Broadway Financial Corporation Announces Results of Operations for Second Quarter 2025

Rhea-AI Summary

Broadway Financial Corporation (NASDAQ: BYFC) reported Q2 2025 consolidated net income before preferred dividends of $603 thousand ($0.07 per diluted share), compared to $269 thousand ($0.03 per diluted share) in Q2 2024. After deducting preferred dividends, the company posted a net loss attributable to common stockholders of $147 thousand (($0.02) per diluted share).

Key highlights include: net interest margin increased by 22 basis points to 2.63%, total deposits grew by $53.5 million (7.2%) in H1 2025, and borrowings decreased by $126.3 million (64.6%) to $69.2 million. The bank maintains strong capital ratios with a Community Bank Leverage Ratio of 15.69% and solid credit quality with non-accrual loans to total loans at 0.42%.

Positive

• Net interest margin improved by 22 basis points to 2.63% in Q2 2025
• Total deposits increased by $53.5 million (7.2%) during H1 2025
• Strong capital position with Community Bank Leverage Ratio of 15.69%
• Significant reduction in borrowings by $126.3 million (64.6%)
• Strong credit quality with non-accrual loans at 0.42% of total loans

Negative

• Net loss attributable to common stockholders of $147 thousand in Q2 2025
• Net interest income decreased by $163 thousand (2.1%) year-over-year
• Non-interest expense increased by $242 thousand (3.3%) compared to Q2 2024
• Total assets decreased by $76.3 million compared to December 31, 2024
• Uninsured deposits increased to 35% of total deposits from 32% at year-end 2024

LOS ANGELES, July 31, 2025 /PRNewswire/ -- 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 consolidated net income before preferred dividends of $603 thousand, or $0.07 per diluted share, for the second quarter of 2025, compared to consolidated net income of $269 thousand, or $0.03 per diluted share, for the second quarter of 2024. Net loss attributable to common stockholders was $147 thousand during the second quarter of 2025 after deducting preferred dividends of $750 thousand, compared to net income attributable to common stockholders of $269 thousand for the second quarter of 2024.  Diluted loss per common share was ($0.02) for the second quarter of 2025, compared to $0.03 of income per diluted common share for the second quarter of 2024.  Diluted loss per common share for the second quarter of 2025 reflects preferred dividends of $0.09 per diluted common share.

For the first six months of 2025, the Company reported consolidated net loss before preferred dividends of $1.3 million, or ($0.15) per diluted share, compared to consolidated net income before preferred dividends of $105 thousand, or $0.01 per diluted share, for the first six months of 2024. Net loss attributable to common stockholders was $2.8 million during the first six months of 2025 after deducting preferred dividends of $1.5 million, compared to net income attributable to common stockholders of $105 thousand for the first six months of 2024.  Diluted loss per common share was ($0.32) for the first six months of 2025, compared to $0.01 per diluted common share for the first six months of 2024.  Diluted loss per common share for the first six months of 2025 reflects preferred dividends of $0.18 per diluted common share.

Second Quarter 2025 Highlights:

• The net interest margin increased by 22 basis points to 2.63% for the second quarter of 2025, compared to 2.41% for the second quarter of 2024. This increase was driven largely by growth in the yield on average loan balances and a reduction in the cost of interest-bearing liabilities
• Total deposits increased by $53.5 million, or 7.2%, during the first six months of 2025 compared to December 31, 2024
• Capital ratios remain strong with a Community Bank Leverage Ratio of 15.69% at June 30, 2025 compared to 13.96% at December 31, 2024
• Credit quality remains strong with non-accrual loans to total loans at 0.42% and non-performing loans to total assets at 0.36%
• Borrowings were $69.2 million at June 30, 2025 compared to $195.5 million at December 31, 2024, a reduction of $126.3 million, or 64.6%

Chief Executive Officer, Brian Argrett commented, "We had a favorable second quarter of 2025, and continue to build on this positive momentum.  Deposits grew by 2.9%, or $22.4 million, since March 31, 2025 and 7.18%, or $53.5 million, this year.  We reduced borrowings by $126.3 million to $69.2 million as of June 30, 2025 resulting in lower cost of funds.  The net interest margin was 2.63% for the three months ended June 30, 2025, which is an improvement of 22 basis points compared to the same three-month period of last year." 

