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FOR IMMEDIATE RELEASE
Broadway Financial Corporation Announces Results for 1st Quarter 2018
LOS ANGELES, CA (BUSINESS WIRE) April 30, 2018 Broadway Financial Corporation (the Company) (NASDAQ Capital Market: BYFC), parent company of Broadway Federal Bank, f.s.b. (the Bank), today reported a net loss of ($84) thousand, or ($0.00) per diluted share, for the first quarter of 2018, compared to net income of $1.2 million, or $0.05 per diluted share, for the first quarter of 2017.
The lower earnings during the first quarter of 2018 compared to the first quarter of 2017 primarily resulted from a decrease of $1.2 million in non-interest income as the prior years quarter included an insurance litigation settlement of $1.2 million. In addition, in the first quarter of 2017 the Companys reported income was enhanced by a loan loss provision recapture of $350 thousand. During the first quarter of 2018, the Bank did not report any loan loss provision or recapture.
Chief Executive Officer, Wayne Bradshaw, commented, During the first quarter, we continued executing the plan that we started in 2017 to improve our business model by diversifying our loan mix while growing our loan portfolio in 2018 and beyond. That plan required extensive loans sales in 2017 of almost $100 million to maintain compliance with the regulatory loan concentration guidelines applicable to the Bank, and adversely impacted our ability to generate profits in the first quarter, particularly given the relatively flat yield curve that has squeezed interest margins. Nonetheless, we met our budget for the first quarter, and positioned the Company to resume growth and profits. We start the second quarter with capacity to add more multi-family loans to our portfolio and have already rebuilt a pipeline of new potential originations that should return the Bank to a level of monthly loan originations consistent with our performance over the past few years. Those efforts are being enhanced by our marketing of complementary loan products to our customer base, such as construction loans and owner-occupied commercial real estate loans, which will diversify our loan mix and should improve the overall yield of Broadways loan portfolio. Despite the pause in profits during the first quarter, we continued to improve the strength of Broadways capital base and the quality of the Banks loan portfolio, while ensuring that the Bank maintains compliance with the full gamut of regulatory guidelines. I am pleased to report that the Banks Total Capital Ratio increased to 20.23% at the end of the first quarter, and the Banks delinquencies decreased to approximately $100 thousand, or 0.03% of total loans.
I wish to thank again our team for their dedication and tireless efforts to build value, and Broadways stockholders for their continuing support of our mission and business plans.
Net Interest Income
For the first quarter of 2018, net interest income decreased by $305 thousand to $2.8 million from $3.1 million for the same period a year ago, primarily because of a decrease of $29.7 million in average interest-earning assets, combined with a decrease of 9 basis points in the net interest margin. The decline in average interest-earning assets consisted of a decrease of $39.7 million in the average balance of loans receivable compared to the prior years first quarter, which resulted from the sale of multi-family loans throughout 2017 to maintain compliance with regulatory loan concentration guidelines and was partially offset by an increase of $10.0 million in securities and other interest-earning assets.
The following information was filed by Broadway Financial Corp De (BYFC) on Monday, April 30, 2018 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-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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