Broadway Financial (NASDAQ: BYFC) corrects loan interest error and returns to Q1 profit
Filing Impact
Filing Sentiment
Form Type
8-K/A
Broadway Financial Corporation filed an amended report to correct an error in how interest on loans was calculated for first-quarter 2026 results. The correction changed reported interest income, net interest margin, and net income, but did not affect cash flows or the underlying economics of its lending arrangements.
For the first quarter of 2026, Broadway reported consolidated net income before preferred dividends of $1.2 million, or $0.13 per diluted share, compared with a net loss of $2.7 million a year earlier. Net income attributable to common stockholders was $409 thousand, or $0.05 per diluted share, versus a loss of $3.4 million in the prior-year quarter.
Loans grew by $42.7 million (4.2%) and deposits rose by $155.5 million (16.9%) since December 31, 2025, while the company eliminated $72.0 million in borrowings. Net interest margin improved to 2.75%, and the allowance for credit losses stood at $9.5 million with non-accrual loans at 1.07% of total loans. Uninsured deposits represented 46% of total deposits as of March 31, 2026.
Positive
- None.
Negative
- None.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Net income before preferred dividends: $1.2 million
Net income attributable to common stockholders: $409 thousand
Diluted EPS to common: $0.05 per share
+5 more
8 metrics
Net income before preferred dividends
$1.2 million
Consolidated, quarter ended March 31, 2026
Net income attributable to common stockholders
$409 thousand
Quarter ended March 31, 2026
Diluted EPS to common
$0.05 per share
Quarter ended March 31, 2026
Net interest margin
2.75%
Quarter ended March 31, 2026
Loan growth since year-end 2025
$42.7 million (4.2%)
Increase in loans since December 31, 2025
Deposit growth since year-end 2025
$155.5 million (16.9%)
Increase in deposits since December 31, 2025
Borrowings eliminated
$72.0 million
Reduction during Q1 2026
Uninsured deposits ratio
46% of total deposits
As of March 31, 2026
Key Terms
net interest margin, allowance for credit losses, non-accrual loans, Community Development Financial Institution, +2 more
6 terms
net interest margin financial
"contributed to a 13-basis-point improvement in the net interest margin to 2.75% compared to the prior quarter."
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
"The allowance for credit losses (“ACL”) increased to $9.5 million as of March 31, 2026, compared to $9.4 million as of December 31, 2025."
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 loans financial
"Credit quality remains strong with non-accrual loans as a percentage of total loans at 1.07% and non-performing assets to total assets of 0.80%."
A non-accrual loan is a loan a lender has decided is unlikely to produce the scheduled interest payments, so the lender stops counting future interest as income and may record the loan at a reduced value. Think of it like renting out a house where the tenant has stopped paying: you stop counting future rent as earnings because it’s uncertain you’ll get it. For investors, a rise in non-accrual loans signals worsening credit quality, lower reported income and higher potential losses that can weaken a bank’s capital and share price.
Community Development Financial Institution financial
"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."
A community development financial institution (CDFI) is a specialized lender—like a neighborhood bank on a mission—that provides loans, investments and basic financial services to underserved people, small businesses and local projects such as affordable housing and community facilities. It matters to investors because CDFIs channel capital into areas mainstream banks avoid, offering access to impact-driven opportunities, potential government support or incentives, and a way to balance financial return with measurable social benefit.
Minority Depository Institution financial
"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."
A minority depository institution is a bank or credit union that is owned by, serves, or predominantly provides credit to historically underserved racial or ethnic minority communities. Think of it as a neighborhood bank focused on a specific community; it can have different customer ties, regulatory support and growth opportunities than a general-purpose lender. Investors care because these institutions can offer unique market access, social impact credentials and exposure to community-driven loan demand and specialized risk profiles.
