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As Of Filer Filing For·On·As Docs:Size Issuer Filing Agent 11/14/22 Broadway Financial Corp./DE 10-Q 9/30/22 79:14M Broadridge Fin’l So… Inc |
Document/Exhibit Description Pages Size 1: 10-Q Quarterly Report HTML 3.26M 2: EX-31.1 Certification -- §302 - SOA'02 HTML 30K 3: EX-31.2 Certification -- §302 - SOA'02 HTML 30K 4: EX-32.1 Certification -- §906 - SOA'02 HTML 23K 5: EX-32.2 Certification -- §906 - SOA'02 HTML 23K 11: R1 Document and Entity Information HTML 81K 12: R2 Consolidated Statements of Financial Condition HTML 132K 13: R3 Consolidated Statements of Financial Condition HTML 63K (Parenthetical) 14: R4 Consolidated Statements of Operations and HTML 150K Comprehensive Income (Loss) 15: R5 Consolidated Statements of Cash Flows HTML 184K 16: R6 Consolidated Statements of Changes in HTML 102K Stockholders' Equity 17: R7 Basis of Financial Statement Presentation HTML 35K 18: R8 Business Combination HTML 117K 19: R9 Earnings Per Share of Common Stock HTML 56K 20: R10 Securities HTML 153K 21: R11 Loans Receivable Held for Investment HTML 622K 22: R12 Goodwill and Intangible Assets HTML 45K 23: R13 Borrowings HTML 37K 24: R14 Fair Value HTML 149K 25: R15 Stock-based Compensation HTML 62K 26: R16 ESOP Plan HTML 36K 27: R17 Stockholders' Equity and Regulatory Matters HTML 47K 28: R18 Income Taxes HTML 32K 29: R19 Concentration of Credit Risk HTML 26K 30: R20 Basis of Financial Statement Presentation HTML 39K (Policies) 31: R21 Business Combination (Tables) HTML 117K 32: R22 Earnings Per Share of Common Stock (Tables) HTML 53K 33: R23 Securities (Tables) HTML 153K 34: R24 Loans Receivable Held for Investment (Tables) HTML 619K 35: R25 Goodwill and Intangible Assets (Tables) HTML 47K 36: R26 Fair Value (Tables) HTML 138K 37: R27 Stock-based Compensation (Tables) HTML 58K 38: R28 ESOP Plan (Tables) HTML 33K 39: R29 Stockholders' Equity and Regulatory Matters HTML 37K (Tables) 40: R30 Business Combination, Summary (Details) HTML 55K 41: R31 Business Combination, Assets Acquired and HTML 104K Liabilities Assumed (Details) 42: R32 Business Combination, Contractual Amounts Due, HTML 36K Expected Cash Flows to Be Collected, Interest Component, and Fair Value of Loans Acquired (Details) 43: R33 Business Combination, Fair Value of PCI Loans HTML 38K (Details) 44: R34 Business Combination, Unaudited pro forma HTML 32K information (Details) 45: R35 Earnings Per Share of Common Stock (Details) HTML 73K 46: R36 Securities, Available-for-Sale Investment HTML 52K Securities Portfolios (Details) 47: R37 Securities, Additional Disclosure (Details) HTML 44K 48: R38 Securities, Contractual Maturities (Details) HTML 81K 49: R39 Securities, Unrealized Loss Position (Details) HTML 65K 50: R40 Loans Receivable Held for Investment, Summary HTML 86K (Details) 51: R41 Loans Receivable Held for Investment, Purchased HTML 55K Credit Impaired (PCI) Loans (Details) 52: R42 Loans Receivable Held for Investment, Activity in HTML 66K Allowance for Loan Losses by Loan Type (Details) 53: R43 Loans Receivable Held for Investment, Allowance HTML 101K for Loan Losses and Recorded Investment in Loans by Type of Loans and Based on Impairment Method (Details) 54: R44 Loans Receivable Held for Investment, Loans HTML 50K Individually Evaluated for Impairment by Loan Type (Details) 55: R45 Loans Receivable Held for Investment, Average of HTML 44K Loans Individually Evaluated for Impairment by Loan Type and Related Interest Income (Details) 56: R46 Loans Receivable Held for Investment, Aging of HTML 103K Recorded Investment in Past Due Loans by Loan Type (Details) 57: R47 Loans Receivable Held for Investment, Recorded HTML 39K Investment in Non-accrual Loans by Loan Type (Details) 58: R48 Loans Receivable Held for Investment, Troubled HTML 38K Debt Restructurings (TDRs) (Details) 59: R49 Loans Receivable Held for Investment, Credit HTML 111K Quality Indicators (Details) 60: R50 Goodwill and Intangible Assets, Goodwill and Core HTML 46K Deposit Intangibles (Details) 61: R51 Goodwill and Intangible Assets, Components of HTML 32K Carrying Amount of Core Deposit Intangible (Details) 62: R52 Goodwill and Intangible Assets, Estimated HTML 40K Amortization Expense (Details) 63: R53 Borrowings, Liabilities Securities Sold under HTML 40K Agreements to Repurchase (Details) 64: R54 Borrowings, Other Borrowings (Details) HTML 56K 65: R55 Fair Value, Assets Measured on Recurring Basis HTML 71K (Details) 66: R56 Fair Value, Assets Measured on Non-Recurring Basis HTML 27K (Details) 67: R57 Fair Value, Fair Values of Financial Instruments HTML 70K (Details) 68: R58 Stock-based Compensation, Long-Term Incentive Plan HTML 57K (Details) 69: R59 Stock-based Compensation, Stock Option Activity HTML 57K (Details) 70: R60 Stock-based Compensation, Options Outstanding and HTML 43K Exercisable (Details) 71: R61 ESOP Plan (Details) HTML 51K 72: R62 Stockholders' Equity and Regulatory Matters HTML 60K (Details) 73: R63 Income Taxes (Details) HTML 26K 74: R64 Concentration of Credit Risk (Details) HTML 34K 77: XML IDEA XML File -- Filing Summary XML 143K 75: XML XBRL Instance -- brhc10044096_10q_htm XML 4.65M 76: EXCEL IDEA Workbook of Financial Reports XLSX 167K 7: EX-101.CAL XBRL Calculations -- byfc-20220930_cal XML 300K 8: EX-101.DEF XBRL Definitions -- byfc-20220930_def XML 1.20M 9: EX-101.LAB XBRL Labels -- byfc-20220930_lab XML 2.29M 10: EX-101.PRE XBRL Presentations -- byfc-20220930_pre XML 1.47M 6: EX-101.SCH XBRL Schema -- byfc-20220930 XSD 203K 78: JSON XBRL Instance as JSON Data -- MetaLinks 491± 744K 79: ZIP XBRL Zipped Folder -- 0001140361-22-041488-xbrl Zip 486K
i ☒ |
QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
i ☐ |
TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
i Delaware
|
i 95-4547287
|
|
(State or other jurisdiction of
incorporation or organization)
|
(I.R.S. Employer
Identification No.)
|
i 4601 Wilshire Boulevard, Suite 150
i Los Angeles, i California
|
i 90010
|
|
(Address of principal executive offices)
|
(Zip Code)
|
Title of each class:
|
Trading Symbol(s)
|
Name of each exchange on which registered:
|
||
i Common Stock, par value $0.01 per share
(including attached preferred stock purchase rights)
|
i BYFC
|
Nasdaq Capital Market
|
Large accelerated filer
|
☐
|
Accelerated filer
|
☐
|
i Non-accelerated filer
|
☒
|
Smaller reporting company
|
i ☒ |
Emerging growth company
|
i ☐
|
|
|
Page
|
|
PART I.
|
FINANCIAL STATEMENTS
|
|
|
|
|
|
|
|
Item 1.
|
Consolidated Financial Statements (Unaudited)
|
|
|
|
|
|
|
|
1
|
|
|
|
|
|
|
|
2
|
|
|
|
|
|
|
|
3
|
|
|
|
|
|
|
|
4
|
|
|
|
|
|
|
|
6
|
|
|
|
|
|
|
Item 2.
|
23
|
|
|
|
|
|
|
Item 3.
|
35
|
|
|
|
|
|
|
Item 4.
|
35
|
|
|
|
|
|
PART II.
|
OTHER INFORMATION
|
|
|
|
|
|
|
|
Item 1.
|
36 | |
|
|
|
|
|
Item 1A.
|
36
|
|
|
|
|
|
|
Item 2.
|
36 | |
|
|
|
|
|
Item 3.
|
36
|
|
|
|
|
|
|
Item 4.
|
36
|
|
|
|
|
|
|
Item 5.
|
36
|
|
|
|
|
|
|
Item 6.
