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Broadway Financial Corp

Broadway Financial Corporation Announces Results of Operations for Second Quarter 2025

LOS ANGELES , July 31, 2025 /PRNewswire/ -- 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 $603 thousand, or $0.07 per diluted share, for the second quarter of 2025, compared to consolidated net income of $269 thousand, or $0.03 per diluted share, for the second quarter of 2024. Net loss attributable to common stockholders was $147 thousand during the second quarter of 2025 after deducting preferred dividends of $750 thousand, compared to net income attributable to common stockholders of $269 thousand for the second quarter of 2024.  Diluted loss per common share was ($0.02) for the second quarter of 2025, compared to $0.03 of income per diluted common share for the second quarter of 2024.  Diluted loss per common share for the second quarter of 2025 reflects preferred dividends of $0.09 per diluted common share.

For the first six months of 2025, the Company reported consolidated net loss before preferred dividends of $1.3 million, or ($0.15) per diluted share, compared to consolidated net income before preferred dividends of $105 thousand, or $0.01 per diluted share, for the first six months of 2024. Net loss attributable to common stockholders was $2.8 million during the first six months of 2025 after deducting preferred dividends of $1.5 million, compared to net income attributable to common stockholders of $105 thousand for the first six months of 2024.  Diluted loss per common share was ($0.32) for the first six months of 2025, compared to $0.01 per diluted common share for the first six months of 2024.  Diluted loss per common share for the first six months of 2025 reflects preferred dividends of $0.18 per diluted common share.

Second Quarter 2025 Highlights:

  • The net interest margin increased by 22 basis points to 2.63% for the second quarter of 2025, compared to 2.41% for the second quarter of 2024. This increase was driven largely by growth in the yield on average loan balances and a reduction in the cost of interest-bearing liabilities
  • Total deposits increased by $53.5 million, or 7.2%, during the first six months of 2025 compared to December 31, 2024
  • Capital ratios remain strong with a Community Bank Leverage Ratio of 15.69% at June 30, 2025 compared to 13.96% at December 31, 2024
  • Credit quality remains strong with non-accrual loans to total loans at 0.42% and non-performing loans to total assets at 0.36%
  • Borrowings were $69.2 million at June 30, 2025 compared to $195.5 million at December 31, 2024, a reduction of $126.3 million, or 64.6%

Chief Executive Officer, Brian Argrett commented, "We had a favorable second quarter of 2025, and continue to build on this positive momentum.  Deposits grew by 2.9%, or $22.4 million, since March 31, 2025 and 7.18%, or $53.5 million, this year.  We reduced borrowings by $126.3 million to $69.2 million as of June 30, 2025 resulting in lower cost of funds.  The net interest margin was 2.63% for the three months ended June 30, 2025, which is an improvement of 22 basis points compared to the same three-month period of last year." 

"Our results for the second quarter of 2025 were positively impacted by a reduction in non-interest expense of 26.23%, or $2.7 million, since last quarter, mainly due to the operational loss associated with the $1.9 million fraudulent wire during the first quarter, which will result in a corresponding gain if recovered.  In addition, our second quarter financial results were positively impacted by a reduction in the provision for loan losses of $266 thousand, mainly due to a decrease in loans."

"We remain focused on executing our strategic goals and mission objectives, building a stronger balance sheet and improving profitability in order to drive long-term performance that will help support growth in the low-to-moderate income communities within our markets." 

"As always, I thank our employees for their endless dedication and our stockholders, depositors, and board for their continued support of our strategy and mission.  Your support and efforts are essential in our ability to improve our efficiency and promote growth."

Income Statement

  • Net Interest Income before provision for credit losses for the second quarter of 2025 totaled $7.8 million, representing a decrease of $163 thousand, or 2.1%, from net interest income before provision for credit losses of $7.9 million for the second quarter of 2024. The decrease resulted from a $1.3 million decrease in interest income, primarily due to a decrease in interest on interest-bearing deposits, as a result of a decrease in the average balance of interest-bearing deposits, as well as a decline in interest income on available-for-sale securities due to a decrease in the average balance of available-for-sale securities. These decreases were partially offset by a $1.1 million decrease in interest expense due to a decline in interest on borrowings as a result of a decrease in the average balance of borrowings. The Company reduced borrowings to improve the net interest margin and to support capacity for future loan growth.

