Broadway Financial Corporation Reports Results for the Second Quarter 2021
Broadway Financial Corporation (BYFC) reported a consolidated net income of $701,000, or $0.01 per diluted share, for Q2 2021. This contrasts with a net loss of $3.5 million in Q1 2021. The results reflect the merger with CFBanc Corporation, completed on April 1, 2021, which significantly boosted total assets to over $1 billion. The company raised $32.9 million through common stock sales, enhancing liquidity. However, a high tax rate of 71.3% affected the bottom line. Overall, Broadway's net interest income improved substantially, driven by a growing loan portfolio.
- Consolidated net income of $701,000 in Q2 2021, a recovery from a net loss in Q1 2021.
- Total assets increased to over $1 billion, up more than 115% since December 31, 2020.
- Net interest income rose by $2.7 million (89.4%) compared to Q2 2020.
- Raised $32.9 million in gross proceeds from private placements after the merger.
- High effective tax rate of 71.3% impacted net income.
- Merger-related expenses of $5.6 million affected financial results.
Broadway Financial Corporation (“Broadway”, “we” or the “Company”) (NASDAQ Capital Market: BYFC), reported consolidated net income of
Results for the second quarter of 2021 reflect the consolidated operations of CFBanc Corporation (“CFBanc”), including CFBanc’s subsidiary, City First Bank of D.C., National Association, as, on April 1, 2021: (i) CFBanc was merged into Broadway, with Broadway as the surviving entity, and (ii) Broadway’s former subsidiary, Broadway Federal Bank, f.s.b., was merged into City First Bank of D.C., National Association (with City First Bank of D.C., National Association as the surviving entity and the resultant bank being renamed City First Bank, National Association) (collectively, the “Merger”). Accordingly, results for the second quarter of 2021 include the operations of Broadway and its current subsidiary, City First Bank, National Association (the “Bank”), whereas results for the first quarter of 2021 and the first half of 2020 include the results of Broadway Financial Corporation and its former subsidiary, Broadway Federal Bank, f.s.b.
Net income for the second quarter of 2021 was favorably impacted by an increase of
The net loss during the first quarter of 2021 was primarily due to Merger-related expenses of
For the first six months of 2021, the Company reported a net loss of
Other Second Quarter Highlights:
-
Total assets exceeded
$1 billion at the end of the second quarter, representing an increase of over115% since December 31, 2020. -
Total loans receivable, net of allowances, were over
$600 million , representing an increase of$255 million , or70.7% , since December 31, 2020. The Company acquired approximately$226 million of loans in the Merger. -
Gross loan originations during the quarter were
$89.1 million , including$46.9 million of loans secured by multi-family residential properties and$26.4 million of Paycheck Protection Program (“PPP”) loans. -
Overall liquidity improved during the second quarter as cash and equivalents, plus securities available for sale, increased by
$271 million , and the ratio of total loans receivable, net of allowances, to total deposits declined to87.2% from116.1% at the beginning of the quarter. -
Deposits totaled
$705 million as of June 30, 2021, reflecting growth of$39 million , or5.9% , since the Merger date. -
Total equity increased by
$98.4 million to$143.5 million since the Merger date, reflecting the value of the shares issued in the Merger and private placements, plus net income earned in the second quarter.
Chief Executive Officer, Brian Argrett, commented, “The second quarter marked the beginning of an exciting new chapter for Broadway Financial Corporation, with the completion of the Merger with CFBanc Corporation on April 1 and subsequent receipt of over
“In that regard, we expect to deploy our liquid assets over the next few quarters in a prudent expansion of our loan portfolio to increase net interest income, net interest margin, and return on assets, while fulfilling our mission to provide capital and economic opportunities to low-to-moderate income communities in our geographic markets. We have also been building our management team to ensure that we have the critical human capital needed to grow and manage a larger institution, and I am pleased to announce that we have recruited three experienced, talented members for our expanded senior management team for the combined organization.”
“Finally, I wish to thank all of our dedicated employees who worked tirelessly to successfully complete the merger and private placements and are now energetically focused on pursuing opportunities to improve the combined organization for the benefit of our stockholders and the low-to- moderate income communities that we serve.”
