Broadway Financial (NASDAQ: BYFC) swings to Q1 2026 profit with higher margin
Filing Impact
Filing Sentiment
Form Type
8-K
Broadway Financial Corporation, parent of City First Bank, reported a strong turnaround for the first quarter of 2026. The company generated consolidated net income before preferred dividends of $1.6 million, or $0.09 per diluted share, compared with a net loss of $2.7 million, or ($0.39) per diluted share, a stated improvement of $4.3 million.
Net income attributable to common stockholders was $810 thousand, versus a net loss of $3.4 million a year earlier, an increase of 123.6%. Net interest margin rose to 2.91% from 2.63%, helped by a higher average yield on interest-earning assets and a lower cost of funds.
Loans receivable grew to $1.06 billion and deposits to $1.07 billion as of March 31, 2026. Management highlighted a $72.0 million reduction in borrowings, contributing to margin improvement, while credit quality remained solid with non-accrual loans at 1.07% of total loans and non-performing assets at 0.80% of total assets.
Positive
- Return to profitability: Net income before preferred dividends improved to $1.6 million in Q1 2026 from a $2.7 million loss in Q1 2025, with net income attributable to common stockholders rising to $810 thousand from a $3.4 million loss.
- Margin and funding improvement: Net interest margin increased to 2.91% from 2.63%, supported by a higher 5.08% yield on interest-earning assets, lower 2.91% cost of funds, strong deposit growth to $1.07 billion, and elimination of $72.0 million in borrowings.
- Credit quality and reserve stability: Allowance for credit losses was $9.5 million, non-accrual loans were 1.07% of total loans, and non-performing assets were 0.80% of total assets as of March 31, 2026, indicating solid asset quality metrics alongside growth.
Negative
- None.
Insights
Broadway returns to profitability with stronger margins and funding mix.
Broadway Financial delivered a notable earnings swing in Q1 2026, moving from a net loss of $2.7 million to net income before preferred dividends of $1.6 million. Net income attributable to common stockholders reached $810 thousand versus a $3.4 million loss a year earlier.
Core banking performance improved as net interest income increased to $9.6 million, and net interest margin expanded to 2.91% from 2.63%. Management also reduced borrowings by $72.0 million, lowering interest expense and supporting margin gains while deposits grew to $1.07 billion.
Asset quality metrics remained stable, with non-accrual loans at 1.07% of total loans and non-performing assets at 0.80% of total assets as of March 31, 2026. Future company filings will clarify whether this profitability and margin profile can be sustained as loan and deposit growth continues.
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: $1.6 million
Net income to common stockholders: $810 thousand
Diluted EPS: $0.09 per common share
+5 more
8 metrics
Net income before preferred dividends
$1.6 million
Three months ended March 31, 2026 vs $2.7 million loss in 2025
Net income to common stockholders
$810 thousand
Q1 2026 vs $3.4 million net loss in Q1 2025
Diluted EPS
$0.09 per common share
Three months ended March 31, 2026 vs ($0.39) in 2025
Net interest margin
2.91%
For the first quarter of 2026 vs 2.63% in Q1 2025
Net interest income
$9.6 million
Three months ended March 31, 2026 vs $8.0 million in 2025
Loans receivable, net
$1,059.3 million
Balance sheet as of March 31, 2026
Total deposits
$1,073.1 million
Balance sheet as of March 31, 2026
Allowance for credit losses
$9.5 million
As of March 31, 2026; 0.89% of total loans
Key Terms
net interest margin, allowance for credit losses, non-accrual loans, non-performing assets, +2 more
6 terms
net interest margin financial
"The net interest margin increased to 2.91% for the first quarter of 2026 from 2.63% for the first quarter of 2025"
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"
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
"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.
non-performing assets financial
"non-accrual loans as a percentage of total loans at 1.07% and non-performing assets to total assets of 0.80%"
Loans or other credit exposures that are not producing expected income because borrowers have stopped making scheduled payments for a significant period (commonly around 90 days). Think of it like a business lending money that has gone quiet — the cash flow stops while the lender still carries the debt on its books. High levels of non-performing assets matter to investors because they reduce a lender’s earnings, tie up capital that could be used for growth, and signal higher risk of future losses.
