The CEOs of City First Bank in Washington, DC and Broadway Federal Bank in Los Angeles have decided to merge to create the largest Black-owned bank and Black-led Minority Depository Institution (MDI) in the nation with more than $1 billion in combined assets under management and approximately $850 million in total depository institution assets.
Brian E. Argrett, CEO of City First, will be CEO of the newly combined company, which will use City First as its banking brand but keep the publicly-traded Broadway Financial Corp (BYFC) as its bank holding company. Wayne-Kent A. Bradshaw, Broadway’s CEO, will be the chairman of the new company.
Combining the two institutions increases 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.
Both banks have held a strong financial position as 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.
CDFIs help to close funding gaps, create jobs, expand critical social services, and spur equitable economic development with a mission to strengthen the overall well-being of vulnerable 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.
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. As a national bank, the combined entity intends to continue to operate under the supervision of the Office of the Comptroller of the Currency (OCC) and to be listed on the Nasdaq Capital Market.
Courtesy of Black Business.com