Net Interest Income
Second Quarter of 2021 Compared to First Quarter of 2021
Net interest income for the second quarter of 2021 totaled
The increase resulted from higher interest income, primarily due to growth of
Interest expense for the second quarter of 2021 increased by
The net interest margin decreased to
Second Quarter of 2021 Compared to Second Quarter of 2020
Net interest income increased by
Interest income and fees on loans receivable increased by
Interest income on securities increased by
Other interest income increased by
Also, the Company recorded higher interest income on regulatory stock due to interest earned on Federal Reserve Board (“FRB”) stock and additional FHLB stock acquired in the Merger, which combined with interest on Broadway’s pre-Merger holdings of FHLB stock, helped to increase interest income by
Interest expense on deposits decreased by
Interest expense on borrowings increased by
The net interest margin decreased to
First Six Months of 2021 Compared to the First Six Months of 2020
For the first six months of 2021, net interest income before provisions increased by over
Interest income and fees on loans receivable increased by
Interest income on securities increased by
Other interest income increased
During the first six months of 2021, interest expense on deposits decreased by
During the first six months of 2021, interest expense on borrowings decreased by
The net interest margin decreased by 10 basis points to
Loan Loss Provision
As a smaller reporting company as defined by the SEC, Broadway is not required to adopt the current expected credit losses (“CECL”), accounting standard until 2023; consequently, the Bank’s allowance for loan and lease losses (“ALLL”) is based on evidence available at the date of preparation of its financial statements (incurred loss method), rather than projections of future economic conditions over the life of the loans. In determining the adequacy of the ALLL within the context of the current uncertainties posed by the COVID-19 Pandemic, management has considered the historical and current performance of the Bank’s portfolio, as well as various measures of the quality and safety of the portfolio, such as debt service coverage and loan-to-value ratios. The Bank recorded a loan loss provision of
The ALLL was
Non-interest Income
Non-interest income for the second quarter of 2021 totaled
For the first six months of 2021, non-interest income totaled
Non-interest Expense
Non-interest expense for the second quarter of 2021 totaled
For the first six months of 2021, non-interest expense totaled
Income Tax Expense or Benefit
Income tax expense or benefit is computed by applying the statutory federal income tax rate of
Balance Sheet Summary
Total assets increased by
CFBanc Book Value |
Fair Value Adjustments |
Fair Value | ||||||||||
Assets acquired | ||||||||||||
Cash and cash equivalents | $ |
84,745 |
|
$ |
- |
|
$ |
84,745 |
|
|||
Securities available-for-sale |
|
150,052 |
|
|
(77 |
) |
|
149,975 |
|
|||
Loans: | ||||||||||||
Gross loans receivable held for investment |
|
227,669 |
|
|
(1,784 |
) |
|
225,885 |
|
|||
Deferred fees and costs |
|
(315 |
) |
|
315 |
|
|
- |
|
|||
Allowance for loan losses |
|
(2,178 |
) |
|
2,178 |
|
|
- |
|
|||
|
225,176 |
|
|
709 |
|
|
225,885 |
|
||||
Accrued interest receivable |
|
1,637 |
|
|
- |
|
|
1,637 |
|
|||
FHLB and FRB stock |
|
1,061 |
|
|
- |
|
|
1,061 |
|
|||
Office properties and equipment |
|
5,152 |
|
|
1,801 |
|
|
6,953 |
|
|||
Deferred tax assets, net |
|
890 |
|
|
(1,608 |
) |
|
(718 |
) |
|||
Goodwill |
|
- |
|
|
25,996 |
|
|
25,996 |
|
|||
Core deposit intangible |
|
- |
|
|
3,329 |
|
|
3,329 |
|
|||
Other assets |
|
2,290 |
|
|
- |
|
|
2,290 |
|
|||
Total assets | $ |
471,003 |
|
$ |
30,150 |
|
$ |
501,153 |
|
|||
Liabilities assumed | ||||||||||||
Deposits |
|
353,671 |
|
|
51 |
|
|
353,722 |
|
|||
FHLB advances |
|
3,057 |
|
|
109 |
|
|
3,166 |
|
|||
Other borrowings |
|
73,945 |
|
|
- |
|
|
73,945 |
|
|||
Accrued expenses and other liabilities |
|
4,063 |
|
|
- |
|
|
4,063 |
|
|||
Total liabilities |
|
434,736 |
|
|
160 |
|
|
434,896 |
|
|||
|
- |
|
||||||||||
Excess of assets acquired over liabilities assumed | $ |
36,267 |
|
$ |
29,990 |
|
$ |
66,257 |
|
|||
Total liabilities and equity | $ |
471,003 |
|
$ |
30,150 |
|
$ |
501,153 |
|
Loans receivable increased by
Investments increased by
Deposits increased to
FHLB advances decreased to
Stockholders' equity was
Number of Common Shares Outstanding | ||||||||||
Class A Voting Common Stock |
Class B Non-Voting Common Stock |
Class C Non-Voting Common Stock |
Total Common Stock |
|||||||
Shares Outstanding at March 31, 2021 | 19,142,498 |
|
- |
8,756,396 |
27,898,894 |
|
||||
Issued in Merger | 13,999,870 |
|
11,404,621 |
- |
