SEC Info℠ | Home | Search | My Interests | Help | Sign In | Please Sign In | ||||||||||||||||||||
As Of Filer Filing For·On·As Docs:Size Issuer Filing Agent 8/14/23 Broadway Financial Corp./DE 10-Q 6/30/23 77:16M Broadridge Fin’l So… Inc |
Document/Exhibit Description Pages Size 1: 10-Q Quarterly Report HTML 3.66M 2: EX-31.1 Certification -- §302 - SOA'02 HTML 29K 3: EX-31.2 Certification -- §302 - SOA'02 HTML 29K 4: EX-32.1 Certification -- §906 - SOA'02 HTML 22K 5: EX-32.2 Certification -- §906 - SOA'02 HTML 22K 11: R1 Document and Entity Information HTML 81K 12: R2 Consolidated Statements of Financial Condition HTML 133K 13: R3 Consolidated Statements of Financial Condition HTML 64K (Parenthetical) 14: R4 Consolidated Statements of Operations and HTML 154K Comprehensive income (Loss) 15: R5 Consolidated Statements of Cash Flows HTML 131K 16: R6 Consolidated Statements of Changes in HTML 132K Stockholders' Equity 17: R7 Basis of Financial Statement Presentation HTML 78K 18: R8 Earnings Per Share of Common Stock HTML 56K 19: R9 Securities HTML 162K 20: R10 Loans Receivable Held for Investment HTML 848K 21: R11 Goodwill and Core Deposit Intangible HTML 44K 22: R12 Borrowings HTML 41K 23: R13 Fair Value HTML 147K 24: R14 Stock-based Compensation HTML 45K 25: R15 ESOP Plan HTML 36K 26: R16 Stockholders' Equity and Regulatory Matters HTML 47K 27: R17 Income Taxes HTML 32K 28: R18 Concentration of Credit Risk HTML 26K 29: R19 Basis of Financial Statement Presentation HTML 89K (Policies) 30: R20 Basis of Financial Statement Presentation (Tables) HTML 41K 31: R21 Earnings Per Share of Common Stock (Tables) HTML 54K 32: R22 Securities (Tables) HTML 164K 33: R23 Loans Receivable Held for Investment (Tables) HTML 832K 34: R24 Goodwill and Core Deposit Intangible (Tables) HTML 47K 35: R25 Fair Value (Tables) HTML 136K 36: R26 Stock-based Compensation (Tables) HTML 33K 37: R27 ESOP Plan (Tables) HTML 33K 38: R28 Stockholders' Equity and Regulatory Matters HTML 37K (Tables) 39: R29 Basis of Financial Statement Presentation HTML 62K (Details) 40: R30 Earnings Per Share of Common Stock (Details) HTML 67K 41: R31 Securities, Available-for-Sale Investment HTML 52K Securities Portfolios (Details) 42: R32 Securities, Additional Disclosure (Details) HTML 43K 43: R33 Securities, Contractual Maturities (Details) HTML 79K 44: R34 Securities, Unrealized Loss Position (Details) HTML 72K 45: R35 Loans Receivable Held for Investment, Summary HTML 79K (Details) 46: R36 Loans Receivable Held for Investment, Purchased HTML 45K Credit Impaired (PCI) Loans (Details) 47: R37 Loans Receivable Held for Investment, Activity in HTML 102K Allowance for Credit Losses on Loans (Details) 48: R38 Loans Receivable Held for Investment, Collateral HTML 86K Dependent Loans by Collateral Type (Details) 49: R39 Loans Receivable Held for Investment, Allowance HTML 103K for Loan Losses and Recorded Investment in Loans by Type of Loans and Based on Impairment Method (Details) 50: R40 Loans Receivable Held for Investment, Loans HTML 47K Individually Evaluated for Impairment by Loan Type (Details) 51: R41 Loans Receivable Held for Investment, Average of HTML 39K Loans Individually Evaluated for Impairment by Loan Type and Related Interest Income (Details) 52: R42 Loans Receivable Held for Investment, Aging of HTML 103K Recorded Investment in Past Due Loans by Loan Type (Details) 53: R43 Loans Receivable Held for Investment, Recorded HTML 33K Investment in Non-accrual Loans by Loan Type (Details) 54: R44 Loans Receivable Held for Investment, Troubled HTML 33K Debt Restructurings (TDRs) (Details) 55: R45 Loans Receivable Held for Investment, Internal HTML 211K Risk Grading, and by Year of Origination (Details) 56: R46 Loans Receivable Held for Investment, Credit HTML 111K Quality Indicators (Details) 57: R47 Loans Receivable Held for Investment, Off-Balance HTML 28K Sheet Commitments (Details) 58: R48 Goodwill and Core Deposit Intangible, Goodwill and HTML 54K Core Deposit Intangibles (Details) 59: R49 Goodwill and Core Deposit Intangible, Components HTML 31K of Carrying Amount of Core Deposit Intangible (Details) 60: R50 Goodwill and Core Deposit Intangible, Estimated HTML 40K Amortization Expense (Details) 61: R51 Borrowings, Liabilities Securities Sold under HTML 43K Agreements to Repurchase (Details) 62: R52 Borrowings, Other Borrowings (Details) HTML 65K 63: R53 Fair Value, Assets Measured on Recurring Basis HTML 70K (Details) 64: R54 Fair Value, Assets Measured on Non-Recurring Basis HTML 28K (Details) 65: R55 Fair Value, Fair Values of Financial Instruments HTML 70K (Details) 66: R56 Stock-based Compensation, Long-Term Incentive Plan HTML 69K (Details) 67: R57 Stock-based Compensation, Stock Option Activity HTML 36K (Details) 68: R58 Stock-based Compensation, Options Outstanding and HTML 42K Exercisable (Details) 69: R59 ESOP Plan (Details) HTML 50K 70: R60 Stockholders' Equity and Regulatory Matters HTML 60K (Details) 71: R61 Income Taxes (Details) HTML 26K 72: R62 Concentration of Credit Risk (Details) HTML 34K 75: XML IDEA XML File -- Filing Summary XML 139K 73: XML XBRL Instance -- brhc20057477_10q_htm XML 5.13M 74: EXCEL IDEA Workbook of Financial Report Info XLSX 185K 7: EX-101.CAL XBRL Calculations -- byfc-20230630_cal XML 246K 8: EX-101.DEF XBRL Definitions -- byfc-20230630_def XML 1.14M 9: EX-101.LAB XBRL Labels -- byfc-20230630_lab XML 2.11M 10: EX-101.PRE XBRL Presentations -- byfc-20230630_pre XML 1.40M 6: EX-101.SCH XBRL Schema -- byfc-20230630 XSD 192K 76: JSON XBRL Instance as JSON Data -- MetaLinks 579± 849K 77: ZIP XBRL Zipped Folder -- 0001140361-23-039725-xbrl Zip 505K
i ☒ |
QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
i ☐ |
TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
i Delaware
|
i 95-4547287
|
|
(State or other jurisdiction of
incorporation or organization)
|
(I.R.S. Employer
Identification No.)
|
i 4601 Wilshire Boulevard, Suite 150
i Los Angeles, i California
|
i 90010
|
|
(Address of principal executive offices)
|
(Zip Code)
|
Title of each class:
|
Trading Symbol(s)
|
Name of each exchange on which registered:
|
||
i Common Stock, par value $0.01 per share
(including attached preferred stock purchase rights)
|
i BYFC
|
i Nasdaq Capital Market
|
Large accelerated filer
|
☐
|
Accelerated filer
|
☐
|
i Non-accelerated filer
|
☒
|
Smaller reporting company
|
i ☒ |
Emerging growth company
|
i ☐
|
(Unaudited)
|
||||||||
Assets:
|
||||||||
Cash and due from banks
|
$
|
i 6,192
|
$
|
i 7,459
|
||||
Interest-bearing deposits in other banks
|
i 4,550
|
i 8,646
|
||||||
Cash and cash equivalents
|
i 10,742
|
i 16,105
|
||||||
Securities available-for-sale, at fair value
|
i 322,516
|
i 328,749
|
||||||
Loans receivable held for investment, net of allowance of $ i 6,970 and $ i 4,388
|
i 824,621
|
i 768,046
|
||||||
Accrued interest receivable
|
i 4,114
|
i 3,973
|
||||||
Federal Home Loan Bank ("FHLB") stock
|
i 9,062
|
i 5,535
|
||||||
Federal Reserve Bank ("FRB") stock
|
i 3,543 |
i 5,264 |
||||||
Office properties and equipment, net
|
i 10,000
|
i 10,291
|
||||||
Bank owned life insurance
|
i 3,253
|
i 3,233
|
||||||
Deferred tax assets, net
|
i 11,896
|
i 11,872
|
||||||
Core deposit intangible, net
|
i 2,306 |
i 2,501 |
||||||
Goodwill
|
i 25,858 |
i 25,858 |
||||||
Other assets
|
i 3,461
|
i 2,866
|
||||||
Total assets
|
$
|
i 1,231,372
|
$
|
i 1,184,293
|
||||
Liabilities and stockholders’ equity
|
||||||||
Liabilities:
|
||||||||
Deposits
|
$
|
i 646,063
|
$
|
i 686,916
|
||||
Securities sold under agreements to repurchase
|
i 71,381 | i 63,471 | ||||||
FHLB advances
|
i 210,268
|
i 128,344
|
||||||
Notes payable
|
i 14,000 |
i 14,000 |
||||||
Accrued expenses and other liabilities
|
i 12,176
|
i 11,910
|
||||||
Total liabilities
|
i 953,888
|
i 904,641
|
||||||
Non-Cumulative Redeemable Perpetual Preferred stock, Series C;
authorized i i 150,000 /
shares at June 30, 2023 and December 31, 2022; issued and outstanding i i i i 150,000 / / /
shares at June 30, 2023 and December 31, 2022; liquidation value $ i i 1,000 /
per share
|
i 150,000 | i 150,000 | ||||||
Common stock, Class A, $ i i 0.01 /
par value, voting;
authorized i i 75,000,000 /
shares at June 30, 2023 and December 31, 2022;
issued i 52,069,919 shares at June 30, 2023 and i 51,265,209
shares at December 31, 2022;
outstanding i 49,452,093 shares at June 30, 2023 and i 48,647,383
shares
at December 31, 2022
|
i 520
|
i 513
|
||||||
Common stock, Class B, $ i i 0.01 /
par value, non-voting; authorized i i 15,000,000 /
shares at June 30, 2023 and December 31, 2022; issued and outstanding i i i i 11,404,618 / / /
shares at June 30, 2023 and December 31, 2022
|
i 114 |
i 114 |
||||||
Common stock, Class C, $ i i 0.01 /
par value, non-voting; authorized i i 25,000,000 /
