Exhibit 99.1 News Release FOR IMMEDIATE RELEASE Broadway Financial Corporation Announces Results of Operations for First Quarter 2025 LOS ANGELES, CA – (BUSINESS WIRE) – April 28, 2025 – Broadway Financial Corporation ("Broadway", "we", or the "Company") (NASDAQ: BYFC), parent company of City First Bank, National Association (the "Bank", and collectively, with the Company, "City First Broadway"), reported consolidated net loss before preferred dividends of $451 thousand, or ($0.05) per diluted share, for th ...

LOS ANGELES, April 28, 2025 /PRNewswire/ -- Broadway Financial Corporation ("Broadway", "we", or the "Company") (NASDAQ: BYFC), parent company of City First Bank, National Association (the "Bank", and collectively, with the Company, "City First Broadway"), reported consolidated net loss before preferred dividends of $451 thousand, or ($0.05) per diluted share, for the first quarter of 2025, compared to consolidated net loss of $164 thousand, or ($0.02) per diluted share, for the first quarter of 2024. Net l ...

Stock Split and Share Repurchase - On October 31, 2023, the Company executed a 1-for-8 reverse stock split, reducing the number of outstanding shares accordingly[17] - The Company repurchased 244,771 shares of Class A Common Stock at a price of $7.2760 per share, representing just under 4.0% of total voting shares prior to the purchase[18] Loan Portfolio Composition - As of December 31, 2024, the net loan portfolio totaled $968.9 million, accounting for 74.3% of total assets[24] - The loan portfolio composition includes 64.94% multi-family loans, 16.01% commercial real estate loans, and 2.42% single-family loans as of December 31, 2024[28] - More than 84% of the loans in the portfolio have adjustable-rate features, reducing exposure to interest rate risk[25] - The total loans held for investment as of December 31, 2024, were $968.861 million, reflecting a significant increase from previous years[28] Loan Originations and Repayments - Total loans originated in 2024 amounted to $157.7 million, a decrease of 3.5% from $162.1 million in 2023[56] - Multi-family loan originations were $80.9 million in 2024, up 2.6% from $78.9 million in 2023[56] - Commercial real estate loans originated increased significantly to $50.8 million in 2024 from $28.3 million in 2023, representing an 80% increase[56] - Principal repayments for 2024 totaled $69.1 million, an increase of 46.5% compared to $47.2 million in 2023[56] Non-Performing Assets and Credit Losses - Non-performing assets (NPAs) stood at $264,000 as of December 31, 2024, compared to no NPAs in 2023[60] - Total criticized loans increased to $150.3 million at December 31, 2024, from $130.0 million at December 31, 2023, marking a 15.5% rise[65] - Substandard loans rose to $59.6 million in 2024, up from $21.7 million in 2023, indicating a significant increase of 174%[65] - The Company reported an Allowance for Credit Losses (ACL) of $8.1 million, or 0.83% of gross loans held for investment, as of December 31, 2024, unchanged from the previous year[75] Securities and Investments - The Company’s securities portfolio totaled $203.9 million, representing 15.6% of total assets as of December 31, 2024[84] - As of December 31, 2024, total securities amounted to $219.7 million, an increase from $203.9 million in 2023, reflecting a growth of approximately 7.5%[89] - No ACL was required for available-for-sale investment securities as of December 31, 2024, due to declines in fair value being related to interest rates rather than credit[87] Deposits and Funding - The company’s total deposits reached $589.6 million in 2024, up from $577.3 million in 2023, marking a growth of 2%[98] - The weighted average yield on total deposits for 2024 was 2.24%, up from 1.30% in 2023, indicating a significant increase in funding costs[98] - The company had $145.8 million in deposits through the CDARS program as of December 31, 2024, compared to $114.8 million in 2023, representing a growth of 27%[93] Regulatory and Compliance - The Company is regulated by the Federal Reserve System, and its deposits are insured by the FDIC[19] - The Company is subject to restrictions on capital distributions, including dividends, if it falls within any undercapitalized categories[141] - The Company must notify the OCC at least 30 days prior to declaring any capital distribution, allowing the OCC to object if deemed inadvisable[142] Economic and Market Conditions - The macroeconomic environment poses significant challenges, with inflation impacting business customers through loss of purchasing power and increased costs[150] - The Federal Reserve raised interest rates seven times in 2022 and four times in 2023, increasing interest rate risk for the Company[151] - A