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Broadway Financial Q1 2026 results show profit, deposit growth

Broadway Financial Corporation reported improved first-quarter 2026 results, highlighting balance sheet growth and recovering profitability.

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(High)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

Broadway Financial Corporation reported improved first-quarter 2026 results, highlighting balance sheet growth and recovering profitability. For the three months ended March 31, 2026, basic earnings per share were $0.05 and net income was $1.1 million, supported by net interest income of $9.1 million and total revenue of $9.6 million.

Total assets reached $1.4 billion as of March 31, 2026, with total gross loans of $1.1 billion and total deposits of $1.1 billion. Deposits rose 38% year over year to $1,073 million, bringing the loan-to-deposit ratio down to 99.6%. The net interest margin improved to 2.75%, while the annualized return on average assets moved to 0.12%. Capital remained strong, with a Community Bank Leverage Ratio of 14.06%, and FHLB borrowings were reduced to zero as the bank relied more on deposit growth.

Positive

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Insights

BYFC shows early signs of earnings recovery with stronger funding profile.

Broadway Financial posted Q1 2026 net income of $1.1M after a prior-year loss, with basic EPS of $0.05. Net interest income rose to $9.1M and total revenue to $9.6M, reflecting higher earning assets and better spread management.

Balance sheet trends are notable: total deposits climbed to $1.073B, up 38% year over year, while total gross loans reached $1.069B. The loan-to-deposit ratio improved from 129.0% to 99.6%, and FHLB borrowings dropped to zero, indicating greater reliance on core funding.

Asset quality and capital remain supportive. Non-performing assets were $11.5M, or 0.80% of total assets, and the Community Bank Leverage Ratio measured 14.06% versus a 9.00% regulatory minimum. Future filings will clarify how the strategic pivot away from legacy multifamily lending translates into sustained profitability, efficiency, and credit performance over subsequent quarters.

Item 7.01 Regulation FD Disclosure Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Net income Q1 2026 $1.1 million For the three months ended 3/31/26
Earnings per share $0.05 basic EPS For the three months ended 3/31/26
Total assets $1.4 billion As of 3/31/26
Total gross loans $1.1 billion As of 3/31/26
Total deposits $1.073 billion As of 3/31/26, up 38% YoY
Net interest margin 2.75% Q1 2026 vs 2.63% in Q1 2025
Loan-to-deposit ratio 99.6% Q1 2026 vs 129.0% in Q1 2025
Community Bank Leverage Ratio 14.06% As of Q1 2026; above 9.00% regulatory minimum
Community Bank Leverage Ratio financial
"Community Bank Leverage Ratio (CBLR) 14.06% (as of 3/31/26)"
Community bank leverage ratio is a regulatory measure that compares a bank’s core capital (its safety cushion) to the size of its balance sheet, showing what share of assets is backed by tangible equity rather than borrowed money. Investors use it like a health check: a higher ratio means the bank has more buffer to absorb losses, support lending and dividends, and face fewer regulatory limits, while a lower ratio signals greater risk.
Non-Performing Assets financial
"Non-Performing Assets (NPA) were $11.5MM as of Q1 2026."
Loans or other credit exposures that are not producing expected income because borrowers have stopped making scheduled payments for a significant period (commonly around 90 days). Think of it like a business lending money that has gone quiet — the cash flow stops while the lender still carries the debt on its books. High levels of non-performing assets matter to investors because they reduce a lender’s earnings, tie up capital that could be used for growth, and signal higher risk of future losses.
Allowance for Credit Losses financial
"ACL % of Gross LHI 0.89% 0.92% 1.02% (0.03%) (0.13%)"
Allowance for credit losses is a reserve set aside by a financial institution to cover potential losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution prepare for loans that might turn sour. For investors, it signals how cautious the institution is about the quality of its loans and potential risks to its financial health.
Adjusted Efficiency Ratio financial
"Adj Efficiency Ratio2 83% 87% 99% (4%) (16%)"
A measure of how well a company converts its income into profit after removing unusual or one-time items that can distort results; it is calculated by dividing recurring operating costs by recurring revenue, with adjustments to exclude irregular charges or gains. Investors use it like a household budget that removes a rare emergency expense to see true spending efficiency — a lower adjusted efficiency ratio generally signals better cost control and higher underlying profitability.
Community Development Financial Institution (CDFI) financial
"City First Bank, N.A. operates as a certified Community Development Financial Institution (CDFI)"
A community development financial institution (CDFI) is a specialized lender—such as a bank, credit union, or loan fund—whose main purpose is to provide loans and financial services to low‑income neighborhoods, small businesses, and underserved people who often lack access to traditional banking. Think of it as a neighborhood-focused bank that blends a social mission with financial services; investors watch CDFIs for their potential combination of steady community-driven lending, government or philanthropic support, and impact-oriented returns that differ from mainstream commercial lenders.
Total revenue $9.6 million +16% YoY
Net income $1.1 million vs. ($2.7) million Q1 2025
Basic EPS $0.05 positive vs prior-year loss per share
Net interest income $9.1 million +13% YoY
Net interest margin 2.75% +0.12 percentage points YoY
Total gross loans $1.069 billion +7% YoY
Total deposits $1.073 billion +38% YoY
Community Bank Leverage Ratio 14.06% above 9.00% regulatory minimum

