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As Of Filer Filing For·On·As Docs:Size Issuer Filing Agent 4/11/23 Broadway Financial Corp./DE 10-K 12/31/22 121:18M Broadridge Fin’l So… Inc |
Document/Exhibit Description Pages Size 1: 10-K Annual Report HTML 4.11M 2: EX-21.1 Subsidiaries List HTML 33K 3: EX-23.1 Consent of Expert or Counsel HTML 32K 4: EX-31.1 Certification -- §302 - SOA'02 HTML 38K 5: EX-31.2 Certification -- §302 - SOA'02 HTML 38K 6: EX-32.1 Certification -- §906 - SOA'02 HTML 33K 7: EX-32.2 Certification -- §906 - SOA'02 HTML 33K 13: R1 Document and Entity Information HTML 107K 14: R2 Consolidated Statements of Financial Condition HTML 144K 15: R3 Consolidated Statements of Financial Condition HTML 73K (Parenthetical) 16: R4 Consolidated Statements of Operations and HTML 157K Comprehensive Loss 17: R5 Consolidated Statements of Changes in HTML 103K Stockholders' Equity 18: R6 Consolidated Statements of Cash Flows HTML 193K 19: R7 Summary of Significant Accounting Policies HTML 97K 20: R8 Business Combination HTML 107K 21: R9 Capital HTML 66K 22: R10 Securities HTML 143K 23: R11 Loans Receivable Held for Investment HTML 471K 24: R12 Office Properties and Equipment, net HTML 46K 25: R13 Leases HTML 53K 26: R14 Goodwill and Core Deposit Intangible HTML 57K 27: R15 Fair Value HTML 128K 28: R16 Deposits HTML 53K 29: R17 Federal Home Loan Bank Advances HTML 49K 30: R18 Junior Subordinated Debentures HTML 36K 31: R19 Securities Sold Under Agreements to Repurchase HTML 38K 32: R20 Notes Payable HTML 40K 33: R21 Employee Benefit Plans HTML 50K 34: R22 Income Taxes HTML 96K 35: R23 Stock-Based Compensation HTML 75K 36: R24 Regulatory Matters HTML 53K 37: R25 Loan Commitments and Other Related Activities HTML 41K 38: R26 Parent Company Only Condensed Financial HTML 84K Information 39: R27 Earnings (Loss) Per Common Share HTML 51K 40: R28 Subsequent Events HTML 35K 41: R29 Summary of Significant Accounting Policies HTML 168K (Policies) 42: R30 Business Combination (Tables) HTML 106K 43: R31 Capital (Tables) HTML 57K 44: R32 Securities (Tables) HTML 145K 45: R33 Loans Receivable Held for Investment (Tables) HTML 478K 46: R34 Office Properties and Equipment, net (Tables) HTML 45K 47: R35 Leases (Tables) HTML 51K 48: R36 Goodwill and Core Deposit Intangible (Tables) HTML 60K 49: R37 Fair Value (Tables) HTML 125K 50: R38 Deposits (Tables) HTML 53K 51: R39 Federal Home Loan Bank Advances (Tables) HTML 49K 52: R40 Employee Benefit Plans (Tables) HTML 44K 53: R41 Income Taxes (Tables) HTML 94K 54: R42 Stock-Based Compensation (Tables) HTML 73K 55: R43 Regulatory Matters (Tables) HTML 47K 56: R44 Loan Commitments and Other Related Activities HTML 39K (Tables) 57: R45 Parent Company Only Condensed Financial HTML 86K Information (Tables) 58: R46 Earnings (Loss) Per Common Share (Tables) HTML 48K 59: R47 Summary of Significant Accounting Policies, Nature HTML 34K of Operations and Principles of Consolidation (Details) 60: R48 Summary of Significant Accounting Policies, Loans HTML 35K Receivable Held for Investment (Details) 61: R49 Summary of Significant Accounting Policies, Loans HTML 38K Purchased and Allowance for Loan Losses (Details) 62: R50 Summary of Significant Accounting Policies, HTML 36K Business Combinations (Details) 63: R51 Summary of Significant Accounting Policies, Office HTML 42K Properties and Equipment (Details) 64: R52 Summary of Significant Accounting Policies, HTML 37K Investment in Affordable Housing Limited Partnership (Details) 65: R53 Summary of Significant Accounting Policies, HTML 36K Earnings (Loss) Per Common Share (Details) 66: R54 Summary of Significant Accounting Policies, HTML 35K Operating Segments (Details) 67: R55 Business Combination, Summary (Details) HTML 67K 68: R56 Business Combination, Assets Acquired and HTML 115K Liabilities Assumed (Details) 69: R57 Business Combination, Contractual Amounts Due, HTML 47K Expected Cash Flows to Be Collected, Interest Component, and Fair Value of Loans Acquired (Details) 70: R58 Business Combination, Fair Value of PCI Loans HTML 48K (Details) 71: R59 Capital (Details) HTML 96K 72: R60 Securities, Available-for-Sale Investment HTML 67K Securities Portfolios (Details) 73: R61 Securities, Contractual Maturities (Details) HTML 91K 74: R62 Securities, Securities with Unrealized Losses, HTML 54K Securities Pledged as Collateral and Holdings of Securities by One Issuer in Amount Greater Than 10% of Stockholders' Equity (Details) 75: R63 Securities, Unrealized Loss Position (Details) HTML 75K 76: R64 Loans Receivable Held for Investment, Summary HTML 89K (Details) 77: R65 Loans Receivable Held for Investment, Activity in HTML 72K Allowance for Loan Losses by Loan Type (Details) 78: R66 Loans Receivable Held for Investment, Purchased HTML 60K Credit Impaired (PCI) Loans (Details) 79: R67 Loans Receivable Held for Investment, Allowance HTML 96K for Loan Losses and Recorded Investment in Loans by Type of Loans and Based on Impairment Method (Details) 80: R68 Loans Receivable Held for Investment, Loans HTML 61K Individually Evaluated for Impairment by Loan Type (Details) 81: R69 Loans Receivable Held for Investment, Average of HTML 49K Loans Individually Evaluated for Impairment by Loan Type and Related Interest Income (Details) 82: R70 Loans Receivable Held for Investment, Aging of HTML 113K Recorded Investment in Past Due Loans by Loan Type (Details) 83: R71 Loans Receivable Held for Investment, Recorded HTML 53K Investment in Non-accrual Loans by Loan Type (Details) 84: R72 Loans Receivable Held for Investment, Troubled HTML 48K Debt Restructurings (Details) 85: R73 Loans Receivable Held for Investment, Credit HTML 121K Quality Indicators (Details) 86: R74 Office Properties and Equipment, net (Details) HTML 52K 87: R75 Leases, Operating Leases (Details) HTML 47K 88: R76 Leases, Additional Information for Operating HTML 42K Leases (Details) 89: R77 Leases, Future Minimum Payments for Operating HTML 50K Leases (Details) 90: R78 Goodwill and Core Deposit Intangible, Goodwill and HTML 63K Core Deposit Intangibles (Details) 91: R79 Goodwill and Core Deposit Intangible, Components HTML 42K of Carrying Amount of Core Deposit Intangible (Details) 92: R80 Goodwill and Core Deposit Intangible, Estimated HTML 51K Amortization Expense (Details) 93: R81 Fair Value, Assets Measured on Recurring Basis HTML 81K (Details) 94: R82 Fair Value, Fair Values of Financial Instruments HTML 80K (Details) 95: R83 Deposits, Summary of Deposits (Details) HTML 55K 96: R84 Deposits, Certificate of Deposit Maturities HTML 61K (Details) 97: R85 Federal Home Loan Bank Advances (Details) HTML 72K 98: R86 Junior Subordinated Debentures (Details) HTML 52K 99: R87 Securities Sold Under Agreements to Repurchase HTML 52K (Details) 100: R88 Notes Payable (Details) HTML 46K 101: R89 Employee Benefit Plans (Details) HTML 82K 102: R90 Income Taxes, Income Tax Expense (Benefit) HTML 52K (Details) 103: R91 Income Taxes, Effective Income Tax Rate HTML 59K Reconciliation (Details) 104: R92 Income Taxes, Deferred Tax Assets and Liabilities HTML 91K (Details) 105: R93 Income Taxes, NOL and Tax Credit Carryforwards and HTML 49K Income Tax Uncertainties (Details) 106: R94 Stock-Based Compensation, Summary of Plans HTML 46K (Details) 107: R95 Stock-Based Compensation, Stock Option Activity HTML 68K (Details) 108: R96 Stock-Based Compensation, Options Outstanding and HTML 56K Exercisable (Details) 109: R97 Stock-Based Compensation, Stock Awards to HTML 64K Directors and Restricted Stock Awards to Employees (Details) 110: R98 Stock-Based Compensation, Summary of Restricted HTML 64K Stock Unit Activity (Details) 111: R99 Regulatory Matters (Details) HTML 42K 112: R100 Loan Commitments and Other Related Activities HTML 46K (Details) 113: R101 Parent Company Only Condensed Financial HTML 65K Information, Condensed Balance Sheet (Details) 114: R102 Parent Company Only Condensed Financial HTML 67K Information, Condensed Statements of Income (Details) 115: R103 Parent Company Only Condensed Financial HTML 96K Information, Condensed Statements of Cash Flows (Details) 116: R104 Earnings (Loss) Per Common Share (Details) HTML 82K 119: XML IDEA XML File -- Filing Summary XML 230K 117: XML XBRL Instance -- brhc10050646_10k_htm XML 4.69M 118: EXCEL IDEA Workbook of Financial Reports XLSX 245K 9: EX-101.CAL XBRL Calculations -- byfc-20221231_cal XML 426K 10: EX-101.DEF XBRL Definitions -- byfc-20221231_def XML 1.59M 11: EX-101.LAB XBRL Labels -- byfc-20221231_lab XML 3.36M 12: EX-101.PRE XBRL Presentations -- byfc-20221231_pre XML 2.08M 8: EX-101.SCH XBRL Schema -- byfc-20221231 XSD 299K 120: JSON XBRL Instance as JSON Data -- MetaLinks 733± 1.16M 121: ZIP XBRL Zipped Folder -- 0001140361-23-017732-xbrl Zip 701K
i ☒ |
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
i ☐ |
TRANSITION REPORT PURSUANT TO 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
|
Nasdaq Capital Market
|
Large accelerated filer ☐
|
Accelerated filer ☐
|
|
i Non-accelerated filer ☒
|
Smaller reporting company i ☒
|
|
Emerging growth company i ☐
|
PART I
|
|||
Item 1.
|
1
|
||
Item 1A.
|
21
|
||
Item 1B.
|
26 | ||
Item 2.
|
26 | ||
Item 3.
|
27 | ||
Item 4.
|
27 | ||
PART II
|
|||
Item 5.
|
27 | ||
Item 6.
|
Reserved
|
||
Item 7.
|
28 | ||
Item 7A. | 39 | ||
Item 8.
|
39 | ||
Item 9.
|
39 | ||
Item 9A.
|
39 | ||
Item 9B.
|
40 | ||
Item 9C.
|
40 | ||
PART III
|
|||
Item 10.
|
41 |
||
Item 11.
|
41 | ||
Item 12.
|
41 | ||
Item 13.
|
41 | ||
Item 14.
|
41 | ||
PART IV
|
|||
Item 15.
|
42 | ||
Item 16.
|
43 | ||
44 |
ITEM 1. |
BUSINESS
|
|
||||||||||||||||||||||||||||||||||||||||
|
2021
|
2020
|
2019
|
2018
|
||||||||||||||||||||||||||||||||||||
|
Amount
|
Percent
of total
|
Amount
|
Percent
of total
|
Amount
|
Percent
of total
|
Amount
|
Percent
of total
|
Amount
|
Percent
of total
|
||||||||||||||||||||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||||||||||||||||||||||
Single family
|
$
|
30,038
|
3.89
|
%
|
$
|
45,372
|
6.96
|
%
|
$
|
48,217
|
13.32
|
%
|
$
|
72,883
|
18.23
|
%
|
$
|
91,835
|
25.69
|
%
|
||||||||||||||||||||
Multi‑family
|
502,141
|
65.08
|
%
|
393,704
|
60.36
|
%
|
272,387
|
75.24
|
%
|
287,378
|
71.90
|
%
|
231,870
|
64.86
|
%
|
|||||||||||||||||||||||||
Commercial real estate
|
114,574
|
14.85
|
%
|
93,193
|
14.29
|
%
|
24,289
|
6.71
|
%
|
14,728
|
3.68
|
%
|
5,802
|
1.62
|
%
|
|||||||||||||||||||||||||
Church
|
15,780
|
2.04
|
%
|
22,503
|
3.45
|
%
|
16,658
|
4.60
|
%
|
21,301
|
5.33
|
%
|
25,934
|
7.25
|
%
|
|||||||||||||||||||||||||
Construction
|
40,703
|
5.27
|
%
|
32,072
|
4.92
|
%
|
429
|
0.11
|
%
|
3,128
|
0.78
|
%
|
1,876
|
0.52
|
%
|
|||||||||||||||||||||||||
Commercial
|
64,841
|
8.40
|
%
|
46,539
|
7.13
|
%
|
57
|
0.02
|
%
|
262
|
0.07
|
%
|
226
|
0.06
|
%
|
|||||||||||||||||||||||||
SBA Loans
|
3,601
|
0.47
|
%
|
18,837
|
2.89
|
%
|
–
|
–
|
%
|
–
|
–
|
%
|
–
|
–
|
%
|
|||||||||||||||||||||||||
Consumer
|
11
|
–
|
%
|
–
|
–
|
%
|
7
|
–
|
%
|
21
|
0.01
|
%
|
5
|
–
|
%
|
|||||||||||||||||||||||||
Gross loans
|
771,689
|
100.00
|
%
|
652,220
|
100.00
|
%
|
362,044
|
100.00
|
%
|
399,701
|
100.00
|
%
|
357,548
|
100.00
|
%
|
|||||||||||||||||||||||||
Plus:
|
||||||||||||||||||||||||||||||||||||||||
Premiums on loans purchased
|
35
|
58
|
88
|
171
|
259
|
|||||||||||||||||||||||||||||||||||
Deferred loan costs, net
|
1,723
|
1,471
|
1,218
|
1,211
|
721
|
|||||||||||||||||||||||||||||||||||
Less:
|
||||||||||||||||||||||||||||||||||||||||
Credit and interest marks on purchased loans, net
|
1,010
|
1,842
|
–
|
–
|
–
|
|||||||||||||||||||||||||||||||||||
Unamortized discounts
|
3
|
3
|
6
|
54
|
43
|
|||||||||||||||||||||||||||||||||||
Allowance for loan losses
|
4,388
|
3,391
|
3,215
|
3,182
|
2,929
|
|||||||||||||||||||||||||||||||||||
Total loans held for investment
|
$
|
768,046
|
$
|
648,513
|
$
|
360,129
|
$
|
397,847
|
$
|
355,556
|
2022
|
2021
|
2020
|
||||||||||
(In thousands)
|
||||||||||||
Gross loans: (1)
|
||||||||||||
Beginning balance
|
$
|
652,220
|
$
|
362,044
|
$
|
399,701
|
||||||
Loans acquired in the merger with CFBanc
|
–
|
225,885
|
–
|
|||||||||
Loans originated:
|
||||||||||||
Multi‑family
|
141,625
|
167,097
|
120,809
|
|||||||||
Commercial real estate
|
75,302
|
43,567
|
11,870
|
|||||||||
PPP Loans
|
–
|
26,497
|
–
|
|||||||||
Construction
|
29,628
|
24,884
|
1,529
|
|||||||||
Commercial
|
26,877
|
4,942
|
66
|
|||||||||
Total loans originated
|
273,432
|
266,987
|
134,274
|
|||||||||
Less:
|
||||||||||||
Principal repayments
|
153,963
|
202,696
|
67,858
|
|||||||||
Sales of loans
|
–
|
–
|
104,073
|
|||||||||
Ending balance
|
$
|
771,689
|
$
|
652,220
|
$
|
362,044
|
(1)
|
Amount is before deferred origination costs, purchase premiums and discounts, and the allowance for loan losses.