downturn in the real estate market could impair the company's loan portfolio, leading to increased loan delinquencies and defaults, which would likely cause the company to suffer losses[154] Competition and Market Position - The Bank faces significant competition in its market areas from larger financial institutions, including mortgage banking companies and commercial banks[105] - The company faces strong competition in the Washington, D.C. and Los Angeles metropolitan areas from various financial institutions, which may adversely affect its financial condition and results of operations[153] Operational Risks - Systems failures and cybersecurity breaches could have a material adverse effect on the company's operations and financial condition[171] - The financial services industry is experiencing rapid technological changes, which may lead to operational challenges and increased costs for the company[173] - The company has implemented a layered cybersecurity approach to manage risks, although threats remain high due to evolving attack methods[184]

Core Points - Broadway Financial Corporation announced the appointment of Mary Hentges to its board of directors, effective March 5, 2025, increasing the board size to ten directors [1] - Ms. Hentges will serve on multiple committees including the Audit Committee, Risk and Compliance Committee, and Internal Asset Review Committee [1] - The appointment was recommended by the Corporate Governance Committee after a thorough review of candidates [2] Company Overview - Broadway Financial Corporation operates through its wholly-owned banking subsidiary, City First Bank, which focuses on serving low-to-moderate income communities in Southern California and Washington, D.C. [4] - City First Bank provides various commercial real estate loan products and services aimed at supporting affordable housing, small businesses, and nonprofit community facilities [5] Ms. Hentges' Background - Ms. Hentges has extensive experience in financial roles, including serving as CFO for companies such as PayPal, CBS Interactive, and Yapstone [3] - She has been an advisor for Jiko Group, Inc. since 2019 and has held interim CFO positions at Noom, Inc. and ShotSpotter [3] - Ms. Hentges holds a B.S. in Accounting from Arizona State University and currently serves on the boards of several organizations [3]

Financial Performance - Net income attributable to Broadway for Q4 2024 was $1.3 million, a decrease of 50% from $2.6 million in Q4 2023[1] - Non-interest income for Q4 2024 totaled $560 thousand, a significant decrease from $4.5 million in Q4 2023, primarily due to the absence of a $3.7 million grant received in the prior year[12] - Total non-interest income for the year ended December 31, 2024, was $1,554 thousand, down from $5,357 thousand in 2023, a decline of about 71.0%[39] - The company reported a comprehensive loss of $1,395 thousand for the three months ended December 31, 2024, compared to a comprehensive income of $8,408 thousand for the same period in 2023[39] - Earnings per common share-basic decreased to $0.06 for the three months ended December 31, 2024, compared to $0.31 for the same period in 2023, a decline of approximately 80.6%[39] Interest Income and Margin - Net interest income for Q4 2024 increased by $850 thousand, or 11.9%, to $8.0 million compared to $7.1 million in Q4 2023[2] - Net interest income for the year ended December 31, 2024, was $62,209 thousand, compared to $47,228 thousand in 2023, reflecting a year-over-year increase of 31.69%[43] - The average yield on loans receivable was 5.17% in Q4 2024, up from 4.76% in Q4 2023, indicating improved loan profitability[41] - The net interest rate margin improved to 2.42% in Q4 2024, compared to 2.40% in Q4 2023, indicating a slight enhancement in profitability[41] - The net interest rate spread decreased to 1.55% in Q4 2024 from 1.67% in Q4 2023, reflecting a narrowing of the margin between interest income and interest expense[41] Assets and Liabilities - Total assets decreased by $71.7 million at December 31, 2024, primarily due to a decrease in securities available-for-sale[17] - Total assets decreased to $1,303.7 million at December 31, 2024, from $1,375.4 million at December 31, 2023[31] - Total liabilities decreased from $1,093,307 thousand on December 31, 2023, to $1,018,335 thousand on December 31, 2024, a reduction of about 6.9%[36] - Total borrowings decreased by $134.7 million to $262.1 million at December 31, 2024, primarily due to the payoff of a $100.0 million loan under the Federal Reserve's Bank Term Funding Program[21] Loans and Credit Losses - Total gross loans receivable increased by $89.2 million, or 10.0%, to $977.0 million at December 31, 2024, from $887.8 million at