Broadway Financial Corporation reported a consolidated net loss attributable to common stockholders of $27.8 million for the fiscal year ending December 31, 2025, a significant decline from a net income of $362,000 in the previous year. This loss translates to a diluted loss per share of $3.23, compared to earnings of $0.04 per share in 2024. The downturn was primarily driven by a $25.9 million goodwill impairment charge and an increase in preferred dividends. Despite these challenges, the company’s net interest income before provision for credit losses increased by 4.3% to $33.1 million, attributed to a decrease in interest expenses, although total interest income saw a slight decline.
Total assets for Broadway Financial remained stable at approximately $1.3 billion, with a slight increase of $10.7 million from the previous year. This stability was supported by a $53 million rise in securities available-for-sale and a $16.6 million increase in loans held for investment, net of allowances. However, cash and cash equivalents decreased by $50.9 million, primarily due to repayments of borrowings. Total liabilities increased by $32.9 million, driven by a $172.2 million rise in deposits, which was partially offset by a decrease in borrowings.
In terms of operational developments, Broadway Financial's loan portfolio totaled $1.0 billion at year-end, with multi-family loans representing 58.41% of the gross loan portfolio. The company emphasized the origination of adjustable-rate loans, with over 82% of its loans featuring adjustable-rate characteristics. The bank also reported a significant increase in its allowance for credit losses, which rose to $9.4 million, or 0.92% of gross loans, reflecting a proactive approach to managing credit risk amid economic uncertainties.
Strategically, Broadway Financial has focused on enhancing its community development mission, particularly following its merger with CFBanc Corporation in 2021, which led to the formation of City First Bank. The bank operates three branches, two in California and one in Washington, D.C., and aims to serve historically underserved communities. The company’s status as a public benefit corporation aligns its business model with social and economic objectives, although it faces challenges in balancing these goals with financial performance.
Looking ahead, Broadway Financial anticipates continued challenges due to macroeconomic factors, including inflation and interest rate fluctuations, which could impact loan demand and credit quality. The company is committed to improving its internal controls and financial reporting processes, particularly in light of identified material weaknesses. Management remains focused on leveraging its community development initiatives to drive growth while navigating the complexities of the financial services landscape.
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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