Executive Summary

Q4 2024 delivered modest profitability with net income attributable to common stockholders of $0.55M ($0.06 diluted EPS), improving sequentially versus Q3’s $(0.23)M loss to common, but down sharply YoY due to a $3.7M CDFI grant in Q4 2023 that inflated the prior-year base .
Core trends were constructive: deposits rose by >$73M in Q4, the bank repaid its $100M BTFP borrowing in December, and total borrowings fell by ~$135M in 2024, improving the funding mix; management expects this to aid 2025 performance .
Net interest income grew 11.9% YoY to $8.0M and NIM held around 2.42% (up 2 bps YoY, down 7 bps sequentially), as higher asset yields offset a higher 3.23% average cost of funds; credit quality remained strong with one $264k non-accrual and no charge-offs .
No formal guidance or earnings call transcript was available; the narrative emphasizes funding mix improvement, expense discipline, and pristine credit as catalysts for sentiment re-rating despite margin pressure and elevated cost of funds .

What Went Well and What Went Wrong

What Went Well
- Funding mix and liquidity improved: deposits increased by >$73M in Q4, while total borrowings fell $134.7M in 2024, including full BTFP repayment in December .
- Core earning power stabilized: net interest income rose to $7.997M (+11.9% YoY), supported by a 55 bps increase in yield on interest-earning assets to 4.78% .
- Credit quality remained excellent: one non-accrual loan ($264k), ACL/loans 0.83%, no charge-offs in Q4 or 2024 .
- Management quote: “we grew deposits by over $73 million in the fourth quarter… [and] I am optimistic that the re-shifting of our funding mix from higher cost borrowings to lower cost deposits will help improve performance in 2025” .
What Went Wrong
- YoY comps were tough due to one-time grant: non-interest income fell to $0.56M vs $4.48M in Q4 2023 when BYFC recognized a $3.7M CDFI grant; EPS dropped from $0.31 to $0.06 .
- NIM remains compressed versus pre-2023 levels, with the average cost of funds rising to 3.23% despite sequential operating improvements .
- Operating costs remain elevated YoY: FY non-interest expense rose 9.3% on investments in talent and internal controls (though Q4 fell 6.5% YoY on lower professional fees), highlighting continued expense pressure .

Financial Results

P&L comparison (YoY and sequential):

Metric	Q4 2023	Q2 2024	Q3 2024	Q4 2024
Total interest income ($M)	$12.62	$15.49	$16.17	$15.76
Interest expense ($M)	$5.47	$7.57	$7.84	$7.77
Net interest income ($M)	$7.15	$7.92	$8.33	$8.00
(Recovery)/Provision for credit losses ($M)	$0.13	$0.49	$0.40	$(0.49)
Non-interest income ($M)	$4.48	$0.27	$0.42	$0.56
Non-interest expense ($M)	$7.71	$7.28	$7.59	$7.21
Pre-tax income ($M)	$3.79	$0.42	$0.75	$1.84
Income tax expense ($M)	$1.18	$0.15	$0.21	$0.52
Net income attributable to BYFC ($M)	$2.61	$0.27	$0.52	$1.30
Net income to common ($M)	$2.61	$0.27	$(0.23)	$0.55
Diluted EPS ($)	$0.31	$0.03	$(0.03)	$0.06
Net interest margin (%)	2.40%	2.40%	2.49%	2.42%

Balance sheet and credit KPIs:

KPI	Dec 31, 2023	Jun 30, 2024	Sep 30, 2024	Dec 31, 2024
Loans HFI – gross ($M)	$887.81	$946.84	$975.32	$976.96
Deposits ($M)	$682.64	$687.37	$672.25	$745.40
Total borrowings ($M)	$396.79 (FHLB 209.32 + Repo 73.48 + BTFP 100.00 + Notes 14.00)	$381.90 (FHLB 209.24 + Repo 72.66 + BTFP 100.00)	$398.37 (FHLB 208.57 + Repo 89.80 + BTFP 100.00)	$262.14 (FHLB 195.53 + Repo 66.61)
Equity/Assets (%)	20.50%	20.65%	20.86%	21.87%
Book value per share ($)	$14.65	$14.49	$14.97	$14.82
Uninsured deposits (% of total)	37%	35%	34%	32%
Non-performing assets/Assets (%)	0.00%	0.02%	0.02%	0.02%
Non-accrual loans ($000s)	$0	$328	$291	$264
ACL/Loans (%)	0.83%	0.86%	0.87%	0.83%
Loan originations ($000s, quarter)	$49,870	$25,510	$39,195	$21,497

Asset yields and funding costs:

Metric	Q4 2023	Q2 2024	Q3 2024	Q4 2024
Yield on avg interest-earning assets (%)	4.23%	4.71%	4.82%	4.78%
Avg cost of interest-bearing liabilities (%)	2.56%	3.19%	3.23%	3.23%

Estimate comparison
- Wall Street consensus EPS and revenue estimates for Q4 2024 were not available from S&P Global at the time of this analysis; therefore, no beat/miss assessment is provided.

