Broadway Financial Corporation reported a net income attributable to common stockholders of $2,000 for the second quarter of 2025, a decrease from $185,000 in the same period of 2024. The company’s diluted earnings per share remained at $0.00 for the second quarter of 2025, compared to $0.02 for the prior year. For the first half of 2025, Broadway Financial experienced a net loss of $3.5 million, significantly down from a net income of $34,000 in the first half of 2024. The diluted loss per share for the first six months of 2025 was $(0.41), compared to $0.00 for the same period in 2024. The company attributed the decline in profitability to increased provisions for credit losses and operational losses.
Total assets decreased by $87.4 million to $1.25 billion as of June 30, 2025, primarily due to reductions in cash and cash equivalents, securities available-for-sale, and loans receivable held for investment. Cash and cash equivalents fell by $31.9 million, while securities available-for-sale decreased by $25.9 million. Loans receivable held for investment, net of the allowance for credit losses (ACL), decreased by $22.9 million to $977.1 million. The company’s total liabilities also decreased by $87.1 million, primarily due to a significant reduction in borrowings, which fell by $139.4 million.
Deposits increased by $53.5 million, or 7.2%, to $798.9 million, driven by a rise in certificates of deposit accounts. However, there were declines in other deposit categories, including savings deposits and liquid deposits. The company’s uninsured deposits represented 35% of total deposits as of June 30, 2025, up from 32% at the end of 2024. The company’s borrowings decreased significantly, with outstanding advances from the Federal Home Loan Bank (FHLB) dropping to $60 million from $195.5 million at the end of 2024.
Broadway Financial's operational metrics showed a net interest income of $7.8 million for the second quarter of 2025, a slight decrease from $7.9 million in the same quarter of 2024. The net interest margin improved to 2.58% from 2.35% year-over-year, reflecting a higher average rate earned on interest-earning assets. The company recorded a recapture of credit losses of $454,000 for the second quarter of 2025, compared to a provision for credit losses of $514,000 in the same quarter of 2024. The ACL increased to $9.9 million as of June 30, 2025, from $8.4 million at the end of 2024, indicating a cautious approach to potential credit losses.
Looking ahead, Broadway Financial aims to enhance its operational capabilities and maintain its capital adequacy, with a Community Bank Leverage Ratio of 15.34% as of June 30, 2025, well above the regulatory minimum. The company is focused on managing its liquidity and capital resources effectively to support future growth while navigating the challenges posed by market conditions and credit quality.
About BROADWAY FINANCIAL CORP DE
Broadway Financial Corporation operates through its subsidiary, City First Bank, providing community-focused banking services primarily in Southern California and the Washington, D.C. area. Its core business includes originating and managing adjustable-rate loans secured by multi-family residential, commercial real estate, construction projects, and commercial business assets. The company targets underserved communities, emphasizing affordable housing and economic development, generating revenue mainly from interest on loans and investments while maintaining rigorous credit and risk management.
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