efficiency ratio financial
"Efficiency ratio | | | 83.13 | % | | | 84.39 | % | | | 348.69 | %"
A measure of how much a company spends to produce each dollar of revenue, usually shown as operating expenses divided by revenue and expressed as a percentage. Think of it as a household’s budget: a lower percentage means more of each dollar earned stays as profit, while a higher number means costs are eating into returns. Investors use it to judge cost control and compare how efficiently companies turn revenue into earnings, especially in banks and financial firms.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K/A
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 28, 2026
(Exact name of registrant as specified in its charter)
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(State or other jurisdiction of incorporation or organization)
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(Commission File Number)
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(I.R.S. Employer Identification Number)
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(Address of principal executive offices)
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(Zip Code)
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Registrant’s telephone number, including area code: (323 ) 634-1700
NOT APPLICABLE
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following
provisions:
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Securities registered pursuant to Section 12(b) of the Act:
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Title of each class
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Trading Symbol(s)
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Name of each exchange on which registered
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Nasdaq Capital Market
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Indicate by check mark whether the registrant is an emerging growth company in as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule
12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised
financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
EXPLANATORY
NOTE
Broadway Financial Corporation (the “Company”) is filing this Amendment No. 1 to Current Report on Form 8-K/A (this “Amendment”) to amend the Current Report on Form
8-K originally filed by the Company with the U.S. Securities and Exchange Commission on April 28, 2026 (the “Original Report”). The purpose of this Amendment is to report revisions to the financial information for the quarter ended March 31, 2026
furnished in Exhibit 99.1 to the Original Report to correct certain previously reported amounts related to interest income on its loan portfolio. The revisions reflect the correction of an error in the calculation of interest on loans, which
resulted in changes to previously reported interest income, net interest margin, and net income. The Company determined that the error did not impact total cash flows or the underlying economics of its lending arrangements.
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Results of Operations and Financial Condition.
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On May 15, 2026, the Company issued a press release announcing revised results for the quarter ended March 31, 2026. A copy of the press release is attached as Exhibit
99.1.
The information set forth in this Current Report, including Exhibit 99.1 attached hereto, is being furnished and shall not be deemed “filed” for purposes of Section 18
of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of such section. The information in this Current Report, including Exhibits 99.1 attached hereto, shall not be incorporated by
reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing to this Current Report.
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Financial Statements and Exhibits.
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| (d) | Exhibits |
| 99.1 |
Press Release dated May 15, 2026, announcing revised results for the quarter ended March 31, 2026.
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The cover page from this Current Report on Form 8-K/A, formatted in Inline XBRL (included as Exhibit 101).
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2
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
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Date: May 15, 2026
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BROADWAY FINANCIAL CORPORATION
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By:
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/s/ Zack Ibrahim
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Name: Zack Ibrahim
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Title: Chief Financial Officer
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3
Exhibit 99.1
News Release
FOR IMMEDIATE RELEASE
Broadway Financial Corporation Announces Results
of Operations for First Quarter 2026
LOS ANGELES, CA – (BUSINESS WIRE) – May 15, 2026 – Broadway Financial Corporation (“Broadway”, “we”, or the “Company”) (NASDAQ: BYFC), parent company of City First
Bank, National Association (the “Bank”, and collectively, with the Company, “City First Broadway”), is announcing revised results of operations for the first quarter of 2026, which correct an error in the calculation of interest on loans in the
results of operations reported in the Company’s press release dated April 28, 2026 and are consistent with the financial information reported in the Company’s Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on May
15, 2026.
The Company reported consolidated net income before preferred dividends of $1.2 million, or $0.13 per
diluted share, for the first quarter of 2026, compared to consolidated net loss before preferred dividends of $2.7 million, or ($0.31) per diluted share, for the first quarter of 2025 representing improvement of $3.9 million.
Net income attributable to common stockholders was $409 thousand during the first quarter of 2026 after deducting preferred dividends of $750 thousand, compared to net
loss attributable to common stockholders of $3.4 million for the first quarter of 2025 after deducting preferred dividends of $750 thousand. Diluted income per common share was $0.05 for the first quarter of 2026, compared to ($0.39) of loss per
diluted common share for the first quarter of 2025. Diluted income per common share for both the first quarter of 2026 and the first quarter of 2025 reflects preferred dividends of $0.09 per diluted common share.
First Quarter 2026 Highlights:
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Total loans increased 4.2%, or $42.7 million, during the first quarter of 2026 compared to December 31, 2025
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Total deposits increased by $155.5 million, or 16.9%, during the first quarter of 2026 compared to December 31, 2025
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The net interest margin increased by 12 basis points to 2.75% for the first quarter of 2026, compared to 2.63% for the first quarter of 2025
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Borrowings were $0 at March 31, 2026 compared to $72.0 million at December 31, 2025, a reduction of $72.0 million, or 100%
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Capital ratios remain strong with a Community Bank Leverage Ratio of 14.06% at March 31, 2026 compared to 14.09% at December 31, 2025
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Credit quality remains strong with non-accrual loans to total loans at 1.07% and non-performing loans to total assets at 0.80%
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Chief Executive Officer, Brian Argrett commented,
“We are very pleased with our strong first quarter of 2026 results and continue to build on this positive momentum. Net income after preferred dividends increased to $409 thousand compared to the quarter ended December 31, 2025, mainly driven by
a 3.7% increase in net interest income from the prior quarter.”
