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
|
|
|
|
(State or other jurisdiction of
incorporation or organization)
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(I.R.S. Employer
Identification No.)
|
|
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(Address of principal executive offices)
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(Zip Code)
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Title of each class:
|
Trading Symbol(s)
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Name of each exchange on which registered:
|
||
(including attached preferred stock purchase rights)
|
|
|
Large accelerated filer
|
☐
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Accelerated filer
|
☐
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|
☒
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Smaller reporting company
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Emerging growth company
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TABLE OF CONTENTS
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|||
Page
|
|||
PART I.
|
FINANCIAL STATEMENTS
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|
|
Item 1.
|
Consolidated Financial Statements (Unaudited)
|
||
1
|
|||
2
|
|||
3
|
|||
4
|
|||
Notes to Consolidated Financial Statements | 5 | ||
Item 2.
|
20 | ||
Item 3.
|
29 | ||
Item 4.
|
29
|
||
PART II.
|
OTHER INFORMATION
|
||
Item 1.
|
30 |
||
Item 1A.
|
30 | ||
Item 2.
|
30 | ||
Item 3.
|
30
|
||
Item 4.
|
30
|
||
Item 5.
|
30
|
||
Item 6.
|
30
|
||
31
|
March 31, 2022
|
December 31, 2021
|
|||||||
(Unaudited)
|
||||||||
Assets:
|
||||||||
Cash and due from banks
|
$
|
|
$
|
|
||||
Interest-bearing deposits in other banks
|
|
|
||||||
Cash and cash equivalents
|
|
|
||||||
Securities available-for-sale, at fair value
|
|
|
||||||
Loans receivable held for investment, net of allowance of $
|
|
|
||||||
Accrued interest receivable
|
|
|
||||||
Federal Home Loan Bank (“FHLB”) stock
|
|
|
||||||
Federal Reserve Bank (FRB) stock
|
||||||||
Office properties and equipment, net
|
|
|
||||||
Bank owned life insurance
|
|
|
||||||
Deferred tax assets, net
|
|
|
||||||
Core deposit intangible, net
|
||||||||
Goodwill
|
||||||||
Other assets
|
|
|
||||||
Total assets
|
$
|
|
$
|
|
||||
Liabilities and stockholders’ equity
|
||||||||
Liabilities:
|
||||||||
Deposits
|
$
|
|
$
|
|
||||
Securities sold under agreements to repurchase |
||||||||
FHLB advances
|
|
|
||||||
Notes payable
|
||||||||
Accrued expenses and other liabilities
|
|
|
||||||
Total liabilities
|
|
|
||||||
Cumulative Redeemable Perpetual Preferred stock, Series A, authorized
|
|
|
||||||
Common stock, Class A, $
|
|
|
||||||
Common stock, Class B, $
|
||||||||
Common stock, Class C, $
|
|
|
||||||
Additional paid-in capital
|
|
|
||||||
Retained earnings
|
|
|
||||||
Unearned Employee Stock Ownership Plan (ESOP) shares
|
(
|
)
|
(
|
)
|
||||
Accumulated other comprehensive loss, net of tax
|
(
|
)
|
(
|
)
|
||||
Treasury stock-at cost,
|
(
|
)
|
(
|
)
|
||||
Total Broadway Financial Corporation and Subsidiary stockholders’ equity
|
|
|
||||||
Non-controlling interest
|
||||||||
Total liabilities and stockholders’ equity
|
$
|
|
$
|
|
|
Three Months Ended
March 31,
|
|||||||
|
2022
|
2021
|
||||||
|
(In
thousands, except per share)
|
|||||||
Interest income:
|
||||||||
Interest and fees on loans receivable
|
$
|
|
$
|
|
||||
Interest on investment securities
|
|
|
||||||
Other interest income
|
|
|
||||||
Total interest income
|
|
|
||||||
|
||||||||
Interest expense:
|
||||||||
Interest on deposits
|
|
|
||||||
Interest on borrowings
|
|
|
||||||
Total interest expense
|
|
|
||||||
|
||||||||
Net interest income
|
|
|
||||||
Loan loss provision
|
|
|
||||||
Net interest income after loan loss provision
|
|
|
||||||
|
||||||||
Non-interest income:
|
||||||||
Service charges
|
|
|
||||||
Other
|
|
|
||||||
Total non-interest income
|
|
|
||||||
|
||||||||
Non-interest expense:
|
||||||||
Compensation and benefits
|
|
|
||||||
Occupancy expense
|
|
|
||||||
Information services
|
|
|
||||||
Professional services
|
|
|
||||||
Office services and supplies
|
|
|
||||||
Corporate insurance
|
|
|
||||||
Amortization of investment in affordable housing limited partnership
|
|
|
||||||
Amortization of core deposit intangible
|
|
|
||||||
Other
|
|
|
||||||
Total non-interest expense
|
|
|
||||||
|
||||||||
Income (loss) before income taxes
|
|
(
|
)
|
|||||
Income tax expense (benefit)
|
|
(
|
)
|
|||||
Net income (loss)
|
$
|
|
$
|
(
|
)
|
|||
Less: Net income attributable to non-controlling interest
|
|
|
||||||
Net income (loss) attributable to Broadway Financial Corporation
|
$
|
|
$
|
(
|
)
|
|||
|
||||||||
Other comprehensive loss, net of tax:
|
||||||||
Unrealized loss on securities available-for-sale arising during the period
|
$
|
(
|
)
|
$
|
(
|
)
|
||
Income tax benefit
|
(
|
)
|
(
|
)
|
||||
Other comprehensive loss, net of tax
|
(
|
)
|
(
|
)
|
||||
|
||||||||
Comprehensive loss
|
$
|
(
|
)
|
$
|
(
|
)
|
||
|
||||||||
Income (loss) per common share-basic
|
$
|
|
$
|
(
|
)
|
|||
Income (loss) per common share-diluted
|
$
|
|
$
|
(
|
)
|
|
Three
Months Ended
March 31,
|
|||||||
|
2022
|
2021
|
||||||
|
(In
thousands)
|
|||||||
Cash
flows from operating activities:
|
||||||||
Net income (loss)
|
$
|
|
$
|
(
|
)
|
|||
Adjustments to reconcile net income (loss) to net cash used in operating activities:
|
||||||||
Loan loss provision
|
|
|
||||||
Depreciation
|
|
|
||||||
Net change in amortization of deferred loan origination costs
|
(
|
)
|
(
|
)
|
||||
Net amortization of premiums on available for sale securities
|
|
|
||||||
Amortization of core deposit intangible
|
|
|
||||||
Amortization of purchase accounting marks on loans
|
(
|
)
|
||||||
Director compensation expense-common stock
|
|
|
||||||
Accretion of premium on FHLB advances
|
(
|
)
|
|
|||||
Stock-based compensation expense
|
|
|
||||||
ESOP compensation expense
|
|
|
||||||
Change in deferred taxes on goodwill
|
|
|
||||||
Earnings on bank owned life insurance
|
(
|
)
|
(
|
)
|
||||
Change in assets and liabilities:
|
||||||||
Net change in deferred taxes
|
|
(
|
)
|
|||||
Net change in accrued interest receivable
|
|
|
||||||
Net change in other assets
|
(
|
)
|
(
|
)
|
||||
Net change in other liabilities
|
(
|
)
|
|
|||||
Net cash used in operating activities
|
(
|
)
|
(
|
)
|
||||
|
||||||||
Cash flows from investing activities:
|
||||||||
Net change in loans receivable held for investment
|
(
|
)
|
(
|
)
|
||||
Principal payments on available-for-sale securities
|
|
|
||||||
Purchase of available-for-sale securities
|
(
|
)
|
|
|||||
Proceeds from redemption of FHLB stock
|
|
|
||||||
Purchase of office properties and equipment
|
(
|
)
|
(
|
)
|
||||
|
||||||||
Net cash used in investing activities
|
(
|
)
|
(
|
)
|
||||
|
||||||||
Cash flows from financing activities:
|
||||||||
Net change in deposits
|
|
(
|
)
|
|||||
Net increase in securities sold under agreements to repurchase
|
|
|
||||||
Dividends paid on preferred stock
|
(
|
)
|
|
|||||
Repayments of FHLB advances
|
(
|
)
|
|
|||||
Stock cancelled for income tax withholding
|
|
(
|
)
|
|||||
Repayments of junior subordinated debentures
|
|
(
|
)
|
|||||
Net cash provided by (used in) financing activities
|
|
(
|
)
|
|||||
Net change in cash and cash equivalents
|
|
(
|
)
|
|||||
Cash and cash equivalents at beginning of the period
|
|
|
||||||
Cash and cash equivalents at end of the period
|
$
|
|
$
|
|
||||
|
||||||||
Supplemental disclosures of cash flow information:
|
||||||||
Cash paid for interest
|
$ |
$
|
|
|||||
Cash paid for income taxes
|
|
|||||||
Supplemental disclosures of non-cash investing and financing activities:
|
||||||||
Conversion of preferred shares into Class A common shares
|
|
Three Months Ended March 31, 2022 and 2021
|
|||||||||||||||||||||||||||||||||||||||
|
Preferred Stock Non-Voting
|
Common
Stock
Voting
|
Common
Stock Non-Voting
|
Additional
Paid‑in
Capital
|
Accumulated Other Comprehensive Income (Loss)
|
Retained Earnings (Substantially Restricted)
|
Unearned
ESOP Shares
|
Treasury
Stock
|
Non-controlling Interest
|
Total
Stockholders’
Equity
|
||||||||||||||||||||||||||||||
|
(In thousands)
|
|||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2022
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
$
|
|
|||||||||||||||||
Net income for the three months ended March 31, 2022
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||
Conversion of preferred stock into common stock
|
(
|
)
|
|
|
|
|
||||||||||||||||||||||||||||||||||
Conversion of non-voting common shares into voting common shares
|
|
(
|
)
|
|
||||||||||||||||||||||||||||||||||||
Release of unearned ESOP shares
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||
Dividends paid on preferred stock
|
|
|
|
|
|
(
|
)
|
|
|
|
(
|
)
|
||||||||||||||||||||||||||||
Stock awarded to directors
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||
Restricted stock compensation expense
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||
Other comprehensive loss, net of tax
|
|
|
|
|
(
|
)
|
|
|
|
|
(
|
)
|
||||||||||||||||||||||||||||
Balance at March 31, 2022
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
$
|
|
|||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2021
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
$
|
|
||||||||||||||||||
Net loss for the three months ended March 31, 2021
|
|
|
|
|
|
(
|
)
|
|
|
|
(
|
)
|
||||||||||||||||||||||||||||
Release of unearned ESOP shares
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||
Restricted stock compensation expense
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||
Common stock cancelled for payment of tax withholding
|
|
(
|
)
|
|
(
|
)
|
|
|
|
|
|
(
|
)
|
|||||||||||||||||||||||||||
Stock awarded to directors
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||
Stock option compensation expense
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||
Other comprehensive loss, net of tax
|
|
|
|
|
(
|
)
|
|
|
|
|
(
|
)
|
||||||||||||||||||||||||||||
Balance at March 31, 2021
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
$
|
|
CFBanc
Book
Value
|
Fair Value
Adjustments
|
Fair Value
|
||||||||||
Assets acquired
|
(In thousands) |
|||||||||||
Cash and cash equivalents
|
$
|
|
$
|
|
$
|
|
||||||
Securities available-for-sale
|
|
(
|
)
|
|
||||||||
Loans receivable held for investment:
|
||||||||||||
Gross loans receivable held for investment
|
|
(
|
)
|
|
||||||||
Deferred fees and costs
|
(
|
)
|
|
|
||||||||
Allowance for loan losses
|
(
|
)
|
|
|
||||||||
|
|
|
||||||||||
Accrued interest receivable
|
|
|
|
|||||||||
FHLB and FRB stock
|
|
|
|
|||||||||
Office properties and equipment
|
|
|
|
|||||||||
Deferred tax assets, net
|
|
(
|
)
|
(
|
)
|
|||||||
Core deposit intangible
|
|
|
|
|||||||||
Other assets
|
|
|
|
|||||||||
Total assets
|
$
|
|
$
|
|
$
|
|
||||||
Liabilities assumed
|
||||||||||||
Deposits
|
$
|
|
$
|
|
$
|
|
||||||
Securities sold under
agreements to repurchase |
||||||||||||
FHLB advances
|
|
|
|
|||||||||
Notes payable
|
|
|
|
|||||||||
Accrued expenses and other liabilities
|
|
|
|
|||||||||
Total liabilities
|
$
|
|
$
|
|
$
|
|
||||||
Excess of assets acquired over liabilities assumed
|
$
|
|
$
|
|
$
|
|
||||||
Consideration paid
|
$
|
|
||||||||||
Goodwill recognized
|
$
|
|
Acquired Loans
|
||||
(In thousands)
|
||||
Contractual amounts due
|
$
|
|
||
Cash flows not expected to be collected
|
(
|
)
|
||
Expected cash flows
|
|
|||
Interest component of expected cash flows
|
(
|
)
|
||
Fair value of acquired loans
|
$
|
|
Contractual amounts due
|
$
|
|
||
Non-accretable difference (cash flows not expected to be collected)
|
(
|
)
|
||
Expected cash flows
|
|
|||
Accretable yield
|
(
|
)
|
||
Fair value of PCI acquired loans
|
$
|
|
Three months Ended
|
||||||||
March 31,
2022
|
March 31,
2021
|
|||||||
(Dollars in thousands, except per share amounts)
|
||||||||
Net interest income
|
$
|
|
$
|
|
||||
Net income (loss)
|
|
(
|
)
|
|||||
Basic earnings per share
|
$
|
|
$
|
(
|
)
|
|||
Diluted earnings per share
|
$
|
|
$
|
(
|
)
|
For the three months ended
March 31,
|
||||||||
2022
|
2021
|
|||||||
(In thousands, except share and
per share data)
|
||||||||
Net income (loss) attributable to Broadway Financial Corporation
|
$
|
|
$
|
(
|
)
|
|||
Less net income attributable to participating securities
|
|
|
||||||
Income (loss) available to common stockholders
|
$
|
|
$
|
(
|
)
|
|||
Weighted average common shares outstanding for basic earnings (loss) per common share
|
|
|
||||||
Add: dilutive effects of stock options |
||||||||
Add: dilutive effects of unvested restricted stock awards
|
|
|
||||||
Weighted average common shares outstanding for diluted earnings (loss) per common share
