QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
|
|
(State or other jurisdiction of
incorporation or organization)
|
(I.R.S. Employer
Identification No.)
|
|
|
|
(Address of principal executive offices)
|
(Zip Code)
|
Title of each class:
|
Trading Symbol(s)
|
Name of each exchange on which registered:
|
||
(including attached preferred stock purchase rights)
|
|
|
Large accelerated filer
|
☐
|
Accelerated filer
|
☐
|
|
☒
|
Smaller reporting company
|
|
Emerging growth company
|
|
TABLE OF CONTENTS
|
|||
Page
|
|||
PART I.
|
FINANCIAL STATEMENTS
|
||
Item 1.
|
Consolidated Financial Statements (Unaudited)
|
||
1
|
|||
2
|
|||
3
|
|||
4
|
|||
5
|
|||
Item 2.
|
25
|
||
Item 3.
|
33 | ||
Item 4.
|
33 | ||
PART II.
|
OTHER INFORMATION
|
||
Item 1.
|
34 | ||
Item 1A.
|
34 | ||
Item 2.
|
34 | ||
Item 3.
|
34 | ||
Item 4.
|
34 | ||
Item 5.
|
34 | ||
Item 6.
|
34 | ||
35 |
March 31, 2023
|
December 31, 2022
|
|||||||
(Unaudited)
|
||||||||
Assets:
|
||||||||
Cash and due from banks
|
$
|
|
$
|
|
||||
Interest-bearing deposits in other banks
|
|
|
||||||
Cash and cash equivalents
|
|
|
||||||
Securities available-for-sale, at fair value
|
|
|
||||||
Loans receivable held for investment, net of allowance of $
|
|
|
||||||
Accrued interest receivable
|
|
|
||||||
Federal Home Loan Bank (FHLB) stock
|
|
|
||||||
Federal Reserve Bank (FRB) stock
|
||||||||
Office properties and equipment, net
|
|
|
||||||
Bank owned life insurance
|
|
|
||||||
Deferred tax assets, net
|
|
|
||||||
Core deposit intangible, net
|
||||||||
Goodwill
|
||||||||
Other assets
|
|
|
||||||
Total assets
|
$
|
|
$
|
|
||||
Liabilities and stockholders’ equity
|
||||||||
Liabilities:
|
||||||||
Deposits
|
$
|
|
$
|
|
||||
Securities sold under agreements to repurchase
|
||||||||
FHLB advances
|
|
|
||||||
Notes payable
|
||||||||
Accrued expenses and other liabilities
|
|
|
||||||
Total liabilities
|
|
|
||||||
Non-Cumulative Redeemable Perpetual Preferred stock, Series C;
authorized
|
||||||||
Common stock, Class A, $
|
|
|
||||||
Common stock, Class B, $
|
||||||||
Common stock, Class C, $
|
|
|
||||||
Additional paid-in capital
|
|
|
||||||
Retained earnings
|
|
|
||||||
Unearned Employee Stock Ownership Plan (ESOP) shares
|
(
|
)
|
(
|
)
|
||||
Accumulated other comprehensive loss, net of tax
|
(
|
)
|
(
|
)
|
||||
Treasury stock-at cost,
|
(
|
)
|
(
|
)
|
||||
Total Broadway Financial Corporation and Subsidiary stockholders’ equity
|
|
|
||||||
Non-controlling interest
|
||||||||
Total liabilities and stockholders’ equity
|
$
|
|
$
|
|
|
Three Months Ended
March 31,
|
|||||||
|
2023
|
2022
|
||||||
Interest income:
|
||||||||
Interest and fees on loans receivable
|
$
|
|
$
|
|
||||
Interest on available-for-sale securities
|
|
|
||||||
Other interest income
|
|
|
||||||
Total interest income
|
|
|
||||||
|
||||||||
Interest expense:
|
||||||||
Interest on deposits
|
|
|
||||||
Interest on borrowings
|
|
|
||||||
Total interest expense
|
|
|
||||||
|
||||||||
Net interest income
|
|
|
||||||
Provision for credit losses
|
|
|
||||||
Net interest income after provision for credit losses
|
|
|
||||||
|
||||||||
Non-interest income:
|
||||||||
Service charges
|
|
|
||||||
Other
|
|
|
||||||
Total non-interest income
|
|
|
||||||
|
||||||||
Non-interest expense:
|
||||||||
Compensation and benefits
|
|
|
||||||
Occupancy expense
|
|
|
||||||
Information services
|
|
|
||||||
Professional services
|
|
|
||||||
Supervisory costs
|
|
|
||||||
Office services and supplies
|
|
|
||||||
Advertising and promotional expense | ||||||||
Corporate insurance
|
|
|
||||||
Appraisal and other loan expense |
||||||||
Amortization of core deposit intangible
|
|
|
||||||
Travel expense |
||||||||
Other
|
|
|
||||||
Total non-interest expense
|
|
|
||||||
|
||||||||
Income before income taxes
|
|
|
||||||
Income tax expense
|
|
|
||||||
Net income
|
$
|
|
$
|
|
||||
Less: Net income attributable to non-controlling interest
|
|
|
||||||
Net income attributable to Broadway Financial Corporation
|
$
|
|
$
|
|
||||
|
||||||||
Other comprehensive income, net of tax:
|
||||||||
Unrealized gains (losses) on securities available-for-sale arising during the period
|
$
|
|
$
|
(
|
)
|
|||
Income tax expense (benefit)
|
|
(
|
)
|
|||||
Other comprehensive income (loss), net of tax
|
|
(
|
)
|
|||||
|
||||||||
Comprehensive income (loss)
|
$
|
|
$
|
(
|
)
|
|||
|
||||||||
Earnings per common share-basic
|
$
|
|
$
|
|
||||
Earnings per common share-diluted
|
$
|
|
$
|
|
Three Months Ended
March 31, |
||||||||
2023
|
2022
|
|||||||
(In thousands)
|
||||||||
Cash flows from operating activities:
|
||||||||
Net income
|
$
|
|
$
|
|
||||
Adjustments to reconcile net income to net cash provided by
(used in) operating activities:
|
||||||||
Provision for credit losses
|
|
|
||||||
Depreciation
|
|
|
||||||
Net change of deferred loan origination costs
|
(
|
)
|
(
|
)
|
||||
Net amortization of premiums & discounts on
available-for-sale securities
|
(
|
)
|
|
|||||
Amortization of purchase accounting marks on loans
|
|
(
|
)
|
|||||
Amortization of core deposit intangible
|
|
|
||||||
Director compensation expense-common stock
|
|
|
||||||
Accretion of premium on FHLB advances
|
|
(
|
)
|
|||||
Stock-based compensation expense
|
|
|
||||||
ESOP compensation expense
|
(
|
)
|
|
|||||
Earnings on bank owned life insurance
|
(
|
)
|
(
|
)
|
||||
Change in assets and liabilities:
|
||||||||
Net change in deferred taxes
|
|
|
||||||
Net change in accrued interest receivable
|
( |
) | ||||||
Net change in other assets
|
|
(
|
)
|
|||||
Net change in accrued expenses and other liabilities
|
|
(
|
)
|
|||||
Net cash provided by (used in) operating activities
|
|
(
|
)
|
|||||
Cash flows from investing activities:
|
||||||||
Net change in loans receivable held for investment
|
(
|
)
|
(
|
)
|
||||
Principal payments on available-for-sale securities
|
|
|
||||||
Purchase of available-for-sale securities
|
|
(
|
)
|
|||||
Purchase of FHLB stock
|
(
|
)
|
|
|||||
Proceeds from redemption of FHLB stock
|
|
|
||||||
Proceeds from redemption of FRB stock |
||||||||
Purchase of office properties and equipment
|
(
|
)
|
(
|
)
|
||||
Net cash used in investing activities
|
(
|
)
|
(
|
)
|
||||
Cash flows from financing activities:
|
||||||||
Net change in deposits
|
(
|
)
|
|
|||||
Net change in securities sold under agreements to repurchase
|
|
|
||||||
Increase in unreleased ESOP shares
|
(
|
)
|
|
|||||
Dividends paid on preferred stock
|
|
(
|
)
|
|||||
Proceeds from FHLB advances
|
|
|
||||||
Repayments of FHLB advances
|
(
|
)
|
(
|
)
|
||||
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
|
|
|
||||||
Supplemental non-cash disclosures: |
||||||||
Common stock issued in exchange for preferred stock |
|
Three-Month Period Ended March 31,
2023 and 2022
|
|||||||||||||||||||||||||||||||||||||||
|
Preferred Stock Non-Voting
|
Common
Stock
Voting
|
Common
Stock Non-Voting
|
Additional
Paid-in
Capital
|
Accumulated Other Comprehensive (Loss)
|
Retained Earnings
|
Unearned
ESOP Shares
|
Treasury
Stock
|
Non-Controlling Interest
|
Total
Stockholders’
Equity
|
||||||||||||||||||||||||||||||
|
(In thousands)
|
|||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2023
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
$
|
|
|||||||||||||||||
Cumulative effect of change related to adoption of ASU 2016-13
|
( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||
Adjusted balance, January 1, 2023
|
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||||
Net income
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||
Release of unearned ESOP shares
|
|
|
|
(
|
)
|
|
|
(
|
)
|
|
|
(
|
)
|
|||||||||||||||||||||||||||
Increase in unreleased shares
|
( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||
Stock-based compensation expense
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Director stock compensation expense
|
||||||||||||||||||||||||||||||||||||||||
Other comprehensive income, net of tax
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||
Balance at March 31, 2023
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
$
|
|
|||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2022
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
$
|
|
|||||||||||||||||
Net income
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||
Conversion of preferred stock into common stock
|
(
|
)
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Conversion of non-voting common shares into voting common shares
|
( |
) | ||||||||||||||||||||||||||||||||||||||
Release of unearned ESOP shares
|
||||||||||||||||||||||||||||||||||||||||
Dividends paid on preferred stock
|
( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||
Director stock compensation expense
|
||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||
Other comprehensive loss, net of tax
|
|
|
|
|
(
|
)
|
|
|
|
|
(
|
)
|
||||||||||||||||||||||||||||
Balance at March 31, 2022
|
$ |
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
$
|
|
Pre-CECL Adoption
|
Impact of
CECL Adoption
|
As Reported
Under CECL
|
||||||||||
(In thousands)
|
||||||||||||
Assets:
|
||||||||||||
Allowance for credit losses on available-for-sale securities
|
$
|
|
$
|
|
$
|
|
||||||
Allowance for credit losses on loans
|
|
|
|
|||||||||
Deferred tax assets
|
|
|
|
|||||||||
Liabilities:
|
||||||||||||
Allowance for credit losses on off-balance sheet exposures
|
|
(
|
)
|
|
||||||||
Stockholders’ equity:
|
||||||||||||
Retained earnings
|
|
(
|
)
|
|
Three Months Ended
March 31,
|
||||||||
2023
|
2022
|
|||||||
(Dollars in thousands, except
share and per share data)
|
||||||||
Net income attributable to Broadway Financial Corporation
|
$
|
|
$
|
|
||||
Less net income attributable to participating securities
|
|
|
||||||
Income available to common stockholders
|
$
|
|
$
|
|
||||
Weighted average common shares outstanding for basic earnings per common share
|
|
|
||||||
Add: dilutive effects of unvested restricted stock awards | ||||||||
Add: dilutive effects of assumed exercise of stock options |
||||||||
Weighted average common shares outstanding for diluted earnings per common share
|
|
|
||||||
Earnings per common share - basic
|
$
|
|
$
|
|
||||
Earnings per common share - diluted
|
$
|
|
$
|
|
Amortized
Cost |
Gross
Unrealized Gains
|
Gross
Unrealized Losses
|
Fair
Value
|
|||||||||||||
(In thousands)
|
||||||||||||||||
March 31, 2023:
|
||||||||||||||||
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, 2022:
|
||||||||||||||||
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
|
|||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
March 31, 2023:
|
||||||||||||||||||||||||
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, 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
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
March 31, 2023
|
December 31, 2022
|
|||||||
(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 credit losses (2)
|
(
|
)
|
(
|
)
|
||||
Loans receivable, net
|
$
|
|
$
|
|
(1)
|
|
(2) |
|
|
March 31, 2023
|
December 31, 2022
|
||||||
Real estate: |
(In thousands) |
|||||||
Single family
|
$ |
$
|
|
|||||
Commercial – other
|
|
|||||||
$ |
$
|
|
March 31, 2023
|
March 31, 2022
|
|||||||
(In thousands) |
||||||||
Balance at the beginning of the period
|
$ |
$
|
|
|||||
Deduction due to payoffs
|
(
|
)
|
||||||
Accretion
|
(
|
)
|
||||||
Balance at the end of the period
|
$ |
$
|
|
March 31, 2023
|
||||||||||||||||||||||||
Beginning
Balance
|
Impact of
CECL
Adoption
|
Charge-offs
|
Recoveries
|
Provision
(benefit)
|
Ending Balance
|
|||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
Loans receivable held for investment:
|
||||||||||||||||||||||||
Single family
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||||||||
Multi-family
|
|
|
|
|
|
|
||||||||||||||||||
Commercial real estate
|
|
|
|
|
|
|
||||||||||||||||||
Church
|
|
|
|
|
(
|
)
|
|
|||||||||||||||||
Construction
|
|
|
|
|
|
|
||||||||||||||||||
Commercial - other
|
|
|
|
|
(
|
)
|
|
|||||||||||||||||
SBA loans
|
|
|
|
|
|
|
||||||||||||||||||
Consumer
|
|
(
|
)
|
|
|
|
|
|||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
For the Three Months Ended March 31, 2022
|
||||||||||||||||||||||||||||||||
Real Estate
|
||||||||||||||||||||||||||||||||
Single
Family
|
Multi-
Family
|
Commercial
Real Estate
|
Church
|
Construction
|
Commercial - Other
|
Consumer
|
Total
|
|||||||||||||||||||||||||
(In thousands) |
||||||||||||||||||||||||||||||||
Beginning balance
|
$
|
|
$ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||
Provision for (recapture of) loan losses
|
|
( |
) | ( |
) | |||||||||||||||||||||||||||
Recoveries
|
|
|||||||||||||||||||||||||||||||
Loans charged off
|
|
|||||||||||||||||||||||||||||||
Ending balance
|
$
|
|
$ | $ | $ | $ | $ |
March 31, 2023
|
||||||||||||||||||||
|
Single Family
|
Condominium
|
Church
|
Business Assets
|
Total
|
|||||||||||||||
Real estate:
|
(In thousands)
|
|||||||||||||||||||
Single family
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Commercial real estate
|
|
|
|
|
|
|||||||||||||||
Church
|
|
|
|
|
|
|||||||||||||||
Commercial – other
|
|
|
|
|
|
|||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
December 31, 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, 2022
|
||||||||||||
Unpaid
Principal Balance |
Recorded
Investment
|
Allowance for
Loan Losses
Allocated
|
||||||||||
(In thousands)
|
||||||||||||
With no related allowance recorded:
|
||||||||||||
Church
|
$
|
|
$
|
|
$
|
–
|
||||||
With an allowance recorded:
|
||||||||||||
Single family
|
|
|
|
|||||||||
Church
|
|
|
|
|||||||||
Total
|
$
|
|
$
|
|
$
|
|
Three Months Ended March
31, 2022
|
||||||||
Average
Recorded
Investment
|
Cash Basis
Interest
Income
Recognized
|
|||||||
(In thousands)
|
||||||||
Single family
|
$
|
|
$
|
|
||||
Multi-family
|
|
|
||||||
Church
|
|
|
||||||
Total
|
$
|
|
$
|
|
March 31, 2023
|
||||||||||||||||||||||||
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, 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
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
March 31, 2023
|
December 31, 2022
|
|||||||
(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.
|
Term Loans Amortized Cost Basis by Origination Year - As of March 31, 2023
|
||||||||||||||||||||||||||||||||
|
2023
|
2022
|
2021
|
2020
|
2019
|
Prior
|
Revolving Loans
|
Total
|
||||||||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||||||||||
Single family:
|
||||||||||||||||||||||||||||||||
Pass
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Watch
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Special Mention
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Substandard
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
|
||||||||||||||||||||||||||||||||
Multi-family:
|
||||||||||||||||||||||||||||||||
Pass
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Watch
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Special Mention
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Substandard
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
|
||||||||||||||||||||||||||||||||
Commercial real estate:
|
||||||||||||||||||||||||||||||||
Pass
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Watch
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Special Mention
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Substandard
|
|
|
|
$
|
|
$
|
|
|
$
|
|
$
|
|
||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
|
||||||||||||||||||||||||||||||||
Church:
|
||||||||||||||||||||||||||||||||
Pass
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Watch
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Special Mention
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Substandard
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
|
||||||||||||||||||||||||||||||||
Construction:
|
||||||||||||||||||||||||||||||||
Pass
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Watch
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Special Mention
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Substandard
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
|
||||||||||||||||||||||||||||||||
Commercial – others:
|
||||||||||||||||||||||||||||||||
Pass
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Watch
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Special Mention
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Substandard
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
|
||||||||||||||||||||||||||||||||
SBA:
|
||||||||||||||||||||||||||||||||
Pass
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Watch
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Special Mention
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Substandard
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
|
||||||||||||||||||||||||||||||||
Consumer:
|
||||||||||||||||||||||||||||||||
Pass
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Watch
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Special Mention
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Substandard
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
|
||||||||||||||||||||||||||||||||
Total loans:
|
||||||||||||||||||||||||||||||||
Pass
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Watch
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Special Mention
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Substandard
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Total loans
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|
December 31, 2022
|
|||||||||||||||||||||||||||
|
Pass
|
Watch
|
Special Mention
|
Substandard
|
Doubtful
|
Loss
|
Total | |||||||||||||||||||||
Single family
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$ | |||||||||||||||
Multi-family
|
|
|
|
|
|
|
||||||||||||||||||||||
Commercial real estate
|
|
|
|
|
|
|
||||||||||||||||||||||
Church
|
|
|
|
|
|
|
||||||||||||||||||||||
Construction
|
|
|
|
|
|
|
||||||||||||||||||||||
Commercial – others
|
|
|
|
|
|
|
||||||||||||||||||||||
SBA
|
|
|
|
|
|
|||||||||||||||||||||||
Consumer |
||||||||||||||||||||||||||||
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 | ( |
) | ||
|
$
|
|
2023
|
$
|
|
||
2024
|
|
|||
2025
|
|
|||
2026
|
|
|||
2027
|
|
|||
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 March 31, 2023:
|
||||||||||||||||
Securities available-for-sale:
|
||||||||||||||||
Federal agency mortgage-backed
|
$
|
|
$ |
$
|
|
$ | ||||||||||
Federal agency CMO
|
|
|
||||||||||||||
Federal agency debt
|
|
|
||||||||||||||
Municipal bonds
|
|
|
||||||||||||||
U.S. Treasuries
|
|
|
||||||||||||||
SBA pools
|
|
|
||||||||||||||
At December 31, 2022:
|
||||||||||||||||
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 March 31, 2023
|
||||||||||||||||||||
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
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
FHLB advances
|
||||||||||||||||||||
Securities sold under agreements to repurchase |
|
|
|
|
|
|||||||||||||||
Note payable |
||||||||||||||||||||
Accrued interest payable |
Fair Value Measurements at December 31, 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
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
FHLB advances
|
|
|
|
|
|
|||||||||||||||
Securities sold under agreements to repurchase | ||||||||||||||||||||
Note payable
|
|
|
|
|
|
|||||||||||||||
Accrued interest payable |
March 31, 2023
|
||||||||
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
|
|||||||||||||||||
|
|
$
|
|
$
|
|
|
$
|
|
$
|
|
March 31, 2023
|
December 31, 2022
|
|||||||
(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)
|
||||||||||||||||
March 31,
2023:
|
||||||||||||||||
Community Bank Leverage Ratio
|
$
|
|
|
% |
$
|
|
|
% | ||||||||
December 31,
2022:
|
||||||||||||||||
Community Bank Leverage Ratio
|
$
|
|
|
%
|
$
|
|
|
% |
ITEM 2. |
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
For the Three Months Ended
|
||||||||||||||||||||||||
March 31, 2023
|
March 31, 2022
|
|||||||||||||||||||||||
(Dollars in Thousands)
|
Average Balance
|
Interest
|
Average Yield/Cost
|
Average Balance
|
Interest
|
Average Yield/Cost
|
||||||||||||||||||
Assets
|
||||||||||||||||||||||||
Interest-earning assets:
|
||||||||||||||||||||||||
Interest-earning deposits
|
$
|
17,044
|
$
|
119
|
2.79
|
%
|
$
|
220,266
|
$
|
84
|
0.15
|
%
|
||||||||||||
Securities
|
328,767
|
2,180
|
2.65
|
%
|
160,968
|
553
|
1.37
|
%
|
||||||||||||||||
Loans receivable (1)
|
762,669
|
8,535
|
4.48
|
%
|
653,493
|
7,336
|
4.49
|
%
|
||||||||||||||||
FRB and FHLB stock
|
10,665
|
209
|
7.84
|
%
|
3,046
|
38
|
4.99
|
%
|
||||||||||||||||
Total interest-earning assets
|
1,119,145
|
$
|
11,043
|
3.95
|
%
|
1,037,773
|
$
|
8,011
|
3.09
|
%
|
||||||||||||||
Non-interest-earning assets
|
67,947
|
74,542
|
||||||||||||||||||||||
Total assets
|
$
|
1,187,092
|
$
|
1,112,315
|
||||||||||||||||||||
Liabilities and Stockholders’ Equity
|
||||||||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||
Money market deposits
|
$
|
134,047
|
$
|
771
|
2.30
|
%
|
$
|
207,078
|
$
|
189
|
0.37
|
%
|
||||||||||||
Savings deposits
|
61,317
|
13
|
0.08
|
%
|
66,825
|
8
|
0.05
|
%
|
||||||||||||||||
Interest checking and other demand deposits
|
239,024
|
77
|
0.13
|
%
|
230,461
|
39
|
0.07
|
%
|
||||||||||||||||
Certificate accounts
|
147,260
|
442
|
1.20
|
%
|
201,446
|
114
|
0.23
|
%
|
||||||||||||||||
Total deposits
|
581,648
|
1,303
|
0.90
|
%
|
705,810
|
350
|
0.20
|
%
|
||||||||||||||||
FHLB advances
|
145,201
|
1,323
|
3.64
|
%
|
77,849
|
342
|
1.76
|
%
|
||||||||||||||||
Other borrowings
|
69,618
|
143
|
0.82
|
%
|
68,019
|
147
|
0.86
|
%
|
||||||||||||||||
Total borrowings
|
214,819
|
1,466
|
2.73
|
%
|
145,868
|
489
|
1.34
|
%
|
||||||||||||||||
Total interest-bearing liabilities
|
796,467
|
$
|
2,769
|
1.39
|
%
|
851,678
|
$
|
839
|
0.39
|
%
|
||||||||||||||
Non-interest-bearing liabilities
|
109,955
|
121,912
|
||||||||||||||||||||||
Stockholders’ equity
|
280,670
|
138,725
|
||||||||||||||||||||||
Total liabilities and stockholders’ equity
|
$
|
1,187,092
|
$
|
1,112,315
|
||||||||||||||||||||
Net interest rate spread (2)
|
$
|
8,274
|
2.56
|
%
|
$
|
7,172
|
2.69
|
%
|
||||||||||||||||
Net interest rate margin (3)
|
2.96
|
%
|
2.76
|
%
|
||||||||||||||||||||
Ratio of interest-earning assets to interest-bearing liabilities
|
140.51
|
%
|
121.85
|
%
|
(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)
|
||||||||||||
March 31, 2023:
|
||||||||||||
Common book value
|
$
|
129,385
|
73,503,292
|
$
|
1.76
|
|||||||
Less:
|
||||||||||||
Goodwill
|
25,858
|
|||||||||||
Net unamortized core deposit intangible
|
2,403
|
|||||||||||
Tangible book value
|
$
|
101,124
|
73,503,292
|
$
|
1.38
|
|||||||
December 31, 2022:
|
||||||||||||
Common book value
|
$
|
129,482
|
73,432,517
|
$
|
1.76
|
|||||||
Less:
|
||||||||||||
Goodwill
|
25,858
|
|||||||||||
Net unamortized core deposit intangible
|
2,501
|
|||||||||||
Tangible book value
|
$
|
101,123
|
$
|
73,432,517
|
$
|
1.38
|
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 Registrant 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: May 16, 2023
|
By:
|
/s/ Brian Argrett
|
Brian Argrett
|
||
Chief Executive Officer
|
||
Date: May 16, 2023
|
By:
|
/s/ Brenda J. Battey
|
Brenda J. Battey
|
||
Chief Financial Officer
|
1. |
I have reviewed this quarterly report on Form 10-Q of Broadway Financial Corporation;
|
2. |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such
statements were made, not misleading with respect to the period covered by this report;
|
3. |
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of
the registrant as of, and for, the periods presented in this report;
|
4. |
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal
control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a) |
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including
its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b) |
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability
of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c) |
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of
the period covered by this report based on such evaluation; and
|
d) |
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the
case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5. |
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the
registrant’s board of directors (or persons performing the equivalent functions):
|
a) |
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record,
process, summarize and report financial information; and
|
b) |
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date: May 16, 2023
|
By:
|
/s/ Brian Argrett
|
Brian Argrett
|
||
Chief Executive Officer
|
1. |
I have reviewed this quarterly report on Form 10-Q of Broadway Financial Corporation;
|
