BYFC 8-K
Broadway Financial Corp De (BYFC)
8-K
2026-07-28
For: 2026-07-28
View Original
Added on
July 28, 2026
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 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): July 28, 2026
(Exact name of registrant as specified in its charter)
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(State or other jurisdiction of incorporation or organization)
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(Commission File Number)
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(I.R.S. Employer Identification Number)
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(Address of principal executive offices)
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(Zip Code)
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Registrant’s telephone number, including area code: (323 ) 634-1700
NOT
APPLICABLE
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following
provisions:
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Securities registered pursuant to Section 12(b) of the Act:
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Title of each class
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Trading Symbol(s)
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Name of each exchange on which registered
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Indicate by check mark whether the registrant is an emerging growth company in as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule
12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised
financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
| Item 2.02 |
Results of Operations and Financial Condition.
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On July 28, 2026, Broadway Financial Corporation (the “Company”) issued a press release announcing results for the quarter ended June 30, 2026. A copy of the press
release is attached as Exhibit 99.1.
| Item 7.01 |
Regulation FD Disclosure
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Attached as Exhibit 99.2 to this report is the presentation for the Company’s quarterly earnings, which also may be used in connection with potential meetings with investors and/or analysts.
The information set forth in this Current Report, including Exhibit 99.1 attached hereto, is being furnished and shall not be deemed “filed” for purposes of Section 18
of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of such section. The information in this Current Report, including Exhibits 99.1 attached hereto, shall not be incorporated by reference
into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing to this Current Report.
| Item 9.01 |
Financial Statements and Exhibits.
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(d)
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Exhibits
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Press Release dated July 28, 2026, announcing results for the quarter ended June 30, 2026.
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Presentation dated July 28, 2026.
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104
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The cover page from this Current Report on Form 8-K, formatted in Inline XBRL (included as Exhibit 101).
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2
SIGNATURE
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.
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Date: July 28, 2026
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BROADWAY FINANCIAL CORPORATION
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By:
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/s/ Zack Ibrahim
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Name: Zack Ibrahim
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Title: Chief Financial Officer
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3
Exhibit 99.1
News Release
FOR IMMEDIATE RELEASE
Broadway Financial Corporation Reports Second
Quarter 2026 Results Reflecting Strong Loan and Deposit Growth and
Enhanced Operating Performance
LOS ANGELES, CA – (BUSINESS WIRE) – July 28, 2026 – Broadway Financial Corporation (“Broadway”, “we”, or the “Company”) (NASDAQ: BYFC), parent company of City First
Bank, National Association (the “Bank”, and collectively, with the Company, “City First Broadway”), reported net income attributable to common stockholders of $218 thousand during the second quarter of 2026, compared to net income attributable to
common stockholders of $409 thousand for the first quarter of 2026, and net income attributable to common stockholders of $2 thousand for the second quarter of 2025. Diluted income per common share was $0.02 for the second quarter of 2026,
compared to $0.05 per diluted common share for the first quarter of 2026 and $0.00 for the second quarter of 2025.
The Company reported consolidated net income before preferred dividends1 of $968 thousand, or $0.11 per diluted common share, for the second quarter of 2026, compared to $1.2 million, or $0.13 per diluted common share, for the first quarter of 2026, and $752 thousand, or $0.09 per diluted common share, for the second quarter
of 2025.
For the first six months of 2026, the Company reported consolidated net income before preferred dividends of $2.1 million, or $0.24 per diluted common share, compared to consolidated net loss before preferred dividends of $1.9 million, or ($0.23) per diluted common share, for the first six months of 2025.
Net income attributable to common stockholders was $627 thousand during the first six months of 2026 after deducting preferred dividends of $1.5 million, compared to
net loss attributable to common stockholders of $3.4 million for the first six months of 2025 after deducting preferred dividends of $1.5 million. Diluted income per common share was $0.07 for the first six months of 2026, compared to ($0.39) per
diluted loss per common share for the first six months of 2025. Diluted income per common share for the first six months of 2026 reflects preferred dividends of $0.17 per diluted common share, compared to $0.18 per diluted common share for the
first six months of 2025.
Second Quarter Highlights
| • |
Net income before preferred dividends totaled $968 thousand, or $0.11 per diluted common share.
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| • |
Pre-provision net revenue1 increased 82.2%, or $1.4 million, to $3.0 million from $1.6 million in the prior quarter.
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| • |
Total loans increased $110.0 million, or 10.8%, during the first six months of 2026.
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| • |
Total deposits increased $197.0 million, or 21.5%, during the first six months of 2026.
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| • |
Credit quality remained stable with non-accrual loans to total loans at 0.98% and non-performing assets to total assets at 0.71%.
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Capital levels remained strong, with a Community Bank Leverage Ratio of 13.20%.
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Chief Executive Officer, Brian Argrett commented,
“Our second quarter results reflect continued progress in executing our growth strategy while maintaining a disciplined approach to credit, capital, and liquidity management. During the first six months of 2026, total loans increased $110.0
million, or 10.8%, and total deposits increased $197.0 million, or 21.5%, providing additional capacity to support our customers and communities. Operating performance continued to improve during the quarter, with pre-provision net revenue
increasing 82.2% to $3.0 million, reflecting the benefits of balance sheet growth and disciplined expense management.”
1 “Net income before preferred dividends”, “pre-provision net revenue”, and “efficiency ratio” are non-GAAP financial measures. A reconciliation of these
non-GAAP financial measures and the nearest GAAP measures is provided in the GAAP Reconciliation to Non-GAAP Financial Measures tables that accompany this document.
“The diversification and growth of our funding base supported strong loan growth while maintaining a solid liquidity position. Credit quality remains a key area of
focus for management. During the quarter, we established a specific reserve on a non-accrual loan, which increased provision expense. This action reflects our disciplined approach to risk management, while overall portfolio performance remained
stable and our capital position continues to provide significant capacity to absorb potential losses.”
“I would like to thank our employees, customers, stockholders, and community partners for their continued trust and support as we work to create long-term value for
all stakeholders.”
