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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): April 28, 2025

BROADWAY FINANCIAL CORPORATION
(Exact name of registrant as specified in its charter)

Delaware
001-39043
 95-4547287
(State or other jurisdiction of incorporation or organization)
(Commission File Number)
(I.R.S. Employer Identification Number)

4601 Wilshire Boulevard Suite 150, Los Angeles, California
   90010
(Address of principal executive offices)
  
(Zip Code)

Registrant’s telephone number, including area code: (323) 634-1700

 NOT APPLICABLE
(Former name or former address, if changed since last report)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
Securities registered pursuant to Section 12(b) of the Act:
 
Title of each class
  
Trading Symbol(s)
  
Name of each exchange on which registered
Class A Common Stock, par value $0.01 per share (including attached preferred stock purchase rights)  
BYFC
  
Nasdaq Capital Market
 
Indicate by check mark whether the registrant is an emerging growth company in as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
 
Emerging growth company ☐
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


Item 2.02
Results of Operations and Financial Condition.

On April 28, 2025, Broadway Financial Corporation (the “Company”) issued a press release announcing results for the quarter ended March 31, 2025.  A copy of the press release is attached as Exhibit 99.1.

The information set forth in this Current Report, including Exhibit 99.1 attached hereto, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of such section. The information in this Current Report, including Exhibits 99.1 attached hereto, shall not be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing to this Current Report.

Item 9.01
Financial Statements and Exhibits.
 
(d)
Exhibits
 
Press Release dated April 28, 2025, announcing results for the quarter ended March 31, 2025.
   
104
The cover page from this Current Report on Form 8-K, formatted in Inline XBRL (included as Exhibit 101).
 

SIGNATURE
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: April 28, 2025

BROADWAY FINANCIAL CORPORATION
     
 
By:
/s/ Zack Ibrahim
   
Name: Zack Ibrahim
   
Title: Chief Financial Officer

 
EX-99.1 2 ef20048022_ex99-1.htm EXHIBIT 99.1
Exhibit 99.1

News Release

FOR IMMEDIATE RELEASE

Broadway Financial Corporation Announces Results of Operations for First Quarter 2025

LOS ANGELES, CA – (BUSINESS WIRE) – April 28, 2025 – Broadway Financial Corporation (“Broadway”, “we”, or the “Company”) (NASDAQ: BYFC), parent company of City First Bank, National Association (the “Bank”, and collectively, with the Company, “City First Broadway”), reported consolidated net loss before preferred dividends of $451 thousand, or ($0.05) per diluted share, for the first quarter of 2025, compared to consolidated net loss of $164 thousand, or ($0.02) per diluted share, for the first quarter of 2024. Net loss attributable to common stockholders was $1.2 million during the first quarter of 2025 after deducting preferred dividends of $750 thousand, compared to net loss attributable to common stockholders of $164 thousand for the first quarter of 2024.  Diluted loss per common share was ($0.14) for the first quarter of 2025, compared to ($0.02) of loss per diluted common share for the first quarter of 2024.  Diluted loss per common share for the first quarter of 2025 reflects preferred dividends of $0.09 per diluted common share.

During the first quarter of 2025, net interest income increased by $521 thousand, or 6.9%, to $8.0 million, compared to the first quarter of 2024.  The increase resulted from lower interest expense on borrowings, due to decreases in the average balance and average cost of borrowings, and an increase in interest and fees on loans receivable, primarily due to an increase in rates.  These increases were partially offset by an increase in interest expense on deposits and decreases in interest income on interest-earning deposits and available-for-sale securities. During the first quarter of 2025, non-interest expense increased $444 thousand, or 5.7%, compared to the first quarter of 2024 due to increases of $1.0 million in compensation and benefits expense, which included $122 thousand of severance expense which negatively impacted diluted loss per share by $0.01, partially offset by a $710 thousand decrease in professional services expense. During the first quarter of 2025, the provision for credit losses increased $429 thousand, from $260 thousand for the first quarter of 2024 to $689 thousand for the first quarter of 2025, primarily due to one new non-accrual loan.  The Company recorded an income tax benefit of $156 thousand for the first quarter of 2025 and an income tax benefit of $57 thousand for the first quarter of 2024. The increase in tax benefit reflected a decrease of $370 thousand in pre-tax income between the two periods.

