Broadway Financial Corporation (BYFC): Business Model Canvas [Dec-2025 Updated]

You're looking to understand the engine behind the largest Black-led Minority Depository Institution, and honestly, it's a compelling story of mission meeting solid balance sheet management. As an analyst who's seen it all, I can tell you that Broadway Financial Corporation (BYFC) isn't just about community lending; it's about execution, evidenced by their 15.69% Community Bank Leverage Ratio as of mid-2025 and a loan book hitting $957.3 million. They are turning their value proposition-financial inclusion for underserved markets-into real revenue, posting trailing twelve-month revenue of $33.41 million by June 30, 2025, all while managing $1.22 billion in total assets. Dive below to see the nine building blocks that make this unique model tick.

Broadway Financial Corporation (BYFC) - Canvas Business Model: Key Partnerships

You're looking at the external relationships that make Broadway Financial Corporation (BYFC)'s mission-driven model work, especially around managing large deposits and community investment mandates. These partnerships are critical for scale and compliance.

IntraFi Deposit Solutions for deposit insurance on large accounts.

Broadway Financial Corporation (BYFC) uses its long-standing partnership with IntraFi Deposit Solutions to provide deposit insurance for accounts exceeding the standard FDIC limit of $250,000. As of March 31, 2025, uninsured deposits at BYFC, which these solutions help manage, represented 34% of total deposits. This contrasts with the 32% reported at December 31, 2024. The reduction in Insured Cash Sweep ('ICS') deposits, which utilize reciprocal arrangements for insurance, was $2.9 million in the first half of 2025. Also, Certificate of Deposit Registry Service ('CDARS') deposits decreased by $3.8 million in Q1 2025.

Other financial institutions like CFG Bank for strategic deposit placements.

Deposits from City First Bank and other affiliates, which include placements with institutions like CFG Bank, contribute to the uninsured deposit base. Total deposits for BYFC stood at $776.5 million as of March 31, 2025, growing to $798.9 million by June 30, 2025. The increase in deposits during the first six months of 2025 was $53.5 million, or 7.2%.

M&T Bank for an agency correspondent relationship.

While specific transaction volumes with M&T Bank aren't public for BYFC, M&T Bank, as of December 31, 2024, reported total consolidated assets of $207.6 billion and deposits of $165.4 billion, indicating the scale available for correspondent services like Treasury Management and Fed Funds Lines of Credit. BYFC significantly reduced its total borrowings by 64.6%, or $126.3 million, to $69.2 million as of June 30, 2025, which lessens the immediate need for wholesale funding often sourced via such relationships.

Government agencies for Community Development Financial Institution (CDFI) funding.

Broadway Financial Corporation (BYFC) operates as a CDFI, requiring a commitment to mission-driven lending. The U.S. Department of the Treasury's CDFI Fund planned to award approximately $348 million in total for Fiscal Year 2025, with $155 million designated for CDFI Program Financial Assistance (FA) and Technical Assistance (TA) Awards. Since 2010, CDFI Program Award recipients have originated over $298 billion in loans and investments in distressed communities.

Local non-profit and community development organizations.

The core mission requires deploying capital into underserved areas. As of June 30, 2025, BYFC's net loans held for investment totaled $957.3 million. The combined entity must deploy at least 60% of its lending into low-to-moderate-income communities. The total assets of the corporation stood at $1.227 billion as of June 30, 2025.

Here's a quick look at the scale of deposit management and mission commitment as of mid-2025:

The reliance on deposit growth, which increased by $53.5 million in the first half of 2025, directly fuels the ability to meet the 60% lending requirement to low-to-moderate-income communities.

Finance: draft 13-week cash view by Friday.

Broadway Financial Corporation (BYFC) - Canvas Business Model: Key Activities

The core operational activities for Broadway Financial Corporation (BYFC) center on traditional community banking functions, heavily weighted toward real estate lending and disciplined balance sheet management as of late 2025.