    The net interest margin increased to 2.63% for the second quarter of 2025 from 2.41% for the second quarter of 2024, due to an increase in the average rate earned on interest-earning assets, which increased to 4.83% for the second quarter of 2025 from 4.71% for the second quarter of 2024, and a decrease in the cost of funds, which decreased to 3.07% for the second quarter of 2025 from 3.19% for the second quarter of 2024.

    Net Interest Income before provision for credit losses for the first six months of 2025 totaled $15.8 million, representing an increase of $358 thousand, or 2.3%, from net interest income before provision for credit losses of $15.4 million for the first six months of 2024. The increase resulted from a $2.0 million decrease in interest expense due to a decline in interest on borrowings as a result of a decrease in the average balance of borrowings. The Company reduced borrowings to improve the net interest margin and to support capacity for future loan growth. This increase was partially offset by a $1.7 million decrease in interest income, primarily due to a decrease in interest on interest-bearing deposits, as a result of a decrease in the average balance of interest-bearing deposits, as well as a decline in interest income on available-for-sale securities due to a decrease in the average balance of available-for-sale securities.

    The net interest margin increased to 2.67% for the first six months of 2025 from 2.34% for the first six months of 2024, due to an increase in the average rate earned on interest-earnings assets, which increased to 4.83% for the first six months of 2025 from 4.59% for the first six months of 2024, and a decrease in the cost of funds, which decreased to 3.02% for the first six months of 2025 from 3.11% for the first six months of 2024.

  • Recapture of/Provision for Credit Losses resulted in a recapture of credit losses of $266 thousand for the three months ended June 30, 2025, compared to a provision for credit losses of $494 thousand for the three months ended June 30, 2024. This recapture was mainly due to the decrease in loans.

    The Provision for Credit Losses was $423 thousand for the six months ended June 30, 2025, compared to $754 thousand for the six months ended June 30, 2024. There were no loan charge-offs recorded during the six months ended June 30, 2025 or 2024.

    The allowance for credit losses ("ACL") increased to $8.6 million as of June 30, 2025, compared to $8.1 million as of December 31, 2024. The Bank had four non-accrual loans at June 30, 2025 with an unpaid principal balance of $4.0 million. Credit quality remains strong with non-accrual loans as a percentage of total loans at 0.42% and non-performing assets to total assets of 0.36% despite the increase in non-accrual loans.

  • Non-interest Expense was $7.5 million for the second quarter of 2025, compared to $7.3 million for the second quarter of 2024, representing an increase of $242 thousand, or 3.3%. The increase was primarily due to increases of $224 thousand in professional services and $112 thousand in information services, partially offset by a $60 thousand decrease in supervisory costs and a $57 thousand decrease in compensation and benefits expense.

    Non-interest Expense was $17.7 million for the first six months of 2025, compared to $15.1 million for the first six months of 2024, representing an increase of $2.6 million, or 17.4%. The increase was primarily due to a $1.9 million loss incurred from wire fraud, which will result in a gain if recovered, as well as an $830 thousand increase in compensation and benefits expense. The increase in compensation and benefits expense was primarily attributable to the addition of full-time employees during 2024 in various production and administrative positions as part of the Bank's efforts to expand its operational capabilities to grow its balance sheet. These increases were partially offset by a $485 thousand decrease in professional services expense.

  • Income Tax Expense was $257 thousand for the second quarter of 2025 compared to $146 thousand for the second quarter of 2024. The increase in tax expense reflected an increase of $437 thousand in pre-tax income between the two periods. The effective tax rate was 30.09% for the second quarter of 2025, compared to 35.01% for the second quarter of 2024.