First Quarter 2025 Highlights:


 •
During the first quarter of 2025, net interest income increased by $521 thousand, or 6.9%, compared to the first quarter of 2024

•
The net interest margin increased by 43 basis points to 2.70% for the first quarter of 2025, compared to 2.27% for the first quarter of 2024.  This increase was driven largely by growth in the yield on average loan balances and a reduction in cost of interest-bearing liabilities

•
Total deposits increased by $31.1 million, or 4.2%, during the first quarter of 2025 compared to December 31, 2024

•
Capital ratios remain strong with a Community Bank Leverage Ratio of 15.36% at March 31, 2025 compared to 13.96% at December 31, 2024

•
Credit quality remains strong with non-accrual loans to total assets at 0.09% and non-performing loans to total assets at 0.07%

•
Borrowings were $78.0 million at March 31, 2025 compared to $195.5 million at December 31, 2024, a reduction of $117.5 million, or 60.1%

Chief Executive Officer, Brian Argrett commented, “During the first quarter of 2025, deposits grew by 4.2%, or $31.1 million, since the end of last year and 11.7%, or $81.0 million, since March of last year.  In addition, we reduced borrowing costs which resulted in lower cost of funds.  The net interest margin was 2.70%, which is an improvement of 43 basis points compared to March of last year.”


“Our results for the first quarter of 2025 were adversely affected by the provision for credit losses due to one borrower experiencing financial difficulty resulting in the loan changing to a non-accrual status.  The increase in the provision is the result of the loss provision for the loan, although we are working with the borrower for a healthier resolution.”

“Furthermore, our first quarter financial results were negatively impacted by our investments in people over the past twelve months to support our operational capabilities to professionally manage our business, improve our control environment, improve our efficiency, and promote our continued growth.”

“We are optimistic in our ability to execute our strategic goals and mission objectives, grow and improve profitability while remaining focused on serving low-to-moderate income communities.”

“I wish to thank our employees, stockholders, and depositors for their continued support to our mission.  Your efforts and financial support are fundamental to our ability to expand, serve, and support our communities, customers, and broader stakeholders.”

Net Interest Income

Net interest income before provision for credit losses for the first quarter of 2025 totaled $8.0 million, representing an increase of $521 thousand, or 6.9%, from net interest income before provision for credit losses of $7.5 million for the first quarter of 2024.

The increase resulted from a $2.3 million decrease in interest expense on borrowings, due to decreases in the average balance and average cost of borrowings.  The Company reduced borrowings to improve the net interest margin and to support capacity for future loan growth. The decrease in interest expense was complemented by a $1.6 million increase in interest and fees on loans receivable, primarily due to an increase in rates. These increases were partially offset by a $1.4 million increase in interest expense on deposits, due to increases in rates and the average balance of deposits, a $1.1 million decrease in interest income on interest-earning deposits due to decreases in rates and the average balance of interest-earning deposits, and a $900 thousand decrease in interest income on available-for-sale securities due to decreases in rates and the average balance of available-for-sale securities.

The net interest margin increased to 2.70% for the first quarter of 2025 from 2.27% for the first quarter of 2024, due to an increase in the average rate earned on interest-earnings assets, which increased to 4.82% for the first quarter of 2025 from 4.45% for the first quarter of 2024, and a decrease in the cost of funds, which decreased to 2.67% for the first quarter of 2025 from 3.02% for the first quarter of 2024.

Provision for Credit Losses

For the three months ended March 31, 2025, the Company recorded a provision for credit losses of $689 thousand, compared to a provision for credit losses of $260 thousand for the three months ended March 31, 2024, primarily due to one new non-accrual loan. No loan charge-offs were recorded during the quarters ended March 31, 2025 or 2024.  The allowance for credit losses (“ACL”) increased to $8.8 million as of March 31, 2025, compared to $8.1 million as of December 31, 2024.  The Bank had three non-accrual loans at March 31, 2025 with an unpaid principal balance of $860 thousand.  Credit quality remains strong with non-accrual loans as a percentage of total loans at 0.09% and non-performing assets to total assets of 0.07% despite the addition of non-accrual loans.

Non-interest Expense

Total non-interest expense was $8.3 million for the first quarter of 2025, compared to $7.8 million for the first quarter of 2024, representing an increase of $444 thousand, or 5.7%. The increase was primarily due to an increase of $1.0 million in compensation and benefits expense, which included $122 thousand in severance expense, partially offset by a $710 thousand decrease in professional services expense. The increase in compensation and benefits expense was primarily attributable to the addition of full-time employees during 2024 in various production and administrative positions as part of the Bank’s efforts to expand its operational capabilities to grow its balance sheet.  The decrease in professional services was primarily due to a third-party firm reviewing certain general ledger account reconciliations, as well as other professional services, during the first quarter of 2024.


