Broadway Financial (US:BYFC)2025-12-31 18:01Financial Performance - Net income attributable to Broadway Financial Corporation for the six months ended June 30, 2025, was a loss of $1,937 thousand, compared to a profit of $102 thousand for the same period in 2024[14]. - For the three months ended June 30, 2025, net income was $752,000 compared to $256,000 for the same period in 2024, representing a significant increase[32]. - The company reported a net loss of $1,937,000 for the six months ended June 30, 2025, compared to a net income of $102,000 for the same period in 2024[32]. - Total non-interest expense for the six months ended June 30, 2025, was $17,719 thousand, an increase from $15,090 thousand in the same period of 2024[14]. - The company recognized an operational loss of $1.9 million due to a fraudulent wire transfer in Q1 2025, recovering $1.6 million in August 2025 and $240 thousand in October 2025[113]. Assets and Liabilities - Total assets decreased to $1,247,517 thousand as of June 30, 2025, down from $1,334,883 thousand at December 31, 2024, representing a decline of approximately 6.5%[12]. - Total liabilities decreased to $962,628 thousand as of June 30, 2025, from $1,049,691 thousand at December 31, 2024, a reduction of approximately 8.3%[12]. - Cash and cash equivalents at the end of the period were $29,514 thousand, down from $61,365 thousand at the beginning of the period, indicating a decrease of 51.9%[17]. - Total equity as of June 30, 2025, was $284,889,000, an increase from $281,290,000 as of June 30, 2024[22]. Income and Earnings - Total interest income for the three months ended June 30, 2025, was $14,397 thousand, a decrease of 9.7% from $15,922 thousand in the same period of 2024[14]. - Net interest income after provision for credit losses for the six months ended June 30, 2025, was $14,340 thousand, slightly down from $14,681 thousand in the prior year[14]. - Earnings per common share for the three months ended June 30, 2025, was $0.02, compared to a loss of $0.39 per share in the same period of 2024[14]. - Basic earnings per common share for the three months ended June 30, 2025, was $0.02, unchanged from the previous year[32]. Loans and Credit Losses - Net change in loans receivable held for investment was an increase of $21,298 thousand for the six months ended June 30, 2025, compared to a decrease of $59,329 thousand in the same period of 2024[17]. - The total gross loans receivable amounted to $987.1 million, a decrease of 2.1% from $1,008.7 million on December 31, 2024[48]. - The allowance for credit losses (ACL) increased to $9.88 million as of June 30, 2025, up from $8.36 million at the end of 2024, primarily due to an increase in specific reserves on individually evaluated loans[54]. - The total provision for credit losses for the six months ended June 30, 2025, was $1.52 million, contributing to the overall increase in the ACL[52]. - The total charge-offs for the six months ended June 30, 2025, were zero across various loan categories, indicating effective management of credit risk[52]. Securities and Investments - As of June 30, 2025, the total available-for-sale securities amounted to $177.977 million, with unrealized losses of $12.239 million[42]. - The amortized cost of available-for-sale investment securities was $190.030 million as of June 30, 2025, with a fair value of $177.977 million[42]. - The Company’s investment securities portfolio includes federal agency mortgage-backed securities valued at $60.418 million as of June 30, 2025[42]. - The fair value of financial instruments as of June 30, 2025, included cash and cash equivalents of $29.514 million and loans receivable held for investment valued at $955.962 million[93]. Dividends and Stock Compensation - The company declared and paid preferred dividends of $750,000 for the three months ended June 30, 2025[32]. - Stock-based compensation expense for the three months ended June 30, 2025, was $111 thousand, compared to $38 thousand for the same period in 2024[97]. - The Company recorded $210 thousand in stock-based compensation expense for the six months ended June 30, 2025, compared to $115 thousand for the same period in 2024[97]. Regulatory and Compliance - The Community Bank Leverage Ratio was 15.34% as of June 30, 2025, significantly above the minimum required ratio of 9%[104]. - The Company maintained a $449 thousand valuation allowance on its deferred tax assets due to limitations triggered by private placements[108]. - The Bank had a significant concentration of deposits with six customers, accounting for approximately 25% of its deposits as of June 30, 2025[112].