Broadway Financial Corporation Reports Third Quarter 2026 Results Highlighted by Improved Earnings, Strong Deposit Growth and Stable Credit Quality

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LOS ANGELES--(BUSINESS WIRE)-- 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 $392 thousand during the third quarter of 2026, compared to net income attributable to common stockholders of $218 thousand for the second quarter of 2026, and net loss attributable to common stockholders of $24.6 million for the third quarter of 2025. Diluted earnings (loss) per common share was $0.04 for the third quarter of 2026, compared to $0.02 for the second quarter of 2026 and ($2.86) for the third quarter of 2025.

The Company reported consolidated net income before preferred dividends¹ of $1.1 million, or $0.13 per diluted common share, for the third quarter of 2026, compared to $968 thousand, or $0.11 per diluted common share, for the second quarter of 2026, and consolidated net income before preferred dividends and goodwill impairment¹ of $2.0 million, or $0.23 per diluted common share, for the third quarter of 2025.

For the first nine months of 2026, the Company reported consolidated net income of $1.0 million, or $0.11 per diluted common share, compared to consolidated net loss of $28.1 million, or ($3.27) per diluted common share, for the first nine months of 2025. For the first nine months of 2026, the Company reported consolidated net income before preferred dividends¹ of $3.3 million, or $0.37 per diluted common share, compared to consolidated net income before preferred dividends and goodwill impairment¹ of $38 thousand, or $0.00 per diluted common share, for the first nine months of 2025. This increase reflects stronger operating performance driven by loan growth, deposit growth, and continued balance sheet expansion.

Net income attributable to common stockholders was $1.0 million during the first nine months of 2026 after deducting preferred dividends of $2.3 million, compared to net loss attributable to common stockholders of $28.1 million for the first nine months of 2025 after deducting goodwill impairment of $25.9 million and preferred dividends of $2.3 million. Diluted earnings per common share was $0.11 for the first nine months of 2026, compared to ($3.27) of diluted loss per common share for the first nine months of 2025. Diluted earnings (loss) per common share for the first nine months of 2026 reflects preferred dividends of $0.25 per diluted common share, compared to ($0.26) of diluted loss per common share for the first nine months of 2025.

Third Quarter Highlights

• Net income totaled $392 thousand, or $0.04 per diluted common share, and net income before preferred dividends totaled $1.1 million, or $0.13 per diluted common share.
• Net loans increased $116.2 million, or 11.4%, during the first nine months of 2026.
• Total deposits increased $192.4 million, or 21.0%, during the first nine months of 2026.
• Credit quality remained stable with non-accrual loans to gross loans at 1.20% and non-performing assets to total assets at 0.88%.
• Capital levels remained strong, with a Community Bank Leverage Ratio of 12.83%.

1

“Net income before preferred dividends”, “net income before preferred dividends and goodwill impairment”, “pre-provision net revenue”, “efficiency ratio,” and “tangible book value” 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.

Chief Executive Officer, Brian Argrett, commented, “Our third-quarter results reflect disciplined execution of our strategic priorities, resulting in strong growth in both loans and deposits while maintaining solid capital levels. We continue to operate with a disciplined approach to risk management and underwriting as we navigate an evolving economic environment. Looking ahead, we remain focused on optimizing the balance sheet, enhancing profitability, and delivering long-term value for our stockholders.”

Quarterly Results of Operations

• Net Interest Income totaled $9.9 million, representing an increase of $406 thousand, or 4.3%, from net interest income of $9.5 million for the second quarter of 2026. The increase resulted from a $1.0 million increase in interest income, primarily due to a $767 thousand increase in interest income on loans receivable as a result of an increase in the average balance of loans receivable and a $170 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 $589 thousand increase in interest expense due to an increase in interest expense on borrowings, as a result of an increase in the average balance of borrowings.
  
  The net interest margin remained stable at 2.64% for the third quarter of 2026 compared to 2.65% for the second quarter of 2026.
  
