PART I. FINANCIAL INFORMATION This section presents the company's consolidated financial statements and management's analysis of its financial condition and results of operations [Consolidated Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Consolidated%20Financial%20Statements%20(Unaudited)) The unaudited consolidated financial statements for the period ended June 30, 2021, reflect the significant impact of the CFBanc merger, leading to substantial increases in assets, liabilities, and equity, a Q2 2021 net income of $701 thousand, and a six-month net loss of $2.8 million due to merger-related expenses [Consolidated Statements of Financial Condition](index=3&type=section&id=Consolidated%20Statements%20of%20Financial%20Condition) As of June 30, 2021, total assets more than doubled to $1.04 billion, primarily due to the CFBanc merger, which significantly increased loans, securities, and cash, and recognized $26.0 million in goodwill, while total liabilities grew to $897.5 million and stockholders' equity nearly tripled to $143.5 million Consolidated Balance Sheet Highlights (in thousands) | Financial Metric | June 30, 2021 | December 31, 2020 | Change | | :--- | :--- | :--- | :--- | | **Total Assets** | **$1,040,998** | **$483,378** | **+115.4%** | | Cash and cash equivalents | $210,383 | $96,109 | +118.9% | | Loans receivable, net | $614,718 | $360,129 | +70.7% | | Goodwill | $25,996 | $0 | N/A | | **Total Liabilities** | **$897,503** | **$434,493** | **+106.6%** | | Deposits | $705,041 | $315,630 | +123.4% | | **Total Stockholders' Equity** | **$143,463** | **$48,885** | **+193.4%** | [Consolidated Statements of Operations and Comprehensive Income (Loss)](index=4&type=section&id=Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income%20(Loss)) For Q2 2021, net income attributable to the corporation was $701 thousand, boosted by higher net interest income and a $1.8 million CDFI grant, but the first six months resulted in a net loss of $2.8 million, primarily due to substantial non-interest expenses including merger-related costs Key Operating Results (in thousands, except per share data) | Metric | Q2 2021 | Q2 2020 | H1 2021 | H1 2020 | | :--- | :--- | :--- | :--- | :--- | | Net Interest Income | $5,821 | $3,031 | $8,666 | $5,929 | | Non-interest Income | $2,192 | $242 | $2,315 | $439 | | Non-interest Expense | $5,374 | $3,402 | $14,001 | $6,551 | | **Net Income (Loss) Attributable to BFC** | **$701** | **$216** | **($2,786)** | **$183** | | **EPS - Diluted** | **$0.01** | **$0.01** | **($0.06)** | **$0.01** | - Non-interest income in Q2 2021 was significantly boosted by a **$1.826 million** grant from the Community Development Financial Institution (CDFI) Fund[11](index=11&type=chunk) [Consolidated Statements of Cash Flows](index=5&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the first six months of 2021, net cash from financing activities was a strong inflow of $58.5 million, driven by stock sales and deposit increases, while investing activities provided $58.4 million, primarily from cash acquired in the merger, and operating activities used $2.6 million, leading to an overall increase of $114.3 million in cash and cash equivalents Cash Flow Summary for the Six Months Ended June 30 (in thousands) | Cash Flow Category | 2021 | 2020 | | :--- | :--- | :--- | | Net Cash from Operating Activities | ($2,570) | ($49,154) | | Net Cash from Investing Activities | $58,362 | $23,392 | | Net Cash from Financing Activities | $58,482 | $50,044 | | **Net Change in Cash** | **$114,274** | **$24,282** | | Cash at End of Period | $210,383 | $39,848 | - Investing activities were dominated by **$84.7 million** in cash acquired from the merger[13](index=13&type=chunk) - Financing activities were primarily driven by **$30.8 million** in net proceeds from a stock sale and a **$35.7 million** net increase in deposits[13](index=13&type=chunk) [Consolidated Statements of Changes in Stockholders' Equity](index=7&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Stockholders%27%20Equity) Stockholders' equity increased dramatically from $48.9 million to $143.5 million by June 30, 2021, primarily due to stock issuance for the CFBanc merger and a subsequent private placement, partially offset by a $2.8 million net loss - Total stockholders' equity grew from **$48.9 million** on January 1, 2021, to **$143.5 million** on June 30, 2021[19](index=19&type=chunk) - Key drivers of the equity increase were the issuance of **$3.0 million** in preferred stock and **$63.3 million** in common stock for the business combination, and an additional **$30.8 million** from a private placement[17](index=17&type=chunk)[19](index=19&type=chunk) - The growth in equity was partially offset by a net loss of **$2.8 million** for the six-month period[19](index=19&type=chunk) [Notes to Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail significant accounting events, dominated by the CFBanc merger, including $26.0 million in goodwill, a $32.9 million capital raise, the expanded loan and securities portfolios, the