Residential and commercial real estate loan origination and servicing remains a primary function, as City First Bank, National Association offers a variety of these loan products for consumers, businesses, and non-profit organizations. This activity supports the bank's mission of serving low-to-moderate income communities in Southern California and the Washington, D.C. market. The bank also provides other loan products alongside its depository services.

A significant activity is the active managing of the loan portfolio. As of the close of the second quarter, the net loan portfolio stood at $957.3 million. This figure represented a slight decrease of $11.6 million from the $968.9 million reported at the end of 2024.

Deposit gathering and liability management shows a clear strategic focus on improving the funding mix. During the first half of 2025 (H1 2025), total deposits grew by $53.5 million, which is a 7.2% increase, bringing total deposits to $798.9 million by June 30, 2025. Concurrently, the management executed a major liability reduction, decreasing borrowings by $126.3 million, or 64.6%, down to $69.2 million as of June 30, 2025. This deleveraging directly contributed to a lower cost of funds.

Maintaining strong regulatory capital compliance is a continuous, critical activity. Broadway Financial Corporation kept its capital ratios robust. The Community Bank Leverage Ratio (CBLR) was reported at 15.69% on June 30, 2025, an improvement from 13.96% at the close of 2024.

The bank is also engaged in investing in technology infrastructure for digital banking, evidenced by the offering of Personal Digital Banking and Business Digital Banking services. Furthermore, the appointment of an Executive Vice President, Chief Deposit Officer, whose responsibilities include leading digital banking, signals an ongoing commitment to this area.

Here's a quick look at the key financial metrics tied to these activities as of mid-2025:

The operational focus also includes managing credit quality, which remains strong, with non-accrual loans at 0.42% of total loans as of June 30, 2025.

The bank's activities are supported by its structure, which includes the City First branded family of community development financial institutions.

You're managing a balance sheet where deposit growth is outpacing loan growth, allowing for significant debt paydown. So, the key activities are clearly focused on funding cost reduction and capital strength.

The bank's activities involve offering a variety of deposit products, such as:

• Checking accounts
• Savings accounts
• Negotiable order of withdrawal accounts
• Money market accounts
• Fixed-term certificates of deposit

These are all part of the deposit gathering effort.

Finance: draft 13-week cash view by Friday.

Broadway Financial Corporation (BYFC) - Canvas Business Model: Key Resources

You're looking at the core assets that power Broadway Financial Corporation (BYFC) as of late 2025. These aren't just line items; they are the tangible and intangible foundations of its business model, especially given its unique market position.

The most significant intangible resource is its identity. Broadway Financial Corporation holds the status as the largest Black-led Minority Depository Institution (MDI) in the nation. This status is critical; it drives mission-aligned capital attraction and community trust, which is a resource big banks simply can't replicate. It stems from the merger that created the current entity, positioning it as a national platform for impact investors.

On the balance sheet, the capital strength is a key differentiator. You want to see a bank that can absorb shocks while still deploying capital into its target markets. Here's a snapshot of the hard numbers as of mid-2025:

That CBLR of 15.69% at June 30, 2025, shows a very strong capital base, significantly above the standard regulatory minimums, which gives the institution substantial safety and room to grow.

The deployment of that capital is focused geographically, supported by deep, localized knowledge. This expertise is a resource built over years of operation in specific, often underserved, areas. The core markets where this expertise is concentrated include:

• Southern California
• Washington, D.C.

The net loans figure of $957.3 million as of June 30, 2025, represents the primary earning asset base, reflecting the direct execution of its lending mission in these key regions. The bank's subsidiary, Broadway Federal Bank, f.s.b., is noted as the leading community-oriented savings bank in Southern California, specifically serving low-to-moderate income communities.

So, you've got the mission-driven brand, robust capital, and targeted geographic know-how. Finance: draft 13-week cash view by Friday.

