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FOR IMMEDIATE RELEASE
Broadway Financial Corporation Announces Profits for 4th Quarter and Calendar Year 2016
Loan Growth Exceeded 24% for 2016
LOS ANGELES, CA (BUSINESS WIRE) February 23, 2017 Broadway Financial Corporation (the Company) (NASDAQ Capital Market: BYFC), parent company of Broadway Federal Bank, f.s.b. (the Bank), today reported net income of $2.2 million, or $0.08 per diluted share, for the fourth quarter of 2016, compared to net income of $5.6 million, or $0.19 per diluted share for the fourth quarter of 2015.
For the year ended December 31, 2016, the Company reported net income of $3.5 million, or $0.12 per diluted share, compared to $9.1 million, or $0.31 per diluted share, for the year ended December 31, 2015.
Net income for the fourth quarter and calendar year 2016 include an income tax benefit of $2.2 million, which resulted from the reversal of the remaining valuation allowance on deferred tax assets, based on an analysis of the potential for full utilization of those assets. Also, results for the fourth quarter and calendar year 2016 were impacted by non-recurring professional fees totaling $369 thousand related to the repurchase of shares from the United States Department of the Treasury (the U.S. Treasury).
In contrast, net income for the corresponding periods of 2015 include an income tax benefit of $4.6 million, which resulted from a partial reversal of the valuation allowance on deferred tax assets. Results during 2015 also included $3.7 million in loan loss provision recaptures, compared to $550 thousand in recaptures during 2016. Furthermore, 2015 results also included $1.8 million in gains on the sale of $164.1 million in loans, which were sold to meet regulatory guidelines regarding loan concentration. There were no loan sales during 2016 and thus no gains on the sale of loans.
Excluding the unusual items mentioned above, earnings increased by $1.4 million during the fourth quarter of 2016 and $1.7 million during the year 2016, from the comparable periods during 2015, due to increases in net interest income and lower non-interest expense.
Net interest income (before loan loss provision recaptures) increased to $2.9 million during the fourth quarter of 2016 from $2.4 million during the fourth quarter 2015 and increased to $11.4 million during the year 2016 from $11.3 million during the year 2015.
Non-interest expense decreased by $1.1 million, or 27%, during the fourth quarter of 2016, compared to the fourth quarter of 2015, and decreased by $1.6 million, or 12%, during calendar 2016, compared to calendar 2015.
Chief Executive Officer, Wayne Bradshaw commented, We continue to focus on growth, profits, and value creation for our stockholders. Our strong loan quality has allowed us to obtain improved loan concentration limits from the Banks primary regulator, which in turn is providing opportunities to continue re-building our loan portfolio. We grew our loan portfolio by over 24% during the year, based on originations of $46.9 million during the fourth quarter and $137.7 million for the full year, and increased our net interest income by 20% during the fourth quarter over the comparable quarter in 2015. Moreover, we have been able to grow while improving the credit quality of our loan portfolio; at the end of 2016, we had less than $1.4 million in delinquent loans, no REO and all of our $2.9 million of non-accrual loans were current in their payments.
The following information was filed by Broadway Financial Corp De (BYFC) on Thursday, February 23, 2017 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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