Broadway Financial Posts Earnings of $0.04 per Share as Net Income Rises to $392,000
Key Facts
Broadway Financial reported net income attributable to common shareholders of $392,000 in the third quarter of 2026, compared with $218,000 in the second quarter, after posting a loss of $24.6 million in the same period of 2025. In its results statement, published via Business Wire, the company said diluted earnings per common share were $0.04 for the quarter, versus $0.02 in the previous quarter and a loss of $2.86 a year earlier. The figures put the latest performance in the context of a sharp year-over-year improvement, alongside sequential growth in income and earnings per share. The company also recorded consolidated income before preferred stock dividends of $1.1 million, or $0.13 per diluted share. That was above $968,000, or $0.11 per share, in the second quarter of 2026.
For the first nine months, Broadway Financial said it recorded consolidated net income of $1.0 million, compared with a consolidated loss of $28.1 million in the same period of 2025. The turnaround over the extended period came alongside growth in loans and deposits, while the quarterly comparison showed net income attributable to common shareholders rising from the second quarter to the third. Net interest income was $9.9 million in the third quarter, up $406,000, or 4.3%, from the second quarter. The net interest margin was little changed quarter over quarter at 2.64%, compared with 2.65% in the previous quarter. But the margin was below the 2.72% recorded in the third quarter of 2025, and the company said it edged down year over year amid challenges from higher funding costs.
Activity indicators included a $116.2 million, or 11.4%, increase in net loans in the first nine months of 2026. Total deposits also rose $192.4 million, or 21.0%, over the same period. Chief Executive Brian Argrett linked the quarter’s results to the company’s execution of its strategic priorities, citing growth in loans and deposits and the maintenance of strong capital levels. The expansion in deposits and loans provides context for the increase in quarterly net interest income, while the net interest margin was nearly unchanged from the previous quarter. Argrett said the company would remain focused on improving its balance sheet, strengthening profitability and delivering long-term value to shareholders.
On credit costs, the provision for credit losses fell to $668,000 in the third quarter from $1.5 million in the second quarter. The company attributed the decrease in part to a partial charge-off of loans for which an allowance had previously been established. Nonaccrual loans were 1.20% of total loans, while nonperforming assets represented 0.88% of total assets. The company said capital levels remained strong, reporting a community bank leverage ratio of 12.83%. These indicators combine a sequential decline in the provision with the nonperforming asset and loan ratios reported by the company for the third quarter.
By contrast, noninterest expense rose to $8.3 million in the third quarter from $7.5 million in the second quarter. The company said the increase was $855,000, or 11.4%, attributing it primarily to compensation, information services and supervisory expenses. The rise in these expenses coincided with a 4.3% increase in net interest income during the quarter, while the provision for credit losses declined from the previous quarter. Argrett said upcoming priorities include improving the balance sheet and strengthening profitability, as well as pursuing long-term value for shareholders. The statement did not specify a subsequent date in the guidance it provided.