Management's Discussion and Analysis of Financial Condition and Results of
Operations ("MD&A") is intended to provide a reader of the financial statements
of Broadway Financial Corporation (the "Company," "us," "we," or "our,") with a
narrative from the perspective of our management on our financial condition,
results of operations, liquidity and certain other factors that may affect our
future results.  Our MD&A should be read in conjunction with the Consolidated
Financial Statements and related Notes included in Part I Item 1, "Consolidated
Financial Statements (Unaudited)" of this Quarterly Report on Form 10-Q and Item
8 of Part II, "Financial Statements and Supplementary Data" of our 2021 Form
10-K.  Certain statements herein are forward-looking statements within the
meaning of Section 21E of the U.S. Securities Exchange Act of 1934, as amended
(the "Exchange Act") and Section 27A of the U.S. Securities Act of 1933, as
amended that reflect our current views with respect to future events and
financial performance.  Forward-looking statements typically include words such
as "anticipate," "believe," "estimate," "expect," "project," "plan," "forecast,"
"intend," and other similar expressions.  These forward-looking statements are
subject to risks and uncertainties, which could cause actual future results to
differ materially from historical results or from those anticipated or implied
by such statements.  Readers should not place undue reliance on these
forward-looking statements, which speak only as of their dates or, if no date is
provided, then as of the date of this Form 10-Q.  We undertake no obligation to
update or revise any forward-looking statements, whether as a result of new
information, future events or otherwise, except to the extent required by law.

Critical Accounting Policies and Estimates



Critical accounting policies are those that involve significant judgments and
assessments by management, and which could potentially result in materially
different results under different assumptions and conditions. This discussion
highlights those accounting policies that management considers critical. All
accounting policies are important, however, and therefore you are encouraged to
review each of the policies included in Note 1 "Summary of Significant
Accounting Principles" of the Notes to Consolidated Financial Statements in our
2021 Form 10-K to gain a better understanding of how our financial performance
is measured and reported. Management has identified the Company's critical
accounting policies as follows:

Allowance for Loan Losses



The determination of the allowance for loan losses is considered critical due to
the high degree of judgment involved, the subjectivity of the underlying
assumptions used, and the potential for changes in the economic environment that
could result in material changes in the amount of the allowance for loan losses
considered necessary. The allowance is evaluated on a regular basis by
management and the Board of Directors and is based on a periodic review of the
collectability of the loans in light of historical experience, the nature and
size of the loan portfolio, adverse situations that may affect borrowers'
ability to repay, the estimated value of any underlying collateral, prevailing
economic conditions, and feedback from regulatory examinations.

Business Combinations



Business combinations are accounted for using the acquisition accounting method.
Under the acquisition method, the Company measures the identifiable assets
acquired, including identifiable intangible assets, and liabilities assumed in a
business combination at fair value on the acquisition date. Goodwill is
generally determined as the excess of the fair value of the consideration
transferred, plus the fair value of any noncontrolling interests in the
acquiree, over the fair value of the net assets acquired and liabilities assumed
as of the acquisition date. Changes to the acquisition date fair values of
assets acquired and liabilities assumed may be made as adjustments to goodwill
over a 12-month measurement period following the date of acquisition. Such
adjustments are attributable to additional information obtained related to fair
value estimates of the assets acquired and liabilities assumed.

Acquired Loans



Acquired loans that are not considered to be PCI loans are recognized at fair
value at the acquisition date, with the resulting credit and non-credit discount
or premium being amortized or accreted into interest income using the level
yield method. Acquired loans that in management's judgement have shown evidence
of deterioration in credit quality since origination are classified as PCI
loans. Factors that indicate a loan may have shown evidence of credit
deterioration include delinquency, downgrades in credit rating, non-accrual
status, and other negative factors identified by management at the time of
initial assessment. The Company estimates the amount and timing of expected cash
flows for each PCI loan, and the expected cash flows in excess of the allocated
fair value is recorded as interest income over the remaining life of the loan
(accretable yield). The excess of the loan's contractual principal and interest
over expected cash flows is not recorded (non-accretable difference). Over the
life of the PCI loan, expected cash flows continue to be estimated each quarter.
If the present value of expected cash flows decreases from the prior estimate, a
provision for loan losses is recorded and an allowance for loan losses is
established. If the present value of expected cash flows increases from the
prior estimate, the increase is recognized as part of future interest income.

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The estimates used to determine the fair values of non-PCI and PCI acquired loans can be complex and require significant judgment regarding items such as default rates, timing and amount of future cash flows, prepayment rates and other factors.