shares at June 30, 2023 and December 31, 2022; issued and outstanding i i i i 13,380,516 / / /
at June 30, 2023 and December 31, 2022
|
i 134
|
i 134
|
||||||
Additional paid-in capital
|
i 143,659
|
i 143,491
|
||||||
Retained earnings
|
i 9,854
|
i 9,294
|
||||||
Unearned Employee Stock Ownership Plan (ESOP) shares
|
( i 4,247
|
)
|
( i 1,265
|
)
|
||||
Accumulated other comprehensive loss, net of tax
|
( i 17,419
|
)
|
( i 17,473
|
)
|
||||
|
( i 5,326
|
)
|
( i 5,326
|
)
|
||||
Total Broadway Financial Corporation and Subsidiary stockholders’ equity
|
i 277,289
|
i 279,482
|
||||||
Non-controlling interest
|
i 195 | i 170 | ||||||
Total liabilities and stockholders’ equity
|
$
|
i 1,231,372
|
$
|
i 1,184,293
|
Three Months Ended
June 30,
|
Six
Months Ended
|
|||||||||||||||
2022
|
2023
|
2022
|
||||||||||||||
Interest income:
|
||||||||||||||||
Interest and fees on loans receivable
|
$
|
i 9,098
|
$
|
i 6,879
|
$
|
i 17,633
|
$
|
i 14,083
|
||||||||
Interest on available-for-sale securities
|
i 2,183
|
i 834
|
i 4,363
|
i 1,425
|
||||||||||||
Other interest income
|
i 359
|
i 788
|
i 687
|
i 872
|
||||||||||||
Total interest income
|
i 11,640
|
i 8,501
|
i 22,683
|
i 16,380
|
||||||||||||
Interest expense:
|
||||||||||||||||
Interest on deposits
|
i 1,549
|
i 349
|
i 2,852
|
i 699
|
||||||||||||
Interest on borrowings
|
i 2,823
|
i 114
|
i 4,289
|
i 471
|
||||||||||||
Total interest expense
|
i 4,372
|
i 463
|
i 7,141
|
i 1,170
|
||||||||||||
Net interest income
|
i 7,268
|
i 8,038
|
i 15,542
|
i 15,210
|
||||||||||||
Provision for (recapture of) credit losses
|
i 768
|
( i 577
|
)
|
i 810
|
( i 429
|
)
|
||||||||||
Net interest income after provision for credit losses
|
i 6,500
|
i 8,615
|
i 14,732
|
i 15,639
|
||||||||||||
Non-interest income:
|
||||||||||||||||
Service charges
|
i 38
|
i 21
|
i 99
|
i 85
|
||||||||||||
Other
|
i 222
|
i 240
|
i 450
|
i 457
|
||||||||||||
Total non-interest income
|
i 260
|
i 261
|
i 549
|
i 542
|
||||||||||||
Non-interest expense:
|
||||||||||||||||
Compensation and benefits
|
i 3,734
|
i 3,307
|
i 7,483
|
i 6,926
|
||||||||||||
Occupancy expense
|
i 443
|
i 400
|
i 888
|
i 842
|
||||||||||||
Information services
|
i 735
|
i 767
|
i 1,450
|
i 1,632
|
||||||||||||
Professional services
|
i 607
|
i 958
|
i 1,112
|
i 1,322
|
||||||||||||
Supervisory costs
|
i 201
|
i 100
|
i 295
|
i 257
|
||||||||||||
Office services and supplies
|
i 26
|
i 54
|
i 48
|
i 115
|
||||||||||||
Advertising and promotional expense |
i 59 | i 17 | i 127 | i 67 | ||||||||||||
Corporate insurance
|
i 61
|
i 62
|
i 123
|
i 115
|
||||||||||||
Appraisal and other loan expense
|
i 26 | i 66 | i 69 | i 96 | ||||||||||||
Amortization of core deposit intangible
|
i 97
|
i 108
|
i 195
|
i 217
|
||||||||||||
Travel expense | i 37 | i 62 | i 115 | i 93 | ||||||||||||
Other expense
|
i 395
|
i 365
|
i 768
|
i 544
|
||||||||||||
Total non-interest expense
|
i 6,421
|
i 6,266
|
i 12,673
|
i 12,226
|
||||||||||||
Income before income taxes
|
i 339
|
i 2,610
|
i 2,608
|
i 3,955
|
||||||||||||
Income tax expense
|
i 93
|
i 757
|
i 767
|
i 1,120
|
||||||||||||
Net income
|
$
|
i 246
|
$
|
i 1,853
|
$
|
i 1,841
|
$
|
i 2,835
|
||||||||
Less: Net income (loss) attributable to non-controlling interest
|
i 3
|
( i 1
|
)
|
i 25
|
i 23
|
|||||||||||
Net income attributable to Broadway Financial Corporation
|
$
|
i 243
|
$
|
i 1,854
|
$
|
i 1,816
|
$
|
i 2,812
|
||||||||
Other comprehensive (loss) income, net of tax:
|
||||||||||||||||
Unrealized (losses) gains on securities available-for-sale arising during the period
|
$
|
( i 3,356
|
)
|
$
|
( i 5,178
|
)
|
$
|
i 77
|
$
|
( i 13,332
|
)
|
|||||
Income tax (benefit) expense
|
( i 965
|
)
|
( i 1,675
|
)
|
i 23
|
( i 3,982
|
)
|
|||||||||
Other comprehensive (loss) income, net of tax
|
( i 2,391
|
)
|
( i 3,503
|
)
|
i 54
|
( i 9,350
|
)
|
|||||||||
Comprehensive (loss) income
|
$
|
( i 2,148
|
)
|
$
|
( i 1,649
|
)
|
$
|
i 1,870
|
$
|
( i 6,538
|
)
|
|||||
Earnings per common share-basic
|
$
|
i –
|
$
|
i 0.03
|
$
|
i 0.03
|
$
|
i 0.04
|
||||||||
Earnings per common share-diluted
|
$
|
i –
|
$
|
i 0.03
|
$
|
i 0.03
|
$
|
i 0.04
|
Six Months Ended
June 30, |
||||||||
2022
|
||||||||
(In thousands)
|
||||||||
Cash flows from operating activities:
|
||||||||
Net income
|
$
|
i 1,841
|
$
|
i 2,835
|
||||
Adjustments to reconcile net income to net cash provided by
(used in) operating activities:
|
||||||||
Provision (recapture) for credit losses
|
i 810
|
( i 429
|
)
|
|||||
Depreciation
|
i 323
|
i 573
|
||||||
Amortization of deferred loan origination costs, net
|
( i 460
|
)
|
( i 376
|
)
|
||||
Net amortization of premiums and discounts on
available-for-sale securities
|
( i 511
|
)
|
i 192
|
|||||
Amortization of purchase accounting marks on loans
|
( i 66
|
)
|
( i 990
|
)
|
||||
Amortization of core deposit intangible
|
i 195
|
i 217
|
||||||
Director compensation expense-common stock
|
i 95
|
i 84
|
||||||
Accretion of premium on FHLB advances
|
( i 6
|
)
|
( i 20
|
)
|
||||
Stock-based compensation expense
|
i 90
|
i 58
|
||||||
ESOP compensation expense
|
i 22
|
i 45
|
||||||
Earnings on bank owned life insurance
|
( i 20
|
)
|
( i 21
|
)
|
||||
Change in assets and liabilities:
|
||||||||
Net change in deferred taxes
|
i 461
|
i 1,209
|
||||||
Net change in accrued interest receivable
|
( i 141 | ) | i 678 |
|||||
Net change in other assets
|
( i 595
|
)
|
( i 1,039
|
)
|
||||
Net change in accrued expenses and other liabilities
|
i 97
|
( i 3,375
|
)
|
|||||
Net cash provided by (used in) operating activities
|
i 2,135
|
( i 359
|
)
|
|||||
Cash flows from investing activities:
|
||||||||
Net change in loans receivable held for investment
|
( i 58,668
|
)
|
i 3,440
|
|||||
Principal payments on available-for-sale securities
|
i 6,821
|
i 9,231
|
||||||
Purchase of available-for-sale securities
|
i –
|
( i 104,657
|
)
|
|||||
Purchase of FHLB stock
|
( i 3,783
|
)
|
( i 328
|
)
|
||||
Proceeds from redemption of FHLB stock
|
i 256
|
i 1,431
|
||||||
Proceeds from redemption of FRB stock |
i 1,721 | i – | ||||||
Purchase of office properties and equipment
|
( i 32
|
)
|
( i 583
|
)
|
||||
Net cash used in investing activities
|
( i 53,685
|
)
|
( i 91,466
|
)
|
||||
Cash flows from financing activities:
|
||||||||
Net change in deposits
|
( i 40,853
|
)
|
i 28,125
|
|||||
Net change in securities sold under agreements to repurchase
|
i 7,910
|
i 15,332
|
||||||
Increase in unreleased ESOP shares
|
( i 2,800
|
)
|
i –
|
|||||
Proceeds from issuance of preferred stock |
i – |
i 150,000 |
||||||
Dividends paid on preferred stock
|
i –
|
( i 15
|
)
|
|||||
Proceeds from FHLB advances
|
i 82,000
|
i –
|
||||||
Repayments of FHLB advances
|
( i 70
|
)
|
( i 53,000
|
)
|
||||
Net cash provided by financing activities
|
i 46,187
|
i 140,442
|
||||||
Net change in cash and cash equivalents
|
( i 5,363
|
)
|
i 48,617
|
|||||
Cash and cash equivalents at beginning of the period
|
i 16,105
|
i 231,520
|
||||||
Cash and cash equivalents at end of the period
|
$
|
i 10,742
|
$
|
i 280,137
|
||||
Supplemental disclosures of cash flow
information:
|
||||||||
Cash paid for interest
|
$
|
i 4,648
|
$
|
i 1,378
|
||||
Cash paid for income taxes
|
i 236
|
i –
|
||||||
Supplemental non-cash disclosures: |
||||||||
Common stock issued in exchange for preferred stock |
i – | i 3,000 |
Three Month Periods Ended June 30, 2023 and 2022
|
||||||||||||||||||||||||||||||||||||||||
Preferred Stock Non-Voting
|
Common
Stock Voting |
Common
Stock Non-Voting |
Additional
Paid-in Capital |
Accumulated Other Comprehensive Loss
|
Retained Earnings
|
Unearned
ESOP Shares |
Treasury
Stock |
Non-Controlling Interest
|
Total
Stockholders’ Equity |
|||||||||||||||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||||||||||||||||||
Balance at April 1, 2023
|
$
|
i 150,000
|
$
|
i 513
|
$
|
i 248
|
$
|
i 143,621
|
$
|
( i 15,028
|
)
|
$
|
i 9,611
|
$
|
( i 3,963
|
)
|
$
|
( i 5,326
|
)
|
$
|
i 192
|
$
|
i 279,868
|
|||||||||||||||||
Net income
|
i –
|
i –
|
i –
|
i –
|
i –
|
i 243
|
i –
|
i –
|
i 3 | i 246 | ||||||||||||||||||||||||||||||
Release of unearned ESOP shares
|
i – | i – | i – | ( i 6 | ) | i – | i – | i 16 | i – | i – | i 10 | |||||||||||||||||||||||||||||
Increase in unreleased shares
|
i – | i – | i – | i – | i – | i – | ( i 300 | ) | i – | i – | ( i 300 | ) | ||||||||||||||||||||||||||||
Stock-based compensation expense
|
i – | i 7 | i – | i 44 | i – | i – | i – | i – | i – | i 51 | ||||||||||||||||||||||||||||||
Director stock compensation expense
|
i – | i – | i – | i – | i – | i – | i – | i – | i – | i – | ||||||||||||||||||||||||||||||
Other comprehensive income, net of tax
|
i – | i – | i – | i – | ( i 2,391 | ) | i – | i – | i – | i – | ( i 2,391 | ) | ||||||||||||||||||||||||||||
Balance at June 30, 2023
|
$
|
i 150,000
|
$
|
i 520
|
|
i 248
|
|
i 143,659
|
|
