There are only 19 black-owned banks in the United States. Wells Fargo just gave a huge boost to 13 of them. Back in 2020, Wells Fargo pledged to invest up to $50 million in black-owned Minority Depository Institutions (MDIs) to help close the racial wealth gap. They made good on their promise and completed equity investments in 13 black-owned banks, including Los Angeles’ City First Bank (formerly Broadway Federal Bank).
South Los Angeles’ last Black-owned community bank, Broadway Federal Bank, merged with Washington DC-based City First Bank in April 2021 – forming the nation’s largest Black-led bank with more than $1B in assets under management.
As part of Wells Fargo’s commitment, the newly formed bank will receive more than just capital investment. Wells Fargo will also offer access to a dedicated relationship team to work with each MDI on financial, technological, and product development strategies.
The support allows participating banks to lean into Wells Fargo’s experience with entering new markets, expanding locations, and designing new products. Customers of these MDIs will also be able to use Wells Fargo’s nationwide ATM network without incurring fees.
The following MDIs received an investment:
- City First Bank, in Los Angeles, California
- Carver Federal Savings Bank, in New York, New York
- Carver State Bank, in Savannah, Georgia
- Citizens Trust Bank, in Atlanta, Georgia
- Citizens Savings Bank & Trust, in Nashville, Tennessee
- Commonwealth National Bank, in Mobile, Alabama
- First Independence Bank, in Detroit, Michigan
- The Harbor Bank of Maryland, in Baltimore, Maryland
- Industrial Bank, in Washington, D.C.
- Liberty Bank, in New Orleans, Louisiana
- M&F Bank, in Durham, North Carolina
- Optus Bank, in Columbia, South Carolina
- Unity National Bank, in Houston, Texas