|
|
|
(State or other jurisdiction of incorporation or organization)
|
(Commission File Number)
|
(I.R.S. Employer Identification Number)
|
|
|
|
(Address of principal executive offices)
|
(Zip Code)
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
||
|
|
|
Item 2.02 |
Results of Operations and Financial Condition.
|
Item 9.01 |
Financial Statements and Exhibits.
|
(d)
|
Exhibits
|
99.1 |
Press Release dated February 10, 2023, announcing results for the quarter and full year ended December 31, 2022.
|
104 |
The cover page from this Current Report on Form 8-K, formatted in Inline XBRL (included as Exhibit 101).
|
Date: February 10, 2023
|
BROADWAY FINANCIAL CORPORATION
|
|
By:
|
/s/ Brenda J. Battey
|
|
Name: Brenda J. Battey
|
||
Title: Chief Financial Officer
|
• |
Total interest income increased by $3.5 million, or 48.4%,
compared to the fourth quarter of 2021.
|
• |
Net interest margin increased by 76 basis points to 3.26% for the fourth quarter of 2022 compared to 2.50% for the fourth quarter of 2021.
|
• |
Total loans receivable increased by $119.5 million to $768.0
million at December 31, 2022, representing an increase of 18.4% since December 31, 2021.
|
• |
Total assets increased $90.8 million to $1.2 billion at December
31, 2022, representing an increase of 8.3% since December 31, 2021.
|
• |
Total stockholders’ equity increased by $138.5 million, or
98.2%, to $279.5 million, compared to $141.0 million at December 31, 2021. The increase is largely the result of the private placement of $150.0 million of Series C
Preferred Stock in June of 2022, offset by a decrease in the market value of the Company’s investment securities due to increases in interest rates.
|
For the Three Months Ended
|
||||||||||||||||||||||||
December 31, 2022
|
December 31, 2021
|
|||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
Average
Balance
|
Interest
|
Average
Yield
|
Average
Balance
|
Interest
|
Average
Yield
|
|||||||||||||||||||
Assets
|
||||||||||||||||||||||||
Interest-earning assets:
|
||||||||||||||||||||||||
Interest-earning deposits
|
$
|
32,500
|
$
|
211
|
2.60
|
%
|
$
|
223,349
|
$
|
95
|
0.17
|
%
|
||||||||||||
Securities
|
329,036
|
2,180
|
2.65
|
%
|
155,578
|
443
|
1.14
|
%
|
||||||||||||||||
Loans receivable (1)
|
740,155
|
8,129
|
4.39
|
%
|
632,209
|
6,591
|
4.17
|
%
|
||||||||||||||||
Federal Reserve Bank and FHLB stock
|
6,365
|
141
|
8.86
|
%
|
3,399
|
53
|
6.24
|
%
|
||||||||||||||||
Total interest-earning assets
|
1,108,056
|
$
|
10,661
|
3.85
|
%
|
1,014,535
|
$
|
7,182
|
2.83
|
%
|
||||||||||||||
Non-interest-earning assets
|
69,174
|
49,001
|
||||||||||||||||||||||
Total assets
|
$
|
1,177,230
|
$
|
1,063,536
|
||||||||||||||||||||
Liabilities and Stockholders’ Equity
|
||||||||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||
Money market deposits
|
$
|
188,856
|
$
|
634
|
1.34
|
%
|
$
|
200,666
|
$
|
197
|
0.39
|
%
|
||||||||||||
Savings deposits
|
64,201
|
14
|
0.09
|
%
|
70,256
|
29
|
0.17
|
%
|
||||||||||||||||
Interest checking and other demand deposits
|
304,570
|
73
|
0.10
|
%
|
301,744
|
21
|
0.03
|
%
|
||||||||||||||||
Certificate accounts
|
153,181
|
210
|
0.55
|
%
|
197,581
|
123
|
0.25
|
%
|
||||||||||||||||
Total deposits
|
710,808
|
931
|
0.52
|
%
|
770,247
|
370
|
0.19
|
%
|
||||||||||||||||
FHLB advances
|
80,742
|
533
|
2.64
|
%
|
89,682
|
452
|
2.02
|
%
|
||||||||||||||||
Other borrowings
|
70,569
|
155
|
0.88
|