December 31, 2023[5] - The allowance for credit losses increased to $8.1 million as of December 31, 2024, compared to $7.3 million as of December 31, 2023[11] - The Company recorded a recovery of credit losses of $489 thousand in Q4 2024, compared to a provision for credit losses of $125 thousand in Q4 2023[10] - The allowance for credit losses increased to $8,103 thousand as of December 31, 2024, from $7,348 thousand as of December 31, 2023, reflecting a rise of approximately 10.3%[36] Deposits and Equity - Deposits increased by $62.8 million to $745.4 million at December 31, 2024, from $682.6 million at December 31, 2023, with a notable increase in Insured Cash Sweep deposits by $61.2 million[20] - Stockholders' equity rose to $285.2 million, or 21.9% of total assets, at December 31, 2024, compared to $281.9 million, or 20.5% of total assets, at December 31, 2023[23] - Stockholders' equity increased to $285,775 thousand in Q4 2024, compared to $278,339 thousand in Q4 2023, showing a growth of 2.61%[41] Performance Ratios - Return on average assets for the twelve months ended December 31, 2024, was 0.14%, down from 0.37% in 2023[32] - Return on average equity for the twelve months ended December 31, 2024, was 0.69%, compared to 1.62% in 2023[32] - Non-accrual loans amounted to $264, representing a non-performing assets ratio of 0.02% of total assets[31] - The Bank's uninsured deposits represented 32% of total deposits as of December 31, 2024, down from 37% as of December 31, 2023[20]

Core Insights - Broadway Financial Corporation reported a net income of $1.3 million for Q4 2024, down from $2.6 million in Q4 2023, reflecting a decrease of $1.3 million [1][3] - The company experienced a significant decline in net income attributable to common stockholders, which was $550 thousand in Q4 2024 compared to $2.6 million in Q4 2023 [1][3] - The diluted earnings per common share decreased to $0.06 in Q4 2024 from $0.31 in Q4 2023, influenced by a grant income of $3.7 million received in the previous year [1][3] Financial Performance - Net interest income for Q4 2024 increased by $850 thousand, or 11.9%, to $8.0 million compared to $7.1 million in Q4 2023, driven by higher interest income [2][7] - Total interest income rose by $3.1 million, or 24.9%, in Q4 2024 compared to Q4 2023, with a yield on average interest-earning assets increasing by 55 basis points to 4.78% [8][10] - For the full year 2024, net interest income before provision for credit losses totaled $31.8 million, an increase of $2.3 million, or 7.8%, from $29.5 million in 2023 [10] Non-Interest Income and Expenses - Non-interest income for Q4 2024 was $560 thousand, a significant drop from $4.5 million in Q4 2023, primarily due to the absence of the prior year's grant [13] - Total non-interest expense decreased to $7.2 million in Q4 2024 from $7.7 million in Q4 2023, mainly due to reduced professional services expenses [14] - For the year ended December 31, 2024, non-interest expense totaled $29.9 million, an increase of $2.5 million, or 9.3%, from $27.4 million in 2023 [15] Balance Sheet Highlights - Total assets decreased by $71.7 million to $1.3 billion as of December 31, 2024, primarily due to declines in securities available-for-sale and cash equivalents [19] - Loans held for investment increased by $88.4 million to $968.9 million at December 31, 2024, driven by loan originations of $157.7 million [20] - Deposits rose by $62.8 million to $745.4 million at December 31, 2024, with significant growth in Insured Cash Sweep and Certificate of Deposit Registry Service deposits [22] Credit Quality and Allowance for Credit Losses - The allowance for credit losses increased to $8.1 million as of December 31, 2024, compared to $7.3 million a year earlier, reflecting growth in the loan portfolio [12] - The company recorded a recovery of credit losses of $489 thousand in Q4 2024, contrasting with a provision for credit losses of $125 thousand in Q4 2023 [11] Income Taxes - The income tax expense for Q4 2024 was $516 thousand, down from $1.2 million in Q4 2023, reflecting a decrease in pre-tax income [16] - For the year ended December 31, 2024, income tax expense was $814 thousand, compared to $2.0 million in 2023, due to a decrease in pretax earnings [17]

