BROADWAY FINANCIAL CORP DE 10-K

ITEM 9A. CONTROLS AND PROCEDURES Evaluation of Disclosure Controls and Procedures As of December 31, 2025, an evaluation was performed under the supervision of the Company’s Principal Executive Officer (“PEO”) and Principal Financial Officer (“PFO”) of the effectiveness of the design and operation of the Company’s disclosure controls and procedures. Based on that evaluation, the Company’s PEO and PFO concluded that the Company’s disclosure controls and procedures were not effective as of December 31, 2025 due to material weaknesses in the Company’s internal control over financial reporting, as further described below. Management’s Annual Report on Internal Control Over Financial Reporting The management of Broadway Financial Corporation is responsible for establishing and maintaining adequate internal control over financial reporting for the Company as defined in Rule 13a 15(f) under the Exchange Act. This system, which management has chosen to base on the criteria for effective internal control over financial reporting established in “Internal Control — Integrated Framework (2013),” issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”), and which is effected by the Company’s Board of Directors, management and other personnel, is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with GAAP. The Company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and the Directors of the Company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Company’s assets that could have a material effect on the financial statements. Because of its inherent limitations, a system of internal control over financial reporting can provide only reasonable assurance and may not prevent or detect misstatements. Further, because of changes in conditions, effectiveness of internal controls over financial reporting may vary over time. With the participation of the Company’s PEO and PFO, management has conducted an evaluation of the effectiveness of the Company’s system of internal control over financial reporting. Based on this evaluation, management determined that the Company’s system of internal control over financial reporting was not effective as of December 31, 2025, due to the material weaknesses described below. A material weakness is a control deficiency, or combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the Company’s annual or interim financial statements will not be prevented or detected on a timely basis. The following material weaknesses were identified: The Company did not maintain effective components of the COSO framework in the areas of control activities, information and communication process and monitoring activities that contributed to the following material weaknesses: • The Company did not have controls in place to identify unusual or infrequent equity-related contracts entered into which could have a material impact on accounting and financial reporting. • The Company did not maintain controls to consider subsequent appraisals for collateral dependent loans. This annual report does not include an attestation report of the Company’s registered public accounting firm regarding internal control over financial reporting. Management’s report was not subject to attestation by the Company’s registered public accounting firm pursuant to rules of the SEC that permit the Company to provide only management’s report in this annual report. Remediation Plan for Material Weaknesses In response to the identified material weaknesses, our management, with the oversight of the Audit Committee of our Board of Directors, has begun to dedicate significant resources, including additional employee training, toward efforts to improve our internal control over financial reporting. Management is actively engaged in the planning for, and implementation of, remediation efforts to address the material weaknesses. 38 Table of Contents • Thorough discussion and review of all new unusual or infrequent equity-related contracts each quarter with documentation of accounting treatment and disclosure with respect to such transactions that could have a potential impact on the Company’s financial statements, and • An enhancement of the controls over the allowance for credit losses at each quarter end to evaluate that all appraisals for collateral dependent loans that are received prior to the date that the financial statements are issued have been evaluated by management and considered in the estimate of the allowance for credit losses. Additional time is required to complete the design and test the operating effectiveness of the applicable controls to demonstrate the effectiveness of the remediation efforts. The material weaknesses cannot be considered remediated until the applicable remedial controls operate for a sufficient period of time and management has concluded, through testing, that these controls are operating effectively. Remediation of Previously Identified Material Weakness Management has concluded that the material weakness in internal control over financial reporting related to the accounting for loan participations initially described in Part II, Item 9A “Controls and Procedures,” of our Annual Report on Form 10-K/A for the Year Ended December 31, 2024 (the “2024 Form 10-K/A”) has been remediated as of December 31, 2025. The Company has implemented additional control procedures, including redesigning and enhancing control activities related to preparation and review of existing and new loan participation agreements. Management has evaluated these enhanced controls and has concluded they were designed and implemented and are operating effectively. Changes in Internal Control Over Financial Reporting There were no changes in the Company’s internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during the fourth quarter of 2025 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting. Inherent Limitations on Effectiveness of Controls Our disclosure controls and procedures are designed to provide reasonable assurance of achieving their objectives as specified above. Management does not expect, however, that our disclosure controls and procedures will prevent or detect all error and fraud. Any control system, no matter how well designed and operated, is based upon certain assumptions, and can provide only reasonable, not absolute, assurance that its objectives will be met. Further, no evaluation of controls can provide absolute assurance that misstatements due to error or fraud will not occur or that all control issues and instances of fraud, if any, within the Company have been detected. ITEM 9B. OTHER INFORMATION None . ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS Not applicable. 39 Table of Contents PART III ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE The information required by this Item 10 is incorporated herein by reference to the definitive Proxy Statement, under the captions “Election of Directors,” “Executive Officers,” “Code of Ethics,” “Insider Trading Policy” and, if applicable, “Delinquent Section 16(a) Reports,” that will be filed with the SEC in connection with the Company’s 2026 Annual Meeting of Stockholders (the “Company’s Proxy Statement”). ITEM 11. EXECUTIVE COMPENSATION The information required by this Item 11 is incorporated herein by reference to the Company’s Proxy Statement, under the captions “Executive Compensation” and “Director Compensation.” ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS The information required by this Item 12 is incorporated herein by reference to the Company’s Proxy Statement, under the caption “Security Ownership of Certain Beneficial Owners and Management.” ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE The information required by this Item 13 is incorporated herein by reference to the Company’s Proxy Statement, under the captions “Certain Relationships and Related Transactions” and “Election of Directors.” ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES The information required by this Item 14 is incorporated herein by reference to the Company’s Proxy Statement, under the caption “Ratification on An Advisory (Non-Binding) Basis of the Appointment of Independent Registered Public Accounting Firm.” PART IV ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES (a) 1. See Index to Consolidated Financial Statements. 2. Financial Statement Schedules have been omitted because they are not applicable or the required information is shown in the Consolidated Financial Statements or Notes thereto included under Item 8, “Financial Statements and Supplementary Data.” (b) List of Exhibits Exhibit Number* 3.1 Amended and Restated Certificate of Incorporation of Registrant (Exhibit 3.1 to Form 8-K filed by Registrant on April 5, 2021) 3.2 Certificate of Amendment to Certificate of Incorporation of Registrant (Exhibit 3.1 to Form 8-K filed by the Registrant on November 1, 2023) 3.3 Bylaws of Registrant (Exhibit 3.2 to Form 8‑K filed by Registrant on August 24, 2020) 3.4 Certificate of Designations for the Series B Junior Participating Preferred Stock (Exhibit 3.1 to Form 8-K filed by Registrant on September 11, 2019) 3.5 Certificate of Designations of Senior Non-Cumulative Perpetual Preferred Stock, Series C (Exhibit 3.1 to Form 8-K filed by Registrant on June 8, 2022) 3.6 ECIP Securities Purchase Option Agreement, dated January 14, 2025, by and between Broadway Financial Corporation and the United States Department of the Treasury (Exhibit 3.6 to Form 10-K/A filed by Registrant on December 23, 2025) 4.1 Description of Registrant’s Securities Registered Pursuant to Section 12 of the Securities Exchange Act of 1934 (Exhibit 4.1 to Form 10-K filed by Registrant on April 15, 2022) 4.2 Rights Agreement, dated as of September 10, 2019, entered between Broadway Financial Corporation and Computershare Trust Company, N.A., as rights agent (Exhibit 4.1 to Form 8-K filed by Registrant on September 11, 2019) 40 Table of Contents 4.3 Amendment to Rights Agreement, dated as of August 25, 2020, entered between Broadway Financial Corporation and Computershare Trust Company, N.A. (Exhibit 4.1 to Form 8-K file by Registrant on August 26, 2020) 4.4 Registration Rights Agreement (Exhibit 10.2 to Form 8-K filed by Registrant on June 8, 2022) 10.1** Broadway Federal Bank Employee Stock Ownership Plan (Exhibit 10.1 to Form 10‑K filed by Registrant on March 28, 2016) 10.2** Amended and Restated Broadway Financial Corporation 2008 Long Term Incentive Plan (Exhibit 10.3 to Form 10‑Q filed by Registrant on August 12, 2016) 10.3** Amended Form of Award Agreement for stock options granted pursuant to Amended and Restated Broadway Financial Corporation 2008 Long‑Term Incentive Plan (Exhibit 10.1 to Form 10‑Q filed by Registrant on August 12, 2016) 10.4** Broadway Financial Corporation Amended and Restated 2018 Long‑Term Incentive Plan (Exhibit 10.4 to Form 10-K filed by Registrant on May 20, 2024) 10.5** Form of Award Agreement for restricted stock granted pursuant to Broadway Financial Corporation Amended and Restated 2018 Long‑Term Incentive Plan (Exhibit 10.5 to Form 10-K filed by Registrant on May 20, 2024) 10.6** Employment Agreement, dated as of May 1, 2017, for Brenda J. Battey (Exhibit 10.11 to Form 10-K filed by Registrant on March 29, 2019) 10.7** Amendment to Employment Agreement for Brenda J. Battey, dated as of January 14, 2020 (Exhibit 10.1 to form 8-K filed by Registrant on January 14, 2021) 10.8** Employment Agreement, dated as of May 1, 2017, for Ruth McCloud (Exhibit 10.13 to Form 10-K filed by Registrant on March 29, 2019) 10.9** Amendment to Employment Agreement for Ruth McCloud, dated as of January 14, 2020 (Exhibit 10.3 to form 8-K filed by Registrant on January 14, 2021) 10.10** Broadway Federal Bank Incentive Compensation Plan (Exhibit 10.14 to Form 10-K filed by the Registrant on March 31, 2021) 10.11** Employment Agreement, dated and effective as of November 17, 2021, between Registrant and Brian E. Argrett (Exhibit 10.1 to Form 8-K filed by Registrant on November 18, 2021) 10.12 Stock Purchase Agreement, dated as of December 21, 2016, entered between First Republic Bank and Registrant (Exhibit 10.8 to Form 10‑K filed by Registrant on March 27, 2017) 10.13 ESOP Loan Agreement and ESOP Pledge Agreement, each dated as of December 19, 2016, entered into between Registrant and Miguel Paredes, as trustee for the Broadway Federal Bank, f.s.b., Employee Stock Ownership Plan Trust, and related Promissory Note, dated as of December 19, 2016 (Exhibit 10.12 to Form 10‑K filed by Registrant on March 27, 2017) 10.14 Stock Purchase Agreement, dated as of November 23, 2020, entered between Banc of America Strategic Investments Corporation and Registrant (Exhibit 10.15 to Registration Statement on S-4 filed by Registrant on January 19, 2021) 10.15 Stock Purchase Agreement, dated as of November 23, 2020, entered between Cedars-Sinai Medical Center and Registrant (Exhibit 10.14 to Registration Statement on S-4 filed by Registrant on January 19, 2021) 10.16 Stock Purchase Agreement, dated as of November 24, 2020, entered between Wells Fargo Central Pacific Holdings, Inc. and Registrant (Exhibit 10.16 to Registration Statement on S-4 filed by Registrant on January 19, 2021) 10.17 Stock Purchase Agreement, dated as of February 19, 2021, entered between Ally Ventures, a business unit of Ally Financial Inc., and Registrant (Exhibit 10.24 to Form 10-K filed by Registrant on March 31, 2021) 10.18 Stock Purchase Agreement, dated as of February 19, 2021, entered between Banner Bank and Registrant (Exhibit 10.25 to Form 10-K filed by Registrant on March 31, 2021) 10.19 Stock Purchase Agreement, dated as of February 19, 2021, entered between Citicorp Banking Corporation and Registrant (Exhibit 10.26 to Form 10-K filed by Registrant on March 31, 2021) 10.20 Stock Purchase Agreement, dated as of February 19, 2021, entered between First Republic Bank and Registrant (Exhibit 10.8 to Form 10‑K filed by Registrant on March 31, 2021) 10.21 Stock Purchase Agreement, dated as of February 19, 2021, entered between Gerald I. White and Registrant (Exhibit 10.28 to Form 10-K filed by Registrant on March 31, 2021) 10.22 Stock Purchase Agreement, dated as of February 19, 2021, entered between Gerald I. White, in his capacity as the trustee for the Grace & White, Inc. Profit Sharing Plan, and Registrant (Exhibit 10.29 to Form 10-K filed by Registrant on March 31, 2021) 10.23 Stock Purchase Agreement, dated as of February 19, 2021, entered between Registrant and Butterfield Trust (Bermuda) Limited as trustee of each of the following: The Lorraine Grace Will Trust, The Anne Grace Kelly Trust 99, The Gwendolyn Grace Trust 99, The Lorraine L. Grace Trust 99, and The Ruth Grace Jervis Millennium Trust (Exhibit 10.30 to Form 10-K filed by Registrant on March 31, 2021) 10.24 Stock Purchase Agreement, dated as of February 19, 2021, entered between Texas Capital Community Development Corporation and Registrant (Exhibit 10.31 to Form 10-K filed by Registrant on March 31, 2021) 10.25 Stock Purchase Agreement, dated as of February 20, 2021, entered between J.P. Morgan Chase Community Development Corporation and Registrant (Exhibit 10.32 to Form 10-K filed by Registrant on March 31, 2021) 41 Table of Contents 10.26 Letter Agreement and Securities Purchase Agreement, dated June 7, 2022 (Exhibit 10.1 to Form 8-K filed by Registrant on June 8, 2022) 19.1 Insider Trading Policy (Exhibit 19.1 to Form 10-K filed by Registrant on March 31, 2025) 21.1 List of Subsidiaries 23.1 Consent of Crowe LLP 23.2 Consent of Baker Tilly US, LLP 31.1 Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes‑Oxley Act of 2002 31.2 Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes‑Oxley Act of 2002 32.1 Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes‑Oxley Act of 2002 32.2 Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes‑Oxley Act of 2002 97.1 Compensation Clawback Policy (Exhibit 97.1 to Form 10S-K filed by Registrant on May 20, 2024) 101.INS Inline XBRL Instance Document 101.SCH Inline XBRL Taxonomy Extension Schema Document 101.CAL Inline XBRL Taxonomy Extension Calculation Linkbase Document 101.DEF Inline XBRL Taxonomy Extension Definitions Linkbase Document 101.LAB Inline XBRL Taxonomy Extension Label Linkbase Document 101.PRE Inline XBRL Taxonomy Extension Presentation Linkbase Document 104 The cover page from this Annual Report on Form 10-K, formatted in Inline XBRL (included as Exhibit 101). ** Management contract or compensatory plan or arrangement. ITEM 16. FORM 10-K SUMMARY None. SIGNATURES Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. BROADWAY FINANCIAL CORPORATION By: /s/ BRIAN ARGRETT Brian Argrett Chief Executive Officer Date: March 31, 2026 Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. /s/ BRIAN ARGRETT Date: March 31, 2026 Brian Argrett Chief Executive Officer and President (Principal Executive Officer) Chairman of the Board /s/ ZACK IBRAHIM Date: March 31, 2026 Zack Ibrahim Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer) /s/ WAYNE-KENT A. BRADSHAW Date: March 31, 2026 Wayne-Kent A. Bradshaw Vice Chairman of the Board 42 Table of Contents /s/ MARIE C. JOHNS Date: March 31, 2026 Marie C. Johns Lead Independent Director /s/ MARY M. HENTGES Date: March 31, 2026 Mary M. Hentges Audit Committee Chairman /s/ ROBERT C. DAVIDSON, JR. Date: March 31, 2026 Robert C. Davidson, Jr. Director /s/ MARY ANN DONOVAN Date: March 31, 2026 Mary Ann Donovan Director /s/ DAVID J. MCGRADY Date: March 31, 2026 David J. McGrady Director /s/ DUTCH C. ROSS III Date: March 31, 2026 Dutch C. Ross III Director /s/ JOHN M. DRIVER Date: March 31, 2026 John M. Driver Director 43 Table of Contents BROADWAY FINANCIAL CORPORATION AND SUBSIDIARY Index to Consolidated Financial Statements Years ended December 31, 2025 and 2024 Report of Independent Registered Public Accounting Firm (PCAOB ID # 173 ) F‑1 Report of Independent Registered Public Accounting Firm (PCAOB ID #23) F‑2 Consolidated Statements of Financial Condition F‑3 Consolidated Statements of Operations and Comprehensive Income F‑4 Consolidated Statements of Changes in Equity F‑5 Consolidated Statements of Cash Flows F‑6 Notes to Consolidated Financial Statements F‑7 Table of Contents REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM Stockholders and the Board of Directors of Broadway Financial Corporation Los Angeles, California Opinion on the Financial Statements We have audited the accompanying consolidated statement of financial condition of Broadway Financial Corporation (the "Company") as of December 31, 2025, the related consolidated statements of operations and comprehensive income, changes in stockholders’ equity, and cash flows for the year then ended, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025, and the results of its operations and its cash flows for the year then ended, in conformity with accounting principles generally accepted in the United States of America. Basis for Opinion These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion. Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion. Critical Audit Matter The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of the critical audit matter does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates. Allowance for Credit Losses – Qualitative Adjustments As described in Notes 1 and 4 to the consolidated financial statements, the Company’s accounting for the allowance for credit losses on loans requires the Company to recognize estimates for lifetime losses on loans at the time of origination or acquisition. The recognition of losses at origination or acquisition represents the Company’s best estimate of the lifetime expected credit loss associated with a loan. Estimating expected credit losses requires management to use relevant forward-looking information, including the use of reasonable and supportable forecasts. As of December 31, 2025, the balance of the allowance for credit losses (“ACL”) was $9.4 million. The Company uses the weighted-average remaining maturity method when determining estimates for the ACL for each of its portfolio segments. The Company then estimates a loss rate for each pool using both its own historical loss experience and the historical losses of a group of peer institutions. Since historical information may not always, by itself, provide a sufficient basis for determining future expected credit losses, the Company considers the need for qualitative adjustments. Qualitative adjustments may include, but are not limited to factors such as: (i) changes in lending policies and procedures, including changes in underwriting standards and collections, charge offs and recovery practices; (ii) changes in international, national, regional and local conditions; (iii) changes in the nature and volume of the portfolio and terms of loans; (iv) changes in the experience, depth and ability of lending management; (v) changes in the volume and severity of past due loans and other similar conditions; (vi) changes in the quality of the organization’s loan review system; (vii) changes in the value of underlying collateral for collateral dependent loans; (viii) the existence and effect of any concentrations of credit and changes in the levels of such concentrations; and (ix) the effect of other external factors on the level of estimated credit losses. We identified the auditing of the qualitative adjustments used in the allowance for credit losses-loans as a critical audit matter due the significant judgment required by management to develop the qualitative adjustments, which required significant audit effort and a high degree of auditor judgment to evaluate the qualitative adjustments given the volume and nature of inputs. To address the matter, we performed the following substantive audit procedures related to the qualitative adjustments including: • Evaluated the methodology used for the qualitative adjustments; • Tested the completeness and accuracy of data used in the calculation of qualitative adjustments; • Evaluated the reasonableness of management’s application of qualitative adjustments and resulting allocation to the ACL; and • Evaluated the relevance and reliability of external data sources used in the assessment of qualitative adjustments. /s/ Crowe LLP We have served as the Company's auditor since 2025. Washington, District of Columbia March 31, 2026 F-1 Table of Contents Report of Independent Registered Public Accounting Firm The Shareholders and the Board of Directors Broadway Financial Corporation Opinion on the Financial Statements We have audited the accompanying consolidated statements of financial condition of Broadway Financial Corporation and subsidiary (the “Company”) as of December 31, 2024, the related consolidated statements of operations and comprehensive income , changes in stockholders’ equity , and cash flows for the year ended December 31, 2024, and the related notes (collectively, referred to as the consolidated financial statements). In our opinion, the consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Company as of December 31, 2024, and the consolidated results of its operations and its cash flows for the year ended December 31, 2024, in conformity with accounting principles generally accepted in the United States of America . Basis for Opinion These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s consolidated financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion. Our audit included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures to respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audit provides a reasonable basis for our opinion. /s/ Baker Tilly US, LLP Spokane, Washington March 31, 2025, except for the previously disclosed restatement to the 2024 consolidated financial statements, as to which the date is December 23, 2025. We served as the Company’s auditor from 2014 to 2025. F-2 Table of Contents BROADWAY FINANCIAL CORPORATION AND SUBSIDIARY Consolidated Statements of Financial Condition December 31, 2025 December 31, 2024 (In thousands, except share and per share) Assets: Cash and due from banks $ 1,676 $ 2,255 Interest-bearing deposits in other banks 8,831 59,110 Cash and cash equivalents 10,507 61,365 Securities available-for-sale, at fair value (amortized cost of $ 265,371 and $ 219,658 ) 256,835 203,862 Loans receivable held for investment, net of allowance of $ 9,424 and $ 8,364 1,016,540 999,956 Accrued interest receivable 5,999 5,001 Federal Home Loan Bank (FHLB) stock 4,417 9,637 Federal Reserve Bank (FRB) stock 3,543 3,543 Office properties and equipment, net 8,732 8,899 Bank owned life insurance 23,663 3,321 Deferred tax assets, net 6,711 8,880 Core deposit intangible, net 1,460 1,775 Goodwill – 25,858 Other assets 7,162 2,786 Total assets $ 1,345,569 $ 1,334,883 Liabilities and equity Liabilities: Deposits $ 917,603 $ 745,399 Securities sold under agreements to repurchase 80,773 66,610 Borrowings 72,000 226,888 Accrued expenses and other liabilities 12,236 10,794 Total liabilities 1,082,612 1,049,691 Stockholders’ equity: Non-Cumulative Redeemable Perpetual Preferred stock, Series C; authorized 150,000 shares at December 31, 2025 and December 31, 2024; issued and outstanding 150,000 shares at December 31, 2025 and December 31, 2024; liquidation value $ 1,000 per share 150,000 150,000 Common stock, Class A, $ 0.01 par value, voting; authorized 75,000,000 shares at December 31, 2025 and December 31, 2024; issued 6,409,760 shares at December 31, 2025 and 6,349,455 shares at December 31, 2024; outstanding 6,082,532 shares at December 31, 2025 and 6,022,227 shares at December 31, 2024 64 63 Common stock, Class B, $ 0.01 par value, non-voting; authorized 15,000,000 shares at December 31, 2025 and December 31, 2024; issued and outstanding 1,425,404 shares at December 31, 2025 and issued and outstanding 1,425,574 shares at December 31, 2024 14 14 Common stock, Class C, $ 0.01 par value, non-voting; authorized 25,000,000 shares at December 31, 2025 and December 31, 2024; issued and outstanding 1,672,562 at December 31, 2025 and December 31, 2024 17 17 Additional paid-in capital 143,194 142,902 (Accumulated deficit) retained earnings ( 15,238 ) 12,727 Unearned Employee Stock Ownership Plan (ESOP) shares ( 3,869 ) ( 4,201 ) Accumulated other comprehensive loss, net of tax ( 6,105 ) ( 11,223 ) Treasury stock-at cost, 327,228 shares at December 31, 2025 and at December 31, 2024 ( 5,326 ) ( 5,326 ) Total Broadway Financial Corporation and Subsidiary stockholders’ equity 262,751 284,973 Non-controlling interest 206 219 Total liabilities and equity $ 1,345,569 $ 1,334,883 See accompanying notes to consolidated financial statements. F-3 Table of Contents BROADWAY FINANCIAL CORPORATION AND SUBSIDIARY Consolidated Statements of Operations and Comprehensive Income Years Ended December 31, 2025 2024 (In thousands, except per share) Interest income: Interest and fees on loans receivable $ 53,049 $ 50,544 Interest on available-for-sale securities 6,412 7,034 Other interest income 1,821 6,368 Total interest income 61,282 63,946 Interest expense: Interest on deposits 19,930 13,183 Interest on borrowings 8,205 18,994 Total interest expense 28,135 32,177 Net interest income 33,147 31,769 Provision for credit losses 2,186 660 Net interest income after provision for credit losses 30,961 31,109 Non-interest income: Service charges 184 155 Grants 275 280 Other 1,293 1,119 Total non-interest income 1,752 1,554 Non-interest expense: Compensation and benefits 18,838 17,562 Occupancy expense 2,037 1,858 Information services 3,011 2,763 Professional services 3,008 3,449 Supervisory costs 687 785 Corporate insurance 271 234 Amortization of core deposit intangible 315 336 Operational loss 100 – Goodwill impairment 25,858 – Other 3,058 2,907 Total non-interest expense 57,183 29,894 (Loss) Income before income taxes ( 24,470 ) 2,769 Income tax expense 338 815 Net (loss) income $ ( 24,808 ) $ 1,954 Less: Net (loss) income attributable to non-controlling interest ( 13 ) 25 Net (loss) income attributable to Broadway Financial Corporation $ ( 24,795 ) $ 1,929 Less: Preferred stock dividends 3,000 1,567 Net (loss) income attributable to common stockholders $ ( 27,795 ) $ 362 Other comprehensive (loss) income, net of tax: Unrealized gains on securities available-for-sale arising during the period $ 7,260 $ 3,232 Income tax effect 2,142 930 Other comprehensive income, net of tax 5,118 2,302 Comprehensive (loss) income $ ( 22,677 ) $ 2,664 (Loss) Earnings per common share-basic $ ( 3.23 ) $ 0.04 (Loss) Earnings per common share-diluted $ ( 3.23 ) $ 0.04 See accompanying notes to consolidated financial statements F-4 Table of Contents BROADWAY FINANCIAL CORPORATION AND SUBSIDIARY Consolidated Statements of Changes in Equity (In thousands, except share and per share) Preferred Stock Non-Voting Common Stock Voting Common Stock Non-Voting Additional Paid-in Capital Accumulated Other Comprehensive Loss (Accumulated Deficit) Retained Earnings Unearned ESOP Shares Treasury Stock Non- Controlling Interest Total Equity Balance at December 31, 2023 $ 150,000 $ 62 $ 31 $ 142,601 $ ( 13,525 ) $ 12,365 $ ( 4,492 ) $ ( 5,326 ) $ 194 $ 281,910 Net income – – – – – 1,929 – – 25 1,954 Release of unearned ESOP shares – 1 – ( 104 ) – – 291 – – 188 Stock-based compensation expense – – – 309 – – – – – 309 Director stock compensation expense – – – 96 – – – – – 96 Dividends declared and paid - Emergency Capital Investment Program (“ECIP”) – – – – – ( 1,567 ) – – – ( 1,567 ) Other comprehensive income, net of tax – – – – 2,302 – – – – 2,302 Balance at December 31, 2024 150,000 63 31 142,902 ( 11,223 ) 12,727 ( 4,201 ) ( 5,326 ) 219 285,192 Net loss – – – – – ( 24,795 ) – – ( 13 ) ( 24,808 ) Release of unearned ESOP shares – – – ( 183 ) – – 332 – – 149 Stock-based compensation expense – 1 – 307 – – – – – 308 Director stock compensation expense – – – 168 – – – – – 168 Dividends declared and paid - ECIP – – – – – ( 3,000 ) – – – ( 3,000 ) City First Bank Fund Manager II Distribution – – – – – ( 170 ) – – – ( 170 ) Other comprehensive income, net of tax – – – – 5,118 – – – – 5,118 Balance at December 31, 2025 $ 150,000 $ 64 $ 31 $ 143,194 $ ( 6,105 ) $ ( 15,238 ) $ ( 3,869 ) $ ( 5,326 ) $ 206 $ 262,957 See accompanying notes to consolidated financial statements. F-5 Table of Contents BROADWAY FINANCIAL CORPORATION AND SUBSIDIARY Consolidated Statements of Cash Flows Years Ended December 31 2025 2024 (In thousands) Cash flows from operating activities: Net (loss) income $ ( 24,808 ) $ 1,954 Adjustments to reconcile net income to net cash provided by operating activities: Provision for credit losses 2,186 660 Depreciation and amortization 410 424 Net change of deferred loan origination costs 531 641 Net accretion of premiums and discounts on available-for-sale securities ( 387 ) ( 807 ) Accretion of purchase accounting marks on loans ( 253 ) ( 424 ) Amortization of core deposit intangible 315 336 Director compensation expense-common stock 168 96 Accretion of premium on FHLB advances – ( 9 ) Stock-based compensation expense 308 309 ESOP compensation expense 149 188 Earnings on bank owned life insurance ( 342 ) ( 46 ) Goodwill impairment 25,858 – Net change in assets and liabilities: Deferred tax assets 27 ( 194 ) Accrued interest receivable ( 998 ) ( 63 ) Other assets ( 4,376 ) 1,412 Accrued expenses and other liabilities 1,442 ( 3,084 ) Net cash provided by operating activities 230 1,393 Cash flows from investing activities: Net change in loans receivable held for investment ( 19,048 ) ( 89,204 ) Principal payments and maturities of available-for-sale securities 105,142 117,127 Purchases of available-for-sale securities ( 150,468 ) – Purchase of FHLB stock ( 16,081 ) ( 13,654 ) Proceeds from redemption of FHLB stock 21,301 14,173 Purchases of bank owned life insurance ( 20,000 ) – Purchase of office properties and equipment ( 243 ) ( 138 ) Net cash (used in) provided by investing activities ( 79,397 ) 28,304 Cash flows from financing activities: Net change in deposits 172,204 62,764 Net change in securities sold under agreements to repurchase 14,163 ( 6,865 ) Repayments of Bank Term Funding Program borrowing – ( 100,000 ) City First Bank Fund Manager II distribution ( 170 ) – Repayment of notes payable – ( 14,000 ) Dividends paid on ECIP preferred stock ( 3,000 ) ( 1,567 ) Proceeds from other borrowings – 2,508 Repayments of other borrowings ( 31,356 ) ( 2,589 ) Proceeds from FHLB advances 955,750 339,000 Repayments of FHLB advances ( 1,079,282 ) ( 352,778 ) Net cash provided by (used in) financing activities 28,309 ( 73,527 ) Net change in cash and cash equivalents ( 50,858 ) ( 43,830 ) Cash and cash equivalents at beginning of the period 61,365 105,195 Cash and cash equivalents at end of the period $ 10,507 $ 61,365 Supplemental disclosures of cash flow information: Cash paid for interest 27,851 30,628 Cash paid for income taxes 325 416 See accompanying notes to consolidated financial statements. F-6 Table of Contents BROADWAY FINANCIAL CORPORATION AND SUBSIDIARY Notes to Consolidated Financial Statements December 31, 2025 and 2024 Note 1 – Summary of Significant Accounting Policies Nature of Operations and Principles of Consolidation Broadway Financial Corporation (the “Company”) was incorporated under Delaware law in 1995 for the purpose of acquiring and holding all of the outstanding capital stock of Broadway Federal Savings and Loan Association as part of the bank’s conversion from a federally chartered mutual savings association to a federally chartered stock savings bank. In connection with the conversion, the bank’s name was changed to Broadway Federal Bank, f.s.b. (“Broadway Federal”). In 1996, the conversion was completed, and Broadway Federal became a wholly‑owned subsidiary of the Company. In 2021, the Company completed its merger with CFBanc Corporation, with the Company