QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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(State or other jurisdiction of
incorporation or organization)
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(I.R.S. Employer
Identification No.)
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(Address of principal executive offices)
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(Zip Code)
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Title of each class:
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Trading Symbol(s)
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Name of each exchange on which registered:
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(including attached preferred stock purchase rights)
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Large accelerated filer
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☐
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Accelerated filer
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☐
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☒
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Smaller reporting company
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Emerging growth company
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Page
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PART I.
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FINANCIAL STATEMENTS
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Item 1.
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Consolidated Financial Statements (Unaudited)
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1
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2
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3
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4
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6
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Item 2.
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23
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Item 3.
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35
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Item 4.
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35
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PART II.
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OTHER INFORMATION
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Item 1.
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36 | |
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Item 1A.
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36
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Item 2.
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36 | |
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Item 3.
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36
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Item 4.
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36
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Item 5.
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36
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Item 6.
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36 | |
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37
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September 30, 2022
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December 31, 2021
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|||||||
(Unaudited)
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||||||||
Assets:
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||||||||
Cash and due from banks
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$
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$
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||||
Interest-bearing deposits in other banks
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||||||
Cash and cash equivalents
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||||||
Securities available-for-sale, at fair value
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||||||
Loans receivable held for investment, net of allowance of $
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||||||
Accrued interest receivable
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||||||
Federal Home Loan Bank (FHLB) stock
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||||||
Federal Reserve Bank (FRB) stock
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||||||||
Office properties and equipment, net
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||||||
Bank owned life insurance
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||||||
Deferred tax assets, net
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||||||
Core deposit intangible, net
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||||||||
Goodwill
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||||||||
Other assets
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Total assets
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$
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$
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||||
Liabilities and stockholders’ equity
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||||||||
Liabilities:
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||||||||
Deposits
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$
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$
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||||
Securities sold under agreements to repurchase
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||||||||
FHLB advances
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||||||
Notes payable
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||||||||
Accrued expenses and other liabilities
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||||||
Total liabilities
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||||||
Cumulative Perpetual Preferred stock, Series A; authorized
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||||||
Non-Cumulative Redeemable Perpetual Preferred stock, Series C;
authorized
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||||||||
Common stock, Class A, $
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||||||
Common stock, Class B, $
