Broadway Financial Corporation operates as the holding company for City First Bank, National Association that provides various banking products and services.
The company is headquartered in Los Angeles, California. The company operates various retail banking offices located in California (in Los Angeles and the nearby city of Inglewood) and in Washington, D.C. The company’s principal business consists of attracting deposits from the general public in the areas surrounding its branch offices, lo...
Broadway Financial Corporation operates as the holding company for City First Bank, National Association that provides various banking products and services.
The company is headquartered in Los Angeles, California. The company operates various retail banking offices located in California (in Los Angeles and the nearby city of Inglewood) and in Washington, D.C. The company’s principal business consists of attracting deposits from the general public in the areas surrounding its branch offices, loan customers, large non-profit entities, local municipalities, and depositors who believe in the bank’s mission-driven focus. These deposits, together with funds generated from operations and borrowings, primarily in loans secured by residential properties with five or more units (‘multi-family’) and commercial real estate. The company’s assets also include loans secured by commercial business assets as well as residential properties with one-to-four units (‘single-family’). In addition, the company invests in securities issued by federal government agencies, residential mortgage-backed securities and other investments.
Lending Activities
The company's loan portfolio primarily consists of mortgage loans, which are secured by multi-family residential properties, single-family residential properties and commercial real estate, including charter schools, community facilities, and churches. The remainder of the loan portfolio consists of commercial business loans, loans guaranteed by the Small Business Administration (the ‘SBA’) and construction-to-permanent loans.
Multi-Family and Commercial Real Estate Lending
The company offers adjustable-rate loans with interest rates that adjust either semi-annually or semi-annually upon expiration of an initial three- or five-year fixed rate period. Borrowers are required to make monthly payments under the terms of such loans. Loans secured by multi-family and commercial properties are granted based on the income producing potential of the property and the financial strength of the borrower.
Single Family Mortgage Lending
The company purchases or originates loans secured by single family residential properties, including investor-owned properties, with maturities of up to 30 years.
The company offers loans with interest rates that adjust either semi-annually or semi-annually upon expiration of an initial three- or five-year fixed rate period. The company qualifies its ARM Loan borrowers based upon the fully indexed interest rate (SOFR or other index plus an applicable margin) provided by the terms of the loan. The ARM Loans that the company offers has a lifetime adjustment limit that is set at the time that the loan is approved.
The mortgage loans that the company originates include due-on-sale clauses, which provide it with the contractual right to declare the loan immediately due and payable if the borrower transfers ownership of the property.
Construction Lending
The company provides loans for the construction of single family, multi-family and commercial real estate projects and for land development. It generally makes construction and land loans at variable interest rates based upon the applicable Treasury Index plus a margin.
The company specializes in the origination of construction loans for affordable housing developments where rents are subsidized by housing authority agencies.
Commercial Lending
The company's commercial lending portfolio consists of loans and lending activities to businesses in its market area that are secured by business assets including inventory, receivables, machinery, and equipment.
SBA Guaranteed Loans
The company is an approved SBA lender. The company originates loans in the Washington, D.C, Maryland, and Virginia under the SBA's 7(a), SBA Express, International Trade and 504(a) loan programs, in conformity with SBA underwriting and documentation standards. SBA loans are similar to commercial business loans but have additional credit enhancement provided by the U.S. Federal Government with guarantees between 50-85%. Certain loans classified as SBA are secured by commercial real estate property. All other SBA loans are secured by business assets.
Investment Activities
As of December 31, 2023, the company’s securities portfolio primarily consisted of federal agency debt, mortgage-backed securities, bonds issued by the United States Treasury and the SBA, and municipal bonds.
Sources of Funds
Deposits are the company's primary source of funds for supporting its lending and other investment activities and general business purposes. In addition to deposits, it obtains funds from the amortization and prepayment of loans and investment securities, sales of loans and investment securities, advances from the FHLB generated by operations.
Deposits
The company's deposits principally consist of savings accounts, checking accounts, interest checking accounts, money market accounts, and fixed term certificates of deposit. The company relies on customer service and long-standing customer relationships to attract and retain deposits. It seeks to maintain and increase the company's retail ‘core’ deposit relationships, consisting of savings accounts, checking accounts and money market accounts.
The company participates in a deposit program called the Certificate of Deposit Account Registry Service (CDARS). CDARS is a deposit placement service that allows it to place the company's customers' funds in FDIC insured certificates of deposit at other banks, and at the same time, receive an equal sum of funds from the customers of other banks in the CDARS Network (CDARS Reciprocal).
Regulation
The company is regulated by the Board of Governors of the Federal Reserve System (FRB).
The bank is regulated by the Office of the Comptroller (OCC) of the Currency and the Federal Deposit Insurance Corporation (FDIC). The company's deposits are insured up to applicable limits by the FDIC. The bank is also a member of the Federal Home Loan Bank of San Francisco (FHLB).
The bank is a member of the Federal Reserve System and is subject to certain regulations of the Federal Reserve Bank (FRB), including regulations concerning reserves required to be maintained against deposits, transactions with affiliates, it is regulated, examined, and supervised by the FRB and the Federal Reserve Bank of Richmond (FRBR) and is also required to file certain reports and otherwise comply with the rules and regulations of the Securities and Exchange Commission (SEC) under the federal securities laws. The company is subject to consumer protection regulations promulgated by the Consumer Financial Protection Bureau (CFPB).
The bank is also subject to federal fair lending laws, including the Equal Credit Opportunity Act (ECOA) and the Federal Housing Act (FHA). The bank is subject to OCC regulations implementing the privacy protection provisions of federal law.
The company’s CRA performance was rated by the OCC as ‘outstanding’ in their most recent CRA examination which was completed in 2022.
History
Broadway Financial Corporation was founded in 1946. The company was incorporated under Delaware law in 1995.
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