"Our results for the second quarter of 2025 were positively impacted by a reduction in non-interest expense of 26.23%, or $2.7 million, since last quarter, mainly due to the operational loss associated with the $1.9 million fraudulent wire during the first quarter, which will result in a corresponding gain if recovered.  In addition, our second quarter financial results were positively impacted by a reduction in the provision for loan losses of $266 thousand, mainly due to a decrease in loans."

"We remain focused on executing our strategic goals and mission objectives, building a stronger balance sheet and improving profitability in order to drive long-term performance that will help support growth in the low-to-moderate income communities within our markets." 

"As always, I thank our employees for their endless dedication and our stockholders, depositors, and board for their continued support of our strategy and mission.  Your support and efforts are essential in our ability to improve our efficiency and promote growth."

Income Statement

• Net Interest Income before provision for credit losses for the second quarter of 2025 totaled $7.8 million, representing a decrease of $163 thousand, or 2.1%, from net interest income before provision for credit losses of $7.9 million for the second quarter of 2024. The decrease resulted from a $1.3 million decrease in interest income, primarily due to a decrease in interest on interest-bearing deposits, as a result of a decrease in the average balance of interest-bearing deposits, as well as a decline in interest income on available-for-sale securities due to a decrease in the average balance of available-for-sale securities. These decreases were partially offset by a $1.1 million decrease in interest expense due to a decline in interest on borrowings as a result of a decrease in the average balance of borrowings. The Company reduced borrowings to improve the net interest margin and to support capacity for future loan growth.
  
  The net interest margin increased to 2.63% for the second quarter of 2025 from 2.41% for the second quarter of 2024, due to an increase in the average rate earned on interest-earning assets, which increased to 4.83% for the second quarter of 2025 from 4.71% for the second quarter of 2024, and a decrease in the cost of funds, which decreased to 3.07% for the second quarter of 2025 from 3.19% for the second quarter of 2024.
  
  Net Interest Income before provision for credit losses for the first six months of 2025 totaled $15.8 million, representing an increase of $358 thousand, or 2.3%, from net interest income before provision for credit losses of $15.4 million for the first six months of 2024. The increase resulted from a $2.0 million decrease in interest expense due to a decline in interest on borrowings as a result of a decrease in the average balance of borrowings. The Company reduced borrowings to improve the net interest margin and to support capacity for future loan growth. This increase was partially offset by a $1.7 million decrease in interest income, primarily due to a decrease in interest on interest-bearing deposits, as a result of a decrease in the average balance of interest-bearing deposits, as well as a decline in interest income on available-for-sale securities due to a decrease in the average balance of available-for-sale securities.
  
  The net interest margin increased to 2.67% for the first six months of 2025 from 2.34% for the first six months of 2024, due to an increase in the average rate earned on interest-earnings assets, which increased to 4.83% for the first six months of 2025 from 4.59% for the first six months of 2024, and a decrease in the cost of funds, which decreased to 3.02% for the first six months of 2025 from 3.11% for the first six months of 2024.
  
  
• Recapture of/Provision for Credit Losses resulted in a recapture of credit losses of $266 thousand for the three months ended June 30, 2025, compared to a provision for credit losses of $494 thousand for the three months ended June 30, 2024. This recapture was mainly due to the decrease in loans.
  
  The Provision for Credit Losses was $423 thousand for the six months ended June 30, 2025, compared to $754 thousand for the six months ended June 30, 2024. There were no loan charge-offs recorded during the six months ended June 30, 2025 or 2024.
  
  The allowance for credit losses ("ACL") increased to $8.6 million as of June 30, 2025, compared to $8.1 million as of December 31, 2024. The Bank had four non-accrual loans at June 30, 2025 with an unpaid principal balance of $4.0 million. Credit quality remains strong with non-accrual loans as a percentage of total loans at 0.42% and non-performing assets to total assets of 0.36% despite the increase in non-accrual loans.
  
