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FOR IMMEDIATE RELEASE
Broadway Financial Corporation Announces Increased Profits for 3rd Quarter 2018
LOS ANGELES, CA (BUSINESS WIRE) November 6, 2018 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 $751 thousand, or $0.03 per diluted share, for the third quarter of 2018, compared to net income of $503 thousand, or $0.02 per diluted share, for the third quarter of 2017.
The higher net income during the third quarter of 2018 compared to the third quarter of 2017 primarily resulted from an increase of $700 thousand in loan loss provision recapture, receipt of a grant for $233 thousand from the U.S. Department of the Treasurys Community Development Financial Institutions (CDFI) Fund, and a reduction of $256 thousand in non-interest expense. The increase in net income was partially offset by a decrease of $735 thousand in net interest income and a decrease of $151 thousand in gain on sale of loans.
For the nine months ended September 30, 2018, the Company reported net income of $540 thousand, or $0.02 per diluted share, compared to $2.3 million, or $0.08 per diluted share, for the nine months ended September 30, 2017.
The decrease in net income for the nine months ended September 30, 2018 compared to the nine months ended September 30, 2017 was primarily due to a decrease of $1.3 million in non-interest income, which resulted from an insurance settlement of $1.2 million that was received during 2017, a decrease of $1.5 million in net interest income, and a decrease of $363 thousand in gain on sale of loans. These decreases were offset in part by the grant for $233 thousand that was received from the CDFI Fund in the third quarter of 2018 and an increase of $50 thousand in loan loss provision recapture compared to the prior year.
Chief Executive Officer, Wayne Bradshaw, commented, I am pleased to announce that Broadway reported positive earnings for the third quarter, and that we made important progress in executing our plan. Specifically, at the end of the third quarter the Banks regulator did not object to our request to increase the loan concentration limits for the Banks multi-family loans and commercial real estate loans, which will allow Broadway to significantly increase its portfolio of loans held for investment. This increase in concentration limits was made possible by the dedication and ongoing commitment of our team to create and implement best in class policies, procedures, and practices for originating and monitoring loans, and will help Broadway in its pursuit of economies of scale and improved operating efficiency.
During 2018 we have been originating new multi-family loans at rates that are more attractive than the originations that we generated over the prior two years, and generally higher than the rates that can be obtained by underwriting or purchasing prime single-family residential loans. We expect those trends to continue as we expand our portfolio of new multi-family loans in the fourth quarter and beyond. Also, we expect to augment the growth in the Banks portfolio of multi-family loans by building a pipeline of construction and commercial real estate loans, which will leverage our existing customer base and relationships. These types of loans generally yield higher rates of interest than single-family or multi-family loans. We expect these efforts will result in completed loan originations starting in early 2019; however, we will continue to maintain our credit standards as we expand and seek to improve the overall yield of our interest earning assets. Over the past five and one-half years, Broadway has originated over $570 million of new multi-family loans
The following information was filed by Broadway Financial Corp De (BYFC) on Tuesday, November 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.
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