☒ |
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
|
Delaware
|
95-4547287
|
|
(State or other jurisdiction of
incorporation or organization)
|
(I.R.S. Employer
Identification No.)
|
5055 Wilshire Boulevard, Suite 500
Los Angeles, California
|
90036
|
|
(Address of principal executive offices)
|
(Zip Code)
|
Title of each class:
|
Trading Symbol(s)
|
Name of each exchange on which registered:
|
||
Class A Common Stock, par value $0.01 per share
(including attached preferred stock purchase rights)
|
BYFC
|
The Nasdaq Stock Market LLC
|
Large accelerated filer
|
☐
|
Accelerated filer
|
☐
|
Non-accelerated filer
|
☒
|
Smaller reporting company
|
☒
|
Emerging growth company
|
☐
|
Page
|
|||
PART I.
|
FINANCIAL STATEMENTS
|
||
Item 1.
|
Consolidated Financial Statements (Unaudited)
|
||
1
|
|||
2
|
|||
3
|
|||
4
|
|||
Notes to Consolidated Financial Statements | 5 | ||
Item 2.
|
22
|
||
Item 3.
|
30
|
||
Item 4.
|
30
|
||
PART II.
|
OTHER INFORMATION
|
||
Item 1.
|
30
|
||
Item 1A.
|
30
|
||
Item 2.
|
30
|
||
Item 3.
|
30
|
||
Item 4.
|
30
|
||
Item 5.
|
30
|
||
Item 6.
|
31
|
||
32
|
March 31, 2021
|
December 31, 2020
|
|||||||
(Unaudited)
|
||||||||
Assets:
|
||||||||
Cash and due from banks
|
$
|
70,600
|
$
|
71,110
|
||||
Interest-bearing deposits in other banks
|
17,556
|
24,999
|
||||||
Cash and cash equivalents
|
88,156
|
96,109
|
||||||
Securities available-for-sale, at fair value
|
10,023
|
10,698
|
||||||
Loans receivable held for investment, net of allowance of $3,215 and $3,215
|
362,520
|
360,129
|
||||||
Accrued interest receivable
|
1,157
|
1,202
|
||||||
Federal Home Loan Bank (FHLB) stock
|
3,431
|
3,431
|
||||||
Office properties and equipment, net
|
2,366
|
2,540
|
||||||
Bank owned life insurance
|
3,157
|
3,147
|
||||||
Deferred tax assets, net
|
7,093
|
5,633
|
||||||
Other assets
|
1,691
|
489
|
||||||
Total assets
|
$
|
479,594
|
$
|
483,378
|
||||
Liabilities and stockholders’ equity
|
||||||||
Liabilities:
|
||||||||
Deposits
|
$
|
312,315
|
$
|
315,630
|
||||
FHLB advances
|
110,500
|
110,500
|
||||||
Junior subordinated debentures
|
3,060
|
3,315
|
||||||
Accrued expenses and other liabilities
|
8,643
|
5,048
|
||||||
Total liabilities
|
434,518
|
$
|
434,493
|
|||||
Stockholders’ Equity:
|
||||||||
Preferred stock, $.01 par value, authorized 1,000,000 shares; none issued or outstanding
|
-
|
-
|
||||||
Common stock, $.01 par value, voting, authorized 50,000,000 shares at March 31, 2021 and December 31, 2020; issued 21,760,324 shares at March 31, 2021 and 21,899,584
shares at December 31, 2020; outstanding 19,142,498 shares at March 31, 2021 and 19,281,758 shares at December 31, 2020
|
218
|
219
|
||||||
Common stock, $.01 par value, non-voting, authorized 25,000,000 shares at March 31, 2021 and December 31, 2020; issued and outstanding 8,756,396 shares at March 31, 2021
and December 31, 2020
|
87
|
87
|
||||||
Additional paid-in capital
|
46,625
|
46,851
|
||||||
Retained earnings
|
4,296
|
7,783
|
||||||
Unearned Employee Stock Ownership Plan (ESOP) shares
|
(877
|
)
|
(893
|
)
|
||||
Accumulated other comprehensive income, net of tax
|
53
|
164
|
||||||
Treasury stock-at cost, 2,617,826 shares at March 31, 2021 and at December 31, 2020
|
(5,326
|
)
|
(5,326
|
)
|
||||
Total stockholders’ equity
|
45,076
|
48,885
|
||||||
Total liabilities and stockholders’ equity
|
$
|
479,594
|
$
|
483,378
|
Three Months Ended March 31,
|
||||||||
2021
|
2020
|
|||||||
(In thousands, except per share)
|
||||||||
Interest income:
|
||||||||
Interest and fees on loans receivable
|
$
|
3,644
|
$
|
4,359
|
||||
Interest on investment securities
|
56
|
70
|
||||||
Other interest income
|
77
|
142
|
||||||
Total interest income
|
3,777
|
4,571
|
||||||
Interest expense:
|
||||||||
Interest on deposits
|
383
|
1,055
|
||||||
Interest on borrowings
|
549
|
618
|
||||||
Total interest expense
|
932
|
1,673
|
||||||
Net interest income
|
2,845
|
2,898
|
||||||
Loan loss provision
|
-
|
(29
|
)
|
|||||
Net interest income after loan loss provision
|
2,845
|
2,869
|
||||||
Non-interest income:
|
||||||||
Service charges
|
93
|
144
|
||||||
Net gain on sale of loans
|
-
|
7
|
||||||
Other
|
30
|
46
|
||||||
Total non-interest income
|
123
|
197
|
||||||
Non-interest expense:
|
||||||||
Compensation and benefits
|
5,390
|
2,055
|
||||||
Occupancy expense
|
308
|
315
|
||||||
Information services
|
241
|
237
|
||||||
Professional services
|
1,939
|
264
|
||||||
Office services and supplies
|
95
|
76
|
||||||
Corporate insurance
|
246
|
32
|
||||||
Amortization of investment in affordable housing limited partnership
|
26
|
45
|
||||||
Other
|
382
|
125
|
||||||
Total non-interest expense
|
8,627
|
3,149
|
||||||
Loss before income taxes
|
(5,659
|
)
|
(83
|
)
|
||||
Income tax benefit
|
(2,172
|
)
|
(50
|
)
|
||||
Net loss
|
$
|
(3,487
|
)
|
$
|
(33
|
)
|
||
Other comprehensive (loss) income, net of tax:
|
||||||||
Unrealized (losses) gains on securities available-for-sale arising during the period
|
$
|
(158
|
)
|
$
|
175
|
|||
Income tax (benefit) expense
|
(47
|
)
|
52
|
|||||
Other comprehensive (loss) income, net of tax
|
(111
|
)
|
123
|
|||||
Comprehensive (loss) income
|
$
|
(3,598
|
)
|
$
|
90
|
|||
Loss per common share-basic
|
$
|
(0.13
|
)
|
$
|
-
|
|||
Loss per common share-diluted
|
$
|
(0.13
|
)
|
$
|
-
|
Three Months Ended March 31,
|
||||||||
2021
|
2020
|
|||||||
(In thousands)
|
||||||||
Cash flows from operating activities:
|
||||||||
Net loss
|
$
|
(3,487
|
)
|
$
|
(33
|
)
|
||
Adjustments to reconcile net loss to net cash used in operating activities:
|
||||||||
Loan loss provision
|
-
|
29
|
||||||
Depreciation
|
53
|
191
|
||||||
Net amortization of deferred loan origination costs and loan premiums
|
(21
|
)
|
59
|
|||||
Net amortization of premiums on mortgage-backed securities
|
10
|
9
|
||||||
Director compensation expense-common stock
|
45
|
45
|
||||||
Stock-based compensation expense
|
168
|
80
|
||||||
ESOP compensation expense
|
23
|
17
|
||||||
Earnings on bank owned life insurance
|
(10
|
)
|
(12
|
)
|
||||
Originations of loans receivable held for sale
|
-
|
(65,986
|
)
|
|||||
Proceeds from sales and repayments of loans receivable held for sale
|
-
|
20,512
|
||||||
Gain on sale of loans receivable held for sale
|
-
|
(7
|
)
|
|||||
Change in assets and liabilities:
|
||||||||
Net change in deferred taxes
|
(1,413
|
)
|
7
|
|||||
Net change in accrued interest receivable
|
45
|
(126
|
)
|
|||||
Net change in other assets
|
(1,202
|
)
|
(222
|
)
|
||||
Net change in advance payments by borrowers for taxes and insurance
|
(532
|
)
|
(548
|
)
|
||||
Net change in accrued expenses and other liabilities
|
4,263
|
(184
|
)
|
|||||
Net cash used in operating activities
|
(2,058
|
)
|
(46,169
|
)
|
||||
|
||||||||
Cash flows from investing activities:
|
||||||||
Net change in loans receivable held for investment
|
(2,370
|
)
|
16,425
|
|||||
Principal payments on available-for-sale securities
|
507
|
466
|
||||||
Purchase of FHLB stock
|
-
|
(594
|
)
|
|||||
Purchase of office properties and equipment
|
(15
|
)
|
(139
|
)
|
||||
Net cash (used in) provided by investing activities
|
(1,878
|
)
|
16,158
|
|||||
Cash flows from financing activities:
|
||||||||
Net change in deposits
|
(3,315
|
)
|
35,425
|
|||||
Proceeds from FHLB advances
|
-
|
55,000
|
||||||
Repayments of FHLB advances
|
-
|
(24,000
|
)
|
|||||
Stock cancelled for payment of tax withholdings
|
(447
|
)
|
-
|
|||||
Repayments of junior subordinated debentures
|
(255
|
)
|
(255
|
)
|
||||
Net cash (used in) provided by financing activities
|
(4,017
|
)
|
66,170
|
|||||
Net change in cash and cash equivalents
|
(7,953
|
)
|
36,159
|
|||||
Cash and cash equivalents at beginning of the period
|
96,109
|
15,566
|
||||||
Cash and cash equivalents at end of the period
|
$
|
88,156
|
$
|
51,725
|
||||
Supplemental disclosures of cash flow information:
|
||||||||
Cash paid for interest
|
$
|
809
|
$
|
1,747
|
||||
Cash paid for income taxes
|
39
|
-
|
Three-Month Period Ended March 31, 2021 and 2020
|
||||||||||||||||||||||||||||||||
Common
Stock
Voting
|
Common
Stock Non-Voting
|
Additional
Paid‑in
Capital
|
Accumulated Other Comprehensive (Loss) Income
|
Retained Earnings (Substantially Restricted)
|
Unearned
ESOP Shares
|
Treasury
Stock
|
Total
Stockholders’
Equity
|
|||||||||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||||||||||
Balance at January 1, 2021
|
$
|
219
|
$
|
87
|
$
|
46,851
|
$
|
164
|
$
|
7,783
|
$
|
(893
|
)
|
$
|
(5,326
|
)
|
$
|
48,885
|
||||||||||||||
Net loss for the three months ended March 31, 2021
|
‑
|
‑
|
‑
|
-
|
(3,487
|
)
|
‑
|
‑
|
(3,487
|
)
|
||||||||||||||||||||||
Release of unearned ESOP shares
|
-
|
-
|
7
|
‑
|
‑
|
16
|
‑
|
23
|
||||||||||||||||||||||||
Restricted stock Compensation expense
|
‑
|
162
|
‑
|
‑
|
‑
|
‑
|
162
|
|||||||||||||||||||||||||
Common stock cancelled for payment of tax withholdings
|
(1
|
)
|
-
|
(446
|
)
|
-
|
-
|
-
|
-
|
(447
|
)
|
|||||||||||||||||||||
Stock awarded to directors
|
‑
|
45
|
‑
|
-
|
‑
|
‑
|
45
|
|||||||||||||||||||||||||
Stock option compensation expense
|
‑
|
‑
|
6
|
‑
|
-
|
‑
|
‑
|
6
|
||||||||||||||||||||||||
Other comprehensive loss, net of tax
|
‑
|
‑
|
-
|
(111
|
)
|
‑
|
‑
|
‑
|
(111
|
)
|
||||||||||||||||||||||
Balance at March 31, 2021