|
Single
Family
|
Multi‑
Family
|
Commercial
Real Estate
|
Church
|
Construction
|
Commercial
|
SBA
|
Gross
Loans
|
|||||||||||||||||||||||||
Amounts due:
|
||||||||||||||||||||||||||||||||
After one year:
|
||||||||||||||||||||||||||||||||
One year to five years
|
$
|
9,107
|
$
|
26,913
|
$
|
57,039
|
$
|
7,713
|
$
|
12,966
|
$
|
36,330
|
$
|
3,459
|
$
|
153,527
|
||||||||||||||||
After five years
|
18,128
|
470,236
|
47,437
|
2,396
|
22,745
|
11,132
|
142
|
572,216
|
||||||||||||||||||||||||
Total due after one year
|
27,235
|
497,149
|
104,476
|
10,109
|
35,711
|
47,462
|
3,601
|
725,743
|
||||||||||||||||||||||||
One year or less
|
2,803
|
4,992
|
10,098
|
5,671
|
4,992
|
17,390
|
–
|
45,946
|
||||||||||||||||||||||||
Total
|
$
|
30,038
|
$
|
502,141
|
$
|
114,574
|
$
|
15,780
|
$
|
40,703
|
$
|
64,852
|
$
|
3,601
|
$
|
771,689
|
Loans delinquent
|
Loans delinquent
|
Loans delinquent
|
||||||||||||||||||||||||||||||||||||||||||||||
60-89 Days
|
90 days or more
|
60-89 Days
|
90 days or more
|
60-89 Days
|
90 days or more
|
|||||||||||||||||||||||||||||||||||||||||||
Number
|
Amount
|
Number
|
Amount
|
Number
|
Amount
|
Number
|
Amount
|
Number
|
Amount
|
Number
|
Amount
|
|||||||||||||||||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||||||||||||||||||||||||||
Commercial Real Estate
|
–
|
$
|
–
|
–
|
$
|
–
|
1
|
$
|
2,423
|
–
|
$
|
–
|
–
|
$
|
–
|
–
|
$
|
–
|
||||||||||||||||||||||||||||||
Single family
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
||||||||||||||||||||||||||||||||||||
Total
|
–
|
$
|
–
|
–
|
$
|
–
|
1
|
$
|
2,423
|
–
|
$
|
–
|
–
|
$
|
–
|
–
|
$
|
–
|
||||||||||||||||||||||||||||||
% of Gross Loans
|
–
|
%
|
–
|
%
|
0.37
|
%
|
–
|
%
|
–
|
%
|
–
|
%
|
2021
|
2020
|
2019
|
2018
|
|||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
Non‑accrual loans:
|
||||||||||||||||||||
Single family
|
$
|
–
|
$
|
–
|
$
|
1
|
$
|
18
|
$
|
–
|
||||||||||
Church
|
144
|
684
|
786
|
406
|
911
|
|||||||||||||||
Total non‑accrual loans
|
144
|
684
|
787
|
424
|
911
|
|||||||||||||||
Loans delinquent 90 days or more and still accruing
|
–
|
–
|
–
|
–
|
–
|
|||||||||||||||
Real estate owned acquired through foreclosure
|
–
|
–
|
–
|
–
|
833
|
|||||||||||||||
Total non‑performing assets
|
$
|
144
|
$
|
684
|
$
|
787
|
$
|
424
|
$
|
1,744
|
||||||||||
Non‑accrual loans as a percentage of gross loans, including loans receivable held for sale
|
0.02
|
%
|
0.10
|
%
|
0.22
|
%
|
0.11
|
%
|
0.25
|
%
|
||||||||||
Non‑performing assets as a percentage of total assets
|
0.01
|
%
|
0.06
|
%
|
0.16
|
%
|
0.10
|
%
|
0.43
|
%
|
|
||||||||
|
(Dollars in thousands)
|
|||||||
Watch loans
|
$
|
47,823
|
$
|
15,950
|
||||
Special mention loans
|
–
|
–
|
||||||
Total criticized loans
|
47,823
|
15,950
|
||||||
Substandard loans
|
1,973
|
4,283
|
||||||
Total classified assets
|
1,973
|
4,283
|
||||||
Total
|
$
|
49,796
|
$
|
20,233
|
|
||||||||||||||||||||||||||||||||||||||||
|
2021
|
2020
|
2019
|
2018
|
||||||||||||||||||||||||||||||||||||
|
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
|
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
|
$
|
109
|
3.89
|
%
|
$
|
145
|
6.96
|
%
|
$
|
296
|
13.32
|
%
|
$
|
312
|
18.23
|
%
|
$
|
368
|
25.69
|
%
|
||||||||||||||||||||
Multi‑family
|
3,273
|
65.08
|
%
|
2,657
|
60.36
|
%
|
2,433
|
75.24
|
%
|
2,319
|
71.90
|
%
|
1,880
|
64.86
|
%
|
|||||||||||||||||||||||||
Commercial real estate
|
449
|
14.85
|
%
|
236
|
14.29
|
%
|
222
|
6.71
|
%
|
133
|
3.68
|
%
|
52
|
1.62
|
%
|
|||||||||||||||||||||||||
Church
|
65
|
2.04
|
%
|
103
|
3.45
|
%
|
237
|
4.60
|
%
|
362
|
5.33
|
%
|
604
|
7.25
|
%
|
|||||||||||||||||||||||||
Construction
|
313
|
5.27
|
%
|
212
|
4.92
|
%
|
22
|
0.11
|
%
|
48
|
0.78
|
%
|
19
|
0.52
|
%
|
|||||||||||||||||||||||||
Commercial
|
175
|
8.87
|
%
|
23
|
10.02
|
%
|
4
|
0.02
|
%
|
7
|
0.07
|
%
|
6
|
0.06
|
%
|
|||||||||||||||||||||||||
Consumer
|
4
|
–
|
%
|
15
|
–
|
%
|
1
|
–
|
%
|
1
|
0.01
|
%
|
–
|
–
|
%
|
|||||||||||||||||||||||||
Total allowance for loan losses
|
$
|
4,388
|
100.00
|
%
|
$
|
3,391
|
100.00
|
%
|
$
|
3,215
|
100.00
|
%
|
$
|
3,182
|
100.00
|
%
|
$
|
2,929
|
100.00
|
%
|
|
2022
|
2021
|
2020
|
2019
|
2018
|
|||||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||
Allowance balance at beginning of year
|
$
|
3,391
|
$
|
3,215
|
$
|
3,182
|
$
|
2,929
|
$
|
4,069
|
||||||||||
Charge‑offs:
|
||||||||||||||||||||
Single family
|
–
|
–
|
–
|
–
|
–
|
|||||||||||||||
Commercial real estate
|
–
|
–
|
–
|
–
|
–
|
|||||||||||||||
Church
|
–
|
–
|
–
|
–
|
–
|
|||||||||||||||
Commercial
|
–
|
–
|
–
|
–
|
–
|
|||||||||||||||
Total charge‑offs
|
–
|
–
|
–
|
–
|
–
|
|||||||||||||||
|
||||||||||||||||||||
Recoveries:
|
||||||||||||||||||||
Single family
|
–
|
–
|
4
|
–
|
–
|
|||||||||||||||
Commercial real estate
|
–
|
–
|
–
|
–
|
–
|
|||||||||||||||
Church
|
–
|
–
|
–
|
260
|
114
|
|||||||||||||||
Commercial
|
–
|
–
|
–
|
–
|
–
|
|||||||||||||||
Total recoveries
|
–
|
–
|
4
|
260
|
114
|
|||||||||||||||
Loan loss provision (recapture)
|
997
|
176
|
29
|
(7
|
)
|
(1,254
|
)
|
|||||||||||||
Allowance balance at end of year (1)
|
$
|
4,388
|
$
|
3,391
|
$
|
3,215
|
$
|
3,182
|
$
|
2,929
|
||||||||||
Net charge‑offs (recoveries) to average loans, excluding loans receivable held for sale
|
–
|
%
|
–
|
%
|
–
|
%
|
(0.07
|
%)
|
(0.04
|
%)
|
||||||||||
ALLL as a percentage of gross loans, excluding loans receivable held for sale (2)
|
0.57
|
%
|
0.52
|
%
|
0.88
|
%
|
0.79
|
%
|
0.82
|
%
|
||||||||||
ALLL as a percentage of total non‑accrual loans
|
3,047.22
|
%
|
495.76
|
%
|
408.51
|
%
|
750.47
|
%
|
321.51
|
%
|
||||||||||
ALLL as a percentage of total non‑performing assets
|
3,047.22
|
%
|
495.76
|
%
|
408.51
|
%
|
750.47
|
%
|
167.94
|
%
|
(1) |
Including net deferred loan costs and premiums.
|
(2) |
The ALLL as of December 31, 2022 and 2021 does not include any ALLL for the remaining balance of loans acquired in the City First Merger, which totaled $146.3 million $203.8 million, respectively.