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||||||||
Common stock, Class C, $
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||||||
Additional paid-in capital
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||||||
Retained earnings
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||||||
Unearned Employee Stock Ownership Plan (ESOP) shares
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(
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)
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(
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)
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||||
Accumulated other comprehensive loss, net of tax
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(
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)
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(
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)
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||||
Treasury stock-at cost,
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(
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)
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(
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)
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||||
Total Broadway Financial Corporation and Subsidiary stockholders’ equity
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||||||
Non-controlling interest
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||||||||
Total liabilities and stockholders’ equity
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$
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$
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Three Months Ended
September 30,
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Nine
Months Ended
September 30,
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|||||||||||||||
2022
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2021
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2022
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2021
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|||||||||||||
Interest income:
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||||||||||||||||
Interest and fees on loans receivable
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$
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$
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$
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$
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||||||||
Interest on available-for-sale securities
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||||||||||||
Other interest income
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Total interest income
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Interest expense:
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Interest on deposits
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Interest on borrowings
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Total interest expense
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Net interest income
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Loan loss provision
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Net interest income after loan loss provision
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Non-interest income:
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Service charges
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CDFI Grant
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Other
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Total non-interest income
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Non-interest expense:
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Compensation and benefits
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Occupancy expense
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Information services
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Professional services
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Supervisory costs
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Office services and supplies
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Corporate insurance
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Amortization of core deposit intangible
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Other
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Total non-interest expense
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||||||||||||
Income (loss) before income taxes
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(
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)
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|||||||||||
Income tax expense (benefit)
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(
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)
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|||||||||||
Net income (loss)
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$
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$
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$
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$
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(
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)
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|||||||
Less: Net income attributable to non-controlling interest
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||||||||||||
Net income (loss) attributable to Broadway Financial Corporation
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$
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$
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$
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$
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(
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)
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|||||||
Other comprehensive income, net of tax:
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||||||||||||||||
Unrealized gains (losses) on securities available-for-sale arising during the period
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$
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(
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)
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$
