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Broadway Financial Corporation Reports Third Quarter 2026 Results Highlighted by Improved Earnings, Strong Deposit Growth and Stable Credit Quality

businesswire.com

Broadway Financial Corporation Reports Third Quarter 2026 Results Highlighted by Improved Earnings, Strong Deposit Growth and Stable Credit Quality LOS ANGELES--( BUSINESS WIRE)--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 net income attributable to common stockholders of $392 thousand during the third quarter of 2026, compared to net income attributable to common stockholders of $218 thousand for the second quarter of 2026, and net loss attributable to common stockholders of $24.6 million for the third quarter of 2025. Diluted earnings (loss) per common share was $0.04 for the third quarter of 2026, compared to $0.02 for the second quarter of 2026 and ($2.86) for the third quarter of 2025.

The Company reported consolidated net income before preferred dividends 1 of $1.1 million, or $0.13 per diluted common share, for the third quarter of 2026, compared to $968 thousand, or $0.11 per diluted common share, for the second quarter of 2026, and consolidated net income before preferred dividends and goodwill impairment 1 of $2.0 million, or $0.23 per diluted common share, for the third quarter of 2025.

For the first nine months of 2026, the Company reported consolidated net income of $1.0 million, or $0.11 per diluted common share, compared to consolidated net loss of $28.1 million, or ($3.27) per diluted common share, for the first nine months of 2025. For the first nine months of 2026, the Company reported consolidated net income before preferred dividends 1 of $3.3 million, or $0.37 per diluted common share, compared to consolidated net income before preferred dividends and goodwill impairment 1 of $38 thousand, or $0.00 per diluted common share, for the first nine months of 2025. This increase reflects stronger operating performance driven by loan growth, deposit growth, and continued balance sheet expansion.

Net income attributable to common stockholders was $1.0 million during the first nine months of 2026 after deducting preferred dividends of $2.3 million, compared to net loss attributable to common stockholders of $28.1 million for the first nine months of 2025 after deducting goodwill impairment of $25.9 million and preferred dividends of $2.3 million. Diluted earnings per common share was $0.11 for the first nine months of 2026, compared to ($3.27) of diluted loss per common share for the first nine months of 2025. Diluted earnings (loss) per common share for the first nine months of 2026 reflects preferred dividends of $0.25 per diluted common share, compared to ($0.26) of diluted loss per common share for the first nine months of 2025.

Third Quarter Highlights

1

“Net income before preferred dividends”, “net income before preferred dividends and goodwill impairment”, “pre-provision net revenue”, “efficiency ratio,” and “tangible book value” are non-GAAP financial measures. A reconciliation of these non-GAAP financial measures and the nearest GAAP measures is provided in the GAAP Reconciliation to Non-GAAP Financial Measures tables that accompany this document.

Chief Executive Officer, Brian Argrett, commented, “Our third-quarter results reflect disciplined execution of our strategic priorities, resulting in strong growth in both loans and deposits while maintaining solid capital levels. We continue to operate with a disciplined approach to risk management and underwriting as we navigate an evolving economic environment. Looking ahead, we remain focused on optimizing the balance sheet, enhancing profitability, and delivering long-term value for our stockholders.”

Quarterly Results of Operations

Year-to-Date Results of Operations

Financial Condition Review

Asset Quality

Capital

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 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.

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 credit 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 credit 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; (13) the loss of our CDFI certification could potentially limit our grant income awards; and (14) 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.

BROADWAY FINANCIAL CORPORATION

Consolidated Statements of Financial Condition

(In thousands, except share and per share amounts)

September 30, 2026

December 31, 2025

(Unaudited)

Assets:

Cash and due from banks

$

1,824

$

1,676

Interest-bearing deposits in other banks

47,486

8,831

Cash and cash equivalents

49,310

10,507

Securities available-for-sale, at fair value (amortized cost of $326,554 and $265,371)