“Loans grew by $42.7 million, or 4.2%, and deposits increased by $155.5 million, or 16.9%, since December 31, 2025, reflecting continued customer growth and deposit
inflows. During the quarter, we further strengthened the balance sheet by eliminating $72.0 million in borrowings, which reduced our cost of funds and contributed to a 13-basis-point improvement in the net interest margin to 2.75% compared to the
prior quarter.”
“We remain focused on building long-term relationships, maintaining a strong and flexible balance sheet while executing our mission-driven objectives. These
priorities allow us to support our customers, local businesses, and low‑to‑moderate income communities while working to deliver sustainable, long‑term performance.”
“As always, I thank our employees for their endless dedication and our stockholders, depositors, and Board of Directors for their ongoing support of our strategy and
mission. Their commitment is essential to our efforts to enhance efficiency and drive disciplined growth.”
Income Statement
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Net Interest Income totaled $9.1 million, representing an increase of $1.0 million, or 12.5%, from net interest income of $8.0 million for the first quarter of 2025. The increase resulted from a $1.4 million increase in interest income, due to a $1.4 million increase in interest income on available-for-sale securities due to an increase in the average balance of
available-for-sale securities and the average rate earned on available-for-sale securities. Further, interest expense on borrowings decreased $1.4 million due to a decrease in the average balance of borrowings. These increases in net
interest income were offset by a $1.8 million increase in interest expense on deposits due an increase in the average balance of deposits and the average rate paid on deposits.
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The net interest margin increased to 2.75% for the first quarter of 2026 from 2.63% for the first quarter of 2025, due to an
increase in the average rate earned on interest-earning assets, which increased to 4.93% for the first quarter of 2026 from 4.84% for the first quarter of 2025, and a decrease in the cost of funds, which decreased to 2.91% for the first quarter of
2026 from 3.06% for the first quarter of 2025.
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Provision for Credit Losses was $200 thousand for the three months ended March 31, 2026, compared to a provision for credit losses of $1.9 million for the three months ended March 31, 2025. This decrease was largely attributed to a reduction in required reserves on individually evaluated loans, as a
specific reserve was recorded on a non‑accrual loan during the first quarter of 2025.
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The allowance for credit losses (“ACL”) increased to $9.5 million as of March 31, 2026, compared to $9.4 million as of December 31, 2025. Credit quality remains strong with non-accrual loans as a percentage
of total loans at 1.07% and non-performing assets to total assets of 0.80% despite the increase in non-accrual loans.
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Non-interest Expense was $8.0 million for the first quarter
of 2026, compared to $10.2 million for the first quarter of 2025, representing a decrease of $2.2 million, or 21.4%. The decrease was primarily due to the $1.9 million
operational loss incurred in the first quarter of 2025 as well as a $398 thousand decrease in compensation and benefits expense.
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Income Tax Expense/Benefit was income tax expense of $282 thousand for the first quarter of 2026 compared to income tax benefit of $1.1 million for the first quarter of 2025. The increase in tax expense reflected an increase of $5.2
million in pre-tax income between the two periods. The effective tax rate was 19.76% for the first quarter of 2026, compared to 28.75% for the first quarter of 2025.
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Balance Sheet
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Total Assets increased by $80.5 million at March 31, 2026,
compared to December 31, 2025, reflecting increases in net loans of $42.7 million, securities available-for-sale of $27.3 million and cash and cash equivalents of $16.1 million. The increases in net loans and securities available-for-sale
were mainly due to purchases of loans and securities available-for-sale.
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Loans Held for Investment, Net of the ACL, increased by
$42.7 million to $1.1 billion at March 31, 2026, compared to $1.0 billion at December 31, 2025. The increase was primarily due to loan purchases.
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Deposits increased by $155.5 million, or 16.9%, to $1.1
billion at March 31, 2026, from $917.6 million at December 31, 2025. The increase in deposits was attributable to increases of $198.1 million in savings deposits and $11.1 million in certificates of deposit accounts, partially offset by
decreases of $48.5 million in liquid deposits (demand, interest checking, and money market accounts), $4.8 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), and $319 thousand 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).
