Broadway Financial Corporation Announces Notification from Nasdaq Regarding Late Filing of Form 10-Q

Rhea-AI Summary

Broadway Financial Corporation (NASDAQ: BYFC), parent company of City First Bank, received a notification from Nasdaq on August 21, 2025, regarding non-compliance with Listing Rule 5250(c)(1) due to delayed filing of its Q2 2025 Form 10-Q.

The delay stems from the company needing additional time to evaluate participation agreements for compliance with Accounting Standards Codification Topic 860. Nasdaq has granted Broadway 60 calendar days to submit a compliance plan, with potential extension up to 180 days (February 16, 2026) if the plan is accepted.

While the notice has no immediate impact on Broadway's Nasdaq listing, the company aims to file the Form 10-Q before the 60-day compliance plan deadline.

Positive

• None.

Negative

• Failure to timely file Q2 2025 Form 10-Q with SEC
• Risk of potential delisting from Nasdaq if compliance is not achieved
• Accounting compliance issues requiring extended review period

Insights

Securities Regulation Expert

Broadway Financial faces Nasdaq compliance issues due to delayed Q2 filings, requiring a remediation plan within 60 days to maintain listing.

Broadway Financial Corporation has received a non-compliance notice from Nasdaq for failing to file its Q2 2025 Form 10-Q within the required timeframe. This notification triggers regulatory concerns, though no immediate delisting action will occur. The company has been given 60 calendar days (until approximately October 20) to submit a compliance plan, which if accepted, could extend their remediation period to February 16, 2026.

The filing delay stems from the company needing additional time to evaluate its participation agreements for compliance with Accounting Standards Codification Topic 860, which governs transfers and servicing of financial assets. This suggests potential accounting complexities or possible irregularities in how certain assets have been recorded on their balance sheet.

While management expresses confidence they'll file before the 60-day deadline for submitting their compliance plan, investors should recognize this situation represents elevated regulatory risk. When financial institutions delay filings to review accounting standards compliance, it sometimes indicates more significant underlying issues that could potentially lead to restatements or adjustments to financial results.

The language noting "there can be no assurances that further delays... will not have an impact on the listing or trading" serves as a subtle warning that prolonged non-compliance could indeed threaten Broadway's Nasdaq listing status. Loss of a major exchange listing would significantly impact liquidity and institutional ownership capabilities for this financial institution.

LOS ANGELES, Aug. 22, 2025 /PRNewswire/ -- Broadway Financial Corporation ("Broadway", "we", or the "Company") (NASDAQ: BYFC), parent company of City First Bank, National Association, announced today it received a letter from The Nasdaq Stock Market LLC ("Nasdaq"), dated August 21, 2025, informing the Company that it is not in compliance with Nasdaq Listing Rule 5250(c)(1) ("Rule 5250(c)(1)") for continued listing on The Nasdaq Capital Market because its Quarterly Report on Form 10-Q for the quarter ended June 30, 2025 (the "Form 10-Q") was not filed within the time period prescribed by the Securities and Exchange Commission ("SEC") rules. 

Nasdaq's notice has no immediate effect on the listing or trading of the Company's shares on The Nasdaq Capital Market, although there can be no assurances that further delays in the filing of the Form 10-Q or the Company's other SEC reports will not have an impact on the listing or trading of the Company's common stock.

As previously disclosed on the Company's Form 12b-25 filed with the SEC on August 15, 2025, the Company was unable to complete and timely file the Form 10-Q because it requires additional time to evaluate its participation agreements for compliance with Accounting Standards Codification Topic 860 and the impact to the consolidated financial statements.  As a result of this delay, the Company requires additional time to fully complete its review of the financial statements for the quarter ended June 30, 2025 for adequate disclosure of the information required to be included in the Form 10-Q. 

Nasdaq has provided the Company 60 calendar days from August 21, 2025, to submit a plan to regain compliance with Rule 5250(c)(1). If Nasdaq accepts the Company's plan, then Nasdaq may grant the Company up to 180 days from the prescribed due date, or until February 16, 2026, for filing the Form 10-Q to regain compliance.

The Company expects to file the Form 10-Q as promptly as reasonably practicable and prior to the 60-day deadline for submitting a compliance plan to Nasdaq.

About Broadway Financial Corporation

Broadway Financial Corporation conducts its operations through its wholly-owned banking subsidiary, City First Bank, National Association, which is a leading community-oriented bank in Southern California and in the Washington, D.C. market serving low-to-moderate income communities.  We offer a variety of residential and commercial real estate loan products for consumers, businesses, and non-profit organizations, other loan products, and a variety of deposit products, including checking, savings, and money market accounts, certificates of deposits, and retirement accounts.

Stockholders, analysts, and others seeking information about the Company are invited to write to: Broadway Financial Corporation, Investor Relations, 4601 Wilshire Boulevard, Suite 150, Los Angeles, CA 90010 or contact Investor Relations at the phone number or email address below.

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, including statements regarding the Company's beliefs and expectations relating to the submission of its plan to regain compliance with Rule 5250(c)(1) and the filing of the Form 10-Q. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual outcomes to differ materially from the outcomes expressed or implied by this press release. Such risks include, among others, Nasdaq rejecting the Company's plan to regain compliance or a material delay in the Company's financial reporting. All such factors are difficult to predict and may be beyond the Company's control. The Company undertakes no obligation and does not intend to update or revise any forward-looking statements contained herein, except as required by law or regulation. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.

Contacts

Investor Relations
Zack Ibrahim, Chief Financial Officer, (202) 243-7100
Investor.relations@cityfirstbroadway.com 

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SOURCE Broadway Financial Corporation

FAQ

Why did Broadway Financial (BYFC) receive a Nasdaq notification on August 21, 2025?

Broadway Financial received the notification because it failed to timely file its Q2 2025 Form 10-Q, violating Nasdaq Listing Rule 5250(c)(1) for continued listing requirements.

What deadline has Nasdaq given BYFC to resolve the compliance issue?

Nasdaq has given Broadway Financial 60 calendar days from August 21, 2025, to submit a compliance plan, with potential extension up to 180 days (until February 16, 2026) if the plan is accepted.

Will BYFC be immediately delisted from Nasdaq due to this notification?

No, the notification has no immediate effect on Broadway Financial's Nasdaq listing or stock trading, though continued delays could impact listing status.

What is causing the delay in BYFC's Form 10-Q filing?

The delay is due to Broadway Financial requiring additional time to evaluate its participation agreements for compliance with Accounting Standards Codification Topic 860 and its impact on consolidated financial statements.

When does Broadway Financial expect to file its delayed Q2 2025 Form 10-Q?

The company expects to file the Form 10-Q before the 60-day deadline for submitting the compliance plan to Nasdaq.