Columbia Savings & Loan Association Positively Impacts Black Communities, Banking Industry

By Hannah Flanders

Wisconsin’s first Black-owned bank nears 100 years of service

In 2024, Columbia Savings & Loan Association, Wisconsin’s first — and currently, only — African American-owned bank, will reach 100 years of service. The institution primarily serves low- and moderate-income families of Milwaukee County. Since 1924, the institution, founded by Ardie and Wilbur Halyard, has prioritized providing access to capital to members of its community.

Since 1924, Columbia Savings & Loan has prioritized access to capital for members of its community.

Now led by Ernest Jones and Will Martin, Columbia Savings & Loan Association — the sixth oldest Black-owned bank in the U.S. and oldest Black-owned bank in Wisconsin — continues to see its mission to ensure low- to moderateincome families have access to capital where others may see risk.

» Black-owned Banks in America

Like all banks, the history of Black-owned banks in America is storied and complex. The first Black-owned bank — True Reformers Bank — was founded in 1888 in Richmond, Virginia. While the bank didn’t open until April of the following year, narrowly following the opening of Capital Savings Bank in Washington D.C. in October 1888, True Reformers operated in 24 states and spearheaded the idea of closing the racial wealth gap. Although True Reformers Bank closed in 1910, by 1934, the number of financial institutions owned by people of color numbered over 130.

According to the Federal Reserve Bank of Chicago, only nine Black-owned banks — including Columbia Savings & Loan Association — remained in business during the Great Depression. During and following the civil rights movement of the 1950s and 1960s, which encouraged Black individuals to empower themselves, Black-owned banks throughout the U.S. again experienced growth. In 1970, the Department of the Treasury began the Minority Bank Deposit Program, which would help strengthen and preserve minority-owned banks. One year later, in 1971,

North Milwaukee State Bank was chartered.

In addition to the pressure Columbia was facing as one of 50 Black-owned banks nationwide, the institution also was severely impacted by the savings and loan crisis of the 1980s. The disaster, caused by excessive lending and taxpayer bailout guarantees, claimed nearly 45 of Wisconsin’s savings and loan associations and 35 Black-owned banks across America. Although Columbia Savings & Loan endured, the Federal Reserve Bank of Chicago (FDIC) notes that losses caused by the crisis fell disproportionately on to the minority-owned sector.

At the turn of the 21st century, Milwaukee welcomed Legacy Bank as its third Black-owned bank. However, the Great Recession of 2007–2009 claimed both Legacy Bank and North Milwaukee State Bank, and only 23 Black-owned banks, including Columbia Savings & Loan, remained throughout the country.

While many Blackowned banks continue to recover from the obstacles of the last several decades, the need for institutions willing to invest in low- to moderate-income communities is becoming even more critical.

» Ingrained Discrimination

When Columbia Savings & Loan Association began operations in January 1925, the beginnings of redlining were just emerging in Wisconsin. Published in the Milwaukee Journal just months before, members of Milwaukee’s Board of Realtors discussed the development of a City Negro District or “Black Belt,” restricting housing for Black residents to the west side of Milwaukee. Ultimately, the concept of racially based redlining was implemented, and thousands of Black families were forced to live within a concentrated space of fewer than 40 blocks. This discrimination in housing remained solidly in place until the

The Great Recession of 2007–2009 claimed both Legacy Bank and North Milwaukee State Bank, and only 23-Black-owned banks, including Columbia Savings & Loan, remained throughout the country.