SECURITIES AND EXCHANGE COMMISSION

                              Washington, DC 20549


                                    FORM 8-K

                                 CURRENT REPORT

     Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): September 25, 1997
                                                 -------------------

                            IBW Financial Corporation
--------------------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)

    District of Columbia               0-28360                  52-1943477
(State or other jurisdiction   (Commission file number)       (IRS Employer
    of incorporation)                                     Identification Number)

                  4812 Georgia Avenue, NW, Washington, DC 20011
--------------------------------------------------------------------------------
               (Address of Principal Executive Offices) (Zip Code)

Registrant's telephone number, including area code: (202) 722-2000
                                                   ---------------




<PAGE>



Item 5. Other Events.

     On September 25, 1997, the  shareholders of IBW Financial  Corporation (the
"Company")  approved  the  amendment  of the  Articles of  Incorporation  of the
Company to change the capital  stock of the Company to  eliminate  the  existing
class of  1,000,000  undesignated  preferred  stock,  of which  no  shares  were
outstanding,  and to authorize  the issuance of 500,000  shares of  undesignated
voting preferred stock and 500,000 shares of undesignated  non-voting  preferred
stock.  The  complete  composite  text of the Articles of  Incorporation  of the
Company,  as amended,  is included as Exhibit 1 to this report,  incorporated by
reference herein and made a part hereof.

     On September 29, 1997,  the Company  completed the sale of 31,200 shares of
its common stock and 20,000 shares of its Series A Non-Voting  Preferred  Stock,
in a private placement transaction, to the Federal National Mortgage Association
("Fannie  Mae"),  at a price of $25.00 per share of common  stock and $25.00 per
share of Series A  Non-Voting  Preferred  Stock (the shares of common  stock and
shares of Series A  Non-Voting  Preferred  Stock sold to Fannie Mae  referred to
collectively herein as the "Shares"),  for a total purchase price of $1,280,000,
pursuant to an  agreement  dated  August 15,  1997.  The shares of common  stock
issued to Fannie Mae represent  approximately 4.67% of the outstanding shares of
the  Company's  common  stock,  and the shares of Series A Non-Voting  Preferred
Stock  represent  all of the  authorized  shares of that  series.  The  Series A
Non-Voting  Preferred Stock, which is redeemable at any time by the Company at a
redemption  price of $25.00  plus  accrued but unpaid  dividends  to the date of
redemption,  is  entitled to annual  dividends  at a rate of five  percent.  The
complete terms of the Series A NonVoting Preferred Stock are attached as Exhibit
2 hereto, incorporated by reference herein and made a part hereof.

     Under the stock purchase  agreement,  the Company is restricted from taking
any action,  including  the  repurchase,  redemption  or other  reduction in the
number of outstanding  shares of capital stock, but not including the incurrence
of losses,  which would  result in the value of the Shares  representing  10% or
more of the equity of the Company,  or the shares of common stock sold to Fannie
Mae  representing  5% or more of the outstanding  common stock.  The Company has
certain  rights under the  agreement  to  repurchase  the Shares  under  certain
circumstances.

     The  Company  will  contribute  $980,000  of the  proceeds  of the  sale to
Industrial Bank, National  Association,  Oxon Hill,  Maryland,  the wholly owned
subsidiary of the Company,  for use in connection  with its mortgage and housing
related  lending  operations,  and the  promotion of  affordable  housing in its
market area. The remaining  proceeds will be retained at the Company for general
corporate purposes.

Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.

(a)  Financial Statements of Business Acquired.  Not applicable.

(b)  Pro Forma Financial Information.  Not Applicable.

(c)  Exhibits.

         Number                     Description
         ------                     -----------
           1              Articles of Incorporation of the Company, as amended

           2              Designation of the Series A Non-Voting Preferred Stock



<PAGE>



                                   Signatures

     Pursuant to the  requirements  of the Securities  Exchange Act of 1934, the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned hereunto duly authorized.


