Broadway Financial Corporation

What they do

The Company operates through its wholly owned subsidiary, City First Bank, National Association, which attracts deposits from the general public, loan customers, large non-profits, and local municipalities. It lends primarily against multi-family residential properties with five or more units and commercial real estate, and also makes commercial business and single-family residential loans. Funding comes from deposits, operations, and borrowings, with additional investments in federal agency securities and residential mortgage-backed securities. Revenue is mainly net interest income from loans and investments minus interest paid on deposits and borrowings.

Revenue drivers

• Net interest income — The dominant income source: interest on loans and securities less interest expense on deposits and borrowings. Net interest income before provision was $33.1 million for full-year 2025, up 4.3% from $31.8 million in 2024.
• Multi-family and commercial real estate lending — The core loan portfolio. Interest income and fees on loans rose $2.5 million in 2025 on a $28.7 million higher average loan balance and an average loan yield that increased from 5.15% to 5.26%.
• Securities portfolio — Securities available-for-sale increased $53.0 million during 2025, but interest income on securities fell $622 thousand to $6.4 million as the average securities balance declined $55.2 million.
• Non-interest income (service charges and fees) — Fees on loan and deposit accounts supplement net interest income; the filings describe non-interest income as a component of results but do not break out its size in the excerpts provided.

Recent performance

For the second quarter of 2026, the Company reported net income attributable to common stockholders of $218 thousand, or $0.02 per diluted common share, versus $409 thousand in the first quarter of 2026 and $2 thousand in the second quarter of 2025. Net income before preferred dividends was $968 thousand, or $0.11 per diluted share, in the second quarter of 2026. Pre-provision net revenue rose 82.2%, or $1.4 million, to $3.0 million from $1.6 million in the prior quarter. During the first six months of 2026, total loans grew $110.0 million, or 10.8%, and total deposits grew $197.0 million, or 21.5%. For full-year 2025, the Company reported a net loss attributable to common stockholders of $27.8 million and diluted loss per share of $3.23, driven by a $25.9 million goodwill impairment and $3.0 million of preferred dividends.

Strategy

Management describes a growth strategy executed with a disciplined approach to credit, capital, and liquidity management. The Company is expanding its balance sheet: total loans rose $110.0 million and deposits rose $197.0 million in the first half of 2026, which management says provides additional capacity to support customers and communities. During the first quarter of 2026, the Company changed its allowance for credit losses methodology from the weighted average remaining maturity method to a discounted cash flow method incorporating probability of default and loss given default, a change management says improved estimation precision and did not materially affect results. As a public benefit corporation, the Company states it seeks to align mission-driven objectives with sustainable financial performance.

Risks

• Credit concentration in commercial real estate — The loan portfolio is concentrated in multi-family and commercial real estate, and the Company established a specific reserve on a non-accrual loan in the second quarter of 2026 that increased provision expense.
• Goodwill impairment and earnings volatility — A $25.9 million goodwill impairment charge in the third quarter of 2025 drove a full-year 2025 net loss of $27.8 million attributable to common stockholders and $3.23 diluted loss per share.
• Preferred dividends reduce common earnings — Preferred dividends of $1.5 million in the first half of 2026 and $3.0 million in full-year 2025 reduce income available to common stockholders, with 2025 diluted loss per share including $0.35 of preferred dividends.
• Interest rate and funding sensitivity — Earnings are significantly affected by market interest rates and the spread between yields on loans and investments and rates paid on deposits and borrowings, with 2025 securities income falling $622 thousand as the average securities balance declined $55.2 million.

Outlook

Management says the second quarter of 2026 reflects continued progress on its growth strategy, with balance sheet growth and disciplined expense management improving operating performance. Credit quality is described as a key area of focus, with overall portfolio performance stable and a capital position it says provides significant capacity to absorb potential losses. The Company reported a Community Bank Leverage Ratio of 13.20%, non-accrual loans to total loans of 0.98%, and non-performing assets to total assets of 0.71% as of the second quarter of 2026. No specific forward financial guidance is provided in the excerpts.