%
|
61,680
|
14
|
0.09
|
%
|
||||||||||||||||
Total borrowings
|
151,311
|
688
|
1.82
|
%
|
151,362
|
466
|
1.23
|
%
|
||||||||||||||||
Total interest-bearing liabilities
|
862,119
|
$
|
1,619
|
0.75
|
%
|
921,609
|
$
|
836
|
0.36
|
%
|
||||||||||||||
Non-interest-bearing liabilities
|
36,317
|
12,347
|
||||||||||||||||||||||
Stockholders’ equity
|
278,794
|
129,580
|
||||||||||||||||||||||
Total liabilities and stockholders’ equity
|
$
|
1,177,230
|
$
|
1,063,536
|
||||||||||||||||||||
Net interest rate spread (2)
|
$
|
9,042
|
3.10
|
%
|
$
|
6,346
|
2.47
|
%
|
||||||||||||||||
Net interest rate margin (3)
|
3.26
|
%
|
2.50
|
%
|
||||||||||||||||||||
Ratio of interest-earning assets to interest-bearing liabilities
|
128.53
|
%
|
110.08
|
%
|
(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 Year Ended December 31,
|
||||||||||||||||||||||||
2022
|
2021
|
|||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
Average
Balance
|
Interest
|
Average
Yield
|
Average
Balance
|
Interest
|
Average
Yield
|
|||||||||||||||||||
Assets
|
||||||||||||||||||||||||
Interest-earning assets:
|
||||||||||||||||||||||||
Interest-earning deposits
|
$
|
147,482
|
$
|
1,677
|
1.14
|
%
|
$
|
203,493
|
$
|
302
|
0.15
|
%
|
||||||||||||
Securities
|
252,285
|
5,596
|
2.22
|
%
|
121,623
|
1,396
|
1.15
|
%
|
||||||||||||||||
Loans receivable (1)
|
674,837
|
28,732
|
4.26
|
%
|
537,872
|
22,831
|
4.24
|
%
|
||||||||||||||||
Federal Reserve Bank and FHLB stock
|
3,732
|
264
|
7.07
|
%
|
3,862
|
223
|
5.77
|
%
|
||||||||||||||||
Total interest-earning assets
|
1,078,336
|
$
|
36,269
|
3.36
|
%
|
866,850
|
$
|
24,752
|
2.86
|
%
|
||||||||||||||
Non-interest-earning assets
|
65,212
|
51,386
|
||||||||||||||||||||||
Total assets
|
$
|
1,143,549
|
$
|
918,236
|
||||||||||||||||||||
Liabilities and Stockholders’ Equity
|
||||||||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||
Money market deposits
|
$
|
192,835
|
$
|
1,288
|
0.67
|
%
|
$
|
159,157
|
$
|
660
|
0.41
|
%
|
||||||||||||
Savings deposits
|
66,033
|
58
|
0.09
|
%
|
67,660
|
204
|
0.30
|
%
|
||||||||||||||||
Interest checking and other demand deposits
|
291,114
|
220
|
0.08
|
%
|
223,003
|
105
|
0.05
|
%
|
||||||||||||||||
Certificate accounts
|
182,050
|
538
|
0.30
|
%
|
192,795
|
707
|
0.37
|
%
|
||||||||||||||||
Total deposits
|
732,032
|
2,104
|
0.29
|
%
|
642,615
|
1,676
|
0.26
|
%
|
||||||||||||||||
FHLB advances
|
61,593
|
1,071
|
1.74
|
%
|
100,471
|
1,968
|
1.96
|
%
|
||||||||||||||||
Junior subordinated debentures
|
-
|
-
|
-
|
%
|
2,335
|
60
|
2.57
|
%
|
||||||||||||||||
Other borrowings
|
61,106
|
234
|
0.38
|
%
|
46,836
|
45
|
0.10
|
%
|
||||||||||||||||
Total borrowings
|
122,699
|
1,305
|
1.06
|
%
|
149,642
|
2,073
|
1.39
|
%
|
||||||||||||||||
Total interest-bearing liabilities
|
854,731
|
$
|
3,409
|
0.40
|
%
|
792,257
|
$
|
3,749
|
0.47
|
%
|
||||||||||||||
Non-interest-bearing liabilities
|
64,931
|
20,050
|
||||||||||||||||||||||
Stockholders’ equity
|
223,887
|
105,929
|
||||||||||||||||||||||
Total liabilities and stockholders’ equity
|
$
|
1,143,549
|
$
|
918,236
|
||||||||||||||||||||
Net interest rate spread (2)
|
$
|
32,860
|
2.96
|
%
|
21,003
|
2.38
|
%
|
|||||||||||||||||
Net interest rate margin (3)
|
3.05
|
%
|
2.42
|
%
|
||||||||||||||||||||
Ratio of interest-earning assets to interest-bearing liabilities
|
126.16
|
%
|
109.42
|
%
|
(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.