25,404,491 |
|
||||
RSUs canceled upon vesting in Merger | (52,105 |
) |
- |
- |
(52,105 |
) |
||||
Total Post Merger | 33,090,263 |
|
11,404,621 |
8,756,396 |
53,251,280 |
|
||||
Exchanged post Merger | (681,300 |
) |
- |
681,300 |
- |
|
||||
Issued in Private Placements | 11,221,921 |
|
- |
7,252,079 |
18,474,000 |
|
||||
Total Outstanding at June 30, 2021 | 43,630,884 |
|
11,404,621 |
16,689,775 |
71,725,280 |
|
The Company’s book value was
As of June 30, 2021: | Common Equity Capital |
Shares Outstanding |
Per Share Amount |
|||||||
(In thousands) | ||||||||||
Book Value per Share | $ |
140,463 |
|
71,725,280 |
$ |
1.96 |
||||
Less: | ||||||||||
Goodwill |
|
(25,996 |
) |
|||||||
Net Unamortized Core Deposit Intangible |
|
(3,198 |
) |
|||||||
Tangible Book Value per Share | $ |
111,269 |
|
71,725,280 |
$ |
1.55 |
A capital contribution of
__________________
About Broadway Financial Corporation
Broadway Financial Corporation conducts its operations through its wholly-owned banking subsidiary, which is a leading community-oriented bank in Southern California and in the Washington, D.C. market 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.
Shareholders, analysts, and others seeking information about the Company are invited to write to: Broadway Financial Corporation, Investor Relations, 5055 Wilshire Blvd., Suite 500, Los Angeles, CA 90036.
Cautionary Statement Regarding Forward-Looking Information
This press release includes “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements often include words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue,” and similar expressions, but the absence of such words or expressions does not mean a statement is not forward-looking. These forward-looking statements are based upon our management’s current expectations and involve known and unknown 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. Such risk factors include, among others: uncertainty as to the duration, scope and impacts of the COVID-19 pandemic; political and economic uncertainty, including the possibility of declines in global economic conditions or the stability of credit and financial markets; changes in the monetary and fiscal policies of the U.S. Government, including policies of the United States Department of the Treasury and the Federal Reserve Board; changes in legislation, regulation, policies or administrative practices, whether by judicial, governmental, or legislative action, and other changes pertaining to banking, securities, taxation, financial accounting and reporting, and environmental protection and our ability to comply with such changes in a timely manner; possible effects of changes in real estate markets and interest rates, which may affect our net income and future cash flows, or the market value of our assets, including investment securities; risks related to disruption of management time due to integration activities related to the Merger; the risk of possible adverse rulings, judgments, settlements and other outcomes of litigation; the risk that the Merger could have an adverse effect on our ability to retain customers, retain and hire key personnel and on our operating results and business generally; the risk that problems may arise in successfully integrating the businesses of the pre-Merger companies, which may result in the combined company not operating as effectively and efficiently as expected, or that the we may not be able to successfully integrate the businesses of the pre-Merger companies; the risk that we may be unable to achieve synergies or other anticipated benefits of the Merger or that it may take longer than expected to achieve those synergies or benefits; the risk that operational issues stemming from, and/or capital spending necessitated by, the potential need to adapt to industry changes in information technology systems, on which we are highly dependent, and other important factors that could cause actual results to differ materially from those projected. All such factors are difficult to predict and are beyond our control. Additional factors that could cause results to differ materially from those described above can be found in our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K or other filings made with the SEC and are available on our website at https://www.broadwayfederalbank.com/financial-highlights and on the SEC’s website at http://www.sec.gov.
Forward-looking statements in this press release speak only as of the date they are made, and we undertake no obligation, and do not intend, to update these forward-looking statements to reflect events or circumstances occurring after the date of this press release, except to the extent required by law. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.