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How did Broadway Financial (BYFC) perform in Q1 2026?
Broadway Financial reported net income of $1.1 million for Q1 2026, with basic EPS of $0.05. Total revenue reached $9.6 million, reflecting higher net interest income and improved operating performance compared with the prior-year loss period.

What were Broadway Financial (BYFC) loans and deposits as of March 31, 2026?
As of March 31, 2026, Broadway Financial reported $1.1 billion in total gross loans and $1.1 billion in total deposits. Deposits increased by $296 million year over year, helping reduce the loan-to-deposit ratio to 99.6%.

How did Broadway Financial’s (BYFC) net interest margin and revenue change in Q1 2026?
Net interest margin improved to 2.75% in Q1 2026 from 2.63% a year earlier. Total revenue rose to $9.6 million, up 16% year over year, driven primarily by higher net interest income of $9.1 million.

What is Broadway Financial’s (BYFC) capital position as of Q1 2026?
Broadway Financial reported a Community Bank Leverage Ratio of 14.06% as of March 31, 2026. This exceeds the 9.00% regulatory minimum, indicating the bank is considered well capitalized under applicable regulatory standards.

How strong is Broadway Financial’s (BYFC) asset quality in Q1 2026?
Non-performing assets totaled $11.5 million in Q1 2026, representing 0.80% of total assets. This ratio improved from 1.01% in Q3 2025, while the allowance for credit losses stood at 0.89% of gross loans.

What funding and liquidity steps did Broadway Financial (BYFC) take by Q1 2026?
By Q1 2026, FHLB borrowings were reduced to $0, with repos at $81.2 million. Deposit growth to $1.073 billion supported funding, and total estimated liquidity sources were $568.1 million, including cash, unpledged securities, and available borrowing capacity.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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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): June 3, 2026

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 7.01
Regulation FD Disclosure

Attached as Exhibit 99.1 to this report is the presentation for the Company’s quarterly earnings, which also may be used in connection with potential meetings with investors and/or analysts.

The information contained in this Current Report on Form 8-K that is furnished under Item 7.01, including Exhibit 99.1, is being furnished pursuant to Item 7.01 of Form 8-K and shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liability of that section. The information contained in this Current Report on Form 8-K that is furnished under Item 7.01, including Exhibit 99.1, shall not be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act regardless of any general incorporation language in such filing.

Item 9.01
Financial Statements and Exhibits.
 
(d)
Exhibits
 
99.1
Presentation dated June 3, 2026
 
104
The cover page from this Current Report on Form 8-K, formatted in Inline XBRL (included as Exhibit 101).
 
2
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: June 3, 2026

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

3
Exhibit 99.1

 First Quarter 2026 Earnings Presentation  June 3, 2026 
 
 Cautionary Forward-Looking Statements  This presentation is for informational purposes only and does not purport to include a complete discussion of the topics mentioned and should not be relied upon as a basis for making an investment decision in the Company’s securities. This presentation also includes “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements often include words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue,” 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; (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 presentation 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 presentation, 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 presentation. 
 