Income Taxes

The Company recorded an income tax benefit of $156 thousand for the first quarter of 2025 and income tax benefit of $57 thousand for the first quarter of 2024.  The increase in tax benefit reflected a decrease of $370 thousand in pre-tax income between the two periods.  The effective tax rate was 25.57% for the first quarter of 2025, compared to 23.75% for the first quarter of 2024.

Balance Sheet Summary

Total assets decreased by $73.7 million at March 31, 2025, compared to December 31, 2024, reflecting decreases in cash and cash equivalents of $45.6 million, securities available-for-sale of $17.9 million, net loans of $7.0 million and FHLB stock of $5.0 million, partially offset by an increase in other assets of $2.1 million.

Loans held for investment, net of the ACL, decreased by $7.0 million to $961.8 million at March 31, 2025, compared to $968.9 million at December 31, 2024.  The decrease was primarily due to loan payoffs and repayments.

Deposits increased by $31.1 million, or 4.2%, to $776.5 million at March 31, 2025, from $745.4 million at December 31, 2024.  The increase in deposits was attributable to an increase of $53.4 million in certificates of deposit accounts, partially offset of decreases of $9.6 million in Insured Cash Sweep (“ICS”) deposits (ICS deposits are the Bank’s money market deposit accounts in excess of FDIC insured limits whereby the Bank makes reciprocal arrangements for insurance with other banks), $6.5 million in liquid deposits (demand, interest checking, and money market accounts), $3.8 million in Certificate of Deposit Registry Service (“CDARS”) deposits (CDARS deposits are similar to ICS deposits, but involve certificates of deposit, instead of money market accounts), and $2.4 million in savings deposits. As of March 31, 2025, our uninsured deposits, including deposits from City First Bank and other affiliates, represented 34% of our total deposits, compared to 32% as of December 31, 2024.  We leverage our long-standing partnership with IntraFi Deposit Solutions to offer deposit insurance for accounts exceeding the FDIC deposit insurance limit of $250,000.

Total borrowings decreased by $103.4 million to $158.8 million at March 31, 2025, from $262.1 million at December 31, 2024, primarily due to a $117.5 million decrease in FHLB advances, partially offset by a $14.1 million increase in securities sold under agreements to repurchase.

Capital

Stockholders’ equity was $286.0 million, or 23.3% of the Company’s total assets, at March 31, 2025, compared to $285.2 million, or 21.9% of the Company’s total assets, at December 31, 2024.  Stockholders’ equity increased primarily due to a decrease in accumulated other comprehensive loss, net of tax of $1.7 million, partially offset by a $1.2 million decrease in retained earnings.  Book value per share was $14.73 at March 31, 2025, compared to $14.82 at December 31, 2024. Capital ratios remain strong with a Community Bank Leverage Ratio of 15.36% at March 31, 2025 compared to 13.96% at December 31,2024.

About Broadway Financial Corporation

Broadway Financial Corporation operates through its wholly-owned banking subsidiary, City First Bank, National Association, which is a leading mission-driven bank that serves low-to-moderate income communities within urban areas in Southern California and the Washington, D.C. market.


City First Bank offers a variety of commercial real estate loan products, services, and depository accounts that support investments in affordable housing, small businesses, and nonprofit community facilities located within low-to-moderate income neighborhoods.  City First Bank is a Community Development Financial Institution, Minority Depository Institution, Certified B Corp, and a member of the Global Alliance of Banking on Values.  The Bank and the City First network of nonprofits, City First Enterprises, Homes By CFE, and City First Foundation, represent the City First branded family of community development financial institutions, which offer a robust lending and deposit platform.

Contacts

Investor Relations
Zack Ibrahim, Chief Financial Officer, (202) 243-7100
Investor.relations@cityfirstbroadway.com

