Redemption Bank Is The First Black-Owned Banking Institution In The West

Redemption Bank is the first Black-owned bank in the expansive "Black-banking desert" that stretches from Houston to Los Angeles.

Redemption Holding Co. has finalized its acquisition of Utah-based Holladay Bank & Trust, making the newly named Redemption Bank the first Black-owned bank in the Western United States.

It is the first Black-owned bank in the “Black-banking desert,” which stretches from Houston to Los Angeles. Redemption Bank’s geography also makes it the first Black bank not located in an economically vulnerable community and the first Black bank located in the Rocky Mountains.

The acquisition, announced in 2023, faced delays. Many were due to the economic instability caused by the collapse of Silicon Valley Bank. Despite these hurdles, Ashley Bell, CEO and chairman of Redemption Holding, expressed gratitude for the transaction’s completion, according to the Associated Press.

Headquartered in Salt Lake City, a city with a Black population of less than 3%, Redemption Bank intends to focus on commercial lending. Additionally, it will specialize in facilitating small business loans. With approximately $65 million in assets, the bank is poised to launch a fully digital platform by late summer.

“We are committed to competing in Utah to earn the business of customers from all backgrounds,” Bell said.

The Redemption Bank leadership team includes Dr. Bernice A. King. King is the youngest daughter of the late Rev. Martin Luther King Jr. She is expected to serve as Redemption Bank’s senior vice president for corporate strategy and sit on its advisory board. This aligns with the broader mission of Minority Depository Institutions (MDIs), which is to provide financial services to Black Americans who are often denied access by mainstream banks.

Redemption Bank became the 24th Black-owned bank in the nation, following the establishment of the last MDI, Adelphi Bank, in 2023. MDIs have historically played a crucial role in fostering economic opportunities in underserved communities.