2. |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such
statements were made, not misleading with respect to the period covered by this report;
|
3. |
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of
the registrant as of, and for, the periods presented in this report;
|
4. |
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal
control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a) |
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including
its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b) |
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability
of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c) |
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of
the period covered by this report based on such evaluation; and
|
d) |
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the
case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5. |
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the
registrant’s board of directors (or persons performing the equivalent functions):
|
a) |
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record,
process, summarize and report financial information; and
|
b) |
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date: May 16, 2023
|
By:
|
/s/ Brenda J. Battey
|
Brenda J. Battey
|
||
Chief Financial Officer
|
Date: May 16, 2023
|
By:
|
/s/ Brian Argrett
|
Brian Argrett
|
||
Chief Executive Officer
|
Date: May 16, 2023
|
By:
|
/s/ Brenda J. Battey
|
Brenda J. Battey
|
||
Chief Financial Officer
|
Consolidated Statements of Operations and Comprehensive income (loss) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Interest income: | ||
Interest and fees on loans receivable | $ 8,666 | $ 7,336 |
Interest on available-for-sale securities | 2,180 | 591 |
Other interest income | 328 | 84 |
Total interest income | 11,174 | 8,011 |
Interest expense: | ||
Interest on deposits | 1,303 | 350 |
Interest on borrowings | 1,597 | 489 |
Total interest expense | 2,900 | 839 |
Net interest income | 8,274 | 7,172 |
Provision for credit losses | 88 | 148 |
Net interest income after provision for credit losses | 8,186 | 7,024 |
Non-interest income: | ||
Service charges | 61 | 64 |
Other | 228 | 217 |
Total non-interest income | 289 | 281 |
Non-interest expense: | ||
Compensation and benefits | 3,749 | 3,619 |
Occupancy expense | 303 | 442 |
Information services | 715 | 865 |
Professional services | 505 | 364 |
Supervisory costs | 94 | 157 |
Office services and supplies | 22 | 61 |
Advertising and promotional expense | 68 | 50 |
Corporate insurance | 62 | 53 |
Appraisal and other loan expense | 43 | 30 |
Amortization of core deposit intangible | 98 | 109 |
Travel expense | 78 | 27 |
Other | 469 | 183 |
Total non-interest expense | 6,206 | 5,960 |
Income before income taxes | 2,269 | 1,345 |
Income tax expense | 674 | 363 |
Net income | 1,595 | 982 |
Less: Net income attributable to non-controlling interest | 22 | 24 |
Net income attributable to Broadway Financial Corporation | 1,573 | 958 |
Other comprehensive income, net of tax: | ||
Unrealized gains (losses) on securities available-for-sale arising during the period | 3,433 | (8,154) |
Income tax expense (benefit) | 988 | (2,307) |
Other comprehensive income (loss), net of tax | 2,445 | (5,847) |
Comprehensive income (loss) | $ 4,018 | $ (4,889) |
Earnings per common share-basic (in dollars per share) | $ 0.02 | $ 0.01 |
Earnings per common share-diluted (in dollars per share) | $ 0.02 | $ 0.01 |
Consolidated Statements of Cash Flows - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Cash flows from operating activities: | ||
Net income | $ 1,595 | $ 982 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Provision for credit losses | 88 | 148 |
Depreciation | 172 | 30 |
Net change of deferred loan origination costs | (223) | (148) |
Net amortization of premiums & discounts on available-for-sale securities | (253) | 118 |
Amortization of purchase accounting marks on loans | 0 | (465) |
Amortization of core deposit intangible | 98 | 109 |
Accretion of premium on FHLB advances | 1 | (11) |
ESOP compensation expense | (202) | 18 |
Earnings on bank owned life insurance | (9) | (10) |
Change in assets and liabilities: | ||
Net change in deferred taxes | 569 | 234 |
Net change in accrued interest receivable | (246) | 923 |
Net change in other assets | 42 | (3,524) |
Net change in accrued expenses and other liabilities | 2,035 | (311) |
Net cash provided by (used in) operating activities | 3,801 | (1,808) |
Cash flows from investing activities: | ||
Net change in loans receivable held for investment | (9,681) | (4,396) |
Principal payments on available-for-sale securities | 3,409 | 4,724 |
Purchase of available-for-sale securities | 0 | (26,908) |
Purchase of FHLB stock | (1,765) | 0 |
Proceeds from redemption of FHLB stock | 0 | 351 |
Proceeds from redemption of FRB stock | 1,721 | 0 |
Purchase of office properties and equipment | (3) | (67) |
Net cash used in investing activities | (6,319) | (26,296) |
Cash flows from financing activities: | ||
Net change in deposits | (29,374) | 51,662 |
Net change in securities sold under agreements to repurchase | 7,470 | 4,043 |
Increase in unreleased ESOP shares | (2,500) | 0 |
Dividends paid on preferred stock | 0 | (15) |
Proceeds from FHLB advances | 40,500 | 0 |
Repayments of FHLB advances | (35) | (13,000) |
Net cash provided by financing activities | 16,061 | 42,690 |
Net change in cash and cash equivalents | 13,543 | 14,586 |
Cash and cash equivalents at beginning of the period | 16,105 | 231,520 |
Cash and cash equivalents at end of the period | 29,648 | 246,106 |
Supplemental disclosures of cash flow information: | ||
Cash paid for interest | 2,882 | 822 |
Cash paid for income taxes | 0 | 0 |
Supplemental non-cash disclosures: | ||
Common stock issued in exchange for preferred stock | 0 | 3,000 |
Directors [Member] | ||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Stock-based compensation expense | 96 | 84 |
Employees, Excluding Directors [Member] | ||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Stock-based compensation expense | $ 38 | $ 15 |
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands |
Preferred Stock [Member]
Preferred Stock Non-Voting [Member]
|
Common Stock [Member]
Common Stock Voting [Member]
|
Common Stock [Member]
Common Stock Non-Voting [Member]
|
Additional Paid-in Capital [Member] |
Accumulated Other Comprehensive (Loss) [Member] |
Retained Earnings [Member] |
Unearned ESOP Shares [Member] |
Treasury Stock [Member] |
Non-Controlling Interest [Member] |
Total |
Cumulative Effect, Period of Adoption, Adjustment [Member]
Preferred Stock [Member]
Preferred Stock Non-Voting [Member]
|
Cumulative Effect, Period of Adoption, Adjustment [Member]
Common Stock [Member]
Common Stock Voting [Member]
|
Cumulative Effect, Period of Adoption, Adjustment [Member]
Common Stock [Member]
Common Stock Non-Voting [Member]
|
Cumulative Effect, Period of Adoption, Adjustment [Member]
Additional Paid-in Capital [Member]
|
Cumulative Effect, Period of Adoption, Adjustment [Member]
Accumulated Other Comprehensive (Loss) [Member]
|
Cumulative Effect, Period of Adoption, Adjustment [Member]
Retained Earnings [Member]
|
Cumulative Effect, Period of Adoption, Adjustment [Member]
Unearned ESOP Shares [Member]
|
Cumulative Effect, Period of Adoption, Adjustment [Member]
Treasury Stock [Member]
|
Cumulative Effect, Period of Adoption, Adjustment [Member]
Non-Controlling Interest [Member]
|
Cumulative Effect, Period of Adoption, Adjustment [Member] |
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Balance at Dec. 31, 2021 | $ 3,000 | $ 463 | $ 281 | $ 140,289 | $ (551) | $ 3,673 | $ (829) | $ (5,326) | $ 100 | $ 141,100 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||
Net income | 0 | 0 | 0 | 0 | 0 | 958 | 0 | 0 | 24 | 982 | ||||||||||
Conversion of preferred stock into common stock | (3,000) | 12 | 0 | 2,988 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||
Conversion of non-voting common shares into voting common shares | 0 | 9 | (9) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||
Release of unearned ESOP shares | 0 | 0 | 0 | 2 | 0 | 0 | 16 | 0 | 0 | 18 | ||||||||||
Stock-based compensation expense | 0 | 5 | 0 | 10 | 0 | 0 | 0 | 0 | 0 | 15 | ||||||||||
Dividends paid on preferred stock | 0 | 0 | 0 | 0 | 0 | (15) | 0 | 0 | 0 | (15) | ||||||||||
Director stock compensation expense | 0 | 0 | 0 | 84 | 0 | 0 | 0 | 0 | 0 | 84 | ||||||||||
Other comprehensive income (loss), net of tax | 0 | 0 | 0 | 0 | (5,847) | 0 | 0 | 0 | 0 | (5,847) | ||||||||||
Balance at Mar. 31, 2022 | 0 | 489 | 272 | 143,373 | (6,398) | 4,616 | (813) | (5,326) | 124 | 136,337 | ||||||||||
Balance at Dec. 31, 2022 | 150,000 | 513 | 248 | 143,491 | (17,473) | 9,294 | (1,265) | (5,326) | 170 | 279,652 | ||||||||||
Balance (ASU 2016-13 [Member]) at Dec. 31, 2022 | 150,000 | 513 | 248 | 143,491 | (17,473) | 8,038 | (1,265) | (5,326) | 170 | 278,396 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ (1,256) | $ 0 | $ 0 | $ 0 | $ (1,256) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||
Net income | 0 | 0 | 0 | 0 | 0 | 1,573 | 0 | 0 | 22 | 1,595 | ||||||||||
Release of unearned ESOP shares | 0 | 0 | 0 | (4) | 0 | 0 | (198) | 0 | 0 | (202) | ||||||||||
Increase in unreleased shares | 0 | 0 | 0 | 0 | 0 | 0 | (2,500) | 0 | 0 | (2,500) | ||||||||||
Stock-based compensation expense | 0 | 0 | 0 | 38 | 0 | 0 | 0 | 0 | 0 | 38 | ||||||||||
Director stock compensation expense | 0 | 0 | 0 | 96 | 0 | 0 | 0 | 0 | 0 | 96 | ||||||||||
Other comprehensive income (loss), net of tax | 0 | 0 | 0 | 0 | 2,445 | 0 | 0 | 0 | 0 | 2,445 | ||||||||||
Balance at Mar. 31, 2023 | $ 150,000 | $ 513 | $ 248 | $ 143,621 | $ (15,028) | $ 9,611 | $ (3,963) | $ (5,326) | $ 192 | $ 279,868 |
Basis of Financial Statement Presentation |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of Financial Statement Presentation [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of Financial Statement Presentation |
NOTE 1 – Basis of
Financial Statement Presentation
The accompanying unaudited consolidated financial statements include Broadway
Financial Corporation (the “Company”) and its wholly owned subsidiary, City First Bank, National Association (the “Bank” and, together with the Company, “City First Broadway”). Also included in the unaudited
consolidated financial statements are the following subsidiaries of City First Bank: 1432 U Street LLC, Broadway Service Corporation, City First Real Estate LLC, City First Real Estate II LLC, City First Real Estate
III LLC, City First Real Estate IV LLC, and CF New Markets Advisors, LLC (“CFNMA”). In addition, CFNMA also consolidates CFC Fund Manager II, LLC; City First New Markets Fund II, LLC; City First Capital IX, LLC; and
City First Capital 45, LLC (“CFC 45”) into its financial results. All significant intercompany balances and transactions have been eliminated in consolidation.
The unaudited consolidated financial statements have been prepared in accordance with
accounting principles generally accepted in the United States of America for interim financial information and with the instructions for quarterly reports on Form 10-Q. These unaudited consolidated financial statements
do not include all disclosures associated with the Company’s consolidated annual financial statements included in its Annual Report on Form 10-K for the year ended December 31, 2022 (“2022 Form 10-K”) and, accordingly,
should be read in conjunction with such audited consolidated financial statements. In the opinion of management, all adjustments (all of which are normal and recurring in nature) considered necessary for a fair
presentation have been included. Operating results for the three months ended March 31, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023.
Subsequent events have been evaluated through the date these financial statements were issued.
Except as discussed below, our accounting policies are described in Note 1 –
Summary of Significant Accounting Policies of our audited consolidated financial statements included in the 2022 Form 10-K.
Allowance for Credit Losses – Securities
Effective January 1, 2023, the Company accounts for the allowance for credit losses (“ACL”) on securities in
accordance with Accounting Standards Codification Topic 326 (“ASC 326”) – Financial Instruments-Credit Losses. The ACL on securities is recorded at the time of purchase or
acquisition, representing the Company’s best estimate of current expected credit losses (“CECL”) as of the date of the consolidated statements of financial condition.
For available-for-sale investment securities, the Company performs a qualitative evaluation for those securities
that are in an unrealized loss position to determine if the decline in fair value is credit related or non-credit related. In determining whether a security’s decline in fair value is credit related, the Company
considers a number of factors including, but not limited to: (i) the extent to which the fair value of the investment is less than its amortized cost; (ii) the financial condition and near-term prospects of the
issuer; (iii) any downgrades in credit ratings; (iv) the payment structure of the security, (v) the ability of the issuer of the security to make scheduled principal and interest payments, and (vi) general market
conditions which reflect prospects for the economy as a whole, including interest rates and sector credit spreads. For investment securities where the Company has reason to believe the credit loss exposure is
remote, a zero credit loss assumption is applied. Such investment securities typically consist of those guaranteed by the U.S. government or other government enterprises, where there is an explicit or implicit
guarantee by the U.S. government, that are highly rated by rating agencies, and historically have had no credit loss experience.
If it is determined that the unrealized loss, or a portion thereof, is credit related, the Company records the
amount of credit loss through a charge to the provision for credit losses in current period earnings. However, the amount of credit loss recorded in current period earnings is limited to the amount of the total
unrealized loss on the security, which is measured as the amount by which the security’s fair value is below its amortized cost. If the Company intends to sell a security that is in an unrealized loss position,
or if it is more likely than not the Company will be required to sell a security in an unrealized loss position, the total amount of the unrealized loss is recognized in current period earnings through the
provision for credit losses. Unrealized losses deemed non-credit related are recorded, net of tax, in accumulated other comprehensive income (loss).
The Company’s assessment of available-for-sale investment securities as of March 31, 2023, indicated that an ACL
was not required. The Company analyzed available-for-sale investment securities that were in an unrealized loss position and determined the decline in fair value for those securities was not related to credit,
but rather related to changes in interest rates and general market conditions. As such, no ACL was
recorded for available-for-sale securities as of March 31, 2023.
Allowance for Credit Losses - Loans
Effective January 1, 2023, the Company accounts for credit losses on loans in accordance with ASC 326, which
requires the Company to record an estimate of expected lifetime credit losses for loans at the time of origination or acquisition. The ACL is maintained at a level deemed appropriate by management to provide for
expected credit losses in the portfolio as of the date of the consolidated statements of financial condition. Estimating expected credit losses requires management to use relevant forward-looking information,
including the use of reasonable and supportable forecasts. The measurement of the ACL is performed by collectively evaluating loans with similar risk characteristics. The Company measures the ACL for each of its
loan segments using the weighted-average remaining maturity (“WARM”) method. The weighted average remaining life, including the effect of estimated prepayments, is calculated for each loan pool on a quarterly
basis. The Company then estimates a loss rate for each pool using both its own historical loss experience and the historical losses of a group of peer institutions during the period from 2004 through the most
recent quarter.
The Company’s ACL model also includes adjustments for qualitative factors, where appropriate. Since historical
information (such as historical net losses) may not always, by itself, provide a sufficient basis for determining future expected credit losses, the Company periodically considers the need for qualitative
adjustments to the ACL. Qualitative adjustments may be related to and include, but not limited to factors such as: (i) changes in lending policies and procedures, including changes in underwriting standards and
collections, charge offs, and recovery practices; (ii) changes in international, national, regional, and local conditions; (iii) changes in the nature and volume of the portfolio and terms of loans; (iv) changes
in the experience, depth, and ability of lending management; (v) changes in the volume and severity of past due loans and other similar conditions; (vi) changes in the quality of the organization’s loan review
system; (vii) changes in the value of underlying collateral for collateral dependent loans; (viii) the existence and effect of any concentrations of credit and changes in the levels of such concentrations; and
(ix) the effect of other external factors (i.e., competition, legal and regulatory requirements) on the level of estimated credit losses.
The Company has a credit portfolio review process designed to detect problem loans. Problem loans are typically
those of a substandard or worse internal risk grade, and may consist of loans on nonaccrual status, loans that have recently been modified in response to a borrower’s deteriorating financial condition, loans
where the likelihood of foreclosure on underlying collateral has increased, collateral dependent loans, and other loans where concern or doubt over the ultimate collectability of all contractual amounts due has
become elevated. Such loans may, in the opinion of management, be deemed to no longer possess risk characteristics similar to other loans in the loan portfolio, because the specific attributes and risks
associated with the loan have likely become unique as the credit quality of the loan deteriorates. As such, these loans may require individual evaluation to determine an appropriate ACL for the loan. When a loan
is individually evaluated, the Company typically measures the expected credit loss for the loan based on a discounted cash flow approach, unless the loan has been deemed collateral dependent. Collateral dependent
loans are loans where the repayment of the loan is expected to come from the operation of and/or eventual liquidation of the underlying collateral. The ACL for collateral dependent loans is determined using
estimates of the fair value of the underlying collateral, less estimated selling costs.
The estimation of the appropriate level of the ACL requires significant judgment by management. Although
management uses the best information available to make these estimations, future adjustments to the ACL may be necessary due to economic, operating, regulatory, and other conditions that may extend beyond the
Company’s control. Changes in management’s estimates of forecasted net losses could materially change the level of the ACL. Additionally, various regulatory agencies, as an integral part of their examination
process, periodically review the Company’s ACL and credit review process. Such agencies may require the Company to recognize additions to the ACL based on judgments different from those of management.
The Company has segmented the loan portfolio according to loans that share similar attributes and risk
characteristics. Each segment possesses varying degrees of risk based on, among other things, the type of loan, the type of collateral, and the sensitivity of the borrower or industry to changes in external
factors such as economic conditions. The Company determines the ACL for loans based on this more detailed loan segmentation and classification. These segments, and the risks associated with each segment, are as
follows:
Real Estate: Single Family – Subject to adverse employment conditions in the local economy leading to increased default rate, decreased market values from oversupply in a geographic area and
incremental rate increases on adjustable-rate mortgages which may impact the ability of borrowers to maintain payments.
Real Estate: Multi‑Family – Subject to adverse various market conditions that cause a decrease in market value or lease rates, changes in personal funding sources for tenants, oversupply of units
in a specific region, population shifts and reputational risks.
Real Estate: Commercial Real
Estate – Subject to adverse conditions in the local economy which may lead to reduced cash flows due to vacancies and reduced rental rates, and decreases in
the value of underlying collateral.
Real Estate: Church – Subject to adverse economic and employment conditions, which may lead to reduced cash flows from members’ donations and offerings, and the stability, quality, and
popularity of church leadership.
Real Estate: Construction – Subject to adverse conditions in the local economy, which may lead to reduced demand for new commercial, multi‑family, or single family buildings or reduced lease or
sale opportunities once the building is complete.
Commercial and SBA Loans – Subject to industry and economic conditions including decreases in product demand.
Consumer – Subject to adverse employment conditions in the local economy, which may lead to higher default rates.
Modified Loans to Borrowers Experiencing Financial Difficulty
In certain instances, the Company makes modifications to loans in order to
alleviate temporary difficulties in the borrower’s financial condition and/or constraints on the borrower’s ability to repay the loan, and to minimize potential losses to the Company. Modifications may include:
changes in the amortization terms of the loan, reductions in interest rates, acceptance of interest only payments, and reductions to the outstanding loan balance. Such loans are typically placed on nonaccrual status
when there is doubt concerning the full repayment of principal and interest or the loan has been in default for a period of 90 days or more. Such loans may be returned to accrual status when all contractual amounts
past due have been brought current, and the borrower’s performance under the modified terms of the loan agreement and the ultimate collectability of all contractual amounts due under the modified terms is no longer
in doubt. The Company typically measures the ACL on these loans on an individual basis as the loans are deemed to no longer have risk characteristics that are similar to other loans in the portfolio. The
determination of the ACL for these loans is based on a discounted cash flow approach, unless the loan is deemed collateral dependent, which requires measurement of the ACL based on the estimated expected fair value
of the underlying collateral, less selling costs.
Accounting Pronouncements Recently Adopted
In June 2016, the Financial Accounting Standards Board (“FASB”) issued
Accounting Standards Update (“ASU”) 2016-13 – Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial
Instruments. This ASU replaces the incurred loss impairment model in previous GAAP with a model that reflects current expected credit losses. The CECL model is applicable to the measurement of credit
losses on financial assets measured at amortized cost, including loan receivables and held-to-maturity debt securities. CECL also requires credit losses on available-for-sale debt securities be measured through
an allowance for credit losses when the fair value is less than the amortized cost basis. The new guidance also applies to off-balance sheet credit exposures. The ASU requires that all expected credit losses for
financial assets held at the reporting date be measured based on historical experience, current conditions, and reasonable and supportable forecasts. The ASU also requires enhanced disclosure, including
qualitative and quantitative disclosures that provide additional information about significant estimates and judgments used in estimating credit losses. The provisions of this ASU became effective for the Company
for all annual and interim periods beginning January 1, 2023.