305,410

256,835

Loans receivable held for investment, net of allowance of $9,964 and $9,424

1,132,690

1,016,540

Accrued interest receivable

7,518

5,999

Federal Home Loan Bank (FHLB) stock

5,752

4,417

Federal Reserve Bank (FRB) stock

3,543

3,543

Office properties and equipment, net

8,730

8,732

Bank owned life insurance

24,443

23,663

Deferred tax assets, net

10,379

6,711

Core deposit intangible, net

1,232

1,460

Other assets

7,916

7,162

Total assets

$

1,556,923

$

1,345,569

Liabilities and equity

Liabilities:

Deposits

$

1,109,962

$

917,603

Securities sold under agreements to repurchase

79,999

80,773

Borrowings

99,000

72,000

Accrued expenses and other liabilities

12,345

12,236

Total liabilities

1,301,306

1,082,612

Equity:

Non-Cumulative Redeemable Perpetual Preferred stock, Series C; authorized 150,000 shares at September 30, 2026 and December 31, 2025; issued and outstanding 150,000 shares at September 30, 2026 and December 31, 2025; 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 September 30, 2026 and December 31, 2025; issued 6,505,579 shares at September 30, 2026 and 6,409,760 shares at December 31, 2025; outstanding 6,178,351 shares at September 30, 2026 and 6,082,532 shares at December 31, 2025

65

64

Common stock, Class B, $0.01 par value, non-voting; authorized 15,000,000 shares at September 30, 2026 and December 31, 2025; issued and outstanding 1,425,404 shares at September 30, 2026 and December 31, 2025

14

14

Common stock, Class C, $0.01 par value, non-voting; authorized 25,000,000 shares at September 30, 2026 and December 31, 2025; issued and outstanding 1,672,562 at September 30, 2026 and December 31, 2025

17

17

Additional paid-in capital

143,653

143,194

Accumulated deficit

(14,219

)

(15,238

)

Unearned Employee Stock Ownership Plan (ESOP) shares

(3,680

)

(3,869

)

Accumulated other comprehensive loss, net of tax

(15,056

)

(6,105

)

Treasury stock-at cost, 327,228 shares at September 30, 2026 and at December 31, 2025

(5,326

)

(5,326

)

Total Broadway Financial Corporation and Subsidiary equity

255,468

262,751

Non-controlling interest

149

206

Total liabilities and equity

$

1,556,923

$

1,345,569

The following table sets forth the consolidated statements of operations for the three and nine months ended September 30, 2026 and 2025.

Consolidated Statements of Operations

(In thousands, except share and per share amounts)

(Unaudited)

Three Months Ended

Nine Months Ended

September 30,

2026

June 30,

2026

September 30,

2025

September 30,

2026

September 30,

2025

Interest income:

Interest and fees on loans receivable

$

15,120

$

14,353

$

13,418

$

42,760

$

39,360

Interest on available-for-sale securities

3,380

3,210

1,690

9,203

4,069

Other interest income

298

240

683

847

1,560

Total interest income

18,798

17,803

15,791

52,810

44,989

Interest expense:

Interest on deposits

6,973

6,985

5,363

19,948

14,441

Interest on borrowings

1,929

1,328

1,811

4,423

6,131

Total interest expense

8,902

8,313

7,174

24,371

20,572

Net interest income

9,896

9,490

8,617

28,439

24,417

Provision for credit losses

668

1,481

679

2,349

2,139

Net interest income after provision for credit losses

9,228

8,009

7,938

26,090

22,278

Non-interest income:

Service charges

36

44

47

124

131

Grants

55

23

145

185

275

Earnings on bank owned life insurance

264

261

61

780

83

Management fees

8

475

19

497

106

Other

133

147

150

449

470

Total non-interest income

496

950

422

2,035

1,065

Non-interest expense:

Compensation and benefits

4,684

4,253

4,340

13,823

14,036

Occupancy expense

530

458

505

1,496

1,530

Information services

1,051

804

768

2,795

2,248

Professional services

629

571

624

1,786

2,112

Advertising and promotional expense

73

56

76

253

183

Supervisory costs

292

179

161

656

510

Corporate insurance

72

56

86

183

219

Amortization of core deposit intangible

76

76

78

228

236

Operational loss

-

-

(1,603

)

-

340

Goodwill impairment

-

-

25,858

-

25,858

Other

924

1,023

625

2,602

1,965

Total non-interest expense

8,331

7,476

31,518

23,822

49,237

Income (loss) before income taxes

1,393

1,483

(23,158

)