 Corporate Overview & Geographic Footprint  In 2021, Broadway Financial Corporation (BYFC) located in Los Angeles, CA completed a merger with CFBanc Corporation located in Washington, D.C., with BYFC continuing as the surviving entity  BYFC proudly serves communities on both coasts, with branches in Washington, D.C. and Los Angeles, California  A mission driven commercial bank with a focus on the benefit and economic empowerment of our customers and communities. BYFC exists to empower organizations and individuals with more limited access to traditional commercial finance and banking services  BYFC operates as a certified B Corp and Public Benefit Corporation. City First Bank, N.A. operates as a certified Community Development Financial Institution (CDFI)  As of March 31, 2026, BYFC has 97 full-time equivalent employees  Ticker  NASDAQ: BYFC  Established  1946 (Broadway Federal Bank)  1995 (Broadway Financial Corporation)  Headquarters  Washington, D.C. (Bank HQ)  Los Angeles, CA (Holding Co. HQ)  Branches  1 full-service branch – Washington, D.C.  2 full-service branches – Los Angeles, CA  Total Assets  $1.4 billion (as of 3/31/26)  Total Gross Loans  $1.1 billion (as of 3/31/26)  Total Deposits  $1.1 billion (as of 3/31/26)  Earnings Per Share (Basic)  $0.05 (for three months ended 3/31/26)  Community Bank Leverage Ratio (CBLR)  14.06% (as of 3/31/26)  Los Angeles, CA  Washington, D.C.  | Branch and Corporate Office Locations  Full-Service Branch  Corporate Office Only 
 
 Value Proposition  Mission  Vision  Values Based Banking  Our Customer Promise (Our Value Proposition)  To support and strengthen underserved communities through the provision of high-quality banking and other financial services.   City First is:   A Different Kind of Bank. One that leads with purpose, operates with discipline, and delivers with heart.  We put our customers and   Communities FIRST  We think BIG  We model EXCELLENCE  We are ONE City First Team  A purposeful relationship, consistent quality service, and responsive products to grow and strengthen our customers’ businesses, grounded in a shared commitment to community growth, resilience, and opportunity.   How we win:  Shared commitment/purpose to broadened economic opportunity  Client focused solutions   Relationship-driven  Our Strategic Positioning (Our Business Strategy)  High impact, relationship-built, commercial finance solutions for small business owners, their employees, and the communities they serve and impact through:   Commercial banking credit solutions   Commercial, business banking, and institutional deposits & treasury solutions  Consumer deposit products and services 
 
 We offer products and services designed to meet our customers’ financing needs and overcome systemic barriers to access banking.  We put our customers and communities FIRST  We think BIG  We push ourselves to create solutions that deliver finance as a tool for economic justice as scale.  We model EXCELLENCE  We provide “best in class” experiences for our customers to help them reach their goals.  We are ONE City First Team  We understand the collective value of all parts of City First in meeting our mission to drive better outcomes for the bank, our employees, customers, and key stakeholders.  We're building an enduring and connected commercial banking experience for our clients - focused on relationship, impact, and the long-term growth, success, and resilience of their businesses, employees, and the communities they serve.    Our Shared Values 
 
 Banking on Impact 2021 - 2025  We are singularly focused on the economic empowerment of our customers and communities. We aim for at least 70% of our lending to align with our mission and at least 60% to serve low-income communities. During the period covered by this report (2021-2025), we surpassed these goals. 
 