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As of March 31, 2026, our uninsured deposits, including deposits from
City First Bank and other affiliates, represented 46% of our total deposits, compared to 41% as of December 31, 2025. We leverage our long-standing partnership with IntraFi Deposit Solutions to offer
deposit insurance for accounts exceeding the FDIC deposit insurance limit of $250,000.
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Total Borrowings decreased by $72.0 million to $0 at March 31, 2026, from $72.0 million at December 31, 2025, due to paying down FHLB advances.
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Asset Quality
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Allowance for Credit Losses was 0.89% of total loans held
for investment at March 31, 2026, compared to 0.92% at December 31, 2025.
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Nonperforming Assets were $11.5 million at March 31, 2026,
compared to $11.2 million at December 31, 2025.
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Capital
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Stockholders’ equity was $262.5 million, or 18.4% of the
Company’s total assets, at March 31, 2026, compared to $262.8 million, or 19.5% of the Company’s total assets, at December 31, 2025.
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Book Value per Share was $12.10 at March 31, 2026, compared to $12.28 at December 31, 2025. Capital ratios remain strong with a Community Bank Leverage Ratio of 14.06% at March 31, 2026 compared
to 14.09% at December 31,2025.
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About Broadway Financial Corporation
Broadway Financial Corporation operates through its wholly-owned banking subsidiary, City First Bank, National Association, which is
a leading mission-driven bank that serves low-to-moderate income communities within urban areas in Southern California and the Washington, D.C. market.
City First Bank offers a variety of commercial loan products, services, and depository accounts that support investments in
affordable housing, small businesses, and nonprofit community facilities located within low-to-moderate income neighborhoods. City First Bank is a Community Development Financial Institution, Minority Depository Institution, Certified B Corp, and
a member of the Global Alliance of Banking on Values. The Bank and the City First network of nonprofits, City First Enterprises, Homes By CFE, and City First Foundation, represent the City First branded family of
community development financial institutions, which offer a robust lending and deposit platform.
Contacts
Investor Relations
Zack Ibrahim, Chief Financial Officer, (202) 243-7100
Investor.relations@cityfirstbroadway.com
3
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.
4
The following table sets forth the consolidated statements of financial condition as of March 31, 2026 and December 31, 2025.
BROADWAY FINANCIAL CORPORATION
Consolidated Statements of Financial Condition
(In thousands, except share and per share amounts)
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March 31, 2026
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December 31, 2025
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(Unaudited)
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Assets:
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Cash and due from banks
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$
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1,748
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$
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1,676
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Interest-bearing deposits in other banks
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24,858
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8,831
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Cash and cash equivalents
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26,606
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10,507
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Securities available-for-sale, at fair value (amortized cost of $294,145 and $265,371)
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284,103
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256,835
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Loans receivable held for investment, net of allowance of $9,509 and $9,424
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1,059,262
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1,016,540
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Accrued interest receivable
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6,676
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5,999
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Federal Home Loan Bank (FHLB) stock
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999
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4,417
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Federal Reserve Bank (FRB) stock
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3,543
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3,543
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Office properties and equipment, net
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8,657
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8,732
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Bank owned life insurance
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23,918
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23,663
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Deferred tax assets, net
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6,781
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6,711
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Core deposit intangible, net
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1,384
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1,460
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Other assets
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4,136
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7,162
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Total assets
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$
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1,426,065
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$
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1,345,569
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Liabilities and equity
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Liabilities:
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Deposits
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$
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1,073,056
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$
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917,603
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Securities sold under agreements to repurchase
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81,249
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80,773
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Borrowings
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-
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72,000
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Accrued expenses and other liabilities
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9,088
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12,236
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Total liabilities
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1,163,393
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1,082,612
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Equity:
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Non-Cumulative Redeemable Perpetual Preferred stock, Series C; authorized 150,000 shares at March 31,
2026 and December 31, 2025; issued and outstanding 150,000 shares at March 31, 2026 and December 31, 2025; liquidation value $1,000 per share
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150,000
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150,000
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Common stock, Class A, $0.01 par value, voting; authorized 75,000,000 shares at March 31, 2026 and
December 31, 2025; issued 6,528,211 shares at March 31, 2026 and 6,409,760 shares at December 31, 2025; outstanding 6,200,983 shares at March 31, 2026 and 6,082,532 shares at December 31, 2025
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65
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64
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Common stock, Class B, $0.01 par value, non-voting; authorized 15,000,000 shares at March 31, 2026
and December 31, 2025; issued and outstanding 1,425,404 shares at March 31, 2026 and December 31, 2025
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14
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14
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Common stock, Class C, $0.01 par value, non-voting; authorized 25,000,000 shares at March 31, 2026
and December 31, 2025; issued and outstanding 1,672,562 at March 31, 2026 and December 31, 2025
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17
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17
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Additional paid-in capital
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143,520
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143,194
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Accumulated deficit
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(14,829
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)
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(15,238
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)
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Unearned Employee Stock Ownership Plan (ESOP) shares
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(3,806
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)
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(3,869
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)
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Accumulated other comprehensive loss, net of tax
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(7,175
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)
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(6,105
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)
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Treasury stock-at cost, 327,228 shares at March 31, 2026 and at December 31, 2025
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(5,326
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)
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(5,326
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)
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Total Broadway Financial Corporation and Subsidiary equity
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262,480
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262,751
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Non-controlling interest
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192
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206
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Total liabilities and equity
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$
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1,426,065
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$
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1,345,569
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5
The following table sets forth the consolidated statements of operations for the three months ended March 31, 2026 and 2025.