( i 17,419
|
)
|
|
i 9,854
|
|
( i 4,247
|
)
|
|
( i 5,326
|
)
|
|
i 195
|
|
i 277,484
|
|||||||||||||||||
Balance at April 1, 2022
|
$
|
i –
|
$
|
i 489
|
$
|
i 272
|
$
|
i 143,373
|
$
|
( i 6,398
|
)
|
$
|
i 4,616
|
$
|
( i 813
|
)
|
$
|
( i 5,326
|
)
|
$
|
i 124
|
$
|
i 136,337
|
|||||||||||||||||
Net income
|
i –
|
i –
|
i –
|
i –
|
i –
|
i 1,854
|
i –
|
i –
|
( i 1 | ) |
i 1,853
|
|||||||||||||||||||||||||||||
Preferred shares issued |
i 150,000 |
i – | i – |
i – |
i – | i – | i – | i – | i – | i 150,000 | ||||||||||||||||||||||||||||||
Conversion of non-voting common shares into voting common shares
|
i – | i 15 | ( i 15 | ) | i – | i – | i – | i – | i – | i – | i – | |||||||||||||||||||||||||||||
Release of unearned ESOP shares
|
i – | i – | i – | i 11 | i – | i – | i 16 | i – | i – | i 27 | ||||||||||||||||||||||||||||||
Stock-based compensation expense
|
i – | i – | i – | i 43 | i – | i – | i – | i – | i – | i 43 | ||||||||||||||||||||||||||||||
Other comprehensive loss, net of tax
|
i – | i – | i – | i – | ( i 3,503 | ) | i – | i – | i – | i – | ( i 3,503 | ) | ||||||||||||||||||||||||||||
Balance at June 30, 2022
|
$
|
i 150,000
|
$
|
i 504
|
$
|
i 257
|
$
|
i 143,427
|
$
|
( i 9,901
|
)
|
$
|
i 6,470
|
$
|
( i 797
|
)
|
$
|
( i 5,326
|
)
|
$ | i 123 |
$
|
i 284,757
|
Six Month Periods Ended June 30, 2023 and 2022
|
||||||||||||||||||||||||||||||||||||||||
Preferred Stock Non-Voting
|
Common
Stock Voting |
Common
Stock Non-Voting |
Additional
Paid-in Capital |
Accumulated Other Comprehensive Loss
|
Retained Earnings
|
Unearned ESOP Shares
|
Treasury
Stock |
Non-Controlling Interest
|
Total
Stockholders’ Equity |
|||||||||||||||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2023
|
$
|
i 150,000
|
$
|
i 513
|
$
|
i 248
|
$
|
i 143,491
|
$
|
( i 17,473
|
)
|
$
|
i 9,294
|
$
|
( i 1,265
|
)
|
$
|
( i 5,326
|
)
|
$
|
i 170
|
$
|
i 279,652
|
|||||||||||||||||
Cumulative effect of change related to adoption of ASU 2016-13
|
– | – | – | – | – | ( i 1,256 | ) | – | – | – | ( i 1,256 | ) | ||||||||||||||||||||||||||||
Adjusted balance, January 1, 2023
|
i 150,000 | i 513 | i 248 | i 143,491 | ( i 17,473 | ) | i 8,038 | ( i 1,265 | ) | ( i 5,326 | ) | i 170 | i 278,396 | |||||||||||||||||||||||||||
Net income
|
i –
|
i –
|
i –
|
i –
|
i –
|
i 1,816
|
i –
|
i –
|
i 25
|
i 1,841
|
||||||||||||||||||||||||||||||
Release of unearned ESOP shares
|
i –
|
i –
|
i –
|
( i 10
|
)
|
i –
|
i –
|
( i 182
|
)
|
i –
|
i –
|
( i 192
|
)
|
|||||||||||||||||||||||||||
Increase in unreleased ESOP shares
|
i – | i – | i – | i – | i – | i – | ( i 2,800 | ) | i – | i – | ( i 2,800 | ) | ||||||||||||||||||||||||||||
Stock compensation expense
|
i – | i 7 | i – | i 83 | i – | i – | i – | i – | i – | i 90 | ||||||||||||||||||||||||||||||
Director stock compensation expense
|
i –
|
i –
|
i –
|
i 95
|
i –
|
i –
|
i –
|
i –
|
i –
|
i 95
|
||||||||||||||||||||||||||||||
Other comprehensive loss, net of tax
|
i –
|
i –
|
i –
|
i –
|
i 54
|
i –
|
i –
|
i –
|
i –
|
i 54
|
||||||||||||||||||||||||||||||
Balance at June 30, 2023
|
$
|
i 150,000
|
$
|
i 520
|
$
|
i 248
|
$
|
i 143,659
|
$
|
( i 17,419
|
)
|
$
|
i 9,854
|
$
|
( i 4,247
|
)
|
$
|
( i 5,326
|
)
|
$
|
i 195
|
$
|
i 277,484
|
|||||||||||||||||
Balance at January 1, 2022
|
$
|
i 3,000
|
$
|
i 463
|
$
|
i 281
|
$
|
i 140,289
|
$
|
( i 551
|
)
|
$
|
i 3,673
|
$
|
( i 829
|
)
|
$
|
( i 5,326
|
)
|
$ | i 100 |
$
|
i 141,100
|
|||||||||||||||||
Net income
|
i –
|
i –
|
i –
|
i –
|
i –
|
i 2,812
|
i –
|
i –
|
i 23 |
i 2,835
|
||||||||||||||||||||||||||||||
Preferred shares issued in business combination
|
i 150,000 | i – | i – | i – | i – | i – | i – | i – | i – | i 150,000 | ||||||||||||||||||||||||||||||
Dividends paid on preferred stock
|
i – | i – | i – | i – | i – | ( i 15 | ) | i – | i – | i – | ( i 15 | ) | ||||||||||||||||||||||||||||
Release of unearned ESOP shares
|
i – | i – | i – | i 13 | i – | i – | i 32 | i – | i – | i 45 | ||||||||||||||||||||||||||||||
Stock compensation expense
|
i – | i 5 | i – | i 53 | i – | i – | i – | i – | i – | i 58 | ||||||||||||||||||||||||||||||
Director stock compensation expense
|
i – | i – | i – | i 84 | i – | i – | i – | i – | i – | i 84 | ||||||||||||||||||||||||||||||
Conversion of preferred shares to common shares
|
( i 3,000 | ) | i 12 | i – | i 2,988 | i – | i – | i – | i – | i – | i – | |||||||||||||||||||||||||||||
Conversion of non-voting shares into voting shares
|
i – | i 24 | ( i 24 | ) | i – | i – | i – | i – | i – | i – | i – | |||||||||||||||||||||||||||||
Other comprehensive income, net of tax
|
i – | i – | i – | i – | ( i 9,350 | ) | i – | i – | i – | i – | ( i 9,350 | ) | ||||||||||||||||||||||||||||
Balance at June 30, 2022
|
$
|
i 150,000
|
$
|
i 504
|
$
|
i 257
|
$
|
i 143,427
|
$
|
( i 9,901
|
)
|
$
|
i 6,470
|
$
|
( i 797
|
)
|
$
|
( i 5,326
|
)
|
$ | i 123 |
$
|
i 284,757
|
Pre-CECL Adoption
|
Impact of
CECL Adoption
|
As Reported
Under CECL
|
||||||||||
(In thousands) | ||||||||||||
Assets:
|
||||||||||||
Allowance for credit losses on available-for-sale securities
|
$
|
i –
|
$
|
i –
|
$
|
i –
|
||||||
Allowance for credit losses on loans
|
i 4,388
|
i 1,809
|
i 6,197
|
|||||||||
Deferred tax assets
|
i 11,872
|
i 508
|
i 12,380
|
|||||||||
Liabilities:
|
||||||||||||
Allowance for credit losses on off-balance sheet exposures
|
i 412
|
( i 45
|
)
|
i 367
|
||||||||
Stockholders’ equity:
|
||||||||||||
Retained earnings
|
i 9,294
|
( i 1,256
|
)
|
i 8,038
|
Three Months Ended
June 30,
|
Six Months Ended
|
|||||||||||||||
2022
|
2023 | 2022 | ||||||||||||||
(In thousands, except share and per share data)
|
||||||||||||||||
Net income attributable to Broadway Financial Corporation
|
$
|
i 243
|
$
|
i 1,854
|
$ | i 1,816 | $ | i 2,812 | ||||||||
Less net income attributable to participating securities
|
i 4
|
i 12
|
i 27 | i 18 | ||||||||||||
Income available to common stockholders
|
$
|
i 239
|
$
|
i 1,842
|
$ | i 1,789 | $ | i 2,794 | ||||||||
Weighted average common shares outstanding for basic earnings per common share
|
i 69,470,113
|
i 72,527,974
|
i 70,177,588 | i 72,292,735 | ||||||||||||
Add: dilutive effects of unvested restricted stock awards
|
i 1,025,840
|
i 461,047
|
i 1,041,188 |
i 467,890 |
||||||||||||
Add: dilutive effects of assumed exercise of stock options |
i – | i – | i – | i 7,982 | ||||||||||||
Weighted average common shares outstanding for diluted earnings per common share
|
i 70,495,953
|
i 72,989,021
|
i 71,218,776 | i 72,768,607 | ||||||||||||
Earnings per common share - basic
|
$
|
i –
|
$
|
i 0.03
|
$ | i 0.03 | $ | i 0.04 | ||||||||
Earnings per common share - diluted
|
$
|
i –
|
$
|
i 0.03
|
$ | i 0.03 | $ | i 0.04 |
Amortized
Cost |
Gross
Unrealized Gains
|
Gross
Unrealized Losses
|
Fair
Value
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Federal agency mortgage-backed securities
|
$
|
i 80,486
|
$
|
i 1
|
$
|
( i 10,559
|
)
|
$
|
i 69,928
|
|||||||
Federal agency collateralized mortgage obligations (“CMO”)
|
i 26,192 | i – | ( i 1,813 | ) | i 24,379 | |||||||||||
Federal agency debt
|
i 55,786
|
i –
|
( i 4,011
|
)
|
i 51,775
|
|||||||||||
Municipal bonds
|
i 4,850
|
i –
|
( i 581
|
)
|
i 4,269
|
|||||||||||
U.S. Treasuries
|
i 166,519
|
i –
|
( i 5,706
|
)
|
i 160,813
|
|||||||||||
U.S. Small Business Administration (the “SBA”) pools
|
i 13,186
|
i 6
|
( i 1,840
|
)
|
i 11,352
|
|||||||||||
Total available-for-sale securities
|
$
|
i 347,019
|
$
|
i 7
|
$
|
( i 24,510
|
)
|
$
|
i 322,516
|
|||||||
Federal agency mortgage-backed securities
|
$
|
i 84,955
|
$
|
i 2
|
$
|
( i 10,788
|
)
|
$
|
i 74,169
|
|||||||
Federal agency CMOs |
i 27,776 | i – | ( i 1,676 | ) | i 26,100 | |||||||||||
Federal agency debt
|
i 55,687
|
i 26
|
( i 4,288
|
)
|
i 51,425
|
|||||||||||
Municipal bonds
|
i 4,866
|
i –
|
( i 669
|
)
|
i 4,197
|
|||||||||||
U.S. Treasuries |
i 165,997 | i – | ( i 5,408 | ) | i 160,589 | |||||||||||
SBA pools
|
i 14,048 | i 9 | ( i 1,788 | ) | i 12,269 | |||||||||||
Total available-for-sale securities
|
$
|
i 353,329
|
$
|
i 37
|
$
|
( i 24,617
|
)
|
$
|
i 328,749
|
Amortized
Cost
|
Gross
Unrealized Gains
|
Gross
Unrealized Losses
|
Fair
Value
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Due in one year or less
|
$
|
i 54,845
|
$
|
i –
|
$
|
( i 1,125
|
)
|
$
|
i 53,720
|
|||||||
Due after one year through five years
|
i 166,296
|
i –
|
( i 8,028
|
)
|
i 158,268
|
|||||||||||
Due after five years through ten years
|
i 33,410
|
i –
|
( i 3,020
|
)
|
i 30,390
|
|||||||||||
Due after ten years (1)
|
i 92,468
|
i 7
|
( i 12,337
|
)
|
i 80,138
|
|||||||||||
$
|
i 347,019
|
$
|
i 7
|
$
|
( i 24,510
|
)
|
$
|
i 322,516
|
(1)
|
Mortgage-backed securities, collateralized mortgage obligations and SBA pools do not have a single
stated maturity date and therefore have been included in the “Due after ten years” category.