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(
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)
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$
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(
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)
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$
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|
|||||
Income tax (benefit) expense
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(
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)
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(
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)
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(
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)
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|||||||||
Other comprehensive income (loss), net of tax
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(
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)
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(
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)
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(
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)
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|||||||||
Comprehensive income (loss)
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$
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(
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)
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$
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(
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)
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$
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(
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)
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$
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(
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)
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||||
Earnings (loss) per common share-basic
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$
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$
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$
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$
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(
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)
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|||||||
Earnings (loss) per common share-diluted
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$
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$
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$
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$
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(
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)
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Nine Months Ended
September 30, |
||||||||
2022
|
2021
|
|||||||
(In thousands)
|
||||||||
Cash flows from operating activities:
|
||||||||
Net income (loss)
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$
|
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$
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(
|
)
|
|||
Adjustments to reconcile net income (loss) to net cash used in
operating activities:
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||||||||
Loan loss provision
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||||||
Depreciation
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||||||
Net change of deferred loan origination costs
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||||||
Net amortization of premiums & discounts on
available-for-sale securities
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||||||
Amortization of investment in affordable housing limited
partnership
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||||||
Amortization of purchase accounting marks on loans
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(
|
)
|
|
|||||
Amortization of core deposit intangible
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|
||||||
Director compensation expense-common stock
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|
||||||
Accretion of premium on FHLB advances
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(
|
)
|
(
|
)
|
||||
Stock-based compensation expense
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|
||||||
Valuation allowance on deferred tax asset
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|
||||||
ESOP compensation expense
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|
||||||
Earnings on bank owned life insurance
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(
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)
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(
|
)
|
||||
Change in assets and liabilities:
|
||||||||
Net change in deferred taxes
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(
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)
|
|||||
Net change in accrued interest receivable
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( |
) | ||||||
Net change in other assets
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(
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)
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|
|||||
Net change in accrued expenses and other liabilities
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(
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)
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|
|||||
Net cash provided by operating activities
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|
||||||
Cash flows from investing activities:
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||||||||
Cash acquired in merger
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|
||||||
Net change in loans receivable held for investment
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(
|
)
|
(
|
)
|
||||
Principal payments on available-for-sale securities
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|
||||||
Purchase of available-for-sale securities
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(
|
)
|
(
|
)
|
||||
Purchase of FHLB stock
|
(
|
)
|
(
|
)
|
||||
Proceeds from redemption of FHLB stock
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|
||||||
Purchase of office properties and equipment