In April 2019, the FASB issued ASU 2019-04 – Codification Improvements to
Topic 326, Financial Instruments-Credit Losses, Topic 815-Derivatives and Hedging, and Topic 825-Financial Instruments. This ASU was issued as part of an ongoing project on the FASB’s agenda for
improving the Codification or correcting for its unintended application. The amendments in this ASU became effective for all interim and annual reporting periods for the Company on January 1, 2023. The Company
adopted the provisions within this ASU in conjunction with the implementation of ASC 326, including: (i) the election to not measure credit losses on accrued interest receivable when such balances are written-off
in a timely manner when deemed uncollectable and (ii) the election to not include the balance of accrued interest receivable as part of the amortized cost of a loan.
In May 2019, the FASB issued ASU 2019-05 - Financial Instruments-Credit Losses
(Topic 326): Targeted Transition Relief. This ASU was issued to allow entities that have certain financial instruments within the scope of ASC 326-20 - Financial
Instruments-Credit Losses-Measured at Amortized Cost to make an irrevocable election to elect the fair value option for those instruments in accordance with ASC 825 – Financial
Instruments upon the adoption of ASC 326, which for the Company was January 1, 2023. The fair value option is not applicable to held-to-maturity debt securities. Entities are required to make this
election on an instrument-by-instrument basis. The Company did not elect the fair value option for any of its financial assets upon the adoption of ASC 326.
Effective January 1, 2023, the
Company adopted the provisions of ASC 326 through the application of the modified retrospective transition approach, and recorded a net decrease of $1.3 million to the beginning balance of retained earnings as of January 1, 2023 for the cumulative effect adjustment. The following table
illustrates the impact of the adoption of the CECL model under ASC 326 on the Company’s consolidated statements of financial position as of January 1, 2023:
The Company’s assessment of available-for-sale investment securities as of January 1, 2023 indicated that an ACL
was not required. The Company analyzed available-for-sale investment securities that were in an unrealized loss position as of the date of adoption and determined the decline in fair value for those securities
was not related to credit, but rather related to changes in interest rates and general market conditions. As such, no ACL was recorded for available-for-sale securities as of January 1, 2023.
Upon the adoption of ASC 326, the Company did not reassess purchased loans with credit deterioration (previously
classified as purchased credit impaired loans under ASC 310-30).
In February 2019, the U.S. federal bank regulatory agencies approved a final rule modifying their regulatory
capital rules and providing an option to phase in the adverse regulatory capital effects of the impact of adoption of ASC 326 over a three-year period. As a result, entities have the option to gradually phase in
the full effect of CECL on regulatory capital over a three-year transition period. The Company implemented its CECL model commencing January 1, 2023 and elected to phase in the full effect of CECL on regulatory
capital over the three-year transition period.
In March 2022, the FASB issued ASU 2022-02 – Financial Instruments-Credit
Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. The FASB issued this ASU in response to feedback the FASB received from various
stakeholders in its post-implementation review process related to the issuance of ASU 2016-13. The amendments in this ASU include the elimination of accounting guidance for troubled debt restructurings (“TDRs”)
in Subtopic 310-40 – Receivables-Troubled Debt Restructurings by Creditors, and introduce new disclosures and enhance existing disclosures concerning certain loan
refinancings and restructurings when a borrower is experiencing financial difficulty. Under the provisions of this ASU, an entity must determine whether a modification results in a new loan or the continuation of
an existing loan. Further, the amendments in this ASU require that an entity disclose current period gross charge-offs on financing receivables within the scope of ASC 326 by year of origination and class of
financing receivable. The amendments in this ASU became effective for the Company on January 1, 2023, for all interim and annual periods. The adoption of the provisions in this ASU are applied prospectively and
have resulted in additional disclosures concerning modifications of loans to borrowers experiencing financial difficulty, as well as disaggregated disclosure of charge-offs on loans.
Accounting Pronouncements Yet to Be Adopted
In March 2023, the FASB issued ASU 2023-02 – Investments-Equity Method and Joint Ventures (Topic 323): Accounting
for Investments in Tax Credit Structures Using the Proportional Amortization Method, a Consensus of the Emerging Issues Task Force. The amendments in this ASU allow the option for an entity to apply the proportional
amortization method of accounting to other equity investments that are made for the primary purpose of receiving tax credits or other income tax benefits, if certain conditions are met. Prior to this ASU, the
application of the proportional amortization method of accounting was limited to investments in low-income housing tax credit structures. The proportional amortization method of accounting results in the amortization
of applicable investments, as well as the related income tax credits or other income tax benefits received, being presented on a single line in the consolidated statements of operations and comprehensive loss (within
income tax expense). Under this ASU, an entity has the option to apply the proportional amortization method of accounting to applicable investments on a tax-credit-program-by-tax-credit-program basis. In addition,
the amendments in this ASU require that all tax equity investments accounted for using the proportional amortization method use the delayed equity contribution guidance in paragraph 323-740-25-3, requiring a
liability be recognized for delayed equity contributions that are unconditional and legally binding or for equity contributions that are contingent upon a future event when that contingent event becomes probable.
Under this ASU, low-income housing tax credit investments for which the proportional amortization method is not applied can no longer be accounted for using the delayed equity contribution guidance. Further, this ASU
specifies that impairment of low-income housing tax credit investments not accounted for using the equity method must apply the impairment guidance in Subtopic 323 – Investments-Equity Method and Joint Ventures. This ASU also
clarifies that for low-income housing tax credit investments not accounted for under the proportional amortization method or the equity method, an entity shall account for them under Topic 321 – Investments-Equity
Securities. The amendments in this ASU also require additional disclosures in interim and annual periods concerning investments for which the proportional amortization method is applied, including the nature of tax
equity investments and the effect of tax equity investments and related income tax credits and other income tax benefits on the consolidated statements of financial position and results of operations. The provisions
of this ASU are effective for the Company for interim and annual periods beginning after December 15, 2023. Early adoption is permitted. The Company is currently evaluating the impact of this ASU on its consolidated
financial statements.
|
Earnings Per Share of Common Stock |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share of Common Stock [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share of Common Stock |
NOTE 2 – Earnings Per Share of Common Stock
Basic earnings per share of common stock is computed pursuant to the two-class method by dividing net income available to common stockholders less dividends
paid on participating securities (unvested shares of restricted common stock) and any undistributed earnings attributable to participating securities by the weighted average common shares outstanding during the
period. The weighted average common shares outstanding includes the weighted average number of shares of common stock outstanding less the weighted average number of unvested shares of restricted common stock. Employee
Stock Option Plan (“ESOP”) shares are considered outstanding for this calculation unless unearned. Diluted earnings per share of common stock includes the dilutive effect of unvested stock awards and additional
potential common shares issuable under stock options.
The following table shows how the Company computed basic and diluted earnings per share of common stock for the periods indicated:
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Securities |
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Securities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Securities |
NOTE 3 – Securities
The
following table summarizes the amortized cost and fair value of the available-for-sale investment securities portfolios as of the dates indicated and the corresponding amounts of unrealized gains and losses which were recognized in accumulated
other comprehensive income (loss):
As of March 31, 2023, investment securities with a market value of $87.6 million were pledged as collateral for securities sold under agreements to repurchase and included $33.9 million of U.S. Treasuries, $26.0 million of U.S.
Government Agency securities, $22.2 million of mortgage-backed securities, $5.3 million of U.S. Small Business Administration (the“SBA”) pool securities and $273
thousand of federal agency CMO. As of December 31, 2022 investment securities with a market value of $64.4 million were pledged as
collateral for securities sold under agreements to repurchase and included $33.3 million of federal agency debt, $19.2 million of U.S. Treasuries and $11.9 million of federal agency
mortgage-backed securities (See Note 6 – Borrowings). There were no securities pledged to secure public deposits at March
31, 2023 or December 31, 2022.
At March 31, 2023, and December 31, 2022, there were no holdings of securities by any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of stockholders’ equity.
The amortized cost and estimated fair value of all investment securities available-for-sale at March 31, 2023, by contractual maturities are shown below. Contractual maturities may differ from expected maturities because borrowers may have the right to call or prepay obligations with
or without call or prepayment penalties.
The
table below indicates the length of time individual securities had been in a continuous unrealized loss position:
At March 31, 2023, and December 31, 2022, there were no securities in nonaccrual status. All securities in the
portfolio were current with their contractual principal and interest payments. At March 31, 2023, and December 31, 2022, there were no
securities purchased with deterioration in credit quality since their origination. At March 31, 2023, and December 31, 2022, there were no
collateral dependent securities.
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Loans Receivable Held for Investment |
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Loans Receivable Held for Investment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans Receivable Held for Investment |
NOTE 4 – Loans Receivable Held for Investment
Loans receivable held for investment were as follows as of the dates indicated:
As of both March 31, 2023 and December 31, 2022, the commercial loan category above included $2.7
million of loans issued under the SBA’s PPP. PPP loans have terms of
to five years and earn interest at 1%. PPP loans are fully guaranteed by the SBA and have virtually no risk of loss. The Company expects the vast majority of the PPP loans to be fully forgiven by the SBA.Prior to the adoption of ASC 326, loans that were purchased in a business combination that showed evidence of credit deterioration since their origination and for which it was probable,
at acquisition, that not all contractually required payments would be collected were classified as purchased-credit impaired (“PCI”). The Company accounted for PCI loans and associated income recognition in
accordance with ASC Subtopic 310-30 – Receivables-Loans and Debt Securities Acquired with Deteriorated Credit Quality. Upon acquisition, the Company measured the amount by which the undiscounted expected cash future
flows on PCI loans exceeded the estimated fair value of the loan as the “accretable yield,” representing the amount of estimated future interest income on the loan. The amount of accretable yield was re-measured at
each financial reporting date, representing the difference between the remaining undiscounted expected cash flows and the current carrying value of the PCI loan. The accretable yield on PCI loans was recognized in
interest income using the interest method.
Following the adoption of ASC 326 on January 1, 2023, the Company analyzes all acquired loans at the time of acquisition
for more-than-insignificant deterioration in credit quality since their origination date. Such loans are classified as purchased credit deteriorated (“PCD”) loans. Acquired loans classified as PCD are recorded at
an initial amortized cost, which is comprised of the purchase price of the loans and the initial ACL determined for the loans, which is added to the purchase price, and any resulting discount or premium related to
factors other than credit. PCI loans were considered to be PCD loans at the date of adoption of ASC 326. The Company accounts for interest income on PCD loans using the interest method, whereby any purchase
discounts or premiums are accreted or amortized into interest income as an adjustment of the loan’s yield. An accretable yield is not determined for PCD loans.
As part of the CFBanc merger, the Company acquired PCI loans. Prior to the CFBanc merger, there were no such acquired loans. The
carrying amount of those loans was as follows:
The following
table summarizes the discount on the PCI loans for the three months ended:
Effective January 1, 2023, the Company accounts for credit losses on loans in accordance with ASC 326 – Financial Instruments-Credit Losses, to
determine the ACL. ASC 326 requires the Company to recognize estimates for lifetime losses on loans and off-balance sheet loan commitments at the time of origination or acquisition. The recognition of losses at
origination or acquisition represents the Company’s best estimate of the lifetime expected credit loss associated with a loan given the facts and circumstances associated with the particular loan, and involves the
use of significant management judgement and estimates, which are subject to change based on management’s on-going assessment of the credit quality of the loan portfolio and changes in economic forecasts used in the
model. The Company uses the WARM method when determining estimates for the ACL for each of its portfolio segments. The weighted average remaining life, including the effect of estimated prepayments, is calculated for
each loan pool on a quarterly basis. The Company then estimates a loss rate for each pool using both its own historical loss experience and the historical losses of a group of peer institutions during the period from
2004 through the most recent quarter.
The Company’s ACL model also includes adjustments for qualitative factors, where appropriate. Qualitative adjustments may be related to and include, but are not limited to factors
such as: (i) changes in lending policies and procedures, including changes in underwriting standards and collections, charge offs, and recovery practices; (ii) changes in international, national, regional, and
local conditions; (iii) changes in the nature and volume of the portfolio and terms of loans; (iv) changes in the experience, depth, and ability of lending management; (v) changes in the volume and severity of past
due loans and other similar conditions; (vi) changes in the quality of the organization’s loan review system; (vii) changes in the value of underlying collateral for collateral dependent loans; (viii) the existence
and effect of any concentrations of credit and changes in the levels of such concentrations; and (ix) the effect of other external factors (i.e., competition, legal and regulatory requirements) on the level of
estimated credit losses. These qualitative factors incorporate the concept of reasonable and supportable forecasts, as required by ASC 326.
The following
tables summarize the activity in the allowance for credit losses on loans for the period indicated:
The following tables present the activity in the allowance for loan losses by loan type for the period indicated:
The increase in ACL during the quarter was due to the implementation of the CECL methodology adopted by the Bank
effective January 1, 2023, which increased the ACL by $1.8 million. In addition, the Bank recorded an
additional increase in the provision for credit losses of $88 thousand during the first quarter of 2023
related to growth in the portfolio. The CECL methodology includes estimates of expected loss rates in the future, whereas the former Allowance for Loan and Lease methodology did not.
Prior to the Company’s adoption of ASC 326 on January 1, 2023, the Company maintained an allowance for loan losses (“ALLL”) in accordance with ASC 310 and ASC 450 that covered estimated
credit losses on individually evaluated loans that were determined to be impaired, as well as estimated probable incurred losses inherent in the remainder of the loan portfolio.
Beginning on January 1, 2023, the Company evaluates loans collectively for purposes of determining the ACL in accordance with ASC 326. Collective evaluation is based on aggregating
loans deemed to possess similar risk characteristics. In certain instances, the Company may identify loans that it believes no longer possess risk characteristics similar to other loans in the loan portfolio. These
loans are typically identified from those that have exhibited deterioration in credit quality, since the specific attributes and risks associated with such loans tend to become unique as the credit deteriorates. Such
loans are typically nonperforming, downgraded to substandard or worse, and/or are deemed collateral dependent, where the ultimate repayment of the loan is expected to come from the operation of or eventual sale of
the collateral. Loans that are deemed by management to no longer possess risk characteristics similar to other loans in the portfolio, or that have been identified as collateral dependent, are evaluated individually
for purposes of determining an appropriate lifetime ACL. The Company uses a discounted cash flow approach, using the loan’s effective interest rate, for determining the ACL on individually evaluated loans, unless the
loan is deemed collateral dependent, which requires evaluation based on the estimated fair value of the underlying collateral, less estimated selling costs. The Company may increase or decrease the ACL for collateral
dependent loans based on changes in the estimated fair value of the collateral.
The following
table presents collateral dependent loans by collateral type as of the date indicated:
At March 31, 2023, $1.2
million of individually evaluated loans were evaluated based on the underlying value of the collateral and no
individually evaluated loans were evaluated using a discounted cash flow approach. The Company had no
individually evaluated loans on nonaccrual status at March 31, 2023.
Prior to the adoption of ASC 326 on January 1, 2023, the Company classified loans as impaired when, based on
current information and events, it was probable that the Company would be unable to collect all amounts due according to the contractual terms of the loan agreement or it was determined that the likelihood of
the Company receiving all scheduled payments, including interest, when due was remote. Credit losses on impaired loans were determined separately based on the guidance in ASC 310. Beginning January 1, 2023,
the Company accounts for credit losses on all loans in accordance with ASC 326, which eliminates the concept of an impaired loan within the context of determining credit losses, and requires all loans to be
evaluated for credit losses collectively based on similar risk characteristics. Loans are only evaluated individually when they are deemed to no longer possess similar risk characteristics with other loans in
the loan portfolio.
The
following tables present the balance in the allowance for loan losses and the recorded investment (unpaid contractual principal balance less charge-offs, less interest applied to principal, plus unamortized deferred
costs and premiums) by loan type and based on impairment method as of the date indicated:
The following table
presents information related to loans individually evaluated for impairment by loan type as of the date indicated:
The recorded investment in loans excludes accrued interest receivable due to immateriality. For purposes of this disclosure, the unpaid principal balance is not reduced for net charge-offs.
The following tables present the monthly average of loans individually evaluated for impairment by loan type and the related interest income for the period indicated:
The following
tables present the aging of the recorded investment in past due loans by loan type as of the dates indicated:
The following table presents the recorded investment in non-accrual loans by loan type as of the dates indicated:
Cash-basis interest income recognized represents interest recoveries on non-accrual loans that were paid off and, prior to the adoption of ASC 326, cash received for interest payments on accruing
impaired loans. Interest payments collected on non-accrual loans are characterized as payments of principal rather than payments of the outstanding accrued interest on the loans until the remaining principal on the
non-accrual loans is considered to be fully collectible or paid off. When a loan is returned to accrual status, the interest payments that were previously applied to principal are amortized over the remaining life of the
loan. Foregone interest income that would have been recognized had loans performed in accordance with their original terms amounted to $17 thousand for the three months ended March 31, 2022, and were not included in the consolidated statement of operations and comprehensive loss. There was no foregone interest income on non-accrual loans for the three months ended March 31, 2023. The Company recognized interest
income on nonaccrual loans of $286 thousand during the three months ended March 31, 2023. The Company did not recognize any interest income on nonaccrual loans during the three months ended March 31, 2022.
There were no loans 90 days or more delinquent that were accruing interest as of March 31, 2023
or December 31, 2022.
Modified Loans to
Troubled Borrowers
On January 1, 2023, the Company adopted ASU 2022-02, which introduces new reporting requirements for modifications of loans to borrowers experiencing financial difficulty. GAAP requires
that certain types of modifications of loans in response to a borrower’s financial difficulty be reported, which consist of the following: (i) principal forgiveness, (ii) interest rate reduction, (iii)
other-than-insignificant payment delay, (iv) term extension, or (v) any combination of the foregoing. The ACL for loans that were modified in response to a borrower’s financial difficulty is measured on a collective
basis, as with other loans in the loan portfolio, unless management determines that such loans no longer possess risk characteristics similar to others in the loan portfolio. In those instances, the ACL for such loans
is determined through individual evaluation. There were no loan modifications to borrowers that were
experiencing financial difficulty during the three months ended March 31, 2023.
Troubled Debt Restructurings (TDRs)
Prior to the adoption of ASU 2022-02 – Financial Instruments-Credit Losses: Troubled Debt Restructurings and
Vintage Disclosures on January 1, 2023, the Company accounted for TDRs in accordance with ASC 310-40. When a loan to a borrower that was experiencing financial difficulty was modified in response to that
difficulty, the loan was classified as a TDR. At December 31, 2022, loans classified as TDRs totaled $1.7
million, of which $144 thousand were included in non-accrual loans and $1.6 million were on accrual status. The Company had allocated $7 thousand of specific reserves for accruing TDRs as of December 31, 2022. TDRs on accrual status were comprised of loans that were accruing at the time of
restructuring or loans that have complied with the terms of their restructured agreements for a satisfactory period of time and for which the Company anticipates full repayment of both principal and interest. TDRs
that were on non-accrual status could be returned to accrual status after a period of sustained performance, generally determined to be six months of timely payments, as modified.
ASU 2022-02 eliminated the concept of TDRs in current GAAP, and therefore, beginning January 1, 2023, the Company no longer reports loans modified as TDRs except for those loans
modified and reported as TDRs in prior period financial information under previous GAAP.
Credit Quality
Indicators
The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as current financial information, historical payment experience, credit
documentation, public information, and current economic trends, among other factors. For single family residential, consumer, and other smaller balance homogenous loans, a credit grade is established at inception, and
generally only adjusted based on performance. Information about payment status is disclosed elsewhere herein. The Company analyzes all other loans individually by classifying the loans as to credit risk. This analysis
is performed at least on a quarterly basis. The Company uses the following definitions for risk ratings:
Loans not meeting the criteria above that are analyzed individually as part of the above-described process are considered to
be pass rated loans. Pass rated loans are generally well protected by the current net worth and paying capacity of the obligor and/or by the value of the underlying collateral. Pass rated loans are not more than 59
days past due and are generally performing in accordance with the loan terms.
The following table stratifies the loans held for investment portfolio by the Company’s internal risk grading, and by year of origination as of the date indicated:
The following table stratifies the loan portfolio by the Company’s internal risk rating as of the date indicated:
Allowance for Credit Losses for Off-Balance Sheet Commitments
The Company maintains an allowance for credit losses on off-balance sheet commitments related to unfunded loans and lines of credit, which is included in other liabilities of the
consolidated statements of financial condition. Upon the Company’s adoption of ASC 326 on January 1, 2023, the Company applies an expected credit loss estimation methodology for off-balance sheet commitments. This
methodology is commensurate with the methodology applied to each respective segment of the loan portfolio in determining the ACL for loans held-for-investment. The loss estimation process includes assumptions for the
probability that a loan will fund, as well as the expected amount of funding. These assumptions are based on the Company’s own historical internal loan data.
The allowance for off-balance sheet commitments was $367 thousand and $412 thousand at March 31,
2023 and December 31, 2022, respectively.
|
Goodwill and Core Deposit Intangible |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Core Deposit Intangible [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Core Deposit Intangible |
NOTE 5 – Goodwill and Core Deposit Intangible
The Company recognized goodwill of $25.9 million and a core deposit intangible of $2.4 million. An assessment of goodwill impairment was performed as of December 31, 2022, in which no impairment was determined. The following table presents the changes in the carrying amounts of goodwill and core deposit intangibles
for the three months ended March 31, 2023:
The carrying amount of the core deposit intangible consisted of the following at March 31, 2023 (in thousands):
The following table outlines the
estimated amortization expense for the core deposit intangible during the next five fiscal years (in thousands):
|
Borrowings |
3 Months Ended |
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Mar. 31, 2023 | |
Borrowings [Abstract] | |
Borrowings |
NOTE 6 – Borrowings
The Company enters into agreements under which it sells securities subject to an obligation to repurchase the same or similar securities. Under these arrangements, the Company may
transfer legal control over the assets but still retain effective control through an agreement that both entitles and obligates the Company to repurchase the assets. As a result, these repurchase agreements
are accounted for as collateralized financing agreements (i.e., secured borrowings) and not as a sale and subsequent repurchase of securities. The obligation to repurchase the securities is reflected as a liability in the
Company’s consolidated statements of financial condition, while the securities underlying the repurchase agreements remain in the respective investment securities asset accounts. In other words, there is no
offsetting or netting of the investment securities assets with the repurchase agreement liabilities. These agreements mature on a daily basis. As of March 31, 2023 securities sold under agreements to repurchase totaled $70.9
million at an average rate of 0.24%. The market value of securities pledged totaled $87.6 million as of March 31, 2023,
and included $33.9 million of U.S. Treasuries, $26.0 million of U.S. Government Agency securities, $22.2
million of mortgage-backed securities, $5.3 million of SBA pool securities and $273 thousand of federal agency CMO. As of December 31, 2022, securities sold under agreements to repurchase totaled $63.5 million at an average rate of 0.38%. The market value of securities pledged totaled $64.4 million as of
December 31, 2022, and included $33.3 million of federal agency debt, $19.2 million of U.S. Treasuries and $11.9 million of federal agency mortgage-backed securities.