|
Less than 12 Months
|
12 Months or Longer
|
Total
|
||||||||||||||||||||||
Fair
Value
|
Unrealized
Losses
|
Fair
Value
|
Unrealized
Losses
|
Fair
Value
|
Unrealized
Losses
|
|||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
Federal agency mortgage-backed securities
|
$
|
i 8,481
|
$
|
( i 332
|
)
|
$
|
i 61,199
|
$
|
( i 10,227
|
)
|
$
|
i 69,680
|
$
|
( i 10,559
|
)
|
|||||||||
Federal agency CMOs
|
i 11,792
|
( i 570
|
)
|
i 12,587
|
( i 1,243
|
)
|
i 24,379
|
( i 1,813
|
)
|
|||||||||||||||
Federal agency debt
|
i 10,427
|
( i 169
|
)
|
i 41,348
|
( i 3,842
|
)
|
i 51,775
|
( i 4,011
|
)
|
|||||||||||||||
Municipal bonds
|
i 356
|
( i 44
|
)
|
i 3,913
|
( i 537
|
)
|
i 4,269
|
( i 581
|
)
|
|||||||||||||||
U. S. Treasuries
|
i 115,280
|
( i 3,306
|
)
|
i 45,533
|
( i 2,400
|
)
|
i 160,813
|
( i 5,706
|
)
|
|||||||||||||||
SBA pools
|
i 563
|
( i 2
|
)
|
i 9,757
|
( i 1,838
|
)
|
i 10,320
|
( i 1,840
|
)
|
|||||||||||||||
Total unrealized loss position investment securities
|
$
|
i 146,899
|
$
|
( i 4,423
|
)
|
$
|
i 174,337
|
$
|
( i 20,087
|
)
|
$
|
i 321,236
|
$
|
( i 24,510
|
)
|
|||||||||
Federal agency mortgage-backed securities
|
$
|
i 38,380
|
$
|
( i 4,807
|
)
|
$
|
i 35,526
|
$
|
( i 5,981
|
)
|
$
|
i 73,906
|
$
|
( i 10,788
|
)
|
|||||||||
Federal agency CMOs |
i 20,997 | ( i 885 | ) | i 5,103 | ( i 791 | ) | i 26,100 | ( i 1,676 | ) | |||||||||||||||
Federal agency debt
|
i 26,383
|
( i 1,529
|
)
|
i 21,956
|
( i 2,759
|
)
|
i 48,339
|
( i 4,288
|
)
|
|||||||||||||||
Municipal bonds
|
i 2,176
|
( i 315
|
)
|
i 2,021
|
( i 354
|
)
|
i 4,197
|
( i 669
|
)
|
|||||||||||||||
U. S. Treasuries
|
i 143,989
|
( i 3,884
|
)
|
i 16,600
|
( i 1,524
|
)
|
i 160,589
|
( i 5,408
|
)
|
|||||||||||||||
SBA pools |
i 3,743 | ( i 365 | ) | i 6,763 | ( i 1,423 | ) | i 10,506 | ( i 1,788 | ) | |||||||||||||||
Total unrealized loss position investment securities
|
$
|
i 235,668
|
$
|
( i 11,785
|
)
|
$
|
i 87,969
|
$
|
( i 12,832
|
)
|
$
|
i 323,637
|
$
|
( i 24,617
|
)
|
(In thousands)
|
||||||||
Real estate:
|
||||||||
Single family
|
$
|
i 25,952
|
$
|
i 30,038
|
||||
Multi-family
|
i 529,169
|
i 502,141
|
||||||
Commercial real estate
|
i 128,029
|
i 114,574
|
||||||
Church
|
i 11,946
|
i 15,780
|
||||||
Construction
|
i 77,335
|
i 40,703
|
||||||
Commercial – other
|
i 53,056
|
i 64,841
|
||||||
SBA loans (1) |
i 5,724 | i 3,601 | ||||||
Consumer
|
i 30
|
i 11
|
||||||
Gross loans receivable before deferred loan costs and premiums
|
i 831,241
|
i 771,689
|
||||||
Unamortized net deferred loan costs and premiums
|
i 1,295
|
i 1,755
|
||||||
Gross loans receivable
|
i 832,536
|
i 773,444
|
||||||
Credit and interest marks on purchased loans, net
|
( i 945 | ) | ( i 1,010 | ) | ||||
Allowance for credit losses (2) |
( i 6,970 | ) | ( i 4,388 | ) | ||||
Loans receivable, net
|
$
|
i 824,621
|
$
|
i 768,046
|
(1) |
Including Paycheck Protection Program (PPP) loans.
|
(2) | The allowance for credit losses as of December 31, 2022 was accounted for under ASC 450 and ASC 310, which is reflective of probable incurred losses as of the date of the consolidated statement of financial condition. Effective January 1, 2023, the allowance for credit losses is accounted for under ASC 326, which is reflective of estimated expected lifetime credit losses. |
|
June 30, 2023
|
December 31, 2022 | ||||||
|
(In thousands)
|
|||||||
Real estate:
|
||||||||
Single family
|
$
|
i –
|
$ | i 68 | ||||
Commercial – other
|
i 49
|
i 57 | ||||||
$
|
i 49
|
$ | i 125 |
Three Months Ended
|
Six Months Ended
|
|||||||
(In thousands)
|
||||||||
Balance at the beginning of the period
|
$
|
i 165
|
$
|
i 165
|
||||
Deduction due to payoffs
|
( i 112
|
)
|
( i 112
|
)
|
||||
Accretion
|
i 4
|
i 4
|
||||||
Balance at the end of the period
|
$
|
i 49
|
$
|
i 49
|
|
Three Months Ended
|
Six Months Ended
|
||||||
(In thousands)
|
||||||||
Balance at the beginning of the period
|
$ | i 165 | $ | i 883 | ||||
Deduction due to payoffs
|
i – | ( i 707 | ) | |||||
Accretion
|
i 5
|
i 16
|
||||||
Balance at the end of the period
|
$
|
i 160
|
$
|
i 160
|
Three Months Ended June 30, 2023
|
||||||||||||||||||||
Beginning
Balance
|
Charge-offs
|
Recoveries
|
Provision
(Recapture) (1)
|
Ending Balance
|
||||||||||||||||
(In thousands)
|
||||||||||||||||||||
Loans receivable held for investment:
|
||||||||||||||||||||
Real estate: | ||||||||||||||||||||
Single family
|
$
|
i 261
|
$
|
i –
|
$
|
i –
|
$
|
( i 14
|
)
|
$
|
i 247
|
|||||||||
Multi-family
|
i 3,932
|
i –
|
i –
|
i 323
|
i 4,255
|
|||||||||||||||
Commercial real estate
|
i 1,012
|
i –
|
i –
|
i –
|
i 1,012
|
|||||||||||||||
Church
|
i 92
|
i –
|
i –
|
( i 9
|
)
|
i 83
|
||||||||||||||
Construction
|
i 593
|
i –
|
i –
|
i 195
|
i 788
|
|||||||||||||||
Commercial - other
|
i 357
|
i –
|
i –
|
i 189
|
i 546
|
|||||||||||||||
SBA loans
|
i 38
|
i –
|
i –
|
i 1
|
i 39
|
|||||||||||||||
Consumer
|
i –
|
i –
|
i –
|
i –
|
i –
|
|||||||||||||||
Total
|
$
|
i 6,285
|
$
|
i –
|
$
|
i –
|
$
|
i 685
|
$
|
i 6,970
|
Six Months Ended June 30, 2023
|
||||||||||||||||||||||||
Beginning
Balance
|
Impact of
CECL
Adoption
|
Charge-offs
|
Recoveries
|
Provision
(Recapture) (1)
|
Ending Balance
|
|||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
Loans receivable held for investment:
|
||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||
Single family
|
$
|
i 109
|
$
|
i 214
|
$
|
i –
|
$
|
i –
|
$
|
( i 76
|
)
|
$
|
i 247
|
|||||||||||
Multi-family
|
i 3,273
|
i 603
|
i –
|
i –
|
i 379
|
i 4,255
|
||||||||||||||||||
Commercial real estate
|
i 449
|
i 466
|
i –
|
i –
|
i 97
|
i 1,012
|
||||||||||||||||||
Church
|
i 65
|
i 37
|
i –
|
i –
|
( i 19
|
)
|
i 83
|
|||||||||||||||||
Construction
|
i 313
|
i 219
|
i –
|
i –
|
i 256
|
i 788
|
||||||||||||||||||
Commercial - other
|
i 175
|
i 254
|
i –
|
i –
|
i 117
|
i 546
|
||||||||||||||||||
SBA loans
|
i –
|
i 20
|
i –
|
i –
|
i 19
|
i 39
|
||||||||||||||||||
Consumer
|
i 4
|
( i 4
|
)
|
i –
|
i –
|
i –
|
i –
|
|||||||||||||||||
Total
|
$
|
i 4,388
|
$
|
i 1,809
|
$
|
i –
|
$
|
i –
|
$
|
i 773
|
$
|
i 6,970
|
(1) |
The bank also recorded a provision for off balance sheet loan commitments of $ i 83 thousand for the three months ended June 30, 2023 and $ i 37
thousand for six months ended June 30, 2023.
