Broadway Financial Corporation Announces Results of Operations for First Quarter 2026

Published: 2026-04-28 16:16:04 ET BYFC

Published on 04/28/2026 at 04:16 pm EDT

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:

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

Balance Sheet

Asset Quality

Capital

About Broadway Financial Corporation

Broadway Financial Corporation operates through its wholly-owned banking subsidiary, City First Bank, National Association, which is a leading mission-driven bank that serves low-to-moderate income communities within urban areas in Southern California and the Washington, D.C. market.

City First Bank offers a variety of commercial loan products, services, and depository accounts that support investments in affordable housing, small businesses, and nonprofit community facilities located within low-to-moderate income neighborhoods. City First Bank is a Community Development Financial Institution, Minority Depository Institution, Certified B Corp, and a member of the Global Alliance of Banking on Values. The Bank and the City First network of nonprofits, City First Enterprises, Homes By CFE, and City First Foundation, represent the City First branded family of community development financial institutions, which offer a robust lending and deposit platform.

Cautionary Statement Regarding Forward-Looking Information

This press release includes “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts contained in this press release, including statements regarding our future results of operations or financial condition, business strategy and plans and objectives of management for future operations and capital allocation and structure, are forward-looking statements. Forward‑looking statements typically include the words “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue,” “poised,” “optimistic,” “prospects,” “ability,” “looking,” “forward,” “invest,” “grow,” “improve,” “deliver” and similar expressions, but the absence of such words or expressions does not mean a statement is not forward-looking. These forward‑looking statements are subject to risks and uncertainties, including those identified below, which could cause actual future results to differ materially from historical results or from those anticipated or implied by such statements. The following factors, among others, could cause future results to differ materially from historical results or from those indicated by forward‑looking statements included in this press release: (1) the level of demand for mortgage and commercial loans, which is affected by such external factors as general economic conditions, market interest rate levels, tax laws, and the demographics of our lending markets; (2) the direction and magnitude of changes in interest rates and the relationship between market interest rates and the yield on our interest‑earning assets and the cost of our interest‑bearing liabilities; (3) the rate and amount of credit losses incurred and projected to be incurred by us, increases in the amounts of our nonperforming assets, the level of our loss reserves and management’s judgments regarding the collectability of loans; (4) changes in the regulation of lending and deposit operations or other regulatory actions, whether industry-wide or focused on our operations, including increases in capital requirements or directives to increase allowances for credit losses or make other changes in our business operations; (5) legislative or regulatory changes, including those that may be implemented by the current administration in Washington, D.C. and the Federal Reserve Board; (6) possible adverse rulings, judgments, settlements and other outcomes of litigation; (7) actions undertaken by both current and potential new competitors; (8) the possibility of adverse trends in property values or economic trends in the residential and commercial real estate markets in which we compete; (9) the effect of changes in general economic conditions; (10) the effect of geopolitical uncertainties; (11) the impact of health crises on our future financial condition and operations; (12) the impact of any volatility in the banking sector due to the failure of certain banks due to high levels of exposure to liquidity risk, interest rate risk, uninsured deposits and cryptocurrency risk; (13) the loss of our CDFI certification could potentially limit our grant income awards; and (14) other risks and uncertainties. All such factors are difficult to predict and are beyond our control. Additional factors that could cause results to differ materially from those described above can be found in our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K or other filings made with the SEC and are available on our website at http://www.cityfirstbank.com and on the SEC’s website at http://www.sec.gov.

Forward-looking statements in this press release speak only as of the date they are made, and we undertake no obligation, and do not intend, to update these forward-looking statements to reflect events or circumstances occurring after the date of this press release, except to the extent required by law. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.

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)

March 31, 2026

December 31, 2025

(Unaudited)

Assets:

Cash and due from banks

1,748

1,676

Interest-bearing deposits in other banks

24,858

8,831

Cash and cash equivalents

26,606

10,507

Securities available-for-sale, at fair value (amortized cost of $294,145 and $265,371)

284,103

256,835

Loans receivable held for investment, net of allowance of $9,509 and $9,424

1,059,262

1,016,540

Accrued interest receivable

7,185

5,999

Federal Home Loan Bank (FHLB) stock

999

4,417

Federal Reserve Bank (FRB) stock

3,543

Office properties and equipment, net

8,657

8,732

Bank owned life insurance

23,918

23,663

Deferred tax assets, net

6,781

6,711

Core deposit intangible, net

1,384

1,460

Other assets

4,028

7,162

Total assets

1,426,466

1,345,569

Liabilities and equity

Liabilities:

Deposits

1,073,056

917,603

Securities sold under agreements to repurchase

81,249

80,773

Borrowings

72,000

Accrued expenses and other liabilities

9,088

12,236

Total liabilities

1,163,393

1,082,612

Equity:

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

150,000

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

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

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

Additional paid-in capital

143,520

143,194

Accumulated deficit

(14,428

)

(15,238

)

Unearned Employee Stock Ownership Plan (ESOP) shares

(3,806

)

(3,869

)

Accumulated other comprehensive loss, net of tax

(7,175

)

(6,105

)

Treasury stock-at cost, 327,228 shares at March 31, 2026 and at December 31, 2025

(5,326

)

(5,326

)

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

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

Grants

107

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

Supervisory costs

185

193

Corporate insurance

Amortization of core deposit intangible

Operational loss

1,943

Other expense

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

)

Net income (loss) attributable to Broadway Financial Corporation

1,560

(2,689

)

Less: Preferred stock dividends

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.

For the Three Months Ended

March 31, 2026

March 31, 2025

(Dollars in thousands) (Unaudited)

Average Balance

Interest

Average Yield/Cost

Average Balance

Interest

Average Yield/Cost

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

13,796

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 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

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

264,468

286,437

Total liabilities and equity

1,376,074

1,290,512

Net interest rate spread (3)

9,562

2.18

8,045

1.78

Net interest rate margin (4)

2.91

2.63

133.65

138.52

(1)

Amount includes non-accrual loans.

(2)

(3)

Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.

(4)

Net interest rate margin represents net interest income as a percentage of average interest-earning assets.

BROADWAY FINANCIAL CORPORATION AND SUBSIDIARY

Selected Financial Data and Ratios (Unaudited)

(Dollars in thousands, except per share data)

Three Months Ended

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 Broadway Financial Corporation and Subsidiary 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

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

)

(11

)

Net income (loss) attributable to Broadway Financial Corporation

1,560

1,025

(23,883

)

752

(2,689

)

Less: Preferred stock dividends

750

Net income (loss) attributable to common stockholders

810

275

(24,633

)

(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

84.39

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

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

1,376,074

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

264,468

263,266

286,458

284,141

286,437

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