Broadway Financial and CFBanc (City First or CFB) have finalised their merger of equals, creating the largest Black-led minority depository institution (MDI) in the US with over $1bn in AuM.
The merged entity had more than over $900m in total depository institution assets at the end of December 2020.
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Commenting on the deal, chairman of the board Wayne Bradshaw said: “I am excited for the future of CityFirstBroadway as it builds upon the legacy of the former Broadway and CFB organisations with a larger capital base, more diversified loan portfolio, and significant pool of liquid assets.
“The combined institution is positioned to have a greater impact on the development of underserved urban neighbourhoods, while generating stronger profitability and returns on investment for our stockholders.”
Under the agreement, City First merged into Broadway, with Broadway as be the surviving entity.
Broadway’s subsidiary Broadway Federal Bank (BFB) merged into City First’s subsidiary City First Bank of D.C., National Association, with City First Bank as the surviving bank.
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By GlobalDataThe operations of the merged banks will be carried out under the name CityFirstBroadway, which is committed to supporting financially underserved urban areas.
It will originate loans supporting investments in multifamily affordable housing, small businesses, and nonprofit community facilities within low-to-moderate income communities.
Broadway shareholders own 52.5% of the combined entity, with the remainder owned by City First shareholders.
The transaction was announced in August last year. It secured the regulatory clearance in January this year and stockholders’ approval this March.
President/CEO and vice chairman Brian Argrett called the deal a “transformational merger” of two community development financial institutions (CDFIs).
Argrett said: “With our combined equity capital base exceeding $100 million, prior to Broadway’s previously announced pending private placements of common stock, we will be able to exert a significantly greater impact on underserved urban communities and advance the process of closing the severe economic gaps in opportunity for our communities, business owners, and families.”