Quarterly Results of Operations
| • |
Net Interest Income totaled $9.5 million, representing an increase of $437 thousand, or 4.8%, from net interest income of $9.1 million for the first quarter of 2026. The increase resulted from a $1.6 million increase in interest income, primarily due to a $1.1 million increase in interest income on loans receivable as a result of an increase in the average balance
of loans receivable and a $597 thousand increase in interest income on available-for-sale securities due to an increase in the average balance of available-for-sale securities. These increases in net interest income were partially
offset by a $1.2 million increase in interest expense due to a $1.0 million increase in interest expense on deposits, as a result of an increase in the average deposits balance, and a $162 thousand increase in interest expense on
borrowings due to an increase in the average borrowing balance.
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The net interest margin decreased to 2.65% for the second quarter of 2026 from 2.75% for the first quarter of 2026, due to an
increase in the cost of funds, which increased to 3.02% for the second quarter of 2026 from 2.91% for the first quarter of 2026.
| • |
Provision for Credit Losses was $1.5 million for the three months ended June 30, 2026, compared to $200 thousand for the three months ended March 31,
2026. This increase was primarily due to the establishment of a specific reserve on a non-accrual loan, in addition to loan growth. Although a specific reserve was established during the quarter, broader portfolio metrics remained
relatively stable, with non-performing assets representing 0.71% of total assets and non-accrual loans at 0.98% of total loans.
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The allowance for credit losses (“ACL”) increased to $10.8 million as of June 30, 2026, compared to $9.4 million as of December 31, 2025.
| • |
Non-interest Income was $950 thousand for the second
quarter of 2026, compared to $589 thousand for the first quarter of 2026, representing an increase of $361 thousand, or 61.3%. The increase was due to a $450 thousand
loan fee related to the New Market Tax Credit allocation earned in the second quarter of 2026.
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| • |
Non-interest Expense was $7.5 million for the second
quarter of 2026, compared to $8.0 million for the first quarter of 2026, representing a decrease of $539 thousand, or 6.7%. The decrease was primarily due to a $633
thousand decrease in compensation and benefits expense and a $136 thousand decrease in information services expense, partially offset by a $213 thousand increase in loan expenses.
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Income Tax Expense was $330 thousand for the second quarter of 2026 compared to $282 thousand for the first quarter of 2026. The increase in tax expense reflected an increase of $56 thousand in pre-tax income between the two
periods. The effective tax rate was 22.25% for the second quarter of 2026, compared to 19.76% for the first quarter of 2026.
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Year-to-Date Results of Operations
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Net Interest Income totaled $18.5 million for the first six months of 2026, representing an increase of $2.7 million, or 17.4%, from net interest income of $15.8 million for the first six months of 2025. The
increase resulted from a $4.8 million increase in interest income, primarily due to a $3.4 million increase in interest income on available-for-sale securities, due to an
increase in the average rate and balance of available-for-sale securities, and a $1.7 million increase in interest income on loans receivable as a result of an increase in the average balance of loans receivable. Further, interest on
borrowings decreased $1.8 million due to decreases in the average rate and balance of borrowings. These increases in net interest income were partially offset by a $3.9 million increase in interest expense on deposits due to an increase
in the average deposit rate and balance.
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The net interest margin increased to 2.70% for the first six months of 2026 from 2.61% for the first six months of 2025, due to an
increase in the average rate earned on interest-earning assets, which increased to 4.95% for the first six months of 2026 from 4.82% for the first six months of 2025, and a decrease in the cost of funds, which decreased to 2.97% for the first six
months of 2026 from 3.07% for the first six months of 2025.
| • |
Provision for Credit Losses was $1.7 million for the first six months of 2026, compared to $1.5 million for the first six months of 2025.
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Non-interest Income was $1.5 million for the first six
months of 2026, compared to $643 thousand for the first six months of 2025, representing an increase of $896 thousand, or 139.3%. The increase was primarily due to $494 thousand of additional earnings on bank owned life insurance and a $450 thousand loan fee related to the New Market Tax Credit allocation earned in the first six months of 2026.
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| • |
Non-interest Expense was $15.5 million for the first six
months of 2026, compared to $17.7 million for the first six months of 2025, representing a decrease of $2.2 million, or 12.6%. The decrease was primarily due to a $1.9
million operational loss incurred in the first six months of 2025 as well as a $557 thousand decrease in compensation and benefits expense and a $331 thousand decrease in professional services expense. These decreases in non-interest
expenses were partially offset by an increase of $264 thousand in information services expenses and a $264 thousand increase in loan expenses.
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Income Tax Expense/Benefit was income tax expense of $612 thousand for the first six months of 2026 compared to income tax benefit of $790 thousand for the first six months of 2025. The increase in tax expense reflected an increase of $5.6
million in pre-tax income between the two periods. The effective tax rate was 21.03% for the first six months of 2026, compared to 28.87% for the first six months of 2025.
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Financial Condition Review
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Total Assets increased by $218.1 million at June 30, 2026,
compared to December 31, 2025, reflecting increases in net loans of $110.0 million, securities available-for-sale of $70.2 million and cash and cash equivalents of $38.4 million. The increase in net loans was due to loan growth and loan
purchases and the increase in securities available-for-sale was due to purchases of securities available-for-sale.
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Loans Held for Investment, Net of the ACL, increased by
$110.0 million to $1.1 billion at June 30, 2026, compared to $1.0 billion at December 31, 2025. The increase was due to loan purchases and growth.
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| • |
Deposits increased by $197.0 million, or 21.5%, to $1.1
billion at June 30, 2026, from $917.6 million at December 31, 2025. The increase in deposits was attributable to increases of $186.8 million in savings deposits, $50.2 million in certificates of deposit accounts, and $9.2 million in
Certificate of Deposit Registry Service (“CDARS”) deposits (CDARS deposits are similar to ICS deposits, but involve certificates of deposit, instead of money market accounts), partially offset by decreases of $42.9 million in liquid
deposits (demand, interest checking, and money market accounts) and $6.3 million in Insured Cash Sweep (“ICS”) deposits (ICS deposits are the Bank’s money market deposit
accounts in excess of FDIC insured limits whereby the Bank makes reciprocal arrangements for insurance with other banks). As of June 30, 2026, our uninsured
deposits, including deposits from City First Bank and other affiliates, represented 47% of our total deposits, compared to 41% as of December 31, 2025. We leverage our long-standing partnership with IntraFi Deposit Solutions to
offer deposit insurance for accounts exceeding the FDIC deposit insurance limit of $250,000.
