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FOR IMMEDIATE RELEASE
Broadway Financial Corporation Announces Results for 2nd Quarter 2019
LOS ANGELES, CA (BUSINESS WIRE) August 7, 2019 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 $135 thousand, or ($0.01) per diluted share, for the second quarter of 2019, compared to a net loss of $127 thousand, or $0.00 per diluted share, for the second quarter of 2018.
The increase in net loss during the second quarter of 2019 primarily resulted from an increase in interest expense of $561 thousand, which offset higher interest income of $451 thousand. Also, results during the second quarter of 2019 were impacted by higher compensation costs of $124 thousand and higher professional services costs of $52 thousand, which were more than offset by a loan loss provision recapture of $158 thousand and a decrease in marketing expense of $54 thousand.
For the six months ended June 30, 2019, the Company reported net income of $142 thousand, or $0.01 per share, compared to a net loss of $211 thousand, or ($0.01) per share for the six months ended June 30, 2018.
The increase in net income during the first half of 2019 was primarily due to a grant of $233 thousand from the U.S. Department of the Treasurys Community Development Financial Institution (CDFI) Fund, and a loan loss provision recapture of $348 thousand. These additional earnings were offset by a decrease of $71 thousand in net interest income and an increase of $217 thousand in non-interest expense, primarily due to an increase in professional fees and compensation costs, partially offset by decrease in marketing, REO, occupancy and office related expenses, as well as a lower provision for off balance sheet commitments during the first half of 2019. There were no loan loss provisions or recaptures during the first six months of 2018.
Chief Executive Officer, Wayne Bradshaw, commented, Results in the second quarter were impacted by the continuing challenges created by the difficult interest rate environment, which exacerbated the competitive conditions for both loan originations and acquisition and retention of deposits. Nonetheless, we remain committed to growing our interest earning asset base to achieve better economies of scale by originating high quality loans, primarily for multi-family residential properties in low to moderate income communities in Southern California. During the first half of the year we grew total assets by approximately 5%, primarily through loan growth.
Also, we continue to improve the quality of our assets; during the second quarter we completed the sale of our sole REO property and decreased our non-performing loans to just 0.19% of our total loans at June 30, 2019. The net result of these efforts is that the Bank decreased its non-performing assets by 58%, or over $1 million, since the end of 2018. As of June 30, 2019, Broadways non-performing assets were just $728 thousand, or 0.17% of the Companys total assets.
Also, I am pleased to report that we successfully had our CRA rating reaffirmed as Outstanding by the Banks primary regulator during the second quarter. This reaffirmation represents the 24th consecutive year that Broadway has received the highest CRA rating.
In addition, subsequent to the end of the second quarter we successfully sold $22.7 million of the loans held for sale at June 30 that will be reported in the Companys results for the third quarter of 2019. Despite the difficult rate environment, we have been able to consistently sell loans at a profit, which is a testimony to the quality of our loan originations.
The following information was filed by Broadway Financial Corp De (BYFC) on Wednesday, August 7, 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-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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