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(
|
)
|
(
|
)
|
||||
Proceeds from disposals of office properties and equipment
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|
||||||
Net cash (used in) provided by investing activities
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(
|
)
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|
|||||
Cash flows from financing activities:
|
||||||||
Net change in deposits
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(
|
)
|
|
|||||
Net change in securities sold under agreements to repurchase
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(
|
)
|
|||||
Proceeds from sale of stock (net of costs)
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|
||||||
Proceeds from issuance of preferred stock
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|
||||||
Dividends paid on preferred stock
|
(
|
)
|
(
|
)
|
||||
Distributions to non-controlling interest
|
|
(
|
)
|
|||||
Proceeds from FHLB advances
|
|
|
||||||
Repayments of FHLB advances
|
(
|
)
|
(
|
)
|
||||
Stock cancelled for income tax withholding
|
|
(
|
)
|
|||||
Repayments of junior subordinated debentures
|
|
(
|
)
|
|||||
Net cash provided by financing activities
|
|
|
||||||
Net change in cash and cash equivalents
|
(
|
)
|
|
|||||
Cash and cash equivalents at beginning of the period
|
|
|
||||||
Cash and cash equivalents at end of the period
|
$
|
|
$
|
|
||||
Supplemental disclosures of cash flow
information:
|
||||||||
Cash paid for interest
|
$
|
|
$
|
|
||||
Cash paid for income taxes
|
|
|
||||||
Assets acquired (liabilities assumed) in
acquisition:
|
||||||||
Securities available-for-sale, at fair value
|
$
|
|
$
|
|
||||
Loans receivable
|
|
|
||||||
Accrued interest receivable
|
|
|
||||||
FHLB and FRB stock
|
|
|
||||||
Office property and equipment
|
|
|
||||||
Goodwill
|
(
|
)
|
|
|||||
Core deposit intangible
|
|
|
||||||
Other assets
|
|
|
||||||
Deposits
|
|
(
|
)
|
|||||
FHLB advances
|
|
(
|
)
|
|||||
Securities sold under agreements to repurchase
|
|
(
|
)
|
|||||
Other borrowings
|
|
(
|
)
|
|||||
Deferred taxes
|
|
(
|
)
|
|||||
Accrued expenses and other liabilities
|
|
(
|
)
|
|||||
Preferred stock
|
|
(
|
)
|
|||||
Common stock
|
|
(
|
)
|
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
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
$
|
|
|||||||||||||||||
Net income
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||
Release of unearned ESOP shares
|
( |
) | ||||||||||||||||||||||||||||||||||||||
Restricted stock compensation expense
|
||||||||||||||||||||||||||||||||||||||||
Conversion of non-voting shares into voting shares
|
( |
) | ||||||||||||||||||||||||||||||||||||||
Other comprehensive loss, net of tax
|
( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||
Balance at September 30, 2022
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
$
|
|
|||||||||||||||||
Balance at July 1, 2021
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
$
|
|
||||||||||||||||||
Net income
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Preferred shares issued in business combination
|
|
|
|
|
(
|
)
|
|
|
(
|
)
|
||||||||||||||||||||||||||||||
Release of unearned ESOP shares
|
||||||||||||||||||||||||||||||||||||||||
Common stock cancelled for payment of tax withholding
|
( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||
Restricted stock compensation expense
|
||||||||||||||||||||||||||||||||||||||||
Other comprehensive income, net of tax
|
( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||
Balance at September 30, 2021
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$ |
$
|
|
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
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
$
|
|
|||||||||||||||||
Net income
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||
Preferred shares issued
|
||||||||||||||||||||||||||||||||||||||||
Release of unearned ESOP shares
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||
Restricted stock compensation expense
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||
Stock awarded to directors
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||
Conversion of preferred shares to common shares
|
(
|
)
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Conversion of non-voting shares into voting shares
|
|
|
(
|
)
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Dividends paid on preferred stock
|
( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||
Other comprehensive loss, net of tax
|
|
|
|
|
(
|
)
|
|
|
|
|
(
|
)
|
||||||||||||||||||||||||||||
Balance at September 30, 2022
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
$
|
|
|||||||||||||||||
Balance at January 1, 2021
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$ |
$
|
|
|||||||||||||||||||
Net income (loss)
|
|
|
|
|
|
(
|
)
|
|
|
(
|
)
|
|||||||||||||||||||||||||||||
Preferred shares issued in business combination
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Dividends paid on preferred stock
|
( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||
Common shares issued in business combination
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Shares transferred from voting to non-voting after business
combination
|
|
(
|
)
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||
Common shares issued in private placement
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Release of unearned ESOP shares
|
||||||||||||||||||||||||||||||||||||||||
Restricted stock compensation expense
|
||||||||||||||||||||||||||||||||||||||||
Stock awarded to directors
|
||||||||||||||||||||||||||||||||||||||||
Stock option compensation expense
|
||||||||||||||||||||||||||||||||||||||||
Common stock cancelled for payment of tax withholding
|
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||||
Payment to non-controlling interest
|
( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||
Other comprehensive income, net of tax
|
||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2021
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$ |
$
|
|
CFBanc
Book Value
|
Fair Value
Adjustments
|
Fair Value
|
||||||||||
Assets acquired
|
(In thousands) |
|||||||||||
Cash and cash equivalents
|
$
|
|
$
|
|
$
|
|
||||||
Securities available-for-sale
|
|
(
|
)
|
|
