Broadway Financial Corporation Announces Terms of Reverse Stock Split

Broadway Financial Corporation (“Broadway,” “we,” or the “Company”) (Nasdaq Capital Market: BYFC), parent company of City First Bank, National Association, announced today the terms of the Company’s previously disclosed reverse stock split (the “Reverse Split”).

Authorization for the Reverse Split was approved by stockholders at Broadway’s Annual Meeting on June 21, 2023. On September 20, 2023, the Board of Directors selected a Reverse Split ratio of 1-for-8 shares (the “Split Ratio”) pursuant to the authorization approved by stockholders. The Reverse Split will be effective at 12:01 a.m. Eastern Time on November 1, 2023 for all outstanding shares of Broadway’s three classes of common stock: Class A common stock, Class B common stock, and Class C common stock. The Company’s Class A common stock will continue to trade under the symbol “BYFC” and is expected to begin trading on the Nasdaq Capital Market on a split-adjusted basis on November 1, 2023.

The Class B common stock and Class C common stock are not registered for trading and will not be registered after the effective time for the Reverse Split. The new shares of Class B and Class C common stock will be issued with the same restrictive legends that existed on the old shares of Class B and Class C common stock, and will remain nonvoting shares.

As a result of the Reverse Split, every eight shares of the Company’s issued and outstanding common stock will be automatically reclassified into one new share of common stock, which will remain fully paid and non-assessable. The Reverse Split will not modify any rights or preferences of any of Broadway’s common stock, and will be applied uniformly and equally to stockholders, such that the percentage ownership interests in the Company’s equity will not change, except to the extent that the Reverse Split results in a stockholder owning a fractional share. No fractional shares will be issued in connection with the Reverse Split, and in lieu thereof, stockholders who would otherwise be entitled to a fractional share will receive a proportional cash payment based on the closing trading price per share of the Class A common stock on the Nasdaq Capital Market on October 31, 2023, the trading day immediately preceding the effective time of the Reverse Split, as adjusted for the Split Ratio.