|
36 | |
|
|
|
|
|
37
|
(Unaudited)
|
||||||||
Assets:
|
||||||||
Cash and due from banks
|
$
|
i 12,630
|
$
|
i 38,418
|
||||
Interest-bearing deposits in other banks
|
i 39,587
|
i 193,102
|
||||||
Cash and cash equivalents
|
i 52,217
|
i 231,520
|
||||||
Securities available-for-sale, at fair value
|
i 332,745
|
i 156,396
|
||||||
Loans receivable held for investment, net of allowance of $ i 3,983 and $ i 3,391
|
i 722,685
|
i 648,513
|
||||||
Accrued interest receivable
|
i 3,467
|
i 3,372
|
||||||
Federal Home Loan Bank (FHLB) stock
|
i 1,470
|
i 2,573
|
||||||
Federal Reserve Bank (FRB) stock
|
i 697 |
i 693 |
||||||
Office properties and equipment, net
|
i 10,530
|
i 10,344
|
||||||
Bank owned life insurance
|
i 3,222
|
i 3,190
|
||||||
Deferred tax assets, net
|
i 11,871
|
i 6,101
|
||||||
Core deposit intangible, net
|
i 2,610 |
i 2,936 |
||||||
Goodwill
|
i 25,858 |
i 25,996 |
||||||
Other assets
|
i 2,262
|
i 1,871
|
||||||
Total assets
|
$
|
i 1,169,634
|
$
|
i 1,093,505
|
||||
Liabilities and stockholders’ equity
|
||||||||
Liabilities:
|
||||||||
Deposits
|
$
|
i 768,511
|
$
|
i 788,052
|
||||
Securities sold under agreements to repurchase
|
i 65,407 | i 51,960 | ||||||
FHLB advances
|
i 32,888
|
i 85,952
|
||||||
Notes payable
|
i 14,000 |
i 14,000 |
||||||
Accrued expenses and other liabilities
|
i 11,246
|
i 12,441
|
||||||
Total liabilities
|
i 892,052
|
i 952,405
|
||||||
Cumulative Perpetual Preferred stock, Series A; authorized i i 3,000 /
shares at September 30, 2022 and December 31, 2021; issued and outstanding i i no /
shares at September 30, 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 September 30, 2022 and i no
shares as of December 31, 2021; issued and outstanding i i 150,000 /
shares at September 30, 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 September 30, 2022 and December 31, 2021;
issued i 50,806,999 shares at September 30, 2022 and i 46,291,852
shares at December 31, 2021;
outstanding i 48,189,173 shares at September 30, 2022 and i 43,674,026
shares
at December 31, 2021
|
i 508
|
i 463
|
||||||
Common stock, Class B, $ i i 0.01 /
par value, non-voting; authorized i i 15,000,000 /
shares at September 30, 2022 and December 31, 2021; issued and outstanding i i i i 11,404,618 / / /
shares at September 30, 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 September 30, 2022 and December 31, 2021; issued and outstanding i i 13,842,710 /
at September 30, 2022 and i i 16,689,775 /
shares at December 31, 2021
|
i 139
|
i 167
|
||||||
Additional paid-in capital
|
i 143,457
|
i 140,289
|
||||||
Retained earnings
|
i 7,788
|
i 3,673
|
||||||
Unearned Employee Stock Ownership Plan (ESOP) shares
|
( i 781
|
)
|
( i 829
|
)
|
||||
Accumulated other comprehensive loss, net of tax
|
( i 18,468
|
)
|
( i 551
|
)
|
||||
|
( i 5,326
|
)
|
( i 5,326
|
)
|
||||
Total Broadway Financial Corporation and Subsidiary stockholders’ equity
|
i 277,431
|
i 141,000
|
||||||
Non-controlling interest
|
i 151 | i 100 | ||||||
Total liabilities and stockholders’ equity
|
$
|
i 1,169,634
|
$
|
i 1,093,505
|
Three Months Ended
September 30,
|
Nine
Months Ended
|
|||||||||||||||
2021
|
2022
|
2021
|
||||||||||||||
Interest income:
|
||||||||||||||||
Interest and fees on loans receivable
|
$
|
i 6,520
|
$
|
i 6,296
|
$
|
i 20,603
|
$
|
i 16,240
|
||||||||
Interest on available-for-sale securities
|
i 2,069
|
i 457
|
i 3,416
|
i 953
|
||||||||||||
Other interest income
|
i 639
|
i 156
|
i 1,589
|
i 377
|
||||||||||||
Total interest income
|
i 9,228
|
i 6,909
|
i 25,608
|
i 17,570
|
||||||||||||
Interest expense:
|
||||||||||||||||
Interest on deposits
|
i 474
|
i 446
|
i 1,173
|
i 1,306
|
||||||||||||
Interest on borrowings
|
i 146
|
i 472
|
i 617
|
i 1,607
|
||||||||||||
Total interest expense
|
i 620
|
i 918
|
i 1,790
|
i 2,913
|
||||||||||||
Net interest income
|
i 8,608
|
i 5,991
|
i 23,818
|
i 14,657
|
||||||||||||
Loan loss provision
|
i 1,021
|
i 365
|
i 592
|
i 446
|
||||||||||||
Net interest income after loan loss provision
|
i 7,587
|
i 5,626
|
i 23,226
|
i 14,211
|
||||||||||||
Non-interest income:
|
||||||||||||||||
Service charges
|
i 21
|
i 76
|
i 106
|
i 205
|
||||||||||||
CDFI Grant
|
i –
|
i 217
|
i –
|
i 2,043
|
||||||||||||
Other
|
i 344
|
i 316
|
i 801
|
i 676
|
||||||||||||
Total non-interest income
|
i 365
|
i 609
|
i 907
|
i 2,924
|
||||||||||||
Non-interest expense:
|
||||||||||||||||
Compensation and benefits
|
i 3,440
|
i 3,334
|
i 10,366
|
i 11,543
|
||||||||||||
Occupancy expense
|
i 367
|
i 392
|
i 1,209
|
i 1,327
|
||||||||||||
Information services
|
i 732
|
i 787
|
i 2,364
|
i 1,594
|
||||||||||||
Professional services
|
i 861
|
i 616
|
i 2,183
|
i 3,068
|
||||||||||||
Supervisory costs
|
i 4
|
i 139
|
i 261
|
i 386
|
||||||||||||
Office services and supplies
|
i 38
|
i 65
|
i 153
|
i 219
|
||||||||||||
Corporate insurance
|
i 49
|
i 47
|
i 164
|
i 301
|
||||||||||||
Amortization of core deposit intangible
|
i 109
|
i 131
|
i 326
|
i 262
|
||||||||||||
Other
|
i 472
|
i 467
|
i 1,272
|
i 1,279
|
||||||||||||
Total non-interest expense
|
i 6,072
|
i 5,978
|
i 18,298
|
i 19,979
|
||||||||||||
Income (loss) before income taxes
|
i 1,880
|
i 257
|
i 5,835
|
( i 2,844
|
)
|
|||||||||||
Income tax expense (benefit)
|
i 534
|
i 51
|
i 1,654
|
( i 297
|
)
|
|||||||||||
Net income (loss)
|
$
|
i 1,346
|
$
|
i 206
|
$
|
i 4,181
|
$
|
( i 2,547
|
)
|
|||||||
Less: Net income attributable to non-controlling interest
|
i 28
|
i 24
|
i 51
|
i 57
|
||||||||||||
Net income (loss) attributable to Broadway Financial Corporation
|
$
|
i 1,318
|
$
|
i 182
|
$
|
i 4,130
|
$
|
( i 2,604
|
)
|
|||||||
Other comprehensive income, net of tax:
|
||||||||||||||||
Unrealized gains (losses) on securities available-for-sale arising during the period
|
$
|
( i 11,949
|
)
|
$
|
( i 640
|
)
|
$
|
( i 25,281
|
)
|
$
|
i 224
|
|||||
Income tax (benefit) expense
|
( i 3,382
|
)
|
( i 180
|
)
|
( i 7,364
|
)
|
i 63
|
|||||||||
Other comprehensive income (loss), net of tax
|
( i 8,567
|
)
|
( i 460
|
)
|
( i 17,917
|
)
|
i 161
|
|||||||||
Comprehensive income (loss)
|
$
|
( i 7,249
|
)
|
$
|
( i 278
|
)
|
$
|
( i 13,787
|
)
|
$
|
( i 2,443
|
)
|
||||
Earnings (loss) per common share-basic
|
$
|
i 0.02
|
$
|
i –
|
$
|
i 0.06
|
$
|
( i 0.05
|
)
|
|||||||
Earnings (loss) per common share-diluted
|
$
|
i 0.02
|
$
|
i –
|
$
|
i 0.06
|
$
|
( i 0.05
|
)
|
Nine Months Ended
September 30, |
||||||||
2021
|
||||||||
(In thousands)
|
||||||||
Cash flows from operating activities:
|
||||||||
