Please wait while we load the requested 10-Q report or click the link below:
FOR IMMEDIATE RELEASE
Broadway Financial Corporation Announces Results for 2nd Quarter 2018
LOS ANGELES, CA (BUSINESS WIRE) August 6, 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 $127 thousand, or $0.00 per diluted share, for the second quarter of 2018, compared to net income of $533 thousand, or $0.02 per diluted share, for the second quarter of 2017.
During the second quarter of 2018, our results were impacted by a decline of $430 thousand in net interest income due to lower average interest-earning assets, and a lower net interest margin compared to the second quarter of last year. The decrease in average interest-earning assets, which was the primary contributor to the decrease in net interest income during the quarter, resulted primarily from the sale of $101 million of performing multi-family loans over the past 18 months to maintain compliance with loan concentration guidelines set by the Banks primary regulator. During the second quarter, the Bank had available capacity to add loans to its portfolio and used that capacity to originate $41.8 million of new loans to replenish interest-earning assets. As a result, gains on loan sales decreased by $185 thousand in the second quarter of 2018, compared to the second quarter of 2017. In addition, results for the second quarter of 2017 included a favorable adjustment to earnings from the reversal of a liability of $700 thousand for deferred compensation, as well as recaptures of $300 thousand in loan loss provisions.
For the six months ended June 30, 2018, the Company reported a net loss of $211 thousand, or $0.01 per share, compared to net earnings of $1.8 million, or $0.07 per diluted share for the six months ended June 30, 2017.
During the first half of 2018 net interest income decreased by $735 thousand compared to the first half of 2017, primarily because of the sale of loans mentioned above, $97 million of which occurred in 2017. In addition, net income during the first six months of 2017 included recaptures of loan loss provisions of $650 thousand, and gains on loan sales of $223 thousand, as well as non-recurring income of $1.2 million from an insurance litigation settlement, and the reversal of the $700 thousand deferred compensation liability mentioned above. The Company did not have any loan loss provisions or recaptures during the first half of 2018, and reported total gains on loan sales of $11 thousand.
Chief Executive Officer, Wayne Bradshaw, commented, I am pleased to report that Broadway is on plan for 2018, and, I believe, approaching an inflection point for improved operating performance. As of the end of June the Bank had a Total Capital ratio of 19.28%, a Tier 1 Leverage ratio of almost 12% and no delinquencies in the entire loan portfolio. Moreover, over the past five and one-half years, we have originated over $550 million of new multi-family loans without experiencing any delinquencies, demonstrating that Broadway has established, what we believe are, best in class service and procedures for originating and administering multi-family loans. Based on our track record, I am optimistic that our efforts over the past year or so to obtain authorization to increase our capacity to hold multi-family loans, and develop platforms to offer other loan products that can leverage our existing customer base and relationships, will bear fruit in the near future so that we can increase our base of interest-earning assets, develop economies of scale, and improve operating efficiency. We are working diligently to put our capital to work and remain committed to addressing the unrelenting demand for affordable housing, particularly within our target market of low to moderate income communities in Southern California.
The following information was filed by Broadway Financial Corp De (BYFC) on Monday, August 6, 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.
View differences made from one quarter to another to evaluate Broadway Financial Corp De's financial trajectory
Compare this 10-Q Quarterly Report to its predecessor by reading our highlights to see what text and tables were
removed , and by Broadway Financial Corp De.