BROADWAY FINANCIAL CORPORATION AND SUBSIDIARY | ||||||||||||||||
Selected Financial Data and Ratios (Unaudited) | ||||||||||||||||
(Dollars in thousands, except per share data) | ||||||||||||||||
June 30, 2021 | December 31, 2020 | |||||||||||||||
Selected Financial Condition Data and Ratios: | ||||||||||||||||
Cash and cash equivalents | $ |
210,383 |
|
$ |
96,109 |
|
||||||||||
Securities available-for-sale, at fair value |
|
158,832 |
|
|
10,698 |
|
||||||||||
Loans receivable held for investment |
|
618,014 |
|
|
363,344 |
|
||||||||||
Allowance for loan losses |
|
(3,296 |
) |
|
(3,215 |
) |
||||||||||
Loans receivable held for investment, net of allowance |
|
614,718 |
|
|
360,129 |
|
||||||||||
Total assets |
|
1,040,998 |
|
|
483,378 |
|
||||||||||
Deposits |
|
705,041 |
|
|
315,630 |
|
||||||||||
FHLB advances |
|
96,022 |
|
|
110,500 |
|
||||||||||
Junior subordinated debentures |
|
2,805 |
|
|
3,315 |
|
||||||||||
Securities sold under agreements to repurchase |
|
70,660 |
|
|
- |
|
||||||||||
Notes payable |
|
14,000 |
|
|
- |
|
||||||||||
Stockholders' equity of Broadway Financial Corporation |
|
143,463 |
|
|
48,885 |
|
||||||||||
Tangible book value per share | $ |
1.55 |
|
$ |
1.74 |
|
||||||||||
Equity to total assets |
|
13.78 |
% |
|
10.11 |
% |
||||||||||
Asset Quality Ratios: | ||||||||||||||||
Non-accrual loans to total loans |
|
0.12 |
% |
|
0.22 |
% |
||||||||||
Non-performing assets to total assets |
|
0.07 |
% |
|
0.16 |
% |
||||||||||
Allowance for loan losses to total gross loans |
|
0.53 |
% |
|
0.88 |
% |
||||||||||
Allowance for loan losses to non-performing loans |
|
448.44 |
% |
|
408.51 |
% |
||||||||||
Non-Performing Assets: | ||||||||||||||||
Non-accrual loans | $ |
735 |
|
$ |
787 |
|
||||||||||
Loans delinquent 90 days or more and still accruing |
|
- |
|
|
- |
|
||||||||||
Real estate acquired through foreclosure |
|
- |
|
|
- |
|
||||||||||
Total non-performing assets | $ |
735 |
|
$ |
787 |
|
||||||||||
Delinquent loans (greater than 30 days) | $ |
1,885 |
|
$ |
- |
|
||||||||||
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
Selected Operating Data and Ratios: |
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
||||
Interest income | $ |
6,884 |
|
$ |
4,568 |
|
$ |
10,661 |
|
$ |
9,139 |
|
||||
Interest expense |
|
1,063 |
|
|
1,537 |
|
|
1,995 |
|
|
3,210 |
|
||||
Net interest income |
|
5,821 |
|
|
3,031 |
|
|
8,666 |
|
|
5,929 |
|
||||
Loan loss provision |
|
81 |
|
|
- |
|
|
81 |
|
|
29 |
|
||||
Net interest income after loan loss provision |
|
5,740 |
|
|
3,031 |
|
|
8,585 |
|
|
5,900 |
|
||||
Non-interest income |
|
2,192 |
|
|
242 |
|
|
2,315 |
|
|
439 |
|
||||
Non-interest expense |
|
(5,374 |
) |
|
(3,402 |
) |
|
(14,001 |
) |
|
(6,551 |
) |
||||
Income (loss) before income taxes |
|
2,558 |
|
|
(129 |
) |
|
(3,101 |
) |
|
(212 |
) |
||||
Income tax expense (benefit) |
|
1,824 |
|
|
(345 |
) |
|
(348 |
) |
|
(395 |
) |
||||
Net income (loss) |
|
734 |
|
|
216 |
|
|
(2,753 |
) |
|
183 |
|
||||
Less: Net income attributable to non-controlling interest |
|