|
|
At December 31,
|
|||||||||||||||||||||||
|
2021
|
2020
|
||||||||||||||||||||||
|
Amortized
Cost
|
Fair
Value
|
Amortized
Cost
|
Fair
Value
|
Amortized
Cost
|
Fair
Value
|
||||||||||||||||||
|
(In thousands)
|
|||||||||||||||||||||||
Federal agency mortgage-backed securities
|
$
|
84,955
|
$
|
74,169
|
$
|
70,078
|
$
|
70,030
|
$
|
5,550
|
$
|
5,807
|
||||||||||||
Federal agency collateralized mortgage obligations (“CMO”)
|
27,776
|
26,100
|
9,391
|
9,287
|
–
|
–
|
||||||||||||||||||
Federal agency debt
|
55,687
|
51,425
|
38,152
|
37,988
|
2,682
|
2,827
|
||||||||||||||||||
Municipal bonds
|
4,866
|
4,197
|
4,898
|
4,915
|
2,000
|
2,019
|
||||||||||||||||||
U.S. Treasuries
|
165,997
|
160,589
|
18,169
|
17,951
|
–
|
–
|
||||||||||||||||||
SBA pools
|
14,048
|
12,269
|
16,241
|
16,225
|
–
|
–
|
||||||||||||||||||
Total
|
$
|
353,329
|
$
|
328,749
|
$
|
156,929
|
$
|
156,396
|
$
|
10,232
|
$
|
10,653
|
|
||||||||||||||||||||||||||||||||||||||||
|
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
|
$
|
–
|
–
|
%
|
$
|
5,695
|
3.48
|
%
|
$
|
11,886
|
1.31
|
%
|
$
|
56,588
|
2.54
|
%
|
$
|
74,169
|
2.41
|
%
|
||||||||||||||||||||
Federal agency CMO
|
–
|
–
|
%
|
373
|
0.65
|
%
|
8,480
|
3.81
|
%
|
17,247
|
3.51
|
%
|
26,100
|
3.57
|
%
|
|||||||||||||||||||||||||
Federal agency debt
|
4,890
|
2.62
|
%
|
36,835
|
1.95
|
%
|
9,700
|
2.64
|
%
|
–
|
–
|
%
|
51,425
|
2.14
|
%
|
|||||||||||||||||||||||||
Municipal bonds
|
–
|
–
|
%
|
1,504
|
1.61
|
%
|
1,205
|
1.78
|
%
|
1,488
|
1.81
|
%
|
4,197
|
1.73
|
%
|
|||||||||||||||||||||||||
U.S. Treasuries
|
–
|
–
|
%
|
160,589
|
2.81
|
%
|
–
|
–
|
%
|
–
|
–
|
%
|
160,589
|
2.81
|
%
|
|||||||||||||||||||||||||
SBA pools
|
–
|
–
|
%
|
136
|
4.69
|
%
|
2,390
|
2.55
|
%
|
9,743
|
2.51
|
%
|
12,269
|
2.54
|
%
|
|||||||||||||||||||||||||
Total
|
$
|
4,890
|
2.62
|
%
|
$
|
205,132
|
2.66
|
%
|
$
|
33,661
|
2.43
|
%
|
$
|
85,066
|
2.72
|
%
|
$
|
328,749
|
2.65
|
%
|
Amount
|
Weighted
average rate
|
|||||||
(Dollars in thousands)
|
||||||||
Certificates maturing:
|
||||||||
Less than three months
|
$
|
22,624
|
1.01
|
%
|
||||
Three to six months
|
25,429
|
1.01
|
%
|
|||||
Six to twelve months
|
55,053
|
1.72
|
%
|
|||||
Over twelve months
|
13,318
|
0.49
|
%
|
|||||
Total
|
$
|
116,424
|
1.29
|
%
|
For the Years Ended December 31,
|
||||||||||||||||||||||||||||||||||||
2021
|
2020
|
|||||||||||||||||||||||||||||||||||
Average
balance
|
Percent
of total
|
Weighted
average
cost of funds
|
Average
balance
|
Percent
of total
|
Weighted
average
cost of funds
|
Average
balance
|
Percent
of total
|
Weighted
average
cost of funds
|
||||||||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||||||||||||||
Money market deposits
|
$
|
192,835
|
26.34
|
%
|
0.67
|
%
|
$
|
159,157
|
24.77
|
%
|
0.41
|
%
|
$
|
47,611
|
14.88
|
%
|
0.71
|
%
|
||||||||||||||||||
Savings deposits
|
66,033
|
9.02
|
%
|
0.09
|
%
|
67,660
|
10.53
|
%
|
0.30
|
%
|
55,985
|
17.51
|
%
|
0.50
|
%
|
|||||||||||||||||||||
Interest checking and other demand deposits
|
291,114
|
39.77
|
%
|
0.08
|
%
|
223,003
|
34.70
|
%
|
0.05
|
%
|
55,003
|
17.17
|
%
|
0.03
|
%
|
|||||||||||||||||||||
Certificates of deposit
|
182,050
|
24.87
|
%
|
0.30
|
%
|
192,795
|
30.00
|
%
|
0.37
|
%
|
161,409
|
50.44
|
%
|
1.56
|
%
|
|||||||||||||||||||||
Total
|
$
|
732,032
|
100.00
|
%
|
0.29
|
%
|
$
|
642,615
|
100.00
|
%
|
0.26
|
%
|
$
|
320,008
|
100.00
|
%
|
0.99
|
%
|
At or For the Years Ended December 31,
|
||||||||||||
2021
|
2020
|
|||||||||||
(Dollars in thousands)
|
||||||||||||
FHLB Advances:
|
||||||||||||
Average balance outstanding during the year
|
$
|
61,593
|
$
|
100,471
|
$
|
114,020
|
||||||
Maximum amount outstanding at any month‑end during the year
|
$
|
128,823
|
$
|
113,580
|
$
|
121,500
|
||||||
Balance outstanding at end of year
|
$
|
128,344
|
$
|
85,952
|
$
|
110,500
|
||||||
Weighted average interest rate at end of year
|
3.74
|
%
|
1.85
|
%
|
1.94
|
%
|
||||||
Average cost of advances during the year
|
1.74
|
%
|
1.96
|
%
|
1.91
|
%
|
||||||
Weighted average maturity (in months)
|
13
|
22
|
27
|
Actual
|
Minimum Required to be
Well Capitalized Under
Prompt Corrective
Action Provisions
|
|||||||||||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Community Bank Leverage Ratio
|
$
|
181,304
|
15.75
|
%
|
$
|
103,591
|
9.00
|
%
|
||||||||
Community Bank Leverage Ratio
|
$
|
98,590
|
9.32
|
%
|
$
|
89,871
|
8.50
|
%
|
● |
historical experience with its loans;
|
● |
evaluation of current economic conditions;
|
● |
reviews of the quality, mix and size of the overall loan portfolio;
|
● |
reviews of loan delinquencies, including trends in such delinquencies; and
|
● |
the quality of the collateral underlying loans, based in part on independent appraisals by third parties.
|
● |
actual or anticipated changes in our operating results and financial condition;
|
● |
actions by our stockholders, including sales of common stock by substantial stockholders and/or directors and executive officers, or perceptions that such actions may occur;
|
● |
the limited number of shares of our common stock that are held by the general public, commonly called the “public float,” and our small market capitalization;
|
● |
failure to meet stockholder or market expectations regarding loan and deposit volume, revenue, asset quality or earnings;
|
● |
failure to meet Nasdaq listing requirements, including failure to satisfy the $1.00 minimum closing bid price requirement;
|
● |
speculation in the press or the investment community relating to the Company or the financial services industry generally;
|
● |
fluctuations in the stock price and operating results of our competitors;
|
● |
proposed or adopted regulatory changes or developments;
|
● |
investigations, proceedings, or litigation that involve or affect us;
|
● |
the performance of the national, California and Washington, D.C. economies and the real estate markets in Southern California and Washington, D.C.;
|
● |
general market conditions and, in particular, developments related to market conditions for the financial services industry;
|
● |
additions or departures of key personnel;
|
● |
changes in financial estimates or publication of research reports and recommendations by financial analysts with respect to our common stock or those of other financial institutions; and
|
● |
actions taken by bank regulatory authorities, including required additions to our loan loss reserves or the issuance of cease and desist orders, based on adverse evaluations of our loans and other assets,
operating results, or management practices and procedures or other aspects of our business.
|
ITEM 1B. |
UNRESOLVED STAFF COMMENTS
|
ITEM 2. |
PROPERTIES
|
Location
|
Leased
or Owned
|
Original Date
Leased or Acquired
|
Date of Lease
Expiration
|
East Coast Administrative Offices & Branch
1432 U Street NW
|
Owned
|
2003
|
–
|
Employee Parking Lot
14 T Street NW
|
Owned
|
2018
|
–
|
West Coast Administrative Offices/Loan Origination Center
4601 Wilshire Blvd, Suite 150
|
Leased
|
2021
|
Oct. 2026
|
Branch Office/Loan Service Center
170 N. Market Street
|
Owned
|
1996
|
–
|
Exposition Park Branch Office
|
Owned
|
1996
|
–
|
4001 South Figueroa Street
|
|||
ITEM 3. |
LEGAL PROCEEDINGS
|
ITEM 4. |
MINE SAFETY DISCLOSURES
|
ITEM 5. |
MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
|
Plan category
|
Number of
securities to be
issued upon exercise
of outstanding
options, warrants and
rights
(a)
|
Weighted average
exercise price of
outstanding options,
warrants and rights
(b)
|
Number of securities
remaining available for
future issuance under
equity compensation
plans (excluding securities
reflected in column (a))
(c)
|
|||||||||
Equity compensation plans approved by security holders:
|
||||||||||||
2008 Long Term Incentive Plan
|
250,000
|
$
|
1.62
|
–
|
||||||||
2018 Long Term Incentive Plan
|
–
|
–
|
–
|
|||||||||
Equity compensation plans not approved by security holders:
|
||||||||||||
None
|
–
|
–
|
–
|
|||||||||
Total
|
250,000
|
$
|
1.62
|
395,309
|
ITEM 7. |
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
For the Years Ended December 31,
|
||||||||||||
2021
|
2020
|
|||||||||||
Return on average assets
|
0.52
|
%
|
(0.54
|
)%
|
(0.13
|
)%
|
||||||
Return on average equity
|
2.19
|
%
|
(4.46
|
)%
|
(1.30
|
)%
|
||||||
Average equity to average assets
|
23.60
|
%
|
11.54
|
%
|
10.00
|
%
|
|
For the Years Ended December 31,
|
|||||||||||||||||||||||||||||||||||
|
2021
|
2020
|
||||||||||||||||||||||||||||||||||
(Dollars in thousands)
|
Average
Balance
|
Interest
|
Average
Yield/
Cost
|
Average
Balance
|
Interest
|
Average
Yield/
Cost
|
Average
Balance
|
Interest
|
Average
Yield/
Cost
|
|||||||||||||||||||||||||||
Assets
|
||||||||||||||||||||||||||||||||||||
Interest-earning assets:
|
||||||||||||||||||||||||||||||||||||
Interest-earning deposits
|
$
|
147,482
|
$
|
1677
|
1.14
|
%
|
$
|
203,493
|
$
|
302
|
0.15
|
%
|
$
|
49,377
|
$
|
203
|
0.41
|
%
|
||||||||||||||||||
Securities
|
252,285
|
5596
|
2.22
|
%
|
121,623
|
1,396
|
1.15
|
%
|
10,605
|
253
|
2.39
|
%
|
||||||||||||||||||||||||
Loans receivable (1)
|
674,837
|
28,732
|
(2) |
4.26
|
%
|
537,872
|
22,831
|
(3) |
4.24
|
%
|
418,952
|
17,016
|
(4) |
4.06
|
%
|
|||||||||||||||||||||
FRB and FHLB stock
|
3,732
|
264
|
7.07
|
%
|
3,862
|
223
|
5.77
|
%
|
3,438
|
172
|
5.00
|
%
|
||||||||||||||||||||||||
Total interest-earning assets
|
1,078,336
|
$
|
36,269
|
3.36
|
%
|
866,850
|
$
|
24,752
|
2.86
|
%
|
482,372
|
$
|
17,644
|
3.66
|
%
|
|||||||||||||||||||||
Non-interest-earning assets
|
65,213
|
51,386
|
10,530
|
|||||||||||||||||||||||||||||||||
Total assets
|
$
|
1,143,549
|
$
|
918,236
|
$
|
492,902
|
||||||||||||||||||||||||||||||
Liabilities and Stockholders’ Equity
|
||||||||||||||||||||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||||||||||||||
Money market deposits
|
$
|
192,835
|
$
|
1,288
|
0.67
|
%
|
$
|
159,157
|
$
|
660
|
0.41
|
%
|
$
|
47,611
|
$
|
340
|
0.71
|
%
|
||||||||||||||||||
Savings deposits
|
66,033
|
58
|
0.09
|
%
|
67,660
|
204
|
0.30
|
%
|
55,985
|
281
|
0.50
|
%
|
||||||||||||||||||||||||
Interest checking and other demand deposits
|
291,114
|
220
|
0.08
|
%
|
223,003
|
105
|
0.05
|
%
|
55,003
|
19
|
0.03
|
%
|
||||||||||||||||||||||||
Certificate accounts
|
182,050
|
538
|
0.30
|
%
|
192,795
|
707
|
0.37
|
%
|
161,409
|
2523
|
1.56
|
%
|
||||||||||||||||||||||||
Total deposits
|
732,032
|
2,104
|
0.29
|
%
|
642,615
|
1,676
|
0.26
|
%
|
320,008
|
3,163
|
0.99
|
%
|
||||||||||||||||||||||||
FHLB advances
|
61,593
|
1,071
|
1.74
|
%
|
100,471
|
1,968
|
1.96
|
%
|
114,020
|
2,179
|
1.91
|
%
|
||||||||||||||||||||||||
Junior subordinated debentures
|
–
|
–
|
–
|
%
|
2,335
|
60
|
2.57
|
%
|
3,908
|
133
|
3.40
|
%
|
||||||||||||||||||||||||
Other borrowings
|
61,106
|
234
|
0.38
|
%
|
46,836
|
45
|
0.10
|
%
|
–
|
–
|
–
|
%
|
||||||||||||||||||||||||
Total borrowings
|
122,699
|
1,305
|
1.06
|
%
|
149,642
|
2,073
|
1.39
|
%
|
117,928
|
2,312
|
1.96
|
%
|
||||||||||||||||||||||||
Total interest-bearing liabilities
|
854,731
|
$
|
3,409
|
0.40
|
%
|
792,257
|
$
|
3,749
|
0.47
|
%
|
437,936
|
$
|
5,475
|
1.25
|
%
|
|||||||||||||||||||||
Non-interest-bearing liabilities
|
64,931
|
20,050
|
5,655
|
|||||||||||||||||||||||||||||||||
Stockholders’ equity
|
223,887
|
105,929
|
49,311
|
|||||||||||||||||||||||||||||||||
Total liabilities and stockholders’ equity
|
$
|
1,143,549
|
$
|
918,236
|
$
|
492,902
|
||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
Net interest rate spread (5)
|
$
|
32,860
|
2.96
|
%
|
$
|
21,003
|
2.38
|
%
|
$
|
12,169
|
2.41
|
%
|
||||||||||||||||||||||||
Net interest rate margin (6)
|
3.05
|
%
|
2.42
|
%
|
2.52
|
%
|
||||||||||||||||||||||||||||||
Ratio of interest-earning assets to interest-bearing liabilities
|
126.16
|
%
|
109.42
|
%
|
110.15
|
%
|
(1) |
Amount is net of deferred loan fees, loan discounts and loans in process, and includes deferred origination costs, loan premiums and loans receivable held for
sale.
|
(2) |
Includes non‑accrual interest of $102 thousand, reflecting interest recoveries on non‑accrual loans that were paid off for the year ended December 31, 2022.
|
(3) |
Includes non‑accrual interest of $162 thousand, reflecting interest recoveries on non‑accrual loans that were paid off for the year ended December 31, 2021.
|
(4) |
Includes non-accrual interest of $567 thousand, reflecting interest recoveries on non-accrual loans that were paid off, and deferred cost amortization of $254
thousand for the year ended December 31, 2020.
|
(5) |
Net interest rate spread represents the difference between the yield on average interest‑earning assets and the cost of average interest‑bearing liabilities.
|
(6) |
Net interest rate margin represents net interest income as a percentage of average interest‑earning assets.