|
|
|
||||||
Income (loss) per common share - basic
|
$
|
|
$
|
(
|
)
|
|||
Income (loss) per common share - diluted
|
$
|
|
$
|
(
|
)
|
Amortized
Cost |
Gross Unrealized Gains
|
Gross Unrealized Losses
|
Fair Value
|
|||||||||||||
(In thousands)
|
||||||||||||||||
March 31, 2022:
|
||||||||||||||||
Federal agency mortgage-backed securities
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||||
Federal agency collateralized mortgage obligations (“CMO”)
|
( |
) | ||||||||||||||
Federal agency debt
|
|
|
(
|
)
|
|
|||||||||||
Municipal bonds
|
|
|
(
|
)
|
|
|||||||||||
U. S. Treasuries
|
|
|
(
|
)
|
|
|||||||||||
SBA pools
|
|
|
(
|
)
|
|
|||||||||||
Total available-for-sale securities
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||||
December 31, 2021:
|
||||||||||||||||
Federal agency mortgage-backed securities
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||||
Federal agency CMOs |
( |
) | ||||||||||||||
Federal agency debt
|
|
|
(
|
)
|
|
|||||||||||
Municipal bonds
|
|
|
(
|
)
|
|
|||||||||||
U.S. Treasuries |
( |
) | ||||||||||||||
SBA pools
|
( |
) | ||||||||||||||
Total available-for-sale securities
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
Amortized
Cost
|
Gross Unrealized Gains
|
Gross Unrealized Losses
|
Fair Value
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Due in one year or less
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||||
Due after one year through five years
|
|
|
(
|
)
|
|
|||||||||||
Due after five years through ten years
|
|
|
(
|
)
|
|
|||||||||||
Due after ten years (1)
|
|
|
(
|
)
|
|
|||||||||||
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
(1)
|
|
March 31, 2022
|
December 31, 2021
|
|||||||
(In thousands)
|
||||||||
Real estate:
|
||||||||
Single family
|
$
|
|
$
|
|
||||
Multi-family
|
|
|
||||||
Commercial real estate
|
|
|
||||||
Church
|
|
|
||||||
Construction
|
|
|
||||||
Commercial – other
|
|
|
||||||
SBA loans |
||||||||
Consumer
|
|
|
||||||
Gross loans receivable before deferred loan costs and premiums
|
|
|
||||||
Unamortized net deferred loan costs and premiums
|
|
|
||||||
Gross loans receivable
|
|
|
||||||
Credit and interest marks on purchased loans, net |
( |
) | ( |
) | ||||
Allowance for loan losses
|
(
|
)
|
(
|
)
|
||||
Loans receivable, net
|
$
|
|
$
|
|
|
March 31, 2022
|
December 31, 2021
|
||||||
|
(In thousands)
|
|||||||
Real estate:
|
||||||||
Single family
|
$
|
|
$
|
|
||||
Commercial real estate
|
|
|
||||||
Commercial – other
|
|
|
||||||
$
|
|
$
|
|
|
March 31, 2022
|
|||
(In thousands)
|
||||
Balance at the beginning of the period
|
$
|
|
||
Deduction due to Payoffs
|
(
|
)
|
||
Accretion
|
|
|||
Balance at the end of the period
|
$
|
|
For the three months ended March 31, 2022
|
||||||||||||||||||||||||||||||||
Real Estate
|
||||||||||||||||||||||||||||||||
Single
family
|
Multi-
family
|
Commercial
real estate
|
Church
|
Construction
|
Commercial - other
|
Consumer
|
Total
|
|||||||||||||||||||||||||
Beginning balance
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Provision for (recapture of) loan losses
|
|
|
(
|
)
|
(
|
)
|
|
|
|
|
||||||||||||||||||||||
Recoveries
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Loans charged off
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Ending balance
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
For the three months ended March 31, 2021
|
||||||||||||||||||||||||||||||||
Real Estate
|
||||||||||||||||||||||||||||||||
Single
family |
Multi-
family
|
Commercial real estate
|
Church
|
Construction
|
Commercial - other
|
Consumer
|
Total
|
|||||||||||||||||||||||||
Beginning balance
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Provision for (recapture of) loan losses
|
(
|
)
|
|
(
|
)
|
(
|
)
|
|
|
(
|
)
|
|
||||||||||||||||||||
Recoveries
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Loans charged off
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Ending balance
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
March 31, 2022
|
||||||||||||||||||||||||||||||||
Real Estate
|
||||||||||||||||||||||||||||||||
Single
family
|
Multi-
family
|
Commercial
real estate
|
Church
|
Construction
|
Commercial - other
|
SBA
|
Total
|
|||||||||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||||||||||||||
Ending allowance balance attributable to loans:
|
||||||||||||||||||||||||||||||||
Individually evaluated for impairment
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Collectively evaluated for impairment
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Total ending allowance balance
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Loans:
|
||||||||||||||||||||||||||||||||
Loans individually evaluated for impairment
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Loans collectively evaluated for impairment
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Subtotal |
||||||||||||||||||||||||||||||||
Loans acquired in the Merger |
||||||||||||||||||||||||||||||||
Total ending loans balance
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
December 31, 2021
|
||||||||||||||||||||||||||||||||
Real Estate
|
||||||||||||||||||||||||||||||||
Single
family
|
Multi-
family |
Commercial
real estate
|
Church
|
Construction
|
Commercial - other
|
SBA
|
Total
|
|||||||||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||||||||||||||
Ending allowance balance attributable to loans:
|
||||||||||||||||||||||||||||||||
Individually evaluated for impairment
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
$
|
|
$
|
|
|||||||||||||||||
Collectively evaluated for impairment
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Total ending allowance balance
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Loans:
|
||||||||||||||||||||||||||||||||
Loans individually evaluated for impairment
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Loans collectively evaluated for impairment
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Subtotal | ||||||||||||||||||||||||||||||||
Loans acquired in the Merger | ||||||||||||||||||||||||||||||||
Total ending loans balance
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
March 31, 2022
|
December 31, 2021
|
|||||||||||||||||||||||
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:
|
||||||||||||||||||||||||
Multi-family
|
$ |
|
$ |
|
$ |
-
|
$ |
|
$ |
|
$ |
-
|
||||||||||||
Church
|
|
|
-
|
|
|
-
|
||||||||||||||||||
With an allowance recorded:
|
||||||||||||||||||||||||
Single family
|
|
|
|
|
|
|
||||||||||||||||||
Church
|
|
|
|
|
|
|
||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
Three Months Ended March 31,
2022
|
Three Months Ended March 31,
2021
|
|||||||||||||||
Average
Recorded
Investment
|
Cash Basis
Interest
Income
Recognized
|
Average
Recorded
Investment
|
Cash Basis
Interest
Income
Recognized
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Single family
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Multi-family
|
|
|
|
|
||||||||||||
Church
|
|
|
|
|
||||||||||||
Commercial – other
|
|
|
|
|
||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
March 31, 2022
|
||||||||||||||||||||||||
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
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||
Multi-family
|
|
|
|
|
|
|
||||||||||||||||||
Commercial real estate
|
|
|
|
|
|
|
||||||||||||||||||
Church
|
|
|
|
|
|
|
||||||||||||||||||
Construction
|
|
|
|
|
|
|
||||||||||||||||||
Commercial - other
|
|
|
|
|
|
|
||||||||||||||||||
SBA loans |
||||||||||||||||||||||||
Consumer
|
|
|
|
|
|
|
||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
December 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
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||
Multi-family
|
|
|
|
|
|
|
||||||||||||||||||
Commercial real estate
|
|
|
|
|
|
|
||||||||||||||||||
Church
|
|
|
|
|
|
|
||||||||||||||||||
Construction
|
|
|
|
|
|
|
||||||||||||||||||
Commercial - other
|
|
|
|
|
|
|
||||||||||||||||||
SBA
|
|
|
|
|
|
|
||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
March 31, 2022
|
December 31, 2021
|
|||||||
(In thousands)
|
||||||||
Loans receivable held for investment:
|
||||||||
Church
|
|
|
||||||
Total non-accrual loans
|
$
|
|
$
|
|
● |
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 frame.
|
● |
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, 2022
|
||||||||||||||||||||||||||||
Pass
|
Watch
|
Special Mention
|
Substandard
|
Doubtful
|
Loss
|
Total | ||||||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||||||
Single family
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$ |
|||||||||||||||
Multi-family
|
|
|
|
|
|
|
||||||||||||||||||||||
Commercial real estate
|
|
|
|
|
|
|
||||||||||||||||||||||
Church
|
|
|
|
|
|
|
||||||||||||||||||||||
Construction
|
|
|
|
|
|
|
||||||||||||||||||||||
Commercial - other
|
|
|
|
|
|
|
||||||||||||||||||||||
SBA |
||||||||||||||||||||||||||||
Consumer
|
|
|
|
|
|
|
||||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$ |
|
December 31, 2021
|
|||||||||||||||||||||||||||
|
Pass
|
Watch
|
Special Mention
|
Substandard
|
Doubtful
|
Loss
|
Total | |||||||||||||||||||||
|
(In thousands)
|
|||||||||||||||||||||||||||
Single family
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$ |
|||||||||||||||
Multi-family
|
|
|
|
|
|
|
||||||||||||||||||||||
Commercial real estate
|
|
|
|
|
|
|
||||||||||||||||||||||
Church
|
|
|
|
|
|
|
||||||||||||||||||||||
Construction
|
|
|
|
|
|
|
||||||||||||||||||||||
Commercial - other
|
|
|
|
|
|
|
||||||||||||||||||||||
SBA
|
|
|
|
|
|
|
||||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$ |
Goodwill |
Core Deposit
Intangible
|
|||||||
(In thousands) |
||||||||
Balance at the beginning of the period
|
$
|
|
$
|
|
||||
Additions
|
|
|||||||
Change in deferred tax estimate
|
( |
) |
(
|
)
|
||||
Impairment
|
|
|||||||
Balance at the end of the period
|
$ |
$
|
|
(In thousands)
|
||||
2022
|
$
|
|
||
2023
|
|
|||
2024
|
|
|||
2025
|
|
|||
2026
|
|
|||
Thereafter
|
|
|||
$
|
|
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, 2022:
|
||||||||||||||||
Securities available for sale:
|
||||||||||||||||
Federal agency mortgage-backed
|
$
|
|
$ |
$
|
|
$ | ||||||||||
Federal agency CMO
|
|
|
||||||||||||||
Federal agency debt
|
|
|
||||||||||||||
Municipal bonds
|
|
|
||||||||||||||
U. S. Treasuries
|
|
|
||||||||||||||
SBA pools
|
|
|
||||||||||||||
At December 31, 2021:
|
||||||||||||||||
Securities available for sale:
|
||||||||||||||||
Federal agency mortgage-backed
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Federal agency CMO
|
|
|
|
|
||||||||||||
Federal agency debt
|
|
|
|
|
||||||||||||
Municipal bonds
|
|
|
|
|
||||||||||||
U. S. Treasuries
|
|
|
|
|
||||||||||||
SBA pools
|
|
|
|
|
Fair Value Measurements at March 31, 2022
|
||||||||||||||||||||
Carrying
Value
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||||||||
(In thousands)
|
||||||||||||||||||||
Financial Assets:
|
||||||||||||||||||||
Cash and cash equivalents | $ | $ | $ | $ | $ | |||||||||||||||
Securities available-for-sale |
||||||||||||||||||||
Loans receivable held for investment
|
|
|
|
|
|
|||||||||||||||
Accrued interest receivable |
||||||||||||||||||||
Bank owned life insurance |
||||||||||||||||||||
Financial Liabilities:
|
||||||||||||||||||||
Deposits
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Federal Home Loan Bank advances
|
||||||||||||||||||||
Securities sold under agreements to repurchase |
|
|
|
|
|
|||||||||||||||
Notes payable |
||||||||||||||||||||
Accrued interest payable |
Fair Value Measurements at December 31, 2021
|
||||||||||||||||||||
Carrying
Value
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||||||||
(In thousands)
|
||||||||||||||||||||
Financial Assets:
|
||||||||||||||||||||
Cash and cash equivalents
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Securities available-for-sale
|
|
|
|
|
|
|||||||||||||||
Loans receivable held for investment
|
|
|
|
|
|
|||||||||||||||
Accrued interest receivable
|
|
|
|
|
|
|||||||||||||||
Bank owned life insurance
|
|
|
|
|
|
|||||||||||||||
Financial Liabilities:
|
||||||||||||||||||||
Deposits
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Federal Home Loan Bank advances
|
|
|
|
|
|
|||||||||||||||
Securities sold under agreements to repurchase | ||||||||||||||||||||
Notes payable
|
|
|
|
|
|
|||||||||||||||
Accrued interest payable |
Three months
Ended
March 31, 2022
|
Three months
Ended
March 31, 2021
|
|||||||||||||||
Number
Outstanding
|
Weighted
Average
Exercise
Price
|
Number
Outstanding
|
Weighted
Average
Exercise
Price
|
|||||||||||||
Outstanding at beginning of period
|
|
$
|
|
|
$
|
|
||||||||||
Granted during period
|
|
|
|
|
||||||||||||
Exercised during period
|
|
|
|
|
||||||||||||
Forfeited or expired during period
