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Broadway Financial Corporation Reports 49% Increase In First Quarter Net Earnings

Shareholders, analysts and others seeking information about the Company are invited to write to: Broadway Financial Corporation, Investor Relations, 4800 Wilshire Blvd., Los Angeles, CA 90010, or visit our website at www.broadwayfederalbank.com.

BROADWAY FINANCIAL CORPORATION
AND SUBSIDIARIES
Consolidated Balance Sheets
(Dollars in thousands)
(Unaudited)
       
March 31, December 31,
2010 2009
ASSETS
Cash $ 4,879 $ 7,440
Federal funds sold   12,565     -  
Cash and cash equivalents 17,444 7,440
 
Securities available for sale, at fair value 13,769 14,961
Securities held to maturity 15,149 16,285
Loans receivable held for sale, net 19,321 20,940
Loans receivable, net of allowance of $20,110 and $20,460 435,067 432,640
Accrued interest receivable 2,456 2,419
Federal Home Loan Bank (FHLB) stock, at cost 4,536 4,305
Office properties and equipment, net 5,308 5,363
Real estate owned (REO) 2,213 2,072
Bank owned life insurance 2,442 2,418
Deferred tax assets 5,266 4,986
Other assets   5,903     7,217  
Total assets $ 528,874   $ 521,046  
 
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits $ 392,747 $ 385,488
Federal Home Loan Bank advances 88,000 91,600
Junior subordinated debentures 6,000 6,000
Other borrowings 5,000 -
Advance payments by borrowers for taxes and insurance - 372
Other liabilities   4,738     6,071  
Total liabilities   496,485     489,531  
 
Stockholders' Equity:
Senior preferred, cumulative and non-voting stock, $1,000 par value, authorized, issued
and outstanding 9,000 shares of Series D at March 31, 2010 and December 31, 2009;
liquidation preference of $9,000 at March 31, 2010 and December 31, 2009 8,963 8,963
Senior preferred, cumulative and non-voting stock, $1,000 par value, authorized, issued
and outstanding 6,000 shares of Series E at March 31, 2010 and December 31, 2009;
liquidation preference of $6,000 at March 31, 2010 and December 31, 2009 5,974 5,974
Preferred, non-cumulative and non-voting stock, $.01 par value, authorized 1,000,000
shares; issued and outstanding 55,199 shares of Series A, 100,000 shares of Series B
and 76,950 shares of Series C at March 31, 2010 and December 31, 2009; liquidation
preference of $552 for Series A, $1,000 for Series B and $1,000 for Series C at
March 31, 2010 and December 31, 2009 2 2
Preferred stock discount (1,662 ) (1,756 )
Common stock, $.01 par value, authorized 3,000,000 shares; issued 2,013,942 shares at
March 31, 2010 and December 31, 2009; outstanding 1,743,365 shares at March 31, 2010
and December 31, 2009 20 20
Additional paid-in capital 14,330 14,273
Retained earnings-substantially restricted 7,992 7,322
Accumulated other comprehensive income, net of taxes of $154 and $118 at March 31, 2010
and December 31, 2009 229 176
Treasury stock-at cost, 270,577 shares at March 31, 2010 and December 31, 2009   (3,459 )   (3,459 )
Total stockholders' equity   32,389     31,515  
 
Total liabilities and stockholders' equity $ 528,874   $ 521,046  
 

BROADWAY FINANCIAL CORPORATION
AND SUBSIDIARIES
Consolidated Statements of Operations and Comprehensive Earnings
(Dollars in thousands, except per share amounts)
(Unaudited)
       
Three Months ended March 31,
2010 2009
 
Interest and fees on loans receivable $ 7,427 $ 6,254
Interest on mortgage-backed securities 270 294
Interest on investment securities 12 13
Other interest income   10     34  
Total interest income   7,719     6,595  
 
Interest on deposits 1,503 1,725
Interest on borrowings   795     752  
Total interest expense   2,298     2,477  
 
Net interest income before provision for loan losses 5,421 4,118
Provision for loan losses   574     516  
Net interest income after provision for loan losses   4,847     3,602  
 
Non-interest income:
Service charges 263 347
Net gains on mortgage banking activities - 17
Gain on sale of REO 26 -
Provision for losses on loans held for sale (156 ) (105 )
Other   33     37  
Total non-interest income   166     296  
 
Non-interest expense:
Compensation and benefits 1,931 1,626
Occupancy expense, net 362 345
Information services 218 198
Professional services 210 173
Office services and supplies 144 144
FDIC insurance 247 105
Other   263     235  
Total non-interest expense   3,375     2,826  
 