bank's strong CBLR capital position, and a $370 thousand impairment on deferred tax assets due to an ownership change - The company completed its merger with CFBanc Corporation on April 1, 2021, acquiring **$471.0 million** in total assets, **$227.7 million** in gross loans, and **$353.7 million** in total deposits[42](index=42&type=chunk)[43](index=43&type=chunk)[46](index=46&type=chunk) - The transaction was valued at approximately **$66.3 million** and resulted in **$26.0 million** of goodwill[42](index=42&type=chunk)[43](index=43&type=chunk)[46](index=46&type=chunk) - On April 6, 2021, the company raised **$32.9 million** in gross proceeds (**$30.8 million** net) by selling **18.47 million** shares of common stock in private placements at **$1.78 per share**[56](index=56&type=chunk) - Gross loans receivable increased to **$618.0 million** from **$363.3 million** at year-end 2020, primarily due to the merger[71](index=71&type=chunk) - The allowance for loan losses (ALLL) stood at **$3.3 million**, or **0.53%** of gross loans[71](index=71&type=chunk)[196](index=196&type=chunk) - The bank elected to adopt the Community Bank Leverage Ratio (CBLR) and reported a ratio of **10.10%** at June 30, 2021, exceeding the **8.5%** minimum to be considered 'well capitalized'[138](index=138&type=chunk)[140](index=140&type=chunk) - A **$370 thousand** impairment was recorded on deferred tax assets due to limitations on the use of Net Operating Losses (NOLs) under Section 382 of the tax code, triggered by the ownership change from the private placements[143](index=143&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=34&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management's discussion centers on the transformative CFBanc merger, which more than doubled assets to over $1 billion, highlighting a profitable Q2 driven by expanded net interest income and a CDFI grant, but a H1 net loss due to $5.6 million in merger costs, with a successful $30.8 million post-merger capital raise strengthening the bank's 'well capitalized' position [Overview](index=34&type=section&id=MD%26A%20Overview) The company's financial landscape was fundamentally altered by the CFBanc merger, increasing total assets to $1.041 billion, resulting in a profitable Q2 2021 but a H1 net loss of $2.8 million due to $5.6 million in merger-related expenses, with a successful $30.8 million post-merger private placement bolstering capital - The merger with CFBanc Corporation on April 1, 2021, was the most significant event, increasing total assets from **$483.4 million** to **$1.041 billion**[154](index=154&type=chunk)[156](index=156&type=chunk) - A net loss of **$2.8 million** for the first six months of 2021 was primarily due to **$5.6 million** in merger-related costs[160](index=160&type=chunk) - The company raised **$32.9 million** in gross proceeds (**$30.8 million** net) from private placements immediately following the merger[159](index=159&type=chunk) [Results of Operations](index=35&type=section&id=MD%26A%20Results%20of%20Operations) Net interest income for Q2 2021 nearly doubled to $5.8 million due to the merger, though net interest margin compressed to 2.33%, while non-interest income surged to $2.2 million from a CDFI grant, and H1 non-interest expenses rose to $14.0 million due to $5.6 million in merger costs, resulting in a high 71.3% effective tax rate in Q2 from deferred tax asset impairment Net Interest Income and Margin | Period | Net Interest Income | Net Interest Margin | | :--- | :--- | :--- | | Q2 2021 | $5.8 million | 2.33% | | Q2 2020 | $3.0 million | 2.43% | | H1 2021 | $8.7 million | 2.35% | | H1 2020 | $5.9 million | 2.45% | - Non-interest income for Q2 2021 was **$2.2 million**, primarily due to a **$1.8 million** grant from the CDFI Fund[185](index=185&type=chunk) - Non-interest expense for H1 2021 totaled **$14.0 million**, which included **$5.6 million** in merger-related expenses[188](index=188&type=chunk) - The company recorded a high effective tax rate of **71.3%** in Q2 2021, reflecting a **$370 thousand** valuation allowance on deferred tax assets due to tax code limitations triggered by the recent capital raise[189](index=189&type=chunk) [Financial Condition](index=41&type=section&id=MD%26A%20Financial%20Condition) The company's financial condition strengthened significantly post-merger, with total assets reaching $1.041 billion, an ALLL of $3.3 million (0.53% of gross loans), low NPLs at $735 thousand, deposits growing to $705.0 million, and stockholders' equity increasing to $143.5 million, resulting in a tangible book value of $1.55 per share - The ALLL as a percentage of gross loans decreased to **0.53%** at June 30, 2021, from **0.88%** at December 31, 2020, because no ALLL is associated with the loans acquired in the merger[196](index=196&type=chunk) - Non-performing loans (NPLs) decreased to **$735 thousand** at June 30, 2021, from **$787 thousand** at year-end 2020[198](index=198&type=chunk) - Stockholders' equity increased to **$143.5 million**[218](index=218&type=chunk) - Tangible