  
• Non-interest Expense was $7.5 million for the second quarter of 2025, compared to $7.3 million for the second quarter of 2024, representing an increase of $242 thousand, or 3.3%. The increase was primarily due to increases of $224 thousand in professional services and $112 thousand in information services, partially offset by a $60 thousand decrease in supervisory costs and a $57 thousand decrease in compensation and benefits expense.
  
  Non-interest Expense was $17.7 million for the first six months of 2025, compared to $15.1 million for the first six months of 2024, representing an increase of $2.6 million, or 17.4%. The increase was primarily due to a $1.9 million loss incurred from wire fraud, which will result in a gain if recovered, as well as an $830 thousand increase in compensation and benefits expense. The increase in compensation and benefits expense was primarily attributable to the addition of full-time employees during 2024 in various production and administrative positions as part of the Bank's efforts to expand its operational capabilities to grow its balance sheet. These increases were partially offset by a $485 thousand decrease in professional services expense.
  
  
• Income Tax Expense was $257 thousand for the second quarter of 2025 compared to $146 thousand for the second quarter of 2024. The increase in tax expense reflected an increase of $437 thousand in pre-tax income between the two periods. The effective tax rate was 30.09% for the second quarter of 2025, compared to 35.01% for the second quarter of 2024.
  
  The Company recorded an income tax benefit of $435 thousand for the first six months of 2025 and income tax expense of $89 thousand for the first six months of 2024. The decrease in tax expense reflected a decrease of $1.9 million in pre-tax income between the two periods. The effective tax rate was 25.60% for the first six months of 2025, compared to 50.28% for the first six months of 2024.

Balance Sheet

• Total Assets decreased by $76.3 million at June 30, 2025, compared to December 31, 2024, reflecting decreases in cash and cash equivalents of $31.9 million, securities available-for-sale of $25.9 million, net loans of $11.6 million and FHLB stock of $5.9 million. The reduction in securities available-for-sale was mainly due to maturities and paydowns, and the cash from the securities in addition to the cash on hand was used to reduce borrowings, leading to the decrease in stock held with FHLB.
  
  
• Loans Held for Investment, Net of the ACL, decreased by $11.6 million to $957.3 million at June 30, 2025, compared to $968.9 million at December 31, 2024. The decrease was primarily due to loan payoffs and repayments.
  
  
• Deposits increased by $53.5 million, or 7.2%, to $798.9 million at June 30, 2025, from $745.4 million at December 31, 2024. The increase in deposits was attributable to an increase of $67.7 million in certificates of deposit accounts, partially offset by decreases of $4.5 million in savings deposits, $3.5 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), $3.3 million in liquid deposits (demand, interest checking, and money market accounts), and $2.9 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, 2025, our uninsured deposits, including deposits from City First Bank and other affiliates, represented 35% of our total deposits, compared to 32% as of December 31, 2024. 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.
  
  
• Total Borrowings decreased by $129.1 million to $133.0 million at June 30, 2025, from $262.1 million at December 31, 2024, primarily due to a $135.3 million decrease in FHLB advances, partially offset by a $9.2 million increase in secured borrowings related to participation loans.

Asset Quality

• Allowance for Credit Losses was 0.89% of total loans held for investment at June 30, 2025, compared to 0.83% at December 31, 2024.
  
  
• Nonperforming Assets were $4.4 million at June 30, 2025, compared to $264 thousand at December 31, 2024.

Capital

• Stockholders' equity was $285.5 million, or 23.3% of the Company's total assets, at June 30, 2025, compared to $285.2 million, or 21.9% of the Company's total assets, at December 31, 2024.
  
  
• Book Value per Share was $14.74 at June 30, 2025, compared to $14.82 at December 31, 2024. Capital ratios remain strong with a Community Bank Leverage Ratio of 15.69% at June 30, 2025 compared to 13.96% at December 31,2024.

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 real estate 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
Investor.relations@cityfirstbroadway.com 

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 loan 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 loan 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; and (13) 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.