|
Real Estate
|
||||||||||||||||||||||||||||||||
Single
Family |
Multi-
Family
|
Commercial Real Estate
|
Church
|
Construction
|
Commercial - Other
|
Consumer
|
Total
|
|||||||||||||||||||||||||
Beginning balance
|
$
|
i 157
|
$
|
i 2,771
|
$
|
i 217
|
$
|
i 63
|
$
|
i 236
|
$
|
i 95
|
$
|
i –
|
$
|
i 3,539
|
||||||||||||||||
Provision for (recapture
of) loan losses
|
( i 37
|
)
|
( i 493
|
)
|
( i 64
|
)
|
( i 15
|
)
|
( i 15
|
)
|
i 43
|
i 4
|
( i 577
|
)
|
||||||||||||||||||
Recoveries
|
i –
|
i –
|
i –
|
i –
|
i –
|
i –
|
i –
|
i –
|
||||||||||||||||||||||||
Loans charged off
|
i –
|
i –
|
i –
|
i –
|
i –
|
i –
|
i –
|
i –
|
||||||||||||||||||||||||
Ending balance
|
$
|
i 120
|
$
|
i 2,278
|
$
|
i 153
|
$
|
i 48
|
$
|
i 221
|
$
|
i 138
|
$
|
i 4
|
$
|
i 2,962
|
For the Six Months
Ended June 30, 2022
|
||||||||||||||||||||||||||||||||
Real Estate
|
||||||||||||||||||||||||||||||||
Single
Family
|
Multi-
Family
|
Commercial Real Estate
|
Church
|
Construction
|
Commercial - Other
|
Consumer
|
Total
|
|||||||||||||||||||||||||
Beginning balance
|
$
|
i 145
|
$
|
i 2,657
|
$
|
i 236
|
$
|
i 103
|
$
|
i 212
|
$
|
i 23
|
$
|
i 15
|
$
|
i 3,391
|
||||||||||||||||
Provision for (recapture of) loan losses
|
( i 25
|
)
|
( i 379
|
)
|
( i 83
|
)
|
( i 55
|
)
|
i 9
|
i 115
|
( i 11
|
)
|
( i 429
|
)
|
||||||||||||||||||
Recoveries
|
i –
|
i –
|
i –
|
i –
|
i –
|
i –
|
i –
|
i –
|
||||||||||||||||||||||||
Loans charged off
|
i –
|
i –
|
i –
|
i –
|
i –
|
i –
|
i –
|
i –
|
||||||||||||||||||||||||
Ending balance
|
$
|
i 120
|
$
|
i 2,278
|
$
|
i 153
|
$
|
i 48
|
$
|
i 221
|
$
|
i 138
|
$
|
i 4
|
$
|
i 2,962
|
|
Single Family
|
Multi-Use
Residential
|
Church
|
Business Assets
|
Total
|
|||||||||||||||
Real estate:
|
(In thousands)
|
|||||||||||||||||||
Single family
|
$
|
i 50
|
$
|
i 0
|
$
|
i –
|
$
|
i –
|
$
|
i 50
|
||||||||||
Multi family
|
i – |
i 5,741 | i – | i – | i 5,741 | |||||||||||||||
Commercial real estate
|
i –
|
i –
|
i 74
|
i –
|
i 74
|
|||||||||||||||
Church
|
i –
|
i –
|
i 691
|
i –
|
i 691
|
|||||||||||||||
Commercial – other
|
i –
|
i –
|
i –
|
i 275
|
i 275
|
|||||||||||||||
Total
|
$
|
i 50
|
$
|
i 5,741
|
$
|
i 765
|
$
|
i 275
|
$
|
i 6,831
|
December 31, 2022 | ||||||||||||||||||||||||||||||||
Real Estate
|
||||||||||||||||||||||||||||||||
Single
Family
|
Multi-
Family |
Commercial
Real Estate
|
Church
|
Construction
|
Commercial - Other
|
Consumer
|
Total
|
|||||||||||||||||||||||||
(In thousands) |
||||||||||||||||||||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||||||||||||||
Ending allowance balance attributable to loans: | ||||||||||||||||||||||||||||||||
Individually evaluated for impairment
|
$
|
i 3
|
$
|
i –
|
$
|
i –
|
$
|
i 4
|
$
|
i –
|
$ | i – | $ | i – |
$
|
i 7
|
||||||||||||||||
Collectively evaluated for impairment
|
i 106
|
i 3,273
|
i 449
|
i 61
|
i 313
|
i 175
|
i 4 |
i 4,381
|
||||||||||||||||||||||||
Total ending allowance balance
|
$
|
i 109
|
$
|
i 3,273
|
$
|
i 449
|
$
|
i 65
|
$
|
i 313
|
$
|
i 175
|
$ | i 4 |
$
|
i 4,388
|
||||||||||||||||
Loans:
|
||||||||||||||||||||||||||||||||
Loans individually evaluated for impairment
|
$
|
i 57
|
$
|
i –
|
$
|
i –
|
$
|
i 1,655
|
$
|
i –
|
$
|
i –
|
$ | i – |
$
|
i 1,712
|
||||||||||||||||
Loans collectively evaluated for impairment
|
i 20,893
|
i 462,539
|
i 63,929
|
i 9,008
|
i 38,530
|
i 29,558
|
i 11 |
i 624,468
|
||||||||||||||||||||||||
Subtotal | i 20,950 | i 462,539 | i 63,929 | i 10,663 | i 38,530 | i 29,558 | i 11 | i 626,180 | ||||||||||||||||||||||||
Loans acquired in the CFBanc merger
|
i 9,088 | i 41,357 | i 50,645 | i 5,117 | i 2,173 | i 38,884 | i – | i 147,264 | ||||||||||||||||||||||||
Total ending loans balance
|
$
|
i 30,038
|
$
|
i 503,896
|
$
|
i 114,574
|
$
|
i 15,780
|
$
|
i 40,703
|
$
|
i 68,442
|
$ | i 11 |
$
|
i 773,444
|
Unpaid Principal Balance
|
Recorded Investment
|
Allowance for Loan Losses Allocated
|
||||||||||
(In thousands)
|
||||||||||||
With no related allowance recorded:
|
||||||||||||
Church
|
$
|
i 1,572
|
$
|
i 1,572
|
$
|
–
|
||||||
With an allowance recorded:
|
||||||||||||
Single family
|
i 57
|
i 57
|
i 3
|
|||||||||
Church
|
i 83
|
i 83
|
i 4
|
|||||||||
Total
|
$
|
i 1,712
|
$
|
i 1,712
|
$
|
i 7
|
Three Months Ended June 30, 2022
|
Six Months Ended June 30, 2022
|
|||||||||||||||
Average Recorded
Investment
|
Cash Basis Interest
Income Recognized
|
Average
Recorded
Investment
|
Cash Basis Interest
Income Recognized
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Single family
|
$
|
i 63
|
$
|
i 1
|
$
|
i 63
|
$
|
i 1
|
||||||||
Multi-family
|
i 274
|
i 5
|
i 274
|
i 5
|
||||||||||||
Church
|
i 2,197
|
i 25
|
i 2,197
|
i 25
|
||||||||||||
Commercial -
other
|
i –
|
i –
|
i –
|
i –
|
||||||||||||
Total
|
$
|
i 2,534
|
$
|
i 31
|
$
|
i 2,534
|
$
|
i 31
|
30-59 Days
Past Due
|
60-89 Days
Past Due
|
Greater than 90
Days Past Due
|
Total
Past Due
|
Current
|
Total
|
|||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
Loans receivable held for investment:
|
||||||||||||||||||||||||
Single family
|
$
|
i –
|
$
|
i –
|
$
|
i –
|
$
|
i –
|
$
|
i 25,952
|
$
|
i 25,952
|
||||||||||||
Multi-family
|
i –
|
i –
|
i –
|
i –
|
i 530,464
|
i 530,464
|
||||||||||||||||||
Commercial real estate
|
i –
|
i –
|
i –
|
i –
|
i 128,029
|
i 128,029
|
||||||||||||||||||
Church
|
i –
|
i –
|
i –
|
i –
|
i 11,946
|
i 11,946
|
||||||||||||||||||
Construction
|
i –
|
i –
|
i –
|
i –
|
i 77,335
|
i 77,335
|
||||||||||||||||||
Commercial - other
|
i –
|
i –
|
i –
|
i –
|
i 53,056
|
i 53,056
|
||||||||||||||||||
SBA loans | i – | i – | i – | i – | i 5,724 | i 5,724 | ||||||||||||||||||
Consumer
|
i –
|
i –
|
i –
|
i –
|
i 30
|
i 30
|
||||||||||||||||||
Total
|
$
|
i –
|
$
|
i –
|
$
|
i –
|
$
|
i –
|
$
|
i 832,536
|
$
|
i 832,536
|
30-59 Days
Past Due
|
60-89 Days
Past Due
|
Greater than 90
Days Past Due
|
Total
Past Due
|
Current
|
Total
|
|||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
Loans receivable held for investment:
|
||||||||||||||||||||||||
Single family
|
$
|
i –
|
$
|
i –
|
$
|
i –
|
$
|
i –
|
$
|
i 30,038
|
$
|
i 30,038
|
||||||||||||
Multi-family
|
i –
|
i –
|
i –
|
i –
|
i 503,896
|
i 503,896
|
||||||||||||||||||
Commercial real estate
|
i –
|
i –
|
i –
|
i –
|
i 114,574
|
i 114,574
|
||||||||||||||||||
Church
|
i –
|
i –
|
i –
|
i –
|
i 15,780
|
i 15,780
|
||||||||||||||||||
Construction
|
i –
|
i –
|
i –
|
i –
|
i 40,703
|
i 40,703
|
||||||||||||||||||
Commercial - other
|
i –
|
i –
|
i –
|
i –
|
i 64,841
|
i 64,841
|
||||||||||||||||||
SBA loans | i – | i – | i – | i – | i 3,601 | i 3,601 | ||||||||||||||||||
Consumer
|
i –
|
i –
|
i –
|
i –
|
i 11
|
i 11
|
||||||||||||||||||
Total
|
$
|
i –
|
$
|
i –
|
$
|
i –
|
$
|
i –
|
$
|
i 773,444
|
$
|
i 773,444
|
(In thousands)
|
||||||||
Loans receivable held for investment:
|
||||||||
Church
|
$
|
i –
|
$
|
i 144
|
||||
Total non-accrual loans
|
$
|
i –
|
$
|
i 144
|
● |
Watch. Loans classified as watch exhibit
weaknesses that could threaten the current net worth and paying capacity of the obligors. Watch graded loans are generally performing and are not more than 59 days past due. A watch rating is used when a material
deficiency exists, but correction is anticipated within an acceptable time frame.
|
● |
Special Mention. Loans classified as
special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the
institution’s credit position at some future date.
|
● |
Substandard. Loans classified as
substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize
the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.
|
● |
Doubtful. Loans classified as doubtful
have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and
values, highly questionable and improbable.
|
● |
Loss. Loans classified as loss are considered uncollectible and of such little value that to continue to carry the loan as an active asset is no longer warranted.
|
Term Loans Amortized Cost Basis by Origination Year
|
||||||||||||||||||||||||||||||||
|
2023
|
2022
|
2021
|
2020
|
2019
|
Prior
|
Revolving Loans
|
Total
|
||||||||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||||||||||
Single family:
|
||||||||||||||||||||||||||||||||
Pass
|
$
|
i –
|
$
|
i 2,503
|
$
|
i 2,646
|
$
|
i 4,368
|
$
|
i 1,505
|
$
|
i 14,046
|
$
|
i –
|
$
|
i 25,068
|
||||||||||||||||
Watch
|
i –
|
i –
|
i –
|
i –
|
i –
|
i –
|
i –
|
i –
|
||||||||||||||||||||||||
Special Mention
|
i –
|
i –
|
i –
|
i –
|
i –
|
i 599
|
i –
|
i 599
|
||||||||||||||||||||||||