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Total Borrowings increased $22.0 million to $94.0 million at June 30, 2026, from $72.0 million at December 31, 2025, due to additional FHLB advances.
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Asset Quality
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Allowance for Credit Losses was 0.95% of total loans held
for investment at June 30, 2026, compared to 0.92% at December 31, 2025.
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Nonperforming Assets remained at $11.2 million at June 30,
2026, unchanged from December 31, 2025.
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Capital
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Stockholders’ equity was $262.3 million, or 16.8% of the
Company’s total assets, at June 30, 2026, compared to $262.8 million, or 19.5% of the Company’s total assets, at December 31, 2025.
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| • |
Book Value per Share was $12.11 at June 30, 2026, compared to $12.28 at December 31, 2025. Capital ratios remain strong with a Community Bank Leverage Ratio of 13.20% at June 30, 2026 compared to
14.09% at December 31, 2025.
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About Broadway Financial Corporation
Broadway Financial Corporation operates through its wholly-owned banking subsidiary, City First Bank, National Association, which is
a leading mission-driven bank that serves low-to-moderate income communities within urban areas in Southern California and the Washington, D.C. market.
City First Bank offers a variety of commercial loan products, services, and depository accounts that support investments in
affordable housing, small businesses, and nonprofit community facilities located within low-to-moderate income neighborhoods. City First Bank is a Community Development Financial Institution, Minority Depository Institution, Certified B Corp, and
a member of the Global Alliance of Banking on Values. The Bank and the City First network of nonprofits, City First Enterprises, Homes By CFE, and City First Foundation, represent the City First branded family of
community development financial institutions, which offer a robust lending and deposit platform.
Contacts
Investor Relations
Zack Ibrahim, Chief Financial Officer, (202) 243-7100
Cautionary Statement Regarding Forward-Looking Information
This press release includes “forward-looking statements” within the meaning of the safe harbor provisions of the United States
Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts contained in this press release, including statements regarding our future results of operations or financial condition, business
strategy and plans and objectives of management for future operations and capital allocation and structure, are forward-looking statements. Forward‑looking statements typically include the words “expect,” “estimate,” “project,” “budget,”
“forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue,” “poised,” “optimistic,” “prospects,” “ability,” “looking,” “forward,” “invest,” “grow,” “improve,” “deliver” and
similar expressions, but the absence of such words or expressions does not mean a statement is not forward-looking. These forward‑looking statements are subject to risks and uncertainties, including those identified below, which could cause
actual future results to differ materially from historical results or from those anticipated or implied by such statements. The following factors, among others, could cause future results to differ materially from historical results or from
those indicated by forward‑looking statements included in this press release: (1) the level of demand for mortgage and commercial loans, which is affected by such external factors as general economic conditions, market interest rate levels, tax
laws, and the demographics of our lending markets; (2) the direction and magnitude of changes in interest rates and the relationship between market interest rates and the yield on our interest‑earning assets and the cost of our interest‑bearing
liabilities; (3) the rate and amount of credit losses incurred and projected to be incurred by us, increases in the amounts of our nonperforming assets, the level of our loss reserves and management’s judgments regarding the collectability of
loans; (4) changes in the regulation of lending and deposit operations or other regulatory actions, whether industry-wide or focused on our operations, including increases in capital requirements or directives to increase allowances for credit
losses or make other changes in our business operations; (5) legislative or regulatory changes, including those that may be implemented by the current administration in Washington, D.C. and the Federal Reserve Board; (6) possible adverse
rulings, judgments, settlements and other outcomes of litigation; (7) actions undertaken by both current and potential new competitors; (8) the possibility of adverse trends in property values or economic trends in the residential and
commercial real estate markets in which we compete; (9) the effect of changes in general economic conditions; (10) the effect of geopolitical uncertainties; (11) the impact of health crises on our future financial condition and operations; (12)
the impact of any volatility in the banking sector due to the failure of certain banks due to high levels of exposure to liquidity risk, interest rate risk, uninsured deposits and cryptocurrency risk; (13) the loss of our CDFI certification
could potentially limit our grant income awards; and (14) other risks and uncertainties. All such factors are difficult to predict and are beyond our control. Additional factors that could cause results to differ materially from those
described above can be found in our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K or other filings made with the SEC and are available on our website at http://www.cityfirstbank.com and on the SEC’s
website at http://www.sec.gov.
Forward-looking statements in this press release speak only as of the date they are made, and we undertake no obligation, and do
not intend, to update these forward-looking statements to reflect events or circumstances occurring after the date of this press release, except to the extent required by law. You are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date of this press release.
