Broadway Financial Corporation reported a significant improvement in its financial performance for the first quarter of 2026, with net income attributable to common stockholders rising to $409,000, or $0.05 per diluted share, compared to a net loss of $3.4 million, or ($0.39) per diluted share, in the same period last year. The company’s total interest income increased to $16.2 million, up from $14.8 million, driven by higher interest income from loans and available-for-sale securities. Net interest income also saw a rise, reaching $9.1 million, a 12.5% increase from $8.0 million in the prior year, primarily due to a decrease in interest expense on borrowings.
Total assets for Broadway Financial increased by $80.5 million to $1.43 billion as of March 31, 2026, compared to $1.35 billion at the end of 2025. This growth was attributed to a $42.7 million increase in net loans and a $27.3 million rise in securities available-for-sale. The company’s loans receivable held for investment rose to $1.06 billion, reflecting a strategic focus on loan purchases. Deposits also surged by $155.5 million, or 16.9%, to $1.07 billion, largely due to participation in an online financial platform that offers high-yield savings and CD accounts.
In terms of operational metrics, Broadway Financial's allowance for credit losses (ACL) increased slightly from $9.4 million to $9.5 million, reflecting growth in the loan portfolio and a shift towards higher-risk loans. The company reported six non-accrual loans with an unpaid principal balance of $11.5 million, representing 1.07% of total loans. The company’s capital ratios remained strong, with a Community Bank Leverage Ratio of 14.06% as of March 31, 2026, indicating compliance with regulatory capital requirements.
Looking ahead, Broadway Financial aims to continue its growth trajectory by leveraging its increased deposit base and expanding its loan portfolio. The company is also focused on maintaining strong credit quality and managing its allowance for credit losses effectively. Management believes that the current liquidity position, bolstered by cash and cash equivalents of $26.6 million and unpledged securities of $189.4 million, will support its operational and growth strategies in the coming months.
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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