continuing as the surviving entity. Immediately following the CFBanc Merger, Broadway Federal merged with and into City First Bank of D.C, National Association with City First Bank of D.C., National Association (the “Bank”) continuing as the surviving entity (combined with Broadway Federal). Concurrently with the Merger, the Bank changed its name to City First Bank, National Association. The Bank’s business is that of a financial intermediary and consists primarily of attracting deposits from the general public and using such deposits, together with borrowings and other funds, to make mortgage loans secured by residential and commercial real estate located in the Bank’s market areas. At December 31, 2025, the Bank operated three retail‑banking offices: Los Angeles and in the nearby city of Inglewood in California, and another in Washington, D.C. The Bank is subject to significant competition from other financial institutions and is also subject to regulation by certain federal agencies and undergoes periodic examinations by those regulatory authorities. The accompanying consolidated financial statements include Broadway Financial Corporation and its wholly owned subsidiary, City First Bank, National Association (together with the Company, “City First Broadway”). Also included in the consolidated financial statements are the following subsidiaries of City First Bank: 1432 U Street LLC, Broadway Service Corporation, City First Real Estate LLC, City First Real Estate II LLC, City First Real Estate III LLC, City First Real Estate IV LLC, and CF New Markets Advisors, LLC (“CFNMA”). In addition, CFNMA also consolidates CFC Fund Manager II, LLC; City First New Markets Fund II, LLC; and City First Capital IX, LLC into its financial results. All significant intercompany balances and transactions have been eliminated in consolidation. Certain amounts in the prior year financial statements have been reclassified to conform to the current year presentation. Such reclassifications had no impact on total equity or net income for any period. Use of Estimates To prepare consolidated financial statements in conformity with U.S. generally accepted accounting principles, management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the consolidated financial statements and the disclosures provided, and actual results could differ from these estimates. The allowance and provision for credit losses, deferred tax asset valuation allowance, and fair values of investment securities and other financial instruments are particularly subject to change. Cash and Cash Equivalents Cash and cash equivalents include cash on hand, cash items in the process of collection, amounts due from correspondent banks and the Federal Reserve Bank of San Francisco (the “Federal Reserve Bank”), and interest‑bearing deposits in other banks with initial terms of ninety days or less. The Company may be required to maintain reserve and clearing balances with the Federal Reserve Bank under the Federal Reserve Act of 1913, as amended. Effective on March 26, 2020, as a part of Federal Reserve Bank’s tools to promote maximum employment, Federal Reserve Bank Board reduced reserve requirement ratios to zero. The reserve and clearing requirement balance were no longer required at December 31, 2025. Net cash flows are reported for customer loan and deposit transactions, interest‑bearing deposits in other banks, notes payable, deferred income taxes and other assets and liabilities. $ 103 thousand of cash and cash equivalents was restricted as of December 31, 2025. Investment Securities Debt securities are classified as held‑to‑maturity and carried at amortized cost when management has the positive intent and ability to hold them to maturity. Debt securities are classified as available‑for‑sale when they might be sold before maturity. Securities available‑for‑sale are carried at fair value, with unrealized holding gains and losses reported in other comprehensive income (loss), net of tax. Interest income includes amortization of purchase premium or discount. Premiums and discounts on securities are amortized on the level‑yield method without anticipating prepayments. Gains and losses on sales are recorded on the trade date and determined using the specific identification method. The Company accounts for the allowance for credit losses (“ACL”) on securities in accordance with Accounting Standards Codification Topic 326 (“ASC 326”) – Financial Instruments-Credit Losses . The ACL on securities is recorded at the time of purchase or acquisition, representing the Company’s best estimate of current expected credit losses (“CECL”) as of the date of the consolidated statements of financial condition. For available-for-sale investment securities, the Company performs a qualitative evaluation for those securities that are in an unrealized loss position to determine if the decline in fair value is credit related or non-credit related. In determining whether a security’s decline in fair value is credit related, the Company considers a number of factors including, but not limited to: (i) the extent to which the fair value of the investment is less than its amortized cost; (ii) the financial condition and near-term prospects of the issuer; (iii) any downgrades in credit ratings; (iv) the payment structure of the security; (v) the ability of the issuer of the security to make scheduled principal and interest payments; and (vi) general market conditions which reflect prospects for the economy as a whole, including interest rates and sector credit spreads. For investment securities where the Company has reason to believe the credit loss exposure is remote, a zero credit loss assumption is applied. Such investment securities typically consist of those guaranteed by the U.S. government or other government enterprises, where there is an explicit or implicit guarantee by the U.S. government, that are highly rated by rating agencies, and historically have had no credit loss experience. If it is determined that the unrealized loss, or a portion thereof, is credit related, the Company records the amount of credit loss through a charge to the provision for credit losses in current period earnings. However, the amount of credit loss recorded in current period earnings is limited to the amount of the total unrealized loss on the security, which is measured as the amount by which the security’s fair value is below its amortized cost. If the Company intends to sell a security that is in an unrealized loss position, or if it is more likely than not the Company will be required to sell a security in an unrealized loss position, the total amount of the unrealized loss is recognized in current period earnings through the provision for credit losses. Unrealized losses deemed non-credit related are recorded, net of tax, in accumulated other comprehensive income (loss). The Company analyzed available-for-sale investment securities that were in an unrealized loss position and determined the decline in fair value for those securities was not related to credit, but rather related to changes in interest rates and general market conditions. As such, no ACL was recorded for available-for-sale securities as of December 31, 2025 and 2024. F-7 Table of Contents Loans Receivable Held for Investment Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal balance outstanding, net of allowance for credit losses, deferred loan fees and costs and unamortized premiums and discounts. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct loan origination costs, premiums and discounts are deferred, and recognized in income using the level‑yield method without anticipating prepayments. Interest income on all loans is discontinued at the time the loan is 90 days delinquent unless the loan is well‑secured and in process of collection. Past due status is based on the contractual terms of the loan. In all cases, loans are placed on non‑accrual or charged‑off at an earlier date if collection of principal or interest is considered doubtful. All interest accrued but not received for loans placed on non‑accrual is reversed against interest income. Interest received on such loans is accounted for on the cash‑basis or cost recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Concentration of Credit Risk Concentrations of credit risk arise when several customers are engaged in similar business activities, or activities in the same geographic region, or have similar economic features that would cause their ability to meet contractual obligations to be similarly affected by changes in economic conditions. The Company’s lending activities are predominantly in real estate loans that are secured by properties located in Southern California and in Washington, D.C. and surrounding areas, and many of the borrowers reside in those areas. Therefore, the Company’s exposure to credit risk is significantly affected by changes in the economy and real estate market in the markets in which the Company operates. Allowance for Credit Losses - Loans The Company accounts for credit losses on loans in accordance with ASC 326, which requires the Company to record an estimate of expected lifetime credit losses for loans at the time of origination or acquisition. The ACL is maintained at a level deemed appropriate by management to provide for expected credit losses in the portfolio as of the date of the consolidated statements of financial condition. Estimating expected credit losses requires management to use relevant forward-looking information, including the use of reasonable and supportable forecasts. The measurement of the ACL is performed by collectively evaluating loans with similar risk characteristics. The Company measures the ACL for each of its loan segments using the weighted-average remaining maturity (“WARM”) method. The weighted average remaining life, including the effect of estimated prepayments, is calculated for each loan pool on a quarterly basis. The Company then estimates a loss rate for each pool using both its own historical loss experience and the historical losses of a group of peer institutions during the period from 2004 through the most recent quarter. The Company’s ACL model also includes adjustments for qualitative factors, where appropriate. Since historical information (such as historical net losses) may not always, by itself, provide a sufficient basis for determining future expected credit losses, the Company periodically considers the need for qualitative adjustments to the ACL. Qualitative adjustments may include, but are not limited to factors such as: (i) changes in lending policies and procedures, including changes in underwriting standards and collections, charge offs, and recovery practices; (ii) changes in international, national, regional, and local conditions; (iii) changes in the nature and volume of the portfolio and terms of loans; (iv) changes in the experience, depth, and ability of lending management; (v) changes in the volume and severity of past due loans and other similar conditions; (vi) changes in the quality of the organization’s loan review system; (vii) changes in the value of underlying collateral for collateral dependent loans; (viii) the existence and effect of any concentrations of credit and changes in the levels of such concentrations; and (ix) the effect of other external factors (i.e., competition, legal and regulatory requirements) on the level of estimated credit losses. The Company has a credit portfolio review process designed to detect problem loans. Problem loans are typically those of a substandard or worse internal risk grade, and may consist of loans on nonaccrual status, loans that have recently been modified in response to a borrower’s deteriorating financial condition, loans where the likelihood of foreclosure on underlying collateral has increased, collateral dependent loans, and other loans where concern or doubt over the ultimate collectability of all contractual amounts due has become elevated. Such loans may, in the opinion of management, be deemed to no longer possess risk characteristics similar to other loans in the loan portfolio, because the specific attributes and risks associated with the loan have likely become unique as the credit quality of the loan deteriorates. As such, these loans may require individual evaluation to determine an appropriate ACL for the loan. When a loan is individually evaluated, the Company typically measures the expected credit loss for the loan based on a discounted cash flow approach, unless the loan has been deemed collateral dependent. Collateral dependent loans are loans where the repayment of the loan is expected to come from the operation of and/or eventual liquidation of the underlying collateral. The ACL for collateral dependent loans is determined using estimates of the fair value of the underlying collateral, less estimated selling costs. F-8 Table of Contents The estimation of the appropriate level of the ACL requires significant judgment by management. Although management uses the best information available to make these estimates, future adjustments to the ACL may be necessary due to economic, operating, regulatory, and other conditions that may extend beyond the Company’s control. Changes in management’s estimates of forecasted net losses could materially change the level of the ACL. Additionally, various regulatory agencies, as an integral part of their examination process, periodically review the Company’s ACL and credit review process. Such agencies may require the Company to recognize additions to the ACL based on judgments different from those of management. The Company has segmented the loan portfolio according to loans that share similar attributes and risk characteristics. Each segment possesses varying degrees of risk based on, among other things, the type of loan, the type of collateral, and the sensitivity of the borrower or industry to changes in external factors such as economic conditions. The Company determines the ACL for loans based on this more detailed loan segmentation and classification. These segments, and the risks associated with each segment, are as follows: Real Estate: Single-Family – Subject to adverse employment conditions in the local economy leading to increased default rate, decreased market values from oversupply in a geographic area and incremental rate increases on adjustable-rate mortgages which may impact the ability of borrowers to maintain payments. Real Estate: Multi‑Family – Subject to adverse various market conditions that cause a decrease in market value or lease rates, changes in personal funding sources for tenants, oversupply of units in a specific region, population shifts and reputational risks. Real Estate: Commercial Real Estate – Subject to adverse conditions in the local economy which may lead to reduced cash flows due to vacancies and reduced rental rates and decreases in the value of underlying collateral. Real Estate: Church – Subject to adverse economic and employment conditions, which may lead to reduced cash flows from members’ donations and offerings, and the stability, quality, and popularity of church leadership. Real Estate: Construction – Subject to adverse conditions in the local economy, which may lead to reduced demand for new commercial, multi‑family, or single-family buildings or reduced lease or sale opportunities once the building is complete. Commercial – Subject to industry and economic conditions including decreases in product demand. Consumer – Subject to adverse employment conditions in the local economy, which may lead to higher default rates. SBA – Subject to Federal legislation that can affect the funding and availability of the program. Modified Loans to Borrowers Experiencing Financial Difficulty In certain instances, the Company makes modifications to loans in order to alleviate temporary difficulties in the borrower’s financial condition and/or constraints on the borrower’s ability to repay the loan, and to minimize potential losses to the Company. Modifications include: changes in the amortization terms of the loan, reductions in interest rates, acceptance of interest only payments, and reductions to the outstanding loan balance (or any combination of such changes). Such loans are typically placed on nonaccrual status when there is doubt concerning the full repayment of principal and interest or the loan has been in default for a period of 90 days or more. Such loans may be returned to accrual status when all contractual amounts past due have been brought current, and the borrower’s performance under the modified terms of the loan agreement and the ultimate collectability of all contractual amounts due under the modified terms is no longer in doubt. The Company typically measures the ACL on these loans on an individual basis as the loans are deemed to no longer have risk characteristics that are similar to other loans in the portfolio. The