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Two Black-Led Banks Just Merged to Form a $1 Billion Lender

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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.

black owned banks
Brian E. Argrett

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

Wayne-Kent A. Bradshaw

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.

Tony O. Lawson

Related: Black Banks That Are Still Operating In 2020


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73 Comments

  1. 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.

      • Hello,
        Are you referring to Citizens Trust Bank? They need to do a better job marketing to the Black Community in Atlanta. With there being very little need to go into the physical bank for transactions, more people should have an account with them. My two cents!

  2. I am so very proud of all of you and your achievement, your dedication, hard work and entrepreneurship.My God continue being your compass,

  3. 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

    • 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

  4. 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?

  5. 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.

  6. Thank u for publishing this article. I did not know that so many black owned banks existed.
    Thank you again,

  7. Congratulations and I am definitely interested in both opening an account and investing! We need to look out for and invest in us! Blessings!

  8. 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.

  9. 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 ✊🏾

  10. 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.

  11. 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).

  12. 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…

  13. The article said that these banks are BLACK LED. It doesn’t say that they are Black owned. Citizens Trust Bank in Atlanta is Black Owned.

  14. Can someone please help me to get to the article about Ayi Mensah Park and African and African American entrepreneurs who got together to build this community? I can’t get to the article for some reason.

    Help!!
    Thank you.

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