Broadway Financial Corporation Announces Results of Operations for Second Quarter 2025
For the first six months of 2025, the Company reported consolidated net loss before preferred dividends of $1.3 million, or ($0.15) per diluted share, compared to consolidated net income before preferred dividends of $105 thousand, or $0.01 per diluted share, for the first six months of 2024. Net loss attributable to common stockholders was $2.8 million during the first six months of 2025 after deducting preferred dividends of $1.5 million, compared to net income attributable to common stockholders of $105 thousand for the first six months of 2024. Diluted loss per common share was ($0.32) for the first six months of 2025, compared to $0.01 per diluted common share for the first six months of 2024. Diluted loss per common share for the first six months of 2025 reflects preferred dividends of $0.18 per diluted common share.
Second Quarter 2025 Highlights:
The net interest margin increased by 22 basis points to 2.63% for the second quarter of 2025, compared to 2.41% for the second quarter of 2024. This increase was driven largely by growth in the yield on average loan balances and a reduction in the cost of interest-bearing liabilities
Total deposits increased by $53.5 million, or 7.2%, during the first six months of 2025 compared to December 31, 2024
Capital ratios remain strong with a Community Bank Leverage Ratio of 15.69% at June 30, 2025 compared to 13.96% at December 31, 2024
Credit quality remains strong with non-accrual loans to total loans at 0.42% and non-performing loans to total assets at 0.36%
Borrowings were $69.2 million at June 30, 2025 compared to $195.5 million at December 31, 2024, a reduction of $126.3 million, or 64.6%
Chief Executive Officer, Brian Argrett commented, 'We had a favorable second quarter of 2025, and continue to build on this positive momentum. Deposits grew by 2.9%, or $22.4 million, since March 31, 2025 and 7.18%, or $53.5 million, this year. We reduced borrowings by $126.3 million to $69.2 million as of June 30, 2025 resulting in lower cost of funds. The net interest margin was 2.63% for the three months ended June 30, 2025, which is an improvement of 22 basis points compared to the same three-month period of last year.'
'Our results for the second quarter of 2025 were positively impacted by a reduction in non-interest expense of 26.23%, or $2.7 million, since last quarter, mainly due to the operational loss associated with the $1.9 million fraudulent wire during the first quarter, which will result in a corresponding gain if recovered. In addition, our second quarter financial results were positively impacted by a reduction in the provision for loan losses of $266 thousand, mainly due to a decrease in loans.'
'We remain focused on executing our strategic goals and mission objectives, building a stronger balance sheet and improving profitability in order to drive long-term performance that will help support growth in the low-to-moderate income communities within our markets.'
'As always, I thank our employees for their endless dedication and our stockholders, depositors, and board for their continued support of our strategy and mission. Your support and efforts are essential in our ability to improve our efficiency and promote growth.'
Income Statement
Net Interest Income before provision for credit losses for the second quarter of 2025 totaled $7.8 million, representing a decrease of $163 thousand, or 2.1%, from net interest income before provision for credit losses of $7.9 million for the second quarter of 2024. The decrease resulted from a $1.3 million decrease in interest income, primarily due to a decrease in interest on interest-bearing deposits, as a result of a decrease in the average balance of interest-bearing deposits, as well as a decline in interest income on available-for-sale securities due to a decrease in the average balance of available-for-sale securities. These decreases were partially offset by a $1.1 million decrease in interest expense due to a decline in interest on borrowings as a result of a decrease in the average balance of borrowings. The Company reduced borrowings to improve the net interest margin and to support capacity for future loan growth.The net interest margin increased to 2.63% for the second quarter of 2025 from 2.41% for the second quarter of 2024, due to an increase in the average rate earned on interest-earning assets, which increased to 4.83% for the second quarter of 2025 from 4.71% for the second quarter of 2024, and a decrease in the cost of funds, which decreased to 3.07% for the second quarter of 2025 from 3.19% for the second quarter of 2024.Net Interest Income before provision for credit losses for the first six months of 2025 totaled $15.8 million, representing an increase of $358 thousand, or 2.3%, from net interest income before provision for credit losses of $15.4 million for the first six months of 2024. The increase resulted from a $2.0 million decrease in interest expense due to a decline in interest on borrowings as a result of a decrease in the average balance of borrowings. The Company reduced borrowings to improve the net interest margin and to support capacity for future loan growth. This increase was partially offset by a $1.7 million decrease in interest income, primarily due to a decrease in interest on interest-bearing deposits, as a result of a decrease in the average balance of interest-bearing deposits, as well as a decline in interest income on available-for-sale securities due to a decrease in the average balance of available-for-sale securities.The net interest margin increased to 2.67% for the first six months of 2025 from 2.34% for the first six months of 2024, due to an increase in the average rate earned on interest-earnings assets, which increased to 4.83% for the first six months of 2025 from 4.59% for the first six months of 2024, and a decrease in the cost of funds, which decreased to 3.02% for the first six months of 2025 from 3.11% for the first six months of 2024.
Recapture of/Provision for Credit Losses resulted in a recapture of credit losses of $266 thousand for the three months ended June 30, 2025, compared to a provision for credit losses of $494 thousand for the three months ended June 30, 2024. This recapture was mainly due to the decrease in loans.The Provision for Credit Losses was $423 thousand for the six months ended June 30, 2025, compared to $754 thousand for the six months ended June 30, 2024. There were no loan charge-offs recorded during the six months ended June 30, 2025 or 2024.The allowance for credit losses ('ACL') increased to $8.6 million as of June 30, 2025, compared to $8.1 million as of December 31, 2024. The Bank had four non-accrual loans at June 30, 2025 with an unpaid principal balance of $4.0 million. Credit quality remains strong with non-accrual loans as a percentage of total loans at 0.42% and non-performing assets to total assets of 0.36% despite the increase in non-accrual loans.
Non-interest Expense was $7.5 million for the second quarter of 2025, compared to $7.3 million for the second quarter of 2024, representing an increase of $242 thousand, or 3.3%. The increase was primarily due to increases of $224 thousand in professional services and $112 thousand in information services, partially offset by a $60 thousand decrease in supervisory costs and a $57 thousand decrease in compensation and benefits expense.Non-interest Expense was $17.7 million for the first six months of 2025, compared to $15.1 million for the first six months of 2024, representing an increase of $2.6 million, or 17.4%. The increase was primarily due to a $1.9 million loss incurred from wire fraud, which will result in a gain if recovered, as well as an $830 thousand increase in compensation and benefits expense. The increase in compensation and benefits expense was primarily attributable to the addition of full-time employees during 2024 in various production and administrative positions as part of the Bank's efforts to expand its operational capabilities to grow its balance sheet. These increases were partially offset by a $485 thousand decrease in professional services expense.
Income Tax Expense was $257 thousand for the second quarter of 2025 compared to $146 thousand for the second quarter of 2024. The increase in tax expense reflected an increase of $437 thousand in pre-tax income between the two periods. The effective tax rate was 30.09% for the second quarter of 2025, compared to 35.01% for the second quarter of 2024.The Company recorded an income tax benefit of $435 thousand for the first six months of 2025 and income tax expense of $89 thousand for the first six months of 2024. The decrease in tax expense reflected a decrease of $1.9 million in pre-tax income between the two periods. The effective tax rate was 25.60% for the first six months of 2025, compared to 50.28% for the first six months of 2024.
Balance Sheet
Total Assets decreased by $76.3 million at June 30, 2025, compared to December 31, 2024, reflecting decreases in cash and cash equivalents of $31.9 million, securities available-for-sale of $25.9 million, net loans of $11.6 million and FHLB stock of $5.9 million. The reduction in securities available-for-sale was mainly due to maturities and paydowns, and the cash from the securities in addition to the cash on hand was used to reduce borrowings, leading to the decrease in stock held with FHLB.
Loans Held for Investment, Net of the ACL, decreased by $11.6 million to $957.3 million at June 30, 2025, compared to $968.9 million at December 31, 2024. The decrease was primarily due to loan payoffs and repayments.
