Values-based banks want to be recognised as thought leaders at the forefront of progressive banking. Therefore, they aspire to the highest standards, acknowledging that they can always learn and improve. For the sake of accountability and credibility, and to meaningfully develop, values-based banks assess their business model and performance vis-à- vis conventional banks and values-based peers. Ambition can also mean setting a new standard.
In early 2021, City First Bank DC merged with Broadway Federal Bank in Los Angeles. This decision gave the two banks a greater scale to finance housing and entrepreneurship in underserved black communities.
City First Bank was established 25 years ago when community leaders came together to address the lack of access to finance in the region for those suffering from decades of divestment and discrimination. It became Washington DC’s first community development financial institution (CDFI) bank certified by the United States Department of the Treasury, with $9.4 million invested from public and private sources.
Similarly, in 1946, community leaders established Broadway Federal Bank to finance underserved communities. Separately the two banks have grown to see the impact that small business financing and investment in housing can have on job creation and economic empowerment. Collectively, according to their merger information site, they have deployed more than $1.1 billion combined in loans and investments in their communities.
Brian E. Argrett, chief executive of City First DC, is the CEO of the combined institutions, under the name of City First Bank, NA. In an interview with Bloomberg, Argett described the ambition of the merger:
“The combination will allow our collective institution to focus its lending capacity in three key areas: multifamily housing, small-business finance, and non-profit finance, which can help low- and moderate-income areas.”
Both banks keep their locations on North America’s east and west coasts to continue to serve their communities and maintain their desire to scale. The merger comes at the heels of the global pandemic and the national protests that sparked a resurgence of the global Black Lives Matter movement. Given the urgency for more systemic change and transparency, there is a real need to grow community development financial institutions and the Banking on Values movement.
