- Key insight: Kenneth Kelly said the volunteer work he's done outside of his jobs has honed his skills and made him a more effective leader.
- Expert quote: "I know that I won't sit in this seat forever. One of the priorities I have as a leader is being sure we have bench strength," Kelly said of his role at First Independence.
- What's at stake: As for his priorities at ABA, Kelly said he supports increased de novo bank formation and attributed the slowdown in new charters in part to a tough regulatory environment.
It didn't take long for Kenneth Kelly to emerge as a banking industry advocate following his appointment as Detroit-based First Independence Bank's chairman and CEO in March 2017.
In 2018, Kelly was elected chairman of the National Bankers Association, a trade group representing minority depository institutions. The same year, Kelly joined the Federal Deposit Insurance Corp.'s Advisory Committee on Community Banking, serving until 2021. He's also been a member of the Federal Reserve Bank of Minneapolis' Community Advisory Board, and has served as a director of the Federal Home Loan Bank of Indianapolis in 2023.
Along the way, Kelly was asked to join the board of the American Bankers Association. His appointment began what Kelly termed a "journey of serving" that culminated last month with his election as ABA's chairman.
Becoming chairman "was not on my checklist or my dream list," Kelly told American Banker. "I've tried to contribute and make a difference whatever space I found myself in."
Kelly struck a similar note in the speech he delivered at the ABA convention immediately after the gavel was passed to him.
"Giving is a part of living, and you've got to have an attitude of gratitude," Kelly said. "A grateful banker leads not for gain alone, but with awareness of responsibility to the community."
Big plans
Kelly has sketched out an ambitious agenda for his one-year term.
He said he expects to focus on technology, cybersecurity and regulatory reform — perennial issues for the leader of one of the nation's premier banking trade groups. But Kelly also plans to stress the development of emerging leaders, an issue he has emphasized inside the $700 million-asset First Independence.
"I know that I won't sit in this seat forever," Kelly said, referring to his role at First Independence. "One of the priorities I have as a leader is being sure we have bench strength. That's a topic we certainly will be talking about and supportive of."
Last year, Kelly moved to strengthen First Independence's management team. He appointed Dimitrius Hutcherson, who was the bank's chief administrative and chief technology officer, as president.
To ensure continuity on First Independence's board of directors, Kelly created a next generation board, to mentor emerging business leaders and introduce them to the requirements of serving as a bank director. Next generation members also participate in service projects, becoming what Kelly termed "ambassadors for the bank."
"It is my belief we could also look at opportunities like that to further strengthen the industry and create really an affinity, not just within our institutions but beyond in our communities," Kelly said.
Kelly also expressed support for increased de novo bank formation.
"Should it be easier for individuals who have the desire to form a bank? I would say absolutely," Kelly said. "We certainly would be advocates for more banks in formation. The challenge has just been the regulatory environment in many ways has made it very difficult to start an institution and get through what I would call the early de novo process."
"The reality is we certainly would like to see more banks formed," Kelly added.
Kelly got a head start on regulatory advocacy. He chaired the ABA's committee on deposit insurance reform and
"We've been strong advocates for rational regulation," Kelly said. "I think we're starting to see that under this current administration."
ABA President and CEO Rob Nichols said Kelly "brings a powerful combination of decisive leadership, strong vision and problem-solving skills to the role of ABA Chair."
Kelly "understands the unique challenges facing smaller institutions thanks to his leadership of First Independence, while also recognizing the critical role that banks of all sizes play in our economy," Nichols said.
An atypical background
Kelly doesn't possess a typical banker's background. A native of Eufaula, Alabama, he graduated from Auburn University with a degree in electrical engineering. He then went to work for Southern Company, ultimately spending 27 years with the Atlanta-based energy provider.
He was involved in outside work during his time at Southern, too. He was a founding member of Hands on Birmingham, a group that connects residents of the Alabama city to volunteer opportunities. Kelly also established an endowment supporting minority students from Eufaula who aim to study engineering at Auburn.
Kelly joined First Independence — where his cousin Donald Davis had been the majority owner and CEO for more than three decades prior to his death in 2014 — after his retirement from Southern.
First Independence, one of the nation's largest African American-owned banks, had weathered a rocky stretch following Davis' passing, reporting annual losses in 2014 and 2015 and only a small profit in 2016.
With Kelly at the helm, First Independence has grown both its assets and profits. Kelly also made the decision to expand outside Detroit. First Independence entered the Minneapolis market, where it now maintains two branches, in 2022.
The bank has been profitable throughout Kelly's tenure, reporting record net income of $5.9 million in 2024. Profits totaled $3 million through the first six months of 2025.
Kelly attributed much of his success at First Independence to his industry advocacy jobs outside the bank.
"This in and of itself is a personal development opportunity," Kelly said. "Leaders need developing also. Having the opportunity to fellowship and meet many of the individuals from across the country that I have the opportunity to build a relationship with has made me a better leader."