|
|
|
|
|
||||||||||||
Outstanding at end of period
|
|
$
|
|
|
$
|
|
||||||||||
Exercisable at end of period
|
|
$
|
|
|
$
|
|
Outstanding
|
Exercisable
|
|||||||||||||||||||||||
Number
Outstanding
|
Weighted
Average
Remaining
Contractual
Life
|
Weighted
Average
Exercise
Price
|
Aggregate
Intrinsic
Value
|
Number
Outstanding
|
Weighted
Average
Exercise
Price
|
Aggregate
Intrinsic
Value
|
||||||||||||||||||
|
|
$
|
|
|
$
|
|
||||||||||||||||||
|
|
$
|
|
$
|
|
|
$
|
|
$
|
|
March 31, 2022
|
December 31, 2021
|
|||||||
(Dollars in thousands)
|
||||||||
Allocated to participants
|
|
|
||||||
Committed to be released
|
|
|
||||||
Suspense shares
|
|
|
||||||
Total ESOP shares
|
|
|
||||||
Fair value of unearned shares
|
$
|
|
$
|
|
Actual
|
Minimum Required to
Be Well Capitalized
Under Prompt
Corrective Action
Provisions
|
||||||||||||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
||||||||||||||
(Dollars in thousands)
|
|||||||||||||||||
March 31,
2022:
|
|||||||||||||||||
Community Bank Leverage Ratio
|
$
|
|
|
% |
$
|
|
|
% | |||||||||
December 31,
2021:
|
|||||||||||||||||
Community Bank Leverage Ratio
|
$
|
|
|
%
|
$
|
|
|
% |
ITEM 2. |
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
For the three months ended
|
||||||||||||||||||||||||
March 31, 2022
|
March 31, 2021
|
|||||||||||||||||||||||
(Dollars in Thousands)
|
Average Balance
|
Interest
|
Average
Yield/
Cost
|
Average Balance
|
Interest
|
Average
Yield/
Cost
|
||||||||||||||||||
Assets
|
||||||||||||||||||||||||
Interest-earning assets:
|
||||||||||||||||||||||||
Interest-earning deposits
|
$
|
220,266
|
$
|
84
|
0.15
|
%
|
$
|
98,183
|
$
|
35
|
0.14
|
%
|
||||||||||||
Securities
|
160,968
|
553
|
1.37
|
%
|
10,414
|
56
|
2.15
|
%
|
||||||||||||||||
Loans receivable (1)
|
653,493
|
7,336
|
4.49
|
%
|
361,487
|
3,644
|
4.03
|
%
|
||||||||||||||||
FRB and FHLB stock
|
3,046
|
38
|
4.99
|
%
|
3,431
|
42
|
4.90
|
%
|
||||||||||||||||
Total interest-earning assets
|
1,037,773
|
$
|
8,011
|
3.09
|
%
|
473,515
|
$
|
3,777
|
3.19
|
%
|
||||||||||||||
Non-interest-earning assets
|
74,542
|
11,064
|
||||||||||||||||||||||
Total assets
|
$
|
1,112,315
|
$
|
484,579
|
||||||||||||||||||||
Liabilities and Stockholders’ Equity
|
||||||||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||
Money market deposits
|
$
|
207,078
|
$
|
189
|
0.37
|
%
|
$
|
76,750
|
$
|
81
|
0.42
|
%
|
||||||||||||
Passbook deposits
|
66,825
|
8
|
0.05
|
%
|
64,044
|
57
|
0.36
|
%
|
||||||||||||||||
NOW and other demand deposits
|
230,461
|
39
|
0.07
|
%
|
54,650
|
7
|
0.05
|
%
|
||||||||||||||||
Certificate accounts
|
201,446
|
114
|
0.23
|
%
|
120,857
|
238
|
0.79
|
%
|
||||||||||||||||
Total deposits
|
705,810
|
350
|
0.20
|
%
|
316,301
|
383
|
0.48
|
%
|
||||||||||||||||
FHLB advances
|
77,849
|
342
|
1.76
|
%
|
110,500
|
527
|
1.91
|
%
|
||||||||||||||||
Junior subordinated debentures
|
-
|
-
|
0.00
|
%
|
3,275
|
22
|
2.69
|
%
|
||||||||||||||||
Other borrowings
|
68,019
|
147
|
0.86
|
%
|
-
|
-
|
0.00
|
%
|
||||||||||||||||
Total borrowings
|
145,868
|
489
|
1.34
|
%
|
113,775
|
549
|
1.93
|
%
|
||||||||||||||||
Total interest-bearing liabilities
|
851,678
|
$
|
839
|
0.39
|
%
|
430,076
|
$
|
932
|
0.87
|
%
|
||||||||||||||
Non-interest-bearing liabilities
|
121,912
|
5,832
|
||||||||||||||||||||||
Stockholders’ equity
|
138,725
|
48,671
|
||||||||||||||||||||||
Total liabilities and stockholders’ equity
|
$
|
1,112,315
|
$
|
484,579
|
||||||||||||||||||||
Net interest rate spread (2)
|
$
|
7,172
|
2.70
|
%
|
$
|
2,845
|
2.32
|
%
|
||||||||||||||||
Net interest rate margin (3)
|
2.76
|
%
|
2.40
|
%
|
||||||||||||||||||||
Ratio of interest-earning assets to interest-bearing liabilities
|
121.85
|
%
|
110.10
|
%
|
(1) |
Amount is net of deferred loan fees, loan discounts and loans in process, and includes deferred origination costs and loan premiums.
|
(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.
|
Common Equity Capital
|
Shares Outstanding
|
Per Share Amount
|
||||||||||
(Dollars in thousands)
|
||||||||||||
March 31, 2022:
|
||||||||||||
Common book value
|
$
|
136,213
|
73,504,185
|
$
|
1.85
|
|||||||
Less:
|
||||||||||||
Goodwill
|
25,858
|
|||||||||||
Net unamortized core deposit intangible
|
2,827
|
|||||||||||
Tangible book value
|
$
|
107,541
|
73,504,185
|
$
|
1.46
|
|||||||
December 31, 2021:
|
||||||||||||
Common book value
|
$
|
138,000
|
71,768,419
|
$
|
1.92
|
|||||||
Less:
|
||||||||||||
Goodwill
|
25,996
|
|||||||||||
Net unamortized core deposit intangible
|
2,936
|
|||||||||||
Tangible book value
|
$
|
109,068
|
71,768,419
|
$
|
1.52
|
ITEM 3. |
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
ITEM 4. |
CONTROLS AND PROCEDURES
|
Item 1A. |
RISK FACTORS
|
Item 2. |
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
|
Item 3. |
DEFAULTS UPON SENIOR SECURITIES
|
Item 4. |
MINE SAFETY DISCLOSURES
|
Item 5. |
OTHER INFORMATION
|
Item 6. |
EXHIBITS
|
Exhibit
Number*
|
|
Amended and Restated Certificate of Incorporation of Broadway Financial Corporation effective as of April 1, 2021 (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 Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of
the Sarbanes-Oxley Act of 2002.
|
|
Certification of Chief Financial Officer pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as adopted
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 - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the
Inline XBRL 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
|
104 |
The cover page from this Quarterly Report on Form 10-Q for the quarter ended March 31, 2022, formatted in Inline XBRL (included as Exhibit 101) |
* |
Exhibits followed by a parenthetical reference are incorporated by reference herein from the document filed by the Registrant with the SEC
described therein. Except as otherwise indicated, the SEC File No. for each incorporated document is 000-27464.
|
Broadway Financial Corporation
|
||
Date: May 16, 2022
|
By:
|
/s/ Brian Argrett
|
Brian Argrett
|
||
Chief Executive Officer
|
||
Date: May 16, 2022
|
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(s) 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 (the
registrant’s fourth fiscal quarter in the case of an annual report) 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(s) 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 16, 2022
|
By:
|
/s/ Brian Argrett
|
Brian 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(s) 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 (the
registrant’s fourth fiscal quarter in the case of an annual report) 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(s) 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 16, 2022
|
By:
|
/s/ Brenda J. Battey
|
Brenda J. Battey
|
||
Chief Financial Officer
|
Date: May 16, 2022
|
By:
|
/s/ Brian Argrett
|
Brian Argrett
|
||
Chief Executive Officer
|
Date: May 16, 2022
|
By:
|
/s/ Brenda J. Battey
|
Brenda J. Battey
|
||
Chief Financial Officer
|
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands |
Preferred Stock [Member]
Preferred Stock Non-Voting [Member]
|
Common Stock [Member]
Common Stock Voting [Member]
|
Common Stock [Member]
Common Stock Non-Voting [Member]
|
Additional Paid-in Capital [Member] |
Accumulated Other Comprehensive Income (Loss) [Member] |
Retained Earnings (Substantially Restricted) [Member] |
Unearned ESOP Shares [Member] |
Treasury Stock [Member] |
Non-controlling Interest [Member] |
Total |
---|---|---|---|---|---|---|---|---|---|---|
Balance at Dec. 31, 2020 | $ 0 | $ 219 | $ 87 | $ 46,851 | $ 164 | $ 7,783 | $ (893) | $ (5,326) | $ 0 | $ 48,885 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income (loss) | 0 | 0 | 0 | 0 | 0 | (3,487) | 0 | 0 | 0 | (3,487) |
Release of unearned ESOP shares | 0 | 0 | 0 | 7 | 0 | 0 | 16 | 0 | 0 | 23 |
Common stock cancelled for payment of tax withholding | 0 | (1) | 0 | (446) | 0 | 0 | 0 | 0 | 0 | (447) |
Stock awarded to directors | 0 | 0 | 0 | 45 | 0 | 0 | 0 | 0 | 0 | 45 |
Restricted stock compensation expense | 0 | 0 | 0 | 162 | 0 | 0 | 0 | 0 | 0 | 162 |
Stock option compensation expense | 0 | 0 | 0 | 6 | 0 | 0 | 0 | 0 | 0 | 6 |
Other comprehensive loss, net of tax | 0 | 0 | 0 | 0 | (111) | 0 | 0 | 0 | 0 | (111) |
Balance at Mar. 31, 2021 | 0 | 218 | 87 | 46,625 | 53 | 4,296 | (877) | (5,326) | 0 | 45,076 |
Balance at Dec. 31, 2021 | 3,000 | 463 | 281 | 140,289 | (551) | 3,673 | (829) | (5,326) | 100 | 141,100 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income (loss) | 0 | 0 | 0 | 0 | 0 | 958 | 0 | 0 | 24 | 982 |
Conversion of preferred stock into common stock | (3,000) | 12 | 0 | 2,988 | 0 | |||||
Conversion of non-voting common shares into voting common shares | 9 | (9) | 0 | |||||||
Release of unearned ESOP shares | 0 | 0 | 0 | 2 | 0 | 0 | 16 | 0 | 0 | 18 |
Dividends paid on preferred stock | 0 | 0 | 0 | 0 | 0 | (15) | 0 | 0 | 0 | (15) |
Stock awarded to directors | 0 | 0 | 0 | 84 | 0 | 0 | 0 | 0 | 0 | 84 |
Restricted stock compensation expense | 0 | 5 | 0 | 10 | 0 | 0 | 0 | 0 | 0 | 15 |
Other comprehensive loss, net of tax | 0 | 0 | 0 | 0 | (5,847) | 0 | 0 | 0 | 0 | (5,847) |
Balance at Mar. 31, 2022 | $ 0 | $ 489 | $ 272 | $ 143,373 | $ (6,398) | $ 4,616 | $ (813) | $ (5,326) | $ 124 | $ 136,337 |
Basis of Financial Statement Presentation |
3 Months Ended |
---|---|
Mar. 31, 2022 | |
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, City First Bank, National
Association (the “Bank” and, together with the Company, “City First Broadway”). Also included in the unaudited consolidated financial statements are the following subsidiaries of City First Bank: 1432 U Street LLC,
Broadway Service Corporation, City First Real Estate LLC, City First Real Estate II LLC, City First Real Estate III LLC, City First Real Estate IV LLC, and CF New Markets Advisors, LLC (“CFNMA”). In addition, CFNMA also
consolidates CFC Fund Manager II, LLC; City First New Markets Fund II, LLC; City First Capital IX, LLC; and City First Capital 45, LLC (“CFC 45”) into its financial results. 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, 2021 (“2021 Form 10-K”) 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, 2022 are
not necessarily indicative of the results that may be expected for the year ending December 31, 2022.
Subsequent
events have been evaluated through May 16, 2022, which is the date these financial statements were issued.
Except as discussed below, our accounting policies are described in Note 1 – Summary of Significant Accounting
Policies of our audited consolidated financial statements included in the 2021 Form 10-K.
Newly Adopted Accounting Pronouncements
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 adopted by the Company as of January 1, 2022. As of January 1, 2022, the Company modified all of its loan contracts that were benchmarked to the LIBOR index
to SOFR, and applied the practical expedients allowed by this ASU regarding treatment of those modifications.
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 purchase 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 will continue to recognize 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 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 is not expected to 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. Management will evaluate this ASU in conjunction with ASU 2016-13 to determine whether the fair value option will be elected for
any eligible financial assets.
In March 2022, the FASB issued ASU No. 2022-02, Financial Instruments—Credit Losses (Topic 326):
Troubled Debt Restructurings and Vintage Disclosures. This new accounting standard pertains to eliminating certain existing accounting guidance for troubled debt restructurings (“TDRs”) by creditors and adding
additional disclosures related to the nature and characteristics of modifications of loans to borrowers experiencing financial difficulties and vintage disclosures for gross write-offs. The amendments to Topic 326 have
the same effective dates as ASU 2016-13. This guidance is not expected to have a significant impact on the Company’s consolidated financial statements.
|
Business Combination |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combination [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combination |
NOTE (2) – Business Combination
The Company completed its merger with CFBanc Corporation (“CFBanc”) on April 1, 2021, with the Company
continuing as the surviving entity (the “CFBanc Merger”). Immediately following this merger, Broadway Federal Bank, f.s.b., a subsidiary of Broadway Financial Corporation, 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). As of the acquisition date,
CFBanc had $471.0 million in total assets, $227.7 million in gross loans, and $353.7 million
of total deposits.