At March 31, 2023 and December 31, 2022, the Company had outstanding advances from the Federal Home Loan Bank (“FHLB”) totaling $168.8 million and $128.3
million, respectively. The weighted interest rate was 4.35% and 3.74% as of March 31, 2023 and December 31, 2022, respectively. The weighted
average contractual maturity was nine months and 13 months as of March 31, 2023 and December 31, 2022, respectively. The advances
were collateralized by loans with a fair value of $329.1 million at March 31, 2023 and $328.1 million at
December 31, 2022. The Company is currently approved by the FHLB of Atlanta to borrow up to 25% of
total assets to the extent the Company provides qualifying collateral and holds sufficient FHLB stock. Based on collateral pledged and FHLB stock as of March 31, 2023, the Company was eligible to borrow an additional $157.2
million as of March 31, 2023.
In addition, the Company had additional lines of credit of $10.0 million with other
financial institutions as of March 31, 2023. These lines of credit are unsecured, bear interest at the Federal funds rate as of the date of utilization, and mature in 30 days.
In connection with the New Market Tax Credit activities of the Bank, CFC 45
is a partnership whose members include CFNMA and City First New Markets Fund II, LLC. This community development entity (“CDE”) acts in effect as a pass-through for a Merrill Lynch allocation totaling $14.0 million that needed to be deployed. In December 2015, Merrill Lynch made a $14.0 million non-recourse loan to CFC 45, whereby CFC 45 passed that loan through to a Qualified Active Low-Income
Business (“QALICB”). The loan to the QALICB is secured by a Leasehold Deed of Trust that, due to the pass-through, non-recourse structure, is operationally and ultimately for the benefit of Merrill Lynch rather than
CFC 45. Debt service payments received by CFC 45 from the QALICB are passed through to Merrill Lynch in return for which CFC 45 receives a servicing fee. The financial statements of CFC 45 are consolidated with those
of the Bank and the Company.
There are two notes for CFC 45. Note A is in the amount of $9.9
million with a fixed interest rate of 5.2% per annum. Note B is in the amount of $4.1 million with a fixed interest rate of 0.24% per annum. Quarterly interest only payments commenced in March 2016 and will continue through March 2023 for Notes A and B. Beginning in September 2023,
quarterly principal and interest payments will be due for Notes A and B. Both notes will mature on December 1, 2040.
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Fair Value |
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value |
NOTE 7 – Fair Value
The Company used the following methods and significant assumptions to estimate fair value:
The fair values of securities available-for-sale are determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs) or matrix pricing, which is a
mathematical technique to value debt securities without relying exclusively on quoted prices for the specific securities, but rather by relying on the securities’ relationship to other benchmark quoted securities (Level
2 inputs).
The fair value of loans that are collateral dependent is generally based upon the fair value of the collateral, which is obtained from recent real estate appraisals. These appraisals may
utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for
differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Collateral
dependent loans are evaluated on a quarterly basis for additional required calculation adjustments (taken as part of the ACL) and adjusted accordingly.
Assets acquired through or by transfer in lieu of loan foreclosure are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. These assets are
subsequently accounted for at the lower of cost or fair value less estimated costs to sell. Fair value is commonly based on recent real estate appraisals which are updated every nine months. These appraisals may
utilize a single valuation approach or a combination of approaches, including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust
for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Real estate
owned properties are evaluated on a quarterly basis for additional impairment and adjusted accordingly.
Appraisals for collateral-dependent loans and assets acquired through or by transfer of in lieu of foreclosure are performed by certified general appraisers (for commercial properties) or
certified residential appraisers (for residential properties) whose qualifications and licenses have been reviewed and verified by the Company. Once received, an independent third-party licensed appraiser reviews the
appraisals for accuracy and reasonableness, reviewing the assumptions and approaches utilized in the appraisal as well as the overall resulting fair value in comparison with independent data sources such as recent
market data or industry-wide statistics.
Assets Measured on a Recurring Basis
Assets measured at fair value on a recurring basis are summarized below:
There were no transfers between Level 1, Level 2, or Level 3 during the three months ended March 31, 2023 and 2022.
As of March 31, 2023 and December 31, 2022, the Bank did not have any assets
or liabilities carried at fair value on a nonrecurring basis.
Fair Values of Financial Instruments
The following tables present the carrying amount, fair value, and placement in the fair value
hierarchy of the Company’s financial instruments not recorded at fair value on a recurring basis as of March 31, 2023 and December 31, 2022.
In accordance with ASU No. 2016-01, the fair value of financial assets and liabilities was measured using an exit price notion. Although the exit price notion represents the value that would be
received to sell an asset or paid to transfer a liability, the actual price received for a sale of assets or paid to transfer liabilities could be different from exit price disclosed.
|
Stock-based Compensation |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based Compensation [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation |
NOTE 8 –
Stock-based Compensation
The Long-Term Incentive Plan, which was adopted by the Company and approved by the stockholders in 2018 (the “LTIP”), permits the grant of non-qualified and incentive stock options, stock
appreciation rights, full value awards and cash incentive awards. The plan is in effect for ten years. The
maximum number of shares that can be awarded under the plan is 1,293,109 shares of common stock as of
December 31, 2018. As of March 31,
2023, 968,572 shares had been awarded and 324,537 shares are available under the LTIP.
During February of 2023 and 2022, the Company issued 73,840 and 47,187 shares of
stock, respectively, to its directors under the LTIP, which were fully vested. The Company recorded $96
thousand and $84 thousand of compensation expense during the three months ended March 31, 2023 and 2022,
respectively, based on the fair value of the stock, which was determined using the fair value of the stock on the date of the award.
During March of 2022, the Company issued 495,262 shares to its officers and employees under the LTIP of which 74,736 shares have been forfeited as of March 31, 2023. Each restricted stock award is valued based on the fair value of the stock on the date of the award.
These awarded shares of restricted stock fully vest over periods ranging from 36 months to 60 months from their respective dates of grant. Stock based compensation is recognized on a straight-line basis over the
vesting period. During the three months ending March 31, 2023 and 2022, the company recorded $38 thousand
and $15 thousand of stock-based compensation expense, respectively.
No stock options were granted during the three months ended March 31, 2023 and
2022.
The following table summarizes stock option activity during the three months ended March 31, 2023:
The Company did not
record any stock-based compensation expense related to stock options during the three months ended March 31, 2023 and 2022.
Options outstanding and exercisable at March 31, 2023 were as follows:
|
ESOP Plan |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ESOP Plan [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ESOP Plan |
NOTE 9 – ESOP Plan
Employees
participate in an ESOP after attaining certain age and service requirements. In 2022, the ESOP purchased 466,955 shares of the Company’s
common stock at a cost of $1.07 per share for a total cost of $500 thousand which was funded with a $5.0 million line of credit from the
Company. During the first quarter of 2023, the ESOP purchased 2,065,342 additional shares of the Company’s common stock at an average cost
of $1.21 per share for a total cost of $2.5
million which was funded with the line of credit. The loan will be repaid from the Bank’s annual discretionary contributions to the ESOP, net of dividends paid, over a period of 20 years. Shares of the Company’s common stock purchased by the ESOP are held in a suspense account until released for allocation to participants. When loan payments are made, shares are
allocated to each eligible participant based on the ratio of each such participant’s compensation, as defined in the ESOP, to the total compensation of all eligible plan participants. As the unearned shares are released from the suspense account,
the Company recognizes compensation expense equal to the fair value of the ESOP shares during the periods in which they become committed to be released. To the extent that the fair value of the ESOP shares released differs from the cost of such
shares, the difference is charged or credited to equity as additional paid-in capital. Any dividends on allocated shares increase participant accounts. Any dividends on unallocated shares will be used to repay the loan. Participants will receive
shares for their vested balance at the end of their employment. Compensation expense related to the ESOP was $12 thousand and $18 thousand for the three months ended March 31, 2023 and 2022, respectively.
Shares held by the ESOP
were as follows:
The
value of unearned shares, which are reported as Unearned ESOP shares in the equity section of the consolidated statements of financial condition, were $4.0
million and $1.3 million at March 31, 2023 and December 31, 2022, respectively.
|
Stockholders' Equity and Regulatory Matters |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity and Regulatory Matters [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity and Regulatory Matters |
NOTE 10 –
Stockholders’ Equity and Regulatory Matters
On June 7, 2022, the Company issued 150,000 shares of Senior Non-Cumulative Perpetual Preferred stock, Series C (“Series C Preferred Stock”), for the capital investment of $150.0 million from the U.S. Treasury under the Emergency Capital Investment Program (“ECIP”). ECIP investment is
treated as Tier 1 Capital for the regulatory capital treatment.
The Series C Preferred stock may be redeemed at the option of the Company on or after the fifth
anniversary of issuance (or earlier in the event of loss of regulatory capital treatment), subject to the approval of the appropriate federal banking regulator in accordance with the federal banking agencies’
regulatory capital regulations.
The initial dividend rate of the Series C Preferred Stock is zero percent for the first two years after issuance, and thereafter the floor dividend rate is 0.50% and the
ceiling dividend rate is 2.00%.
During the first quarter of 2022 the Company completed the exchange of all the Series A Fixed Rate Cumulative Redeemable Preferred Stock, with an aggregate liquidation
rate of $3 million, plus accrued dividends, for 1,193,317 shares of Class A Common Stock at an exchange price of $2.51 per share of Class A Common Stock.
The Bank’s capital requirements are administered by the Office of the Comptroller of the Currency (“OCC”) and involve quantitative measures of assets, liabilities, and certain off-balance
sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by the OCC. Failure to meet capital requirements can result in regulatory
action.
As a result of the Economic Growth, Regulatory Relief, and Consumer Protection Act, the federal banking agencies have developed a “Community Bank Leverage Ratio” (“CBLR”) (the ratio of a
bank’s tier 1 capital to average total consolidated assets) for financial institutions with assets of less than $10 billion. A “qualifying community bank” that exceeds this ratio will be deemed to be in compliance with
all other capital and leverage requirements, including the capital requirements to be considered “well capitalized” under Prompt Corrective Action statutes. The federal banking agencies have set the Community Bank
Leverage Ratio at 9%. Actual and required capital amounts and ratios as of the dates indicated are presented below:
At March 31, 2023, the Company and the Bank met all the capital adequacy requirements to which they were subject. In addition, the Bank was “well
capitalized” under the regulatory framework for prompt corrective action. Management believes that no conditions or events have occurred since March 31, 2023 that would materially adversely change the Bank’s capital
classifications. From time to time, the Bank may need to raise additional capital to support its further growth and to maintain its “well capitalized” status.
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Income Taxes |
3 Months Ended |
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Mar. 31, 2023 | |
Income Taxes [Abstract] | |
Income Taxes |
NOTE 11 – Income
Taxes
The Company and its subsidiary are subject to U.S. federal and state income taxes. Income tax expense is the total of the
current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between
the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using
enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax
rates is recognized in income in the period that includes the enactment date.
Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion, or all, of the deferred tax asset will not be
realized. In assessing the realization of deferred tax assets, management evaluated both positive and negative evidence, including the existence of cumulative losses in the current year and the prior two years, the amount of taxes paid in available carry-back years, the forecasts of future income and tax planning
strategies.
At March 31, 2023, the Company maintained a $369 thousand valuation allowance on its deferred tax assets because the number of shares sold in the private placements
completed on April 6, 2021 triggered limitations on the use of certain tax attributes under the Section 382 of the federal tax code. The ability to use net operating losses (“NOLs”) to offset future taxable income will
be restricted and these NOLs could expire or otherwise be unavailable. In general, under Section 382 of the Code and corresponding provisions of state law, a corporation that undergoes an “ownership change” is subject
to limitations on its ability to utilize its pre-change NOLs to offset future taxable income. For these purposes, an ownership change generally occurs where the aggregate stock ownership of one or more stockholders or
groups of stockholders who owns at least 5% of a corporation’s stock increases its ownership by more than 50 percentage points over its lowest ownership percentage within a specified testing period.
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Concentration of Credit Risk |
3 Months Ended |
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Mar. 31, 2023 | |
Concentration of Credit Risk [Abstract] | |
Concentration of Credit Risk |
NOTE 12 –
Concentration of Credit Risk
The Bank has a significant concentration of deposits with one customer that
accounted for approximately 10% of its deposits as of
March 31, 2023. The Bank also has a significant concentration of short-term borrowings from one customer that accounted for 75% of the
outstanding balance of securities sold under agreements to repurchase as of March 31, 2023. The Company expects to maintain the relationships with
these customers for the foreseeable future.
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Basis of Financial Statement Presentation (Policies) |
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Consolidation |
The accompanying unaudited consolidated financial statements include Broadway
Financial Corporation (the “Company”) and its wholly owned subsidiary, City First Bank, National Association (the “Bank” and, together with the Company, “City First Broadway”). Also included in the unaudited
consolidated financial statements are the following subsidiaries of City First Bank: 1432 U Street LLC, Broadway Service Corporation, City First Real Estate LLC, City First Real Estate II LLC, City First Real Estate
III LLC, City First Real Estate IV LLC, and CF New Markets Advisors, LLC (“CFNMA”). In addition, CFNMA also consolidates CFC Fund Manager II, LLC; City First New Markets Fund II, LLC; City First Capital IX, LLC; and
City First Capital 45, LLC (“CFC 45”) into its financial results. All significant intercompany balances and transactions have been eliminated in consolidation.
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Basis of Presentation |
The unaudited consolidated financial statements have been prepared in accordance with
accounting principles generally accepted in the United States of America for interim financial information and with the instructions for quarterly reports on Form 10-Q. These unaudited consolidated financial statements
do not include all disclosures associated with the Company’s consolidated annual financial statements included in its Annual Report on Form 10-K for the year ended December 31, 2022 (“2022 Form 10-K”) and, accordingly,
should be read in conjunction with such audited consolidated financial statements. In the opinion of management, all adjustments (all of which are normal and recurring in nature) considered necessary for a fair
presentation have been included. Operating results for the three months ended March 31, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023.
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Subsequent Events |
Subsequent events have been evaluated through the date these financial statements were issued.
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Allowance for Credit Losses |
Allowance for Credit Losses – Securities
Effective January 1, 2023, the Company accounts for the allowance for credit losses (“ACL”) on securities in
accordance with Accounting Standards Codification Topic 326 (“ASC 326”) – Financial Instruments-Credit Losses. The ACL on securities is recorded at the time of purchase or
acquisition, representing the Company’s best estimate of current expected credit losses (“CECL”) as of the date of the consolidated statements of financial condition.
For available-for-sale investment securities, the Company performs a qualitative evaluation for those securities
that are in an unrealized loss position to determine if the decline in fair value is credit related or non-credit related. In determining whether a security’s decline in fair value is credit related, the Company
considers a number of factors including, but not limited to: (i) the extent to which the fair value of the investment is less than its amortized cost; (ii) the financial condition and near-term prospects of the
issuer; (iii) any downgrades in credit ratings; (iv) the payment structure of the security, (v) the ability of the issuer of the security to make scheduled principal and interest payments, and (vi) general market
conditions which reflect prospects for the economy as a whole, including interest rates and sector credit spreads. For investment securities where the Company has reason to believe the credit loss exposure is
remote, a zero credit loss assumption is applied. Such investment securities typically consist of those guaranteed by the U.S. government or other government enterprises, where there is an explicit or implicit
guarantee by the U.S. government, that are highly rated by rating agencies, and historically have had no credit loss experience.
If it is determined that the unrealized loss, or a portion thereof, is credit related, the Company records the
amount of credit loss through a charge to the provision for credit losses in current period earnings. However, the amount of credit loss recorded in current period earnings is limited to the amount of the total
unrealized loss on the security, which is measured as the amount by which the security’s fair value is below its amortized cost. If the Company intends to sell a security that is in an unrealized loss position,
or if it is more likely than not the Company will be required to sell a security in an unrealized loss position, the total amount of the unrealized loss is recognized in current period earnings through the
provision for credit losses. Unrealized losses deemed non-credit related are recorded, net of tax, in accumulated other comprehensive income (loss).
The Company’s assessment of available-for-sale investment securities as of March 31, 2023, indicated that an ACL
was not required. The Company analyzed available-for-sale investment securities that were in an unrealized loss position and determined the decline in fair value for those securities was not related to credit,
but rather related to changes in interest rates and general market conditions. As such, no ACL was
recorded for available-for-sale securities as of March 31, 2023.
Allowance for Credit Losses - Loans
Effective January 1, 2023, the Company accounts for credit losses on loans in accordance with ASC 326, which
requires the Company to record an estimate of expected lifetime credit losses for loans at the time of origination or acquisition. The ACL is maintained at a level deemed appropriate by management to provide for
expected credit losses in the portfolio as of the date of the consolidated statements of financial condition. Estimating expected credit losses requires management to use relevant forward-looking information,
including the use of reasonable and supportable forecasts. The measurement of the ACL is performed by collectively evaluating loans with similar risk characteristics. The Company measures the ACL for each of its
loan segments using the weighted-average remaining maturity (“WARM”) method. The weighted average remaining life, including the effect of estimated prepayments, is calculated for each loan pool on a quarterly
basis. The Company then estimates a loss rate for each pool using both its own historical loss experience and the historical losses of a group of peer institutions during the period from 2004 through the most
recent quarter.
The Company’s ACL model also includes adjustments for qualitative factors, where appropriate. Since historical
information (such as historical net losses) may not always, by itself, provide a sufficient basis for determining future expected credit losses, the Company periodically considers the need for qualitative
adjustments to the ACL. Qualitative adjustments may be related to and include, but not limited to factors such as: (i) changes in lending policies and procedures, including changes in underwriting standards and
collections, charge offs, and recovery practices; (ii) changes in international, national, regional, and local conditions; (iii) changes in the nature and volume of the portfolio and terms of loans; (iv) changes
in the experience, depth, and ability of lending management; (v) changes in the volume and severity of past due loans and other similar conditions; (vi) changes in the quality of the organization’s loan review
system; (vii) changes in the value of underlying collateral for collateral dependent loans; (viii) the existence and effect of any concentrations of credit and changes in the levels of such concentrations; and
(ix) the effect of other external factors (i.e., competition, legal and regulatory requirements) on the level of estimated credit losses.
The Company has a credit portfolio review process designed to detect problem loans. Problem loans are typically
those of a substandard or worse internal risk grade, and may consist of loans on nonaccrual status, loans that have recently been modified in response to a borrower’s deteriorating financial condition, loans
where the likelihood of foreclosure on underlying collateral has increased, collateral dependent loans, and other loans where concern or doubt over the ultimate collectability of all contractual amounts due has
become elevated. Such loans may, in the opinion of management, be deemed to no longer possess risk characteristics similar to other loans in the loan portfolio, because the specific attributes and risks
associated with the loan have likely become unique as the credit quality of the loan deteriorates. As such, these loans may require individual evaluation to determine an appropriate ACL for the loan. When a loan
is individually evaluated, the Company typically measures the expected credit loss for the loan based on a discounted cash flow approach, unless the loan has been deemed collateral dependent. Collateral dependent
loans are loans where the repayment of the loan is expected to come from the operation of and/or eventual liquidation of the underlying collateral. The ACL for collateral dependent loans is determined using
estimates of the fair value of the underlying collateral, less estimated selling costs.
The estimation of the appropriate level of the ACL requires significant judgment by management. Although
management uses the best information available to make these estimations, future adjustments to the ACL may be necessary due to economic, operating, regulatory, and other conditions that may extend beyond the
Company’s control. Changes in management’s estimates of forecasted net losses could materially change the level of the ACL. Additionally, various regulatory agencies, as an integral part of their examination
process, periodically review the Company’s ACL and credit review process. Such agencies may require the Company to recognize additions to the ACL based on judgments different from those of management.
The Company has segmented the loan portfolio according to loans that share similar attributes and risk
characteristics. Each segment possesses varying degrees of risk based on, among other things, the type of loan, the type of collateral, and the sensitivity of the borrower or industry to changes in external
factors such as economic conditions. The Company determines the ACL for loans based on this more detailed loan segmentation and classification. These segments, and the risks associated with each segment, are as
follows:
Real Estate: Single Family – Subject to adverse employment conditions in the local economy leading to increased default rate, decreased market values from oversupply in a geographic area and
incremental rate increases on adjustable-rate mortgages which may impact the ability of borrowers to maintain payments.
Real Estate: Multi‑Family – Subject to adverse various market conditions that cause a decrease in market value or lease rates, changes in personal funding sources for tenants, oversupply of units
in a specific region, population shifts and reputational risks.
Real Estate: Commercial Real
Estate – Subject to adverse conditions in the local economy which may lead to reduced cash flows due to vacancies and reduced rental rates, and decreases in
the value of underlying collateral.
Real Estate: Church – Subject to adverse economic and employment conditions, which may lead to reduced cash flows from members’ donations and offerings, and the stability, quality, and
popularity of church leadership.
Real Estate: Construction – Subject to adverse conditions in the local economy, which may lead to reduced demand for new commercial, multi‑family, or single family buildings or reduced lease or
sale opportunities once the building is complete.
Commercial and SBA Loans – Subject to industry and economic conditions including decreases in product demand.
Consumer – Subject to adverse employment conditions in the local economy, which may lead to higher default rates.
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Modified Loans to Borrowers Experiencing Financial Difficulty |
Modified Loans to Borrowers Experiencing Financial Difficulty
In certain instances, the Company makes modifications to loans in order to
alleviate temporary difficulties in the borrower’s financial condition and/or constraints on the borrower’s ability to repay the loan, and to minimize potential losses to the Company. Modifications may include:
changes in the amortization terms of the loan, reductions in interest rates, acceptance of interest only payments, and reductions to the outstanding loan balance. Such loans are typically placed on nonaccrual status
when there is doubt concerning the full repayment of principal and interest or the loan has been in default for a period of 90 days or more. Such loans may be returned to accrual status when all contractual amounts
past due have been brought current, and the borrower’s performance under the modified terms of the loan agreement and the ultimate collectability of all contractual amounts due under the modified terms is no longer
in doubt. The Company typically measures the ACL on these loans on an individual basis as the loans are deemed to no longer have risk characteristics that are similar to other loans in the portfolio. The
determination of the ACL for these loans is based on a discounted cash flow approach, unless the loan is deemed collateral dependent, which requires measurement of the ACL based on the estimated expected fair value
of the underlying collateral, less selling costs.