Substandard
|
i –
|
i –
|
i –
|
i –
|
i –
|
i 285
|
i –
|
i 285
|
||||||||||||||||||||||||
Total
|
$
|
i –
|
$
|
i 2,503
|
$
|
i 2,646
|
$
|
i 4,368
|
$
|
i 1,505
|
$
|
i 14,930
|
$
|
i –
|
$
|
i 25,952
|
||||||||||||||||
|
||||||||||||||||||||||||||||||||
Multi-family:
|
||||||||||||||||||||||||||||||||
Pass
|
$
|
i 38,445
|
$
|
i 186,771
|
$
|
i 153,606
|
$
|
i 27,679
|
$
|
i 45,935
|
$
|
i 56,486
|
$
|
i –
|
$
|
i 508,922
|
||||||||||||||||
Watch
|
i –
|
i 3,300
|
i –
|
i –
|
i –
|
i 636
|
i –
|
i 3,936
|
||||||||||||||||||||||||
Special Mention
|
i –
|
i –
|
i 910
|
i –
|
i –
|
i 1,821
|
i –
|
i 2,731
|
||||||||||||||||||||||||
Substandard
|
i –
|
i –
|
i –
|
i –
|
i 753
|
i 14,122
|
i –
|
i 14,875
|
||||||||||||||||||||||||
Total
|
$
|
i 38,445
|
$
|
i 190,071
|
$
|
i 154,516
|
$
|
i 27,679
|
$
|
i 46,688
|
$
|
i 73,065
|
$
|
i –
|
$
|
i 530,464
|
||||||||||||||||
|
||||||||||||||||||||||||||||||||
Commercial real estate:
|
||||||||||||||||||||||||||||||||
Pass
|
$
|
i 4,623
|
$
|
i 22,427
|
$
|
i 26,079
|
$
|
i 30,445
|
$
|
i 7,131
|
$
|
i 30,497
|
$
|
i –
|
$
|
i 121,202
|
||||||||||||||||
Watch
|
i –
|
i 446
|
i –
|
i –
|
i –
|
i 1,094
|
i –
|
i 1,540
|
||||||||||||||||||||||||
Special Mention
|
i –
|
i –
|
i –
|
i –
|
i –
|
i –
|
i –
|
i –
|
||||||||||||||||||||||||
Substandard
|
i –
|
i –
|
i –
|
$
|
i –
|
$
|
i –
|
i 5,287
|
|
i –
|
$
|
i 5,287
|
||||||||||||||||||||
Total
|
$
|
i 4,623
|
$
|
i 22,873
|
$
|
i 26,079
|
$
|
i 30,445
|
$
|
i 7,131
|
$
|
i 36,878
|
$
|
i –
|
$
|
i 128,029
|
||||||||||||||||
|
||||||||||||||||||||||||||||||||
Church:
|
||||||||||||||||||||||||||||||||
Pass
|
$
|
i –
|
$
|
i –
|
$
|
i 2,238
|
$
|
i 1,773
|
$
|
i –
|
$
|
i 6,301
|
$
|
i –
|
$
|
i 10,312
|
||||||||||||||||
Watch
|
i –
|
i –
|
i –
|
i –
|
i –
|
i –
|
i –
|
i –
|
||||||||||||||||||||||||
Special Mention
|
i –
|
i –
|
i –
|
i –
|
i 646
|
i –
|
i –
|
i 646
|
||||||||||||||||||||||||
Substandard
|
i –
|
i –
|
i –
|
i –
|
i –
|
i 988
|
i –
|
i 988
|
||||||||||||||||||||||||
Total
|
$
|
i –
|
$
|
i –
|
$
|
i 2,238
|
$
|
i 1,773
|
$
|
i 646
|
$
|
i 7,289
|
$
|
i –
|
$
|
i 11,946
|
||||||||||||||||
|
||||||||||||||||||||||||||||||||
Construction:
|
||||||||||||||||||||||||||||||||
Pass
|
$
|
i –
|
$
|
i –
|
$
|
i 1,212
|
$
|
i –
|
$
|
i –
|
$
|
i 2,135
|
$
|
i –
|
$
|
i 3,347
|
||||||||||||||||
Watch
|
i 34,550
|
i 31,919
|
i 7,519
|
i –
|
i –
|
i –
|
i –
|
i 73,988
|
||||||||||||||||||||||||
Special Mention
|
i –
|
i –
|
i –
|
i –
|
i –
|
i –
|
i –
|
i –
|
||||||||||||||||||||||||
Substandard
|
i –
|
i –
|
i –
|
i –
|
i –
|
i –
|
i –
|
i –
|
||||||||||||||||||||||||
Total
|
$
|
i 34,550
|
$
|
i 31,919
|
$
|
i 8,731
|
$
|
i –
|
$
|
i –
|
$
|
i 2,135
|
$
|
i –
|
$
|
i 77,335
|
||||||||||||||||
|
||||||||||||||||||||||||||||||||
Commercial – others:
|
||||||||||||||||||||||||||||||||
Pass
|
$
|
i 15,000
|
$
|
i 8,996
|
$
|
i –
|
$
|
i 5,667
|
$
|
i 4,300
|
$
|
i 12,521
|
$
|
i –
|
$
|
i 46,484
|
||||||||||||||||
Watch
|
i –
|
i 1,042
|
i 101
|
i 1,500
|
i 2,250
|
i 1,232
|
i –
|
i 6,125
|
||||||||||||||||||||||||
Special Mention
|
i –
|
i –
|
i 172
|
i –
|
i –
|
i –
|
i –
|
i 172
|
||||||||||||||||||||||||
Substandard
|
i –
|
i –
|
i –
|
i –
|
i –
|
i 275
|
i –
|
i 275
|
||||||||||||||||||||||||
Total
|
$
|
i 15,000
|
$
|
i 10,038
|
$
|
i 273
|
$
|
i 7,167
|
$
|
i 6,550
|
$
|
i 14,028
|
$
|
i –
|
$
|
i 53,056
|
||||||||||||||||
|
||||||||||||||||||||||||||||||||
SBA:
|
||||||||||||||||||||||||||||||||
Pass
|
$
|
i 2,465
|
$
|
i 148
|
$
|
i 2,457
|
$
|
i –
|
$
|
i 25
|
$
|
i 118
|
$
|
i –
|
$
|
i 5,213
|
||||||||||||||||
Watch
|
i –
|
i –
|
i –
|
i –
|
i –
|
i –
|
i –
|
i –
|
||||||||||||||||||||||||
Special Mention
|
i –
|
i –
|
i –
|
i 511
|
i –
|
i –
|
i –
|
i 511
|
||||||||||||||||||||||||
Substandard
|
i –
|
i –
|
i –
|
i –
|
i –
|
i –
|
i –
|
i –
|
||||||||||||||||||||||||
Total
|
$
|
i 2,465
|
$
|
i 148
|
$
|
i 2,457
|
$
|
i 511
|
$
|
i 25
|
$
|
i 118
|
$
|
i –
|
$
|
i 5,724
|
||||||||||||||||
|
||||||||||||||||||||||||||||||||
Consumer:
|
||||||||||||||||||||||||||||||||
Pass
|
$
|
i 30
|
$
|
i –
|
$
|
i –
|
$
|
i –
|
$
|
i –
|
$
|
i –
|
$
|
i –
|
$
|
i 30
|
||||||||||||||||
Watch
|
i –
|
i –
|
i –
|
i –
|
i –
|
i –
|
i –
|
i –
|
||||||||||||||||||||||||
Special Mention
|
i –
|
i –
|
i –
|
i –
|
i –
|
i –
|
i –
|
i –
|
||||||||||||||||||||||||
Substandard
|
i –
|
i –
|
i –
|
i –
|
i –
|
i –
|
i –
|
i –
|
||||||||||||||||||||||||
Total
|
$
|
i 30
|
$
|
i –
|
$
|
i –
|
$
|
i –
|
$
|
i –
|
$
|
i –
|
$
|
i –
|
$
|
i 30
|
||||||||||||||||
|
||||||||||||||||||||||||||||||||
Total loans:
|
||||||||||||||||||||||||||||||||
Pass
|
$
|
i 60,563
|
$
|
i 220,845
|
$
|
i 188,238
|
$
|
i 69,932
|
$
|
i 58,896
|
$
|
i 122,104
|
$
|
i –
|
$
|
i 720,578
|
||||||||||||||||
Watch
|
i 34,550
|
i 36,707
|
i 7,620
|
i 1,500
|
i 2,250
|
i 2,962
|
i –
|
i 85,589
|
||||||||||||||||||||||||
Special Mention
|
i –
|
i –
|
i 1,082
|
i 511
|
i 646
|
i 2,420
|
i –
|
i 4,659
|
||||||||||||||||||||||||
Substandard
|
i –
|
i –
|
i –
|
i –
|
i 753
|
i 20,957
|
i –
|
i 21,710
|
||||||||||||||||||||||||
Total loans
|
$
|
i 95,113
|
$
|
i 257,552
|
$
|
i 196,940
|
$
|
i 71,943
|
$
|
i 62,545
|
$
|
i 148,443
|
$
|
i –
|
$
|
i 832,536
|
|
||||||||||||||||||||||||||||
|
Pass
|
Watch
|
Special Mention
|
Substandard
|
Doubtful
|
Loss
|
Total | |||||||||||||||||||||
|
(In thousands)
|
|||||||||||||||||||||||||||
Single family
|
$
|
i 29,022
|
$
|
i 354
|
$
|
i 260
|
$
|
i 402
|
$
|
i –
|
$
|
i –
|
$ | i 30,038 | ||||||||||||||
Multi-family
|
i 479,182
|
i 9,855
|
i 14,859
|
i –
|
i –
|
i –
|
i 503,896 | |||||||||||||||||||||
Commercial real estate
|
i 104,066
|
i 4,524
|
i 1,471
|
i 4,513
|
i –
|
i –
|
i 114,574 | |||||||||||||||||||||
Church
|
i 14,505
|
i 728
|
i –
|
i 547
|
i –
|
i –
|
i 15,780 | |||||||||||||||||||||
Construction
|
i 2,173
|
i 38,530
|
i –
|
i –
|
i –
|
i –
|
i 40,703 | |||||||||||||||||||||
Commercial - other
|
i 53,396
|
i 11,157
|
i –
|
i 288
|
i –
|
i –
|
i 64,841 | |||||||||||||||||||||
SBA
|
i 3,032
|
i 569
|
i –
|
i –
|
i –
|
i –
|
i 3,601 | |||||||||||||||||||||
Consumer | i 11 | i – | i – | i – | i – | i – | i 11 | |||||||||||||||||||||
Total
|
$
|
i 685,387
|
$
|
i 65,717
|
$
|
i 16,590
|
$
|
i 5,750
|
$
|
i –
|
$
|
i –
|
$ | i 773,444 |
Goodwill |
Core Deposit
Intangible
|
|||||||
(In thousands) |
||||||||
Balance at the beginning of the period
|
$
|
i 25,858
|
$
|
i 2,501
|
||||
Additions
|
i – |
i –
|
||||||
Change in deferred tax estimate
|
i – |
i –
|
||||||
Amortization
|
i – |
( i 195
|
)
|
|||||
Balance at the end of the period
|
$ | i 25,858 |
$
|
i 2,306
|
Core deposit intangible acquired
|
$
|
i 3,329
|
||
Less: accumulated amortization | ( i 1,023 | ) | ||
|
$
|
i 2,306
|
2023
|
$
|
i 195
|
||
2024
|
i 336
|
|||
2025
|
i 315
|
|||
2026
|
i 304
|
|||
2027
|
i 291
|
|||
Thereafter
|
i 865
|
|||
$
|
i 2,306
|
Fair Value Measurement
|
||||||||||||||||
Quoted Prices
in Active Markets
for Identical
Assets
(Level 1)
|
Significant
Other
Observable
Inputs
(Level 2)
|
Significant
Unobservable
Inputs
(Level 3)
|
Total
|
|||||||||||||
(In thousands)
|
||||||||||||||||
At June 30, 2023:
|
||||||||||||||||
Securities available-for-sale:
|
||||||||||||||||
Federal agency mortgage-backed securities
|
$
|
i –
|
$ | i 69,928 |
$
|
i –
|
$ | i 69,928 | ||||||||
Federal agency CMOs
|
i –
|
i 24,379 |
i –
|
i 24,379 | ||||||||||||
Federal agency debt
|
i –
|
i 51,775 |
i –
|
i 51,775 | ||||||||||||
Municipal bonds
|
i –
|
i 4,269 |
i –
|
i 4,269 | ||||||||||||
U.S. Treasuries
|
i 160,813
|
i – |
i –
|
i 160,813 | ||||||||||||
SBA pools
|
i –
|
i 11,352 |
i –
|
i 11,352 | ||||||||||||
Securities available-for-sale:
|
||||||||||||||||
Federal agency mortgage-backed securities
|
$
|
i –
|
$
|
i 74,169
|
$
|
i –
|
$
|
i 74,169
|
||||||||
Federal agency CMOs
|
i –
|
i 26,100
|
i –
|
i 26,100
|
||||||||||||
Federal agency debt
|
i –
|
i 51,425
|
i –
|
i 51,425
|
||||||||||||
Municipal bonds
|
i –
|
i 4,197
|
i –
|
i 4,197
|
||||||||||||
U.S. Treasuries
|
i 160,589
|
i –
|
i –
|
i 160,589
|
||||||||||||
SBA pools
|
i –
|
i 12,269
|
i –
|
i 12,269
|
Carrying
Value
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||||||||
(In thousands)
|
||||||||||||||||||||
Financial Assets:
|
||||||||||||||||||||
Cash and cash equivalents | $ | i 10,742 | $ | i 10,742 | $ | i – | $ | i – | $ | i 10,742 | ||||||||||
Securities available-for-sale |
i 322,516 |
i 160,813 |
i 161,703 |
i – |
i 322,516 |
|||||||||||||||