Deposits increased by $53.5 million, or 7.2%, to $798.9 million at June 30, 2025, from $745.4 million at December 31, 2024. The increase in deposits was attributable to an increase of $67.7 million in certificates of deposit accounts, partially offset by decreases of $4.5 million in savings deposits, $3.5 million in Certificate of Deposit Registry Service ('CDARS') deposits (CDARS deposits are similar to ICS deposits, but involve certificates of deposit, instead of money market accounts), $3.3 million in liquid deposits (demand, interest checking, and money market accounts), and $2.9 million in Insured Cash Sweep ('ICS') deposits (ICS deposits are the Bank's money market deposit accounts in excess of FDIC insured limits whereby the Bank makes reciprocal arrangements for insurance with other banks). As of June 30, 2025, our uninsured deposits, including deposits from City First Bank and other affiliates, represented 35% of our total deposits, compared to 32% as of December 31, 2024. We leverage our long-standing partnership with IntraFi Deposit Solutions to offer deposit insurance for accounts exceeding the FDIC deposit insurance limit of $250,000.
Total Borrowings decreased by $129.1 million to $133.0 million at June 30, 2025, from $262.1 million at December 31, 2024, primarily due to a $135.3 million decrease in FHLB advances, partially offset by a $9.2 million increase in secured borrowings related to participation loans.
Asset Quality
Allowance for Credit Losses was 0.89% of total loans held for investment at June 30, 2025, compared to 0.83% at December 31, 2024.
Nonperforming Assets were $4.4 million at June 30, 2025, compared to $264 thousand at December 31, 2024.
Capital
Stockholders' equity was $285.5 million, or 23.3% of the Company's total assets, at June 30, 2025, compared to $285.2 million, or 21.9% of the Company's total assets, at December 31, 2024.
Book Value per Share was $14.74 at June 30, 2025, compared to $14.82 at December 31, 2024. Capital ratios remain strong with a Community Bank Leverage Ratio of 15.69% at June 30, 2025 compared to 13.96% at December 31,2024.
About Broadway Financial Corporation
Broadway Financial Corporation operates through its wholly-owned banking subsidiary, City First Bank, National Association, which is a leading mission-driven bank that serves low-to-moderate income communities within urban areas in Southern California and the Washington, D.C. market.
City First Bank offers a variety of commercial real estate loan products, services, and depository accounts that support investments in affordable housing, small businesses, and nonprofit community facilities located within low-to-moderate income neighborhoods. City First Bank is a Community Development Financial Institution, Minority Depository Institution, Certified B Corp, and a member of the Global Alliance of Banking on Values. The Bank and the City First network of nonprofits, City First Enterprises, Homes By CFE, and City First Foundation, represent the City First branded family of community development financial institutions, which offer a robust lending and deposit platform.
Contacts
Investor RelationsZack Ibrahim, Chief Financial Officer, (202) 243-7100Investor.relations@cityfirstbroadway.com
Cautionary Statement Regarding Forward-Looking Information
This press release includes 'forward-looking statements' within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts contained in this press release, including statements regarding our future results of operations or financial condition, business strategy and plans and objectives of management for future operations and capital allocation and structure, are forward-looking statements. Forward‑looking statements typically include the words 'expect,' 'estimate,' 'project,' 'budget,' 'forecast,' 'anticipate,' 'intend,' 'plan,' 'may,' 'will,' 'could,' 'should,' 'believes,' 'predicts,' 'potential,' 'continue,' 'poised,' 'optimistic,' 'prospects,' 'ability,' 'looking,' 'forward,' 'invest,' 'grow,' 'improve,' 'deliver' and similar expressions, but the absence of such words or expressions does not mean a statement is not forward-looking. These forward‑looking statements are subject to risks and uncertainties, including those identified below, which could cause actual future results to differ materially from historical results or from those anticipated or implied by such statements. The following factors, among others, could cause future results to differ materially from historical results or from those indicated by forward‑looking statements included in this press release: (1) the level of demand for mortgage and commercial loans, which is affected by such external factors as general economic conditions, market interest rate levels, tax laws, and the demographics of our lending markets; (2) the direction and magnitude of changes in interest rates and the relationship between market interest rates and the yield on our interest‑earning assets and the cost of our interest‑bearing liabilities; (3) the rate and amount of loan losses incurred and projected to be incurred by us, increases in the amounts of our nonperforming assets, the level of our loss reserves and management's judgments regarding the collectability of loans; (4) changes in the regulation of lending and deposit operations or other regulatory actions, whether industry-wide or focused on our operations, including increases in capital requirements or directives to increase allowances for loan losses or make other changes in our business operations; (5) legislative or regulatory changes, including those that may be implemented by the current administration in Washington, D.C. and the Federal Reserve Board; (6) possible adverse rulings, judgments, settlements and other outcomes of litigation; (7) actions undertaken by both current and potential new competitors; (8) the possibility of adverse trends in property values or economic trends in the residential and commercial real estate markets in which we compete; (9) the effect of changes in general economic conditions; (10) the effect of geopolitical uncertainties; (11) the impact of health crises on our future financial condition and operations; (12) the impact of any volatility in the banking sector due to the failure of certain banks due to high levels of exposure to liquidity risk, interest rate risk, uninsured deposits and cryptocurrency risk; and (13) other risks and uncertainties. All such factors are difficult to predict and are beyond our control. Additional factors that could cause results to differ materially from those described above can be found in our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K or other filings made with the SEC and are available on our website at http://www.cityfirstbank.com and on the SEC's website at http://www.sec.gov.
Forward-looking statements in this press release speak only as of the date they are made, and we undertake no obligation, and do not intend, to update these forward-looking statements to reflect events or circumstances occurring after the date of this press release, except to the extent required by law. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.
The following table sets forth the consolidated statements of financial condition as of June 30, 2025 and December 31, 2024.
BROADWAY FINANCIAL CORPORATION
Consolidated Statements of Financial Condition
(In thousands, except share and per share amounts)
June 30, 2025
December 31, 2024
(Unaudited)
Assets:
Cash and due from banks
$ 1,955
$ 2,255
Interest-bearing deposits in other banks
27,559
59,110
Cash and cash equivalents
29,514
61,365
Securities available-for-sale, at fair value (amortized cost of $190,030 and $219,658)
177,977
203,862
Loans receivable held for investment, net of allowance of $8,582 and $8,103
957,293
968,861
Accrued interest receivable
5,109
5,001
Federal Home Loan Bank (FHLB) stock
3,761
9,637
Federal Reserve Bank (FRB) stock
3,543
3,543
Office properties and equipment, net
8,721
8,899
Bank owned life insurance
3,343
3,321
Deferred tax assets, net
8,268
8,803
Core deposit intangible, net
1,618
1,775
Goodwill
25,858
25,858
Other assets
2,387
2,786
Total assets
$ 1,227,392
$ 1,303,711
Liabilities and stockholders' equity
Liabilities:
Deposits
$ 798,922
$ 745,399
Securities sold under agreements to repurchase
63,786
66,610
Borrowings
69,217
195,532
Accrued expenses and other liabilities
9,712
10,794
Total liabilities
941,637
1,018,335
Stockholders' equity:
Non-Cumulative Redeemable Perpetual Preferred stock, Series C; authorized 150,000 shares at
June 30, 2025 and December 31, 2024; issued and outstanding 150,000 shares at
June 30, 2025 and December 31, 2024; liquidation value $1,000 per share
150,000
150,000
Common stock, Class A, $0.01 par value, voting; authorized 75,000,000 shares at
June 30, 2025 and December 31, 2024; issued 6,425,001 shares at June 30, 2025 and
6,349,455 shares at December 31, 2024; outstanding 6,097,773 shares at June 30, 2025
and 6,022,227 shares at December 31, 2024
64
63
Common stock, Class B, $0.01 par value, non-voting; authorized 15,000,000 shares at
June 30, 2025 and December 31, 2024; issued and outstanding 1,425,574 shares at
June 30, 2025 and December 31, 2024
14
14
Common stock, Class C, $0.01 par value, non-voting; authorized 25,000,000 shares at
June 30, 2025 and December 31, 2024; issued and outstanding 1,672,562 at
June 30, 2025 and December 31, 2024
17
17
Additional paid-in capital
143,266
142,902
Retained earnings
10,156
12,911
Unearned Employee Stock Ownership Plan (ESOP) shares
(4,089)
(4,201)
Accumulated other comprehensive loss, net of tax
(8,557)
(11,223)
Treasury stock-at cost, 327,228 shares at June 30, 2025 and at December 31, 2024
(5,326)
(5,326)
Total Broadway Financial Corporation and Subsidiary stockholders' equity
285,545
285,157
Non-controlling interest
210
219
Total liabilities and stockholders' equity
$ 1,227,392
$ 1,303,711
The following table sets forth the consolidated statements of operations for the three and six months ended June 30, 2025 and 2024.
