Broadway Financial Corp/Del - BYFC STOCK NEWS

Broadway Financial Corporation (BYFC) announced a 1-for-8 reverse stock split effective November 1, 2023. The split is intended to bring the company into compliance with Nasdaq's minimum bid price requirements. No fractional shares will be issued, and stockholders will receive a cash payment instead. The split will not modify any rights or preferences of the common stock.

City First Bank, Capital Impact Partners, and CDC Small Business Finance have partnered to provide affordable owner-occupied commercial real estate mortgages to underserved small businesses in low-to-moderate income areas. The loan product offers competitive rates and is tailored to entrepreneurs in disinvested communities, benefiting entrepreneurs of color and female entrepreneurs. City First Bank aims to provide up to $50 million in initial capital, which will be leveraged up to $100 million through the SBA's 504 First Mortgage program. The partnership aims to address the racial wealth gap and expand access to financing for minority-owned businesses. The loan product offers 90% financing, low down payments (at 10 percent), 10-year, below-market, fixed interest rates, and a minimum loan amount of $500,000. Loan proceeds can be used for purchasing, refinancing, or improving owner-occupied commercial real estate.

Broadway Financial Corporation, the parent company of City First Bank, reported consolidated net earnings of $243 thousand for Q2 2023, compared to $1.9 million in Q2 2022. The decrease was primarily due to an increase in interest expense and a provision for credit losses. Total interest income increased by 38.5% in Q2 2023. Total net loans receivable increased by $56.6 million. Total assets increased by $47.0 million. CEO Brian Argrett stated that the company is focused on strategic growth and expanding operational capabilities.

Broadway Financial Corporation (Nasdaq: BYFC) has announced a leadership transition within its Board of Directors. Effective April 1, 2023, Brian E. Argrett has been appointed as Board Chair while retaining his role as CEO. Wayne-Kent A. Bradshaw has been elected as Vice Chair and Marie C. Johns continues as Lead Independent Director. This move is part of the governance succession plan post the merger with CFBanc Corporation. The Board reaffirmed its Corporate Governance Guidelines during this transition, emphasizing strengthened governance.

Broadway Financial Corporation (NASDAQ: BYFC) has announced key executive appointments, enhancing its management team. John Tellenbach joins as Executive Vice President and West Commercial Regional Executive, bringing over 30 years of banking experience. LaShanya Washington is promoted to Executive Vice President and Chief Credit Officer, with a strong background in credit risk management. Sonja Wells, also promoted, will lead lending activities in the eastern U.S. markets. CEO Brian E. Argrett highlighted these appointments as crucial for executing growth plans, particularly in Southern California, supported by $150 million of equity capital raised last June.

Broadway Financial Corporation (NASDAQ: BYFC) reported consolidated net earnings of $1.5 million for Q4 2022, a notable improvement from a net loss of $1.4 million in Q4 2021. The increase in net interest income was $2.7 million, or 42.5%, reaching $9.0 million due to higher loan and investment rates. Year-end net earnings totaled $5.6 million, compared to a loss of $4.1 million in 2021. Total assets grew 8.3% to $1.2 billion, with stockholders’ equity rising 98.2% to $279.5 million, largely due to a $150 million equity raise. However, loan loss provisions increased by $674 thousand due to portfolio growth.

Broadway Financial Corporation (BYFC) announced an extension of loans totaling up to $5 million to the City First Bank Employee Stock Ownership Trust. The initial loan of $0.5 million aims to increase employee ownership in a non-dilutive manner, aligning employee interests with shareholders. This initiative seeks to recover dilution from past mergers and positions Broadway to leverage its $150 million in raised equity capital for future growth. Current employee ownership stands at approximately 2.2%, down from 5.9% prior to the merger.