Two Black Owned Banks Merge Forming a Billion Dollar Lender
Broadway Financial Corporation (LA) and City First (Washington DC) have merged to create the largest black owned bank in the country. Together they have combined assets to become a billion dollar lender. City First chief executive, Brian E. Argrett, will operate as chief executive of the new company. City First will be the banking brand while Broadway Financial Corporation will maintain its publicly traded identity as the bank’s holding company.
“The new combined institution will strengthen our position and will help drive both sustainable economic growth and societal returns,” said Kent A. Bradshaw, Broadway Financial Corporation chief executive. “We envision building stronger profitability and creating a multiplier effect of capital availability for our customers and for the communities we serve.”
City First chief executive, Brian E. Argrett, says the merger was urgently needed.
“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 Argrett. “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.”
The merger, expected to be completed by early 2021, gives Broadway stockholders majority ownership at 52.5 percent ownership leaving City First shareholders at 47.5 percent ownership.
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