 Strategic Repositioning | Business Line Pivot  Identified structural challenges in 2024: Legacy wholesale multifamily lending became unprofitable due to rising interest rate environment, liquidity constraints, and competitive pressures; drove elevated Commercial Real Estate (CRE) concentration without funding alignment  Executed mid-year repositioning: Deliberately scaled back high-volume, credit-strong business line that historically powered asset growth to safeguard long-term risk posture  2025 near-term impact: Moderated loan growth and earnings as anticipated  Strategic benefits realized: Reduced CRE exposure, balanced relationship-driven portfolio, improved liquidity/concentration, and stronger regulatory standing  2026 positioning: Establishes resilience for sustainable growth, enhanced profitability, and superior franchise value 
 
 Long-term Strategic Intent (2026-2030 Strategic Plan)  Our strategic intent is to be recognized as the national market leader in high-impact, mission-driven business banking solutions with focus on Commercial and Industrial (C&I), CRE, and Small Business Lending. We leverage our relationship managers, partners & digital solutions to expand access to credit & build community economic vitality.  We achieve this intent through market leading:  Access to credit in segment specific CRE, C&I, and Business Banking  Response to emerging mission centric lending opportunities  Integrated specialty deposit and treasury management solutions  Targeted partnering programs driving local economic growth  Our vision of serving the best interests of our people, communities, clients, and owners is the driving force to our sustainability. We aim to consistently outperform community focused financial institutions in Return on Average Assets (ROAA), Return on Average Equity (ROAE), Asset Quality, Net Interest Margin, and Operating Efficiency.  We have 4 strategic areas of focus:  Attract, develop, and retain high performing in market mission aligned relationship managers  Build out differentiated deposit solutions and delivery channels  Streamline and digitize business processes to support scale, efficiencies, and customer experience  Have shared values and principles at the root of every aspect of our growth and expansion 
 
 Executive Management Team  Brian Argrett  President &  CEO  35+ Years of Experience  CEO of City First Bank prior to the merger with Broadway  Former Founder and Managing Partner of Fulcrum Capital Group  Zack Ibrahim  Chief Financial Officer  20+ Years of Experience  Former Head of Corporate Finance at Texas Capital Bank  Previously held key financial leadership roles at Truist, M&T Bank, Regions, Northern Trust, & TIAA  John Allen  Chief Banking Officer  30+ Years of Experience  Former Regional Bank President for Wells Fargo  Previously held roles at Santander Bank, Capital One, and Fifth Third Bank  Justin Jennings  Chief Deposit  Officer  Brian Wagner  Chief Human Resource Officer  20+ Years of Experience  Previously held roles with EagleBank Corp, Truist, and PNC  Experience with acquiring top talent across the nation with multiple institutions  LaShanya Washington  Chief Credit  Officer  25+ Years of Experience  Previously held roles with United Bank and Capital One  Experience with complex transactions such as NMTC, PACE, and Charter Schools  20+ Years of Experience  Former Operations Officer at Columbia Bank  Previously held treasury and operations roles at JP Morgan Chase & Co 
 
 Stock Price & Valuations   | Stock Valuation ($)  | Stock Price ($)  Price/BV Per Share  50%  49%  60%  60%  60%  Price/TBV Per Share  62%  62%  61%  61%  61% 
 
 First Quarter 2026 GAAP Financial Highlights  | Net Income ($MM)  | Total Gross Loans ($MM)  | Total Deposits ($MM)  | Community Bank Leverage   _Ratio (%)  | Net Interest Margin (%)  | ROAA (%) 
 