The following table sets forth the consolidated statements of financial condition as of June 30, 2025 and December 31, 2024.

BROADWAY FINANCIAL CORPORATION
Consolidated Statements of Financial Condition
(In thousands, except share and per share amounts)
	June 30, 2025	December 31, 2024
	(Unaudited)
Assets:
Cash and due from banks	$                       1,955	$                      2,255
Interest-bearing deposits in other banks	27,559	59,110
Cash and cash equivalents	29,514	61,365
Securities available-for-sale, at fair value (amortized cost of $190,030 and $219,658)	177,977	203,862
Loans receivable held for investment, net of allowance of $8,582 and $8,103	957,293	968,861
Accrued interest receivable	5,109	5,001
Federal Home Loan Bank (FHLB) stock	3,761	9,637
Federal Reserve Bank (FRB) stock	3,543	3,543
Office properties and equipment, net	8,721	8,899
Bank owned life insurance	3,343	3,321
Deferred tax assets, net	8,268	8,803
Core deposit intangible, net	1,618	1,775
Goodwill	25,858	25,858
Other assets	2,387	2,786
Total assets	$             1,227,392	$             1,303,711
Liabilities and stockholders' equity
Liabilities:
Deposits	$                   798,922	$                  745,399
Securities sold under agreements to repurchase	63,786	66,610
Borrowings	69,217	195,532
Accrued expenses and other liabilities	9,712	10,794
Total liabilities	941,637	1,018,335
Stockholders' equity:
Non-Cumulative Redeemable Perpetual Preferred stock, Series C; authorized 150,000 shares at June 30, 2025 and December 31, 2024; issued and outstanding 150,000 shares at June 30, 2025 and December 31, 2024; liquidation value $1,000 per share	150,000	150,000
Common stock, Class A, $0.01 par value, voting; authorized 75,000,000 shares at June 30, 2025 and December 31, 2024; issued 6,425,001 shares at June 30, 2025 and 6,349,455 shares at December 31, 2024; outstanding 6,097,773 shares at June 30, 2025 and 6,022,227 shares at December 31, 2024	64	63
Common stock, Class B, $0.01 par value, non-voting; authorized 15,000,000 shares at June 30, 2025 and December 31, 2024; issued and outstanding 1,425,574 shares at June 30, 2025 and December 31, 2024	14	14
Common stock, Class C, $0.01 par value, non-voting; authorized 25,000,000 shares at June 30, 2025 and December 31, 2024; issued and outstanding 1,672,562 at June 30, 2025 and December 31, 2024	17	17
Additional paid-in capital	143,266	142,902
Retained earnings	10,156	12,911
Unearned Employee Stock Ownership Plan (ESOP) shares	(4,089)	(4,201)
Accumulated other comprehensive loss, net of tax	(8,557)	(11,223)
Treasury stock-at cost, 327,228 shares at June 30, 2025 and at December 31, 2024	(5,326)	(5,326)
Total Broadway Financial Corporation and Subsidiary stockholders' equity	285,545	285,157
Non-controlling interest	210	219
Total liabilities and stockholders' equity	$             1,227,392	$             1,303,711

The following table sets forth the consolidated statements of operations for the three and six months ended June 30, 2025 and 2024.