BROADWAY FINANCIAL CORPORATION
Consolidated Statements of Operations
(In thousands, except share and per share amounts)
(Unaudited)
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Three Months Ended
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March 31,
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2026
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2025
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|
|
||
|
Interest income:
|
|
|
|
|
|
|
||
|
Interest and fees on loans receivable
|
|
$
|
13,287
|
|
|
$
|
13,117
|
|
|
Interest on available-for-sale securities
|
|
|
2,613
|
|
|
|
1,208
|
|
|
Other interest income
|
|
|
309
|
|
|
|
476
|
|
|
Total interest income
|
|
|
16,209
|
|
|
|
14,801
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense:
|
|
|
|
|
|
|
|
|
|
Interest on deposits
|
|
|
5,990
|
|
|
|
4,199
|
|
|
Interest on borrowings
|
|
|
1,166
|
|
|
|
2,557
|
|
|
Total interest expense
|
|
|
7,156
|
|
|
|
6,756
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
|
|
|
9,053
|
|
|
|
8,045
|
|
|
Provision for credit losses
|
|
|
200
|
|
|
|
1,914
|
|
|
Net interest income after provision for credit losses
|
|
|
8,853
|
|
|
|
6,131
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest income:
|
|
|
|
|
|
|
|
|
|
Service charges
|
|
|
44
|
|
|
|
43
|
|
|
Grants
|
|
|
107
|
|
|
|
25
|
|
|
Other
|
|
|
438
|
|
|
|
220
|
|
|
Total non-interest income
|
|
|
589
|
|
|
|
288
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest expense:
|
|
|
|
|
|
|
|
|
|
Compensation and benefits
|
|
|
4,886
|
|
|
|
5,284
|
|
|
Occupancy expense
|
|
|
508
|
|
|
|
540
|
|
|
Information services
|
|
|
940
|
|
|
|
706
|
|
|
Professional services
|
|
|
586
|
|
|
|
700
|
|
|
Advertising and promotional expense
|
|
|
124
|
|
|
|
46
|
|
|
Supervisory costs
|
|
|
185
|
|
|
|
193
|
|
|
Corporate insurance
|
|
|
55
|
|
|
|
67
|
|
|
Amortization of core deposit intangible
|
|
|
76
|
|
|
|
79
|
|
|
Operational loss
|
|
|
-
|
|
|
|
1,943
|
|
|
Other expense
|
|
|
655
|
|
|
|
639
|
|
|
Total non-interest expense
|
|
|
8,015
|
|
|
|
10,197
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income taxes
|
|
|
1,427
|
|
|
|
(3,778
|
)
|
|
Income tax expense (benefit)
|
|
|
282
|
|
|
|
(1,086
|
)
|
|
Net income (loss)
|
|
$
|
1,145
|
|
|
$
|
(2,692
|
)
|
|
Less: Net (loss) income attributable to non-controlling interest
|
|
|
(14
|
)
|
|
|
(3
|
)
|
|
Net income (loss) attributable to Broadway Financial Corporation
|
|
$
|
1,159
|
|
|
$
|
(2,689
|
)
|
|
Less: Preferred stock dividends
|
|
|
750
|
|
|
|
750
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to common stockholders
|
|
$
|
409
|
|
|
$
|
(3,439
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per common share-basic
|
|
$
|
0.05
|
|
|
$
|
(0.39
|
)
|
|
Earnings (loss) per common share-diluted
|
|
$
|
0.05
|
|
|
$
|
(0.39
|
)