 Key Financial Highlights  ActualsQ1 '26  ActualsQ4 '25  ActualsQ1 '25  ▲ vsPr Qtr  ▲ vsPr Yr  Balance Sheet ($MM)              Gross Loan Balances  $1,069  $1,026  $1,002  4%  7%  Deposit Balances  $1,073  $918  $777  17%  38%  Investment Balance  $284  $257  $186  11%  53%  Total Assets  $1,426  $1,346  $1,259  6%  13%                 Income Statement ($MM)              Net Income1  $1.1   $1.0   ($2.7)  11%  N/A  Net Interest Income1  $9.1   $8.7   $8.0   4%  13%  Total Revenue  $9.6   $9.4   $8.3   2%  16%  Non-Interest Expense  $8.0   $7.9   $10.2   1%  (21%)  Adj Non-Interest Expense2  $8.0   $8.2   $8.3   (2%)  (3%)  Pre-Tax Pre-Provision Income  $1.6   $1.5   ($1.9)  11%  N/A                 Key Performance Metrics              Net Interest Margin %  2.75%  2.62%  2.63%  0.13%  0.12%  Loan Yields  5.19%  5.17%  5.30%  0.02%  (0.11%)  Cost of Interest-Bearing Funds %  2.91%  3.06%  3.06%  (0.15%)  (0.15%)  Loan to Deposit Ratio %  99.6%  111.8%  129.0%  (12.2%)  (29.4%)  Return on Average Assets  0.12%  0.08%  (1.08%)  0.04%  1.20%  Efficiency Ratio  83%  84%  122%  (1%)  (39%)  Adj Efficiency Ratio2  83%  87%  99%  (4%)  (16%)  ACL % of Gross LHI  0.89%  0.92%  1.02%  (0.03%)  (0.13%)  Key Financial Highlights  1 Q1 2026 includes a one-time ($0.5MM) correction of an error in the calculation of interest on loans. This resulted in a tax adjusted impact to net income of ($0.4MM)  2 Non-Interest Expense is adjusted for a $1.9MM wire fraud expense in Q1 2025. Recoveries of $1.6MM in Q3 2025 and $0.2MM in Q4 2025 were also excluded in the adjusted metrics. Non-Interest Expense is adjusted to excluded goodwill impairment of $25.9MM in Q3 2025. Non-GAAP financial metrics are reconciled on page 22 in the appendix 
 
 Deposits & Borrowings Portfolios  | Total Deposits ($MM) & Loan to Deposit  | Deposit Composition %   | FHLB & Repos ($MM)      2025  Q1  2025  Q2  2025  Q3  2025  Q4  2026  Q1  FHLB  78.0  60.0  107.5  72.0  0.0  Repos  80.8  63.8  76.1  80.8  81.2  Total  158.8  123.8  183.6  152.8  81.2  | Highlights  YoY total deposits have increased $296MM or 38% from $777MM in Q1 2025 to $1,073MM in Q1 2026  Loan to Deposit Ratio improved from 129.0% to 99.6% YoY  As of Q1 2026, FHLB borrowings have been reduced to zero. The Bank is utilizing deposit growth to reduce reliance on wholesale fundings and brokered CDs  Deposit composition indicates a diverse portfolio with 9% of balances in non-interest-bearing accounts. The long-term strategic goal is to double that percentage to further reduce overall cost of funds 
 
 Loan Portfolio   | Loan Composition %  | Total Gross Loans ($MM)  | Loan Yields2 %   | Highlights  YoY total loans have increased by $67MM or 7% from $1,002MM in Q1 2025 to $1,069MM in Q1 2026  Loan growth was mainly derived from C&I and owner-occupied transactions  Loan yields have decreased from 5.30% in Q1 2025 to 5.19% in Q1 2026  Loan portfolio composition is heavily weighted towards multi-family due to the legacy lending strategy. We expect that mix to shift as we execute our long-term strategic goals   4.2% growth  1  1 GGL = Government Guaranteed Loan (USDA & SBA)  2 Q1 2026 includes a one-time ($0.5MM) correction of an error in the calculation of interest on loans 
 
