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Broadway Financial Corporation Reports Net Loss For 1st Quarter 2012

Stocks in this article: BYFC

Forward-Looking Statements

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 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)
   
March 31, December 31,
  2012     2011  
(Unaudited)
ASSETS
Cash $ 13,572 $ 12,127
Federal funds sold   31,605     19,470  
Cash and cash equivalents 45,177 31,597
 
Securities available for sale, at fair value 18,027 18,979
Loans receivable held for sale, net 13,277 13,857
Loans receivable, net of allowance of $15,488 and $16,194 313,276 326,323
Accrued interest receivable 1,601 1,698
Federal Home Loan Bank (FHLB) stock, at cost 3,901 4,089
Office properties and equipment, net 4,548 4,626
Real estate owned (REO) 4,335 7,010
Bank owned life insurance 2,629 2,609
Investment in affordable housing partnership 1,629 1,675
Deferred tax assets 828 850
Other assets   4,155     5,161  
Total assets $ 413,383   $ 418,474  
 
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits $ 290,352 $ 294,686
Federal Home Loan Bank advances 83,000 83,000
Junior subordinated debentures 6,000 6,000
Other borrowings 5,000 5,000
Advance payments by borrowers for taxes and insurance 335 813
Other liabilities   5,904     5,962  
Total liabilities   390,591     395,461  
 
Stockholders' Equity:
Senior preferred, cumulative and non-voting stock, $0.01 par value, authorized, issued
and outstanding 9,000 shares of Series D at March 31, 2012 and December 31, 2011;
liquidation preference of $10,181 at March 31, 2012 and $9,731 at December 31, 2011 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 March 31, 2012 and December 31, 2011;
liquidation preference of $6,788 at March 31, 2012 and $6,488 at December 31, 2011 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 March 31, 2012 and December 31, 2011; liquidation preference
of $552 for Series A, $1,000 for Series B and $1,000 for Series C at March 31, 2012 and
December 31, 2011 3,657 3,657
Preferred stock discount (896 ) (994 )
Common stock, $.01 par value, authorized 8,000,000 shares at March 31, 2012 and
December 31, 2011; issued 2,013,942 shares at March 31, 2012 and December 31, 2011;
outstanding 1,744,565 shares at March 31, 2012 and December 31, 2011 20 20
Additional paid-in capital 10,844 10,824
Accumulated deficit (2,904 ) (2,558 )
Accumulated other comprehensive income, net of taxes of $400 at March 31, 2012
and December 31, 2011 578 571
Treasury stock-at cost, 269,377 shares at March 31, 2012 and December 31, 2011   (3,444 )   (3,444 )
Total stockholders' equity   22,792     23,013  
 
Total liabilities and stockholders' equity $ 413,383   $ 418,474  
 
BROADWAY FINANCIAL CORPORATION
AND SUBSIDIARIES
Consolidated Statements of Operations and Comprehensive Earnings (Loss)
(Dollars in thousands, except per share amounts)
(Unaudited)
   
Three Months ended March 31,
  2012     2011  
 
Interest and fees on loans receivable $ 5,330 $ 6,384
Interest on securities 148 181
Other interest income   16     9  
Total interest income   5,494     6,574  
 
Interest on deposits 975 1,239
Interest on borrowings   833     989  
Total interest expense   1,808     2,228  
 
Net interest income before provision for loan losses 3,686 4,346
Provision for loan losses   427     1,240  
Net interest income after provision for loan losses   3,259     3,106  
 
Non-interest income:
Service charges 153 182
Net losses on mortgage banking activities (166 ) (25 )
Net gains (losses) on sales of REO 272 (15 )
Other   24     39  
Total non-interest income   283     181  
 
Non-interest expense:
Compensation and benefits 1,589 1,809
Occupancy expense, net 287 354
Information services 213 227
Professional services 108 168
Provision for losses on loans held for sale 503 20
Provision for losses on REO 160 80
FDIC insurance 217 283
Office services and supplies 109 142
Other   419     419  
Total non-interest expense   3,605     3,502  
 
Loss before income taxes (63 ) (215 )
Income tax benefit   (3 )   (86 )
Net loss $ (60 ) $ (129 )
 