Net income (loss)
|
$
|
i 4,181
|
$
|
( i 2,547
|
)
|
|||
Adjustments to reconcile net income (loss) to net cash used in
operating activities:
|
||||||||
Loan loss provision
|
i 592
|
i 446
|
||||||
Depreciation
|
i 630
|
i 198
|
||||||
Net change of deferred loan origination costs
|
i 38
|
i 457
|
||||||
Net amortization of premiums & discounts on
available-for-sale securities
|
i 20
|
i 705
|
||||||
Amortization of investment in affordable housing limited
partnership
|
i –
|
i 39
|
||||||
Amortization of purchase accounting marks on loans
|
( i 647
|
)
|
i 56
|
|||||
Amortization of core deposit intangible
|
i 326
|
i 262
|
||||||
Director compensation expense-common stock
|
i 84
|
i 46
|
||||||
Accretion of premium on FHLB advances
|
( i 64
|
)
|
( i 26
|
)
|
||||
Stock-based compensation expense
|
i 93
|
i 368
|
||||||
Valuation allowance on deferred tax asset
|
i –
|
i 370
|
||||||
ESOP compensation expense
|
i 56
|
i 81
|
||||||
Earnings on bank owned life insurance
|
( i 32
|
)
|
( i 32
|
)
|
||||
Change in assets and liabilities:
|
||||||||
Net change in deferred taxes
|
i 1,732
|
( i 1,162
|
)
|
|||||
Net change in accrued interest receivable
|
( i 95 | ) | i 274 |
|||||
Net change in other assets
|
( i 391
|
)
|
i 765
|
|||||
Net change in accrued expenses and other liabilities
|
( i 1,195
|
)
|
i 3,669
|
|||||
Net cash provided by operating activities
|
i 5,328
|
i 3,969
|
||||||
Cash flows from investing activities:
|
||||||||
Cash acquired in merger
|
i –
|
i 84,745
|
||||||
Net change in loans receivable held for investment
|
( i 74,155
|
)
|
( i 57,143
|
)
|
||||
Principal payments on available-for-sale securities
|
i 13,850
|
i 12,662
|
||||||
Purchase of available-for-sale securities
|
( i 215,500
|
)
|
( i 10,098
|
)
|
||||
Purchase of FHLB stock
|
( i 332
|
)
|
( i 152
|
)
|
||||
Proceeds from redemption of FHLB stock
|
i 1,431
|
i 1,243
|
||||||
Purchase of office properties and equipment
|
( i 816
|
)
|
( i 119
|
)
|
||||
Proceeds from disposals of office properties and equipment
|
i –
|
i 3
|
||||||
Net cash (used in) provided by investing activities
|
( i 275,522
|
)
|
i 31,141
|
|||||
Cash flows from financing activities:
|
||||||||
Net change in deposits
|
( i 19,541
|
)
|
i 80,294
|
|||||
Net change in securities sold under agreements to repurchase
|
i 13,447
|
( i 7,069
|
)
|
|||||
Proceeds from sale of stock (net of costs)
|
i –
|
i 30,837
|
||||||
Proceeds from issuance of preferred stock
|
i 150,000
|
i –
|
||||||
Dividends paid on preferred stock
|
( i 15
|
)
|
( i 30
|
)
|
||||
Distributions to non-controlling interest
|
i –
|
( i 165
|
)
|
|||||
Proceeds from FHLB advances
|
i –
|
i 5,000
|
||||||
Repayments of FHLB advances
|
( i 53,000
|
)
|
( i 27,570
|
)
|
||||
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 90,891
|
i 77,468
|
||||||
Net change in cash and cash equivalents
|
( i 179,303
|
)
|
i 112,578
|
|||||
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 52,217
|
$
|
i 208,687
|
||||
Supplemental disclosures of cash flow
information:
|
||||||||
Cash paid for interest
|
$
|
i 1,758
|
$
|
i 2,424
|
||||
Cash paid for income taxes
|
i 42
|
i 454
|
||||||
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
|
)
|
|||||
Preferred stock
|
i –
|
( i 3,000
|
)
|
|||||
Common stock
|
i –
|
( i 63,257
|
)
|
Three-Month Period Ended September 30, 2022 and 2021
|
||||||||||||||||||||||||||||||||||||||||
Preferred Stock Non-Voting
|
Common
Stock Voting |
Common
Stock Non-Voting |
Additional
Paid‑in Capital |
Accumulated Other Comprehensive Income (Loss)
|
Retained Earnings
|
Unearned
ESOP Shares |
Treasury
Stock |
Non-Controlling Interest
|
Total
Stockholders’ Equity |
|||||||||||||||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||||||||||||||||||
Balance at July 1, 2022
|
$
|
i 150,000
|
$
|
i 504
|
$
|
i 257
|
$
|
i 143,427
|
$
|
( i 9,901
|
)
|
$
|
i 6,470
|
$
|
( i 797
|
)
|
$
|
( i 5,326
|
)
|
$
|
i 123
|
$
|
i 284,757
|
|||||||||||||||||
Net income
|
i –
|
i –
|
i –
|
i –
|
i –
|
i 1,318
|
i –
|
i –
|
i 28 | i 1,346 | ||||||||||||||||||||||||||||||
Release of unearned ESOP shares
|
i – | i – | i – | ( i 5 | ) | i – | i – | i 16 | i – | i – | i 11 | |||||||||||||||||||||||||||||
Restricted stock compensation expense
|
i – | i – | i – | i 35 | i – | i – | i – | i – | i – | i 35 | ||||||||||||||||||||||||||||||
Conversion of non-voting shares into voting shares
|
i – | i 4 | ( i 4 | ) | i – | i – | i – | i – | i – | i – | i – | |||||||||||||||||||||||||||||
Other comprehensive loss, net of tax
|
i – | i – | i – | i – | ( i 8,567 | ) | i – | i – | i – | i – | ( i 8,567 | ) | ||||||||||||||||||||||||||||
Balance at September 30, 2022
|
$
|
i 150,000
|
$
|
i 508
|
$
|
i 253
|
$
|
i 143,457
|
$
|
( i 18,468
|
)
|
$
|
i 7,788
|
$
|
( i 781
|
)
|
$
|
( i 5,326
|
)
|
$
|
i 151
|
$
|
i 277,582
|
|||||||||||||||||
Balance at July 1, 2021
|
$
|
i 3,000
|
$
|
i 462
|
$
|
i 281
|
$
|
i 140,125
|
$
|
i 785
|
$
|
i 4,997
|
$
|
( i 861
|
)
|
$
|
( i 5,326
|
)
|
$
|
i 32
|
$
|
i 143,495
|
||||||||||||||||||
Net income
|
i –
|
i –
|
i –
|
i –
|
i –
|
i 182
|
i –
|
i –
|
i 24 |
i 206
|
||||||||||||||||||||||||||||||
Preferred shares issued in business combination
|
i – |
i –
|
i –
|
i –
|
i –
|
( i 30
|
)
|
i –
|
i –
|
i – |
( i 30
|
)
|
||||||||||||||||||||||||||||
Release of unearned ESOP shares
|
i – | i – | i – | i 17 | i – | i – | i 17 | i – | i – | i 34 | ||||||||||||||||||||||||||||||
Common stock cancelled for payment of tax withholding
|
i – | i – | i – | ( i 66 | ) | i – | i – | i – | i – | i – | ( i 66 | ) | ||||||||||||||||||||||||||||
Restricted stock compensation expense
|
i – | i 1 | i – | i 199 | i – | i – | i – | i – | i – | i 200 | ||||||||||||||||||||||||||||||
Other comprehensive income, net of tax
|
i – | i – | i – | i – | ( i 460 | ) | i – | i – | i – | i – | ( i 460 | ) | ||||||||||||||||||||||||||||
Balance at September 30, 2021
|
$
|
i 3,000
|
$
|
i 463
|
$
|
i 281
|
$
|
i 140,275
|
$
|
i 325
|
$
|
i 5,149
|
$
|
( i 844
|
)
|
$
|
( i 5,326
|
)
|
$ | i 56 |
$
|
i 143,379
|
Nine-Month Period Ended September 30, 2022 and 2021
|
||||||||||||||||||||||||||||||||||||||||
Preferred Stock Non-Voting
|
Common
Stock Voting |
Common
Stock Non-Voting |
Additional
Paid‑in Capital |
Accumulated Other Comprehensive Income (Loss)
|
Retained Earnings
|
Unearned ESOP Shares
|
Treasury
Stock |
Non-Controlling Interest
|
Total
Stockholders’ Equity |
|||||||||||||||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2022
|
$
|
i 3,000
|
$
|
i 463
|
$
|
i 281
|
$
|
