Two Black-Led banks, City First in Washington, DC and Broadway Financial Corporation in Los Angeles, CA announced today that they have entered into a transformational Merger of Equals agreement to create the largest Black-Led bank in the nation with more than $1 billion in combined assets under management and approximately $850 million in total depository institution assets.
Combining the two institutions will increase their collective commercial lending capacity for investments in multifamily affordable housing, small businesses, and nonprofit development in financially underserved urban areas while creating a national platform for impact investors.
Brian E. Argrett, chief executive of City First, will be chief executive of the combined company, which will use City First as its banking brand but keep the publicly traded Broadway Financial Corporation as its bank holding company. Wayne-Kent A. Bradshaw, Broadway’s chief executive, will be the chairman of the combined company.
Broadway and City First are Community Development Financial Institutions (CDFIs), and have a longstanding history of advancing economic and social equity through the provision of capital in low- to moderate-income communities. The combined institution will maintain its CDFI status, requiring it to deploy at least 60% of its lending into low- to moderate-income communities
Since the beginning of 2015, City First Bank and Broadway Federal Bank have collectively deployed over $1.1 billion combined in loans and investments in their communities
“Given the compounding factors of a global pandemic, unprecedented unemployment and social unrest resulting from centuries of inequities, the work of CDFIs has never been more urgent and necessary,” said Brian E. Argrett.“As part of this historic merger, we are demonstrating that thriving urban neighborhoods are viable markets that require a dedicated focus, long-term commitment and critical access to capital.”
“The new combined institution will strengthen our position and will help drive both sustainable economic growth and societal returns,” said Mr. Bradshaw. “We envision building stronger profitability and creating a multiplier effect of capital availability for our customers and for the communities we serve.”
The new institution will maintain bi-coastal headquarters and will continue to serve and expand in the banks’ current geographic areas, with a desire to scale to other high-potential urban markets.
Shares of Broadway Financial were up 17 percent on Wednesday afternoon. The transaction, which is expected to close early next year, will leave Broadway stockholders with 52.5 percent ownership of the new company and City First shareholders with 47.5 percent ownership.
Related: Black Banks That Are Still Operating In 2020
Subscribe and Follow SHOPPE BLACK on Facebook, Instagram, YouTube & Twitter
Get your SHOPPE BLACK Apparel!
We need a bank like that here in Phoenix Arizona
Agreed!
We need it in murfreesboro tn, one of the fastest growing cities and fastest growing university middle tenn state univ. I am part of a group called black murfreesboro consist of businesses, educators, etc 8k strong and growing.
Sho u right
I am so happy to read this article, never thought a such entity existed as BLACK Bank. I look forward to support this company as well as doing more advertising in order to let it be known every where.
I do not have much, but I will be making a deposit soon.
I live in the NY area, where are these black owned banks?.
Yes count me in
Thanks for a new beginning in Black adventure!
We have a black bank in Atlanta and in Boston but they’re not reaching out to the black community don’t what they’re doin
Where are these banks located & their isn’t any in my state , can I open an account online ?
I would love to have Bank in Atlanta. Send me some names
So happy to learn of shoppeblack
Congratulations. Can I open an online account?
Great information..Thanks
I am so very proud of all of you and your achievement, your dedication, hard work and entrepreneurship.My God continue being your compass,
WE DEFINITELY NEED A BANK LIKE THAT IN NEW HAVEN & HARFORD COUNTY.
Awesome
Congratulations to everyone
Thanks for getting the word out!
This is wonderful news that needs to be shared. The Black Community needs to be made more aware of the opportunities, businesses and growth many of us are pursuing.
Thank You
Awesome
Can this Bank Offer opportunities for Small Businesses that traditional bank have avoid based on matrixs. I am Risheem Muhammad Founder Retrain America and MPEDS endorsed by the State of Texas agencies yet I have issues receiving funding to expand
We black need to pull together
This great I love
I am absolutely so very proud of them how do I open an account there
Great News !!! WE need this bank all over the country, Carribeean, Latin america, Africa and specially online to reach the Black Diaspora. Thank you.
Congratulations and much success. We need to buy stock and support.
We need one in Florida so I can change banks
Go public so we can buy shares..
Love this. We need one in NY
Bless you and Thank you all, may our Lord contuine to guild, strengthen, give wisdom, knowledge, peace, above all LOVE!
Reading this article makes me very proud, happy and excited all at the same time. This is such wonderful news. This is AWSOME! Thank you JESUS! Is there one in Baltimore?
Love it.
This news needs to be sent to all black athletes and churches
Threw out world. We can be a economical
Thriving people, if we
Look up.
Stand up.
Speak up.
Together we can make a difference. Rjs.
tell the Black Church to Bank Black’
I too want to know how To invest in this bank. Would like to have an account.?
Congratulations and much success! Do you have a bank in Roanoke Va?
Blessed to hear the Black Banks, good news, keep me up dated, want to be apart.
I got questions for you
Please open one here in Shreveport la. We need this. Congratulations my Brothers.
Thank u for publishing this article. I did not know that so many black owned banks existed.
Thank you again,
I was just speaking to some people about opening banks, hospitals,grocery stores and jobs in black communities.
Please keep it coming… The power of our economy is real…
This is great news! Hoping to see this Institution spread all across the nation. More advertsement is needed to bring awareness.
Good job my business could use that type of help
Wow! This is amazing. Great news, may this be the first of many👍🏾
we need more of this
Excellent!
BYFC is their ticker in case you’re interested in investment opportunity.
I am sooooo proud of U ALL!
WE need these companies to step up!!!!
Do u have a Mortgage Company?
Congratulations and I am definitely interested in both opening an account and investing! We need to look out for and invest in us! Blessings!
Maricopa City Az. as well…
Developer’s are flocking here
like 40 going North. We have no DtW just newly business being open. A bank. for non whites would be a good fit…
Our people of color population
Is growing very rapidly.
love what you all are doing…….
I’m excited and want to learn more!
Well Congratulations! I’m available to do business. I am working on a few projects here in Boston. I am currently selling affordable clothes, shoes, and devices for everyone. I also am the founder of the Small Business e-commerce charity listed below for anyone who wants to help start my new home business. Register to vote and stay safe. BLM ✊🏾
I was elated to learn about this merger! I plan to make deposits
As soon as I can afford to make
a deposit of any kind.
Now this is where Black Lives Really Matter… Financial strength is our epic center for competitiveness
This is wonderful. If we unite it will work.
So happy to read this. We definitely need a black owned bank in the Greenville, SC area. Are there any plans?
I think this is AWESOME! I might need to reach out to these banks to get the help I need with my business. My goal is to become a company like the ADP, Paychex and Insperity of the world (handle Insurance Benefits and Payroll for other organizations/companies).
Africans can do better if we unite. A new dawn for bkacks. Cheers ALL!
Would love this bank to open a branch in Upper Darby, PA.
We have great diverse small businesses to mid sized companies as well as residents who could use your services!
Just saying…