Cautionary Statement Regarding Forward-Looking Information
 
This press release includes “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995.  All statements other than statements of historical facts contained in this press release, including statements regarding our future results of operations or financial condition, business strategy and plans and objectives of management for future operations and capital allocation and structure, are forward-looking statements.  Forward‑looking statements typically include the words “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue,” “poised,” “optimistic,” “prospects,” “ability,” “looking,” “forward,” “invest,” “grow,” “improve,” “deliver” and similar expressions, but the absence of such words or expressions does not mean a statement is not forward-looking.  These forward‑looking statements are subject to risks and uncertainties, including those identified below, which could cause actual future results to differ materially from historical results or from those anticipated or implied by such statements.  The following factors, among others, could cause future results to differ materially from historical results or from those indicated by forward‑looking statements included in this press release: (1) the level of demand for mortgage and commercial loans, which is affected by such external factors as general economic conditions, market interest rate levels, tax laws, and the demographics of our lending markets; (2) the direction and magnitude of changes in interest rates and the relationship between market interest rates and the yield on our interest‑earning assets and the cost of our interest‑bearing liabilities; (3) the rate and amount of loan losses incurred and projected to be incurred by us, increases in the amounts of our nonperforming assets, the level of our loss reserves and management’s judgments regarding the collectability of loans; (4) changes in the regulation of lending and deposit operations or other regulatory actions, whether industry-wide or focused on our operations, including increases in capital requirements or directives to increase allowances for loan losses or make other changes in our business operations; (5) legislative or regulatory changes, including those that may be implemented by the current administration in Washington, D.C. and the Federal Reserve Board; (6) possible adverse rulings, judgments, settlements and other outcomes of litigation; (7) actions undertaken by both current and potential new competitors; (8) the possibility of adverse trends in property values or economic trends in the residential and commercial real estate markets in which we compete; (9) the effect of changes in general economic conditions; (10) the effect of geopolitical uncertainties; (11) the impact of health crises on our future financial condition and operations; (12) the impact of any volatility in the banking sector due to the failure of certain banks due to high levels of exposure to liquidity risk, interest rate risk, uninsured deposits and cryptocurrency risk; and (13) other risks and uncertainties.  All such factors are difficult to predict and are beyond our control.  Additional factors that could cause results to differ materially from those described above can be found in our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K or other filings made with the SEC and are available on our website at http://www.cityfirstbank.com and on the SEC’s website at http://www.sec.gov.
 
Forward-looking statements in this press release speak only as of the date they are made, and we undertake no obligation, and do not intend, to update these forward-looking statements to reflect events or circumstances occurring after the date of this press release, except to the extent required by law.  You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.
 

The following table sets forth selected financial data and ratios as of March 31, 2025 and December 31, 2024 and for the three months ended March 31, 2025 and 2024.

BROADWAY FINANCIAL CORPORATION AND SUBSIDIARY
Selected Financial Data and Ratios (Unaudited)
(Dollars in thousands, except per share data)

Selected Financial Condition Data and Ratios:
  
March 31, 2025
    
December 31, 2024
  
             
Book value per share
  
$
14.73
    
$
14.82
  
Equity to total assets
    
23.27
%
    
21.87
%
                 
Asset Quality Ratios:
                
 
Non-accrual loans to total loans
    
0.09
%
    
0.03
%
Non-performing assets to total assets
    
0.07
%
    
0.02
%
Allowance for credit losses to total gross loans
    
0.90
%
    
0.83
%
Allowance for credit losses to non-performing loans
    
1020.23
%
    
3069.32
%
                 
Non-Performing Assets:
                
 
Non-accrual loans
  
$
860
    
$
264
  
Loans delinquent 90 days or more and still accruing
    
-
      
-
  
Real estate acquired through foreclosure
    
-
      
-
  
Total non-performing assets
  
$
860
    
$
-
  
                 
Delinquent loans 31 to 89 days delinquent
  
$
4,073
    
$
269
  
Delinquent loans greater than 90 days delinquent
  
$
264
    
$
-
  

Selected Operating Data and Ratios:
  
Three Months Ended
March 31, 2025
    
Three Months Ended
March 31, 2024
  
Net recoveries to average assets
    
-
%(1)
    
-
%(1)
Return on average assets
    
(0.39
)%(1)
    
(0.05
)%(1)
Return on average equity
    
(1.70
)%(1)
    
(0.23
)%(1)
Net interest margin
    
2.70
%(1)
    
2.27
%(1)

(1)      Annualized

The following table sets forth the consolidated statements of financial condition as of March 31, 2025 and December 31, 2024.
 

