#USA #Los Angeles #financial results #Broadway Financial #City First Bank

Broadway Financial Corporation Reports Revised Q1 2025 Results

Broadway Financial Corporation, the parent company of City First Bank, has made significant updates regarding its operations for the first quarter of 2025. After a careful review and filing of its Quarterly Report on Form 10-Q with the Securities and Exchange Commission, it has amended its previous financial statements published in April 2025. The company reported a consolidated net loss before preferred dividends of $1.9 million, equating to $0.21 per diluted share. This marks a stark contrast compared to the Q1 loss recorded the prior year, which stood at $164 thousand or $0.02 per diluted share.

The updated figures indicate a net loss attributable to common stockholders of $2.6 million after deducting preferred dividends of $750 thousand. Diluted loss per common share was calculated at $0.30 in Q1 2025, contrasted to $0.02 loss per diluted share in the same quarter last year.

Despite these setbacks, Broadway Financial did report a 6.9% improvement in net interest income, which totaled $8.0 million during the first quarter. The positive shift in net interest income is attributed to a decrease in interest expense on borrowings, coupled with increased rates on loans receivable, leading to a bolstered financial performance relative to the prior year’s quarter.

Chief Executive Officer Brian Argrett commented on the quarterly performance, noting how the growth in deposits, which soared by 4.2%, signifying an increase of $31.1 million compared to the end of 2024. This indicates customer confidence in the institution, even as operational challenges persisted.

Looking at specific areas of concern, Broadway experienced a 30.6% rise in non-interest expenses over the previous year’s first quarter, primarily attributed to a hefty $1.9 million loss stemming from wire fraud. While this presented a significant cost to the bank, there is an optimistic outlook that recovery efforts may yield some beneficial returns.

In terms of credit quality, the company reported non-accrual loans at a striking 0.09% of total loans and 0.07% of total assets as non-performing loans. This credit standing signals healthy asset management practices despite the challenges posed by increasing provisions for credit losses, which rose from $260 thousand in 2024 to $689 thousand in 2025, largely due to one borrower entering non-accrual status.

Notably, Broadway's capital ratios exhibit a resilient framework, with a Community Bank Leverage Ratio of 15.24%, up from 13.96% at the end of last year, positioning the bank well to navigate market uncertainties. The bank’s management continues to highlight their commitment to serving low-to-moderate income communities, an essential part of Broadway's mission and vision.

In summary, while Broadway Financial faces hurdles, including net losses and increased operational costs, the bank remains focused on strategic growth and improving profitability while maintaining strong community support. The upcoming months will be critical as the company continues to adapt and respond to the financial landscape, with several strategic initiatives in place aimed at recovering losses and fostering resilience amidst adversity.

Broadway Financial’s developments showcase the intricate balance between operational challenges and financial opportunity in today's banking environment. Stakeholders remain hopeful for future growth as they closely monitor the outcomes of the presented strategies and the potential recovery from recent financial intellect challenges.