BYFC · Broadway Financial Corporation

Broadway Financial Corporation revised its Q1 2026 results to correct an error in loan interest calculation from the initial April 28 release, aligning with the Form 10-Q filed May 15, 2026. The revision flipped results to profitability with $1.2 million net income before preferred dividends ($0.13 diluted EPS), a $3.9 million improvement from Q1 2025's $2.7 million loss. Common stockholders saw $409 thousand net income ($0.05 EPS) after $750 thousand preferred dividends, versus a $3.4 million loss last year. Net interest income rose 12.5% to $9.1 million, driven by $1.4 million higher interest on available-for-sale securities from increased average balances and yields, plus $1.4 million lower borrowing costs after eliminating $72 million in FHLB advances. This lifted net interest margin to 2.75% (up 12 bps YoY) via higher earning asset yields (4.93% vs. 4.84%) and lower cost of funds (2.91% vs. 3.06%), despite higher deposit costs. Provision for credit losses dropped sharply to $200 thousand from $1.9 million, reflecting reduced reserves on individually evaluated loans versus last year's specific non-accrual reserve. Non-interest expense fell 21.4% to $8.0 million, aided by no repeat of Q1 2025's $1.9 million operational loss and lower compensation. Balance sheet strengthened with loans up 4.2% ($42.7 million) to $1.1 billion via purchases, deposits surging 16.9% ($155.5 million) to $1.1 billion on savings and CD growth, and zero borrowings. Credit quality held firm at 1.07% non-accrual loans and 0.80% non-performing assets to total assets, with ACL at 0.89% of loans. CEO Brian Argrett highlighted momentum from 3.7% sequential net interest income growth, balance sheet flexibility, and mission-driven focus on low-to-moderate income communities.