Goodwill and Intangible Assets

Goodwill and intangible assets acquired in a purchase business combination and
that are determined to have an indefinite useful life are not amortized, but
tested for impairment at least annually or more frequently if events and
circumstances exist that indicate the necessity for such impairment tests to be
performed. The Company has selected November 30th as the date to perform the
annual impairment test. Intangible assets with definite useful lives are
amortized over their estimated useful lives to their estimated residual values.
Goodwill is the only intangible asset with an indefinite life on the Company's
consolidated statement of financial condition.

Income Taxes



Deferred tax assets and liabilities are determined using the liability (or
balance sheet) method. Under this method, the net deferred tax asset or
liability is determined based on the tax effects of the temporary differences
between the book and tax bases of the various balance sheet assets and
liabilities and gives current recognition to changes in tax rates and laws. A
valuation allowance is established against deferred tax assets when, based upon
the available evidence including historical and projected taxable income, it is
more likely than not that some or all the deferred tax asset will not be
realized. In assessing the realization of deferred tax assets, management
evaluates both positive and negative evidence, including the existence of any
cumulative losses in the current year and the prior two years, the amount of
taxes paid in available carry­back years, forecasts of future income and
available tax planning strategies. This analysis is updated quarterly.

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 8 of the Notes to Consolidated
Financial Statements of this Quarterly Report on Form 10-Q. 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 items. Changes in assumptions or in market conditions could
significantly affect the estimates.

COVID-19 Pandemic Impact



The Company continues to monitor the impact of the lingering COVID-19 pandemic
on its operations.  To date, the Bank has not implemented layoffs or furloughs
of any employees because of the pandemic.

Although the Bank developed plans and policies for providing financial relief to
borrowers that may experience difficulties in meeting the terms of their loans,
as of March 31, 2022, none of its borrowers had requested loan modifications and
the Bank had no delinquencies related to COVID-19.

The Company participated in the Small Business Administration's ("SBA") Paycheck
Protection Program ("PPP") by way of its merger with CFBanc Corporation. The
Bank has originated $26.5 million in PPP since the merger. No PPP loans were
originated during the three months ended March 31, 2022 as the program ended in
June of 2021.

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Overview



The Company merged with CFBanc on April 1, 2021, with Broadway Financial
Corporation continuing as the surviving entity.  Immediately following the
CFBanc Merger, Broadway Federal Bank, f.s.b. merged with and into City First
Bank of D.C, National Association with City First Bank of D.C., National
Association continuing as the surviving entity (which concurrently changed its
name to City First Bank, National Association). Accordingly, results for the
first quarter of 2022 include the operations of Broadway Financial Corporation
and its subsidiary, City First Bank, National Association. Results for the three
months ended March 31, 2021 include the operations of Broadway Financial
Corporation and the results of Broadway Federal Bank, f.s.b., its former
subsidiary.

Total assets increased by $37.6 million during the first quarter ended March 31,
2022, primarily due to growth in cash and cash equivalents of $14.6 million,
growth in investment securities available-for-sale of $13.9 million, a net
increase in loans held for investment of $4.9 million, growth in other assets of
$3.5 million, and a net increase in the deferred tax asset of $2.2 million.
Total assets increased by $652 million compared to March 31, 2021, primarily
because of the assets, totaling $475 million, that were acquired in the Merger.

Total liabilities increased by $42.4 million to $994.8 million at March 31, 2022
from $952.4 million at December 31, 2021. The increase in total liabilities
primarily consisted of net increases in deposits of $51.7 million and net
increases in securities sold under agreements to repurchase of $4.0 million,
which outweighed a $13.0 million decrease in FHLB advances.

Net income for the first quarter of 2022 increased to $958 thousand compared to
a net loss of $3.5 million for the first quarter of 2021 primarily due to an
increase in net interest income before loan provision of $4.3 million due to
interest income from the acquired interest-earning assets of CFB and growth in
interest-earning assets since the Merger.  Non-interest expense decreased by
$2.7 million during the first quarter of 2022 compared to the first quarter of
2021, primarily because the results for the first quarter of 2021 included
non-recurring costs of $5.4 million related to the Merger, partially offset by
increases from including the operations of CFB in the results for the first
quarter of 2022 and higher data processing costs after the merger.