On April 1,
2021, (1) each share of CFBanc’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 (“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. The total value of the consideration
transferred to CFBanc shareholders was approximately $66.3 million, which was based on the closing price of
the Company’s common stock on March 31, 2021, the last trading day prior to the consummation of the merger.
The Company
accounted for the CFBanc Merger under the acquisition method of accounting which requires purchased assets and liabilities assumed to be recorded at their respective fair values at the date of acquisition. The
Company determined the fair value of the acquired assets and assumed liabilities with the assistance of third-party valuation firms. Goodwill in the amount of $26.0 million was recognized in the CFBanc Merger. Goodwill represents the future economic benefits arising from net assets acquired that are not individually
identified and separately recognized and are attributable to synergies expected to be derived from the combination of the two entities. Goodwill is not amortized for financial reporting purposes; rather, it is tested
for impairment annually, or more frequently if events or changes in circumstances indicate that it might be impaired, by comparing its carrying value to the reporting unit’s fair value. Goodwill recognized in this
transaction is not deductible for income tax purposes.
The
following table represents the assets acquired and liabilities assumed in the CFBanc Merger as of April 1, 2021, and the fair value adjustments and amounts recorded by the Company as of the same date under the
acquisition method of accounting:
The contractual amounts due, expected cash flows to be collected, the interest component, and the fair value of
loans acquired from CFBanc as of the acquisition date were as follows:
A component of total loans acquired from CFBanc were loans that were considered to be PCI loans. Refer
to Note 5 for additional information regarding PCI loans. The following table presents the amounts that comprise the fair value of PCI loans (in thousands):
In accordance with generally accepted accounting principles, there was no carryover of the allowance for loan losses
that had been previously recorded on loans by CFBanc.
The following table presents the net interest income, net income, and earnings per share as if the CFBanc Merger was
effective as of January 1, 2021. The unaudited pro forma financial information included in the table below is based on various estimates and is presented for informational purposes only and does not indicate the
financial condition or results of operations of the combined Company that would have been achieved for the periods presented had the transactions been completed as of the date indicated or that may be achieved in the
future.
|
Earnings Per Share of Common Stock |
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Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share of Common Stock [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share of Common Stock |
NOTE (3) – Earnings 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 dividends
paid on participating securities (unvested shares of restricted common stock) and 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. Employee
Stock Ownership Plan 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 (loss) 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 were not considered in computing diluted earnings per common share because they were anti-dilutive due to the net loss. There were no unvested restricted stock awards as of March 31, 2021.
|
Securities |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 and losses that were recognized in accumulated
other comprehensive income (loss):
The Bank held 129 securities with unrealized losses of $8.8 million at March 31, 2022. None of these securities has been in a loss
position for greater than one year. The Bank’s securities were primarily issued by the federal government or its agencies. The unrealized gains or losses on our available-for-sale securities at March 31, 2022 were primarily caused by movements
in market interest rates subsequent to the purchase of such securities.
The Bank held 129 securities with unrealized losses of $1.0
million at December 31, 2021. None
of these securities has been in a loss position for greater than one year. The Bank’s securities were primarily issued by the federal government or its agencies. The unrealized gains or losses on our available-for-sale securities at December
31, 2021 were primarily caused by movements in market interest rates subsequent to the purchase of such securities.
Securities with a market value of $61.9 million were pledged as collateral for
securities sold under agreements to repurchase as of March 31, 2022, and included $22.3 million of U.S. Government Agency securities, $33.5 million of mortgage-backed securities, $4.1 million of federal agency CMO and $2.0
million of Small Business Administration (“SBA”) pool securities. Securities with a market value of $53.2 million were pledged as
collateral for securities sold under agreements to repurchase as of December 31, 2021 and included $25.9 million of federal agency
mortgage-backed securities, $13.3 million of federal agency debt, $9.8 million of SBA pool, and $4.2 million of federal agency
CMO. (See Note 7 – Borrowings). There were no
securities pledged to secure public deposits at March 31, 2022 or December 31, 2021.
The amortized cost and estimated fair value of all investment securities available-for-sale at March 31, 2022, by contractual maturities are shown
below. Contractual maturities may differ from expected maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
At
March 31, 2022 and December 31, 2021, there were no holdings of securities by any one issuer, other than the U.S. Government and
its agencies, in an amount greater than 10% of stockholders’ equity. There were no sales of securities during the three months ended March 31, 2022.
|
Loans Receivable Held for Investment |
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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 dates indicated:
As of March 31, 2022 and December 31, 2021, the commercial loan category above included $14.7
million and $18.0 million, respectively, of loans issued under the SBA’s Paycheck Protection Program (PPP).
PPP loans have terms of
to five years and earn interest at 1%.
PPP loans are fully guaranteed by the SBA and have virtually no risk of loss. The Bank expects the vast majority of the PPP loans to be fully forgiven by the SBA.As part of the CFBanc Merger, the Company acquired loans for which there was, at acquisition, evidence of credit deterioration of credit quality since origination and for which it was probable,
at acquisition, that all contractually required payments would not be collected. Prior to the CFBanc Merger, there were no
such acquired loans. The carrying amount of those loans as of March 31, 2022, and December 31, 2021, was as follows:
On the acquisition date, the amount by which the undiscounted expected cash flows of the PCI loans exceeded the estimated fair value of the loan is the accretable yield. The accretable yield is
measured at each financial reporting date and represents the difference between the remaining undiscounted cash flows and the current carrying value of the PCI loan. At March 31, 2022, and December 31, 2021, none of the Company’s PCI loans were classified as nonaccrual.
The following
table summarizes the accretable yield on the PCI loans for the three months ended March 31, 2022:
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 the dates indicated:
The following
table presents information related to loans individually evaluated for impairment by loan type as of the dates indicated:
The recorded investment in loans excludes accrued interest receivable due to immateriality. For purposes of this disclosure, the unpaid principal balance is not reduced for net charge-offs.
The following table presents 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 $17 thousand and $19 thousand for the three months ended March 31, 2022 and
2021, 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 dates indicated:
The following table presents the recorded investment in non-accrual loans by loan type as of the dates indicated:
There were no loans 90 days or more delinquent that were accruing interest as
of March 31, 2022 or December 31, 2021. None of the church non-accrual loans were delinquent, but none
qualified for accrual status as of the periods indicated.
Troubled Debt Restructurings
At March 31, 2022, loans classified as TDRs totaled $1.8 million, of which $177 thousand were included in non-accrual loans and $1.6 million were on accrual status. At December 31, 2021, loans classified as TDRs totaled $1.8 million, of which $188 thousand
were included in non-accrual loans and $1.6 million were on accrual status. The Company has allocated $7 thousand of specific reserves for accruing TDRs as of March 31, 2022 and December 31, 2021. 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, 2022 and December 31, 2021, 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 month periods ended March 31, 2022 and 2021.
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 within this footnote. 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:
|
Goodwill and Intangible Assets |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets |
NOTE (6) – Goodwill and Intangible Assets
In connection with the CFBanc Merger completed as of April 1, 2021 (See Note 2 - Business
Combination), the Company recognized goodwill of $26.0 million
and a core deposit intangible of $3.3 million. The
following table presents the changes in the carrying amounts of goodwill and core deposit intangibles for the three months ended March 31, 2022:
The following table
outlines the estimated amortization expense for the core deposit intangible during the next five fiscal years:
|
Borrowings |
3 Months Ended |
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Mar. 31, 2022 | |
Borrowings [Abstract] | |
Borrowings |
NOTE (7) – Borrowings
The Bank enters into agreements under which it sells securities subject to an obligation
to repurchase the same or similar securities. Under these arrangements, the Bank may transfer legal control over the assets but still retain effective control through an agreement that both entitles and obligates the
Bank to repurchase the assets. As a result, these repurchase agreements are accounted for as collateralized financing agreements (i.e., secured borrowings) and not as a sale and subsequent repurchase of
securities. The obligation to repurchase the securities is reflected as a liability in the Banks’s consolidated statements of financial condition, while the securities underlying the repurchase agreements remain
in the respective investment securities asset accounts. In other words, there is no offsetting or netting of the investment securities assets with the repurchase agreement liabilities. These agreements mature on a
daily basis. As of March 31, 2022, securities with a market value of $61.9 million were pledged as
collateral for securities sold under agreements to repurchase and included $22.3 million of U.S. Government
Agency securities, $33.5 million of mortgage-backed securities, $4.1 million of federal agency CMO and $2.0
million of SBA pool securities. As of December 31, 2021, securities sold under agreements to repurchase totaled $52.0
million at an average rate of 0.10%. The market value of securities pledged totaled $53.2 million as of December 31, 2021 and included $13.3 million of U.S. Government Agency securities and $39.9 million of mortgage-backed securities.
At March 31, 2022 and December 31, 2021, the Bank had
outstanding advances from the FHLB of San Francisco totaling $73.0 million and $86.0 million, respectively. The weighted interest rate was 1.66% and 1.85% as of March 31, 2022 and December 31, 2021, respectively.
The weighted average contractual maturity was 22 months and 22 months as of March 31, 2022 and December 31, 2021, respectively. The advances were collateralized by loans with a market value of $106.5 million at March 31, 2022 and $165.0
million at December 31, 2021. The Bank also had $2.9 million in outstanding borrowings from the FHLB
of Atlanta as of March 31, 2022 at an average rate of 2.60%. Principal repayments of $12 thousand per month are required until January 6, 2025 when the advance fully matures. The advances were collateralized by loans with a market value of $22.4 million as of March 31, 2022.
In connection with the New Market Tax Credit activities of the Bank, CFC 45 is a partnership whose members include CFNMA and City First New
Markets Fund II, LLC. This community development entity (“CDE”) acts in effect as a pass-through for a Merrill Lynch allocation totaling $14.0 million that needed to be deployed. In December 2015, Merrill Lynch made a $14.0
million non-recourse loan to CFC 45, whereby CFC 45 passed that loan through to a Qualified Active Low-Income Business (“QALICB”). The loan to the QALICB is secured by a Leasehold Deed of Trust that, due to the
pass-through, non-recourse structure, is operationally and ultimately for the benefit of Merrill Lynch rather than CFC 45. Debt service payments received by CFC 45 from the QALICB are passed through to Merrill Lynch
in return for which CFC 45 receives a servicing fee. The financial statements of CFC 45 are consolidated with those of the Bank and the Company.
There are two notes for CFC 45. Note A is in the amount of $9.9 million with a fixed interest rate of 5.2% per annum. Note B is in the amount of $4.1 million with a fixed
interest rate of 0.24% per annum. Quarterly interest only payments commenced in March 2016 and will
continue through March 2023 for Notes A and B. Beginning in September 2023, quarterly principal and interest payments will be due for Notes A and B. Both notes will mature on December 1, 2040.
|
Fair Value |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Fair Value [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value |
NOTE (8) – 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 three 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, 2022 and 2021.
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 statements of financial 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, 2022 and December 31, 2021, 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 level within the
fair value hierarchy of the Company’s financial instruments as of March 31, 2022 and December 31, 2021.
In accordance with ASU No. 2016-01, the fair value of financial assets and liabilities 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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based Compensation [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation |
NOTE (9) –
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 March 31, 2022, there were 1,023,513 shares that had been awarded and 269,596 shares that were available to be issued under the LTIP.
During February of 2022 and 2021, the Company issued 47,187 and 20,736
shares of stock, respectively, to its directors under the 2018 LTIP, which were fully vested. The Company recorded $84
thousand and $45 thousand of compensation expense during the quarters ended March 31, 2022 and March 31,
2021, based on the fair value of the stock, which was determined using the fair value of the stock on the date of the award.
During March of 2022, the Company issued 495,262 shares to its officers and employees under the 2018 LTIP. Each restricted stock award is valued based on the fair value of the stock on
the date of the award. These awarded shares of restricted stock fully vest over periods ranging from 36
months to 60 months from their respective dates of grant. Stock based compensation is recognized on a
straight-line basis over the vesting period. There were no shares issued to officers and employees
during 2021. During the quarter ended March 31, 2021, the company recorded $119 thousand of stock based
compensation expense related to awards granted previously to 2021.
No stock options were granted during the three months ended March 31, 2022
and 2021.
The following table summarizes stock option activity during the three months ended March 31, 2022 and 2021:
The Company did not record any stock-based compensation expense related to stock options during the three months ended March 31, 2022. For
the three months ended March 31, 2021, the Company recorded $6 thousand of expense related to stock
options.
Options
outstanding and exercisable at March 31, 2022 were as follows:
|
ESOP Plan |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ESOP Plan [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ESOP Plan |
NOTE (10) – ESOP Plan
Employees
participate in an 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 $18 thousand and $23 thousand for the three months ended March 31, 2022 and 2021.
Shares
held by the ESOP were as follows:
Unearned
shares, which are reported as Unearned ESOP shares in the equity section of the consolidated statements of financial condition, were $813
thousand and $829 thousand at March 31, 2022 and December 31, 2021, respectively.
|
Regulatory Matters and Stockholders' Equity |
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Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Regulatory Matters and Stockholders' Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Regulatory Matters and Stockholders' Equity |
NOTE (11) –
Regulatory Matters and Stockholders’ Equity
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.
As a result of the Economic Growth, Regulatory Relief, and Consumer Protection Act, the federal banking agencies have
developed a “Community Bank Leverage Ratio” (“CBLR”) (the ratio of a bank’s tier 1 capital to average total consolidated assets) for financial institutions with assets of less than $10 billion. A “qualifying community
bank” that exceeds this ratio will be deemed to be in compliance with all other capital and leverage requirements, including the capital requirements to be considered “well capitalized” under Prompt Corrective Action
statutes. The federal banking agencies have set the Community Bank Leverage Ratio at 9%. The CARES Act temporarily lowered this ratio to 8% beginning in the three months ended March 31, 2020. The ratio then rose to 8.5% for 2021 and was reestablished at 9% on January 1, 2022. City First Bank, N.A. elected to adopt the CBLR option on April 1, 2020 as reflected in its March 31, 2020 Call Report.
