Broadway Federal and City First banks merged and formed the largest Black-led bank.
The merging of two banks with Black chief execs set a record to form the US’s largest minority-led bank. Last week, Broadway Federal Bank and City First Bank agreed to combine. The assets amounted to over $1 billion and total deposits of $850 million.
The newly formed company will appoint the City First Bank president Brian Argrett as its new CEO. Meanwhile, chief exec of Broadway Federal Bank Wayne-Kent Bradshawwill become the chairman of the board members.
Bloomberg quoted Argrett saying: “The combination will allow our collective institution to focus its lending capacity in three key areas: multi-family housing, small-business finance, and non-profit finance.”
A pair of Black-led banks (City First Bank and Broadway Federal Bank) on opposite coasts are joining forces to become the largest minority-owned depository institution in the US, according to FDIC data. https://t.co/svaoPDmH2j
— CNN Business (@CNNBusiness) August 31, 2020
In a statement, Bradshaw noted that the merged banks would “strengthen our position. He added that the move “will help drive both sustainable economic growth and societal returns.”
Argrett revealed to CNN Business that the deal between the two banks has already been underway for a year. “We were going to do this deal because it made sense and because it would deliver additional resources to our communities,” he said.
BusinessWire said that the combination of the two banks gained unanimous approval from both institution’s boards of directors. The company expects the completion of the merger by 2021’s first quarter. Moreover, it still needs regulatory approval.
In Service to the Community
According to its website, Broadway Federal is a “community-oriented savings bank in Southern California serving low-to-moderate income communities.”
Meanwhile, City First claims on its website that it is “an impact-driven Community Development Financial Institution and nationally chartered depository bank and commercial lender serving low-and-moderate income communities in Washington, DC and surrounding region.”
Argrett said that the merger comes “at an important time… an important space.” The chief also noted that the deal between the two banks is especially important today. It happened amid the pandemic and “the social unrest that is occurring around our country” from social and financial disparities.
He further said that they have to “scale up,” in order to allocate “more resources into underserved communities.”