  The net interest margin declined slightly to 2.64% for the third quarter of 2026 from 2.72% for the third quarter of 2025. Despite elevated funding costs associated with the higher interest rate environment, net interest margin remained relatively stable during the quarter. Management continues to focus on loan repricing opportunities, optimizing deposit mix, and disciplined balance sheet management to help offset funding cost pressures and support margin stability.

• Provision for Credit Losses was $668 thousand for the third quarter of 2026, compared to $1.5 million for the second quarter of 2026. This decrease was primarily due to partial charge-offs taken in the three months ended September 30, 2026 that were previously reserved, partially offset by a specific reserve on a non-accrual loan. At September 30, 2026, non-performing assets represented 0.88% of total assets and non-accrual loans represented 1.20% of gross loans.
  
  The allowance for credit losses (“ACL”) increased to $10.0 million as of September 30, 2026, compared to $9.4 million as of December 31, 2025.

• Non-interest Income was $496 thousand for the third quarter of 2026, compared to $950 thousand for the second quarter of 2026, representing a decrease of $454 thousand, or 47.8%. The decrease was due to a $450 thousand fee recognized on a New Markets Tax Credit financing transaction earned in the second quarter of 2026.

• Non-interest Expense was $8.3 million for the third quarter of 2026, compared to $7.5 million for the second quarter of 2026, representing an increase of $855 thousand, or 11.4%. The increase was primarily due to a $431 thousand increase in compensation and benefits expense, a $247 thousand increase in information services expense and a $113 thousand increase in supervisory costs. The increase in noninterest expense primarily reflects continued investments in personnel, technology, and operational infrastructure to support business growth, enhance client service capabilities, and strengthen the Company’s long-term operating platform.

• Income Tax Expense was $279 thousand for the third quarter of 2026 compared to $330 thousand for the second quarter of 2026. The decrease in tax expense reflected a decrease of $90 thousand in pre-tax income between the two periods. The effective tax rate was 20.03% for the third quarter of 2026, compared to 22.25% for the second quarter of 2026.

Year-to-Date Results of Operations

• Net Interest Income totaled $28.4 million for the first nine months of 2026, representing an increase of $4.0 million, or 16.5%, from net interest income of $24.4 million for the first nine months of 2025. The increase resulted from a $7.8 million increase in interest income, primarily due to a $5.1 million increase in interest income on available-for-sale securities, due to increases in the average rate and balance of available-for-sale securities, and a $3.4 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 $1.7 million due to decreases in the average rate and balance of borrowings. The increases in net interest income were partially offset by a $5.5 million increase in interest expense on deposits due to increases in the average deposit rate and balance.
  
  The net interest margin increased to 2.68% for the first nine months of 2026 from 2.65% for the first nine months of 2025, due to an increase in the average rate earned on interest-earning assets, which increased to 4.97% for the first nine months of 2026 from 4.88% for the first nine months of 2025, and a decrease in the cost of funds, which decreased to 3.00% for the first nine months of 2026 from 3.08% for the first nine months of 2025.

• Provision for Credit Losses was $2.3 million for the first nine months of 2026, compared to $2.1 million for the first nine months of 2025.

• Non-interest Income was $2.0 million for the first nine months of 2026, compared to $1.1 million for the first nine months of 2025, representing an increase of $970 thousand, or 91.1%. The increase was primarily due to $697 thousand of additional earnings on bank owned life insurance and a $450 thousand fee recognized on a New Markets Tax Credit financing transaction earned in the first nine months of 2026.

• Non-interest Expense was $23.8 million for the first nine months of 2026, compared to $49.2 million for the first nine months of 2025, representing a decrease of $25.4 million, or 51.6%. The decrease was primarily due to a $25.9 million goodwill impairment charge recorded in the first nine months of 2025.

• Income Tax Expense/Benefit was income tax expense of $891 thousand for the first nine months of 2026 compared to income tax benefit of $54 thousand for the first nine months of 2025. The increase in tax expense reflected an increase of $30.2 million in pre-tax income between the two periods.

