Broadway Financial (BYFC) - 2024 Q1 - Quarterly Report

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$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]