the black banks were an integral part of that.

helped local businesses not as a commercial bank it helped local businesses because of its existence. If people were trying to start a very small business, their equity was their home. And so if they could get access and borrow money using their home as collateral, that was more valuable than gold.

A scene from the inside of Illinois Federal, published in a 1964 Issue of the “Illinois Federal Family News.”

A scene from the inside of Illinois Federal, published in a 1964 Issue of the “Illinois Federal Family News.”

Also Check: How To File For Divorce In Chicago

Significance Of City Influence

At the turn of the century less than 2% of the total population of Chicago was made up of African Americans, which is around 20,000 people. Most of which were densely populated in the “Black Belt” district, which covered a few blocks in each direction from State Street south 22nd Street to 35th Street.:75 However, this was about to change as many African Americans began migrating to Northern cities due to the harsh prejudices of Jim Crow segregation, Ku Klux Klan persecution, and poor agricultural employment opportunities. The mass circulation of Chicago’s popular African-American newspaper the “Chicago Defender“, brought the city to the attention of those seeking promising occupations and inexpensive housing. It was these new migrants that made up the majority of Binga’s early clientele.:76

What Was The First Black

The Savings Bank of the Grand Fountain United Order of True Reformers, also known as The True Reformers Bank, was the first officially chartered Black-owned bank.

The True Reformers Bank was founded in 1888 by Reverend William Washington Browne who wanted a way for Black locals to protect their finances from white residents. Browne, a former slave in Georgia, established the bank in Richmond, Virginia, with first-day deposits of more than $1,270.

Recommended Reading: Amtrak Chicago To Los Angeles

United Bank Of Philadelphia

Originally founded in 1992, United Bank of Philadelphia offers personalized banking services in the Greater Philadelphia area to both individuals and businesses. By providing financing to small businesses in urban areas, United Bank supports their growth and allows them to create jobs with livable wages, thus improving the economic condition of those working in the local community.

  • Branches: Center City and Progress Plaza
  • ATMs: C-Town Supermarket , City Hall , Criminal Justice Center , Masjidullah Inc. , Philadelphia Traffic Court , Police Districts , Revolutions at Penn Treaty , The Fillmore-Philadelphia , and West Philadelphia
  • States: Pennsylvania
  • Availability: Brick-and-mortar and online

Who Can Bank At A Black

Call To Invest In Black-Owned Banks Gains Traction

Anyone. We are all subject to the same regulations and standards as any other bank, and all of our banks welcome customers of any race, gender, religion or sexual orientation,” said James, pointing to the Atlanta Hawks 2020 agreement to secure $35 million in construction financing via Black-owned banks a first for a professional sports team. “We specialize in customer service and treat all customers fairly.”

To bank with most of these insitutions, you need to either a) live in a certain state, or b) open an account at a branch so you can probably only bank with them if you live nearby. But there are a couple, such as OneUnited and Liberty Bank & Trust, that allow you to open an account online from anywhere in the US.

Don’t Miss: Air India Chicago To Ahmedabad

Where Can I Learn More About Black

Check out this list, of course, and read “Let Us Put Our Money Together: The Founding of America’s First Black Banks,” a publication of the Federal Reserve Bank of Kansas City.

And if you want more information on MDIs, including those owned by Hispanic Americans, Asian Americans, and Native Americans, visit the webpage of the National Bankers Association. For historical data on MDIs , visit the FDIC’s webpage.

Mount Olive Baptist Church Federal Credit Union

It received its Federal Charter on Oct. 21, 1997. The Mount Olive Baptist Church Federal Credit Union is a faith-based, not-for-profit financial institution. Mount Olive Baptist Church members and their immediate families are eligible to join this organization.

  • Branches: Mount Olive Baptist Church FCU
  • ATMs: N/A
  • Availability: Brick-and-mortar and online

Read Also: Flights From Chicago To Morocco

Greater Kinston Credit Union

The Greater Kinston Credit Union was founded in 1952 and provides a variety of loans and deposit accounts. People who live, work, worship, or attend functions in Lenoir, Greene, Jones, Craven, and Pitt counties are eligible for membership.

  • Branches: Branch Office
  • ATMs: Part of the CashPoints network
  • States: North Carolina
  • Services: Debit and credit cards deposit , nonprofit, and youth accounts mortgage and personal lending and other services
  • Assets: $12.91 million
  • Availability: Brick-and-mortar and online

St Choice Credit Union


Founded in 1946, the Hospital Authority Credit Union was created to provide financial services to employees of Grady Hospital. In 1991, the organization became known as 1st Choice Credit Union.

  • Branches: Auburn Avenue Administrative Office and Grady Memorial Hospital
  • ATMs: Crestview Health & Rehabilitation Center and Ponce De Leon Center
  • States: Georgia
  • Services: Personal and business checking and savings, in addition to loans
  • Assets: $30.77 million
  • Availability: Brick-and-mortar and online

Recommended Reading: Dear Evan Hansen Chicago Tickets

Carver Federal Savings Bank

The Carver Federal Savings Bank was founded in 1948 to serve African American communities with limited access to mainstream financial services. The majority of its branches and ATMs are located in low- to moderate-income neighborhoods. Carver Federal Savings Bank is one of the two banks that are considered Black-operated instead of Black-owned.

