This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Broadway Financial Corporation Reports Net Loss For 4th Quarter And Year 2011

About Broadway Financial Corporation

Broadway 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 three full service branches, two in the city of Los Angeles, and one located in the nearby city of Inglewood, California.

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)
   
December 31, December 31,
  2011     2010  
 
ASSETS
Cash $ 12,127 $ 8,203
Federal funds sold   19,470     13,775  
Cash and cash equivalents 31,597 21,978
 
Securities available for sale, at fair value 18,979 10,524
Securities held to maturity - 12,737
Loans receivable held for sale, net 13,857 29,411
Loans receivable, net of allowance of $16,194 and $20,458 326,323 382,616
Accrued interest receivable 1,698 2,216
Federal Home Loan Bank (FHLB) stock, at cost 4,089 4,089
Office properties and equipment, net 4,626 5,094
Real estate owned (REO) 7,010 3,036
Bank owned life insurance 2,609 2,522
Investment in affordable housing partnership 1,675 2,000
Deferred tax assets 850 5,369
Other assets   5,161     2,338  
Total assets $ 418,474   $ 483,930  
 
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits $ 294,686 $ 348,445
Federal Home Loan Bank advances 83,000 87,000
Junior subordinated debentures 6,000 6,000
Other borrowings 5,000 5,000
Advance payments by borrowers for taxes and insurance 813 272
Other liabilities   5,962     4,353  
Total liabilities   395,461     451,070  
 
Stockholders' Equity:

Senior preferred, cumulative and non-voting stock, $0.01 par value, authorized, issued and outstanding 9,000 shares of Series D at December 31, 2011 and 2010; liquidation preference of $9,731 at December 31, 2011 and $9,281 at December 31, 2010

8,963 8,963

Senior preferred, cumulative and non-voting stock, $0.01 par value, authorized, issued and outstanding 6,000 shares of Series E at December 31, 2011 and 2010; liquidation preference of $6,488 at December 31, 2011 and $6,188 at December 31, 2010

5,974 5,974

Preferred, non-cumulative and non-voting stock, $.01 par value, authorized 985,000 shares; issued and outstanding 55,199 shares of Series A, 100,000 shares of Series B and 76,950 shares of Series C at December 31, 2011 and 2010; liquidation preference of $552 for Series A, $1,000 for Series B and $1,000 for Series C at December 31, 2011 and 2010

3,657 3,657
Preferred stock discount (994 ) (1,380 )

Common stock, $.01 par value, authorized 8,000,000 shares at December 31, 2011 and 2010; issued 2,013,942 shares at December 31, 2011 and 2010; outstanding 1,744,565 shares at December 31, 2011 and 1,743,965 shares at December 31, 2010

20 20
Additional paid-in capital 10,824 10,740
(Accumulated deficit) Retained earnings (2,558 ) 8,074

Accumulated other comprehensive income, net of taxes of $400 at December 31, 2011 and $176 at December 31, 2010

571 263

Treasury stock-at cost, 269,377 shares at December 31, 2011 and 269,977 shares at December 31, 2010

  (3,444 )   (3,451 )
Total stockholders' equity   23,013     32,860  
 
Total liabilities and stockholders' equity $ 418,474   $ 483,930  
 
BROADWAY FINANCIAL CORPORATION
AND SUBSIDIARIES
Consolidated Statements of Operations and Comprehensive Earnings (Loss)
(Dollars in thousands, except per share amounts)
       
 
Three Months ended December 31, Twelve Months ended December 31,
  2011     2010     2011     2010  
 
Interest and fees on loans receivable $ 5,646 $ 6,861 $ 24,376 $ 29,047
Interest on securities 161 197 700 964
Other interest income   11     11     39     52  
Total interest income   5,818     7,069     25,115     30,063  
 
Interest on deposits 1,001 1,347 4,493 5,910
Interest on borrowings   859     852     3,558     3,363  
Total interest expense   1,860     2,199     8,051     9,273  
 
Net interest income before provision for loan losses 3,958 4,870 17,064 20,790
Provision for loan losses   112     1,842     8,600     4,465  
Net interest income after provision for loan losses   3,846     3,028     8,464     16,325  
 
Non-interest income:
Service charges 176 204 709 881
Net gains (losses) on mortgage banking activities (2 ) 118 (75 ) 46
Net gains (losses) on sales of REO 21 - (35 ) (88 )
Other   24     631     114     1,593  
Total non-interest income   219     953     713     2,432  
 
Non-interest expense:
Compensation and benefits 1,559 1,234 6,541 6,657
Occupancy expense, net 418 360 1,436 1,429
Information services 221 205 868 807
Professional services 218 357 962 1,167
Provision for losses on loans held for sale 10 85 738 1,188
Provision for losses on REO 310 322 2,343 1,102
FDIC insurance 236 348 1,017 1,043
Office services and supplies 122 124 539 548
Other   1,028     501     2,408     1,560  
Total non-interest expense   4,122     3,536     16,852     15,501  
 
Earnings (loss) before income taxes (57 ) 445 (7,675 ) 3,256
Income tax expense (benefit)   75     208     1,842     1,341  
Net earnings (loss) $ (132 ) $ 237   $ (9,517 ) $ 1,915  
 
Other comprehensive income, net of tax:
Unrealized gain on securities available for sale $ 472 $ 10 $ 532 $ 145
Income tax effect   (194 )   (4 )   (224 )   (58 )
Other comprehensive income, net of tax   278     6     308     87  
 