|
December 31, 2022
|
December 31, 2021
|
|||||||
Selected Financial Condition Data and Ratios:
|
||||||||
Cash and cash equivalents
|
$
|
16,105
|
$
|
231,520
|
||||
Securities available-for-sale, at fair value
|
328,749
|
156,396
|
||||||
Loans receivable held for investment
|
772,434
|
651,904
|
||||||
Allowance for loan losses
|
(4,388
|
)
|
(3,391
|
)
|
||||
Loans receivable held for investment, net of allowance
|
768,046
|
648,513
|
||||||
Total assets
|
1,184,293
|
1,093,505
|
||||||
Deposits
|
686,916
|
788,052
|
||||||
Securities sold under agreements to repurchase
|
63,471
|
51,960
|
||||||
FHLB advances
|
128,344
|
85,952
|
||||||
Notes payable
|
14,000
|
14,000
|
||||||
Total stockholders' equity
|
279,482
|
141,000
|
||||||
Book value per share
|
$
|
1.76
|
$
|
1.92
|
||||
Equity to total assets
|
23.60
|
%
|
12.89
|
%
|
||||
Asset Quality Ratios:
|
||||||||
Non-accrual loans to total loans
|
0.02
|
%
|
0.10
|
%
|
||||
Non-performing assets to total assets
|
0.01
|
%
|
0.06
|
%
|
||||
Allowance for loan losses to total gross loans
|
0.57
|
%
|
0.52
|
%
|
||||
Allowance for loan losses to non-performing loans
|
3047.22
|
%
|
495.80
|
%
|
||||
Non-Performing Assets:
|
||||||||
Non-accrual loans
|
$
|
144
|
$
|
684
|
||||
Loans delinquent 90 days or more and still accruing
|
-
|
-
|
||||||
Real estate acquired through foreclosure
|
-
|
-
|
||||||
Total non-performing assets
|
$
|
144
|
$
|
684
|
||||
Delinquent loans (including less than 30 days delinquent)
|
$
|
8,253
|
$
|
2,423
|
|
Three Months Ended December 31,
|
|
Twelve Months Ended December 31,
|
||||||||||||||||
Selected Operating Data and Ratios:
|
2022
|
|
2021
|
|
2022
|
|
2021
|
||||||||||||
Interest income
|
$
|
10,661
|
|
$
|
7,182
|
|
$
|
36,269
|
|
$
|
24,752
|
||||||||
Interest expense
|
1,619
|
|
836
|
|
3,409
|
|
3,749
|
||||||||||||
Net interest income
|
9,042
|
|
6,346
|
|
32,860
|
|
21,003
|
||||||||||||
Loan loss provision (benefit)
|
404
|
|
(270
|
)
|
|
996
|
|
176
|
|||||||||||
Net interest income after loan loss provision
|
8,638
|
|
6,616
|
|
31,864
|
|
20,827
|
||||||||||||
Non-interest income
|
288
|
|
290
|
|
1,195
|
|
3,214
|
||||||||||||
Non-interest expense
|
(6,643
|
)
|
|
(8,947
|
)
|
|
(24,940
|
)
|
|
(28,927
|
)
|
||||||||
Income (loss) before income taxes
|
2,283
|
|
(2,041
|
)
|
|
8,119
|
|
(4,886
|
)
|
||||||||||
Income tax expense (benefit)
|
759
|
|
(640
|
)
|
|
2,413
|
|
(937
|
)
|
||||||||||
Net income (loss)
|
$
|
1,524
|
|
$
|
(1,401
|
)
|
|
$
|
5,706
|
|
$
|
(3,949
|
)
|
||||||
Net income - non-controlling interest
|
19
|
|
44
|
|
70
|
|
101
|
||||||||||||
Net income (loss) Broadway Financial Corporation
|
$
|
1,505
|
|
$
|
(1,445
|
)
|
|
$
|
5,636
|
|
$
|
(4,050
|
)
|
||||||
|
|
|
|
||||||||||||||||
Earnings (loss) per common share-diluted
|
$
|
0.02
|
|
$
|
(0.02
|
)
|
|
$
|
0.08
|
|
$
|
(0.07
|
)
|
||||||
|
|
|
|
||||||||||||||||
Loan originations (1)
|
$
|
67,926
|
|
$
|
69,678
|
|
$
|
273,419
|
|
$
|
266,987
|
||||||||
|
|
|
|
||||||||||||||||
Net recoveries to average loans
|
(0.00
|
)%
|
(2)
|
(0.00
|
)%
|
(2)
|
(0.00
|
)%
|
(2)
|
(0.00
|
)%
|
||||||||
Return on average assets
|
0.52
|
%
|
(2)
|
-0.54
|
%
|
(2)
|
0.50
|
%
|
(2)
|
-0.44
|
%
|
||||||||
Return on average equity
|
2.19
|
%
|
(2)
|
-4.46
|
%
|
(2)
|
2.55
|
%
|
(2)
|
-3.82
|
%
|
||||||||
Net interest margin
|
3.26
|
%
|
(2)
|
2.50
|
%
|
(2)
|
3.05
|
%
|
(2)
|
2.42
|
%
|
(1) |
Does not include net deferred origination costs.
|
(2) |
Annualized
|
Document and Entity Information |
Feb. 10, 2023 |
---|---|
Cover [Abstract] | |
Document Type | 8-K |
Amendment Flag | false |
Document Period End Date | Feb. 10, 2023 |
Entity File Number | 001-39043 |
Entity Registrant Name | BROADWAY FINANCIAL CORPORATION |
Entity Central Index Key | 0001001171 |
Entity Incorporation, State or Country Code | DE |
Entity Tax Identification Number | 95-4547287 |
Entity Address, Address Line One | 4601 Wilshire Boulevard Suite 150 |
Entity Address, City or Town | Los Angeles |
Entity Address, State or Province | CA |
Entity Address, Postal Zip Code | 90010 |
City Area Code | 323 |
Local Phone Number | 634-1700 |
Title of 12(b) Security | Class A Common Stock, par value $0.01 per share (including attached preferred stock purchase rights) |
Trading Symbol | BYFC |
Security Exchange Name | NASDAQ |
Entity Emerging Growth Company | false |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
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