Company Leadership Changes - Ruth McCloud, Chief Operating Officer of Broadway Financial Corporation, will retire on March 31, 2025, after 10 years of service, contributing significantly to the Bank's growth and success [1][2] - John A. Allen has been appointed as Chief Banking Officer of City First Bank, effective January 13, 2025, in a newly created position to oversee key operational areas [3][4] Leadership Transition - Brian Argrett, President and CEO of Broadway, expressed gratitude for Ruth McCloud's contributions and emphasized the importance of a seamless transition of her responsibilities [2] - John A. Allen brings over 30 years of experience in the financial services industry, having held leadership roles at notable institutions such as Wells Fargo, Santander Bank, and Capital One Bank [4] Company Overview - Broadway Financial Corporation operates through its subsidiary, City First Bank, which focuses on serving low-to-moderate income communities in Southern California and the Washington, D.C. market [5][6] - City First Bank offers various commercial real estate loan products and services aimed at supporting investments in affordable housing and small businesses [6]

Total Assets and Liabilities - Total assets decreased by $2.3 million at September 30, 2024 compared to December 31, 2023, primarily due to decreases in securities available-for-sale of $78.5 million, cash and cash equivalents of $8.1 million, other assets of $1.3 million, and deferred tax assets of $1.1 million, partially offset by growth in net loans of $86.3 million[100] - Total liabilities decreased by $6.8 million to $1.1 billion at September 30, 2024, driven by reductions in notes payable and deposits[136] - Total assets decreased by $2.3 million as of September 30, 2024, primarily due to a $78.5 million decrease in securities available-for-sale, partially offset by an $86.3 million increase in net loans[120] Loans and Loan Portfolio - Loans held for investment, net of the ACL, increased by $86.3 million to $966.8 million at September 30, 2024, compared to $880.5 million at December 31, 2023, driven by loan originations of $136.2 million during the first nine months of 2024[101] - Loans receivable grew to $963,849 thousand with an average yield of 5.28% for the three months ended September 30, 2024, up from $822,031 thousand with an average yield of 4.58% for the same period in 2023[110] - Loans receivable held for investment increased by $86.3 million to $966.8 million as of September 30, 2024, driven by $136.2 million in loan originations, partially offset by $49.9 million in payoffs and repayments[123] - Multi-family loans in their initial fixed period totaled $592.4 million, representing 60.8% of the loan portfolio as of September 30, 2024[125] Deposits - Deposits decreased by $10.4 million to $672.2 million at September 30, 2024, from $682.6 million at December 31, 2023, with uninsured deposits representing 34% of total deposits, down from 37% at the end of 2023[102] - Total deposits increased to $570,512 thousand with an average cost of 2.24% for the three months ended September 30, 2024, compared to $572,104 thousand with an average cost of 1.49% for the same period in 2023[110] - Deposits decreased by $10.4 million to $672.2 million at September 30, 2024, with uninsured deposits representing 34% of total deposits, down from 37% at December 31, 2023[137] - Two customers accounted for approximately 12% of the Bank's deposits as of September 30, 2024[155] Net Income and Profitability - Net income attributable to Broadway Financial Corporation increased by $431 thousand to $522 thousand for the three months ended September 30, 2024, compared to $91 thousand for the same period in 2023[104] - Net income attributable to Broadway decreased to $627 thousand for the nine months ended September 30, 2024, compared to $1.9 million for the same period in 2023, primarily due to a $3.0 million increase in non-interest expense[105] Net Interest Income and Margin - Net interest income before provision for credit losses increased by $1.5 million, or 23.0%, to $8.3 million for the third quarter of 2024, driven by higher interest income of $4.2 million, partially offset by a $2.7 million increase in interest expense[107] - Net interest margin increased to 2.49% for the third quarter of 2024 from 2.33% for the third quarter of 2023, reflecting higher rates earned on interest-earning assets[107] - Net interest income before provision for credit losses for the nine months ended September 30, 2024 totaled $23.8 million, an increase of $1.5 million, or 6.5%, from the same period in 2023, driven by higher interest income of $11.8 million[108] - Net interest margin decreased to 2.38% for the nine months ended September 30, 2024, compared to 2.60% for the same period in 2023[108] - Net interest rate margin improved to 2.49% for the three months ended September 30, 2024, up from 2.33% for the same period in 2023[110] Interest-Earning Assets and Costs - Total interest-earning assets increased to $1,333,086 thousand with an average yield of 4.82% for the three months ended September 30, 2024, compared to $1,165,064 thousand with an average yield of 4.09% for the same period in 2023[110] - The