(33 |
) |
|
- |
|
|
(33 |
) |
|
- |
|
||||
Net Income Attributable to Broadway Financial Corporation | $ |
701 |
|
$ |
216 |
|
$ |
(2,786 |
) |
$ |
183 |
|
||||
Earnings per common share-diluted | $ |
0.01 |
|
$ |
0.01 |
|
$ |
(0.06 |
) |
$ |
0.01 |
|
||||
Loan originations (1) | $ |
89,114 |
|
$ |
49,601 |
|
$ |
113,075 |
|
$ |
115,540 |
|
||||
Net recoveries to average loans |
|
(0.00 |
)% |
(2) |
|
(0.00 |
)% |
(2) |
|
(0.00 |
)% |
(2) |
|
(0.00 |
)% |
(2) |
Return on average assets |
|
0.27 |
% |
(2) |
|
0.17 |
% |
(2) |
|
-0.73 |
% |
(2) |
|
0.07 |
% |
(2) |
Return on average equity |
|
1.97 |
% |
(2) |
|
1.76 |
% |
(2) |
|
-5.83 |
% |
(2) |
|
0.75 |
% |
(2) |
Net interest margin |
|
2.33 |
% |
(2) |
|
2.43 |
% |
(2) |
|
2.35 |
% |
(2) |
|
2.45 |
% |
(2) |
(1) |
|
Does not include net deferred origination costs. |
(2) |
|
Annualized |
BROADWAY FINANCIAL CORPORATION AND SUBSIDIARY |
||||||||
Consolidated Statements of Financial Condition |
||||||||
(In thousands, except share and per share amounts) |
||||||||
|
June 30, 2021 |
|
December 31, 2020 |
|||||
|
(Unaudited) |
|
|
|||||
Assets: |
|
|
|
|||||
Cash and due from banks |
$ |
41,730 |
|
|
$ |
71,110 |
|
|
Interest-bearing deposits in other banks |
|
168,653 |
|
|
|
24,999 |
|
|
Cash and cash equivalents |
|
210,383 |
|
|
|
96,109 |
|
|
Securities available-for-sale, at fair value |
|
158,832 |
|
|
|
10,698 |
|
|
Loans receivable held for investment, net of allowance of |
|
614,718 |
|
|
|
360,129 |
|
|
Accrued interest receivable |
|
2,572 |
|
|
|
1,202 |
|
|
Federal Home Loan Bank (FHLB) stock |
|
2,896 |
|
|
|
3,431 |
|
|
Federal Reserve Bank (FRB) stock |
|
693 |
|
|
|
- |
|
|
Office properties and equipment, net |
|
9,159 |
|
|
|
2,540 |
|
|
Bank owned life insurance |
|
3,168 |
|
|
|
3,147 |
|
|
Deferred tax assets, net |
|
5,513 |
|
|
|
5,633 |
|
|
Core deposit intangible |
|
3,198 |
|
|
|
- |
|
|
Goodwill |
|
25,996 |
|
|
|
- |
|
|
Other assets |
|
3,870 |
|
|
|
489 |
|
|
Total assets |
$ |
1,040,998 |
|
|
$ |
483,378 |
|
|
|
|
|
|
|||||
Liabilities and stockholders’ equity |
|
|
|
|||||
|
|
|
|
|||||
Liabilities: |
|
|
|
|||||
Deposits |
$ |
705,041 |
|
|
$ |
315,630 |
|
|
Securities sold under agreements to repurchase |
|
70,660 |
|
|
|
- |
|
|
FHLB advances |
|
96,022 |
|
|
|
110,500 |
|
|
Junior subordinated debentures |
|
2,805 |
|
|
|
3,315 |
|
|
Notes payable of the VIE |
|
14,000 |
|
|
|
- |
|
|
Accrued expenses and other liabilities |
|
8,975 |
|
|
|
5,048 |
|
|
Total liabilities |
|
897,503 |
|
|
$ |
434,493 |
|
|
Stockholders' Equity: |
|
|
|
|||||
Cumulative Redeemable Perpetual Preferred stock, Series A, $.01 par value, authorized 3,000 shares at June 30, 2021 and none at December 31, 2020; issued and outstanding 3,000 shares at June 30, 2021 and none at December 31, 2020 |
|
3,000 |
|
|
|
- |
|
|
Common stock, Class A, $.01 par value, voting, authorized 75,000,000 shares at June 30, 2021 and 50,000,000 shares at December 31, 2020; issued 46,248,710 shares at June 30, 2021 and 21,899,584 shares at December 31, 2020; outstanding 43,630,884 shares at June 30, 2021 and 19,281,758 shares at December 31, 2020 |