BROADWAY FINANCIAL CORPORATION
Consolidated Statements of Operations
(In thousands, except share and per share amounts)
	Three Months Ended			Six Months Ended
	June 30,			June 30,
	2025		2024	2025		2024
‌
Interest income:
Interest and fees on loans receivable	$      12,658		$    12,179	$      25,348		$      23,308
Interest on available-for-sale securities	1,171		1,876	2,379		3,951
Other interest income	401		1,433	877		3,022
Total interest income	14,230		15,488	28,604		30,281
‌
Interest expense:
Interest on deposits	4,879		3,086	9,078		5,885
Interest on borrowings	1,596		4,484	3,726		8,954
Total interest expense	6,475		7,570	12,804		14,839
Net interest income	7,755		7,918	15,800		15,442
(Recapture of) provision for credit losses	(266)		494	423		754
Net interest income after (recapture of) provision for credit losses	8,021		7,424	15,377		14,688
‌
Non-interest income:
Service charges	41		38	84		78
Grants	105		-	131		-
Other	209		235	428		501
Total non-interest income	355		273	643		579
‌
Non-interest expense:
Compensation and benefits	4,412		4,469	9,696		8,866
Occupancy expense	485		432	1,025		867
Information services	775		663	1,480		1,370
Professional services	787		563	1,488		1,973
Advertising and promotional expense	61		63	107		91
Supervisory costs	156		216	349		393
Corporate insurance	66		64	133		125
Amortization of core deposit intangible	79		84	157		168
Operational loss	-		-	1,943		-
Other expense	701		726	1,341		1,237
Total non-interest expense	7,522		7,280	17,719		15,090
‌
Income (loss) before income taxes	854		417	(1,699)		177
Income tax expense (benefit)	257		146	(435)		89
Net income (loss)	$              597		$         271	$            (1,264)		$            88
Less: Net (loss) income attributable to non-controlling interest	(6)		2	(9)		(17)
Net income (loss) attributable to Broadway Financial Corporation	$              603		$         269	$            (1,255)		$          105
Less: Preferred stock dividends	750		-	1,500		-
‌
Net (loss) income attributable to common stockholders	$            (147)		$         269	$            (2,755)		$          105
‌
(Loss) earnings per common share-basic	$          (0.02)		$        0.03	$              (0.32)		$         0.01
(Loss) earnings per common share-diluted	$          (0.02)		$        0.03	$              (0.32)		$         0.01

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.

	For the Three Months Ended
	June 30, 2025											June 30, 2024
		(Dollars in thousands) (Unaudited)
		Average Balance			Interest		Average Yield							Average Balance			Interest		Average Yield
Assets
Interest-earning assets:
Interest-earning deposits	$	24,132		$	266		4.42		%				$	88,294		$	1,189		5.42		%
Securities		182,351			1,171		2.58		%					276,457			1,876		2.73		%
Loans receivable (1)		968,028			12,658		5.24		%					943,072			12,179		5.19		%
FRB and FHLB stock (2)		7,473			135		7.25		%					13,835			244		7.09		%
Total interest-earning assets		1,181,984		$	14,230		4.83		%					1,321,658		$	15,488		4.71		%
Non-interest-earning assets		49,786												53,207
Total assets	$	1,231,770											$	1,375,165
‌
Liabilities and Stockholders' Equity
Interest-bearing liabilities:
Money market deposits	$	133,930		$	336		1.01		%				$	274,915		$	1,623		2.37		%
Savings deposits		46,762			61		0.52		%					57,684			102		0.71		%
Interest checking and other demand deposits		251,146			1,975		3.15		%					73,853			166		0.90		%
Certificate accounts		270,424			2,507		3.72		%					163,237			1,195		2.94		%
Total deposits		702,262			4,879		2.79		%					569,689			3,086		2.18		%
Borrowings		72,962			710		3.90		%					209,261			2,593		4.98		%
Bank Term Funding Program borrowing		-			-		-		%					100,000			1,210		4.87		%
Other borrowings		69,722			886		5.10		%					74,523			681		3.68		%
Total borrowings		142,684			1,596		4.49		%					383,784			4,484		4.70		%
Total interest-bearing liabilities		844,946		$	6,475		3.07		%					953,473		$	7,570		3.19		%
Non-interest-bearing liabilities		101,670												139,900
Stockholders' equity		285,154												281,792
Total liabilities and stockholders' equity	$	1,231,770											$	1,375,165
‌
Net interest rate spread (3)				$	7,755		1.76		%							$	7,918		1.52		%
Net interest rate margin (4)							2.63		%										2.41		%
Ratio of interest-earning assets to interest-bearing liabilities							139.89		%										138.62		%

