BROADWAY FINANCIAL CORP \DE\BYFC

BROADWAY FINANCIAL CORP \DE\ Earnings Per Share Disclosure

10-KFiled Mar 31, 20262 min read
Note 19 – (Loss) Earnings Per Common Share
 
The factors used in the earnings per common share computation follow:
 
   
2025
    
2024
  
   
(In thousands,
except share and per share)
  
Net income attributable to Broadway Financial Corporation
  
$
(24,795
)
  
$
1,929
  
Less: Net income attributable to participating securities
    
–
      
(8
)
Less: Preferred stock dividends -  ECIP
    (3,000 )     (1,567 )
Income available to common stockholders
  
$
(27,795
)
  
$
354
  
                 
Weighted average common shares outstanding for basic earnings per common share
    
8,595,254
      
8,459,460
  
Add: Effects of unvested restricted stock awards
    
–
      
179,200
  
Weighted average common shares outstanding for diluted earnings per common share
    
8,595,254
      
8,638,660
  
                 
Earnings per common share - basic
  
$
(3.23
)
  
$
0.04
  
Earnings per common share - diluted
  
$
(3.23
)
  
$
0.04
  
 
Stock options for 12,500 shares of common stock for the years ended December 31, 2025 and 2024, were not considered in computing diluted earnings per common share because they were anti‑dilutive.
 

Basic earnings per share of common stock is computed pursuant to the two-class method by dividing net loss available to common stockholders less dividends paid on participating securities (unvested shares of restricted common stock) and any undistributed loss attributable to participating securities by the weighted average common shares outstanding during the period. The weighted average common shares outstanding includes the weighted average number of shares of common stock outstanding less the weighted average number of unvested shares of restricted common stock. ESOP shares are considered outstanding for this calculation unless unearned. Diluted earnings per share of common stock includes the dilutive effect of unvested stock awards and additional potential common shares issuable under stock options. No unvested stock awards or potential common shares issuable under stock options were included in diluted earnings per share in either year.

Historical Timeline

Fiscal YearFiled
2025Mar 31, 2026Showing above
2024Mar 31, 2025

About Earnings Per Share Disclosures

The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.

Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.

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