Black-Led Banks Merge to Form $1B Institution

City First Bank and Broadway Federal Bank combine to create largest minority-owned depository in the U.S.

Apr. 13, 2026 at 4:48am

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A minimalist studio still life photograph featuring a stack of shiny metal coins, a sleek black credit card, and a geometric glass prism in shades of blue and gray, symbolizing the financial strength and economic empowerment resulting from the merger of two Black-owned banks.The merger of two Black-led banks creates a powerful new institution poised to drive economic progress in underserved communities.Washington Today

Two Black-led banks on opposite coasts, City First Bank and Broadway Federal Bank, have announced a merger that will create the largest minority-owned depository institution in the United States with over $1 billion in assets, according to FDIC data. The combined entity will be headquartered in Washington, D.C. and aims to deliver additional resources and lending power to underserved communities.

Why it matters

The merger of these two Black-owned banks represents a significant milestone for minority representation in the banking industry. It will create a stronger, more impactful institution that can better serve the financial needs of disadvantaged communities and Black-owned businesses that have historically faced barriers to accessing capital.

The details

City First Bank, based in Washington, D.C., and Broadway Federal Bank, based in Los Angeles, have been working on this merger for over a year. The combined entity will have more than $1 billion in assets, making it the largest minority-owned depository institution in the country according to FDIC data. City First President and CEO Brian E. Argrett said the merger will give the banks more lending power and financial capacity to better serve Black-owned businesses and underserved communities.

  • The banks announced their merger on April 13, 2026.
  • Argrett expects the merger to be completed in early 2027.

The players

City First Bank

A Washington, D.C.-based bank that describes itself as an 'impact-driven' institution specializing in lending to underprivileged people and communities.

Broadway Federal Bank

A Los Angeles-based bank that is joining forces with City First Bank to create the largest minority-owned depository institution in the United States.

Brian E. Argrett

The President and CEO of City First Bank, who said the merger will give the combined entity more lending power and financial capacity to serve Black-owned businesses.

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What they’re saying

“We were going to do this deal because it made sense and because it would deliver additional resources to our communities.”

— Brian E. Argrett, President and CEO, City First Bank

What’s next

The banks expect to complete the merger in early 2027 after receiving regulatory approvals.

The takeaway

This merger represents a significant milestone for minority representation in the banking industry, creating a stronger institution that can better serve the financial needs of disadvantaged communities and Black-owned businesses that have historically faced barriers to accessing capital.