Actual and required capital amounts and ratios as of the dates indicated are presented below.
At March 31, 2022, the Company and the Bank met all the capital adequacy requirements to which they were subject. In addition, the Bank was “well
capitalized” under the regulatory framework for prompt corrective action. Management believes that no conditions or events have occurred since March 31, 2022 that would materially adversely change the Bank’s capital
classifications. From time to time, we may need to raise additional capital to support the Bank’s further growth and to maintain the “well capitalized” status.
During the first quarter of 2022 the Company completed the exchange of all the Series A Fixed Rate
Cumulative Redeemable Preferred Stock, with an aggregate liquidation value of $3 million, plus accrued
dividends, for 1,193,317 shares of Class A Common Stock at an exchange price of $2.51 per share of Class A Common Stock.
|
Income Taxes |
3 Months Ended |
---|---|
Mar. 31, 2022 | |
Income Taxes [Abstract] | |
Income Taxes |
NOTE (12) – 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.
At March 31, 2022, the Company maintained a $369 thousand valuation allowance on its deferred tax assets because the number of shares sold in the private placements completed on April 6, 2021
triggered limitations on the use of certain tax attributes under the Section 382 of the federal tax code. The ability to use net operating losses (“NOLs”) to offset future taxable income will be restricted and these NOLs
could expire or otherwise be unavailable. In general, under Section 382 of the Code and corresponding provisions of state law, a corporation that undergoes an “ownership change” is subject to limitations on its ability
to utilize its pre-change NOLs to offset future taxable income. For these purposes, an ownership change generally occurs where the aggregate stock ownership of one or more stockholders or groups of stockholders who owns
at least 5% of a corporation’s stock increases its ownership by more than 50 percentage points over its lowest ownership percentage within a specified testing period.
|
Concentration of Credit Risk |
3 Months Ended |
---|---|
Mar. 31, 2022 | |
Concentration of Credit Risk [Abstract] | |
Concentration of Credit Risk |
NOTE (13) –
Concentration of Credit Risk
The Bank has a significant concentration of deposits with one customer that
accounted for approximately 16% of its deposits as of
March 31, 2022. The Bank also has a significant concentration of short term borrowings from one customer that accounted for 74%
of the outstanding balance of securities sold under agreements to repurchase as of March 31, 2022. 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, 2022 | |
Basis of Financial Statement Presentation [Abstract] | |
Consolidation |
The accompanying unaudited consolidated financial statements include Broadway Financial Corporation (the “Company”) and its wholly owned subsidiary, City First Bank, National
Association (the “Bank” and, together with the Company, “City First Broadway”). Also included in the unaudited consolidated financial statements are the following subsidiaries of City First Bank: 1432 U Street LLC,
Broadway Service Corporation, City First Real Estate LLC, City First Real Estate II LLC, City First Real Estate III LLC, City First Real Estate IV LLC, and CF New Markets Advisors, LLC (“CFNMA”). In addition, CFNMA also
consolidates CFC Fund Manager II, LLC; City First New Markets Fund II, LLC; City First Capital IX, LLC; and City First Capital 45, LLC (“CFC 45”) into its financial results. 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, 2021 (“2021 Form 10-K”) 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, 2022 are
not necessarily indicative of the results that may be expected for the year ending December 31, 2022.
|
Subsequent Events |
Subsequent
events have been evaluated through May 16, 2022, which is the date these financial statements were issued.
|
Newly Adopted Accounting Pronouncements and Accounting Pronouncements Yet to Be Adopted |
Newly Adopted Accounting Pronouncements
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 adopted by the Company as of January 1, 2022. As of January 1, 2022, the Company modified all of its loan contracts that were benchmarked to the LIBOR index
to SOFR, and applied the practical expedients allowed by this ASU regarding treatment of those modifications.
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 purchase 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 will continue to recognize 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 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 is not expected to 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. Management will evaluate this ASU in conjunction with ASU 2016-13 to determine whether the fair value option will be elected for
any eligible financial assets.
In March 2022, the FASB issued ASU No. 2022-02, Financial Instruments—Credit Losses (Topic 326):
Troubled Debt Restructurings and Vintage Disclosures. This new accounting standard pertains to eliminating certain existing accounting guidance for troubled debt restructurings (“TDRs”) by creditors and adding
additional disclosures related to the nature and characteristics of modifications of loans to borrowers experiencing financial difficulties and vintage disclosures for gross write-offs. The amendments to Topic 326 have
the same effective dates as ASU 2016-13. This guidance is not expected to have a significant impact on the Company’s consolidated financial statements.
|
Business Combination (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combination [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets Acquired and Liabilities Assumed |
The
following table represents the assets acquired and liabilities assumed in the CFBanc Merger as of April 1, 2021, and the fair value adjustments and amounts recorded by the Company as of the same date under the
acquisition method of accounting:
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Contractual Amounts Due, Expected Cash Flows to Be Collected, Interest Component, and Fair Value of Loans Acquired |
The contractual amounts due, expected cash flows to be collected, the interest component, and the fair value of
loans acquired from CFBanc as of the acquisition date were as follows:
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Fair Value of PCI Loans | The following table presents the amounts that comprise the fair value of PCI loans (in thousands):
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Unaudited Pro Forma Information |
The following table presents the net interest income, net income, and earnings per share as if the CFBanc Merger was
effective as of January 1, 2021. The unaudited pro forma financial information included in the table below is based on various estimates and is presented for informational purposes only and does not indicate the
financial condition or results of operations of the combined Company that would have been achieved for the periods presented had the transactions been completed as of the date indicated or that may be achieved in the
future.
|
Earnings Per Share of Common Stock (Tables) |
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Earnings Per Share of Common Stock [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basic and Diluted Earnings (Loss) Per Share of Common Stock |
The following table shows how the Company computed basic and diluted earnings (loss) per share of common stock for the periods indicated:
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Securities (Tables) |
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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 and losses that were recognized in accumulated
other comprehensive income (loss):
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Amortized Cost and Fair Value of Investment Securities by Contractual Maturity |
The amortized cost and estimated fair value of all investment securities available-for-sale at March 31, 2022, by contractual maturities are shown
below. Contractual maturities may differ from expected maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
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Loans Receivable Held for Investment (Tables) |
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Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans Receivable Held for Investment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans Receivable Held for Investment |
Loans receivable held for investment were as follows as of the dates indicated:
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Carrying Amount of Purchased Credit Impaired Loans | The carrying amount of those loans as of March 31, 2022, and December 31, 2021, was as follows:
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Accretable yield on Purchased Credit Impaired Loans |
The following
table summarizes the accretable yield on the PCI loans for the three months ended March 31, 2022:
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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:
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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 the dates indicated:
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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 dates indicated:
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Average of Loans Individually Evaluated for Impairment by Loan Type and Related Interest Income |
The following table presents the monthly average of loans individually evaluated for impairment by loan type and the related interest income for the periods indicated:
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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 dates indicated:
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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 dates indicated:
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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:
|
Goodwill and Intangible Assets (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in Carrying Amounts of Goodwill and Core Deposit Intangibles | The
following table presents the changes in the carrying amounts of goodwill and core deposit intangibles for the three months ended March 31, 2022:
|
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Estimated Amortization Expense for Core Deposit Intangible |
The following table
outlines the estimated amortization expense for the core deposit intangible during the next five fiscal years:
|
Fair Value (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Fair Value [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets Measured on Recurring Basis |
Assets measured at fair value on a recurring basis are summarized below:
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Fair Values of Financial Instruments |
The following tables present the carrying amount, fair value, and level within the
fair value hierarchy of the Company’s financial instruments as of March 31, 2022 and December 31, 2021.
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Stock-based Compensation (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based Compensation [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Stock Option Activity |
The following table summarizes stock option activity during the three months ended March 31, 2022 and 2021:
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Options Outstanding and Exercisable |
Options
outstanding and exercisable at March 31, 2022 were as follows:
|
ESOP Plan (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ESOP Plan [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares Held by ESOP |
Shares
held by the ESOP were as follows:
|
Regulatory Matters and Stockholders' Equity (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Regulatory Matters and Stockholders' Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Actual and Required Capital Amounts and Ratios |
Actual and required capital amounts and ratios as of the dates indicated are presented below.
|
Business Combination, Contractual Amounts Due, Expected Cash Flows to Be Collected, Interest Component, and Fair Value of Loans Acquired (Details) - CFBanc Corporation [Member] $ in Thousands |
Apr. 02, 2021
USD ($)
|
---|---|
Contractual Amounts Due, Expected Cash Flows to Be Collected, Interest Component, and Fair Value of Loans Acquired [Abstract] | |
Contractual amounts due | $ 231,432 |
Cash flows not expected to be collected | (3,666) |
Expected cash flows | 227,766 |
Interest component of expected cash flows | (1,881) |
Fair value of acquired loans | $ 225,885 |
Business Combination, Fair Value of PCI Loans (Details) - CFBanc Corporation [Member] $ in Thousands |
Apr. 02, 2021
USD ($)
|
---|---|
Purchased Credit Impaired Loans Acquired [Abstract] | |
Contractual amounts due | $ 231,432 |
Non-accretable difference (cash flows not expected to be collected) | (3,666) |
Expected cash flows | 227,766 |
Purchased Credit Impaired Loans [Member] | |
Purchased Credit Impaired Loans Acquired [Abstract] | |
Contractual amounts due | 1,825 |
Non-accretable difference (cash flows not expected to be collected) | (634) |
Expected cash flows | 1,191 |
Accretable yield | (346) |
Fair value of PCI acquired loans | $ 845 |
Business Combination, Unaudited pro forma information (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Unaudited pro forma information [Abstract] | ||
Net interest income | $ 7,172 | $ 5,197 |
Net income (loss) | $ 958 | $ (4,277) |
Basic earnings per share (in dollars per share) | $ 0.01 | $ (0.08) |
Diluted earnings per share (in dollars per share) | $ 0.01 | $ (0.08) |
Loans Receivable Held for Investment (Details) - USD ($) $ in Thousands |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2022 |
Dec. 31, 2021 |
Mar. 31, 2021 |
Dec. 31, 2020 |
|
Loans Receivable Held for Investment [Abstract] | ||||
Gross loans receivable before deferred loan costs and premiums | $ 656,616 | $ 652,220 | ||
Unamortized net deferred loan costs and premiums | 1,674 | 1,526 | ||
Gross loans receivable | 658,290 | 653,746 | ||
Credit and interest marks on purchased loans, net | (1,376) | (1,842) | ||
Allowance for loan losses | (3,539) | (3,391) | $ (3,215) | $ (3,215) |
Loans receivable, net | 653,375 | 648,513 | ||
Real Estate [Member] | Single Family [Member] | ||||
Loans Receivable Held for Investment [Abstract] | ||||
Gross loans receivable before deferred loan costs and premiums | 40,145 | 45,372 | ||
Gross loans receivable | 40,145 | 45,372 | ||
Allowance for loan losses | (157) | (145) | (275) | (296) |
Real Estate [Member] | Multi-Family [Member] | ||||
Loans Receivable Held for Investment [Abstract] | ||||
Gross loans receivable before deferred loan costs and premiums | 401,252 | 393,704 | ||
Gross loans receivable | 402,926 | 395,230 | ||
Allowance for loan losses | (2,771) | (2,657) | (2,473) | (2,433) |
