*Broadway Financial Corporation and CFBanc Corporation to Combine to Create the Largest Black-Led Minority Depository Institution in the U.S.
Community development finance leaders City First Bank of DC and Broadway Federal Bank in Los Angeles expand access to capital in underserved urban areas.
“For the last year, we have been working on creating the largest Black bank in the history of the country. We will have a national footprint and hope to eventually have branches in every urban market. It has taken a lot of time and effort to get to this point.” ~ Virgil Roberts Chairman of the Board Broadway Federal Bank
Here’s more via their press release:
Broadway Financial Corporation and CFBanc Corporation to Combine to Create the Largest Black-Led Minority Depository Institution in the U.S. Community development finance leaders City First Bank of DC and Broadway Federal Bank in Los Angeles expand access to capital in underserved urban areas
WASHINGTON, DC and LOS ANGELES, CA – CFBancCorporation (“City First”) in Washington, DC and Broadway Financial Corporation (“Broadway,” Nasdaq: BYFC) in Los Angeles, CA announced today that they have entered into a transformational Merger of Equals agreement to create the largest 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 (as of June 30, 2020). 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.
City First Bank of D.C., National Association (“City First Bank,” a City First subsidiary) and Broadway Federal Bank, f.s.b.(“Broadway Federal Bank,” a Broadway subsidiary) each hold a strong financial position as Community Development Financial Institutions(CDFI), 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 (as of June 30, 2020).
“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, President and CEO of City First Bank and the Vice Chair and CEO of the newcombined institution.“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.”
Read the rest of this release HERE.
African American Board Leadership Institute