BROADWAY FINANCIAL CORPORATION
Consolidated Statements of Operations
(In thousands, except share and per share amounts)
Three Months Ended
Six Months Ended
June 30,
June 30,
2025
2024
2025
2024
Interest income:
Interest and fees on loans receivable
$ 12,658
$ 12,179
$ 25,348
$ 23,308
Interest on available-for-sale securities
1,171
1,876
2,379
3,951
Other interest income
401
1,433
877
3,022
Total interest income
14,230
15,488
28,604
30,281
Interest expense:
Interest on deposits
4,879
3,086
9,078
5,885
Interest on borrowings
1,596
4,484
3,726
8,954
Total interest expense
6,475
7,570
12,804
14,839
Net interest income
7,755
7,918
15,800
15,442
(Recapture of) provision for credit losses
(266)
494
423
754
Net interest income after (recapture of) provision for credit losses
8,021
7,424
15,377
14,688
Non-interest income:
Service charges
41
38
84
78
Grants
105
–
131
–
Other
209
235
428
501
Total non-interest income
355
273
643
579
Non-interest expense:
Compensation and benefits
4,412
4,469
9,696
8,866
Occupancy expense
485
432
1,025
867
Information services
775
663
1,480
1,370
Professional services
787
563
1,488
1,973
Advertising and promotional expense
61
63
107
91
Supervisory costs
156
216
349
393
Corporate insurance
66
64
133
125
Amortization of core deposit intangible
79
84
157
168
Operational loss
–
–
1,943
–
Other expense
701
726
1,341
1,237
Total non-interest expense
7,522
7,280
17,719
15,090
Income (loss) before income taxes
854
417
(1,699)
177
Income tax expense (benefit)
257
146
(435)
89
Net income (loss)
$ 597
$ 271
$ (1,264)
$ 88
Less: Net (loss) income attributable to non-controlling interest
(6)
2
(9)
(17)
Net income (loss) attributable to Broadway Financial Corporation
$ 603
$ 269
$ (1,255)
$ 105
Less: Preferred stock dividends
750
–
1,500
–
Net (loss) income attributable to common stockholders
$ (147)
$ 269
$ (2,755)
$ 105
(Loss) earnings per common share-basic
$ (0.02)
$ 0.03
$ (0.32)
$ 0.01
(Loss) earnings per common share-diluted
$ (0.02)
$ 0.03
$ (0.32)
$ 0.01
The following tables set forth the average balances, average yields and costs for the periods indicated. All average balances are daily average balances. The yields set forth below include the effect of deferred loan fees, and discounts and premiums that are amortized or accreted to interest income or expense.
For the Three Months Ended
June 30, 2025
June 30, 2024
(Dollars in thousands) (Unaudited)
Average Balance
Interest
Average Yield
Average Balance
Interest
Average Yield
Assets
Interest-earning assets:
Interest-earning deposits
$
24,132
$
266
4.42
%
$
88,294
$
1,189
5.42
%
Securities
182,351
1,171
2.58
%
276,457
1,876
2.73
%
Loans receivable (1)
968,028
12,658
5.24
%
943,072
12,179
5.19
%
FRB and FHLB stock (2)
7,473
135
7.25
%
13,835
244
7.09
%
Total interest-earning assets
1,181,984
$
14,230
4.83
%
1,321,658
$
15,488
4.71
%
Non-interest-earning assets
49,786
53,207
Total assets
$
1,231,770
$
1,375,165
Liabilities and Stockholders' Equity
Interest-bearing liabilities:
Money market deposits
$
133,930
$
336
1.01
%
$
274,915
$
1,623
2.37
%
Savings deposits
46,762
61
0.52
%
57,684
102
0.71
%
Interest checking and other demand deposits
251,146
1,975
3.15
%
73,853
166
0.90
%
Certificate accounts
270,424
2,507
3.72
%
163,237
1,195
2.94
%
Total deposits
702,262
4,879
2.79
%
569,689
3,086
2.18
%
Borrowings
72,962
710
3.90
%
209,261
2,593
4.98
%
Bank Term Funding Program borrowing
–
–
–
%
100,000
1,210
4.87
%
Other borrowings
69,722
886
5.10
%
74,523
681
3.68
%
Total borrowings
142,684
1,596
4.49
%
383,784
4,484
4.70
%
Total interest-bearing liabilities
844,946
$
6,475
3.07
%
953,473
$
7,570
3.19
%
Non-interest-bearing liabilities
101,670
139,900
Stockholders' equity
285,154
281,792
Total liabilities and stockholders' equity
$
1,231,770
$
1,375,165
Net interest rate spread (3)
$
7,755
1.76
%
$
7,918
1.52
%
Net interest rate margin (4)
2.63
%
2.41
%
Ratio of interest-earning assets to interest-bearing liabilities
139.89
%
138.62
%
(1) Amount includes non-accrual loans.
(2) FHLB is Federal Home Loan Bank.
(3) Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.
(4) Net interest rate margin represents net interest income as a percentage of average interest-earning assets.
For the Six Months Ended
June 30, 2025
June 30, 2024
(Dollars in thousands) (Unaudited)
Average Balance
Interest
Average Yield
Average Balance
Interest
Average Yield
Assets
Interest-earning assets:
Interest-earning deposits
$
26,532
$
578
4.39
%
$
97,640
$
2,533
5.22
%
Securities
189,368
2,379
2.53
%
290,721
3,951
2.73
%
Loans receivable (1)
970,241
25,348
5.27
%
925,443
23,308
5.06
%
FRB and FHLB stock (2)
9,320
299
6.47
%
13,777
489
7.14
%
Total interest-earning assets
1,195,461
$
28,604
4.83
%
1,327,581
$
30,281
4.59
%
Non-interest-earning assets
50,061
51,988
Total assets
$
1,245,512
$
1,379,569
Liabilities and Stockholders' Equity
Interest-bearing liabilities:
Money market deposits
$
126,557
$
593
0.94
%
$
272,290
$
3,065
2.26
%
Savings deposits
47,732
129
0.54
%
58,377
204
0.70
%
Interest checking and other demand deposits
253,384
3,886
3.09
%
78,772
311
0.79
%
Certificate accounts
247,498
4,470
3.64
%
164,319
2,305
2.82
%
Total deposits
675,171
9,078
2.71
%
573,758
5,885
2.06
%
FHLB advances
106,106
2,239
4.26
%
209,280
5,191
4.99
%
Bank Term Funding Program borrowing
–
–
–
%
100,000
2,413
4.85
%
Other borrowings
73,237
1,487
4.09
%
76,688
1,350
3.45
%
Total borrowings
179,343
3,726
4.19
%
385,968
8,954
4.67
%
Total interest-bearing liabilities
854,514
$
12,804
3.02
%
959,726
$
14,839
3.11
%
Non-interest-bearing liabilities
105,111
138,012
Stockholders' equity
285,887
281,831
Total liabilities and stockholders' equity
$
1,245,512
$
1,379,569
Net interest rate spread (3)
$
15,800
1.80
%
$
15,442
1.48
%
Net interest rate margin (4)
2.67
%
2.34
%
Ratio of interest-earning assets to interest-bearing liabilities
139.90
%
138.33
%
(1)
Amount includes non-accrual loans.