|
|
Year Ended December 31, 2022
Compared to
Year Ended December 31, 2021
|
Year Ended December 31, 2021
Compared to
Year Ended December 31, 2020
|
||||||||||||||||||||||
|
Increase (Decrease) in Net
Interest Income
|
Increase (Decrease) in Net
Interest Income
|
||||||||||||||||||||||
|
Due to
Volume
|
Due to
Rate
|
Total
|
Due to
Volume
|
Due to
Rate
|
Total
|
||||||||||||||||||
|
(In thousands)
|
|||||||||||||||||||||||
Interest‑earning assets:
|
||||||||||||||||||||||||
Interest‑earning deposits and other short‑term investments
|
$
|
(105
|
)
|
$
|
1,480
|
$
|
1,375
|
$
|
298
|
$
|
(199
|
)
|
$
|
99
|
||||||||||
Securities
|
2,248
|
1,952
|
4,200
|
1,339
|
(196
|
)
|
1,143
|
|||||||||||||||||
Loans receivable, net
|
5,831
|
70
|
5,901
|
5,018
|
797
|
5,815
|
||||||||||||||||||
FRB and FHLB stock
|
(8
|
)
|
49
|
41
|
23
|
28
|
51
|
|||||||||||||||||
Total interest‑earning assets
|
7,966
|
3,551
|
11,517
|
6,678
|
430
|
7,108
|
||||||||||||||||||
Interest‑bearing liabilities:
|
||||||||||||||||||||||||
Money market deposits
|
162
|
466
|
628
|
513
|
(193
|
)
|
320
|
|||||||||||||||||
Savings deposits
|
(5
|
)
|
(141
|
)
|
(146
|
)
|
51
|
(128
|
)
|
(77
|
)
|
|||||||||||||
Interest checking and other demand deposits
|
39
|
76
|
115
|
77
|
9
|
86
|
||||||||||||||||||
Certificate accounts
|
(38
|
)
|
(131
|
)
|
(169
|
)
|
415
|
(2,231
|
)
|
(1,816
|
)
|
|||||||||||||
Total deposits
|
158
|
270
|
428
|
1,056
|
(2,543
|
)
|
(1,487
|
)
|
||||||||||||||||
FHLB advances
|
(695
|
)
|
(202
|
)
|
(897
|
)
|
(264
|
)
|
53
|
(211
|
)
|
|||||||||||||
Junior subordinated debentures
|
(60
|
)
|
–
|
(60
|
)
|
(45
|
)
|
(28
|
)
|
(73
|
)
|
|||||||||||||
Other borrowings
|
18
|
171
|
189
|
45
|
–
|
45
|
||||||||||||||||||
Total borrowings
|
(737
|
)
|
(31
|
)
|
(768
|
)
|
(264
|
)
|
25
|
(239
|
)
|
|||||||||||||
Total interest‑bearing liabilities
|
(579
|
)
|
239
|
(340
|
)
|
792
|
(2,518
|
)
|
(1,726
|
)
|
||||||||||||||
Change in net interest income
|
$
|
8,545
|
$
|
3,312
|
$
|
11,857
|
$
|
5,886
|
$
|
2,948
|
$
|
8,834
|
(In thousands)
|
||||
2023
|
$
|
390
|
||
2024
|
336
|
|||
2025
|
315
|
|||
2026
|
304
|
|||
2027
|
291
|
|||
Thereafter
|
865
|
|||
$
|
2,501
|
Common
Equity Capital
|
Shares
Outstanding
|
Per Share
Amount
|
||||||||||
(Dollars in thousands)
|
||||||||||||
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
|
Less than
one year
|
More than
one year to
three years
|
More than
three years to
five years
|
More than
five years
|
Total
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
Certificates of deposit
|
$
|
118,070
|
$
|
11,496
|
$
|
5,479
|
$
|
8
|
$
|
135,053
|
||||||||||
FHLB advances
|
95,500
|
32,844
|
–
|
–
|
128,344
|
|||||||||||||||
Commitments to originate loans
|
15,160
|
–
|
–
|
–
|
15,160
|
|||||||||||||||
Commitments to fund construction loans
|
27,811
|
–
|
–
|
–
|
27,811
|
|||||||||||||||
Commitments to fund unused lines of credit
|
13,341
|
–
|
–
|
–
|
13,341
|
|||||||||||||||
Operating lease obligations
|
236
|
496
|
194
|
–
|
926
|
|||||||||||||||
Total contractual obligations
|
$
|
270,118
|
$
|
44,836
|
$
|
5,673
|
$
|
8
|
$
|
320,635
|
ITEM 7A. |
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
ITEM 8. |
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
|
ITEM 9. |
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
|
ITEM 9A. |
CONTROLS AND PROCEDURES
|
ITEM 9B. |
OTHER INFORMATION
|
ITEM 9C. |
DISCLOSURE REGARDING FOREIGN JURISDICITONS THAT PREVENT INSPECTIONS
|
ITEM 10. |
DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
|
ITEM 11. |
EXECUTIVE COMPENSATION
|
ITEM 12. |
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS
|
ITEM 13. |
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE
|
ITEM 14. |
PRINCIPAL ACCOUNTANT FEES AND SERVICES
|
ITEM 15. |
EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
|
(a) |
1. See Index to Consolidated Financial Statements.
|
Exhibit
Number*
|
||
Amended and Restated Certificate of Incorporation of Registrant (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 for the Series B Junior Participating Preferred Stock (Exhibit 3.1 to Form 8-K filed by Registrant on
September 11, 2019)
|
||
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)
|
||
Description of Registrant’s Securities Registered Pursuant to Section 12 of the Securities Exchange Act of 1934 (Exhibit 4.1 to Form 10-K filed by Registrant on April 15, 2022)
|
||
Rights Agreement, dated as of September 10, 2019, entered between
Broadway Financial Corporation and Computershare Trust Company, N.A., as rights agent (Exhibit 4.1 to Form 8-K filed by Registrant on September 11, 2019)
|
||
Amendment to Rights Agreement, dated as of August 25, 2020, entered
between Broadway Financial Corporation and Computershare Trust Company, N.A. (Exhibit 4.1 to Form 8-K file by Registrant on August 26, 2020)
|
||
Registration Rights Agreement (Exhibit 10.2 to Form 8-K filed by Registrant on June 8, 2022)
|
||
Broadway Federal Bank Employee Stock Ownership Plan (Exhibit 10.1 to Form 10‑K filed by Registrant on March 28, 2016)
|
||
Amended and Restated Broadway Financial Corporation 2008 Long Term Incentive Plan (Exhibit 10.3 to Form 10‑Q filed by Registrant on
August 12, 2016)
|
||
Amended Form of Award Agreement for stock options granted
pursuant to Amended and Restated Broadway Financial Corporation 2008 Long‑Term Incentive Plan (Exhibit 10.1 to Form 10‑Q filed by Registrant on August 12, 2016)
|
||
Broadway Financial Corporation 2018 Long‑Term Incentive Plan (Exhibit 10.5 to Form 10-K filed by Registrant on March 29, 2019)
|
||
Form of Award Agreement for restricted stock granted pursuant to
Broadway Financial Corporation 2018 Long‑Term Incentive Plan (Exhibit 10.6 to Form 10-K filed by Registrant on March 29, 2019)
|
||
Employment Agreement, dated as of March 22, 2017, for Wayne‑Kent A. Bradshaw (Exhibit 10.7 to Form 10-K filed by Registrant on March
29, 2019)
|
||
Award Agreement, dated as of February 27, 2019 for grant of
restricted stock to Wayne‑Kent A. Bradshaw pursuant to Broadway Financial Corporation 2018 Long‑Term Incentive Plan (Exhibit 10.10 to Form 10-K filed by Registrant on March 29, 2019)
|
Employment Agreement, dated as of May 1, 2017, for Brenda J. Battey (Exhibit 10.11 to Form 10-K filed by Registrant on March 29, 2019)
|
||
Amendment to Employment Agreement for Brenda J. Battey, dated as of January 14, 2021 (Exhibit 10.1 to form 8-K filed by Registrant on
January 14, 2021)
|
||
Employment Agreement, dated as of May 1, 2017, for Norman Bellefeuille (Exhibit 10.12 to Form 10-K filed by Registrant on March 29, 2019)
|
||
Amendment to Employment Agreement for Norman Bellefeuille, dated as of January 14, 2020 (Exhibit 10.2 to form 8-K filed by Registrant on January 14, 2021)
|
||
Employment Agreement, dated as of May 1, 2017, for Ruth McCloud (Exhibit 10.13 to Form 10-K filed by Registrant on March 29, 2019)
|
||
Amendment to Employment Agreement for Ruth McCloud, dated as of January 14, 2020 (Exhibit 10.3 to form 8-K filed by Registrant on January 14, 2021)
|
||
Broadway Federal Bank Incentive Compensation Plan (Exhibit 10.14 to Form 10-K filed by the Registrant on March 31, 2021)
|
||
Employment Agreement, dated and effective as of November 17, 2021, between Registrant and Brian E. Argrett (Exhibit 10.1 to Form 8-K
filed by Registrant on November 18, 2021)
|
||
Stock Purchase Agreement, dated as of December 21, 2016, entered between First Republic Bank and Registrant (Exhibit 10.8 to Form 10‑K
filed by Registrant on March 27, 2017)
|
||
ESOP Loan Agreement and ESOP Pledge Agreement, each dated as of December 19, 2016,
entered into between Registrant and Miguel Paredes, as trustee for the Broadway Federal Bank, f.s.b., Employee Stock Ownership Plan Trust, and related Promissory Note, dated as of
December 19, 2016 (Exhibit 10.12 to Form 10‑K filed by Registrant on March 27, 2017)
|
Stock Purchase Agreement, dated as of November 23, 2020, entered between Banc
of America Strategic Investments Corporation and Registrant (Exhibit 10.15 to Registration
Statement on S-4 filed by Registrant on January 19, 2021)
|
||
Stock Purchase Agreement, dated as of November 23, 2020, entered between Cedars-Sinai Medical Center and Registrant (Exhibit 10.14 to Registration Statement on S-4 filed by Registrant on January 19, 2021)
|
||
Stock Purchase Agreement, dated as of November 24, 2020, entered
between Wells Fargo Central Pacific Holdings, Inc. and Registrant (Exhibit 10.16 to
Registration Statement on S-4 filed by Registrant on January 19, 2021)
|
||
Stock Purchase Agreement, dated as of February 19, 2021, entered
between Ally Ventures, a business unit of Ally Financial Inc., and Registrant (Exhibit 10.24 to Form 10-K filed by Registrant on March 31, 2021)
|
||
Stock Purchase Agreement, dated as of February 19, 2021, entered between Banner Bank and Registrant (Exhibit 10.25 to Form 10-K filed by Registrant on March 31, 2021)
|
||
Stock Purchase Agreement, dated as of February 19, 2021, entered between Citicorp Banking Corporation and Registrant (Exhibit 10.26 to Form 10-K filed by Registrant on March 31, 2021)
|
||
Stock Purchase Agreement, dated as of February 19, 2021, entered between First Republic Bank and Registrant (Exhibit 10.8 to Form 10‑K filed by
Registrant on March 31, 2021)
|
||
Stock Purchase Agreement, dated as of February 19, 2021, entered between Gerald I. White and Registrant (Exhibit 10.28 to Form 10-K filed by
Registrant on March 31, 2021)
|
||
Stock Purchase Agreement, dated as of February 19, 2021, entered between Gerald I. White, in his capacity as the trustee for the Grace & White, Inc. Profit Sharing Plan, and Registrant (Exhibit 10.29 to Form 10-K filed
by Registrant on March 31, 2021)
|
||
Stock Purchase Agreement, dated as of February 19, 2021, entered between Registrant and Butterfield Trust (Bermuda) Limited as trustee of each of the following: The Lorraine Grace Will Trust, The Anne Grace Kelly Trust 99, The Gwendolyn Grace Trust 99, The Lorraine L. Grace Trust 99, and The Ruth Grace Jervis Millennium Trust (Exhibit 10.30 to Form 10-K filed by Registrant on March 31, 2021)
|
||
Stock Purchase Agreement, dated as of February 19, 2021, entered between Texas Capital Community Development Corporation and Registrant (Exhibit 10.31 to Form 10-K filed by Registrant on March 31, 2021)
|
||
Stock Purchase Agreement, dated as of February 20, 2021, entered
between J.P. Morgan Chase Community Development Corporation and Registrant (Exhibit 10.32
to Form 10-K filed by Registrant on March 31, 2021)
|
||
Letter Agreement and Securities Purchase Agreement, dated June 7, 2022 (Exhibit 10.1 to Form 8-K filed by Registrant on June 8, 2022)
|
||
List of Subsidiaries
|
||
Consent of Moss Adams LLP
|
||
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
|
Inline XBRL Instance 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
|
The cover page from this Annual Report on Form 10-K, formatted in Inline XBRL (included as 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.
|
ITEM 16. |
FORM 10-K SUMMARY
|
BROADWAY FINANCIAL CORPORATION
|
||
By:
|
/s/ BRIAN ARGRETT
|
|
Chief Executive Officer
|
||
Date:
|
April 11, 2023
|
/s/ BRIAN ARGRETT
|
Date: April 11, 2023
|
Chief Executive Officer and President
|
|
(Principal Executive Officer)
|
|
/s/ BRENDA J. BATTEY
|
Date: April 11, 2023
|
Chief Financial Officer
|
|
(Principal Financial Officer and Principal Accounting Officer)
|
|
Date: April 11, 2023
|
|
Chairman of the Board
|
/s/ MARIE C. JOHNS
|
Date: April 11, 2023
|
Lead Independent Director
|
|
Date: April 11, 2023
|
|
Audit Committee Chairman
|
|
Date: April 11, 2023
|
|
Director
|
|
/s/ MARY ANN DONOVAN
|
Date: April 11, 2023
|
Director
|
|
/s/ DAVID J. MCGRADY
|
Date: April 11, 2023
|
Director
|
|
Date: April 11, 2023
|
|
Director
|
|
/s/ JOHN M. DRIVER
|
Date: April 11, 2023
|
Director
|
F‑1
|
|
F‑3
|
|
F‑4
|
|
F‑5
|
|
F‑6
|
|
F‑7
|
•
|
Testing a risk-based targeted selection of loans to evaluate the risk ratings.
|
•
|
Evaluating the reasonableness of the assumptions used for adjustments to the economic factors.
|
•
|
Obtaining management’s analysis and supporting documentation related to the economic factors, and testing whether the economic factors
used in the calculation of the allowance for loan losses are supported by the analysis provided by management.
|
•
|
Evaluating the methodology and assumptions used in the calculation of the allowance for loan losses, and testing the calculation
itself, including completeness and accuracy of the data used in the calculation, application of the loan risk ratings determined by management and used in the calculation, application of the current economic factors determined by
management and used in the calculation, and recalculation of the allowance for loan losses balance.