BROADWAY FINANCIAL CORPORATION
Consolidated Statements of Financial Condition
(In thousands, except share and per share amounts)
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June 30, 2026
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December 31, 2025
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(Unaudited)
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Assets:
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Cash and due from banks
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$
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2,135
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$
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1,676
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Interest-bearing deposits in other banks
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46,770
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8,831
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Cash and cash equivalents
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48,905
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10,507
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Securities available-for-sale, at fair value (amortized cost of $337,681 and $265,371)
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327,030
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256,835
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Loans receivable held for investment, net of allowance of $10,799 and $9,424
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1,126,539
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1,016,540
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Accrued interest receivable
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6,746
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5,999
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Federal Home Loan Bank (FHLB) stock
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5,464
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4,417
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Federal Reserve Bank (FRB) stock
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3,543
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3,543
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Office properties and equipment, net
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8,782
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8,732
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Bank owned life insurance
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24,179
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23,663
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Deferred tax assets, net
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7,312
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6,711
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Core deposit intangible, net
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1,308
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1,460
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Other assets
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3,891
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7,162
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Total assets
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$
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1,563,699
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$
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1,345,569
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Liabilities and equity
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Liabilities:
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Deposits
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$
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1,114,651
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$
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917,603
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Securities sold under agreements to repurchase
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81,928
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80,773
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Borrowings
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94,000
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72,000
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Accrued expenses and other liabilities
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10,639
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12,236
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Total liabilities
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1,301,218
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1,082,612
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Equity:
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Non-Cumulative Redeemable Perpetual Preferred stock, Series C; authorized 150,000 shares at
June 30, 2026 and December 31, 2025; issued and outstanding 150,000 shares at June 30, 2026 and December 31, 2025; liquidation value $1,000 per share
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150,000
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150,000
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Common stock, Class A, $0.01 par value, voting; authorized 75,000,000 shares at June 30, 2026
and December 31, 2025; issued 6,502,886 shares at June 30, 2026 and 6,409,760 shares at December 31, 2025; outstanding 6,175,658 shares at June 30, 2026 and 6,082,532 shares at December 31, 2025
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65
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64
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Common stock, Class B, $0.01 par value, non-voting; authorized 15,000,000 shares at June 30,
2026 and December 31, 2025; issued and outstanding 1,425,404 shares at June 30, 2026 and December 31, 2025
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14
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14
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Common stock, Class C, $0.01 par value, non-voting; authorized 25,000,000 shares at June 30,
2026 and December 31, 2025; issued and outstanding 1,672,562 at June 30, 2026 and December 31, 2025
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17
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17
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Additional paid-in capital
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143,494
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143,194
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Accumulated deficit
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(14,611
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)
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(15,238
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)
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Unearned Employee Stock Ownership Plan (ESOP) shares
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(3,743
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)
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(3,869
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)
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Accumulated other comprehensive loss, net of tax
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(7,606
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)
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(6,105
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)
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Treasury stock-at cost, 327,228 shares at June 30, 2026 and at December 31, 2025
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(5,326
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)
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(5,326
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)
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Total Broadway Financial Corporation and Subsidiary equity
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262,304
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262,751
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Non-controlling interest
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177
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206
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Total liabilities and equity
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$ |
1,563,699 |
$ |
1,345,569 |
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The following table sets forth the consolidated statements of operations for the three and six months ended June 30, 2026 and 2025.
BROADWAY FINANCIAL CORPORATION
Consolidated Statements of Operations
(In thousands, except share and per share amounts)
(Unaudited)
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Three Months Ended
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Six Months Ended
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June 30,
2026
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March 31,
2026
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June 30,
2025
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June 30,
2026
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June 30,
2025
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Interest income:
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Interest and fees on loans receivable
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$
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14,353
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$
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13,287
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$
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12,825
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$
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27,640
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$
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25,942
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Interest on available-for-sale securities
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3,210
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2,613
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1,171
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5,823
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2,379
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|||||||||||||||
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Other interest income
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240
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309
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401
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549
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877
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Total interest income
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17,803
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16,209
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14,397
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34,012
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29,198
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Interest expense:
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||||||||||||||||||||
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Interest on deposits
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6,985
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5,990
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4,879
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12,975
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9,078
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|||||||||||||||
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Interest on borrowings
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1,328
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1,166
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1,763
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2,494
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4,320
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|||||||||||||||
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Total interest expense
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8,313
|
7,156
|
6,642
|
15,469
|
13,398
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|||||||||||||||
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Net interest income
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9,490
|
9,053
|
7,755
|
18,543
|
15,800
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|||||||||||||||
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Provision for (recapture of) credit losses
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1,481
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200
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(454
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)
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1,681
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1,460
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||||||||||||||
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Net interest income after provision for (recapture of) credit losses
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8,009
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8,853
|
8,209
|
16,862
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14,340
|
|||||||||||||||
|
Non-interest income:
|
||||||||||||||||||||
|
Service charges
|
44
|
44
|
41
|
88
|
84
|
|||||||||||||||
|
Grants
|
23
|
107
|
105
|
130
|
130
|
|||||||||||||||
|
Earnings on bank owned life insurance
|
261
|
255
|
11
|
516
|
22
|
|||||||||||||||
|
Management fees
|
475
|
14
|
37
|
489
|
87
|
|||||||||||||||
|
Other
|
147
|
169
|
161
|
316
|
320
|
|||||||||||||||
|
Total non-interest income
|
950
|
589
|
355
|
1,539
|
643
|
|||||||||||||||
|
Non-interest expense:
|
||||||||||||||||||||
|
Compensation and benefits
|
4,253
|
4,886
|
4,412
|
9,139
|
9,696
|
|||||||||||||||
|
Occupancy expense
|
458
|
508
|
485
|
966
|
1,025
|
|||||||||||||||
|
Information services
|
804
|
940
|
774
|
1,744
|
1,480
|
|||||||||||||||
|
Professional services
|
571
|
586
|
788
|
1,157
|
1,488
|
|||||||||||||||
|
Advertising and promotional expense
|
56
|
124
|
61
|
180
|
107
|
|||||||||||||||
|
Supervisory costs
|
179
|
185
|
156
|
364
|
349
|
|||||||||||||||
|
Corporate insurance
|
56
|
55
|
66
|
111
|
133
|
|||||||||||||||
|
Amortization of core deposit intangible
|
76
|
76
|
79
|
152
|
158
|
|||||||||||||||
|
Operational loss
|
-
|
-
|
-
|
-
|
1,943
|
|||||||||||||||
|
Other
|
1,023
|
655
|
701
|
1,678
|
1,340
|
|||||||||||||||
|
Total non-interest expense
|
7,476
|
8,015
|
7,522
|
15,491
|
17,719
|
|||||||||||||||
|
Income (loss) before income taxes
|
1,483
|
1,427
|
1,042
|
2,910
|
(2,736
|
)
|
||||||||||||||
|
Income tax expense (benefit)
|
330
|
282
|
296
|
612
|
(790
|
)
|
||||||||||||||
|
Net income (loss)
|
1,153
|
1,145
|
746
|
2,298
|
(1,946
|
)
|
||||||||||||||
|
Less: Net income (loss) attributable to non-controlling interest
|
185
|
(14
|
)
|
(6
|
)
|
171
|
(9
|
)
|
||||||||||||
|
Net income (loss) attributable to Broadway Financial Corporation
|
968
|
1,159
|
752
|
2,127
|
(1,937
|
)
|
||||||||||||||
|
Less: Preferred stock dividends
|
750
|
750
|
750
|
1,500
|
1,500
|
|||||||||||||||
|
Net income (loss) attributable to common stockholders
|
$
|
218
|
$
|
409
|
$
|
2
|
$
|
627
|
$
|
(3,437
|
)
|
|||||||||
|
Earnings (loss) per common share-basic
|
$
|
0.02
|
$
|
0.05
|
$
|
0.00
|
$
|
0.07
|
$
|
(0.39
|
)
|
|||||||||
|
Earnings (loss) per common share-diluted
|
$
|
0.02
|
$
|
0.05
|
$
|
0.00
|
$
|
0.07
|
$
|
(0.39
|
)
|
|||||||||
The following tables set forth the average balances, average yields and costs for the periods indicated. All average balances are daily average balances. The yields set forth below include the effect of
deferred loan fees, and discounts and premiums that are amortized or accreted to interest income or expense.