    The Company recorded an income tax benefit of $435 thousand for the first six months of 2025 and income tax expense of $89 thousand for the first six months of 2024. The decrease in tax expense reflected a decrease of $1.9 million in pre-tax income between the two periods. The effective tax rate was 25.60% for the first six months of 2025, compared to 50.28% for the first six months of 2024.

Balance Sheet

  • Total Assets decreased by $76.3 million at June 30, 2025, compared to December 31, 2024, reflecting decreases in cash and cash equivalents of $31.9 million, securities available-for-sale of $25.9 million, net loans of $11.6 million and FHLB stock of $5.9 million. The reduction in securities available-for-sale was mainly due to maturities and paydowns, and the cash from the securities in addition to the cash on hand was used to reduce borrowings, leading to the decrease in stock held with FHLB.

  • Loans Held for Investment, Net of the ACL, decreased by $11.6 million to $957.3 million at June 30, 2025, compared to $968.9 million at December 31, 2024. The decrease was primarily due to loan payoffs and repayments.

  • Deposits increased by $53.5 million, or 7.2%, to $798.9 million at June 30, 2025, from $745.4 million at December 31, 2024. The increase in deposits was attributable to an increase of $67.7 million in certificates of deposit accounts, partially offset by decreases of $4.5 million in savings deposits, $3.5 million 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), $3.3 million in liquid deposits (demand, interest checking, and money market accounts), and $2.9 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). As of June 30, 2025, our uninsured deposits, including deposits from City First Bank and other affiliates, represented 35% of our total deposits, compared to 32% as of December 31, 2024. We leverage our long-standing partnership with IntraFi Deposit Solutions to offer deposit insurance for accounts exceeding the FDIC deposit insurance limit of $250,000.

  • Total Borrowings decreased by $129.1 million to $133.0 million at June 30, 2025, from $262.1 million at December 31, 2024, primarily due to a $135.3 million decrease in FHLB advances, partially offset by a $9.2 million increase in secured borrowings related to participation loans.

Asset Quality

  • Allowance for Credit Losses was 0.89% of total loans held for investment at June 30, 2025, compared to 0.83% at December 31, 2024.

  • Nonperforming Assets were $4.4 million at June 30, 2025, compared to $264 thousand at December 31, 2024.

Capital

  • Stockholders' equity was $285.5 million, or 23.3% of the Company's total assets, at June 30, 2025, compared to $285.2 million, or 21.9% of the Company's total assets, at December 31, 2024.

  • Book Value per Share was $14.74 at June 30, 2025, compared to $14.82 at December 31, 2024. Capital ratios remain strong with a Community Bank Leverage Ratio of 15.69% at June 30, 2025 compared to 13.96% at December 31,2024.

About Broadway Financial Corporation

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

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

Contacts

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

Cautionary Statement Regarding Forward-Looking Information

This press release includes "forward-looking statements" within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995.  All statements other than statements of historical facts contained in this press release, including statements regarding our future results of operations or financial condition, business strategy and plans and objectives of management for future operations and capital allocation and structure, are forward-looking statements.  Forward‑looking statements typically include the words "expect," "estimate," "project," "budget," "forecast," "anticipate," "intend," "plan," "may," "will," "could," "should," "believes," "predicts," "potential," "continue," "poised," "optimistic," "prospects," "ability," "looking," "forward," "invest," "grow," "improve," "deliver" and similar expressions, but the absence of such words or expressions does not mean a statement is not forward-looking.  These forward‑looking statements are subject to risks and uncertainties, including those identified below, which could cause actual future results to differ materially from historical results or from those anticipated or implied by such statements.  The following factors, among others, could cause future results to differ materially from historical results or from those indicated by forward‑looking statements included in this press release: (1) the level of demand for mortgage and commercial loans, which is affected by such external factors as general economic conditions, market interest rate levels, tax laws, and the demographics of our lending markets; (2) the direction and magnitude of changes in interest rates and the relationship between market interest rates and the yield on our interest‑earning assets and the cost of our interest‑bearing liabilities; (3) the rate and amount of loan losses incurred and projected to be incurred by us, increases in the amounts of our nonperforming assets, the level of our loss reserves and management's judgments regarding the collectability of loans; (4) changes in the regulation of lending and deposit operations or other regulatory actions, whether industry-wide or focused on our operations, including increases in capital requirements or directives to increase allowances for loan losses or make other changes in our business operations; (5) legislative or regulatory changes, including those that may be implemented by the current administration in 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; and (13) 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 June 30, 2025 and December 31, 2024.