Financial Condition Review

• Total Assets increased by $211.4 million at September 30, 2026, compared to December 31, 2025, reflecting increases in net loans of $116.2 million, securities available-for-sale of $48.6 million and cash and cash equivalents of $38.8 million. The increase in net loans was due to organic loan growth and purchases of government guaranteed loans, and the increase in securities available-for-sale was due to purchases of securities available-for-sale.

• Loans Held for Investment, Net of the ACL increased by $116.2 million to $1.1 billion at September 30, 2026, compared to $1.0 billion at December 31, 2025. The increase was due to organic growth and loan purchases.

• Deposits increased by $192.4 million, or 21.0%, to $1.1 billion at September 30, 2026, compared to $917.6 million at December 31, 2025. The increase in deposits was attributable to increases of $157.9 million in savings deposits, $33.4 million in certificates of deposit accounts, and $8.5 million in liquid deposits (demand, interest checking, and money market accounts), partially offset by decreases of $4.4 million in Certificate of Deposit Registry Service (“CDARS”) deposits (CDARS deposits are similar to Insured Cash Sweep (“ICS”) deposits, but involve certificates of deposit, instead of money market accounts) and $3.0 million in 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 September 30, 2026, our uninsured deposits represented 34% of our total deposits, consistent with 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.

• Total Borrowings increased $27.0 million to $99.0 million at September 30, 2026, compared to $72.0 million at December 31, 2025, due to additional FHLB advances. The increase in borrowings reflects proactive liquidity management and support for continued loan growth opportunities. The Bank maintains sufficient liquidity and borrowing capacity to support customer needs while preserving financial flexibility.

Asset Quality

• Allowance for Credit Losses was 0.87% of total loans held for investment at September 30, 2026, compared to 0.92% at December 31, 2025. Allowance for credit losses was 1.03% of total loans held for investment less purchased loans at September 30, 2026, compared to 0.91% at December 31, 2025.

• Nonperforming Assets increased to $13.8 million at September 30, 2026, compared to $11.2 million at December 31, 2025.

Capital

• Stockholders’ equity was $255.5 million, or 16.4% of the Company’s total assets, at September 30, 2026, compared to $262.8 million, or 19.6% of the Company’s total assets, at December 31, 2025.

• Book Value per Share was $11.37 at September 30, 2026, compared to $12.28 at December 31, 2025. The decline in book value per share was primarily attributable to unrealized losses within the securities portfolio resulting from interest rate movements. These adjustments do not affect regulatory capital, liquidity, or the Company’s ability to hold the securities to maturity. Capital ratios remain strong with a Community Bank Leverage Ratio of 12.83% at September 30, 2026 compared to 14.09% at December 31, 2025. While capital ratios moderated from prior-year levels, they remain above regulatory well-capitalized thresholds. The decline primarily reflects strong asset growth and deployment of capital into earning assets. Tangible book value per share was $11.24 at September 30, 2026, compared to $12.12 at December 31, 2025.

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.