||||||||
Loans receivable held for investment:
|
||||||||||||
Gross loans receivable held for investment
|
|
(
|
)
|
|
||||||||
Deferred fees and costs
|
(
|
)
|
|
|
||||||||
Allowance for loan losses
|
(
|
)
|
|
|
||||||||
|
|
|
||||||||||
Accrued interest receivable
|
|
|
|
|||||||||
FHLB and FRB stock
|
|
|
|
|||||||||
Office properties and equipment
|
|
|
|
|||||||||
Deferred tax assets, net
|
|
(
|
)
|
(
|
)
|
|||||||
Core deposit intangible
|
|
|
|
|||||||||
Other assets
|
|
|
|
|||||||||
Total assets
|
$
|
|
$
|
|
$
|
|
||||||
Liabilities assumed
|
||||||||||||
Deposits
|
$
|
|
$
|
|
$
|
|
||||||
Securities sold under
agreements to repurchase |
||||||||||||
FHLB advances
|
|
|
|
|||||||||
Notes payable
|
|
|
|
|||||||||
Accrued expenses and other liabilities
|
|
|
|
|||||||||
Total liabilities
|
$
|
|
$
|
|
$
|
|
||||||
Excess of assets acquired over liabilities assumed
|
$
|
|
$
|
|
$
|
|
||||||
Consideration paid
|
$
|
|
||||||||||
Goodwill recognized
|
$
|
|
Contractual amounts due
|
$
|
|
||
Cash flows not expected to be collected
|
(
|
)
|
||
Expected cash flows
|
|
|||
Interest component of expected cash flows
|
(
|
)
|
||
Fair value of acquired loans
|
$
|
|
Contractual amounts due
|
$
|
|
||
Nonaccretable difference (cash flows not expected to be collected)
|
(
|
)
|
||
Expected cash flows
|
|
|||
Accretable yield
|
(
|
)
|
||
Fair value of acquired loans
|
$
|
|
Three Months Ended | Nine Months Ended |
|||||||
September 30, 2021 |
September 30, 2021 |
|||||||
|
(Dollars in thousands except per share amounts)
|
|||||||
Net interest income
|
$
|
|
$
|
|
||||
Net income (loss)
|
|
(
|
)
|
|||||
|
||||||||
Basic earnings per share
|
$
|
|
$
|
(
|
)
|
|||
Diluted earnings per share
|
$
|
|
$
|
(
|
)
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
2022
|
2021
|
2022 | 2021 | |||||||||||||
(Dollars in thousands, except share and per share data)
|
||||||||||||||||
Net income (loss) attributable to Broadway Financial Corporation
|
$
|
|
$
|
|
$ | $ | ( |
) | ||||||||
Less net income (loss) attributable to participating securities
|
|
|
||||||||||||||
Income (loss) available to common stockholders
|
$
|
|
$
|
|
$ | $ | ( |
) | ||||||||
Weighted average common shares outstanding for basic earnings (loss) per common share
|
|
|
||||||||||||||
Add: dilutive effects of unvested restricted stock awards
|
|
|
||||||||||||||
Weighted average common shares outstanding for diluted earnings (loss) per common share
|
|
|
||||||||||||||
Earnings (loss) per common share - basic
|
$
|
|
$
|
|
$ | $ | ( |
) | ||||||||
Earnings (loss) per common share - diluted
|
$
|
|
$
|
|
$ | $ | ( |
) |
Amortized
Cost |
Gross Unrealized Gains
|
Gross Unrealized Losses
|
Fair Value
|
|||||||||||||
(In thousands)
|
||||||||||||||||
September 30, 2022:
|
||||||||||||||||
Federal agency mortgage-backed securities
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||||
Federal agency collateralized mortgage obligations (“CMO”)
|
( |
) | ||||||||||||||
Federal agency debt
|
|
|
(
|
)
|
|
|||||||||||
Municipal bonds
|
|
|
(
|
)
|
|
|||||||||||
U.S. Treasuries
|
|
|
(
|
)
|
|
|||||||||||
SBA pools
|
|
|
(
|
)
|
|
|||||||||||
Total available-for-sale securities
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||||
December 31, 2021:
|
||||||||||||||||
Federal agency mortgage-backed securities
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||||
Federal agency CMOs |
( |
) | ||||||||||||||
Federal agency debt
|
|
|
(
|
)
|
|
|||||||||||
Municipal bonds
|
|
|
(
|
)
|
|
|||||||||||
U.S. Treasuries |
( |
) | ||||||||||||||
SBA pools
|
( |
) | ||||||||||||||
Total available-for-sale securities
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
Amortized
Cost
|
Gross Unrealized Gains
|
Gross Unrealized Losses
|
Fair Value
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Due in one year or less
|
$
|
|
$
|
|
$
|
|
|
$
|
|
|||||||
Due after one year through five years
|
|
|
(
|
)
|
|
|||||||||||
Due after five years through ten years
|
|
|
(
|
)
|
|
|||||||||||
Due after ten years (1)
|
|
|
(
|
)
|
|
|||||||||||
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
(1)
|
|
Less than 12 Months
|
12 Months or Longer
|
Total
|
||||||||||||||||||||||
Fair
Value
|
Unrealized
Losses
|
Fair
Value
|
Unrealized
Losses
|
Fair
Value
|
Unrealized
Losses
|
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
September 30, 2022:
|
||||||||||||||||||||||||
Federal agency mortgage-backed securities
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
|||||||||
Federal agency CMOs
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|||||||||||||||
Federal agency debt
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|||||||||||||||
Municipal bonds
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|||||||||||||||
U. S. Treasuries
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|||||||||||||||
SBA pools
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|||||||||||||||
Total unrealized loss position investment securities
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
|||||||||
December 31, 2021:
|
||||||||||||||||||||||||
Federal agency mortgage-backed securities
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
||||||||||
Federal agency debt
|
|
(
|
)
|
|
|
|
(
|
)
|
||||||||||||||||
Municipal bonds
|
|
(
|
)
|
|
|
|
(
|
)
|
||||||||||||||||
U. S. Treasuries
|
|
(
|
)
|
|
|
|
(
|
)
|
||||||||||||||||
Total unrealized loss position investment securities
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
September 30,
2022
|
December 31, 2021
|
|||||||
(In thousands)
|
||||||||
Real estate:
|
||||||||
Single family
|
$
|
|
$
|
|
||||
Multi-family
|
|
|
||||||
Commercial real estate
|
|
|
||||||
Church
|
|
|
||||||
Construction
|
|
|
||||||
Commercial – other
|
|
|
||||||
SBA loans (1) |
||||||||
Consumer
|
|
|
||||||
Gross loans receivable before deferred loan costs and premiums
|
|
|
||||||
Unamortized net deferred loan costs and premiums
|
|
|
||||||
Gross loans receivable
|
|
|
||||||
Credit and interest marks on purchased loans, net
|
( |
) | ( |
) | ||||
Allowance for loan losses | ( |
) | ( |
) | ||||
Loans receivable, net
|
$
|
|
$
|
|
(1)
|
|
|
September 30, 2022
|
December 31, 2021 | ||||||
|
(In thousands)
|
|||||||
Real estate:
|
||||||||
Single family
|
$
|
|
$ | |||||
Commercial real estate
|
|
|||||||