Real Estate [Member] | Commercial Real Estate [Member] | ||||
Loans Receivable Held for Investment [Abstract] | ||||
Gross loans receivable before deferred loan costs and premiums | 90,402 | 93,193 | ||
Gross loans receivable | 90,402 | 93,193 | ||
Allowance for loan losses | (217) | (236) | (219) | (222) |
Real Estate [Member] | Church [Member] | ||||
Loans Receivable Held for Investment [Abstract] | ||||
Gross loans receivable before deferred loan costs and premiums | 21,365 | 22,503 | ||
Gross loans receivable | 21,365 | 22,503 | ||
Allowance for loan losses | (63) | (103) | (221) | (237) |
Real Estate [Member] | Construction [Member] | ||||
Loans Receivable Held for Investment [Abstract] | ||||
Gross loans receivable before deferred loan costs and premiums | 33,938 | 32,072 | ||
Gross loans receivable | 33,938 | 32,072 | ||
Allowance for loan losses | (236) | (212) | 0 | (22) |
Commercial - Other [Member] | ||||
Loans Receivable Held for Investment [Abstract] | ||||
Gross loans receivable before deferred loan costs and premiums | 53,880 | 46,539 | ||
Gross loans receivable | 53,880 | 46,539 | ||
Allowance for loan losses | (95) | (23) | (5) | (4) |
Commercial - Other [Member] | PPP Loans [Member] | ||||
Loans Receivable Held for Investment [Abstract] | ||||
Gross loans receivable before deferred loan costs and premiums | $ 14,700 | 18,000 | ||
Loans receivable, interest rate | 1.00% | |||
Commercial - Other [Member] | PPP Loans [Member] | Minimum [Member] | ||||
Loans Receivable Held for Investment [Abstract] | ||||
Loans receivable, term | 2 years | |||
Commercial - Other [Member] | PPP Loans [Member] | Maximum [Member] | ||||
Loans Receivable Held for Investment [Abstract] | ||||
Loans receivable, term | 5 years | |||
SBA Loans [Member] | ||||
Loans Receivable Held for Investment [Abstract] | ||||
Gross loans receivable before deferred loan costs and premiums | $ 15,488 | 18,837 | ||
Gross loans receivable | 15,488 | 18,837 | ||
Allowance for loan losses | 0 | (15) | ||
Consumer [Member] | ||||
Loans Receivable Held for Investment [Abstract] | ||||
Gross loans receivable before deferred loan costs and premiums | 146 | 0 | ||
Gross loans receivable | 146 | |||
Allowance for loan losses | $ 0 | $ (15) | $ 0 | $ (1) |
Loans Receivable Held for Investment, Purchased Credit Impaired (PCI) Loans (Details) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022
USD ($)
Loan
|
Dec. 31, 2021
USD ($)
Loan
|
|
Purchased Credit Impaired Loans [Abstract] | ||
Number of acquired loans with evidence of credit deterioration of credit quality since origination at acquisition | Loan | 0 | |
Loans receivable | $ 653,375 | $ 648,513 |
Accretable Yield on Purchased Credit Impaired Loans [Roll Forward] | ||
Number of purchased credit impaired loans classified as nonaccrual | Loan | 0 | 0 |
Purchased Credit Impaired Loans [Member] | ||
Accretable Yield on Purchased Credit Impaired Loans [Roll Forward] | ||
Balance at the beginning of the period | $ 883 | |
Deduction due to Payoffs | (707) | |
Accretion | 11 | |
Balance at the end of the period | 165 | |
Real Estate [Member] | Purchased Credit Impaired Loans [Member] | ||
Purchased Credit Impaired Loans [Abstract] | ||
Loans receivable | 165 | $ 883 |
Real Estate [Member] | Single Family [Member] | Purchased Credit Impaired Loans [Member] | ||
Purchased Credit Impaired Loans [Abstract] | ||
Loans receivable | 56 | 558 |
Real Estate [Member] | Commercial Real Estate [Member] | Purchased Credit Impaired Loans [Member] | ||
Purchased Credit Impaired Loans [Abstract] | ||
Loans receivable | 0 | 221 |
Commercial - Other [Member] | Purchased Credit Impaired Loans [Member] | ||
Purchased Credit Impaired Loans [Abstract] | ||
Loans receivable | $ 109 | $ 104 |
Loans Receivable Held for Investment, Activity in Allowance for Loan Losses by Loan Type (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Allowance for Loan and Lease Losses by Loan Type [Roll Forward] | ||
Beginning balance | $ 3,391 | $ 3,215 |
Provision for (recapture of) loan losses | 148 | 0 |
Recoveries | 0 | 0 |
Loans charged off | 0 | 0 |
Ending balance | 3,539 | 3,215 |
Real Estate [Member] | Single Family [Member] | ||
Allowance for Loan and Lease Losses by Loan Type [Roll Forward] | ||
Beginning balance | 145 | 296 |
Provision for (recapture of) loan losses | 12 | (21) |
Recoveries | 0 | 0 |
Loans charged off | 0 | 0 |
Ending balance | 157 | 275 |
Real Estate [Member] | Multi-Family [Member] | ||
Allowance for Loan and Lease Losses by Loan Type [Roll Forward] | ||
Beginning balance | 2,657 | 2,433 |
Provision for (recapture of) loan losses | 114 | 40 |
Recoveries | 0 | 0 |
Loans charged off | 0 | 0 |
Ending balance | 2,771 | 2,473 |
Real Estate [Member] | Commercial Real Estate [Member] | ||
Allowance for Loan and Lease Losses by Loan Type [Roll Forward] | ||
Beginning balance | 236 | 222 |
Provision for (recapture of) loan losses | (20) | (3) |
Recoveries | 0 | 0 |
Loans charged off | 0 | 0 |
Ending balance | 217 | 219 |
Real Estate [Member] | Church [Member] | ||
Allowance for Loan and Lease Losses by Loan Type [Roll Forward] | ||
Beginning balance | 103 | 237 |
Provision for (recapture of) loan losses | (40) | (16) |
Recoveries | 0 | 0 |
Loans charged off | 0 | 0 |
Ending balance | 63 | 221 |
Real Estate [Member] | Construction [Member] | ||
Allowance for Loan and Lease Losses by Loan Type [Roll Forward] | ||
Beginning balance | 212 | 22 |
Provision for (recapture of) loan losses | 25 | 0 |
Recoveries | 0 | 0 |
Loans charged off | 0 | 0 |
Ending balance | 236 | 0 |
Commercial - Other [Member] | ||
Allowance for Loan and Lease Losses by Loan Type [Roll Forward] | ||
Beginning balance | 23 | 4 |
Provision for (recapture of) loan losses | 57 | 1 |
Recoveries | 0 | 0 |
Loans charged off | 0 | 0 |
Ending balance | 95 | 5 |
Consumer [Member] | ||
Allowance for Loan and Lease Losses by Loan Type [Roll Forward] | ||
Beginning balance | 15 | 1 |
Provision for (recapture of) loan losses | 0 | (1) |
Recoveries | 0 | 0 |
Loans charged off | 0 | 0 |
Ending balance | $ 0 | $ 0 |
Loans Receivable Held for Investment, Allowance for Loan Losses and Recorded Investment in Loans by Type of Loans and Based on Impairment Method (Details) - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
Mar. 31, 2021 |
Dec. 31, 2020 |
---|---|---|---|---|
Ending Allowance Balance Attributable to Loans [Abstract] | ||||
Individually evaluated for impairment | $ 7 | $ 7 | ||
Collectively evaluated for impairment | 3,532 | 3,384 | ||
Total ending allowance balance | 3,539 | 3,391 | $ 3,215 | $ 3,215 |
Loans [Abstract] | ||||
Loans individually evaluated for impairment | 2,248 | 2,301 | ||
Loans collectively evaluated for impairment | 476,341 | 447,692 | ||
Subtotal | 478,589 | 449,993 | ||
Loans acquired in the merger | 179,701 | 203,753 | ||
Gross loans receivable | 658,290 | 653,746 | ||
Real Estate [Member] | Single Family [Member] | ||||
Ending Allowance Balance Attributable to Loans [Abstract] | ||||
Individually evaluated for impairment | 3 | 3 | ||
Collectively evaluated for impairment | 154 | 142 | ||
Total ending allowance balance | 157 | 145 | 275 | 296 |
Loans [Abstract] | ||||
Loans individually evaluated for impairment | 64 | 65 | ||
Loans collectively evaluated for impairment | 31,151 | 32,599 | ||
Subtotal | 31,215 | 32,664 | ||
Loans acquired in the merger | 8,930 | 12,708 | ||
Gross loans receivable | 40,145 | 45,372 | ||
Real Estate [Member] | Multi-Family [Member] | ||||
Ending Allowance Balance Attributable to Loans [Abstract] | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 2,771 | 2,657 | ||
Total ending allowance balance | 2,771 | 2,657 | 2,473 | 2,433 |
Loans [Abstract] | ||||
Loans individually evaluated for impairment | 277 | 282 | ||
Loans collectively evaluated for impairment | 368,647 | 353,179 | ||
Subtotal | 368,924 | 353,461 | ||
Loans acquired in the merger | 34,002 | 41,769 | ||
Gross loans receivable | 402,926 | 395,230 | ||
Real Estate [Member] | Commercial Real Estate [Member] | ||||
Ending Allowance Balance Attributable to Loans [Abstract] | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 217 | 236 | ||
Total ending allowance balance | 217 | 236 | 219 | 222 |
Loans [Abstract] | ||||
Loans individually evaluated for impairment | 0 | 0 | ||
Loans collectively evaluated for impairment | 24,594 | 25,507 | ||
Subtotal | 24,594 | 25,507 | ||
Loans acquired in the merger | 65,808 | 67,686 | ||
Gross loans receivable | 90,402 | 93,193 | ||
Real Estate [Member] | Church [Member] | ||||
Ending Allowance Balance Attributable to Loans [Abstract] | ||||
Individually evaluated for impairment | 4 | 4 | ||
Collectively evaluated for impairment | 59 | 99 | ||
Total ending allowance balance | 63 | 103 | 221 | 237 |
Loans [Abstract] | ||||
Loans individually evaluated for impairment | 1,907 | 1,954 | ||
Loans collectively evaluated for impairment | 8,062 | 9,058 | ||
Subtotal | 9,969 | 11,012 | ||
Loans acquired in the merger | 11,396 | 11,491 | ||
Gross loans receivable | 21,365 | 22,503 | ||
Real Estate [Member] | Construction [Member] | ||||
Ending Allowance Balance Attributable to Loans [Abstract] | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 236 | 212 | ||
Total ending allowance balance | 236 | 212 | 0 | 22 |
Loans [Abstract] | ||||
Loans individually evaluated for impairment | 0 | 0 | ||
Loans collectively evaluated for impairment | 26,606 | 24,225 | ||
Subtotal | 26,606 | 24,225 | ||
Loans acquired in the merger | 7,332 | 7,847 | ||
Gross loans receivable | 33,938 | 32,072 | ||
Commercial - Other [Member] | ||||
Ending Allowance Balance Attributable to Loans [Abstract] | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 95 | 23 | ||
Total ending allowance balance | 95 | 23 | $ 5 | $ 4 |
Loans [Abstract] | ||||
Loans individually evaluated for impairment | 0 | 0 | ||
Loans collectively evaluated for impairment | 17,281 | 3,124 | ||
Subtotal | 17,281 | 3,124 | ||
Loans acquired in the merger | 36,599 | 43,415 | ||
Gross loans receivable | 53,880 | 46,539 | ||
SBA Loans [Member] | ||||
Ending Allowance Balance Attributable to Loans [Abstract] | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 0 | 15 | ||
Total ending allowance balance | 0 | 15 | ||
Loans [Abstract] | ||||
Loans individually evaluated for impairment | 0 | 0 | ||
Loans collectively evaluated for impairment | 0 | 0 | ||
Subtotal | 0 | 0 | ||
Loans acquired in the merger | 15,488 | 18,837 | ||
Gross loans receivable | $ 15,488 | $ 18,837 |
Loans Receivable Held for Investment, Loans Individually Evaluated for Impairment by Loan Type (Details) - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
With an Allowance Recorded [Abstract] | ||
Allowance for loan losses allocated | $ 7 | $ 7 |
Total [Abstract] | ||
Unpaid principal balance | 2,248 | 2,301 |
Recorded investment | 2,248 | 2,301 |
Real Estate [Member] | Single Family [Member] | ||
With an Allowance Recorded [Abstract] | ||
Unpaid principal balance | 64 | 65 |
Recorded investment | 64 | 65 |
Allowance for loan losses allocated | 3 | 3 |
Real Estate [Member] | Multi-Family [Member] | ||
With No Related Allowance Recorded [Abstract] | ||
Unpaid principal balance | 277 | 282 |
Recorded investment | 277 | 282 |
Real Estate [Member] | Church [Member] | ||
With No Related Allowance Recorded [Abstract] | ||
Unpaid principal balance | 1,811 | 1,854 |
Recorded investment | 1,810 | 1,854 |
With an Allowance Recorded [Abstract] | ||
Unpaid principal balance | 96 | 100 |
Recorded investment | 96 | 100 |
Allowance for loan losses allocated | $ 4 | $ 4 |
Loans Receivable Held for Investment, Average of Loans Individually Evaluated for Impairment by Loan Type and Related Interest Income (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Loans Individually Evaluated for Impairment by Loan Type and Related Interest Income [Abstract] | ||
Average recorded investment | $ 2,878 | $ 4,702 |
Cash basis interest income recognized | 31 | 76 |
Foregone interest income | 17 | 19 |
Real Estate [Member] | Single Family [Member] | ||
Loans Individually Evaluated for Impairment by Loan Type and Related Interest Income [Abstract] | ||
Average recorded investment | 64 | 571 |
Cash basis interest income recognized | 1 | 7 |
Real Estate [Member] | Multi-Family [Member] | ||
Loans Individually Evaluated for Impairment by Loan Type and Related Interest Income [Abstract] | ||
Average recorded investment | 279 | 296 |
Cash basis interest income recognized | 5 | 5 |
Real Estate [Member] | Church [Member] | ||
Loans Individually Evaluated for Impairment by Loan Type and Related Interest Income [Abstract] | ||
Average recorded investment | 2,535 | 3,789 |
Cash basis interest income recognized | 25 | 63 |
Commercial - Other [Member] | ||
Loans Individually Evaluated for Impairment by Loan Type and Related Interest Income [Abstract] | ||
Average recorded investment | 0 | 46 |
Cash basis interest income recognized | $ 0 | $ 1 |
Loans Receivable Held for Investment, Aging of Recorded Investment in Past Due Loans by Loan Type (Details) - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | $ 658,290 | $ 653,746 |
Total Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 2,944 | 2,423 |
30-59 Days Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 2,944 | 0 |
60-89 Days Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 0 | 2,423 |
Greater than 90 Days Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 0 | 0 |
Current [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 655,346 | 651,323 |
Real Estate [Member] | Single Family [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 40,145 | 45,372 |
Real Estate [Member] | Single Family [Member] | Total Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 0 | 0 |
Real Estate [Member] | Single Family [Member] | 30-59 Days Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 0 | 0 |
Real Estate [Member] | Single Family [Member] | 60-89 Days Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 0 | 0 |
Real Estate [Member] | Single Family [Member] | Greater than 90 Days Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 0 | 0 |
Real Estate [Member] | Single Family [Member] | Current [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 40,145 | 45,372 |
Real Estate [Member] | Multi-Family [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 402,926 | 395,230 |
Real Estate [Member] | Multi-Family [Member] | Total Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 0 | 0 |
Real Estate [Member] | Multi-Family [Member] | 30-59 Days Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 0 | 0 |
Real Estate [Member] | Multi-Family [Member] | 60-89 Days Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 0 | 0 |
Real Estate [Member] | Multi-Family [Member] | Greater than 90 Days Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 0 | 0 |
Real Estate [Member] | Multi-Family [Member] | Current [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 402,926 | 395,230 |
Real Estate [Member] | Commercial Real Estate [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 90,402 | 93,193 |
