Total Assets and Liabilities - Total assets decreased by $2.3 million at September 30, 2024 compared to December 31, 2023, primarily due to decreases in securities available-for-sale of $78.5 million, cash and cash equivalents of $8.1 million, other assets of $1.3 million, and deferred tax assets of $1.1 million, partially offset by growth in net loans of $86.3 million[100] - Total liabilities decreased by $6.8 million to $1.1 billion at September 30, 2024, driven by reductions in notes payable and deposits[136] - Total assets decreased by $2.3 million as of September 30, 2024, primarily due to a $78.5 million decrease in securities available-for-sale, partially offset by an $86.3 million increase in net loans[120] Loans and Loan Portfolio - Loans held for investment, net of the ACL, increased by $86.3 million to $966.8 million at September 30, 2024, compared to $880.5 million at December 31, 2023, driven by loan originations of $136.2 million during the first nine months of 2024[101] - Loans receivable grew to $963,849 thousand with an average yield of 5.28% for the three months ended September 30, 2024, up from $822,031 thousand with an average yield of 4.58% for the same period in 2023[110] - Loans receivable held for investment increased by $86.3 million to $966.8 million as of September 30, 2024, driven by $136.2 million in loan originations, partially offset by $49.9 million in payoffs and repayments[123] - Multi-family loans in their initial fixed period totaled $592.4 million, representing 60.8% of the loan portfolio as of September 30, 2024[125] Deposits - Deposits decreased by $10.4 million to $672.2 million at September 30, 2024, from $682.6 million at December 31, 2023, with uninsured deposits representing 34% of total deposits, down from 37% at the end of 2023[102] - Total deposits increased to $570,512 thousand with an average cost of 2.24% for the three months ended September 30, 2024, compared to $572,104 thousand with an average cost of 1.49% for the same period in 2023[110] - Deposits decreased by $10.4 million to $672.2 million at September 30, 2024, with uninsured deposits representing 34% of total deposits, down from 37% at December 31, 2023[137] - Two customers accounted for approximately 12% of the Bank's deposits as of September 30, 2024[155] Net Income and Profitability - Net income attributable to Broadway Financial Corporation increased by $431 thousand to $522 thousand for the three months ended September 30, 2024, compared to $91 thousand for the same period in 2023[104] - Net income attributable to Broadway decreased to $627 thousand for the nine months ended September 30, 2024, compared to $1.9 million for the same period in 2023, primarily due to a $3.0 million increase in non-interest expense[105] Net Interest Income and Margin - Net interest income before provision for credit losses increased by $1.5 million, or 23.0%, to $8.3 million for the third quarter of 2024, driven by higher interest income of $4.2 million, partially offset by a $2.7 million increase in interest expense[107] - Net interest margin increased to 2.49% for the third quarter of 2024 from 2.33% for the third quarter of 2023, reflecting higher rates earned on interest-earning assets[107] - Net interest income before provision for credit losses for the nine months ended September 30, 2024 totaled $23.8 million, an increase of $1.5 million, or 6.5%, from the same period in 2023, driven by higher interest income of $11.8 million[108] - Net interest margin decreased to 2.38% for the nine months ended September 30, 2024, compared to 2.60% for the same period in 2023[108] - Net interest rate margin improved to 2.49% for the three months ended September 30, 2024, up from 2.33% for the same period in 2023[110] Interest-Earning Assets and Costs - Total interest-earning assets increased to $1,333,086 thousand with an average yield of 4.82% for the three months ended September 30, 2024, compared to $1,165,064 thousand with an average yield of 4.09% for the same period in 2023[110] - The average cost of funds increased to 3.14% for the nine months ended September 30, 2024, from 2.00% for the same period in 2023, due to higher average balances of borrowings and higher rates paid on borrowings and deposits[108] Credit Losses and Allowance - The company recorded a provision for credit losses of $399 thousand for the three months ended September 30, 2024, compared to a recovery of $2 thousand for the same period in 2023[113] - The allowance for credit losses increased to $8.5 million as of September 30, 2024, compared to $7.3 million as of December 31, 2023, due to growth in the loan portfolio[114] - The company recorded a provision for credit losses of $1.2 million for the nine months ended September 30, 2024, compared to $808 thousand for the same period in 2023[113] - The ACL (Allowance for Credit Losses) was $8.5 million, or 0.87% of gross loans held for investment at September 30, 2024, compared to $7.3 million, or 0.83% at December 31, 2023[131] - Collateral dependent loans totaled $36 thousand at September 30, 2024, down from $6.4 million at December 31, 