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)
		September 30, 2026				December 31, 2025
		(Unaudited)
Assets:
Cash and due from banks		$	1,824			$	1,676
Interest-bearing deposits in other banks			47,486				8,831
Cash and cash equivalents			49,310				10,507
Securities available-for-sale, at fair value (amortized cost of $326,554 and $265,371)			305,410				256,835
Loans receivable held for investment, net of allowance of $9,964 and $9,424			1,132,690				1,016,540
Accrued interest receivable			7,518				5,999
Federal Home Loan Bank (FHLB) stock			5,752				4,417
Federal Reserve Bank (FRB) stock			3,543				3,543
Office properties and equipment, net			8,730				8,732
Bank owned life insurance			24,443				23,663
Deferred tax assets, net			10,379				6,711
Core deposit intangible, net			1,232				1,460
Other assets			7,916				7,162
Total assets		$	1,556,923			$	1,345,569
Liabilities and equity
Liabilities:
Deposits		$	1,109,962			$	917,603
Securities sold under agreements to repurchase			79,999				80,773
Borrowings			99,000				72,000
Accrued expenses and other liabilities			12,345				12,236
Total liabilities			1,301,306				1,082,612
Equity:
Non-Cumulative Redeemable Perpetual Preferred stock, Series C; authorized 150,000 shares at September 30, 2026 and December 31, 2025; issued and outstanding 150,000 shares at September 30, 2026 and December 31, 2025; 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 September 30, 2026 and December 31, 2025; issued 6,505,579 shares at September 30, 2026 and 6,409,760 shares at December 31, 2025; outstanding 6,178,351 shares at September 30, 2026 and 6,082,532 shares at December 31, 2025			65				64
Common stock, Class B, $0.01 par value, non-voting; authorized 15,000,000 shares at September 30, 2026 and December 31, 2025; issued and outstanding 1,425,404 shares at September 30, 2026 and December 31, 2025			14				14
Common stock, Class C, $0.01 par value, non-voting; authorized 25,000,000 shares at September 30, 2026 and December 31, 2025; issued and outstanding 1,672,562 at September 30, 2026 and December 31, 2025			17				17
Additional paid-in capital			143,653				143,194
Accumulated deficit			(14,219	)			(15,238	)
Unearned Employee Stock Ownership Plan (ESOP) shares			(3,680	)			(3,869	)
Accumulated other comprehensive loss, net of tax			(15,056	)			(6,105	)
Treasury stock-at cost, 327,228 shares at September 30, 2026 and at December 31, 2025			(5,326	)			(5,326	)
Total Broadway Financial Corporation and Subsidiary equity			255,468				262,751
Non-controlling interest			149				206
Total liabilities and equity		$	1,556,923			$	1,345,569

The following table sets forth the consolidated statements of operations for the three and nine months ended September 30, 2026 and 2025.

BROADWAY FINANCIAL CORPORATION
Consolidated Statements of Operations
(In thousands, except share and per share amounts)
(Unaudited)
		Three Months Ended												Nine Months Ended
		September 30, 2026				June 30, 2026				September 30, 2025				September 30, 2026				September 30, 2025
Interest income:
Interest and fees on loans receivable		$	15,120			$	14,353			$	13,418			$	42,760			$	39,360
Interest on available-for-sale securities			3,380				3,210				1,690				9,203				4,069
Other interest income			298				240				683				847				1,560
Total interest income			18,798				17,803				15,791				52,810				44,989
Interest expense:
Interest on deposits			6,973				6,985				5,363				19,948				14,441
Interest on borrowings			1,929				1,328				1,811				4,423				6,131
Total interest expense			8,902				8,313				7,174				24,371				20,572
Net interest income			9,896				9,490				8,617				28,439				24,417
Provision for credit losses			668				1,481				679				2,349				2,139
Net interest income after provision for credit losses			9,228				8,009				7,938				26,090				22,278
Non-interest income:
Service charges			36				44				47				124				131
Grants			55				23				145				185				275
Earnings on bank owned life insurance			264				261				61				780				83
Management fees			8				475				19				497				106
Other			133				147				150				449				470
Total non-interest income			496				950				422				2,035				1,065
Non-interest expense:
Compensation and benefits			4,684				4,253				4,340				13,823				14,036
Occupancy expense			530				458				505				1,496				1,530
Information services			1,051				804				768				2,795				2,248
Professional services			629				571				624				1,786				2,112
Advertising and promotional expense			73				56				76				253				183
Supervisory costs			292				179				161				656				510
Corporate insurance			72				56				86				183				219
Amortization of core deposit intangible			76				76				78				228				236
Operational loss			-				-				(1,603	)			-				340
Goodwill impairment			-				-				25,858				-				25,858
Other			924				1,023				625				2,602				1,965
Total non-interest expense			8,331				7,476				31,518				23,822				49,237
Income (loss) before income taxes			1,393				1,483				(23,158	)			4,303				(25,894	)
Income tax expense (benefit)			279				330				736				891				(54	)
Net income (loss)			1,114				1,153				(23,894	)			3,412				(25,840	)
Less: Net (loss) income attributable to non-controlling interest			(28	)			185				(11	)			143				(20	)
Net income (loss) attributable to Broadway Financial Corporation			1,142				968				(23,883	)			3,269				(25,820	)
Less: Preferred stock dividends			750				750				750				2,250				2,250
Net income (loss) attributable to common stockholders		$	392			$	218			$	(24,633	)		$	1,019			$	(28,070	)
Earnings (loss) per common share-basic		$	0.04			$	0.02			$	(2.86	)		$	0.12			$	(3.27	)
Earnings (loss) per common share-diluted		$	0.04			$	0.02			$	(2.86	)		$	0.11			$	(3.27	)