book value per share was **$1.55** as of June 30, 2021, after adjusting for **$26.0 million** in goodwill and **$3.2 million** in net core deposit intangible[219](index=219&type=chunk) [Liquidity and Capital Resources](index=44&type=section&id=MD%26A%20Liquidity%20and%20Capital%20Resources) The company maintains a strong liquidity position with $210.4 million in cash and $24.6 million FHLB borrowing capacity, while capital resources are robust, with the Bank 'well capitalized' and reporting a CBLR of 10.10% at June 30, 2021, exceeding the minimum requirement - The Bank's liquid assets at June 30, 2021 consisted of **$210.4 million** in cash and cash equivalents and **$68.4 million** in unpledged securities available-for-sale[223](index=223&type=chunk) - The Bank is 'well capitalized' and has elected to adopt the Community Bank Leverage Ratio (CBLR), which was **10.10%** at June 30, 2021, exceeding the **8.5%** requirement[220](index=220&type=chunk)[229](index=229&type=chunk) - The Bank has an additional borrowing capacity of **$24.6 million** from the FHLB and **$11 million** in lines of credit with other institutions[222](index=222&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=45&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This item is not applicable for the reporting period - The company has indicated that this section is not applicable[230](index=230&type=chunk) [Controls and Procedures](index=45&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of June 30, 2021, and is integrating CFBanc's internal controls, a process expected to be completed within one year of acquisition, with a potential exclusion from the 2021 year-end assessment as permitted by SEC guidance - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of June 30, 2021[230](index=230&type=chunk) - The company is currently integrating the internal controls of the recently acquired CFBanc, a process expected to be completed within one year of the acquisition[232](index=232&type=chunk) PART II. OTHER INFORMATION This section provides information on legal proceedings, risk factors, equity sales, and other corporate disclosures [Legal Proceedings](index=47&type=section&id=Item%201.%20Legal%20Proceedings) The company reported no legal proceedings during the period - There are no legal proceedings to report[236](index=236&type=chunk) [Risk Factors](index=47&type=section&id=Item%201A.%20Risk%20Factors) This item is not applicable for the reporting period - The company has indicated that this section is not applicable[236](index=236&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=47&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities or use of proceeds for this specific item - There are no unregistered sales of equity securities or use of proceeds to report under this item[236](index=236&type=chunk) [Other Information](index=47&type=section&id=Item%205.%20Other%20Information) On August 12, 2020, the Board of Directors amended the company's bylaws to conform the deadlines for stockholder director nominations and new business proposals for annual meetings - The company amended its bylaws to standardize the submission deadlines for stockholder director nominations and new business proposals, requiring them to be submitted between 90 and 120 days before the anniversary of the previous year's annual meeting[236](index=236&type=chunk) [Exhibits](index=47&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the report, including the Amended and Restated Certificate of Incorporation, Bylaws, employment agreements, and various certifications required by the Sarbanes-Oxley Act - A list of exhibits filed with the Form 10-Q is provided, including corporate governance documents and required certifications[237](index=237&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2021 ☐ TRANSITION REPORT UNDER 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 (State or other ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10‑K (Mark one) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to___________ Commission file number 001‑39043 BROADWAY FINANCIAL CORPORATION (Exact name of registrant as specified in its charter) Delaware 95‑4547287 (State or other ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2020 ☐ TRANSITION REPORT UNDER 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 (State or o ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington D.C. 20549 Title of each class: Trading Symbol(s) Name of each exchange on which registered: Common Stock, par value $0.01 per share (including attached preferred stock purchase rights) BYFC The Nasdaq Stock Market LLC Non-accelerated filer x Smaller reporting company x FORM 10-Q (Mark One) x QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2020 ¨ TRANSITION REPORT UNDER SECTI ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington D.C. 20549 FORM 10-Q (Mark One) x QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2020 ¨ TRANSITION REPORT UNDER 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 (State or other ...