Guidance Changes

No formal quantitative guidance was disclosed in the Q4 press release.

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue/Interest income	N/A	N/A	N/A	N/A
NIM/Margins	N/A	N/A	N/A	N/A
OpEx	N/A	N/A	N/A	N/A
Credit costs (provision)	N/A	N/A	N/A	N/A
Capital returns/dividends	N/A	N/A	N/A	N/A

(Management commentary pointed to improving funding mix and cost of funds, but no explicit targets or ranges were provided.)

Earnings Call Themes & Trends

No earnings call transcript was available; themes below reflect management’s press release commentary across recent quarters.

Topic	Previous Mentions (Q2, Q3 2024)	Current Period (Q4 2024)	Trend
Funding mix, deposits	Q2: deposits +$4.7M YTD with rising ICS; focus on lowering funding costs . Q3: deposits −$10.4M YTD, ICS up, uninsured 34% .	Deposits +$62.8M YoY; >$73M added in Q4; uninsured down to 32% .	Improving mix/liquidity.
Borrowings, BTFP	Q2: borrowings $381.9M . Q3: borrowings $398.4M .	Borrowings down to $262.1M; $100M BTFP repaid in Dec .	De-risking, lower cost funding.
NIM/Cost of funds	Q2 NIM 2.40%, cost 3.19% . Q3 NIM 2.49%, cost 3.23% .	NIM 2.42%, cost 3.23% .	Stable-to-slight compression sequentially.
Credit quality	Q2: 2 non-accruals $328k; no charge-offs . Q3: 1 non-accrual $291k; no charge-offs .	1 non-accrual $264k; ACL/loans 0.83%; no charge-offs .	Very strong, stable.
Expenses/internal controls	Q2: higher comp and pro services for control remediation . Q3: elevated pro fees; Q3 OpEx +8.8% YoY .	Q4 OpEx −6.5% YoY on lower professional fees; FY OpEx +9.3% .	Cost discipline improving in Q4.
Securities/OCI, rates	Q3: AFS appreciated $6.0M; OCI +$4.2M on rate cuts .	AFS +$3.2M in 2024; OCI +$2.3M on Fed cuts in Sep/Nov/Dec .	Positive AFS valuation tailwind.
Capital/book value	BVPS $14.49 (Q2), $14.97 (Q3) .	BVPS $14.82; Equity/Assets 21.87% .	Strong capital base.

Management Commentary

Strategy and outlook: “I am optimistic that the re-shifting of our funding mix from higher cost borrowings to lower cost deposits will help improve performance in 2025” .
Sequential improvement drivers: “Net income attributable to common shareholders increased $788 thousand during the fourth quarter compared to the third quarter of 2024. The increase was due to a reduction in interest expense, recovery on the loan provision, higher non-interest income, and a decline in non-interest expenses” .
Growth and credit: “We experienced significant loan and deposit growth while maintaining strong credit quality … we grew deposits by over $73 million in the fourth quarter” .

Q&A Highlights

No Q&A highlights are available; no earnings call transcript was provided in the company’s filings/press releases set for Q4 2024.

Estimates Context

Wall Street consensus (S&P Global) for Q4 2024 EPS and revenue was not available at the time of this analysis; as such, no beat/miss vs consensus is shown. Where estimates are not presented, investors should assume S&P Global consensus data was unavailable during this query window.

Key Takeaways for Investors

Funding profile improved materially: deposit inflows and full BTFP repayment de-risk the balance sheet and should lower funding costs over time .
Core earnings are stabilizing: NII grew double digits YoY; sequential net income to common improved by $0.79M on lower interest expense, a provision recovery, and lower OpEx .
Credit remains a differentiator: one small non-accrual, no charge-offs, and ACL/loans at 0.83% underpin resilience in a still-tight margin environment .
Watch NIM trajectory: average cost of funds remains elevated at 3.23%; sustained deposit mix shift toward lower-cost funding is key to expanding margins in 2025 .
Expense discipline is emerging: after heavy remediation-related spend in 2023–24, Q4 OpEx declined 6.5% YoY; continued normalization would support operating leverage .
YoY EPS optics are noisy: the absence of the $3.7M CDFI grant from Q4 2023 explains the YoY EPS decline; focus on sequential progression and structural funding improvements .
Potential catalysts: further deposit growth, continued reduction in wholesale borrowings, and steady credit quality could drive multiple expansion for a well-capitalized community bank .

BROADWAY FINANCIAL CORP \DE\ (BYFC)·Q4 2024 Earnings Summary