Broadway Financial Corporation Announces Repurchase of Shares

Broadway Financial Corporation (“Broadway” or the “Company”) (Nasdaq Capital Market: “BYFC”), parent company of City First Bank, National Association, today reported that Broadway recently purchased 1,958,173 shares of the Company’s Class A (voting) Common Stock from the Federal Deposit Insurance Corporation (the “FDIC”), which obtained the shares when it was appointed receiver for First Republic Bank upon its closure earlier this year. The purchased shares represented just under 4.0% of the Company’s total voting shares prior to the purchase, and over 2.6% of the Company’s total common equity. Broadway purchased the shares at a price of $0.9095 per share, which represented the 20-day volume weighted average price for the Class A shares over the period ended October 24, 2023.

The nonvoting shares of Class C Common Stock that were held by First Republic Bank were previously purchased by a major money-center financial institution earlier this year. As a result of these sales, the FDIC does not own any shares of Broadway. The Company’s purchase was financed from cash on hand, and the shares will be retired by the Company.

Chief Executive Officer Brian Argrett commented, “I am pleased to announce this repurchase, which eliminates uncertainty regarding the ultimate disposition of the shares that were previously held by First Republic Bank. The shares represented the fifth largest voting position in Broadway and the purchase is an important step in solidifying our long-term base of stockholders, comprised primarily of private institutions, non-profits, and individuals that are committed to supporting our mission. We remain focused on providing best-of-class products and services to the low-to-moderate income communities that we serve and have the equity capital necessary to execute our plans and fulfill our mission.”

“Finally, I wish to thank the staff of the FDIC for their professionalism and continuing support of Broadway, including in connection with the repurchase that we are announcing today.”

After considering the Company’s purchase of these shares of Class A Common Stock, the number of outstanding voting shares of Class A Common Stock decreased to 47,368,368 shares and the total number of outstanding shares of Common Stock decreased to 72,153,502 shares, before considering Broadway’s reverse stock split, expected to be effective November 1, 2023. Pro forma for the reverse stock split (and the Company’s purchase of shares from the FDIC), the number of outstanding voting shares of Class A Common Stock will be 5,921,046 shares and the total number of outstanding shares of Common Stock will be 9,019,187 shares.