Broadway Financial Corporation Announces Results of Operations for Second Quarter 2025
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%.
Broadway Financial Corporation (NASDAQ: BYFC) ha riportato un utile netto consolidato prima dei dividendi privilegiati di 603 mila dollari (0,07 dollari per azione diluita) nel secondo trimestre del 2025, rispetto a 269 mila dollari (0,03 dollari per azione diluita) nel secondo trimestre del 2024. Dopo la detrazione dei dividendi privilegiati, la società ha registrato una perdita netta attribuibile agli azionisti ordinari di 147 mila dollari (0,02 dollari per azione diluita).
I principali risultati includono: un aumento del margine di interesse netto di 22 punti base fino al 2,63%, una crescita dei depositi totali di 53,5 milioni di dollari (7,2%) nella prima metà del 2025 e una riduzione degli indebitamenti di 126,3 milioni di dollari (64,6%) a 69,2 milioni di dollari. La banca mantiene solidi rapporti patrimoniali con un rapporto di leva della Community Bank pari al 15,69% e una buona qualità del credito, con prestiti non produttivi sul totale prestiti allo 0,42%.
Broadway Financial Corporation (NASDAQ: BYFC) reportó un ingreso neto consolidado antes de dividendos preferentes de 603 mil dólares (0,07 dólares por acción diluida) en el segundo trimestre de 2025, en comparación con 269 mil dólares (0,03 dólares por acción diluida) en el segundo trimestre de 2024. Después de deducir los dividendos preferentes, la compañía registró una pérdida neta atribuible a los accionistas comunes de 147 mil dólares (0,02 dólares por acción diluida).
Los aspectos destacados incluyen: un aumento del margen de interés neto de 22 puntos básicos hasta el 2,63%, un crecimiento de depósitos totales de 53,5 millones de dólares (7,2%) en el primer semestre de 2025 y una disminución de los préstamos por 126,3 millones de dólares (64,6%) a 69,2 millones de dólares. El banco mantiene sólidos índices de capital con una relación de apalancamiento comunitario del 15,69% y una calidad crediticia sólida con préstamos no devengados sobre el total de préstamos en 0,42%.
브로드웨이 파이낸셜 코퍼레이션 (NASDAQ: BYFC)은 2025년 2분기 우선주 배당 전 연결 순이익이 603천 달러 (희석 주당 0.07달러)를 기록했으며, 이는 2024년 2분기의 269천 달러 (희석 주당 0.03달러)와 비교됩니다. 우선주 배당을 차감한 후, 보통주주 귀속 순손실은 147천 달러 (희석 주당 -0.02달러)였습니다.
주요 내용으로는: 순이자마진이 22 베이시스 포인트 상승하여 2.63%를 기록했고, 2025년 상반기 총 예금이 5350만 달러 (7.2%) 증가했으며, 차입금은 1억2630만 달러 (64.6%) 감소하여 6920만 달러가 되었습니다. 은행은 커뮤니티 뱅크 레버리지 비율이 15.69%로 강한 자본 비율을 유지하고 있으며, 비수익 대출이 총 대출의 0.42%로 견고한 신용 품질을 보유하고 있습니다.
Broadway Financial Corporation (NASDAQ : BYFC) a annoncé un bénéfice net consolidé avant dividendes privilégiés de 603 000 dollars (0,07 dollar par action diluée) au deuxième trimestre 2025, contre 269 000 dollars (0,03 dollar par action diluée) au deuxième trimestre 2024. Après déduction des dividendes privilégiés, la société a enregistré une perte nette attribuable aux actionnaires ordinaires de 147 000 dollars (0,02 dollar par action diluée).
Les points clés comprennent : une augmentation de la marge nette d’intérêt de 22 points de base à 2,63 %, une croissance des dépôts totaux de 53,5 millions de dollars (7,2 %) au premier semestre 2025, et une diminution des emprunts de 126,3 millions de dollars (64,6 %) à 69,2 millions de dollars. La banque maintient des ratios de capital solides avec un ratio de levier communautaire de 15,69 % et une qualité de crédit solide avec des prêts non productifs représentant 0,42 % du total des prêts.
Broadway Financial Corporation (NASDAQ: BYFC) meldete für das zweite Quartal 2025 einen konsolidierten Nettogewinn vor Vorzugsdividenden von 603.000 US-Dollar (0,07 US-Dollar je verwässerter Aktie), verglichen mit 269.000 US-Dollar (0,03 US-Dollar je verwässerter Aktie) im zweiten Quartal 2024. Nach Abzug der Vorzugsdividenden verzeichnete das Unternehmen einen auf Stammaktionäre entfallenden Nettoverlust von 147.000 US-Dollar (0,02 US-Dollar je verwässerter Aktie).
