Net loan charge-offs during the third quarter of 2011 were $6.3 million, or 6.39% of average loans on an annualized basis, compared to $1.7 million, or 1.50% during the third quarter of 2010. Of the $6.3 million of loan charge-offs during the third quarter of 2011, $2.7 million were specifically reserved for at June 30, 2011 and $3.5 million were specifically reserved for during the third quarter of 2011. Commercial loans represented 58% of the charge-offs during the third quarter of 2011, primarily because of the full charge-off of two loans to a professional sports franchise. Additionally, church loans represented 26% of the charge-offs during the third quarter of 2011, while commercial real estate, multi-family and one-to-four family residential real estate loans, combined, represented 16% of the charge-offs during the third quarter of 2011.
Certain matters discussed in this news release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to, among other things, the Company’s plans for Recapitalizing and raising capital, expectations regarding the business environment in which the Company operates, projections of future performance, perceived opportunities in the market, and statements regarding strategic objectives. These forward-looking statements are based upon current management expectations, and involve risks and uncertainties. Actual results or performance may differ materially from those suggested, expressed, or implied by the forward-looking statements due to a wide range of factors including, but not limited to, the general business environment, the real estate market, competitive conditions in the business and geographic areas in which the Company conducts its business, regulatory actions or changes and other risks detailed in the Company’s reports filed with the Securities and Exchange Commission, including the Company’s Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q.
About Broadway Financial CorporationBroadway Financial Corporation conducts its operations through its wholly-owned subsidiary, Broadway Federal Bank, f.s.b., which is the leading community-oriented savings bank in Southern California serving low to moderate income communities. We offer a variety of residential and commercial real estate loan products for consumers, businesses, and non-profit organizations, other loan products, and a variety of deposit products, including checking, savings and money market accounts, certificates of deposits and retirement accounts. The Bank operates five full service branches, four in the city of Los Angeles, and one located in the nearby city of Inglewood, California.