Commercial – other
|
|
|||||||
$
|
|
$ |
Three Months Ended
September 30,
2022
|
Nine Months
Ended
September 30,
2022
|
|||||||
(In thousands)
|
||||||||
Balance at the beginning of the period
|
$
|
|
$
|
|
||||
Deduction due to payoffs
|
(
|
)
|
(
|
)
|
||||
Accretion
|
(
|
)
|
(
|
)
|
||||
Balance at the end of the period
|
$
|
|
$
|
|
|
Three Months Ended
September 30,
2021
|
Nine Months
Ended
September 30,
2021
|
||||||
(In thousands)
|
||||||||
Balance at the beginning of the period
|
$ | $ | ||||||
Additions
|
|
|
||||||
Accretion
|
|
|
||||||
Balance at the end of the period
|
$
|
|
$
|
|
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
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Provision for (recapture of) loan losses
|
(
|
)
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Recoveries
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Loans charged off
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Ending balance
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
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
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Provision for (recapture
of) loan losses
|
(
|
)
|
|
|
(
|
)
|
|
|
|
|
||||||||||||||||||||||
Recoveries
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Loans charged off
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Ending balance
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
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
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Provision for (recapture of) loan losses
|
(
|
)
|
|
|
(
|
)
|
|
|
(
|
)
|
|
|||||||||||||||||||||
Recoveries
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Loans charged off
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Ending balance
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
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
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Provision for (recapture of) loan losses
|
(
|
)
|
|
|
(
|
)
|
|
|
|
|
||||||||||||||||||||||
Recoveries
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Loans charged off
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Ending balance
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
September 30,
2022
|
||||||||||||||||||||||||||||||||
Real Estate
|
||||||||||||||||||||||||||||||||
Single
Family
|
Multi-
Family
|
Commercial
Real Estate
|
Church
|
Construction
|
Commercial - Other
|
Consumer |
Total
|
|||||||||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||||||||||||||
Ending allowance balance attributable to loans: | ||||||||||||||||||||||||||||||||
Individually evaluated for impairment
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$ |
$
|
|
|||||||||||||||||
Collectively evaluated for impairment
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Total ending allowance balance
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$ |
$
|
|
|||||||||||||||||
Loans:
|
||||||||||||||||||||||||||||||||
Loans individually evaluated for impairment
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$ |
$
|
|
|||||||||||||||||
Loans collectively evaluated for impairment
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Subtotal |
||||||||||||||||||||||||||||||||
Loans acquired in the Merger
|
||||||||||||||||||||||||||||||||
Total ending loans balance
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$ |
$
|
|
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
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$ | $ |
$
|
|
||||||||||||||||||
Collectively evaluated for impairment
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Total ending allowance balance
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$ |
$
|
|
|||||||||||||||||
Loans:
|
||||||||||||||||||||||||||||||||
Loans individually evaluated for impairment
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$ |
$
|
|
|||||||||||||||||
Loans collectively evaluated for impairment
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Subtotal | ||||||||||||||||||||||||||||||||
Loans acquired in the Merger
|
||||||||||||||||||||||||||||||||
Total ending loans balance
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$ |
$
|
|
September 30,
2022
|
December 31, 2021
|
|||||||||||||||||||||||
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
|
$ |
|
$ |
|
$ |
–
|
$ |
|
$ |
|
$ |
–
|
||||||||||||
Church
|
|
|
–
|
|
|
–
|
||||||||||||||||||
With an allowance recorded:
|
||||||||||||||||||||||||
Single family
|
|
|
|
|
|
|
||||||||||||||||||
Church
|
|
|
|
|
|
|
||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
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
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Multi-family
|
|
|
|
|
||||||||||||
Church
|
|
|
|
|
||||||||||||
Commercial - other
|
|
|
|
|
||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
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
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Multi-family
|
|
|
|
|
||||||||||||
Church
|
|
|
|
|
||||||||||||
Commercial - other
|
|
|
|
|
||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
September 30,
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
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||
Multi-family
|
|
|
|
|
|
|
||||||||||||||||||
Commercial real estate
|
|
|
|
|
|
|
||||||||||||||||||
Church
|
|
|
|
|
|
|
||||||||||||||||||
Construction
|
|
|
|
|
|
|
||||||||||||||||||
Commercial - other
|
|
|
|
|
|
|
||||||||||||||||||
SBA loans | ||||||||||||||||||||||||
Consumer
|
|
|
|
|
|
|
||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
December 31, 2021
|
||||||||||||||||||||||||
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
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||
Multi-family
|
|
|
|
|
|
|
||||||||||||||||||
Commercial real estate
|
|
|
|
|
|
|
||||||||||||||||||
Church
|
|
|
|
|
|
|
||||||||||||||||||
Construction
|
|
|
|
|
|
|
||||||||||||||||||
Commercial - other
|
|
|
|
|
|
|
||||||||||||||||||
Consumer
|
|
|
|
|
|
|
||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
September 30,
2022
|
December 31, 2021
|
|||||||
(In thousands)
|
||||||||
Loans receivable held for investment:
|
||||||||
Church
|
$ |
|
$ |
|
||||
Total non-accrual loans
|
$
|
|
$
|
|
● |
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.