Use these links to rapidly review the document TABLE OF CONTENTS BROADWAY FINANCIAL CORPORATION AND SUBSIDIARY Index to Consolidated Financial Statements Years ended December 31, 2019 and 2018 Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-K (Mark one) [X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2019 [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHA ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington D.C. 20549 FORM 10-Q (Mark One) [X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2019 [ ] TRANSITION REPORT UNDER 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 ...

[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Consolidated Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Consolidated%20Financial%20Statements%20(Unaudited)) This section presents Broadway Financial Corporation's unaudited consolidated financial statements as of June 30, 2019, showing total assets of **$429.8 million**, net income of **$142 thousand**, and stockholders' equity of **$49.0 million** [Consolidated Statements of Financial Condition](index=4&type=section&id=Consolidated%20Statements%20of%20Financial%20Condition) Total assets increased to **$429.8 million** by June 30, 2019, driven by loans held for sale, with liabilities reaching **$380.8 million** and equity at **$49.0 million** Consolidated Balance Sheet Summary (in thousands) | Account | June 30, 2019 (Unaudited) | December 31, 2018 | | :--- | :--- | :--- | | **Total Assets** | **$429,844** | **$409,397** | | Cash and cash equivalents | $20,146 | $16,651 | | Loans receivable held for sale | $26,085 | $6,231 | | Loans receivable held for investment, net | $353,342 | $355,556 | | **Total Liabilities** | **$380,828** | **$360,961** | | Deposits | $295,798 | $281,414 | | FHLB advances | $75,000 | $70,000 | | **Total Stockholders' Equity** | **$49,016** | **$48,436** | [Consolidated Statements of Operations and Comprehensive (Loss) Income](index=5&type=section&id=Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20(Loss)%20Income) The company reported a **net income of $142 thousand** for the six months ended June 30, 2019, a significant improvement from a prior-year loss, driven by a loan loss provision recapture and a CDFI grant Consolidated Statement of Operations Summary (in thousands, except per share) | Metric | Three Months Ended June 30, 2019 | Three Months Ended June 30, 2018 | Six Months Ended June 30, 2019 | Six Months Ended June 30, 2018 | | :--- | :--- | :--- | :--- | :--- | | Net Interest Income | $2,462 | $2,572 | $5,275 | $5,346 | | Loan loss provision recapture | $158 | $0 | $348 | $0 | | **Net (Loss) Income** | **($135)** | **($127)** | **$142** | **($211)** | | (Loss) Earnings Per Share - Diluted | ($0.01) | ($0.00) | $0.01 | ($0.01) | [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Operating activities resulted in a **$10.2 million net cash outflow**, offset by a **$19.1 million inflow from financing**, leading to a **$3.5 million net increase** in cash and cash equivalents Cash Flow Summary for Six Months Ended June 30 (in thousands) | Cash Flow Category | 2019 | 2018 | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | ($10,230) | $4,779 | | Net cash used in investing activities | ($5,404) | ($12,268) | | Net cash provided by (used in) financing activities | $19,129 | ($1,132) | | **Net change in cash and cash equivalents** | **$3,495** | **($8,621)** | [Consolidated Statements of Changes in Stockholders' Equity](index=8&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Stockholders'%20Equity) Stockholders' equity increased by **$580 thousand** to **$49.0 million** by June 30, 2019, primarily due to net income and other comprehensive income - Total stockholders' equity increased by **$580 thousand** during the first six months of 2019, from **$48.4 million** to **$49.0 million**[25](index=25&type=chunk) [Notes to Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) This section details accounting policies, portfolio composition, allowance for loan losses, fair value measurements, and confirms the Bank's 'well capitalized' status with strong regulatory capital ratios - The company adopted the new lease accounting standard (ASU 2016-02) on January 1, 2019, recognizing an operating lease right-of-use (ROU) asset and liability of **$1.2 million**[30](index=30&type=chunk)[31](index=31&type=chunk) - Loans receivable held for sale increased significantly to **$26.1 million** at June 30, 2019, from **$6.2 million** at December 31, 2018[49](index=49&type=chunk) - The