|
6
The following table sets 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
|
|||||||||||||||||||||||
|
|
March 31, 2026
|
March 31, 2025
|
||||||||||||||||||||||
|
|
(Dollars in thousands) (Unaudited)
|
|||||||||||||||||||||||
|
|
Average
Balance
|
Interest
|
Average Yield
|
Average Balance
|
Interest
|
Average Yield
|
||||||||||||||||||
|
Assets
|
||||||||||||||||||||||||
|
Interest-earning assets:
|
||||||||||||||||||||||||
|
Interest-earning deposits
|
$
|
22,560
|
$
|
201
|
3.61
|
%
|
$
|
28,958
|
$
|
312
|
4.37
|
%
|
||||||||||||
|
Securities
|
265,415
|
2,613
|
3.99
|
% |
196,463
|
1,208
|
2.49
|
%
|
||||||||||||||||
|
Loans receivable (1)
|
1,039,076
|
13,287
|
5.19
|
% |
1,003,730
|
13,117
|
5.30
|
%
|
||||||||||||||||
|
FRB and FHLB stock (2)
|
6,642
|
108
|
6.59
|
% |
11,188
|
164
|
5.94
|
%
|
||||||||||||||||
|
Total interest-earning assets
|
1,333,693
|
$
|
16,209
|
4.93
|
% |
1,240,339
|
$
|
14,801
|
4.84
|
%
|
||||||||||||||
|
Non-interest-earning assets
|
42,377
|
50,173
|
||||||||||||||||||||||
|
Total assets
|
$
|
1,376,070
|
$
|
1,290,512
|
||||||||||||||||||||
|
|
||||||||||||||||||||||||
|
Liabilities and Equity
|
||||||||||||||||||||||||
|
Interest-bearing liabilities:
|
||||||||||||||||||||||||
|
Money market deposits
|
$
|
191,248
|
$
|
1,047
|
2.22
|
%
|
$
|
119,101
|
$
|
257
|
0.88
|
%
|
||||||||||||
|
Savings deposits
|
102,463
|
631
|
2.50
|
% |
48,712
|
68
|
0.57
|
%
|
||||||||||||||||
|
Interest checking and other demand deposits
|
264,446
|
1,619
|
2.48
|
% |
255,647
|
1,911
|
3.03
|
%
|
||||||||||||||||
|
Certificate accounts
|
313,330
|
2,693
|
3.49
|
% |
224,317
|
1,963
|
3.55
|
%
|
||||||||||||||||
|
Total deposits
|
871,487
|
5,990
|
2.79
|
% |
647,777
|
4,199
|
2.63
|
%
|
||||||||||||||||
|
Borrowings
|
44,072
|
421
|
3.87
|
% |
149,135
|
1,529
|
4.16
|
%
|
||||||||||||||||
|
Other borrowings
|
82,359
|
745
|
3.67
|
% |
98,525
|
1,028
|
4.23
|
%
|
||||||||||||||||
|
Total borrowings
|
126,431
|
1,166
|
3.74
|
% |
247,660
|
2,557
|
4.19
|
%
|
||||||||||||||||
|
Total interest-bearing liabilities
|
997,918
|
$
|
7,156
|
2.91
|
% |
895,437
|
$
|
6,756
|
3.06
|
%
|
||||||||||||||
|
Non-interest-bearing liabilities
|
113,688
|
108,638
|
||||||||||||||||||||||
|
Equity
|
264,464
|
286,437
|
||||||||||||||||||||||
|
Total liabilities and equity
|
$
|
1,376,070
|
$
|
1,290,512
|
||||||||||||||||||||
|
|
||||||||||||||||||||||||
|
Net interest rate spread (3)
|
$
|
9,053
|
2.02
|
% |
$
|
8,045
|
1.78
|
%
|
||||||||||||||||
|
Net interest rate margin (4)
|
2.75
|
% |
2.63
|
%
|
||||||||||||||||||||
|
Ratio of interest-earning assets to interest-bearing liabilities
|
133.65
|
% |
138.52
|
%
|
||||||||||||||||||||
|
(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.
|
7
The following table sets forth selected financial data and ratios for the quarters noted below.