Comprehensive earnings (loss) $ 146   $ 243   $ (9,209 ) $ 2,002  
 
Net earnings (loss) $ (132 ) $ 237 $ (9,517 ) $ 1,915
Dividends and discount accretion on preferred stock   (285 )   (282 )   (1,115 )   (1,145 )
Earnings (loss) available to common shareholders $ (417 ) $ (45 ) $ (10,632 ) $ 770  
 
Earnings (loss) per common share-basic $ (0.24 ) $ (0.03 ) $ (6.10 ) $ 0.44
Earnings (loss) per common share-diluted $ (0.24 ) $ (0.03 ) $ (6.10 ) $ 0.44
Dividends declared per share-common stock $ - $ - $ - $ 0.01
Basic weighted average shares outstanding 1,744,565 1,743,965 1,744,330 1,743,728
Diluted weighted average shares outstanding 1,744,565 1,744,565 1,744,330 1,744,559
 
BROADWAY FINANCIAL CORPORATION
AND SUBSIDIARIES
Selected Ratios and Data
(Dollars in thousands)
     
As of December 31,
  2011     2010  
Regulatory Capital Ratios:
 
Core Capital Ratio 8.38 % 8.82 %
Tangible Capital Ratio 8.38 % 8.82 %
Tier 1 Risk-Based Capital Ratio 11.71 % 11.76 %
Total Risk-Based Capital Ratio 13.01 % 13.05 %
 
Asset Quality Ratios and Data:
 

Non-performing loans as a percentage of total gross loans, excluding loans held for sale

11.04 % 9.32 %
 

Non-performing assets as a percentage of total assets

11.97 % 9.60 %
 

Allowance for loan losses as a percentage of total gross loans, excluding loans held for sale

4.73 % 5.08 %
 

Allowance for loan losses as a percentage of non-performing loans, excluding loans held for sale

42.85 % 54.53 %
 

Allowance for losses as a percentage of non-performing assets

33.30 % 46.90 %
 

Net loan charge-offs (recoveries) as a percentage of average loans for twelve months ended December 31

3.24 % 0.97 %
 
Non-performing assets:
Non-accrual loans
Loans receivable, net $ 37,794 $ 37,514
Loans receivable held for sale   5,268     5,918  
Total non-accrual loans 43,062 43,432
Loans delinquent 90 days or more and still accruing - -
Real estate acquired through foreclosure   7,010     3,036  
Total non-performing assets $ 50,072   $ 46,468  
 
Three Months ended December 31, Twelve Months ended December 31,
  2011     2010   2011 2010
Performance Ratios:
 
Return on average assets -0.12 % (A) 0.19 % (A) -2.10 % 0.37 %
Return on average equity -2.27 % (A) 2.87 % (A) -32.23 % 5.85 %
Average equity to average assets 5.46 % 6.58 % 6.52 % 6.26 %
Non-interest expense to average assets 3.88 % (A) 2.82 % (A) 3.72 % 2.96 %
Efficiency ratio (1) 91.02 % 53.74 % 77.47 % 56.89 %
Net interest rate spread (2) 3.74 % (A) 3.79 % (A) 3.70 % 3.88 %
Net interest rate margin (3) 3.82 % (A) 3.92 % (A) 3.83 % 4.01 %
 
(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 December 31, Twelve Months ended December 31,
  2011     2010     2011     2010  
Total assets $ 418,474 $ 483,930 $ 418,474 $ 483,930
Total gross loans, excluding loans held for sale $ 342,264 $ 402,589 $ 342,264 $ 402,589
Total equity $ 23,013 $ 32,860 $ 23,013 $ 32,860
Average assets $ 425,304 $ 501,499 $ 453,071 $ 523,513
Average loans $ 364,270 $ 446,338 $ 397,411 $ 462,800
Average equity $ 23,233 $ 32,993 $ 29,525 $ 32,761
Average interest-earning assets $ 414,651 $ 497,067 $ 446,040 $ 519,089
Average interest-bearing liabilities $ 396,716 $ 462,189 $ 418,028 $ 485,121
Net income (loss) $ (132 ) $ 237 $ (9,517 ) $ 1,915
Total income $ 4,177 $ 5,823 $ 17,777 $ 23,222
Non-interest expense $ 4,122 $ 3,536 $ 16,852 $ 15,501
Efficiency ratio 91.02 % 53.74 % 77.47 % 56.89 %
Non-accrual loans $ 43,062 $ 35,726 $ 43,062 $ 35,726
REO, net $ 7,010 $ 3,036 $ 7,010 $ 3,036
ALLL $ 16,194 $ 20,458 $ 16,194 $ 20,458
Allowance for loss on loans held for sale $ 444 $ 1,281 $ 444 $ 1,281
REO-Allowance $ 36 $ 54 $ 36 $ 54
Interest income $ 5,818 $ 7,069 $ 25,115 $ 30,063
Interest expense $ 1,860 $ 2,199 $ 8,051 $ 9,273
Net interest income $ 3,958 $ 4,870 $ 17,064 $ 20,790
Net loan charge-offs (recoveries) $ 3,723 $ (134 ) $ 12,864 $ 4,467




7 of 8

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,943.81 +28.74 0.17%
S&P 500 1,967.57 +2.89 0.15%
NASDAQ 4,415.49 +19.2860 0.44%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs