In a landmark move, Redemption Holding Company has successfully acquired Holladay Bank and Trust based in Utah, marking the first Black-led purchase of a non-minority owned bank in U.S. history. This acquisition has given birth to Redemption Bank, the nation’s 24th Black-owned financial institution, and it is notably the first Black-led bank located outside an economically vulnerable community.
The acquisition is especially significant as Redemption Bank will now operate from the Mountain West region, a first for Black-owned banks. Prominent in the effort is Bernice King, daughter of the Rev. Martin Luther King Jr., who will join the advisory board of Redemption Bank and take on the role of senior vice president for corporate strategy and alliances.
“I know deeply what it means for a nation to respond in times of crisis and how communities come together to realize that what’s needed, sometimes, has never been done,” Bernice King expressed in a press release. She believes that Redemption Bank will contribute to fulfilling her father’s dream of economic equality, underscoring the significance of this historic moment.
The path to this historic acquisition was paved by a collective investment from a diverse group of early-stage investors in Utah who contributed nearly $30 million. These investors include notable entities and individuals such as Ally Financial Inc., Central Bancorporation, Rick Durham, and several family foundations, which showcases the breadth of support for this transformative initiative.
Among the investors is Utah Jazz point guard Collin Sexton, who participated through TribeAngels and Coinlete, highlighting a new generation’s commitment to expanding access to capital. Gail Miller, chair of the Larry H. & Gail Miller Family Foundation, emphasized that their financial support aims to reinforce the idea of self-reliance and enhance opportunities for communities.
“Our financial support of Redemption Bank directly reinforces our commitment to creating viable pathways toward economic self-reliance for the communities we hold so dear,” said Miller. She hopes that individuals from diverse backgrounds will recognize the significance of this moment and contribute to building a lasting institution by supporting the bank.
Ashley Bell, the CEO and chairman of Redemption Holding, shared plans for a fully digital banking platform set to launch at the end of summer. This new platform aims to provide services to small businesses across the country, reinforcing the bank’s commitment to supporting diverse communities. Despite being headquartered in Salt Lake City, where the Black population is less than 3%, Bell noted the favorable business environment in Utah and the strong financial standing of Holladay Bank.
“We found an exceptional business environment in Utah, specifically in Holladay, along with a bank that has a clean balance sheet and a state with the highest average return on assets for banks in the country,” Bell stated. His commitment to earning the trust and business of customers from all walks of life reflects the bank’s dedication to inclusivity.
The boards of directors for both Redemption Holding Company and Holladay Bank comprise leaders from various sectors, including sports, academia, and law. This diversity in leadership illustrates the collaborative effort to harness different perspectives towards a common goal.
Utah Governor Spencer Cox remarked on this achievement, stating, “This milestone reflects the power of partnership, vision and a shared belief that access to capital can transform lives.” His acknowledgment of the leaders who contributed to this vision highlights the community-wide support behind the effort.
As Redemption Bank moves forward with its mission, it stands as a testament to what can be achieved when visionaries come together with a commitment to change. With its groundbreaking acquisition, Redemption Bank is poised to make a lasting impact on the landscape of banking and economic opportunities in the U.S.
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