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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 28, 2026

BROADWAY FINANCIAL CORPORATION
(Exact name of registrant as specified in its charter)

Delaware
001-39043
95-4547287
(State or other jurisdiction of incorporation or organization)
(Commission File Number)
(I.R.S. Employer Identification Number)

4601 Wilshire Boulevard Suite 150, Los Angeles, California
 
90010
(Address of principal executive offices)
  
(Zip Code)

Registrant’s telephone number, including area code: (323) 634-1700

 NOT APPLICABLE
(Former name or former address, if changed since last report)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
Securities registered pursuant to Section 12(b) of the Act:
 
Title of each class
  
Trading Symbol(s)
  
Name of each exchange on which registered
Class A Common Stock, par value $0.01 per share (including attached preferred stock purchase rights)
  
BYFC
  
Nasdaq Capital Market
 
Indicate by check mark whether the registrant is an emerging growth company in as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
 
Emerging growth company ☐
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02
Results of Operations and Financial Condition.

On July 28, 2026, Broadway Financial Corporation (the “Company”) issued a press release announcing results for the quarter ended June 30, 2026.  A copy of the press release is attached as Exhibit 99.1.

Item 7.01
Regulation FD Disclosure

Attached as Exhibit 99.2 to this report is the presentation for the Company’s quarterly earnings, which also may be used in connection with potential meetings with investors and/or analysts.

The information set forth in this Current Report, including Exhibit 99.1 attached hereto, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of such section. The information in this Current Report, including Exhibits 99.1 attached hereto, shall not be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing to this Current Report.

Item 9.01
Financial Statements and Exhibits.

(d)
Exhibits
   
Press Release dated July 28, 2026, announcing results for the quarter ended June 30, 2026.
   
Presentation dated July 28, 2026.
   
104
The cover page from this Current Report on Form 8-K, formatted in Inline XBRL (included as Exhibit 101).

2
SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: July 28, 2026

BROADWAY FINANCIAL CORPORATION
   
 
By:
/s/ Zack Ibrahim
   
Name: Zack Ibrahim
   
Title: Chief Financial Officer


3
EX-99.1 2 ef20078897_ex99-1.htm EXHIBIT 99.1
Exhibit 99.1

News Release

FOR IMMEDIATE RELEASE

Broadway Financial Corporation Reports Second Quarter 2026 Results Reflecting Strong Loan and Deposit Growth and
Enhanced Operating Performance

LOS ANGELES, CA – (BUSINESS WIRE) – July 28, 2026 – Broadway Financial Corporation (“Broadway”, “we”, or the “Company”) (NASDAQ: BYFC), parent company of City First Bank, National Association (the “Bank”, and collectively, with the Company, “City First Broadway”), reported net income attributable to common stockholders of $218 thousand during the second quarter of 2026, compared to net income attributable to common stockholders of $409 thousand for the first quarter of 2026, and net income attributable to common stockholders of $2 thousand for the second quarter of 2025.  Diluted income per common share was $0.02 for the second quarter of 2026, compared to $0.05 per diluted common share for the first quarter of 2026 and $0.00 for the second quarter of 2025.

The Company reported consolidated net income before preferred dividends1 of $968 thousand, or $0.11 per diluted common share, for the second quarter of 2026, compared to $1.2 million, or $0.13 per diluted common share, for the first quarter of 2026, and $752 thousand, or $0.09 per diluted common share, for the second quarter of 2025.

For the first six months of 2026, the Company reported consolidated net income before preferred dividends of $2.1 million, or $0.24 per diluted common share, compared to consolidated net loss before preferred dividends of $1.9 million, or ($0.23) per diluted common share, for the first six months of 2025.

Net income attributable to common stockholders was $627 thousand during the first six months of 2026 after deducting preferred dividends of $1.5 million, compared to net loss attributable to common stockholders of $3.4 million for the first six months of 2025 after deducting preferred dividends of $1.5 million. Diluted income per common share was $0.07 for the first six months of 2026, compared to ($0.39) per diluted loss per common share for the first six months of 2025. Diluted income per common share for the first six months of 2026 reflects preferred dividends of $0.17 per diluted common share, compared to $0.18 per diluted common share for the first six months of 2025.

Second Quarter Highlights

 •
Net income before preferred dividends totaled $968 thousand, or $0.11 per diluted common share.

•
Pre-provision net revenue1 increased 82.2%, or $1.4 million, to $3.0 million from $1.6 million in the prior quarter.

•
Total loans increased $110.0 million, or 10.8%, during the first six months of 2026.

•
Total deposits increased $197.0 million, or 21.5%, during the first six months of 2026.

•
Credit quality remained stable with non-accrual loans to total loans at 0.98% and non-performing assets to total assets at 0.71%.

•
Capital levels remained strong, with a Community Bank Leverage Ratio of 13.20%.

Chief Executive Officer, Brian Argrett commented, “Our second quarter results reflect continued progress in executing our growth strategy while maintaining a disciplined approach to credit, capital, and liquidity management. During the first six months of 2026, total loans increased $110.0 million, or 10.8%, and total deposits increased $197.0 million, or 21.5%, providing additional capacity to support our customers and communities. Operating performance continued to improve during the quarter, with pre-provision net revenue increasing 82.2% to $3.0 million, reflecting the benefits of balance sheet growth and disciplined expense management.”

1 “Net income before preferred dividends”, “pre-provision net revenue”, and “efficiency ratio” are non-GAAP financial measures. A reconciliation of these non-GAAP financial measures and the nearest GAAP measures is provided in the GAAP Reconciliation to Non-GAAP Financial Measures tables that accompany this document.

“The diversification and growth of our funding base supported strong loan growth while maintaining a solid liquidity position. Credit quality remains a key area of focus for management. During the quarter, we established a specific reserve on a non-accrual loan, which increased provision expense. This action reflects our disciplined approach to risk management, while overall portfolio performance remained stable and our capital position continues to provide significant capacity to absorb potential losses.”

“I would like to thank our employees, customers, stockholders, and community partners for their continued trust and support as we work to create long-term value for all stakeholders.”

Quarterly Results of Operations


 •
Net Interest Income totaled $9.5 million, representing an increase of $437 thousand, or 4.8%, from net interest income of $9.1 million for the first quarter of 2026.  The increase resulted from a $1.6 million increase in interest income, primarily due to a $1.1 million increase in interest income on loans receivable as a result of an increase in the average balance of loans receivable and a $597 thousand increase in interest income on available-for-sale securities due to an increase in the average balance of available-for-sale securities. These increases in net interest income were partially offset by a $1.2 million increase in interest expense due to a $1.0 million increase in interest expense on deposits, as a result of an increase in the average deposits balance, and a $162 thousand increase in interest expense on borrowings due to an increase in the average borrowing balance.

The net interest margin decreased to 2.65% for the second quarter of 2026 from 2.75% for the first quarter of 2026, due to an increase in the cost of funds, which increased to 3.02% for the second quarter of 2026 from 2.91% for the first quarter of 2026.


 •
Provision for Credit Losses was $1.5 million for the three months ended June 30, 2026, compared to $200 thousand for the three months ended March 31, 2026.  This increase was primarily due to the establishment of a specific reserve on a non-accrual loan, in addition to loan growth. Although a specific reserve was established during the quarter, broader portfolio metrics remained relatively stable, with  non-performing assets representing 0.71% of total assets and non-accrual loans at 0.98% of total loans.

The allowance for credit losses (“ACL”) increased to $10.8 million as of June 30, 2026, compared to $9.4 million as of December 31, 2025.


•
Non-interest Income was $950 thousand for the second quarter of 2026, compared to $589 thousand for the first quarter of 2026, representing an increase of $361 thousand, or 61.3%. The increase was due to a $450 thousand loan fee related to the New Market Tax Credit allocation earned in the second quarter of 2026.