4,303

(25,894

)

Income tax expense (benefit)

279

330

736

891

(54

)

Net income (loss)

1,114

1,153

(23,894

)

3,412

(25,840

)

Less: Net (loss) income attributable to non-controlling interest

(28

)

185

(11

)

143

(20

)

Net income (loss) attributable to Broadway Financial Corporation

1,142

968

(23,883

)

3,269

(25,820

)

Less: Preferred stock dividends

750

750

750

2,250

2,250

Net income (loss) attributable to common stockholders

$

392

$

218

$

(24,633

)

$

1,019

$

(28,070

)

Earnings (loss) per common share-basic

$

0.04

$

0.02

$

(2.86

)

$

0.12

$

(3.27

)

Earnings (loss) per common share-diluted

$

0.04

$

0.02

$

(2.86

)

$

0.11

$

(3.27

)

The following tables set 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.

BROADWAY FINANCIAL CORPORATION

Consolidated Averages, Interest Yields and Rates (Unaudited)

(In thousands, except share and per share amounts)

Three Months Ended

Three Months Ended

Three Months Ended

September 30, 2026

June 30, 2026

September 30, 2025

Assets

Interest-earning assets:

Interest-bearing deposits

$

16,416

$

150

3.63

%

$

13,380

$

120

3.60

%

$

49,348

$

556

4.47

%

Securities

320,693

3,380

4.18

%

312,186

3,210

4.12

%

206,224

1,690

3.25

%

Loans receivable (1)

1,140,585

15,120

5.26

%

1,101,866

14,353

5.22

%

993,090

13,418

5.36

%

FRB and FHLB stock (2)

10,117

148

5.80

%

7,530

120

6.39

%

7,461

127

6.75

%

Total interest-earning assets

1,487,811

$

18,798

5.01

%

1,434,962

$

17,803

4.98

%

1,256,123

$

15,791

4.99

%

Non-interest-earning assets

42,971

42,246

50,659

Total assets

$

1,530,782

$

1,477,208

$

1,306,782

Liabilities and Stockholders’ Equity

Interest-bearing liabilities:

Money market deposits

$

184,743

$

1,049

2.25

%

$

175,103

$

942

2.16

%

$

155,121

$

422

1.08

%

Savings deposits

197,914

1,743

3.49

%

244,794

2,213

3.63

%

44,095

50

0.45

%

Interest checking and other demand deposits

256,432

1,448

2.24

%

262,783

1,447

2.21

%

263,972

2,105

3.16

%

Certificate accounts

318,644

2,733

3.40

%

281,036

2,383

3.40

%

282,955

2,786

3.91

%

Total deposits

957,733

6,973

2.89

%

963,716

6,985

2.91

%

746,143

5,363

2.85

%

FHLB Borrowings

117,213

1,166

3.95

%

62,884

614

3.92

%

63,016

711

4.48

%

Securities sold under agreements to repurchase

82,126

763

3.69

%

77,553

714

3.69

%

76,906

710

3.66

%

Secured borrowings

-

-

-

-

-

-

30,253

390

5.11

%

Total borrowings

199,339

1,929

3.84

%

140,437

1,328

3.79

%

170,175

1,811

4.22

%

Total interest-bearing liabilities

1,157,072

$

8,902

3.05

%

1,104,153

$

8,313

3.02

%

916,318

$

7,174

3.11

%

Non-interest-bearing liabilities

111,468

109,709

104,006

Stockholders’ equity

262,242

263,346

286,458

Total liabilities and stockholders’ equity

$

1,530,782

$

1,477,208

$

1,306,782

Net interest rate spread (3)

$

9,896

1.96

%

$

9,490

1.96

%

$

8,617

1.88

%

Net interest rate margin (4)

2.64

%

2.65

%

2.72

%

Ratio of interest-earning assets to interest-bearing liabilities

128.58

%

129.96

%

137.08

%

(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.

