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Here are 1-3 brief analogies for Broadway Financial (BYFC):

• It's like a smaller, community-focused version of a regional bank such as Truist, known for its commitment to diverse communities.
• Consider it a localized Bank of America, uniquely focused on serving the financial needs of diverse and underserved neighborhoods.

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• Deposit Products: Broadway Financial, through its subsidiary City National Bank of Florida, offers various deposit accounts including checking, savings, money market, and certificates of deposit to individuals and businesses.
• Commercial Real Estate Loans: The company provides financing for the acquisition, development, and refinancing of commercial properties to businesses and investors.
• Commercial and Industrial Loans: It offers loans to businesses for working capital, equipment financing, business expansion, and other operational needs.
• Residential Mortgage Loans: Broadway Financial originates and services mortgage loans for individuals seeking to purchase or refinance homes.
• Treasury Management Services: The bank delivers solutions to businesses for managing their cash flow, including remote deposit capture, ACH services, and fraud protection.
• Wealth Management and Trust Services: It provides financial planning, investment management, and trust administration services to high-net-worth clients.

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Broadway Financial Corporation (symbol: BYFC) operates as a bank holding company, with its primary subsidiary being City National Bank of Florida. As a financial institution, BYFC does not typically have "major customers" in the traditional sense of a company selling specific products to a few large clients. Instead, its revenue is generated from a broad base of depositors and borrowers.

The company primarily sells its financial products and services to individuals and businesses within the communities it serves. Therefore, describing categories of customers is most appropriate:

• Individuals/Consumers: This category includes personal banking customers who utilize services such as checking and savings accounts, certificates of deposit, residential mortgage loans, and consumer loans.
• Small to Medium-Sized Businesses: These customers comprise local enterprises and professional practices seeking business checking and savings accounts, lines of credit, small business loans, and commercial real estate loans for their owner-occupied properties.
• Commercial Real Estate Investors and Developers: A significant portion of Broadway Financial's loan portfolio is often dedicated to commercial real estate, including multi-family residential properties and non-owner-occupied commercial properties, catering to investors and developers in its market areas.

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Brian E. Argrett, President and Chief Executive Officer

Brian E. Argrett was appointed CEO of Broadway Financial in April 2021. He joined City First in 2011, bringing extensive expertise in financing companies in underserved communities with both debt and equity as a private equity investor and fund manager. He led the historic merger of City First and Broadway in 2021, creating the largest Black-led minority depository institution. Mr. Argrett was also the founder and managing partner of Fulcrum Capital Group, an investment manager, and Fulcrum Capital Partners, L.P., an institutionally backed private equity limited partnership. He also served as President, CEO, and director of Fulcrum Venture Capital Corporation, a federally licensed and regulated Small Business Investment Company. Prior to Fulcrum, he was an attorney with the Pircher, Nichols & Meeks real estate law firm. He was a presidential appointee to the Community Development Advisory Board of the U.S. Treasury Department under the Obama administration and serves as Chairman of City First Enterprises and City First Foundation.

Zack Ibrahim, Executive Vice President and Chief Financial Officer

Zack Ibrahim was appointed Executive Vice President, Chief Financial Officer, Principal Financial Officer, and Principal Accounting Officer of Broadway Financial, effective May 15, 2024. Before joining City First Broadway, Mr. Ibrahim was Executive Director, Head of Corporate Finance at Texas Capital Bancshares Inc. ("TCB"), where he led TCB's Expense Program.

Elizabeth Sur, Executive Vice President, General Counsel, and Chief Risk Officer

Elizabeth Sur was named Executive Vice President, General Counsel, and Chief Risk Officer of both Broadway Financial and City First Bank, effective May 15, 2024. Her previous experience includes serving as Managing Director and Head of Regulatory Relations for the Americas for Barclays Bank from 2018 to 2022.

Elise Adams, Chief Accounting Officer and Senior Vice President

Elise Adams was appointed Chief Accounting Officer and Senior Vice President of City First Broadway, effective May 15, 2024. Prior to this role, Ms. Adams was Chief Accounting Officer and Corporate Controller for EagleBank, responsible for oversight of the accounting department and reporting functions. She also served as Chief Financial Officer and Controller with Insight Technology Solutions, LLC, and held various accounting and financial positions, including Chief Financial Officer and Executive Vice President, with Old Line Bank.

John A. Allen, Chief Banking Officer

John A. Allen joined City First Bank as Chief Banking Officer on January 13, 2025, reporting directly to President & CEO Brian Argrett. In this role, he oversees Commercial Sales and Banking, Credit Administration, Operations, and Retail. Most recently, Mr. Allen served as Region President for Wells Fargo across the Washington, D.C. metro area.

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The key risks to Broadway Financial (BYFC) primarily revolve around its operational and financial reporting compliance, its sensitivity to interest rate fluctuations, and exposure to climate-related risks.