BROADWAY FINANCIAL CORPORATION
Consolidated Statements of Financial Condition
(In thousands, except share and per share amounts)

 
  
March 31, 2025
    
December 31, 2024
  
 
  
(Unaudited)
        
Assets:
            
Cash and due from banks
  
$
2,040
    
$
2,255
  
Interest-bearing deposits in other banks
    
143,169
     
59,110
  
Cash and cash equivalents
    
15,794
      
61,365
  
Securities available-for-sale, at fair value (amortized cost of $199,318 and $219,658)
    
185,938
      
203,862
  
Loans receivable held for investment, net of allowance of $8,774 and $8,103
    
961,817
      
968,861
  
Accrued interest receivable
    
5,624
      
5,001
  
Federal Home Loan Bank (FHLB) stock
    
4,616
      
9,637
  
Federal Reserve Bank (FRB) stock
    
3,543
      
3,543
  
Office properties and equipment, net
    
8,812
      
8,899
  
Bank owned life insurance
    
3,332
      
3,321
  
Deferred tax assets, net
    
8,103
      
8,803
  
Core deposit intangible, net
    
1,696
      
1,775
  
Goodwill
    
25,858
      
25,858
  
Other assets
    
4,880
      
2,786
  
Total assets
  
$
1,230,013
    
$
1,303,711
  
Liabilities and stockholders’ equity
                
Liabilities:
                
Deposits
  
$
776,543
    
$
745,399
  
Securities sold under agreements to repurchase
    
80,778
      
66,610
  
FHLB advances
    
78,000
      
195,532
  
Accrued expenses and other liabilities
    
8,488
      
10,794
  
Total liabilities
    
943,809
      
1,018,335
  
Stockholders’ equity:
                
                 
Non-Cumulative Redeemable Perpetual Preferred stock, Series C; authorized 150,000 shares at
March 31, 2025 and December 31, 2024; issued and outstanding 150,000 shares at
March 31, 2025 and December 31, 2024; liquidation value $1,000 per share
    
150,000
      
150,000
  
Common stock, Class A, $0.01 par value, voting; authorized 75,000,000 shares at
March 31, 2025 and December 31, 2024; issued 6,460,272 shares at March 31, 2025 and
6,349,455 shares at December 31, 2024; outstanding 6,133,044 shares at March 31, 2025
and 6,022,227 shares at December 31, 2024
    
64
      
63
  
Common stock, Class B, $0.01 par value, non-voting; authorized 15,000,000 shares at
March 31, 2025 and December 31, 2024; issued and outstanding 1,425,574 shares at
March 31, 2025 and December 31, 2024
    
14
      
14
  
Common stock, Class C, $0.01 par value, non-voting; authorized 25,000,000 shares at
March 31, 2025 and December 31, 2024; issued and outstanding 1,672,562 at
March 31, 2025 and December 31, 2024
    
17
      
17
  
Additional paid-in capital
     143,169      
142,902
  
Retained earnings
     11,710
       12,911  
Unearned Employee Stock Ownership Plan (ESOP) shares
    
(4,152
)
    
(4,201
)
Accumulated other comprehensive loss, net of tax
    
(9,508
)
    
(11,223
)
Treasury stock-at cost, 327,228 shares at March 31, 2025 and at December 31, 2024
    
(5,326
)
    
(5,326
)
Total Broadway Financial Corporation and Subsidiary stockholders’ equity
    
285,988
      
285,157
  
Non-controlling interest
    
216
      
219
  
Total liabilities and stockholders’ equity
  
$
1,230,013
    
$
1,303,711
  

The following table sets forth the consolidated statements of operations for the three months ended March 31, 2025 and 2024.


BROADWAY FINANCIAL CORPORATION
Consolidated Statements of Operations
(In thousands, except share and per share amounts)


  
Three Months Ended
  
   
March 31,
  
   
2025
    
2024
  
   
(Unaudited)
    
(Unaudited)
  
Interest income:
            
Interest and fees on loans receivable
  
$
12,690
    
$
11,129
  
Interest on available-for-sale securities
    
1,208
      
2,075
  
Other interest income
    
476
      
1,589
  
Total interest income
    
14,374
      
14,793
  
                 
Interest expense:
                
Interest on deposits
    
4,199
      
2,799
  
Interest on borrowings
    
2,130
      
4,470
  
Total interest expense
    
6,329
      
7,269
  
                 
Net interest income
    
8,045
      
7,524
  
Provision for credit losses
    
689
      
260
  
Net interest income after provision for credit losses
    
7,356
      
7,264
  
                 
Non-interest income:
                
Service charges
    
43
      
40
  
Grants
    
25
      
-
  
Other
    
220
      
266
  
Total non-interest income
    
288
      
306
  
                 
Non-interest expense:
                