•
Non-interest Expense was $7.5 million for the second quarter of 2026, compared to $8.0 million for the first quarter of 2026, representing a decrease of $539 thousand, or 6.7%. The decrease was primarily due to a $633 thousand decrease in compensation and benefits expense and a $136 thousand decrease in information services expense, partially offset by a $213 thousand increase in loan expenses.


•
Income Tax Expense was $330 thousand for the second quarter of 2026 compared to $282 thousand for the first quarter of 2026.  The increase in tax expense reflected an increase of $56 thousand in pre-tax income between the two periods.  The effective tax rate was 22.25% for the second quarter of 2026, compared to 19.76% for the first quarter of 2026.

Year-to-Date Results of Operations


 •
Net Interest Income totaled $18.5 million for the first six months of 2026, representing an increase of $2.7 million, or 17.4%, from net interest income of $15.8 million for the first six months of 2025.  The increase resulted from a $4.8 million increase in interest income, primarily due to a $3.4 million increase in interest income on available-for-sale securities, due to an increase in the average rate and balance of available-for-sale securities, and a $1.7 million increase in interest income on loans receivable as a result of an increase in the average balance of loans receivable. Further, interest on borrowings decreased $1.8 million due to decreases in the average rate and balance of borrowings. These increases in net interest income were partially offset by a $3.9 million increase in interest expense on deposits due to an increase in the average deposit rate and balance.

The net interest margin increased to 2.70% for the first six months of 2026 from 2.61% for the first six months of 2025, due to an increase in the average rate earned on interest-earning assets, which increased to 4.95% for the first six months of 2026 from 4.82% for the first six months of 2025, and a decrease in the cost of funds, which decreased to 2.97% for the first six months of 2026 from 3.07% for the first six months of 2025.


 •
Provision for Credit Losses was $1.7 million for the first six months of 2026, compared to $1.5 million for the first six months of 2025.


•
Non-interest Income was $1.5 million for the first six months of 2026, compared to $643 thousand for the first six months of 2025, representing an increase of $896 thousand, or 139.3%. The increase was primarily due to $494 thousand of additional earnings on bank owned life insurance and a $450 thousand loan fee related to the New Market Tax Credit allocation earned in the first six months of 2026.


•
Non-interest Expense was $15.5 million for the first six months of 2026, compared to $17.7 million for the first six months of 2025, representing a decrease of $2.2 million, or 12.6%. The decrease was primarily due to a $1.9 million operational loss incurred in the first six months of 2025 as well as a $557 thousand decrease in compensation and benefits expense and a $331 thousand decrease in professional services expense. These decreases in non-interest expenses were partially offset by an increase of $264 thousand in information services expenses and a $264 thousand increase in loan expenses.


•
Income Tax Expense/Benefit was income tax expense of $612 thousand for the first six months of 2026 compared to income tax benefit of $790 thousand for the first six months of 2025.  The increase in tax expense reflected an increase of $5.6 million in pre-tax income between the two periods.  The effective tax rate was 21.03% for the first six months of 2026, compared to 28.87% for the first six months of 2025.

Financial Condition Review


 •
Total Assets increased by $218.1 million at June 30, 2026, compared to December 31, 2025, reflecting increases in net loans of $110.0 million, securities available-for-sale of $70.2 million and cash and cash equivalents of $38.4 million. The increase in net loans was due to loan growth and loan purchases and the increase in securities available-for-sale was due to purchases of securities available-for-sale.


•
Loans Held for Investment, Net of the ACL, increased by $110.0 million to $1.1 billion at June 30, 2026, compared to $1.0 billion at December 31, 2025.  The increase was due to loan purchases and growth.


•
Deposits increased by $197.0 million, or 21.5%, to $1.1 billion at June 30, 2026, from $917.6 million at December 31, 2025.  The increase in deposits was attributable to increases of $186.8 million in savings deposits, $50.2 million in certificates of deposit accounts, and $9.2 million in Certificate of Deposit Registry Service (“CDARS”) deposits (CDARS deposits are similar to ICS deposits, but involve certificates of deposit, instead of money market accounts), partially offset by decreases of $42.9 million in liquid deposits (demand, interest checking, and money market accounts) and $6.3 million in Insured Cash Sweep (“ICS”) deposits (ICS deposits are the Bank’s money market deposit accounts in excess of FDIC insured limits whereby the Bank makes reciprocal arrangements for insurance with other banks). As of June 30, 2026, our uninsured deposits, including deposits from City First Bank and other affiliates, represented 47% of our total deposits, compared to 41% as of December 31, 2025.  We leverage our long-standing partnership with IntraFi Deposit Solutions to offer deposit insurance for accounts exceeding the FDIC deposit insurance limit of $250,000.


•
Total Borrowings increased $22.0 million to $94.0 million at June 30, 2026, from $72.0 million at December 31, 2025, due to additional FHLB advances.

Asset Quality


 •
Allowance for Credit Losses was 0.95% of total loans held for investment at June 30, 2026, compared to 0.92% at December 31, 2025.


•
Nonperforming Assets remained at $11.2 million at June 30, 2026, unchanged from December 31, 2025.

Capital


 •
Stockholders’ equity was $262.3 million, or 16.8% of the Company’s total assets, at June 30, 2026, compared to $262.8 million, or 19.5% of the Company’s total assets, at December 31, 2025.


•
Book Value per Share was $12.11 at June 30, 2026, compared to $12.28 at December 31, 2025. Capital ratios remain strong with a Community Bank Leverage Ratio of 13.20% at June 30, 2026 compared to 14.09% at December 31, 2025.

About Broadway Financial Corporation

Broadway Financial Corporation operates through its wholly-owned banking subsidiary, City First Bank, National Association, which is a leading mission-driven bank that serves low-to-moderate income communities within urban areas in Southern California and the Washington, D.C. market. 

City First Bank offers a variety of commercial loan products, services, and depository accounts that support investments in affordable housing, small businesses, and nonprofit community facilities located within low-to-moderate income neighborhoods.  City First Bank is a Community Development Financial Institution, Minority Depository Institution, Certified B Corp, and a member of the Global Alliance of Banking on Values.  The Bank and the City First network of nonprofits, City First Enterprises, Homes By CFE, and City First Foundation, represent the City First branded family of community development financial institutions, which offer a robust lending and deposit platform.

Contacts

Investor Relations
Zack Ibrahim, Chief Financial Officer, (202) 243-7100
Investor.relations@cityfirstbroadway.com

Cautionary Statement Regarding Forward-Looking Information
 
This press release includes “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995.  All statements other than statements of historical facts contained in this press release, including statements regarding our future results of operations or financial condition, business strategy and plans and objectives of management for future operations and capital allocation and structure, are forward-looking statements.  Forward‑looking statements typically include the words “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue,” “poised,” “optimistic,” “prospects,” “ability,” “looking,” “forward,” “invest,” “grow,” “improve,” “deliver” and similar expressions, but the absence of such words or expressions does not mean a statement is not forward-looking.  These forward‑looking statements are subject to risks and uncertainties, including those identified below, which could cause actual future results to differ materially from historical results or from those anticipated or implied by such statements.  The following factors, among others, could cause future results to differ materially from historical results or from those indicated by forward‑looking statements included in this press release: (1) the level of demand for mortgage and commercial loans, which is affected by such external factors as general economic conditions, market interest rate levels, tax laws, and the demographics of our lending markets; (2) the direction and magnitude of changes in interest rates and the relationship between market interest rates and the yield on our interest‑earning assets and the cost of our interest‑bearing liabilities; (3) the rate and amount of credit losses incurred and projected to be incurred by us, increases in the amounts of our nonperforming assets, the level of our loss reserves and management’s judgments regarding the collectability of loans; (4) changes in the regulation of lending and deposit operations or other regulatory actions, whether industry-wide or focused on our operations, including increases in capital requirements or directives to increase allowances for credit losses or make other changes in our business operations; (5) legislative or regulatory changes, including those that may be implemented by the current administration in Washington, D.C. and the Federal Reserve Board; (6) possible adverse rulings, judgments, settlements and other outcomes of litigation; (7) actions undertaken by both current and potential new competitors; (8) the possibility of adverse trends in property values or economic trends in the residential and commercial real estate markets in which we compete; (9) the effect of changes in general economic conditions; (10) the effect of geopolitical uncertainties; (11) the impact of health crises on our future financial condition and operations; (12) the impact of any volatility in the banking sector due to the failure of certain banks due to high levels of exposure to liquidity risk, interest rate risk, uninsured deposits and cryptocurrency risk; (13) the loss of our CDFI certification could potentially limit our grant income awards; and (14) other risks and uncertainties.  All such factors are difficult to predict and are beyond our control.  Additional factors that could cause results to differ materially from those described above can be found in our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K or other filings made with the SEC and are available on our website at http://www.cityfirstbank.com and on the SEC’s website at http://www.sec.gov.
 
