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FOR IMMEDIATE RELEASE
Broadway Financial Corporation Reports Net Loss for 4th Quarter and Year 2011
LOS ANGELES, CA (BUSINESS WIRE) March 29, 2012 Broadway Financial Corporation (the Company) (NASDAQ Capital Market: BYFC), parent company of Broadway Federal Bank, f.s.b. (the Bank), today reported net loss of ($132) thousand, or ($0.24) per diluted common share, for the fourth quarter of 2011, compared to net earnings of $237 thousand, or ($0.03) loss per diluted common share, for the fourth quarter of 2010. The decrease from net earnings to net loss primarily reflected lower net interest income, lower non-interest income and higher non-interest expense which were partially offset by lower provision for loan losses.
For the year ended December 31, 2011, the Company reported a net loss of ($9.5) million, or ($6.10) per diluted common share compared to net earnings of $1.9 million, or $0.44 per diluted common share for the year ended December 31, 2010. The decrease from net earnings to net loss primarily reflected higher provisions for losses, lower net interest income, lower non-interest income and higher non-interest expense.
Chairman, Paul C. Hudson stated, Asset quality has improved in each of the past three consecutive quarters, which is a significant indicator of future profitability. Chief Executive Officer, Wayne Kent Bradshaw added, Bank performance trends are beginning to show positive movement and management is focused on increasing capital ratios while continuing to manage the reduction of problem assets.
Fourth Quarter 2011 Earnings Summary
For the quarter ended December 31, 2011, our net interest income before provision for loan losses was $4.0 million, which represented a decrease of $912 thousand, or 19%, from the fourth quarter of 2010. The decrease was primarily attributable to a decrease of $82.4 million in average interest-earning assets, combined with a 5 basis point decrease in net interest margin from 3.87% in the fourth quarter of 2010 to 3.82% in the fourth quarter of 2011. The decline in interest-earning assets reflects our strategy throughout the year to maintain our capital ratios above the required regulatory thresholds and strengthen our liquidity and deposit base, in part by shrinking total assets and reducing both potential problem loans and non-performing assets.
Non-interest income for the quarter ended December 31, 2011 totaled $219 thousand compared to $953 thousand for the fourth quarter of 2010. The $734 thousand decrease from the fourth quarter of 2010 was primarily due to a $600 thousand financial assistance award received in the fourth quarter of 2010 from the U.S. Department of the Treasurys Community Development Financial Institutions (CDFI) Fund and a $114 thousand net gain on sales of loans in the fourth quarter of 2010.
Non-interest expense for the quarter ended December 31, 2011 totaled $4.1 million, compared to $3.5 million for the fourth quarter of 2010. The $586 thousand increase from the fourth quarter of 2010 was primarily due to a $527 thousand increase in other expense, resulting from increases in investment amortization expense and REO expenses. Additionally, compensation and benefits expense increased $325 thousand in the fourth quarter of 2011 as the year ago quarter included a $370 thousand reversal of bonus expense. These increases in non-interest expense were partially offset by a $112 thousand decrease in FDIC insurance premium expense and a $139 thousand decrease in professional services expense.
Income tax expense totaled $75 thousand for the fourth quarter of 2011 compared to $208 thousand for the same period in 2010. For the year 2011 and 2010, income tax expense was $1.8 million and $1.3 million, respectively. The effective tax rates for the quarter and year ended December 31, 2011 were (131.58%) and
The following information was filed by Broadway Financial Corp De (BYFC) on Thursday, March 29, 2012 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.
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