|
462 |
|
|
|
219 |
|
|
Common stock, Class B, $.01 par value, non-voting, authorized 15,000,000 shares at June 30, 2021 and none at December 31, 2020; issued and outstanding 11,404,621 shares at June 30, 2021 and none at December 31, 2020 |
|
114 |
|
|
|
- |
|
|
Common stock, Class C, $.01 par value, non-voting, authorized 25,000,000 shares at June 30, 2021 and December 31, 2020; issued and outstanding 16,689,775 at June 30, 2021 and 8,756,396 shares at December 31, 2020 |
|
167 |
|
|
|
87 |
|
|
Additional paid-in capital |
|
140,125 |
|
|
|
46,851 |
|
|
Retained earnings |
|
4,997 |
|
|
|
7,783 |
|
|
Unearned Employee Stock Ownership Plan (ESOP) shares |
|
(861 |
) |
|
|
(893 |
) |
|
Accumulated other comprehensive gain (loss), net of tax |
|
785 |
|
|
|
164 |
|
|
Treasury stock-at cost, 2,617,826 shares at June 30, 2021 and at December 31, 2020 |
|
(5,326 |
) |
|
|
(5,326 |
) |
|
Total Broadway Financial Corporation and Subsidiary stockholders’ equity |
|
143,463 |
|
|
|
48,885 |
|
|
Non-controlling interest |
|
32 |
|
|
|
- |
|
|
Total liabilities and stockholders’ equity |
$ |
1,040,998 |
|
|
$ |
483,378 |
|
BROADWAY FINANCIAL CORPORATION AND SUBSIDIARY |
||||||||||||||||
Consolidated Statements of Operations and Comprehensive Income (Loss) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
(In thousands, except per share) |
||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
Interest income: |
|
|
|
|
|
|
|
|
||||||||
Interest and fees on loans receivable |
|
$ |
6,300 |
|
|
$ |
4,429 |
|
|
$ |
9,944 |
|
|
$ |
8,788 |
|
Interest on mortgage-backed and other securities |
|
|
440 |
|
|
|
65 |
|
|
|
496 |
|
|
|
135 |
|
Other interest income |
|
|
144 |
|
|
|
74 |
|
|
|
221 |
|
|
|
216 |
|
Total interest income |
|
|
6,884 |
|
|
|
4,568 |
|
|
|
10,661 |
|
|
|
9,139 |
|
|
|
|
|
|
|
|
|
|
||||||||
Interest expense: |
|
|
|
|
|
|
|
|
||||||||
Interest on deposits |
|
|
477 |
|
|
|
967 |
|
|
|
860 |
|
|
|
2,022 |
|
Interest on borrowings |
|
|
586 |
|
|
|
570 |
|
|
|
1,135 |
|
|
|
1,188 |
|
Total interest expense |
|
|
1,063 |
|
|
|
1,537 |
|
|
|
1,995 |
|
|
|
3,210 |
|
|
|
|
|
|
|
|
|
|
||||||||
Net interest income |
|
|
5,821 |
|
|
|
3,031 |
|
|
|
8,666 |
|
|
|
5,929 |
|
Loan loss provision |
|
|
81 |
|
|
|
- |
|
|
|
81 |
|
|
|
29 |
|
Net interest income after loan loss provision (recapture) |
|
|
5,740 |
|
|
|
3,031 |
|
|
|
8,585 |
|
|
|
5,900 |
|
|
|
|
|
|
|
|
|
|
||||||||
Non-interest income: |
|
|
|
|
|
|
|
|
||||||||
Service charges |
|
|
36 |
|
|
|
94 |
|
|
|
129 |
|
|
|
238 |
|
Gain on sale of loans |
|
|
- |
|
|
|
116 |
|
|
|
- |
|
|
|
123 |
|
CDFI Grant |
|
|
1,826 |
|
|
|
- |
|
|
|
1,826 |
|
|
|
- |
|
Other |
|
|
330 |
|
|
|
32 |
|
|
|
360 |
|
|
|
78 |
|
Total non-interest income |
|
|
2,192 |
|
|
|
242 |
|
|
|
2,315 |
|
|
|
439 |
|
|
|
|
|
|
|
|
|
|
||||||||
Non-interest expense: |
|
|
|
|
|
|
|
|
||||||||
Compensation and benefits |
|
|
2,819 |
|
|
|
1,983 |
|
|
|
8,209 |
|
|
|
4,038 |
|
Occupancy expense |
|
|
627 |
|
|
|
320 |
|