Forward-looking statements in this press release speak only as of the date they are made, and we undertake no obligation, and do not intend, to update these forward-looking statements to reflect events or circumstances occurring after the date of this press release, except to the extent required by law.  You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.

BROADWAY FINANCIAL CORPORATION
Consolidated Statements of Financial Condition
(In thousands, except share and per share amounts)

   
June 30, 2026
    
December 31, 2025
  
   
(Unaudited)
        
Assets:
            
Cash and due from banks
  
$
2,135
    
$
1,676
  
Interest-bearing deposits in other banks
    
46,770
      
8,831
  
Cash and cash equivalents
    
48,905
      
10,507
  
Securities available-for-sale, at fair value (amortized cost of $337,681 and $265,371)
    
327,030
      
256,835
  
Loans receivable held for investment, net of allowance of $10,799 and $9,424
    
1,126,539
      
1,016,540
  
Accrued interest receivable
    
6,746
      
5,999
  
Federal Home Loan Bank (FHLB) stock
    
5,464
      
4,417
  
Federal Reserve Bank (FRB) stock
    
3,543
      
3,543
  
Office properties and equipment, net
    
8,782
      
8,732
  
Bank owned life insurance
    
24,179
      
23,663
  
Deferred tax assets, net
    
7,312
      
6,711
  
Core deposit intangible, net
    
1,308
      
1,460
  
Other assets
    
3,891
      
7,162
  
Total assets
  
$
1,563,699
    
$
1,345,569
  
Liabilities and equity
                
Liabilities:
                
Deposits
  
$
1,114,651
    
$
917,603
  
Securities sold under agreements to repurchase
    
81,928
      
80,773
  
Borrowings
    
94,000
      
72,000
  
Accrued expenses and other liabilities
    
10,639
      
12,236
  
Total liabilities
    
1,301,218
      
1,082,612
  
Equity:
                
Non-Cumulative Redeemable Perpetual Preferred stock, Series C; authorized 150,000 shares at June 30, 2026 and December 31, 2025; issued and outstanding 150,000 shares at June 30, 2026 and December 31, 2025; liquidation value $1,000 per share
    
150,000
      
150,000
  
Common stock, Class A, $0.01 par value, voting; authorized 75,000,000 shares at June 30, 2026 and December 31, 2025; issued 6,502,886 shares at June 30, 2026 and 6,409,760 shares at December 31, 2025; outstanding 6,175,658 shares at June 30, 2026 and 6,082,532 shares at December 31, 2025
    
65
      
64
  
Common stock, Class B, $0.01 par value, non-voting; authorized 15,000,000 shares at June 30, 2026 and December 31, 2025; issued and outstanding 1,425,404 shares at June 30, 2026 and December 31, 2025
    
14
      
14
  
Common stock, Class C, $0.01 par value, non-voting; authorized 25,000,000 shares at June 30, 2026 and December 31, 2025; issued and outstanding 1,672,562 at June 30, 2026 and December 31, 2025
    
17
      
17
  
Additional paid-in capital
    
143,494
      
143,194
  
Accumulated deficit
    
(14,611
)
    
(15,238
)
Unearned Employee Stock Ownership Plan (ESOP) shares
    
(3,743
)
    
(3,869
)
Accumulated other comprehensive loss, net of tax
    
(7,606
)
    
(6,105
)
Treasury stock-at cost, 327,228 shares at June 30, 2026 and at December 31, 2025
    
(5,326
)
    
(5,326
)
Total Broadway Financial Corporation and Subsidiary equity
    
262,304
      
262,751
  
Non-controlling interest
    
177
      
206
  
Total liabilities and equity
   $
 1,563,699
    $
 1,345,569
 

The following table sets forth the consolidated statements of operations for the three and six months ended June 30, 2026 and 2025.

BROADWAY FINANCIAL CORPORATION
Consolidated Statements of Operations
(In thousands, except share and per share amounts)
(Unaudited)
   
Three Months Ended
    
Six Months Ended
  
   
June 30,
2026
    
March 31,
2026
    
June 30,
2025
    
June 30,
2026
    
June 30,
2025
  
Interest income:
                              
Interest and fees on loans receivable
  
$
14,353
    
$
13,287
    
$
12,825
    
$
27,640
    
$
25,942
  
Interest on available-for-sale securities
    
3,210
      
2,613
      
1,171
      
5,823
      
2,379
  
Other interest income
    
240
      
309
      
401
      
549
      
877
  
Total interest income
    
17,803
      
16,209
      
14,397
      
34,012
      
29,198
  
                                         
Interest expense:
                                        
Interest on deposits
    
6,985
      
5,990
      
4,879
      
12,975
      
9,078
  
Interest on borrowings
    
1,328
      
1,166
      
1,763
      
2,494
      
4,320
  
Total interest expense
    
8,313
      
7,156
      
6,642
      
15,469
      
13,398
  
                                         
Net interest income
    
9,490
      
9,053
      
7,755
      
18,543
      
15,800
  
Provision for (recapture of) credit losses
    
1,481
      
200
      
(454
)
    
1,681
      
1,460
  
Net interest income after provision for (recapture of) credit losses
    
8,009
      
8,853
      
8,209
      
16,862
      
14,340
  
                                         
Non-interest income:
                                        
Service charges
    
44
      
44
      
41
      
88
      
84
  
Grants
    
23
      
107
      
105
      
130
      
130
  
Earnings on bank owned life insurance
    
261
      
255
      
11
      
516
      
22
  
Management fees
    
475
      
14
      
37
      
489
      
87
  
Other
    
147
      
169
      
161
      
316
      
320
  
Total non-interest income
    
950
      
589
      
355
      
1,539
      
643
  
                                         
Non-interest expense:
                                        
Compensation and benefits
    
4,253
      
4,886
      
4,412
      
9,139
      
9,696
  
Occupancy expense
    
458
      
508
      
485
      
966
      
1,025
  
Information services
    
804
      
940
      
774
      
1,744
      
1,480
  
Professional services
    
571
      
586
      
788
      
1,157
      
1,488
  
Advertising and promotional expense
    
56
      
124
      
61
      
180
      
107
  
Supervisory costs
    
179
      
185
      
156
      
364
      
349
  
Corporate insurance
    
56
      
55
      
66
      
111
      
133
  
Amortization of core deposit intangible
    
76
      
76
      
79
      
152
      
158
  
Operational loss
    
-
      
-
      
-
      
-
      
1,943
  
Other
    
1,023
      
655
      
701
      
1,678
      
1,340
  
Total non-interest expense
    
7,476
      
8,015
      
7,522
      
15,491
      
17,719
  
                                         
Income (loss) before income taxes
    
1,483
      
1,427
      
1,042
      
2,910
      
(2,736
)
Income tax expense (benefit)
    
330
      
282
      
296
      
612
      
(790
)
Net income (loss)
    
1,153
      
1,145
      
746
      
2,298
      
(1,946
)
Less: Net income (loss) attributable to non-controlling interest
    
185
      
(14
)
    
(6
)
    
171
      
(9
)
Net income (loss) attributable to Broadway Financial Corporation
    
968
      
1,159
      
752
      
2,127
      
(1,937
)
Less: Preferred stock dividends
    
750
      
750
      
750
      
1,500
      
1,500
  
Net income (loss) attributable to common stockholders
  
$
218
    
$
409
    
$
2
    
$
627
    
$
(3,437
)
                                         
Earnings (loss) per common share-basic
  
$
0.02
    
$
0.05
    
$
0.00
    
$
0.07
    
$
(0.39
)
Earnings (loss) per common share-diluted
  
$
0.02
    
$
0.05
    
$
0.00
    
$
0.07
    
$
(0.39
)

The following tables set forth the average balances, average yields and costs for the periods indicated. All average balances are daily average balances.  The yields set forth below include the effect of deferred loan fees, and discounts and premiums that are amortized or accreted to interest income or expense.