Broadway Financial Corporation (BYFC) - Canvas Business Model: Value Propositions

You're looking at the core value Broadway Financial Corporation (BYFC) delivers, which is rooted in its identity as a mission-driven Community Development Financial Institution (CDFI). This isn't just a tagline; it's backed by concrete balance sheet strength and a focus on specific markets.

Financial inclusion and access to capital for underserved communities

The primary value proposition is providing capital where traditional institutions often won't. As the largest Black-led bank in the U.S., this focus is measurable in its operational scale and regulatory standing. The bank operates through City First Bank, National Association, serving low-to-moderate income communities in Southern California and the Washington, D.C. market. This commitment is recognized by its regulatory standing, as the bank is Rated 'Outstanding' under the Community Reinvestment Act.

• Total Assets as of June 30, 2025: $1.227 billion
• Net Loans held for investment as of June 30, 2025: $957.3 million
• Total Deposits as of June 30, 2025: $798.9 million

Targeted lending for affordable housing and small business growth

The lending portfolio is deliberately structured to support community development, focusing on commercial real estate for affordable housing, small businesses, and nonprofit community facilities. The quality of this mission-focused lending is a key value point, showing underwriting discipline despite the target market.

The bank actively manages its funding sources to support this lending. Borrowings were aggressively reduced by 64.6% from the end of 2024 to $69.2 million by June 30, 2025.

Competitive interest rates on loans and low-fee banking services

The value here is derived from the efficiency of the funding structure, which allows for competitive pricing on the asset side. The net interest margin (NIM) reflects the spread earned on assets after accounting for funding costs. For the second quarter of 2025, the NIM improved to 2.63%, up 22 basis points year-over-year. This improvement was supported by higher asset yields and a lower cost of funds.

• Net Interest Margin (Q2 2025): 2.63%
• Average Asset Yields (Q2 2025): 4.83%
• Average Cost of Funds (Q2 2025): 3.07%

Deposit growth is a key indicator of customer trust in their banking services. Total deposits grew by $53.5 million, or 7.2%, in the first six months of 2025. Also, uninsured deposits, which often seek stability, represented 35% of total deposits as of June 30, 2025.

Stability and integrity as a mission-driven CDFI

Financial integrity and stability are non-negotiable for a mission-focused lender. Broadway Financial Corporation (BYFC) maintains a strong capital cushion, which is crucial for absorbing unexpected losses while continuing its lending mandate. The Community Bank Leverage Ratio (CBLR) was a robust 15.69% at June 30, 2025, significantly above regulatory minimums. This ratio shows the bank has a substantial buffer of capital relative to its total assets. You can see the commitment to stability in the balance sheet management; total borrowings were reduced by $126.3 million in the first half of 2025.

Personalized community banking coupled with digital convenience

The value proposition blends high-touch, personalized community banking-a hallmark of a CDFI operating in specific urban areas-with modern banking expectations. While specific digital adoption metrics aren't detailed in the latest reports, the reliance on partnerships for advanced deposit insurance solutions points to leveraging external digital infrastructure for customer needs.

• Partnership with IntraFi Deposit Solutions used to offer deposit insurance exceeding the FDIC limit of $250,000.
• The bank operates in two primary geographic markets: Southern California and the Washington, D.C. market.

Finance: draft 13-week cash view by Friday.

Broadway Financial Corporation (BYFC) - Canvas Business Model: Customer Relationships

Broadway Financial Corporation (BYFC) employs a relationship-driven, community-focused banking model, operating as the parent of City First Bank, National Association, and holding the distinction of being the largest Black-led bank in the U.S.. This focus is quantified by its status as a Minority Depository Institution (MDI) and a Community Development Financial Institution (CDFI).