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
		September 30, 2026											June 30, 2026											September 30, 2025
Assets
Interest-earning assets:
Interest-bearing deposits		$	16,416			$	150			3.63	%		$	13,380			$	120			3.60	%		$	49,348			$	556			4.47	%
Securities			320,693				3,380			4.18	%			312,186				3,210			4.12	%			206,224				1,690			3.25	%
Loans receivable (1)			1,140,585				15,120			5.26	%			1,101,866				14,353			5.22	%			993,090				13,418			5.36	%
FRB and FHLB stock (2)			10,117				148			5.80	%			7,530				120			6.39	%			7,461				127			6.75	%
Total interest-earning assets			1,487,811			$	18,798			5.01	%			1,434,962			$	17,803			4.98	%			1,256,123			$	15,791			4.99	%
Non-interest-earning assets			42,971											42,246											50,659
Total assets		$	1,530,782										$	1,477,208										$	1,306,782
Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Money market deposits		$	184,743			$	1,049			2.25	%		$	175,103			$	942			2.16	%		$	155,121			$	422			1.08	%
Savings deposits			197,914				1,743			3.49	%			244,794				2,213			3.63	%			44,095				50			0.45	%
Interest checking and other demand deposits			256,432				1,448			2.24	%			262,783				1,447			2.21	%			263,972				2,105			3.16	%
Certificate accounts			318,644				2,733			3.40	%			281,036				2,383			3.40	%			282,955				2,786			3.91	%
Total deposits			957,733				6,973			2.89	%			963,716				6,985			2.91	%			746,143				5,363			2.85	%
FHLB Borrowings			117,213				1,166			3.95	%			62,884				614			3.92	%			63,016				711			4.48	%
Securities sold under agreements to repurchase			82,126				763			3.69	%			77,553				714			3.69	%			76,906				710			3.66	%
Secured borrowings			-				-			-				-				-			-				30,253				390			5.11	%
Total borrowings			199,339				1,929			3.84	%			140,437				1,328			3.79	%			170,175				1,811			4.22	%
Total interest-bearing liabilities			1,157,072			$	8,902			3.05	%			1,104,153			$	8,313			3.02	%			916,318			$	7,174			3.11	%
Non-interest-bearing liabilities			111,468											109,709											104,006
Stockholders’ equity			262,242											263,346											286,458
Total liabilities and stockholders’ equity		$	1,530,782										$	1,477,208										$	1,306,782
Net interest rate spread (3)						$	9,896			1.96	%						$	9,490			1.96	%						$	8,617			1.88	%
Net interest rate margin (4)										2.64	%										2.65	%										2.72	%
Ratio of interest-earning assets to interest-bearing liabilities										128.58	%										129.96	%										137.08	%