BROADWAY FINANCIAL CORPORATION
Consolidated Averages, Interest Yields and Rates (Unaudited)
(In thousands, except share and per share amounts)

   
Three Months Ended
    
Three Months Ended
    
Three Months Ended
  
   
30-Jun-26
    
31-Mar-26
    
30-Jun-25
  
Assets
                                                      
Interest-earning assets:
                                                      
Interest-bearing deposits
   $
13,380
     $
120
      
3.60
 %
  $
22,560
     $
201
      
3.61
 %
  $
24,132
     $
266
      
4.42
 %
Securities
    
312,186
      
3,210
      
4.12
 %
    
265,415
      
2,613
      
3.99
 %
    
182,351
      
1,171
      
2.58
 %
Loans receivable (1)
   
1,101,866
      
14,353
      
5.22
 %
   
1,039,076
      
13,287
      
5.19
 %
   
989,861
      
12,825
      
5.20
 %
FRB and FHLB stock (2)
   
7,530
      
120
      
6.39
 %
   
6,642
      
108
      
6.59
 %
    
7,473
      
135
      
7.25
 %
Total interest-earning assets
    
1,434,962
     $
17,803
      
4.98
 %
   
1,333,693
     $
16,209
      
4.93
 %
    
1,203,817
     $
14,397
      
4.80
 %
Non-interest-earning assets
    
42,246
                      
42,377
                      
48,563
                  
Total assets
   $
1,477,208
                     $
1,376,070
                     $
1,252,380
                  
                                                                         
Liabilities and Stockholders’ Equity
                                                                        
Interest-bearing liabilities:
                                                                        
Money market deposits
   $
175,103
     $
942
      
2.16
 %
   $
191,248
     $
1,047
      
2.22
 %
   $
133,930
     $
336
      
1.01
 %
Savings deposits
    
244,794
      
2,213
      
3.63
 %
    
102,463
      
631
      
2.50
 %
    
46,762
      
61
      
0.52
 %
Interest checking and other demand deposits
    
262,783
      
1,447
      
2.21
 %
   
264,446
      
1,619
      
2.48
 %
    
251,146
      
1,975
      
3.15
 %
Certificate accounts
    
281,036
      
2,383
      
3.40
 %
   
313,330
      
2,693
      
3.49
 %
    
270,424
      
2,507
      
3.72
 %
Total deposits
    
963,716
      
6,985
      
2.91
 %
    
871,487
      
5,990
      
2.79
 %
    
702,262
      
4,879
      
2.79
 %
FHLB Borrowings
    
62,884
      
614
      
3.92
 %
    
44,072
      
421
      
3.87
 %
    
94,795
      
1,126
      
4.76
 %
Other borrowings
    
77,553
      
714
      
3.69
 %
    
82,359
      
745
      
3.67
 %
    
69,721
      
637
      
3.66
 %
Total borrowings
    
140,437
      
1,328
      
3.79
 %
   
126,431
      
1,166
      
3.74
 %
    
164,516
      
1,763
      
4.30
 %
Total interest-bearing liabilities
    
1,104,153
     $
8,313
      
3.02
 %
    
997,918
     $
7,156
      
2.91
 %
   
866,778
     $
6,642
      
3.07
 %
Non-interest-bearing liabilities
    
109,709
                      
113,688
                      
101,461
                  
Stockholders’ equity
    
263,346
                      
264,464
                      
284,141
                  
Total liabilities and stockholders’ equity
   $
1,477,208
                     $
1,376,070
                     $
1,252,380
                  
                                                                         
Net interest rate spread (3)
          $
9,490
      
1.96
 %
           $
9,053
      
2.02
 %
          $
7,755
      
1.72
 %
Net interest rate margin (4)
                   
2.65
 %
                    
2.75
 %
                    
2.58
 %
Ratio of interest-earning assets to interest-bearing liabilities
                    
129.96
 %
                    
133.65
 %
                    
138.88
 %

(1)
Amount includes non-accrual loans.
(2)
FHLB is Federal Home Loan Bank.
(3)
Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.
(4)
Net interest rate margin represents net interest income as a percentage of average interest-earning assets.

   
For the Six Months Ended
  
   
June 30, 2026
    
June 30, 2025
  
    (Dollars in thousands) (Unaudited)
  
   
Average
Balance
     Interest
    
Average
Yield
    
Average
Balance
     Interest    
Average
Yield
  
Assets
                                    
Interest-earning assets:
                                    
Interest-earning deposits
   $
17,945
     $
321
      
3.61
 %
   $
26,532
     $
578
      
4.39
 %
Securities
  
288,930
    
5,823
      
4.06
 %    
189,368
      
2,379
      
2.53
 %
Loans receivable (1)
 
1,070,644
    
27,640
      
5.21
 %    
996,757
      
25,942
      
5.25
 %
FRB and FHLB stock (2)
 
7,089
    
228
      
6.49
 %    
9,320
      
299
      
6.47
 %
Total interest-earning assets
  
1,384,608
     $
34,012
      
4.95
 %    
1,221,977
     $
29,198
      
4.82
 %
Non-interest-earning assets
  
42,310
    
               
49,364
                  
Total assets
   $
1,426,918
    
              $
1,271,341
                  
           
                                   
Liabilities and Equity
                                                
Interest-bearing liabilities:
                                                
Money market deposits
   $
183,131
     $
 1,989
      
2.19
 %
   $
126,557
     $
 593
       0.94
 %
Savings deposits
     174,022
      
2,844
      
3.30
 %     47,732
       129
       0.54
 %
Interest checking and other demand deposits
     263,610
       3,066
      
2.35
 %     253,384
       3,886
       3.09
 %
Certificate accounts
     297,093
       5,076
      
3.45
 %    
247,498
       4,470
       3.64
 %
Total deposits
    
917,856
       12,975
      
2.85
 %     675,171
       9,078
      
2.71
 %
FHLB Borrowings
     53,531
       1,035
      
3.90
 %     137,406
       3,082
       4.52
 %
Other borrowings
     79,942
       1,459
      
3.68
 %     68,453
       1,238
      
3.65
 %
Total borrowings
    
133,473
      
2,494
      
3.77
 %     205,859
       4,320
       4.23
 %
Total interest-bearing liabilities
    
1,051,329
     $
15,469
      
2.97
 %     881,030
     $
 13,398
       3.07
 %
Non-interest-bearing liabilities
     111,687
                
    105,028
                
Equity
    
263,902
                
    285,283
                
Total liabilities and equity
   $
1,426,918
                
  $
 1,271,341
                
                       
                     
Net interest rate spread (3)
          $
18,543
      
1.99
 %           $
 15,800
       1.75
 %
Net interest rate margin (4)
                   
2.70
 %                     2.61
 %
Ratio of interest-earning assets to interest-bearing liabilities
                    
131.70
 %                     138.70
 %

(1)
Amount includes non-accrual loans.
(2)
FHLB is Federal Home Loan Bank.
(3)
Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.
(4)
Net interest rate margin represents net interest income as a percentage of average interest-earning assets.