Loans receivable held for investment
|
i 824,621
|
i –
|
i –
|
i 692,187
|
i 692,187
|
|||||||||||||||
Accrued interest receivables |
i 4,114 |
i 299 |
i 882 |
i 2,933 |
i 4,114 |
|||||||||||||||
Financial Liabilities:
|
||||||||||||||||||||
Deposits
|
$
|
i 646,063
|
$
|
i –
|
$
|
i 577,502
|
$
|
|
$
|
i 577,502
|
||||||||||
FHLB advances
|
i 210,268 | i – | i 208,373 | i – | i 208,373 | |||||||||||||||
Securities sold under agreements to repurchase |
i 71,381
|
i –
|
i 69,255
|
i –
|
i 69,255
|
|||||||||||||||
Note payable |
i 14,000 | i – | i – | i 14,000 | i 14,000 | |||||||||||||||
Accrued interest payable |
i 66 |
i – |
i 66 |
i – |
i 66 |
Fair Value Measurements at December 31, 2022
|
||||||||||||||||||||
Carrying
Value
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||||||||
(In thousands)
|
||||||||||||||||||||
Financial Assets:
|
||||||||||||||||||||
Cash and cash equivalents
|
$
|
i 16,105
|
$
|
i 16,105
|
$
|
i –
|
$
|
i –
|
$
|
i 16,105
|
||||||||||
Securities available-for-sale
|
i 328,749
|
i 160,589
|
i 168,160
|
i –
|
i 328,749
|
|||||||||||||||
Loans receivable held for investment
|
i 768,046
|
i –
|
i –
|
i 641,088
|
i 641,088
|
|||||||||||||||
Accrued interest receivables
|
i 3,973
|
i 442
|
i 793
|
i 2,738
|
i 3,973
|
|||||||||||||||
Bank owned life insurance
|
i 3,233
|
i 3,233
|
i –
|
i –
|
i 3,233
|
|||||||||||||||
Financial Liabilities:
|
||||||||||||||||||||
Deposits
|
$
|
i 686,916
|
$
|
i –
|
$
|
i 673,615
|
$
|
i –
|
$
|
i 673,615
|
||||||||||
FHLB advances
|
i 128,344
|
i –
|
i 126,328
|
i –
|
i 126,328
|
|||||||||||||||
Securities sold under agreements to repurchase | i 63,471 | i – | i 60,017 | i – | i 60,017 | |||||||||||||||
Note payable
|
i 14,000
|
i –
|
i –
|
i 14,000
|
i 14,000
|
|||||||||||||||
Accrued interest payable |
i 453 | i – | i 453 | i – | i 453 |
Outstanding
|
Exercisable
|
||||||||||||||||||||||
Number
Outstanding
|
Weighted Average
Remaining
Contractual Life
|
Weighted
Average
Exercise Price
|
Aggregate
Intrinsic
Value
|
Number
Outstanding
|
Weighted
Average
Exercise Price
|
Aggregate
Intrinsic
Value
|
|||||||||||||||||
i 250,000
|
i 2.63 years
|
$
|
i 1.62
|
$
|
i –
|
i 250,000
|
$
|
i 1.62
|
$
|
i –
|
(Dollars in thousands)
|
||||||||
Allocated to participants
|
i 1,057,504
|
i 1,057,504
|
||||||
Committed to be released
|
i 29,676
|
i 9,892
|
||||||
Suspense shares
|
i 3,297,790
|
i 948,488
|
||||||
Total ESOP shares
|
i 4,384,970
|
i 2,015,884
|
||||||
Fair value of unearned shares
|
$
|
i 3,232
|
$
|
i 1,015
|
Actual
|
Minimum Required to
Be Well Capitalized
Under Prompt Corrective
Action Provisions
|
|||||||||||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
June 30,
2023:
|
||||||||||||||||
Community Bank Leverage Ratio
|
$
|
i 182,198
|
i 15.35
|
% |
$
|
i 106,847
|
i 9.00
|
% | ||||||||
December 31,
2022:
|
||||||||||||||||
Community Bank Leverage Ratio
|
$
|
i 181,304
|
i 15.75
|
%
|
$
|
i 103,591
|
i 9.00
|
% |
ITEM 2. |
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
For the Three Months Ended
|
||||||||||||||||||||||||
(Dollars in Thousands)
|
Average Balance
|
Interest
|
Average
Yield/Cost
|
Average Balance
|
Interest
|
Average
Yield/Cost
|
||||||||||||||||||
Assets
|
||||||||||||||||||||||||
Interest-earning assets:
|
||||||||||||||||||||||||
Interest-earning deposits
|
$
|
16,615
|
$
|
167
|
4.02
|
%
|
$
|
210,978
|
$
|
788
|
1.49
|
%
|
||||||||||||
Securities
|
326,051
|
2,183
|
2.68
|
%
|
199,472
|
796
|
1.60
|
%
|
||||||||||||||||
Loans receivable (1)
|
797,550
|
9,098
|
4.56
|
%
|
657,026
|
6,879
|
4.19
|
%
|
||||||||||||||||
FRB and FHLB stock
|
11,602
|
192
|
6.62
|
%
|
2,668
|
38
|
5.70
|
%
|
||||||||||||||||
Total interest-earning assets
|
1,151,818
|
$
|
11,640
|
4.04
|
%
|
1,070,144
|
$
|
8,501
|
3.18
|
%
|
||||||||||||||
Non-interest-earning assets
|
67,173
|
107,531
|
||||||||||||||||||||||
Total assets
|
$
|
1,218,991
|
$
|
1,177,675
|
||||||||||||||||||||
Liabilities and Stockholders’ Equity
|
||||||||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||
Money market deposits
|
$
|
115,578
|
$
|
932
|
3.23
|
%
|
$
|
197,751
|
$
|
194
|
0.39
|
%
|
||||||||||||
Savings deposits
|
60,826
|
16
|
0.11
|
%
|
62,458
|
13
|
0.08
|
%
|
||||||||||||||||
Interest checking and other demand deposits
|
233,872
|
87
|
0.15
|
%
|
292,248
|
42
|
0.06
|
%
|
||||||||||||||||
Certificate accounts
|
153,972
|
514
|
1.34
|
%
|
199,043
|
100
|
0.20
|
%
|
||||||||||||||||
Total deposits
|
564,248
|
1,549
|
1.10
|
%
|
751,500
|
349
|
0.19
|
%
|
||||||||||||||||
FHLB advances
|
186,664
|
2,141
|
4.59
|
%
|
39,628
|
85
|
0.86
|
%
|
||||||||||||||||
Other borrowings
|
75,821
|
682
|
3.60
|
%
|
68,352
|
29
|
0.17
|
%
|
||||||||||||||||
Total borrowings
|
262,485
|
2,823
|
4.30
|
%
|
107,980
|
114
|
0.42
|
%
|
||||||||||||||||
Total interest-bearing liabilities
|
826,733
|
$
|
4,372
|
2.12
|
%
|
859,480
|
$
|
463
|
0.22
|
%
|
||||||||||||||
Non-interest-bearing liabilities
|
113,803
|
107,771
|
||||||||||||||||||||||
Stockholders’ equity
|
278,455
|
210,424
|
||||||||||||||||||||||
Total liabilities and stockholders’ equity
|
$
|
1,218,991
|
$
|
1,177,675
|
||||||||||||||||||||
Net interest rate spread (2)
|
$
|
7,268
|
1.93
|
%
|
$
|
8,038
|
2.96
|
%
|
||||||||||||||||
Net interest rate margin (3)
|
2.52
|
%
|
3.00
|
%
|
||||||||||||||||||||
Ratio of interest-earning assets to interest-bearing liabilities
|
139.32
|
%
|
124.51
|
%
|
(1)
|
Amount is net of deferred loan fees, loan discounts and loans in process, and includes deferred origination costs and loan premiums.
|
(2)
|
Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.
|
(3)
|
Net interest rate margin represents net interest income as a percentage of average interest-earning assets.
|
For the Six Months Ended
|
||||||||||||||||||||||||
(Dollars in Thousands)
|
Average Balance
|
Interest
|
Average
Yield/Cost
|
Average Balance
|
Interest
|
Average
Yield/Cost
|
||||||||||||||||||
Assets
|
||||||||||||||||||||||||
Interest-earning assets:
|
||||||||||||||||||||||||
Interest-earning deposits
|
$
|
15,187
|
$
|
286
|
3.77
|
%
|
$
|
215,622
|
$
|
872
|
0.81
|
%
|
||||||||||||
Securities
|
327,178
|
4,363
|
2.67
|
%
|
180,220
|
1,347
|
1.49
|
%
|
||||||||||||||||
Loans receivable (1)
|
782,101
|
17,633
|
4.51
|
%
|
655,260
|
14,083
|
4.30
|
%
|
||||||||||||||||
FRB and FHLB stock
|
11,175
|
401
|
7.18
|
%
|
2,668
|
78
|
5.85
|
%
|
||||||||||||||||
Total interest-earning assets
|
1,135,641
|
$
|
22,683
|
3.99
|
%
|
1,053,770
|
$
|
16,380
|
3.11
|
%
|
||||||||||||||
Non-interest-earning assets
|
67,953
|
95,848
|
||||||||||||||||||||||
Total assets
|
$
|
1,203,594
|
$
|
1,149,618
|
||||||||||||||||||||
Liabilities and Stockholders’ Equity
|
||||||||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||
Money market deposits
|
$
|
125,603
|
$
|
1,703
|
2.71
|
%
|
$
|
202,414
|
$
|
383
|
0.38
|
%
|
||||||||||||
Savings deposits
|
61,201
|
29
|
0.09
|
%
|
64,641
|
21
|
0.06
|
%
|
||||||||||||||||
Interest checking and other demand deposits
|
237,668
|
164
|
0.14
|
%
|
261,354
|
81
|
0.06
|
%
|
||||||||||||||||
Certificate accounts
|
149,550
|
956
|
1.28
|
%
|
200,244
|
214
|
0.21
|
%
|
||||||||||||||||
Total deposits
|
574,022
|
2,852
|
0.99
|
%
|
728,653
|
699
|
0.19
|
%
|
||||||||||||||||
FHLB advances
|
165,521
|
3,464
|
4.19
|
%
|
58,738
|
427
|
1.45
|
%
|
||||||||||||||||
Other borrowings
|
72,973
|
825
|
2.26
|
%
|
68,185
|
44
|
0.13
|
%
|
||||||||||||||||
Total borrowings
|
238,494
|
4,289
|
3.60
|
%
|
126,923
|
471
|
0.74
|
%
|
||||||||||||||||
Total interest-bearing liabilities
|
812,516
|
$
|
7,141
|
1.76
|
%
|
855,576
|
$
|
1,170
|
0.27
|
%
|
||||||||||||||
Non-interest-bearing liabilities
|
112,281
|
106,760
|
||||||||||||||||||||||
Stockholders’ equity
|
278,797
|
187,282
|
||||||||||||||||||||||
Total liabilities and stockholders’ equity
|
$
|
1,203,594
|
$
|
1,149,618
|
||||||||||||||||||||
Net interest rate spread (2)
|
$
|
15,542
|
2.24
|
%
|
$
|
15,210
|
2.84
|
%
|
||||||||||||||||
Net interest rate margin (3)
|
2.74
|
%
|
2.89
|
%
|
||||||||||||||||||||
Ratio of interest-earning assets to interest-bearing liabilities
|
139.77
|
%
|
123.16
|
%
|
(1) |
Amount is net of deferred loan fees, loan discounts and loans in process, and includes deferred origination costs and loan premiums.
|
(2) |
Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.
|
(3) |
Net interest rate margin represents net interest income as a percentage of average interest-earning assets.