Earnings before income taxes 1,638 1,072
Income tax expense   650     410  
Net earnings $ 988   $ 662  
 
Other comprehensive income, net of tax:
Unrealized gain on securities available for sale $ 89 $ 104
Income tax effect   (36 )   (41 )
Other comprehensive income, net of tax   53     63  
 
Comprehensive earnings $ 1,041   $ 725  
 
Net earnings $ 988 $ 662
Dividends and discount accretion on preferred stock   (300 )   (163 )
Earnings available to common shareholders $ 688   $ 499  
 
Earnings per common share-basic $ 0.39 $ 0.29
Earnings per common share-diluted $ 0.39 $ 0.29
Dividends declared per share-common stock $ 0.01 $ 0.05
Basic weighted average shares outstanding 1,743,365 1,742,765
Diluted weighted average shares outstanding 1,749,143 1,744,747
 

BROADWAY FINANCIAL CORPORATION
AND SUBSIDIARIES
Selected Ratios and Data
(Dollars in thousands)
       
As of March 31,
2010 2009
 
Regulatory Capital Ratios:
 
Core Capital 7.82 % 7.85 %
Tangible Capital 7.82 % 7.85 %
Tier 1 Risk-Based Ratio 10.60 % 10.01 %
Total Risk-Based Capital 11.89 % 10.91 %
 
Asset Quality Ratios and Data:
 
Non-performing loans as a percentage
of total gross loans, excluding loans held for sale 6.96 % 1.20 %
 
Non-performing assets as a percentage
of total assets 6.85 % 1.32 %
 
Allowance for loan losses as a percentage
of total gross loans, excluding loans held for sale 4.42 % 1.11 %
 
Allowance for loan losses as a percentage
of non-performing loans, excluding loans held for sale 63.48 % 92.80 %
 
Allowance for loan losses as a percentage
of non-performing assets 55.48 % 70.47 %
 
Net loan charge-offs (recoveries) as a percentage of
average loans for three months ended March 31 0.19 % 0.00 %
 
Non-performing assets:
Non-accrual loans
Loans receivable, net $ 31,677 $ 4,391
Loans receivable held for sale   2,356     1,392  
Total non-accrual loans 34,033 5,783
Loans delinquent 90 days or more and still accruing - -
Real estate acquired through foreclosure   2,213     -  
Total non-performing assets $ 36,246   $ 5,783  
 
Three Months ended March 31,
2010 2009
Performance Ratios:
 
Return on average assets 0.76 % (A) 0.63 % (A)
Return on average equity 12.34 % (A) 8.01 % (A)
Average equity to average assets 6.12 % 7.93 %
Non-interest expense to average assets 2.58 % (A) 2.71 % (A)
Efficiency ratio (1) 60.41 % 64.02 %
Net interest rate spread (2) 4.05 % (A) 3.90 % (A)
Net interest rate margin (3) 4.17 % (A) 4.07 % (A)
 
(1 ) Efficiency ratio represents non-interest expense divided by net interest income plus non-interest income.
(2 ) Net interest rate spread represents the difference between the yield on average interest-earning assets and the
cost of average interest-bearing liabilities.
(3 ) Net interest rate margin represents net interest income as a percentage of average interest-earning assets.
 
(A) Annualized
 

BROADWAY FINANCIAL CORPORATION
AND SUBSIDIARIES
Support for Calculations
(Dollars in thousands)
           
Three Months ended March 31,
2010 2009
Total assets $ 528,874 $ 438,709
Total gross loans, excluding loans held for sale $ 455,177 $ 366,115
Total equity $ 32,389 $ 33,211
Average assets $ 523,220 $ 417,136
Average loans $ 476,427 $ 366,392
Average equity $ 32,037 $ 33,075
Average interest-earning assets $ 519,408 $ 404,933
Average interest-bearing liabilities $ 485,657 $ 378,723
Net income $ 988 $ 662
Total income $ 5,587 $ 4,414
Non-interest expense $ 3,375 $ 2,826
Efficiency ratio 60.41 % 64.02 %
Non-accrual loans $ 34,033 $ 5,783
REO, net $ 2,213 $ -
ALLL $ 20,110 $ 4,075
Allowance for loss on loans held for sale $ 430 $ 365
REO-Allowance $ 81 $ -
Interest income $ 7,719 $ 6,595
Interest expense $ 2,298 $ 2,477
Net interest income $ 5,421 $ 4,118
Net loan charge-offs (recoveries) $ 924 $ -




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