2023, with an ACL of $0 and $112 thousand respectively[132] - Non-accrual loans were $291 thousand at September 30, 2024, while loan delinquencies for 30-90 days increased to $1.7 million from $780 thousand at December 31, 2023[133] Non-Interest Income and Expense - Non-interest income for the third quarter of 2024 totaled $416 thousand, compared to $331 thousand for the third quarter of 2023[114] - Total non-interest expense increased by $613 thousand, or 8.8%, to $7.6 million for the third quarter of 2024, primarily due to higher professional and accounting fees[116] - Non-interest income for the first nine months of 2024 totaled $995 thousand, compared to $880 thousand for the same period in the prior year[115] - Non-interest expense for the first nine months of 2024 increased by $3.0 million (15.4%) to $22.7 million, driven by higher compensation and benefits ($1.4 million) and professional services ($1.2 million) expenses[117] Income Tax - Income tax expense for Q3 2024 was $209 thousand, up from $39 thousand in Q3 2023, with an effective tax rate of 27.76% compared to 31.20%[118] - Income tax expense for the nine months ended September 30, 2024, decreased to $298 thousand from $806 thousand in the same period in 2023, with an effective tax rate of 32.04% compared to 29.49%[119] Securities and Investments - Securities available-for-sale decreased by $78.5 million to $238.5 million as of September 30, 2024, mainly due to maturities and principal paydowns[120] - Securities sold under repurchase agreements totaled $89.8 million at an average rate of 3.68% as of September 30, 2024, up from $73.5 million at 2.60% at December 31, 2023[141] Borrowings and Liquidity - The Company had outstanding FHLB advances of $208.6 million at September 30, 2024, with a weighted interest rate of 4.35% and a weighted average maturity of two months[140] - The Company borrowed $100.0 million from the Federal Reserve under the BTFP, with an interest rate of 4.84% and a maturity date of December 29, 2024[143] - The Bank had the ability to borrow an additional $133.9 million from the FHLB of Atlanta as of September 30, 2024[152] - Liquid assets at September 30, 2024 included $97.1 million in cash and cash equivalents and $35.0 million in unpledged securities available-for-sale[153] Commitments and Funding - The Bank had commitments to fund $923 thousand in approved but unfunded loans, $3.7 million in unfunded line of credit loans, and $47.5 million in unfunded construction loans as of September 30, 2024[154] Stockholders' Equity and Capital - Stockholders' equity was $286.4 million, or 20.9% of total assets, at September 30, 2024, compared to $281.9 million, or 20.5%, at December 31, 2023[145] - The Company issued 94,413 shares of restricted stock to officers and employees under the Amended and Restated LTIP on March 26, 2024[148] - Common book value increased to $136,392 thousand as of September 30, 2024, up from $131,903 thousand at December 31, 2023[151] - Tangible book value rose to $108,675 thousand as of September 30, 2024, compared to $103,934 thousand at December 31, 2023[151] - The Bank exceeded all capital adequacy requirements and was considered "well capitalized" as of September 30, 2024[159] Cash Flows - Consolidated net cash outflows from investing activities were $2.7 million for the nine months ended September 30, 2024, compared to $61.5 million for the same period in 2023[157] - Consolidated net cash outflows from financing activities were $9.6 million for the nine months ended September 30, 2024, compared to net cash inflows of $52.9 million for the same period in 2023[158] Internal Controls and Remediation - The Company identified material weaknesses in internal control over financial reporting and has implemented a remediation plan, including hiring additional senior personnel and engaging a third-party firm to review general ledger account reconciliations[164][166] - The company's disclosure controls and procedures were not effective as of September 30, 2024, due to material weaknesses in internal control over financial reporting[162] - A material weakness was identified due to insufficient personnel with appropriate knowledge and experience in internal control matters, leading to failures in designing and implementing certain internal controls[164] - The company did not effectively design and implement controls over consolidation, financial statement reporting, and monthly close processes, resulting in unidentified or stale reconciling items in general ledger account reconciliations[165] - The company hired additional senior personnel with relevant experience and training to address the material weaknesses and engaged a third-party firm to review general ledger account reconciliations[166] - Remediation efforts are ongoing, and the material weaknesses cannot be considered remediated until the controls operate effectively for a sufficient period and are tested by management[167] - No other changes in internal control over financial reporting occurred during the three months ended September 30, 2024, except for the remediation activities discussed[169]