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Accounting Pronouncements Recently Adopted and Yet to Be Adopted |
Accounting Pronouncements Recently Adopted
In June 2016, the Financial Accounting Standards Board (“FASB”) issued
Accounting Standards Update (“ASU”) 2016-13 – Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial
Instruments. This ASU replaces the incurred loss impairment model in previous GAAP with a model that reflects current expected credit losses. The CECL model is applicable to the measurement of credit
losses on financial assets measured at amortized cost, including loan receivables and held-to-maturity debt securities. CECL also requires credit losses on available-for-sale debt securities be measured through
an allowance for credit losses when the fair value is less than the amortized cost basis. The new guidance also applies to off-balance sheet credit exposures. The ASU requires that all expected credit losses for
financial assets held at the reporting date be measured based on historical experience, current conditions, and reasonable and supportable forecasts. The ASU also requires enhanced disclosure, including
qualitative and quantitative disclosures that provide additional information about significant estimates and judgments used in estimating credit losses. The provisions of this ASU became effective for the Company
for all annual and interim periods beginning January 1, 2023.
In April 2019, the FASB issued ASU 2019-04 – Codification Improvements to
Topic 326, Financial Instruments-Credit Losses, Topic 815-Derivatives and Hedging, and Topic 825-Financial Instruments. This ASU was issued as part of an ongoing project on the FASB’s agenda for
improving the Codification or correcting for its unintended application. The amendments in this ASU became effective for all interim and annual reporting periods for the Company on January 1, 2023. The Company
adopted the provisions within this ASU in conjunction with the implementation of ASC 326, including: (i) the election to not measure credit losses on accrued interest receivable when such balances are written-off
in a timely manner when deemed uncollectable and (ii) the election to not include the balance of accrued interest receivable as part of the amortized cost of a loan.
In May 2019, the FASB issued ASU 2019-05 - Financial Instruments-Credit Losses
(Topic 326): Targeted Transition Relief. This ASU was issued to allow entities that have certain financial instruments within the scope of ASC 326-20 - Financial
Instruments-Credit Losses-Measured at Amortized Cost to make an irrevocable election to elect the fair value option for those instruments in accordance with ASC 825 – Financial
Instruments upon the adoption of ASC 326, which for the Company was January 1, 2023. The fair value option is not applicable to held-to-maturity debt securities. Entities are required to make this
election on an instrument-by-instrument basis. The Company did not elect the fair value option for any of its financial assets upon the adoption of ASC 326.
Effective January 1, 2023, the
Company adopted the provisions of ASC 326 through the application of the modified retrospective transition approach, and recorded a net decrease of $1.3 million to the beginning balance of retained earnings as of January 1, 2023 for the cumulative effect adjustment. The following table
illustrates the impact of the adoption of the CECL model under ASC 326 on the Company’s consolidated statements of financial position as of January 1, 2023:
The Company’s assessment of available-for-sale investment securities as of January 1, 2023 indicated that an ACL
was not required. The Company analyzed available-for-sale investment securities that were in an unrealized loss position as of the date of adoption and determined the decline in fair value for those securities
was not related to credit, but rather related to changes in interest rates and general market conditions. As such, no ACL was recorded for available-for-sale securities as of January 1, 2023.
Upon the adoption of ASC 326, the Company did not reassess purchased loans with credit deterioration (previously
classified as purchased credit impaired loans under ASC 310-30).
In February 2019, the U.S. federal bank regulatory agencies approved a final rule modifying their regulatory
capital rules and providing an option to phase in the adverse regulatory capital effects of the impact of adoption of ASC 326 over a three-year period. As a result, entities have the option to gradually phase in
the full effect of CECL on regulatory capital over a three-year transition period. The Company implemented its CECL model commencing January 1, 2023 and elected to phase in the full effect of CECL on regulatory
capital over the three-year transition period.
In March 2022, the FASB issued ASU 2022-02 – Financial Instruments-Credit
Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. The FASB issued this ASU in response to feedback the FASB received from various
stakeholders in its post-implementation review process related to the issuance of ASU 2016-13. The amendments in this ASU include the elimination of accounting guidance for troubled debt restructurings (“TDRs”)
in Subtopic 310-40 – Receivables-Troubled Debt Restructurings by Creditors, and introduce new disclosures and enhance existing disclosures concerning certain loan
refinancings and restructurings when a borrower is experiencing financial difficulty. Under the provisions of this ASU, an entity must determine whether a modification results in a new loan or the continuation of
an existing loan. Further, the amendments in this ASU require that an entity disclose current period gross charge-offs on financing receivables within the scope of ASC 326 by year of origination and class of
financing receivable. The amendments in this ASU became effective for the Company on January 1, 2023, for all interim and annual periods. The adoption of the provisions in this ASU are applied prospectively and
have resulted in additional disclosures concerning modifications of loans to borrowers experiencing financial difficulty, as well as disaggregated disclosure of charge-offs on loans.
Accounting Pronouncements Yet to Be Adopted
In March 2023, the FASB issued ASU 2023-02 – Investments-Equity Method and Joint Ventures (Topic 323): Accounting
for Investments in Tax Credit Structures Using the Proportional Amortization Method, a Consensus of the Emerging Issues Task Force. The amendments in this ASU allow the option for an entity to apply the proportional
amortization method of accounting to other equity investments that are made for the primary purpose of receiving tax credits or other income tax benefits, if certain conditions are met. Prior to this ASU, the
application of the proportional amortization method of accounting was limited to investments in low-income housing tax credit structures. The proportional amortization method of accounting results in the amortization
of applicable investments, as well as the related income tax credits or other income tax benefits received, being presented on a single line in the consolidated statements of operations and comprehensive loss (within
income tax expense). Under this ASU, an entity has the option to apply the proportional amortization method of accounting to applicable investments on a tax-credit-program-by-tax-credit-program basis. In addition,
the amendments in this ASU require that all tax equity investments accounted for using the proportional amortization method use the delayed equity contribution guidance in paragraph 323-740-25-3, requiring a
liability be recognized for delayed equity contributions that are unconditional and legally binding or for equity contributions that are contingent upon a future event when that contingent event becomes probable.
Under this ASU, low-income housing tax credit investments for which the proportional amortization method is not applied can no longer be accounted for using the delayed equity contribution guidance. Further, this ASU
specifies that impairment of low-income housing tax credit investments not accounted for using the equity method must apply the impairment guidance in Subtopic 323 – Investments-Equity Method and Joint Ventures. This ASU also
clarifies that for low-income housing tax credit investments not accounted for under the proportional amortization method or the equity method, an entity shall account for them under Topic 321 – Investments-Equity
Securities. The amendments in this ASU also require additional disclosures in interim and annual periods concerning investments for which the proportional amortization method is applied, including the nature of tax
equity investments and the effect of tax equity investments and related income tax credits and other income tax benefits on the consolidated statements of financial position and results of operations. The provisions
of this ASU are effective for the Company for interim and annual periods beginning after December 15, 2023. Early adoption is permitted. The Company is currently evaluating the impact of this ASU on its consolidated
financial statements.
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Basis of Financial Statement Presentation (Tables) |
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Impact of ASC 326 Adoption |
Effective January 1, 2023, the
Company adopted the provisions of ASC 326 through the application of the modified retrospective transition approach, and recorded a net decrease of $1.3 million to the beginning balance of retained earnings as of January 1, 2023 for the cumulative effect adjustment. The following table
illustrates the impact of the adoption of the CECL model under ASC 326 on the Company’s consolidated statements of financial position as of January 1, 2023:
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Earnings Per Share of Common Stock (Tables) |
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Basic and Diluted Earnings Per Share of Common Stock |
The following table shows how the Company computed basic and diluted earnings per share of common stock for the periods indicated:
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Securities (Tables) |
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Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-Sale Investment Securities Portfolios |
The
following table summarizes the amortized cost and fair value of the available-for-sale investment securities portfolios as of the dates indicated and the corresponding amounts of unrealized gains and losses which were recognized in accumulated
other comprehensive income (loss):
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Amortized Cost and Fair Value of Investment Securities by Contractual Maturity |
The amortized cost and estimated fair value of all investment securities available-for-sale at March 31, 2023, by contractual maturities are shown below. Contractual maturities may differ from expected maturities because borrowers may have the right to call or prepay obligations with
or without call or prepayment penalties.
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Securities in Continuous Unrealized Loss Position |
The
table below indicates the length of time individual securities had been in a continuous unrealized loss position:
|
Loans Receivable Held for Investment (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans Receivable Held for Investment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans Receivable Held for Investment |
Loans receivable held for investment were as follows as of the dates indicated:
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Carrying Amount of Purchased Credit Impaired Loans | The
carrying amount of those loans was as follows:
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Accretable yield on Purchased Credit Impaired Loans |
The following
table summarizes the discount on the PCI loans for the three months ended:
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Activity in Allowance for Credit Losses on Loans |
The following
tables summarize the activity in the allowance for credit losses on loans for the period indicated:
The following tables present the activity in the allowance for loan losses by loan type for the period indicated:
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Collateral Dependent Loans By Collateral Type |
The following
table presents collateral dependent loans by collateral type as of the date indicated:
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Allowance for Loan Losses and Recorded Investment in Loans by Type of Loans and Based on Impairment Method |
The
following tables present the balance in the allowance for loan losses and the recorded investment (unpaid contractual principal balance less charge-offs, less interest applied to principal, plus unamortized deferred
costs and premiums) by loan type and based on impairment method as of the date indicated:
|
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Loans Individually Evaluated for Impairment by Loan Type |
The following table
presents information related to loans individually evaluated for impairment by loan type as of the date indicated:
|
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Average of Loans Individually Evaluated for Impairment by Loan Type and Related Interest Income |
The following tables present the monthly average of loans individually evaluated for impairment by loan type and the related interest income for the period indicated:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Aging of Recorded Investment in Past Due Loans by Loan Type |
The following
tables present the aging of the recorded investment in past due loans by loan type as of the dates indicated:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recorded Investment in Non-accrual Loans by Loan Type |
The following table presents the recorded investment in non-accrual loans by loan type as of the dates indicated:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans Held for Investment Portfolio By Internal Risk Grading and By Year of Origination |
The following table stratifies the loans held for investment portfolio by the Company’s internal risk grading, and by year of origination as of the date indicated:
The following table stratifies the loan portfolio by the Company’s internal risk rating as of the date indicated:
|
Goodwill and Core Deposit Intangible (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Core Deposit Intangible [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in Carrying Amounts of Goodwill and Core Deposit Intangibles | The following table presents the changes in the carrying amounts of goodwill and core deposit intangibles
for the three months ended March 31, 2023:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Carrying Value and Accumulated Amortization of Core Deposit Intangible |
The carrying amount of the core deposit intangible consisted of the following at March 31, 2023 (in thousands):
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Estimated Amortization Expense for Core Deposit Intangible |
The following table outlines the
estimated amortization expense for the core deposit intangible during the next five fiscal years (in thousands):
|
Fair Value (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets Measured on Recurring Basis |
Assets measured at fair value on a recurring basis are summarized below:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Values of Financial Instruments |
The following tables present the carrying amount, fair value, and placement in the fair value
hierarchy of the Company’s financial instruments not recorded at fair value on a recurring basis as of March 31, 2023 and December 31, 2022.
|
Stock-based Compensation (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based Compensation [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Stock Option Activity |
The following table summarizes stock option activity during the three months ended March 31, 2023:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Options Outstanding and Exercisable |
Options outstanding and exercisable at March 31, 2023 were as follows:
|
ESOP Plan (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ESOP Plan [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares Held by ESOP |
Shares held by the ESOP
were as follows:
|
Stockholders' Equity and Regulatory Matters (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity and Regulatory Matters [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Actual and Required Capital Amounts and Ratios | Actual and required capital amounts and ratios as of the dates indicated are presented below:
|
Basis of Financial Statement Presentation (Details) - USD ($) $ in Thousands |
Mar. 31, 2023 |
Dec. 31, 2022 |
Mar. 31, 2022 |
Dec. 31, 2021 |
||||
---|---|---|---|---|---|---|---|---|
Assets [Abstract] | ||||||||
Allowance for credit losses on loans | $ 6,285 | [1] | $ 4,388 | [1] | $ 3,539 | $ 3,391 | ||
Deferred tax assets | 10,823 | 11,872 | ||||||
Liabilities [Abstract] | ||||||||
Allowance for credit losses on off-balance sheet exposures | 367 | 412 | ||||||
Stockholders' equity [Abstract] | ||||||||
Retained earnings | $ 9,611 | 9,294 | ||||||
ASU 2016-13 [Member] | ||||||||
Assets [Abstract] | ||||||||
Allowance for credit losses on available-for-sale securities | 0 | |||||||
Allowance for credit losses on loans | 6,197 | |||||||
Deferred tax assets | 12,380 | |||||||
Liabilities [Abstract] | ||||||||
Allowance for credit losses on off-balance sheet exposures | 367 | |||||||
Stockholders' equity [Abstract] | ||||||||
Retained earnings | 8,038 | |||||||
Pre-CECL Adoption [Member] | ||||||||
Assets [Abstract] | ||||||||
Allowance for credit losses on available-for-sale securities | 0 | |||||||
Allowance for credit losses on loans | 4,388 | |||||||
Deferred tax assets | 11,872 | |||||||
Liabilities [Abstract] | ||||||||
Allowance for credit losses on off-balance sheet exposures | 412 | |||||||
Stockholders' equity [Abstract] | ||||||||
Retained earnings | 9,294 | |||||||
Impact of CECL Adoption [Member] | ASU 2016-13 [Member] | ||||||||
Assets [Abstract] | ||||||||
Allowance for credit losses on available-for-sale securities | 0 | |||||||
Allowance for credit losses on loans | 1,809 | |||||||
Deferred tax assets | 508 | |||||||
Liabilities [Abstract] | ||||||||
Allowance for credit losses on off-balance sheet exposures | (45) | |||||||
Stockholders' equity [Abstract] | ||||||||
Retained earnings | $ (1,256) | |||||||
|
Earnings Per Share of Common Stock (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Earnings Per Share of Common Stock [Abstract] | ||
Net income attributable to Broadway Financial Corporation | $ 1,573 | $ 958 |
Less net income attributable to participating securities | 7 | 7 |
Income available to common stockholders | $ 1,566 | $ 951 |
Weighted average common shares outstanding for basic earnings per common share (in shares) | 71,442,163 | 72,039,378 |
Add: dilutive effects of unvested restricted stock awards (in shares) | 323,024 | 50,195 |
Add: dilutive effects of assumed exercise of stock options (in shares) | 0 | 490,372 |
Weighted average common shares outstanding for diluted earnings per common share (in shares) | 71,765,187 | 72,579,945 |
Earnings per common share-basic (in dollars per share) | $ 0.02 | $ 0.01 |
Earnings per common share-diluted (in dollars per share) | $ 0.02 | $ 0.01 |
Securities, Available-for-Sale Investment Securities Portfolios (Details) - USD ($) $ in Thousands |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Available-for-Sale Investment Securities Portfolios [Abstract] | ||
Amortized cost | $ 350,173 | $ 353,329 |
Gross unrealized gains | 11 | 37 |
Gross unrealized losses | (21,158) | (24,617) |
Fair value | 329,026 | 328,749 |
Federal Agency Mortgage-backed Securities [Member] | ||
Available-for-Sale Investment Securities Portfolios [Abstract] | ||
Amortized cost | 82,834 | 84,955 |
Gross unrealized gains | 2 | 2 |
Gross unrealized losses | (9,819) | (10,788) |
Fair value | 73,017 | 74,169 |
Federal Agency Collateralized Mortgage Obligations (CMO) [Member] | ||
Available-for-Sale Investment Securities Portfolios [Abstract] | ||
Amortized cost | 27,077 | 27,776 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (1,328) | (1,676) |
Fair value | 25,749 | 26,100 |
Federal Agency Debt [Member] | ||
Available-for-Sale Investment Securities Portfolios [Abstract] | ||
Amortized cost | 55,734 | 55,687 |
Gross unrealized gains | 0 | 26 |
Gross unrealized losses | (3,704) | (4,288) |
Fair value | 52,030 | 51,425 |
Municipal Bonds [Member] | ||
Available-for-Sale Investment Securities Portfolios [Abstract] | ||
Amortized cost | 4,858 | 4,866 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (559) | (669) |
Fair value | 4,299 | 4,197 |
U.S. Treasuries [Member] | ||
Available-for-Sale Investment Securities Portfolios [Abstract] | ||
Amortized cost | 166,255 | 165,997 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (4,159) | (5,408) |
Fair value | 162,096 | 160,589 |
SBA Pools [Member] | ||
Available-for-Sale Investment Securities Portfolios [Abstract] | ||
Amortized cost | 13,415 | 14,048 |
Gross unrealized gains | 9 | 9 |
Gross unrealized losses | (1,589) | (1,788) |
Fair value | $ 11,835 | $ 12,269 |
Securities, Additional Disclosure (Details) - USD ($) $ in Thousands |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Debt Securities Available-for-Sale [Abstract] | ||
Securities collateral pledged | $ 87,600 | $ 64,400 |
Securities of any one issuer, other than U.S. Government, exceeding 10% of stockholders' equity | 0 | 0 |
Asset Pledged as Collateral [Member] | Deposits [Member] | ||
Debt Securities Available-for-Sale [Abstract] | ||
Securities pledged to secure public deposits | 0 | 0 |
U.S. Treasuries [Member] | ||
Debt Securities Available-for-Sale [Abstract] | ||
Securities collateral pledged | 33,900 | 19,200 |
U.S. Government Agency Securities [Member] | ||
Debt Securities Available-for-Sale [Abstract] | ||
Securities collateral pledged | 26,000 | 33,300 |
Mortgage Backed Securities [Member] | ||
Debt Securities Available-for-Sale [Abstract] | ||
Securities collateral pledged | 22,200 | |
SBA Pools [Member] | ||
Debt Securities Available-for-Sale [Abstract] | ||
Securities collateral pledged | 5,300 | |
Federal Agency Collateralized Mortgage Obligations (CMO) [Member] | ||
Debt Securities Available-for-Sale [Abstract] | ||
Securities collateral pledged | $ 273 | |
Federal Agency Mortgage-backed Securities [Member] | ||
Debt Securities Available-for-Sale [Abstract] | ||
Securities collateral pledged | $ 11,900 |
Securities, Contractual Maturities (Details) - USD ($) $ in Thousands |
Mar. 31, 2023 |
Dec. 31, 2022 |
||
---|---|---|---|---|
Available for sale, amortized cost [Abstract] | ||||
Due in one year or less | $ 24,876 | |||
Due after one year through five years | 194,958 | |||
Due after five years through ten years | 35,270 | |||
Due after ten years | [1] | 95,069 | ||
Amortized cost | 350,173 | $ 353,329 | ||
Available for sale, gross unrealized gains [Abstract] | ||||
Due in one year or less | 0 | |||
Due after one year through five years | 0 | |||
Due after five years through ten years | 0 | |||
Due after ten years | [1] | 11 | ||
Gross unrealized gains | 11 | 37 | ||
Available for sale, gross unrealized loss [Abstract] | ||||
Due in one year or less | (493) | |||
Due after one year through five years | (6,682) | |||
Due after five years through ten years | (2,839) | |||
Due after ten years | [1] | (11,144) | ||
Gross unrealized losses | (21,158) | (24,617) | ||
Available for sale, fair value [Abstract] | ||||
Due in one year or less | 24,383 | |||
Due after one year through five years | 188,276 | |||
Due after five years through ten years | 32,431 | |||