(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, 2025											June 30, 2024
		(Dollars in thousands) (Unaudited)
		Average Balance			Interest		Average Yield							Average Balance			Interest		Average Yield
Assets
Interest-earning assets:
Interest-earning deposits	$	26,532		$	578		4.39		%				$	97,640		$	2,533		5.22		%
Securities		189,368			2,379		2.53		%					290,721			3,951		2.73		%
Loans receivable (1)		970,241			25,348		5.27		%					925,443			23,308		5.06		%
FRB and FHLB stock (2)		9,320			299		6.47		%					13,777			489		7.14		%
Total interest-earning assets		1,195,461		$	28,604		4.83		%					1,327,581		$	30,281		4.59		%
Non-interest-earning assets		50,061												51,988
Total assets	$	1,245,512											$	1,379,569
‌
Liabilities and Stockholders' Equity
Interest-bearing liabilities:
Money market deposits	$	126,557		$	593		0.94		%				$	272,290		$	3,065		2.26		%
Savings deposits		47,732			129		0.54		%					58,377			204		0.70		%
Interest checking and other demand deposits		253,384			3,886		3.09		%					78,772			311		0.79		%
Certificate accounts		247,498			4,470		3.64		%					164,319			2,305		2.82		%
Total deposits		675,171			9,078		2.71		%					573,758			5,885		2.06		%
FHLB advances		106,106			2,239		4.26		%					209,280			5,191		4.99		%
Bank Term Funding Program borrowing		-			-		-		%					100,000			2,413		4.85		%
Other borrowings		73,237			1,487		4.09		%					76,688			1,350		3.45		%
Total borrowings		179,343			3,726		4.19		%					385,968			8,954		4.67		%
Total interest-bearing liabilities		854,514		$	12,804		3.02		%					959,726		$	14,839		3.11		%
Non-interest-bearing liabilities		105,111												138,012
Stockholders' equity		285,887												281,831
Total liabilities and stockholders' equity	$	1,245,512											$	1,379,569
Net interest rate spread (3)				$	15,800		1.80		%							$	15,442		1.48		%
Net interest rate margin (4)							2.67		%										2.34		%
Ratio of interest-earning assets to interest-bearing liabilities							139.90		%										138.33		%

(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.

 