i 140,289
|
$
|
( i 551
|
)
|
$
|
i 3,673
|
$
|
( i 829
|
)
|
$
|
( i 5,326
|
)
|
$
|
i 100
|
$
|
i 141,100
|
|||||||||||||||||
Net income
|
i –
|
i –
|
i –
|
i –
|
i –
|
i 4,130
|
i –
|
i –
|
i 51
|
i 4,181
|
||||||||||||||||||||||||||||||
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 8
|
i –
|
i –
|
i 48
|
i –
|
i –
|
i 56
|
||||||||||||||||||||||||||||||
Restricted stock compensation expense
|
i –
|
i 5
|
i –
|
i 88
|
i –
|
i –
|
i –
|
i –
|
i –
|
i 93
|
||||||||||||||||||||||||||||||
Stock awarded to directors
|
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 28
|
( i 28
|
)
|
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 17,917
|
)
|
i –
|
i –
|
i –
|
i –
|
( i 17,917
|
)
|
||||||||||||||||||||||||||||
Balance at September 30, 2022
|
$
|
i 150,000
|
$
|
i 508
|
$
|
i 253
|
$
|
i 143,457
|
$
|
( i 18,468
|
)
|
$
|
i 7,788
|
$
|
( i 781
|
)
|
$
|
( i 5,326
|
)
|
$
|
i 151
|
$
|
i 277,582
|
|||||||||||||||||
Balance at January 1, 2021
|
$
|
i –
|
$
|
i 219
|
$
|
i 87
|
$
|
i 46,851
|
$
|
i 164
|
$
|
i 7,783
|
$
|
( i 893
|
)
|
$
|
( i 5,326
|
)
|
$ | i – |
$
|
i 48,885
|
||||||||||||||||||
Net income (loss)
|
i –
|
i –
|
i –
|
i –
|
i –
|
( i 2,604
|
)
|
i –
|
i –
|
i 57 |
( i 2,547
|
)
|
||||||||||||||||||||||||||||
Preferred shares issued in business combination
|
i 3,000
|
i –
|
i –
|
i –
|
i –
|
i –
|
i –
|
i –
|
i – |
i 3,000
|
||||||||||||||||||||||||||||||
Dividends paid on preferred stock
|
i – | i – | i – | i – | i – | ( i 30 | ) | i – | i – | i – | ( i 30 | ) | ||||||||||||||||||||||||||||
Common shares issued in business combination
|
i –
|
i 140
|
i 114
|
i 62,839
|
i –
|
i –
|
i –
|
i –
|
i 164 |
i 63,257
|
||||||||||||||||||||||||||||||
Shares 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
|
||||||||||||||||||||||||||||||
Release of unearned ESOP shares
|
i – | i – | i – | i 32 | i – | i – | i 49 | i – | i – | i 81 | ||||||||||||||||||||||||||||||
Restricted stock compensation expense
|
i – | i – | i – | i 361 | i – | i – | i – | i – | i – | i 361 | ||||||||||||||||||||||||||||||
Stock awarded to directors
|
i – | i 1 | i – | i 45 | i – | i – | i – | i – | i – | i 46 | ||||||||||||||||||||||||||||||
Stock option compensation expense
|
i – | i – | i – | i 7 | i – | i – | i – | i – | i – | i 7 | ||||||||||||||||||||||||||||||
Common stock cancelled for payment of tax withholding
|
i – | ( i 2 | ) | i – | ( i 512 | ) | i – | i – | i – | i – | i – | ( i 514 | ) | |||||||||||||||||||||||||||
Payment to non-controlling interest
|
i – | i – | i – | i – | i – | i – | i – | i – | ( i 165 | ) | ( i 165 | ) | ||||||||||||||||||||||||||||
Other comprehensive income, net of tax
|
i – | i – | i – | i – | i 161 | i – | i – | i – | i – | i 161 | ||||||||||||||||||||||||||||||
Balance at September 30, 2021
|
$
|
i 3,000
|
$
|
i 463
|
$
|
i 281
|
$
|
i 140,275
|
$
|
i 325
|
$
|
i 5,149
|
$
|
( i 844
|
)
|
$
|
( i 5,326
|
)
|
$ | i 56 |
$
|
i 143,379
|
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 1,608
|
)
|
( i 718
|
)
|
|||||||
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 4,154
|
$
|
i 475,157
|
||||||
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 3,994
|
$
|
i 40,261
|
||||||
Consideration paid
|
$
|
i 66,257
|
||||||||||
Goodwill recognized
|
$
|
i 25,996
|
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
|
||
Nonaccretable difference (cash flows not expected to be collected)
|
( i 634
|
)
|
||
Expected cash flows
|
i 1,191
|
|||
Accretable yield
|
( i 346
|
)
|
||
Fair value of acquired loans
|
$
|
i 845
|
Three Months Ended | Nine Months Ended |
|||||||
September 30, 2021 |
September 30, 2021 |
|||||||
|
(Dollars in thousands except per share amounts)
|
|||||||
Net interest income
|
$
|
i 5,988
|
$
|
i 17,013
|
||||
Net income (loss)
|
i 179
|
( i 3,390
|
)
|
|||||
|
||||||||
Basic earnings per share
|
$
|
i –
|
$
|
( i 0.05
|
)
|
|||
Diluted earnings per share
|
$
|
i –
|
$
|
( i 0.05
|
)
|
Three Months Ended
September 30,
|
Nine Months Ended
|
|||||||||||||||
2021
|
2022 | 2021 | ||||||||||||||
(Dollars in thousands, except share and per share data)
|
||||||||||||||||
Net income (loss) attributable to Broadway Financial Corporation
|
$
|
i 1,318
|
$
|
i 182
|
$ | i 4,130 | $ | ( i 2,604 | ) | |||||||
Less net income (loss) attributable to participating securities
|
i 7
|
i –
|
i 25 | i – | ||||||||||||
Income (loss) available to common stockholders
|
$
|
i 1,311
|
$
|
i 182
|
$ | i 4,105 | $ | ( i 2,604 | ) | |||||||
Weighted average common shares outstanding for basic earnings (loss) per common share
|
i 72,555,282
|
i 71,222,869
|
i 72,386,900 | i 56,403,545 | ||||||||||||
Add: dilutive effects of unvested restricted stock awards
|
i 408,552
|
i 228,082
|
i 442,150 |
i – |
||||||||||||
Weighted average common shares outstanding for diluted earnings (loss) per common share
|
i 72,963,834
|
i 71,450,951
|
i 72,829,050 | i 56,403,545 | ||||||||||||
Earnings (loss) per common share - basic
|
$
|
i 0.02
|
$
|
i –
|
$ | i 0.06 | $ | ( i 0.05 | ) | |||||||
Earnings (loss) per common share - diluted
|
$
|
i 0.02
|
$
|
i –
|
$ | i 0.06 | $ | ( i 0.05 | ) |
Amortized
Cost |
Gross Unrealized Gains
|
Gross Unrealized Losses
|
Fair Value
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Federal agency mortgage-backed securities
|
$
|
i 90,333
|
$
|
i 7
|
$
|
( i 11,749
|
)
|
$
|
i 78,591
|
|||||||
Federal agency collateralized mortgage obligations (“CMO”)
|
i 26,435 | i 4 | ( i 1,587 | ) | i 24,852 | |||||||||||
Federal agency debt
|
i 56,641
|
i 38
|
( i 4,475
|
)
|
i 52,204
|
|||||||||||
Municipal bonds
|
i 4,874
|
i –
|
( i 747
|
)
|
i 4,127
|
|||||||||||
U.S. Treasuries
|
i 165,735
|
i –
|
( i 5,550
|
)
|
i 160,185
|
|||||||||||
SBA pools
|
i 14,540
|
i 13
|
( i 1,767
|
)
|
i 12,786
|
|||||||||||
Total available-for-sale securities
|
$
|
i 358,558
|
$
|
i 62
|
$
|
( i 25,875
|
)
|
$
|
i 332,745
|
|||||||
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 1,000
|
$
|
i –
|
$
|
i –
|
|
$
|
i 1,000
|
|||||||
Due after one year through five years
|
i 221,154
|
i 6
|
( i 9,476
|
)
|
i 211,684
|
|||||||||||
Due after five years through ten years
|
i 64,541
|
i 44
|
( i 5,934
|
)
|
i 58,651
|
|||||||||||
Due after ten years (1)
|
i 71,863
|
i 12
|
( i 10,465
|
)
|
i 61,410
|
|||||||||||
$
|
i 358,558
|
$
|
i 62
|
$
|
( i 25,875
|
)
|
$
|
i 332,745
|
(1)
|
Mortgage-backed securities, collateralized mortgage obligations and SBA pools do not have a single
stated maturity date and therefore have been included in the “Due after ten years” category.