Due after ten years | [1] | 83,936 | ||
Fair value | $ 329,026 | $ 328,749 | ||
|
Securities, Unrealized Loss Position (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2023 |
Dec. 31, 2022 |
|
Debt Securities Available-for-Sale, Unrealized Loss Position [Abstract] | ||
Less than 12 months, fair value | $ 193,587 | $ 235,668 |
More than 12 months, fair value | 133,454 | 87,969 |
Total, fair value | 327,041 | 323,637 |
Less than 12 months, unrealized losses | (4,420) | (11,785) |
More than 12 months, unrealized losses | (16,738) | (12,832) |
Total, unrealized losses | (21,158) | (24,617) |
Debt Securities Available-for-Sale [Abstract] | ||
Securities in nonaccrual status | 0 | 0 |
Securities purchased with deterioration in credit quality | 0 | 0 |
Collateral dependent securities | 0 | 0 |
Federal Agency Mortgage-backed Securities [Member] | ||
Debt Securities Available-for-Sale, Unrealized Loss Position [Abstract] | ||
Less than 12 months, fair value | 13,826 | 38,380 |
More than 12 months, fair value | 58,935 | 35,526 |
Total, fair value | 72,761 | 73,906 |
Less than 12 months, unrealized losses | (562) | (4,807) |
More than 12 months, unrealized losses | (9,257) | (5,981) |
Total, unrealized losses | (9,819) | (10,788) |
Federal Agency Collateralized Mortgage Obligations (CMO) [Member] | ||
Debt Securities Available-for-Sale, Unrealized Loss Position [Abstract] | ||
Less than 12 months, fair value | 20,691 | 20,997 |
More than 12 months, fair value | 5,058 | 5,103 |
Total, fair value | 25,749 | 26,100 |
Less than 12 months, unrealized losses | (663) | (885) |
More than 12 months, unrealized losses | (665) | (791) |
Total, unrealized losses | (1,328) | (1,676) |
Federal Agency Debt [Member] | ||
Debt Securities Available-for-Sale, Unrealized Loss Position [Abstract] | ||
Less than 12 months, fair value | 23,548 | 26,383 |
More than 12 months, fair value | 28,482 | 21,956 |
Total, fair value | 52,030 | 48,339 |
Less than 12 months, unrealized losses | (580) | (1,529) |
More than 12 months, unrealized losses | (3,124) | (2,759) |
Total, unrealized losses | (3,704) | (4,288) |
Municipal Bonds [Member] | ||
Debt Securities Available-for-Sale, Unrealized Loss Position [Abstract] | ||
Less than 12 months, fair value | 0 | 2,176 |
More than 12 months, fair value | 4,299 | 2,021 |
Total, fair value | 4,299 | 4,197 |
Less than 12 months, unrealized losses | 0 | (315) |
More than 12 months, unrealized losses | (559) | (354) |
Total, unrealized losses | (559) | (669) |
US Treasuries [Member] | ||
Debt Securities Available-for-Sale, Unrealized Loss Position [Abstract] | ||
Less than 12 months, fair value | 135,522 | 143,989 |
More than 12 months, fair value | 26,574 | 16,600 |
Total, fair value | 162,096 | 160,589 |
Less than 12 months, unrealized losses | (2,615) | (3,884) |
More than 12 months, unrealized losses | (1,544) | (1,524) |
Total, unrealized losses | (4,159) | (5,408) |
SBA Pools [Member] | ||
Debt Securities Available-for-Sale, Unrealized Loss Position [Abstract] | ||
Less than 12 months, fair value | 0 | 3,743 |
More than 12 months, fair value | 10,106 | 6,763 |
Total, fair value | 10,106 | 10,506 |
Less than 12 months, unrealized losses | 0 | (365) |
More than 12 months, unrealized losses | (1,589) | (1,423) |
Total, unrealized losses | $ (1,589) | $ (1,788) |
Loans Receivable Held for Investment, Summary (Details) - USD ($) $ in Thousands |
3 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2023 |
Dec. 31, 2022 |
Mar. 31, 2022 |
Dec. 31, 2021 |
|||||||
Loans Receivable Held for Investment [Abstract] | ||||||||||
Gross loans receivable before deferred loan costs and premiums | $ 781,816 | $ 771,689 | ||||||||
Unamortized net deferred loan costs and premiums | 1,532 | 1,755 | ||||||||
Gross loans receivable | 783,348 | 773,444 | ||||||||
Credit and interest marks on purchased loans, net | (1,010) | (1,010) | ||||||||
Allowance for credit losses | (6,285) | [1] | (4,388) | [1] | $ (3,539) | $ (3,391) | ||||
Loans receivable, net | 776,053 | 768,046 | ||||||||
Real Estate [Member] | Single Family [Member] | ||||||||||
Loans Receivable Held for Investment [Abstract] | ||||||||||
Gross loans receivable before deferred loan costs and premiums | 29,216 | 30,038 | ||||||||
Gross loans receivable | 29,216 | 30,038 | ||||||||
Allowance for credit losses | (261) | (109) | (157) | (145) | ||||||
Real Estate [Member] | Multi-Family [Member] | ||||||||||
Loans Receivable Held for Investment [Abstract] | ||||||||||
Gross loans receivable before deferred loan costs and premiums | 509,514 | 502,141 | ||||||||
Gross loans receivable | 511,046 | 503,896 | ||||||||
Allowance for credit losses | (3,932) | (3,273) | (2,771) | (2,657) | ||||||
Real Estate [Member] | Commercial Real Estate [Member] | ||||||||||
Loans Receivable Held for Investment [Abstract] | ||||||||||
Gross loans receivable before deferred loan costs and premiums | 129,031 | 114,574 | ||||||||
Gross loans receivable | 129,031 | 114,574 | ||||||||
Allowance for credit losses | (1,012) | (449) | (216) | (236) | ||||||
Real Estate [Member] | Church [Member] | ||||||||||
Loans Receivable Held for Investment [Abstract] | ||||||||||
Gross loans receivable before deferred loan costs and premiums | 13,983 | 15,780 | ||||||||
Gross loans receivable | 13,983 | 15,780 | ||||||||
Allowance for credit losses | (92) | (65) | (63) | (103) | ||||||
Real Estate [Member] | Construction [Member] | ||||||||||
Loans Receivable Held for Investment [Abstract] | ||||||||||
Gross loans receivable before deferred loan costs and premiums | 59,143 | 40,703 | ||||||||
Gross loans receivable | 59,143 | 40,703 | ||||||||
Allowance for credit losses | (593) | (313) | (237) | (212) | ||||||
Commercial - Other [Member] | ||||||||||
Loans Receivable Held for Investment [Abstract] | ||||||||||
Gross loans receivable before deferred loan costs and premiums | 37,354 | 64,841 | ||||||||
Gross loans receivable | 68,442 | |||||||||
Allowance for credit losses | (357) | (175) | (80) | (23) | ||||||
Commercial - Other [Member] | PPP Loans [Member] | ||||||||||
Loans Receivable Held for Investment [Abstract] | ||||||||||
Gross loans receivable before deferred loan costs and premiums | $ 2,700 | 2,700 | ||||||||
Loans receivable, interest rate | 1.00% | |||||||||
Commercial - Other [Member] | PPP Loans [Member] | Minimum [Member] | ||||||||||
Loans Receivable Held for Investment [Abstract] | ||||||||||
Loans receivable, term | 2 years | |||||||||
Commercial - Other [Member] | PPP Loans [Member] | Maximum [Member] | ||||||||||
Loans Receivable Held for Investment [Abstract] | ||||||||||
Loans receivable, term | 5 years | |||||||||
SBA Loans [Member] | ||||||||||
Loans Receivable Held for Investment [Abstract] | ||||||||||
Gross loans receivable before deferred loan costs and premiums | [2] | $ 3,565 | 3,601 | |||||||
Gross loans receivable | 3,565 | 3,601 | ||||||||
Allowance for credit losses | (38) | 0 | ||||||||
Consumer [Member] | ||||||||||
Loans Receivable Held for Investment [Abstract] | ||||||||||
Gross loans receivable before deferred loan costs and premiums | 10 | 11 | ||||||||
Gross loans receivable | 10 | 11 | ||||||||
Allowance for credit losses | $ 0 | $ (4) | $ (15) | $ (15) | ||||||
|
Loans Receivable Held for Investment, Purchased Credit Impaired (PCI) Loans (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
Dec. 31, 2022 |
|
Purchased Credit Impaired Loans [Abstract] | |||
Loans receivable | $ 776,053 | $ 768,046 | |
Purchased Credit Impaired Loans [Member] | |||
Accretable Yield on Purchased Credit Impaired Loans [Roll Forward] | |||
Balance at the beginning of the period | 165 | $ 883 | |
Deduction due to payoffs | 0 | (707) | |
Accretion | 0 | (11) | |
Balance at the end of the period | 165 | $ 165 | |
Real Estate [Member] | Purchased Credit Impaired Loans [Member] | |||
Purchased Credit Impaired Loans [Abstract] | |||
Loans receivable | 125 | 125 | |
Real Estate [Member] | Single Family [Member] | Purchased Credit Impaired Loans [Member] | |||
Purchased Credit Impaired Loans [Abstract] | |||
Loans receivable | 68 | 68 | |
Commercial - Other [Member] | Purchased Credit Impaired Loans [Member] | |||
Purchased Credit Impaired Loans [Abstract] | |||
Loans receivable | $ 57 | $ 57 |
Loans Receivable Held for Investment, Activity in Allowance for Credit Losses on Loans (Details) - USD ($) $ in Thousands |
3 Months Ended | ||||
---|---|---|---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
||||
Allowance for Credit Losses on Loans [Roll Forward] | |||||
Beginning balance | $ 4,388 | [1] | $ 3,391 | ||
Charge-offs | 0 | 0 | |||
Recoveries | 0 | 0 | |||
Provision (benefit) | 88 | 148 | |||
Ending balance | 6,285 | [1] | 3,539 | ||
Real Estate [Member] | Single Family [Member] | |||||
Allowance for Credit Losses on Loans [Roll Forward] | |||||
Beginning balance | 109 | 145 | |||
Charge-offs | 0 | 0 | |||
Recoveries | 0 | 0 | |||
Provision (benefit) | (62) | 12 | |||
Ending balance | 261 | 157 | |||
Real Estate [Member] | Multi-Family [Member] | |||||
Allowance for Credit Losses on Loans [Roll Forward] | |||||
Beginning balance | 3,273 | 2,657 | |||
Charge-offs | 0 | 0 | |||
Recoveries | 0 | 0 | |||
Provision (benefit) | 56 | 114 | |||
Ending balance | 3,932 | 2,771 | |||
Real Estate [Member] | Commercial Real Estate [Member] | |||||
Allowance for Credit Losses on Loans [Roll Forward] | |||||
Beginning balance | 449 | 236 | |||
Charge-offs | 0 | 0 | |||
Recoveries | 0 | 0 | |||
Provision (benefit) | 97 | (20) | |||
Ending balance | 1,012 | 216 | |||
Real Estate [Member] | Church [Member] | |||||
Allowance for Credit Losses on Loans [Roll Forward] | |||||
Beginning balance | 65 | 103 | |||
Charge-offs | 0 | 0 | |||
Recoveries | 0 | 0 | |||
Provision (benefit) | (10) | (40) | |||
Ending balance | 92 | 63 | |||
Real Estate [Member] | Construction [Member] | |||||
Allowance for Credit Losses on Loans [Roll Forward] | |||||
Beginning balance | 313 | 212 | |||
Charge-offs | 0 | 0 | |||
Recoveries | 0 | 0 | |||
Provision (benefit) | 61 | 25 | |||
Ending balance | 593 | 237 | |||
Commercial - Other [Member] | |||||
Allowance for Credit Losses on Loans [Roll Forward] | |||||
Beginning balance | 175 | 23 | |||
Charge-offs | 0 | 0 | |||
Recoveries | 0 | 0 | |||
Provision (benefit) | (72) | 57 | |||
Ending balance | 357 | 80 | |||
SBA Loans [Member] | |||||
Allowance for Credit Losses on Loans [Roll Forward] | |||||
Beginning balance | 0 | ||||
Charge-offs | 0 | ||||
Recoveries | 0 | ||||
Provision (benefit) | 18 | ||||
Ending balance | 38 | ||||
Consumer [Member] | |||||
Allowance for Credit Losses on Loans [Roll Forward] | |||||
Beginning balance | 4 | 15 | |||
Charge-offs | 0 | 0 | |||
Recoveries | 0 | 0 | |||
Provision (benefit) | 0 | 0 | |||
Ending balance | 0 | $ 15 | |||
ASU 2016-13 [Member] | |||||
Allowance for Credit Losses on Loans [Roll Forward] | |||||
Beginning balance | 6,197 | ||||
Cumulative Effect, Period of Adoption, Adjustment [Member] | ASU 2016-13 [Member] | |||||
Allowance for Credit Losses on Loans [Roll Forward] | |||||
Beginning balance | 1,809 | ||||
Cumulative Effect, Period of Adoption, Adjustment [Member] | ASU 2016-13 [Member] | Real Estate [Member] | Single Family [Member] | |||||
Allowance for Credit Losses on Loans [Roll Forward] | |||||
Beginning balance | 214 | ||||
Cumulative Effect, Period of Adoption, Adjustment [Member] | ASU 2016-13 [Member] | Real Estate [Member] | Multi-Family [Member] | |||||
Allowance for Credit Losses on Loans [Roll Forward] | |||||
Beginning balance | 603 | ||||
Cumulative Effect, Period of Adoption, Adjustment [Member] | ASU 2016-13 [Member] | Real Estate [Member] | Commercial Real Estate [Member] | |||||
Allowance for Credit Losses on Loans [Roll Forward] | |||||
Beginning balance | 466 | ||||
Cumulative Effect, Period of Adoption, Adjustment [Member] | ASU 2016-13 [Member] | Real Estate [Member] | Church [Member] | |||||
Allowance for Credit Losses on Loans [Roll Forward] | |||||
Beginning balance | 37 | ||||
Cumulative Effect, Period of Adoption, Adjustment [Member] | ASU 2016-13 [Member] | Real Estate [Member] | Construction [Member] | |||||
Allowance for Credit Losses on Loans [Roll Forward] | |||||
Beginning balance | 219 | ||||
Cumulative Effect, Period of Adoption, Adjustment [Member] | ASU 2016-13 [Member] | Commercial - Other [Member] | |||||
Allowance for Credit Losses on Loans [Roll Forward] | |||||
Beginning balance | 254 | ||||
Cumulative Effect, Period of Adoption, Adjustment [Member] | ASU 2016-13 [Member] | SBA Loans [Member] | |||||
Allowance for Credit Losses on Loans [Roll Forward] | |||||
Beginning balance | 20 | ||||
Cumulative Effect, Period of Adoption, Adjustment [Member] | ASU 2016-13 [Member] | Consumer [Member] | |||||
Allowance for Credit Losses on Loans [Roll Forward] | |||||
Beginning balance | $ (4) | ||||
|
Loans Receivable Held for Investment, Collateral dependent loans by collateral type (Details) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2023
USD ($)
Loan
|
Dec. 31, 2022
USD ($)
|
|
Collateral Dependent Loans By Collateral Type [Abstract] | ||
Total Loans | $ 783,348 | $ 773,444 |
Individually evaluated loans based on the underlying value of collateral | $ 1,200 | |
Number of loans individually evaluated using discounted cash flow approach | Loan | 0 | |
Collateral Pledged [Member] | ||
Collateral Dependent Loans By Collateral Type [Abstract] | ||
Total Loans | $ 1,219 | |
Collateral Pledged - Single Family [Member] | ||
Collateral Dependent Loans By Collateral Type [Abstract] | ||
Total Loans | 53 | |
Collateral Pledged - Condominium [Member] | ||
Collateral Dependent Loans By Collateral Type [Abstract] | ||
Total Loans | 112 | |
Collateral Pledged - Church [Member] | ||
Collateral Dependent Loans By Collateral Type [Abstract] | ||
Total Loans | 773 | |
Collateral Pledged - Business Assets [Member] | ||
Collateral Dependent Loans By Collateral Type [Abstract] | ||
Total Loans | 281 | |
Real Estate [Member] | Single Family [Member] | ||
Collateral Dependent Loans By Collateral Type [Abstract] | ||
Total Loans | 29,216 | 30,038 |
Real Estate [Member] | Single Family [Member] | Collateral Pledged [Member] | ||
Collateral Dependent Loans By Collateral Type [Abstract] | ||
Total Loans | 165 | |
Real Estate [Member] | Single Family [Member] | Collateral Pledged - Single Family [Member] | ||
Collateral Dependent Loans By Collateral Type [Abstract] | ||
Total Loans | 53 | |
Real Estate [Member] | Single Family [Member] | Collateral Pledged - Condominium [Member] | ||
Collateral Dependent Loans By Collateral Type [Abstract] | ||
Total Loans | 112 | |
Real Estate [Member] | Single Family [Member] | Collateral Pledged - Church [Member] | ||
Collateral Dependent Loans By Collateral Type [Abstract] | ||
Total Loans | 0 | |
Real Estate [Member] | Single Family [Member] | Collateral Pledged - Business Assets [Member] | ||
Collateral Dependent Loans By Collateral Type [Abstract] | ||
Total Loans | 0 | |
Real Estate [Member] | Commercial Real Estate [Member] | ||
Collateral Dependent Loans By Collateral Type [Abstract] | ||
Total Loans | 129,031 | 114,574 |
Real Estate [Member] | Commercial Real Estate [Member] | Collateral Pledged [Member] | ||
Collateral Dependent Loans By Collateral Type [Abstract] | ||
Total Loans | 78 | |
Real Estate [Member] | Commercial Real Estate [Member] | Collateral Pledged - Single Family [Member] | ||
Collateral Dependent Loans By Collateral Type [Abstract] | ||
Total Loans | 0 | |
Real Estate [Member] | Commercial Real Estate [Member] | Collateral Pledged - Condominium [Member] | ||
Collateral Dependent Loans By Collateral Type [Abstract] | ||
Total Loans | 0 | |
Real Estate [Member] | Commercial Real Estate [Member] | Collateral Pledged - Church [Member] | ||
Collateral Dependent Loans By Collateral Type [Abstract] | ||
Total Loans | 78 | |
Real Estate [Member] | Commercial Real Estate [Member] | Collateral Pledged - Business Assets [Member] | ||
Collateral Dependent Loans By Collateral Type [Abstract] | ||
Total Loans | 0 | |
Real Estate [Member] | Church [Member] | ||
Collateral Dependent Loans By Collateral Type [Abstract] | ||
Total Loans | 13,983 | 15,780 |
Real Estate [Member] | Church [Member] | Collateral Pledged [Member] | ||
Collateral Dependent Loans By Collateral Type [Abstract] | ||
Total Loans | 695 | |
Real Estate [Member] | Church [Member] | Collateral Pledged - Single Family [Member] | ||
Collateral Dependent Loans By Collateral Type [Abstract] | ||
Total Loans | 0 | |
Real Estate [Member] | Church [Member] | Collateral Pledged - Condominium [Member] | ||
Collateral Dependent Loans By Collateral Type [Abstract] | ||
Total Loans | 0 | |
Real Estate [Member] | Church [Member] | Collateral Pledged - Church [Member] | ||
Collateral Dependent Loans By Collateral Type [Abstract] | ||
Total Loans | 695 | |
Real Estate [Member] | Church [Member] | Collateral Pledged - Business Assets [Member] | ||
Collateral Dependent Loans By Collateral Type [Abstract] | ||
Total Loans | 0 | |
Commercial - Other [Member] | ||
Collateral Dependent Loans By Collateral Type [Abstract] | ||
Total Loans | $ 68,442 | |
Commercial - Other [Member] | Collateral Pledged [Member] | ||
Collateral Dependent Loans By Collateral Type [Abstract] | ||
Total Loans | 281 | |
Commercial - Other [Member] | Collateral Pledged - Single Family [Member] | ||
Collateral Dependent Loans By Collateral Type [Abstract] | ||
Total Loans | 0 | |
Commercial - Other [Member] | Collateral Pledged - Condominium [Member] | ||
Collateral Dependent Loans By Collateral Type [Abstract] | ||
Total Loans | 0 | |
Commercial - Other [Member] | Collateral Pledged - Church [Member] | ||
Collateral Dependent Loans By Collateral Type [Abstract] | ||
Total Loans | 0 | |
Commercial - Other [Member] | Collateral Pledged - Business Assets [Member] | ||
Collateral Dependent Loans By Collateral Type [Abstract] | ||
Total Loans | $ 281 |
Loans Receivable Held for Investment, Allowance for Loan Losses and Recorded Investment in Loans by Type of Loans and Based on Impairment Method (Details) - USD ($) $ in Thousands |
Mar. 31, 2023 |
Dec. 31, 2022 |
Mar. 31, 2022 |
Dec. 31, 2021 |
||||
---|---|---|---|---|---|---|---|---|
Ending Allowance Balance Attributable to Loans [Abstract] | ||||||||
Individually evaluated for impairment | $ 7 | |||||||
Collectively evaluated for impairment | 4,381 | |||||||
Total ending allowance balance | $ 6,285 | [1] | 4,388 | [1] | $ 3,539 | $ 3,391 | ||
Loans [Abstract] | ||||||||
Loans individually evaluated for impairment | 1,712 | |||||||
Loans collectively evaluated for impairment | 624,468 | |||||||
Subtotal | 626,180 | |||||||
Loans acquired in the merger | 147,264 | |||||||
Gross loans receivable | 783,348 | 773,444 | ||||||
Real Estate [Member] | Single Family [Member] | ||||||||
Ending Allowance Balance Attributable to Loans [Abstract] | ||||||||
Individually evaluated for impairment | 3 | |||||||
Collectively evaluated for impairment | 106 | |||||||
Total ending allowance balance | 261 | 109 | 157 | 145 | ||||
Loans [Abstract] | ||||||||
Loans individually evaluated for impairment | 57 | |||||||
Loans collectively evaluated for impairment | 20,893 | |||||||
Subtotal | 20,950 | |||||||
Loans acquired in the merger | 9,088 | |||||||
Gross loans receivable | 29,216 | 30,038 | ||||||
Real Estate [Member] | Multi-Family [Member] | ||||||||
Ending Allowance Balance Attributable to Loans [Abstract] | ||||||||
Individually evaluated for impairment | 0 | |||||||
Collectively evaluated for impairment | 3,273 | |||||||
Total ending allowance balance | 3,932 | 3,273 | 2,771 | 2,657 | ||||
Loans [Abstract] | ||||||||
Loans individually evaluated for impairment | 0 | |||||||
Loans collectively evaluated for impairment | 462,539 | |||||||
Subtotal | 462,539 | |||||||
Loans acquired in the merger | 41,357 | |||||||
Gross loans receivable | 511,046 | 503,896 | ||||||
Real Estate [Member] | Commercial Real Estate [Member] | ||||||||
Ending Allowance Balance Attributable to Loans [Abstract] | ||||||||
Individually evaluated for impairment | 0 | |||||||
Collectively evaluated for impairment | 449 | |||||||
Total ending allowance balance | 1,012 | 449 | 216 | 236 | ||||
Loans [Abstract] | ||||||||
Loans individually evaluated for impairment | 0 | |||||||
Loans collectively evaluated for impairment | 63,929 | |||||||
Subtotal | 63,929 | |||||||
Loans acquired in the merger | 50,645 | |||||||
Gross loans receivable | 129,031 | 114,574 | ||||||
Real Estate [Member] | Church [Member] | ||||||||
Ending Allowance Balance Attributable to Loans [Abstract] | ||||||||
Individually evaluated for impairment | 4 | |||||||
Collectively evaluated for impairment | 61 | |||||||
Total ending allowance balance | 92 | 65 | 63 | 103 | ||||
Loans [Abstract] | ||||||||
Loans individually evaluated for impairment | 1,655 | |||||||
Loans collectively evaluated for impairment | 9,008 | |||||||
Subtotal | 10,663 | |||||||
Loans acquired in the merger | 5,117 | |||||||
Gross loans receivable | 13,983 | 15,780 | ||||||
Real Estate [Member] | Construction [Member] | ||||||||
Ending Allowance Balance Attributable to Loans [Abstract] | ||||||||
Individually evaluated for impairment | 0 | |||||||
Collectively evaluated for impairment | 313 | |||||||
Total ending allowance balance | 593 | 313 | 237 | 212 | ||||
Loans [Abstract] | ||||||||
Loans individually evaluated for impairment | 0 | |||||||
Loans collectively evaluated for impairment | 38,530 | |||||||
Subtotal | 38,530 | |||||||
Loans acquired in the merger | 2,173 | |||||||
Gross loans receivable | 59,143 | 40,703 | ||||||
Commercial - Other [Member] | ||||||||
Ending Allowance Balance Attributable to Loans [Abstract] | ||||||||
Individually evaluated for impairment | 0 | |||||||
Collectively evaluated for impairment | 175 | |||||||
Total ending allowance balance | 357 | 175 | 80 | 23 | ||||
Loans [Abstract] | ||||||||
Loans individually evaluated for impairment | 0 | |||||||
Loans collectively evaluated for impairment | 29,558 | |||||||
Subtotal | 29,558 | |||||||
Loans acquired in the merger | 38,884 | |||||||
Gross loans receivable | 68,442 | |||||||
Consumer [Member] | ||||||||
Ending Allowance Balance Attributable to Loans [Abstract] | ||||||||
Individually evaluated for impairment | 0 | |||||||
Collectively evaluated for impairment | 4 | |||||||
Total ending allowance balance | 0 | 4 | $ 15 | $ 15 | ||||
Loans [Abstract] | ||||||||
Loans individually evaluated for impairment | 0 | |||||||
Loans collectively evaluated for impairment | 11 | |||||||
Subtotal | 11 | |||||||
Loans acquired in the merger | 0 | |||||||
Gross loans receivable | $ 10 | $ 11 | ||||||
|
Loans Receivable Held for Investment, Loans Individually Evaluated for Impairment by Loan Type (Details) $ in Thousands |
Dec. 31, 2022
USD ($)
|
---|---|
With an Allowance Recorded [Abstract] | |
Allowance for loan losses allocated | $ 7 |
Total [Abstract] | |
Unpaid principal balance | 1,712 |
Recorded investment | 1,712 |
Real Estate [Member] | Single Family [Member] | |
With an Allowance Recorded [Abstract] | |
Unpaid principal balance | 57 |
Recorded investment | 57 |
Allowance for loan losses allocated | 3 |
Real Estate [Member] | Church [Member] | |
With No Related Allowance Recorded [Abstract] | |
Unpaid principal balance | 1,572 |
Recorded investment | 1,572 |
With an Allowance Recorded [Abstract] | |
Unpaid principal balance | 83 |
Recorded investment | 83 |
Allowance for loan losses allocated | $ 4 |
Loans Receivable Held for Investment, Average of Loans Individually Evaluated for Impairment by Loan Type and Related Interest Income (Details) $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2022
USD ($)
| |
Loans Individually Evaluated for Impairment by Loan Type and Related Interest Income [Abstract] | |
Average recorded investment | $ 2,878 |
Cash basis interest income recognized | 31 |
Real Estate [Member] | Single Family [Member] | |