Wichtige Highlights sind: eine Steigerung der Nettozinsmarge um 22 Basispunkte auf 2,63 %, ein Wachstum der Gesamteinlagen um 53,5 Millionen US-Dollar (7,2 %) im ersten Halbjahr 2025 und eine Reduzierung der Verbindlichkeiten um 126,3 Millionen US-Dollar (64,6 %) auf 69,2 Millionen US-Dollar. Die Bank hält starke Kapitalquoten mit einer Community Bank Leverage Ratio von 15,69 % und eine solide Kreditqualität mit notleidenden Krediten von 0,42 % der Gesamtkredite.
- 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
- 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
Insights
Broadway Financial improved Q2 profitability with higher net interest margin despite continued challenges at six-month level.
Broadway Financial Corporation reported significantly improved quarterly profitability with consolidated net income of
The net interest margin improved substantially to
On the deposit front, Broadway reported strong growth with total deposits increasing by
The bank maintained robust capital levels with a Community Bank Leverage Ratio of
Despite the quarterly improvement, Broadway's six-month performance showed a consolidated net loss of
Total assets decreased by
For the first six months of 2025, the Company reported consolidated net loss before preferred dividends of
Second Quarter 2025 Highlights:
- The net interest margin increased by 22 basis points to
2.63% for the second quarter of 2025, compared to2.41% 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 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 to13.96% 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 at0.36% - Borrowings were
$69.2 million $195.5 million $126.3 million 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
"Our results for the second quarter of 2025 were positively impacted by a reduction in non-interest expense of
"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 $163 thousand 2.1% , from net interest income before provision for credit losses of$7.9 million $1.3 million $1.1 million
The net interest margin increased to2.63% for the second quarter of 2025 from2.41% for the second quarter of 2024, due to an increase in the average rate earned on interest-earning assets, which increased to4.83% for the second quarter of 2025 from4.71% for the second quarter of 2024, and a decrease in the cost of funds, which decreased to3.07% for the second quarter of 2025 from3.19% 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 $358 thousand 2.3% , from net interest income before provision for credit losses of$15.4 million $2.0 million $1.7 million
The net interest margin increased to2.67% for the first six months of 2025 from2.34% for the first six months of 2024, due to an increase in the average rate earned on interest-earnings assets, which increased to4.83% for the first six months of 2025 from4.59% for the first six months of 2024, and a decrease in the cost of funds, which decreased to3.02% for the first six months of 2025 from3.11% for the first six months of 2024. - Recapture of/Provision for Credit Losses resulted in a recapture of credit losses of
$266 thousand $494 thousand
The Provision for Credit Losses was$423 thousand $754 thousand
The allowance for credit losses ("ACL") increased to$8.6 million $8.1 million $4.0 million 0.42% and non-performing assets to total assets of0.36% despite the increase in non-accrual loans. - Non-interest Expense was
$7.5 million $7.3 million $242 thousand 3.3% . The increase was primarily due to increases of$224 thousand $112 thousand $60 thousand $57 thousand
Non-interest Expense was$17.7 million $15.1 million $2.6 million 17.4% . The increase was primarily due to a$1.9 million $830 thousand $485 thousand - Income Tax Expense was
$257 thousand $146 thousand $437 thousand 30.09% for the second quarter of 2025, compared to35.01% for the second quarter of 2024.
The Company recorded an income tax benefit of$435 thousand $89 thousand $1.9 million 25.60% for the first six months of 2025, compared to50.28% for the first six months of 2024.
Balance Sheet
- Total Assets decreased by
$76.3 million $31.9 million $25.9 million $11.6 million $5.9 million - Loans Held for Investment, Net of the ACL, decreased by
$11.6 million $957.3 million $968.9 million - Deposits increased by
$53.5 million 7.2% , to$798.9 million $745.4 million $67.7 million $4.5 million $3.5 million $3.3 million $2.9 million 35% of our total deposits, compared to32% 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 $133.0 million $262.1 million $135.3 million $9.2 million
Asset Quality
- Allowance for Credit Losses was
0.89% of total loans held for investment at June 30, 2025, compared to0.83% at December 31, 2024. - Nonperforming Assets were
$4.4 million $264 thousand
Capital
- Stockholders' equity was
$285.5 million 23.3% of the Company's total assets, at June 30, 2025, compared to$285.2 million 21.9% of the Company's total assets, at December 31, 2024. - Book Value per Share was
$14.74 $14.82 15.69% at June 30, 2025 compared to13.96% 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
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
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 | 177,977 | 203,862 |
Loans receivable held for investment, net of allowance of | 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 |
150,000 |
150,000 |
Common stock, Class A, 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, 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, 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 | Interest | Average | Average | Interest | Average | |||||||||||||||||
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 | Interest | Average | Average | Interest | Average | |||||||||||||||||
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, | March 31, | December 31, | September 30, | June 30, | June 30, | June 30, | |||||||||||||
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 | ||||||||||||
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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 | ||||||||||||
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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 | ||||||||||||
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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
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