|
$
|
218
|
$
|
87
|
$
|
46,625
|
$
|
53
|
$
|
4,296
|
$
|
(877
|
)
|
$
|
(5,326
|
)
|
$
|
45,076
|
||||||||||||||
Balance at January 1, 2020
|
$
|
218
|
$
|
87
|
$
|
46,426
|
$
|
(23
|
)
|
$
|
8,425
|
$
|
(959
|
)
|
$
|
(5,326
|
)
|
$
|
48,848
|
|||||||||||||
Net loss for the three months ended March 31, 2020
|
‑
|
‑
|
‑
|
-
|
(33
|
)
|
‑
|
‑
|
(33
|
)
|
||||||||||||||||||||||
Release of unearned ESOP shares
|
-
|
-
|
-
|
‑
|
‑
|
17
|
‑
|
17
|
||||||||||||||||||||||||
Restricted stock Compensation expense
|
1
|
‑
|
70
|
‑
|
‑
|
‑
|
‑
|
71
|
||||||||||||||||||||||||
Stock awarded to directors
|
‑
|
‑
|
45
|
‑
|
-
|
‑
|
‑
|
45
|
||||||||||||||||||||||||
Stock option compensation expense
|
‑
|
‑
|
9
|
‑
|
-
|
‑
|
‑
|
9
|
||||||||||||||||||||||||
Other comprehensive income, net of tax
|
‑
|
‑
|
-
|
123
|
‑
|
‑
|
‑
|
123
|
||||||||||||||||||||||||
Balance at March 31, 2020
|
$
|
219
|
$
|
87
|
$
|
46,550
|
$
|
100
|
$
|
8,392
|
$
|
(942
|
)
|
$
|
(5,326
|
)
|
$
|
49,080
|
Three Months Ended
March 31, 2021 |
Twelve Months
Ended December 31,
2020
|
|||||||
(Dollars in thousands, except per share)
(Unaudited)
|
||||||||
Net interest income
|
$
|
5,633
|
$
|
23,781
|
||||
Net income
|
$
|
(3,873
|
)
|
$
|
1,571
|
|||
|
||||||||
Basic earnings per share
|
$
|
(0.07
|
)
|
$
|
0.03
|
|||
Diluted earnings per share
|
$
|
(0.07
|
)
|
$
|
0.03
|
Common Shares Outstanding
|
||||||||||||||||
Voting
Class A
|
Nonvoting
Class B |
Nonvoting
Class C |
Total
Shares
|
|||||||||||||
Shares outstanding March 31, 2021:
|
19,142,498
|
-
|
8,756,396
|
27,898,894
|
||||||||||||
Shares issued in merger
|
13,999,870
|
11,404,621
|
-
|
25,404,491
|
||||||||||||
Shares exchanged post-merger
|
(681,300
|
)
|
-
|
681,300
|
-
|
|||||||||||
Shares cancelled
|
(52,105
|
)
|
-
|
-
|
(52,105
|
)
|
||||||||||
Shares issued in private placements
|
11,221,921
|
-
|
7,252,079
|
18,474,000
|
||||||||||||
Shares outstanding April 6, 2021:
|
43,630,884
|
11,404,621
|
16,689,775
|
71,725,280
|
For the three months ended March 31,
|
||||||||
2021
|
2020
|
|||||||
(In thousands, except share
and per share data)
|
||||||||
Net loss
|
$
|
(3,487
|
)
|
$
|
(33
|
)
|
||
Less net income attributable to participating securities
|
-
|
-
|
||||||
Net loss available to common stockholders
|
$
|
(3,487
|
)
|
$
|
(33
|
)
|
||
Weighted average common shares outstanding for basic earnings per common share
|
27,357,750
|
26,962,317
|
||||||
Add: dilutive effects of assumed exercises of stock options
|
-
|
-
|
||||||
Weighted average common shares outstanding for diluted earnings per common share
|
27,357,750
|
26,962,317
|
||||||
Loss per common share - basic
|
$
|
(0.13
|
)
|
$
|
(0.00
|
)
|
||
Loss per common share - diluted
|
$
|
(0.13
|
)
|
$
|
(0.00
|
)
|
Amortized Cost
|
Gross Unrealized Gains
|
Gross Unrealized Losses
|
Fair Value
|
|||||||||||||
(In thousands)
|
||||||||||||||||
March 31, 2021:
|
||||||||||||||||
Federal agency mortgage-backed securities
|
$
|
5,033
|
$
|
228
|
$
|
-
|
$
|
5,261
|
||||||||
Federal agency debt
|
2,682
|
100
|
-
|
2,782
|
||||||||||||
Municipal bonds
|
2,000
|
6
|
(26
|
)
|
1,980
|
|||||||||||
Total available-for-sale securities
|
$
|
9,715
|
$
|
334
|
$
|
(26
|
)
|
$
|
10,023
|
|||||||
December 31, 2020:
|
||||||||||||||||
Federal agency mortgage-backed securities
|
$
|
5,550
|
$
|
257
|
$
|
-
|
$
|
5,807
|
||||||||
Federal agency debt
|
2,682
|
190
|
-
|
2,872
|
||||||||||||
Municipal bonds
|
2,000
|
19
|
-
|
2,019
|
||||||||||||
Total available-for-sale securities
|
$
|
10,232
|
$
|
466
|
$
|
-
|
$
|
10,698
|
March 31, 2021
|
December 31, 2020
|
|||||||
(In thousands)
|
||||||||
Real estate:
|
||||||||
Single family
|
$
|
44,402
|
$
|
48,217
|
||||
Multi-family
|
279,554
|
272,387
|
||||||
Commercial real estate
|
24,129
|
24,289
|
||||||
Church
|
15,799
|
16,658
|
||||||
Construction
|
469
|
429
|
||||||
Commercial – other
|
54
|
57
|
||||||
Consumer
|
7
|
7
|
||||||
Gross loans receivable before deferred loan costs and premiums
|
364,414
|
362,044
|
||||||
Unamortized net deferred loan costs and premiums
|
1,321
|
1,300
|
||||||
Gross loans receivable
|
365,735
|
363,344
|
||||||
Allowance for loan losses
|
(3,215
|
)
|
(3,215
|
)
|
||||
Loans receivable, net
|
$
|
362,520
|
$
|
360,129
|
Three Months Ended March 31, 2021
|
||||||||||||||||||||||||||||||||
Real Estate
|
||||||||||||||||||||||||||||||||
Single
family
|
Multi-
family
|
Commercial
real estate
|
Church
|
Construction
|
Commercial - other
|
Consumer
|
Total
|
|||||||||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||||||||||
Beginning balance
|
$
|
296
|
$
|
2,433
|
$
|
222
|
$
|
237
|
$
|
22
|
$
|
4
|
$
|
1
|
$
|
3,215
|
||||||||||||||||
Provision for (recapture of) loan losses
|
(21
|
)
|
40
|
(3
|
)
|
(16
|
)
|
-
|
1
|
(1
|
)
|
-
|
||||||||||||||||||||
Recoveries
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||
Loans charged off
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||
Ending balance
|
$
|
275
|
$
|
2,473
|
$
|
219
|
$
|
221
|
$
|
22
|
$
|
5
|
$
|
-
|
$
|
3,215
|
Three Months Ended March 31, 2020
|
||||||||||||||||||||||||||||||||
Real Estate
|
||||||||||||||||||||||||||||||||
Single
family |
Multi-
family
|
Commercial real estate
|
Church
|
Construction
|
Commercial - other
|
Consumer
|
Total
|
|||||||||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||||||||||
Beginning balance
|
$
|
312
|
$
|
2,319
|
$
|
133
|
$
|
362
|
$
|
48
|
$
|
7
|
$
|
1
|
$
|
3,182
|
||||||||||||||||
Provision for (recapture of) loan losses
|
(4
|
)
|
89
|
7
|
(39
|
)
|
(24
|
)
|
-
|
-
|
29
|
|||||||||||||||||||||
Recoveries
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||
Loans charged off
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||
Ending balance
|
$
|
308
|
$
|
2,408
|
$
|
140
|
$
|
323
|
$
|
24
|
$
|
7
|
$
|
1
|
$
|
3,211
|
March 31, 2021
|
||||||||||||||||||||||||||||||||
Real Estate
|
||||||||||||||||||||||||||||||||
Single
family
|
Multi-
family
|
Commercial
real estate
|
Church
|
Construction
|
Commercial - other
|
Consumer
|
Total
|
|||||||||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||||||||||||||
Ending allowance balance attributable to loans:
|
||||||||||||||||||||||||||||||||
Individually evaluated for impairment
|
$
|
87
|
$
|
-
|
$
|
-
|
$
|
48
|
$
|
-
|
$
|
1
|
$
|
-
|
$
|
136
|
||||||||||||||||
Collectively evaluated for impairment
|
188
|
2,473
|
219
|
173
|
22
|
4
|
-
|
3,079
|
||||||||||||||||||||||||
Total ending allowance balance
|
$
|
275
|
$
|
2,473
|
$
|
219
|
$
|
221
|
$
|
22
|
$
|
5
|
$
|
-
|
$
|
3,215
|
||||||||||||||||
Loans:
|
||||||||||||||||||||||||||||||||
Loans individually evaluated for impairment
|
$
|
568
|
$
|
293
|
$
|
-
|
$
|
3,765
|
$
|
-
|
$
|
45
|
$
|
-
|
$
|
4,671
|
||||||||||||||||
Loans collectively evaluated for impairment
|
43,969
|
280,753
|
24,164
|
11,693
|
469
|
9
|
7
|
361,064
|
||||||||||||||||||||||||
Total ending loans balance
|
$
|
44,537
|
$
|
281,046
|
$
|
24,164
|
$
|
15,458
|
$
|
469
|
$
|
54
|
$
|
7
|
$
|
365,735
|
December 31, 2020
|
||||||||||||||||||||||||||||||||
Real Estate
|
||||||||||||||||||||||||||||||||
Single
family
|
Multi-
family |
Commercial
real estate
|
Church
|
Construction
|
Commercial - other
|
Consumer
|
Total
|
|||||||||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||||||||||||||
Ending allowance balance attributable to loans:
|
||||||||||||||||||||||||||||||||
Individually evaluated for impairment
|
$
|
89
|
$
|
-
|
$
|
-
|
$
|
52
|
$
|
-
|
$
|
$
|
-
|
$
|
141
|
|||||||||||||||||
Collectively evaluated for impairment
|
207
|
2,433
|
222
|
185
|
22
|
4
|
1
|
3,074
|
||||||||||||||||||||||||
Total ending allowance balance
|
$
|
296
|
$
|
2,433
|
$
|
222
|
$
|
237
|
$
|
22
|
$
|
4
|
$
|
1
|
$
|
3,215
|
||||||||||||||||
Loans:
|
||||||||||||||||||||||||||||||||
Loans individually evaluated for impairment
|
$
|
573
|
$
|
298
|
$
|
-
|
$
|
3,813
|
$
|
-
|
$
|
47
|
$
|
-
|
$
|
4,731
|
||||||||||||||||
Loans collectively evaluated for impairment
|
47,784
|
273,566
|
24,322
|
12,495
|
430
|
9
|
7
|
358,613
|
||||||||||||||||||||||||
Total ending loans balance
|
$
|
48,357
|
$
|
273,864
|
$
|
24,322
|
$
|
16,308
|
$
|
430
|
$
|
56
|
$
|
7
|
$
|
363,344
|
March 31, 2021
|
December 31, 2020
|
|||||||||||||||||||||||
Unpaid
Principal
Balance |
Recorded
Investment
|
Allowance
for Loan
Losses
Allocated
|
Unpaid
Principal Balance |
Recorded
Investment
|
Allowance
for Loan
Losses
Allocated
|
|||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
With no related allowance recorded:
|
||||||||||||||||||||||||
Single family
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
2
|
$
|
1
|
$
|
-
|
||||||||||||
Multi-family
|
293
|
293
|
-
|
298
|
298
|
-
|
||||||||||||||||||
Church
|
2,507
|
1,942
|
-
|
2,527
|
1,970
|
-
|
||||||||||||||||||
With an allowance recorded:
|
||||||||||||||||||||||||
Single family
|
568
|
568
|
87
|
573
|
573
|
88
|
||||||||||||||||||
Church
|
1,823
|
1,823
|
48
|
1,842
|
1,842
|
52
|
||||||||||||||||||
Commercial - other
|
45
|
45
|
1
|
47
|
47
|
1
|
||||||||||||||||||
Total
|
$
|
5,236
|
$
|
4,671
|
$
|
136
|
$
|
5,289
|
$
|
4,731
|
$
|
141
|
Three Months Ended March 31, 2021
|
Three Months Ended March 31, 2020
|
|||||||||||||||
Average
Recorded
Investment
|
Cash Basis
Interest
Income
Recognized
|
Average
Recorded