News Release Exhibit 99.1 FOR IMMEDIATE RELEASE Broadway Financial Corporation Announces Results for Third Quarter 2024 LOS ANGELES, CA – (BUSINESS WIRE) – October 29, 2024 – Broadway Financial Corporation ("Broadway" or the "Company") (NASDAQ: BYFC), parent company of City First Bank, National Association (the "Bank", and collectively, with the Company, "we" or "City First Broadway"), reported net income attributable to Broadway of $522 thousand for the third quarter of 2024 compared to $91 thousand for th ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For transition period from__________ to___________ Commission file number 001-39043 BROADWAY FINANCIAL CORPORATION (Exact name of registrant as specified in its charter) Delaware 95-4547287 (St ...

Total non-interest expense was $7.3 million for the second quarter of 2024, compared to $6.4 million for the second quarter of 2023, representing an increase of $859 thousand, or 13.4%. The increase was primarily due to an increase of $735 thousand in compensation and benefits expense, which reflects the investment in additional executives and staff to support growth and strengthen overall controls and management depth. As previously reported, the Company hired a new Chief Financial Officer. The Company als ...

Exhibit 99.1 Broadway Financial Corporation Announces Results for First Quarter 2024 During the first quarter of 2024, net interest income decreased by $750 thousand, or 9.1%, to $7.5 million, compared to the first quarter of 2023. The decrease resulted from higher interest expense, primarily due to an increase in the cost of borrowings and deposits. During the first quarter of 2024, non-interest expense increased $1.6 million, or 25.8%, compared to the first quarter of 2023 due to increases of $905 thousan ...

Financial Reporting and Controls - The company identified material weaknesses in risk assessment, control activities, and monitoring activities related to financial reporting[238] - Remediation efforts are ongoing to address material weaknesses, including hiring additional senior personnel and engaging a third-party firm to review general ledger account reconciliations[244] - The company's disclosure controls and procedures are designed to provide reasonable assurance of timely and accurate financial reporting, but there is no assurance they will operate effectively under all circumstances[236] Capital and Regulatory Compliance - The company and the bank met all capital adequacy requirements and the bank was "well capitalized" under regulatory frameworks as of March 31, 2024[148] Deferred Tax Assets and Liabilities - The company maintained a $449 thousand valuation allowance on its deferred tax assets due to limitations triggered by private placements completed on April 6, 2021[150] - The company's deferred tax assets and liabilities are determined using the liability method, with a valuation allowance established when it is more likely than not that some or all deferred tax assets will not be realized[251] Customer Concentration - Two customers accounted for approximately 12% of the bank's deposits as of March 31, 2024[151] - One customer accounted for 86% of the outstanding balance of securities sold under agreements to repurchase as of March 31, 2024[151] ESOP and Share Valuation - The value of unearned ESOP shares was $4.4 million at March 31, 2024, compared to $4.5 million at December 31, 2023[146] Credit Loss Estimation - The company's ACL model uses the weighted-average remaining maturity (WARM) method to estimate expected credit losses, incorporating historical loss experience and qualitative factors[142]

Net Interest Income Net interest income before provision for credit losses for the nine months ended September 30, 2023, totaled $22.3 million, representing a decrease of $1.5 million, or 6.3%, from net interest income before loan loss provision of $23.8 million for the nine months ended September 30, 2022. The decrease resulted from higher interest expense, primarily due to an increase in the cost of borrowings and deposits, and to a lesser extent, from an increase in average borrowings, which was needed t ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 (Mark One) ☒ 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 Commission file number 001-39043 Delaware 95-4547287 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) (323) 634-1700 (Registrant's telephone number, including area code) Indicate by check mark whether the regi ...

| --- | --- | --- | --- | --- | --- | |------------------------------------------------------------------|------------------------|-------|----------------|-------------------|--------------------| | | | | Goodwill \n(In | Core \nthousands) | Deposit Intangible | | | | $ | 25,858 | $ | 2,501 | | | | | – | | – | | | | | – | | – | | | | | – | | (98) | | | | $ | 25,858 | $ | 2,403 | | | | | | | | | consisted of the following at March 31, 2023 (in | intangible thousands): | | | | | | | | | | $ | 3,329 | | | | | ...

The macroeconomic environment could pose significant challenges for the Company and could adversely affect our financial condition and ● reviews of the quality, mix and size of the overall loan portfolio; Negative public opinion regarding us or the failure to maintain our reputation in the communities we serve could adversely affect our business and prevent us from growing our business. Our reputation within the communities we serve is critical to our success. We believe we have built strong personal and pr ...