v3.25.4
Restatement of Previously Issued Consolidated Financial Statements (Tables)
 3 Months Ended
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