Investment
|
Cash Basis
Interest
Income
Recognized
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Single family
|
$
|
571
|
$
|
7
|
$
|
608
|
$
|
7
|
||||||||
Multi-family
|
296
|
5
|
311
|
5
|
||||||||||||
Church
|
3,789
|
63
|
4,296
|
236
|
||||||||||||
Commercial – other
|
46
|
1
|
62
|
1
|
||||||||||||
Total
|
$
|
4,702
|
$
|
76
|
$
|
5,277
|
$
|
249
|
March 31, 2021
|
||||||||||||||||||||||||
30-59
Days
Past Due
|
60-89
Days
Past Due
|
Greater
than
90 Days
Past Due
|
Total
Past Due
|
Current
|
Total
|
|||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
Loans receivable held for investment:
|
||||||||||||||||||||||||
Single family
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
44,537
|
$
|
44,537
|
||||||||||||
Multi-family
|
-
|
-
|
-
|
-
|
281,046
|
281,046
|
||||||||||||||||||
Commercial real estate
|
-
|
-
|
-
|
-
|
24,164
|
24,164
|
||||||||||||||||||
Church
|
-
|
-
|
-
|
-
|
15,458
|
15,458
|
||||||||||||||||||
Construction
|
-
|
-
|
-
|
-
|
469
|
469
|
||||||||||||||||||
Commercial - other
|
-
|
-
|
-
|
-
|
54
|
54
|
||||||||||||||||||
Consumer
|
-
|
-
|
-
|
-
|
7
|
7
|
||||||||||||||||||
Total
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
365,735
|
$
|
365,735
|
December 31, 2020
|
||||||||||||||||||||||||
30-59
Days
Past Due
|
60-89
Days
Past Due
|
Greater
than
90 Days
Past Due
|
Total
Past Due
|
Current
|
Total
|
|||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
Loans receivable held for investment:
|
||||||||||||||||||||||||
Single family
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
48,357
|
$
|
48,357
|
||||||||||||
Multi-family
|
-
|
-
|
-
|
-
|
273,864
|
273,864
|
||||||||||||||||||
Commercial real estate
|
-
|
-
|
-
|
-
|
24,322
|
24,322
|
||||||||||||||||||
Church
|
-
|
-
|
-
|
-
|
16,308
|
16,308
|
||||||||||||||||||
Construction
|
-
|
-
|
-
|
-
|
430
|
430
|
||||||||||||||||||
Commercial - other
|
-
|
-
|
-
|
-
|
56
|
56
|
||||||||||||||||||
Consumer
|
-
|
-
|
-
|
-
|
7
|
7
|
||||||||||||||||||
Total
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
363,344
|
$
|
363,344
|
March 31, 2021
|
December 31, 2020
|
|||||||
(In thousands)
|
||||||||
Loans receivable held for investment:
|
||||||||
Single-family residence
|
$
|
-
|
$
|
1
|
||||
Church
|
760
|
786
|
||||||
Total non-accrual loans
|
$
|
760
|
$
|
787
|
◾ |
Watch. Loans classified as watch exhibit weaknesses that could threaten the current net worth and paying capacity of the obligors. Watch graded loans are generally performing
and are not more than 59 days past due. A watch rating is used when a material deficiency exists, but correction is anticipated within an acceptable time.
|
◾ |
Special Mention. Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may
result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date.
|
◾ |
Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans
so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.
|
◾ |
Doubtful. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or
liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.
|
◾ |
Loss. Loans classified as loss are considered uncollectible and of such little value that to continue to carry the loan as an active
asset is no longer warranted.
|
March 31, 2021
|
||||||||||||||||||||||||
Pass
|
Watch
|
Special Mention
|
Substandard
|
Doubtful
|
Loss
|
|||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
Single family
|
$
|
44,536
|
$ ‑
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
|||||||||||||
Multi-family
|
280,689
|
-
|
-
|
358
|
-
|
-
|
||||||||||||||||||
Commercial real estate
|
22,684
|
1,480
|
-
|
‑
|
-
|
-
|
||||||||||||||||||
Church
|
12,093
|
652
|
-
|
2,713
|
-
|
-
|
||||||||||||||||||
Construction
|
469
|
‑
|
-
|
‑
|
-
|
-
|
||||||||||||||||||
Commercial - other
|
9
|
‑
|
-
|
45
|
-
|
-
|
||||||||||||||||||
Consumer
|
7
|
‑
|
-
|
‑
|
-
|
-
|
||||||||||||||||||
Total
|
$
|
360,487
|
$
|
2,132
|
$
|
-
|
$
|
3,116
|
$
|
-
|
$
|
-
|
|
December 31, 2020
|
|||||||||||||||||||||||
|
Pass
|
Watch
|
Special Mention
|
Substandard
|
Doubtful
|
Loss
|
||||||||||||||||||
|
(In thousands)
|
|||||||||||||||||||||||
Single family
|
$
|
48,357
|
$ ‑
|
$
|
-
|
$
|
1
|
$
|
-
|
$
|
-
|
|||||||||||||
Multi-family
|
273,501
|
-
|
-
|
362
|
-
|
-
|
||||||||||||||||||
Commercial real estate
|
22,834
|
1,488
|
-
|
‑
|
-
|
-
|
||||||||||||||||||
Church
|
12,899
|
657
|
-
|
2,752
|
-
|
-
|
||||||||||||||||||
Construction
|
430
|
‑
|
-
|
‑
|
-
|
-
|
||||||||||||||||||
Commercial - other
|
9
|
‑
|
-
|
47
|
-
|
-
|
||||||||||||||||||
Consumer
|
7
|
‑
|
-
|
‑
|
-
|
-
|
||||||||||||||||||
Total
|
$
|
358,037
|
$
|
2,145
|
$
|
-
|
$
|
3,162
|
$
|
-
|
$
|
-
|
Fair Value Measurement
|
||||||||||||||||
Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)
|
Significant
Other
Observable
Inputs
(Level 2)
|
Significant Unobservable
Inputs
(Level 3)
|
Total
|
|||||||||||||
(In thousands)
|
||||||||||||||||
At March 31, 2021:
|
||||||||||||||||
Securities available-for-sale – federal agency mortgage-backed
|
$
|
-
|
$
|
5,261
|
$
|
-
|
$
|
5,261
|
||||||||
Securities available-for-sale – federal agency debt
|
-
|
2,782
|
-
|
2,782
|
||||||||||||
Municipal bonds
|
-
|
1,980
|
-
|
1,980
|
||||||||||||
At December 31, 2020:
|
||||||||||||||||
Securities available-for-sale – federal agency mortgage-backed
|
$
|
-
|
$
|
5,807
|
$
|
-
|
$
|
5,807
|
||||||||
Securities available-for-sale – federal agency debt
|
-
|
2,872
|
-
|
2,872
|
||||||||||||
Municipal bonds
|
-
|
2,019
|
-
|
2,019
|
Fair Value Measurements at March 31, 2021
|
||||||||||||||||||||
Carrying
Value
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||||||||
(In thousands)
|
||||||||||||||||||||
Financial Assets:
|
||||||||||||||||||||
Cash and cash equivalents
|
$
|
88,156
|
$
|
88,156
|
$
|
-
|
$
|
-
|
$
|
88,156
|
||||||||||
Securities available-for-sale
|
9,716
|
-
|
10,023
|
-
|
10,023
|
|||||||||||||||
Loans receivable held for investment
|
362,520
|
-
|
-
|
370,702
|
370,702
|
|||||||||||||||
Accrued interest receivable
|
1,157
|
82
|
12
|
1,063
|
1,157
|
|||||||||||||||
Bank owned life insurance
|
3,157
|
3,157
|
-
|
-
|
3,157
|
|||||||||||||||
Financial Liabilities:
|
||||||||||||||||||||
Time Deposits
|
$
|
312,315
|
$
|
-
|
$
|
303,598
|
$
|
-
|
$
|
303,598
|
||||||||||
Federal Home Loan Bank advances
|
110,500
|
-
|
112,778
|
-
|
112,778
|
|||||||||||||||
Junior subordinated debentures
|
3,060
|
-
|
-
|
2,570
|
2,570
|
|||||||||||||||
Accrued interest payable
|
37
|
-
|
34
|
3
|
37
|
|||||||||||||||
Fair Value Measurements at December 31, 2020
|
||||||||||||||||||||
Carrying
Value
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||||||||
(In thousands)
|
||||||||||||||||||||
Financial Assets:
|
||||||||||||||||||||
Cash and cash equivalents
|
$
|
96,109
|
$
|
96,109
|
$
|
-
|
$
|
-
|
$
|
96,109
|
||||||||||
Securities available-for-sale
|
10,698
|
-
|
10,698
|
-
|
10,698
|
|||||||||||||||
Loans receivable held for investment
|
360,129
|
-
|
-
|
366,279
|
366,279
|
|||||||||||||||
Accrued interest receivable
|
1,202
|
60
|
14
|
1,128
|
1,202
|
|||||||||||||||
Bank owned life insurance
|
3,147
|
3,147
|
-
|
-
|
3,147
|
|||||||||||||||
Financial Liabilities:
|
||||||||||||||||||||
Time Deposits
|
$
|
315,630
|
$
|
-
|
$
|
312,725
|
$
|
-
|
$
|
312,725
|
||||||||||
Federal Home Loan Bank advances
|
110,500
|
-
|
113,851
|
-
|
113,851
|
|||||||||||||||
Junior subordinated debentures
|
3,315
|
-
|
-
|
2,798
|
2,798
|
|||||||||||||||
Accrued interest payable
|
88
|
-
|
84
|
4
|
88
|
Three Months Ended
March 31, 2021
|
Three Months Ended
March 31, 2020
|
|||||||||||||||
Number
Outstanding
|
Weighted
Average
Exercise
Price
|
Number
Outstanding
|
Weighted
Average
Exercise
Price
|
|||||||||||||
Outstanding at beginning of period
|
450,000
|
$
|
1.62
|
455,000
|
$
|
1.67
|
||||||||||
Granted during period
|
-
|
-
|
-
|
-
|
||||||||||||
Exercised during period
|
-
|
-
|
-
|
-
|
||||||||||||
Forfeited or expired during period
|
-
|
-
|
(5,000
|
)
|
6.00
|
|||||||||||
Outstanding at end of period
|
450,000
|
$
|
1.62
|
450,000
|
$
|
1.62
|
||||||||||
Exercisable at end of period
|
450,000
|
$
|
1.62
|
360,000
|
$
|
1.62
|
Outstanding
|
Exercisable
|
||||||||||||||||||||||||
Grant Date
|
Number
Outstanding
|
Weighted
Average
Remaining
Contractual
Life
|
Weighted
Average
Exercise
Price
|
Aggregate
Intrinsic
Value
|
Number
Outstanding
|
Weighted
Average
Exercise
Price
|
Aggregate
Intrinsic
Value
|
||||||||||||||||||
February 24, 2016
|
450,000
|
4.98 years
|
$
|
1.62
|
450,000
|
$
|
1.62
|
||||||||||||||||||
450,000
|
4.98 years
|
$
|
1.62
|
$
|
157,500
|
450,000
|
$
|
1.62
|
$
|
157,500
|
March 31, 2021
|
December 31, 2020
|
|||||||
(Dollars in thousands)
|
||||||||
Allocated to participants
|
1,065,275
|
1,065,275
|
||||||
Committed to be released
|
20,472
|
10,236
|
||||||
Suspense shares
|
552,155
|
562,391
|
||||||
Total ESOP shares
|
1,637,902
|
1,637,902
|
||||||
Fair value of unearned shares
|
$
|
1,268
|
$
|
1,040
|
• |
4.5% CET1 to risk-weighted assets;
|
• |
6.0% Tier 1 capital (that is, CET1 plus Additional Tier 1 capital) to risk-weighted assets;
|
• |
8.0% Total capital (that is, Tier 1 capital plus Tier 2 capital) to risk-weighted assets; and
|
• |
4.0% Tier 1 capital to average consolidated assets (known as the “leverage ratio”).