|
|
||||||||
|
(In thousands, except share and per share)
|
|||||||
Assets:
|
||||||||
Cash and due from banks
|
$
|
i 7,459
|
$
|
i 38,418
|
||||
Interest-bearing deposits in other banks
|
i 8,646
|
i 193,102
|
||||||
Cash and cash equivalents
|
i 16,105
|
i 231,520
|
||||||
Securities available-for-sale, at fair value
|
i 328,749
|
i 156,396
|
||||||
Loans receivable held for investment, net of allowance of $ i 4,388 and $ i 3,391
|
i 768,046
|
i 648,513
|
||||||
Accrued interest receivable
|
i 3,973
|
i 3,372
|
||||||
Federal Home Loan Bank (FHLB) stock
|
i 5,535
|
i 2,573
|
||||||
Federal Reserve Bank (FRB) stock
|
i 5,264
|
i 693
|
||||||
Office properties and equipment, net
|
i 10,291
|
i 10,344
|
||||||
Bank owned life insurance
|
i 3,233
|
i 3,190
|
||||||
Deferred tax assets, net
|
i 11,872
|
i 6,101
|
||||||
Core deposit intangible, net
|
i 2,501
|
i 2,936
|
||||||
Goodwill
|
i 25,858
|
i 25,996
|
||||||
Other assets
|
i 2,866
|
i 1,871
|
||||||
Total assets
|
$
|
i 1,184,293
|
$
|
i 1,093,505
|
||||
Liabilities and stockholders’ equity
|
||||||||
Liabilities:
|
||||||||
Deposits
|
$
|
i 686,916
|
$
|
i 788,052
|
||||
Securities sold under agreements to repurchase |
i 63,471 | i 51,960 | ||||||
FHLB advances
|
i 128,344
|
i 85,952
|
||||||
Notes payable
|
i 14,000 | i 14,000 | ||||||
Accrued expenses and other liabilities
|
i 11,910 | i 12,441 | ||||||
Total liabilities
|
i 904,641
|
i 952,405
|
||||||
Stockholders’ Equity:
|
||||||||
Cumulative Perpetual Preferred stock, Series A; authorized i i 3,000 /
shares at December 31, 2022 and December 31, 2021; issued and outstanding i i no /
shares at December 31, 2022 and i i 3,000 /
at December 31, 2021; liquidation value $ i i 1,000 /
per share
|
i – | i 3,000 | ||||||
Non-Cumulative Redeemable Perpetual Preferred stock, Series C; authorized i 150,000 shares at December 31, 2022 and i no
shares
as of December 31, 2021; issued and outstanding i i 150,000 /
shares at December 31, 2022 and i i no /
shares at December 31, 2021; liquidation value $ i i 1,000 /
per share
|
i 150,000
|
i –
|
||||||
Common stock, Class A, $ i i 0.01 /
par value, voting; authorized i i 75,000,000 /
shares at December 31, 2022 and December 31, 2021; issued i 51,265,209 shares at December 31, 2022 and i 46,291,852
shares at December 31, 2021; outstanding i 48,647,383 shares at December 31, 2022 and i 43,674,026
shares at December 31, 2021
|
i 513
|
i 463
|
||||||
Common stock, Class B, $ i i 0.01 /
par value, non-voting; authorized i i 15,000,000 /
shares at December 31, 2022 and December 31, 2021; issued and outstanding
i i i i 11,404,618 / / /
shares at December 31, 2022 and December 31, 2021
|
i 114
|
i 114
|
||||||
Common stock, Class C, $ i i 0.01 /
par value, non-voting; authorized i i 25,000,000 /
shares at December 31, 2022 and December 31, 2021; issued and outstanding i i 13,380,516 /
at December 31, 2022 and i i 16,689,775 /
shares at December 31, 2021
|
i 134
|
i 167
|
||||||
Additional paid-in capital
|
i 143,491
|
i 140,289
|
||||||
Retained earnings
|
i 9,294
|
i 3,673
|
||||||
Unearned Employee Stock Ownership Plan (ESOP) shares
|
( i 1,265
|
)
|
( i 829
|
)
|
||||
Accumulated other comprehensive loss, net of tax
|
( i 17,473
|
)
|
( i 551
|
)
|
||||
( i 5,326
|
)
|
( i 5,326
|
)
|
|||||
Total Broadway Financial Corporation and Subsidiary stockholders’ equity
|
i 279,482
|
i 141,000
|
||||||
Non-controlling interest
|
i 170
|
i 100
|
||||||
Total liabilities and stockholders’ equity
|
$
|
i 1,184,293
|
$
|
i 1,093,505
|
Years Ended December 31,
|
||||||||
2021
|
||||||||
(In thousands, except per share)
|
||||||||
Interest income:
|
||||||||
Interest and fees on loans receivable
|
$
|
i 28,732
|
$
|
i 22,831
|
||||
Interest on available-for-sale securities
|
i 5,596
|
i 1,396
|
||||||
Other interest income
|
i 1,941
|
i 525
|
||||||
Total interest income
|
i 36,269
|
i 24,752
|
||||||
Interest expense:
|
||||||||
Interest on deposits
|
i 2,104
|
i 1,676
|
||||||
Interest on borrowings
|
i 1,305
|
i 2,073
|
||||||
Total interest expense
|
i 3,409
|
i 3,749
|
||||||
Net interest income
|
i 32,860
|
i 21,003
|
||||||
Loan loss provision
|
i 997
|
i 176
|
||||||
Net interest income after loan loss provision
|
i 31,863
|
i 20,827
|
||||||
Non-interest income:
|
||||||||
Service charges
|
i 145
|
i 249
|
||||||
CDFI Grant
|
i –
|
i 2,043
|
||||||
Other
|
i 1,050
|
i 922
|
||||||
Total non-interest income
|
i 1,195
|
i 3,214
|
||||||
Non-interest expense:
|
||||||||
Compensation and benefits
|
i 14,303
|
i 16,007
|
||||||
Occupancy expense
|
i 1,615
|
i 1,781
|
||||||
Information services
|
i 2,933
|
i 3,817
|
||||||
Professional services
|
i 2,758
|
i 3,701
|
||||||
Supervisory costs
|
i 413 | i 493 | ||||||
Office services and supplies
|
i 174 | i 284 | ||||||
Corporate insurance
|
i 231 | i 345 | ||||||
Amortization of core deposit intangible
|
i 435 | i 393 | ||||||
Other
|
i 2,077
|
i 2,106
|
||||||
Total non-interest expense
|
i 24,939
|
i 28,927
|
||||||
Income (loss) before income taxes
|
i 8,119
|
( i 4,886
|
)
|
|||||
Income tax expense (benefit)
|
i 2,413
|
( i 937
|
)
|
|||||
Net income (loss)
|
$
|
i 5,706
|
$
|
( i 3,949
|
)
|
|||
Less: Net income attributable to non-controlling interest |
i 70 | i 101 | ||||||
Net income (loss) attributable to Broadway Financial Corporation
|
$ | i 5,636 | $ | ( i 4,050 | ) | |||
Other comprehensive loss, net of tax:
|
||||||||
Unrealized losses on securities available-for-sale arising during the period
|
$
|
( i 24,047
|
)
|
$
|
( i 998
|
)
|
||
Income tax benefit
|
( i 7,125
|
)
|
( i 283
|
)
|
||||
Other comprehensive loss, net of tax
|
( i 16,922
|
)
|
( i 715
|
)
|
||||
Comprehensive loss
|
$
|
( i 11,286
|
)
|
$
|
( i 4,765
|
)
|
||
Earnings (loss) per common share-basic
|
$
|
i 0.08
|
$
|
( i 0.07
|
)
|
|||
Earnings (loss) per common share-diluted
|
$
|
i 0.08
|
$
|
( i 0.07
|
)
|
|
Preferred Stock Non-Voting
|
Common Stock Voting
|
Common Stock Non-Voting
|
Additional Paid in Capital
|
Accumulated Other Comprehensive Loss
|
Retained Earnings (Substantially Restricted)
|
Unearned ESOP Shares
|
Treasury Stock
|
Non-
Controlling Interest
|
Total
Stockholders’
Equity
|
||||||||||||||||||||||||||||||
Balance at December 31, 2020
|
$ | i – | $ |
i 219 | $ |
i 87 | $ |
i 46,851 | $ |
i 164 | $ |
i 7,783 | $ |
( i 893 | ) | $ |
( i 5,326 | ) | $ |
i – | $ |
i 48,885 | ||||||||||||||||||
Net income for the twelve months ended December 31, 2020
|
i – | i – | i – | i – | i – | ( i 4,050 | ) | i – | i – | i 101 | ( i 3,949 | ) | ||||||||||||||||||||||||||||
Preferred shares issued in business combination
|
i 3,000 | i – | i – | i – | i – | i – | i – | i – | i – | i 3,000 | ||||||||||||||||||||||||||||||
Common shares issued in business combination
|
i – | i 140 | i 114 | i 62,839 | i – | i – | i – | i – | i 164 | i 63,257 | ||||||||||||||||||||||||||||||
Release of unearned ESOP shares
|
i – | i – | i – | i 45 | i – | i – | i 64 | i – | i – | i 109 | ||||||||||||||||||||||||||||||
Restricted stock compensation expense
|
i – | i – | i – | i 363 | i – | i – | i – | i – | i – | i 363 | ||||||||||||||||||||||||||||||
Director stock compensation expense
|
i – | i – | i – | i 45 | i – | i – | i – | i – | i – | i 45 | ||||||||||||||||||||||||||||||
Stock option compensation expense
|
i – | i – | i – | i 7 | i – | i – | i – | i – | i – | i 7 | ||||||||||||||||||||||||||||||
Conversion of preferred shares to common shares
|
i – | i – | i – | i – | i – | i – | i – | i – | i – | i – | ||||||||||||||||||||||||||||||
Share transferred from voting to non-voting after business combination
|
i – | ( i 7 | ) | i 7 | i – | i – | i – | i – | i – | i – | i – | |||||||||||||||||||||||||||||
Common shares issued in private placement
|
i – | i 112 | i 73 | i 30,652 | i – | i – | i – | i – | i – | i 30,837 | ||||||||||||||||||||||||||||||
Common stock cancelled for payment of tax withholding
|
i – | ( i 1 | ) | i – | ( i 513 | ) | i – | i – | i – | i – | i – | ( i 514 | ) | |||||||||||||||||||||||||||
Payment to non-controlling interest
|
i – | i – | i – | i – | i – | i – | i – | i – | ( i 165 | ) | ( i 165 | ) | ||||||||||||||||||||||||||||
Dividends paid on preferred stock
|
i – | i – | i – | i – | i – | ( i 60 | ) | i – | i – | i – | ( i 60 | ) | ||||||||||||||||||||||||||||
Other comprehensive loss, net of tax
|
i – | i – | i – | i – | ( i 715 | ) | i – | i – | i – | i – | ( i 715 | ) | ||||||||||||||||||||||||||||
Balance at December 31, 2021
|
$
|
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 for the twelve months ended December 31, 2022
|
i –
|
i –
|
i –
|
i –
|
i –
|
i 5,636
|
i –
|
i –
|
i 70
|
i 5,706
|
||||||||||||||||||||||||||||||
Preferred shares issued
|
i 150,000
|
i –
|
i –
|
i –
|
i –
|
i –
|
i –
|
i –
|
i –
|
i 150,000
|
||||||||||||||||||||||||||||||
Release of unearned ESOP shares
|
i –
|
i –
|
i –
|
i 2
|
i –
|
i –
|
i 64
|
i –
|
i –
|
i 66
|
||||||||||||||||||||||||||||||
Increase in unreleased shares
|
i – | i – | i – | i – | i – | i – | ( i 500 | ) | i – | i – | ( i 500 | ) | ||||||||||||||||||||||||||||
Restricted stock compensation expense
|
i –
|
i 5
|
i –
|
i 128
|
i –
|
i –
|
i –
|
i –
|
i –
|
i 133
|
||||||||||||||||||||||||||||||
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 33
|
( i 33
|
)
|
i –
|
i –
|
i –
|
i –
|
i –
|
i –
|
i –
|
|||||||||||||||||||||||||||||
Dividends paid on preferred stock
|
i – | i – | i – | i – | i – | ( i 15 | ) | i – | i – | i – | ( i 15 | ) | ||||||||||||||||||||||||||||
Other comprehensive loss, net of tax
|
i –
|
i –
|
i –
|
i –
|
( i 16,922
|
)
|
i –
|
i –
|
i –
|
i –
|
( i 16,922
|
)
|
||||||||||||||||||||||||||||
Balance at December 31, 2022
|
$
|
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
|
|
Years Ended December 31
|
|||||||
|
2022
|
2021
|
||||||
|
(In thousands)
|
|||||||
Cash flows from operating activities:
|
||||||||
Net income (loss)
|
$
|
i 5,706
|
$
|
( i 3,949
|
)
|
|||
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
|
||||||||
Loan loss provision
|
i 997
|
i 176
|
||||||
Depreciation
|
i 376
|
i 287
|
||||||
Net change of deferred loan origination costs
|
i 229
|
( i 229
|
)
|
|||||
Net amortization of premiums & discounts on available-for-sale securities
