v3.25.4

Restatement of Previously Issued Consolidated Financial Statements (Tables) | 3 Months Ended
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Mar. 31, 2025
Restatement of Previously Issued Consolidated Financial Statements [Abstract] |
Impact of Restatement on Financial Statements | BROADWAY FINANCIAL CORPORATION AND SUBSIDIARY Consolidated Statements of Financial Condition (In thousands, except share and per share amounts)
|  | March 31, 2025 (Unaudited) |
|  | As Previously Reported |  |  | Adjustments |  |  | As Restated |
Assets: |  |  |  |  |  |  |  |  |
Cash and due from banks |  | $ | 2,040 |  |  | $ |  |  |  | $ | 2,040 |
Interest-bearing deposits in other banks |  |  | 13,754 |  |  |  |  |  |  |  | 13,754 |
Cash and cash equivalents |  |  | 15,794 |  |  |  |  |  |  |  | 15,794 |
Securities available-for-sale, at fair value |  |  | 185,938 |  |  |  |  |  |  |  | 185,938 |
Loans receivable held for investment, net of allowance |  |  | 971,231 |  |  |  | 20,356 |  |  |  | 991,587 |
Accrued interest receivable |  |  | 5,624 |  |  |  |  |  |  |  | 5,624 |
Federal Home Loan Bank (“FHLB”) stock |  |  | 4,616 |  |  |  |  |  |  |  | 4,616 |
Federal Reserve Bank (“FRB”) stock |  |  | 3,543 |  |  |  |  |  |  |  | 3,543 |
Office properties and equipment, net |  |  | 8,812 |  |  |  |  |  |  |  | 8,812 |
Bank owned life insurance |  |  | 3,332 |  |  |  |  |  |  |  | 3,332 |
Deferred tax assets, net |  |  | 8,103 |  |  |  | 1,189 |  |  |  | 9,292 |
Core deposit intangible, net |  |  | 1,696 |  |  |  |  |  |  |  | 1,696 |
Goodwill |  |  | 25,858 |  |  |  |  |  |  |  | 25,858 |
Other assets |  |  | 3,472 |  |  |  | (788 | ) |  |  | 2,684 |
Total assets |  | $ | 1,238,019 |  |  | $ | 20,757 |  |  | $ | 1,258,776 |
Liabilities and equity |  |  |  |  |  |  |  |  |  |  |  |
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |
Deposits |  | $ | 776,543 |  |  | $ |  |  |  | $ | 776,543 |
Securities sold under agreements to repurchase |  |  | 80,778 |  |  |  |  |  |  |  | 80,778 |
FHLB borrowings |  |  | 78,000 |  |  |  |  |  |  |  | 78,000 |
Secured borrowings |  |  | 9,415 |  |  |  | 21,841 |  |  |  | 31,256 |
Accrued expenses and other liabilities |  |  | 8,486 |  |  |  | (69 | ) |  |  | 8,417 |
Total liabilities |  |  | 953,222 |  |  |  | 21,772 |  |  |  | 974,994 |
Non-Cumulative Redeemable Perpetual Preferred stock, Series C |  |  | 150,000 |  |  |  |  |  |  |  | 150,000 |
Common stock, Class A |  |  | 64 |  |  |  |  |  |  |  | 64 |
Common stock, Class B |  |  | 14 |  |  |  |  |  |  |  | 14 |
Common stock, Class C |  |  | 17 |  |  |  |  |  |  |  | 17 |
Additional paid-in capital |  |  | 143,169 |  |  |  |  |  |  |  | 143,169 |
Retained earnings |  |  | 10,303 |  |  |  | (1,015 | ) |  |  | 9,288 |
Unearned Employee Stock Ownership Plan (“ESOP”) shares |  |  | (4,152 | ) |  |  |  |  |  |  | (4,152 | )
Accumulated other comprehensive loss, net of tax |  |  | (9,508 | ) |  |  |  |  |  |  | (9,508 | )
Treasury stock-at cost |  |  | (5,326 | ) |  |  |  |  |  |  | (5,326 | )
Total Broadway Financial Corporation and Subsidiary equity |  |  | 284,581 |  |  |  | (1,015 | ) |  |  | 283,566 |