|
Less than 12 Months
|
12 Months or Longer
|
Total
|
||||||||||||||||||||||
Fair
Value
|
Unrealized
Losses
|
Fair
Value
|
Unrealized
Losses
|
Fair
Value
|
Unrealized
Losses
|
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
Federal agency mortgage-backed securities
|
$
|
i 63,620
|
$
|
( i 9,388
|
)
|
$
|
i 14,666
|
$
|
( i 2,361
|
)
|
$
|
i 78,286
|
$
|
( i 11,749
|
)
|
|||||||||
Federal agency CMOs
|
i 20,313
|
( i 855
|
)
|
i 3,709
|
( i 732
|
)
|
i 24,022
|
( i 1,587
|
)
|
|||||||||||||||
Federal agency debt
|
i 37,646
|
( i 3,496
|
)
|
i 8,916
|
( i 979
|
)
|
i 46,562
|
( i 4,475
|
)
|
|||||||||||||||
Municipal bonds
|
i 3,193
|
( i 581
|
)
|
i 934
|
( i 166
|
)
|
i 4,127
|
( i 747
|
)
|
|||||||||||||||
U. S. Treasuries
|
i 143,707
|
( i 3,893
|
)
|
i 16,478
|
( i 1,657
|
)
|
i 160,185
|
( i 5,550
|
)
|
|||||||||||||||
SBA pools
|
i 3,889
|
( i 393
|
)
|
i 6,846
|
( i 1,374
|
)
|
i 10,735
|
( i 1,767
|
)
|
|||||||||||||||
Total unrealized loss position investment securities
|
$
|
i 272,368
|
$
|
( i 18,606
|
)
|
$
|
i 51,549
|
$
|
( i 7,269
|
)
|
$
|
i 323,917
|
$
|
( i 25,875
|
)
|
|||||||||
Federal agency mortgage-backed securities
|
$
|
i 65,456
|
$
|
( i 498
|
)
|
$
|
i –
|
$
|
i –
|
$
|
i 65,456
|
$
|
( i 498
|
)
|
||||||||||
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
|
)
|
||||||||||||||||
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 30,781
|
$
|
i 45,372
|
||||
Multi-family
|
i 459,234
|
i 393,704
|
||||||
Commercial real estate
|
i 91,576
|
i 93,193
|
||||||
Church
|
i 16,683
|
i 22,503
|
||||||
Construction
|
i 57,845
|
i 32,072
|
||||||
Commercial – other
|
i 66,516
|
i 46,539
|
||||||
SBA loans (1) |
i 3,654 | i 18,837 | ||||||
Consumer
|
i 9
|
i –
|
||||||
Gross loans receivable before deferred loan costs and premiums
|
i 726,298
|
i 652,220
|
||||||
Unamortized net deferred loan costs and premiums
|
i 1,564
|
i 1,526
|
||||||
Gross loans receivable
|
i 727,862
|
i 653,746
|
||||||
Credit and interest marks on purchased loans, net
|
( i 1,194 | ) | ( i 1,842 | ) | ||||
Allowance for loan losses | ( i 3,983 | ) | ( i 3,391 | ) | ||||
Loans receivable, net
|
$
|
i 722,685
|
$
|
i 648,513
|
(1)
|
Including Paycheck Protection Program (PPP) loans.
|
|
September 30, 2022
|
December 31, 2021 | ||||||
|
(In thousands)
|
|||||||
Real estate:
|
||||||||
Single family
|
$
|
i 67
|
$ | i 558 | ||||
Commercial real estate
|
i –
|
i 221 | ||||||
Commercial – other
|
i 26
|
i 104 | ||||||
$
|
i 93
|
$ | i 883 |
Three Months Ended
|
Nine Months
Ended
|
|||||||
(In thousands)
|
||||||||
Balance at the beginning of the period
|
$
|
i 160
|
$
|
i 883
|
||||
Deduction due to payoffs
|
( i 71
|
)
|
( i 810
|
)
|
||||
Accretion
|
( i 4
|
)
|
( i 20
|
)
|
||||
Balance at the end of the period
|
$
|
i 93
|
$
|
i 93
|
|
Three Months Ended
|
Nine Months
Ended
|
||||||
(In thousands)
|
||||||||
Balance at the beginning of the period
|
$ | i 327 | $ | i – | ||||
Additions
|
i –
|
i 346
|
||||||
Accretion
|
i 19
|
i 38
|
||||||
Balance at the end of the period
|
$
|
i 308
|
$
|
i 308
|
For the Three Months Ended September 30, 2022
|
||||||||||||||||||||||||||||||||
Real Estate
|
||||||||||||||||||||||||||||||||
Single
Family
|
Multi-
Family
|
Commercial
Real Estate
|
Church
|
Construction
|
Commercial - Other
|
Consumer
|
Total
|
|||||||||||||||||||||||||
Beginning balance
|
$
|
i 120
|
$
|
i 2,278
|
$
|
i 153
|
$
|
i 48
|
$
|
i 221
|
$
|
i 138
|
$
|
i 4
|
$
|
i 2,962
|
||||||||||||||||
Provision for (recapture of) loan losses
|
( i 8
|
)
|
i 641
|
i 142
|
i 6
|
i 187
|
i 53
|
i –
|
i 1,021
|
|||||||||||||||||||||||
Recoveries
|
i –
|
i –
|
i –
|
i –
|
i –
|
i –
|
i –
|
i –
|
||||||||||||||||||||||||
Loans charged off
|
i –
|
i –
|
i –
|
i –
|
i –
|
i –
|
i –
|
i –
|
||||||||||||||||||||||||
Ending balance
|
$
|
i 112
|
$
|
i 2,919
|
$
|
i 295
|
$
|
i 54
|
$
|
i 408
|
$
|
i 191
|
$
|
i 4
|
$
|
i 3,983
|
For the Three Months Ended September 30,
2021
|
||||||||||||||||||||||||||||||||
Real Estate
|
||||||||||||||||||||||||||||||||
Single
Family |
Multi-
Family
|
Commercial Real Estate
|
Church
|
Construction
|
Commercial - Other
|
Consumer
|
Total
|
|||||||||||||||||||||||||
Beginning balance
|
$
|
i 170
|
$
|
i 2,606
|
$
|
i 227
|
$
|
i 208
|
$
|
i 81
|
$
|
i 4
|
$
|
i –
|
$
|
i 3,296
|
||||||||||||||||
Provision for (recapture
of) loan losses
|
( i 10
|
)
|
i 325
|
i 32
|
( i 18
|
)
|
i 35
|
i –
|
i 1
|
i 365
|
||||||||||||||||||||||
Recoveries
|
i –
|
i –
|
i –
|
i –
|
i –
|
i –
|
i –
|
i –
|
||||||||||||||||||||||||
Loans charged off
|
i –
|
i –
|
i –
|
i –
|
i –
|
i –
|
i –
|
i –
|
||||||||||||||||||||||||
Ending balance
|
$
|
i 160
|
$
|
i 2,931
|
$
|
i 259
|
$
|
i 190
|
$
|
i 116
|
$
|
i 4
|
$
|
i 1
|
$
|
i 3,661
|
For the Nine Months
Ended September 30, 2022
|
||||||||||||||||||||||||||||||||
Real Estate
|
||||||||||||||||||||||||||||||||
Single
Family
|
Multi-
Family
|
Commercial Real Estate
|
Church
|
Construction
|
Commercial - Other
|
Consumer
|
Total
|
|||||||||||||||||||||||||
Beginning balance
|
$
|
i 145
|
$
|
i 2,657
|
$
|
i 236
|
$
|
i 103
|
$
|
i 212
|
$
|
i 23
|
$
|
i 15
|
$
|
i 3,391
|
||||||||||||||||
Provision for (recapture of) loan losses
|
( i 33
|
)
|
i 262
|
i 59
|
( i 49
|
)
|
i 196
|
i 168
|
( i 11
|
)
|
i 592
|
|||||||||||||||||||||
Recoveries
|
i –
|
i –
|
i –
|
i –
|
i –
|
i –
|
i –
|
i –
|
||||||||||||||||||||||||
Loans charged off
|
i –
|
i –
|
i –
|
i –
|
i –
|
i –
|
i –
|
i –
|
||||||||||||||||||||||||
Ending balance
|
$
|
i 112
|
$
|
i 2,919
|
$
|
