BYFC · Broadway Financial Corporation

Broadway Financial Corporation delivered a significant operational turnaround in the first quarter of 2026, reporting consolidated net income before preferred dividends of $1.6 million compared to a net loss of $2.7 million in the same period last year. This improvement was primarily driven by a 18.9% increase in net interest income to $9.6 million and a substantial reduction in non-interest expenses. The net interest margin expanded by 28 basis points to 2.91%, resulting from a higher average rate earned on interest-earning assets (5.08% vs 4.84%) and a decrease in the cost of funds (2.91% vs 3.06%). A key strategic highlight was the complete elimination of $72.0 million in FHLB borrowings, which reduced interest expense by $1.4 million and strengthened the balance sheet. Balance sheet growth was robust, with total deposits increasing by $155.5 million (16.9%) and total loans growing by $42.7 million (4.2%). Asset quality remains strong, with non-accrual loans to total loans at 1.07% and non-performing assets to total assets at 0.80%. The allowance for credit losses increased slightly to $9.5 million. CEO Brian Argrett emphasized the positive momentum, citing disciplined growth and relationship building as key drivers for the quarter's success.