(2)
FHLB is Federal Home Loan Bank.
(3)
Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.
(4)
Net interest rate margin represents net interest income as a percentage of average interest-earning assets.
BROADWAY FINANCIAL CORPORATION AND SUBSIDIARY
Selected Financial Data and Ratios (Unaudited)
(Dollars in thousands, except per share data)
Three Months Ended
Six Months Ended
June 30, 2025
March 31, 2025
December 31, 2024
September 30, 2024
June 30, 2024
June 30,2025
June 30, 2024
Balance Sheets:
Total gross loans
965,875
980,005
976,964
975,315
946,840
965,785
946,840
Allowance for credit losses
8,582
8,774
8,103
8,527
8,104
8,582
8,104
Investment securities
177,977
185,938
203,862
238,489
261,454
177,977
261,454
Total assets
1,227,392
1,238,019
1,303,711
1,373,055
1,367,290
1,227,392
1,367,290
Total deposits
798,922
776,543
745,399
672,248
687,369
798,922
687,369
Total shareholders' equity
285,545
284,581
285,157
286,392
282,293
285,545
282,293
Profitability:
Interest income
14,230
14,374
15,762
16,166
15,488
28,604
30,281
Interest expense
6,475
6,329
7,765
7,836
7,570
12,804
14,839
Net interest income
7,755
8,045
7,997
8,330
7,918
15,800
15,442
(Recovery of) provision for credit losses
(266)
689
(489)
399
494
423
754
Non-interest income
355
288
560
416
273
643
579
Non-interest expenses
7,522
10,197
7,210
7,594
7,280
17,719
15,090
Income (loss) before income taxes
854
(2,553)
1,836
753
417
(1,699)
177
Income tax expense (benefit)
257
(692)
516
209
146
(435)
89
Net income (loss)
597
(1,861)
1,320
544
271
(1,264)
88
Less: Net (loss) income attributable to non-controlling interest
(6)
(3)
20
22
2
(9)
(17)
Net income (loss) attributable to Broadway Financial Corporation
603
(1,858)
1,300
522
269
(1,255)
105
Less: Preferred stock dividends
750
750
750
750
–
1,500
–
Net (loss) income attributable to common stockholders
(147)
(2,608)
550
(228)
269
(2,755)
105
Financial Performance:
Return on average assets (annualized)
(0.05 %)
(0.84 %)
0.16 %
(0.07 %)
0.08 %
(0.45 %)
0.02 %
Return on average equity (annualized)
(0.21 %)
(3.69 %)
0.77 %
(0.32 %)
0.38 %
(1.94 %)
0.08 %
Net interest margin
2.63 %
2.70 %
2.42 %
2.49 %
2.41 %
2.67 %
2.34 %
Efficiency ratio
92.75 %
122.37 %
84.26 %
86.83 %
88.88 %
107.76 %
94.19 %
Per Share Data:
Book value per share
14.74
14.58
14.82
14.97
14.49
14.74
14.49
Weighted average common shares (basic)
8,622,891
8,547,460
8,459,460
8,520,730
8,394,367
8,557,745
8,308,359
Weighted average common shares (diluted)
8,622,891
8,547,460
8,638,660
8,684,296
8,596,985
8,557,745
8,513,262
Common shares outstanding at end of period
9,195,909
9,231,180
9,120,363
9,112,777
9,131,979
9,195,909
9,131,979
Financial Measures:
Loans to assets
78.69 %
79.16 %
74.94 %
71.03 %
69.25 %
78.69 %
69.25 %
Loans to deposits
120.90 %
126.20 %
131.07 %
145.08 %
137.75 %
120.90 %
137.75 %
Allowance for credit losses to total loans
0.89 %
0.90 %
0.83 %
0.87 %
0.86 %
0.89 %
0.86 %
Allowance for credit losses to total nonperforming loans
192.98 %
1020.23 %
3069.32 %
2930.24 %
2470.73 %
192.98 %
2470.73 %
Non-accrual loans to total loans
0.42 %
0.09 %
0.03 %
0.03 %
0.03 %
0.42 %
0.03 %
Nonperforming loans to total assets
0.36 %
0.07 %
0.02 %
0.02 %
0.02 %
0.36 %
0.02 %
Net charge-offs (recoveries) (annualized) to average total loans
–
–
–
–
–
–
–
Average Balance Sheets:
Total loans
968,028
972,479
976,873
963,849
943,072
970,241
925,443
Investment securities
182,351
196,463
222,879
248,833
276,457
189,368
290,721
Total assets
1,231,770
1,259,448
1,363,572
1,382,066
1,375,165
1,245,512
1,379,569
Total interest-bearing deposits
702,262
647,777
622,217
570,512
569,689
675,171
573,758
Total shareholders' equity
285,154
286,629
285,775
284,343
281,792
285,887
281,831
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Malaysian Reserve
a day ago
- Malaysian Reserve
Manufacturing PMI® at 48%; July 2025 Manufacturing ISM® Report On Business®
New Orders and Backlogs Contracting; Production Growing and Employment Contracting; Supplier Deliveries Faster; Raw Materials Inventories Contracting; Customers' Inventories Too Low; Prices Increasing; Exports and Imports Contracting TEMPE, Ariz., Aug. 1, 2025 /PRNewswire/ — Economic activity in the manufacturing sector contracted in July for the fifth consecutive month, following a two-month expansion preceded by 26 straight months of contraction, say the nation's supply executives in the latest Manufacturing ISM® Report On Business®. The report was issued today by Susan Spence, MBA, Chair of the Institute for Supply Management® (ISM®) Manufacturing Business Survey Committee: 'The Manufacturing PMI® registered 48 percent in July, a 1-percentage point decrease compared to the 49 percent recorded in June. The overall economy continued in expansion for the 63rd month after one month of contraction in April 2020. (A Manufacturing PMI® above 42.3 percent, over a period of time, generally indicates an expansion of the overall economy.) The New Orders Index contracted for the sixth month in a row following a three-month period of expansion; the figure of 47.1 percent is 0.7 percentage point higher than the 46.4 percent recorded in June. The July reading of the Production Index (51.4 percent) is 1.1 percentage points higher than June's figure of 50.3 percent. The Prices Index remained in expansion (or 'increasing') territory, registering 64.8 percent, down 4.9 percentage points compared to the reading of 69.7 percent reported in June. The Backlog of Orders Index registered 46.8 percent, up 2.5 percentage points compared to the 44.3 percent recorded in June. The Employment Index registered 43.4 percent, down 1.6 percentage points from June's figure of 45 percent. 'The Supplier Deliveries Index indicated faster delivery performance after seven consecutive months in expansion (or 'slower') territory. The reading of 49.3 percent is down 4.9 percentage points from the 54.2 percent recorded in June. (Supplier Deliveries is the only ISM® Report On Business® index that is inversed; a reading of above 50 percent indicates slower deliveries, which is typical as the economy improves and customer demand increases.) The Inventories Index registered 48.9 percent, down 0.3 percentage point compared to June's reading of 49.2 percent. 'The New Export Orders Index reading of 46.1 percent is 0.2 percentage point lower than the reading of 46.3 percent registered in June. The Imports Index registered 47.6 percent, 0.2 percentage point higher than June's reading of 47.4 percent.' Spence continues, 'In July, U.S. manufacturing activity contracted at a faster rate, with declines in the Supplier Deliveries and Employment Indexes contributing as the biggest factors in the 1-percentage point loss of the Manufacturing PMI®. 'The demand indicators improved, with the New Orders and Backlog of Orders indexes contracting at slower rates, while the Customers' Inventories and New Export Orders indexes contracted at slightly faster rates. A 'too low' status for the Customers' Inventories Index is usually considered positive for future production. 'Regarding output, the Production Index increased month over month to move further into expansion territory, however; the Employment Index dropped further into contraction as panelists indicated that managing head count is still the norm at their companies, as opposed to hiring. The mixed indicators in output suggest companies still being cautious in their hiring even with an increase in production. 'Finally, inputs (defined as supplier deliveries, inventories, prices and imports), on net, declined further into contraction territory. The Inventories Index moved marginally further into contraction territory after expanding in April, as companies work to reduce or adjust inventory to better align with demand. The Supplier Deliveries Index indicated faster deliveries as supply chain performance improved and sluggish demand continued. Prices continued to increase, but at a slower rate. The Imports Index remained in contraction but moved upward slightly. 