|
Actual
|
Minimum Capital
Requirements
|
Minimum Required To
Be Well Capitalized
Under Prompt
Corrective Action
Provisions
|
||||||||||||||||||||||
Amount
|
Ratio
|
Amount
|
Ratio (1)
|
Amount
|
Ratio
|
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
March 31, 2021:
|
||||||||||||||||||||||||
Tier 1 (Leverage)
|
$
|
42,580
|
8.89
|
%
|
$
|
19,164
|
4.00
|
%
|
$
|
23,954
|
5.00
|
%
|
||||||||||||
Common Equity Tier 1
|
$
|
42,580
|
16.70
|
%
|
$
|
11,477
|
4.50
|
%
|
$
|
16,577
|
6.50
|
%
|
||||||||||||
Tier 1
|
$
|
42,580
|
16.70
|
%
|
$
|
15,302
|
6.00
|
%
|
$
|
20,403
|
8.00
|
%
|
||||||||||||
Total Capital
|
$
|
45,769
|
17.95
|
%
|
$
|
20,403
|
8.00
|
%
|
$
|
25,504
|
10.00
|
%
|
||||||||||||
December 31, 2020:
|
||||||||||||||||||||||||
Tier 1 (Leverage)
|
$
|
46,565
|
9.54
|
%
|
$
|
19,530
|
4.00
|
%
|
$
|
24,413
|
5.00
|
%
|
||||||||||||
Common Equity Tier 1
|
$
|
46,565
|
18.95
|
%
|
$
|
11,059
|
4.50
|
%
|
$
|
15,975
|
6.50
|
%
|
||||||||||||
Tier 1
|
$
|
46,565
|
18.95
|
%
|
$
|
14,746
|
6.00
|
%
|
$
|
19,661
|
8.00
|
%
|
||||||||||||
Total Capital
|
$
|
49,802
|
20.20
|
%
|
$
|
19,661
|
8.00
|
%
|
$
|
24,577
|
10.00
|
%
|
(1)
|
Without conservation buffer
|
ITEM 2. |
For the three months ended
|
||||||||||||||||||||||||
March 31, 2021
|
March 31, 2020
|
|||||||||||||||||||||||
(Dollars in Thousands)
|
Average Balance
|
Interest
|
Average
Yield/
Cost
|
Average Balance
|
Interest
|
Average
Yield/
Cost
|
||||||||||||||||||
Assets
|
||||||||||||||||||||||||
Interest-earning assets:
|
||||||||||||||||||||||||
Interest-earning deposits and other short term investments
|
$
|
98,183
|
$
|
35
|
0.14
|
%
|
$
|
28,087
|
$
|
88
|
1.25
|
%
|
||||||||||||
Securities
|
10,414
|
56
|
2.15
|
%
|
10,947
|
70
|
2.56
|
%
|
||||||||||||||||
Loans receivable (1)
|
361,487
|
3,644
|
4.03
|
%
|
426,243
|
4,359
|
4.09
|
%
|
||||||||||||||||
FHLB stock
|
3,431
|
42
|
4.90
|
%
|
3,122
|
54
|
6.92
|
%
|
||||||||||||||||
Total interest-earning assets
|
473,515
|
$
|
3,777
|
3.19
|
%
|
468,399
|
$
|
4,571
|
3.90
|
%
|
||||||||||||||
Non-interest-earning assets
|
11,064
|
10,370
|
||||||||||||||||||||||
Total assets
|
$
|
484,579
|
$
|
478,769
|
||||||||||||||||||||
Liabilities and Stockholders’ Equity
|
||||||||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||
Money market deposits
|
$
|
76,750
|
$
|
81
|
0.42
|
%
|
$
|
37,897
|
$
|
105
|
1.11
|
%
|
||||||||||||
Passbook deposits
|
64,044
|
57
|
0.36
|
%
|
48,739
|
88
|
0.72
|
%
|
||||||||||||||||
NOW and other demand deposits
|
54,650
|
7
|
0.05
|
%
|
42,692
|
4
|
0.04
|
%
|
||||||||||||||||
Certificate accounts
|
120,857
|
238
|
0.79
|
%
|
182,820
|
858
|
1.88
|
%
|
||||||||||||||||
Total deposits
|
316,301
|
383
|
0.48
|
%
|
312,148
|
1,055
|
1.35
|
%
|
||||||||||||||||
FHLB advances
|
110,500
|
527
|
1.91
|
%
|
107,874
|
571
|
2.12
|
%
|
||||||||||||||||
Junior subordinated debentures
|
3,275
|
22
|
2.69
|
%
|
4,290
|
47
|
4.38
|
%
|
||||||||||||||||
113,775
|
549
|
1.93
|
%
|
112,164
|
618
|
2.20
|
%
|
|||||||||||||||||
Total interest-bearing liabilities
|
430,076
|
$
|
932
|
0.87
|
%
|
424,312
|
$
|
1,673
|
1.58
|
%
|
||||||||||||||
Non-interest-bearing liabilities
|
5,832
|
5,536
|
||||||||||||||||||||||
Stockholders’ Equity
|
48,671
|
48,921
|
||||||||||||||||||||||
Total liabilities and stockholders’ equity
|
$
|
484,579
|
$
|
478,769
|
||||||||||||||||||||
Net interest rate spread (2)
|
$
|
2,845
|
2.32
|
%
|
$
|
2,898
|
2.33
|
%
|
||||||||||||||||
Net interest rate margin (3)
|
2.40
|
%
|
2.47
|
%
|
||||||||||||||||||||
Ratio of interest-earning assets to interest-bearing liabilities
|
110.10
|
%
|
110.39
|
%
|
(1) |
Amount is net of deferred loan fees, loan discounts and loans in process, and includes deferred origination costs, loan premiums and loans receivable held for sale.
|
(2)
|
Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.
|
(3) |
Net interest rate margin represents net interest income as a percentage of average interest-earning assets.