BROADWAY FINANCIAL CORPORATION AND SUBSIDIARY
Selected Financial Data and Ratios (Unaudited)
(Dollars in thousands, except per share data)
| Three Months Ended | ||||||||||||||||||||
|
|
March 31, 2026
|
December 31, 2025
|
September 30, 2025
|
June 30, 2025
|
March 31, 2025
|
|||||||||||||||
|
|
||||||||||||||||||||
|
Balance Sheets at Quarter End:
|
||||||||||||||||||||
|
Total gross loans
|
1,068,771
|
1,025,964
|
1,023,483
|
986,944
|
1,001,847
|
|||||||||||||||
|
Allowance for credit losses
|
9,509
|
9,424
|
10,339
|
9,880
|
10,260
|
|||||||||||||||
|
Investment securities
|
284,103
|
256,835
|
244,005
|
177,977
|
185,938
|
|||||||||||||||
|
Total assets
|
1,426,065
|
1,345,569
|
1,335,565
|
1,247,517
|
1,258,776
|
|||||||||||||||
|
Total deposits
|
1,073,056
|
917,603
|
849,205
|
798,922
|
776,543
|
|||||||||||||||
|
Total Broadway Financial Corporation and Subsidiary equity
|
262,480
|
262,751
|
261,687
|
284,679
|
283,566
|
|||||||||||||||
|
|
||||||||||||||||||||
|
Profitability for the Quarter:
|
||||||||||||||||||||
|
Interest income
|
16,209
|
16,293
|
15,791
|
14,397
|
14,801
|
|||||||||||||||
|
Interest expense
|
7,156
|
7,563
|
7,174
|
6,642
|
6,756
|
|||||||||||||||
|
Net interest income
|
9,053
|
8,730
|
8,617
|
7,755
|
8,045
|
|||||||||||||||
|
Provision for (recovery of) credit losses
|
200
|
47
|
679
|
(454
|
)
|
1,914
|
||||||||||||||
|
Non-interest income
|
589
|
687
|
422
|
355
|
288
|
|||||||||||||||
|
Non-interest expenses
|
8,015
|
7,946
|
31,518
|
7,522
|
10,197
|
|||||||||||||||
|
Income (loss) before income taxes
|
1,427
|
1,424
|
(23,158
|
)
|
1,042
|
(3,778
|
)
|
|||||||||||||
|
Income tax expense (benefit)
|
282
|
392
|
736
|
296
|
(1,086
|
)
|
||||||||||||||
|
Net income (loss)
|
1,145
|
1,032
|
(23,894
|
)
|
746
|
(2,692
|
)
|
|||||||||||||
|
Less: Net (loss) income attributable to non-controlling interest
|
(14
|
)
|
7
|
(11
|
)
|
(6
|
)
|
(3
|
)
|
|||||||||||
|
Net income (loss) attributable to Broadway Financial Corporation
|
1,159
|
1,025
|
(23,883
|
)
|
752
|
(2,689
|
)
|
|||||||||||||
|
Less: Preferred stock dividends
|
750
|
750
|
750
|
750
|
750
|
|||||||||||||||
|
Net income (loss) attributable to common stockholders
|
409
|
275
|
(24,633
|
)
|
2
|
(3,439
|
)
|
|||||||||||||
|
|
||||||||||||||||||||
|
Financial Performance:
|
||||||||||||||||||||
|
Return on average assets (annualized)
|
0.12
|
%
|
0.08
|
%
|
(7.48
|
)%
|
0.00
|
%
|
(1.08
|
)%
|
||||||||||
|
Return on average equity (annualized)
|
0.63
|
%
|
0.41
|
%
|
(34.12
|
)%
|
0.00
|
%
|
(4.87
|
)%
|
||||||||||
|
Net interest margin
|
2.75
|
%
|
2.62
|
%
|
2.72
|
%
|
2.58
|
%
|
2.63
|
%
|
||||||||||
|
Efficiency ratio
|
83.13
|
%
|
84.39
|
%
|
348.69
|
%
|
92.75
|
%
|
122.37
|
%
|
||||||||||
|
|
||||||||||||||||||||
|
Per Share Data:
|
||||||||||||||||||||
|
Book value per share
|
12.10
|
12.28
|
12.17
|
14.65
|
14.47
|
|||||||||||||||
|
Weighted average common shares (basic)
|
8,597,291
|
8,639,459
|
8,617,707
|
8,622,891
|
8,547,460
|
|||||||||||||||
|
Weighted average common shares (diluted)
|
8,816,188
|
8,639,459
|
8,617,707
|
8,808,467
|
8,547,460
|
|||||||||||||||
|
Common shares outstanding at end of period
|
9,298,949
|
9,180,498
|
9,180,760
|
9,195,909
|
9,231,180
|
|||||||||||||||
|
|
||||||||||||||||||||
|
Financial Measures:
|
||||||||||||||||||||
|
Loans to assets
|
74.95
|
%
|
79.25
|
%
|
76.63
|
%
|