Loans Individually Evaluated for Impairment by Loan Type and Related Interest Income [Abstract] | |
Average recorded investment | 64 |
Cash basis interest income recognized | 1 |
Real Estate [Member] | Multi-Family [Member] | |
Loans Individually Evaluated for Impairment by Loan Type and Related Interest Income [Abstract] | |
Average recorded investment | 279 |
Cash basis interest income recognized | 5 |
Real Estate [Member] | Church [Member] | |
Loans Individually Evaluated for Impairment by Loan Type and Related Interest Income [Abstract] | |
Average recorded investment | 2,535 |
Cash basis interest income recognized | $ 25 |
Loans Receivable Held for Investment, Aging of Recorded Investment in Past Due Loans by Loan Type (Details) - USD ($) $ in Thousands |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | $ 783,348 | $ 773,444 |
Total Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 406 | 0 |
30-59 Days Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 406 | 0 |
60-89 Days Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 0 | 0 |
Greater than 90 Days Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 0 | 0 |
Current [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 782,942 | 773,444 |
Real Estate [Member] | Single Family [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 29,216 | 30,038 |
Real Estate [Member] | Single Family [Member] | Total Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 0 | 0 |
Real Estate [Member] | Single Family [Member] | 30-59 Days Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 0 | 0 |
Real Estate [Member] | Single Family [Member] | 60-89 Days Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 0 | 0 |
Real Estate [Member] | Single Family [Member] | Greater than 90 Days Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 0 | 0 |
Real Estate [Member] | Single Family [Member] | Current [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 29,216 | 30,038 |
Real Estate [Member] | Multi-Family [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 511,046 | 503,896 |
Real Estate [Member] | Multi-Family [Member] | Total Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 406 | 0 |
Real Estate [Member] | Multi-Family [Member] | 30-59 Days Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 406 | 0 |
Real Estate [Member] | Multi-Family [Member] | 60-89 Days Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 0 | 0 |
Real Estate [Member] | Multi-Family [Member] | Greater than 90 Days Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 0 | 0 |
Real Estate [Member] | Multi-Family [Member] | Current [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 510,640 | 503,896 |
Real Estate [Member] | Commercial Real Estate [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 129,031 | 114,574 |
Real Estate [Member] | Commercial Real Estate [Member] | Total Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 0 | 0 |
Real Estate [Member] | Commercial Real Estate [Member] | 30-59 Days Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 0 | 0 |
Real Estate [Member] | Commercial Real Estate [Member] | 60-89 Days Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 0 | 0 |
Real Estate [Member] | Commercial Real Estate [Member] | Greater than 90 Days Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 0 | 0 |
Real Estate [Member] | Commercial Real Estate [Member] | Current [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 129,031 | 114,574 |
Real Estate [Member] | Church [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 13,983 | 15,780 |
Real Estate [Member] | Church [Member] | Total Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 0 | 0 |
Real Estate [Member] | Church [Member] | 30-59 Days Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 0 | 0 |
Real Estate [Member] | Church [Member] | 60-89 Days Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 0 | 0 |
Real Estate [Member] | Church [Member] | Greater than 90 Days Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 0 | 0 |
Real Estate [Member] | Church [Member] | Current [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 13,983 | 15,780 |
Real Estate [Member] | Construction [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 59,143 | 40,703 |
Real Estate [Member] | Construction [Member] | Total Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 0 | 0 |
Real Estate [Member] | Construction [Member] | 30-59 Days Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 0 | 0 |
Real Estate [Member] | Construction [Member] | 60-89 Days Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 0 | 0 |
Real Estate [Member] | Construction [Member] | Greater than 90 Days Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 0 | 0 |
Real Estate [Member] | Construction [Member] | Current [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 59,143 | 40,703 |
Commercial - Other [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 37,354 | 64,841 |
Commercial - Other [Member] | Total Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 0 | 0 |
Commercial - Other [Member] | 30-59 Days Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 0 | 0 |
Commercial - Other [Member] | 60-89 Days Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 0 | 0 |
Commercial - Other [Member] | Greater than 90 Days Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 0 | 0 |
Commercial - Other [Member] | Current [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 37,354 | 64,841 |
SBA Loans [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 3,565 | 3,601 |
SBA Loans [Member] | Total Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 0 | 0 |
SBA Loans [Member] | 30-59 Days Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 0 | 0 |
SBA Loans [Member] | 60-89 Days Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 0 | 0 |
SBA Loans [Member] | Greater than 90 Days Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 0 | 0 |
SBA Loans [Member] | Current [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 3,565 | 3,601 |
Consumer [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 10 | 11 |
Consumer [Member] | Total Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 0 | 0 |
Consumer [Member] | 30-59 Days Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 0 | 0 |
Consumer [Member] | 60-89 Days Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 0 | 0 |
Consumer [Member] | Greater than 90 Days Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 0 | 0 |
Consumer [Member] | Current [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | $ 10 | $ 11 |
Loans Receivable Held for Investment, Recorded Investment in Non-accrual Loans by Loan Type (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
Dec. 31, 2022 |
|
Loans Receivable Held for Investment [Abstract] | |||
Total non-accrual loans | $ 0 | $ 144 | |
Foregone interest income | 0 | $ 17 | |
Interest income on nonaccrual loans | 286 | $ 0 | |
Loans 90 days or more delinquent that were accruing interest | 0 | 0 | |
Modifications made to borrowers experiencing financial difficulty | 0 | ||
Real Estate [Member] | Church [Member] | |||
Loans Receivable Held for Investment [Abstract] | |||
Total non-accrual loans | $ 0 | $ 144 |
Loans Receivable Held for Investment, Troubled Debt Restructurings (TDRs) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Dec. 31, 2022 |
|
Troubled Debt Restructurings (TDRs) [Abstract] | ||
Loans classified as troubled debt restructurings | $ 1,700 | |
Specific reserves allocated to TDRs | 7 | |
Timely payment period for return to accrual status | 6 months | |
Non-accrual Status [Member] | ||
Troubled Debt Restructurings (TDRs) [Abstract] | ||
Loans classified as troubled debt restructurings | 144 | |
Accrual Status [Member] | ||
Troubled Debt Restructurings (TDRs) [Abstract] | ||
Loans classified as troubled debt restructurings | $ 1,600 |
Loans Receivable Held for Investment, Internal Risk Grading, and by Year of Origination (Details) - USD ($) $ in Thousands |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Loans Held for Investment Portfolio by Internal Risk Grading, and by Year of Origination [Abstract] | ||
2023 | $ 34,514 | |
2022 | 255,417 | |
2021 | 197,664 | |
2020 | 68,143 | |
2019 | 63,222 | |
Prior | 157,183 | |
Revolving Loans | 7,205 | |
Total Loans | 783,348 | $ 773,444 |
Pass [Member] | ||
Loans Held for Investment Portfolio by Internal Risk Grading, and by Year of Origination [Abstract] | ||
2023 | 17,019 | |
2022 | 220,468 | |
2021 | 189,374 | |
2020 | 66,105 | |
2019 | 58,823 | |
Prior | 122,751 | |
Revolving Loans | 6,568 | |
Total Loans | 681,108 | 685,387 |
Watch [Member] | ||
Loans Held for Investment Portfolio by Internal Risk Grading, and by Year of Origination [Abstract] | ||
2023 | 17,495 | |
2022 | 34,949 | |
2021 | 8,290 | |
2020 | 1,500 | |
2019 | 3,639 | |
Prior | 11,555 | |
Revolving Loans | 637 | |
Total Loans | 78,065 | 65,717 |
Special Mention [Member] | ||
Loans Held for Investment Portfolio by Internal Risk Grading, and by Year of Origination [Abstract] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 538 | |
2019 | 0 | |
Prior | 2,033 | |
Revolving Loans | 0 | |
Total Loans | 2,571 | 16,590 |
Substandard [Member] | ||
Loans Held for Investment Portfolio by Internal Risk Grading, and by Year of Origination [Abstract] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 760 | |
Prior | 20,844 | |
Revolving Loans | 0 | |
Total Loans | 21,604 | 5,750 |
Real Estate [Member] | Single Family [Member] | ||
Loans Held for Investment Portfolio by Internal Risk Grading, and by Year of Origination [Abstract] | ||
2023 | 0 | |
2022 | 2,517 | |
2021 | 2,663 | |
2020 | 4,399 | |
2019 | 1,833 | |
Prior | 17,804 | |
Revolving Loans | 0 | |
Total Loans | 29,216 | 30,038 |
Real Estate [Member] | Single Family [Member] | Pass [Member] | ||
Loans Held for Investment Portfolio by Internal Risk Grading, and by Year of Origination [Abstract] | ||
2023 | 0 | |
2022 | 2,517 | |
2021 | 2,663 | |
2020 | 4,399 | |
2019 | 1,833 | |
Prior | 16,798 | |
Revolving Loans | 0 | |
Total Loans | 28,210 | 29,022 |
Real Estate [Member] | Single Family [Member] | Watch [Member] | ||
Loans Held for Investment Portfolio by Internal Risk Grading, and by Year of Origination [Abstract] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 349 | |
Revolving Loans | 0 | |
Total Loans | 349 | 354 |
Real Estate [Member] | Single Family [Member] | Special Mention [Member] | ||
Loans Held for Investment Portfolio by Internal Risk Grading, and by Year of Origination [Abstract] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 258 | |
Revolving Loans | 0 | |
Total Loans | 258 | 260 |
Real Estate [Member] | Single Family [Member] | Substandard [Member] | ||
Loans Held for Investment Portfolio by Internal Risk Grading, and by Year of Origination [Abstract] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 399 | |
Revolving Loans | 0 | |
Total Loans | 399 | 402 |
Real Estate [Member] | Multi-Family [Member] | ||
Loans Held for Investment Portfolio by Internal Risk Grading, and by Year of Origination [Abstract] | ||
2023 | 13,179 | |
2022 | 190,921 | |
2021 | 155,081 | |
2020 | 27,839 | |
2019 | 46,992 | |
Prior | 77,034 | |
Revolving Loans | 0 | |
Total Loans | 511,046 | 503,896 |
Real Estate [Member] | Multi-Family [Member] | Pass [Member] | ||
Loans Held for Investment Portfolio by Internal Risk Grading, and by Year of Origination [Abstract] | ||
2023 | 13,179 | |
2022 | 187,621 | |
2021 | 154,166 | |
2020 | 27,839 | |
2019 | 46,232 | |
Prior | 57,980 | |
Revolving Loans | 0 | |
Total Loans | 487,017 | 479,182 |
Real Estate [Member] | Multi-Family [Member] | Watch [Member] | ||
Loans Held for Investment Portfolio by Internal Risk Grading, and by Year of Origination [Abstract] | ||
2023 | 0 | |
2022 | 3,300 | |
2021 | 915 | |
2020 | 0 | |
2019 | 0 | |
Prior | 3,453 | |
Revolving Loans | 0 | |
Total Loans | 7,668 | 9,855 |
Real Estate [Member] | Multi-Family [Member] | Special Mention [Member] | ||
Loans Held for Investment Portfolio by Internal Risk Grading, and by Year of Origination [Abstract] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 1,775 | |
Revolving Loans | 0 | |
Total Loans | 1,775 | 14,859 |
Real Estate [Member] | Multi-Family [Member] | Substandard [Member] | ||
Loans Held for Investment Portfolio by Internal Risk Grading, and by Year of Origination [Abstract] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 760 | |
Prior | 13,826 | |
Revolving Loans | 0 | |
Total Loans | 14,586 | 0 |
Real Estate [Member] | Commercial Real Estate [Member] | ||
Loans Held for Investment Portfolio by Internal Risk Grading, and by Year of Origination [Abstract] | ||
2023 | 2,835 | |
2022 | 23,003 | |
2021 | 26,181 | |
2020 | 30,678 | |
2019 | 7,170 | |
Prior | 39,164 | |
Revolving Loans | 0 | |
Total Loans | 129,031 | 114,574 |
Real Estate [Member] | Commercial Real Estate [Member] | Pass [Member] | ||
Loans Held for Investment Portfolio by Internal Risk Grading, and by Year of Origination [Abstract] | ||
2023 | 2,835 | |
2022 | 22,571 | |
2021 | 26,181 | |
2020 | 30,678 | |
2019 | 6,430 | |
Prior | 32,719 | |
Revolving Loans | 0 | |
Total Loans | 121,414 | 104,066 |
Real Estate [Member] | Commercial Real Estate [Member] | Watch [Member] | ||
Loans Held for Investment Portfolio by Internal Risk Grading, and by Year of Origination [Abstract] | ||
2023 | 0 | |
2022 | 432 | |
2021 | 0 | |
2020 | 0 | |
2019 | 740 | |
Prior | 1,101 | |
Revolving Loans | 0 | |
Total Loans | 2,273 | 4,524 |
Real Estate [Member] | Commercial Real Estate [Member] | Special Mention [Member] | ||
Loans Held for Investment Portfolio by Internal Risk Grading, and by Year of Origination [Abstract] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Revolving Loans | 0 | |
Total Loans | 0 | 1,471 |
Real Estate [Member] | Commercial Real Estate [Member] | Substandard [Member] | ||
Loans Held for Investment Portfolio by Internal Risk Grading, and by Year of Origination [Abstract] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 5,344 | |
Revolving Loans | 0 | |
Total Loans | 5,344 | 4,513 |
Real Estate [Member] | Church [Member] | ||
Loans Held for Investment Portfolio by Internal Risk Grading, and by Year of Origination [Abstract] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 2,247 | |
2020 | 1,785 | |
2019 | 649 | |
Prior | 9,302 | |
Revolving Loans | 0 | |
Total Loans | 13,983 | 15,780 |
Real Estate [Member] | Church [Member] | Pass [Member] | ||
Loans Held for Investment Portfolio by Internal Risk Grading, and by Year of Origination [Abstract] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 2,247 | |
2020 | 1,785 | |
2019 | 0 | |
Prior | 7,188 | |
Revolving Loans | 0 | |
Total Loans | 11,220 | 14,505 |
Real Estate [Member] | Church [Member] | Watch [Member] | ||
Loans Held for Investment Portfolio by Internal Risk Grading, and by Year of Origination [Abstract] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 649 | |
Prior | 1,120 | |
Revolving Loans | 0 | |
Total Loans | 1,769 | 728 |
Real Estate [Member] | Church [Member] | Special Mention [Member] | ||
Loans Held for Investment Portfolio by Internal Risk Grading, and by Year of Origination [Abstract] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Revolving Loans | 0 | |
Total Loans | 0 | 0 |
Real Estate [Member] | Church [Member] | Substandard [Member] | ||
Loans Held for Investment Portfolio by Internal Risk Grading, and by Year of Origination [Abstract] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 994 | |
Revolving Loans | 0 | |
Total Loans | 994 | 547 |
Real Estate [Member] | Construction [Member] | ||
Loans Held for Investment Portfolio by Internal Risk Grading, and by Year of Origination [Abstract] | ||
2023 | 18,490 | |
2022 | 30,012 | |
2021 | 8,487 | |
2020 | 0 | |
2019 | 0 | |
Prior | 2,154 | |
Revolving Loans | 0 | |
Total Loans | 59,143 | 40,703 |
Real Estate [Member] | Construction [Member] | Pass [Member] | ||
Loans Held for Investment Portfolio by Internal Risk Grading, and by Year of Origination [Abstract] | ||
2023 | 995 | |
2022 | 0 | |
2021 | 1,219 | |
2020 | 0 | |
2019 | 0 | |
Prior | 2,154 | |
Revolving Loans | 0 | |
Total Loans | 4,368 | 2,173 |
Real Estate [Member] | Construction [Member] | Watch [Member] | ||
Loans Held for Investment Portfolio by Internal Risk Grading, and by Year of Origination [Abstract] | ||
2023 | 17,495 | |
2022 | 30,012 | |
2021 | 7,268 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Revolving Loans | 0 | |
Total Loans | 54,775 | 38,530 |
Real Estate [Member] | Construction [Member] | Special Mention [Member] | ||
Loans Held for Investment Portfolio by Internal Risk Grading, and by Year of Origination [Abstract] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Revolving Loans | 0 | |
Total Loans | 0 | 0 |
Real Estate [Member] | Construction [Member] | Substandard [Member] | ||
Loans Held for Investment Portfolio by Internal Risk Grading, and by Year of Origination [Abstract] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Revolving Loans | 0 | |
Total Loans | 0 | 0 |
Commercial - Others [Member] | ||
Loans Held for Investment Portfolio by Internal Risk Grading, and by Year of Origination [Abstract] | ||
2023 | 0 | |
2022 | 8,816 | |
2021 | 282 | |
2020 | 2,904 | |
2019 | 6,550 | |
Prior | 11,597 | |
Revolving Loans | 7,205 | |
Total Loans | 37,354 | 64,841 |
Commercial - Others [Member] | Pass [Member] | ||
Loans Held for Investment Portfolio by Internal Risk Grading, and by Year of Origination [Abstract] | ||
2023 | 0 | |
2022 | 7,611 | |
2021 | 175 | |
2020 | 1,404 | |
2019 | 4,300 | |
Prior | 5,784 | |
Revolving Loans | 6,568 | |
Total Loans | 25,842 | 53,396 |
Commercial - Others [Member] | Watch [Member] | ||
Loans Held for Investment Portfolio by Internal Risk Grading, and by Year of Origination [Abstract] | ||
2023 | 0 | |
2022 | 1,205 | |
2021 | 107 | |
2020 | 1,500 | |
2019 | 2,250 | |
Prior | 5,532 | |
Revolving Loans | 637 | |
Total Loans | 11,231 | 11,157 |
Commercial - Others [Member] | Special Mention [Member] | ||
Loans Held for Investment Portfolio by Internal Risk Grading, and by Year of Origination [Abstract] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Revolving Loans | 0 | |
Total Loans | 0 | 0 |
Commercial - Others [Member] | Substandard [Member] | ||
Loans Held for Investment Portfolio by Internal Risk Grading, and by Year of Origination [Abstract] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 281 | |
Revolving Loans | 0 | |
Total Loans | 281 | 288 |
SBA Loans [Member] | ||
Loans Held for Investment Portfolio by Internal Risk Grading, and by Year of Origination [Abstract] | ||
2023 | 0 | |
2022 | 148 | |
2021 | 2,723 | |
2020 | 538 | |
2019 | 28 | |
Prior | 128 | |
Revolving Loans | 0 | |
Total Loans | 3,565 | 3,601 |
SBA Loans [Member] | Pass [Member] | ||
Loans Held for Investment Portfolio by Internal Risk Grading, and by Year of Origination [Abstract] | ||
2023 | 0 | |
2022 | 148 | |
2021 | 2,723 | |
2020 | 0 | |
2019 | 28 | |
Prior | 128 | |
Revolving Loans | 0 | |
Total Loans | 3,027 | 3,032 |
SBA Loans [Member] | Watch [Member] | ||
Loans Held for Investment Portfolio by Internal Risk Grading, and by Year of Origination [Abstract] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Revolving Loans | 0 | |
Total Loans | 0 | 569 |
SBA Loans [Member] | Special Mention [Member] | ||
Loans Held for Investment Portfolio by Internal Risk Grading, and by Year of Origination [Abstract] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 538 | |
2019 | 0 | |
Prior | 0 | |
Revolving Loans | 0 | |
Total Loans | 538 | 0 |
SBA Loans [Member] | Substandard [Member] | ||
Loans Held for Investment Portfolio by Internal Risk Grading, and by Year of Origination [Abstract] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Revolving Loans | 0 | |
Total Loans | 0 | 0 |
Consumer [Member] | ||
Loans Held for Investment Portfolio by Internal Risk Grading, and by Year of Origination [Abstract] | ||
2023 | 10 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Revolving Loans | 0 | |
Total Loans | 10 | 11 |
Consumer [Member] | Pass [Member] | ||
Loans Held for Investment Portfolio by Internal Risk Grading, and by Year of Origination [Abstract] | ||
2023 | 10 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Revolving Loans | 0 | |
Total Loans | 10 | 11 |
Consumer [Member] | Watch [Member] | ||
Loans Held for Investment Portfolio by Internal Risk Grading, and by Year of Origination [Abstract] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Revolving Loans | 0 | |
Total Loans | 0 | 0 |
Consumer [Member] | Special Mention [Member] | ||
Loans Held for Investment Portfolio by Internal Risk Grading, and by Year of Origination [Abstract] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Revolving Loans | 0 | |
Total Loans | 0 | 0 |
Consumer [Member] | Substandard [Member] | ||
Loans Held for Investment Portfolio by Internal Risk Grading, and by Year of Origination [Abstract] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Revolving Loans | 0 | |
Total Loans | $ 0 | $ 0 |
Loans Receivable Held for Investment, Credit Quality Indicators (Details) - USD ($) $ in Thousands |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | $ 783,348 | $ 773,444 |
Pass [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 681,108 | 685,387 |
Watch [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 78,065 | 65,717 |
Special Mention [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 2,571 | 16,590 |
Substandard [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 21,604 | 5,750 |
Doubtful [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 0 | |
Loss [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 0 | |
Real Estate [Member] | Single Family [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 29,216 | 30,038 |
Real Estate [Member] | Single Family [Member] | Pass [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 28,210 | 29,022 |
Real Estate [Member] | Single Family [Member] | Watch [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 349 | 354 |
Real Estate [Member] | Single Family [Member] | Special Mention [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 258 | 260 |
Real Estate [Member] | Single Family [Member] | Substandard [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 399 | 402 |
Real Estate [Member] | Single Family [Member] | Doubtful [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 0 | |
Real Estate [Member] | Single Family [Member] | Loss [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 0 | |
Real Estate [Member] | Multi-Family [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 511,046 | 503,896 |
Real Estate [Member] | Multi-Family [Member] | Pass [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 487,017 | 479,182 |
Real Estate [Member] | Multi-Family [Member] | Watch [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 7,668 | 9,855 |
Real Estate [Member] | Multi-Family [Member] | Special Mention [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 1,775 | 14,859 |
Real Estate [Member] | Multi-Family [Member] | Substandard [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 14,586 | 0 |
Real Estate [Member] | Multi-Family [Member] | Doubtful [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 0 | |
Real Estate [Member] | Multi-Family [Member] | Loss [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 0 | |
Real Estate [Member] | Commercial Real Estate [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 129,031 | 114,574 |
Real Estate [Member] | Commercial Real Estate [Member] | Pass [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 121,414 | 104,066 |
Real Estate [Member] | Commercial Real Estate [Member] | Watch [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 2,273 | 4,524 |
Real Estate [Member] | Commercial Real Estate [Member] | Special Mention [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 0 | 1,471 |