 Investment Securities  | Investment Portfolio Composition  | Investment Portfolio Yield (Market Yield)   Type  % of Portfolio  Book Yield  Book Value ($M)1  Market Value ($M)  Unrealized   Gain/Loss ($M)  MBS (Fixed)  50%  3.76%  146,254   139,109   (7,145)  CMO (Float)  21%  4.76%  58,991   58,900   (91)  CMO (Fixed)  9%  4.28%  27,577   26,952   (625)  Agency (Fixed)  6%  1.42%  18,861   18,085   (776)  Corporate Bonds  7%  6.18%  19,500   19,422   (78)  SBA (Fixed)  2%  1.70%  8,049   6,962   (1,088)  Agency (Float)  2%  4.63%  5,555   5,566   12   CMBS (Float)  1%  4.27%  3,101   3,096   (5)  Muni - Taxable  1%  1.44%  3,186   3,053   (133)  Muni - TE  1%  1.65%  1,571   1,456   (115)  SBA (Float)  0%  5.10%  785   787   3   MBS (Float)  0%  4.76%  714   713   (1)  Total  100%  3.95%   294,145   284,103   (10,043)  | Highlights  As of March 2026, the investment securities portfolio book value was $294MM. The portfolio is primarily concentrated in fixed MBS, floating and fixed CMOs, agency, and corporate bond products. The bank opportunistically made significant purchases in 2025  On a YoY basis, overall portfolio yield improved from 2.49% to 3.99% due to purchases of higher yielding securities  The Bank has supplemented the portfolio with ~$20MM of high-quality bank sub-debt purchases with an average book yield of 6.18% as of Q1 2026  1 Securities book value excludes unrealized Available for Sale (AFS) gain / loss on sale 
 
 Asset Quality   | NPAs ($MM) and NPAs/Assets (%)  | Provision for Credit Losses ($MM) and   _Provision / Gross Loans (Annualized %)  | ACL / Adj. Gross Loans (%)1  | Highlights  Non-Performing Assets (NPA) were $11.5MM as of Q1 2026. Despite elevated balances, NPAs as a % of total assets remained strong at 0.80% during the quarter, and is down from 1.01% in Q3 2025  Provision expense of $1.9MM in Q1 2025 was largely attributed to required reserves on individually evaluated loans  ACL as a % of adj. gross loans remained stable during the last 5 quarters  1 Gross loans were adjusted for purchased government guaranteed loans (GGLs) attracting no loan loss reserves. Non-GAAP financial metrics are reconciled on page 22 in the appendix  
 
 Net Interest Income   | Net Interest Income ($MM) and Net Interest Margin (%)  | Interest Expense Breakout ($MM)  | Interest Income Breakout ($MM)  | Interest Expense ($MM) and Cost of Funds (%)1  1 Cost of Funds reflects cost of interest-bearing liabilities 
 
 Non-Interest Expense   | Adjusted Non-Interest Expense ($MM)1  | NIE Breakout by Category (GAAP)  | Adjusted Efficiency Ratio (%)1                       ($M)  3/31/2025  6/30/2025  9/30/2025  12/31/2025  3/31/2026  QoQ Change  YoY Change  Compensation & Benefits  5,284  4,412  4,340  4,802  4,886  2%  (8%)  Occupancy & Equipment  540  485  505  507  508  0%  (6%)  Marketing and Promotion Expense  46  61  76  0  124  N/A  170%  Professional Fees  700  788  624  896  586  (35%)  (16%)  Communications Expense  706  774  768  763  940  23%  33%  Amortization of Intangibles  79  79  78  79  76  (4%)  (4%)  Impairment of Goodwill  0  0  25,858  0  0  0%  0%  Operational Loss (Recovery)  1,943  0  (1,603)  (240)  0  N/A  (100%)  Other Expense  899  923  872  1,139  895  (21%)  0%  Total Noninterest Expense  10,197  7,522  31,518  7,946  8,015  1%  (21%)  1 Non-Interest Expense is adjusted for a $1.9MM wire fraud expense in Q1 2025. Recoveries of $1.6MM in Q3 2025 and $0.2MM in Q4 2025 were also excluded in the adjusted metrics. Non-Interest Expense is adjusted to excluded goodwill impairment of $25.9MM in Q3 2025. Non-GAAP financial metrics are reconciled on page 22 in the appendix 
 
 Capital & Liquidity   | Community Bank Leverage Ratio (%)  | Tier 1 Capital ($MM)  | Liquidity Sources ($MM)  | Highlights  Community Bank Leverage Ratio (CBLR) remains strong at 14.06% as of Q1 2026, and the Bank is well capitalized compared to the 9.00% regulatory minimum  We believe the Bank has access to sufficient liquidity from cash, unpledged securities, and available FHLB advance capacity   Tier 1 capital reflects steady growth over the last 5 quarters  Source  As of 3/31/26  Cash and Cash Equivalents  26.6  Market Value of Unpledged Securities  188.3  Available FHLB Advance Capacity  343.1   Available Fed Fund Lines of Credit  10.0   Total Estimated Sources of Liquidity  568.1  
 