Bank's capital levels exceeded all regulatory requirements, with a Tier 1 (Leverage) ratio of **11.83%** and a Total Capital ratio of **19.86%** as of June 30, 2019, qualifying it as 'well capitalized'[119](index=119&type=chunk)[120](index=120&type=chunk) - A significant credit risk concentration exists, with one customer accounting for approximately **10%** of the Bank's total deposits as of June 30, 2019[124](index=124&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the **$142 thousand net income** to a loan loss provision recapture and CDFI grant, highlighting **$20.4 million asset growth** and improved asset quality with **$2.8 million** in allowance for loan losses - Total assets grew by **$20.4 million** to **$429.8 million** in the first half of 2019, primarily due to a **$19.9 million** increase in loans held for sale[128](index=128&type=chunk)[157](index=157&type=chunk) - Net income for the first six months of 2019 was **$142 thousand**, a significant improvement from a net loss of **$211 thousand** in the prior-year period, mainly due to a loan loss provision recapture and a CDFI grant[129](index=129&type=chunk)[131](index=131&type=chunk) - Net interest margin decreased by **13 basis points** to **2.57%** for the six months ended June 30, 2019, compared to **2.70%** for the same period in 2018, as the cost of funds rose[140](index=140&type=chunk) - The Allowance for Loan Losses (ALLL) was **$2.8 million**, or **0.78%** of gross loans held for investment, as of June 30, 2019, with Non-performing loans (NPLs) totaling **$728 thousand**, representing **0.17%** of total assets[161](index=161&type=chunk)[162](index=162&type=chunk) - The company's liquidity remains strong, with an additional borrowing capacity of **$50.6 million** from the FHLB and an **$11.0 million** line of credit with another institution as of June 30, 2019[176](index=176&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=38&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section is not applicable for the current reporting period - Not Applicable[184](index=184&type=chunk) [Item 4. Controls and Procedures](index=38&type=section&id=Item%204.%20Controls%20and%20Procedures) The CEO and CFO concluded that disclosure controls and procedures were effective as of June 30, 2019, with no material changes to internal controls - The CEO and CFO concluded that the Company's disclosure controls and procedures were effective as of June 30, 2019[184](index=184&type=chunk) [PART II. OTHER INFORMATION](index=39&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=39&type=section&id=Item%201.%20Legal%20Proceedings) The company reported no legal proceedings during this period - None[186](index=186&type=chunk) [Item 1A. Risk Factors](index=39&type=section&id=Item%201A.%20Risk%20Factors) This section is not applicable for the current reporting period - Not Applicable[186](index=186&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=39&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities or use of proceeds - None[186](index=186&type=chunk) [Item 3. Defaults Upon Senior Securities](index=39&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities - None[186](index=186&type=chunk) [Item 4. Mine Safety Disclosures](index=39&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section is not applicable for the current reporting period - Not Applicable[186](index=186&type=chunk) [Item 5. Other Information](index=39&type=section&id=Item%205.%20Other%20Information) The company reported no other information - None[186](index=186&type=chunk) [Item 6. Exhibits](index=39&type=section&id=Item%206.%20Exhibits) This section lists filed exhibits, including the Certificate of Incorporation, Bylaws, CEO/CFO certifications, and XBRL data files - The report includes certifications from the CEO and CFO as required by Sections 302 and 906 of the Sarbanes-Oxley Act of 2002[186](index=186&type=chunk)