Community Development Financial Institution regulatory
"City First Bank is a Community Development Financial Institution, Minority Depository Institution, Certified B Corp"
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.
efficiency ratio financial
"Efficiency ratio | | | 78.96 % | | | 84.38 % | | | 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.
Earnings Snapshot
Net income before preferred dividends: $1.6 million
Q1 2026
Net income before preferred dividends
$1.6 million
vs $2.7 million loss in Q1 2025
Net income attributable to common stockholders
$810 thousand
vs $3.4 million net loss in Q1 2025
Diluted EPS
$0.09
vs ($0.39) in Q1 2025
Net interest income
$9.6 million
vs $8.0 million in Q1 2025
Net interest margin
2.91%
vs 2.63% in Q1 2025
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
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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(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. ☐
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Results of Operations and Financial Condition.
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On April 28, 2026, Broadway Financial Corporation (the “Company”) issued a press release announcing 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 |
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99.1
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Press Release dated April 28, 2026, announcing results for the quarter ended March 31, 2026.
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104
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The cover page from this Current Report on Form 8-K, 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: April 28, 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
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) – April 28, 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”), reported consolidated net income before preferred dividends of $1.6 million, or $0.09 per diluted share, for the first quarter of 2026, compared to consolidated net loss before preferred dividends of $2.7 million, or ($0.39) per diluted share, for the first
quarter of 2025 representing improvement of $4.3 million.
Net income attributable to common stockholders increased 123.6% to $810 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 for the first quarter of 2026 reflects preferred dividends
of $0.08 per diluted common share compared to $0.09 per diluted loss per common share for the first quarter of 2025.
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 28 basis points to 2.91% 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 14.09% 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 193.5% to $810 thousand compared to the quarter ended December 31, 2025, mainly
driven by a 9.5% 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 28-basis-point improvement in the net interest margin to 2.91% 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 $9.6 million, representing an increase of $1.5 million, or 18.9%, from net interest income of $8.0 million for the first quarter of 2025. The increase resulted from a $1.9 million increase in interest income, primarily 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 and a $679 thousand increase in interest income on loans receivable due to an increase in the average balance of loans receivable.
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 2.91% 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 5.08% 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 $390 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 $5.7
million in pre-tax income between the two periods. The effective tax rate was 20.14% 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 $80.9 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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2
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 $262.9 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 $12.14 at March 31, 2026, compared to $12.28 at December 31, 2025. Capital ratios remain strong with a Community Bank Leverage Ratio of 14.09% 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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Assets:
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Cash and due from banks
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1,748
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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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7,185
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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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Goodwill