For the Nine Months Ended

September 30, 2026

September 30, 2025

(Dollars in thousands) (Unaudited)

Average Balance

Interest

Average Yield

Average Balance

Interest

Average Yield

Assets

Interest-earning assets:

Interest-earning deposits

$

17,430

$

470

3.61

%

$

34,221

$

1,134

4.43

%

Securities

299,634

9,203

4.11

%

195,049

4,069

2.79

%

Loans receivable (1)

1,094,214

42,760

5.22

%

995,521

39,360

5.29

%

FRB and FHLB stock (2)

8,109

377

6.22

%

8,694

426

6.55

%

Total interest-earning assets

1,419,387

$

52,810

4.97

%

1,233,485

$

44,989

4.88

%

Non-interest-earning assets

42,533

49,799

Total assets

$

1,461,920

$

1,283,284

Liabilities and Equity

Interest-bearing liabilities:

Money market deposits

$

183,674

$

3,037

2.21

%

$

136,183

$

1,015

1.00

%

Savings deposits

182,073

4,586

3.37

%

46,506

179

0.51

%

Interest checking and other demand deposits

261,191

4,515

2.31

%

256,952

5,991

3.12

%

Certificate accounts

304,356

7,810

3.43

%

259,447

7,256

3.74

%

Total deposits

931,294

19,948

2.86

%

699,088

14,441

2.76

%

Borrowings

74,991

2,201

3.92

%

91,585

2,950

4.31

%

Securities sold under agreements to repurchase

80,678

2,222

3.68

%

71,302

1,948

3.65

%

Secured borrowings

-

-

-

%

30,946

1,233

5.33

%

Total borrowings

155,669

4,423

3.80

%

193,833

6,131

4.23

%

Total interest-bearing liabilities

1,086,963

$

24,371

3.00

%

892,921

$

20,572

3.08

%

Non-interest-bearing liabilities

111,614

104,684

Equity

263,343

285,679

Total liabilities and equity

$

1,461,920

$

1,283,284

Net interest rate spread (3)

$

28,439

1.98

%

$

24,417

1.80

%

Net interest rate margin (4)

2.68

%

2.65

%

Ratio of interest-earning assets to interest-bearing liabilities

130.58

%

138.14

%

(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.

The following table sets forth selected financial data and ratios for the quarters and nine months noted below.

BROADWAY FINANCIAL CORPORATION

Selected Financial Data and Ratios (Unaudited)

(Dollars in thousands, except per share data)

Three Months Ended

Nine Months Ended

September 30,

2026

June 30,

2026

March 31,

2026

December 31,

2025

September 30,

2025

September 30,

2026

September 30,

2025

Balance Sheets at Period Ended:

Total gross loans

$

1,142,654

$

1,137,338

$

1,068,771

$

1,025,964

$

1,023,483

$

1,142,654

$

1,023,483

Allowance for credit losses

9,964

10,799

9,509

9,424

10,339

9,964

10,339

Investment securities

305,410

327,030

284,103

256,835

244,005

305,410

244,005

Total assets

1,556,923

1,563,699

1,426,065

1,345,569

1,335,565

1,556,923

1,335,565

Total deposits

1,109,962

1,114,651

1,073,056

917,603

849,205

1,109,962

849,205

Total stockholders' equity

255,468

262,304

262,480

262,751

261,687

255,468

261,687

Profitability for Period Ended:

Interest income

$

18,798

$

17,803

$

16,209

$

16,293

$

15,791

$

52,810

$

44,989

Interest expense

8,902

8,313

7,156

7,563

7,174

24,371

20,572

Net interest income

9,896

9,490

9,053

8,730

8,617

28,439

24,417

Provision for credit losses

668

1,481

200

47

679

2,349

2,139

Non-interest income

496

950

589

687

422

2,035

1,065

Non-interest expenses

8,331

7,476

8,015

7,946

31,518

23,822

49,237

Income (loss) before income taxes

1,393

1,483

1,427

1,424

(23,158

)

4,303

(25,894

)

Income tax expense (benefit)

279

330

282

392

736

891

(54

)

Net income (loss)

1,114

1,153

1,145

1,032

(23,894

)

3,412

(25,840

)

Less: Net (loss) income attributable to non-controlling interest

(28

)

185

(14

)

7

(11

)

143

(20

)

Net income (loss) attributable to Broadway Financial Corporation

1,142

968

1,159

1,025

(23,883

)