The following table sets forth selected financial data and ratios for the quarters and six months noted below.

BROADWAY FINANCIAL CORPORATION
Selected Financial Data and Ratios  (Unaudited)
(Dollars in thousands, except per share data)

         
Three Months Ended
    
Six Months Ended
  
   
June 30,
2026
    
March 31,
2026
    
December 31,
2025
    
September 30,
2025
    
June 30,
2025
    
June 30,
2026
    
June 30,
2025
  
Balance Sheets at Period Ended:
                                          
Total gross loans
  
$
1,137,338
    
$
1,068,771
    
$
1,025,964
    
$
1,023,483
    
$
986,944
    
$
1,137,338
    
$
986,944
  
Allowance for credit losses
    
10,799
      
9,509
      
9,424
      
10,339
      
9,880
      
10,799
      
9,880
  
Investment securities
    
327,030
      
284,103
      
256,835
      
244,005
      
177,977
      
327,030
      
177,977
  
Total assets
    
1,563,699
      
1,426,065
      
1,345,569
      
1,335,565
      
1,247,517
      
1,563,699
      
1,247,517
  
Total deposits
    
1,114,651
      
1,073,056
      
917,603
      
849,205
      
798,922
      
1,114,651
      
798,922
  
Total shareholders’ equity
    
262,304
      
262,480
      
262,751
      
261,687
      
284,679
      
262,304
      
284,679
  
                                                         
Profitability for Period Ended:
                                                        
Interest income
  
$
17,803
    
$
16,209
    
$
16,293
    
$
15,791
    
$
14,397
    
$
34,012
    
$
29,198
  
Interest expense
    
8,313
      
7,156
      
7,563
      
7,174
      
6,642
      
15,469
      
13,398
  
Net interest income
    
9,490
      
9,053
      
8,730
      
8,617
      
7,755
      
18,543
      
15,800
  
Provision for (recapture of) credit losses
    
1,481
      
200
      
47
      
679
      
(454
)
    
1,681
      
1,460
  
Non-interest income
    
950
      
589
      
687
      
422
      
355
      
1,539
      
643
  
Non-interest expenses
    
7,476
      
8,015
      
7,946
      
31,518
      
7,522
      
15,491
      
17,719
  
Income (loss) before income taxes
    
1,483
      
1,427
      
1,424
      
(23,158
)
    
1,042
      
2,910
      
(2,736
)
Income tax expense (benefit)
    
330
      
282
      
392
      
736
      
296
      
612
      
(790
)
Net income (loss)
    
1,153
      
1,145
      
1,032
      
(23,894
)
    
746
      
2,298
      
(1,946
)
Less: Net income (loss) attributable to non-
controlling interest
    
185
      
(14
)
    
7
      
(11
)
    
(6
)
    
171
      
(9
)
Net income (loss) attributable to Broadway
Financial Corporation
    
968
      
1,159
      
1,025
      
(23,883
)
    
752
      
2,127
      
(1,937
)
Less: Preferred stock dividends
    
750
      
750
      
750
      
750
      
750
      
1,500
      
1,500
  
Net income (loss) attributable to common
stockholders
  
$
218
    
$
409
    
$
275
    
$
(24,633
)
  
$
2
    
$
627
    
$
(3,437
)
                                                         
Financial Performance:
                                                        
Return (loss) on average assets (annualized)
    
0.06
%
    
0.12
%
    
0.08
%
    
(7.48
)%
    
0.00
%
    
0.09
%
    
(0.49
)%
Return (loss) on average equity (annualized)
    
0.34
%
    
0.63
%
    
0.41
%
    
(34.12
)%
    
0.00
%
    
0.48
%
    
(2.43
)%
Net interest margin
    
2.65
%
    
2.75
%
    
2.62
%
    
2.72
%
    
2.58
%
    
2.70
%
    
2.61
%
Efficiency ratio1
   
71.61
%
    
83.13
%
    
84.38
%
    
348.69
%
    
92.75
%
    
77.14
%
    
107.76
%
                                                         
Per Share Data:
                                                        
Book value per share
  
$
12.11
    
$
12.10
    
$
12.28
    
$
12.17
    
$
14.65
    
$
12.11
    
$
14.65
  
Weighted average common shares (basic)
    
8,679,800
      
8,597,291
      
8,639,459
      
8,617,707
      
8,622,891
      
8,636,143
      
8,557,745
  
Weighted average common shares (diluted)
    
8,874,673
      
8,816,188
      
8,639,459
      
8,617,707
      
8,808,467
      
8,845,593
      
8,557,745
  
Common shares outstanding at end of period
    
9,273,624
      
9,298,949
      
9,180,498
      
9,180,760
      
9,195,909
      
9,273,624
      
9,195,909
  
                                                         
Financial Measures:
                                                        
Loans to assets
    
72.73
%
    
74.95
%
    
76.25
%
    
76.63
%
    
79.11
%
    
72.73
%
    
79.11
%
Loans to deposits
    
102.04
%
    
99.60
%
    
111.81
%
    
120.52
%
    
123.53
%
    
102.04
%
    
123.53
%
Allowance for credit losses to total loans
    
0.95
%
    
0.89
%
    
0.92
%
    
1.01
%
    
1.00
%
    
0.95
%
    
1.00
%
Allowance for credit losses to total non-
accrual loans
    
96.74
%
    
82.97
%
    
84.38
%
    
76.36
%
    
182.02
%
    
96.74
%
    
182.02
%
Non-accrual loans to total loans
    
0.98
%
    
1.07
%
    
1.09
%
    
1.32
%
    
0.55
%
    
0.98
%
    
0.55
%
Non-performing assets to total assets
    
0.71
%
    
0.80
%
    
0.83
%
    
1.01
%
    
0.44
%
    
0.71
%
    
0.44
%
Net charge-offs (recoveries) to average total
loans
    
0.03
%
    
-
      
0.11
%
    
-
      
-
      
0.03
%
    
-
  
                                                         
Average Balance Sheets:
                                                        
Total loans
  
$
1,101,866
    
$
1,039,076
    
$
1,050,757
    
$
993,090
    
$
989,861
    
$
1,070,644
    
$
996,757
  
Investment securities
    
312,186
      
265,415
      
246,662
      
206,224
      
182,351
      
288,930
      
189,368
  
Total assets
    
1,477,208
      
1,376,070
      
1,361,026
      
1,306,782
      
1,252,380
      
1,426,918
      
1,271,341
  
Total deposits
    
963,716
      
871,487
      
775,913
      
746,143
      
702,262
      
917,857
      
675,171
  
Total shareholders’ equity
    
263,346
      
264,464
      
263,266
      
286,458
      
284,141
      
263,902
      
285,283
  

In addition to results presented in accordance with U.S. generally accepted accounting principles (“GAAP”), management considers various non-GAAP measures when evaluating the performance of the business, including diluted earnings per common share before dividends, pre-provision net revenue, efficiency ratio, and tangible book value.  Management believes these non-GAAP measures provide useful supplemental information to investors because they assist investors in understanding how  management  evaluates operating performance and makes day-to-day operating decisions.

The following table sets forth a GAAP to Non-GAAP reconciliation of financial measures for the quarters and six months noted below.