Real Estate [Member] | Commercial Real Estate [Member] | Total Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 2,944 | 2,423 |
Real Estate [Member] | Commercial Real Estate [Member] | 30-59 Days Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 2,944 | 0 |
Real Estate [Member] | Commercial Real Estate [Member] | 60-89 Days Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 0 | 2,423 |
Real Estate [Member] | Commercial Real Estate [Member] | Greater than 90 Days Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 0 | 0 |
Real Estate [Member] | Commercial Real Estate [Member] | Current [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 87,458 | 90,770 |
Real Estate [Member] | Church [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 21,365 | 22,503 |
Real Estate [Member] | Church [Member] | Total Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 0 | 0 |
Real Estate [Member] | Church [Member] | 30-59 Days Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 0 | 0 |
Real Estate [Member] | Church [Member] | 60-89 Days Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 0 | 0 |
Real Estate [Member] | Church [Member] | Greater than 90 Days Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 0 | 0 |
Real Estate [Member] | Church [Member] | Current [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 21,365 | 22,503 |
Real Estate [Member] | Construction [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 33,938 | 32,072 |
Real Estate [Member] | Construction [Member] | Total Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 0 | 0 |
Real Estate [Member] | Construction [Member] | 30-59 Days Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 0 | 0 |
Real Estate [Member] | Construction [Member] | 60-89 Days Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 0 | 0 |
Real Estate [Member] | Construction [Member] | Greater than 90 Days Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 0 | 0 |
Real Estate [Member] | Construction [Member] | Current [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 33,938 | 32,072 |
Commercial - Other [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 53,880 | 46,539 |
Commercial - Other [Member] | Total Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 0 | 0 |
Commercial - Other [Member] | 30-59 Days Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 0 | 0 |
Commercial - Other [Member] | 60-89 Days Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 0 | 0 |
Commercial - Other [Member] | Greater than 90 Days Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 0 | 0 |
Commercial - Other [Member] | Current [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 53,880 | 46,539 |
SBA Loans [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 15,488 | 18,837 |
SBA Loans [Member] | Total Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 0 | 0 |
SBA Loans [Member] | 30-59 Days Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 0 | 0 |
SBA Loans [Member] | 60-89 Days Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 0 | 0 |
SBA Loans [Member] | Greater than 90 Days Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 0 | 0 |
SBA Loans [Member] | Current [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 15,488 | $ 18,837 |
Consumer [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 146 | |
Consumer [Member] | Total Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 0 | |
Consumer [Member] | 30-59 Days Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 0 | |
Consumer [Member] | 60-89 Days Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 0 | |
Consumer [Member] | Greater than 90 Days Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 0 | |
Consumer [Member] | Current [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | $ 146 |
Loans Receivable Held for Investment, Recorded Investment in Non-accrual Loans by Loan Type (Details) - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Loans Receivable Held for Investment [Abstract] | ||
Total non-accrual loans | $ 653 | $ 684 |
Loans 90 days or more delinquent that were accruing interest | 0 | 0 |
Recorded total loans | 658,290 | 653,746 |
Delinquent [Member] | ||
Loans Receivable Held for Investment [Abstract] | ||
Recorded total loans | 2,944 | 2,423 |
Real Estate [Member] | Church [Member] | ||
Loans Receivable Held for Investment [Abstract] | ||
Total non-accrual loans | 653 | 684 |
Recorded total loans | 21,365 | 22,503 |
Real Estate [Member] | Delinquent [Member] | Church [Member] | ||
Loans Receivable Held for Investment [Abstract] | ||
Recorded total loans | $ 0 | $ 0 |
Loans Receivable Held for Investment, Troubled Debt Restructurings (Details) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2022
USD ($)
Loan
|
Mar. 31, 2021
Loan
|
Dec. 31, 2021
USD ($)
|
|
Troubled Debt Restructurings [Abstract] | |||
Loans classified as troubled debt restructurings | $ 1,800 | $ 1,800 | |
Specific reserves allocated to TDRs | $ 7 | 7 | |
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 | $ 177 | 188 | |
Accrual Status [Member] | |||
Troubled Debt Restructurings [Abstract] | |||
Loans classified as troubled debt restructurings | $ 1,600 | $ 1,600 |
Loans Receivable Held for Investment, Credit Quality Indicators (Details) - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | $ 658,290 | $ 653,746 |
Pass [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 576,125 | 573,048 |
Watch [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 55,880 | 50,465 |
Special Mention [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 8,941 | 10,865 |
Substandard [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 17,335 | 19,368 |
Doubtful [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 9 | 0 |
Loss [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 0 | 0 |
Real Estate [Member] | Single Family [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 40,145 | 45,372 |
Real Estate [Member] | Single Family [Member] | Pass [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 38,135 | 42,454 |
Real Estate [Member] | Single Family [Member] | Watch [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 1,328 | 1,343 |
Real Estate [Member] | Single Family [Member] | Special Mention [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 268 | 271 |
Real Estate [Member] | Single Family [Member] | Substandard [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 414 | 1,304 |
Real Estate [Member] | Single Family [Member] | Doubtful [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 0 | 0 |
Real Estate [Member] | Single Family [Member] | Loss [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 0 | 0 |
Real Estate [Member] | Multi-Family [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 402,926 | 395,230 |
Real Estate [Member] | Multi-Family [Member] | Pass [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 385,748 | 378,141 |
Real Estate [Member] | Multi-Family [Member] | Watch [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 6,428 | 7,987 |
Real Estate [Member] | Multi-Family [Member] | Special Mention [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 2,540 | 575 |
Real Estate [Member] | Multi-Family [Member] | Substandard [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 8,210 | 8,527 |
Real Estate [Member] | Multi-Family [Member] | Doubtful [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 0 | 0 |
Real Estate [Member] | Multi-Family [Member] | Loss [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 0 | 0 |
Real Estate [Member] | Commercial Real Estate [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 90,402 | 93,193 |
Real Estate [Member] | Commercial Real Estate [Member] | Pass [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 70,078 | 69,257 |
Real Estate [Member] | Commercial Real Estate [Member] | Watch [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 9,589 | 7,034 |
Real Estate [Member] | Commercial Real Estate [Member] | Special Mention [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 5,970 | 9,847 |
Real Estate [Member] | Commercial Real Estate [Member] | Substandard [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 4,765 | 7,055 |
Real Estate [Member] | Commercial Real Estate [Member] | Doubtful [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 0 | 0 |
Real Estate [Member] | Commercial Real Estate [Member] | Loss [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 0 | 0 |
Real Estate [Member] | Church [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 21,365 | 22,503 |
Real Estate [Member] | Church [Member] | Pass [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 16,795 | 20,021 |
Real Estate [Member] | Church [Member] | Watch [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 931 | 0 |
Real Estate [Member] | Church [Member] | Special Mention [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 0 | 0 |
Real Estate [Member] | Church [Member] | Substandard [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 3,639 | 2,482 |
Real Estate [Member] | Church [Member] | Doubtful [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 0 | 0 |
Real Estate [Member] | Church [Member] | Loss [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 0 | 0 |
Real Estate [Member] | Construction [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 33,938 | 32,072 |
Real Estate [Member] | Construction [Member] | Pass [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 9,158 | 10,522 |
Real Estate [Member] | Construction [Member] | Watch [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 24,780 | 21,550 |
Real Estate [Member] | Construction [Member] | Special Mention [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 0 | 0 |
Real Estate [Member] | Construction [Member] | Substandard [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 0 | 0 |
Real Estate [Member] | Construction [Member] | Doubtful [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 0 | 0 |
Real Estate [Member] | Construction [Member] | Loss [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 0 | 0 |
Commercial - Other [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 53,880 | 46,539 |
Commercial - Other [Member] | Pass [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 41,397 | 33,988 |
Commercial - Other [Member] | Watch [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 12,167 | 12,551 |
Commercial - Other [Member] | Special Mention [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 0 | 0 |
Commercial - Other [Member] | Substandard [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 307 | 0 |
Commercial - Other [Member] | Doubtful [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 9 | 0 |
Commercial - Other [Member] | Loss [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 0 | 0 |
SBA Loans [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 15,488 | 18,837 |
SBA Loans [Member] | Pass [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 14,668 | 18,665 |
SBA Loans [Member] | Watch [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 657 | 0 |
SBA Loans [Member] | Special Mention [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 163 | 172 |
SBA Loans [Member] | Substandard [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 0 | 0 |
SBA Loans [Member] | Doubtful [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 0 | 0 |
SBA Loans [Member] | Loss [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 0 | $ 0 |
Consumer [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 146 | |
Consumer [Member] | Pass [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 146 | |
Consumer [Member] | Watch [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 0 | |
Consumer [Member] | Special Mention [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 0 | |
Consumer [Member] | Substandard [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 0 | |
Consumer [Member] | Doubtful [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 0 | |
Consumer [Member] | Loss [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | $ 0 |
Goodwill and Intangible Assets, Goodwill and Core Deposit Intangibles (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Apr. 01, 2021 |
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Changes in Carrying Amount of Goodwill [Roll Forward] | |||
Balance, beginning of period | $ 25,996 | ||
Additions | $ 26,000 | 0 | |
Change in deferred tax estimate | (138) | $ 0 | |
Impairment | 0 | ||
Balance, end of period | 25,858 | ||
Changes in Carrying Amount of Core Deposit Intangibles [Roll Forward] | |||
Balance, beginning of period | 2,936 | ||
Balance, end of period | 2,827 | ||
Core Deposit Intangible [Member] | |||
Changes in Carrying Amount of Core Deposit Intangibles [Roll Forward] | |||
Balance, beginning of period | 2,936 | ||
Additions | $ 3,300 | 0 | |
Change in deferred tax estimate | (109) | ||
Impairment | 0 | ||
Balance, end of period | $ 2,827 |
Goodwill and Intangible Assets, Estimated Amortization Expense (Details) - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Estimated amortization expense [Abstract] | ||
Net core deposit intangible | $ 2,827 | $ 2,936 |
Core Deposit Intangible [Member] | ||
Estimated amortization expense [Abstract] | ||
2022 | 326 | |
2023 | 390 | |
2024 | 336 | |
2025 | 315 | |
2026 | 304 | |
Thereafter | 1,156 | |
Net core deposit intangible | $ 2,827 | $ 2,936 |
Borrowings, Liabilities Securities Sold under Agreements to Repurchase (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Mar. 31, 2022 |
|
Repurchase Agreements [Abstract] | ||
Securities sold under agreements to repurchase | $ 51,960 | $ 56,003 |
Securities collateral pledged | $ 53,200 | 61,900 |
Weighted average rate on repurchase agreements | 0.10% | |
U.S. Government Agency Securities [Member] | ||
Repurchase Agreements [Abstract] | ||
Securities collateral pledged | $ 13,300 | 22,300 |
Mortgage Backed Securities [Member] | ||
Repurchase Agreements [Abstract] | ||
Securities collateral pledged | 39,900 | 33,500 |
Federal Agency CMO [Member] | ||
Repurchase Agreements [Abstract] | ||
Securities collateral pledged | 4,200 | 4,100 |
SBA Pools [Member] | ||
Repurchase Agreements [Abstract] | ||
Securities collateral pledged | $ 9,800 | $ 2,000 |
Borrowings, Other Borrowings (Details) $ in Thousands |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2022
USD ($)
Note
|
Dec. 31, 2021
USD ($)
|
|
Debt Instrument [Abstract] | ||
Advances from Federal Home Loan Banks | $ 73,001 | $ 85,952 |
Loans receivable | 653,375 | 648,513 |
Notes payable | $ 14,000 | 14,000 |
Number of notes payables | Note | 2 | |
Note A [Member] | ||
Debt Instrument [Abstract] | ||
Debt instrument, maturity date | Dec. 01, 2040 | |
Notes payable | $ 9,900 | |
Interest rate | 5.20% | |
Note B [Member] | ||
Debt Instrument [Abstract] | ||
Debt instrument, maturity date | Dec. 01, 2040 | |
Notes payable | $ 4,100 | |
Interest rate | 0.24% | |
Federal Home Loan Bank Advances [Member] | FHLB of San Francisco [Member] | ||