'Looking at the manufacturing economy, 79 percent of the sector's gross domestic product (GDP) contracted in July, up from 46 percent in June. Notably, 31 percent of GDP is strongly contracting (registering a composite PMI® of 45 percent or lower), up from 25 percent in June. The share of sector GDP with a PMI® at or below 45 percent is a good metric to gauge overall manufacturing weakness. Of the six largest manufacturing industries, none expanded in July, compared to four in June,' says Spence. The seven manufacturing industries reporting growth in July — listed in order — are: Apparel, Leather & Allied Products; Plastics & Rubber Products; Nonmetallic Mineral Products; Textile Mills; Miscellaneous Manufacturing; Furniture & Related Products; and Primary Metals. The 10 industries reporting contraction in July — in the following order — are: Printing & Related Support Activities; Paper Products; Chemical Products; Machinery; Wood Products; Fabricated Metal Products; Computer & Electronic Products; Transportation Equipment; Electrical Equipment, Appliances & Components; and Food, Beverage & Tobacco Products. WHAT RESPONDENTS ARE SAYING 'Fairly flat quarter over quarter, but with us being in the safety and security sector (and with U.S. Customs and Border Protection as a customer), the recent bill that passed should result in an increase in business in the coming months.' [Computer & Electronic Products] 'Sales continue at unprecedented growth, driven by data-center construction. Customers and the sales team continue to demand lower pricing, which drives down gross margins in face of input price increases, primarily from aluminum imports.' [Chemical Products] 'These tariff wars are beginning to wear us out. It's been very difficult to forecast what we will pay in duties and calculate any cost savings we've had this year. Also, tariffs have disrupted our customs import bond. There is zero clarity about the future, and it's been a difficult few months trying to figure out where everything is going to land and the impact on our business. So far, tremendous and unexpected costs have been incurred.' [Apparel, Leather & Allied Products] 'Currently, higher interest rates still depress the construction industry for new construction projects. Tariff policies are uncertain, which slows down (1) our investment in new projects, (2) component sourcing for new products, (3) blanket orders and (4) replenishment of large inventory quantities. Instead, we're working to shift suppliers to lower political risk countries or develop domestic sources. We are impacted by the higher tariffs on costs of raw materials and components both sourced domestically and from overseas, and we expect expenses will be higher in the third and fourth quarters as we consume the inventory received with new and higher tariffs or update costs from domestic sources in the second quarter.' [Machinery] 'Sales softening more than usual during the summer. Negotiations with non-U.S. manufacturers are strained as we are reluctant to issue POs for deliveries three or more months into the future with prices that include current tariffs.' [Fabricated Metal Products] 'In the health-care world we continue with 'business as normal,' but we are increasingly searching and assessing geopolitical risk mitigation options.' [Miscellaneous Manufacturing] 'Tariffs are causing complete uncertainty around sourcing strategies. A sit-and-wait game for now.' [Electrical Equipment, Appliances & Components] 'Sales are about on par with 2024, but nowhere near budget forecast. Tariff concerns seem to be growing as the year progresses.' [Nonmetallic Mineral Products] 'Business is steady, with solid bookings and backlog. Still uncertainty about tariffs and associated inflation.' [Furniture & Related Products] 'Energy capacity, specifically in the grid operated by PJM Interconnection, continues to be one of the major concerns for business continuity and growth in this region. The procurement of power and rising natural gas prices in this region due to past green energy policies, coupled with future projected allocations for artificial intelligence data centers, adds additional stress to the PJM system.' [Primary Metals] 'Cautiously stable. Tariff impacts are still being monitored. Some increases have been implemented while monitoring other products.' [Transportation Equipment] MANUFACTURING AT A GLANCE July 2025 Index SeriesIndex Jul SeriesIndex Jun Percentage Point Change Direction Rate of Change Trend* (Months) Manufacturing PMI® 48.0 49.0 -1.0 Contracting Faster 5 New Orders 47.1 46.4 +0.7 Contracting Slower 6 Production 51.4 50.3 +1.1 Growing Faster 2 Employment 43.4 45.0 -1.6 Contracting Faster 6 Supplier Deliveries 49.3 54.2 -4.9 Faster From Slower 1 Inventories 48.9 49.2 -0.3 Contracting Faster 3 Customers' Inventories 45.7 46.7 -1.0 Too Low Faster 10 Prices 64.8 69.7 -4.9 Increasing Slower 10 Backlog of Orders 46.8 44.3 +2.5 Contracting Slower 34 New Export Orders 46.1 46.3 -0.2 Contracting Faster 5 Imports 47.6 47.4 +0.2 Contracting Slower 4 OVERALL ECONOMY Growing Slower 63 Manufacturing Sector Contracting Faster 5 Manufacturing ISM® Report On Business® data is seasonally adjusted for the New Orders, Production, Employment and Inventories indexes. *Number of months moving in current direction. COMMODITIES REPORTED UP/DOWN IN PRICE AND IN SHORT SUPPLY Commodities Up in PriceAluminum (20); Aluminum Products; Brass Products; Copper; Copper Products; Corrugated Boxes (5); Electrical Components (6); Electronic Components (6); Fabricated Metal Components; Freight; Polypropylene; Steel (6); Steel — Stainless (5); Steel Products (5); and Wire Products. Commodities Down in PriceCorn; Natural Gas; Ocean Freight; and Soybean Meal. Commodities in Short SupplyElectrical Components, Electronic Components (5); and Rare Earth Magnets. Note: The number of consecutive months the commodity is listed is indicated after each item. JULY 2025 MANUFACTURING INDEX SUMMARIES Manufacturing PMI® The U.S. manufacturing sector contracted in July for the fifth consecutive month after two months of expansion preceded by 26 months of contraction. 'The Manufacturing PMI® registered 48 percent, 1 percentage point lower compared to the 49 percent reported in June. Of the five subindexes that directly factor into the Manufacturing PMI®, only one (Production) is in expansion territory, down from two in June. The slowing of supplier deliveries in previous months reversed course, with a 4.9-percentage point index decrease indicating a drawdown of manufacturing inventories and easing port congestion. The Employment Index decreased and it remained with New Orders in contraction territory. None of the six biggest manufacturing industries registered growth in July,' says Spence. A reading above 50 percent indicates that the manufacturing sector is generally expanding; below 50 percent indicates that it is generally contracting. A Manufacturing PMI® above 42.3 percent, over a period of time, generally indicates an expansion of the overall economy. Therefore, the July Manufacturing PMI® indicates the overall economy grew for the 63rd straight month after contracting in April 2020. 'The past relationship between the Manufacturing PMI® and the overall economy indicates that the July reading (48 percent) corresponds to a change of plus-1.6 percent in real gross domestic product (GDP) on an annualized basis,' says Spence. THE LAST 12 MONTHS Month Manufacturing PMI® Month Manufacturing PMI® Jul 2025 48.0 Jan 2025 50.9 Jun 2025 49.0 Dec 2024 49.2 May 2025 48.5 Nov 2024 48.4 Apr 2025 48.7 Oct 2024 46.9 Mar 2025 49.0 Sep 2024 47.5 Feb 2025 50.3 Aug 2024 47.5 Average for 12 months – 48.7 High – 50.9 Low – 46.9 New OrdersISM®'s New Orders Index contracted in July for the sixth consecutive month after three consecutive months of expansion, registering 47.1 percent, an increase of 0.7 percentage point compared to June's figure of 46.4 percent. This reading is below the 12-month moving average (48.3 percent) for the New Orders Index, which hasn't indicated consistent growth since a 24-month streak of expansion ended in May 2022. 