Non-controlling interest |  |  | 216 |  |  |  |  |  |  |  | 216 |
Total liabilities and equity |  | $ | 1,238,019 |  |  | $ | 20,757 |  |  | $ | 1,258,776 |
BROADWAY FINANCIAL CORPORATION AND SUBSIDIARY Consolidated Statements of Operations and Comprehensive Income (Loss) (In thousands, except per share amounts)
|  | Three Months Ended March 31, 2025 (Unaudited) |
|  | As Previously Reported |  |  | Adjustments |  |  | As Restated |
Interest income: |  |  |  |  |  |  |  |  |
Interest and fees on loans receivable |  | $ | 12,690 |  |  | $ | 427 |  |  | $ | 13,117 |
Interest on available-for-sale securities |  |  | 1,208 |  |  |  |  |  |  |  | 1,208 |
Other interest income |  |  | 476 |  |  |  |  |  |  |  | 476 |
Total interest income |  |  | 14,374 |  |  |  | 427 |  |  |  | 14,801 |
Interest expense: |  |  |  |  |  |  |  |  |  |  |  |
Interest on deposits |  |  | 4,199 |  |  |  |  |  |  |  | 4,199 |
Interest on borrowings |  |  | 2,130 |  |  |  | 427 |  |  |  | 2,557 |
Total interest expense |  |  | 6,329 |  |  |  | 427 |  |  |  | 6,756 |
Net interest income |  |  | 8,045 |  |  |  | – |  |  |  | 8,045 |
Provision for credit losses |  |  | 689 |  |  |  | 1,225 |  |  |  | 1,914 |
Net interest income after provision for credit losses |  |  | 7,356 |  |  |  | (1,225 | ) |  |  | 6,131 |
Non-interest income: |  |  |  |  |  |  |  |  |  |  |  |
Service charges |  |  | 43 |  |  |  |  |  |  |  | 43 |
Grants |  |  | 25 |  |  |  |  |  |  |  | 25 |
Other |  |  | 220 |  |  |  |  |  |  |  | 220 |
Total non-interest income |  |  | 288 |  |  |  |  |  |  |  | 288 |
Non-interest expense: |  |  |  |  |  |  |  |  |  |  |  |
Compensation and benefits |  |  | 5,284 |  |  |  |  |  |  |  | 5,284 |
Occupancy expense |  |  | 540 |  |  |  |  |  |  |  | 540 |
Information services |  |  | 706 |  |  |  |  |  |  |  | 706 |
Professional services |  |  | 700 |  |  |  |  |  |  |  | 700 |
Advertising and promotional expense |  |  | 46 |  |  |  |  |  |  |  | 46 |
Supervisory costs |  |  | 193 |  |  |  |  |  |  |  | 193 |
Corporate insurance |  |  | 67 |  |  |  |  |  |  |  | 67 |
Amortization of core deposit intangible |  |  | 79 |  |  |  |  |  |  |  | 79 |
Operational loss |  |  | 1,943 |  |  |  |  |  |  |  | 1,943 |
Other |  |  | 639 |  |  |  |  |  |  |  | 639 |
Total non-interest expense |  |  | 10,197 |  |  |  |  |  |  |  | 10,197 |
Loss before income taxes |  |  | (2,553 | ) |  |  | (1,225 | ) |  |  | (3,778 | )
Income tax benefit |  |  | (692 | ) |  |  | (394 | ) |  |  | (1,086 | )
Net loss |  | $ | (1,861 | ) |  | $ | (831 | ) |  | $ | (2,692 | )
Less: Net loss attributable to non-controlling interest |  |  | (3 | ) |  |  |  |  |  |  | (3 | )
Net loss attributable to Broadway Financial Corporation |  | $ | (1,858 | ) |  | $ | (831 | ) |  | $ | (2,689 | )
Less: Preferred stock dividends |  |  | 750 |  |  |  |  |  |  |  | 750 |
Net loss attributable to common stockholders |  | $ | (2,608 | ) |  | $ | (831 | ) |  | $ | (3,439 | )
Other comprehensive income (loss), net of tax: |  |  |  |  |  |  |  |  |  |  |  |