|
ITEM 3. |
ITEM 4. |
Item 1. |
Item 1A. |
Item 2. |
Item 3. |
Item 4. |
Item 5. |
Exhibit
Number*
|
|
Certificate of Incorporation of Registrant and amendments thereto (Exhibit 3.1 to Form 8-K filed by Registrant on April 5, 2021)
|
|
Bylaws of Registrant (Exhibit 3.2 to Form 8-K filed by Registrant on August 24, 2020)
|
|
Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
|
Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
|
101.INS
|
XBRL Instance Document
|
101.SCH
|
XBRL Taxonomy Extension Schema Document
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
101.DEF
|
XBRL Taxonomy Extension Definitions Linkbase Document
|
101.LAB
|
XBRL Taxonomy Extension Label Linkbase Document
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
Date: May 14, 2021
|
By:
|
/s/ Brian E. Argrett
|
Brian E. Argrett
|
||
Chief Executive Officer
|
Date: May 14, 2021
|
By:
|
/s/ Brenda J. Battey
|
Brenda J. Battey
|
||
Chief Financial Officer
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Broadway Financial Corporation;
|
2. |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the
circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3. |
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of
operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4. |
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and
15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a) |
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to
the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b) |
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance
regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c) |
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and
procedures, as of the end of the period covered by this report based on such evaluation; and
|
d) |
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially
affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5. |
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the
audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a) |
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the
registrant’s ability to record, process, summarize and report financial information; and
|
b) |
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date: May 14, 2021
|
By:
|
/s/ Brian E. Argrett
|
Brian E. Argrett
|
||
Chief Executive Officer
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Broadway Financial Corporation;
|
2. |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the
circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3. |
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of
operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4. |
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and
15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a) |
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to
the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b) |
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance
regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c) |
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and
procedures, as of the end of the period covered by this report based on such evaluation; and
|
d) |
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially
affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5. |
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the
audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a) |
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the
registrant’s ability to record, process, summarize and report financial information; and
|
b) |
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date: May 14, 2021
|
By:
|
/s/ Brenda J. Battey
|
Brenda J. Battey
|
||
Chief Financial Officer
|
Date: May 14, 2021
|
By:
|
/s/ Brian E. Argrett
|
Brian E. Argrett
|
||
Chief Executive Officer
|
Date: May 14, 2021
|
By:
|
/s/ Brenda J. Battey
|
Brenda J. Battey
|
||
Chief Financial Officer
|
Document and Entity Information - shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
May 11, 2021 |
|
Document Information [Line Items] | ||
Entity Registrant Name | BROADWAY FINANCIAL CORP \DE\ | |
Entity Central Index Key | 0001001171 | |
Current Fiscal Year End Date | --12-31 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Entity Address, State or Province | CA | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Class A Common Stock [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 43,630,884 | |
Class B Common Stock [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 11,404,621 | |
Class C Common Stock [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 16,689,775 |
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands |
Common Stock [Member]
Common Stock Voting [Member]
|
Common Stock [Member]
Common Stock Non-Voting [Member]
|
Additional Paid-in Capital [Member] |
Accumulated Other Comprehensive (Loss) Income [Member] |
Retained Earnings (Substantially Restricted) [Member] |
Unearned ESOP Shares [Member] |
Treasury Stock [Member] |
Total |
---|---|---|---|---|---|---|---|---|
Balance at Dec. 31, 2019 | $ 218 | $ 87 | $ 46,426 | $ (23) | $ 8,425 | $ (959) | $ (5,326) | $ 48,848 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net loss | 0 | 0 | 0 | 0 | (33) | 0 | 0 | (33) |
Release of unearned ESOP shares | 0 | 0 | 0 | 0 | 0 | 17 | 0 | 17 |
Restricted stock Compensation expense | 1 | 0 | 70 | 0 | 0 | 0 | 0 | 71 |
Stock awarded to directors | 0 | 0 | 45 | 0 | 0 | 0 | 0 | 45 |
Stock option compensation expense | 0 | 0 | 9 | 0 | 0 | 0 | 0 | 9 |
Other comprehensive income (loss), net of tax | 0 | 0 | 0 | 123 | 0 | 0 | 0 | 123 |
Balance at Mar. 31, 2020 | 219 | 87 | 46,550 | 100 | 8,392 | (942) | (5,326) | 49,080 |
Balance at Dec. 31, 2020 | 219 | 87 | 46,851 | 164 | 7,783 | (893) | (5,326) | 48,885 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net loss | 0 | 0 | 0 | 0 | (3,487) | 0 | 0 | (3,487) |
Release of unearned ESOP shares | 0 | 0 | 7 | 0 | 0 | 16 | 0 | 23 |
Restricted stock Compensation expense | 0 | 162 | 0 | 0 | 0 | 0 | 162 | |
Common stock cancelled for payment of tax withholdings | (1) | 0 | (446) | 0 | 0 | 0 | 0 | (447) |
Stock awarded to directors | 0 | 45 | 0 | 0 | 0 | 0 | 45 | |
Stock option compensation expense | 0 | 0 | 6 | 0 | 0 | 0 | 0 | 6 |
Other comprehensive income (loss), net of tax | 0 | 0 | 0 | (111) | 0 | 0 | 0 | (111) |
Balance at Mar. 31, 2021 | $ 218 | $ 87 | $ 46,625 | $ 53 | $ 4,296 | $ (877) | $ (5,326) | $ 45,076 |
Basis of Financial Statement Presentation |
3 Months Ended |
---|---|
Mar. 31, 2021 | |
Basis of Financial Statement Presentation [Abstract] | |
Basis of Financial Statement Presentation | NOTE (1) – Basis of Financial Statement Presentation The accompanying unaudited consolidated financial statements include Broadway Financial Corporation (the “Company”) and its wholly owned subsidiary, Broadway Federal Bank, f.s.b. (the “Bank”, and collectively, with the Company, “Broadway”). Also included in the unaudited consolidated financial statements is Broadway Service Corporation, a wholly owned subsidiary of the Bank. All significant intercompany balances and transactions have been eliminated in consolidation. The unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions for quarterly reports on Form 10-Q. These unaudited consolidated financial statements do not include all disclosures associated with the Company’s consolidated annual financial statements included in its Annual Report on Form 10-K for the year ended December 31, 2020 and, accordingly, should be read in conjunction with such audited consolidated financial statements. In the opinion of management, all adjustments (all of which are normal and recurring in nature) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021. See Note 2. Subsequent events have been evaluated through May 14, 2021, which is the date these financial statements were issued. Accounting Pronouncements to Be Adopted In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2020-04, Reference Rate Reform (Topic 848), Facilitation of the Effects of Reference Rate Reform on Financial Reporting. This ASU provides optional expedients and exceptions regarding the accounting related to the modifications of certain contracts, relationships and other transactions that are affected by reference rate reform related to contracts that reference LIBOR or other reference rates that could be discontinued due to reference rate reform. This guidance was effective immediately and the amendments may be applied prospectively through December 31, 2022. The estimated financial impact has not yet been determined. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740), Simplifying the Accounting for Income Taxes. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. The amendments in this ASU are intended to simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments are also intended to improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. The guidance did not have a significant impact on the Company’s consolidated financial statements. Accounting Pronouncements Yet to Be Adopted – In June 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” ASU 2016-13 replaces the incurred loss model with an expected loss model, which is referred to as the current expected credit loss (“CECL”) model. The CECL model is applicable to the measurement of credit losses on financial assets measured at amortized cost, including loan receivables, held-to-maturity debt securities, and reinsurance receivables. It also applies to off-balance sheet credit exposures not accounted for as insurance (such as loan commitments, standby letters of credit, financial guarantees, and other similar instruments) and net investments in leases recognized by a lessor. For debt securities with other-than-temporary impairment, the guidance will be applied prospectively. Existing purchased credit impaired (“PCI”) assets will be grandfathered and classified as purchased credit deteriorated (“PCD”) assets at the date of adoption. The asset will be grossed up for the allowance for expected credit losses for all PCD assets at the date of adoption and the noncredit discount in interest income based on the yield of such assets as of the adoption date. Subsequent changes in expected credit losses will be recorded through the allowance. For all other assets within the scope of CECL, a cumulative-effect adjustment will be recognized in retained earnings as of the beginning of the first reporting period in which the guidance is effective. On October 16, 2019, the FASB voted to affirm the proposed amended effective date for ASU 2016-13 for smaller reporting companies (“SRCs”) as defined by the SEC. The final ASU, which was issued in November 2019, delays the implementation date for ASU 2016-13 to fiscal years beginning after December 15, 2022. SRCs are defined as companies with less than $250 million of public float or less than $100 million in annual revenues for the previous year and no public float or public float of less than $700 million. The Company qualifies as an SRC, and management will implement ASU 2016-13 in the first quarter of 2023. The estimated financial impact has not yet been determined. In April 2019, the FASB issued ASU No. 2019-04, Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments. This ASU is effective January 1, 2020 and clarifies the scope of the credit losses standard and addresses issues related to accrued interest receivable balances, recoveries, variable interest rates and prepayments, among other things. The amendments to Topic 326 have the same effective dates as ASU 2016-13. This guidance did not have a significant impact on the Company’s consolidated financial statements. In May 2019, the FASB issued ASU No. 2019-05, Financial Instruments - Credit Losses (Topic 326): Targeted Transition Relief. This ASU allows entities to irrevocably elect the fair value option on an instrument-by-instrument basis for eligible financial assets measured at amortized cost basis upon adoption of the credit loss standards. The effective date for this ASU is the same as for ASU 2016-13. We will evaluate this ASU in conjunction with ASU 2016-13 to determine its impact on our financial condition and results of operations. |
Acquisition of CFBanc Corporation |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition of CFBanc Corporation [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition of CFBanc Corporation | NOTE (2) – Acquisition of CFBanc Corporation Broadway Financial Corporation (the “Company”) completed its merger with CFBanc Corporation on April 1, 2021, with Broadway Financial Corporation continuing as the surviving entity (the “CFBanc Merger”). Immediately following this merger, Broadway Federal Bank, f.s.b. merged with and into City First Bank of D.C, National Association with City First Bank of D.C., National Association continuing as the surviving entity (which concurrently changed its name to City First Bank, National Association). The results for the first quarter of 2021 and 2020 include the results of Broadway Financial Corporation and its subsidiary, Broadway Federal Bank, f.s.b., (the “Bank”) on a standalone basis, and do not include any results of CFBanc Corporation and its subsidiaries. The unaudited pro forma information in the following table is intended for informational purposes only and is not necessarily indicative of future operating results or operating results that would have occurred had the mergers been completed at the beginning of each respective year. No assumptions have been applied to the pro forma results of operations regarding possible revenue enhancements, expense efficiencies or asset dispositions.
