EX-99.1 2 ef20053033_ex99-1.htm EXHIBIT 99.1
Exhibit 99.1
News Release

FOR IMMEDIATE RELEASE

Broadway Financial Corporation Announces Results of Operations for Second Quarter 2025

LOS ANGELES, CA – (PRNEWSWIRE) – July 31, 2025 – 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.

2
 
•
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.

3
 
•
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

4
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.
 
5
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.

6
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.

7
   
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