determination of the ACL for these loans is based on the remaining life approach, unless the loan is deemed collateral dependent, which requires measurement of the ACL based on the estimated expected fair value of the underlying collateral, less selling costs. Derivatives At the inception of a derivative contract, the Company designates the derivative as one of three types based on the Company’s intentions and belief as to likely effectiveness as a hedge. These three types are (1) a hedge of the fair value of a recognized asset or liability or of an unrecognized firm commitment, (2) a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability, or (3) an instrument with no hedging designation (“non-designated derivative”). The Company has designated its derivatives as non-designated derivatives. Changes in the fair value of derivatives not designated are currently reported in earnings, as non-interest income. The Company is exposed to losses if a counterparty fails to make its payments under a contract in which the Company is in the net receiving position. The Company anticipates that the counterparties will be able to fully satisfy their obligations under the agreements. All of the contracts to which the Company is a party settle monthly. In addition, the Company obtains collateral above certain thresholds of the fair value of its derivatives for each dealer counterparty based upon their credit standing and the Company has netting agreements with the dealers with which it does business. Goodwill and Other Intangible Assets Goodwill is recorded upon completion of a business combination as the difference between the purchase price and the fair value of net identifiable assets acquired. Subsequent to initial recognition, the Company tests goodwill for impairment annually as of September 30th, or more often if events or circumstances, such as adverse changes in the business climate indicate there may be impairment. A goodwill impairment test is performed by comparing the fair value of the reporting unit with its carrying value. An impairment charge is recorded for the amount by which the carrying amount exceeds the reporting unit’s fair value. For goodwill considerations the Company is a single reporting unit. A weighted average of both the market and income approaches is used in valuing the reporting unit’s fair value. Weightings are assigned to the approaches regarding fair value and the sensitivity of other weighting scenarios is considered. The market approach incorporates comparable public company information, valuation multiples and consideration of a market control premium along with data related to comparable observed purchase transactions in the financial services industry. The income approach consists of discounting projected future cash flows, which are derived from internal forecasts and economic expectations for the reporting unit. The significant inputs and assumptions for the income approach include projected earnings of the Company in future years for which there is inherent uncertainty and the discount rate. The sensitivity of a range of reasonable discount rates based on the current economic environment is considered. The Company engaged a third-party valuation specialist to perform its annual goodwill impairment test as of September 30, 2025. Based on the quantitative assessment, the fair value of the reporting unit was less than its carrying amount, resulting in a full impairment of goodwill. On October 15, 2025, management, with oversight from the Audit Committee of the Board of Directors, concluded that the Company’s goodwill was fully impaired. Accordingly, the Company recorded a non-cash goodwill impairment charge of $ 25.9 million for the quarter ended September 30, 2025. Core deposit intangible assets arising from mergers and acquisitions are amortized on an accelerated basis reflecting the pattern in which the economic benefits of the intangible asset are consumed or otherwise used up. The estimated life of the core deposit intangible is approximately 10 years. F-9 Table of Contents Office Properties and Equipment Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation. Buildings and related components are depreciated using the straight‑line method with useful lives ranging from 10 to 40 years. Furniture, fixtures, and equipment are depreciated using the straight‑line method with useful lives ranging from 3 to 10 years. Leasehold improvements are amortized over the lease term or the estimated useful life of the asset, whichever is shorter. Federal Home Loan Bank (FHLB) and Federal Reserve Bank (FRB) stock The Bank is a member of the FHLB and FRB systems. Members are required to own a certain amount of stock based on the level of borrowings and other factors, and may invest in additional amounts. FHLB and FRB stock are carried at cost, classified as restricted securities, and periodically evaluated for impairment based on ultimate recovery of their par value. Both cash and stock dividends are reported as income when declared. Bank‑Owned Life Insurance The Bank has purchased life insurance policies on key executives and officers. Bank owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement. Investment in Affordable Housing Limited Partnership The Bank owns a less than 5 % interest in an affordable housing limited partnership. The investment is recorded using the cost method and is being amortized over the life of the related tax credits. The tax credits are being recognized in income tax expense in the consolidated financial statements to the extent they are utilized on the Company’s income tax returns. The investment is reviewed for impairment on an annual basis or on an interim basis if an event occurs that would trigger potential impairment. Loan Commitments and Related Financial Instruments Financial instruments include off‑balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded. Variable Interest Entities (“VIE”) An entity is considered to be a VIE when it does not have sufficient equity investment at risk, the equity investors as a group lack the characteristics of a controlling financial interest, or the entity is structured with disproportionate voting rights and substantially all of the entity’s activities are conducted on behalf of an investor with disproportionately few voting rights. The Company is required to consolidate a VIE when it holds a variable interest in the VIE and is also the primary beneficiary of the VIE. Noncontrolling Interests For consolidated subsidiaries that are less than wholly-owned, the third-party holdings of equity interests are referred to as noncontrolling interests. The portion of net income attributable to noncontrolling interests for such subsidiaries is presented as net income applicable to noncontrolling interests on the consolidated statements of operations and comprehensive income, and the portion of the equity of such subsidiaries is presented as noncontrolling interests on the consolidated statements of financial condition and consolidated statements of changes in equity. Revenue Recognition ASC 606, Revenue from Contracts with Customers (“ASC 606”) establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity’s contracts to provide goods or services to customers. The core principle of this standard requires the Company to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied. Most of our revenue‑generating transactions are not subject to ASC 606, including revenue generated from financial instruments, such as our loans and investment securities, as these activities are subject to other GAAP discussed elsewhere within our disclosures. The Company’s revenue stream that is within the scope of Topic 606 is primarily service charges on deposit accounts, which consist of monthly service fees, check orders, and other deposit account related fees. The Company’s performance obligation for monthly service fees is generally satisfied, and the related revenue recognized, over the period in which the service is provided. Check orders and other deposit account related fees are largely transaction based, and therefore, the Company’s performance obligation is satisfied, and related revenue recognized, at a point in time. Payment for service charges on deposit accounts is primarily received immediately or in the following month through a direct charge to customers’ accounts. F-10 Table of Contents Stock‑Based Compensation Compensation cost is recognized for stock options and restricted stock awards issued to employees and directors, based on the fair value of these awards at the date of grant. A Black‑Scholes model is utilized to estimate the fair value of stock options, while the market price of the Company’s common stock at the date of grant is used for restricted stock awards. Compensation cost is recognized over the required service period, generally defined as the vesting period. Compensation cost is recognized on a straight‑line basis over the requisite service period for the entire award. The Company’s accounting policy is to recognize forfeitures as they occur. Income Taxes Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax bases of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company recognizes interest related to income tax matters in interest expense and penalties related to tax matters in income tax expense. Retirement Plans Employee 401(k) expense is the amount of matching contributions made by the Company. Employee Stock Ownership Plan (ESOP) The cost of shares issued to the ESOP, but not yet allocated to participants, is shown as a reduction of equity. Compensation expense is based on the market price of shares as they are committed to be released to participant accounts. Dividends on allocated ESOP shares reduce retained earnings; dividends on unearned ESOP shares reduce debt and accrued interest. Earnings Per Common Share Basic earnings per share of common stock is computed pursuant to the two‑class method by dividing net income available to common stockholders less dividends paid on participating securities (unvested shares of restricted common stock) and any undistributed earnings attributable to participating securities by the weighted average common shares outstanding during the period. The weighted average common shares outstanding includes the weighted average number of shares of common stock outstanding less the weighted average number of unvested shares of restricted common stock. ESOP shares are considered outstanding for this calculation unless unearned. Diluted earnings per share of common stock includes the dilutive effect of unvested stock awards. It also includes the dilutive effect of additional potential common shares issuable under stock options using the treasury method. Comprehensive Income Comprehensive income consists of the net income from operations and other comprehensive income. Other comprehensive income includes unrealized gains and losses on securities available‑for‑sale, net of tax, which are also recognized as separate components of equity. Loss Contingencies Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable, and an amount or range of loss can be reasonably estimated. Management does not believe that any such matters existed as of the balance sheet date that will have a material effect on the consolidated financial statements. L eases The Company determines if an arrangement is a lease at inception. Operating lease right-of-use (“ROU”) assets and operating lease liabilities are included in the Company’s consolidated financial statements. ROU assets represent the Company’s right-of-use of an underlying asset for the lease term, and lease liabilities represent the Company’s obligation to make lease payments pursuant to the Company’s leases. The ROU assets and liabilities are recognized at commencement of the lease based on the present value of lease payments over the lease term. To determine the present value of lease payments, the Company uses its incremental borrowing rate. The lease term may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense is recognized on a straight-line basis over the lease term. F-11 Table of Contents Fair Value Measurements Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values: Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2: Significant observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3: Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. Fair values are estimated using relevant market information and other assumptions, as more fully disclosed in Note 9 “Fair Value.” Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect the estimates. Operating Segments The Company operates one reportable segment — banking. The Company’s chief executive officer is its chief operating decision maker (“CODM”). The CODM assesses operating performance and manages the allocation of resources primarily based on the Company’s consolidated operating results and financial condition. The factors considered in making this determination include all of the banking products and services offered by the Company are available in each branch of the Company, management does not allocate resources based on the performance of different lending or transaction activities, and how information is reviewed by the chief executive officer and other key decision makers. The CODM uses consolidated net income to benchmark the Company against its competitors and to monitor budget to actual results. As a result, the Company determined that all services offered relate to banking. Loans, investments, and deposits provide the revenues in the banking operation. Interest expense, provisions for credit losses and payroll provide the significant expenses in the banking operation. See the Company’s operating segment information in the consolidated statements of financial condition and the consolidated statements of operations and comprehensive income. Transfers and Servicing To be eligible for sale accounting treatment, an entire financial asset, such as a loan, cannot be divided into components prior to the sale unless all of the components meet the definition of a participating interest. A participating interest has all of the following characteristics: (a) it represents a proportionate ownership interest in the entire financial asset; (b) from the date of transfer, all cash flows received from the entire asset are divided proportionately among the participating interest holders in an amount equal to their ownership percentage; (c) the priority of cash flows must be pari passu and no participating interest holder has any recourse to the other holders; and (d) no party can pledge or exchange the entire financial asset unless all participating interest holders agree. Transfers of financial assets (or participating interests in financial assets) are accounted for as sales when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. The Company evaluates its loan sales and other financial asset transfers for sales treatment. To the extent the transfer of assets (or participating interests in those assets) qualifies as a sale for accounting purposes, the Company derecognizes the asset and records the gain or loss on the sale date. In the event the Company determines that the transfer of assets does not qualify as a sale (or the portion of the asset sold does not qualify as a participating interest), the transfer is treated as a secured borrowing for accounting purposes until such date that the qualifications for sale accounting treatment are met. Accounting Pronouncements Recently Issued In November of 2025, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2025-08 – Financial Instruments-Credit Losses (Topic 326): Purchased Loans. The amendments in this ASC expand the population of acquired financial assets subject to the “gross-up” approach in Accounting Standards Codification (“ASC”) Topic 326. In accordance with this ASC, loans (excluding credit card loans) acquired without evidence of credit deterioration since their origination that are deemed to be “seasoned” (as defined in the Codification) are determined to be “purchased seasoned loans” and are to be accounted for using the gross-up approach at acquisition. Prior to this ASU, for loans that were not determined to be purchased credit deteriorated loans, GAAP required that an allowance for credit losses be established for purchased loans through a provision for credit losses at the acquisition date. The gross-up approach allows an entity to record the acquisition-date allowance for credit losses for purchased seasoned loans through an offsetting addition to the amortized cost basis of the loan (rather than through the provision for credit losses). The ASU does not impact the accounting for loans that were acquired in periods prior to adoption of the ASU. The amendments in ASU 2025-08 will become effective for the Company in the first quarter of 2027; early adoption is permitted. The amendments in the ASU will not affect