'Of the six largest manufacturing sectors, none reported increased new orders. Panelists noted continued weak demand, with a 1-to-1.4 ratio of positive comments to those expressing concern about near-term demand. Overall, new orders continue to slow amid tariff uncertainty; which party will pay tariff costs is still the prime issue in negotiations between buyers and sellers,' says Spence. A New Orders Index above 52.1 percent, over time, is generally consistent with an increase in the Census Bureau's series on manufacturing orders (in constant 2000 dollars). The four manufacturing industries that reported growth in new orders in July are: Apparel, Leather & Allied Products; Plastics & Rubber Products; Primary Metals; and Miscellaneous Manufacturing. The eight industries reporting a decline in new orders in June, in order, are: Paper Products; Wood Products; Petroleum & Coal Products; Nonmetallic Mineral Products; Fabricated Metal Products; Machinery; Chemical Products; and Computer & Electronic Products. Six industries reported no change in new orders in July. New Orders %Higher %Same %Lower Net Index Jul 2025 18.8 55.3 25.9 -7.1 47.1 Jun 2025 20.5 52.2 27.3 -6.8 46.4 May 2025 25.0 48.1 26.9 -1.9 47.6 Apr 2025 28.1 45.2 26.7 +1.4 47.2 ProductionThe Production Index continued in expansion territory for the second consecutive month in July, registering 51.4 percent, 1.1 percentage points higher than the June reading of 50.3 percent. Prior to the readings of expansion in January and February, the index was in contraction territory for eight consecutive months, with the previous reading above 50 percent in April 2024 (50.7 percent). Of the six largest manufacturing sectors, two (Petroleum & Coal Products; and Transportation Equipment) reported increased production. 'Production levels in July, while improved, remain fragile amid continuing softness in new orders. Panelists had a 1-to-1.2 ratio of positive to negative comments regarding output,' says Spence. An index above 52.1 percent, over time, is generally consistent with an increase in the Federal Reserve Board's Industrial Production figures. The seven industries reporting growth in production during the month of July — in the following order — are: Apparel, Leather & Allied Products; Textile Mills; Petroleum & Coal Products; Plastics & Rubber Products; Nonmetallic Mineral Products; Miscellaneous Manufacturing; and Transportation Equipment. The six industries reporting a decrease in production in July, in order, are: Paper Products; Machinery; Fabricated Metal Products; Primary Metals; Electrical Equipment, Appliances & Components; and Chemical Products. Production %Higher %Same %Lower Net Index Jul 2025 20.1 60.7 19.2 +0.9 51.4 Jun 2025 20.7 60.6 18.7 +2.0 50.3 May 2025 19.1 56.3 24.6 -5.5 45.4 Apr 2025 19.8 56.0 24.2 -4.4 44.0 EmploymentISM®'s Employment Index registered 43.4 percent in July, 1.6 percentage points lower than June's reading of 45 percent. 'The index posted its sixth consecutive month of contraction after expanding in January, with seven straight months of contraction before that. Since May 2022, the Employment Index has contracted in 32 of 39 months. Of the six big manufacturing sectors, none reported expanded employment in July. For every comment on hiring, there were two on reducing head counts — a fairly wide ratio, historically speaking — reflecting companies' continuing focus on accelerating staff reductions due to uncertain near- to mid-term demand. Layoffs were the primary measure, an indication that staff shrinking continues to be urgent,' says Spence. An Employment Index above 50.3 percent, over time, is generally consistent with an increase in the Bureau of Labor Statistics (BLS) data on manufacturing employment. Of the 18 manufacturing industries, three reported employment growth in July: Nonmetallic Mineral Products; Miscellaneous Manufacturing; and Plastics & Rubber Products. The 11 industries reporting a decrease in employment in July, in the following order, are: Textile Mills; Printing & Related Support Activities; Paper Products; Primary Metals; Fabricated Metal Products; Computer & Electronic Products; Machinery; Food, Beverage & Tobacco Products; Electrical Equipment, Appliances & Components; Chemical Products; and Transportation Equipment. Employment %Higher %Same %Lower Net Index Jul 2025 12.6 62.4 25.0 -12.4 43.4 Jun 2025 10.4 72.1 17.5 -7.1 45.0 May 2025 14.1 68.2 17.7 -3.6 46.8 Apr 2025 13.1 70.7 16.2 -3.1 46.5 Supplier Deliveries†Delivery performance of suppliers to manufacturing organizations was faster in July after seven months of slowing, with the Supplier Deliveries Index registering 49.3 percent, a 4.9-percentage point decrease compared to the reading of 54.2 percent reported in June. Of the six big industries, two (Food, Beverage & Tobacco Products; and Computer & Electronic Products) reported slower supplier deliveries in July. 'The findings in July suggest that supply chain performance is improving as demand is slipping downward,' says Spence. A reading below 50 percent indicates faster deliveries, while a reading above 50 percent indicates slower deliveries. The nine manufacturing industries reporting slower supplier deliveries in July — in the following order — are: Nonmetallic Mineral Products; Furniture & Related Products; Paper Products; Plastics & Rubber Products; Primary Metals; Electrical Equipment, Appliances & Components; Food, Beverage & Tobacco Products; Computer & Electronic Products; and Fabricated Metal Products. The four industries reporting faster supplier deliveries in July are: Miscellaneous Manufacturing; Transportation Equipment; Chemical Products; and Machinery. Supplier Deliveries %Slower %Same %Faster Net Index Jul 2025 8.7 81.1 10.2 -1.5 49.3 Jun 2025 14.7 79.0 6.3 +8.4 54.2 May 2025 19.1 73.9 7.0 +12.1 56.1 Apr 2025 16.6 77.2 6.2 +10.4 55.2 InventoriesThe Inventories Index registered 48.9 percent in July, down 0.3 percentage point compared to the reading of 49.2 percent in June. 'Of the six big industries, only one (Food, Beverage & Tobacco Products) expanded in July,' says Spence. An Inventories Index greater than 44.5 percent, over time, is generally consistent with expansion in the Bureau of Economic Analysis (BEA) figures on overall manufacturing inventories (in chained 2000 dollars). Of 18 manufacturing industries, the 10 reporting higher inventories in July — listed in order — are: Apparel, Leather & Allied Products; Textile Mills; Paper Products; Nonmetallic Mineral Products; Primary Metals; Plastics & Rubber Products; Miscellaneous Manufacturing; Fabricated Metal Products; Electrical Equipment, Appliances & Components; and Food, Beverage & Tobacco Products. The five industries reporting lower inventories in July are: Wood Products; Chemical Products; Computer & Electronic Products; Transportation Equipment; and Machinery. Inventories %Higher %Same %Lower Net Index Jul 2025 15.2 67.2 17.6 -2.4 48.9 Jun 2025 15.6 64.9 19.5 -3.9 49.2 May 2025 15.6 63.2 21.2 -5.6 46.7 Apr 2025 20.8 59.2 20.0 +0.8 50.8 Customers' Inventories†ISM®'s Customers' Inventories Index registered a reading of 45.7 percent in July, a decrease of 1 percentage point compared to the reading of 46.7 percent in June. 'Customers' inventory levels in July continued to contract and took a step away from 'about right' territory,' says Spence. (For more information about the Customers' Inventories Index, see the 'Data and Method of Presentation' section below.) The three industries reporting customers' inventories as too high in July are: Wood Products; Miscellaneous Manufacturing; and Transportation Equipment. The 11 industries reporting customers' inventories as too low in July, in order, are: Textile Mills; Printing & Related Support Activities; Primary Metals; Nonmetallic Mineral Products; Electrical Equipment, Appliances & Components; Fabricated Metal Products; Paper Products; Furniture & Related Products; Chemical Products; Food, Beverage & Tobacco Products; and Machinery. Customers' Inventories % Reporting %Too High %About Right %TooLow Net Index Jul 2025 71 10.5 70.3 19.2 -8.7 45.7 Jun 2025 72 14.1 65.2 20.7 -6.6 46.7 May 2025 69 9.9 69.2 20.9 -11.0 44.5 Apr 2025 76 11.1 70.2 18.7 -7.6 46.2 Prices†The ISM® Prices Index registered 64.8 percent in July, decreasing 4.9 percentage points compared to the June reading of 69.7 percent, indicating raw materials prices increased for the 10th straight month (at a slower rate) after a decrease in September. The Prices Index has increased 9.9 percentage points over the past six months. In the last five months, the index reached its highest levels since June 2022, when it registered 78.5 percent. All of the six largest manufacturing industries — Machinery; Chemical Products; Food, Beverage & Tobacco Products; Computer & Electronic Products; Petroleum & Coal Products; and Transportation Equipment, in that order — reported price increases in July. 