|
One Year or Less
|
More Than One Year
to Five Years
|
More Than Five
Years to Ten Years
|
More Than Ten
Years
|
Total
|
||||||||||||||||||||||||||||||||||||
Carrying
Amount
|
Weighted
Average
Yield
|
Carrying
Amount
|
Weighted
Average
Yield
|
Carrying
Amount
|
Weighted
Average
Yield
|
Carrying
Amount
|
Weighted
Average
Yield
|
Carrying
Amount
|
Weighted
Average
Yield
|
|||||||||||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||||||||||||||||||
Available‑for‑sale:
|
||||||||||||||||||||||||||||||||||||||||
Federal agency mortgage‑backed securities
|
$
|
4,871
|
3.70
|
%
|
$
|
1,339
|
1.54
|
%
|
$
|
9,957
|
1.39
|
%
|
$
|
53,761
|
2.57
|
%
|
$
|
69,928
|
2.46
|
%
|
||||||||||||||||||||
Federal agency CMO
|
–
|
–
|
553
|
0.85
|
%
|
8,018
|
4.39
|
%
|
15,808
|
3.53
|
%
|
24,379
|
3.75
|
%
|
||||||||||||||||||||||||||
Federal agency debt
|
9,843
|
2.88
|
%
|
32,232
|
1.93
|
%
|
9,700
|
2.99
|
%
|
–
|
–
|
51,775
|
2.31
|
%
|
||||||||||||||||||||||||||
Municipal bonds
|
–
|
–
|
2,209
|
1.62
|
%
|
562
|
1.78
|
%
|
1,498
|
1.78
|
%
|
4,269
|
1.69
|
%
|
||||||||||||||||||||||||||
U.S. Treasuries
|
39,006
|
2.73
|
%
|
121,807
|
2.85
|
%
|
–
|
–
|
–
|
–
|
160,813
|
2.82
|
%
|
|||||||||||||||||||||||||||
SBA pools
|
–
|
–
|
128
|
6.54
|
%
|
2,153
|
2.76
|
%
|
9,071
|
2.80
|
%
|
11,352
|
2.84
|
%
|
||||||||||||||||||||||||||
Total
|
$
|
53,720
|
2.84
|
%
|
$
|
158,268
|
2.63
|
%
|
$
|
30,390
|
2.80
|
%
|
$
|
80,138
|
2.77
|
%
|
$
|
322,516
|
2.72
|
%
|
One Year or
Less
|
More Than
One Year to
Five Years
|
More Than
Five Years to
15 Years
|
More Than
15 Years
|
Total
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
Loans receivable held for investment:
|
||||||||||||||||||||
Single family
|
$
|
2,286
|
$
|
10,250
|
$
|
2,548
|
$
|
10,868
|
$
|
25,952
|
||||||||||
Multi-family
|
10,180
|
19,097
|
8,362
|
491,530
|
529,169
|
|||||||||||||||
Commercial real estate
|
10,770
|
58,752
|
44,987
|
13,520
|
128,029
|
|||||||||||||||
Church
|
3,368
|
6,880
|
3,165
|
–
|
13,413
|
|||||||||||||||
Construction
|
5,065
|
48,546
|
23,724
|
–
|
77,335
|
|||||||||||||||
Commercial - other
|
14,482
|
19,946
|
4,159
|
13,002
|
51,589
|
|||||||||||||||
SBA loans
|
–
|
3,112
|
148
|
2,464
|
5,724
|
|||||||||||||||
Consumer
|
–
|
–
|
–
|
30
|
||||||||||||||||
$
|
46,181
|
$
|
166,583
|
$
|
87,093
|
$
|
531,384
|
$
|
831,241
|
|||||||||||
Loans maturities after one year with:
|
||||||||||||||||||||
Fixed rates
|
||||||||||||||||||||
Single family
|
$
|
9,723
|
$
|
1,803
|
$
|
6,214
|
$
|
17,740
|
||||||||||||
Multi-family
|
15,039
|
3,419
|
–
|
18,458
|
||||||||||||||||
Commercial real estate
|
52,477
|
25,185
|
10,724
|
88,386
|
||||||||||||||||
Church
|
4,222
|
–
|
–
|
4,222
|
||||||||||||||||
Construction
|
28,153
|
21,523
|
–
|
49,676
|
||||||||||||||||
Commercial - other
|
4,535
|
3,070
|
10,764
|
18,369
|
||||||||||||||||
SBA loans
|
2,457
|
–
|
2,464
|
4,921
|
||||||||||||||||
Consumer
|
–
|
–
|
–
|
–
|
||||||||||||||||
$
|
116,606
|
$
|
55,000
|
$
|
30,166
|
$
|
201,772
|
|||||||||||||
Variable rates
|
||||||||||||||||||||
Single family
|
$
|
527
|
$
|
745
|
$
|
4,654
|
$
|
5,926
|
||||||||||||
Multi-family
|
4,058
|
4,943
|
491,530
|
500,531
|
||||||||||||||||
Commercial real estate
|
6,275
|
19,802
|
2,796
|
28,873
|
||||||||||||||||
Church
|
2,658
|
3,165
|
–
|
5,823
|
||||||||||||||||
Construction
|
20,393
|
2,201
|
–
|
22,594
|
||||||||||||||||
Commercial - other
|
15,411
|
1,089
|
2,238
|
18,738
|
||||||||||||||||
SBA loans
|
655
|
148
|
–
|
803
|
||||||||||||||||
Consumer
|
–
|
–
|
–
|
–
|
||||||||||||||||
$
|
49,977
|
$
|
32,093
|
$
|
501,218
|
$
|
583,288
|
|||||||||||||
Total
|
$
|
166,583
|
$
|
87,093
|
$
|
531,384
|
$
|
785,060
|
Amount
|
Percent of
Loans in
Each
Category to
Total
Loans
|
Amount
|
Percent of
Loans in
Each
Category to
Total
Loans
|
Amount
|
Percent of
Loans in
Each
Category to
Total
Loans
|
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
Single family
|
$
|
247
|
3.12
|
%
|
$
|
109
|
3.89
|
%
|
$
|
120
|
5.02
|
%
|
||||||||||||
Multi‑family
|
4,255
|
63.67
|
%
|
3,273
|
65.08
|
%
|
2,278
|
62.45
|
%
|
|||||||||||||||
Commercial real estate
|
1,012
|
15.40
|
%
|
449
|
14.85
|
%
|
153
|
13.13
|
%
|
|||||||||||||||
Church
|
83
|
1.44
|
%
|
65
|
2.04
|
%
|
48
|
3.18
|
%
|
|||||||||||||||
Construction
|
788
|
9.30
|
%
|
313
|
5.27
|
%
|
221
|
5.57
|
%
|
|||||||||||||||
Commercial
|
585
|
7.07
|
%
|
175
|
8.87
|
%
|
138
|
10.64
|
%
|
|||||||||||||||
Consumer
|
–
|
–
|
4
|
–
|
4
|
0.01
|
%
|
|||||||||||||||||
Total allowance for loan losses
|
$
|
6,970
|
100.00
|
%
|
$
|
4,388
|
100.00
|
%
|
$
|
2,962
|
100.00
|
%
|
Three
Months or
Less
|
Three to Six Months
|
Six Months
to One Year
|
Over One
Year
|
Total
|
||||||||||||||||
(In thousands)
|
||||||||||||||||||||
Time deposits of $250,000 or less
|
$
|
44,630
|
$
|
35,440
|
$
|
29,822
|
$
|
16,023
|
$
|
125,915
|
||||||||||
Time deposits of more than $250,000
|
3,603
|
7,927
|
7,137
|
6,062
|
24,729
|
|||||||||||||||
Total
|
$
|
48,233
|
$
|
43,367
|
$
|
36,959
|
$
|
22,085
|
$
|
150,644
|
||||||||||
Not covered by deposit insurance
|
$
|
1,603
|
$
|
5,176
|
$
|
4,887
|
$
|
5,063
|
$
|
16,729
|
||||||||||
Time deposits of $250,000 or less
|
$
|
30,244
|
$
|
23,155
|
$
|
49,461
|
$
|
4,281
|
$
|
107,141
|
||||||||||
Time deposits of more than $250,000
|
27,912
|
–
|
–
|
–
|
27,912
|
|||||||||||||||
Total
|
$
|
58,156
|
$
|
23,155
|
$
|
49,461
|
$
|
4,281
|
$
|
135,053
|
||||||||||
Not covered by deposit insurance
|
$
|
17,913
|
$
|
–
|
$
|
–
|
$
|
–
|
$
|
17,913
|
Common Equity
Capital
|
Shares Outstanding
|
Per Share
Amount
|
||||||||||
(Dollars in thousands)
|
||||||||||||
Common book value
|
$
|
127,289
|
74,237,227
|
$
|
1.71
|
|||||||
Less:
|
||||||||||||
Goodwill
|
25,858
|
|||||||||||
Net unamortized core deposit intangible
|
2,306
|
|||||||||||
Tangible book value
|
$
|
99,125
|
74,237,227
|
$
|
1.34
|
|||||||
Common book value
|
$
|
129,482
|
73,432,517
|
$
|
1.76
|
|||||||
Less:
|
||||||||||||
Goodwill
|
25,858
|
|||||||||||
Net unamortized core deposit intangible
|
2,501
|
|||||||||||
Tangible book value
|
$
|
101,123
|
|
73,432,517
|
$
|
1.38
|
ITEM 3. |
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
ITEM 4. |
CONTROLS AND PROCEDURES
|
Item 1. |
LEGAL PROCEEDINGS
|
Item 1A. |
RISK FACTORS
|
Item 2. |
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
|
Item 3. |
DEFAULTS UPON SENIOR SECURITIES
|
Item 4. |
MINE SAFETY DISCLOSURES
|
Item 5. |
OTHER INFORMATION
|
Item 6. |
EXHIBITS
|
Exhibit
Number*
|
|
Amended and Restated Certificate of Incorporation of Registrant effective as of April 1, 2021 (Exhibit 3.1 to Form 8-K filed by Registrant on April 5, 2021)
|
|
Bylaws of Registrant (Exhibit 3.2 to Form 8-K filed by Registrant on August 24, 2020)
|
|
Certificate of Designations of Senior Non-Cumulative Perpetual Preferred Stock, Series C (Exhibit 3.1 to Form 8-K filed by Registrant on June 8, 2022)
|
|
Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
|
Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
|
101.INS
|
XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
|
101.SCH
|
Inline XBRL Taxonomy Extension Schema Document
|
101.CAL
|
Inline XBRL Taxonomy Extension Calculation Linkbase Document
|
101.DEF
|
Inline XBRL Taxonomy Extension Definitions Linkbase Document
|
101.LAB
|
Inline XBRL Taxonomy Extension Label Linkbase Document
|
101.PRE
|
Inline XBRL Taxonomy Extension Presentation Linkbase Document
|
104
|
Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)
|
* |
Exhibits followed by a parenthetical reference are incorporated by reference herein from the document filed by the Registrant with the SEC described therein. Except as otherwise indicated, the SEC File No. for
each incorporated document is 000-27464.
|
** |
Management contract or compensatory plan or arrangement.
|
Date: August 14, 2023
|
By:
|
/s/ Brian Argrett
|
Chief Executive Officer
|
||
Date: August 14, 2023
|
By:
|
/s/ Brenda J. Battey
|
Chief Financial Officer
|
This ‘10-Q’ Filing | Date | Other Filings | ||
---|---|---|---|---|
12/31/23 | ||||
Filed on: | 8/14/23 | |||
8/7/23 | ||||
For Period end: | 6/30/23 | |||
6/21/23 | 4, DEF 14A, PRE 14A | |||
4/1/23 | ||||
1/1/23 | ||||
12/31/22 | 10-K, ARS, NT 10-K | |||
6/30/22 | 10-Q | |||
6/8/22 | 8-K | |||
6/7/22 | 8-K | |||
4/1/22 | NT 10-K | |||
1/1/22 | ||||
4/6/21 | ||||
4/5/21 | 8-K | |||
4/1/21 | 3, 4, 8-K, 8-K/A | |||
8/24/20 | 8-K | |||
List all Filings |
As Of Filer Filing For·On·As Docs:Size Issuer Filing Agent 4/05/21 Broadway Financial Corp./DE 8-K:2,5,9 4/01/21 2:149K Broadridge Fin’l So… Inc 8/24/20 Broadway Financial Corp./DE 8-K:5,9 8/24/20 2:11M Toppan Merrill/FA 9/11/19 Broadway Financial Corp./DE 8-K:1,3,5,8 9/10/19 4:513K Toppan Merrill/FA |