(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 Nine Months Ended
		September 30, 2026											September 30, 2025
		(Dollars in thousands) (Unaudited)
		Average Balance				Interest				Average Yield			Average Balance				Interest				Average Yield
Assets
Interest-earning assets:
Interest-earning deposits		$	17,430			$	470			3.61	%		$	34,221			$	1,134			4.43	%
Securities			299,634				9,203			4.11	%			195,049				4,069			2.79	%
Loans receivable (1)			1,094,214				42,760			5.22	%			995,521				39,360			5.29	%
FRB and FHLB stock (2)			8,109				377			6.22	%			8,694				426			6.55	%
Total interest-earning assets			1,419,387			$	52,810			4.97	%			1,233,485			$	44,989			4.88	%
Non-interest-earning assets			42,533											49,799
Total assets		$	1,461,920										$	1,283,284
Liabilities and Equity
Interest-bearing liabilities:
Money market deposits		$	183,674			$	3,037			2.21	%		$	136,183			$	1,015			1.00	%
Savings deposits			182,073				4,586			3.37	%			46,506				179			0.51	%
Interest checking and other demand deposits			261,191				4,515			2.31	%			256,952				5,991			3.12	%
Certificate accounts			304,356				7,810			3.43	%			259,447				7,256			3.74	%
Total deposits			931,294				19,948			2.86	%			699,088				14,441			2.76	%
Borrowings			74,991				2,201			3.92	%			91,585				2,950			4.31	%
Securities sold under agreements to repurchase			80,678				2,222			3.68	%			71,302				1,948			3.65	%
Secured borrowings			-				-			-	%			30,946				1,233			5.33	%
Total borrowings			155,669				4,423			3.80	%			193,833				6,131			4.23	%
Total interest-bearing liabilities			1,086,963			$	24,371			3.00	%			892,921			$	20,572			3.08	%
Non-interest-bearing liabilities			111,614											104,684
Equity			263,343											285,679
Total liabilities and equity		$	1,461,920										$	1,283,284
Net interest rate spread (3)						$	28,439			1.98	%						$	24,417			1.80	%
Net interest rate margin (4)										2.68	%										2.65	%
Ratio of interest-earning assets to interest-bearing liabilities										130.58	%										138.14	%

(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 nine months noted below.

