Merger creates largest Black-owned US bank
City First Bank in Washington and Broadway Federal Bank in Los Angeles are merging to form the largest Black-led bank in the US.
The pair have more than $1 billion in combined assets under management. The banks also have approximately $850 million in total depository institution assets, as of 30 June 2020.
Combining the two institutions will increase their collective commercial lending capacity for investments in multifamily affordable housing, small businesses, and non-profit development in financially underserved urban areas. It will also create a national platform for impact investors.
Under the terms of the merger agreement, the boards of directors of both banks will merge into Broadway. Broadway will remain as the surviving corporation.
The combined nine-member board will be composed of five directors from City First and four from Broadway. Broadway’s president and CEO Wayne-Kent A. Bradshaw will lead the board of the combined institution as its chair. City First board chair Marie C. Johns will serve as the institution’s lead independent director.
Each bank holds a strong financial position as Community Development Financial Institutions (CDFIs). The combined institution will maintain its CDFI status. This requires 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).