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.