3,269

(25,820

)

Less: Preferred stock dividends

750

750

750

750

750

2,250

2,250

Net income (loss) attributable to common stockholders

$

392

$

218

$

409

$

275

$

(24,633

)

$

1,019

$

(28,070

)

Financial Performance:

Return (loss) on average assets (annualized)

0.10

%

0.06

%

0.12

%

0.08

%

(7.48

)%

0.09

%

(2.92

)%

Return (loss) on average equity (annualized)

0.59

%

0.34

%

0.63

%

0.41

%

(34.12

)%

0.52

%

(13.14

)%

Net interest margin

2.64

%

2.65

%

2.75

%

2.62

%

2.72

%

2.68

%

2.65

%

Efficiency ratio

80.17

%

71.61

%

83.13

%

84.38

%

348.69

%

78.17

%

193.22

%

Per Share Data:

Book value per share

$

11.37

$

12.11

$

12.10

$

12.28

$

12.17

$

11.37

$

12.17

Weighted average common shares (basic)

8,682,092

8,679,800

8,597,291

8,639,459

8,617,707

7,324,696

8,581,883

Weighted average common shares (diluted)

8,871,913

8,874,673

8,816,188

8,639,459

8,617,707

8,854,549

8,581,883

Common shares outstanding at end of period

9,276,317

9,273,624

9,298,949

9,180,498

9,180,760

9,276,317

9,180,760

Financial Measures:

Gross loans to assets

73.39

%

72.73

%

74.95

%

76.25

%

76.63

%

73.39

%

76.63

%

Gross loans to deposits

102.95

%

102.04

%

99.60

%

111.81

%

120.52

%

102.95

%

120.52

%

Allowance for credit losses to gross loans

0.87

%

0.95

%

0.89

%

0.92

%

1.01

%

0.87

%

1.01

%

Allowance for credit losses to total non-accrual loans

72.59

%

96.74

%

82.97

%

84.38

%

76.36

%

72.59

%

76.36

%

Non-accrual loans to gross loans

1.20

%

0.98

%

1.07

%

1.09

%

1.32

%

1.20

%

1.32

%

Non-performing assets to total assets

0.88

%

0.71

%

0.80

%

0.83

%

1.01

%

0.88

%

1.01

%

Net charge-offs (recoveries) to average total loans

0.13

%

0.03

%

-

0.11

%

-

0.16

%

-

Average Balance Sheets:

Total loans

$

1,140,585

$

1,101,866

$

1,039,076

$

1,050,757

$

993,090

$

1,094,214

$

995,521

Investment securities

320,693

312,186

265,415

246,662

206,224

299,634

195,049

Total assets

1,530,782

1,477,208

1,376,070

1,361,026

1,306,782

1,461,920

1,283,284

Total deposits

957,733

963,716

871,487

775,913

746,143

931,294

699,088

Total stockholders' equity

262,242

263,346

264,464

263,266

286,458

263,343

285,679

In addition to results presented in accordance with U.S. generally accepted accounting principles (“GAAP”), management considers various non-GAAP measures when evaluating the performance of the business, including net income and diluted earnings per common share before preferred dividends, net income and diluted earnings per common share before preferred dividends and goodwill impairment, pre-provision net revenue, efficiency ratio, and tangible book value (collectively, the “non-GAAP measures”). These non-GAAP measures are measurements of performance that are not prepared in accordance with U.S. generally accepted accounting principles and computational methods may differ from those used by other companies. Management believes these non-GAAP measures provide useful supplemental information to investors because they assist investors in understanding how management evaluates operating performance and makes day-to-day operating decisions. However, these non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with the Company’s financial statements prepared in accordance with GAAP.

The following table sets forth a GAAP to Non-GAAP reconciliation of financial measures for the quarters and nine months noted below.

