Broadway Financial Faces Nasdaq Compliance Issues Due to Reporting Delays

Broadway Financial Faces Nasdaq Compliance Challenge Amid Reporting Delays

Broadway Financial Corporation, the parent company of City First Bank, currently navigates a significant compliance challenge following a notice from The Nasdaq Stock Market regarding its non-compliance with Nasdaq Listing Rule 5250(c)(1). This notice, received on November 25, 2025, stems from Broadway's failure to file its Quarterly Report on Form 10-Q for the quarter ending September 30, 2025, by the deadline set by the Securities and Exchange Commission (SEC). While the notice does not lead to immediate repercussions for the listing or trading of Broadway's shares, the potential for future implications looms large if further delays occur.

The delay in filing the Q3 report is attributed to Broadway's need for additional time to assess the accounting of sold loan participations under Accounting Standards Codification Topic 860. This evaluation is crucial as it impacts the company's consolidated financial statements, highlighting the complexities involved in maintaining compliance with regulatory requirements. On November 14, 2025, Broadway had already indicated its inability to meet the filing deadline in a Form 12b-25, suggesting a proactive approach to informing stakeholders of potential issues. Furthermore, the company has been granted an extension until February 16, 2026, to file its Quarterly Report for the quarter ending June 30, 2025, but any future compliance measures will hinge on meeting these deadlines.

To address its current compliance issues, Broadway Financial is required to submit an updated plan to Nasdaq by December 8, 2025. A successful acceptance of this plan could provide the company with additional time to file the overdue Q3 Form 10-Q. These developments are particularly pertinent given Broadway's operations through City First Bank, which focuses on serving low-to-moderate income communities in Southern California and the Washington, D.C. area. The bank offers a variety of residential and commercial real estate loan products, highlighting its commitment to community-oriented banking.

In light of these compliance challenges, Broadway Financial remains focused on its mission of providing financial services to underserved communities while navigating the complexities of regulatory requirements. The outcome of their updated plan submission to Nasdaq will be critical in determining the company's compliance trajectory and ensuring its continued operation in the competitive banking landscape.