BROADWAY FINANCIAL CORPORATION

 Consolidated Statements of Financial Condition

 (In thousands, except share and per share amounts)


June 30, 2025

December 31, 2024


(Unaudited)


Assets:



Cash and due from banks

$                       1,955

$                      2,255

Interest-bearing deposits in other banks

27,559

59,110

Cash and cash equivalents

29,514

61,365

Securities available-for-sale, at fair value (amortized cost of $190,030 and $219,658)

177,977

203,862

Loans receivable held for investment, net of allowance of $8,582 and $8,103

957,293

968,861

Accrued interest receivable

5,109

5,001

Federal Home Loan Bank (FHLB) stock

3,761

9,637

Federal Reserve Bank (FRB) stock

3,543

3,543

Office properties and equipment, net

8,721

8,899

Bank owned life insurance

3,343

3,321

Deferred tax assets, net

8,268

8,803

Core deposit intangible, net

1,618

1,775

Goodwill

25,858

25,858

Other assets

2,387

2,786

Total assets

$             1,227,392

$             1,303,711

Liabilities and stockholders' equity



Liabilities:



Deposits

$                   798,922

$                  745,399

Securities sold under agreements to repurchase

63,786

66,610

Borrowings

69,217

195,532

Accrued expenses and other liabilities

9,712

10,794

Total liabilities

941,637

1,018,335

Stockholders' equity:



 

Non-Cumulative Redeemable Perpetual Preferred stock, Series C; authorized 150,000 shares at

June 30, 2025 and December 31, 2024; issued and outstanding 150,000 shares at

June 30, 2025 and December 31, 2024; liquidation value $1,000 per share

 

 

 

150,000

 

 

 

150,000

Common stock, Class A, $0.01 par value, voting; authorized 75,000,000 shares at

June 30, 2025 and December 31, 2024; issued 6,425,001 shares at June 30, 2025 and

6,349,455 shares at December 31, 2024; outstanding 6,097,773 shares at June 30, 2025

and 6,022,227 shares at December 31, 2024

 

 

 

64

 

 

 

63

Common stock, Class B, $0.01 par value, non-voting; authorized 15,000,000 shares at

June 30, 2025 and December 31, 2024; issued and outstanding 1,425,574 shares at

June 30, 2025 and December 31, 2024

                          

 

14

         

                  

14

Common stock, Class C, $0.01 par value, non-voting; authorized 25,000,000 shares at

June 30, 2025 and December 31, 2024; issued and outstanding 1,672,562 at

June 30, 2025 and December 31, 2024

                          

 

   

17

                

         

 

17

Additional paid-in capital

143,266

142,902

Retained earnings

10,156

12,911

Unearned Employee Stock Ownership Plan (ESOP) shares

(4,089)

(4,201)

Accumulated other comprehensive loss, net of tax

(8,557)

(11,223)

Treasury stock-at cost, 327,228 shares at June 30, 2025 and at December 31, 2024

(5,326)

(5,326)

Total Broadway Financial Corporation and Subsidiary stockholders' equity

285,545

285,157

Non-controlling interest

210

219

Total liabilities and stockholders' equity

$             1,227,392

$             1,303,711

The following table sets forth the consolidated statements of operations for the three and six months ended June 30, 2025 and 2024.