the Company’s accounting for loans in its portfolio on the date of adoption; however, loans acquired after the adoption date will be accounted for in accordance with the provisions of this ASU. In December of 2025, the FASB issued ASU 2025-10 – Governments Grants (Topic 832): Accounting for Government Grants Received by Business Entities. Prior to the issuance of this ASU, GAAP did not provide authoritative guidance about the recognition, measurement, and presentation of a grant received by a business entity from a government. The amendments in this ASU establish the accounting for a government grant received by a business entity, including guidance for (1) a grant related to an asset and (2) a grant related to income. The newly issued guidance requires that a government grant received by a business entity should not be recognized until: (1) it is probable that a business entity will comply with the conditions attached to the grant and that the grant will be received; and (2) a business entity meets the recognition guidance for a grant related to an asset or a grant related to income. The ASU also prescribes requirements for the subsequent income recognition, presentation matters, and financial statement disclosures related to government grants. The guidance in this ASU will be effective for the Company beginning on January 1, 2029. Early adoption is permitted. The requirements in this ASU are similar to the guidance that the Company has been applying for accounting for government grants by analogy to guidance issued by other accounting standard setters and authoritative bodies. The Company does not expect that the adoption of this guidance will materially impact its financial condition or results of operations. In December of 2025, the FASB issued ASU 2025-11 – Interim Reporting (Topic 270): Narrow-Scope Improvements. The amendments in this guidance clarify interim disclosure requirements and the applicability of ASC 270 by providing a comprehensive list of interim period disclosures that are required by GAAP. The updates in ASU 2025-11 also include a disclosure principal that requires entities to disclose events since the end of the last annual reporting period that have a material impact on the entity. The amendments in ASU 2025-11 will become effective for the Company for interim reporting periods beginning in the first quarter of 2028. Early adoption is permitted. The amendments in this ASU are not expected to have a material effect on the Company’s financial position or results of operations; however, the required disclosures will be added to the Company’s interim financial statements issued after the effective date. F-12 Table of Contents Note 2 – Capital Series C, Senior Non-Cumulative Perpetual Preferred Stock On June 7, 2022, the Company issued 150,000 shares of Series C Preferred Stock with a liquidation preference of $ 1,000 per share for the capital investment of $ 150 million from the U.S. Treasury under the Emergency Capital Investment Program (“ECIP”). The Series C Preferred Stock accrued no dividend for the first 24 months following the investment date. Thereafter, the dividend rate will be adjusted based on the qualified lending growth criteria listed in the terms of the ECIP investment with the annual dividend rate up to 2 %. After the tenth anniversary of the investment date, the dividend rate will be fixed based on the average annual amount of lending in years 2 through 10 . Dividends are payable quarterly in arrears on March 15, June 15, September 15, and December 15. Established by the Consolidated Appropriations Act, 2021, the ECIP was created to encourage low- and moderate-income community financial institutions and minority depository institutions to provide loans, grants, and forbearance for small businesses, minority-owned businesses, and consumers, especially low-income and underserved communities, including persistent poverty counties, that may be disproportionately impacted by the economic effect of the COVID-19 pandemic by providing direct and indirect capital investments in low- and moderate-income community financial institutions. The Series C Preferred Stock may be redeemed at the option of the Company on or after the fifth anniversary of issuance (or earlier in the event of loss of regulatory capital treatment), subject to the approval of the appropriate federal banking regulator and in accordance with the federal banking agencies’ regulatory capital regulations. On January 14, 2025, the Company entered into a Securities Purchase Option Agreement (the “Option Agreement”) with the U.S. Treasury, which grants the Company the conditional option to repurchase the Series C Preferred Stock during the first 15 years following the Company’s issuance of the Preferred Stock. The purchase price for the Series C Preferred Stock under the Option Agreement is based on a formula approximate to the fair value of the Series C Preferred Stock as of the date the Option Agreement is executed , calculated as set forth in the Option Agreement, together with any accrued and unpaid dividends thereon and could represent a discount from the Preferred Stock’s liquidation amount. The purchase option may not be exercised during the first 10 years following the Company’s sale of the Series C Preferred Stock (“ECIP Period”) unless and until the Company meets at least one of the following three conditions (the “Threshold Conditions”): (1) an average of at least 60 % of the Company’s loan originations qualify as “Deep Impact Lending” over any 16 consecutive quarters, (2) an average of at least 85 % of the Company’s “total originations qualify as “Qualified Lending” over any 24 quarters or (3) the Series C Preferred Stock has a dividend rate of no more than 0.5 % at each of six consecutive “Reset Dates,” in each case as defined in the Option Agreement and the terms of the Series C Preferred Stock. In addition to satisfying a Threshold Condition, the Option Agreement requires that the Company meet certain other eligibility conditions in order to exercise the purchase option in the future, including compliance with the terms of the original ECIP purchase agreement and the terms of the Series C Preferred Stock, maintaining qualification as either a certified community development financial institution or a minority depository institution and satisfying other legal and regulatory criteria. The Company may designate a mission aligned nonprofit affiliate as the purchaser of the Series C Preferred Stock under the terms of the Option Agreement. The earliest possible date by which a Threshold Condition may be met is June 30, 2028, which is the end of the sixteenth consecutive quarter following the Original Closing Date. However, the Company does not currently meet any of the Threshold Conditions to exercise the purchase option, and there can be no assurance if and when the Threshold Conditions will be met. In addition to the requirement that a Threshold Condition be met, the Repurchase Agreement requires that the Company meet certain other eligibility conditions in order to exercise the purchase option in the future, including compliance with the terms of the original ECIP purchase agreement and the terms of the Preferred Stock, maintaining qualification as either a CDFI or an MDI, and meeting other legal and regulatory criteria. Although the Company currently meets the general eligibility criteria, other than satisfying one of the Threshold Conditions, there can be no assurance that the Company will meet such criteria in the future. The Company was required to begin paying quarterly dividends on the Series C Preferred Stock in the three month period ended June 30, 2024. Dividends on the Series C Preferred Stock totaled $ 3.0 million and $ 1.6 million for the years ended December 31, 2025 and 2024, respectively, with a dividend rate of 2.0 %. F-13 Table of Contents Note 3 – Securities The following table summarizes the amortized cost and fair value of the available‑for‑sale investment securities portfolios at December 31, 2025 and December 31, 2024 and the corresponding amounts of unrealized gains (losses) which are recognized in accumulated other comprehensive income (loss): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) December 31, 2025: Federal agency mortgage-backed securities $ 120,372 $ 1,109 $ ( 7,051 ) $ 114,430 Federal agency Collateralized Mortgage Obligations (CMOs) 69,742 367 ( 652 ) 69,457 Federal agency debt 29,259 – ( 846 ) 28,413 Municipal bonds 4,766 – ( 244 ) 4,522 U. S. Treasuries 4,993 – ( 6 ) 4,987 SBA pools 9,387 3 ( 1,115 ) 8,275 Asset-backed securities 9,352 3 ( 86 ) 9,269 Corporate bonds 17,500 57 ( 75 ) 17,482 Total available-for-sale securities $ 265,371 $ 1,539 $ ( 10,075 ) $ 256,835 December 31, 2024: Federal agency mortgage-backed securities $ 62,853 $ 8 $ ( 9,832 ) $ 53,029 Federal agency CMOs 21,299 6 ( 1,247 ) 20,058 Federal agency debt 42,100 2 ( 2,068 ) 40,034 Municipal bonds 4,800 – ( 412 ) 4,388 U. S. Treasuries 77,857 – ( 667 ) 77,190 SBA pools 10,749 2 ( 1,588 ) 9,163 Total available-for-sale securities $ 219,658 $ 18 $ ( 15,814 ) $ 203,862 There were no sales of securities during the years ended December 31, 2025 or 2024. The amortized cost and estimated fair value of all investment securities available-for-sale at December 31, 2025, by contractual maturities, are shown below. Contractual maturities may differ from expected maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) Due in one year or less $ 11,863 $ – $ ( 47 ) $ 11,816 Due after one year through five years 28,280 4 ( 1,049 ) 27,235 Due after five years through ten years 32,230 52 ( 741 ) 31,541 Due after ten years 192,998 1,483 ( 8,238 ) 186,243 $ 265,371 $ 1,539 $ ( 10,075 ) $ 256,835 The table below indicates the length of time individual securities have been in a continuous unrealized loss position: Less than 12 Months 12 Months or Longer Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses December 31, 2025: (In thousands) Federal agency mortgage-backed securities $ 7,197 $ ( 26 ) $ 47,717 $ ( 7,025 ) $ 54,914 $ ( 7,051 ) Federal agency CMOs 1,488 ( 2 ) 14,804 ( 650 ) 16,292 ( 652 ) Federal agency debt 2,512 ( 3 ) 25,901 ( 843 ) 28,413 ( 846 ) Municipal bonds – – 4,522 ( 244 ) 4,522 ( 244 ) U. S. Treasuries – – 4,987 ( 6 ) 4,987 ( 6 ) SBA pools 185 ( 1 ) 7,621 ( 1,114 ) 7,806 ( 1,115 ) Asset-backed securities 7,208 ( 86 ) – – 7,208 ( 86 ) Corporate bonds 7,425 ( 75 ) – – 7,425 ( 75 ) Total $ 26,015 $ ( 193 ) $ 105,552 $ ( 9,882 ) $ 131,567 $ ( 10,075 ) December 31, 2024: Federal agency mortgage-backed securities $ – $ – $ 52,568 $ ( 9,832 ) $ 52,568 $ ( 9,832 ) Federal agency CMOs – – 19,303 ( 1,247 ) 19,303 ( 1,247 ) Federal agency debt – – 37,508 ( 2,068 ) 37,508 ( 2,068 ) Municipal bonds – – 4,388 ( 412 ) 4,388 ( 412 ) U. S. Treasuries – – 77,190 ( 667 ) 77,190 ( 667 ) SBA pools 629 ( 1 ) 8,179 ( 1,587 ) 8,808 ( 1,588 ) Total $ 629 $ ( 1 ) $ 199,136 $ ( 15,813 ) $ 199,765 $ ( 15,814 ) Securities with a market value of $ 83.7 million were pledged as collateral for securities sold under agreements to repurchase as of December 31, 2025 and included $ 67.9 million of federal agency mortgage-backed securities, $ 9.3 million of federal agency debt, $ 5.0 million of U.S. Treasuries, and $ 1.5 million of SBA pools. Securities with a market value of $ 7.7 million were pledged as collateral for D.C. Housing, securities with a market value of $ 4.2 million were pledged as collateral for D.C. Government, and securities with a market value of $ 157 thousand were pledged as collateral for FRB discount window . Securities with a market value of $ 83.3 million were pledged as collateral for securities sold under agreements to repurchase as of December 31, 2024 and included $ 46.5 million of U.S. Treasuries, $ 27.1 million of federal agency debt, $ 5.5 million of federal agency mortgage-backed securities, and $ 4.2 million of SBA pools. At December 31, 2025 and 2024, there were no securities pledged to secure public deposits since those public deposits are under $250 thousand which are fully insured by FDIC. At December 31, 2025 and 2024, there were no holdings of securities by any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of equity. Accrued interest receivable on securities was $ 745 thousand and $ 796 thousand at December 31, 2025 and 2024, respectively, and is included in the consolidated statements of financial condition in accrued interest receivable . At December 31, 2025 and 2024, there were no securities in nonaccrual status. All securities in the portfolio were current with their contractual principal and interest payments. At December 31, 2025 and 2024, there were no securities purchased with deterioration in credit quality since their origination, and there were no collateral dependent securities. F-14 Table of Contents Note 4 – Loans Receivable Held for Investment Loans receivable held for investment were as follows as of the periods indicated: December 31, 2025 December 31, 2024 (In thousands) Real estate: Single-family $ 20,607 $ 24,036 Multi-family 593,187 639,156 Commercial real estate 162,618 163,348 Church 9,015 9,470 Construction 72,979 91,600 Commercial – other 140,019 77,787 SBA loans 17,067 1,142 Consumer 38 13 Gross loans receivable before deferred loan costs and premiums 1,015,530 1,006,552 Unamortized net deferred loan costs and premiums 10,529 2,116 1,026,059 1,008,668 Credit and interest marks on purchased loans, net ( 95 ) ( 348 ) Allowance for credit losses ( 9,424 ) ( 8,364 ) Loans receivable, net $ 1,016,540 $ 999,956 The following tables summarize the activity in the allowance for credit losses on loans for the periods indicated: For the Year Ended December 31, 2025 Beginning Balance Charge-offs Recoveries Provision (Recapture) Ending Balance (In thousands) Real estate: Single-family $ 200 $ – $ – $ ( 68 ) $ 132 Multi-family 4,617 ( 1,143 ) – 1,308 4,782 Commercial real estate 1,188 – – 5 1,193 Church 54 – – ( 18 ) 36 Construction 1,564 – – 475 2,039 Commercial - other 730 – – 170 900 SBA loans 11 ( 36 ) – 367 342 Consumer – – – – – Total $ 8,364 $ ( 1,179 ) $ – $ 2,239 $ 9,424 For the Year Ended December 31, 2024 Beginning Balance Impact of CECL Adoption Charge-offs Recoveries Provision (Recapture) Ending Balance (In thousands) Real estate: Single-family $ 264 $ – $ – $ – $ ( 64 ) $ 200 Multi-family 4,464 – – – 153 4,617 Commercial real estate 1,164 – – – 24 1,188 Church 72 – – – ( 18 ) 54 Construction 1,009 – – – 555 1,564 Commercial - other 592 – – – 138 730 SBA loans 48 – – – ( 37 ) 11 Consumer – – – – – – Total $ 7,613 $ – $ – $ – $ 751 $ 8,364 The Company also recorded a recovery of provision for off-balance sheet loan commitments of $ 53 thousand and $ 91 thousand for the years ended December 31, 2025 and 2024, respectively. The ACL increased to $ 9.4 million as of December 31, 2025, compared to $ 8.4 million as of December 31, 2024, primarily due to an increase in specific reserves on collateral dependent loans. The Company evaluates loans collectively for purposes of determining the ACL. Collective evaluation is based on aggregating loans deemed to possess similar risk characteristics. In certain instances, the Company may identify loans that it believes no longer possess risk characteristics similar to other loans in the loan portfolio. These loans are typically identified from those that have exhibited deterioration in credit quality, since the specific attributes and risks associated with such loans tend to become unique as the credit deteriorates. Such loans are typically nonperforming, downgraded to substandard or worse, and/or are deemed collateral dependent, where the ultimate repayment of the loan is expected to come from the operation of or eventual sale of the collateral. Loans that are deemed by management to no longer possess risk characteristics similar to other loans in the portfolio, or that have been identified as collateral dependent, are evaluated individually for purposes of determining an appropriate lifetime ACL. The Company uses the remaining life approach, using the loan’s effective interest rate, for determining the ACL on individually evaluated loans, unless the loan is deemed collateral dependent, which requires evaluation based on the estimated fair value of the underlying collateral, less estimated selling costs. The Company may increase or decrease the ACL for collateral dependent loans based on changes in the estimated fair value of the collateral. F-15 Table of Contents The following tables present collateral dependent loans by collateral type as of the date indicated: December 31, 2025 Single-Family Multi-Family Residential Church Business Assets Total Real estate: (In thousands) Single-family 424 – – – 424 Multi-family – 2,094 – – 2,094 Construction – 8,168 – – 8,168 Commercial – other – – – 261 261 Total $ 424 $ 10,262 $ – $ 261 $ 10,947 December 31, 2024 Single-Family Multi-Family Residential Church Business Assets Total