|
|
935 |
|
|
|
635 |
|
Information services |
|
|
566 |
|
|
|
221 |
|
|
|
807 |
|
|
|
458 |
|
Professional services |
|
|
513 |
|
|
|
571 |
|
|
|
2,452 |
|
|
|
835 |
|
Supervisory costs |
|
|
177 |
|
|
|
95 |
|
|
|
247 |
|
|
|
112 |
|
Office services and supplies |
|
|
59 |
|
|
|
87 |
|
|
|
154 |
|
|
|
163 |
|
Loan related expenses |
|
|
76 |
|
|
|
(17 |
) |
|
|
106 |
|
|
|
(10 |
) |
Corporate insurance |
|
|
8 |
|
|
|
32 |
|
|
|
254 |
|
|
|
64 |
|
Amortization of core deposit intangible |
|
|
131 |
|
|
|
- |
|
|
|
131 |
|
|
|
- |
|
Other |
|
|
398 |
|
|
|
110 |
|
|
|
706 |
|
|
|
256 |
|
Total non-interest expense |
|
|
5,374 |
|
|
|
3,402 |
|
|
|
14,001 |
|
|
|
6,551 |
|
|
|
|
|
|
|
|
|
|
||||||||
Income (loss) before income taxes |
|
|
2,558 |
|
|
|
(129 |
) |
|
|
(3,101 |
) |
|
|
(212 |
) |
Income tax expense (benefit ) |
|
|
1,824 |
|
|
|
(345 |
) |
|
|
(348 |
) |
|
|
(395 |
) |
Net income (loss) |
|
$ |
734 |
|
|
$ |
216 |
|
|
$ |
(2,753 |
) |
|
$ |
183 |
|
Less: Net income attributable to non-controlling interest |
|
|
(33 |
) |
|
|
- |
|
|
|
(33 |
) |
|
|
- |
|
Net Income Attributable to Broadway Financial Corporation |
|
$ |
701 |
|
|
$ |
216 |
|
|
$ |
(2,786 |
) |
|
$ |
183 |
|
|
|
|
|
|
|
|
|
|
||||||||
Other comprehensive income, net of tax: |
|
|
|
|
|
|
|
|
||||||||
Unrealized gains on securities available-for-sale arising during the period |
|
$ |
1,022 |
|
|
$ |
155 |
|
|
$ |
864 |
|
|
$ |
330 |
|
Income tax expense |
|
|
290 |
|
|
|
46 |
|
|
|
243 |
|
|
|
98 |
|
Other comprehensive income, net of tax |
|
|
732 |
|
|
|
109 |
|
|
|
621 |
|
|
|
232 |
|
|
|
|
|
|
|
|
|
|
||||||||
Comprehensive income (loss) |
|
$ |
1,466 |
|
|
$ |
325 |
|
|
$ |
(2,132 |
) |
|
$ |
415 |
|
|
|
|
|
|
|
|
|
|
||||||||
Earnings (loss) per common share-basic |
|
$ |
0.01 |
|
|
$ |
0.01 |
|
|
$ |
(0.06 |
) |
|
$ |
0.01 |
|
Earnings (loss) per common share-diluted |
|
$ |
0.01 |
|
|
$ |
0.01 |
|
|
$ |
(0.06 |
) |
|
$ |
0.01 |
|
BROADWAY FINANCIAL CORPORATION AND SUBSIDIARY |
||||||||
Consolidated Statements of Cash Flows |
||||||||
(Unaudited) |
||||||||
|
Six Months Ended June 30, |
|||||||
|
|
2021 |
|
|
2020 |
|
||
|
(In thousands) |
|||||||
Cash flows from operating activities: |
|
|
||||||
|
|
|
||||||
Net (loss) income |
$ |
(2,753 |
) |
$ |
183 |
|
||
Adjustments to reconcile net income to net cash used in operating activities: |
|
|
||||||
Loan loss provision |
|
81 |
|
|
29 |
|
||
Depreciation |
|
345 |
|
|
115 |
|
||
Net amortization of deferred loan origination costs |
|
964 |
|
|
136 |
|
||
Net amortization of premiums on mortgage-backed securities |
|
231 |
|
|
19 |
|
||
Amortization of investment in affordable housing limited partnership |
|
26 |
|
|
53 |
|
||
Amortization of core deposit intangible |
|
131 |
|
|
- |
|
||
Director compensation expense-common stock |
|
45 |
|
|
45 |
|
||
Amortization of premium on FHLB stock |
|
(7 |
) |
|
- |
|
||
Stock-based compensation expense |
|
169 |
|
|
179 |
|
||
Valuation allowance on deferred tax asset |
|
370 |
|
|
- |
|
||
ESOP compensation expense |
|
47 |
|
|
32 |
|