Net Interest Income

First Quarter of 2022 Compared to First Quarter of 2021



Net interest income before loan loss provision for the first quarter of 2022
totaled $7.2 million, representing an increase of $4.3 million over net interest
income before loan loss provision of $2.8 million for the first quarter of 2021.
The increase resulted from additional interest income, primarily growth of
$564.3 million in average interest-earning assets during the first quarter of
2022 compared to the first quarter of 2021 due to the acquisition of loans,
securities, and cash equivalents in the Merger on April 1, 2021.  Net interest
income in the first quarter of 2022 also benefited from a reduction in the
overall rates paid on interest-bearing liabilities of 48 basis points.

Interest income and fees on loans receivable increased by $3.7 million to $7.3
million for the first quarter of 2022, from $3.6 million for the first quarter
of 2021 due to an increase of $292.0 million in the average balance of loans
receivable, which increased interest income by $3.2 million, and an increase of
46 basis points in the average yield on loans, which increased interest income
by $455 thousand. The increase in the average balance of loans receivable was
primarily the result of the addition of $225.9 million of loans in the Merger,
as well as additional organic loan growth of the combined entity after the date
of the Merger. In addition, the increase in the average yield on loans
receivable in the first quarter of 2022 was primarily the result of higher
yields earned on the commercial loan portfolio acquired in the Merger.

Interest income on securities increased by $497 thousand for the first quarter
of 2022 to $553 thousand, compared to $56 thousand in the first quarter of
2021.  The increase in interest income on securities primarily resulted from
growth of $150.6 million in the average balance of securities, which resulted
from securities of $150.0 million acquired in the Merger.  The higher average
balance of securities increased interest income by $524 thousand.  This increase
was partially offset by the effects of a decrease of 78 basis points in the
average interest rate earned on securities, which reduced interest income by $27
thousand.

Other interest income increased by $45 thousand during the first quarter of 2022
compared to the first quarter of 2021 primarily due to an increase of $122.1
million in the average balance of interest-earning deposits and other short-term
investments, which increased interest income by $49 thousand.  This increase was
offset by a decrease of $4 thousand in the dividend income on FHLB and FRB stock
between the two periods.

Interest expense for the first quarter of 2022 decreased by $93 thousand
compared to the first quarter of 2021 due to a decrease of 48 basis points in
the Company's cost of interest-bearing liabilities.  The lower rates paid offset
the impact of $421.6 million in average interest-bearing liabilities assumed in
the Merger.

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Interest expense on deposits decreased by $33 thousand for the first quarter of
2022 compared to the first quarter of 2021.  The decrease was primarily
attributable to a decrease of 28 basis points in the average rate paid on
deposits, which caused interest expense on deposits to decrease by $316
thousand.  This decrease was partially offset by the effects of an increase of
$389.5 million in the average balance of deposits, primarily because of the
Merger, which increased interest expense by $283 thousand.

Interest expense on borrowings decreased by $60 thousand for the first quarter
of 2022, compared to the first quarter of 2021.  The decrease was attributable
to a decrease of 59 basis points in the average borrowing rate, which decreased
interest expense by $192 thousand, offset by an increase in average borrowings
of $32.1 million during the period, which increased interest expense by $132
thousand.  The increase in the average balance of borrowings was due to an
increase of $68.0 million in the average balance of short-term borrowings
(primarily, securities sold under agreements to repurchase that were assumed in
the Merger), offset by a decrease of $32.7 million in average borrowings from
the FHLB and a decrease of $3.3 million in the average balance of the Company's
junior subordinated debentures, which were paid off in the third quarter of
2021.

The net interest margin increased to 2.76% for the first quarter of 2022 from
2.40% for the first quarter of 2021 primarily due to an increase in the volume
of interest-earning assets (mainly due to an increase in the average balance of
loans receivable), the contribution of higher loan yields earned on the
commercial loan portfolio acquired in the Merger and a decrease in the average
rate paid on interest-bearing liabilities of 48 basis points.

                                                         For the three months ended
                                         March 31, 2022                                 March 31, 2021
                                                               Average                                     Average
                                                               Yield/        Average                       Yield/

(Dollars in Thousands) Average Balance Interest Cost 


 Balance        Interest        Cost
Assets
Interest-earning
assets:
Interest-earning
deposits                 $         220,266     $       84          0.15 %   $   98,183     $       35          0.14 %
Securities                         160,968            553          1.37 %       10,414             56          2.15 %
Loans receivable (1)               653,493          7,336          4.49 %      361,487          3,644          4.03 %
FRB and FHLB stock                   3,046             38          4.99 %        3,431             42          4.90 %
Total interest-earning
assets                           1,037,773     $    8,011          3.09 %      473,515     $    3,777          3.19 %
Non-interest-earning
assets                              74,542                                      11,064
Total assets             $       1,112,315                                  $  484,579

