Broadway Financial Corporation reported its financial results for the three and nine months ended September 30, 2024, highlighting several key performance metrics and strategic developments. As of September 30, 2024, total assets stood at $1,086.5 million, a slight decrease from $1,093.3 million at the end of 2023. This decline was primarily attributed to reductions in cash and cash equivalents, which fell from $105.2 million to $97.1 million, and a decrease in securities available-for-sale, which dropped from $317.0 million to $238.5 million.

The company experienced a significant increase in loans receivable held for investment, which rose from $880.5 million to $966.8 million, driven by loan originations totaling $136.2 million during the first nine months of 2024. Notably, multi-family loans increased from $561.4 million to $625.7 million, and commercial real estate loans grew from $119.4 million to $163.3 million.

In terms of profitability, Broadway Financial reported net income of $544,000 for the third quarter of 2024, a substantial increase from $86,000 in the same period of 2023. However, net income for the nine months ended September 30, 2024, was $632,000, down from $1.9 million in the prior year. The decrease in year-to-date net income was primarily due to a $3.0 million rise in non-interest expenses, which included increased compensation and professional services costs.

Interest income for the third quarter of 2024 was $16.2 million, up from $11.9 million in the same quarter of 2023, while net interest income before provision for credit losses increased to $8.3 million from $6.8 million. The net interest margin improved to 2.49% from 2.33% year-over-year. However, the average cost of funds rose to 3.23% from 2.47%, reflecting the impact of rising interest rates.

On the strategic front, Broadway Financial executed a 1-for-8 reverse stock split on October 30, 2023, and has been actively addressing material weaknesses in its internal controls over financial reporting. The company has initiated a remediation plan, including hiring additional personnel with relevant expertise and engaging a third-party firm to assist with financial reconciliations.

As of September 30, 2024, total stockholders' equity increased to $286.4 million from $281.9 million at the end of 2023, reflecting a solid capital position. The company continues to maintain a well-capitalized status under regulatory requirements, although it may need to raise additional capital in the future to support growth.