Black-Owned Liberty Bank Profitable For 47 Of Its 52 Years

Nearly two decades after Hurricane Katrina devastated New Orleans, the city still bears the scars of the disaster.

Liberty Bank focuses on lending to underserved communities while generating revenue from traditional banking fees and interest. I Photo: Joe Mabel Wikimedia Commons

However, one beacon of resilience remains: Liberty Bank, the largest Black-owned bank in America.

Founded in 1972, Liberty has expanded from $2 million in assets to over $1 billion. According to the Federal Deposit Insurance Corporation (FDIC), the bank holds $948 million in deposits, making it the largest Black-owned financial institution by asset size, Forbes Daily's Danielle Chemtob reported.

Operating in 11 states, Liberty has been profitable for 47 of its 52 years, a point of pride for its president and CEO, Alden McDonald Jr. The bank focuses on lending to underserved communities while generating revenue from traditional banking fees and interest.

As a Minority Depository Institution (MDI) and Community Development Financial Institution (CDFI), Liberty and other Black-owned banks serve a crucial role in their communities, historically financing small businesses, churches, and individuals who have faced discrimination from larger financial institutions.

Today, there are 23 Black-owned banks in the U.S., down from 46 in 2001. However, their combined assets have grown from $5 billion to $9 billion over the past 25 years.

Washington, D.C.-based City First Bank leads with $1.3 billion in assets, largely due to its 2021 merger with Broadway Financial. Liberty follows closely behind at $1.1 billion.

“Most Black banks are still surviving today,” McDonald says.

However, few have thrived as Liberty has. He and his son Todd are committed to rebuilding trust between Black Americans and the banking industry.

“We have more networking and more contacts than any other type of industry,” Alden says. “When you need something, you pick up the phone. If we don’t know, we know somebody else who will.”