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-
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-
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Other assets
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4,028
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7,162
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Total assets
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1,426,466
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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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1,073,056
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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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Secured borrowings
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-
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-
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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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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) retained earnings
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(14,428
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)
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(15,238
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Unearned Employee Stock Ownership Plan (“ESOP”) shares
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(3,806
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(3,869
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Accumulated other comprehensive loss, net of tax
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(7,175
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(6,105
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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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Total Broadway Financial Corporation and Subsidiary equity
|
262,881
|
262,751
|
||||||
|
Non-controlling interest
|
192
|
206
|
||||||
|
Total liabilities and equity
|
1,426,466
|
1,345,569
|
||||||
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)
|
Three Months Ended
|
||||||||
|
March 31,
|
||||||||
|
2026
|
2025
|
|||||||
|
Interest income:
|
||||||||
|
Interest and fees on loans receivable
|
13,796
|
13,117
|
||||||
|
Interest on available-for-sale securities
|
2,613
|
1,208
|
||||||
|
Other interest income
|
309
|
476
|
||||||
|
Total interest income
|
16,718
|
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
|
9,562
|
8,045
|
||||||
|
Provision for credit losses
|
200
|
1,914
|
||||||
|
Net interest income after provision for credit losses
|
9,362
|
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 (recovery)
|
-
|
1,943
|
||||||
|
Goodwill impairment
|
-
|
-
|
||||||
|
Other
|
655
|
639
|
||||||
|
Total non-interest expense
|
8,015
|
10,197
|
||||||
|
Income (loss) before income taxes
|
1,936
|
(3,778
|
)
|
|||||
|
Income tax expense (benefit)
|
390
|
(1,086
|
)
|
|||||
|
Net income (loss)
|
1,546
|
(2,692
|
)
|
|||||
|
Less: Net (loss) income attributable to non-controlling interest
|
(14
|
)
|
(3
|
)
|
||||
|
Net income (loss) attributable to Broadway Financial Corporation
|
1,560
|
(2,689
|
)
|
|||||
|
Less: Preferred stock dividends
|
750
|
750
|
||||||
|
Net income (loss) attributable to common stockholders
|
810
|
(3,439
|
)
|
|||||
|
Earnings (loss) per common share-basic
|
0.09
|
(0.39
|
)
|
|||||
|
Earnings (loss) per common share-diluted
|
0.09
|
(0.39
|
)
|
|||||
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.
6
|
Quarter Ending
|
Quarter Ending
|
|||||||||||||||||||||||
|
31-Mar-26
|
31-Mar-25
|
|||||||||||||||||||||||
|
Average
Balance
|
Interest
|
Average
Yield/Cost
|
Average
Balance
|
Interest
|
Average
Yield/Cost
|
|||||||||||||||||||
|
Assets
|
||||||||||||||||||||||||
|
Interest-earning assets:
|
||||||||||||||||||||||||
|
Interest-bearing 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
|
13,796
|
5.38
|
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
|
16,718
|
5.08
|
1,240,339
|
14,801
|
4.84
|
||||||||||||||||||
|
Non-interest-earning assets
|
42,381
|
50,173
|
||||||||||||||||||||||
|
Total assets
|
1,376,074
|
1,290,512
|
||||||||||||||||||||||
|
|
||||||||||||||||||||||||
|
Liabilities and Stockholders’ 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
|
||||||||||||||||||
|
FHLB Borrowings
|
44,072
|
421
|
3.87
|
149,135
|
1,529
|
4.16
|
||||||||||||||||||
|
Bank Term Funding Program borrowing
|
0
|
0
|
-
|
0
|
0
|
-
|
||||||||||||||||||
|
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