Real Estate [Member] | Commercial Real Estate [Member] | Substandard [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 5,344 | 4,513 |
Real Estate [Member] | Commercial Real Estate [Member] | Doubtful [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 0 | |
Real Estate [Member] | Commercial Real Estate [Member] | Loss [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 0 | |
Real Estate [Member] | Church [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 13,983 | 15,780 |
Real Estate [Member] | Church [Member] | Pass [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 11,220 | 14,505 |
Real Estate [Member] | Church [Member] | Watch [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 1,769 | 728 |
Real Estate [Member] | Church [Member] | Special Mention [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 0 | 0 |
Real Estate [Member] | Church [Member] | Substandard [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 994 | 547 |
Real Estate [Member] | Church [Member] | Doubtful [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 0 | |
Real Estate [Member] | Church [Member] | Loss [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 0 | |
Real Estate [Member] | Construction [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 59,143 | 40,703 |
Real Estate [Member] | Construction [Member] | Pass [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 4,368 | 2,173 |
Real Estate [Member] | Construction [Member] | Watch [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 54,775 | 38,530 |
Real Estate [Member] | Construction [Member] | Special Mention [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 0 | 0 |
Real Estate [Member] | Construction [Member] | Substandard [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 0 | 0 |
Real Estate [Member] | Construction [Member] | Doubtful [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 0 | |
Real Estate [Member] | Construction [Member] | Loss [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 0 | |
Commercial - Other [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 37,354 | 64,841 |
Commercial - Other [Member] | Pass [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 25,842 | 53,396 |
Commercial - Other [Member] | Watch [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 11,231 | 11,157 |
Commercial - Other [Member] | Special Mention [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 0 | 0 |
Commercial - Other [Member] | Substandard [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 281 | 288 |
Commercial - Other [Member] | Doubtful [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 0 | |
Commercial - Other [Member] | Loss [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 0 | |
SBA Loans [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 3,565 | 3,601 |
SBA Loans [Member] | Pass [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 3,027 | 3,032 |
SBA Loans [Member] | Watch [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 0 | 569 |
SBA Loans [Member] | Special Mention [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 538 | 0 |
SBA Loans [Member] | Substandard [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 0 | 0 |
SBA Loans [Member] | Doubtful [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 0 | |
SBA Loans [Member] | Loss [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 0 | |
Consumer [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 10 | 11 |
Consumer [Member] | Pass [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 10 | 11 |
Consumer [Member] | Watch [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 0 | 0 |
Consumer [Member] | Special Mention [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 0 | 0 |
Consumer [Member] | Substandard [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | $ 0 | 0 |
Consumer [Member] | Doubtful [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 0 | |
Consumer [Member] | Loss [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | $ 0 |
Loans Receivable Held for Investment, Off-Balance Sheet Commitments (Details) - USD ($) $ in Thousands |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Off-Balance Sheet Commitments [Abstract] | ||
Allowance for off-balance sheet commitments | $ 367 | $ 412 |
Goodwill and Core Deposit Intangible, Goodwill and Core Deposit Intangibles (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |
---|---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
Dec. 31, 2022 |
|
Finite-Lived Intangible Assets [Line Items] | |||
Impairment | $ 0 | ||
Changes in Carrying Amount of Goodwill [Roll Forward] | |||
Balance at the beginning of the period | $ 25,858 | ||
Additions | 0 | ||
Change in deferred tax estimate | 0 | ||
Amortization | 0 | ||
Balance at the end of the period | 25,858 | 25,858 | |
Changes in Carrying Amount of Core Deposit Intangibles [Roll Forward] | |||
Balance at the beginning of the period | 2,501 | ||
Amortization | 98 | $ 109 | |
Balance at the end of the period | 2,403 | 2,501 | |
Core Deposit Intangible [Member] | |||
Changes in Carrying Amount of Core Deposit Intangibles [Roll Forward] | |||
Balance at the beginning of the period | 2,501 | ||
Additions | 0 | ||
Change in deferred tax estimate | 0 | ||
Amortization | (98) | ||
Balance at the end of the period | $ 2,403 | $ 2,501 |
Goodwill and Core Deposit Intangible, Components of Carrying Amount of Core Deposit Intangible (Details) - USD ($) $ in Thousands |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Finite-Lived Intangible Assets, Net [Abstract] | ||
Net core deposit intangible | $ 2,403 | $ 2,501 |
Core Deposits [Member] | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Core deposit intangible acquired | 3,329 | |
Less: accumulated amortization | (926) | |
Net core deposit intangible | $ 2,403 | $ 2,501 |
Goodwill and Core Deposit Intangible, Estimated Amortization Expense (Details) - USD ($) $ in Thousands |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Estimated amortization expense [Abstract] | ||
Net core deposit intangible | $ 2,403 | $ 2,501 |
Core Deposit Intangible [Member] | ||
Estimated amortization expense [Abstract] | ||
2023 | 292 | |
2024 | 336 | |
2025 | 315 | |
2026 | 304 | |
2027 | 291 | |
Thereafter | 865 | |
Net core deposit intangible | $ 2,403 | $ 2,501 |
Borrowings, Liabilities Securities Sold under Agreements to Repurchase (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2023 |
Dec. 31, 2022 |
|
Repurchase Agreements [Abstract] | ||
Securities sold under agreements to repurchase | $ 70,941 | $ 63,471 |
Securities collateral pledged | $ 87,600 | $ 64,400 |
Weighted average rate on repurchase agreements | 0.24% | 0.38% |
U.S. Government Agency Securities [Member] | ||
Repurchase Agreements [Abstract] | ||
Securities collateral pledged | $ 26,000 | $ 33,300 |
Mortgage Backed Securities [Member] | ||
Repurchase Agreements [Abstract] | ||
Securities collateral pledged | 22,200 | |
SBA Pools [Member] | ||
Repurchase Agreements [Abstract] | ||
Securities collateral pledged | 5,300 | |
Federal Agency CMO [Member] | ||
Repurchase Agreements [Abstract] | ||
Securities collateral pledged | 273 | |
U.S. Treasuries [Member] | ||
Repurchase Agreements [Abstract] | ||
Securities collateral pledged | $ 33,900 | 19,200 |
Federal Agency Mortgage-backed Securities [Member] | ||
Repurchase Agreements [Abstract] | ||
Securities collateral pledged | $ 11,900 |
Borrowings, Other Borrowings (Details) $ in Thousands |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2023
USD ($)
Note
|
Dec. 31, 2022
USD ($)
|
|
Debt Instrument [Abstract] | ||
Advances from Federal Home Loan Banks | $ 168,810 | $ 128,344 |
Loans receivable | 776,053 | 768,046 |
Notes payable | $ 14,000 | 14,000 |
Number of notes payables | Note | 2 | |
Other Financial Institutions [Member] | ||
Debt Instrument [Abstract] | ||
Lines of credit | $ 10,000 | |
Line of credit maturity period | 30 days | |
FHLB of Atlanta [Member] | ||
Debt Instrument [Abstract] | ||
FHLB advances, additional amount eligible to borrow | $ 157,200 | |
Note A [Member] | ||
Debt Instrument [Abstract] | ||
Debt instrument, maturity date | Dec. 01, 2040 | |
Notes payable | $ 9,900 | |
Interest rate | 5.20% | |
Note B [Member] | ||
Debt Instrument [Abstract] | ||
Debt instrument, maturity date | Dec. 01, 2040 | |
Notes payable | $ 4,100 | |
Interest rate | 0.24% | |
Federal Home Loan Bank Advances [Member] | ||
Debt Instrument [Abstract] | ||
Advances from Federal Home Loan Banks | $ 168,800 | $ 128,300 |
Weighted average interest rate | 4.35% | 3.74% |
Weighted average contractual maturity | 9 months | 13 months |
Federal Home Loan Bank Advances [Member] | Asset Pledged as Collateral [Member] | ||
Debt Instrument [Abstract] | ||
Loans receivable | $ 329,100 | $ 328,100 |
Federal Home Loan Bank Advances [Member] | FHLB of Atlanta [Member] | ||
Debt Instrument [Abstract] | ||
Borrowings approved amount, in terms of percentage on total assets | 25.00% |
Fair Value, Assets Measured on Recurring Basis (Details) - USD ($) $ in Thousands |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Assets Measured on Recurring Basis [Abstract] | ||
Securities available-for-sale | $ 329,026 | $ 328,749 |
Federal Agency Mortgage-backed [Member] | ||
Assets Measured on Recurring Basis [Abstract] | ||
Securities available-for-sale | 73,017 | 74,169 |
Federal Agency CMO [Member] | ||
Assets Measured on Recurring Basis [Abstract] | ||
Securities available-for-sale | 25,749 | 26,100 |
Federal Agency Debt [Member] | ||
Assets Measured on Recurring Basis [Abstract] | ||
Securities available-for-sale | 52,030 | 51,425 |
Municipal Bonds [Member] | ||
Assets Measured on Recurring Basis [Abstract] | ||
Securities available-for-sale | 4,299 | 4,197 |
U.S. Treasuries [Member] | ||
Assets Measured on Recurring Basis [Abstract] | ||
Securities available-for-sale | 162,096 | 160,589 |
SBA Pools [Member] | ||
Assets Measured on Recurring Basis [Abstract] | ||
Securities available-for-sale | 11,835 | 12,269 |
Recurring Basis [Member] | Federal Agency Mortgage-backed [Member] | ||
Assets Measured on Recurring Basis [Abstract] | ||
Securities available-for-sale | 73,017 | 74,169 |
Recurring Basis [Member] | Federal Agency CMO [Member] | ||
Assets Measured on Recurring Basis [Abstract] | ||
Securities available-for-sale | 25,749 | 26,100 |
Recurring Basis [Member] | Federal Agency Debt [Member] | ||
Assets Measured on Recurring Basis [Abstract] | ||
Securities available-for-sale | 52,030 | 51,425 |
Recurring Basis [Member] | Municipal Bonds [Member] | ||
Assets Measured on Recurring Basis [Abstract] | ||
Securities available-for-sale | 4,299 | 4,197 |
Recurring Basis [Member] | U.S. Treasuries [Member] | ||
Assets Measured on Recurring Basis [Abstract] | ||
Securities available-for-sale | 162,096 | 160,589 |
Recurring Basis [Member] | SBA Pools [Member] | ||
Assets Measured on Recurring Basis [Abstract] | ||
Securities available-for-sale | 11,835 | 12,269 |
Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Federal Agency Mortgage-backed [Member] | ||
Assets Measured on Recurring Basis [Abstract] | ||
Securities available-for-sale | 0 | 0 |
Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Federal Agency CMO [Member] | ||
Assets Measured on Recurring Basis [Abstract] | ||
Securities available-for-sale | 0 | 0 |
Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Federal Agency Debt [Member] | ||
Assets Measured on Recurring Basis [Abstract] | ||
Securities available-for-sale | 0 | 0 |
Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Municipal Bonds [Member] | ||
Assets Measured on Recurring Basis [Abstract] | ||
Securities available-for-sale | 0 | 0 |
Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | U.S. Treasuries [Member] | ||
Assets Measured on Recurring Basis [Abstract] | ||
Securities available-for-sale | 162,096 | 160,589 |
Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | SBA Pools [Member] | ||
Assets Measured on Recurring Basis [Abstract] | ||
Securities available-for-sale | 0 | 0 |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Federal Agency Mortgage-backed [Member] | ||
Assets Measured on Recurring Basis [Abstract] | ||
Securities available-for-sale | 73,017 | 74,169 |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Federal Agency CMO [Member] | ||
Assets Measured on Recurring Basis [Abstract] | ||
Securities available-for-sale | 25,749 | 26,100 |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Federal Agency Debt [Member] | ||
Assets Measured on Recurring Basis [Abstract] | ||
Securities available-for-sale | 52,030 | 51,425 |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Municipal Bonds [Member] | ||
Assets Measured on Recurring Basis [Abstract] | ||
Securities available-for-sale | 4,299 | 4,197 |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | U.S. Treasuries [Member] | ||
Assets Measured on Recurring Basis [Abstract] | ||
Securities available-for-sale | 0 | 0 |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | SBA Pools [Member] | ||
Assets Measured on Recurring Basis [Abstract] | ||
Securities available-for-sale | 11,835 | 12,269 |
Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Federal Agency Mortgage-backed [Member] | ||
Assets Measured on Recurring Basis [Abstract] | ||
Securities available-for-sale | 0 | 0 |
Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Federal Agency CMO [Member] | ||
Assets Measured on Recurring Basis [Abstract] | ||
Securities available-for-sale | 0 | 0 |
Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Federal Agency Debt [Member] | ||
Assets Measured on Recurring Basis [Abstract] | ||
Securities available-for-sale | 0 | 0 |
Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Municipal Bonds [Member] | ||
Assets Measured on Recurring Basis [Abstract] | ||
Securities available-for-sale | 0 | 0 |
Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | U.S. Treasuries [Member] | ||
Assets Measured on Recurring Basis [Abstract] | ||
Securities available-for-sale | 0 | 0 |
Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | SBA Pools [Member] | ||
Assets Measured on Recurring Basis [Abstract] | ||
Securities available-for-sale | $ 0 | $ 0 |
Fair Value, Assets Measured on Non-Recurring Basis (Details) - Non-Recurring Basis [Member] - Impaired Loans Carried at Fair Value [Member] - USD ($) $ in Thousands |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Fair Value, Net Asset (Liability) [Abstract] | ||
Assets, fair value | $ 0 | $ 0 |
Liabilities fair value | $ 0 | $ 0 |
Fair Value, Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Financial Assets [Abstract] | ||
Securities available-for-sale | $ 329,026 | $ 328,749 |
Carrying Value [Member] | ||
Financial Assets [Abstract] | ||
Cash and cash equivalents | 29,648 | 16,105 |
Securities available-for-sale | 329,026 | 328,749 |
Loans receivable held for investment | 776,053 | 768,046 |
Accrued interest receivables | 4,219 | 3,973 |
Bank owned life insurance | 3,242 | 3,233 |
Financial Liabilities [Abstract] | ||
Deposits | 657,542 | 686,916 |
FHLB advances | 168,810 | 128,344 |
Securities sold under agreements to repurchase | 70,941 | 63,471 |
Note payable | 14,000 | 14,000 |
Accrued interest payable | 368 | 453 |
Fair Value [Member] | ||
Financial Assets [Abstract] | ||
Cash and cash equivalents | 29,648 | 16,105 |
Securities available-for-sale | 329,026 | 328,749 |
Loans receivable held for investment | 636,286 | 641,088 |
Accrued interest receivables | 4,219 | 3,973 |
Bank owned life insurance | 3,242 | 3,233 |
Financial Liabilities [Abstract] | ||
Deposits | 596,064 | 673,615 |
FHLB advances | 167,175 | 126,328 |
Securities sold under agreements to repurchase | 67,423 | 60,017 |
Note payable | 14,000 | 14,000 |
Accrued interest payable | 368 | 453 |
Fair Value [Member] | Level 1 [Member] | ||
Financial Assets [Abstract] | ||
Cash and cash equivalents | 29,648 | 16,105 |
Securities available-for-sale | 162,096 | 160,589 |
Loans receivable held for investment | 0 | 0 |
Accrued interest receivables | 612 | 442 |
Bank owned life insurance | 3,242 | 3,233 |
Financial Liabilities [Abstract] | ||
Deposits | 0 | 0 |
FHLB advances | 0 | 0 |
Securities sold under agreements to repurchase | 0 | 0 |
Note payable | 0 | 0 |
Accrued interest payable | 0 | 0 |
Fair Value [Member] | Level 2 [Member] | ||
Financial Assets [Abstract] | ||
Cash and cash equivalents | 0 | 0 |
Securities available-for-sale | 166,930 | 168,160 |
Loans receivable held for investment | 0 | 0 |
Accrued interest receivables | 635 | 793 |
Bank owned life insurance | 0 | 0 |
Financial Liabilities [Abstract] | ||
Deposits | 596,064 | 673,615 |
FHLB advances | 167,175 | 126,328 |
Securities sold under agreements to repurchase | 67,423 | 60,017 |
Note payable | 0 | 0 |
Accrued interest payable | 368 | 453 |
Fair Value [Member] | Level 3 [Member] | ||
Financial Assets [Abstract] | ||
Cash and cash equivalents | 0 | 0 |
Securities available-for-sale | 0 | 0 |
Loans receivable held for investment | 636,286 | 641,088 |
Accrued interest receivables | 2,972 | 2,738 |
Bank owned life insurance | 0 | 0 |
Financial Liabilities [Abstract] | ||
Deposits | 0 | 0 |
FHLB advances | 0 | 0 |
Securities sold under agreements to repurchase | 0 | 0 |
Note payable | 14,000 | 14,000 |
Accrued interest payable | $ 0 | $ 0 |
Stock-based Compensation, Long-Term Incentive Plan (Details) - 2018 LTIP [Member] - USD ($) $ in Thousands |
1 Months Ended | 3 Months Ended | ||||
---|---|---|---|---|---|---|
Feb. 28, 2023 |
Mar. 31, 2022 |
Feb. 28, 2022 |
Mar. 31, 2023 |
Mar. 31, 2022 |
Dec. 31, 2018 |
|
Stock-based Compensation [Abstract] | ||||||
Contractual term of option awards | 10 years | |||||
Maximum number of shares that can be awarded (in shares) | 1,293,109 | |||||
Aggregate number of shares awarded to date under the plan (in shares) | 968,572 | |||||
Shares available for awards (in shares) | 324,537 | |||||
Directors [Member] | Restricted Stock [Member] | ||||||
Stock-based Compensation [Abstract] | ||||||
Restricted stock awards issued (in shares) | 73,840 | 47,187 | ||||
Restricted stock awards vested (in shares) | 73,840 | 47,187 | ||||
Stock based compensation expense | $ 96 | $ 84 | ||||
Officers and Employees [Member] | Restricted Stock [Member] | ||||||
Stock-based Compensation [Abstract] | ||||||
Restricted stock awards issued (in shares) | 495,262 | |||||
Restricted stock awards forfeited (in shares) | 74,736 | |||||
Stock based compensation expense | $ 38 | $ 15 | ||||
Officers and Employees [Member] | Restricted Stock [Member] | Minimum [Member] | ||||||
Stock-based Compensation [Abstract] | ||||||
Award vesting period | 36 months | |||||
Officers and Employees [Member] | Restricted Stock [Member] | Maximum [Member] | ||||||
Stock-based Compensation [Abstract] | ||||||
Award vesting period | 60 months |
Stock-based Compensation, Stock Option Activity (Details) - Stock Options [Member] - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Number Outstanding [Roll Forward] | ||
Outstanding at beginning of period (in shares) | 250,000 | |
Granted during period (in shares) | 0 | 0 |
Exercised during period (in shares) | 0 | |
Forfeited or expired during period (in shares) | 0 | |
Outstanding at end of period (in shares) | 250,000 | |
Exercisable at end of period (in shares) | 250,000 | |
Weighted Average Exercise Price [Abstract] | ||
Outstanding at beginning of period (in dollars per share) | $ 1.62 | |
Granted during period (in dollars per share) | 0 | |
Exercised during period (in dollars per share) | 0 | |
Forfeited or expired during period (in dollars per share) | 0 | |
Outstanding at end of period (in dollars per share) | 1.62 | |
Exercisable at end of period (in dollars per share) | $ 1.62 | |
Share-based Compensation Arrangement by Share-based Payment Award, Additional General Disclosures [Abstract] | ||
Stock based compensation expense | $ 0 | $ 0 |
Stock-based Compensation, Options Outstanding and Exercisable (Details) - Stock Options [Member] $ / shares in Units, $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2023
USD ($)
$ / shares
shares
| |
Options, Outstanding [Abstract] | |
Number Outstanding (in shares) | shares | 250,000 |
Weighted Average Remaining Contractual Life | 2 years 10 months 17 days |
Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 1.62 |
Aggregate Intrinsic Value | $ | $ 0 |
Options, Exercisable [Abstract] | |
Number Outstanding ( in shares) | shares | 250,000 |
Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 1.62 |
Aggregate Intrinsic Value | $ | $ 0 |
ESOP Plan (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 12 Months Ended | |
---|---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
Dec. 31, 2022 |
|
ESOP Plan [Abstract] | |||
Number of common stock purchased by ESOP (in shares) | 2,065,342 | 466,955 | |
Purchase price of common stock (in dollars per share) | $ 1.21 | $ 1.07 | |
Total cost of shares purchased by ESOP | $ 2,500 | $ 500 | |
Line of credit to ESOP | $ 2,500 | $ 5,000 | |
Term of ESOP loan | 20 years | ||
Compensation expense related to ESOP | $ 12 | $ 18 | |
Shares Held by ESOP [Abstract] | |||
Allocated to participants (in shares) | 1,057,504 | 1,057,504 | |
Committed to be released (in shares) | 19,784 | 9,892 | |
Suspense shares (in shares) | 3,003,938 | 948,488 | |
Total ESOP shares (in shares) | 4,081,226 | 2,015,884 | |
Fair value of unearned shares | $ 3,545 | $ 1,015 | |
Unearned ESOP shares | $ 3,963 | $ 1,265 |
Stockholders' Equity and Regulatory Matters (Details) $ / shares in Units, $ in Thousands |
3 Months Ended | |||
---|---|---|---|---|
Jun. 07, 2022
USD ($)
shares
|
Mar. 31, 2022
USD ($)
$ / shares
shares
|
Mar. 31, 2023
USD ($)
shares
|
Dec. 31, 2022
USD ($)
shares
|
|
Actual [Abstract] | ||||
Community Bank Leverage Ratio, Amount | $ 181,562 | $ 181,304 | ||
Community Bank Leverage Ratio, Ratio | 0.1569 | 0.1575 | ||
Minimum Required To Be Well Capitalized Under Prompt Corrective Action Provisions [Abstract] | ||||
Community Bank Leverage Ratio, Amount | $ 104,174 | $ 103,591 | ||
Community Bank Leverage Ratio, Ratio | 0.09 | 0.09 | ||
Non-Cumulative Perpetual Preferred Stock, Series C [Member] | ||||
Stockholders' Equity [Abstract] | ||||
Preferred stock, shares issued (in shares) | shares | 150,000 | 150,000 | 150,000 | |
Capital investment | $ 150,000 | $ 150,000 | $ 150,000 | |
Preferred initial dividend rate for first two years after issuance | 0.00% | |||
Preferred stock, period for initial dividend rate | 2 years | |||
Floor dividend rate | 0.50% | |||
Ceiling dividend rate | 2.00% | |||
Cumulative Redeemable Perpetual Preferred stock, Series A [Member] | ||||
Stockholders' Equity [Abstract] | ||||
Preferred stock, aggregate liquidation value | $ 3,000 | |||
Common Class A [Member] | ||||
Stockholders' Equity [Abstract] | ||||
Common stock, shares issued upon conversion from preferred stock (in shares) | shares | 1,193,317 | |||
Exchange price (in dollars per share) | $ / shares | $ 2.51 |
Income Taxes (Details) $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2023
USD ($)
| |
Valuation Allowance [Abstract] | |
Cumulative losses lookback period | 2 years |
Deferred tax assets, valuation allowance | $ 369 |
Concentration of Credit Risk (Details) - Customer Concentration Risk [Member] |
3 Months Ended |
---|---|
Mar. 31, 2023
Customer
| |
Deposits [Member] | |
Concentration Percentage [Abstract] | |
Number of significant customers | 1 |
Deposits [Member] | One Customer [Member] | |
Concentration Percentage [Abstract] | |
Percentage of concentration risk | 10.00% |
Securities Sold under Agreements to Repurchase [Member] | |
Concentration Percentage [Abstract] | |
Number of significant customers | 1 |
Securities Sold under Agreements to Repurchase [Member] | One Customer [Member] | |
Concentration Percentage [Abstract] | |
Percentage of concentration risk | 75.00% |
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