Broadway Financial Q2 2026: Net Income Dips to $218K on Higher Loan-Loss Provision, but Loan and Deposit Growth Accelerate
BYFC sits 84% above its 52-week low of $5.51 on elevated volume (3.7× avg).
Summary
Broadway Financial's Q2 2026 earnings show a sequential profit decline due to a higher loan-loss provision, but underlying business momentum is strong with double-digit loan and deposit growth and a sharp improvement in pre-provision profitability.
Key Events · Earnings and Guidance · BYFC
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Q2 Net Income Dips on Higher Provision
Net income attributable to common stockholders fell to $218 thousand ($0.02/share) from $409 thousand in Q1 2026, as provision for credit losses jumped to $1.5 million from $200 thousand due to a specific reserve on a non-accrual loan.
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Pre-Provision Profitability Surges
Pre-provision net revenue rose 82.2% sequentially to $3.0 million, driven by a 4.8% increase in net interest income and a 61.3% jump in non-interest income, while non-interest expense fell 6.7%.
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Strong Loan and Deposit Growth
Total loans grew $110.0 million (10.8%) and deposits grew $197.0 million (21.5%) in the first six months of 2026, reflecting successful execution of the growth strategy.
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Asset Quality Remains Stable Despite Higher Reserves
Non-performing assets held steady at $11.2 million (0.71% of total assets), and the allowance for credit losses increased to 0.95% of total loans (1.09% excluding government-guaranteed loans).
Analysis · BYFC · Finance
Broadway Financial's Q2 2026 net income of $218 thousand, down from $409 thousand in Q1, was pressured by a $1.5 million provision for credit losses tied to a specific reserve on a non-accrual loan. Yet the underlying business showed considerable strength: pre-provision net revenue surged 82% sequentially to $3.0 million, fueled by robust loan and deposit growth. In the first half of 2026, total loans rose 10.8% and deposits 21.5%, while the efficiency ratio improved to 72%. Capital remains solid with a 13.20% Community Bank Leverage Ratio, though the increase in uninsured deposits to 47% of total deposits warrants monitoring. The stock trades near its 52-week high, suggesting the market has already priced in much of the operational improvement.
At the time of this filing, BYFC was trading at $10.16 on NASDAQ in the Finance sector, with a market capitalization of approximately $94.3M. The 52-week trading range was $5.51 to $10.46. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.