'The Prices Index reading continues to be driven by increases in steel and aluminum prices that impact the entire value chain, as well as tariffs applied to many imported goods. Higher prices were reported by 35.4 percent of respondents in July, down substantially from 45.6 percent in June. The share of respondents reporting higher prices had consistently increased from November 2024 (12.2 percent) to April (49.2 percent), which was the highest level since June 2022 (65.2 percent),' says Spence. A Prices Index above 52.8 percent, over time, is generally consistent with an increase in the Bureau of Labor Statistics (BLS) Producer Price Index for Intermediate Materials. In July, the 16 industries that reported paying increased prices for raw materials, in order, are: Nonmetallic Mineral Products; Textile Mills; Furniture & Related Products; Primary Metals; Plastics & Rubber Products; Machinery; Wood Products; Electrical Equipment, Appliances & Components; Fabricated Metal Products; Miscellaneous Manufacturing; Chemical Products; Food, Beverage & Tobacco Products; Computer & Electronic Products; Petroleum & Coal Products; Paper Products; and Transportation Equipment. No industries reported paying decreased prices for raw materials in July. Prices %Higher %Same %Lower Net Index Jul 2025 35.4 58.8 5.8 +29.6 64.8 Jun 2025 45.6 48.1 6.3 +39.3 69.7 May 2025 45.1 48.5 6.4 +38.7 69.4 Apr 2025 49.2 41.1 9.7 +39.5 69.8 Backlog of Orders†ISM®'s Backlog of Orders Index registered 46.8 percent, an increase of 2.5 percentage points compared to the June reading of 44.3 percent, indicating order backlogs contracted for the 34th consecutive month after a 27-month period of expansion that ended September 2022. Of the six largest manufacturing industries, only Food, Beverage & Tobacco Products reported expansion in order backlogs in July. 'Continued contraction in both the New Orders and Backlog of Orders indexes means that trade issues and other geopolitical tensions are still at play. Significant improvement shouldn't be expected until those issues begin to recede,' says Spence. Of the 18 manufacturing industries, the three that reported growth in order backlogs in July are: Furniture & Related Products; Food, Beverage & Tobacco Products; and Electrical Equipment, Appliances & Components. The eight industries reporting lower backlogs in July — in the following order — are: Paper Products; Nonmetallic Mineral Products; Plastics & Rubber Products; Wood Products; Machinery; Computer & Electronic Products; Fabricated Metal Products; and Chemical Products. Seven industries reported no change in order backlogs. Backlog of Orders % Reporting %Higher %Same %Lower Net Index Jul 2025 89 18.3 56.9 24.8 -6.5 46.8 Jun 2025 91 14.9 58.7 26.4 -11.5 44.3 May 2025 92 15.8 62.6 21.6 -5.8 47.1 Apr 2025 92 15.1 57.2 27.7 -12.6 43.7 New Export Orders†ISM®'s New Export Orders Index contracted in July, registering 46.1 percent, down 0.2 percentage point from June's reading of 46.3 percent. 'Export orders contracted for the fifth consecutive month after growing in January and February. This brief period of expansion followed an 'unchanged' status (a reading of 50 percent), preceded by six straight months of contraction. The continued contraction of new export orders could be indicative of ongoing trade friction and dampened demand,' says Spence. Of the 18 manufacturing industries, the only industry reporting growth in new export orders in July is Furniture & Related Products. The eight industries reporting a decrease in new export orders in July — in the following order — are: Paper Products; Primary Metals; Plastics & Rubber Products; Fabricated Metal Products; Electrical Equipment, Appliances & Components; Chemical Products; Miscellaneous Manufacturing; and Machinery. Eight industries reported no change in new export orders in July. New Export Orders % Reporting %Higher %Same %Lower Net Index Jul 2025 71 7.5 77.2 15.3 -7.8 46.1 Jun 2025 75 12.1 68.3 19.6 -7.5 46.3 May 2025 73 11.8 56.5 31.7 -19.9 40.1 Apr 2025 74 8.7 68.8 22.5 -13.8 43.1 Imports†ISM®'s Imports Index remained in contraction for the fourth month in July after expanding for three straight months. The July figure of 47.6 percent is an increase of 0.2 percentage point over the reading of 47.4 percent in June. 'Imports are contracting, though at a slower rate. The need to maintain import levels from previous months is lower, due in large part to slackening demand and tariff pricing,' says Spence. The five industries reporting an increase in import volumes in July are: Textile Mills; Food, Beverage & Tobacco Products; Plastics & Rubber Products; Miscellaneous Manufacturing; and Fabricated Metal Products. The six industries that reported lower volumes of imports in July — in the following order — are: Wood Products; Petroleum & Coal Products; Paper Products; Computer & Electronic Products; Chemical Products; and Machinery. Seven industries reported no change in imports in July. Imports % Reporting %Higher %Same %Lower Net Index Jul 2025 86 13.3 68.5 18.2 -4.9 47.6 Jun 2025 86 15.3 64.2 20.5 -5.2 47.4 May 2025 85 13.2 53.3 33.5 -20.3 39.9 Apr 2025 82 15.4 63.4 21.2 -5.8 47.1 †The Supplier Deliveries, Customers' Inventories, Prices, Backlog of Orders, New Export Orders, and Imports indexes do not meet the accepted criteria for seasonal adjustments. Buying PolicyThe average commitment lead time for Capital Expenditures in July was 173 days, a decrease of two days compared to June. The average lead time in July for Production Materials was 85 days, the same as in June. The average lead time for Maintenance, Repair and Operating (MRO) Supplies was 44 days, a decrease of four days compared to June. Percent Reporting Capital Expenditures Hand-to- Mouth 30 Days 60 Days 90 Days 6 Months 1 Year+ Average Days Jul 2025 16 4 10 15 26 29 173 Jun 2025 17 3 9 13 29 29 175 May 2025 18 2 9 14 30 27 171 Apr 2025 16 4 11 14 28 27 169 Percent Reporting Production Materials Hand-to- Mouth 30 Days 60 Days 90 Days 6 Months 1 Year+ Average Days Jul 2025 9 28 22 26 8 7 85 Jun 2025 9 22 28 26 9 6 85 May 2025 8 24 30 24 9 5 81 Apr 2025 10 24 25 26 9 6 84 Percent Reporting MRO Supplies Hand-to- Mouth 30 Days 60 Days 90 Days 6 Months 1 Year+ Average Days Jul 2025 31 35 17 12 4 1 44 Jun 2025 32 33 17 11 5 2 48 May 2025 31 35 16 10 7 1 47 Apr 2025 31 33 18 12 5 1 46 About This ReportDO NOT CONFUSE THIS NATIONAL REPORT with the various regional purchasing reports released across the country. The national report's information reflects the entire U.S., while the regional reports contain primarily regional data from their local vicinities. Also, the information in the regional reports is not used in calculating the results of the national report. The information compiled in this report is for the month of July 2025. The data presented herein is obtained from a survey of manufacturing supply executives based on information they have collected within their respective organizations. ISM® makes no representation, other than that stated within this release, regarding the individual company data collection procedures. The data should be compared to all other economic data sources when used in decision-making. Data and Method of PresentationThe Manufacturing ISM® Report On Business® is based on data compiled from purchasing and supply executives nationwide. The composition of the Manufacturing Business Survey Committee is stratified according to the North American Industry Classification System (NAICS) and each of the following NAICS-based industries' contribution to gross domestic product (GDP): Food, Beverage & Tobacco Products; Textile Mills; Apparel, Leather & Allied Products; Wood Products; Paper Products; Printing & Related Support Activities; Petroleum & Coal Products; Chemical Products; Plastics & Rubber Products; Nonmetallic Mineral Products; Primary Metals; Fabricated Metal Products; Machinery; Computer & Electronic Products; Electrical Equipment, Appliances & Components; Transportation Equipment; Furniture & Related Products; and Miscellaneous Manufacturing (products such as medical equipment and supplies, jewelry, sporting goods, toys and office supplies). The data is weighted based on each industry's contribution to GDP. According to BEA estimates (the average of the fourth quarter 2023 GDP estimate and the GDP estimates for first, second, and third quarter 2024, as released on December 19, 2024), the six largest manufacturing