Broadway Financial Corporation Reports Significant Growth in Assets and Net Income for Q2 2026

Broadway Financial Corporation reported significant financial growth in its latest quarterly filing, with total assets increasing to $1.56 billion as of June 30, 2026, up from $1.35 billion at the end of 2025. This growth was primarily driven by a $110 million increase in net loans, which reached $1.13 billion, and a $70 million rise in available-for-sale securities, totaling $327 million. The company also saw a substantial increase in cash and cash equivalents, which rose to $48.9 million from $10.5 million. The increase in loans was attributed to both organic growth and loan purchases, while the rise in securities was due to new acquisitions.

In terms of profitability, Broadway Financial reported a net income of $968,000 for the second quarter of 2026, compared to $752,000 in the same period last year. For the first half of 2026, net income attributable to common stockholders was $627,000, a significant recovery from a net loss of $3.4 million in the first half of 2025. The diluted earnings per share for the second quarter were $0.02, up from $0.00 in the prior year, while for the first six months, it was $0.07 compared to a loss of $0.39 in the same period last year.

The company also experienced a notable increase in deposits, which rose by $197 million, or 21.5%, to $1.11 billion. This increase was largely due to a $186.8 million rise in savings deposits and a $50.2 million increase in certificates of deposit. However, there was a decrease in liquid deposits, which fell by $42.9 million. The company’s total borrowings also increased to $94 million, up from $72 million, primarily due to additional advances from the Federal Home Loan Bank.

Operationally, Broadway Financial's net interest income for the second quarter was $9.5 million, a 22.4% increase from the previous year, driven by higher interest income from loans and securities. The net interest margin improved to 2.65% from 2.58% year-over-year. The company recorded a provision for credit losses of $1.5 million for the second quarter, reflecting the establishment of a specific reserve on a non-accrual loan, although overall credit quality metrics remained stable.

Looking ahead, Broadway Financial is optimistic about its growth trajectory, supported by its strategic focus on serving low-to-moderate-income communities and expanding its lending activities. The company continues to monitor its capital adequacy, maintaining a Community Bank Leverage Ratio of 13.20%, well above the regulatory minimum. Management believes that the current liquidity position, bolstered by increased deposits and available borrowing capacity, will support its growth initiatives in the coming months.