The commitment to community is reflected in tangible balance sheet metrics. Total deposits grew by 4.2% in the first quarter of 2025, reaching $776.5 million as of March 31, 2025. Over the first six months of 2025, total deposits increased by $53.5 million, a 7.2% rise from the end of 2024. The loan portfolio, which fuels community investment, stood at $971.2 million in net loans held for investment at March 31, 2025.

The relationship strategy includes dedicated outreach programs for minority small business owners, aligning with its mission to bring capital to historically underserved areas. While specific program participation numbers aren't public, the context of the target market is clear: in 2025, only 23% of low-income U.S. adults are considered financially literate. This gap underscores the necessity of targeted support for small business owners in these communities.

The bank supports its customer base through financial literacy and educational content via social media. This effort addresses a broad need, as community-based financial education programs have been shown to raise budgeting proficiency by 21% among participants with incomes below the poverty line. Furthermore, survey data indicates that 38% of consumers primarily learn about money and financial concepts from family, suggesting the importance of accessible, relatable educational resources.

Personalized service through branch staff and direct lending teams is a cornerstone, supported by management's stated emphasis on investment in people and operational capabilities. The structure of the customer base shows a high degree of reliance on the bank's core services, with uninsured deposits representing 34% of total deposits at the end of Q1 2025, rising to 35% by the end of H1 2025.

Key relationship indicators as of mid-2025:

• Community Bank Leverage Ratio: 15.69% (as of June 30, 2025).
• Total Deposits Growth (H1 2025): $53.5 million.
• Net Loans Held for Investment (Q1 2025): $971.2 million.
• Non-Performing Assets to Total Assets (Q2 2025): 0.36%.

The following table summarizes key metrics related to the customer base and its engagement:

The bank's focus on mission-driven service is a strategic differentiator. Management reaffirmed its focus on growth and profitability while serving mission communities.

Next step: Strategy team to quantify the average loan origination volume for small business clients in Q3 2025 by end of next week.

Broadway Financial Corporation (BYFC) - Canvas Business Model: Channels

You're looking at how Broadway Financial Corporation (BYFC) gets its value proposition-community-focused banking-out to its customers. The channels are a mix of traditional brick-and-mortar presence and necessary digital tools, all anchored to their mission.

Physical branch network in Southern California and Washington, D.C.

Broadway Financial Corporation (BYFC) conducts its operations through its wholly-owned banking subsidiary, City First Bank, National Association. This bank is the leading community-oriented savings bank serving low-to-moderate income communities within the urban areas of Southern California and the Washington, D.C. market. While the exact count of physical branches isn't public in the latest filings, the geographic focus is clearly defined by these two major metropolitan areas. The company is the largest Black-led bank in the U.S., which is a key differentiator in how these physical channels interact with their target segments.

Digital banking platforms (mobile and online banking).

The digital channels support the deposit base, which is crucial for funding their lending activities. As of June 30, 2025, total deposits had grown by 7.2% in the first six months of 2025, reaching a level where uninsured deposits represented 35% of the total. This high percentage of uninsured deposits means the digital platform must effectively integrate with services like IntraFi Deposit Solutions to offer deposit insurance protection for accounts exceeding the FDIC limit of $250,000.

Direct lending teams for commercial and residential real estate.

The lending channel is supported by specialized teams focused on their core mission. Loans held for investment, net of the Allowance for Credit Losses (ACL), stood at $957.3 million as of June 30, 2025. The credit quality in this channel remains tight, with non-accrual loans as a percentage of total loans at only 0.42% at the same date. The net interest margin (NIM) for the second quarter of 2025 was 2.63%, showing the effectiveness of the interest earned on these assets relative to the cost of funds.

ATM network access for deposit and withdrawal services.

ATM access is a necessary component for customer convenience, supporting the deposit-gathering function across Southern California and D.C. The operational footprint is defined by the bank's physical presence in these markets, facilitating basic deposit and withdrawal services for the community-focused customer base.

Targeted community-based marketing and outreach.