i 295
|
$
|
i 54
|
$
|
i 408
|
$
|
i 191
|
$
|
i 4
|
$
|
i 3,983
|
For the Nine Months
Ended September 30, 2021
|
||||||||||||||||||||||||||||||||
Real Estate
|
||||||||||||||||||||||||||||||||
Single
Family
|
Multi-
Family
|
Commercial Real Estate
|
Church
|
Construction
|
Commercial - Other
|
Consumer
|
Total
|
|||||||||||||||||||||||||
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 136
|
)
|
i 498
|
i 37
|
( i 47
|
)
|
i 94
|
i –
|
i –
|
i 446
|
||||||||||||||||||||||
Recoveries
|
i –
|
i –
|
i –
|
i –
|
i –
|
i –
|
i –
|
i –
|
||||||||||||||||||||||||
Loans charged off
|
i –
|
i –
|
i –
|
i –
|
i –
|
i –
|
i –
|
i –
|
||||||||||||||||||||||||
Ending balance
|
$
|
i 160
|
$
|
i 2,931
|
$
|
i 259
|
$
|
i 190
|
$
|
i 116
|
$
|
i 4
|
$
|
i 1
|
$
|
i 3,661
|
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 109
|
i 2,919
|
i 295
|
i 50
|
i 408
|
i 191
|
i 4 |
i 3,976
|
||||||||||||||||||||||||
Total ending allowance balance
|
$
|
i 112
|
$
|
i 2,919
|
$
|
i 295
|
$
|
i 54
|
$
|
i 408
|
$
|
i 191
|
$ | i 4 |
$
|
i 3,983
|
||||||||||||||||
Loans:
|
||||||||||||||||||||||||||||||||
Loans individually evaluated for impairment
|
$
|
i 58
|
$
|
i 268
|
$
|
i –
|
$
|
i 2,135
|
$
|
i –
|
$
|
i –
|
$ | i – |
$
|
i 2,461
|
||||||||||||||||
Loans collectively evaluated for impairment
|
i 21,607
|
i 422,731
|
i 40,946
|
i 7,030
|
i 53,813
|
i 30,447
|
i 9 |
i 576,583
|
||||||||||||||||||||||||
Subtotal |
i 21,665 | i 422,999 | i 40,946 | i 9,165 | i 53,813 | i 30,447 | i 9 | i 579,044 | ||||||||||||||||||||||||
Loans acquired in the Merger
|
i 9,116 | i 37,799 | i 50,630 | i 7,518 | i 4,032 | i 39,723 | i – | i 148,818 | ||||||||||||||||||||||||
Total ending loans balance
|
$
|
i 30,781
|
$
|
i 460,798
|
$
|
i 91,576
|
$
|
i 16,683
|
$
|
i 57,845
|
$
|
i 70,170
|
$ | i 9 |
$
|
i 727,862
|
December 31, 2021 | ||||||||||||||||||||||||||||||||
Real Estate
|
||||||||||||||||||||||||||||||||
Single
Family
|
Multi-
Family |
Commercial
Real Estate
|
Church
|
Construction
|
Commercial - Other
|
SBA
|
Total
|
|||||||||||||||||||||||||
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 43,415 | i 18,837 | i 203,753 | ||||||||||||||||||||||||
Total ending loans balance
|
$
|
i 45,372
|
$
|
i 395,230
|
$
|
i 93,193
|
$
|
i 22,503
|
$
|
i 32,072
|
$
|
i 46,539
|
$ | i 18,837 |
$
|
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 267
|
$ |
i 267
|
$ |
–
|
$ |
i 282
|
$ |
i 282
|
$ |
–
|
||||||||||||
Church
|
i 2,049
|
i 2,049
|
–
|
i 1,854
|
i 1,854
|
–
|
||||||||||||||||||
With an allowance recorded:
|
||||||||||||||||||||||||
Single family
|
i 58
|
i 58
|
i 3
|
i 65
|
i 65
|
i 3
|
||||||||||||||||||
Church
|
i 87
|
i 87
|
i 4
|
i 100
|
i 100
|
i 4
|
||||||||||||||||||
Total
|
$
|
i 2,461
|
$
|
i 2,461
|
$
|
i 7
|
$
|
i 2,301
|
$
|
i 2,301
|
$
|
i 7
|
Three Months Ended September 30, 2022
|
Three Months Ended September 30, 2021
|
|||||||||||||||
Average
Recorded
Investment
|
Cash Basis
Interest
Income
Recognized
|
Average
Recorded
Investment
|
Cash Basis
Interest
Income
Recognized
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Single family
|
$
|
i 60
|
$
|
i 1
|
$
|
i 65
|
$
|
i 4
|
||||||||
Multi-family
|
i 268
|
i 5
|
i 288
|
i 5
|
||||||||||||
Church
|
i 2,172
|
i 25
|
i 3,614
|
i 64
|
||||||||||||
Commercial - other
|
i –
|
i –
|
i –
|
i –
|
||||||||||||
Total
|
$
|
i 2,500
|
$
|
i 31
|
$
|
i 3,967
|
$
|
i 73
|
Nine
Months Ended September 30, 2022
|
Nine
Months Ended September 30, 2021
|
|||||||||||||||
Average
Recorded Investment
|
Cash Basis
Interest
Income
Recognized
|
Average
Recorded
Investment
|
Cash Basis
Interest
Income
Recognized |
|||||||||||||
(In thousands)
|
||||||||||||||||
Single family
|
$
|
i 63
|
$
|
i 3
|
$
|
i 318
|
$
|
i 14
|
||||||||
Multi-family
|
i 274
|
i 14
|
i 292
|
i 15
|
||||||||||||
Church
|
i 2,197
|
i 76
|
i 3,710
|
i 190
|
||||||||||||
Commercial - other
|
i –
|
i –
|
i 18
|
i 1
|
||||||||||||
Total
|
$
|
i 2,534
|
$
|
i 93
|
$
|
i 4,338
|
$
|
i 220
|
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 30,781
|
$
|
i 30,781
|
||||||||||||
Multi-family
|
i 4,316
|
i 5,864
|
i –
|
i 10,180
|
i 450,618
|
i 460,798
|
||||||||||||||||||
Commercial real estate
|
i –
|
i –
|
i –
|
i –
|
i 91,576
|
i 91,576
|
||||||||||||||||||
Church
|
i –
|
i –
|
i –
|
i –
|
i 16,683
|
i 16,683
|
||||||||||||||||||
Construction
|
i –
|
i –
|
i –
|
i –
|
i 57,845
|
i 57,845
|
||||||||||||||||||
Commercial - other
|
i 41
|
i 12
|
i –
|
i 53
|
i 66,463
|
i 66,516
|
||||||||||||||||||
SBA loans | i – |
i – |
i – | i – | i 3,654 |
i 3,654 |
||||||||||||||||||
Consumer
|
i –
|
i –
|
i –
|
i –
|
i 9
|
i 9
|
||||||||||||||||||
Total
|
$
|
i 4,357
|
$
|
i 5,876
|
$
|
i –
|
$
|
i 10,233
|
$
|
i 717,629
|
$
|
i 727,862
|
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 –
|
i 2,423
|
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
|
||||||||||||||||||
Consumer
|
i –
|
i –
|
i –
|
i –
|
i 18,837
|
i 18,837
|
||||||||||||||||||
Total
|
$
|
i –
|
$
|
i –
|
$
|
i 2,423
|
$
|
i 2,423
|
$
|
i 651,323
|
$
|
i 653,746
|
(In thousands)
|
||||||||
Loans receivable held for investment:
|
||||||||
Church
|
$ |
i 608
|
$ |
i 684
|
||||
Total non-accrual loans
|
$
|
i 608
|
$
|
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, on the basis of currently existing facts, conditions,
and values, highly questionable and improbable.
|
● |
Loss. Loans classified as loss are considered uncollectible and of such little value that to continue to carry the loan as an active asset is no longer warranted.
