New Black Bank in Ohio Moves Closer to Public Debut After Raising $24.5 Million in Capital
Marking a major breakthrough, Adelphi Bank intends to soon make its public debut.
It will be the sole Black-owned bank in Columbus, Ohio’s largest city and capital, and the only one of its type statewide. A minority depository institution, the business has gained approvals to open from the Federal Deposit Insurance Corp and Ohio Department of Financial Institutions.
Adelphi Bank Chairman and CEO Jordan Miller told BLACK ENTERPRISE that the total capital raised was $24.5 million from individuals and companies in Central Ohio. He added that the bank will be located on the Near East side of Columbus in a historic Black neighborhood called Bronzeville.
Banks generally must gain $10 million to $30 million in starting capital to launch, research shows.
The funding can be raised through several means, including seeking backing from investors. New banks are required to show they have enough funds to cover risks like unforeseen losses and support growth.
Miller said the bank is aiming to open to the public by mid-April. Adelphia Bank’s arrival will counter an extended trend of Black banks closing in the past several years. FDIC data showed 20 Black banks in America as of the third quarter of 2022. That is down from a sizable 48 in 2001. Among its functions, the FDIC monitors the insured minority depository institutions it oversees.
Miller said the bank will offer a full plate of consumer and commercial products. More on the bank’s products, leadership, and other details can be found here. Miller is coming out of retirement to run the bank, after previously serving as a regional president at Fifth Third Bank.
Adelphi Bank’s board includes Miller; former Columbus mayor Michael Coleman; and Kevin Boyce, a Franklin County Commissioner, former Ohio Treasurer, and an investment banker.
Black-owned banks have typically opened in their communities to target individuals and small businesses that have not been pinpointed by larger mainstream banks. Black banks have also pursued Blacks who have historically not been inclined to open accounts or borrow from traditional larger banks.
Moreover, banking services are crucial, including in the Black community. This report revealed roughly 40% of Black adults are underbanked or underbanked. That is by far the highest percentage among racial groups analyzed for those categories.
Miller reflected on a lot of challenges in starting up the bank. They included putting together a team of experienced bankers and board members. Others were completing the application process with the FDIC, Ohio Department of Financial Institutions, and raising the capital. Another hurdle was working with numerous vendors and getting the bank’s technology and systems installed.
“Patience was critical. Nothing moves fast. The focus was on doing it right versus just getting it done.”
So, how does Adelphi Bank hope to build wealth for Black individuals and entrepreneurs? Miller says the bank will use a pre-application process to work with the community.
“This pre-application support and help is missing in most of the larger banking systems when it comes to understanding and supporting black businesses and black families,” he said. “Taking the time to get to know the business and individual is the first step in helping them gain access to capital and begin the road to building wealth. Our goal is to get to yes. The answer is not ‘no’ but ‘how.’”