Broadway Financial Corporation (NASDAQ: BYFC) reported first‑quarter 2026 results on April 28, 2026, posting a net income before preferred dividends of $1.6 million, or $0.09 per diluted share. The company’s earnings swung from a $2.7 million loss, or $(0.39) per share, in the same quarter a year earlier, marking a significant turnaround for the community bank.
Total revenue reached $10.15 million, driven by a $9.6 million net interest income that rose 20% from $8.0 million in Q1 2025. Net interest margin expanded to 2.91%, up 28 basis points from 2.63% in the prior year, reflecting a higher mix of interest‑earning assets and a lower cost of funds. Non‑interest expense fell to $8.0 million, a $2.2 million reduction (21.4%) compared with Q1 2025, largely due to the elimination of a $1.9 million operational loss in the previous year.
Loan growth accelerated to $42.7 million, a 4.2% increase, while deposits surged $155.5 million, a 16.9% rise, compared with December 31, 2025. The company also eliminated $72.0 million of borrowings and FHLB advances, reducing interest expense and supporting the margin improvement. These balance‑sheet actions underpin the stronger earnings profile and provide a more resilient capital base.
Sequentially, net income after preferred dividends rose 193.5% versus the quarter ended December 31, 2025, driven by a 9.5% increase in net interest income from the prior quarter. CEO Brian Argrett said, "We are very pleased with our strong first quarter of 2026 results and continue to build on this positive momentum." The commentary highlights management confidence in sustaining the turnaround momentum.
The results signal a robust recovery for Broadway Financial. The combination of higher net interest income, disciplined cost management, and significant deposit growth positions the bank to maintain profitability and pursue further balance‑sheet strengthening. The turnaround also improves the bank’s capacity to support community‑focused lending initiatives and enhances its competitive standing in the Los Angeles market.
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