BROADWAY FINANCIAL CORPORATION

Consolidated Statements of Operations

(In thousands, except share and per share amounts)





      Three Months Ended

           Six Months Ended

        June 30,

           June 30,


2025

2024

2025

2024

‌





Interest income:





Interest and fees on loans receivable

$      12,658

$    12,179

$      25,348

$      23,308

Interest on available-for-sale securities

1,171

1,876

2,379

3,951

Other interest income

401

1,433

877

3,022

Total interest income

14,230

15,488

28,604

30,281

‌





Interest expense:





Interest on deposits

4,879

3,086

9,078

5,885

Interest on borrowings

1,596

4,484

3,726

8,954

Total interest expense

6,475

7,570

12,804

14,839






Net interest income

7,755

7,918

15,800

15,442

(Recapture of) provision for credit losses

(266)

494

423

754

Net interest income after (recapture of) provision for credit losses

8,021

7,424

15,377

14,688

‌





Non-interest income:





Service charges

41

38

84

78

Grants

105

-

131

-

Other

209

235

428

501

Total non-interest income

355

273

643

579

‌





Non-interest expense:





Compensation and benefits

4,412

4,469

9,696

8,866

Occupancy expense

485

432

1,025

867

Information services

775

663

1,480

1,370

Professional services

787

563

1,488

1,973

Advertising and promotional expense

61

63

107

91

Supervisory costs

156

216

349

393

Corporate insurance

66

64

133

125

Amortization of core deposit intangible

79

84

157

168

Operational loss

-

-

1,943

-

Other expense

701

726

1,341

1,237

Total non-interest expense

7,522

7,280

17,719

15,090

‌





Income (loss) before income taxes

854

417

(1,699)

177

Income tax expense (benefit)

257

146

(435)

89

Net income (loss)

$              597

$         271

$            (1,264)

$            88

Less: Net (loss) income attributable to non-controlling interest

(6)

2

(9)

(17)

Net income (loss) attributable to Broadway Financial Corporation

$              603

$         269

$            (1,255)

$          105

Less: Preferred stock dividends

750

-

1,500

-

‌





Net (loss) income attributable to common stockholders

$            (147)

$         269

$            (2,755)

$          105

‌





(Loss) earnings per common share-basic

$          (0.02)

$        0.03

$              (0.32)

$         0.01

(Loss) earnings per common share-diluted

$          (0.02)

$        0.03

$              (0.32)

$         0.01








The following tables set forth the average balances, average yields and costs for the periods indicated.  All average balances are daily average balances.  The yields set forth below include the effect of deferred loan fees, and discounts and premiums that are amortized or accreted to interest income or expense.

For the Three Months Ended




June 30, 2025



June 30, 2024





(Dollars in thousands) (Unaudited)





Average
Balance



Interest


Average
Yield




Average
Balance



Interest


Average
Yield


Assets














Interest-earning assets:














Interest-earning deposits

$

24,132


$

266


4.42

%

$

88,294


$

1,189


5.42

%

Securities


182,351



1,171


2.58

%

276,457



1,876


2.73

%

Loans receivable (1)


968,028



12,658


5.24

%

943,072



12,179


5.19

%

FRB and FHLB stock (2)


7,473



135


7.25

%

13,835



244


7.09

%

Total interest-earning assets


1,181,984


$

14,230


4.83

%

1,321,658


$

15,488


4.71

%

Non-interest-earning assets


49,786









53,207







Total assets

$

1,231,770








$

1,375,165







‌


















Liabilities and Stockholders' Equity


















Interest-bearing liabilities:


















Money market deposits

$

133,930


$

336


1.01

%

$

274,915


$

1,623


2.37

%

Savings deposits


46,762



61


0.52

%

57,684



102


0.71

%

Interest checking and other demand deposits


251,146



1,975


3.15

%

73,853



166


0.90

%

Certificate accounts


270,424



2,507


3.72

%

163,237



1,195


2.94

%

Total deposits


702,262



4,879


2.79

%

569,689



3,086


2.18

%

Borrowings


72,962



710


3.90

%

209,261



2,593


4.98

%

Bank Term Funding Program borrowing


-



-


-

%

100,000



1,210


4.87

%

Other borrowings


69,722



886


5.10

%

74,523



681


3.68

%

Total borrowings


142,684



1,596


4.49

%

383,784



4,484


4.70

%

Total interest-bearing liabilities


844,946


$

6,475


3.07

%

953,473


$

7,570


3.19

%

Non-interest-bearing liabilities


101,670









139,900







Stockholders' equity


285,154









281,792







Total liabilities and stockholders' equity

$

1,231,770








$

1,375,165







‌


















Net interest rate spread (3)




