Employee Benefit Plans

12 Months Ended

Dec. 31, 2014

Employee Benefit Plans

Employee Benefit Plans

Note 12—Employee Benefit Plans

Broadway Federal 401(k) Plan

A 401(k) benefit plan allows employee contributions for substantially all employees up to 15% of their compensation, which are matched at a rate equal to 50% of the first 6% of the compensation contributed. Expense totaled $105 thousand and $84 thousand for 2014 and 2013.

ESOP Plan

Employees participate in an Employee Stock Ownership Plan ("ESOP") after attaining certain age and service requirements. Upon termination of their employment with the Bank, participants will receive shares in accordance with their vested balance. Vesting occurs over seven years. The number of shares held by the ESOP and allocated to participants were 360,235 at December 31, 2014 and 87,505 at December 31, 2013. There were no shares unallocated as of December 31, 2014 and 2013. Dividends on allocated shares increase participant accounts. Compensation expense related to the ESOP was $69 thousand for 2014 and $49 thousand for 2013.

Deferred Compensation Plan

The Bank has a deferred compensation agreement with its former Chief Executive Officer ("Former CEO") whereby a stipulated amount will be paid to the Former CEO over a period of 15 years beginning on his retirement date in May 2013. Pursuant to the Order applicable to the Company, the Company is not permitted to make payments under this deferred compensation agreement. The amount accrued under this agreement was $1.0 million at December 31, 2014 and $992 thousand at December 31, 2013, and was accrued over the period of the Former CEO's active employment. Compensation expense was $58 thousand for 2014 and $71 thousand for 2013.