  • Branches: Atlantic Terminal Branch , Bedford-Stuyvesant Restoration Plaza Branch , Crown Heights Branch , Flatbush Branch , and St Albans Branch , 125th Street Branch , and Malcolm X Boulevard Branch
  • ATMs: Malcolm X Boulevard Branch and 125th Street Branch
  • States: New York
  • Availability: Brick-and-mortar and online

Location And Other Characteristics Of Mdis

Although MDIs hold a very small share of total banking sector deposits , they tend to be concentrated in particular places . Fourteen states have never had a minority depository institution, but in certain states and certain large counties, for example, Los Angeles and Miami-Dade, MDIs hold about 10 percent of county-level deposits. This amounts to more than $37 billion in Los Angeles and $10 billion in Miami-Dade.16 In several rural counties of Oklahoma and Texas, as well as in other states, more than half of county deposits are held by MDIs. Differences by location exist even at the state level. Tracing various characteristics during the 2008 financial crisis by MDI state location, we see that the unemployment rate was higher in states with an MDI bank, as were various indicators of housing market distress, including foreclosure rates and the share of subprime mortgages .

You May Like: Jordan 1 Chicago Off White

On The Founding Of Illinois Service Federal

Williams: The bank was started by 13 African American men. Shortly after the Great Depression, in 1934, they were able to put together about $7,000 and start a savings and loan that was mutual in concept, meaning it was owned by the depositors. It wasnt owned by wealthy individuals. They were chartered by the federal government and regulated by the Federal Home Loan Bank Board with the mission of providing bank access and lending credit to people to buy and own their own home.

Norman Williams leafs through old photographs of Illinois Federal . On the right, he holds up a photograph of then-bank president Archibald J. Carey Jr. and board member John Sengstacke at the ribbon cutting of an Illinois Federal branch at 46th and Martin Luther King Drive in the 1960s.

Norman Williams leafs through old photographs of Illinois Federal . On the right, he holds up a photograph of then-bank president Archibald J. Carey Jr. and board member John Sengstacke at the ribbon cutting of an Illinois Federal branch at 46th and Martin Luther King Drive in the 1960s.

Banks Based In Black Neighborhoods

First Black Owned Bank In Chicago | Jesse Binga | BLACK HISTORY

Not all community banks and credit unions that focus on serving Black communities have sought a government certification for it. Though banks are not required to publish the locations and recipients of all the loans they make, they are required to report the locations of their deposits in branches. Bank regulation encourages banks to meet the credit needs of the areas in which they do business. This means that the location of branches and deposits can be a good proxy for what kind of communities the bank is focused on serving. If theres a particular Black neighborhood youre passionate about supporting, try searching the database of all community-focused banks for one that has a significant share of their money based in the zip code that matters to you.

Don’t Miss: Flights From Chicago To Boise Idaho

Seaway Bank And Trust

Seaway Bank and Trust Company is a full-service Black Owned commercial bank located in Chicago, Illinois. Established in 1965 as Seaway National Bank of Chicago, it was created to counter discriminatory lending practices on Chicagos South Side. The founders, a group of local businessmen, sold shares door to door throughout the community to raise the $1,000,000 in capital needed to secure the Federal charter. By the end of its first year, Seaways assets had climbed to over $5,000,000, and the bank has grown steadily over the years.

Location: Chicago, IL

Minimum Balance: No minimum balance required

Monthly Fees: None

Table 3 Bank Branch Deposits And Characteristics Of Local Market Areas Served By Minority

American Community SurveyMinority-Owned Depository Institutions

The decline in the number of MDIs during and after the financial crisis mirrors that of small banking institutions, although some differences exist by minority ownership designation . Overall, the number of MDIs fell from a high of 219 banks in 2008 to 171 banks in 2015, a decline of 22 percent. The highest net percentage decline in MDIs was among African American-owned banks 20 of these banks closed during and after the 2008 recession, and only one new bank was added to the sector from this group. Although more than 35 Asian-owned banks closed between 2008 and 2015, 26 new Asian-owned banks were added to the list of MDIs after 2008, such that this group showed an 18 percent net reduction between 2008 and 2015. As for Hispanic banks, 16 have closed since 2008 and another six have been created, for a net decline of 18 percent. Overall, there was more volatility in the MDI sector than among community banks as a whole. By our count, 45 percent of the MDIs that existed in 2001 no longer operated in 2015. The FDIC study found that only 30 percent of MDIs operated continuously throughout the study period, from 2002 to 2013, compared with 57 percent of community banks.

Don’t Miss: 2 Bedroom Apartments For Rent Chicago

Figure 6 Bank Branches By Minority Ownership

We disaggregate MDIs by ethnic group, with the hope of capturing potential heterogeneity based on ownership status. In some of the exercises, we also condition on bank size, whether the banks have assets less than $100 million or up to $10 billion, following previous research that finds systematic differences based on asset size. We compare MDIs with non-MDI community bank peers that are in the same local service areas as the MDIs. We measure the similarity of local markets of MDIs and non-MDIs, based on market deposit shares in a given census tract by identifying all the census tracts where MDIs have branches. Then we look at the universe of non-MDIs with branches in each of these tracts and calculate the deposit market share of each one. If the deposit market share of the non-MDI correlates with that of the MDI bank in that census tract, within one or two standard deviations, we assign them as sharing a similar market. We adopt a simple methodology based on t statistics to assess the significance of the mean differences in the various characteristics of the MDIs and non-MDIs in the MDI local market.

Popular Articles
Related news