Liabilities and
Stockholders' Equity
Interest-bearing
liabilities:
Money market deposits    $         207,078     $      189          0.37 %   $   76,750     $       81          0.42 %
Passbook deposits                   66,825              8          0.05 %       64,044             57          0.36 %
NOW and other demand
deposits                           230,461             39          0.07 %       54,650              7          0.05 %
Certificate accounts               201,446            114          0.23 %      120,857            238          0.79 %
Total deposits                     705,810            350          0.20 %      316,301            383          0.48 %
FHLB advances                       77,849            342          1.76 %      110,500            527          1.91 %
Junior subordinated
debentures                               -              -          0.00 %        3,275             22          2.69 %
Other borrowings                    68,019            147          0.86 %            -              -          0.00 %
Total borrowings                   145,868            489          1.34 %      113,775            549          1.93 %
Total interest-bearing
liabilities                        851,678     $      839          0.39 %      430,076     $      932          0.87 %
Non-interest-bearing
liabilities                        121,912                                       5,832
Stockholders' equity               138,725                                      48,671
Total liabilities and
stockholders' equity     $       1,112,315                                  $  484,579

Net interest rate
spread (2)                                     $    7,172          2.70 %                  $    2,845          2.32 %
Net interest rate
margin (3)                                                         2.76 %                                      2.40 %
Ratio of
interest-earning
assets to
interest-bearing
liabilities                                                      121.85 %                                    110.10 %

(1) Amount is net of deferred loan fees, loan discounts and loans in process, and

includes deferred origination costs and loan premiums.

(2) Net interest rate spread represents the difference between the yield on

average interest-earning assets and the cost of average interest-bearing

liabilities.

(3) Net interest rate margin represents net interest income as a percentage of


    average interest-earning assets.



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Loan Loss Provision



The Company recorded a loan loss provision of $148 thousand for the first
quarter of  2022 due to growth in the loan portfolio. There was no loan loss
provision during the first quarter of 2021. No loan charge-offs were recorded
during the first quarter of 2022 or 2021. The Allowance for Loan and Lease
Losses ("ALLL") increased to $3.5 million as of March 31, 2022 compared to $3.4
million as of December 31, 2021.

Non-interest Income



Non-interest income for the first quarter of 2022 totaled $280 thousand,
compared to $123 thousand for the first quarter of 2021.  The increase in
non-interest income was primarily due to fees earned from the remaining  New
Market Tax Credit ventures on the books of City First Bank and an increase in
ATM exchange fees.

Non-interest Expense

Total non-interest expense was $6.0 million for the first quarter of 2022,
compared to $8.6 million for the first quarter of 2021.  The decrease in
non-interest expense was primarily due to non-recurring compensation costs and
professional services fees associated with the CFBanc merger on April 1, 2021,
partially offset by higher information services costs.  Compensation costs and
professional services fees decreased by $1.8 million and $1.6 million,
respectively, during the first quarter of 2022 compared to the first quarter of
2021, while information services costs increased by $624 thousand.  In addition,
during the first quarter of 2022 the Company recorded $109 thousand of expense
to amortize the core deposit intangible asset that was recorded in connection
with the Merger.

Income Tax Expense or Benefit



Income tax expense or benefit is computed by applying the statutory federal
income tax rate of 21%.  State taxes are recorded at the State of California tax
rate and apportioned based on an allocation schedule to reflect that a portion
of the Bank's operations are conducted in the Washington, D.C. area.  The
Company recorded income tax expense of $363 thousand during the first quarter of
2022, representing an effective rate of 27.0%, and a tax benefit of $2.2 million
during the first quarter of 2021, representing an effective tax rate of 38.4%.

Financial Condition

Total Assets

Total assets increased by $37.6 million to $1131 billion at March 31, 2022 from
$1.094 billion million at December 31, 2021, primarily due to growth in cash and
cash equivalents of $14.6 million, growth in investment securities
available-for-sale of $13.9 million,  a net increase in loans held for
investment of $4.9 million, growth in other assets of $3.5 million and a net
increase in the deferred tax asset of $2.2 million.

Securities Available-For-Sale



Securities available-for-sale totaled $170.3 million at March 31, 2022, compared
with $156.4 million at December 31, 2021. The $13.9 million increase in
securities available-for-sale during the three months ended March 31, 2022 was
primarily due to additional purchases of securities of $26.9 million. These
increases were partially offset by net amortizations and paydowns of investment
securities of $4.7 million.