industries are: Chemical Products; Transportation Equipment; Computer & Electronic Products; Food, Beverage & Tobacco Products; Machinery; and Petroleum & Coal Products. Survey responses reflect the change, if any, in the current month compared to the previous month. For nine indicators (New Orders, Backlog of Orders, New Export Orders, Imports, Production, Supplier Deliveries, Inventories, Employment, and Prices), this report shows the percentage reporting each response, the net difference between the number of responses in the positive economic direction (higher, better and slower for Supplier Deliveries) and the negative economic direction (lower, worse and faster for Supplier Deliveries), and the diffusion index. For Customers' Inventories, respondents report their assessment of their customers' stock levels of respondent companies' products this month (rather than last month): too high, about right, and too low. Responses are raw data and are never changed. The diffusion index includes the percent of positive responses plus one-half of those responding the same (considered positive). The resulting single index number for those meeting the criteria for seasonal adjustments (Manufacturing PMI®, New Orders, Production, Employment and Inventories) is then seasonally adjusted to allow for the effects of repetitive intra-year variations resulting primarily from normal differences in weather conditions, various institutional arrangements, and differences attributable to non-moveable holidays. All seasonal adjustment factors are subject annually to relatively minor changes when conditions warrant them. The Manufacturing PMI® is a composite index based on the diffusion indexes of five of the indexes with equal weights: New Orders (seasonally adjusted), Production (seasonally adjusted), Employment (seasonally adjusted), Supplier Deliveries, and Inventories (seasonally adjusted). Diffusion indexes have the properties of leading indicators and are convenient summary measures showing the prevailing direction of change and the scope of change. A Manufacturing PMI® reading above 50 percent indicates that the manufacturing economy is generally expanding; below 50 percent indicates that it is generally declining. A Manufacturing PMI® above 42.3 percent, over a period of time, indicates that the overall economy, or gross domestic product (GDP), is generally expanding; below 42.3 percent, it is generally declining. The distance from 50 percent or 42.3 percent is indicative of the extent of the expansion or decline. With some of the indicators within this report, ISM® has indicated the departure point between expansion and decline of comparable government series, as determined by regression analysis. For the Customers' Inventories Index, numerically, a reading: above 50 percent is 'too high,' equal to 50 percent is 'about right,' and below 50 percent is 'too low.' However, in practice and in the context of other data, customers' inventories may be considered to be 'about right' if the diffusion index is between 52 percent (the high side of about right) and 48 percent (the low side of about right). The Manufacturing ISM® Report On Business® survey is sent out to Manufacturing Business Survey Committee respondents the first part of each month. Respondents are asked to report on information for the current month for U.S. operations only. ISM® receives survey responses throughout most of any given month, with the majority of respondents generally waiting until late in the month to submit responses to give the most accurate picture of current business activity. ISM® then compiles the report for release on the first business day of the following month. The industries reporting growth, as indicated in the Manufacturing ISM® Report On Business® monthly report, are listed in the order of most growth to least growth. For the industries reporting contraction or decreases, those are listed in the order of the highest level of contraction/decrease to the least level of contraction/decrease. Responses to Buying Policy reflect the percent reporting the current month's lead time, the approximate weighted number of days ahead for which commitments are made for Capital Expenditures; Production Materials; and Maintenance, Repair and Operating (MRO) Supplies, expressed as hand-to-mouth (five days), 30 days, 60 days, 90 days, six months (180 days), a year or more (360 days), and the weighted average number of days. These responses are raw data, never revised, and not seasonally adjusted. ISM ROB ContentThe Institute for Supply Management® ('ISM') Report On Business® (both Manufacturing and Non-Manufacturing) ('ISM ROB') contains information, text, files, images, video, sounds, musical works, works of authorship, applications, and any other materials or content (collectively, 'Content') of ISM ('ISM ROB Content'). ISM ROB Content is protected by copyright, trademark, trade secret, and other laws, and as between you and ISM, ISM owns and retains all rights in the ISM ROB Content. 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Requests for permission to reproduce or distribute ISM ROB Content can be made by contacting in writing at: ISM Research, Institute for Supply Management, 309 West Elliot Road, Suite 113, Tempe, Arizona 85284-1556, or by emailing kcahill@ Subject: Content Request. ISM shall not have any liability, duty, or obligation for or relating to the ISM ROB Content or other information contained herein, any errors, inaccuracies, omissions or delays in providing any ISM ROB Content, or for any actions taken in reliance thereon. In no event shall ISM be liable for any special, incidental, or consequential damages arising out of the use of the ISM ROB. Report On Business®, PMI®, Manufacturing PMI®, Services PMI®, Hospital PMI®, and NMI® are registered trademarks of Institute for Supply Management®. Institute for Supply Management® and ISM® are registered trademarks of Institute for Supply Management, Inc. About Institute for Supply Management® (ISM®) Institute for Supply Management® (ISM®) is the first and leading not-for-profit professional supply management organization worldwide. Its community of more than 50,000 in more than 100 countries around the world manage about US$1 trillion in corporate and government supply chain procurement annually. Founded in 1915 by practitioners, ISM is committed to advancing the strategy and practice of integrated, end-to-end supply chain management through leading edge data-driven resources, community, and education to empower individuals, create organizational value and to drive competitive advantage. ISM's vision is to foster a prosperous, sustainable world. ISM empowers and leads the profession through the ISM® Report On Business®, its highly regarded certification and training programs, corporate services, events and assessments. The ISM® Report On Business®, Manufacturing, Services, and Hospital are three of the most reliable economic indicators available, providing guidance to supply management professionals, economists, analysts, and government and business leaders. For more information, please visit: The full text version of the Manufacturing ISM® Report On Business® is posted on ISM®'s website at on the first business day* of every month after 10:00 a.m. ET. The one exception is in January when the report is released on the second business day of the month. The next Manufacturing ISM® Report On Business® featuring August 2025 data will be released at 10:00 a.m. ET on Tuesday, September 2, 2025. *Unless the New York Stock Exchange is closed. Contact: Kristina Cahill Report On Business® Analyst ISM®, ROB/Research Manager Tempe, Arizona +1 480.455.5910 Email: kcahill@
The Star
2 days ago
- The Star
US stocks slump on latest tariffs, soft jobs data
The Dow fell 542.40 points, or 1.23%, to 43,588.58, the S&P 500 lost 101.38 points, or 1.60%, to 6,238.01 and the Nasdaq lost 472.32 points, or 2.24%, to 20,650.13. NEW YORK: US stocks slumped on Friday, and the S&P suffered its biggest daily percentage decline in more than two months as new US tariffs on dozens of trading partners and a surprisingly weak jobs report spurred selling pressure. Also weighing on equities was an 8.3% tumble in shares after the company posted quarterly results but failed to meet lofty expectations for its Amazon Web Services cloud computing unit.
