Redemption Bank has officially become the first Black-owned bank in the Rocky Mountain region. The announcement follows the completed acquisition of Holladay Bank & Trust by Redemption Holding Company, a Black-led investment group.
Located in Utah, the newly renamed Redemption Bank marks a significant moment in U.S. banking history. It is the first time a Black-owned bank has been based outside traditionally underserved communities. It also becomes the only Black-owned bank between Houston and Los Angeles.
Redemption Bank will focus on commercial lending and small business loans. It holds about $65 million in assets. A digital banking platform is also in the works. It is expected to launch by the end of summer, offering services nationwide.
Ashley Bell, CEO and chairman of Redemption Holding, emphasized Utah’s strong financial environment. He said the choice of Salt Lake City was based on its business-friendly climate and the financial strength of the acquired bank.
“We found an exceptional business environment in Utah, especially in Holladay,” Bell explained. “The bank has a strong balance sheet. Utah also has the highest return on assets for banks in the country. We are ready to compete and earn customers from all backgrounds.”
Salt Lake City is not known for its diversity. Its Black population is under 3%. Still, Redemption Bank sees this as a chance to bring financial inclusion to areas often overlooked by traditional banking systems.
The bank’s journey began in 2023 when the purchase of Holladay Bank was first announced. However, the deal was delayed. The collapse of Silicon Valley Bank that year slowed down the process. Bell credits federal agencies and key financial leaders for helping complete the deal.
“This took longer than we planned,” said Bell. “We are thankful to the FDIC staff, the American Bankers Association, and new federal leadership for making this happen.”
One of the notable figures joining Redemption Bank is Bernice A. King. She is the youngest daughter of Dr. Martin Luther King Jr. King will serve as the senior vice president of corporate strategy. She will also join the advisory board.
Redemption Bank becomes the 24th Black-owned bank in the United States. These banks are part of a group known as Minority Depository Institutions, or MDIs. These banks must be owned or directed by members of minority communities.
MDIs have a long history. They began in the 1800s when Black Americans were denied access to mainstream banks. These institutions offered loans, savings accounts, and financial tools in low-income and minority neighborhoods.
The Civil Rights era sparked the growth of more MDIs. With more economic power, Black communities began to build wealth through local banks. In 1989, Congress passed a law to support MDIs under the Financial Institutions Reform, Recovery, and Enforcement Act.
Redemption Bank’s mission reflects those early goals. By creating access to funding and building digital tools, it hopes to support new businesses and provide financial support beyond the traditional banking map.
Today, Black-owned banks remain rare. The launch of Adelphi Bank in 2023 was the most recent addition to the list before Redemption Bank. With many MDIs facing financial pressures, the creation of Redemption Bank brings renewed energy to the sector.
As Redemption Bank prepares to launch its digital platform, it aims to serve a wide range of customers—especially those left out by traditional banks. Its presence in Utah and its national outreach could reshape what Black-owned banking looks like in the U.S.
