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 consolidated net income before preferred dividends of $1.6 million, or $0.09 per diluted share, for the first quarter of 2026, compared to consolidated net loss before preferred dividends of $2.7 million, or ($0.39) per diluted share, for the first quarter of 2025 representing improvement of $4.3 million.

Net income attributable to common stockholders increased 123.6% to $810 thousand during the first quarter of 2026 after deducting preferred dividends of $750 thousand, compared to net loss attributable to common stockholders of $3.4 million for the first quarter of 2025 after deducting preferred dividends of $750 thousand. Diluted income per common share for the first quarter of 2026 reflects preferred dividends of $0.08 per diluted common share compared to $0.09 per diluted loss per common share for the first quarter of 2025.

First Quarter 2026 Highlights:

• Total loans increased 4.2%, or $42.7 million, during the first quarter of 2026 compared to December 31, 2025
• Total deposits increased by $155.5 million, or 16.9%, during the first quarter of 2026 compared to December 31, 2025
• The net interest margin increased by 28 basis points to 2.91% for the first quarter of 2026, compared to 2.63% for the first quarter of 2025
• Borrowings were $0 at March 31, 2026 compared to $72.0 million at December 31, 2025, a reduction of $72.0 million, or 100%
• Capital ratios remain strong with a Community Bank Leverage Ratio of 14.09% at March 31, 2026 compared to 14.09% at December 31, 2025
• Credit quality remains strong with non-accrual loans to total loans at 1.07% and non-performing loans to total assets at 0.80%

Chief Executive Officer, Brian Argrett commented, “We are very pleased with our strong first quarter of 2026 results and continue to build on this positive momentum. Net income after preferred dividends increased 193.5% to $810 thousand compared to the quarter ended December 31, 2025, mainly driven by a 9.5% increase in net interest income from the prior quarter.”

“Loans grew by $42.7 million, or 4.2%, and deposits increased by $155.5 million, or 16.9%, since December 31, 2025, reflecting continued customer growth and deposit inflows. During the quarter, we further strengthened the balance sheet by eliminating $72.0 million in borrowings, which reduced our cost of funds and contributed to a 28-basis-point improvement in the net interest margin to 2.91% compared to the prior quarter.”

“We remain focused on building long-term relationships, maintaining a strong and flexible balance sheet while executing our mission-driven objectives. These priorities allow us to support our customers, local businesses, and low‑to‑moderate income communities while working to deliver sustainable, long‑term performance.”

“As always, I thank our employees for their endless dedication and our stockholders, depositors, and Board of Directors for their ongoing support of our strategy and mission. Their commitment is essential to our efforts to enhance efficiency and drive disciplined growth.”

Income Statement

• Net Interest Income totaled $9.6 million, representing an increase of $1.5 million, or 18.9%, from net interest income of $8.0 million for the first quarter of 2025. The increase resulted from a $1.9 million increase in interest income, primarily due to a $1.4 million increase in interest income on available-for-sale securities due to an increase in the average balance of available-for-sale securities and the average rate earned on available-for-sale securities and a $679 thousand increase in interest income on loans receivable due to an increase in the average balance of loans receivable. Further, interest expense on borrowings decreased $1.4 million due to a decrease in the average balance of borrowings. These increases in net interest income were offset by a $1.8 million increase in interest expense on deposits due an increase in the average balance of deposits and the average rate paid on deposits.
  
  The net interest margin increased to 2.91% for the first quarter of 2026 from 2.63% for the first quarter of 2025, due to an increase in the average rate earned on interest-earning assets, which increased to 5.08% for the first quarter of 2026 from 4.84% for the first quarter of 2025, and a decrease in the cost of funds, which decreased to 2.91% for the first quarter of 2026 from 3.06% for the first quarter of 2025.

• Provision for Credit Losses was $200 thousand for the three months ended March 31, 2026, compared to a provision for credit losses of $1.9 million for the three months ended March 31, 2025. This decrease was largely attributed to a reduction in required reserves on individually evaluated loans, as a specific reserve was recorded on a non‑accrual loan during the first quarter of 2025.
  
  The allowance for credit losses (“ACL”) increased to $9.5 million as of March 31, 2026, compared to $9.4 million as of December 31, 2025. Credit quality remains strong with non-accrual loans as a percentage of total loans at 1.07% and non-performing assets to total assets of 0.80% despite the increase in non-accrual loans.
  

• Non-interest Expense was $8.0 million for the first quarter of 2026, compared to $10.2 million for the first quarter of 2025, representing a decrease of $2.2 million, or 21.4%. The decrease was primarily due to the $1.9 million operational loss incurred in the first quarter of 2025 as well as a $398 thousand decrease in compensation and benefits expense.
  

• Income Tax Expense/Benefit was income tax expense of $390 thousand for the first quarter of 2026 compared to income tax benefit of $1.1 million for the first quarter of 2025. The increase in tax expense reflected an increase of $5.7 million in pre-tax income between the two periods. The effective tax rate was 20.14% for the first quarter of 2026, compared to 28.75% for the first quarter of 2025.

Balance Sheet

• Total Assets increased by $80.9 million at March 31, 2026, compared to December 31, 2025, reflecting increases in net loans of $42.7 million, securities available-for-sale of $27.3 million and cash and cash equivalents of $16.1 million. The increases in net loans and securities available-for-sale were mainly due to purchases of loans and securities available-for-sale.
  

• Loans Held for Investment, Net of the ACL, increased by $42.7 million to $1.1 billion at March 31, 2026, compared to $1.0 billion at December 31, 2025. The increase was primarily due to loan purchases.
  

• Deposits increased by $155.5 million, or 16.9%, to $1.1 billion at March 31, 2026, from $917.6 million at December 31, 2025. The increase in deposits was attributable to increases of $198.1 million in savings deposits and $11.1 million in certificates of deposit accounts, partially offset by decreases of $48.5 million in liquid deposits (demand, interest checking, and money market accounts), $4.8 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), and $319 thousand 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).
  
  As of March 31, 2026, our uninsured deposits, including deposits from City First Bank and other affiliates, represented 46% 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 decreased by $72.0 million to $0 at March 31, 2026, from $72.0 million at December 31, 2025, due to paying down FHLB advances.

Asset Quality

• Allowance for Credit Losses was 0.89% of total loans held for investment at March 31, 2026, compared to 0.92% at December 31, 2025.
  

• Nonperforming Assets were $11.5 million at March 31, 2026, compared to $11.2 million at December 31, 2025.

Capital

• Stockholders’ equity was $262.9 million, or 18.4% of the Company’s total assets, at March 31, 2026, compared to $262.8 million, or 19.5% of the Company’s total assets, at December 31, 2025.
  

• Book Value per Share was $12.14 at March 31, 2026, compared to $12.28 at December 31, 2025. Capital ratios remain strong with a Community Bank Leverage Ratio of 14.09% at March 31, 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.

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.

The following table sets forth the consolidated statements of financial condition as of March 31, 2026 and December 31, 2025.

The following table sets forth the consolidated statements of operations for the three months ended March 31, 2026 and 2025.

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.

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