average cost of funds increased to 3.14% for the nine months ended September 30, 2024, from 2.00% for the same period in 2023, due to higher average balances of borrowings and higher rates paid on borrowings and deposits[108] Credit Losses and Allowance - The company recorded a provision for credit losses of $399 thousand for the three months ended September 30, 2024, compared to a recovery of $2 thousand for the same period in 2023[113] - The allowance for credit losses increased to $8.5 million as of September 30, 2024, compared to $7.3 million as of December 31, 2023, due to growth in the loan portfolio[114] - The company recorded a provision for credit losses of $1.2 million for the nine months ended September 30, 2024, compared to $808 thousand for the same period in 2023[113] - The ACL (Allowance for Credit Losses) was $8.5 million, or 0.87% of gross loans held for investment at September 30, 2024, compared to $7.3 million, or 0.83% at December 31, 2023[131] - Collateral dependent loans totaled $36 thousand at September 30, 2024, down from $6.4 million at December 31, 2023, with an ACL of $0 and $112 thousand respectively[132] - Non-accrual loans were $291 thousand at September 30, 2024, while loan delinquencies for 30-90 days increased to $1.7 million from $780 thousand at December 31, 2023[133] Non-Interest Income and Expense - Non-interest income for the third quarter of 2024 totaled $416 thousand, compared to $331 thousand for the third quarter of 2023[114] - Total non-interest expense increased by $613 thousand, or 8.8%, to $7.6 million for the third quarter of 2024, primarily due to higher professional and accounting fees[116] - Non-interest income for the first nine months of 2024 totaled $995 thousand, compared to $880 thousand for the same period in the prior year[115] - Non-interest expense for the first nine months of 2024 increased by $3.0 million (15.4%) to $22.7 million, driven by higher compensation and benefits ($1.4 million) and professional services ($1.2 million) expenses[117] Income Tax - Income tax expense for Q3 2024 was $209 thousand, up from $39 thousand in Q3 2023, with an effective tax rate of 27.76% compared to 31.20%[118] - Income tax expense for the nine months ended September 30, 2024, decreased to $298 thousand from $806 thousand in the same period in 2023, with an effective tax rate of 32.04% compared to 29.49%[119] Securities and Investments - Securities available-for-sale decreased by $78.5 million to $238.5 million as of September 30, 2024, mainly due to maturities and principal paydowns[120] - Securities sold under repurchase agreements totaled $89.8 million at an average rate of 3.68% as of September 30, 2024, up from $73.5 million at 2.60% at December 31, 2023[141] Borrowings and Liquidity - The Company had outstanding FHLB advances of $208.6 million at September 30, 2024, with a weighted interest rate of 4.35% and a weighted average maturity of two months[140] - The Company borrowed $100.0 million from the Federal Reserve under the BTFP, with an interest rate of 4.84% and a maturity date of December 29, 2024[143] - The Bank had the ability to borrow an additional $133.9 million from the FHLB of Atlanta as of September 30, 2024[152] - Liquid assets at September 30, 2024 included $97.1 million in cash and cash equivalents and $35.0 million in unpledged securities available-for-sale[153] Commitments and Funding - The Bank had commitments to fund $923 thousand in approved but unfunded loans, $3.7 million in unfunded line of credit loans, and $47.5 million in unfunded construction loans as of September 30, 2024[154] Stockholders' Equity and Capital - Stockholders' equity was $286.4 million, or 20.9% of total assets, at September 30, 2024, compared to $281.9 million, or 20.5%, at December 31, 2023[145] - The Company issued 94,413 shares of restricted stock to officers and employees under the Amended and Restated LTIP on March 26, 2024[148] - Common book value increased to $136,392 thousand as of September 30, 2024, up from $131,903 thousand at December 31, 2023[151] - Tangible book value rose to $108,675 thousand as of September 30, 2024, compared to $103,934 thousand at December 31, 2023[151] - The Bank exceeded all capital adequacy requirements and was considered "well capitalized" as of September 30, 2024[159] Cash Flows - Consolidated net cash outflows from investing activities were $2.7 million for the nine months ended September 30, 2024, compared to $61.5 million for the same period in 2023[157] - Consolidated net cash outflows from financing activities were $9.6 million for the nine months ended September 30, 2024, compared to net cash inflows of $52.9 million for the same period in 2023[158] Internal Controls and Remediation - The Company identified material weaknesses in internal control over financial reporting and has implemented a remediation plan, including hiring additional senior personnel and engaging a third-party firm to review general ledger account reconciliations[164][166] - The company's disclosure controls and procedures were not effective as of September 30, 2024, due to material weaknesses in internal control over financial reporting[162] - A material weakness was identified due to insufficient personnel with appropriate knowledge and experience in internal control matters, leading to failures in designing and implementing certain internal controls[164] - The company did not effectively design and implement controls over consolidation, financial statement reporting, and monthly close processes, resulting in unidentified or stale reconciling items in general ledger account reconciliations[165] - The company hired additional senior personnel with relevant experience and training to address the material weaknesses and engaged a third-party firm to review general ledger account reconciliations[166] - Remediation efforts are ongoing, and the material weaknesses cannot be considered remediated until the controls operate effectively for a sufficient period and are tested by management[167] - No other changes in internal control over financial reporting occurred during the three months ended September 30, 2024, except for the remediation activities discussed[169]

Financial Performance - Net income attributable to Broadway for Q3 2024 was $522 thousand, an increase of $431 thousand from $91 thousand in Q3 2023[1] - Net loss attributable to common stockholders was $228 thousand in Q3 2024 after deducting preferred dividends of $750 thousand, compared to net income of $91 thousand in Q3 2023[1] - Non-interest income for Q3 2024 totaled $416 thousand, an increase from $331 thousand in Q3 2023, and $995 thousand for the first nine months of 2024, compared to $880 thousand for the same period in 2023[16] - The net income for the quarter was $544,000, a substantial increase from $86,000 in the prior year[33] Interest Income and Margin - Net interest income for Q3 2024 increased by $1.5 million, or 23.0%, to $8.3 million compared to $6.8 million in Q3 2023[2] - Total interest income rose by $4.2 million, or 35.5%, in Q3 2024 compared to Q3 2023[4] - Net interest margin increased to 2.49% in Q3 2024 from 2.33% in Q3 2023[7] - Net interest income after provision for credit losses was $7,931,000, compared to $6,775,000 in the previous year, representing an increase of 17%[33] Loan and Asset Growth - Total gross loans receivable increased by $87.5 million, or 9.9%, to $975.3 million as of September 30, 2024[4] - Loans held for investment increased by $86.3 million to $966.8 million at September 30, 2024, driven by loan originations of $136.2 million during the first nine months of 2024[21] - Loans receivable held for investment increased to $975,315,000 from $887,805,000, reflecting a growth of approximately 9.8%[30] - Loan originations for the quarter reached $39,195,000, significantly higher than $14,016,000 in the same quarter last year, marking a growth of 179%[33] Credit Losses and Allowance - The Company recorded a provision for credit losses of $399 thousand for Q3 2024, compared to a recovery of $2 thousand in Q3 2023, and $1.2 million for the nine months ended September 30, 2024, up from $808 thousand in the same period last year[14] - The allowance for credit losses increased to $8.5 million as of September 30, 2024, compared to $7.3 million as of December 31, 2023, due to growth in the loan portfolio[15] - The allowance for credit losses rose to $8,527,000, up from $7,348,000, indicating a proactive approach to managing credit risk[30] Expenses and Costs - Non-interest expense increased by $3.0 million in the first nine months of 2024 compared to the same period in 2023, primarily due to higher compensation and benefits[3] - Total non-interest expense was $7.6 million for Q3 2024, an increase of 8.8% from $7.0 million in Q3 2023, primarily due to professional and accounting fees related to remediation efforts[17] Asset and Equity Position - Total assets decreased by $2.3 million to $1.382 billion at September 30, 2024, reflecting a decrease in securities available-for-sale of $78.5 million[20] - Stockholders' equity was $286.4 million, or 20.9% of total assets, at September 30, 2024, up from $281.9 million, or 20.5% of total assets, at December 31, 2023[25] - The equity to total assets ratio improved to 20.86% from 20.50%, indicating a stronger capital position[30] Tax and Profitability - The effective tax rate was 27.76% for Q3 2024, down from 31.20% in Q3 2023, reflecting an increase in pre-tax income[19] - The return on average assets was 0.16%, up from 0.03% year-over-year, reflecting improved profitability[33] Non-Performing Loans - The company reported only one non-performing loan as of September 30, 2024, representing less than $300 thousand, or 0.03% of total loans[5] - Non-performing assets totaled $291,000, with a non-accrual loans ratio of 0.03% to total loans[31]