Other comprehensive loss, net of tax:
Unrealized gain (loss) on securities available for sale $ 7 $ (15 )
Income tax effect   -     6  
Other comprehensive income (loss), net of tax   7     (9 )
 
Comprehensive loss $ (53 ) $ (138 )
 
Net loss $ (60 ) $ (129 )
Dividends and discount accretion on preferred stock   (286 )   (283 )
Loss available to common shareholders $ (346 ) $ (412 )
 
Loss per common share-basic $ (0.20 ) $ (0.24 )
Loss per common share-diluted $ (0.20 ) $ (0.24 )
Dividends declared per share-common stock $ - $ -
Basic weighted average shares outstanding 1,744,565 1,743,965
Diluted weighted average shares outstanding 1,744,565 1,743,965
 
BROADWAY FINANCIAL CORPORATION
AND SUBSIDIARIES
Selected Ratios and Data
(Dollars in thousands)
(Unaudited)
 
      As of March 31,
  2012     2011  
Regulatory Capital Ratios:
 
Core Capital Ratio 8.71 % 8.71 %
Tangible Capital Ratio 8.71 % 8.71 %
Tier 1 Risk-Based Capital Ratio 12.31 % 11.70 %
Total Risk-Based Capital Ratio 13.61 % 12.98 %
 
Asset Quality Ratios and Data:
 
Non-performing loans as a percentage
of total gross loans, excluding loans held for sale 11.50 % 11.10 %
 
Non-performing assets as a percentage
of total assets 11.33 % 11.52 %
 
Allowance for loan losses as a percentage
of total gross loans, excluding loans held for sale 4.71 % 5.32 %
 
Allowance for loan losses as a percentage
of non-performing loans, excluding loans held for sale 40.96 % 47.93 %
 
Allowance for losses as a percentage
of non-performing assets 34.38 % 40.70 %
 
Net loan charge-offs (recoveries) as a percentage of
average loans for three months ended March 31 1.30 % (A) 0.66 % (A)
 
Non-performing assets:
Non-accrual loans
Loans receivable, net $ 37,815 $ 43,796
Loans receivable held for sale   4,692     5,982  
Total non-accrual loans 42,507 49,778
Loans delinquent 90 days or more and still accruing - -
Real estate acquired through foreclosure   4,335     5,123  
Total non-performing assets $ 46,842   $ 54,901  
 
Three Months ended March 31,
  2012     2011  
Performance Ratios:
 
Return on average assets -0.06 % (A) -0.11 % (A)
Return on average equity -1.04 % (A) -1.55 % (A)
Average equity to average assets 5.56 % 6.88 %
Non-interest expense to average assets 3.47 % (A) 2.90 % (A)
Efficiency ratio (1) 74.12 % 75.15 %
Net interest rate spread (2) 3.56 % (A) 3.47 % (A)
Net interest rate margin (3) 3.64 % (A) 3.62 % (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)
(Unaudited)
 
      Three Months ended March 31,
  2012       2011  
Total assets $ 413,383 $ 476,734
Total gross loans, excluding loans held for sale $ 328,764 $ 394,613
Total equity $ 22,792 $ 32,558
Average assets $ 415,985 $ 482,793
Average loans $ 348,877 $ 427,883
Average equity $ 23,108 $ 33,201
Average interest-earning assets $ 404,721 $ 479,775
Average interest-bearing liabilities $ 386,057 $ 444,106
Net loss $ (60 ) $ (129 )
Total income $ 3,969 $ 4,527
Non-interest expense $ 3,605 $ 3,502
Efficiency ratio 74.12 % 75.15 %
Non-accrual loans $ 42,507 $ 49,778
REO, net $ 4,335 $ 5,123
ALLL $ 15,488 $ 20,991
Allowance for loss on loans held for sale $ 418 $ 1,301
REO-Allowance $ 198 $ 52
Interest income $ 5,494 $ 6,574
Interest expense $ 1,808 $ 2,228
Net interest income $ 3,686 $ 4,346
Net loan charge-offs (recoveries) $ 1,133 $

707

 




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