Bank / Credit Union

Black-led bank merge creates $1B institution

August 28, 2020

Black-led City First Bank and Broadway Federal Bank have recently merged, creating the largest minority-owned depository institution in the U.S. with assets in excess of $1 billion.

City First, which is based in Washington DC, describes itself as an "impact-driven" institution specializing in lending to underprivileged people and communities, according to a report from CNN.

Los Angeles-based Broadway Federal is a community-oriented savings bank dedicated to providing conventional loans to minority consumers.

Brian E. Argrett, president and CEO of City First said in the report that the two banks have been working on their deal for a year and by combining their resources the two banks can accomplish more than they could separately.

"We were going to do this deal because it made sense and because it would deliver additional resources to our communities," Argrett said in the report.

The merger is expected to be completed in early 2021.