Real estate: (In thousands) Commercial – other 264 – – – 264 Total $ 264 $ – $ – $ – $ 264 At December 31, 2025, $ 10.9 million of individually evaluated loans were evaluated based on the estimated fair value of the underlying collateral. These loans had an associated ACL of $ 1.1 million as of December 31, 2025. All of these collateral dependent loans were on nonaccrual status at December 31, 2025. At December 31, 2024, one $ 264 thousand individually evaluated loan was evaluated based on the estimated fair value of the underlying collateral. This loan had no associated ACL as of December 31, 2024 and was on nonaccrual status. Past Due Loans The following tables present the aging of the recorded investment in past due loans by loan type as of the dates indicated: December 31, 2025 30‑59 Days Past Due 60‑89 Days Past Due Greater than 90 Days Past Due Total Past Due Current Total (In thousands) Loans receivable held for investment: Real estate: Single-family $ 133 $ – $ 424 $ 557 $ 20,070 $ 20,627 Multi-family 6,162 – 2,094 8,256 587,535 595,791 Commercial real estate – – – – 162,445 162,445 Church – – – – 9,024 9,024 Construction 5,533 – – 5,533 67,139 72,672 Commercial - other – 367 261 628 146,366 146,994 SBA loans – – 222 222 18,246 18,468 Consumer – – – – 38 38 Total $ 11,828 $ 367 $ 3,001 $ 15,196 $ 1,010,863 $ 1,026,059 December 31, 2024 30‑59 Days Past Due 60‑89 Days Past Due Greater than 90 Days Past Due Total Past Due Current Total (In thousands) Loans receivable held for investment: Real estate: Single-family $ – $ 6 $ – $ 6 $ 24,042 $ 24,048 Multi-family – – – – 642,109 642,109 Commercial real estate – – – – 163,269 163,269 Church – – – – 9,475 9,475 Construction – – – – 91,140 91,140 Commercial - other – – – – 77,472 77,472 SBA loans – 264 – 264 878 1,142 Consumer – – – – 13 13 Total $ – $ 270 $ – $ 270 $ 1,008,398 $ 1,008,668 The following tables present the recorded investment in non‑accrual loans by loan type as of the period indicated: December 31, 2025 Nonaccrual with no Allowance for Credit Losses Nonaccrual with an Allowance for Credit Losses Total Nonaccrual Loans Loans receivable held for investment: (In thousands) Real Estate: Single-family $ 424 $ – $ 424 Multi-family 2,094 – 2,094 Construction – 8,168 8,168 Commercial - other 261 – 261 SBA loans – 222 222 Total non-accrual loans $ 2,779 $ 8,390 $ 11,169 F-16 Table of Contents December 31, 2024 Nonaccrual with no Allowance for Credit Losses Nonaccrual with an Allowance for Credit Losses Total Nonaccrual Loans Loans receivable held for investment: (In thousands) SBA loans $ 264 $ – $ 264 Total non-accrual loans $ 264 $ – $ 264 The Company recognized $ 82 thousand of interest income on nonaccrual loans during the year ended December 31,2025. There were no loans 90 days or more delinquent that were accruing interest as of December 31, 2025 or December 31, 2024. Modified Loans to Troubled Borrowers GAAP requires that certain types of modifications of loans in response to a borrower’s financial difficulty be reported, which consist of the following: (i) principal forgiveness, (ii) interest rate reduction, (iii) other-than-insignificant payment delay, (iv) term extension, or (v) any combination of the foregoing. The ACL for loans that were modified in response to a borrower’s financial difficulty is measured on a collective basis, as with other loans in the loan portfolio, unless management determines that such loans no longer possess risk characteristics similar to others in the loan portfolio. In those instances, the ACL for such loans is determined through individual evaluation. The following table presents the amortized costs basis as of December 31, 2025 and 2024 and the financial effect of loans modified to borrowers experiencing financial difficulty during the years ended December 31, 2025 and 2024. December 31, 2025 Term Extension Percentage of Total Loan Type Weighted Average Term Extension (In Thousands) Real estate: Commercial real estate $ 772 0.47 % 8 months Construction 1,999 2.73 % 8 months Commercial - other 367 0.26 % 9 months Total $ 3,138 December 31, 2024 Term Extension Percentage of Total Loan Type Weighted Average Term Extension (In Thousands) Real estate: Commercial real estate $ 792 0.51 % 12 months Construction 4,559 5.66 % 17 months Commercial - other 572 1.28 % 14 months Total $ 5,923 Credit Quality Indicators The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. For single-family residential, consumer and other smaller balance homogenous loans, a credit grade is established at inception, and generally only adjusted based on performance. Information about payment status is disclosed elsewhere herein. The Company analyzes all other loans individually by classifying the loans as to credit risk. This analysis is performed at least on an annual basis. The Company uses the following definitions for risk ratings: ● Watch. Loans classified as watch exhibit weaknesses that could threaten the current net worth and paying capacity of the obligors. Watch graded loans are generally performing and are not more than 59 days past due. A watch rating is used when a material deficiency exists, but correction is anticipated within an acceptable time frame. ● Special Mention. Loans classified as special mention have a potential weakness that deserves management’s close attention that appears short-term in nature. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date. ● Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well‑defined weakness or weaknesses that jeopardizes the liquidation of the debt. They are characterized by the distinct possibility that the institution may sustain some loss if the deficiencies are not corrected. ● Doubtful. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, based on currently existing facts, conditions, and values, highly questionable and improbable. ● Loss. Loans classified as loss are considered uncollectible and of such little value that to continue to carry the loan as an active asset is no longer warranted. Loans not meeting the criteria above that are analyzed individually as part of the above-described process are considered to be pass rated loans. Pass rated loans are generally well protected by the current net worth and paying capacity of the obligor and/or by the value of the underlying collateral. Pass rated loans are not more than 59 days past due and are generally performing in accordance with the loan terms. F-17 Table of Contents The following table stratifies the loans held for investment portfolio by the Company’s internal risk grading, and by year of origination as of the date indicated: Term Loans Amortized Cost Basis by Origination Year - As of December 31, 2025 2025 2024 2023 2022 2021 Prior Revolving Loans Total (In thousands) Single-family: Pass $ – $ – $ 533 $ 2,785 $ 2,464 $ 12,806 $ – $ 18,588 Watch – – – – – 867 – 867 Substandard – – – 1,172 – – – 1,172 Total $ – $ – $ 533 $ 3,957 $ 2,464 $ 13,673 $ – $ 20,627 Multi-family: Pass $ 2,519 $ 63,728 $ 64,468 $ 164,533 $ 122,938 $ 82,514 $ – $ 500,700 Watch – 13,169 16,343 14,299 9,979 23,162 – 76,952 Special Mention – – – – 1,774 1,235 – 3,009 Substandard – – 1,343 6,572 4,332 804 – 13,051 Doubtful – – – 2,079 – – – 2,079 Total $ 2,519 $ 76,897 $ 82,154 $ 187,483 $ 139,023 $ 107,715 $ – $ 595,791 YTD gross charge-offs $ – $ – $ – $ ( 1,143 ) $ – $ – $ – $ ( 1,143 ) Commercial real estate: Pass $ 20,019 $ 48,758 $ 13,741 $ 21,476 $ 24,284 $ 20,415 $ – $ 148,693 Watch – – 2,363 – – – – 2,363 Special Mention – – 854 – – 3,475 – 4,329 Substandard – – – – 6,288 772 – 7,060 Total $ 20,019 $ 48,758 $ 16,958 $ 21,476 $ 30,572 $ 24,662 $ – $ 162,445 Church: Pass $ – $ – $ 2,330 $ – $ 2,091 $ 3,652 $ – $ 8,073 Watch – – 357 – – 594 – 951 Substandard – – – – – – – – Total $ – $ – $ 2,687 $ – $ 2,091 $ 4,246 $ – $ 9,024 Construction: Watch $ 6,700 $ 9,232 $ – $ – $ – $ – $ – $ 15,932 Special Mention – – 12,983 5,533 – – – 18,516 Substandard – – 12,634 21,073 2,519 1,998 – 38,224 Total $ 6,700 $ 9,232 $ 25,617 $ 26,606 $ 2,519 $ 1,998 $ – $ 72,672 Commercial – other: Pass $ 43,037 $ 21,347 $ 18,837 $ 8,834 $ – $ 7,341 $ – $ 99,396 Watch 9,984 17,469 14,993 1,000 – 1,171 – 44,617 Special Mention – – – – – 2,617 – 2,617 Substandard – – – – 103 261 – 364 Total $ 53,021 $ 38,816 $ 33,830 $ 9,834 $ 103 $ 11,390 $ – $ 146,994 SBA: Pass $ 3,789 $ 12,415 $ 1,452 $ – $ – $ 19 $ – $ 17,675 Substandard – 571 – 148 – – – 719 Doubtful – – – – – 74 – 74 Total $ 3,789 $ 12,986 $ 1,452 $ 148 $ – $ 93 $ – $ 18,468 YTD gross charge-offs $ – $ – $ – $ – $ – $ ( 36 ) $ – $ ( 36 ) Consumer: Pass $ 38 $ – $ – $ – $ – $ – $ – $ 38 Total $ 38 $ – $ – $ – $ – $ – $ – $ 38 Total loans: Pass $ 69,402 $ 146,248 $ 101,361 $ 197,628 $ 151,777 $ 126,747 $ – $ 793,163 Watch 16,684 39,870 34,056 15,299 9,979 25,794 – 141,682 Special Mention – – 13,837 5,533 1,774 7,327 – 28,471 Substandard – 571 13,977 28,965 13,242 3,835 – 60,590 Doubtful – – – 2,079 – 74 – 2,153 Total loans $ 86,086 $ 186,689 $ 163,231 $ 249,504 $ 176,772 $ 163,777 $ – $ 1,026,059 F-18 Table of Contents Term Loans Amortized Cost Basis by Origination Year - As of December 31, 2024 2024 2023 2022 2021 2020 Prior Revolving Loans Total (In thousands) Single-family: Pass $ – $ 543 $ 4,098 $ 1,968 $ 1,796 $ 13,687 $ – $ 22,092 Watch – – – 729 1,227 – – 1,956 Special Mention – – – – – – – – Substandard – – – – – – – – Total $ – $ 543 $ 4,098 $ 2,697 $ 3,023 $ 13,687 $ – $ 24,048 Multi-family: Pass $ 81,474 $ 77,739 $ 171,836 $ 126,492 $ 26,771 $ 90,584 $ – $ 574,896 Watch – 5,633 16,244 14,761 – 13,244 – 49,882 Special Mention – – 4,210 3,150 – – – 7,360 Substandard – 1,562 – 4,691 – 3,718 – 9,971 Total $ 81,474 $ 84,934 $ 192,290 $ 149,094 $ 26,771 $ 107,546 $ – $ 642,109 Commercial real estate: Pass $ 49,143 $ 9,655 $ 23,482 $ 29,021 $ 21,150 $ 22,606 $ – $ 155,057 Watch – 1,584 432 994 – 1,634 – 4,644 Special Mention – – – – – – – – Substandard – 3,271 – 297 – – – 3,568 Total $ 49,143 $ 14,510 $ 23,914 $ 30,312 $ 21,150 $ 24,240 $ – $ 163,269 Church: Pass $ – $ 2,442 $ – $ 2,148 $ 1,696 $ 1,002 $ – $ 7,288 Watch – 376 – – – 618 – 994 Substandard – – – – – 1,193 – 1,193 Total $ – $ 2,818 $ – $ 2,148 $ 1,696 $ 2,813 $ – $ 9,475 Construction: Pass $ – $ – $ – $ – $ – $ – $ – $ – Watch 9,568 31,274 227 – – 2,038 – 43,107 Substandard – 4,076 38,494 5,463 – – – 48,033 Total $ 9,568 $ 35,350 $ 38,721 $ 5,463 $ – $ 2,038 $ – $ 91,140 Commercial – other: Pass $ 1 $ 3 $ 7,575 $ – $ 2,768 $ 9,965 $ – $ 20,312 Watch 19,260 28,157 706 – – 1,197 – 49,320 Special Mention – – 351 – – 2,250 – 2,601 Substandard – – – 106 571 4,562 – 5,239 Total $ 19,261 $ 28,160 $ 8,632 $ 106 $ 3,339 $ 17,974 $ – $ 77,472 SBA: Pass $ 590 $ – $ – $ – $ – $ 64 $ – $ 654 Substandard – – 150 – 338 – – 488 Total $ 590 $ – $ 150 $ – $ 338 $ 64 $ – $ 1,142 Consumer: Pass $ 13 $ – $ – $ – $ – $ – $ – $ 13 Total $ 13 $ – $ – $ – $ – $ – $ – $ 13 Total loans: Pass $ 131,221 $ 90,382 $ 206,991 $ 159,629 $ 54,181 $ 137,908 $ – $ 780,312 Watch 28,828 67,024 17,609 16,484 1,227 18,731 – 149,903 Special Mention – – 4,561 3,150 – 2,250 – 9,961 Substandard – 8,909 38,644 10,557 909 9,473 – 68,492 Total $ 160,049 $ 166,315 $ 267,805 $ 189,820 $ 56,317 $ 168,362 $ – $ 1,008,668 Allowance for Credit Losses for Off-Balance Sheet Commitments The Company maintains an allowance for credit losses on off-balance sheet commitments related to unfunded loans and lines of credit, which is included in accrued expenses and other liabilities of the consolidated statements of financial condition. The Company applies an expected credit loss estimation methodology for off-balance sheet commitments. This methodology is commensurate with the methodology applied to each respective segment of the loan portfolio in determining the ACL for loans held-for-investment. The loss estimation process includes assumptions for the probability that a loan will fund, as well as the expected amount of funding. These assumptions are based on the Company’s own historical internal loan data. The allowance for off-balance sheet commitments was $ 224 thousand and $ 277 thousand at December 31, 2025 and 2024, respectively. The recovery of credit losses for off-balance sheet commitments was $ 53 thousand and $ 91 thousand for the years ended December 31, 2025 and 2024, respectively. F-19 Table of Contents Note 5 – Office Properties and Equipment, net Year‑end office properties and equipment were as follows: December 31, 2025 December 31, 2024 (In thousands) Land $ 5,322 $ 5,322 Office buildings and improvements 7,649 7,649 Furniture, fixtures, and equipment 1,358 1,214 14,329 14,185 Less accumulated depreciation ( 5,597 ) ( 5,286 ) Office properties and equipment, net $ 8,732 $ 8,899 Depreciation expense was $ 410 thousand and $ 424 thousand for the years ended December 31, 2025 and 2024, respectively. Note 6 – Leases Effective October 1, 2021, the Bank entered into an operating lease for its administrative offices at 4601 Wilshire Boulevard in Los Angeles. The operating lease has one 5 -year extension option at the then fair market rate which was exercised during the year ended December 31, 2025. The ROU asset represents our right to use the underlying asset during the lease term. Operating lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized based on the present value of the remaining lease payments using a discount rate that represents our incremental borrowing rate at the date of the lease’s inception. The ROU asset totaled $ 1.5 million and $ 420 thousand as of December 31, 2025 and 2024, respectively, and was included in other assets on the consolidated statements of financial condition. The lease liability totaled $ 1.5 million and $ 420 thousand as of December 31, 2025 and 2024, respectively, and was included in accrued expenses and other liabilities on the consolidated statements of financial condition. The Bank has no finance leases. The Company recognized rent expense of $ 242 thousand in both 2025 and 2024. Additional information regarding our operating leases is summarized below for the periods indicated (dollars in thousands): Year Ended December 31, 2025 Year Ended December 31, 2024 Cash paid for amounts included in the measurement of lease liabilities for operating leases $ 242 $ 242 ROU assets obtained in exchange for lease liabilities 1,310 – Weighted average remaining lease term in months 73 21 Weighted average discount rate 3.8 % 5.5 % The future minimum payments for operating leases with remaining terms of one year or more as of December 31, 2025 were as follows (in thousands): Year ended December 31, 2026 $ 249 Year ended December 31, 2027 271 Year ended December 31, 2028 271 Year ended December 31, 2029 271 Year ended December 31, 2030 271 Thereafter 293 Total future minimum lease payments 1,626 Amounts representing interest ( 135 ) Present value of net future minimum lease payments $ 1,491 F-20 Table of Contents Note 7 – Goodwill and Core Deposit Intangible The following tables present the changes in the carrying amounts of goodwill and core deposit intangibles for the years ended December 31, 2025 and 2024: December 31, 2025 Goodwill Core Deposit Intangible (In thousands) Balance at the beginning of the period $ 25,858 $ 1,775 Impairment ( 25,858 ) – Amortization – ( 315 ) Balance at the end of the period $ – $ 1,460 December 31, 2024 Goodwill Core Deposit Intangible (In thousands) Balance at the beginning of the period $ 25,858 $ 2,111 Amortization - ( 336 ) Balance at the end of the period $ 25,858 $ 1,775 Management engaged a third-party to complete the goodwill impairment testing as of September 30, 2025. The quantitative test indicated that the carrying amount of the goodwill exceeded the fair value of the Company by approximately $ 25.9 million. On October 15, 2025, the Company’s management, with oversight of the Audit Committee of the Board of Directors of the Company, concluded that, based on its annual impairment analysis, the Company’s goodwill was impaired in accordance with U.S. GAAP. Consequently, the Company recorded a non-cash $ 25.9 million goodwill impairment charge for the quarter ended September 30, 2025. The Company does not expect that this charge will result in future cash expenditures. The carrying value and accumulated amortization related to the Company’s core deposit intangible consisted of the following at December 31, 2025 and 2024: December 31, 2025 December 31, 2024 (In thousands) Core deposit intangible acquired $ 3,329 $ 3,329 Less: accumulated amortization ( 1,869 ) ( 1,554 ) $ 1,460 $ 1,775 The following table outlines the estimated amortization expense related to the core deposit intangible during the next five fiscal years: (In thousands) 2026 $ 304 2027 291 2028 279 2029 267 2030 256 Thereafter 63 $ 1,460 F-21 Table of Contents Note 8 – Derivatives During the year ended December 31, 2025, the Company began utilizing interest rate swap agreements with commercial banking customers to facilitate their interest rate