[PART I. FINANCIAL STATEMENTS](index=3&type=section&id=PART%20I.%20FINANCIAL%20STATEMENTS) This section presents the unaudited consolidated financial statements for Broadway Financial Corporation, including balance sheets, income statements, cash flows, and equity changes [Item 1. Consolidated Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Consolidated%20Financial%20Statements%20(Unaudited)) This section presents the unaudited consolidated financial statements for Broadway Financial Corporation as of March 31, 2019, and for the three months then ended, along with detailed notes [Consolidated Statements of Financial Condition](index=4&type=section&id=Consolidated%20Statements%20of%20Financial%20Condition) Total assets increased to **$421.1 million** as of March 31, 2019, primarily driven by a **$9.5 million** increase in net loans receivable Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2019 | December 31, 2018 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $19,225 | $16,651 | | Loans receivable, net | $365,015 | $355,556 | | **Total Assets** | **$421,146** | **$409,397** | | **Liabilities & Equity** | | | | Deposits | $286,654 | $281,414 | | FHLB advances | $75,000 | $70,000 | | **Total Liabilities** | **$372,195** | **$360,961** | | **Total Stockholders' Equity** | **$48,951** | **$48,436** | [Consolidated Statements of Operations and Comprehensive Income (Loss)](index=5&type=section&id=Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income%20(Loss)) The company reported a net income of **$277 thousand** for Q1 2019, a significant turnaround from a net loss of **$84 thousand** in Q1 2018, driven by a loan loss provision recapture and increased non-interest income Q1 2019 vs Q1 2018 Performance (in thousands, except per share data) | Metric | Q1 2019 | Q1 2018 | | :--- | :--- | :--- | | Total Interest Income | $4,373 | $3,758 | | Net Interest Income | $2,813 | $2,774 | | Loan loss provision recapture | $190 | $0 | | Non-interest Income | $376 | $131 | | Non-interest Expense | $3,060 | $3,032 | | **Net Income (Loss)** | **$277** | **($84)** | | **Earnings (Loss) Per Share (Diluted)** | **$0.01** | **($0.00)** | [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For Q1 2019, the company generated **$229 thousand** in cash from operating activities, while investing activities used **$7.9 million** and financing activities provided **$10.2 million**, resulting in a net increase in cash of **$2.6 million** Cash Flow Summary (in thousands) | Activity | Three Months Ended March 31, 2019 | Three Months Ended March 31, 2018 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $229 | ($752) | | Net cash (used in) provided by investing activities | ($7,895) | $5,848 | | Net cash provided by (used in) financing activities | $10,240 | ($11,068) | | **Net change in cash and cash equivalents** | **$2,574** | **($5,972)** | [Consolidated Statements of Changes in Stockholders' Equity](index=7&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Stockholders'%20Equity) Stockholders' equity increased from **$48.4 million** at year-end 2018 to **$49.0 million** at March 31, 2019, primarily due to net income and other comprehensive income - Total stockholders' equity increased by approximately **$515 thousand** during the first quarter of 2019, driven by net income and other comprehensive income[22](index=22&type=chunk) [Notes to Unaudited Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) The notes detail the basis of financial statement presentation and significant accounting policies, including new accounting standards, loan portfolios, credit quality, fair value measurements, and regulatory capital adequacy - The company adopted ASU 2016-02, "Leases (Topic 842)", on January 1, 2019, resulting in the recognition of a right-of-use (ROU) asset and an operating lease liability of **$1.2 million** each[28](index=28&type=chunk)[29](index=29&type=chunk) - The company is preparing for the adoption of the Current Expected Credit Loss (CECL) model (ASU 2016-13), which is expected to increase the allowance for loan losses[36](index=36&type=chunk) - At March 31, 2019, the Bank's capital levels exceeded all regulatory requirements to be considered 'well capitalized'[124](index=124&type=chunk)[125](index=125&type=chunk) - A significant concentration of credit risk exists, with one customer accounting for approximately **11% of total deposits** as of March 31, 2019[130](index=130&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=26&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial performance for Q1 2019, covering key drivers of improved net income, balance sheet changes, loan growth, credit quality, deposit composition, liquidity, and capital resources [Overview](index=26&type=section&id=MD%26A%20Overview) Total assets grew by **$11.8 million** in Q1 2019, driven by a **$9.4 million** increase in net loans, leading to a net income of **$277 thousand** compared to a net loss in Q1 2018 - Total assets increased by **$11.8 million** to **$421.2 million** at March 31, 2019[134](index=134&type=chunk) - Net income for Q1 2019 was **$277 thousand**, compared to a net loss of **$84 thousand** for