BROADWAY FINANCIAL CORPORATION
Consolidated Averages, Interest Yields and Rates (Unaudited)
(In thousands, except share and per share amounts)
|
Three Months Ended
|
Three Months Ended
|
Three Months Ended
|
||||||||||||||||||||||||||||||||||
|
30-Jun-26
|
31-Mar-26
|
30-Jun-25
|
||||||||||||||||||||||||||||||||||
|
Assets
|
||||||||||||||||||||||||||||||||||||
|
Interest-earning assets:
|
||||||||||||||||||||||||||||||||||||
|
Interest-bearing deposits
|
$ |
13,380
|
$ |
120
|
3.60
|
% |
$ |
22,560
|
$ |
201
|
3.61
|
% |
$ |
24,132
|
$ |
266
|
4.42
|
% |
||||||||||||||||||
|
Securities
|
312,186
|
3,210
|
4.12
|
% |
265,415
|
2,613
|
3.99
|
% |
182,351
|
1,171
|
2.58
|
% |
||||||||||||||||||||||||
|
Loans receivable (1)
|
1,101,866
|
14,353
|
5.22
|
% |
1,039,076
|
13,287
|
5.19
|
% |
989,861
|
12,825
|
5.20
|
% |
||||||||||||||||||||||||
|
FRB and FHLB stock (2)
|
7,530
|
120
|
6.39
|
% |
6,642
|
108
|
6.59
|
% |
7,473
|
135
|
7.25
|
% |
||||||||||||||||||||||||
|
Total interest-earning assets
|
1,434,962
|
$ |
17,803
|
4.98
|
% |
1,333,693
|
$ |
16,209
|
4.93
|
% |
1,203,817
|
$ |
14,397
|
4.80
|
% |
|||||||||||||||||||||
|
Non-interest-earning assets
|
42,246
|
42,377
|
48,563
|
|||||||||||||||||||||||||||||||||
|
Total assets
|
$ |
1,477,208
|
$ |
1,376,070
|
$ |
1,252,380
|
||||||||||||||||||||||||||||||
|
Liabilities and Stockholders’ Equity
|
||||||||||||||||||||||||||||||||||||
|
Interest-bearing liabilities:
|
||||||||||||||||||||||||||||||||||||
|
Money market deposits
|
$ |
175,103
|
$ |
942
|
2.16
|
% |
$ |
191,248
|
$ |
1,047
|
2.22
|
% |
$ |
133,930
|
$ |
336
|
1.01
|
% |
||||||||||||||||||
|
Savings deposits
|
244,794
|
2,213
|
3.63
|
% |
102,463
|
631
|
2.50
|
% |
46,762
|
61
|
0.52
|
% |
||||||||||||||||||||||||
|
Interest checking and other demand deposits
|
262,783
|
1,447
|
2.21
|
% |
264,446
|
1,619
|
2.48
|
% |
251,146
|
1,975
|
3.15
|
% |
||||||||||||||||||||||||
|
Certificate accounts
|
281,036
|
2,383
|
3.40
|
% |
313,330
|
2,693
|
3.49
|
% |
270,424
|
2,507
|
3.72
|
% |
||||||||||||||||||||||||
|
Total deposits
|
963,716
|
6,985
|
2.91
|
% |
871,487
|
5,990
|
2.79
|
% |
702,262
|
4,879
|
2.79
|
% |
||||||||||||||||||||||||
|
FHLB Borrowings
|
62,884
|
614
|
3.92
|
% |
44,072
|
421
|
3.87
|
% |
94,795
|
1,126
|
4.76
|
% |
||||||||||||||||||||||||
|
Other borrowings
|
77,553
|
714
|
3.69
|
% |
82,359
|
745
|
3.67
|
% |
69,721
|
637
|
3.66
|
% |
||||||||||||||||||||||||
|
Total borrowings
|
140,437
|
1,328
|
3.79
|
% |
126,431
|
1,166
|
3.74
|
% |
164,516
|
1,763
|
4.30
|
% |
||||||||||||||||||||||||
|
Total interest-bearing liabilities
|
1,104,153
|
$ |
8,313
|
3.02
|
% |
997,918
|
$ |
7,156
|
2.91
|
% |
866,778
|
$ |
6,642
|
3.07
|
% |
|||||||||||||||||||||
|
Non-interest-bearing liabilities
|
109,709
|
113,688
|
101,461
|
|||||||||||||||||||||||||||||||||
|
Stockholders’ equity
|
263,346
|
264,464
|
284,141
|
|||||||||||||||||||||||||||||||||
|
Total liabilities and stockholders’ equity
|
$ |
1,477,208
|
$ |
1,376,070
|
$ |
1,252,380
|
||||||||||||||||||||||||||||||
|
Net interest rate spread (3)
|
$ |
9,490
|
1.96
|
% |
$ |
9,053
|
2.02
|
% |
$ |
7,755
|
1.72
|
% |
||||||||||||||||||||||||
|
Net interest rate margin (4)
|
2.65
|
% |
2.75
|
% |
2.58
|
% |
||||||||||||||||||||||||||||||
|
Ratio of interest-earning assets to interest-bearing liabilities
|
129.96
|
% |
133.65
|
% |
138.88
|
% |
||||||||||||||||||||||||||||||
| (1) |
Amount includes non-accrual loans.
