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Broadway Financial Corporation and CFBanc Corporation Announce Receipt of Regulatory Approvals for Merger
WASHINGTON & LOS ANGELES--(BUSINESS WIRE)-- Broadway Financial Corporation (“Broadway”) (NASDAQ: BYFC) and CFBanc Corporation (“City First”) jointly
About this update from Broadway Financial Corporation
[{"type":"text","content":" WASHINGTON & LOS ANGELES--(BUSINESS WIRE)--\nBroadway Financial Corporation (“Broadway”) (NASDAQ: BYFC) and CFBanc Corporation (“City First”) jointly announced today that they have received the regulatory approvals required to complete their proposed merger of equals transaction from the Office of the Comptroller of the Currency on December 24, 2020 and from the Federal Reserve Bank of San Francisco acting on behalf of the Board of Governors of the Federal Reserve System on December 28, 2020. Pursuant to the merger, City First will merge with and into Broadway, with Broadway as the surviving corporation, and, subsequently, Broadway Federal Bank, f.s.b. (“BFB”), Broadway’s bank subsidiary, will merge with and into City First Bank of D.C., N.A. (“City First Bank”), City First’s bank subsidiary, with City First Bank as the surviving bank.\n\nIn addition, City First Enterprises, Inc., a nonprofit corporation that is the largest stockholder of City First, received regulatory approval from the Federal Reserve Bank of San Francisco to acquire approximately 18.85% of Broadway pursuant to the merger and thereby indirectly acquire control of BFB.\n\nThe merger will create the largest African American-led Minority Depository Institution (“MDI”) in the nation with more than $1 billion in combined assets under management and over $900 million in total depository institution assets as of September 30, 2020. Combining the two institutions will increase their collective commercial lending capacity for investments in multi-family affordable housing, small businesses, and nonprofit development in financially underserved urban areas, while creating a national platform for impact investors. \n\n“I am excited that we are announcing regulatory approval for our historic merger. This represents a critical milestone in our process for creating a dynamic banking institution with sufficient scale to begin addressing the systemic inequities in access to capital and financial opportunities available within low-to-moderate income communities. The need for such an institution has been highlighted by the confluence of domestic social unrest, the global pandemic, and resulting pervasive unemployment that has occurred in 2020,” said Brian E. Argrett, President and CEO of City First Bank and the Vice Chair and CEO of the new combined institution. “These events h...