|
||||||||||||||||||||||
|
Stockholders’ equity
|
264,468
|
286,437
|
||||||||||||||||||||||
|
Total liabilities and stockholders’ equity
|
1,376,074
|
1,290,512
|
||||||||||||||||||||||
|
|
0
|
|||||||||||||||||||||||
|
Net interest rate spread (3)
|
9,562
|
2.18
|
8,045
|
1.78
|
||||||||||||||||||||
|
Net interest rate margin (4)
|
2.91
|
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
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
|
1,426,466
|
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 shareholders’ equity
|
262,881
|
262,751
|
261,687
|
284,679
|
283,566
|
|||||||||||||||
|
Profitability for the Quarter:
|
||||||||||||||||||||
|
Interest income
|
16,718
|
16,293
|
15,791
|
14,397
|
14,801
|
|||||||||||||||
|
Interest expense
|
7,156
|
7,563
|
7,174
|
6,642
|
6,756
|
|||||||||||||||
|
Net interest income
|
9,562
|
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
|
1,936
|
1,424
|
(23,158
|
)
|
1,042
|
(3,778
|
)
|
|||||||||||||
|
Income tax expense (benefit)
|
390
|
392
|
736
|
296
|
(1,086
|
)
|
||||||||||||||
|
Net income (loss)
|
1,546
|
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
|
1,560
|
1,025
|
(23,883
|
)
|
752
|
(2,689
|
)
|
|||||||||||||
|
Less: Preferred stock dividends
|
750
|
750
|
750
|
750
|
750
|
|||||||||||||||
|
Net income (loss) attributable to common stockholders
|
810
|
275
|
(24,633
|
)
|
2
|
(3,439
|
)
|
|||||||||||||
|
Financial Performance:
|
||||||||||||||||||||
|
Return on average assets (annualized)
|
0.24
|
%
|
0.08
|
%
|
-7.48
|
%
|
0.00
|
%
|
-1.08
|
%
|
||||||||||
|
Return on average equity (annualized)
|
1.24
|
%
|
0.41
|
%
|
-34.12
|
%
|
0.00
|
%
|
-4.87
|
%
|
||||||||||
|
Net interest margin
|
2.91
|
%
|
2.62
|
%
|
2.72
|
%
|
2.58
|
%
|
2.63
|
%
|
||||||||||
|
Efficiency ratio
|
78.96
|
%
|
84.38
|
%
|
348.69
|
%
|
92.75
|
%
|
122.37
|
%
|
||||||||||
|
|
||||||||||||||||||||
|
Per Share Data:
|
||||||||||||||||||||
|
Book value per share
|
12.14
|
12.28
|
12.17
|
14.65
|
14.47
|
|||||||||||||||
|
Weighted average common shares (basic)
|
8,613,599
|
8,639,459
|
8,617,707
|
8,622,891
|
8,547,460
|
|||||||||||||||
|
Weighted average common shares (diluted)
|
8,832,496
|
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
|
74.92
|
%
|
76.25
|
%
|
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
|
)
|
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
|
1,376,074
|
1,361,026
|
1,306,782
|
1,252,380
|
1,290,512
|
|||||||||||||||
|
Total deposits
|
871,487
|
775,913
|
746,143
|
702,262
|
647,777
|
|||||||||||||||
|
Total equity
|
264,468
|
263,266
|
286,458
|
284,141
|
286,437
|
|||||||||||||||
8
FAQ
How did Broadway Financial Corporation (BYFC) perform in Q1 2026?
Broadway Financial generated net income before preferred dividends of $1.6 million in Q1 2026, versus a $2.7 million loss a year earlier. Net income attributable to common stockholders was $810 thousand, compared with a $3.4 million loss in Q1 2025, reflecting a significant turnaround.
What were Broadway Financial Corporation’s earnings per share for Q1 2026?
For Q1 2026, Broadway Financial reported $0.09 diluted earnings per common share, compared with a diluted loss per share of ($0.39) in Q1 2025. Preferred dividends of $750 thousand equated to $0.08 per diluted common share in Q1 2026.
How did Broadway Financial’s net interest margin change in Q1 2026?
Net interest margin improved to 2.91% in Q1 2026 from 2.63% in Q1 2025. This reflected a higher average rate of 5.08% on interest-earning assets and a lower 2.91% cost of funds, supporting stronger core banking profitability.
What was the status of Broadway Financial Corporation’s loans and deposits at March 31, 2026?
As of March 31, 2026, Broadway Financial reported net loans receivable of $1.06 billion and total deposits of $1.07 billion. Management noted loans grew by $42.7 million and deposits by $155.5 million since December 31, 2025, indicating solid balance sheet growth.
How strong were Broadway Financial Corporation’s asset quality metrics in Q1 2026?
Asset quality remained solid, with the allowance for credit losses at $9.5 million and non-accrual loans at 1.07% of total loans as of March 31, 2026. Non-performing assets represented 0.80% of total assets, while net charge-offs were minimal in the quarter.
What changes did Broadway Financial make to its borrowings and funding costs in Q1 2026?
During Q1 2026, Broadway Financial eliminated $72.0 million in borrowings, reducing total borrowings on the balance sheet to zero. This helped lower interest expense, contributing to net interest income of $9.6 million and improving the net interest margin to 2.91%.