BROADWAY FINANCIAL CORPORATION AND SUBSIDIARY
GAAP Reconciliation to Non-GAAP Financial Measures (Unaudited)
(Dollars in thousands, except per share data)

   
Three Months Ended
    
Six Months
Ended
  
   
June 30, 2026
    
March 31,
2026
    
June 30, 2026
  
Net income before preferred dividends and Earnings per common share - diluted before preferred dividends:
            
Net income attributable to common shareholders
  
$
218
    
$
2
    
$
627
  
Add: Preferred stock dividends
    
750
      
750
      
1,500
  
Net income before preferred dividends
  
$
968
    
$
752
    
$
2,127
  
                         
Weighted average common shares outstanding for diluted earnings per common share
    
8,874,673
      
8,808,467
      
8,845,593
  
Earnings per common share - diluted before preferred dividends
  
$
0.11
    
$
0.09
    
$
0.24
  
       
Pre-provision net revenue:
                        
Net interest income
  
$
9,490
    
$
9,053
    
$
18,543
  
Non-interest income
    
950
      
589
      
1,539
  
Less: Non-interest expense
    
7,476

   
8,015

   
15,491

Pre-provision net revenue
  
$
2,964
    
$
1,627
    
$
4,591
  
                         
Efficiency ratio:
                        
Net interest income
  
$
9,490
    
$
9,053
    
$
18,543
  
Non-interest income
    
950
      
589
      
1,539
  
Operating revenue
    
10,440
      
9,642
      
20,082
  
Non-interest expense
  
$
7,476
    
$
8,015
    
$
15,491
  
                         
     Efficiency ratio
    
71.61
%
    
83.13
%
    
77.14
%

   
Common
Equity
    
Shares
    
Per Share
  
   
Capital
    
Outstanding
    
Amount
  
Tangible book value:
      
June 30, 2026
                  
Common book value
  
$
112,304
      
9,273,624
    
$
12.11
  
Less:
                        
Net unamortized core deposit intangible
    
1,308
                  
Tangible book value
  
$
110,996
      
9,273,624
    
$
11.97
  
                         
December 31, 2025
                        
Common book value
  
$
112,751
      
9,180,498
    
$
12.28
  
Less:
                        
Net unamortized core deposit intangible
    
1,460
                  
Tangible book value
  
$
111,291
      
9,180,498
    
$
12.12
  

Diluted earnings per common share before preferred dividends represents diluted earnings per share adjusted to exclude the impact of preferred stock dividends. Management considers this information useful to investors because it provides additional perspective on the earnings available from the Company’s operating activities and facilitates comparisons across reporting periods.

Pre-provision net revenue is calculated by subtracting noninterest expenses from the sum of net interest income and noninterest income. Management considers this information useful to investors because it provides supplemental information regarding the Company’s ability to generate earnings through its business activities before consideration of the provision for credit losses, which can vary significantly from period to period.

Efficiency ratio represents noninterest expense divided by the sum of net interest income and noninterest income, excluding certain non-core items, as applicable.  Management considers this information useful to investors as it provides supplemental information regarding the relationship between operating expenses and revenue generation.

The Company calculates tangible book value per common share by dividing tangible common equity by common shares outstanding. Tangible common equity is calculated as common shareholders’ equity less goodwill and other intangible assets.
Management believes this measure is useful to investors as tangible equity is a measure that is consistent with the calculation of capital for bank regulatory purposes, which excludes intangible assets from the calculation of risk based ratios, and provides a meaningful assessment of capital adequacy and facilitates comparisons with other financial institutions.
EX-99.2 3 ef20078897_ex99-2.htm EXHIBIT 99.2
Exhibit 99.2

 Second Quarter 2026 Earnings Presentation  July 28, 2026 
 
 Cautionary Forward-Looking Statements  This presentation is for informational purposes only and does not purport to include a complete discussion of the topics mentioned and should not be relied upon as a basis for making an investment decision in the Company’s securities. This presentation also includes “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements often include words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue,” and similar expressions, but the absence of such words or expressions does not mean a statement is not forward-looking. These forward‑looking statements are subject to risks and uncertainties, including those identified below, which could cause actual future results to differ materially from historical results or from those anticipated or implied by such statements. The following factors, among others, could cause future results to differ materially from historical results or from those indicated by forward‑looking statements included in this press release: (1) the level of demand for mortgage and commercial loans, which is affected by such external factors as general economic conditions, market interest rate levels, tax laws, and the demographics of our lending markets; (2) the direction and magnitude of changes in interest rates and the relationship between market interest rates and the yield on our interest‑earning assets and the cost of our interest‑bearing liabilities; (3) the rate and amount of loan losses incurred and projected to be incurred by us, increases in the amounts of our nonperforming assets, the level of our loss reserves and management’s judgments regarding the collectability of loans; (4) changes in the regulation of lending and deposit operations or other regulatory actions, whether industry-wide or focused on our operations, including increases in capital requirements or directives to increase allowances for loan losses or make other changes in our business operations; (5) legislative or regulatory changes, including those that may be implemented by the current administration in Washington, D.C. and the Federal Reserve Board; (6) possible adverse rulings, judgments, settlements and other outcomes of litigation; (7) actions undertaken by both current and potential new competitors; (8) the possibility of adverse trends in property values or economic trends in the residential and commercial real estate markets in which we compete; (9) the effect of changes in general economic conditions; (10) the effect of geopolitical uncertainties; (11) the impact of health crises on our future financial condition and operations; (12) the impact of any volatility in the banking sector due to the failure of certain banks due to high levels of exposure to liquidity risk, interest rate risk, uninsured deposits and cryptocurrency risk; (13) the loss of our CDFI certification could potentially limit our grant income awards; and (14) other risks and uncertainties. All such factors are difficult to predict and are beyond our control. Additional factors that could cause results to differ materially from those described above can be found in our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K or other filings made with the SEC and are available on our website at http://www.cityfirstbank.com and on the SEC’s website at http://www.sec.gov.      Forward-looking statements in this presentation speak only as of the date they are made, and we undertake no obligation, and do not intend, to update these forward-looking statements to reflect events or circumstances occurring after the date of this presentation, except to the extent required by law. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this presentation. 
 
 Corporate Overview & Geographic Footprint  In 2021, Broadway Financial Corporation (BYFC) located in Los Angeles, CA completed a merger with CFBanc Corporation located in Washington, D.C., with BYFC continuing as the surviving entity  BYFC proudly serves communities on both coasts, with branches in Washington, D.C. and Los Angeles, California  A mission-driven commercial bank with a focus on the benefit and economic empowerment of our customers and communities. BYFC exists to empower organizations and individuals with more limited access to traditional commercial finance and banking services  BYFC operates as a certified B Corp and Public Benefit Corporation. City First Bank, N.A. operates as a certified Community Development Financial Institution (CDFI)  As of June 30, 2026, BYFC has 99 full-time equivalent employees  Ticker  NASDAQ: BYFC  Established  1946 (Broadway Federal Bank)  1995 (Broadway Financial Corporation)  Headquarters  Washington, D.C. (Bank HQ)  Los Angeles, CA (Holding Co. HQ)  Branches  1 full-service branch – Washington, D.C.  2 full-service branches – Los Angeles, CA  Total Assets  $1.6 billion (as of 6/30/26)  Total Gross Loans  $1.1 billion (as of 6/30/26)  Total Deposits  $1.1 billion (as of 6/30/26)  Earnings Per Share (Basic)  $0.02 (for three months ended 6/30/26)  Community Bank Leverage Ratio (CBLR)  13.20% (as of 6/30/26)  Los Angeles, CA  Washington, D.C.  | Branch and Corporate Office Locations  Full-Service Branch  Corporate Office Only 
 
 Executive Management Team  Brian Argrett  President &  CEO  35+ Years of Experience  CEO of City First Bank prior to the merger with Broadway  Former Founder and Managing Partner of Fulcrum Capital Group  Zack Ibrahim  Chief Financial Officer  20+ Years of Experience  Former Head of Corporate Finance at Texas Capital Bank  Previously held key financial leadership roles at Truist, M&T Bank, Regions, Northern Trust, & TIAA  John Allen  Chief Banking Officer  30+ Years of Experience  Former Regional Bank President for Wells Fargo  Previously held roles at Santander Bank, Capital One, and Fifth Third Bank  Justin Jennings  Chief Deposit  Officer  Brian Wagner  Chief Human Resources Officer  20+ Years of Experience  Previously held roles with EagleBank Corp, Truist, and PNC  Experience with acquiring top talent across the nation with multiple institutions  Tina Carew  Chief Legal Officer & Corporate Secretary  25+ Years of Experience  Former General Counsel and Corporate Secretary for Invesco Mortgage Capital Inc.  Previously held roles at FHLB Atlanta and Sullivan & Cromwell  20+ Years of Experience  Former Operations Officer at Columbia Bank  Previously held treasury and operations roles at JP Morgan Chase & Co 
 