|
September 30,
2022
|
||||||||||||||||||||||||||||
Pass
|
Watch
|
Special Mention
|
Substandard
|
Doubtful
|
Loss
|
Total | ||||||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||||||
Single family
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$ | |||||||||||||||
Multi-family
|
|
|
|
|
|
|
||||||||||||||||||||||
Commercial real estate
|
|
|
|
|
|
|
||||||||||||||||||||||
Church
|
|
|
|
|
|
|
||||||||||||||||||||||
Construction
|
|
|
|
|
|
|
||||||||||||||||||||||
Commercial - others
|
|
|
|
|
|
|
||||||||||||||||||||||
SBA
|
||||||||||||||||||||||||||||
Consumer
|
|
|
|
|
|
|
||||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$ |
|
December 31,
2021
|
|||||||||||||||||||||||||||
|
Pass
|
Watch
|
Special Mention
|
Substandard
|
Doubtful
|
Loss
|
Total | |||||||||||||||||||||
|
(In thousands)
|
|||||||||||||||||||||||||||
Single family
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$ | |||||||||||||||
Multi-family
|
|
|
|
|
|
|
||||||||||||||||||||||
Commercial real estate
|
|
|
|
|
|
|
||||||||||||||||||||||
Church
|
|
|
|
|
|
|
||||||||||||||||||||||
Construction
|
|
|
|
|
|
|
||||||||||||||||||||||
Commercial - other
|
|
|
|
|
|
|
||||||||||||||||||||||
SBA
|
|
|
|
|
|
|
||||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$ |
Goodwill |
Core Deposit
Intangible
|
|||||||
(In thousands) |
||||||||
Balance at the beginning of the period
|
$
|
|
$
|
|
||||
Additions
|
|
|||||||
Change in deferred tax estimate
|
( |
) |
|
|||||
Amortization
|
(
|
)
|
||||||
Balance at the end of the period
|
$ |
$
|
|
Core deposit intangible acquired
|
$
|
|
||
Less: accumulated amortization | ( |
) | ||
|
$
|
|
2022
|
$
|
|
||
2023
|
|
|||
2024
|
|
|||
2025
|
|
|||
2026
|
|
|||
Thereafter
|
|
|||
$
|
|
Fair Value Measurement
|
||||||||||||||||
Quoted
Prices
in Active
Markets
for
Identical
Assets
(Level 1)
|
Significant
Other
Observable
Inputs
(Level 2)
|
Significant
Unobservable
Inputs
(Level 3)
|
Total
|
|||||||||||||
(In thousands)
|
||||||||||||||||
At September 30, 2022:
|
||||||||||||||||
Securities available-for-sale:
|
||||||||||||||||
Federal agency mortgage-backed
|
$
|
|
$ |
$
|
|
$ | ||||||||||
Federal agency CMO
|
|
|
||||||||||||||
Federal agency debt
|
|
|
||||||||||||||
Municipal bonds
|
|
|
||||||||||||||
U.S. Treasuries
|
|
|
||||||||||||||
SBA pools
|
|
|
||||||||||||||
At December 31, 2021:
|
||||||||||||||||
Securities available-for-sale:
|
||||||||||||||||
Federal agency mortgage-backed
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Federal agency CMO
|
|
|
|
|
||||||||||||
Federal agency debt
|
|
|
|
|
||||||||||||
Municipal bonds
|
|
|
|
|
||||||||||||
U.S. Treasuries
|
|
|
|
|
||||||||||||
SBA pools
|
|
|
|
|
Fair Value Measurements at September 30, 2022
|
||||||||||||||||||||
Carrying
Value
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||||||||
(In thousands)
|
||||||||||||||||||||
Financial Assets:
|
||||||||||||||||||||
Cash and cash equivalents | $ | $ | $ | $ | $ | |||||||||||||||
Securities available-for-sale |
||||||||||||||||||||
Loans receivable held for investment
|
|
|
|
|
|
