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Highlights

  • Broadway reported a net loss attributable to common stockholders of USD 2.6 million in Q1 2025.
  • Net interest income rose 6.9% to USD 8.0 million, while non-interest expense rose 30.6% year over year.
  • Total deposits increased by USD 31.1 million, and borrowings were reduced by USD 93.9 million during the quarter.

Broadway Financial Corporation (NASDAQ: BYFC), the parent of City First Bank, has restated its first-quarter 2025 results to align with its Form 10-Q filed on July 24, 2025. The company posted a net loss attributable to common stockholders of USD 2.6 million, or a diluted loss per share of (USD 0.30), compared to a loss of USD 164 thousand, or (USD 0.02) per diluted share, in the same quarter of 2024. The Q1 2025 result includes a USD 750 thousand preferred dividend.

The first-quarter performance was affected by a USD 1.9 million wire fraud loss and a USD 689 thousand provision for credit losses driven by one non-accrual loan. Despite these events, net interest income increased to USD 8.0 million, up from USD 7.5 million in the prior year. The net interest margin improved to 2.70% from 2.27%, aided by a reduction in borrowing costs and higher loan yields.

Broadway Financial operates through City First Bank, a mission-driven institution focused on underserved urban communities in Southern California and Washington, D.C. The bank provides real estate loans and community-oriented financial services. In Q1 2025, the company reported strong deposit growth of USD 31.1 million and a USD 27.3 million reduction in borrowings compared to year-end 2024. Credit quality remained stable, with non-performing assets at 0.07% of total assets.

Total non-interest expense rose 30.6% to USD 10.2 million, driven by the wire fraud loss and a USD 1.0 million increase in compensation and benefits, including USD 122 thousand in severance. These increases were partly offset by a USD 710 thousand reduction in professional services expense.

Capital levels remained strong, with a Community Bank Leverage Ratio of 15.24% at March 31, 2025, up from 13.96% at year-end 2024. Book value per share declined slightly to USD 14.58. The company ended the quarter with stockholders’ equity of USD 284.6 million, representing 23.0% of total assets.

During the quarter, Broadway executed an ECIP Securities Purchase Option Agreement with the U.S. Treasury, granting the right to repurchase Series C Preferred Stock upon meeting certain conditions. An independent third party was engaged to assist with the valuation of the option, which contributed to the delayed reporting.