On April 1, 2021, (1) each share of CFBanc Corporation’s Class A Common Stock, par value $0.50 per share, and Class B Common Stock, par value $0.50 per share, issued and outstanding immediately prior to the CFBanc Merger was converted into 13.626 validly issued, fully paid and nonassessable shares, respectively, of the voting common stock of the Company, par value $0.01 per share, which were renamed Class A Common Stock, and a new class of non-voting common stock of the Company, par value $0.01 per share, which was named Class B Common Stock, and (2) each share of Fixed Rate Cumulative Redeemable Perpetual Preferred Stock, Series B, par value $0.50 per share, of CFBanc Corporation (“CFBanc Corporation Preferred Stock”) issued and outstanding immediately prior to the effective time of the CFBanc Merger was converted into one validly issued, fully paid and non-assessable share of a new series of preferred stock of the Company, which was designated as the Company’s Fixed Rate Cumulative Redeemable Perpetual Preferred Stock, Series A, with such rights, preferences, privileges and voting powers, and limitations and restrictions thereof, which taken as a whole, are not materially less favorable to the holders of CFBanc Corporation Preferred Stock than the rights, preferences, privileges and voting powers, and limitations and restrictions thereof of CFBanc Corporation Preferred Stock. On April 6, 2021, the Company completed the sale of 18,474,000 shares of Broadway common stock in private placements to institutional and accredited investors at a purchase price of $1.78 per share for an aggregate purchase price of $32.9 million. The following table shows the common stock issued on April 1, 2021 as a result of the merger and on April 6, 2021 as a result of the private placements by class:
|
Loss Per Share of Common Stock |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Per Share of Common Stock [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Per Share of Common Stock | NOTE (3) – Loss Per Share of Common Stock Basic earnings per share of common stock is computed pursuant to the two-class method by dividing net income available to common stockholders less any undistributed earnings attributable to participating securities by the weighted average common shares outstanding during the period. The weighted average common shares outstanding includes the weighted average number of shares of common stock outstanding less the weighted average number of unvested shares of restricted common stock. ESOP shares are considered outstanding for this calculation unless unearned. Diluted earnings per share of common stock includes the dilutive effect of unvested stock awards and additional potential common shares issuable under stock options. The following table shows how the Company computed basic and diluted earnings per share of common stock for the periods indicated:
Stock options for 450,000 shares of common stock for the three months ended March 31, 2021 and 2020 were not considered in computing diluted earnings per common share because they were anti-dilutive due to net loss. |
Securities |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Securities | NOTE (4) – Securities The following table summarizes the amortized cost and fair value of the available-for-sale investment securities portfolios as of the periods indicated and the corresponding amounts of unrealized gains which were recognized in accumulated other comprehensive income:
At March 31, 2021, the Bank had two federal agency debt securities with total amortized cost of $2.7 million, estimated total fair value of $2.8 million and an estimated average remaining life of 4.4 years. The Bank also had 20 federal agency mortgage-backed securities with total amortized cost of $5.0 million, estimated total fair value of $5.3 million and an estimated average remaining life of 3.4 years. In addition, as of March 31, 2021, the Bank had five municipal bonds with total amortized cost of $2.0 million, estimated total fair value of $2.0 million and average remaining life of 6.5 years. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. No securities were pledged to secure public deposits at March 31, 2021 and December 31, 2020. At March 31, 2021 and December 31, 2020, no holdings of securities of any one issuer, other than the U.S. Government and its agencies exceeded 10% of stockholders’ equity. The Bank did not purchase or sell any securities during the three months ended March 31, 2021 and 2020. At March 31, 2021, the Bank held 23 securities with unrealized gains and four securities with unrealized losses. All securities with unrealized losses were in a loss position for less than 12 months. At December 31, 2020, the Bank held 29 securities with unrealized gains and no securities with unrealized losses. Securities in unrealized gain or loss positions are analyzed as part of our ongoing assessment of other than temporary fluctuations in fair market values primarily caused by movements in market interest rates subsequent to the purchase of such securities. All of the Bank’s securities were issued by the federal government or federal government agencies, or municipalities. |
Loans Receivable Held for Investment |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans Receivable Held for Investment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans Receivable Held for Investment | NOTE (5) – Loans Receivable Held for Investment Loans receivable held for investment were as follows as of the periods indicated:
The following tables present the activity in the allowance for loan losses by loan type for the periods indicated:
The following tables present the balance in the allowance for loan losses and the recorded investment (unpaid contractual principal balance less charge-offs, less interest applied to principal, plus unamortized deferred costs and premiums) by loan type and based on impairment method as of and for the periods indicated:
The following table presents information related to loans individually evaluated for impairment by loan type as of the periods indicated:
The following tables present the monthly average of loans individually evaluated for impairment by loan type and the related interest income for the periods indicated:
Cash-basis interest income recognized represents cash received for interest payments on accruing impaired loans and interest recoveries on non-accrual loans that were paid off. Interest payments collected on non-accrual loans are characterized as payments of principal rather than payments of the outstanding accrued interest on the loans until the remaining principal on the non-accrual loans is considered to be fully collectible or paid off. When a loan is returned to accrual status, the interest payments that were previously applied to principal are deferred and amortized over the remaining life of the loan. Foregone interest income that would have been recognized had loans performed in accordance with their original terms amounted to $19 thousand and $23 thousand for the three months ended March 31, 2021 and 2020, respectively, and were not included in the consolidated results of operations. The following tables present the aging of the recorded investment in past due loans by loan type as of the periods indicated:
The following table presents the recorded investment in non-accrual loans by loan type as of the periods indicated:
There were no loans 90 days or more delinquent that were accruing interest as of March 31, 2021 or December 31, 2020. Troubled Debt Restructurings At March 31, 2021, loans classified as troubled debt restructurings (“TDRs”) totaled $4.1 million, of which $221 thousand were included in non-accrual loans and $3.9 million were on accrual status. At December 31, 2020, loans classified as TDRs totaled $4.2 million, of which $232 thousand were included in non-accrual loans and $4.0 million were on accrual status. The Company has allocated $136 thousand and $141 thousand of specific reserves for TDRs as of March 31, 2021 and December 31, 2020, respectively. TDRs on accrual status are comprised of loans that were accruing at the time of restructuring or loans that have complied with the terms of their restructured agreements for a satisfactory period of time and for which the Bank anticipates full repayment of both principal and interest. TDRs that are on non-accrual status can be returned to accrual status after a period of sustained performance, generally determined to be six months of timely payments, as modified. A well-documented credit analysis that supports a return to accrual status based on the borrower’s financial condition and prospects for repayment under the revised terms is also required. As of March 31, 2021 and December 31, 2020, the Company had no commitment to lend additional amounts to customers with outstanding loans that are classified as TDRs. No loans were modified during the three months ended March 31, 2021 and 2020. Credit Quality Indicators The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. For single family residential, consumer and other smaller balance homogenous loans, a credit grade is established at inception, and generally only adjusted based on performance. Information about payment status is disclosed elsewhere herein. The Company analyzes all other loans individually by classifying the loans as to credit risk. This analysis is performed at least on a quarterly basis. The Company uses the following definitions for risk ratings:
Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans. Pass rated loans are generally well protected by the current net worth and paying capacity of the obligor and/or by the value of the underlying collateral. Pass rated loans are not more than 59 days past due and are generally performing in accordance with the loan terms. Based on the most recent analysis performed, the risk categories of loans by loan type as of the periods indicated were as follows:
|
Junior Subordinated Debentures |
3 Months Ended |
---|---|
Mar. 31, 2021 | |
Junior Subordinated Debentures [Abstract] | |
Junior Subordinated Debentures | NOTE (6) – Junior Subordinated Debentures On March 17, 2004, the Company issued $6.0 million of Floating Rate Junior Subordinated Debentures (the “Debentures”) in a private placement to a trust that was capitalized to purchase subordinated debt and preferred stock of multiple community banks. Interest on the Debentures is payable quarterly at a rate per annum equal to the 3-Month LIBOR plus 2.54%. The interest rate is determined as of each March 17, June 17, September 17, and December 17, and was 2.72% at March 31, 2021. On October 16, 2014, the Company made payments of $900 thousand of principal on Debentures, executed a Supplemental Indenture for the Debentures that extended the maturity of the Debentures to March 17, 2024, and modified the payment terms of the remaining $5.1 million principal amount thereof. The modified terms of the Debentures required quarterly payments of interest only through March 2019 at the original rate of 3-Month LIBOR plus 2.54%. Starting in June 2019, the Company began making quarterly payments of equal amounts of principal, plus interest, and will continue until the Debentures are fully amortized on March 17, 2024. At March 31, 2021, the Company had repaid a total of $2.0 million of the scheduled principal. The Debentures may be called for redemption at any time by the Company. |
Fair Value |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value | NOTE (7) – Fair Value The Company used the following methods and significant assumptions to estimate fair value: The fair values of securities available-for-sale are determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs) or matrix pricing, which is a mathematical technique to value debt securities without relying exclusively on quoted prices for the specific securities, but rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2 inputs). The fair value of impaired loans that are collateral dependent is generally based upon the fair value of the collateral, which is obtained from recent real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Impaired loans are evaluated on a quarterly basis for additional impairment and adjusted accordingly. Assets acquired through or by transfer in lieu of loan foreclosure are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. These assets are subsequently accounted for at the lower of cost or fair value less estimated costs to sell. Fair value is commonly based on recent real estate appraisals which are updated every nine months. These appraisals may utilize a single valuation approach or a combination of approaches, including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Real estate owned properties are evaluated on a quarterly basis for additional impairment and adjusted accordingly. Appraisals for collateral-dependent impaired loans are performed by certified general appraisers (for commercial properties) or certified residential appraisers (for residential properties) whose qualifications and licenses have been reviewed and verified by the Company. Once received, an independent third-party licensed appraiser reviews the appraisals for accuracy and reasonableness, reviewing the assumptions and approaches utilized in the appraisal as well as the overall resulting fair value in comparison with independent data sources such as recent market data or industry-wide statistics. Assets Measured on a Recurring Basis Assets measured at fair value on a recurring basis are summarized below:
There were no transfers between Level 1, Level 2, or Level 3 during the three months ended March 31, 2021 and 2020. Assets Measured on a Non-Recurring Basis Assets are considered to be reflected at fair value on a non-recurring basis if the fair value measurement of the instrument does not necessarily result in a change in the amount recorded on the statement of condition. Generally, a non-recurring valuation is the result of the application of other accounting pronouncements that require assets to be assessed for impairment or recorded at the lower of cost or fair value. As of March 31, 2021 and December 31, 2020, the Bank did not have any impaired loans carried at fair value of collateral. Fair Values of Financial Instruments The following tables present the carrying amount, fair value, and placement in the fair value hierarchy of the Company’s financial instruments not recorded at fair value on a recurring basis as of March 31, 2021 and December 31, 2020. This table excludes financial instruments for which the carrying amount approximates fair value. For short-term financial assets such as cash and due from banks, interest-bearing deposits in other banks, and accrued interest receivable/payable, the carrying amount is a reasonable estimate of fair value due to the relatively short time between the origination of the instrument and its expected realization. For non-marketable equity securities such as Federal Home Loan Bank stock, the carrying amount is a reasonable estimate of fair value as these securities can only be redeemed or sold at their par value and only to the respective issuing government supported institution or to another member institution. For financial liabilities such as noninterest-bearing demand, interest-bearing demand, and savings deposits, the carrying amount is a reasonable estimate of fair value due to these products having no stated maturity.