79.11
|
%
|
79.59
|
%
|
||||||||||
|
Loans to deposits
|
99.60
|
%
|
111.81
|
%
|
120.52
|
%
|
123.53
|
%
|
129.01
|
%
|
||||||||||
|
Allowance for credit losses to total loans
|
0.89
|
%
|
0.92
|
%
|
1.01
|
%
|
1.00
|
%
|
1.02
|
%
|
||||||||||
|
Allowance for credit losses to total nonperforming loans
|
82.97
|
%
|
84.38
|
%
|
76.36
|
%
|
182.02
|
%
|
201.85
|
%
|
||||||||||
|
Non-accrual loans to total loans
|
1.07
|
%
|
1.09
|
%
|
1.32
|
%
|
0.55
|
%
|
0.51
|
%
|
||||||||||
|
Nonperforming loans to total assets
|
0.80
|
%
|
0.83
|
%
|
1.01
|
%
|
0.44
|
%
|
0.40
|
%
|
||||||||||
|
Net charge-offs (annualized) to average total loans
|
-
|
0.11
|
%
|
-
|
-
|
-
|
||||||||||||||
|
|
||||||||||||||||||||
|
Average Balance Sheets:
|
||||||||||||||||||||
|
Total loans
|
1,039,076
|
1,050,757
|
993,090
|
989,861
|
1,003,730
|
|||||||||||||||
|
Investment securities
|
265,415
|
246,662
|
206,224
|
182,351
|
196,463
|
|||||||||||||||
|
Total assets
|
1,376,070
|
1,361,026
|
1,306,782
|
1,252,380
|
1,290,512
|
|||||||||||||||
|
Total interest-bearing deposits
|
871,487
|
775,913
|
746,143
|
702,262
|
647,777
|
|||||||||||||||
|
Total equity
|
264,464
|
263,266
|
286,458
|
284,141
|
286,437
|
|||||||||||||||
8
FAQ
What change did Broadway Financial (BYFC) disclose in this amended 8-K?
Broadway Financial corrected an error in how interest on loans was calculated for first-quarter 2026 results. The revision changed reported interest income, net interest margin, and net income but did not affect cash flows or lending economics.
How did Broadway Financial’s Q1 2026 net income compare to Q1 2025?
Broadway Financial earned net income before preferred dividends of $1.2 million in Q1 2026, versus a $2.7 million net loss in Q1 2025. Net income attributable to common stockholders improved from a $3.4 million loss to $409 thousand profit.
What were Broadway Financial’s Q1 2026 earnings per share?
Diluted income per common share was $0.05 for the first quarter of 2026. This compares with a diluted loss per common share of $0.39 for the first quarter of 2025, with preferred dividends equal to $0.09 per diluted share in both periods.
How did Broadway Financial’s loans and deposits change in Q1 2026?
Since December 31, 2025, loans grew by $42.7 million, or 4.2%, and deposits increased by $155.5 million, or 16.9%. These changes reflect customer growth, deposit inflows, and support the company’s mission-driven lending strategy.
What happened to Broadway Financial’s borrowings and net interest margin in Q1 2026?
Broadway Financial eliminated $72.0 million in borrowings during Q1 2026, which helped reduce its cost of funds. Net interest margin improved to 2.75% in the quarter, up from 2.63% in the comparable quarter of 2025.
What is the credit quality picture for Broadway Financial as of March 31, 2026?
The allowance for credit losses was $9.5 million as of March 31, 2026. Non-accrual loans were 1.07% of total loans, and non-performing assets were 0.80% of total assets, indicating generally strong reported credit quality metrics.
How much of Broadway Financial’s deposits were uninsured at March 31, 2026?
Uninsured deposits, including deposits from City First Bank and affiliates, represented 46% of total deposits at March 31, 2026. The company uses IntraFi Deposit Solutions to provide insurance coverage for certain large accounts above FDIC limits.