Financial Performance - Total consolidated net earnings for the second quarter of 2024 were $269 thousand, or $0.03 per diluted share, compared to $243 thousand, or $0.03 per diluted share for the same period in 2023[8]. - For the first six months of 2024, consolidated net earnings were $105 thousand, or $0.01 per diluted share, compared to $1.8 million, or $0.20 per diluted share for the same period in 2023[11]. - Net income for 2024 was $271 million, compared to $246 million in 2023, marking a 10.2% increase[57]. Interest Income and Loans - Total interest income increased by $3.8 million, or 33.1%, in the second quarter of 2024 compared to the second quarter of 2023[9]. - Interest income for 2024 was $15,488 million, up from $11,640 million in 2023, representing a 32% increase[57]. - Net interest income for the second quarter of 2024 increased by $650 thousand, or 8.9%, to $7.9 million, compared to $7.3 million for the second quarter of 2023[35]. - Net interest income after provision for credit losses increased to $7,424 million in 2024 from $6,500 million in 2023, a growth of 14.2%[57]. - Loans held for investment increased by $58.3 million to $938.7 million at June 30, 2024, compared to $880.5 million at December 31, 2023, driven by loan originations of $97.0 million[27]. - Loan originations decreased to $25,510 million in 2024 from $63,983 million in 2023, a decline of 60%[57]. Expenses - Non-interest expense for the second quarter of 2024 was $7.3 million, an increase of $859 thousand, or 13.4%, from $6.4 million in the second quarter of 2023[1]. - For the first six months of 2024, non-interest expense totaled $15.1 million, an increase of $2.4 million, or 19.1%, from $12.7 million in the same period last year[24]. - Non-interest expense rose to $7,280 million in 2024 compared to $6,421 million in 2023, reflecting a 13.4% increase[57]. Assets and Deposits - Total gross loans receivable increased by $59.0 million, or 6.6%, to $946.8 million at June 30, 2024, compared to $887.8 million at December 31, 2023[9]. - Total deposits increased by $4.7 million during the first six months of 2024 to $687.4 million, compared to $682.6 million at December 31, 2023[9]. - Deposits increased by $4.7 million to $687.4 million at June 30, 2024, from $682.6 million at December 31, 2023, with a notable increase in Insured Cash Sweep deposits[51]. - Total assets decreased by $8.1 million at June 30, 2024, reflecting a decrease in securities available-for-sale of $55.5 million[50]. Credit Losses and Allowance - The allowance for credit losses increased to $8.1 million as of June 30, 2024, compared to $7.3 million as of December 31, 2023[4]. - The company reported a decrease in provisions for credit losses to $494 thousand for the second quarter of 2024, compared to $768 thousand for the same period in 2023[22]. Tax and Equity - The effective tax rate for the second quarter of 2024 was 35.01%, up from 27.43% in the same quarter of 2023, primarily due to the vesting of stock awards[25]. - Stockholders' equity was $282.3 million, or 20.7% of total assets, as of June 30, 2024, compared to $281.9 million, or 20.5% of total assets, at December 31, 2023[58]. - Book value per share decreased to $14.49 at June 30, 2024, down from $14.65 at December 31, 2023[58]. Returns - Return on average assets improved to 0.08% in 2024 from 0.06% in 2023[57]. - Return on average equity increased to 0.38% in 2024 from 0.24% in 2023[57]. Strategic Focus - The company is focused on expanding its community development financial services, particularly in affordable housing and small business support[59].

Financial Performance - In Q1 2024, net interest income decreased by $750 thousand, or 9.1%, to $7.5 million compared to Q1 2023, primarily due to higher interest expenses [3]. - The company reported a consolidated net loss of $164 thousand, or ($0.02) per diluted share, for Q1 2024, compared to net earnings of $1.6 thousand, or $0.17 per diluted share, for Q1 2023 [6]. - Total non-interest expense increased by $1.6 million, or 25.8%, to $7.8 million in Q1 2024 compared to Q1 2023, driven by higher professional services and compensation expenses [17]. - Non-interest income for Q1 2024 totaled $306 thousand, compared to $289 thousand for Q1 2023 [16]. - The effective tax rate decreased to 23.75% in Q1 2024 from 29.70% in Q1 2023, with an income tax benefit of $57 thousand in Q1 2024 [19]. Interest and Loans - Total interest income increased by $3.6 million, or 32.4%, compared to Q1 2023, marking the twelfth consecutive quarter of growth since the merger [4]. - The net interest margin decreased to 2.27% for Q1 2024 from 2.96% for Q1 2023, due to an increase in the average cost of funds to 3.02% [10]. - The yield on average interest-earning assets increased by 46 basis points to 4.45% for Q1 2024, driven by growth in the yield on average loan balances [4]. - Loans held for investment increased by $46.0 million to $926.5 million at March 31, 2024, primarily due to loan originations of $71.5 million [21]. - Total gross loans receivable increased by $46.2 million, or 5.2%, to $934.8 million at March 31, 2024, with a growth of 43.7% since the U.S. Treasury's $150 million investment in June 2022 [4]. Deposits and Assets - Total deposits increased by $12.9 million during Q1 2024 to $695.5 million, representing a growth of $38 million, or 5.8%, since Q1 2023 [4]. - Deposits rose by $12.9 million to $695.5 million at March 31, 2024, with increases in liquid deposits and Insured Cash Sweep deposits [23]. - Total assets decreased by $4.9 million to $1.37 billion at March 31, 2024, reflecting declines in cash and securities, partially offset by growth in net loans [20]. - Stockholders' equity was $281.3 million, or 20.5% of total assets, at March 31, 2024, down from $281.9 million at December 31, 2023 [25]. Credit and Risk Management - The allowance for credit losses increased to $7.6 million as of March 31, 2024, compared to $7.3 million as of December 31, 2023 [15]. - The company experienced substantial non-recurring costs of almost $700 thousand related to an investigation of internal control weaknesses [9]. - Uninsured deposits represented 38% of total deposits as of March 31, 2024, compared to 37% at December 31, 2023 [23]. Operational Strategy - The increase in compensation and benefits expense was mainly due to the addition of full-time employees to expand operational capabilities [18]. - The company is focused on expanding its operational capabilities to grow its balance sheet and fulfill lending objectives [18]. - Total borrowings decreased by $15.8 million to $380.9 million at March 31, 2024, primarily due to the payoff of two notes payable [24].