In accordance with the adoption of ASU No. 2016-01, the fair value of certain financial assets and liabilities, including loans, time deposits, and junior subordinated debentures, as of March 31, 2021 was measured using an exit price notion. Although the exit price notion represents the value that would be received to sell an asset or paid to transfer a liability, the actual price received for a sale of assets or paid to transfer liabilities could be different from exit price disclosed. |
Stock-based Compensation |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based Compensation [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based Compensation | NOTE (8) – Stock-based Compensation The Long-Term Incentive Plan, which was adopted by the Company and approved by the stockholders in 2018 (the “LTIP”), permits the grant of non-qualified and incentive stock options, stock appreciation rights, full value awards and cash incentive awards. The plan is in effect for ten years. The maximum number of shares that can be awarded under the plan is 1,293,109 shares of common stock as of December 31, 2018. As of March 31, 2021, 490,007 shares had been awarded and 803,102 shares are available under the 2018 LTIP. In February 2021 and 2020, the Company awarded 20,736 and 30,930 shares of common stock, respectively, to its directors under the 2018 LTIP, which are fully vested. The Company recorded $45 thousand of compensation expense for each quarter ended March 31, 2021 and March 31, 2020, based on the fair value of the stock, which was determined using the average of the high and the low price of the stock on the date of the award. In February 2019, the Company awarded 428,797 shares of restricted stock to its officers and employees under the 2018 LTIP, of which 12,846 shares were forfeited. Each restricted stock award is valued based on the fair value of the stock, which was determined using the average of the high and the low price of the stock on the date of the award. These awarded shares of restricted stock are fully vested over a two-year period from their respective dates of grants. Stock based compensation expense is recognized on a straight-line basis over the vesting period. In February 2021, these awards fully vested, and the Company recorded $44 thousand of the related scheduled stock based compensation expense. In February 2020, the Company awarded 140,218 shares of restricted stock to its officers and employees under the 2018 LTIP. Each restricted stock award is valued based on the fair value of the stock, which was determined using the average of the high and the low price of the stock on the date of the award. These awarded shares of restricted stock fully vest over a two-year period from their respective dates of grant. Stock based compensation expense is recognized on a straight-line basis over the vesting period. As of March 31, 2021, these awards became fully vested as a result of the CFBanc Merger. During the quarter ended March 31, 2021, the Company recorded $119 thousand of stock based compensation expense related to these awards, of which $94 thousand related to early recognition of compensation cost as a result of the vesting of restricted stock awards in connection with the CFBanc Merger. At March 31, 2021, no restricted stock awards were outstanding, and during the first quarter ended March 31, 2021, the Company did not grant any restricted stock awards to its officers and employees. No stock options were granted during the three months ended March 31, 2021 and 2020. The following table summarizes stock option activity during the three months ended March 31, 2021 and 2020:
The Company recorded $6 thousand and $9 thousand of stock-based compensation expense related to stock options during the three months ended March 31, 2021 and 2020. In February 2021, these options became fully vested and all compensation cost was recognized. Options outstanding and exercisable at March 31, 2021 were as follows:
|
ESOP |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ESOP [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ESOP | NOTE (9) – ESOP Employees participate in the Employee Stock Ownership Plan (“ESOP”) after attaining certain age and service requirements. In December 2016, the ESOP purchased 1,493,679 shares of the Company’s common stock at $1.59 per share, for a total cost of $2.4 million, of which $1.2 million was funded with a loan from the Company. The loan will be repaid from the Bank’s annual discretionary contributions to the ESOP, net of dividends paid, over a period of 20 years. Shares of the Company’s common stock purchased by the ESOP are held in a suspense account until released for allocation to participants. When loan payments are made, shares are allocated to each eligible participant based on the ratio of each such participant’s compensation, as defined in the ESOP, to the total compensation of all eligible plan participants. As the unearned shares are released from the suspense account, the Company recognizes compensation expense equal to the fair value of the ESOP shares during the periods in which they become committed to be released. To the extent that the fair value of the ESOP shares released differs from the cost of such shares, the difference is charged or credited to equity as additional paid-in capital. Any dividends on allocated shares increase participant accounts. Any dividends on unallocated shares will be used to repay the loan. Participants will receive shares for their vested balance at the end of their employment. Compensation expense related to the ESOP was $23 thousand and $17 thousand for the three months ended March 31, 2021 and 2020, respectively. Shares held by the ESOP were as follows:
At March 31, 2021, 20,472 of ESOP shares were committed to be allocated to participants during 2021. During 2020 and 2019, 41,665 and 43,321 of ESOP shares were released for allocation to participants, respectively. Unearned shares, which are reported as Unearned ESOP shares in the equity section of the consolidated statements of financial condition, were $877 thousand and $893 thousand at March 31, 2021 and December 31, 2020, respectively. |
Regulatory Matters |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Regulatory Matters [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Regulatory Matters | NOTE (10) – Regulatory Matters The Bank’s capital requirements are administered by the Office of the Comptroller of the Currency (“OCC”) and involve quantitative measures of assets, liabilities, and certain off-balance sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by the OCC. Failure to meet capital requirements can result in regulatory action. The federal banking regulators approved final capital rules (“Basel III Capital Rules”) in July 2013 implementing the Basel III framework as well as certain provisions of the Dodd-Frank Act. The Basel III Capital Rules prescribe a standardized approach for calculating risk-weighted assets and revised the definition and calculation of Tier 1 capital and Total capital, and include a new Common Equity Tier 1 capital (“CET1”) measure. Under the Basel III Capital Rules, the currently effective minimum capital ratios are:
A capital conservation buffer was also established above the regulatory minimum capital requirements. This capital conservation buffer was phased in beginning January 1, 2016 at 0.625% of risk-weighted assets and increased each subsequent year by an additional 0.625% until it reached its final level of 2.5% on January 1, 2019. The Basel III Capital rules also contain revisions to the prompt corrective action framework, which is designed to place restrictions on insured depository institutions if their capital levels begin to show signs of weakness. Under the prompt corrective action requirements, which are designed to complement the capital conservation buffer, insured depository institutions are now required to meet the following increased capital level requirements in order to qualify as “well capitalized”: (i) a CET1 capital ratio of 6.5%; (ii) a Tier 1 capital ratio of 8% (increased from 6%); (iii) a total capital ratio of 10% (unchanged from previous rules); and (iv) a Tier 1 leverage ratio of 5% (unchanged from previous rules). The Basel III Capital Rules became effective for the Bank on January 1, 2015 (subject to a phase-in period for certain provisions). At March 31, 2021 and December 31, 2020, the Bank’s level of capital exceeded all regulatory capital requirements and its regulatory capital ratios were above the minimum levels required to be considered well capitalized for regulatory purposes. Actual and required capital amounts and ratios as of the periods indicated are presented below.
At March 31, 2021 and December 31, 2020, the Bank did not opt into the Community Bank Leverage Ratio framework. |
Income Taxes |
3 Months Ended |
---|---|
Mar. 31, 2021 | |
Income Taxes [Abstract] | |
Income Taxes | NOTE (11) – Income Taxes The Company and its subsidiary are subject to U.S. federal and state income taxes. Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion, or all, of the deferred tax asset will not be realized. In assessing the realization of deferred tax assets, management evaluated both positive and negative evidence, including the existence of cumulative losses in the current year and the prior two years, the amount of taxes paid in available carry-back years, the forecasts of future income and tax planning strategies. Based on this analysis, the Company determined that no valuation allowance was required on its deferred tax assets, which totaled $7.1 million and $5.6 million as of March 31, 2021 and December 31, 2020. The Company expects to record an impairment allowance on its deferred tax assets during the second quarter of 2021 because the number of shares sold in the private placements completed on April 6, 2021 exceeded the threshold under the federal tax code that triggers limitations on the use of those assets. Based on currently available data and the stock price on the merger date, the write-down is expected to be approximately $700 thousand. |
Concentration of Deposit Risk |
3 Months Ended |
---|---|
Mar. 31, 2021 | |
Concentration of Deposit Risk [Abstract] | |
Concentration of Deposit Risk | NOTE (12) – Concentration of Deposit Risk The Bank has a significant concentration of deposits with two customers that accounted for approximately 13% of its deposits as of March 31, 2021. The Bank expects to maintain the relationships with these customers for the foreseeable future. |
Basis of Financial Statement Presentation (Policies) |
3 Months Ended |
---|---|
Mar. 31, 2021 | |
Basis of Financial Statement Presentation [Abstract] | |
Consolidation | The accompanying unaudited consolidated financial statements include Broadway Financial Corporation (the “Company”) and its wholly owned subsidiary, Broadway Federal Bank, f.s.b. (the “Bank”, and collectively, with the Company, “Broadway”). Also included in the unaudited consolidated financial statements is Broadway Service Corporation, a wholly owned subsidiary of the Bank. All significant intercompany balances and transactions have been eliminated in consolidation. |
Basis of Presentation | The unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions for quarterly reports on Form 10-Q. These unaudited consolidated financial statements do not include all disclosures associated with the Company’s consolidated annual financial statements included in its Annual Report on Form 10-K for the year ended December 31, 2020 and, accordingly, should be read in conjunction with such audited consolidated financial statements. In the opinion of management, all adjustments (all of which are normal and recurring in nature) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021. See Note 2. |
Accounting Pronouncements to Be Adopted and Accounting Pronouncements Yet to Be Adopted | Accounting Pronouncements to Be Adopted In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2020-04, Reference Rate Reform (Topic 848), Facilitation of the Effects of Reference Rate Reform on Financial Reporting. This ASU provides optional expedients and exceptions regarding the accounting related to the modifications of certain contracts, relationships and other transactions that are affected by reference rate reform related to contracts that reference LIBOR or other reference rates that could be discontinued due to reference rate reform. This guidance was effective immediately and the amendments may be applied prospectively through December 31, 2022. The estimated financial impact has not yet been determined. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740), Simplifying the Accounting for Income Taxes. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. The amendments in this ASU are intended to simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments are also intended to improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. The guidance did not have a significant impact on the Company’s consolidated financial statements. Accounting Pronouncements Yet to Be Adopted – In June 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” ASU 2016-13 replaces the incurred loss model with an expected loss model, which is referred to as the current expected credit loss (“CECL”) model. The CECL model is applicable to the measurement of credit losses on financial assets measured at amortized cost, including loan receivables, held-to-maturity debt securities, and reinsurance receivables. It also applies to off-balance sheet credit exposures not accounted for as insurance (such as loan commitments, standby letters of credit, financial guarantees, and other similar instruments) and net investments in leases recognized by a lessor. For debt securities with other-than-temporary impairment, the guidance will be applied prospectively. Existing purchased credit impaired (“PCI”) assets will be grandfathered and classified as purchased credit deteriorated (“PCD”) assets at the date of adoption. The asset will be grossed up for the allowance for expected credit losses for all PCD assets at the date of adoption and the noncredit discount in interest income based on the yield of such assets as of the adoption date. Subsequent changes in expected credit losses will be recorded through the allowance. For all other assets within the scope of CECL, a cumulative-effect adjustment will be recognized in retained earnings as of the beginning of the first reporting period in which the guidance is effective. On October 16, 2019, the FASB voted to affirm the proposed amended effective date for ASU 2016-13 for smaller reporting companies (“SRCs”) as defined by the SEC. The final ASU, which was issued in November 2019, delays the implementation date for ASU 2016-13 to fiscal years beginning after December 15, 2022. SRCs are defined as companies with less than $250 million of public float or less than $100 million in annual revenues for the previous year and no public float or public float of less than $700 million. The Company qualifies as an SRC, and management will implement ASU 2016-13 in the first quarter of 2023. The estimated financial impact has not yet been determined. In April 2019, the FASB issued ASU No. 2019-04, Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments. This ASU is effective January 1, 2020 and clarifies the scope of the credit losses standard and addresses issues related to accrued interest receivable balances, recoveries, variable interest rates and prepayments, among other things. The amendments to Topic 326 have the same effective dates as ASU 2016-13. This guidance did not have a significant impact on the Company’s consolidated financial statements. In May 2019, the FASB issued ASU No. 2019-05, Financial Instruments - Credit Losses (Topic 326): Targeted Transition Relief. This ASU allows entities to irrevocably elect the fair value option on an instrument-by-instrument basis for eligible financial assets measured at amortized cost basis upon adoption of the credit loss standards. The effective date for this ASU is the same as for ASU 2016-13. We will evaluate this ASU in conjunction with ASU 2016-13 to determine its impact on our financial condition and results of operations. |
Acquisition of CFBanc Corporation (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition of CFBanc Corporation [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unaudited Pro Forma Information | The unaudited pro forma information in the following table is intended for informational purposes only and is not necessarily indicative of future operating results or operating results that would have occurred had the mergers been completed at the beginning of each respective year. No assumptions have been applied to the pro forma results of operations regarding possible revenue enhancements, expense efficiencies or asset dispositions.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock Issued Result of Merger and Result of Private Placements by Class | The following table shows the common stock issued on April 1, 2021 as a result of the merger and on April 6, 2021 as a result of the private placements by class:
|
Loss Per Share of Common Stock (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Per Share of Common Stock [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basic and Diluted Earnings Per Share of Common Stock | The following table shows how the Company computed basic and diluted earnings per share of common stock for the periods indicated:
|
Securities (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-Sale Investment Securities Portfolios | The following table summarizes the amortized cost and fair value of the available-for-sale investment securities portfolios as of the periods indicated and the corresponding amounts of unrealized gains which were recognized in accumulated other comprehensive income:
|
Loans Receivable Held for Investment (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans Receivable Held for Investment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans Receivable Held for Investment | Loans receivable held for investment were as follows as of the periods indicated:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Activity in Allowance for Loan Losses by Loan Type | The following tables present the activity in the allowance for loan losses by loan type for the periods indicated:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for Loan Losses and Recorded Investment in Loans by Type of Loans and Based on Impairment Method | The following tables present the balance in the allowance for loan losses and the recorded investment (unpaid contractual principal balance less charge-offs, less interest applied to principal, plus unamortized deferred costs and premiums) by loan type and based on impairment method as of and for the periods indicated:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans Individually Evaluated for Impairment by Loan Type | The following table presents information related to loans individually evaluated for impairment by loan type as of the periods indicated:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Average of Loans Individually Evaluated for Impairment by Loan Type and Related Interest Income | The following tables present the monthly average of loans individually evaluated for impairment by loan type and the related interest income for the periods indicated:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Aging of Recorded Investment in Past Due Loans by Loan Type | The following tables present the aging of the recorded investment in past due loans by loan type as of the periods indicated:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recorded Investment in Non-accrual Loans by Loan Type | The following table presents the recorded investment in non-accrual loans by loan type as of the periods indicated:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Risk Categories of Loans by Loan Type | Based on the most recent analysis performed, the risk categories of loans by loan type as of the periods indicated were as follows:
|
Fair Value (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets Measured on Recurring Basis | Assets measured at fair value on a recurring basis are summarized below:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Values of Financial Instruments | For financial liabilities such as noninterest-bearing demand, interest-bearing demand, and savings deposits, the carrying amount is a reasonable estimate of fair value due to these products having no stated maturity.