Loans Receivable

Loans receivable increased by $4.9 million during the first quarter of 2022
primarily due to loan originations in excess of payoffs. The Bank originated
$41.5 million multi-family loans, $2.9 million of commercial real estate loans,
$9.5 million of commercial loans and $756 thousand in construction loans. Loan
advances on pre-existing construction loans totaled $6.5 million. Loan payoffs
and repayments totaled $56.9 million during the first quarter of 2022, of which
$33 million were PPP loans.

 Allowance for Loan Losses

As a smaller reporting  company as defined by the SEC, the Company is not
required to adopt the CECL accounting standard until 2023; consequently, the
Bank's ALLL is based on probable incurred losses at the date of the consolidated
statement of financial position, rather than projections of future economic
conditions over the life of the loans.  In determining the adequacy of the ALLL
within the context of the current uncertainties posed by the COVID-19 Pandemic,
management has considered the historical and current performance of the
Company's portfolio, as well as various measures of the quality and safety of
the portfolio, such as debt servicing and loan-to-value ratios.  Management is
continuing to monitor the loan portfolio and regularly communicating with
borrowers to determine the continuing adequacy of the ALLL.

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We record a provision for loan losses as a charge to earnings, when necessary,
in order to maintain the ALLL at a level sufficient, in management's judgment,
to absorb probable incurred losses in the loan portfolio.  At least quarterly we
assess the overall quality of the loan portfolio and general economic trends in
the local markets in which we operate.  The determination of the appropriate
level for the allowance is based on these reviews, considering such factors as
historical loss experience for each type of loan, the size and composition of
our loan portfolio, the levels and composition of our loan delinquencies,
non-performing loans and net loan charge-offs, the value of underlying
collateral on problem loans, regulatory policies, general economic conditions,
and other factors related to the collectability of loans in the portfolio.

The ALLL was $3.5 million or 0.54% of gross loans held for investment at March
31, 2022, compared to $3.4 million, or 0.52% of gross loans held for investment,
at December 31, 2021.  The increase in the dollar amount of ALLL during the
first quarter of  2022 was the result of additional loan loss provisions due to
loan growth during the period.

As of March 31, 2022, loan delinquencies totaled $2.9 million, compared to $2.4
million at December 31, 2021.  No loan was greater than 90 days delinquent.
There was one commercial real estate loan that was 30 days delinquent as of
March 31, 2022 and one commercial real estate loan to a different borrower that
was 84 days delinquent as of December 31, 2021.

Non-performing loans (NPLs) consist of delinquent loans that are 90 days or more
past due and other loans, including troubled debt restructurings that do not
qualify for accrual status.  At March 31, 2022, NPLs totaled $653 thousand,
compared to $684 thousand at December 31, 2021.  The decrease of $78 thousand in
NPLs during the three months ended March 31, 2022 was due to loan repayments.
The Bank did not have any real estate owned from foreclosures (REO) at March 31,
2022 or December 31, 2021.

In connection with our review of the adequacy of our ALLL, we track the amount
and percentage of our NPLs that are paying currently, but nonetheless must be
classified as NPL for reasons unrelated to payments, such as lack of current
financial information and an insufficient period of satisfactory performance.
As of March 31, 2022 and December 31, 2022, all our non-performing loans were
current in their payments.  Also, in determining the ALLL, we evaluate the ratio
of the ALLL to NPLs, which was 541.96% at March 31, 2022 compared to 495.8% at
December 31, 2021.

When reviewing the adequacy of the ALLL, we also consider the impact of
charge-offs, including the changes and trends in loan charge-offs.  There have
been no loan charge-offs since 2015.  In determining charge-offs, we update our
estimates of collateral values on NPLs by obtaining new appraisals at least
every twelve months.  If the estimated fair value of the loan collateral less
estimated selling costs is less than the recorded investment in the loan, a
charge-off for the difference is recorded to reduce the loan to its estimated
fair value, less estimated selling costs.  Therefore, certain losses inherent in
our total NPLs are recognized periodically through charge-offs.  The impact of
updating these estimates of collateral value and recognizing any required
charge-offs is to increase charge-offs and reduce the ALLL required on these
loans.

There were no recoveries or charge-offs recorded during the first quarter of 2022 or 2021.



