OneUnited Bank
| Company type | Private |
|---|---|
| Industry | Banking, Financial services |
| Founded | 1968 |
| Headquarters | Boston , United States |
Area served | United States (Boston, Los Angeles, Miami) |
Key people | Kevin Cohee (Chairman and CEO), Teri Williams (President and COO) |
| Products | Banking services, UNITY Visa secured credit card |
| Owner | African American ownership |
| Website | www |
OneUnited Bank is a Massachusetts-chartered trust company, owned and operated by African Americans, with its main office located in Boston, Massachusetts. It holds FDIC insurance and is recognized as a community development financial institution (CDFI) by the U.S. Department of Treasury. By April 30, 2018, OneUnited Bank's total assets amounted to $661.2 million.
Origins
Established in 1968 as Unity Bank & Trust Company with initial capital of $1.2 million in Boston’s Dudley Square (currently known as Nubian Square), the bank concentrated on revitalizing the neighborhood by providing loans exclusively to local homeowners and businesses. After operating for nine years, Unity Bank ceased operations and was replaced by Bank of Boston Commerce.
Boston Bank of Commerce enhanced its community development initiatives through collaborations with corporations and governmental bodies. Among its chairmen was United States Senator Edward Brooke. On December 31, 2000, Boston Bank of Commerce reported total assets of $257.2 million alongside deposits totaling $125.2 million. It sought approval to merge with Founders National Bank based in Los Angeles, California, which held $107 million in assets and $98.7 million in deposits at that time. This merger received authorization from the Board of Governors of the Federal Reserve System, the Director of the Office of Thrift Supervision, and the United States Attorney General.
1990s
During the mid-1990s, following an economic downturn that affected numerous northeastern regional banks, Boston Bank of Commerce was subjected to an FDIC cease-and-desist order mandating increased capital reserves and enhanced loan quality standards. In 1995, under the leadership of Chairman and CEO Kevin Cohee and President and COO Teri Williams, the bank secured a significant capital injection and shifted its focus toward acquiring African American-owned banks and thrift institutions in major metropolitan areas. At this juncture, the bank was dealing with negative equity and substantial asset difficulties. Through several acquisitions of distressed African American-owned banks over subsequent years, Boston Bank of Commerce became the first African American-owned interstate bank by acquiring Peoples National Bank of Commerce—the sole African American-owned bank in South Florida.
2000s
In 2001, the bank merged with Founders National Bank of Los Angeles, whose principal owners included former professional basketball player Earvin "Magic" Johnson, singer Janet Jackson, and ex-Motown Records President Jheryl Busby.
Following this merger, Boston Bank of Commerce adopted the name OneUnited Bank.
OneUnited actively supports financial education via an annual youth essay competition. Additionally, President Teri Williams authored I Got Bank! What My Granddad Taught Me About Money to provide urban youth with practical guidance on managing finances.
During late 2008 and early 2009, OneUnited encountered financial difficulties when its equity holdings in Freddie Mac and Fannie Mae became worthless. To ensure operational stability, the bank obtained $12 million through the Troubled Asset Relief Program (TARP). Since 2009, OneUnited has consistently remained profitable. As of October 2019, it was among six banks that neither failed nor repaid TARP funds fully, still owing $8.7 million in dividends plus the original $12 million principal amount.
2010s
At its branches located in Boston, Los Angeles, and Miami, OneUnited Bank's staff utilize customer relationship management (CRM) tools provided by Salesforce.com through iPads.
In 2013, assessments by the Massachusetts Division of Banks alongside the FDIC highlighted “minimal lending activity” in Boston and notable regulatory violations in Miami. Over a period of three years, OneUnited either originated or acquired 34 loans within Massachusetts, with 26 concentrated in Suffolk County, where the bank maintains three offices. Lending and refinancing efforts predominantly targeted multi-family housing in Los Angeles, resulting in 78 loans issued there; conversely, only eight loans were made in Boston and three in Miami. Across the country, merely nine loans were extended to borrowers classified as low- or moderate-income.
In January 2014, OneUnited introduced the UNITY Visa secured credit card named the "Comeback Card," designed specifically for individuals with poor credit scores. This card offers educational resources aimed at enhancing creditworthiness. The UNITY Visa Card received distinction from American Banker as a Notable IT Initiative due to its "Me" application, which allows users to apply for the card and establish a deposit account to fund it once approved.
Beginning November 1, 2014, OneUnited ceased accepting credit card balance payments via online and telephone channels. Payment options over-the-counter remain available exclusively at branches within the Boston, Miami, and Los Angeles metro areas. For UNITY Credit Card customers located remotely, check payments sent by mail became the primary method for settling balances.
2020s
In 2020, OneUnited attracted media coverage with the release of a Visa card featuring an image of abolitionist and activist Harriet Tubman making a gesture similar to the "Wakanda Forever" salute from Black Panther. Created by Miami-based artist Addonis Parker, this depiction was intended to symbolize the American Sign Language sign for "love."
Awards
Between 2004 and 2008, OneUnited Bank was honored with the Treasury Department’s premier accolade, the Bank Enterprise Award.