|
| (2) |
FHLB is Federal Home Loan Bank.
|
| (3) |
Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.
|
| (4) |
Net interest rate margin represents net interest income as a percentage of average interest-earning assets.
|
|
For the Six Months Ended
|
||||||||||||||||||||||||
|
June 30, 2026
|
June 30, 2025
|
|||||||||||||||||||||||
| (Dollars in thousands) (Unaudited) |
||||||||||||||||||||||||
|
Average
Balance
|
Interest |
Average
Yield
|
Average
Balance
|
Interest |
Average
Yield
|
|||||||||||||||||||
|
Assets
|
||||||||||||||||||||||||
|
Interest-earning assets:
|
||||||||||||||||||||||||
|
Interest-earning deposits
|
$ |
17,945
|
$ |
321
|
3.61
|
% |
$ |
26,532
|
$ |
578
|
4.39
|
% | ||||||||||||
|
Securities
|
288,930
|
5,823
|
4.06
|
% |
189,368
|
2,379
|
2.53
|
% | ||||||||||||||||
|
Loans receivable (1)
|
1,070,644
|
27,640
|
5.21
|
% |
996,757
|
25,942
|
5.25
|
% | ||||||||||||||||
|
FRB and FHLB stock (2)
|
7,089
|
228
|
6.49
|
% |
9,320
|
299
|
6.47
|
% | ||||||||||||||||
|
Total interest-earning assets
|
1,384,608
|
$ |
34,012
|
4.95
|
% |
1,221,977
|
$ |
29,198
|
4.82
|
% | ||||||||||||||
|
Non-interest-earning assets
|
42,310
|
49,364
|
||||||||||||||||||||||
|
Total assets
|
$ |
1,426,918
|
$ |
1,271,341
|
||||||||||||||||||||
|
Liabilities and Equity
|
||||||||||||||||||||||||
|
Interest-bearing liabilities:
|
||||||||||||||||||||||||
|
Money market deposits
|
$ |
183,131
|
$ |
1,989 |
2.19
|
% |
$ |
126,557
|
$ |
593 |
0.94 |
% | ||||||||||||
|
Savings deposits
|
174,022 |
2,844
|
3.30
|
% | 47,732 |
129 |
0.54 |
% | ||||||||||||||||
|
Interest checking and other demand deposits
|
263,610 |
3,066 |
2.35
|
% | 253,384 |
3,886 |
3.09 |
% | ||||||||||||||||
|
Certificate accounts
|
297,093 |
5,076 |
3.45
|
% |
247,498
|
4,470 |
3.64 |
% | ||||||||||||||||
|
Total deposits
|
917,856
|
12,975 |
2.85
|
% | 675,171 |
9,078 |
2.71
|
% | ||||||||||||||||
|
FHLB Borrowings
|
53,531 |
1,035 |
3.90
|
% | 137,406 |
3,082 |
4.52 |
% | ||||||||||||||||
|
Other borrowings
|
79,942 |
1,459 |
3.68
|
% | 68,453 |
1,238 |
3.65
|
% | ||||||||||||||||
|
Total borrowings
|
133,473
|
2,494
|
3.77
|
% | 205,859 |
4,320 |
4.23 |
% | ||||||||||||||||
|
Total interest-bearing liabilities
|
1,051,329
|
$ |
15,469
|
2.97
|
% | 881,030 |
$ |
13,398 |
3.07 |
% | ||||||||||||||
|
Non-interest-bearing liabilities
|
111,687 |
105,028 |
||||||||||||||||||||||
|
Equity
|
263,902
|
285,283 |
||||||||||||||||||||||
|
Total liabilities and equity
|
$ |
1,426,918
|
$ |
1,271,341 |
||||||||||||||||||||
|
Net interest rate spread (3)
|
$ |
18,543
|
1.99
|
% | $ |
15,800 |
1.75 |
% | ||||||||||||||||
|
Net interest rate margin (4)
|
2.70
|
% | 2.61 |
% | ||||||||||||||||||||
|
Ratio of interest-earning assets to interest-bearing liabilities
|
131.70
|
% | 138.70 |
% | ||||||||||||||||||||
| (1) |
Amount includes non-accrual loans.
|
| (2) |
FHLB is Federal Home Loan Bank.
|
| (3) |
Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.
|
| (4) |
Net interest rate margin represents net interest income as a percentage of average interest-earning assets.
|
The following table sets forth selected financial data and ratios for the quarters and six months noted below.
