An investor group led by one of Martin Luther King’s children and a former Trump Administration official has agreed to buy Holladay Bank and Trust in Salt Lake City.
Redemption Holding Co. said in a press release that it plans to seek approval to become a bank holding company. It also plans to turn the $68 million-asset Holladay into a minority depository institution (MDI). The purchase price wasn’t disclosed.
Ashley Bell, a former White House policy advisor and Small Business Administration regional administrator, would serve as the bank’s executive chairman and CEO. Bernice King, will serve as the the bank’s senior vice president of corporate strategy and alliances.
Bell and King also co-founded the National Black Bank Foundation.
Dhani Jones, a former professional football player, is an investor.
“Black banks make the American dream possible for all Americans by deploying resources that uniquely address the financial realities of communities that have been systematically excluded, overcharged, and under-capitalized for hundreds of years,” Bell said in the release.
“Redemption will serve as a lifeline to the next wave of Black and Brown first-time homebuyers and small business entrepreneurs across the country,” Bell added.
The number of Black-owned banks in the U.S. has decreased from 50 in 1976 to 16 at the end of last year, based on data from the Federal Deposit Insurance Corp.
Holladay’s existing management and staff will remain after the deal closes. The investor group plans to add an experienced management team and a board comprised of finance and technology experts.
Performance Trust Capital Partners and Nelson Mullins Riley & Scarborough advised Redemption. Parsons, Behle & Latimer advised Holladay.