BROADWAY FINANCIAL CORPORATION
Selected Financial Data and Ratios (Unaudited)
(Dollars in thousands, except per share data)
						Three Months Ended																Nine Months Ended
		September 30, 2026				June 30, 2026				March 31, 2026				December 31, 2025				September 30, 2025				September 30, 2026				September 30, 2025
Balance Sheets at Period Ended:
Total gross loans		$	1,142,654			$	1,137,338			$	1,068,771			$	1,025,964			$	1,023,483			$	1,142,654			$	1,023,483
Allowance for credit losses			9,964				10,799				9,509				9,424				10,339				9,964				10,339
Investment securities			305,410				327,030				284,103				256,835				244,005				305,410				244,005
Total assets			1,556,923				1,563,699				1,426,065				1,345,569				1,335,565				1,556,923				1,335,565
Total deposits			1,109,962				1,114,651				1,073,056				917,603				849,205				1,109,962				849,205
Total stockholders' equity			255,468				262,304				262,480				262,751				261,687				255,468				261,687
Profitability for Period Ended:
Interest income		$	18,798			$	17,803			$	16,209			$	16,293			$	15,791			$	52,810			$	44,989
Interest expense			8,902				8,313				7,156				7,563				7,174				24,371				20,572
Net interest income			9,896				9,490				9,053				8,730				8,617				28,439				24,417
Provision for credit losses			668				1,481				200				47				679				2,349				2,139
Non-interest income			496				950				589				687				422				2,035				1,065
Non-interest expenses			8,331				7,476				8,015				7,946				31,518				23,822				49,237
Income (loss) before income taxes			1,393				1,483				1,427				1,424				(23,158	)			4,303				(25,894	)
Income tax expense (benefit)			279				330				282				392				736				891				(54	)
Net income (loss)			1,114				1,153				1,145				1,032				(23,894	)			3,412				(25,840	)
Less: Net (loss) income attributable to non-controlling interest			(28	)			185				(14	)			7				(11	)			143				(20	)
Net income (loss) attributable to Broadway Financial Corporation			1,142				968				1,159				1,025				(23,883	)			3,269				(25,820	)
Less: Preferred stock dividends			750				750				750				750				750				2,250				2,250
Net income (loss) attributable to common stockholders		$	392			$	218			$	409			$	275			$	(24,633	)		$	1,019			$	(28,070	)
Financial Performance:
Return (loss) on average assets (annualized)			0.10	%			0.06	%			0.12	%			0.08	%			(7.48	)%			0.09	%			(2.92	)%
Return (loss) on average equity (annualized)			0.59	%			0.34	%			0.63	%			0.41	%			(34.12	)%			0.52	%			(13.14	)%
Net interest margin			2.64	%			2.65	%			2.75	%			2.62	%			2.72	%			2.68	%			2.65	%
Efficiency ratio			80.17	%			71.61	%			83.13	%			84.38	%			348.69	%			78.17	%			193.22	%
Per Share Data:
Book value per share		$	11.37			$	12.11			$	12.10			$	12.28			$	12.17			$	11.37			$	12.17
Weighted average common shares (basic)			8,682,092				8,679,800				8,597,291				8,639,459				8,617,707				7,324,696				8,581,883
Weighted average common shares (diluted)			8,871,913				8,874,673				8,816,188				8,639,459				8,617,707				8,854,549				8,581,883
Common shares outstanding at end of period			9,276,317				9,273,624				9,298,949				9,180,498				9,180,760				9,276,317				9,180,760
Financial Measures:
Gross loans to assets			73.39	%			72.73	%			74.95	%			76.25	%			76.63	%			73.39	%			76.63	%
Gross loans to deposits			102.95	%			102.04	%			99.60	%			111.81	%			120.52	%			102.95	%			120.52	%
Allowance for credit losses to gross loans			0.87	%			0.95	%			0.89	%			0.92	%			1.01	%			0.87	%			1.01	%
Allowance for credit losses to total non-accrual loans			72.59	%			96.74	%			82.97	%			84.38	%			76.36	%			72.59	%			76.36	%
Non-accrual loans to gross loans			1.20	%			0.98	%			1.07	%			1.09	%			1.32	%			1.20	%			1.32	%
Non-performing assets to total assets			0.88	%			0.71	%			0.80	%			0.83	%			1.01	%			0.88	%			1.01	%
Net charge-offs (recoveries) to average total loans			0.13	%			0.03	%			-				0.11	%			-				0.16	%			-
Average Balance Sheets:
Total loans		$	1,140,585			$	1,101,866			$	1,039,076			$	1,050,757			$	993,090			$	1,094,214			$	995,521
Investment securities			320,693				312,186				265,415				246,662				206,224				299,634				195,049
Total assets			1,530,782				1,477,208				1,376,070				1,361,026				1,306,782				1,461,920				1,283,284
Total deposits			957,733				963,716				871,487				775,913				746,143				931,294				699,088
Total stockholders' equity			262,242				263,346				264,464				263,266				286,458				263,343				285,679

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 net income and diluted earnings per common share before preferred dividends, net income and diluted earnings per common share before preferred dividends and goodwill impairment, pre-provision net revenue, efficiency ratio, and tangible book value (collectively, the “non-GAAP measures”). These non-GAAP measures are measurements of performance that are not prepared in accordance with U.S. generally accepted accounting principles and computational methods may differ from those used by other companies. 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. However, these non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with the Company’s financial statements prepared in accordance with GAAP.