Impaired loans at March 31, 2022 were $2.2 million, compared to $2.3 million at
December 31, 2021.  The  decrease of $52 thousand in impaired loans during the
first quarter of  2022 was primarily due to loan repayments.  Specific reserves
for impaired loans were $7 thousand, or 0.31% of the aggregate impaired loan
amount at March 31, 2022, compared to $7 thousand, or 0.30% of the aggregate
impaired loan amount at December 31, 2021.

On March 27, 2020, the Coronavirus Aid Relief and Economic Security Act ("CARES
Act") was signed into law by Congress. The CARES Act provides financial
institutions, under specific circumstances, the opportunity to temporarily
suspend certain requirements under generally accepted accounting principles
related to Troubled Debt Restructurings ("TDR's") for a limited period of time
to account for the effects of COVID-19.  In March 2020, a joint statement was
issued by federal and state regulatory agencies, after consultation with the
FASB, to clarify that short-term loan modifications, such as payment deferrals,
fee waivers, extensions of repayment terms or other insignificant payment
delays, are not TDRs if made on a good-faith basis in response to COVID-19 to
borrowers who were current prior to any relief. Under this guidance, three
months or less is provided as an example of short-term, and current is defined
as less than 30 days past due at the time the modification program is
implemented.  The guidance also provides that these modified loans generally
will not be classified as non-accrual loans during the term of the modification.

The Bank has a loan modification program for the effects of COVID-19 on its borrowers. At the date of this filing, two borrowers have requested applications, but no applications for loan modifications have been formally submitted. Both borrowers were current at the time the modification program was implemented. To date, no modifications have been granted.



We believe that the ALLL is adequate to cover probable incurred losses in the
loan portfolio as of March 31, 2022, but because of the uncertainties posed by
the COVID-19 Pandemic and other economic uncertainties, there can be no
assurance that actual losses will not exceed the estimated amounts.  In
addition, the OCC and the Federal Deposit Insurance Corporation ("FDIC")
periodically review the ALLL as an integral part of their examination process.
These agencies may require an increase in the ALLL based on their judgments of
the information available to them at the time of their examinations.

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Goodwill and Intangible Assets



As a result of the Merger, the Company recorded $26.0 million of goodwill and
$3.3 million of core deposit intangible assets. Goodwill and intangible assets
acquired in a purchase business combination and that are determined to have an
indefinite useful life are not amortized, but are tested for impairment at least
annually or more frequently if events and circumstances exist that indicate the
necessity for such impairment tests to be performed.

Goodwill decreased by $138 thousand from $26.0 million to $25.9 million due to a
recalculation of deferred taxes on the assets and liabilities acquired as of the
merger date.

The core deposit intangible asset is 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, with 9 years remaining as of March 31,
2022. During the three months ended March 31, 2022, the Company recorded $109
thousand of amortization expense related to the core deposit intangible.

No impairment charges were recorded during the three months ended March 31, 2022 related to goodwill or the core deposit intangible.

Total Liabilities

Total liabilities increased by $42.4 million to $994.8 million at March 31, 2022 from $952.4 million at December 31, 2021, largely due to growth in deposits.

Deposits



Deposits increased by $51.6 million to $839.7 million at March 31, 2022 from
$788.1 million at December 31, 2021, which consisted of increases of $76.0
million in ICS deposits (ICS deposits are the Bank's own money market accounts
in excess of FDIC  insured limits whereby the Bank makes reciprocal arrangements
for insurance with other banks), $6.4 million in CDARS deposits (CDARS deposits
are similar to ICS deposits, but involve certificates of deposit instead of
money market accounts), and $1.3 million in other certificates of deposit
accounts.  The above increases in deposits were offset by a decrease of $32.1
million in liquid deposits (NOW, demand, money market, and passbook accounts).
Five customer relationships accounted for approximately 26% of our deposits at
March 31, 2022. We expect to maintain these relationships for the foreseeable
future.

Borrowings

Total borrowings at March 31, 2022 consisted of advances to the Bank from the
FHLB of $73.0 million, repurchase agreements of $56.0 million, and borrowings
associated with our Qualified Active Low-Income Business lending activities of
$14.0 million compared to advances to the Bank from the FHLB of $86.0 million,
repurchase agreements of $52.0 million, and borrowings associated with our
Qualified Active Low-Income Business lending activities of $14.0 million as of
December 31, 2021.

Balances of outstanding FHLB advances decreased to $73.0 million at March 31,
2022, compared to $86.0 million at December 31, 2021 due to the payoff of $13.0
million in advances that matured during the year.  The weighted average rate on
FHLB advances decreased to 1.66% at March 31, 2022, compared to 1.85% at
December 31, 2021 due to the maturity of higher rate advances.