                                         IBW FINANCIAL CORPORATION



                                         By:   /s/ B. Doyle Mitchell, Jr.
                                            ------------------------------------
                                               B. Doyle Mitchell, Jr., President

Dated:  October 6, 1997
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SECURITIES AND EXCHANGE COMMISSION

                              Washington, DC 20549

                                    FORM 8-K

                                 CURRENT REPORT

     Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): September 25, 1997
                                                 -------------------

                            IBW Financial Corporation
--------------------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)

    District of Columbia               0-28360                  52-1943477
(State or other jurisdiction   (Commission file number)       (IRS Employer
    of incorporation)                                     Identification Number)

                  4812 Georgia Avenue, NW, Washington, DC 20011
--------------------------------------------------------------------------------
               (Address of Principal Executive Offices) (Zip Code)

Registrant's telephone number, including area code: (202) 722-2000
                                                   ---------------
Item 5. Other Events.

     On September 25, 1997, the  shareholders of IBW Financial  Corporation (the
"Company")  approved  the  amendment  of the  Articles of  Incorporation  of the
Company to change the capital  stock of the Company to  eliminate  the  existing
class of  1,000,000  undesignated  preferred  stock,  of which  no  shares  were
outstanding,  and to authorize  the issuance of 500,000  shares of  undesignated
voting preferred stock and 500,000 shares of undesignated  non-voting  preferred
stock.  The  complete  composite  text of the Articles of  Incorporation  of the
Company,  as amended,  is included as Exhibit 1 to this report,  incorporated by
reference herein and made a part hereof.

     On September 29, 1997,  the Company  completed the sale of 31,200 shares of
its common stock and 20,000 shares of its Series A Non-Voting  Preferred  Stock,
in a private placement transaction, to the Federal National Mortgage Association
("Fannie  Mae"),  at a price of $25.00 per share of common  stock and $25.00 per
share of Series A  Non-Voting  Preferred  Stock (the shares of common  stock and
shares of Series A  Non-Voting  Preferred  Stock sold to Fannie Mae  referred to
collectively herein as the "Shares"),  for a total purchase price of $1,280,000,
pursuant to an  agreement  dated  August 15,  1997.  The shares of common  stock
issued to Fannie Mae represent  approximately 4.67% of the outstanding shares of
the  Company's  common  stock,  and the shares of Series A Non-Voting  Preferred
Stock  represent  all of the  authorized  shares of that  series.  The  Series A
Non-Voting  Preferred Stock, which is redeemable at any time by the Company at a
redemption  price of $25.00  plus  accrued but unpaid  dividends  to the date of
redemption,  is  entitled to annual  dividends  at a rate of five  percent.  The
complete terms of the Series A NonVoting Preferred Stock are attached as Exhibit
2 hereto, incorporated by reference herein and made a part hereof.

     Under the stock purchase  agreement,  the Company is restricted from taking
any action,  including  the  repurchase,  redemption  or other  reduction in the
number of outstanding  shares of capital stock, but not including the incurrence
of losses,  which would  result in the value of the Shares  representing  10% or
more of the equity of the Company,  or the shares of common stock sold to Fannie
Mae  representing  5% or more of the outstanding  common stock.  The Company has
certain  rights under the  agreement  to  repurchase  the Shares  under  certain
circumstances.

     The  Company  will  contribute  $980,000  of the  proceeds  of the  sale to
Industrial Bank, National  Association,  Oxon Hill,  Maryland,  the wholly owned
subsidiary of the Company,  for use in connection  with its mortgage and housing
related  lending  operations,  and the  promotion of  affordable  housing in its
market area. The remaining  proceeds will be retained at the Company for general
corporate purposes.

Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.

(a)  Financial Statements of Business Acquired.  Not applicable.

(b)  Pro Forma Financial Information.  Not Applicable.

(c)  Exhibits.

         Number                     Description
         ------                     -----------
           1              Articles of Incorporation of the Company, as amended

           2              Designation of the Series A Non-Voting Preferred Stock
Signatures

     Pursuant to the  requirements  of the Securities  Exchange Act of 1934, the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned hereunto duly authorized.

                                         IBW FINANCIAL CORPORATION

                                         By:   /s/ B. Doyle Mitchell, Jr.
                                            ------------------------------------
                                               B. Doyle Mitchell, Jr., President

Dated:  October 6, 1997