 Appendix 
 
 Quarterly Financial Highlights  1 Non-Interest Expense is adjusted for a $1.9MM wire fraud expense in Q1 2025. Recoveries of $1.6MM in Q3 2025 and $0.2MM in Q4 2025 were also excluded in the adjusted metrics. Non-Interest Expense is adjusted to excluded goodwill impairment of $25.9MM in Q3 2025. Non-GAAP financial metrics are reconciled on page 22 in the appendix  END OF PERIOD DATE  3/31/2025  6/30/2025  9/30/2025  12/31/2025  3/31/2026                    BALANCE SHEET ($M)                 Total Net Loans  991,587  977,064  1,013,144  1,016,540  1,059,262  Total Securities  185,938  177,977  244,005  256,835  284,103  Total Assets  1,258,776  1,247,517  1,335,565  1,345,569  1,426,065  Total Deposits  776,543  798,922  849,205  917,603  1,073,056                    INCOME STATEMENT ($M)                 Interest Income  14,801   14,397   15,791   16,293   16,209   Interest Expense  6,756   6,642   7,174   7,563   7,156   Total Noninterest Income  288   355   422   687   589   Non-interest Expenses  10,197   7,522   31,518   7,946   8,015   Adjusted Non-interest Expenses 1  8,254   7,522   7,263   8,186   8,015   Provision for Credit Losses  1,914   (454)  679   47   200   Pre-Tax Pre-Provision Income  (1,864)  588   (22,479)  1,471   1,627   Net Income  (2,692)  746   (23,894)  1,032   1,145                     KEY FINANCIAL METRICS (%)                 ROAA (annualized)  (1.08)  0.00   (7.48)  0.08   0.12   ROAE (annualized)  (4.87)  0.00   (34.12)  0.41   0.63   Net Interest Margin  2.63   2.58   2.72   2.62   2.75   Efficiency Ratio  122.37   92.75   348.69   84.39   83.13   Adjusted Efficiency Ratio 1  99.05   92.75   80.35   86.93   83.13   Loans / Deposits  129.01   123.53   120.52   111.81   99.60   Securities/ Assets  14.77   14.27   18.27   19.09   19.92   NPAs / Assets  0.40   0.44   1.01   0.83   0.80   ACL / Gross Loans  1.02   1.00   1.01   0.92   0.89  
 
 Reconciliation of Non-GAAP Information  Adj. Non-Interest Expense ($M) and Adj. Efficiency Ratio (%)  2026Q1  2025Q4  2025Q3  2025Q2  2025Q1  Non-Interest Expense  8,015   7,946   31,518   7,522   10,197   Operational Recovery (Loss)  -  240  1,603   -  (1,943)  Goodwill Impairment  -  -  (25,858)  -  -  Adj. Non-Interest Expense  8,015   8,186   7,263   7,522   8,254         Net Interest Income  9,053   8,730   8,617   7,755   8,045   Non-Interest Income  589   687   422   355   288   Total Revenue  9,642   9,417   9,039   8,110   8,333         Efficiency Ratio  83.1%  84.4%  348.7%  92.7%  122.4%  Adj. Efficiency Ratio  83.1%  86.9%  80.4%  92.7%  99.1%  ACL ($M) / Adj. Gross Loans ($M)  2026Q1  2025Q4  2025Q3  2025Q2  2025Q1  Gross Loans  1,068,771   1,025,964   1,023,483   986,944   1,001,847   Less: Government Guaranteed Loans  113,931   75,321   58,170   11,627   0   Adj. Gross Loans  954,840   950,643   965,313   975,317   1,001,847   ACL  9,509   9,424   10,339   9,880   10,260   ACL / Adj. Gross Loans  1.00%  0.99%  1.07%  1.01%  1.02% 
 

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