$

7,755


1.76

%



$

7,918


1.52

%

Net interest rate margin (4)







2.63

%






2.41

%

Ratio of interest-earning assets to interest-bearing liabilities





139.89

%






138.62

%
























(1)       Amount includes non-accrual loans.

(2)       FHLB is Federal Home Loan Bank.

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

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

 

For the Six Months Ended




June 30, 2025



June 30, 2024





(Dollars in thousands) (Unaudited)





Average
Balance



Interest


Average
Yield




Average
Balance



Interest


Average
Yield


Assets














Interest-earning assets:














Interest-earning deposits

$

26,532


$

578


4.39

%

$

97,640


$

2,533


5.22

%

Securities


189,368



2,379


2.53

%

290,721



3,951


2.73

%

Loans receivable (1)


970,241



25,348


5.27

%

925,443



23,308


5.06

%

FRB and FHLB stock (2)


9,320



299


6.47

%

13,777



489


7.14

%

Total interest-earning assets


1,195,461


$

28,604


4.83

%

1,327,581


$

30,281


4.59

%

Non-interest-earning assets


50,061









51,988







Total assets

$

1,245,512








$

1,379,569







‌


















Liabilities and Stockholders' Equity


















Interest-bearing liabilities:


















Money market deposits

$

126,557


$

593


0.94

%

$

272,290


$

3,065


2.26

%

Savings deposits


47,732



129


0.54

%

58,377



204


0.70

%

Interest checking and other demand deposits


253,384



3,886


3.09

%

78,772



311


0.79

%

Certificate accounts


247,498



4,470


3.64

%

164,319



2,305


2.82

%

Total deposits


675,171



9,078


2.71

%

573,758



5,885


2.06

%

FHLB advances


106,106



2,239


4.26

%

209,280



5,191


4.99

%

Bank Term Funding Program borrowing


-



-


-

%

100,000



2,413


4.85

%

Other borrowings


73,237



1,487


4.09

%

76,688



1,350


3.45

%

Total borrowings


179,343



3,726


4.19

%

385,968



8,954


4.67

%

Total interest-bearing liabilities


854,514


$

12,804


3.02

%

959,726


$

14,839


3.11

%

Non-interest-bearing liabilities


105,111









138,012







Stockholders' equity


285,887









281,831







Total liabilities and stockholders' equity

$

1,245,512








$

1,379,569

























Net interest rate spread (3)




$

15,800


1.80

%



$

15,442


1.48

%

Net interest rate margin (4)







2.67

%






2.34

%

Ratio of interest-earning assets to interest-bearing liabilities





139.90

%






138.33

%


























(1)

Amount includes non-accrual loans.

(2)

FHLB is Federal Home Loan Bank.

(3)

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

(4)

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

 

BROADWAY FINANCIAL CORPORATION AND SUBSIDIARY


Selected Financial Data and Ratios (Unaudited)


(Dollars in thousands, except per share data)






















Three Months Ended


Six Months Ended




June 30,
2025


March 31,
2025



December 31,
2024


September 30,
2024


June 30,
2024


June 30,
2025


June 30,
2024


















Balance Sheets:

















Total gross loans


965,875


980,005



976,964


975,315


946,840


965,785


946,840


Allowance for credit losses


8,582


8,774



8,103


8,527


8,104


8,582


8,104


Investment securities


177,977


185,938



203,862


238,489


261,454


177,977


261,454


Total assets


1,227,392


1,238,019



1,303,711


1,373,055


1,367,290


1,227,392


1,367,290


Total deposits


798,922


776,543



745,399


672,248


687,369


798,922


687,369


Total shareholders' equity


285,545


284,581



285,157


286,392


282,293


285,545


282,293


‌
















Profitability:

