BROADWAY FINANCIAL CORPORATION
Selected Financial Data and Ratios (Unaudited)
(Dollars in thousands, except per share data)
|
Three Months Ended
|
Six Months Ended
|
|||||||||||||||||||||||||||
|
June 30,
2026
|
March 31,
2026
|
December 31,
2025
|
September 30,
2025
|
June 30,
2025
|
June 30,
2026
|
June 30,
2025
|
||||||||||||||||||||||
|
Balance Sheets at Period Ended:
|
||||||||||||||||||||||||||||
|
Total gross loans
|
$
|
1,137,338
|
$
|
1,068,771
|
$
|
1,025,964
|
$
|
1,023,483
|
$
|
986,944
|
$
|
1,137,338
|
$
|
986,944
|
||||||||||||||
|
Allowance for credit losses
|
10,799
|
9,509
|
9,424
|
10,339
|
9,880
|
10,799
|
9,880
|
|||||||||||||||||||||
|
Investment securities
|
327,030
|
284,103
|
256,835
|
244,005
|
177,977
|
327,030
|
177,977
|
|||||||||||||||||||||
|
Total assets
|
1,563,699
|
1,426,065
|
1,345,569
|
1,335,565
|
1,247,517
|
1,563,699
|
1,247,517
|
|||||||||||||||||||||
|
Total deposits
|
1,114,651
|
1,073,056
|
917,603
|
849,205
|
798,922
|
1,114,651
|
798,922
|
|||||||||||||||||||||
|
Total shareholders’ equity
|
262,304
|
262,480
|
262,751
|
261,687
|
284,679
|
262,304
|
284,679
|
|||||||||||||||||||||
|
Profitability for Period Ended:
|
||||||||||||||||||||||||||||
|
Interest income
|
$
|
17,803
|
$
|
16,209
|
$
|
16,293
|
$
|
15,791
|
$
|
14,397
|
$
|
34,012
|
$
|
29,198
|
||||||||||||||
|
Interest expense
|
8,313
|
7,156
|
7,563
|
7,174
|
6,642
|
15,469
|
13,398
|
|||||||||||||||||||||
|
Net interest income
|
9,490
|
9,053
|
8,730
|
8,617
|
7,755
|
18,543
|
15,800
|
|||||||||||||||||||||
|
Provision for (recapture of) credit losses
|
1,481
|
200
|
47
|
679
|
(454
|
)
|
1,681
|
1,460
|
||||||||||||||||||||
|
Non-interest income
|
950
|
589
|
687
|
422
|
355
|
1,539
|
643
|
|||||||||||||||||||||
|
Non-interest expenses
|
7,476
|
8,015
|
7,946
|
31,518
|
7,522
|
15,491
|
17,719
|
|||||||||||||||||||||
|
Income (loss) before income taxes
|
1,483
|
1,427
|
1,424
|
(23,158
|
)
|
1,042
|
2,910
|
(2,736
|
)
|
|||||||||||||||||||
|
Income tax expense (benefit)
|
330
|
282
|
392
|
736
|
296
|
612
|
(790
|
)
|
||||||||||||||||||||
|
Net income (loss)
|
1,153
|
1,145
|
1,032
|
(23,894
|
)
|
746
|
2,298
|
(1,946
|
)
|
|||||||||||||||||||
|
Less: Net income (loss) attributable to non-
controlling interest
|
185
|
(14
|
)
|
7
|
(11
|
)
|
(6
|
)
|
171
|
(9
|
)
|
|||||||||||||||||
|
Net income (loss) attributable to Broadway
Financial Corporation
|
968
|
1,159
|
1,025
|
(23,883
|
)
|
752
|
2,127
|
(1,937
|
)
|
|||||||||||||||||||
|
Less: Preferred stock dividends
|
750
|
750
|
750
|
750
|
750
|
1,500
|
1,500
|
|||||||||||||||||||||
|
Net income (loss) attributable to common
stockholders
|
$
|
218
|
$
|
409
|
$
|
275
|
$
|
(24,633
|
)
|
$
|
2
|
$
|
627
|
$
|
(3,437
|
)
|
||||||||||||
|
Financial Performance:
|
||||||||||||||||||||||||||||
|
Return (loss) on average assets (annualized)
|
0.06
|
%
|
0.12
|
%
|
0.08
|
%
|
(7.48
|
)%
|
0.00
|
%
|
0.09
|
%
|
(0.49
|
)%
|
||||||||||||||
|
Return (loss) on average equity (annualized)
|
0.34
|
%
|
0.63
|
%
|
0.41
|
%
|
(34.12
|
)%
|
0.00
|
%
|
0.48
|
%
|
(2.43
|
)%
|
||||||||||||||
|
Net interest margin
|
2.65
|
%
|
2.75
|
%
|
2.62
|
%
|
2.72
|
%
|
2.58
|
%
|
2.70
|
%
|
2.61
|
%
|
||||||||||||||
|
Efficiency ratio1
|
71.61
|
%
|
83.13
|
%
|
84.38
|
%
|
348.69
|
%
|
92.75
|
%
|
77.14
|
%
|
107.76
|
%
|
||||||||||||||
|
Per Share Data:
|
||||||||||||||||||||||||||||
|
Book value per share
|
$
|
12.11
|
$
|
12.10
|
$
|
12.28
|
$
|
12.17
|
$
|
14.65
|
$
|
12.11
|
$
|
14.65
|
||||||||||||||
|
Weighted average common shares (basic)
|
8,679,800
|
8,597,291
|
8,639,459
|
8,617,707
|
8,622,891
|
8,636,143
|
8,557,745
|
|||||||||||||||||||||
|
Weighted average common shares (diluted)
|
8,874,673
|
8,816,188
|
8,639,459
|
8,617,707
|
8,808,467
|
8,845,593
|
8,557,745
|
|||||||||||||||||||||
|
Common shares outstanding at end of period
|
9,273,624
|
9,298,949
|
9,180,498
|
9,180,760
|
9,195,909
|
9,273,624
|
9,195,909
|
|||||||||||||||||||||
|
Financial Measures:
|
||||||||||||||||||||||||||||
|
Loans to assets
|
72.73
|
%
|
74.95
|
%
|
76.25
|
%
|
76.63
|
%
|
79.11
|
%
|
72.73
|
%
|
79.11
|
%
|
||||||||||||||
|
Loans to deposits
|
102.04
|
%
|
99.60
|
%
|
111.81
|
%
|
120.52
|
%
|
123.53
|
%
|
102.04
|
%
|
123.53
|
%
|
||||||||||||||
|
Allowance for credit losses to total loans
|
0.95
|
%
|
0.89
|
%
|
0.92
|
%
|
1.01
|
%
|
1.00
|
%
|
0.95
|
%
|
1.00
|
%
|
||||||||||||||
|
Allowance for credit losses to total non-
accrual loans
|
96.74
|
%
|
82.97
|
%
|
84.38
|
%
|
76.36
|
%
|
182.02
|
%
|
96.74
|
%
|
182.02
|
%
|
||||||||||||||
|
Non-accrual loans to total loans
|
0.98
|
%
|
1.07
|
%
|
1.09
|
%
|
1.32
|
%
|
0.55
|
%
|
0.98
|
%
|
0.55
|
%
|
||||||||||||||
|
Non-performing assets to total assets
|
0.71
|
%
|
0.80
|
%
|
0.83
|
%
|
1.01
|
%
|
0.44
|
%
|
0.71
|
%
|
0.44
|
%
|
||||||||||||||
|
Net charge-offs (recoveries) to average total
loans
|
0.03
|
%
|
-
|
0.11
|
%
|
-
|
-
|
0.03
|
%
|
-
|
||||||||||||||||||
|
Average Balance Sheets:
|
||||||||||||||||||||||||||||
|
Total loans
|
$
|
1,101,866
|
$
|
1,039,076
|
$
|
1,050,757
|
$
|
993,090
|
$
|
989,861
|
$
|
1,070,644
|
$
|
996,757
|
||||||||||||||
|
Investment securities
|
312,186
|
265,415
|
246,662
|
206,224
|
182,351
|
288,930
|
189,368
|
|||||||||||||||||||||
|
Total assets
|
1,477,208
|
1,376,070
|
1,361,026
|
1,306,782
|
1,252,380
|
1,426,918
|
1,271,341
|
|||||||||||||||||||||
|
Total deposits
|
963,716
|
871,487
|
775,913
|
746,143
|
702,262
|
917,857
|
675,171
|
|||||||||||||||||||||
|
Total shareholders’ equity
|
263,346
|
264,464
|
263,266
|
286,458
|
284,141
|
263,902
|
285,283
|
|||||||||||||||||||||
In addition to results presented in accordance with U.S. generally accepted accounting principles (“GAAP”), management considers various non-GAAP measures when evaluating the performance of the business,
including diluted earnings per common share before dividends, pre-provision net revenue, efficiency ratio, and tangible book value. Management believes these non-GAAP measures provide useful supplemental information to investors because they
assist investors in understanding how management evaluates operating performance and makes day-to-day operating decisions.