1. Regulatory Non-Compliance and Financial Reporting Issues: Broadway Financial has faced repeated challenges with the timely filing of its periodic financial reports, such as Form 10-Q, leading to non-compliance notices from Nasdaq. This ongoing issue suggests potential systemic weaknesses in the company's financial reporting processes and internal controls. Such delays can erode investor confidence, strain relationships with regulators, and could ultimately impact the company's listing status.
2. Interest Rate Environment and Net Interest Margin Compression: As a financial institution, Broadway Financial's profitability is significantly influenced by interest rate fluctuations. The bank has faced challenges in its net interest margin, which reflects the difference between interest earned on assets (like loans) and interest paid on liabilities (like deposits). Changes in the interest rate environment can directly impact its lending profitability.
3. Climate Risk Exposure: Broadway Financial's lending portfolio has notable exposure to climate-related risks, particularly in California. A significant portion of its portfolio, estimated at $287.6 million, is in geographical areas identified as high-risk for climate events such as wildfires ($124.3 million), floods ($89.5 million), and coastal property risks ($73.8 million). These exposures could lead to potential loan defaults and impact asset quality.

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The increasing adoption and sophistication of digital-only banking platforms (neobanks and fintechs) which offer competitive or superior user experiences for core banking services (deposits, payments, consumer lending), potentially siphoning off Broadway Financial's customer base and disrupting its traditional branch-based business model.

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Broadway Financial (symbol: BYFC) is a financial institution primarily focused on serving low-to-moderate income communities within urban areas of Southern California (specifically the Los Angeles metropolitan area) and the Washington, D.C. market. Their main products and services include residential mortgage lending (with a particular emphasis on multi-family housing), commercial real estate loans, small business loans, and various deposit products like checking and savings accounts.

Addressable Market Sizes (United States)

• Commercial Real Estate Lending Market: The total commercial real estate (CRE) mortgage borrowing and lending in the U.S. is estimated to have totaled approximately $498 billion in 2024. Another estimate indicates the CRE mortgage market for income-producing properties was roughly $4.5 trillion as of March 2023.
• Multifamily Lending Market: In 2024, multifamily lenders originated a total of $288.7 billion in new mortgages for multifamily properties with five or more units in the U.S. This volume is projected to rise to $297 billion by the end of 2024.
• Commercial Lending Market (including Small Business Loans): The U.S. Commercial Lending Market was estimated at $2,987.59 billion (or approximately $3.0 trillion) in 2024. This market is projected to grow to $3,276.55 billion in 2025 and reach $8,248.51 billion by 2035.

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Broadway Financial (BYFC) is expected to drive future revenue growth over the next 2-3 years through several key strategies:

1. Loan Portfolio Expansion: The company has demonstrated a commitment to expanding its loan portfolio, with total net loans receivable increasing. This growth in its lending activities, particularly in mortgage and commercial loans, directly contributes to higher interest income. For example, total net loans receivable increased by 7.4% to $824.6 million at June 30, 2023, compared to December 31, 2022. More recently, loans receivable held for investment increased by $89.2 million to $977.0 million in Q4 2024. Management has stated its intent to continue growing its loan portfolio prudently.
2. Deposit Gathering and Retention: Broadway Financial is implementing new efforts to retain and gather deposits. An increase in deposits provides a stable and often lower-cost funding source for the company's lending activities, thereby supporting loan growth and overall revenue generation. Total deposits increased by $53.5 million, or 7.2%, during the first six months of 2025.
3. Net Interest Margin (NIM) Improvement: The company has been focused on improving its net interest margin through higher rates earned on interest-earning assets and managing its cost of funds. An improved NIM directly translates to higher net interest income, a primary component of revenue for financial institutions. The net interest margin increased to 2.63% for the second quarter of 2025 from 2.41% for the second quarter of 2024.
4. Strategic and Prudent Growth Initiatives: Broadway Financial's forward-looking statements emphasize "prudent continued growth, greater efficiency, and deeper service to our communities." This overarching strategy suggests a focus on sustainable expansion of its banking operations, leveraging its existing capital and liquidity to increase profitability while maintaining credit quality. The company aims to continue growing wisely and improving profitability.

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Share Issuance

• Broadway Financial completed a private placement in April 2021, issuing 18,474,000 shares of common stock and raising $32.88 million in gross proceeds.
• These shares were issued at $1.78 per share, comprising Class A voting common stock and Class C non-voting common stock.

Inbound Investments

• In December 2021, Broadway Financial was deemed eligible for a $142.5 million equity investment from the U.S. Treasury through the Emergency Capital Investment Program (ECIP).
• This ECIP investment was structured as Senior Perpetual Noncumulative Preferred Stock, featuring a dividend rate between 0.5% and 2%.
• Broadway Financial has received $2.1 million in federal support, including $1.4 million from the Minority Bank Deposit Program and $700,000 from the Community Development Financial Institutions Fund.

Outbound Investments

• In 2023, Broadway Financial made $5.7 million in community development investments.

Capital Expenditures

• In 2024, Broadway Financial invested $2.7 million in its technology infrastructure, primarily to upgrade compliance and risk management systems.