Interest income


14,230


14,374



15,762


16,166


15,488


28,604


30,281


Interest expense


6,475


6,329



7,765


7,836


7,570


12,804


14,839

           Net interest income


7,755


8,045



7,997


8,330


7,918


15,800


15,442


(Recovery of) provision for credit losses


(266)


689



(489)


399


494


423


754


Non-interest income


355


288



560


416


273


643


579


Non-interest expenses


7,522


10,197



7,210


7,594


7,280


17,719


15,090


Income (loss) before income taxes


854


(2,553)



1,836


753


417


(1,699)


177


Income tax expense (benefit)


257


(692)



516


209


146


(435)


89


Net income (loss)


597


(1,861)



1,320


544


271


(1,264)


88


Less: Net (loss) income attributable to non-controlling interest


(6)


(3)



20


22


2


(9)


(17)


Net income (loss) attributable to Broadway Financial Corporation


603


(1,858)



1,300


522


269


(1,255)


105


Less: Preferred stock dividends


750


750



750


750


-


1,500


-


Net (loss) income attributable to common stockholders


(147)


(2,608)



550


(228)


269


(2,755)


105


‌
















Financial Performance:

















Return on average assets (annualized)


(0.05 %)


(0.84 %)



0.16 %


(0.07 %)


0.08 %


(0.45 %)


0.02 %


Return on average equity (annualized)


(0.21 %)


(3.69 %)



0.77 %


(0.32 %)


0.38 %


(1.94 %)


0.08 %


Net interest margin


2.63 %


2.70 %



2.42 %


2.49 %


2.41 %


2.67 %


2.34 %


Efficiency ratio


92.75 %


122.37 %



84.26 %


86.83 %


88.88 %


107.76 %


94.19 %


‌
















Per Share Data:

















Book value per share


14.74


14.58



14.82


14.97


14.49


14.74


14.49


Weighted average common shares (basic)


8,622,891


8,547,460



8,459,460


8,520,730


8,394,367


8,557,745


8,308,359


Weighted average common shares (diluted)


8,622,891


8,547,460



8,638,660


8,684,296


8,596,985


8,557,745


8,513,262


Common shares outstanding at end of period


9,195,909


9,231,180



9,120,363


9,112,777


9,131,979


9,195,909


9,131,979


‌
















Financial Measures:

















Loans to assets


78.69 %


79.16 %



74.94 %


71.03 %


69.25 %


78.69 %


69.25 %


Loans to deposits


120.90 %


126.20 %



131.07 %


145.08 %


137.75 %


120.90 %


137.75 %


Allowance for credit losses to total loans


0.89 %


0.90 %



0.83 %


0.87 %


0.86 %


0.89 %


0.86 %


Allowance for credit losses to total nonperforming loans


192.98 %


1020.23 %



3069.32 %


2930.24 %


2470.73 %


192.98 %


2470.73 %


Non-accrual loans to total loans


0.42 %


0.09 %



0.03 %


0.03 %


0.03 %


0.42 %


0.03 %


Nonperforming loans to total assets


0.36 %


0.07 %



0.02 %


0.02 %


0.02 %


0.36 %


0.02 %


Net charge-offs (recoveries) (annualized) to average total loans


-


-



-


-


-


-


-


‌
















Average Balance Sheets:

















Total loans


968,028


972,479



976,873


963,849


943,072


970,241


925,443


Investment securities


182,351


196,463



222,879


248,833


276,457


189,368


290,721


Total assets


1,231,770


1,259,448



1,363,572


1,382,066


1,375,165


1,245,512


1,379,569


Total interest-bearing deposits


702,262


647,777



622,217


570,512


569,689


675,171


573,758


Total shareholders' equity


285,154


286,629



285,775


284,343


281,792


285,887


281,831





















 

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SOURCE Broadway Financial Corporation