Growing America’s largest Black-owned bank to $10 billion

Key Points

• Under Alden McDonald Jr., Liberty Bank expanded from $2 million to $1 billion in assets, serving underserved communities across 11 states.
• McDonald and his son Todd aim to grow Liberty’s assets to $10 billion, positioning it as the largest Black-owned financial institution in the U.S.
• McDonald anticipates economic downturns and real estate corrections but sees opportunities in digital banking and community investment projects.

Alden McDonald Jr. has never been one to think small. Over the past five decades, the 81-year-old African American businessman and banking veteran has turned Liberty Bank and Trust from a modest $2 million institution into a $1 billion financial powerhouse.

Now, he’s setting his sights even higher. His next goal? Expanding Liberty’s assets to $10 billion. For McDonald, this isn’t just about numbers—it’s about economic empowerment. He believes a strong Black-owned bank can transform communities, and he’s determined to convince a new generation of depositors and investors to believe in that vision.

“We can do everything any bank in America can do—and do it better,” McDonald said. But despite Liberty’s growth, he sees a deeper issue. “Black America doesn’t have confidence in us,” he said. “That’s our biggest challenge today. Black people don’t feel that we can do what they need us for.”

Liberty Bank’s growth under McDonald’s leadership

McDonald’s story is one of determination. Growing up in New Orleans during the Jim Crow era, he learned the value of hard work from his parents—his father, a waiter, and his mother, a school bus driver who used a red Chevrolet van to transport neighborhood kids. That spirit of service never left him.

He entered banking in 1966 as an operations specialist at International City Bank in New Orleans. By the time he became vice president, he was earning $18,000 a year—an achievement for a Black banker at the time. But in 1972, his career took a pivotal turn when Norman C. Francis, then-president of Xavier University, approached him with an idea: to help launch a new Black-owned bank. That was the beginning of Liberty Bank and Trust.

Under McDonald’s leadership, Liberty expanded into 11 states, including Illinois, Michigan, Texas, and Tennessee. The bank now holds $948 million in deposits, according to the Federal Deposit Insurance Corporation (FDIC), and has been profitable for 47 of its 52 years by lending to underserved communities and generating revenue from fees and interest.

Liberty’s impact goes far beyond banking. In its early years, it played a crucial role in helping Black professionals in New Orleans buy homes, laying the foundation for a new Black middle class. And McDonald has infused Liberty’s headquarters with culture, curating one of the South’s largest Black art collections, valued at $2.5 million.

The collection includes works by Elizabeth Kaplan and Clementine Hunter, as well as a $25,000 reprint of Jacob Lawrence’s portrait of Haitian General Toussaint L’Ouverture. But the piece that resonates most with McDonald is a bronze sculpture of Sisyphus pushing a boulder uphill—a symbol of Liberty’s struggle to rebuild after Hurricane Katrina. “It reminds me of me,” he said.

Preparing for the next chapter

As McDonald looks ahead, he knows Liberty’s future depends on a smooth leadership transition. That’s where his son, Todd McDonald, comes in. The 43-year-old, a Morehouse College graduate with an MBA from Northwestern, is Liberty’s president-in-waiting.

He has already played a key role in securing capital for the bank’s growth, helping to raise $30 million from JPMorgan Chase, Bank of America, and Citi in 2013—pushing Liberty past the $1 billion mark.

Alden sees in Todd a vision even bigger than his own. “Todd’s vision is twice my vision,” he said. “I was satisfied with $700 million in assets. Todd said, ‘No—we’ve got to be $1 billion.’ I said, ‘Well, go get the capital.’ And he did.”

Now, they’re aiming even higher. Expanding to $10 billion would make Liberty the largest Black-owned financial institution in the U.S. and redefine its role in the banking industry. Plans include opening a new corporate office near the French Quarter and expanding outreach in major cities.

Todd is already leading conversations with Black business leaders nationwide, pitching Liberty as more than just a bank for African Americans—it’s a bank for all working-class Americans. “The sales pitch for America to bank with us is simple,” he said. “You get the same services. And you help grow your community.”

Liberty Bank braces for economic shift

As the banking industry evolves, McDonald is preparing Liberty for a new era—one shaped by digital banking and economic shifts. He predicts that generative AI and changes in government policy will trigger an economic downturn, warning that “a lot of people are going to lose their jobs.” He also expects local real estate values to drop over the next five years. “It’s a correction,” he said. “But we’ve got to look for the opportunities. O for obstacles. O for opportunities.”

One opportunity on the table: revitalizing Lake Forest Plaza, a long-abandoned shopping mall in East New Orleans. But legal complications make it a costly endeavor. “It would take hundreds of millions just to untangle the land’s legal woes,” McDonald admitted.

Despite the challenges, the McDonalds remain focused on bridging the trust gap between Black Americans and commercial banks. “We have more networking and more contacts for more things than any other type of industry,” Alden said. “When you need something, you pick up the phone. If we don’t know, we know somebody who does.”

For Alden McDonald Jr., Liberty’s success has never been just about banking—it’s about legacy. It’s about proving that Black-owned institutions can not only survive but thrive on a national scale. And with Todd McDonald at the helm, that vision is set to endure for generations to come.