|
Pass
|
Watch
|
Special Mention
|
Substandard
|
Doubtful
|
Loss
|
Total | ||||||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||||||
Single family
|
$
|
i 30,422
|
$
|
i 359
|
$
|
i –
|
$
|
i –
|
$
|
i –
|
$
|
i –
|
$ | i 30,781 | ||||||||||||||
Multi-family
|
i 448,183
|
i 1,735
|
i 7,162
|
i 3,718
|
i –
|
i –
|
i 460,798 | |||||||||||||||||||||
Commercial real estate
|
i 90,142
|
i –
|
i –
|
i 1,434
|
i –
|
i –
|
i 91,576 | |||||||||||||||||||||
Church
|
i 14,934
|
i –
|
i –
|
i 1,749
|
i –
|
i –
|
i 16,683 | |||||||||||||||||||||
Construction
|
i 23,504
|
i 34,341
|
i –
|
i –
|
i –
|
i –
|
i 57,845 | |||||||||||||||||||||
Commercial - others
|
i 61,426
|
i 5,090
|
i –
|
i –
|
i –
|
i –
|
i 66,516 | |||||||||||||||||||||
SBA
|
i 3,022 |
i 632 |
i – |
i – |
i – |
i – |
i 3,654 | |||||||||||||||||||||
Consumer
|
i 9
|
i –
|
i –
|
i –
|
i –
|
i –
|
i 9 | |||||||||||||||||||||
Total
|
$
|
i 671,642
|
$
|
i 42,157
|
$
|
i 7,162
|
$
|
i 6,901
|
$
|
i –
|
$
|
i –
|
$ | i 727,862 |
|
||||||||||||||||||||||||||||
|
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 - other
|
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 |
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 326
|
)
|
|||||
Balance at the end of the period
|
$ | i 25,858 |
$
|
i 2,610
|
Core deposit intangible acquired
|
$
|
i 3,329
|
||
Less: accumulated amortization | ( i 719 | ) | ||
|
$
|
i 2,610
|
2022
|
$
|
i 110
|
||
2023
|
i 390
|
|||
2024
|
i 336
|
|||
2025
|
i 315
|
|||
2026
|
i 304
|
|||
Thereafter
|
i 1,155
|
|||
$
|
i 2,610
|
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 78,591 |
$
|
i –
|
$ | i 78,591 | ||||||||
Federal agency CMO
|
i –
|
i 24,852 |
i –
|
i 24,852 | ||||||||||||
Federal agency debt
|
i –
|
i 52,204 |
i –
|
i 52,204 | ||||||||||||
Municipal bonds
|
i –
|
i 4,127 |
i –
|
i 4,127 | ||||||||||||
U.S. Treasuries
|
i –
|
i 160,185 |
i –
|
i 160,185 | ||||||||||||
SBA pools
|
i –
|
i 12,786 |
i –
|
i 12,786 | ||||||||||||
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 –
|
i 17,951
|
i –
|
i 17,951
|
||||||||||||
SBA pools
|
i –
|
i 16,225
|
i –
|
i 16,225
|
Fair Value Measurements at September 30, 2022
|
||||||||||||||||||||
Carrying
Value
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||||||||
(In thousands)
|
||||||||||||||||||||
Financial Assets:
|
||||||||||||||||||||
Cash and cash equivalents | $ | i 52,217 | $ | i 52,217 | $ | i – | $ | i – | $ | i 52,217 | ||||||||||
Securities available-for-sale |
i 332,745 |
i – |
i 332,745 |
i – |
i 332,745 |
|||||||||||||||
Loans receivable held for investment
|
i 722,685
|
i –
|
i –
|
i 603,731
|
i 603,731
|
|||||||||||||||
Accrued interest receivables |
i 3,467 |
i 266 |
i 849 |
i 2,352 |
i 3,467 |
|||||||||||||||
Bank owned life insurance |
i 3,222 |
i 3,222 |
i – |
i – |
i 3,222 |
|||||||||||||||
Financial Liabilities:
|
||||||||||||||||||||
Deposits
|
$
|
i 768,511
|
$
|
i –
|
$
|
i 682,420
|
$
|
i –
|
$
|
i 682,420
|
||||||||||
Federal Home Loan Bank advances
|
i 32,888 | i – | i 31,581 | i – | i 31,581 | |||||||||||||||
Securities sold under agreements to repurchase |
i 65,407
|
i –
|
i 62,716
|
i –
|
i 62,716
|
|||||||||||||||
Note payable |
i 14,000 | i – | i – | i 14,000 | i 14,000 | |||||||||||||||
Accrued interest payable |
i 186 |
i – |
i 186 |
i – |
i 186 |
Fair Value Measurements at December 31, 2021
|
||||||||||||||||||||
Carrying
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 –
|
i 156,396
|
i –
|
i 156,396
|
|||||||||||||||
Loans receivable held for investment
|
i 648,513
|
i –
|
i –
|
i 623,778
|
i 623,778
|
|||||||||||||||
Accrued interest receivables
|
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 |
Number
Outstanding
|
Weighted Average
Exercise Price
|
Number
Outstanding
|
Weighted Average
Exercise Price
|
|||||||||||||
Outstanding at beginning of period
|
i 450,000
|
$
|
i 1.62
|
i 450,000
|
$
|
i 1.62
|
||||||||||
Granted during period
|
i –
|
i –
|
i –
|
i –
|
||||||||||||
Exercised during period
|
i –
|
i –
|
i –
|
i –
|
||||||||||||
Forfeited or expired during period
|
( i 200,000
|
)
|
i –
|
i –
|
i –
|
|||||||||||
Outstanding at end of period
|
i 250,000
|
$
|
i 1.62
|
i 450,000
|
$
|
i 1.62
|
||||||||||
Exercisable at end of period
|
i 250,000
|
$
|
i 1.62
|
i 450,000
|
$
|
i 1.62
|
Outstanding
|
Exercisable
|
||||||||||||||||||||||
Number
Outstanding
|
Weighted Average
Remaining Contractual Life
|
Weighted Average
Exercise Price
|
Aggregate
Intrinsic Value
|
Number
Outstanding
|
Weighted Average
Exercise Price
|
Aggregate
Intrinsic Value
|
|||||||||||||||||
i 250,000
|
|
$
|
i 1.62
|
i 250,000
|
$
|
i 1.62
|
|||||||||||||||||
i 250,000
|
i 3.38 years
|
$
|
i 1.62
|
$
|
i –
|
i 250,000
|
$
|
i 1.62
|
$
|
i –
|
(Dollars in thousands)
|
||||||||
Allocated to participants
|
i 1,102,583
|
i 1,065,275
|
||||||
Committed to be released
|
i –
|
i 10,236
|
||||||
Suspense shares
|
i 491,425
|
i 562,391
|
||||||
Total ESOP shares
|
i 1,594,008
|
i 1,637,902
|
||||||
Fair value of unearned shares
|
$
|
i 555
|
$
|
i 1,040
|
Actual
|
Minimum Required to Be Well Capitalized
Under Prompt Corrective Action Provisions
|
|||||||||||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
September 30,
2022:
|
||||||||||||||||
Community Bank Leverage Ratio
|
$
|
i 169,909
|
i 14.70
|
% |
$
|
i 103,995
|
i 9.00
|
% | ||||||||
December 31,
2021:
|
||||||||||||||||
Community Bank Leverage Ratio
|
$
|
i 98,590
|
i 9.32
|
%
|
$
|
i 89,871
|
i 8.50
|
% |
ITEM 2. |
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
For the Three Months Ended
|
||||||||||||||||||||||||
(Dollars in Thousands)
|
Average
Balance
|
Interest
|
Average
Yield/Cost
|
Average
Balance
|
Interest
|
Average
Yield/Cost
|
||||||||||||||||||
Assets
|
||||||||||||||||||||||||
Interest-earning assets:
|
||||||||||||||||||||||||
Interest-earning deposits
|
$
|
141,281
|
$
|
594
|
1.68
|
%
|
$
|
214,366
|
$
|
101
|
0.19
|
%
|
||||||||||||
Securities
|
313,983
|
2,069
|
2.64
|
%
|
157,142
|
457
|
1.16
|
%
|
||||||||||||||||
Loans receivable (1)
|
683,085
|
6,520
|
3.82
|
%
|
612,755
|
6,296
|
4.11
|
%
|
||||||||||||||||
FRB and FHLB stock
|
2,166
|
45
|
8.31
|
%
|
3,401
|
55
|
6.47
|
%
|
||||||||||||||||
Total interest-earning assets
|
1,140,515
|
$
|
9,228
|
3.24
|
%
|
987,664
|
$
|
6,909
|
2.80
|
%
|
||||||||||||||
Non-interest-earning assets
|
51,845
|
61,615
|
||||||||||||||||||||||
Total assets
|
$
|
1,192,360
|
$
|
1,049,279
|
||||||||||||||||||||
Liabilities and Stockholders’ Equity
|
||||||||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||
Money market deposits
|
$
|
180,865
|
$
|
271
|
0.60
|
%
|
$
|
199,577
|
$
|
159
|
0.32
|
%
|
||||||||||||
Savings deposits
|
70,909
|
23
|
0.13
|
%
|
74,223
|
61
|
0.33
|
%
|
||||||||||||||||
Interest checking and other demand deposits
|
349,343
|
66
|
0.08
|
%
|
210,014
|
37
|
0.07
|
%
|
||||||||||||||||
Certificate accounts
|
176,433
|
114
|
0.26
|
%
|
197,746
|
189
|
0.38
|
%
|
||||||||||||||||
Total deposits
|
777,550
|
474
|
0.24
|
%
|
681,560
|
446
|
0.26
|
%
|
||||||||||||||||
FHLB advances
|
32,913
|
111
|
1.35
|
%
|
91,000
|
440
|
1.93
|
%
|
||||||||||||||||
Junior subordinated debentures
|
–
|
–
|
–
|
%
|
2,923
|
17
|
2.33
|
%
|
||||||||||||||||
Other borrowings
|
79,025
|
35
|
0.18
|
%
|
65,657
|
15
|
0.09
|
%
|
||||||||||||||||
Total borrowings
|
111,938
|
146
|
0.52
|
%
|
159,580
|
472
|
1.18
|
%
|
||||||||||||||||
Total interest-bearing liabilities
|
889,488
|
$
|
620
|
0.28
|
%
|
841,140
|
$
|
918
|
0.44
|
%
|
||||||||||||||
Non-interest-bearing liabilities
|
21,852
|
64,271
|
||||||||||||||||||||||
Stockholders’ Equity
|
281,020
|
143,868
|
||||||||||||||||||||||
Total liabilities and stockholders’ equity
|
$
|
1,192,360
|
$
|
1,049,279
|
||||||||||||||||||||
Net interest rate spread (2)
|
$
|
8,608
|
2.96
|
%
|
$
|
5,991
|
2.36
|
%
|
||||||||||||||||
Net interest rate margin (3)
|
3.02
|
%
|
2.43
|
%
|
||||||||||||||||||||
Ratio of interest-earning assets to interest-bearing liabilities
|
128.22
|
%
|
117.42
|
%
|
(1) |
Amount is net of deferred loan fees, loan discounts and loans in process, and includes deferred origination costs and loan premiums.
