Broadway Financial Corporation (the “Company”) (NASDAQ Capital Market: BYFC), parent company of Broadway Federal Bank, f.s.b. (the “Bank”), today reported net earnings of $1.7 million, or $0.81 per diluted common share, for the second quarter of 2012, compared to a net loss of ($1.7) million, or ($1.15) per diluted common share, for the second quarter of 2011. Earnings available to common shareholders for the second quarter of 2012 was $1.4 million, compared to a loss of ($2.0) million for the second quarter of 2011.
For the six months ended June 30, 2012, the Company reported net earnings of $1.9 million, or $0.73 per diluted common share compared to a net loss of ($1.9) million, or ($1.39) per diluted common share for the same period in 2011. Earnings available to common shareholders for the six months ended June 30, 2012 was $1.3 million, compared to a loss of ($2.4) million for the same period in 2011.
The increase from a net loss to net earnings for both the second quarter and first half primarily reflected lower provisions for loan losses and a gain on the sale of our headquarters building during June. In addition, net earnings for the second quarter and first half benefited from lower provisions for losses on REO and lower non-interest expenses.
Chief Executive Officer, Wayne Kent Bradshaw stated, “Our results for the first half indicate that we are making progress in improving our portfolio, and building our capital. In addition, with the forthcoming filing of our Form 10Q for the second quarter, we will be current with our filings, which will assist us in executing our previously announced Recapitalization Plan. Also, I am pleased to state that as of June 30
, the Bank’s Total Risk-Based Capital ratio was 13.34% and its Core Capital and Tangible Capital ratios were 8.57%.”
Second Quarter 2012 Earnings Summary
For the second quarter of 2012, our net interest income before provision for loan losses was $3.5 million, which represented a decrease of $938 thousand, or 21%, from the second quarter of 2011. The decrease in net interest income was primarily attributable to a decrease in average interest-earning assets, combined with a decrease in net interest margin.