The following table sets forth a GAAP to Non-GAAP reconciliation of financial measures for the quarters and nine 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										Nine Months Ended
		September 30, 2026			June 30, 2026			September 30, 2025				September 30, 2026			September 30, 2025
Net income before preferred dividends and Earnings per common share - diluted before preferred dividends:
Net income (loss) attributable to common stockholders		$	392		$	218		$	(24,633	)		$	1,019		$	(28,070	)
Net (income) loss attributable to participating securities			8			5			-				24			-
Add: Preferred stock dividends			750			750			750				2,250			2,250
Net income before preferred dividends			1,150			973			(23,883	)			3,293			(25,820	)
Add: Goodwill impairment			-			-			25,858				-			25,858
Net income before preferred dividends and goodwill impairment		$	1,150		$	973		$	1,975			$	3,293		$	38
Weighted average common shares outstanding for diluted earnings per common share			8,871,913			8,874,673			8,617,707				8,854,549			8,581,883
Earnings per common share - diluted before preferred dividends		$	0.13		$	0.11		$	0.23			$	0.37		$	0.00
Pre-provision net revenue:
Net interest income		$	9,896		$	9,490		$	8,617			$	28,439		$	24,417
Non-interest income			496			950			422				2,035			1,065
Less: Non-interest expense			8,331			7,476			31,518				23,822			49,237
Pre-provision net revenue		$	2,061		$	2,964		$	(22,479	)		$	6,652		$	(23,755	)

		Three Months Ended																				Nine Months Ended
		September 30, 2026				June 30, 2026				March 31, 2026				December 31, 2025				September 30, 2025				September 30, 2026				September 30, 2025
Efficiency ratio:
Net interest income		$	9,896			$	9,490			$	9,053			$	8,730			$	8,617			$	28,439			$	24,417
Non-interest income			496				950				589				687				422				2,035				1,065
Operating revenue			10,392				10,440				9,642				9,417				9,039				30,474				25,482
Non-interest expense		$	8,331			$	7,476			$	8,015			$	7,946			$	31,518			$	23,822			$	49,237
Efficiency ratio			80.17	%			71.61	%			83.13	%			84.38	%			348.69	%			78.17	%			193.22	%

		September 30, 2026				December 31, 2025
ACL as a percentage of total loans less purchased loans:
Gross loans		$	1,142,654			$	1,026,143
Less: Purchased loans			170,827				75,321
Gross loans less purchased loans			971,827				950,822
ACL			9,964				8,695
ACL as a percentage of total loans less purchased loans			1.03	%			0.91	%

		Common Equity				Shares			Per Share
		Capital				Outstanding			Amount
September 30, 2026
Common book value		$	105,468			9,276,317			$	11.37
Less:
Net unamortized core deposit intangible			1,232
Tangible book value		$	104,236			9,276,317			$	11.24
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

Net income and diluted earnings per common share before preferred dividends and goodwill impairment represent net income and diluted earnings per share adjusted to exclude the impact of preferred stock dividends and goodwill impairment. Net income and diluted earnings per common share before preferred dividends represent net income and 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 stockholders’ 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20261110763704/en/

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

Source: Broadway Financial Corporation

Key Terms

non-gaap financial measures financial

Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.

net interest margin financial

Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.

allowance for credit losses financial

Allowance for credit losses is a reserve set aside by a financial institution to cover potential losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution prepare for loans that might turn sour. For investors, it signals how cautious the institution is about the quality of its loans and potential risks to its financial health.

non-accrual loan financial

A non-accrual loan is a bank loan that has been reclassified so the lender stops recording interest income on an accrual basis because collection of principal or interest is doubtful or the borrower is significantly past due. When a loan is placed on non-accrual, interest previously recognized but not collected is usually reversed and future interest is recorded only when received in cash (or under strict conditions), and the lender must evaluate the loan for impairment and possible loss provisioning. Many regulatory and accounting frameworks set practical triggers (for example, a loan more than 90 days past due or clear evidence of borrower financial difficulty) for placing a loan on non-accrual, but the exact trigger can vary by jurisdiction and loan type.

community bank leverage ratio regulatory

Community bank leverage ratio is a regulatory measure that compares a bank’s core capital (its safety cushion) to the size of its balance sheet, showing what share of assets is backed by tangible equity rather than borrowed money. Investors use it like a health check: a higher ratio means the bank has more buffer to absorb losses, support lending and dividends, and face fewer regulatory limits, while a lower ratio signals greater risk.