The following table sets forth a GAAP to Non-GAAP reconciliation of financial measures for the quarters and six months noted below.
BROADWAY FINANCIAL CORPORATION AND SUBSIDIARY
GAAP Reconciliation to Non-GAAP Financial Measures (Unaudited)
(Dollars in thousands, except per share data)
|
Three Months Ended
|
Six Months
Ended
|
|||||||||||
|
June 30, 2026
|
March 31,
2026
|
June 30, 2026
|
||||||||||
|
Net income before preferred dividends and Earnings per common share - diluted before preferred dividends:
|
||||||||||||
|
Net income attributable to common shareholders
|
$
|
218
|
$
|
2
|
$
|
627
|
||||||
|
Add: Preferred stock dividends
|
750
|
750
|
1,500
|
|||||||||
|
Net income before preferred dividends
|
$
|
968
|
$
|
752
|
$
|
2,127
|
||||||
|
Weighted average common shares outstanding for diluted earnings per common share
|
8,874,673
|
8,808,467
|
8,845,593
|
|||||||||
|
Earnings per common share - diluted before preferred dividends
|
$
|
0.11
|
$
|
0.09
|
$
|
0.24
|
||||||
|
Pre-provision net revenue:
|
||||||||||||
|
Net interest income
|
$
|
9,490
|
$
|
9,053
|
$
|
18,543
|
||||||
|
Non-interest income
|
950
|
589
|
1,539
|
|||||||||
|
Less: Non-interest expense
|
7,476
|
|
8,015
|
|
15,491
|
|
||||||
|
Pre-provision net revenue
|
$
|
2,964
|
$
|
1,627
|
$
|
4,591
|
||||||
|
Efficiency ratio:
|
||||||||||||
|
Net interest income
|
$
|
9,490
|
$
|
9,053
|
$
|
18,543
|
||||||
|
Non-interest income
|
950
|
589
|
1,539
|
|||||||||
|
Operating revenue
|
10,440
|
9,642
|
20,082
|
|||||||||
|
Non-interest expense
|
$
|
7,476
|
$
|
8,015
|
$
|
15,491
|
||||||
|
Efficiency ratio
|
71.61
|
%
|
83.13
|
%
|
77.14
|
%
|
||||||
|
Common
Equity
|
Shares
|
Per Share
|
||||||||||
|
Capital
|
Outstanding
|
Amount
|
||||||||||
|
Tangible book value:
|
||||||||||||
|
June 30, 2026
|
||||||||||||
|
Common book value
|
$
|
112,304
|
9,273,624
|
$
|
12.11
|
|||||||
|
Less:
|
||||||||||||
|
Net unamortized core deposit intangible
|
1,308
|
|||||||||||
|
Tangible book value
|
$
|
110,996
|
9,273,624
|
$
|
11.97
|
|||||||
|
December 31, 2025
|
||||||||||||
|
Common book value
|
$
|
112,751
|
9,180,498
|
$
|
12.28
|
|||||||
|
Less:
|
||||||||||||
|
Net unamortized core deposit intangible
|
1,460
|
|||||||||||
|
Tangible book value
|
$
|
111,291
|
9,180,498
|
$
|
12.12
|
|||||||
Diluted earnings per common share before preferred dividends represents diluted earnings per share adjusted to exclude the impact of preferred stock dividends. Management considers this information useful to
investors because it provides additional perspective on the earnings available from the Company’s operating activities and facilitates comparisons across reporting periods.
Pre-provision net revenue is calculated by subtracting noninterest expenses from the sum of net interest income and noninterest income. Management considers this information useful to investors because it
provides supplemental information regarding the Company’s ability to generate earnings through its business activities before consideration of the provision for credit losses, which can vary significantly from period to period.
Efficiency ratio represents noninterest expense divided by the sum of net interest income and noninterest income, excluding certain non-core items, as applicable. Management considers this information useful
to investors as it provides supplemental information regarding the relationship between operating expenses and revenue generation.
The Company calculates tangible book value per common share by dividing tangible common equity by common shares outstanding. Tangible common equity is calculated as common shareholders’ equity less goodwill and
other intangible assets.
Management believes this measure is useful to investors as tangible equity is a measure that is consistent with the calculation of capital for bank regulatory purposes, which excludes intangible assets from the
calculation of risk based ratios, and provides a meaningful assessment of capital adequacy and facilitates comparisons with other financial institutions.
Exhibit 99.2