Financial Position - Total assets decreased by $8.1 million to $1.4 billion at June 30, 2024, primarily due to decreases in securities available-for-sale of $55.5 million and cash and cash equivalents of $15.4 million[81]. - Total liabilities decreased by $8.5 million to $1.1 billion at June 30, 2024, primarily due to a $14.0 million decrease in notes payable[106]. - Stockholders' equity was $282.3 million, or 20.6% of total assets, at June 30, 2024, compared to $281.9 million, or 20.5%, at December 31, 2023[112]. - The Company had liquid assets of $89.8 million in cash and cash equivalents and $85.0 million in securities available-for-sale as of June 30, 2024, compared to $105.2 million and $173.3 million respectively at December 31, 2023[114]. Loans and Credit - Loans held for investment, net of the Allowance for Credit Losses (ACL), increased by $58.3 million to $938.7 million at June 30, 2024, driven by loan originations of $97.0 million[81]. - Multi-family loans accounted for $585.9 million or 62.0% of the loan portfolio as of June 30, 2024, with many having adjustable-rate features based on the Secured Overnight Financing Rate[99]. - The allowance for credit losses (ACL) increased to $8.1 million as of June 30, 2024, from $7.3 million as of December 31, 2023, due to growth in the loan portfolio[92]. - Non-accrual loans amounted to $328 thousand at June 30, 2024, with loan delinquencies for 30 days or more decreasing to $710 thousand[104]. Income and Expenses - For the three months ended June 30, 2024, net income was $269 thousand, an increase from $243 thousand for the same period in 2023, attributed to a $650 thousand increase in net interest income[83]. - For the six months ended June 30, 2024, net income decreased to $105 thousand from $1.8 million for the same period in 2023, primarily due to a $2.4 million increase in non-interest expense[84]. - Total non-interest expense for Q2 2024 was $7.3 million, an increase of $859 thousand or 13.4% from $6.4 million in Q2 2023, primarily due to a $735 thousand rise in compensation and benefits[92]. - For the first six months of 2024, non-interest expense totaled $15.1 million, representing a $2.4 million increase or 19.1% from $12.7 million in the same period last year[93]. Interest Income and Margin - Net interest income before provision for credit losses for the second quarter of 2024 totaled $7.9 million, an increase of 8.9% from $7.3 million in the second quarter of 2023[86]. - The net interest margin decreased to 2.41% for the second quarter of 2024 from 2.52% for the second quarter of 2023, due to an increase in the average cost of funds[86]. - For the six months ended June 30, 2024, net interest income before provision for credit losses totaled $15.4 million, a decrease of 0.6% from $15.5 million for the same period in 2023[87]. - The average cost of funds increased to 3.11% for the first six months of 2024 from 1.76% for the same period in 2023, contributing to the decrease in net interest income[87]. Deposits - Deposits increased by $4.7 million to $687.4 million at June 30, 2024, with a notable increase of $19.4 million in Insured Cash Sweep (ICS) deposits[82]. - The total deposits for the three months ended June 30, 2024, were $569,689 thousand, with an average cost of 2.18%[88]. Tax and Regulatory Compliance - The effective tax rate for Q2 2024 was 35.01%, compared to 27.43% in Q2 2023, primarily due to the vesting of stock awards[94]. - The Company is currently under no prohibition from paying dividends, but is subject to restrictions based on regulatory guidelines[116]. - The Bank exceeded all capital adequacy requirements as of June 30, 2024, qualifying as "well capitalized"[119]. Internal Controls and Remediation - The Company has identified material weaknesses in internal control over financial reporting, impacting the reliability of financial statements[123]. - A remediation plan is in place, including hiring additional personnel and engaging a third-party firm to improve internal controls[124]. - Management is actively engaged in planning and implementing remediation efforts, requiring additional time to test the effectiveness of controls[125]. - No other changes in internal control over financial reporting occurred during the three months ended June 30, 2024, that materially affected the Company's internal control[127].