BROADWAY FINANCIAL CORPORATION AND SUBSIDIARY

GAAP Reconciliation to Non-GAAP Financial Measures (Unaudited)

(Dollars in thousands, except per share data)

Three Months Ended

Nine Months Ended

September 30,

2026

June 30,

2026

September 30,

2025

September 30,

2026

September 30,

2025

Net income before preferred dividends and Earnings per common share - diluted before preferred dividends:

Net income (loss) attributable to common stockholders

$

392

$

218

$

(24,633

)

$

1,019

$

(28,070

)

Net (income) loss attributable to participating securities

8

5

-

24

-

Add: Preferred stock dividends

750

750

750

2,250

2,250

Net income before preferred dividends

1,150

973

(23,883

)

3,293

(25,820

)

Add: Goodwill impairment

-

-

25,858

-

25,858

Net income before preferred dividends and goodwill impairment

$

1,150

$

973

$

1,975

$

3,293

$

38

Weighted average common shares outstanding for diluted earnings per common share

8,871,913

8,874,673

8,617,707

8,854,549

8,581,883

Earnings per common share - diluted before preferred dividends

$

0.13

$

0.11

$

0.23

$

0.37

$

0.00

Pre-provision net revenue:

Net interest income

$

9,896

$

9,490

$

8,617

$

28,439

$

24,417

Non-interest income

496

950

422

2,035

1,065

Less: Non-interest expense

8,331

7,476

31,518

23,822

49,237

Pre-provision net revenue

$

2,061

$

2,964

$

(22,479

)

$

6,652

$

(23,755

)

Three Months Ended

Nine Months Ended

September 30,

2026

June 30,

2026

March 31,

2026

December 31,

2025

September 30,

2025

September 30,

2026

September 30,

2025

Efficiency ratio:

Net interest income

$

9,896

$

9,490

$

9,053

$

8,730

$

8,617

$

28,439

$

24,417

Non-interest income

496

950

589

687

422

2,035

1,065

Operating revenue

10,392

10,440

9,642

9,417

9,039

30,474

25,482

Non-interest expense

$

8,331

$

7,476

$

8,015

$

7,946

$

31,518

$

23,822

$

49,237

Efficiency ratio

80.17

%

71.61

%

83.13

%

84.38

%

348.69

%

78.17

%

193.22

%

September 30, 2026

December 31, 2025

ACL as a percentage of total loans less purchased loans:

Gross loans

$

1,142,654

$

1,026,143

Less: Purchased loans

170,827

75,321

Gross loans less purchased loans

971,827

950,822

ACL

9,964

8,695

ACL as a percentage of total loans less purchased loans

1.03

%

0.91

%

Common Equity

Shares

Per Share

Capital

Outstanding

Amount

September 30, 2026

Common book value

$

105,468

9,276,317

$

11.37

Less:

Net unamortized core deposit intangible

1,232

Tangible book value

$

104,236

9,276,317

$

11.24

December 31, 2025

Common book value

$

112,751

9,180,498

$

12.28

Less:

Net unamortized core deposit intangible

1,460

Tangible book value

$

111,291

9,180,498

$

12.12

Net income and diluted earnings per common share before preferred dividends and goodwill impairment represent net income and diluted earnings per share adjusted to exclude the impact of preferred stock dividends and goodwill impairment. Net income and diluted earnings per common share before preferred dividends represent net income and diluted earnings per share adjusted to exclude the impact of preferred stock dividends. Management considers this information useful to investors because it provides additional perspective on the earnings available from the Company’s operating activities and facilitates comparisons across reporting periods.

Pre-provision net revenue is calculated by subtracting noninterest expenses from the sum of net interest income and noninterest income. Management considers this information useful to investors because it provides supplemental information regarding the Company’s ability to generate earnings through its business activities before consideration of the provision for credit losses, which can vary significantly from period to period.

Efficiency ratio represents noninterest expense divided by the sum of net interest income and noninterest income, excluding certain non-core items, as applicable. Management considers this information useful to investors as it provides supplemental information regarding the relationship between operating expenses and revenue generation.

The Company calculates tangible book value per common share by dividing tangible common equity by common shares outstanding. Tangible common equity is calculated as common stockholders’ equity less goodwill and other intangible assets. Management believes this measure is useful to investors as tangible equity is a measure that is consistent with the calculation of capital for bank regulatory purposes, which excludes intangible assets from the calculation of risk based ratios, and provides a meaningful assessment of capital adequacy and facilitates comparisons with other financial institutions.