|||||||||||||||
Accrued interest receivables |
||||||||||||||||||||
Bank owned life insurance |
||||||||||||||||||||
Financial Liabilities:
|
||||||||||||||||||||
Deposits
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Federal Home Loan Bank advances
|
||||||||||||||||||||
Securities sold under agreements to repurchase |
|
|
|
|
|
|||||||||||||||
Note payable |
||||||||||||||||||||
Accrued interest payable |
Fair Value Measurements at December 31, 2021
|
||||||||||||||||||||
Carrying
Value
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||||||||
(In thousands)
|
||||||||||||||||||||
Financial Assets:
|
||||||||||||||||||||
Cash and cash equivalents
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Securities available-for-sale
|
|
|
|
|
|
|||||||||||||||
Loans receivable held for investment
|
|
|
|
|
|
|||||||||||||||
Accrued interest receivables
|
|
|
|
|
|
|||||||||||||||
Bank owned life insurance
|
|
|
|
|
|
|||||||||||||||
Financial Liabilities:
|
||||||||||||||||||||
Deposits
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Federal Home Loan Bank advances
|
|
|
|
|
|
|||||||||||||||
Securities sold under agreements to repurchase | ||||||||||||||||||||
Note payable
|
|
|
|
|
|
|||||||||||||||
Accrued interest payable |
September 30, 2022
|
September 30, 2021
|
|||||||||||||||
Number
Outstanding
|
Weighted Average
Exercise Price
|
Number
Outstanding
|
Weighted Average
Exercise Price
|
|||||||||||||
Outstanding at beginning of period
|
|
$
|
|
|
$
|
|
||||||||||
Granted during period
|
|
|
|
|
||||||||||||
Exercised during period
|
|
|
|
|
||||||||||||
Forfeited or expired during period
|
(
|
)
|
|
|
|
|||||||||||
Outstanding at end of period
|
|
$
|
|
|
$
|
|
||||||||||
Exercisable at end of period
|
|
$
|
|
|
$
|
|
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
|
|||||||||||||||||
|
|
$
|
|
|
$
|
|
|||||||||||||||||
|
|
$
|
|
$
|
|
|
$
|
|
$
|
|
September 30, 2022
|
December 31, 2021
|
|||||||
(Dollars in thousands)
|
||||||||
Allocated to participants
|
|
|
||||||
Committed to be released
|
|
|
||||||
Suspense shares
|
|
|
||||||
Total ESOP shares
|
|
|
||||||
Fair value of unearned shares
|
$
|
|
$
|
|
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
|
$
|
|
|
% |
$
|
|
|
% | ||||||||
December 31,
2021:
|
||||||||||||||||
Community Bank Leverage Ratio
|
$
|
|
|
%
|
$
|
|
|
% |
ITEM 2. |
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
For the Three Months Ended
|
||||||||||||||||||||||||
September 30, 2022
|
September 30, 2021
|
|||||||||||||||||||||||
(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
|
||||||||||||||||||||||||
September 30, 2022
|
September 30, 2021
|
|||||||||||||||||||||||
(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)
|
||||||||||||
September 30, 2022:
|
||||||||||||
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
|
|||||||
December 31, 2021:
|
||||||||||||
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
|
Brian Argrett
|
||
Chief Executive Officer
|
||
Date: November 14, 2022
|
By:
|
/s/ Brenda J. Battey
|
Brenda J. Battey
|
||
Chief Financial Officer
|