Marketing is intrinsically tied to the mission of serving low-to-moderate income communities. The company's commitment is underscored by its status as a Community Development Financial Institution (CDFI). While specific marketing spend figures aren't available, the focus is on building deep community ties, which is a non-traditional marketing channel in itself. The total non-interest expense for Q2 2025 was $7.5 million.

Here are some key financial metrics that frame the scale of Broadway Financial Corporation (BYFC)'s operations as of mid-2025:

The reduction in borrowings is a significant financial action supporting the channel strategy, as it frees up capital. Total borrowings were reduced by $126.3 million, or 64.6%, from December 31, 2024, to June 30, 2025. This move improves the net interest margin and creates capacity for future loan growth, which is how they fund their direct lending channel.

Finance: draft 13-week cash view by Friday.

Broadway Financial Corporation (BYFC) - Canvas Business Model: Customer Segments

You're looking at the core of Broadway Financial Corporation (BYFC)'s mission-driven strategy, which is entirely focused on specific, underserved urban markets. The customer base isn't broad; it's intentionally concentrated to execute its Community Development Financial Institution (CDFI) mandate in Southern California and the Washington, D.C. market. This focus dictates every lending and deposit decision.

The primary customer groups Broadway Financial Corporation (BYFC) serves are:

• Low-to-moderate-income individuals and families.
• Small businesses and commercial real estate investors operating within their target urban areas.
• Non-profit organizations dedicated to community development, affordable housing, and community facilities.
• Impact investors who prioritize Environmental, Social, and Governance (ESG) alignment with their capital deployment.

The demographic concentration is a key differentiator, reflecting its history as the largest Black-led bank in the U.S. As of the last reported figure, African American communities represented 68.3% of Broadway Financial Corporation (BYFC)'s customers (Q4 2023). This figure is the most recent real-life statistical anchor for that specific segment.

The lending activity in 2025 clearly shows where the capital is being deployed to serve these segments. As of June 30, 2025, Loans Held for Investment, Net of the Allowance for Credit Losses (ACL), stood at $957.3 million. This portfolio supports the core customer segments directly.

Here's a breakdown of the lending focus, using the most recent segment-relevant data available, even if some figures predate late 2025:

The bank's status as a Community Development Financial Institution (CDFI) and a Certified B Corp directly attracts the impact investor segment. These investors look for measurable social returns alongside financial ones. The bank's strong capital position supports this mission-first approach; the Community Bank Leverage Ratio (CBLR) was 15.69% at June 30, 2025, which is well above the regulatory minimum.

The focus on low-to-moderate income (LMI) areas is also reflected in the types of loans supported by the portfolio, which includes investments in affordable housing and nonprofit community facilities. The bank's total assets at June 30, 2025, were approximately $1.227 billion, providing the necessary scale to deploy capital into these targeted community segments.

Finance: draft 13-week cash view by Friday

Broadway Financial Corporation (BYFC) - Canvas Business Model: Cost Structure

You're looking at the hard numbers that make up the cost side of Broadway Financial Corporation (BYFC)'s business as of late 2025. Honestly, understanding these expenses is key to seeing where the bank is putting its capital to work, especially after the operational challenges seen earlier in the year.

The cost structure is heavily influenced by funding costs, operational overhead, and setting aside reserves for potential loan issues. Here's a breakdown of the latest figures we have for you.

Interest Expense on Deposits and Borrowings

Broadway Financial Corporation (BYFC) actively managed its funding costs. For the first six months of 2025 (H1 2025), the bank reported a significant $2.0 million decrease in interest expense. This reduction was directly tied to a decline in interest paid on borrowings, which resulted from a decrease in the average balance of those borrowings. This deleveraging effort materially lowered the cost of funds.

Non-Interest Expense

The operational overhead, or non-interest expense, showed some volatility due to one-time events. For the second quarter of 2025 (Q2 2025), Non-Interest Expense was reported at $7.5 million. This was an increase of $242 thousand, or 3.3%, compared to Q2 2024. However, this figure for Q2 2025 benefited from the non-recurrence of a major operational loss that hit Q1 2025.

