A merger announced Wednesday will create the nation’s largest Black-controlled bank and the first with assets of more than $1 billion.
Broadway Federal Bank, a Los Angeles-based commercial lender founded in 1946, will combine with City First Bank in Washington, which opened in 1998.
Brian E. Argrett, chief executive of City First, will be chief executive of the combined company, which will use City First as its banking brand but keep the publicly traded Broadway Financial Corporation as its bank holding company. Wayne-Kent A. Bradshaw, Broadway’s chief executive, will be the chairman of the combined company.
The enlarged bank will specialize in three areas of financing: multifamily affordable housing, small businesses and nonprofit development, Mr. Argrett said in an interview.
Broadway and City First are Community Development Financial Institutions, which are lenders that focus on low- and moderate-income areas and typically serve minority borrowers and entrepreneurs who lack the assets to get traditional loans. The new company will preserve Broadway’s designation as a Minority Depository Institution, a federally insured institution that is mostly owned by minority shareholders or led by a minority-controlled board.