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 Banks's
consolidated balance sheets, while the securities underlying the repurchase
agreements remain in the respective investment securities available-for-sale
accounts. In other words, there is no offsetting or netting of the investment
securities assets with the repurchase agreement liabilities. The outstanding
balance of these borrowings totaled $59.0 million and $52.0 million as of March
31, 2022 and December 31, 2021, respectively, and the interest rate was 0.10%
during both periods. These agreements mature on a daily basis. As of March 31,
2022, securities with a market value of $61.9 million were pledged as collateral
for securities sold under agreements to repurchase and included $22.3 million of
U.S. Government Agency securities, $33.5 million of mortgage-backed securities,
$4.1 million of federal agency CMO and $2.0 million of SBA Pool securities. The
market value of securities pledged totaled $53.2 million as of December 31, 2021
and included $13.3 million of U.S. Government Agency securities and $39.9
million of mortgage-backed securities.

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One relationship accounted for 74% of our balance of securities sold under agreements to repurchase as of March 31, 2022. We expect to maintain this relationship for the foreseeable future.



In connection with the New Market Tax Credit activities of the Bank, CFC 45 is a
partnership whose members include CFNMA and City First New Markets Fund II, LLC.
This CDE acts in effect as a pass-through for a Merrill Lynch allocation
totaling $14.0 million that needed to be deployed. In December 2015, Merrill
Lynch made a $14.0 million non-recourse loan to CFC 45, whereby CFC 45 passed
that loan through to a QALICB. The loan to the QALICB is secured by a Leasehold
Deed of Trust that, due to the pass-through, non-recourse structure, is
operationally and ultimately for the benefit of Merrill Lynch rather than CFC
45. Debt service payments received by CFC 45 from the QALICB are passed through
to Merrill Lynch in return for which CFC 45 receives a servicing fee. The
financial statements of CFC 45 are consolidated with those of the Bank and the
Company.

Stockholders' Equity

Stockholders' equity was $136.2 million, or 12.04% of Broadway's total assets,
at March 31, 2022, compared to $141.0 million or 12.89% of Broadway's total
assets, at December 31, 2021.  The decrease in total stockholders' equity was
primarily due to an increase of $5.7 million in unrealized loss on
available-for-sale securities, net of taxes, which resulted from increases in
market interest rates that adversely affected the value of the securities
portfolio during the first quarter of 2022.  There was no deterioration in the
credit quality of the investment portfolio during the first quarter of 2022.

At March 31, 2022, CBLR was 9.45% compared to 9.32% as of December 31, 2021. The increase in CBLR was due to growth in the Bank's net earnings.



During the first quarter of 2022 the Company completed the exchange of all the
Series A Fixed Rate Cumulative Redeemable Preferred Stock, with an aggregate
liquidation value of $3 million, plus accrued dividends, for 1,193,317 shares of
Class A Common Stock at an exchange price of $2.51 per share of Class A Common
Stock.  In addition, during the quarter the Company issued 542,449 shares of
Class A Common Stock to directors, executive officers, and certain employees,
including 495,262 shares of restricted stock to executive officers and certain
employees, which vest over periods ranging from 36 months to 60 months, and
47,187 shares of unrestricted stock to directors which vested immediately.

The Company's book value per share was $1.85 per share as of March 31, 2022
compared to $1.92 per share as of December 31, 2021. The decrease in book value
per share during the first quarter of 2022 was primarily due to an increase in
unrealized losses on available for sale securities.

Tangible book value per common share is a non-GAAP measurement that excludes
goodwill and the net unamortized core deposit intangible asset, which were both
originally recorded in connection with the Merger.  The Company uses this
non-GAAP financial measure to provide supplemental information regarding the
Company's financial condition and operational performance. A reconciliation
between book value and tangible book value per common share is shown as follows:

                                                       Common
                                                       Equity           Shares          Per Share
                                                       Capital        Outstanding         Amount
                                                                 (Dollars in thousands)

March 31, 2022:
Common book value                                    $   136,213        73,504,185     $       1.85
Less:
Goodwill                                                  25,858
Net unamortized core deposit intangible                    2,827
Tangible book value                                  $   107,541        73,504,185     $       1.46

December 31, 2021:
Common book value                                    $   138,000        71,768,419     $       1.92
Less:
Goodwill                                                  25,996
Net unamortized core deposit intangible                    2,936
Tangible book value                                  $   109,068        71,768,419     $       1.52