Debt Instrument [Abstract] | ||
Advances from Federal Home Loan Banks | $ 73,000 | $ 86,000 |
Weighted average interest rate | 1.66% | 1.85% |
Weighted average contractual maturity | 22 months | 22 months |
Federal Home Loan Bank Advances [Member] | FHLB of San Francisco [Member] | Asset Pledged as Collateral [Member] | ||
Debt Instrument [Abstract] | ||
Loans receivable | $ 106,500 | $ 165,000 |
Federal Home Loan Bank Advances [Member] | FHLB of Atlanta [Member] | ||
Debt Instrument [Abstract] | ||
Advances from Federal Home Loan Banks | $ 2,900 | |
Weighted average interest rate | 2.60% | |
Principal repayment per month | $ 12 | |
Debt instrument, maturity date | Jan. 06, 2025 | |
Federal Home Loan Bank Advances [Member] | FHLB of Atlanta [Member] | Asset Pledged as Collateral [Member] | ||
Debt Instrument [Abstract] | ||
Loans receivable | $ 22,400 |
Fair Value, Assets Measured on Recurring Basis (Details) - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Assets Measured on Recurring Basis [Abstract] | ||
Securities available-for-sale | $ 170,308 | $ 156,396 |
Federal Agency Mortgage-backed [Member] | ||
Assets Measured on Recurring Basis [Abstract] | ||
Securities available-for-sale | 74,885 | 70,030 |
Federal Agency CMO [Member] | ||
Assets Measured on Recurring Basis [Abstract] | ||
Securities available-for-sale | 8,548 | 9,287 |
Federal Agency Debt [Member] | ||
Assets Measured on Recurring Basis [Abstract] | ||
Securities available-for-sale | 40,267 | 37,988 |
Municipal Bonds [Member] | ||
Assets Measured on Recurring Basis [Abstract] | ||
Securities available-for-sale | 4,536 | 4,915 |
US Treasuries [Member] | ||
Assets Measured on Recurring Basis [Abstract] | ||
Securities available-for-sale | 27,064 | 17,951 |
SBA Pools [Member] | ||
Assets Measured on Recurring Basis [Abstract] | ||
Securities available-for-sale | 15,008 | 16,225 |
Recurring Basis [Member] | Federal Agency Mortgage-backed [Member] | ||
Assets Measured on Recurring Basis [Abstract] | ||
Securities available-for-sale | 79,222 | 70,030 |
Recurring Basis [Member] | Federal Agency CMO [Member] | ||
Assets Measured on Recurring Basis [Abstract] | ||
Securities available-for-sale | 8,910 | 9,287 |
Recurring Basis [Member] | Federal Agency Debt [Member] | ||
Assets Measured on Recurring Basis [Abstract] | ||
Securities available-for-sale | 42,035 | 37,988 |
Recurring Basis [Member] | Municipal Bonds [Member] | ||
Assets Measured on Recurring Basis [Abstract] | ||
Securities available-for-sale | 4,890 | 4,915 |
Recurring Basis [Member] | US Treasuries [Member] | ||
Assets Measured on Recurring Basis [Abstract] | ||
Securities available-for-sale | 26,168 | 17,951 |
Recurring Basis [Member] | SBA Pools [Member] | ||
Assets Measured on Recurring Basis [Abstract] | ||
Securities available-for-sale | 15,770 | 16,225 |
Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Federal Agency Mortgage-backed [Member] | ||
Assets Measured on Recurring Basis [Abstract] | ||
Securities available-for-sale | 0 | 0 |
Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Federal Agency CMO [Member] | ||
Assets Measured on Recurring Basis [Abstract] | ||
Securities available-for-sale | 0 | 0 |
Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Federal Agency Debt [Member] | ||
Assets Measured on Recurring Basis [Abstract] | ||
Securities available-for-sale | 0 | 0 |
Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Municipal Bonds [Member] | ||
Assets Measured on Recurring Basis [Abstract] | ||
Securities available-for-sale | 0 | 0 |
Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | US Treasuries [Member] | ||
Assets Measured on Recurring Basis [Abstract] | ||
Securities available-for-sale | 0 | 0 |
Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | SBA Pools [Member] | ||
Assets Measured on Recurring Basis [Abstract] | ||
Securities available-for-sale | 0 | 0 |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Federal Agency Mortgage-backed [Member] | ||
Assets Measured on Recurring Basis [Abstract] | ||
Securities available-for-sale | 79,222 | 70,030 |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Federal Agency CMO [Member] | ||
Assets Measured on Recurring Basis [Abstract] | ||
Securities available-for-sale | 8,910 | 9,287 |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Federal Agency Debt [Member] | ||
Assets Measured on Recurring Basis [Abstract] | ||
Securities available-for-sale | 42,035 | 37,988 |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Municipal Bonds [Member] | ||
Assets Measured on Recurring Basis [Abstract] | ||
Securities available-for-sale | 4,890 | 4,915 |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | US Treasuries [Member] | ||
Assets Measured on Recurring Basis [Abstract] | ||
Securities available-for-sale | 26,168 | 17,951 |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | SBA Pools [Member] | ||
Assets Measured on Recurring Basis [Abstract] | ||
Securities available-for-sale | 15,770 | 16,225 |
Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Federal Agency Mortgage-backed [Member] | ||
Assets Measured on Recurring Basis [Abstract] | ||
Securities available-for-sale | 0 | 0 |
Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Federal Agency CMO [Member] | ||
Assets Measured on Recurring Basis [Abstract] | ||
Securities available-for-sale | 0 | 0 |
Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Federal Agency Debt [Member] | ||
Assets Measured on Recurring Basis [Abstract] | ||
Securities available-for-sale | 0 | 0 |
Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Municipal Bonds [Member] | ||
Assets Measured on Recurring Basis [Abstract] | ||
Securities available-for-sale | 0 | 0 |
Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | US Treasuries [Member] | ||
Assets Measured on Recurring Basis [Abstract] | ||
Securities available-for-sale | 0 | 0 |
Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | SBA Pools [Member] | ||
Assets Measured on Recurring Basis [Abstract] | ||
Securities available-for-sale | $ 0 | $ 0 |
Fair Value, Assets Measured on Non-Recurring Basis (Details) - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
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 |
Fair Value, Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Financial Assets [Abstract] | ||
Securities available-for-sale | $ 170,308 | $ 156,396 |
Carrying Value [Member] | ||
Financial Assets [Abstract] | ||
Cash and cash equivalents | 246,106 | 231,520 |
Securities available-for-sale | 170,308 | 156,396 |
Loans receivable held for investment | 653,375 | 648,513 |
Accrued interest receivable | 2,449 | 3,372 |
Bank owned life insurance | 3,200 | 3,190 |
Financial Liabilities [Abstract] | ||
Deposits | 839,714 | 788,052 |
Federal Home Loan Bank advances | 73,001 | 85,952 |
Securities sold under agreements to repurchase | 56,003 | 51,960 |
Notes payable | 14,000 | 14,000 |
Accrued interest payable | 135 | 119 |
Fair Value [Member] | ||
Financial Assets [Abstract] | ||
Cash and cash equivalents | 246,106 | 231,520 |
Securities available-for-sale | 170,308 | 156,396 |
Loans receivable held for investment | 598,354 | 623,778 |
Accrued interest receivable | 2,449 | 3,372 |
Bank owned life insurance | 3,200 | 3,190 |
Financial Liabilities [Abstract] | ||
Deposits | 784,698 | 754,181 |
Federal Home Loan Bank advances | 72,037 | 87,082 |
Securities sold under agreements to repurchase | 52,873 | 51,960 |
Notes payable | 14,000 | 14,000 |
Accrued interest payable | 135 | 119 |
Fair Value [Member] | Level 1 [Member] | ||
Financial Assets [Abstract] | ||
Cash and cash equivalents | 246,106 | 231,520 |
Securities available-for-sale | 0 | 0 |
Loans receivable held for investment | 0 | 0 |
Accrued interest receivable | 1 | 19 |
Bank owned life insurance | 3,200 | 3,190 |
Financial Liabilities [Abstract] | ||
Deposits | 0 | 0 |
Federal Home Loan Bank advances | 0 | 0 |
Securities sold under agreements to repurchase | 0 | 0 |
Notes payable | 0 | 0 |
Accrued interest payable | 0 | 0 |
Fair Value [Member] | Level 2 [Member] | ||
Financial Assets [Abstract] | ||
Cash and cash equivalents | 0 | 0 |
Securities available-for-sale | 170,308 | 156,396 |
Loans receivable held for investment | 0 | 0 |
Accrued interest receivable | 266 | 1,089 |
Bank owned life insurance | 0 | 0 |
Financial Liabilities [Abstract] | ||
Deposits | 784,698 | 754,181 |
Federal Home Loan Bank advances | 72,037 | 87,082 |
Securities sold under agreements to repurchase | 52,873 | 51,960 |
Notes payable | 14,000 | 14,000 |
Accrued interest payable | 135 | 119 |
Fair Value [Member] | Level 3 [Member] | ||
Financial Assets [Abstract] | ||
Cash and cash equivalents | 0 | 0 |
Securities available-for-sale | 0 | 0 |
Loans receivable held for investment | 598,354 | 623,778 |
Accrued interest receivable | 2,182 | 2,264 |
Bank owned life insurance | 0 | 0 |
Financial Liabilities [Abstract] | ||
Deposits | 0 | 0 |
Federal Home Loan Bank advances | 0 | 0 |
Securities sold under agreements to repurchase | 0 | 0 |
Notes payable | 0 | 0 |
Accrued interest payable | $ 0 | $ 0 |
Stock-based Compensation (Details) - 2018 LTIP [Member] - USD ($) $ in Thousands |
1 Months Ended | 3 Months Ended | ||||
---|---|---|---|---|---|---|
Mar. 31, 2022 |
Feb. 28, 2022 |
Feb. 28, 2021 |
Mar. 31, 2022 |
Mar. 31, 2021 |
Dec. 31, 2018 |
|
Stock-based Compensation [Abstract] | ||||||
Contractual term of option awards | 10 years | |||||
Maximum number of shares that can be awarded (in shares) | 1,293,109 | |||||
Aggregate number of shares awarded to date under the plan (in shares) | 1,023,513 | 1,023,513 | ||||
Shares available for awards (in shares) | 269,596 | 269,596 | ||||
Directors [Member] | Restricted Stock [Member] | ||||||
Stock-based Compensation [Abstract] | ||||||
Restricted stock awards issued (in shares) | 47,187 | 20,736 | ||||
Restricted stock awards vested (in shares) | 47,187 | 20,736 | ||||
Stock based compensation expense | $ 84 | $ 45 | ||||
Chief Executive Officer [Member] | Restricted Stock [Member] | ||||||
Stock-based Compensation [Abstract] | ||||||
Restricted stock awards issued (in shares) | 495,262 | |||||
Officers and Employees [Member] | Restricted Stock [Member] | ||||||
Stock-based Compensation [Abstract] | ||||||
Restricted stock awards issued (in shares) | 0 | |||||
Stock based compensation expense | $ 119 | |||||
Officers and Employees [Member] | Restricted Stock [Member] | Minimum [Member] | ||||||
Stock-based Compensation [Abstract] | ||||||
Award vesting period | 36 years | |||||
Officers and Employees [Member] | Restricted Stock [Member] | Maximum [Member] | ||||||
Stock-based Compensation [Abstract] | ||||||
Award vesting period | 60 years |
Stock-based Compensation, Stock Option Activity (Details) - Stock Options [Member] - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Number Outstanding [Roll Forward] | ||
Outstanding at beginning of period (in shares) | 450,000 | 450,000 |
Granted during period (in shares) | 0 | 0 |
Exercised during period (in shares) | 0 | 0 |
Forfeited or expired during period (in shares) | 0 | 0 |
Outstanding at end of period (in shares) | 450,000 | 450,000 |
Exercisable at end of period (in shares) | 450,000 | 450,000 |
Weighted Average Exercise Price [Abstract] | ||
Outstanding at beginning of period (in dollars per share) | $ 1.62 | $ 1.62 |
Granted during period (in dollars per share) | 0 | 0 |
Exercised during period (in dollars per share) | 0 | 0 |
Forfeited or expired during period (in dollars per share) | 0 | 0 |
Outstanding at end of period (in dollars per share) | 1.62 | 1.62 |
Exercisable at end of period (in dollars per share) | $ 1.62 | $ 1.62 |
Share-based Compensation Arrangement by Share-based Payment Award, Additional General Disclosures [Abstract] | ||
Stock based compensation expense | $ 0 | $ 6 |
Stock-based Compensation, Options Outstanding and Exercisable (Details) - Stock Options [Member] $ / shares in Units, $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2022
USD ($)
$ / shares
shares
| |
Options, Outstanding [Abstract] | |
Number Outstanding (in shares) | shares | 450,000 |
Weighted Average Remaining Contractual Life | 4 years 4 months 24 days |
Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 1.62 |
Aggregate Intrinsic Value | $ | $ 0 |
Options, Exercisable [Abstract] | |
Number Outstanding ( in shares) | shares | 450,000 |
Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 1.62 |
Aggregate Intrinsic Value | $ | $ 0 |
ESOP Plan (Details) - USD ($) $ / shares in Units, $ in Thousands |
1 Months Ended | 3 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2016 |
Mar. 31, 2022 |
Mar. 31, 2021 |
Dec. 31, 2021 |
|
ESOP Plan [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 | $ 18 | $ 23 | ||
Shares Held by ESOP [Abstract] | ||||
Allocated to participants (in shares) | 1,087,216 | 1,087,216 | ||
Committed to be released (in shares) | 20,128 | 10,064 | ||
Suspense shares (in shares) | 512,554 | 521,618 | ||
Total ESOP shares (in shares) | 1,619,898 | 1,618,898 | ||
Fair value of unearned shares | $ 933 | $ 1,454 | ||
Unearned ESOP shares | $ 813 | $ 829 |
Regulatory Matters and Stockholders' Equity (Details) $ / shares in Units, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022
USD ($)
$ / shares
shares
|
Dec. 31, 2021
USD ($)
|
|
Actual [Abstract] | ||
Community Bank Leverage Ratio, Amount | $ 99,993 | $ 98,590 |
Community Bank Leverage Ratio, Ratio | 0.0945 | 0.0932 |
Minimum Required To Be Well Capitalized Under Prompt Corrective Action Provisions [Abstract] | ||
Community Bank Leverage Ratio, Amount | $ 95,129 | $ 89,871 |
Community Bank Leverage Ratio, Ratio | 0.0900 | 0.0850 |
Cumulative Redeemable Perpetual Preferred stock, Series A [Member] | ||
Stockholders' Equity [Abstract] | ||
Preferred stock, liquidation value | $ 3,000 | |
Common Class A [Member] | ||
Stockholders' Equity [Abstract] | ||
Common stock, shares upon conversion from preferred stock (in shares) | shares | 1,193,317 | |
Exchange price (in dollars per share) | $ / shares | $ 2.51 |
Income Taxes (Details) $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2022
USD ($)
| |
Valuation Allowance [Abstract] | |
Cumulative losses lookback period | 2 years |
Deferred tax assets, valuation allowance | $ 369 |
Concentration of Credit Risk (Details) - Customer Concentration Risk [Member] |
3 Months Ended |
---|---|
Mar. 31, 2022
Customer
| |
Deposits [Member] | |
Concentration Percentage [Abstract] | |
Number of significant customers | 1 |
Deposits [Member] | One Customer [Member] | |
Concentration Percentage [Abstract] | |
Percentage of concentration risk | 16.00% |
Securities Sold under Agreements to Repurchase [Member] | |
Concentration Percentage [Abstract] | |
Number of significant customers | 1 |
Securities Sold under Agreements to Repurchase [Member] | One Customer [Member] | |
Concentration Percentage [Abstract] | |
Percentage of concentration risk | 74.00% |
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