Broadway Financial shares surge 20.25% intraday after restating Q1 2025 results with adjusted ACL and secured borrowing corrections improving net income.

Broadway Financial surged 20.25% intraday following the release of its quarterly report (Form 10-Q) and a restatement amendment (Form 10-Q/A). The report highlighted a 2.58% net interest margin for Q2 2025, up from 2.35% in Q2 2024, driven by lower borrowing costs and improved asset yields. Despite a net loss attributable to common stockholders of $2,000, the company recorded a $454,000 recapture of credit losses and maintained strong credit quality, with non-accrual loans at 0.51% of total loans. The amendment addressed errors in loan participation accounting and an appraisal adjustment, leading to a $1.2 million increase in the allowance for credit losses (ACL) for Q1 2025. However, the restatement likely clarified financial accuracy, and the market reacted favorably to the improved net interest margin and disciplined cost management, which offset the initial negative impact of the restatement.