Two banks have merged to form the country’s largest Black-led lender.
The combination of Broadway Federal Bank in Los Angeles and City First Bank in Washington will focus on multifamily affordable housing, the New York Times reported.
“We need to scale up our impact,” said City First CEO Brian E. Argrett, who will lead the new lender of the same name. “Having a larger capital base is important so we can direct more resources into underserved communities.”
Both banks are Community Development Financial Institutions that serve low- and moderate-income areas. The merged bank will be a designated Minority Depository Institution. The classification refers to institutions that are federally insured and largely owned by minority shareholders or controlled by a minority-led board.
Of the 143 Minority Depository Institutions in the country, just 20 have Black leadership, according to the Times.
City First will have headquarters in Washington and California. [NYT] — Sylvia Varnham O’Regan