|
Stock-based Compensation (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based Compensation [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Stock Option Activity | The following table summarizes stock option activity during the three months ended March 31, 2021 and 2020:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Options Outstanding and Exercisable | Options outstanding and exercisable at March 31, 2021 were as follows:
|
ESOP (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ESOP [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares Held by ESOP | Shares held by the ESOP were as follows:
|
Regulatory Matters (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Regulatory Matters [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Actual and Required Capital Amounts and Ratios | Actual and required capital amounts and ratios as of the periods indicated are presented below.
|
Loss Per Share of Common Stock (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Earnings Per Share Reconciliation [Abstract] | ||
Net loss | $ (3,487) | $ (33) |
Less net income attributable to participating securities | 0 | 0 |
Net loss available to common stockholders | $ (3,487) | $ (33) |
Weighted average common shares outstanding for basic earnings per common share (in shares) | 27,357,750 | 26,962,317 |
Add: dilutive effects of assumed exercises of stock options (in shares) | 0 | 0 |
Weighted average common shares outstanding for diluted earnings per common share (in shares) | 27,357,750 | 26,962,317 |
Loss per common share-basic (in dollars per share) | $ (0.13) | $ 0 |
Loss per common share-diluted (in dollars per share) | $ (0.13) | $ 0 |
Stock Options [Member] | ||
Earnings Per Share of Common Stock [Abstract] | ||
Anti-dilutive stock not considered in computing diluted earnings per common share (in shares) | 450,000 | 455,000 |
Loans Receivable Held for Investment, Recorded Investment in Non-accrual Loans by Loan Type (Details) - USD ($) $ in Thousands |
Mar. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Loans Receivable Held for Investment [Abstract] | ||
Total non-accrual loans | $ 760 | $ 787 |
Loans 90 days or more delinquent that were accruing interest | 0 | 0 |
Real Estate [Member] | Single Family [Member] | ||
Loans Receivable Held for Investment [Abstract] | ||
Total non-accrual loans | 0 | 1 |
Real Estate [Member] | Church [Member] | ||
Loans Receivable Held for Investment [Abstract] | ||
Total non-accrual loans | $ 760 | $ 786 |
Loans Receivable Held for Investment, Troubled Debt Restructurings (Details) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2021
USD ($)
Loan
|
Mar. 31, 2020
Loan
|
Dec. 31, 2020
USD ($)
|
|
Troubled Debt Restructurings [Abstract] | |||
Loans classified as troubled debt restructurings | $ 4,100 | $ 4,200 | |
Specific reserves allocated to TDRs | $ 136 | 141 | |
Timely payment period for return to accrual status | 6 months | ||
Commitments to lend additional amounts to customers with TDRs | $ 0 | 0 | |
Number of loans modified | Loan | 0 | 0 | |
Non-accrual Status [Member] | |||
Troubled Debt Restructurings [Abstract] | |||
Loans classified as troubled debt restructurings | $ 221 | 232 | |
Accrual Status [Member] | |||
Troubled Debt Restructurings [Abstract] | |||
Loans classified as troubled debt restructurings | $ 3,900 | $ 4,000 |
Junior Subordinated Debentures (Details) - USD ($) $ in Thousands |
3 Months Ended | ||||
---|---|---|---|---|---|
Oct. 16, 2014 |
Mar. 31, 2021 |
Mar. 31, 2020 |
Dec. 31, 2020 |
Mar. 17, 2004 |
|
Debt Instrument [Abstract] | |||||
Junior subordinated debentures | $ 3,060 | $ 3,315 | |||
Payment of principal amount | $ 255 | $ 255 | |||
Floating Rate Junior Subordinated Debentures [Member] | |||||
Debt Instrument [Abstract] | |||||
Junior subordinated debentures | $ 5,100 | ||||
Basis spread term | 3 months | ||||
Effective interest rate percentage on debentures | 2.72% | ||||
Payment of principal amount | $ 900 | ||||
Debt instrument, maturity date | Mar. 17, 2024 | ||||
Scheduled principal payment | $ 2,000 | ||||
Floating Rate Junior Subordinated Debentures [Member] | 3-Month LIBOR [Member] | |||||
Debt Instrument [Abstract] | |||||
Basis spread | 2.54% | ||||
Private Placement [Member] | Floating Rate Junior Subordinated Debentures [Member] | |||||
Debt Instrument [Abstract] | |||||
Junior subordinated debentures | $ 6,000 |
Fair Value, Assets Measured on Non-Recurring Basis (Details) - USD ($) $ in Thousands |
Mar. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Non-Recurring Basis [Member] | Impaired Loans Carried at Fair Value of Collateral [Member] | ||
Assets Measured on Non-Recurring Basis [Abstract] | ||
Assets, fair value | $ 0 | $ 0 |
ESOP (Details) - USD ($) $ / shares in Units, $ in Thousands |
1 Months Ended | 3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Dec. 31, 2016 |
Mar. 31, 2021 |
Mar. 31, 2020 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
ESOP [Abstract] | |||||
Number of common stock purchased by ESOP (in shares) | 1,493,679 | ||||
Purchase price of common stock (in dollars per share) | $ 1.59 | ||||
Total cost of shares purchased by ESOP | $ 2,400 | ||||
Loan to ESOP | $ 1,200 | ||||
Term of ESOP loan | 20 years | ||||
Compensation expense related to ESOP | $ 23 | $ 17 | |||
Shares Held by ESOP [Abstract] | |||||
Allocated to participants (in shares) | 1,065,275 | 1,065,275 | |||
Committed to be released (in shares) | 20,472 | 10,236 | |||
Suspense shares (in shares) | 552,155 | 562,391 | |||
Total ESOP shares (in shares) | 1,637,902 | 1,637,902 | |||
Fair value of unearned shares | $ 1,268 | $ 1,040 | |||
Shares released for allocation (in shares) | 20,472 | 41,665 | 43,321 | ||
Unearned ESOP shares | $ 877 | $ 893 |
Income Taxes (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Jun. 30, 2021 |
Mar. 31, 2021 |
Dec. 31, 2020 |
|
Valuation Allowance [Abstract] | |||
Cumulative losses lookback period | 2 years | ||
Valuation allowance | $ 0 | $ 0 | |
Net deferred tax assets | $ 7,100 | $ 5,600 | |
Forecast [Member] | |||
Valuation Allowance [Abstract] | |||
Deferred tax assets, impairment allowance | $ 700 |
Concentration of Deposit Risk (Details) - Deposits [Member] - Customer Concentration Risk [Member] |
3 Months Ended |
---|---|
Mar. 31, 2021
Customer
| |
Concentration Percentage [Abstract] | |
Number of significant customers | 2 |
Two Customers [Member] | |
Concentration Percentage [Abstract] | |
Percentage of concentration risk | 13.00% |
Z!U5/YI;H>\6
MO9>"5;26C-= T,WE[#T\7^/,#&@M_F;T41Y= Q/*/><_S 2LF)U'.( 56
M>]9)>:,/P/R]@-L@K%CK:XK3K"OB*V<-/F=I6;#B7(E9;KF&D? 8)<+8@/5T
M,Z G!-5M ;S6@6?0@"+_9C;TK)
M7D X<8MX%O2FQ BX]9>@U*;B\[^;)H&7N3[-'(7T,L7O4UFV5N69',V";W
MGSBUBX/5OW =*2H!"\/ FSE@B1>2L9_,($B].(D]GP(>*=&'[LTACHB,OI>F
M\6&>P=2;IC,O22:0!%Y"28>I?Y0TXX-7@4O=OGTH0=D(TSX0AMWA>77=OBKV
MZNW;C)I'=ZN&$C=DZE\F-/^J?>^T"R-K]\982T,O%B<6]$1$917H?".EZ1 _(SPW-F
M.)S19"ODDTH!-'G),ZZF3JIU<>VZ*DXAI^I2%,#QS5K(G&J 5P*+!0
MTQD !D !X;"]W;W)K 1+U]N>2B.UP,\
M>#WQ&&RV*CTQ6LQW_H8_5]]R#UT:B,L@HB'B>!B)'DZ^O!#;ZZ\Z9I@TSQ
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MC[;$ =G8L,
MAM(4IG0_,CA W:P4'!K64L )+\NL@R6>X2]:-+
M OFM%$T4"J]"YF^F!%_-=% R]JL91&$&S#9R2C(4!TJLQP\OZU/5X/S0\W&H=J'@9K4KBI3]]G*
M_.:!E(MYRI!I0#
MZA9P;?B\%W5+BL+R3)S1U74=#VO8"[Q19P:;FZ9KH%?@#U'P-XT_EH,DV.
M'/;3$8L$,;C#,\)!2>^ZX0$?D\@DM.]]C:<)/SUH;G*<:6WE8)??.FX1-;J\
M]N&G&.)SW+*N2LJ%3;#SSGN@*!+/0.R#B
#*XO-WPE?A/V]\V=QFG0:LED(4HC5
:!F^B Z<;7W H-M(P,T#!N#H+GJDUP:N@LY\XGI#
MA?6UMDYH
M6IJCTO7EH1Z:A6J=2H,.@V"@Q-A3*SF\V
8DF71E*-,
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M!T=)/K/N,Z%^C52][/HF_+F)9%2,
>Z4UG5@3;%LAK[=\AMBQF]A?RDW8IG"_!XNA<.RF\)=P
MTY&00K>#/T93/]N*C ;W]8"=&G:YK)R/QXF?.6*
M88C^4%LN^R" &5@S[UR/' R4&0SE?@\=;.2RY@3TKKJ983*#F7P2 .R"N[F1
M."1MJ]E0G<$U>4?Z=Q?CH*1NRF">P9COE_XVPBUOD*3^4,E WH,AWYW^GLWI
MYCU&AZ1E\7D&Y!X,\G3GWT?]4MXS)/;(F5+>,\3U8.+V2GG/!FHS?T!)W9M!
MK@
Y'
MG/0C3MKZJ*>^3;Y/\KO!D+Z-T_;U35V7R?98M].@+KKA^N/-MJI+=3[_"1R;
M]L>F[;&9Y]COU+$?DOTQ3M//2#[$Z3&NY6FZ)?U,<(WOJ5K15MMDW\,5IN)B
M^3 <1(>&X5XS\LMZOPSTJ^*G3;0'>:;?4[5\X(4&X