BROADWAY FINANCIAL CORPORATION AND SUBSIDIARY
Selected Financial Data and Ratios (Unaudited)
(Dollars in thousands, except per share data)
			Three Months Ended													Six Months Ended
			June 30, 2025		March 31, 2025			December 31, 2024		September 30, 2024		June 30, 2024				June 30, 2025		June 30, 2024
Balance Sheets:
	Total gross loans		965,875		980,005			976,964		975,315		946,840				965,785		946,840
	Allowance for credit losses		8,582		8,774			8,103		8,527		8,104				8,582		8,104
	Investment securities		177,977		185,938			203,862		238,489		261,454				177,977		261,454
	Total assets		1,227,392		1,238,019			1,303,711		1,373,055		1,367,290				1,227,392		1,367,290
	Total deposits		798,922		776,543			745,399		672,248		687,369				798,922		687,369
	Total shareholders' equity		285,545		284,581			285,157		286,392		282,293				285,545		282,293
	‌
Profitability:
	Interest income		14,230		14,374			15,762		16,166		15,488				28,604		30,281
	Interest expense		6,475		6,329			7,765		7,836		7,570				12,804		14,839
Net interest income			7,755		8,045			7,997		8,330		7,918				15,800		15,442
	(Recovery of) provision for credit losses		(266)		689			(489)		399		494				423		754
	Non-interest income		355		288			560		416		273				643		579
	Non-interest expenses		7,522		10,197			7,210		7,594		7,280				17,719		15,090
	Income (loss) before income taxes		854		(2,553)			1,836		753		417				(1,699)		177
	Income tax expense (benefit)		257		(692)			516		209		146				(435)		89
	Net income (loss)		597		(1,861)			1,320		544		271				(1,264)		88
	Less: Net (loss) income attributable to non-controlling interest		(6)		(3)			20		22		2				(9)		(17)
	Net income (loss) attributable to Broadway Financial Corporation		603		(1,858)			1,300		522		269				(1,255)		105
	Less: Preferred stock dividends		750		750			750		750		-				1,500		-
	Net (loss) income attributable to common stockholders		(147)		(2,608)			550		(228)		269				(2,755)		105
	‌
Financial Performance:
	Return on average assets (annualized)		(0.05 %)		(0.84 %)			0.16 %		(0.07 %)		0.08 %				(0.45 %)		0.02 %
	Return on average equity (annualized)		(0.21 %)		(3.69 %)			0.77 %		(0.32 %)		0.38 %				(1.94 %)		0.08 %
	Net interest margin		2.63 %		2.70 %			2.42 %		2.49 %		2.41 %				2.67 %		2.34 %
	Efficiency ratio		92.75 %		122.37 %			84.26 %		86.83 %		88.88 %				107.76 %		94.19 %
	‌
Per Share Data:
	Book value per share		14.74		14.58			14.82		14.97		14.49				14.74		14.49
	Weighted average common shares (basic)		8,622,891		8,547,460			8,459,460		8,520,730		8,394,367				8,557,745		8,308,359
	Weighted average common shares (diluted)		8,622,891		8,547,460			8,638,660		8,684,296		8,596,985				8,557,745		8,513,262
	Common shares outstanding at end of period		9,195,909		9,231,180			9,120,363		9,112,777		9,131,979				9,195,909		9,131,979
	‌
Financial Measures:
	Loans to assets		78.69 %		79.16 %			74.94 %		71.03 %		69.25 %				78.69 %		69.25 %
	Loans to deposits		120.90 %		126.20 %			131.07 %		145.08 %		137.75 %				120.90 %		137.75 %
	Allowance for credit losses to total loans		0.89 %		0.90 %			0.83 %		0.87 %		0.86 %				0.89 %		0.86 %
	Allowance for credit losses to total nonperforming loans		192.98 %		1020.23 %			3069.32 %		2930.24 %		2470.73 %				192.98 %		2470.73 %
	Non-accrual loans to total loans		0.42 %		0.09 %			0.03 %		0.03 %		0.03 %				0.42 %		0.03 %
	Nonperforming loans to total assets		0.36 %		0.07 %			0.02 %		0.02 %		0.02 %				0.36 %		0.02 %
	Net charge-offs (recoveries) (annualized) to average total loans		-		-			-		-		-				-		-
	‌
Average Balance Sheets:
	Total loans		968,028		972,479			976,873		963,849		943,072				970,241		925,443
	Investment securities		182,351		196,463			222,879		248,833		276,457				189,368		290,721
	Total assets		1,231,770		1,259,448			1,363,572		1,382,066		1,375,165				1,245,512		1,379,569
	Total interest-bearing deposits		702,262		647,777			622,217		570,512		569,689				675,171		573,758
	Total shareholders' equity		285,154		286,629			285,775		284,343		281,792				285,887		281,831

 

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SOURCE Broadway Financial Corporation

FAQ

What was BYFC's earnings per share in Q2 2025?

Broadway Financial reported a diluted loss per common share of ($0.02) in Q2 2025, compared to earnings of $0.03 per diluted share in Q2 2024, after accounting for preferred dividends of $0.09 per share.

How much did Broadway Financial's deposits grow in the first half of 2025?

Broadway Financial's deposits increased by $53.5 million, or 7.2%, reaching $798.9 million at June 30, 2025, primarily driven by growth in certificates of deposit accounts.

What is Broadway Financial's current Community Bank Leverage Ratio?

As of June 30, 2025, Broadway Financial maintained a strong Community Bank Leverage Ratio of 15.69%, an improvement from 13.96% at December 31, 2024.

How did BYFC's net interest margin perform in Q2 2025?

BYFC's net interest margin increased to 2.63% in Q2 2025, up 22 basis points from 2.41% in Q2 2024, driven by higher yields on interest-earning assets and lower cost of funds.

What is the current asset quality status of Broadway Financial's loan portfolio?

Broadway Financial maintains strong credit quality with non-accrual loans at 0.42% of total loans and non-performing assets to total assets at 0.36%. The allowance for credit losses stands at 0.89% of total loans.