Compensation and benefits
    
5,284
      
4,269
  
Occupancy expense
    
540
      
503
  
Information services
    
706
      
707
  
Professional services
    
700
      
1,410
  
Advertising and promotional expense
    
46
      
28
  
Supervisory costs
    
193
      
177
  
Corporate insurance
    
67
      
61
  
Amortization of core deposit intangible
    
79
      
84
  
Other expense
    
639
      
571
  
Total non-interest expense
    
8,254
      
7,810
  
                 
Income before income taxes
    
(610
)
    
(240
)
Income tax expense
    
(156
)
    
(57
)
Net loss
  
$
(454
)
  
$
(183
)
Less: Net loss attributable to non-controlling interest
    
(3
)
    
(19
)
Net loss attributable to Broadway Financial Corporation
  
$
(451
)
  
$
(164
)
Less: Preferred stock dividends
    
(750
)
    
-
  
Net loss attributable to common stockholders
  
$
(1,201
)
  
$
(164
)
Loss per common share-basic
  
$
(0.14
)
  
$
(0.02
)
Loss per common share-diluted
  
$
(0.14
)
  
$
(0.02
)

The following table sets forth the average balances, average yields and costs for the periods indicated.  All average balances are daily average balances.  The yields set forth below include the effect of deferred loan fees, and discounts and premiums that are amortized or accreted to interest income or expense.


   
For the Three Months Ended
        
   
March 31, 2025
  
March 31, 2024
        
   
(Dollars in thousands) (Unaudited)
       
   
Average Balance
    
Interest
    
Average Yield
      
Average Balance
    
Interest
    
Average Yield
  
Assets
                                  
Interest-earning assets:
                                  
Interest-earning deposits
  
$
28,958
    
$
312
      
4.37
%
 
  
$
99,103
    
$
1,344
      
5.42
%
Securities
    
196,463
      
1,208
      
2.49
  
%
    
305,615
      
2,075
      
2.72
%
Loans receivable (1)
    
972,375
      
12,690
      
5.29
  
%
    
909,965
      
11,129
      
4.89
%
FRB and FHLB stock (2)
    
11,188
      
164
      
5.94
  
%
    
13,733
      
245
      
7.14
%
Total interest-earning assets
    
1,208,984
    
$
14,374
      
4.82
  
%
    
1,328,416
    
$
14,793
      
4.45
%
Non-interest-earning assets
    
50,381
                        
52,561
                  
Total assets
  
$
1,259,365
                  
 
  
$
1,380,977
                  
                                                   
Liabilities and Stockholders’ Equity
                                                  
Interest-bearing liabilities:
                                                  
Money market deposits
  
$
119,101
    
$
257
      
0.88
%
 
  
$
125,704
    
$
1,444
      
4.59
%
Savings deposits
    
48,712
      
68
      
0.57
  
  %
    
59,056
      
102
      
0.69
%
Interest checking and other demand deposits
    
255,647
      
1,911
      
3.03
  
  %
    
227,504
      
143
      
0.25
%
Certificate accounts
    
322,544
      
1,963
      
2.47
  
  %
    
163,116
      
1,110
      
2.72
%
Total deposits
    
746,004
      
4,199
      
2.28
  
  %
    
575,380
      
2,799
      
1.95
%
FHLB advances
    
149,135
      
1,529
      
4.16
  
  %
    
209,299
      
2,598
      
4.97
%
Bank Term Funding Program borrowing
    
-
      
-
      
-
  
  %
    
100,000
      
1,203
      
4.81
%
Other borrowings
    
67,170
      
601
      
3.63
  
  %
    
77,601
      
669
      
3.45
%
Total borrowings
    
216,305
      
2,130
      
3.99
  
  %
    
386,900
      
4,470
      
4.62
%
Total interest-bearing liabilities
    
962,309
    
$
6,329
      
2.67
  
  %
    
962,280
    
$
7,269
      
3.02
%
Non-interest-bearing liabilities
    
10,411
                        
137,035
                  
Stockholders’ equity
    
286,645
                        
281,662
                  
Total liabilities and stockholders’ equity
  
$
1,259,365
                  
 
  
$
1,380,977
                  
                                                   
Net interest rate spread (3)
          
$
8,045
      
2.15
  
  %
          
$
7,524
      
1.43
%
Net interest rate margin (4)
                    
2.70
  
  %
                    
2.27
%
Ratio of interest-earning assets to interest-bearing liabilities
              
125.63
  
  %
                    
138.05
%

 
(1)
Amount includes non-accrual loans.
 
(2)
FHLB is Federal Home Loan Bank.
 
(3)
Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.
 
(4)
Net interest rate margin represents net interest income as a percentage of average interest-earning assets.