To give you a clearer picture of the recent expense profile, look at this comparison:

Personnel Costs (Salaries and Benefits)

Personnel costs are a major component of the non-interest expense base, reflecting Broadway Financial Corporation (BYFC)'s stated investment in its team. In the first quarter of 2025 (Q1 2025), compensation and benefits expense increased by $1.0 million year-over-year. This increase included $122 thousand in severance expense. Management noted these investments were made to support operational capabilities, improve the control environment, and promote continued growth.

Provision for Credit Losses

The cost associated with potential loan defaults, the Provision for Credit Losses (PCL), was a notable headwind in the first quarter. For the three months ended March 31, 2025 (Q1 2025), Broadway Financial Corporation (BYFC) recorded a PCL of $689 thousand. This was primarily driven by one new loan moving to non-accrual status. For context, the PCL in Q1 2024 was $260 thousand.

The Allowance for Credit Losses (ACL) stood at $8.8 million as of March 31, 2025.

Technology and Infrastructure Investment Costs

While specific line-item costs for technology and infrastructure weren't explicitly detailed as a standalone financial number in the latest releases, the narrative points to significant spending on operational improvements. The increase in compensation and benefits, which included severance, was explicitly linked to investments in people to improve the control environment and efficiency. Furthermore, the Q1 2025 results mentioned that professional services expense decreased by $710 thousand, which often relates to consulting or remediation projects, suggesting a shift in how external resources were being managed versus internal staffing investments.

Here are the key cost drivers for Q1 2025:

• Compensation and Benefits increase: $1.0 million
• Severance expense component: $122 thousand
• Provision for Credit Losses: $689 thousand
• Professional Services expense decrease: $710 thousand

Broadway Financial Corporation (BYFC) - Canvas Business Model: Revenue Streams

You're looking at how Broadway Financial Corporation (BYFC) brings in the money, which, as a savings and loan holding company, centers heavily on its lending activities. The revenue streams are fundamentally tied to the net interest spread it earns on its assets, primarily loans.

The core of the revenue generation is the Net Interest Income from the loan portfolio. For the first half of 2025 (H1 2025), this key metric was reported at $15.8 million. This figure reflects the interest earned on the loans held for investment, which stood at $957.3 million as of June 30, 2025.

Beyond the loan portfolio, interest income from the investment securities portfolio also contributes. For the first six months of 2025, the Interest income from investment securities, specifically interest on available-for-sale securities, totaled $2.379 million.

The overall revenue picture for the period ending mid-2025 shows the trailing twelve-month revenue was $33.41 million as of June 30, 2025. Looking at the most recent quarter, the reported quarterly revenue for Q2 2025 was $8.38 million.

Non-Interest Income is the third pillar, derived from sources like service charges, fees, and loan sales. While the specific 2025 breakdown isn't fully detailed in the latest reports, the components are clear. For context, the total Non-interest Income for the full year 2024 was $1.6 million.

Here's a quick look at how these key revenue figures stack up:

You can see the core business is interest-driven. The net interest margin (NIM) for Q2 2025 was 2.63%, an improvement of 22 basis points year-over-year, helped by lower funding costs from reduced borrowings.

The sources feeding the interest income are clear:

• Interest and fees on loans receivable (Q2 2025: $12.658 million).
• Interest on available-for-sale securities (Q2 2025: $1.171 million).

The Non-Interest Income streams Broadway Financial Corporation (BYFC) relies on include:

• Service charges on deposit accounts.
• Fees derived from loan servicing and origination.
• Income from the sale of loan participations.

The focus on reducing borrowings, which fell to $69.2 million by June 30, 2025, directly impacts the cost side, which in turn boosts the net interest income that flows into the top-line revenue figures.