|
( i 225
|
)
|
i 643
|
|||||
(Accretion) amortization of purchase accounting marks on loans
|
( i 831 | ) | i 58 | |||||
Amortization of core deposit intangible
|
i 435
|
i 393
|
||||||
Director compensation expense-common stock
|
i 84 | i 45 | ||||||
Accretion of premium on FHLB advances
|
( i 38
|
)
|
( i 38 | ) | ||||
Stock‑based compensation expense
|
i 133
|
i 370
|
||||||
Valuation allowance on deferred tax asset
|
i – | i 369 | ||||||
ESOP compensation expense
|
i 66
|
i 109
|
||||||
Earnings on bank owned life insurance
|
( i 43
|
)
|
( i 43
|
)
|
||||
Change in assets and liabilities:
|
||||||||
Net change in deferred taxes
|
i 1,492
|
( i 1,272
|
)
|
|||||
Net change in accrued interest receivable
|
( i 601
|
)
|
( i 533
|
)
|
||||
Net change in other assets
|
( i 995
|
)
|
i 908
|
|||||
Net change in accrued expenses and other liabilities
|
( i 461
|
)
|
i 3,330
|
|||||
Net cash provided by operating activities
|
i 6,324
|
i 624
|
||||||
Cash flows from investing activities:
|
||||||||
Cash acquired in merger
|
i –
|
i 84,745
|
||||||
Net change in loans receivable held for investment
|
( i 119,928
|
)
|
( i 62,504
|
)
|
||||
Principal payments and maturities on available-for-sale securities
|
i 19,325
|
i 19,159
|
||||||
Purchase of available-for-sale securities
|
( i 215,500
|
)
|
( i 16,523
|
)
|
||||
Purchase of FRB stock
|
( i 4,571 | ) | i – | |||||
Purchase of FHLB stock
|
( i 5,414 | ) | ( i 152 | ) | ||||
Proceeds from redemption of FHLB stock
|
i 2,452
|
i 1,378
|
||||||
Purchase of office properties and equipment
|
( i 323
|
)
|
( i 1,138
|
)
|
||||
Net cash (used in) provided by investing activities
|
( i 323,959
|
)
|
i 24,965
|
|||||
Cash flows from financing activities:
|
||||||||
Net change in deposits
|
( i 101,136
|
)
|
i 118,700
|
|||||
Net change in securities sold under agreements to repurchase
|
i 11,511
|
( i 7,985
|
)
|
|||||
Increase in unreleased ESOP shares
|
( i 500 | ) | i – | |||||
Proceeds from issuance of preferred stock
|
i 150,000 | i – | ||||||
Proceeds from issuance of common stock, net of issuance costs
|
i –
|
i 30,837 | ||||||
Dividends paid on preferred stock
|
( i 15 | ) | ( i 60 | ) | ||||
Distributions to non-controlling interest
|
i – | ( i 165 | ) | |||||
Proceeds from FHLB advances
|
i 95,500 | i 5,000 | ||||||
Repayments of FHLB advances
|
( i 53,140 | ) | ( i 32,676 | ) | ||||
Stock cancelled for income tax withholding
|
i – | ( i 514 | ) | |||||
Repayments of junior subordinated debentures
|
i – | ( i 3,315 | ) | |||||
Net cash provided by financing activities
|
i 102,220
|
i 109,822
|
||||||
Net change in cash and cash equivalents
|
( i 215,415
|
)
|
i 135,411
|
|||||
Cash and cash equivalents at beginning of the period
|
i 231,520
|
i 96,109
|
||||||
Cash and cash equivalents at end of the period
|
$
|
i 16,105
|
$
|
i 231,520
|
||||
Supplemental disclosures of cash flow information:
|
||||||||
Cash paid for interest
|
$
|
i 3,053
|
$
|
i 3,716
|
||||
Cash paid for income taxes
|
i 332
|
i 711
|
||||||
Supplemental non-cash disclosures:
|
||||||||
Right-of-use assets obtained in
exchange for operating lease liabilities
|
$
|
i –
|
$
|
i 1,119
|
||||
Common stock issued in exchange for preferred stock
|
i 3,000 | i – | ||||||
Assets acquired (liabilities assumed) in acquisition:
|
||||||||
Securities available-for-sale, at fair value
|
$
|
i –
|
$
|
i 149,975
|
||||
Loans receivable
|
i –
|
i 225,885
|
||||||
Accrued interest receivable
|
i –
|
i 1,637
|
||||||
FHLB and FRB stock
|
i –
|
i 1,061
|
||||||
Office property and equipment
|
i –
|
i 6,953
|
||||||
Goodwill
|
( i 138
|
)
|
i 25,966
|
|||||
Core deposit intangible
|
i –
|
i 3,329
|
||||||
Other assets
|
i –
|
i 2,290
|
||||||
Deposits
|
i –
|
( i 353,722
|
)
|
|||||
FHLB advances
|
i –
|
( i 3,166
|
)
|
|||||
Securities sold under agreements to repurchase
|
i –
|
( i 59,945
|
)
|
|||||
Other borrowings
|
i –
|
( i 14,000
|
)
|
|||||
Deferred taxes
|
i 138
|
( i 717
|
)
|
|||||
Accrued expenses and other liabilities
|
i –
|
( i 4,063
|
)
|
|
CFBanc
Book
Value
|
Fair Value
Adjustments
|
Fair Value
|
|||||||||
Assets acquired
|
(In thousands)
|
|||||||||||
Cash and cash equivalents
|
$
|
i 84,745
|
$
|
i –
|
$
|
i 84,745
|
||||||
Securities available-for-sale
|
i 150,052
|
( i 77
|
)
|
i 149,975
|
||||||||
Loans receivable held for investment:
|
||||||||||||
Gross loans receivable held for investment
|
i 227,669
|
( i 1,784
|
)
|
i 225,885
|
||||||||
Deferred fees and costs
|
( i 315
|
)
|
i 315
|
i –
|
||||||||
Allowance for loan losses
|
( i 2,178
|
)
|
i 2,178
|
i –
|
||||||||
|
i 225,176
|
i 709
|
i 225,885
|
|||||||||
Accrued interest receivable
|
i 1,637
|
i –
|
i 1,637
|
|||||||||
FHLB and FRB stock
|
i 1,061
|
i –
|
i 1,061
|
|||||||||
Office properties and equipment
|
i 5,152
|
i 1,801
|
i 6,953
|
|||||||||
Deferred tax assets, net
|
i 890
|
( i 1,470
|
)
|
( i 580
|
)
|
|||||||
Core deposit intangible
|
i –
|
i 3,329
|
i 3,329
|
|||||||||
Other assets
|
i 2,290
|
i –
|
i 2,290
|
|||||||||
Total assets
|
$
|
i 471,003
|
$
|
i 4,292
|
$
|
i 475,295
|
||||||
|
||||||||||||
Liabilities assumed
|
||||||||||||
Deposits
|
$
|
i 353,671
|
$
|
i 51
|
$
|
i 353,722
|
||||||
Securities sold under agreements to repurchase
|
i 59,945
|
i –
|
i 59,945
|
|||||||||
FHLB advances
|
i 3,057
|
i 109
|
i 3,166
|
|||||||||
Notes payable
|
i 14,000
|
i –
|
i 14,000
|
|||||||||
Accrued expenses and other liabilities
|
i 4,063
|
i –
|
i 4,063
|
|||||||||
Total liabilities
|
$
|
i 434,736
|
$
|
i 160
|
$
|
i 434,896
|
||||||
|
||||||||||||
Excess of assets acquired over liabilities assumed
|
$
|
i 36,267
|
$
|
i 4,132
|
$
|
i 40,399
|
||||||
Consideration paid
|
|
i 66,257
|
||||||||||
Goodwill recognized
|
$
|
i 25,858
|
|
Acquired
Loans |
|||
Contractual amounts due
|
$
|
i 231,432
|
||
Cash flows not expected to be collected
|
( i 3,666
|
)
|
||
Expected cash flows
|
i 227,766
|
|||
Interest component of expected cash flows
|
( i 1,881
|
)
|
||
Fair value of acquired loans
|
$
|
i 225,885
|
Contractual amounts due
|
$
|
i 1,825
|
||
Non-accretable difference (cash flows not expected to be collected)
|
( i 634
|
)
|
||
Expected cash flows
|
i 1,191
|
|||
Accretable yield
|
( i 346
|
)
|
||
Fair value of acquired PCI loans
|
$
|
i 845
|
Common Shares Outstanding
|
||||||||||||||||
Voting
Class A
|
Nonvoting
Class B
|
Nonvoting
Class C
|
Total
Shares
|
|||||||||||||
Shares outstanding March 31, 2021:
|
i 19,142,498
|
i –
|
i 8,756,396
|
i 27,898,894
|
||||||||||||
Shares issued in merger
|
i 13,999,870
|
i 11,404,621
|
i –
|
i 25,404,491
|
||||||||||||
Shares exchanged post-merger
|
( i 681,300
|
)
|
i –
|
i 681,300
|
i –
|
|||||||||||
Shares cancelled
|
( i 52,105
|
)
|
i –
|
i –
|
( i 52,105
|
)
|
||||||||||
Shares issued in private placements
|
i 11,221,921
|
i –
|
i 7,252,079
|
i 18,474,000
|
||||||||||||
Fractional shares cancelled |
( i 20 | ) | ( i 3 | ) | i – | ( i 23 | ) | |||||||||
Shares outstanding April 6, 2021:
|
i 43,630,864
|
i 11,404,618
|
i 16,689,775
|
i 71,725,257
|
Amortized
Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Fair Value
|
|||||||||||||
(In thousands)
|
||||||||||||||||
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
|
|||||||
Federal agency mortgage-backed securities
|
$
|
i 70,078
|
$
|
i 196
|
$
|
( i 244
|
)
|
$
|
i 70,030
|
|||||||
Federal agency CMOs
|
i 9,391
|
i 11
|
( i 115
|
)
|
i 9,287
|
|||||||||||
Federal agency debt
|
i 38,152
|
i 106
|
( i 270
|
)
|
i 37,988
|
|||||||||||
Municipal bonds
|
i 4,898
|
i 40
|
( i 23
|
)
|
i 4,915
|
|||||||||||
U. S. Treasuries
|
i 18,169
|
i –
|
( i 218
|
)
|
i 17,951
|
|||||||||||
SBA pools
|
i 16,241
|
i 122
|
( i 138
|
)
|
i 16,225
|
|||||||||||
Total available-for-sale securities
|
$
|
i 156,929
|
$
|
i 475
|
$
|
( i 1,008
|
)
|
$
|
i 156,396
|
|
Amortized
Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Fair Value
|
||||||||||||
|
(In thousands)
|
|||||||||||||||
Due in one year or less
|
$
|
i 4,997
|
$
|
i –
|
$
|
( i 107
|
)
|
$
|
i 4,890
|
|||||||
Due after one year through five years
|
i 214,003
|
i –
|
( i 8,871
|
)
|
i 205,132
|
|||||||||||
Due after five years through ten years
|
i 36,862
|
i 27
|
( i 3,228
|
)
|
i 33,661
|
|||||||||||
Due after ten years (1)
|
i 97,467
|
i 10
|
( i 12,411
|
)
|
i 85,066
|
|||||||||||
|
$
|
i 353,329
|
$
|
i 37
|
$
|
( i 24,617
|
)
|
$
|
i 328,749
|
(1)
|
Mortgage-backed securities, CMOs 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 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
|
)
|
||||||||||
Federal agency mortgage-backed securities
|
$ |
i 49,265
|
$ |
( i 245
|
)
|
$ |
i –
|
$ |
i –
|
$ |
i 49,265
|
$ |
( i 245
|
)
|
||||||||||
Federal agency CMOs
|
i 6,882 | ( i 115 | ) | i – | i – | i 6,882 | ( i 115 | ) | ||||||||||||||||
Federal agency debt
|
i 25,413
|
( i 269
|
)
|
i –
|
i –
|
i 25,413
|
( i 269
|
)
|
||||||||||||||||
Municipal bonds
|
i 2,349
|
( i 23
|
)
|
i –
|
i –
|
i 2,349
|
( i 23
|
)
|
||||||||||||||||
U. S. Treasuries
|
i 17,950
|
( i 218
|
)
|
i –
|
i –
|
i 17,950
|
( i 218
|
)
|
||||||||||||||||
SBA pools
|
i 9,309 | ( i 138 | ) | i – | i – | i 9,309 | ( i 138 | ) | ||||||||||||||||
Total unrealized loss position investment securities
|
$
|
i 111,168
|
$
|
( i 1,008
|
)
|
$
|
i –
|
$
|
i –
|
$
|
i 111,168
|
$
|
( i 1,008
|
)
|
(In thousands)
|
||||||||
Real estate:
|
||||||||
Single family
|
$
|
i 30,038
|
$
|
i 45,372
|
||||
Multi-family
|
i 502,141
|
i 393,704
|
||||||
Commercial real estate
|
i 114,574
|
i 93,193
|
||||||
Church
|
i 15,780
|
i 22,503
|
||||||
Construction
|
i 40,703
|
i 32,072
|
||||||
Commercial – other
|
i 64,841
|
i 46,539
|
||||||
SBA loans (1) | i 3,601 | i 18,837 | ||||||
Consumer
|
i 11
|
i –
|
||||||
Gross loans receivable before deferred loan costs and premiums
|
i 771,689
|
i 652,220
|
||||||
Unamortized net deferred loan costs and premiums
|
i 1,755
|
i 1,526
|
||||||
i 773,444 | i 653,746 | |||||||
Credit and interest marks on purchased loans, net |
( i 1,010 | ) | ( i 1,842 | ) | ||||
Allowance for loan losses
|
( i 4,388
|
)
|
( i 3,391
|
)
|
||||
Loans receivable, net
|
$
|
i 768,046
|
$
|
i 648,513
|
(1)
|
Including Paycheck Protection Program (PPP) loans.
