Please wait while we load the requested 10-K report or click the link below:
FOR IMMEDIATE RELEASE
Broadway Financial Corporation Announces Results for
Fourth Quarter and Full Year 2018
LOS ANGELES, CA (BUSINESS WIRE) March 13, 2019 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 $275 thousand, or $0.01 per diluted share, for the fourth quarter of 2018 compared to a net loss of $399 thousand, or ($0.01) per diluted share, for the fourth quarter of 2017. Results for the fourth quarter of 2018 included a tax benefit of $208 thousand for low income tax credits. Results for the fourth quarter of 2017 included tax expense of $519 thousand to adjust the Companys deferred tax asset for the decrease in the federal corporate tax rate to 21% from 34% due to the enactment of the Tax Cuts and Jobs Act of 2017.
Pretax earnings for the fourth quarter of 2018 were $96 thousand compared to $244 thousand for the fourth quarter of 2017. Results for the fourth quarter of 2018 included an increase of $104 thousand in loan loss provision recapture and a decrease of $269 thousand in non-interest expense compared to the fourth quarter of 2017. These items were offset by lower net interest income of $161 thousand and lower gain on sale of loans of $127 thousand in the fourth quarter of 2018 compared to the fourth quarter of 2017. Also, the Bank received a grant of $227 thousand from the U.S. Department of the Treasurys Community Development Financial Institutions (CDFI) Fund during the fourth quarter of 2017, while no grants were received during the fourth quarter of 2018.
For the year ended December 31, 2018, the Company reported net income of $815 thousand, or $0.03 per diluted share, compared to $1.9 million, or $0.07 per diluted share for the year ended December 31, 2017. Pretax earnings were $871 thousand during calendar year 2018, compared to $3.7 million in 2017. The lower pretax earnings during 2018 were attributable to a decrease of $1.6 million in net interest income and a decrease of $1.7 million in non-interest income, partially offset by a decrease of $281 thousand in non-interest expense and an increase of $154 thousand in loan loss provision recapture. Non-interest income for 2017 included an insurance litigation settlement of $1.2 million and a higher gain on the sale of loans of $490 thousand. Non-interest expense decreased for the year 2018 compared to 2017 because 2017 expenses included costs of $214 thousand associated with the U.S. Treasurys sale of a portion of its holdings of the Companys shares. Also, professional services costs decreased by $63 thousand in 2018 compared to 2017.
Chief Executive Officer, Wayne Bradshaw, commented, I am pleased to announce that Broadway was profitable during the fourth quarter of 2018 and the full calendar year, despite a difficult interest rate environment that has compressed net interest margins for the banking industry. Furthermore, I am very pleased to report that the Bank had only one delinquent loan at year end, which had a balance of just $35 thousand.
As of the start of 2019, we have capacity to increase our loan portfolio by approximately 19% under our current regulatory loan concentration guidelines, which were increased during the final few months of the year. We continue to be focused on building our loan portfolio with new multi-family loans and non-multi-family commercial real estate loans, including construction loans, which typically generate superior margins to those earned from the Banks prime single-family residential loans. These types of loans should generate improved economics for the Company, as the increase in the Banks portfolio of more profitable loans
The following information was filed by Broadway Financial Corp De (BYFC) on Wednesday, March 13, 2019 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.
View differences made from one year to another to evaluate Broadway Financial Corp De's financial trajectory
Compare this 10-K Annual Report to its predecessor by reading our highlights to see what text and tables were
removed , and by Broadway Financial Corp De.