Broadway Financial headquarters on Wilshire Boulevard.
After hanging out a for-sale sign for two years, downtown-based Broadway Financial Corp. can finally breathe a sigh of relief. Broadway Financial executives and investment bankers completed their merger with Washington, D.C.-based CFC Banc Corp. on April 1, creating CityFirstBroadway.
The new institution is the largest Black-led bank in the United States, with more than $1 billion in assets. Its assets account for nearly one-fifth of the $5 billion-plus held last year by Black-owned financial institutions in the United States.
The merger comes amid a sharp decline in the number of Black-owned financial institutions. According to data compiled by the Federal Deposit Insurance Corp., fewer than 20 remain in the United States, a drop of more than half from 2001.
The falloff reflects the battles many Black financial institutions have lost against big banks, which can offer lower-priced services, as well as the impact of Covid-19 pandemic restrictions on their customer base.
The road to becoming the biggest wasn’t easy for Broadway, which at one point nearly disappeared from the banking landscape after 75 years.
Read the full Article @ labusinessjournal.com