|
For the Year Ended December 31, 2022
|
||||||||||||||||||||||||||||||||
Real Estate
|
||||||||||||||||||||||||||||||||
Single
family
|
Multi‑
family
|
Commercial
real estate
|
Church
|
Construction
|
Commercial
– other
|
Consumer
|
Total
|
|||||||||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||||||||||
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 36
|
)
|
i 616
|
i 213
|
( i 38
|
)
|
i 101
|
i 152
|
( i 11
|
)
|
i 997
|
|||||||||||||||||||||
Recoveries
|
i –
|
i –
|
i –
|
i –
|
i –
|
i –
|
i –
|
i –
|
||||||||||||||||||||||||
Loans charged off
|
i –
|
i –
|
i –
|
i –
|
i –
|
i –
|
i –
|
i –
|
||||||||||||||||||||||||
Ending balance
|
$
|
i 109
|
$
|
i 3,273
|
$
|
i 449
|
$
|
i 65
|
$
|
i 313
|
$
|
i 175
|
$
|
i 4
|
$
|
i 4,388
|
For the Year Ended December 31, 2021
|
||||||||||||||||||||||||||||||||
Real Estate
|
||||||||||||||||||||||||||||||||
Single
family
|
Multi‑
family
|
Commercial
real estate
|
Church
|
Construction
|
Commercial
– other
|
Consumer
|
Total
|
|||||||||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||||||||||
Beginning balance
|
$
|
i 296
|
$
|
i 2,433
|
$
|
i 222
|
$
|
i 237
|
$
|
i 22
|
$
|
i 4
|
$ |
i 1
|
$
|
i 3,215
|
||||||||||||||||
Provision for (recapture of) loan losses
|
( i 151
|
)
|
i 224
|
i 14
|
( i 134
|
)
|
i 190
|
i 19
|
i 14 |
i 176
|
||||||||||||||||||||||
Recoveries
|
i –
|
i –
|
i –
|
i –
|
i –
|
i –
|
i –
|
i –
|
||||||||||||||||||||||||
Loans charged off
|
i –
|
i –
|
i –
|
i –
|
i –
|
i –
|
i –
|
i –
|
||||||||||||||||||||||||
Ending balance
|
$
|
i 145
|
$
|
i 2,657
|
$
|
i 236
|
$
|
i 103
|
$
|
i 212
|
$
|
i 23
|
$ |
i 15
|
$
|
i 3,391
|
(In thousands)
|
||||||||
Real estate:
|
||||||||
Single family
|
$
|
i 68
|
$
|
i 558
|
||||
Commercial real estate
|
i –
|
i 221
|
||||||
Commercial – other
|
i 57
|
i 104
|
||||||
$
|
i 125
|
$
|
i 883
|
(In thousands)
|
||||||||
Balance at the beginning of the period
|
$
|
i 289
|
$
|
i –
|
||||
Additions
|
i –
|
i 346
|
||||||
Accretion
|
( i 262
|
)
|
( i 57
|
)
|
||||
Balance at the end of the period
|
$
|
i 27
|
$
|
i 289
|
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 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
|
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 142
|
i 2,657
|
i 236
|
i 99
|
i 212
|
i 23
|
i 15
|
i 3,384
|
||||||||||||||||||||||||
Total ending allowance balance
|
$
|
i 145
|
$
|
i 2,657
|
$
|
i 236
|
$
|
i 103
|
$
|
i 212
|
$
|
i 23
|
$
|
i 15
|
$
|
i 3,391
|
||||||||||||||||
Loans:
|
||||||||||||||||||||||||||||||||
Loans individually evaluated for impairment
|
$
|
i 65
|
$
|
i 282
|
$
|
i –
|
$
|
i 1,954
|
$
|
i –
|
$
|
i –
|
$
|
i –
|
$
|
i 2,301
|
||||||||||||||||
Loans collectively evaluated for impairment
|
i 32,599
|
i 353,179
|
i 25,507
|
i 9,058
|
i 24,225
|
i 3,124
|
i –
|
i 447,692
|
||||||||||||||||||||||||
Subtotal
|
i 32,664
|
i 353,461
|
i 25,507
|
i 11,012
|
i 24,225
|
i 3,124
|
i –
|
i 449,993
|
||||||||||||||||||||||||
Loans acquired in the Merger | i 12,708 | i 41,769 | i 67,686 | i 11,491 | i 7,847 | i 62,252 | i – | i 203,753 | ||||||||||||||||||||||||
Total ending loans balance
|
$ | i 45,372 | $ | i 395,230 | $ | i 93,193 | $ | i 22,503 | $ | i 32,072 | $ | i 65,376 | $ | i – | $ | i 653,746 |
Unpaid
Principal
Balance
|
Recorded
Investment
|
Allowance
for Loan
Losses
Allocated
|
Unpaid
Principal
Balance
|
Recorded
Investment
|
Allowance
for Loan
Losses
Allocated
|
|||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
With no related allowance recorded:
|
||||||||||||||||||||||||
Multi-family
|
$
|
i –
|
$
|
i –
|
$
|
–
|
$
|
i 282
|
$
|
i 282
|
$
|
–
|
||||||||||||
Church
|
i 1,572
|
i 1,572
|
–
|
i 1,854
|
i 1,854
|
–
|
||||||||||||||||||
With an allowance recorded:
|
||||||||||||||||||||||||
Single family
|
i 57
|
i 57
|
i 3
|
i 65
|
i 65
|
i 3
|
||||||||||||||||||
Church
|
i 83
|
i 83
|
i 4
|
i 100
|
i 100
|
i 4
|
||||||||||||||||||
Total
|
$
|
i 1,712
|
$
|
i 1,712
|
$
|
i 7
|
$
|
i 2,301
|
$
|
i 2,301
|
$
|
i 7
|
For the Year Ended December 31, 2022
|
For the Year Ended December 31, 2021
|
|||||||||||||||
Average
Recorded
Investment
|
Cash Basis
Interest
Income
Recognized
|
Average
Recorded
Investment
|
Cash Basis
Interest
Income
Recognized
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Single family
|
$
|
i 83
|
$
|
i 3
|
$
|
i 66
|
$
|
i 5
|
||||||||
Multi‑family
|
i –
|
i –
|
i 290
|
i 19
|
||||||||||||
Church
|
i 2,381
|
i 103
|
i 2,310
|
i 176
|
||||||||||||
Total
|
$
|
i 2,464
|
$
|
i 106
|
$
|
i 2,666
|
$
|
i 200
|
December 31, 2022 |
||||||||||||||||||||||||
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
|
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 45,372
|
$ |
i 45,372
|
||||||||||||
Multi-family
|
i –
|
i –
|
i –
|
i –
|
i 395,230
|
i 395,230
|
||||||||||||||||||
Commercial real estate
|
i –
|
i 2,423
|
i –
|
i 2,423
|
i 90,770
|
i 93,193
|
||||||||||||||||||
Church
|
i –
|
i –
|
i –
|
i –
|
i 22,503
|
i 22,503
|
||||||||||||||||||
Construction
|
i –
|
i –
|
i –
|
i –
|
i 32,072
|
i 32,072
|
||||||||||||||||||
Commercial - other
|
i –
|
i –
|
i –
|
i –
|
i 46,539
|
i 46,539
|
||||||||||||||||||
SBA loans
|
i –
|
i –
|
i –
|
i –
|
i 18,837
|
i 18,837
|
||||||||||||||||||
Total
|
$ |
i –
|
$
|
i 2,423
|
$
|
i –
|
$ |
i 2,423
|
$ |
i 651,323
|
$ |
i 653,746
|
Loans receivable held for investment:
|
(In thousands)
|
|||||||
Church
|
i 144
|
i 684
|
||||||
Total non-accrual loans
|
$
|
i 144
|
$
|
i 684
|
● |
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, based on 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.
|
December 31, 2022 | ||||||||||||||||||||||||||||
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 – others
|
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 |
Pass
|
Watch
|
Special Mention
|
Substandard
|
Doubtful
|
Loss
|
Total | ||||||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||||||
Single family
|
$
|
i 42,454
|
$ | i 1,343 |
$
|
i 271
|
$
|
i 1,304
|
$
|
i –
|
$
|
i –
|
$ | i 45,372 | ||||||||||||||
Multi-family
|
i 378,141
|
i 7,987
|
i 575
|
i 8,527
|
i –
|
i –
|
i 395,230 | |||||||||||||||||||||
Commercial real estate
|
i 69,257
|
i 7,034 |
i 9,847
|
i 7,055
|
i –
|
i –
|
i 93,193 | |||||||||||||||||||||
Church
|
i 20,021
|
i –
|
i –
|
i 2,482
|
i –
|
i –
|
i 22,503 | |||||||||||||||||||||
Construction
|
i 10,522
|
i 21,550 |
i –
|
i –
|
i –
|
i –
|
i 32,072 | |||||||||||||||||||||
Commercial – others
|
i 33,988
|
i 12,551 |
i –
|
i –
|
i –
|
i –
|
i 46,539 | |||||||||||||||||||||
SBA
|
i 18,665
|
i – |
i 172
|
i –
|
i –
|
i –
|
i 18,837 | |||||||||||||||||||||
Total
|
$
|
i 573,048
|
$
|
i 50,465
|
$
|
i 10,865
|
$
|
i 19,368
|
$
|
i –
|
$
|
i –
|
$ | i 653,746 |
(In thousands)
|
||||||||
Land
|
$
|
i 5,322
|
$
|
i 5,322
|
||||
Office buildings and improvements
|
i 6,303
|
i 5,763
|
||||||
Rights of use assets
|
i 889
|
i 1,120
|
||||||
Furniture, fixtures, and equipment
|
i 2,185
|
i 2,171
|
||||||
i 14,699
|
i 14,376
|
|||||||
Less accumulated depreciation
|
( i 4,408
|
)
|
( i 4,032
|
)
|
||||
Office properties and equipment, net
|
$
|
i 10,291
|
$
|
i 10,344
|
Year Ended
|
Year Ended
December 31, 2021 |
|||||||
Cash paid for amounts included in the measurement of
lease liabilities for operating leases:
|
$
|
i 229
|
$ | i 57 | ||||
ROU assets obtained in exchange for lease liabilities
|
|
i –
|
i 1,119 | |||||
Weighted average remaining lease term in months
|
i 45
|
i 57 | ||||||
Weighted average discount rate
|
i 1.1 | % | i 1.1 | % |
Year ended December 31, 2023
|
$
|
i 236
|
||
Year ended December 31, 2024
|
i 244
|
|||
Year ended December 31, 2025
|
i 252
|
|||
Year ended December 31, 2026
|
i 194
|
|||
Total future minimum lease payments
|
i 926
|
|||
Amounts representing interest
|
( i 20
|
)
|
||
Present value of net future minimum lease payments
|
$
|
i 906
|
Goodwill
|
Core
Deposit
Intangible
|
|||||||
(In thousands)
|
||||||||
Balance at the beginning of the period
|
$
|
i 25,996
|
$
|
i 2,936
|
||||
Additions
|
i –
|
i –
|
||||||
Change in deferred tax estimate | ( i 138 | ) | i – | |||||
Amortization
|
i –
|
( i 435
|
)
|
|||||
Impairment
|
i –
|
i –
|
||||||
Balance at the end of the period
|
$
|
i 25,858
|
$
|
i 2,501
|
(In thousands)
|
||||
Core deposit intangible acquired
|
$
|
i 3,329
|
||
Less: accumulated amortization
|
( i 828
|
)
|
||
$
|
i 2,501
|
(In thousands)
|
||||
2023
|
$
|
i 390
|
||
2024
|
i 336
|
|||
2025
|
i 315
|
|||
2026
|
i 304
|
|||
2027
|
i 291
|
|||
Thereafter
|
i 865
|
|||
$
|
i 2,501
|
|
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)
|
||||||||||||||||
Securities available-for-sale:
|
||||||||||||||||
Federal agency mortgage-backed
|
$ | i – |
$
|
i 74,169
|
$ |
i –
|
$
|
i 74,169
|
||||||||
Federal agency CMO
|
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 | ||||||||||||
Securities available-for-sale:
|
||||||||||||||||
Federal agency mortgage-backed
|
$ | i – |
$
|
i 70,030
|
$ |
i –
|
$
|
i 70,030
|
||||||||
Federal agency CMO
|
i – | i 9,287 | i – | i 9,287 | ||||||||||||
Federal agency debt
|
i –
|
i 37,988
|
i –
|
i 37,988
|
||||||||||||
Municipal bonds |
i – | i 4,915 | i – | i 4,915 | ||||||||||||
U.S. Treasuries |
i 17,951 | i – | i – | i 17,951 | ||||||||||||
SBA pools |
i – | i 16,225 | i – | i 16,225 |
Carrying
|
Fair Value Measurements at December 31, 2022
|
|||||||||||||||||||
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 receivable
|
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
|
||||||||||
Federal Home Loan Bank 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
|
Carrying
|
Fair Value Measurements at December 31, 2021
|
|||||||||||||||||||
Value
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||||||||
(In thousands)
|
||||||||||||||||||||
Financial Assets:
|
||||||||||||||||||||
Cash and cash equivalents
|
$
|
i 231,520
|
$
|
i 231,520
|
$
|
i – |
$
|
i – |
$
|
i 231,520
|
||||||||||
Securities available-for-sale
|
i 156,396
|
i 17,951
|
i 138,445
|
|
i – |
i 156,396
|
||||||||||||||
Loans receivable held for investment
|
i 648,513 |
|
i – | i – |
|
i 623,778 | i 623,778 | |||||||||||||
Accrued interest receivable
|
i 3,372
|
i 19
|
i 1,089
|
i 2,264
|
i 3,372
|
|||||||||||||||
Bank owned life insurance
|
i 3,190
|
i 3,190
|
i –
|
i –
|
i 3,190
|
|||||||||||||||
Financial Liabilities:
|
||||||||||||||||||||
Deposits
|
$
|
i 788,052
|
$
|
i – |
$
|
i 754,181
|
$
|
i – |
$
|
i 754,181
|
||||||||||
Federal Home Loan Bank advances
|
i 85,952
|
|
i – |
i 87,082
|
|
i – |
i 87,082
|
|||||||||||||
Securities sold under agreements to repurchase
|
i 51,960
|
|
i – |
|
i 51,960 |
i –
|
i 51,960
|
|||||||||||||
Note payable |
i 14,000 | i – | i – | i 14,000 | i 14,000 | |||||||||||||||
