Broadway Financial's Chief Banking Officer Exits; Succession Undecided

Broadway Financial Corporation (BYFC) is the holding company of City First Bank, National Association, a mission-driven CDFI and minority depository institution that lends into low-to-moderate income communities in Southern California and the Washington, D.C. market. With roughly $1.6 billion in total assets as of June 30, 2026, the bank focuses on affordable housing, small-business, and nonprofit-facility lending. It has about 99 full-time equivalent employees and three full-service branches.

The past year has been turbulent. In October 2025, the Audit Committee concluded that financial statements covering fiscal years 2023 and 2024 — plus several 2024 and early 2025 interim quarters — could no longer be relied upon due to errors in accounting for loan participation agreements under ASC Topic 860. Management simultaneously identified a material weakness in internal controls. The restatement triggered multiple Nasdaq delisting notices for late filings, the last of which was resolved on February 17, 2026, when Nasdaq confirmed the company had regained compliance. That same quarter, the company recorded a non-cash goodwill impairment charge of $25.9 million for the period ended September 30, 2025.

Operational results have since stabilized. For the first half of 2026, net income attributable to common stockholders was $627 thousand, compared with a loss of $3.4 million in the same period of 2025. Total loans grew $110 million, or 10.8%, and total deposits grew $197 million, or 21.5%, in the six months ended June 30, 2026. The Community Bank Leverage Ratio stood at 13.20% as of June 30, well above the 9% regulatory minimum. In February 2026, City First Bank was selected to receive a $75 million New Markets Tax Credit allocation from the CDFI Fund.