#United States #Los Angeles #Broadway Financial #BYFC #City First Bank

Broadway Financial Corporation's Fiscal Update

Broadway Financial Corporation, the parent company of City First Bank, has recently announced its financial results for the fourth quarter and the entire fiscal year of 2024. The analysis reveals a mix of achievements and hurdles encountered during the year, laying a foundation for what is anticipated in the future.

Overview of Results

In Q4 of 2024, Broadway reported a net income of $1.3 million, a decline compared to $2.6 million in the same period last year. This translated to a net income of $550,000 attributed to common stockholders after accounting for preferred dividends, a drop from $2.6 million a year earlier. The diluted earnings per common share stood at $0.06, reflecting a stark contrast to $0.31 per share in Q4 of 2023, primarily influenced by a notable grant income of $3.7 million received from the U.S. Treasury's Equitable Recovery Program in the prior year.

For the entire year ending December 31, 2024, the company recorded a net income of $1.9 million compared to $4.5 million in 2023. The reduction is largely attributed to a $3.8 million decrease in non-interest income, compounded by a $2.5 million increase in non-interest expenses. Despite these challenges, there was an observed increase in net interest income after provision for credit losses amounting to $2.6 million during the financial year.

Key Metrics

In the fourth quarter of 2024, the company saw a rise in net interest income by $850,000 (11.9%) to $8.0 million, driven predominantly by heightened interest income of $3.1 million. Notably, the overall yield on average interest-earning assets increased to 4.78%, a rise of 55 basis points year-over-year. A key figure of P.

• - Gross Loans Receivable: Increased by $89.2 million to $977.0 million.
• - Total Interest Income: Up by $15.0 million (31.7%) compared to 2023.

CEO Brian Argrett highlighted the year as filled with accomplishments and challenges, emphasizing growth in loans and deposits while sustaining credit quality within company portfolios. A substantial portion of increased deposits, specifically by $73 million in the fourth quarter alone, indicates a strategic shift from higher-cost borrowings to cost-effective deposits.

Strategic Focus for 2025

Looking ahead, Broadway Financial expresses optimism regarding the potential for positive impacts on customers and shareholders. The management anticipates an active year with plans centered on leveraging its talent, capital, and liquidity while maintaining a mission-driven approach to serve low-to-moderate income communities effectively. The strategic goal remains clear: to enhance operational effectiveness while adapting to fluctuating financial conditions.

The current emphasis is not just on recovery but also on forging ahead with innovative strategies to provide better services and foster community growth. As Broadway Financial embraces the challenges of the new financial landscape, the focus on creating value through strategic financial decisions stands out.

In conclusion, while Broadway Financial faced notable challenges in 2024, it entered 2025 with a clear strategy focused on leveraging opportunities for strengthened community engagement and enhanced shareholder value. With a commitment to sustainable growth, the year ahead looks promising as Broadway continues to forge its path forward in the financial sector.