 Q2 2026 Financial Summary  1  Strong Fundamental Performance: Q2 2026 Pre-Provision Net Revenue of $3.0MM up 404% YoY  2  Strong Balance Sheet Growth: Total assets increased $138MM (10%) QoQ, reflecting continued momentum in franchise growth  3  Disciplined Expense Management: Non-Interest Expense is down 7% QoQ and flat YoY  4  Increased Fee Income: Non-Interest Income increased by $0.4MM (61%) QoQ driven by New Markets Tax Credit (NMTC) fee income  5  Credit Performance: Increased provision expense and a higher ACL ratio (1.09% of adjusted gross loans) reflect proactive reserve management and disciplined risk management practices. Credit performance remained stable, supported by a strong capital base and ample loss-absorption capacity 
 
 Stock Price & Valuations   | Stock Valuation ($)  | Stock Price ($)  Price / Book Value Per Share     49%  60%  60%  60%  80%  Price / TBV Per Share     62%  61%  61%  61%  81% 
 
 Key Financial Highlights  ActualsQ2 '26  ActualsQ1 '26  ActualsQ2 '25  ▲ vsPr Qtr  ▲ vsPr Yr  Balance Sheet ($MM)              Gross Loan Balances  $1,137  $1,069  $987  6%  15%  Deposit Balances  $1,115  $1,073  $799  4%  40%  Investment Balance  $327  $284  $178  15%  84%  Total Assets  $1,564  $1,426  $1,248  10%  25%                 Income Statement ($MM)              Net Income Attributable to Common Stockholders1  $0.2   $0.4   $0.0   (47%)  N/A  Net income attributable to Broadway Financial Corporation1  $1.0   $1.2   $0.8   (16%)  29%  Net Interest Income  $9.5   $9.1   $7.8   5%  22%  Non-Interest Income  $1.0   $0.6   $0.4   61%  168%  Total Revenue2  $10.4   $9.6   $8.1   8%  29%  Non-Interest Expense  $7.5   $8.0   $7.5   (7%)  (1%)  Provision Expense  $1.5   $0.2   ($0.5)  641%  426%  Pre-Provision Net Revenue2  $3.0   $1.6   $0.6   82%  404%                 Key Performance Metrics              Net Interest Margin  2.65%  2.75%  2.58%  (0.10%)  0.07%  Loan Yields  5.22%  5.19%  5.20%  0.04%  0.03%  Cost of Interest-Bearing Funds  3.02%  2.91%  3.07%  0.11%  (0.05%)  Loan to Deposit Ratio  102.0%  99.6%  123.5%  2.4%  (21.5%)  Return on Average Assets   0.06%  0.12%  0.00%  (0.06%)  0.06%  Efficiency Ratio2  72%  83%  93%  (12%)  (21%)  ACL % of Gross LHI  0.95%  0.89%  1.00%  0.06%  (0.05%)  ACL % of Gross LHI (excl GGLs)2  1.09%  1.00%  1.01%  0.09%  0.08%  Key Financial Highlights  1 One-time corrections of errors in the calculation of interest on loans occurred in Q2 2026 with pre-tax impacts of ($0.5MM) and Q1 2026 with pre-tax impacts of ($0.3MM)  2 Non-GAAP Measure. Please see the reconciliation of Non-GAAP information in the appendix of the presentation  3 Thousands (M); Millions (MM)  
 
 Second Quarter 2026 GAAP Financial Highlights  | Net Income attributable to Broadway _Financial Corporation ($MM)1  | Total Gross Loans ($MM)  | Total Deposits ($MM)  | Community Bank Leverage   _Ratio (%)  | Net Interest Margin (%)  | ROAA (%)  1 One-time corrections of errors in the calculation of interest on loans occurred in Q2 2026 with pre-tax impacts of ($0.5MM) and Q1 2026 with pre-tax impacts of ($0.3MM) 
 
 Deposits & Borrowings Portfolios  | Total Deposits ($MM) & Loans to Deposits  | Deposit Composition %   | FHLB & Repos ($MM)   | Highlights  YoY total deposits have increased $316MM or 40% from $799MM in Q2 2025 to $1,115MM in Q2 2026  Loan to Deposit Ratio improved from 123.5% to 102.0% YoY  As of Q2 2026, FHLB borrowings were $94MM. FHLB borrowings were utilized as short-term funding to support asset growth  Deposit composition indicates a diverse portfolio with 9% of balances in non-interest-bearing accounts. The long-term strategic goal is to double that percentage to help reduce overall cost of funds  As of Q2 2026, deposits include $75MM in brokered CDs, $160MM in CDARS, and $222MM in ICS     2025  Q2  2025  Q3  2025  Q4  2026  Q1  2026  Q2  FHLB  60.0  107.5  72.0  0.0  94.0  Repos  63.8  76.1  80.8  81.2  81.9  Total  123.8  183.6  152.8  81.2  175.9  4% growth 
 
 6% growth  | Loan Yields2 %   Loan Portfolio   | Loan Composition %  | Total Gross Loans ($MM)  | Highlights  QoQ total gross loans have increased by $68MM or 6% from $1,069MM in Q1 2026 to $1,137MM in Q2 2026  Loan growth was mainly derived from C&I and owner-occupied transactions  Loan yields have increased from 5.20% in Q2 2025 to 5.22% in Q2 2026  Loan portfolio composition is heavily weighted towards multi-family due to the legacy lending strategy. We expect that mix to shift as we execute our long-term strategic goals   1  1 GGL = Government Guaranteed Loan (USDA & SBA)  2 One-time corrections of errors in the calculation of interest on loans occurred in Q2 2026 with pre-tax impacts of ($0.5MM) and Q1 2026 with pre-tax impacts of ($0.3MM) 
 
 Type  % of Portfolio  Book Yield  Book Value ($M)1  Market Value ($M)  Unrealized  Gain/Loss ($M)  MBS (Fixed)  47%  3.87%  160,896   153,054   (7,841)  CMO (Float)  24%  4.65%  79,750   79,822   72   Corporate Bonds  9%  6.17%  30,000   29,940   (60)  CMO (Fixed)  8%  4.19%  25,446   24,700   (746)  Agency (Fixed)  6%  1.42%  18,875   18,121   (754)  SBA (Fixed)  2%  1.68%  7,969   6,871   (1,097)  Agency (Float)  2%  4.63%  5,551   5,562   12   Muni - Taxable  1%  1.44%  3,187   3,059   (128)  CMBS (Float)  1%  4.19%  3,032   3,028   (4)  Muni - TE  0%  1.64%  1,562   1,460   (102)  SBA (Float)  0%  5.08%  734   734   1   MBS (Float)  0%  5.02%  680   678   (2)  Total  100%  4.08%   337,681    327,030    (10,651)  Investment Securities  | Investment Portfolio Composition  | Investment Portfolio Yield (Market Yield)   | Highlights  As of June 2026, the investment securities portfolio book value was $338MM. The portfolio is primarily concentrated in fixed MBS, floating CMOs, corporate bonds, fixed CMOs, and agency securities. The Bank opportunistically made significant purchases in 2025  On a YoY basis, overall portfolio yield improved from 2.58% to 4.12% due to purchases of higher yielding securities  The investment portfolio includes $30MM of high-quality bank sub-debt with an average book yield of 6.17% as of Q2 2026  1 Securities book value excludes unrealized Available for Sale (AFS) gain / loss on sale 
 