|
(2) |
Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.
|
(3) |
Net interest rate margin represents net interest income as a percentage of average interest-earning assets.
|
For the Nine Months Ended
|
||||||||||||||||||||||||
(Dollars in Thousands)
|
Average
Balance
|
Interest
|
Average
Yield/Cost
|
Average
Balance
|
Interest
|
Average
Yield/Cost
|
||||||||||||||||||
Assets
|
||||||||||||||||||||||||
Interest-earning assets:
|
||||||||||||||||||||||||
Interest-earning deposits
|
$
|
183,463
|
$
|
1,466
|
1.07
|
%
|
$
|
198,922
|
$
|
207
|
0.14
|
%
|
||||||||||||
Securities
|
229,630
|
3,416
|
1.98
|
%
|
120,952
|
953
|
1.05
|
%
|
||||||||||||||||
Loans receivable (1)
|
666,493
|
20,603
|
4.12
|
%
|
539,811
|
16,240
|
4.01
|
%
|
||||||||||||||||
FRB and FHLB stock
|
2,522
|
123
|
6.50
|
%
|
3,718
|
170
|
6.10
|
%
|
||||||||||||||||
Total interest-earning assets
|
1,082,108
|
$
|
25,608
|
3.16
|
%
|
863,403
|
$
|
17,570
|
2.71
|
%
|
||||||||||||||
Non-interest-earning assets
|
49,624
|
34,696
|
||||||||||||||||||||||
Total assets
|
$
|
1,131,732
|
$
|
898,099
|
||||||||||||||||||||
Liabilities and Stockholders’ Equity
|
||||||||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||
Money market deposits
|
$
|
195,292
|
$
|
654
|
0.45
|
%
|
$
|
162,230
|
$
|
463
|
0.38
|
%
|
||||||||||||
Savings deposits
|
67,125
|
44
|
0.09
|
%
|
69,728
|
175
|
0.33
|
%
|
||||||||||||||||
Interest checking and other demand deposits
|
289,494
|
147
|
0.07
|
%
|
165,646
|
84
|
0.07
|
%
|
||||||||||||||||
Certificate accounts
|
191,684
|
328
|
0.23
|
%
|
183,569
|
584
|
0.42
|
%
|
||||||||||||||||
Total deposits
|
743,595
|
1,173
|
0.21
|
%
|
581,173
|
1,306
|
0.30
|
%
|
||||||||||||||||
FHLB advances
|
51,063
|
538
|
1.40
|
%
|
104,366
|
1,516
|
1.94
|
%
|
||||||||||||||||
Junior subordinated debentures
|
–
|
–
|
–
|
%
|
3,113
|
60
|
2.57
|
%
|
||||||||||||||||
Other borrowings
|
71,751
|
79
|
0.15
|
%
|
47,863
|
31
|
0.09
|
%
|
||||||||||||||||
Total borrowings
|
122,814
|
617
|
0.67
|
%
|
155,342
|
1,607
|
1.38
|
%
|
||||||||||||||||
Total interest-bearing liabilities
|
866,409
|
$
|
1,790
|
0.28
|
%
|
736,515
|
$
|
2,913
|
0.53
|
%
|
||||||||||||||
Non-interest-bearing liabilities
|
55,510
|
49,695
|
||||||||||||||||||||||
Stockholders’ Equity
|
209,813
|
111,889
|
||||||||||||||||||||||
Total liabilities and stockholders’ equity
|
$
|
1,131,732
|
$
|
898,099
|
||||||||||||||||||||
Net interest rate spread (2)
|
$
|
23,818
|
2.88
|
%
|
$
|
14,657
|
2.19
|
%
|
||||||||||||||||
Net interest rate margin (3)
|
2.93
|
%
|
2.26
|
%
|
||||||||||||||||||||
Ratio of interest-earning assets to interest-bearing liabilities
|
124.90
|
%
|
117.23
|
%
|
(1) |
Amount is net of deferred loan fees, loan discounts and loans in process, and includes deferred origination costs and loan premiums.
|
(2) |
Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.
|
(3) |
Net interest rate margin represents net interest income as a percentage of average interest-earning assets.
|
Common
Equity Capital
|
Shares Outstanding
|
Per Share
Amount
|
||||||||||
(Dollars in thousands)
|
||||||||||||
Common book value
|
$
|
127,431
|
73,436,501
|
$
|
1.74
|
|||||||
Less:
|
||||||||||||
Goodwill
|
25,858
|
|||||||||||
Net unamortized core deposit intangible
|
2,610
|
|||||||||||
Tangible book value
|
$
|
98,963
|
73,436,501
|
$
|
1.35
|
|||||||
Common book value
|
$
|
138,000
|
71,768,419
|
$
|
1.92
|
|||||||
Less:
|
||||||||||||
Goodwill
|
25,996
|
|||||||||||
Net unamortized core deposit intangible
|
2,936
|
|||||||||||
Tangible book value
|
$
|
109,068
|
$
|
71,768,419
|
$
|
1.52
|
ITEM 3. |
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
ITEM 4. |
CONTROLS AND PROCEDURES
|
Item 1. |
LEGAL PROCEEDINGS
|
Item 1A. |
RISK FACTORS
|
Item 2. |
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
|
Item 3. |
DEFAULTS UPON SENIOR SECURITIES
|
Item 4. |
MINE SAFETY DISCLOSURES
|
Item 5. |
OTHER INFORMATION
|
Item 6. |
EXHIBITS
|
Exhibit
Number*
|
|
Amended and Restated Certificate of Incorporation of Broadway Financial Corporation effective as of April 1, 2022 (Exhibit 3.1 to Form 8-K filed by Registrant on April 5, 2021)
|
|
Bylaws of Registrant (Exhibit 3.2 to Form 8-K filed by Registrant on August 24, 2020)
|
|
Certificate of Designations of Senior Non-Cumulative Perpetual Preferred Stock, Series C (Exhibit 3.1 to Form 8-K filed by Registrant on June 8, 2022)
|
|
Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
|
Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
|
101.INS
|
XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
|
101.SCH
|
Inline XBRL Taxonomy Extension Schema Document
|
101.CAL
|
Inline XBRL Taxonomy Extension Calculation Linkbase Document
|
101.DEF
|
Inline XBRL Taxonomy Extension Definitions Linkbase Document
|
101.LAB
|
Inline XBRL Taxonomy Extension Label Linkbase Document
|
101.PRE
|
Inline XBRL Taxonomy Extension Presentation Linkbase Document
|
104
|
Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)
|
* |
Exhibits followed by a parenthetical reference are incorporated by reference herein from the document filed by the Registrant with the SEC described therein. Except as otherwise indicated, the SEC File No. for each
incorporated document is 000-27464.
|
** |
Management contract or compensatory plan or arrangement.
|
Date: November 14, 2022
|
By:
|
/s/ Brian Argrett
|
Chief Executive Officer
|
||
Date: November 14, 2022
|
By:
|
/s/ Brenda J. Battey
|
Chief Financial Officer
|
This ‘10-Q’ Filing | Date | Other Filings | ||
---|---|---|---|---|
12/31/22 | ||||
12/15/22 | ||||
Filed on: | 11/14/22 | |||
11/7/22 | ||||
For Period end: | 9/30/22 | |||
7/1/22 | ||||
6/30/22 | 10-Q | |||
6/8/22 | 8-K | |||
6/7/22 | 8-K | |||
4/1/22 | NT 10-K | |||
3/31/22 | 10-Q | |||
1/1/22 | ||||
12/31/21 | 10-K, 10-K/A, NT 10-K | |||
9/30/21 | 10-Q | |||
7/1/21 | ||||
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 | |||
1/1/21 | ||||
8/24/20 | 8-K | |||
3/31/20 | 10-Q | |||
10/16/19 | ||||
12/31/18 | 10-K | |||
List all Filings |
As Of Filer Filing For·On·As Docs:Size Issuer Filing Agent 6/08/22 Broadway Financial Corp./DE 8-K:1,3,5,8 6/02/22 13:931K Broadridge Fin’l So… Inc 4/05/21 Broadway Financial Corp./DE 8-K:2,5,9 4/01/21 2:149K Broadridge Fin’l So… Inc 8/24/20 Broadway Financial Corp./DE 8-K:5,9 8/24/20 2:11M Toppan Merrill/FA |