Earnings Per Share of Common Stock

3 Months Ended

Mar. 31, 2024

Earnings Per Share of Common Stock [Abstract]

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. 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. Unvested restricted awards are considered outstanding for this calculation.

The following table shows how the Company computed basic and diluted earnings per share of common stock for the periods indicated:

	Three Months Ended March 31,
	2024			2023
	(Dollars in thousands, except per share data)
Net (loss) income attributable to Broadway Financial Corporation	$	(164	)	$	1,573
Less net income attributable to participating securities		4			7
(Loss) income available to common stockholders	$	(168	)	$	1,566

Weighted average common shares outstanding for basic earnings per common share⁽¹⁾		8,229,774			8,930,270
Add: dilutive effects of unvested restricted stock awards⁽¹⁾		182,998			40,378
Weighted average common shares outstanding for diluted earnings per common share⁽¹⁾		8,412,772			8,970,648

(Loss) earnings per common share - basic⁽¹⁾	$	(0.02	)	$	0.18
(Loss) earnings per common share - diluted⁽¹⁾	$	(0.02	)	$	0.17

(1) Retroactively adjusted, as applicable, for the 1-for-8 reverse stock split effective November 1, 2023 - see Note 1