Unrealized gains (losses) on securities available-for-sale arising during the period |  | $ | 2,416 |  |  | $ |  |  |  | $ | 2,416 |
Income tax expense (benefit) |  |  | 701 |  |  |  |  |  |  |  | 701 |
Other comprehensive income (loss), net of tax |  |  | 1,715 |  |  |  |  |  |  |  | 1,715 |
Comprehensive loss |  | $ | (893 | ) |  | $ | (831 | ) |  | $ | (1,724 | )
Loss per common share-basic |  | $ | (0.30 | ) |  | $ | (0.11 | ) |  | $ | (0.39 | )
Loss per common share-diluted |  | $ | (0.30 | ) |  | $ | (0.11 | ) |  | $ | (0.39 | )
BROADWAY FINANCIAL CORPORATION AND SUBSIDIARY Consolidated Statements of Cash Flows (In thousands)
|  | Three Months Ended March 31, 2025 (Unaudited) |  |  | Three Months Ended March 31, 2024 (Unaudited) |
|  | As Previously Reported |  |  | Adjustments |  |  | As Restated |  |  | As Previously Reported |  |  | Adjustments |  |  | As Restated |
Cash flows from operating activities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net loss |  | $ | (1,861 | ) |  | $ | (831 | ) |  | $ | (2,692 | ) |  | $ | (183 | ) |  | $ | 10 |  |  | $ | (173 | )
Adjustments to reconcile net loss to net cash used in operating activities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Provision for credit losses |  |  | 689 |  |  |  | 1,225 |  |  |  | 1,914 |  |  |  | 260 |  |  |  | (13 | ) |  |  | 247 |
Depreciation |  |  | 102 |  |  |  |  |  |  |  | 102 |  |  |  | 164 |  |  |  |  |  |  |  | 164 |
Net change of deferred loan origination costs |  |  | 114 |  |  |  |  |  |  |  | 114 |  |  |  | 137 |  |  |  |  |  |  |  | 137 |
Net accretion of premiums and discounts on available-for-sale securities |  |  | (57 | ) |  |  |  |  |  |  | (57 | ) |  |  | (253 | ) |  |  |  |  |  |  | (253 | )
Accretion of purchase accounting marks on loans |  |  | (103 | ) |  |  |  |  |  |  | (103 | ) |  |  | (32 | ) |  |  |  |  |  |  | (32 | )
Amortization of core deposit intangible |  |  | 79 |  |  |  |  |  |  |  | 79 |  |  |  | 84 |  |  |  |  |  |  |  | 84 |
Director compensation expense |  |  | 168 |  |  |  |  |  |  |  | 168 |  |  |  | – |  |  |  |  |  |  |  | – |
Accretion of premium on FHLB advances |  |  | – |  |  |  |  |  |  |  | 0 |  |  |  | (4 | ) |  |  |  |  |  |  | (4 | )
Stock-based compensation expense |  |  | 99 |  |  |  |  |  |  |  | 99 |  |  |  | 77 |  |  |  |  |  |  |  | 77 |
ESOP compensation expense |  |  | 50 |  |  |  |  |  |  |  | 50 |  |  |  | 47 |  |  |  |  |  |  |  | 47 |
Earnings on bank owned life insurance |  |  | (11 | ) |  |  |  |  |  |  | (11 | ) |  |  | (11 | ) |  |  |  |  |  |  | (11 | )
Change in assets and liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net change in deferred taxes |  |  | – |  |  |  | (1,113 | ) |  |  | (1,113 | ) |  |  | (57 | ) |  |  | 3 |  |  |  | (54 | )
Net change in accrued interest receivable |  |  | (623 | ) |  |  |  |  |  |  | (623 | ) |  |  | (700 | ) |  |  |  |  |  |  | (700 | )
Net change in other assets |  |  | (686 | ) |  |  | 788 |  |  |  | 102 |  |  |  | (9,857 | ) |  |  |  |  |  |  | (9,857 | )
Net change in accrued expenses and other liabilities |  |  | (2,308 | ) |  |  | (69 | ) |  |  | (2,377 | ) |  |  | (1,336 | ) |  |  |  |  |  |  | (1,336 | )