Liquidity

The objective of liquidity management is to ensure that we have the continuing
ability to fund operations and meet our obligations on a timely and
cost-effective basis.  The Bank's sources of funds include deposits, advances
from the FHLB, other borrowings, proceeds from the sale of loans and investment
securities, and payments of principal and interest on loans and investment
securities.  The Bank is currently approved by the FHLB of Atlanta to borrow up
to 25% of total assets to the extent the Bank provides qualifying collateral and
holds sufficient FHLB stock.  This approved limit and collateral requirement
would have permitted the Bank to borrow an additional $13.6 million at March 31,
2022 based on pledged collateral.  In addition, the Bank had additional lines of
credit of $11.0 million with other financial institutions as of that date.

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The Bank's primary uses of funds include withdrawals of and interest payments on
deposits, originations of loans, purchases of investment securities, and the
payment of operating expenses.  Also, when the Bank has more funds than required
for reserve requirements or short-term liquidity needs, the Bank invests in
federal funds with the Federal Reserve Bank or in money market accounts with
other financial institutions.  The Bank's liquid assets at March 31, 2022
consisted of $246.1 million in cash and cash equivalents and $82.5 million in
securities available-for-sale that were not pledged, compared to $231.5 million
in cash and cash equivalents and $52.4 million in securities available-for-sale
that were not pledged at December 31, 2021.  Currently, we believe that the Bank
has sufficient liquidity to support growth over the foreseeable future. The
increase in liquid assets during the first quarter of 2022 resulted from an
increase in deposits.

The Company's liquidity, separate from the Bank, is based primarily on the
proceeds from financing transactions, such as the private placements completed
in August 2013, October 2014, December 2016, and April 2021 and dividends
received from the Bank in 2021 and 2020.  The Bank is currently under no
prohibition to pay dividends, but is subject to restrictions as to the amount of
the dividends based on normal regulatory guidelines.

On a consolidated basis, the Company recorded net cash outflows from operating
activities of $1.8 million during the three months ended March 31, 2022,
compared to consolidated net cash outflows from operating activities of $2.1
million during the three months ended March 31, 2021.  Net cash inflows from
operating activities during the three months ended March 31, 2022 were primarily
attributable increases in other assets, whereas net cash outflows from operating
activities for the three months ended March 31, 2021 were primarily due to
reductions in deferred tax assets and other assets, offset by an increase in
accrued expenses and other liabilities.

The Company recorded consolidated net cash outflows from investing activities of
$26.3 million during the three months ended March 31, 2022, compared to
consolidated net cash outflows from investing activities of $1.9 million during
the three months ended March 31, 2021.  Net cash inflows from investing
activities during the three months ended March 31, 2022 were primarily due to
purchases of investment securities of $26.9 million. In comparison, cash
outflows from investing activities million during the three months ended March
31, 2021 were primarily due to principal payments on loans receivable held for
investment, offset by funds used to originate new loans.

The Company recorded consolidated net cash inflows from financing activities of
$42.7 million during the three months ended March 31, 2022, compared to
consolidated net cash outflows from financing activities of $4.0 million during
the three months ended March 31, 2021.  Net cash inflows from financing
activities during the three months ended March 31, 2022 were primarily
attributable to a net increase in deposits of $51.7 million and a net increase
of $4.0 million in securities sold under agreements to repurchase, net of
repayments of FHLB advances of $13.0 million.  During the three months ended
March 31, 2021, net cash outflows from financing activities were primarily due
to a $3.3 million decrease in deposit balances.

Capital Resources and Regulatory Capital



The Bank is subject to various regulatory capital requirements administered by
the federal banking agencies. Failure to meet minimum capital requirements can
initiate certain mandatory and possible additional discretionary, actions by the
regulators that, if undertaken, could have a direct material effect on the
Company's financial statements.  Under capital adequacy guidelines and the
regulatory framework for prompt corrective action, the Bank must meet specific
capital guidelines that involve quantitative measures of the Bank's assets,
liabilities, and certain off-balance sheet items as calculated under regulatory
accounting practices. The Bank's capital amounts and classifications are also
subject to qualitative judgments by the regulators about components,
risk-weightings, and other factors. As of March 31, 2022 and December 31, 2021,
the Bank exceeded all capital adequacy requirements to which it is subject and
meets the qualifications to be considered "well capitalized." (See Note 11 -
Regulatory Matters.)

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