Accrued interest payable
|
i 119
|
|
i – |
i 119
|
i –
|
i 119
|
(In thousands)
|
||||||||
Interest checking and other demand deposits
|
$
|
i 5,764
|
$
|
i 90,285
|
||||
Non‑interest-bearing demand deposits
|
i 328,577
|
i 220,152
|
||||||
Money market deposits
|
i 155,200
|
i 204,888
|
||||||
Savings deposits
|
i 62,322
|
i 70,750
|
||||||
Certificates of deposit
|
i 135,053
|
i 201,977
|
||||||
Total
|
$
|
i 686,916
|
$
|
i 788,052
|
Maturity
|
Amount
|
|||
(In thousands)
|
||||
2023
|
$
|
i 118,070
|
||
2024
|
i 10,767
|
|||
2025
|
i 729
|
|||
2026
|
i 5,312
|
|||
2027
|
i 167
|
|||
Thereafter
|
i 8
|
|||
$
|
i 135,053
|
At or For the Year Ended
|
||||||||
2021
|
||||||||
(Dollars in thousands)
|
||||||||
FHLB Advances:
|
||||||||
Average balance outstanding during the year
|
$
|
i 61,593
|
$
|
i 100,471
|
||||
Maximum amount outstanding at any month‑end during the year
|
$
|
i 128,823
|
$
|
i 113,580
|
||||
Balance outstanding at end of year
|
$
|
i 128,344
|
$
|
i 85,952
|
||||
Weighted average interest rate at end of year
|
i 3.74
|
%
|
i 1.85
|
%
|
||||
Average cost of advances during the year
|
i 1.74
|
%
|
i 1.96
|
%
|
||||
Weighted average maturity (in months)
|
i 13
|
i 22
|
Amount
|
||||
(In thousands)
|
||||
2023
|
$
|
i 95,500
|
||
2024
|
i –
|
|||
2025
|
i 32,844
|
|||
$
|
i 128,344
|
(Dollars in thousands)
|
||||||||
Allocated to participants
|
|
i 1,057,504
|
|
i 1,087,216
|
||||
Committed to be released
|
i 9,892
|
i 10,064
|
||||||
Suspense shares
|
i 948,488
|
i 521,618
|
||||||
Total ESOP shares
|
|
i 2,015,884
|
|
i 1,618,898
|
||||
Fair value of unearned shares
|
$
|
i 1,015
|
$
|
i 1,454
|
2022
|
2021
|
|||||||
(In thousands)
|
||||||||
Current
|
||||||||
Federal
|
$
|
i 700
|
$
|
i 4
|
||||
State
|
i 218 |
( i 38
|
)
|
|||||
Deferred
|
||||||||
Federal
|
i 944
|
( i 909
|
)
|
|||||
State
|
i 551
|
( i 363
|
)
|
|||||
Change in Valuation Allowance
|
i – | i 369 | ||||||
Total
|
$
|
i 2,413
|
$
|
( i 937
|
)
|
2022
|
2021
|
|||||||
(In thousands)
|
||||||||
Federal statutory rate times financial statement net gain (loss)
|
$
|
i 1,705
|
$
|
( i 1,026
|
)
|
|||
Effect of:
|
||||||||
State taxes, net of federal benefit
|
i 623
|
( i 292
|
)
|
|||||
Earnings from bank owned life insurance
|
( i 9
|
)
|
( i 9
|
)
|
||||
Merger-related expense
|
i –
|
i 195
|
||||||
Low-income housing credits
|
( i 6
|
)
|
( i 58
|
)
|
||||
Change in valuation allowance
|
i – |
i 369 | ||||||
Tax effect of stock-based compensation
|
i 25 | ( i 129 | ) | |||||
Other, net
|
i 75
|
i 13
|
||||||
Total
|
$
|
i 2,413
|
$
|
( i 937
|
)
|
2022
|
2021
|
|||||||
(In thousands)
|
||||||||
Deferred tax assets:
|
||||||||
Allowance for loan losses
|
$
|
i 1,063
|
$
|
i 677
|
||||
Accrued liabilities
|
i 555
|
i 954
|
||||||
State income taxes
|
i 45
|
i 1
|
||||||
Stock compensation
|
i 226
|
i 154
|
||||||
Net operating loss carryforward
|
i 2,616
|
i 3,946
|
||||||
Non‑accrual loan interest
|
i –
|
i 51
|
||||||
Partnership investment
|
i 257
|
i 155
|
||||||
General business credit
|
i 1,962
|
i 2,006
|
||||||
Alternative minimum tax credit
|
i 5
|
i 5
|
||||||
Net unrealized loss on securities available-for-sale
|
i 7,388 | i 464 | ||||||
Right of use liability
|
i 266 | i 319 | ||||||
Fair value adjustment on acquired loans
|
i 291 | i 521 | ||||||
Other
|
i 332
|
i 363
|
||||||
Total deferred tax assets
|
i 15,006
|
i 9,616
|
||||||
Less: valuation allowance
|
( i 369 | ) | ( i 369 | ) | ||||
Total deferred tax assets, net of valuation allowance
|
i 14,637 | i 9,247 | ||||||
Deferred tax liabilities:
|
||||||||
Section 481 adjustments to bad debts
|
( i 7
|
)
|
( i 6
|
)
|
||||
Deferred loan fees/costs
|
( i 776
|
)
|
( i 750
|
)
|
||||
Basis difference on fixed assets
|
( i 723
|
)
|
( i 702
|
)
|
||||
FHLB stock dividends
|
( i 90
|
)
|
( i 98
|
)
|
||||
Nonaccrual loan interest
|
( i 8
|
)
|
i –
|
|||||
Prepaid expenses
|
( i 186
|
)
|
( i 220
|
)
|
||||
Right of use assets
|
( i 256 | ) | ( i 317 | ) | ||||
Core deposit intangibles
|
( i 719 | ) | ( i 1,053 | ) | ||||
Total deferred tax liabilities
|
( i 2,765
|
)
|
( i 3,146
|
)
|
||||
Net deferred tax assets
|
$
|
i 11,872
|
$
|
i 6,101
|
2022
|
||||||||
Number
Outstanding
|
Weighted
Average
Exercise
Price
|
|||||||
Outstanding at beginning of year
|
i 450,000
|
$
|
i 1.62
|
|||||
Granted during the year
|
i –
|
i –
|
||||||
Exercised during the year
|
i –
|
i –
|
||||||
Forfeited or expired during the year
|
( i 200,000
|
)
|
i –
|
|||||
Outstanding at end of year
|
i 250,000
|
$
|
i 1.62
|
|||||
Exercisable at end of year
|
i 250,000
|
$
|
i 1.62
|
Outstanding
|
Exercisable
|
||||||||||||||||||||||||
Grant Date
|
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 1.62
|
i 250,000
|
$
|
i 1.62
|
|||||||||||||||||||
i 250,000
|
i 3.13 years
|
$
|
i 1.62
|
$
|
i –
|
i 250,000
|
$
|
i 1.62
|
$
|
i –
|
Restricted Stock Units
(In thousands)
|
Weighted Average
Grant Date Fair Value
|
Remaining
Contractual Life
(months)
|
||||||||||
Unvested at December 31, 2021
|
i –
|
i –
|
–
|
|||||||||
Granted during period
|
i 495,262
|
$
|
i 1.53
|
i 53
|
||||||||
Vested during period
|
i –
|
i –
|
–
|
|||||||||
Forfeited or expired during period
|
( i 71,668
|
)
|
i –
|
–
|
||||||||
Unvested at December 31, 2022
|
i 423,594
|
$
|
i 1.53
|
i 43
|
Actual
|
Minimum Required to be
Well Capitalized Under
Prompt Corrective
Action Provisions
|
|||||||||||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
|||||||||||||
(Dollars in thousands) |
||||||||||||||||
Community Bank Leverage Ratio
|
$
|
i 181,304
|
i 15.75
|
%
|
$
|
i 103,591
|
i 9.00
|
%
|
||||||||
Community Bank Leverage Ratio
|
$
|
i 98,590
|
i 9.32
|
%
|
$ |
i 89,871
|
i 8.50
|
%
|
2022
|
2021
|
|||||||
(In thousands)
|
||||||||
Commitments to make loans
|
$
|
i 15,160
|
$
|
i 13,384
|
||||
Unfunded construction loans
|
i 27,811 | i 10,352 | ||||||
Unused lines of credit – variable rates
|
i 13,341
|
i 9,326
|
2021
|
||||||||
(In thousands)
|
||||||||
Assets
|
||||||||
Cash and cash equivalents
|
$
|
i 84,015
|
$
|
i 9,305
|
||||
Investment in bank subsidiary
|
i 192,977
|
i 131,540
|
||||||
Other assets
|
i 2,725
|
i 4,068
|
||||||
Total assets
|
$
|
i 279,717
|
$
|
i 144,913
|
||||
Liabilities and stockholders’ equity
|
||||||||
Accrued expenses and other liabilities
|
$ |
i 235
|
$ |
i 583
|
||||
Stockholders’ equity
|
i 279,482
|
i 144,330
|
||||||
Total liabilities and stockholders’ equity
|
$
|
i 279,717
|
$
|
i 144,913
|
2021
|
||||||||
(In thousands)
|
||||||||
Interest income
|
$
|
i 88
|
$
|
i 27
|
||||
Interest expense
|
i –
|
( i 60
|
)
|
|||||
Other expense
|
( i 877
|
)
|
( i 1,982
|
)
|
||||
Income (loss) before income tax and undistributed subsidiary income
|
( i 789
|
)
|
( i 2,015
|
)
|
||||
Income tax benefits
|
i 85
|
i 405
|
||||||
Equity in undistributed subsidiary income (loss)
|
i 6,340
|
( i 2,440
|
)
|
|||||
Net income (loss)
|
$
|
i 5,636
|
$
|
( i 4,050
|
)
|
2021
|
||||||||
(In thousands)
|
||||||||
Cash flows from operating activities
|
||||||||
Net income (loss)
|
$
|
i 5,636
|
$
|
( i 4,050
|
)
|
|||
Adjustments to reconcile net loss to net cash used in operating activities:
|
||||||||
Equity in undistributed subsidiary loss (income)
|
( i 6,340
|
)
|
i 2,440
|
|||||
Change in other assets
|
i 1,196
|
( i 1,333
|
)
|
|||||
Change in accrued expenses and other liabilities
|
( i 348
|
)
|
i 504
|
|||||
Net cash used in operating activities
|
i 144
|
( i 2,439
|
)
|
|||||
Cash flows from investing activities
|
||||||||
Capital distribution to bank subsidiary
|
( i 75,000 | ) | ( i 20,000 | ) | ||||
Dividends from bank subsidiary
|
i –
|
i 700
|
||||||
Net cash (used in) provided by investing activities
|
( i 75,000
|
)
|
( i 19,300
|
)
|
||||
Cash flows from financing activities
|
||||||||
Proceeds from sale of stock
|
i –
|
i 30,837
|
||||||
Issuance of preferred stock
|
i 150,000 | i – | ||||||
Repayments of borrowings
|
i –
|
( i 3,315
|
)
|
|||||
Equity in CFBanc Corp on date of purchase
|
i – | i 3,330 | ||||||
Increase in unreleased ESOP shares
|
( i 500 | ) | i – | |||||
Proceeds from repayment of ESOP loan
|
i 66
|
i 66
|
||||||
Net cash used in financing activities
|
i 149,566
|
i 30,918
|
||||||
Net change in cash and cash equivalents
|
i 74,710
|
i 9,179
|
||||||
Beginning cash and cash equivalents
|
i 9,305
|
i 126
|
||||||
Ending cash and cash equivalents
|
$
|
i 84,015
|
$
|
i 9,305
|
2022
|
2021
|
|||||||
(Dollars in thousands,
except share and per share)
|
||||||||
Net income (loss) attributable to Broadway Financial Corporation
|
$
|
i 5,636
|
$
|
( i 4,050
|
)
|
|||
Less net income (loss) attributable to participating securities
|
i 32
|
i 2
|
||||||
Income (loss) available to common stockholders
|
$
|
i 5,604
|
$
|
( i 4,052
|
)
|
|||
Weighted average common shares outstanding for basic earnings (loss) per common share
|
i 72,409,020
|
i 60,151,556
|
||||||
Add: dilutive effects of unvested restricted stock awards
|
i 413,892
|
i –
|
||||||
Add: dilutive effects of assumed exercise of stock options
|
i – | i – | ||||||
Weighted average common shares outstanding for diluted earnings (loss) per common share
|
i 72,822,912
|
i 60,151,556
|
||||||
Earnings (loss) per common share - basic
|
$
|
i 0.08
|
$
|
( i 0.07
|
)
|
|||
Earnings (loss) per common share - diluted
|
$
|
i 0.08
|
$
|
( i 0.07
|
)
|
This ‘10-K’ Filing | Date | Other Filings | ||
---|---|---|---|---|
9/30/28 | ||||
12/31/26 | ||||
12/31/25 | ||||
12/31/24 | ||||
3/17/24 | ||||
12/31/23 | ||||
5/1/23 | ||||
Filed on: | 4/11/23 | |||
4/10/23 | ||||
3/30/23 | ||||
3/27/23 | ||||
3/23/23 | ||||
1/1/23 | ||||
For Period end: | 12/31/22 | NT 10-K | ||
12/15/22 | ||||
6/8/22 | 8-K | |||
6/7/22 | 8-K | |||
4/15/22 | 10-K | |||
1/1/22 | ||||
12/31/21 | 10-K, 10-K/A, NT 10-K | |||
11/18/21 | 8-K | |||
11/17/21 | ||||
10/1/21 | ||||
9/17/21 | 8-K | |||
4/6/21 | ||||
4/5/21 | 8-K | |||
4/1/21 | 3, 4, 8-K, 8-K/A | |||
3/31/21 | 10-K, 10-Q | |||
2/19/21 | 8-K | |||
1/19/21 | S-4 | |||
1/14/21 | 425, 8-K, 8-K/A | |||
12/31/20 | 10-K, 10-K/A | |||
11/23/20 | 425, 8-K | |||
9/30/20 | 10-Q | |||
8/26/20 | 425, 8-K | |||
8/25/20 | 8-K | |||
8/24/20 | 8-K | |||
6/30/20 | 10-Q, SC 13G/A | |||
4/1/20 | ||||
3/26/20 | ||||
1/14/20 | ||||
11/15/19 | ||||
10/16/19 | ||||
9/11/19 | 8-A12B, 8-K | |||
9/10/19 | 8-K | |||
3/29/19 | 10-K | |||
2/27/19 | 4 | |||
7/25/18 | 8-K, DEF 14A | |||
5/1/17 | 4/A, 8-K | |||
3/27/17 | 10-K, 8-K | |||
3/22/17 | 8-K | |||
12/21/16 | 8-K | |||
12/19/16 | ||||
8/12/16 | 10-Q | |||
3/28/16 | 10-K | |||
2/24/16 | 4, 8-K | |||
10/16/14 | 4, 8-K | |||
3/17/04 | ||||
9/11/01 | ||||
List all Filings |