Two Black-owned banks in two different states are coming together to become the largest minority-owned financial institution in the United States.
Broadway Federal Bank, a Los Angeles-based commercial lender founded in 1946, and City First Bank in Washington, which opened in 1998 have entered into a transformational Merger of Equals agreement to create the largest Black-owned bank in the nation with more than $1 billion in combined assets.
Two Black-owned banks announced today that they have entered into a transformational Merger of Equals agreement to create the largest Black-owned bank in the nation with more than $1 billion in combined assets.
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.
The enlarged bank will specialize in three areas of financing: multifamily affordable housing, small businesses and nonprofit development, Mr. Argrett said in an interview.
“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.”