Broadway Financial Completes Merger to Create Largest Black-Owned Bank in the US

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.

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