Financial Reporting and Controls - The company identified material weaknesses in risk assessment, control activities, and monitoring activities related to financial reporting[238] - Remediation efforts are ongoing to address material weaknesses, including hiring additional senior personnel and engaging a third-party firm to review general ledger account reconciliations[244] - The company's disclosure controls and procedures are designed to provide reasonable assurance of timely and accurate financial reporting, but there is no assurance they will operate effectively under all circumstances[236] Capital and Regulatory Compliance - The company and the bank met all capital adequacy requirements and the bank was "well capitalized" under regulatory frameworks as of March 31, 2024[148] Deferred Tax Assets and Liabilities - The company maintained a $449 thousand valuation allowance on its deferred tax assets due to limitations triggered by private placements completed on April 6, 2021[150] - The company's deferred tax assets and liabilities are determined using the liability method, with a valuation allowance established when it is more likely than not that some or all deferred tax assets will not be realized[251] Customer Concentration - Two customers accounted for approximately 12% of the bank's deposits as of March 31, 2024[151] - One customer accounted for 86% of the outstanding balance of securities sold under agreements to repurchase as of March 31, 2024[151] ESOP and Share Valuation - The value of unearned ESOP shares was $4.4 million at March 31, 2024, compared to $4.5 million at December 31, 2023[146] Credit Loss Estimation - The company's ACL model uses the weighted-average remaining maturity (WARM) method to estimate expected credit losses, incorporating historical loss experience and qualitative factors[142]

Net Interest Income Net interest income before provision for credit losses for the nine months ended September 30, 2023, totaled $22.3 million, representing a decrease of $1.5 million, or 6.3%, from net interest income before loan loss provision of $23.8 million for the nine months ended September 30, 2022. The decrease resulted from higher interest expense, primarily due to an increase in the cost of borrowings and deposits, and to a lesser extent, from an increase in average borrowings, which was needed t ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 (Mark One) ☒ 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 Commission file number 001-39043 Delaware 95-4547287 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) (323) 634-1700 (Registrant's telephone number, including area code) Indicate by check mark whether the regi ...

| --- | --- | --- | --- | --- | --- | |------------------------------------------------------------------|------------------------|-------|----------------|-------------------|--------------------| | | | | Goodwill \n(In | Core \nthousands) | Deposit Intangible | | | | $ | 25,858 | $ | 2,501 | | | | | – | | – | | | | | – | | – | | | | | – | | (98) | | | | $ | 25,858 | $ | 2,403 | | | | | | | | | consisted of the following at March 31, 2023 (in | intangible thousands): | | | | | | | | | | $ | 3,329 | | | | | ...

The macroeconomic environment could pose significant challenges for the Company and could adversely affect our financial condition and ● reviews of the quality, mix and size of the overall loan portfolio; Negative public opinion regarding us or the failure to maintain our reputation in the communities we serve could adversely affect our business and prevent us from growing our business. Our reputation within the communities we serve is critical to our success. We believe we have built strong personal and pr ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington D.C. 20549 Non-accelerated filer ☒ Smaller reporting company ☒ Emerging growth company ☐ FORM 10-Q (Mark One) ☒ QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 ☐ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For transition period from__________ to___________ Commission file number 001-39043 BROADWAY FINANCIAL CORPORATION (Exact n ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington D.C. 20549 Title of each class: Trading Symbol(s) Name of each exchange on which registered: Common Stock, par value $0.01 per share (including attached preferred stock purchase rights) BYFC Nasdaq Capital Market FORM 10-Q (Mark One) ☒ QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 ☐ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 ☐ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For transition period from__________ to___________ Commission file number 001-39043 BROADWAY FINANCIAL CORPORATION (Exact name of registrant as specified in its charter) Delaware 95-4547287 (State or other ...