Q1 2018[137](index=137&type=chunk) [Results of Operations](index=27&type=section&id=Results%20of%20Operations) Net interest income remained stable at **$2.8 million**, while a **$190 thousand** loan loss provision recapture and a **$233 thousand** CDFI grant significantly boosted non-interest income, offsetting a minor increase in non-interest expense - Net interest income was **$2.8 million**, largely unchanged from the prior year, as an increase in average earning assets was offset by a **4 basis point** decrease in the net interest margin[139](index=139&type=chunk) - A loan loss provision recapture of **$190 thousand** was recorded in Q1 2019, primarily from recoveries on two fully paid-off, previously charged-off church loans[149](index=149&type=chunk) - Non-interest income increased by **$245 thousand**, mainly due to a **$233 thousand** grant from the U.S. Department of the Treasury's Community Development Financial Institution (CDFI) Fund[150](index=150&type=chunk) - Non-interest expense increased slightly by **$28 thousand**, primarily due to a **$151 thousand** rise in professional services, offset by decreases in other expense categories[151](index=151&type=chunk) [Financial Condition](index=29&type=section&id=Financial%20Condition) Net loans held for investment grew to **$365.0 million**, with improved credit quality as non-performing loans decreased to **$782 thousand**, while deposits increased by **$5.3 million** and borrowings by **$5.0 million** - During Q1 2019, the Bank originated **$18.0 million** of multi-family loans and **$1.1 million** of commercial real estate loans[155](index=155&type=chunk) Credit Quality Metrics | Metric | March 31, 2019 | December 31, 2018 | | :--- | :--- | :--- | | Non-Performing Loans (NPLs) | $782 thousand | $911 thousand | | ALLL as % of Gross Loans | 0.80% | 0.82% | | ALLL to NPLs Ratio | 374.55% | 321.51% | - Deposits increased by **$5.3 million**, with certificates of deposit (CDs) growing by **$8.0 million**, partially through the CDARS network[165](index=165&type=chunk)[166](index=166&type=chunk) [Liquidity and Capital Resources](index=32&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains a strong liquidity position with **$53.1 million** in additional FHLB borrowing capacity and an **$11.0 million** line of credit, while stockholders' equity stands at **$49.0 million**, exceeding all regulatory capital requirements - The Bank has sufficient liquidity, with access to an additional **$53.1 million** in FHLB borrowings and an **$11.0 million** line of credit with another institution as of March 31, 2019[173](index=173&type=chunk) - Book value per share was **$1.76** as of March 31, 2019, compared to **$1.77** at December 31, 2018[172](index=172&type=chunk) - The Bank's capital is strong, with all regulatory capital ratios exceeding the 'well capitalized' thresholds[180](index=180&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=34&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section is not applicable for the reporting period - Not Applicable[182](index=182&type=chunk) [Item 4. Controls and Procedures](index=34&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of March 31, 2019, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that the Company's disclosure controls and procedures were effective as of March 31, 2019[182](index=182&type=chunk) - No significant changes were made to internal controls over financial reporting during the quarter ended March 31, 2019[183](index=183&type=chunk) [PART II. OTHER INFORMATION](index=34&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section provides other required information, including legal proceedings, risk factors, unregistered sales of equity securities, and a list of exhibits [Legal Proceedings](index=34&type=section&id=Item%201.%20Legal%20Proceedings) The company reported no material legal proceedings during the period - None[184](index=184&type=chunk) [Risk Factors](index=34&type=section&id=Item%201A.%20Risk%20Factors) This section is not applicable for the reporting period - Not Applicable[184](index=184&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=34&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities during the period - None[184](index=184&type=chunk) [Exhibits](index=34&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including CEO and CFO certifications and XBRL data files - Exhibits filed include certifications under Sections 302 and 906 of the Sarbanes-Oxley Act, and XBRL interactive data files[185](index=185&type=chunk)