 Asset Quality   1 Gross loans were adjusted for purchased government guaranteed loans (GGLs) attracting no loan loss reserve. Non-GAAP Measure. Please see the reconciliation of Non-GAAP information in the appendix of the presentation.   | NPAs ($MM) and NPAs/Assets (%)  | Provision for Credit Losses ($MM) and   _Provision / Gross Loans (Annualized %)  | ACL / Adj. Gross Loans (%)1  | NCOs/Gross Loans (Annualized %)  Stable NPA Trends were Offset by Higher Provision for Credit Losses and Increased Reserve Requirements 
 
 Net Interest Income   | Net Interest Income ($MM) and Net Interest Margin (%)  | Interest Expense Breakout ($MM)  | Interest Income Breakout ($MM)  | Interest Expense ($MM) and Cost of Funds (%)1  1 Cost of Funds reflects cost of interest-bearing liabilities 
 
 Non-Interest Expense   | NIE Breakout by Category (GAAP)  1 Non-Interest Expense is adjusted for recoveries of $1.6MM in Q3 2025 and $0.2MM in Q4 2025 from a $1.9MM wire fraud expense in Q1 2025. Non-Interest Expense is also adjusted to exclude goodwill impairment of $25.9MM in Q3 2025.   2 Non-GAAP Measure. Please see the reconciliation of Non-GAAP information in the appendix of the presentation.  ($M)  Q2 2025  Q3 2025  Q4 2025  Q1 2026  Q2 2026  QoQ Change  YoY Change  Compensation & Benefits  4,412  4,340  4,802  4,886  4,253  (13%)  (4%)  Occupancy & Equipment  485  505  507  508  458  (10%)  (6%)  Marketing and Promotion Expense  61  76  0  124  56  (55%)  (8%)  Professional Fees  788  624  896  586  571  (3%)  (28%)  Communications Expense  774  768  763  940  804  (14%)  4%  Amortization of Intangibles  79  78  79  76  76  0%  (4%)  Impairment of Goodwill  0  25,858  0  0  0  0%  0%  Operational Loss (Recovery)  0  (1,603)  (240)  0  0  N/A  N/A  Other Expense  923  872  1,139  895  1,258  41%  36%  Total Non-Interest Expense  7,522  31,518  7,946  8,015  7,476  (7%)  (1%)  | Adjusted Non-Interest Expense ($MM)1  | Adjusted Efficiency Ratio (%)1  Disciplined Expense Management and Revenue Growth Accelerated Operating Efficiency, Improving the Adjusted Efficiency Ratio by 21% YoY 
 
 Capital & Liquidity   | Community Bank Leverage Ratio (%)  | Tier 1 Capital ($MM)  | Liquidity Sources ($MM)  | Highlights  Community Bank Leverage Ratio (CBLR) remains strong at 13.20% as of Q2 2026, reflecting the Bank's strong capital position and well-capitalized status, with a substantial buffer above the 9.00% regulatory minimum  We believe the Bank has access to sufficient liquidity from cash, unpledged securities, and available FHLB advance capacity   Tier 1 capital reflects steady growth over the last 5 quarters  Source  As of 6/30/26  Cash and Cash Equivalents  48.9   Market Value of Unpledged Securities  229.9   Available FHLB Advance Capacity  148.4   Available Fed Fund Lines of Credit  10.0    Total Estimated Sources of Liquidity  437.1 
 
 Appendix 
 
 Quarterly Financial Summary  1 One-time corrections of errors in the calculation of interest on loans occurred in Q2 2026 with pre-tax impacts of ($0.5MM) and Q1 2026 with pre-tax impacts of ($0.3MM)  2 Non-Interest Expense is adjusted for recoveries of $1.6MM in Q3 2025 and $0.2MM in Q4 2025 from a $1.9MM wire fraud expense in Q1 2025. Non-Interest Expense is also adjusted to exclude goodwill impairment of $25.9MM in Q3 2025.  3 Non-GAAP Measure. Please see the reconciliation of Non-GAAP information in the appendix of the presentation  END OF PERIOD DATE  6/30/2025  9/30/2025  12/31/2025  3/31/2026  6/30/2026                    BALANCE SHEET ($000)                 Total Net Loans  977,064  1,013,144  1,016,540  1,059,262  1,126,539  Total Securities  177,977  244,005  256,835  284,103  327,030  Total Assets  1,247,517  1,335,565  1,345,569  1,426,065  1,563,699  Total Deposits  798,922  849,205  917,603  1,073,056  1,114,651                    INCOME STATEMENT ($000)                 Interest Income1   14,397   15,791   16,293   16,209   17,803   Interest Expense  6,642   7,174   7,563   7,156   8,313   Total Non-Interest Income  355   422   687   589   950   Non-Interest Expenses  7,522   31,518   7,946   8,015   7,476   Adjusted Non-Interest Expenses2&3   7,522   7,263   8,186   8,015   7,476   Provision for Credit Losses  (454)  679   47   200   1,481   Pre-Provision Net Revenue3  588   (22,479)  1,471   1,627   2,964   Net Income (loss) attributable to common stockholders1  2   (24,633)  275   409   218   Net Income (loss) attributable to Broadway Financial Corporation1  752   (23,883)  1,025   1,159   968                     KEY FINANCIAL METRICS (%)                 ROAA (annualized)  0.00   (7.48)  0.08   0.12   0.06   ROAE (annualized)  0.00   (34.12)  0.41   0.63   0.34   Net Interest Margin  2.58   2.72   2.62   2.75   2.65   Efficiency Ratio  92.75   348.69   84.38   83.13   71.61   Adjusted Efficiency Ratio3  92.75   80.35   86.93   83.13   71.61   Loans/ Deposits  123.53   120.52   111.81   99.60   102.04   Securities/ Assets  14.27   18.27   19.09   19.92   20.91   NPAs/ Assets  0.44   1.01   0.83   0.80   0.71   ACL/ Gross Loans  1.00   1.01   0.92   0.89   0.95   ACL/ Gross Loans (excl GGLs)3  1.01   1.07   0.99  1.00   1.09  
 
 Reconciliation of Non-GAAP Information  Adj. Non-Interest Expense ($M) and Adj. Efficiency Ratio (%)  2026Q2  2026Q1  2025Q4  2025Q3  2025Q2  Non-Interest Expense  7,476   8,015   7,946   31,518   7,522   Add: Operational Recovery (Loss)  -  -  240  1,603   -  Less: Goodwill Impairment  -  -  -  25,858  -  Adj. Non-Interest Expense  7,476   8,015   8,186   7,263   7,522         Net Interest Income  9,490   9,053   8,730   8,617   7,755   Non-Interest Income  950   589   687   422   355   Total Revenue  10,440   9,642   9,417   9,039   8,110         Efficiency Ratio  71.6%  83.1%  84.4%  348.7%  92.7%  Adj. Efficiency Ratio  71.6%  83.1%  86.9%  80.4%  92.7%  ACL ($M) / Adj. Gross Loans ($M)  2026Q2  2026Q1  2025Q4  2025Q3  2025Q2  Gross Loans  1,137,338   1,068,771   1,025,964   1,023,483   986,944   Less: Government Guaranteed Loans  150,951   113,931   75,321   58,170   11,627   Adj. Gross Loans  986,387   954,840   950,643   965,313   975,317   ACL  10,799   9,509   9,424   10,339   9,880   ACL / Adj. Gross Loans  1.09%  1.00%  0.99%  1.07%  1.01%  Pre-Provision Net Revenue ($M)  2026Q2  2026Q1  2025Q4  2025Q3  2025Q2  Net Interest Income  9,490   9,053   8,730   8,617   7,755   Non-Interest Income  950   589   687   422   355   Less: Non-Interest Expense  7,476   8,015   7,946   31,518   7,522   Pre-Provision Net Revenue  2,964   1,627   1,471   (22,479)  588