management strategies. The Company entered into corresponding offsetting derivatives with third parties. While these derivatives represent economic hedges, they do not qualify as hedges for accounting purposes. The Company presents derivative position gross on the consolidated statements of financial condition. The notional amount of the interest rate swaps does not represent amounts exchanged by the parties. The amount exchanged is determined by reference to the notional amount and the other terms of the individual interest rate swap agreements. The following table presents the amounts recorded on the consolidated statements of financial condition related to the Company’s interest rate swaps. As of December 31, 2025 Notional Amount Fair Value Consolidated Statements of Financial Condition Category (In thousands) Derivatives in an asset position: Derivatives not designated as hedging instruments: Interest rate swaps related to customer loans $ 17,000 $ 105 Other Assets Total derivatives in an asset position $ 17,000 $ 105 Derivatives in a liability position: Derivatives not designated as hedging instruments: Interest rate swaps related to customer loans $ 17,000 $ 105 Total derivatives in a liability position $ 17,000 $ 105 Accrued Expenses and Other Liabilities The following table presents the effect of the Company’s derivative financial instruments on the Consolidated Statements of Operations. For the Year Ended December 31, 2025 Location of Gain/Loss Recognized on Derivatives on Consolidated Statement of Operations Amount of Gain/Loss Recognized on Derivatives (In thousands) Derivatives not designated as hedging instruments: Interest rate swaps related to customer loans Unrealized gain/loss $ - During the year ended December 31, 2025, the Company also recognized $ 194 thousand in swap fees in Other Income on the Consolidated Statement of Operations. F-22 Table of Contents Note 9 – Fair Value Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an ordinary transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values: Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3: Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. The Company used the following methods and significant assumptions to estimate fair value: T he fair values of securities available-for-sale are determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs) or matrix pricing, which is a mathematical technique to value debt securities without relying exclusively on quoted prices for the specific securities, but rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2 inputs). Assets and Liabilities Measured on a Recurring Basis Assets and liabilities measured at fair value on a recurring basis are summarized below: Fair Value Measurement Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total (In thousands) At December 31, 2025 : Securities available-for-sale: Federal agency mortgage-backed securities $ – $ 114,430 $ – $ 114,430 Federal agency CMOs – 69,457 – 69,457 Federal agency debt – 28,413 – 28,413 Municipal bonds – 4,522 – 4,522 U.S. Treasuries 4,987 – – 4,987 SBA pools – 8,275 – 8,275 Asset-backed securities – 9,269 – 9,269 Corporate bonds – 17,482 – 17,482 Interest rate swap asset – 105 – 105 Interest rate swap liability – ( 105 ) – ( 105 ) At December 31, 2024 : Securities available-for-sale: Federal agency mortgage-backed securities $ – $ 53,029 $ – $ 53,029 Federal agency CMOs – 20,058 – 20,058 Federal agency debt – 40,034 – 40,034 Municipal bonds – 4,388 – 4,388 U.S. Treasuries 77,190 – – 77,190 SBA pools – 9,163 – 9,163 There were no transfers between Level 1, Level 2, or Level 3 during the years ended December 31, 2025 or 2024. Assets Measured on a Nonrecurring Basis The Company measures certain assets at fair value on a nonrecurring basis and the following is a general description of the methods used to value such assets. Collateral-Dependent Loans - The fair value of collateral-dependent loans with specific allocations of the allowance for loan losses is generally based on recent appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available for similar loans and collateral underlying loans and result in a Level 3 classification. F-23 Table of Contents The table below presents assets measured at fair value on a nonrecurring basis at December 31, 2025. At December 31, 2024, the Company did no t have any assets or liabilities carried at fair value on a nonrecurring basis. Fair Value Measurement Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total (In thousands) At December 31, 2025 : Collateral dependent loans: Real estate: Single-family $ - $ - $ 424 $ 424 Multi-family - - 2,094 2,094 Construction - - 7,435 7,435 Commercial - other - - 138 138 The following table represents quantitative information about Level 3 fair value assumptions for assets measured at fair value on a non-recurring basis at December 31, 2025. Fair Value Valuation Technique(s) Unobservable Input(s) Range (In thousands) At December 31, 2025 : Collateral dependent loans: Real estate: Single-family $ 424 Market approach Adjustments to market data 5 % - 10 % Multi-family 2,094 Market approach Adjustments to market data 5 % - 10 % Construction 7,435 Market approach Adjustments to market data 5 % - 10 % Commercial - other 138 Market approach Adjustments to market data 5 % - 10 % Fair Values of Financial Instruments The carrying amounts and estimated fair values of financial instruments as of the periods indicated were as follows: Carrying Fair Value Measurements at December 31, 2025 Value Level 1 Level 2 Level 3 Total (In thousands) Financial Assets: Cash and cash equivalents $ 10,507 $ 10,507 $ – $ – $ 10,507 Securities available-for-sale 256,835 4,987 251,848 – 256,835 Loans receivable held for investment 1,016,540 – – 1,002,049 1,002,049 Accrued interest receivable 5,999 36 800 5,163 5,999 Interest rate swaps 105 – 105 – 105 Financial Liabilities: Non interest bearing deposits $ 105,835 $ – $ 105,835 $ – $ 105,835 Interest bearing deposits 512,034 – 512,034 – 512,034 Time deposits 299,734 – 299,434 – 299,434 FHLB advances 72,000 – 72,019 – 72,019 Securities sold under agreements to repurchase 80,773 – 80,773 – 80,773 Accrued interest payable 1,633 – 1,633 – 1,633 Interest rate swaps 105 – 105 – 105 Carrying Fair Value Measurements at December 31, 2024 Value Level 1 Level 2 Level 3 Total (In thousands) Financial Assets: Cash and cash equivalents $ 61,365 $ 61,365 $ – $ – $ 61,365 Securities available-for-sale 203,862 77,190 126,672 – 203,862 Loans receivable held for investment 999,956 – – 973,183 973,183 Accrued interest receivable 5,001 5,001 – – 5,001 Bank owned life insurance 3,321 3,321 – – 3,321 Financial Liabilities: Deposits $ 745,399 $ – $ 669,695 $ – $ 669,695 FHLB advances 226,888 – 227,150 – 227,150 Securities sold under agreements to repurchase 66,610 – 66,070 – 66,070 Accrued interest payable 1,349 – 1,349 – 1,349 The fair value of financial assets and liabilities was measured using an exit price notion. Although the exit price notion represents the value that would be received to sell an asset or paid to transfer a liability, the actual price received for a sale of assets or paid to transfer liabilities could be different from exit price disclosed. F-24 Table of Contents Note 10 – Deposits Deposits are summarized as follows: December 31, 2025 December 31, 2024 (In thousands) Interest checking and other demand deposits $ 259,318 $ 251,538 Non‑interest-bearing demand deposits 105,835 105,227 Money market deposits 211,962 125,862 Savings deposits 40,754 49,933 Certificates of deposit 299,734 212,839 Total $ 917,603 $ 745,399 The Bank accepts two types of deposits from a deposit placement service called the Certificate of Deposit Account Registry Service (“CDARS”). Reciprocal deposits are the Bank’s own retail deposits in amounts in excess of the insured limits. The CDARS program allows banks to place their customers’ funds in FDIC‑insured certificates of deposit at other banks and, at the same time, receive an equal sum of funds from the customers of other banks in the CDARS Network. These deposits totaled $ 150.8 million and $ 145.8 million at December 31, 2025 and 2024, respectively and are not considered to be brokered deposits. The other type of deposit that may be accepted under the CDARS program is nonreciprocal deposits which are considered to be brokered funds. As of December 31, 2025 and 2024, the Bank had no such deposits. During the year ended December 31, 2025, the Company purchased $ 70.0 million of nonreciprocal brokered certificates of deposit. The balance of these certificates of deposit was $ 70.0 million at December 31, 2025. As of December 31, 2025 and 2024, approximately $ 413.5 million and $ 268.8 million of our total deposits (including deposits from affiliates) were not insured by FDIC insurance, which represented 41 % and 32 % of total deposits, respectively. Scheduled maturities of certificates of deposit for the next five years are as follows: Maturity Amount (In thousands) 2026 $ 294,642 2027 3,692 2028 1,302 2029 66 2030 32 Thereafter - $ 299,734 Certificates of deposit of $250 thousand or more totaled $ 105.1 million and $ 33.2 million at December 31, 2025 and 2024, respectively. The Company has a significant concentration of deposits with five long‑time customers that accounted for approximately 28 % and 18 % of its deposits as of December 31, 2025 and 2024, respectively. Deposits from principal officers, directors, and their affiliates totaled $ 24.8 million and $ 24.2 million at December 31, 2025 and 2024, respectively. Note 11 – Borrowings The following table summarizes information relating to FHLB advances at or for the periods indicated: At or For the Year Ended December 31, 2025 2024 (Dollars in thousands) FHLB Advances: Average balance outstanding during the year $ 93,431 $ 199,893 Maximum amount outstanding at any month‑end during the year $ 150,750 $ 209,298 Balance outstanding at end of year $ 72,000 $ 195,532 Weighted average interest rate at end of year 3.79 % 4.03 % Average cost of advances during the year 4.28 % 4.79 % Weighted average maturity (in months) – (1) – (1) The majority of FHLB advances are overnight borrowings Of the $ 72.0 million FHLB advances outstanding at December 31, 2025, $ 60.0 million is fixed-rate credit and subject to prepayment penalties if paid before its maturity date. The advances were collateralized by $ 448.6 million and $ 521.7 million of commercial real estate loans at December 31, 2025 and 2024, respectively, under a blanket lien arrangement. Based on collateral pledged and the Company’s holdings of FHLB stock as of December 31, 2025, the Company was eligible to borrow up to an additional $ 150.7 million at year‑end 2025. Scheduled maturities of FHLB advances are as follows: Amount (In thousands) 2026 $ 72,000 2027 – $ 72,000 The Company will, from time to time, sell a portion of a loan or group of loans to third parties. In some cases, the transferred portion of the loans does not meet the requirements to be treated as sales for accounting purposes. When that occurs, the legally transferred portion of the loan balance remains classified in gross loans receivable held for investment and a secured borrowing is recorded for the proceeds received from the third-party institution. As the transferred portion of the loan pays down, the secured borrowings are repaid. The Company has no obligation to make principal or interest payments on the secured borrowings unless and until payments are received from the loan borrowers. The terms of these loans were modified during the fourth quarter of 2025, at which point sale accounting treatment was applied and the debt was derecognized. The Company had secured borrowings associated with these participation loan transactions of $ 0 and $ 31.4 million as of December 31, 2025 and 2024, respectively. The weighted average interest rate on the secured borrowings was 5.54 % at December 31, 2024. On December 27, 2023, the Company borrowed $ 100.0 million from the Federal Reserve under the Bank Term Funding Program (“BTFP”). This borrowing was paid off in December 2024. The interest rate on this borrowing was fixed at 4.84 %. In addition, the Bank had additional lines of credit of $ 10.0 million with other financial institutions as of December 31, 2025 and 2024. No amounts were drawn on the lines of credit at December 31, 2025 or 2024. F-25 Table of Contents Note 12 – Securities Sold Under Agreements to Repurchase The Bank enters into agreements under which it sells securities subject to an obligation to repurchase the same or similar securities. Under these arrangements, the Bank may transfer legal control over the assets but still retain effective control through an agreement that both entitles and obligates the Bank to repurchase the assets. As a result, these repurchase agreements are accounted for as collateralized financing agreements (i.e., secured borrowings) and not as a sale and subsequent repurchase of securities. The obligation to repurchase the securities is reflected as a liability in the Bank’s consolidated statements of financial condition, while the securities underlying the repurchase agreements remain in the respective investment securities asset accounts. In other words, there is no offsetting or netting of the investment securities assets with the repurchase agreement liabilities. As of December 31, 2025, securities sold under agreements to repurchase totaled $ 80.8 million at an average rate of 3.66 %. These agreements mature on a daily basis, but management expects the agreements to be available in the foreseeable future. The fair value of securities pledged totaled $ 83.7 million as of December 31, 2025. As of December 31, 2024, securities sold under agreements to repurchase totaled $ 66.6 million at an average rate of 3.62 %. The fair value of securities pledged totaled $ 83.3 million as of December 31, 2024. Note 13 – Employee Benefit Plans 401(k) Plans In July of 2022, the Broadway Federal Bank 401(k) benefit plan and the City First Bank 401(k) benefit plan were combined into one plan called “the City First Bank 401(k) benefit plan” (the “401(k) Plan”). The 401(k) Plan allows employee contributions for substantially all employees up to 15 % of their compensation, which are matched at a rate equal to 50 % of the first 6 % of compensation contributed. In addition, the 401(k) Plan makes a non-elective safe harbor contribution of 3 % of each eligible employee’s compensation. Expenses related to the 401(k) plans totaled $ 417 thousand in 2025 and $ 476 thousand in 2024. ESOP Plan Employee s participate in an Employee Stock Ownership Plan (“ESOP”) after attaining certain age and service requirements. During 2022, the ESOP purchased 58,369 shares of the Company’s common stock at an average cost of $ 8.57 per share for a total cost of $ 500 thousand which was funded with a $ 5 million line of credit from the Company. During 2023, the ESOP purchased 369,953 additional shares of the Company’s common stock at an average cost of $ 9.19 per share for a total cost of $ 3.4 million which was funded with the line of credit. Any loans or borrowings under the line of credit will be repaid from the Bank’s discretionary contributions to the ESOP, net of dividends paid, over a period of 20 years . Shares of the Company’s common stock purchased by the ESOP are held in a suspense account until released for allocation to participants. When loan payments are made, shares are allocated to each eligible participant based on the ratio of each such participant’s compensation, as defined in the ESOP, to the total compensation of all eligible plan participants. As the unearned shares are released from the suspense account, the Company recognizes compensation expense equal to the fair value of the ESOP shares during the periods in which they become committed to be released. To the extent that the fair value of the ESOP shares released differs from the cost of such shares, the difference is charged or credited to equity as additional paid‑in capital. Dividends on allocated shares increase participant accounts. Dividends on unallocated shares will be used to repay the loan. At the end of employment, participants will receive shares for their vested balance. Compensation expense related to the ESOP was $ 149 thousand for 2025 and $ 188 thousand for 2024 . Shares held by the ESOP were as follows: December 31, 2025 December 31, 2024 (Dollars in thousands) Allocated to participants 124,968 127,804 Committed to be released 55,568 30,036 Suspense shares 406,108 428,804 Total ESOP shares 586,644 586,644 Fair value of unearned shares $ 3,005 $ 2,937 During 2025 and 2024, 0 and 30,036 of ESOP shares were released for allocation to participants, respectively. The outstanding book balance of unearned ESOP shares at December 31, 2025 and 2024 was $ 3.9 million and $ 4.2 million, respectively, which is shown as unearned ESOP shares in the equity section of the consolidated statements of financial condition. During December 2022, the Company issued a $ 5 million line of credit to the ESOP Plan for the purchase of additional shares. As of December 31, 2025 and December 31, 2024, the trustee for the ESOP had purchased 428,327 shares at a total cost of $ 3.9 million . Note 14 – Income Taxes The Company and its subsidiary are subject to U.S. federal and state income taxes. Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. F-26 Table of Contents The Company adopted the disclosure requirements in ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , on a retrospective basis as of January 1, 2025. The adoption primarily impacted the presentation and disaggregation of the Company’s income tax disclosures and did not affect the Company’s consolidated financial condition, results of operations, or cash flows. The components of income tax expense (benefit) from continuing operations consisted of the following: 2025 2024 (In thousands) Current Federal $ 118 $ 505 State 270 504 Foreign – – Deferred Federal ( 245 ) 12 State 195 ( 206 ) Foreign – – Total $ 338 $ 815 Income taxes paid, net of refunds received was as follows: 2025 2024 (In thousands) Federal $ – $ 150 California 215 200 Washington, D.C. 110 66 Total $ 325 $ 416 Effective tax rates differ from the federal statutory rate of 21 % applied to income before income taxes due to the following: 2025 2024 (In thousands) (In thousands) U. S. Federal statutory income tax $ ( 5,139 ) 21.00 % $ 581 21.00 % State and local taxes, net of federal benefit* 367 ( 1.50 )% 211 7.62 % Nontaxable or nondeductible items Earnings from bank owned life insurance ( 72 ) 0.29 % ( 10 ) ( 0.36 )% Tax-exempt interest, net of TEFRA disallowance ( 7 ) 0.03 % ( 5 ) ( 0.18 )% Goodwill impairment 5,430 ( 22.19 )% – 0.00 % Stock-based compensation 7 ( 0.03 )% 38 1.37 % Other, net ( 248 ) 1.02 % – 0.00 % Effective tax rate $ 338 ( 1.38 )% $ 815 29.43 % * State and local taxes in California and Washington, D.C. made up the majority (greater than 50 percent) of the tax effect in this category. Year‑end deferred tax assets and liabilities were due to the following: 2025 2024 (In thousands) Deferred tax assets: Allowance for credit losses $ 2,658 $ 2,408 Accrued liabilities 851 483 State income taxes 56 108 Stock compensation 239 196 Tax loss carryforwards 1,900 1,880 Partnership investment 252 292 General business credit 1,007 1,544 Net unrealized loss on securities available-for-sale 2,403 4,864 Lease liability 424 127 Fair value adjustment on acquired loans 27 100 Other 316 166 Total deferred tax assets 10,133 12,168 Less: valuation allowance ( 449 ) ( 449 ) Total deferred tax assets , net of valuation allowance 9,684 11,719 Deferred tax liabilities: Deferred loan fees/costs ( 1,152 ) ( 1,273 ) Basis difference on fixed assets ( 726 ) ( 708 ) FHLB stock dividends ( 1 ) ( 54 ) Prepaid expenses ( 261 ) ( 172 ) Right of use assets ( 421 ) ( 121 ) Core deposit intangibles ( 412 ) ( 511 ) Total deferred tax liabilities ( 2,973 ) ( 2,839 ) Net deferred tax assets $ 6,711 $ 8,880 Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion, or all, of the deferred tax asset will not be realized. In assessing the realization of deferred tax assets, management evaluated both positive and negative evidence, the amount of taxes paid in available carry‑back years, and the forecasts of future income and tax planning strategies. Based on this analysis, management determined that, as of December 31, 2025, a valuation allowance of $ 449 thousand was required on the Company’s net deferred tax assets, which totaled $ 6.7 million (net of valuation allowance). As of December 31, 2024, a valuation allowance of $ 449 thousand was required on the Company’s net deferred tax assets, which totaled $ 8.9 million (net of valuation allowance). As of December 31, 2025, the Company had California net operating loss carryforwards of $ 22.0 million which will begin to expire in 2032 if not utilized. The Company also had federal general business credits of $ 1.0 million, which will begin to expire in 2033 if not utilized. The Company did no t have any unrecognized tax benefits as of December 31, 2025 or 2024. Federal tax years 2022 through 2025 remain open for the assessment of Federal income tax. California tax years 2021 through 2025 remain open for the assessment of California franchise tax. Washington, D.C. tax years 2022 through 2025 remain open for the assessment of D.C. franchise tax. The Company is not currently under examination by any tax authorities . F-27 Table of Contents Note 15 – Stock‑Based Compensation Prior to June 21, 2023, the Company issued stock-based compensation awards to its directors and officers under the 2018 Long Term Incentive Plan (“LTIP”) which allowed the grant of non-qualified and incentive stock options, stock appreciation rights, full value awards and cash incentive awards. The maximum number of shares that could be awarded under that plan was 161,639 shares. On June 21, 2023, stockholders approved the Amended and Restated 2018 Long Term Incentive Plan (“Amended and Restated LTIP”) which allows the issuance of 487,500 additional shares and brought the number of shares that may be issued under the Amended and Restated LTIP to 649,139 shares. The following table summarizes stock option activity during the year ended December 31, 2025: Number Outstanding Weighted Average Exercise Price Outstanding at beginning of year 12,500 $ 12.96 Granted during the year – – Exercised during the year – – Forfeited or expired during the year – 12.96 Outstanding at end of year 12,500 $ 12.96 Exercisable at end of year 12,500 $ 12.96 There was no stock-based compensation expense related to stock options during 2025 or 2024. Options outstanding and exercisable at year‑end 2025 were as follows: Outstanding Exercisable Grant Date Number Outstanding Weighted Average Remaining Contractual Life Weighted Average Exercise Price Aggregate Intrinsic Value Number Outstanding Weighted Average Exercise Price Aggregate Intrinsic Value February 24, 2016 12,500 $ 12.96 12,500 $ 12.96 12,500 0.12 years $ 12.96 $ – 12,500 $ 12.96 $ – Stock Awards to Directors In March 2025 and May 2024, the Company awarded 23,232 and 19,832 shares of common stock, respectively, to its directors under the LTIP, which are fully vested. The Company recorded $ 168 thousand and $ 96 thousand of compensation expense in the years ended December 31, 2025 and December 31, 2024, respectively, based on the fair value of the stock on the date of the award. Restricted Stock Awards to Employees In March 2022, the Company issued 61,908 shares of restricted stock to its officers and employees under the LTIP, of which 23,379 shares have been forfeited as of December 31, 2025. Each restricted stock award was valued based on the fair value of the stock on the date of the award. These awarded shares of restricted stock fully vest over periods ranging from 36 months to 60 months from their respective dates of grant. Stock-based compensation is recognized on a straight-line basis over the vesting period. During 2025 and 2024, the Company recorded $ 41 thousand and $ 88 thousand, respectively, of stock-based compensation expense related to shares awarded to employees. On June 21, 2023, the Company issued 92,720 shares of restricted stock to its officers and employees under the Amended and Restated LTIP, of which 30,072 shares have been forfeited as of December 31, 2025. Each restricted stock award was valued based on the fair value of the stock on the date of the award. These awarded shares of restricted stock fully vest over periods ranging from 36 months to 60 months from their respective dates of grant. Stock-based compensation is recognized on a straight-line basis over the vesting period. During the years ended December 31, 2025 and 2024, the Company recorded $ 60 thousand and $ 113 thousand, respectively, of stock-based compensation expense related to these restricted stock awards. On March 25, 2024, and April 5, 2024, the Company issued a total of 126,083 shares of restricted stock to its officers and employees under the Amended and Restated LTIP, of which 26,356 shares have been forfeited as of December 31, 2025. Each restricted stock award was valued based on the fair value of the stock on the date of the award. These awarded shares of restricted stock fully vest over periods ranging from 36 months to 60 months from their respective dates of grant. Stock-based compensation is recognized on a straight-line basis over the vesting period. During the years ended December 31, 2025 and 2024, the Company recorded $ 94 thousand and $ 108 thousand, respectively, of stock-based compensation expense related to these restricted stock awards. On March 26, 2025 and May 28, 2025, the Company issued a total of 96,478 shares of restricted stock to its officers and employees under the Amended and Restated LTIP, of which 17,048 shares have been forfeited as of December 31, 2025. Each restricted stock award was valued based on the fair value of the stock on the date of the award. These awarded shares of restricted stock fully vest over periods ranging from 36 months to 48 months from their respective dates of grant. Stock-based compensation is recognized on a straight-line basis over the vesting period. During the year ended December 31, 2025, the Company recorded $ 114 thousand of stock-based compensation expense related to these restricted stock awards. As of December 31, 2025, 367,181 shares had been awarded under the Amended and Restated LTIP and 281,958 shares were available to be awarded. F-28 Table of Contents A summary of restricted stock unit activity for the year ended December 31, 2025 is as follows: Restricted Stock Units (In thousands) Weighted Average Grant Date Fair Value Remaining Contractual Life (months) Unvested at December 31, 2024 184,874 $ 8.91 31 Granted during period 119,710 7.15 29 Vested during period ( 95,566 ) – – Forfeited or expired during period ( 59,313 ) – – Unvested at December 31, 2025 149,705 $ 8.50 24 As of December 31, 2025, there was $ 1.8 million of total unrecognized equity-based compensation expense that the Company expects to recognize over the remaining contractual life. Note 16 – Regulatory Matters The Bank’s capital requirements are administered by the Office of the Comptroller of the Currency (“OCC”) and involve quantitative measures of assets, liabilities, and certain off-balance sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by the OCC. Failure to meet capital requirements can result in regulatory action. As a result of the Economic Growth, Regulatory Relief, and Consumer Protection Act, the federal banking agencies have developed a “Community Bank Leverage Ratio” (“CBLR”) (the ratio of a bank’s tier 1 capital to average total consolidated assets) for financial institutions with assets of less than $10 billion. A “qualifying community bank” that exceeds this ratio will be deemed to be in compliance with all other capital and leverage requirements, including the capital requirements to be considered “well capitalized” under Prompt Corrective Action statutes. The federal banking agencies have set the Community Bank Leverage Ratio at 9%. Actual and required capital amounts and ratios as of the dates indicated are presented below: Actual Minimum Required to be Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio (Dollars in thousands) December 31, 2025 : Community Bank Leverage Ratio $ 191,336 14.09 % $ 122,184 9.00 % December 31, 2024 : Community Bank Leverage Ratio $ 188,827 13.61 % $ 124,879 9.00 % At December 31, 2025, the Company and the Bank met all the capital adequacy requirements to which they were subject. In addition, the Bank was “well capitalized” under the regulatory framework for prompt corrective action. Management believes that no conditions or events have occurred that would materially adversely change the Bank’s capital classifications. From time to time, we may need to raise additional capital to support the Bank’s further growth and to maintain the “well capitalized” status. Note 17 – Loan Commitments and Other Related Activities Some financial instruments, such as loan commitments, credit lines, letters of credit, and overdraft protection, are issued to meet customer financing needs. These are agreements to provide credit or to support the credit of others, as long as conditions established in the contract are met, and usually have expiration dates. Commitments may expire without being used. Off‑balance‑sheet risk for credit loss exists up to the face amount of these instruments, although material losses are not anticipated. The same credit policies are used to make such commitments as are used for loans, including obtaining collateral at exercise of the commitment. The contractual amounts of financial instruments with off‑balance‑sheet risk at year‑end were as follows: 2025 2024 (In thousands) Commitments to make loans $ 2,095 $ 6,201 Unfunded construction loans 19,253 38,486 Unused lines of credit – variable rates 3,050 3,934 Commitments to make loans are generally made for periods of 60 days or less. F-29 Table of Contents Note 18 – Parent Company Only Condensed Financial Information Condensed financial information of Broadway Financial Corporation follows: Condensed Balance Sheets December 31, 2025 2024 (In thousands) Assets Cash and cash equivalents $ 70,165 $ 73,172 Investment in bank subsidiary 187,152 205,744 Other assets 5,601 6,161 Total assets $ 262,918 $ 285,077 Liabilities and stockholders’ equity Accrued expenses and other liabilities $ 167 $ 104 Stockholders’ equity 262,751 284,973 Total liabilities and stockholders’ equity $ 262,918 $ 285,077 Condensed Statements of Income Years Ended December 31, 2025 2024 (In thousands) Interest income $ 260 $ 283 Interest expense – – Other expense ( 1,125 ) ( 988 ) Loss before income tax and undistributed subsidiary income ( 865 ) ( 705 ) Income tax benefits 235 209 Equity in undistributed subsidiary (loss) income ( 24,165 ) 2,425 Net (loss) income $ ( 24,795 ) $ 1,929 Condensed Statements of Cash Flows Years Ended December 31, 2025 2024 (In thousands) Cash flows from operating activities Net (loss) income $ ( 24,795 ) $ 1,929 Adjustments to reconcile net (loss) income to net cash used in operating activities: Equity in undistributed subsidiary loss (income) 24,165 ( 2,425 ) Stock awards expenses 625 593 Change in other assets ( 242 ) ( 2,927 ) Change in accrued expenses and other liabilities 63 ( 290 ) Net cash used in operating activities ( 184 ) ( 3,120 ) Cash flows from financing activities Dividends declared and paid- ECIP ( 3,000 ) ( 1,567 ) City First Bank Fund Manager II distribution ( 170 ) – Proceeds from repayment of ESOP loan 347 402 Net cash used in financing activities ( 2,823 ) ( 1,165 ) Net change in cash and cash equivalents ( 3,007 ) ( 4,285 ) Beginning cash and cash equivalents 73,172 77,457 Ending cash and cash equivalents $ 70,165 $ 73,172 F-30 Table of Contents Note 19 – (Loss) Earnings Per Common Share The factors used in the earnings per common share computation follow: 2025 2024 (In thousands, except share and per share) Net income attributable to Broadway Financial Corporation $ ( 24,795 ) $ 1,929 Less: Net income attributable to participating securities – ( 8 ) Less: Preferred stock dividends - ECIP ( 3,000 ) ( 1,567 ) Income available to common stockholders $ ( 27,795 ) $ 354 Weighted average common shares outstanding for basic earnings per common share 8,595,254 8,459,460 Add: Effects of unvested restricted stock awards – 179,200 Weighted average common shares outstanding for diluted earnings per common share 8,595,254 8,638,660 Earnings per common share - basic $ ( 3.23 ) $ 0.04 Earnings per common share - diluted $ ( 3.23 ) $ 0.04 Stock options for 12,500 shares of common stock for the years ended December 31, 2025 and 2024, were not considered in computing diluted earnings per common share because they were anti‑dilutive. Basic earnings per share of common stock is computed pursuant to the two-class method by dividing net loss available to common stockholders less dividends paid on participating securities (unvested shares of restricted common stock) and any undistributed loss attributable to participating securities by the weighted average common shares outstanding during the period. The weighted average common shares outstanding includes the weighted average number of shares of common stock outstanding less the weighted average number of unvested shares of restricted common stock. ESOP shares are considered outstanding for this calculation unless unearned. Diluted earnings per share of common stock includes the dilutive effect of unvested stock awards and additional potential common shares issuable under stock options. No unvested stock awards or potential common shares issuable under stock options were included in diluted earnings per share in either year. F-31