During the first quarter of 2012, REO decreased by $2.7 million to $4.3 million at March 31, 2012, from $7.0 million at the end of 2011. At March 31, 2012 the Bank’s REO consisted of three one-to-four family residential properties and eight commercial real estate properties, six of which are church buildings. As part of our efforts to reduce non-performing assets, we sold five REO properties for total proceeds of $4.0 million, and recorded a corresponding net gain of $272 thousand, during the first quarter of 2012.At March 31, 2012 our allowance for loan losses was $15.5 million, or 4.71% of our gross loans receivable, compared to $16.2 million, or 4.73% of our gross loans, at year-end 2011. The ratio of the allowance for loan losses to NPLs, excluding loans held for sale, decreased to 40.96% at March 31, 2012, compared to 42.85% at year-end 2011. Despite the decrease in the allowance ratio, management believes that the remaining loss potential has been reduced as certain losses inherent in our NPLs have been recognized as charge-offs which resulted in a lower ratio of the allowance for loan losses to NPLs. As of March 31, 2012, 67% of our NPLs had already been written down to their adjusted fair value less estimated selling costs, by establishing specific reserves or charged-off as necessary.
Broadway Financial Corporation Reports Net Loss For 1st Quarter 2012
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