Net cash used in operating activities |  |  | (4,348 | ) |  |  | – |  |  |  | (4,348 | ) |  |  | (11,664 | ) |  |  | – |  |  |  | (11,664 | )
Cash flows from investing activities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net change in loans receivable held for investment |  |  | (3,070 | ) |  |  | 9,515 |  |  |  | 6,445 |  |  |  | (46,405 | ) |  |  | 299 |  |  |  | (46,106 | )
Principal payments on available-for-sale securities |  |  | 20,396 |  |  |  |  |  |  |  | 20,396 |  |  |  | 23,157 |  |  |  |  |  |  |  | 23,157 |
Purchase of FHLB stock |  |  | (2,684 | ) |  |  |  |  |  |  | (2,684 | ) |  |  | (136 | ) |  |  |  |  |  |  | (136 | )
Proceeds from redemption of FHLB stock |  |  | 7,705 |  |  |  |  |  |  |  | 7,705 |  |  |  | – |  |  |  |  |  |  |  | – |
Purchase of office properties and equipment |  |  | (15 | ) |  |  |  |  |  |  | (15 | ) |  |  | (55 | ) |  |  |  |  |  |  | (55 | )
Net cash provided by (used in) investing activities |  |  | 22,332 |  |  |  | 9,515 |  |  |  | 31,847 |  |  |  | (23,439 | ) |  |  | 299 |  |  |  | (23,140 | )
Cash flows from financing activities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net change in deposits |  |  | 31,144 |  |  |  |  |  |  |  | 31,144 |  |  |  | 12,859 |  |  |  |  |  |  |  | 12,859 |
Net change in securities sold under agreements to repurchase |  |  | 14,168 |  |  |  |  |  |  |  | 14,168 |  |  |  | (1,794 | ) |  |  |  |  |  |  | (1,794 | )
Repayment of notes payable |  |  | – |  |  |  |  |  |  |  | – |  |  |  | (14,000 | ) |  |  |  |  |  |  | (14,000 | )
Cash dividends paid - preferred |  |  | (750 | ) |  |  |  |  |  |  | (750 | ) |  |  | – |  |  |  |  |  |  |  | – |
Proceeds from secured borrowings |  |  | 9,415 |  |  |  | (9,415 | ) |  |  | – |  |  |  | – |  |  |  | 1,816 |  |  |  | 1,816 |
Repayments of secured borrowings |  |  | – |  |  |  | (100 | ) |  |  | (100 | ) |  |  | – |  |  |  | (2,115 | ) |  |  | (2,115 | )
Proceeds from FHLB advances |  |  | 176,500 |  |  |  |  |  |  |  | 176,500 |  |  |  | – |  |  |  |  |  |  |  | – |
Repayments of FHLB advances |  |  | (294,032 | ) |  |  |  |  |  |  | (294,032 | ) |  |  | (35 | ) |  |  |  |  |  |  | (35 | )
Net cash used in financing activities |  |  | (63,555 | ) |  |  | (9,515 | ) |  |  | (73,070 | ) |  |  | (2,970 | ) |  |  | (299 | ) |  |  | (3,269 | )
Net change in cash and cash equivalents |  |  | (45,571 | ) |  |  |  |  |  |  | (45,571 | ) |  |  | (38,073 | ) |  |  |  |  |  |  | (38,073 | )
Cash and cash equivalents at beginning of the period |  |  | 61,365 |  |  |  |  |  |  |  | 61,365 |  |  |  | 105,195 |  |  |  |  |  |  |  | 105,195 |
Cash and cash equivalents at end of the period |  | $ | 15,794 |  |  | $ | – |  |  | $ | 15,794 |  |  | $ | 67,122 |  |  | $ | – |  |  | $ | 67,122 |
Supplemental disclosures of cash flow information: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash paid for interest |  | $ | 5,975 |  |  | $ | 427 |  |  | $ | 6,402 |  |  | $ | 5,913 |  |  | $ |  |  |  | $ | 5,913 |
Cash paid for income taxes |  |  | – |  |  |  |  |  |  |  | – |  |  |  | 48 |  |  |  |  |  |  |  | 48 |
BROADWAY FINANCIAL CORPORATION AND SUBSIDIARY Consolidated Statements of Changes in Equity (Unaudited)
|  | Three Months Ended March 31, 2025 and 2024 |
|  | Preferred Stock Non- Voting |  |  | Common Stock Voting |  |  | Common Stock Non- Voting |  |  | Additional Paid-in Capital |  |  | Accumulated Other Comprehensive Loss |  |  | Retained Earnings (As Restated) |  |  | Unearned ESOP Shares |  |  | Treasury Stock |  |  | Non- Controlling Interest |  |  | Total Equity (As Restated) |
|  | (In thousands) |
Balance at December 31, 2024 (As Restated) |  | $ | 150,000 |  |  | $ | 63 |  |  | $ | 31 |  |  | $ | 142,902 |  |  | $ | (11,223 | ) |  | $ | 12,727 |  |  | $ | (4,201 | ) |  | $ | (5,326 | ) |  | $ | 219 |  |  | $ | 285,192 |
Net loss (As Restated) |  |  | – |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | (2,689 | ) |  |  | – |  |  |  | – |  |  |  | (3 | ) |  |  | (2,692 | )
Release of unearned ESOP shares |  |  | – |  |  |  | – |  |  |  | – |  |  |  | 1 |  |  |  | – |  |  |  | – |  |  |  | 49 |  |  |  | – |  |  |  | – |  |  |  | 50 |
Stock-based compensation expense |  |  | – |  |  |  | 1 |  |  |  | – |  |  |  | 98 |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | 99 |
Director stock compensation expense |  |  | – |  |  |  | – |  |  |  | – |  |  |  | 168 |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | 168 |
Dividends declared and paid - preferred |  |  | – |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | (750 | ) |  |  | – |  |  |  | – |  |  |  | – |  |  |  | (750 | )
Other comprehensive income, net of tax |  |  | – |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | 1,715 |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | 1,715 |
Balance at March 31, 2025 |  | $ | 150,000 |  |  | $ | 64 |  |  | $ | 31 |  |  | $ | 143,169 |  |  | $ | (9,508 | ) |  | $ | 9,288 |  |  | $ | (4,152 | ) |  | $ | (5,326 | ) |  | $ | 216 |  |  | $ | 283,782 |
Balance at December 31, 2023 (As Restated) |  | $ | 150,000 |  |  | $ | 62 |  |  | $ | 31 |  |  | $ | 142,601 |  |  | $ | (13,525 | ) |  | $ | 12,365 |  |  | $ | (4,492 | ) |  | $ | (5,326 | ) |  | $ | 194 |  |  | $ | 281,910 |
Net loss (As Restated) |  |  | – |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | (154 | ) |  |  | – |  |  |  | – |  |  |  | (19 | ) |  |  | (173 | )
Release of unearned ESOP shares |  |  | – |  |  |  | – |  |  |  | – |  |  |  | (25 | ) |  |  | – |  |  |  | – |  |  |  | 72 |  |  |  | – |  |  |  | – |  |  |  | 47 |
Stock-based compensation expense |  |  | – |  |  |  | – |  |  |  | – |  |  |  | 77 |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | 77 |
Other comprehensive loss, net of tax |  |  | – |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | (571 | ) |  |  | – |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | (571 | )
Balance at March 31, 2024 |  | $ | 150,000 |  |  | $ | 62 |  |  | $ | 31 |  |  | $ | 142,653 |  |  | $ | (14,096 | ) |  | $ | 12,211 |  |  | $ | (4,420 | ) |  | $ | (5,326 | ) |  | $ | 175 |  |  | $ | 281,290 |

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