||
Earnings on bank owned life insurance |
|
(21 |
) |
|
(23 |
) |
||
Originations of loans receivable held for sale |
|
- |
|
|
(110,908 |
) |
||
Proceeds from sales of loans receivable held for sale |
|
- |
|
|
60,997 |
|
||
Repayments on loans receivable held for sale |
|
- |
|
|
315 |
|
||
Gain on sale of loans receivable held for sale |
|
- |
|
|
(123 |
) |
||
Change in assets and liabilities: |
|
|
||||||
Net change in deferred taxes |
|
(1,210 |
) |
|
(271 |
) |
||
Net change in accrued interest receivable |
|
267 |
|
|
(68 |
) |
||
Net change in other assets |
|
(1,118 |
) |
|
(349 |
) |
||
Net change in advance payments by borrowers for taxes and insurance |
|
310 |
|
|
43 |
|
||
Net change in accrued expenses and other liabilities |
|
(447 |
) |
|
442 |
|
||
Net cash used in operating activities |
|
(2,570 |
) |
|
(49,154 |
) |
||
|
|
|
||||||
Cash flows from investing activities: |
|
|
||||||
|
|
|
||||||
Cash acquired in merger |
|
84,745 |
|
|
- |
|
||
Net change in loans receivable held for investment |
|
(29,749 |
) |
|
23,265 |
|
||
Principal payments on available-for-sale securities |
|
6,547 |
|
|
1,125 |
|
||
Purchase of available-for-sale securities |
|
(4,073 |
) |
|
- |
|
||
Purchase of FHLB stock |
|
(152 |
) |
|
(670 |
) |
||
Proceeds from redemption of FHLB stock |
|
1,055 |
|
|
- |
|
||
Purchase of office properties and equipment |
|
(56 |
) |
|
- |
|
||
Disposals of office property and equipment |
|
45 |
|
|
(328 |
) |
||
Net cash provided by investing activities |
|
58,362 |
|
|
23,392 |
|
||
|
|
|
||||||
Cash flows from financing activities: |
|
|
||||||
|
|
|
||||||
Net change in deposits |
|
35,690 |
|
|
18,054 |
|
||
Net increase in securities sold under agreements to repurchase |
|
10,613 |
|
|
- |
|
||
Proceeds from sale of stock (net of costs) |
|
30,837 |
|
|
- |
|
||
Distributions to non-controlling interest |
|
(165 |
) |
|
||||
Proceeds from FHLB advances |
|
5,000 |
|
|
66,000 |
|
||
Repayments of FHLB advances |
|
(22,535 |
) |
|
(33,500 |
) |
||
Stock cancelled for income tax withholding |
|
(448 |
) |
|
- |
|
||
Repayments of junior subordinated debentures |
|
(510 |
) |
|
(510 |
) |
||
Net cash provided by financing activities |
|
58,482 |
|
|
50,044 |
|
||
Net change in cash and cash equivalents |
|
114,274 |
|
|
24,282 |
|
||
Cash and cash equivalents at beginning of the period |
|
96,109 |
|
|
15,566 |
|
||
Cash and cash equivalents at end of the period |
$ |
210,383 |
|
$ |
39,848 |
|
||
Supplemental disclosures of cash flow information: |
|
|
||||||
Cash paid for interest |
$ |
1,803 |
|
$ |
3,290 |
|
||
Cash paid for income taxes |
|
429 |
|
|
3 |
|
||
Assets acquired (liabilities assumed) in acquisition: |
|
|
||||||
Securities available for sale, at fair value |
$ |
149,975 |
|
$ |
- |
|
||
Loans receivable |
|
225,885 |
|
|
- |
|
||
Accrued interest receivable |
|
1,637 |
|
|
- |
|
||
FHLB and FRB stock |
|
1,061 |
|
|
- |
|
||
Office property and equipment |
|
6,953 |
|
|
- |
|
||
Goodwill |
|
25,966 |
|
|
- |
|
||
Core deposit intangible |
|
3,329 |
|
|
- |
|
||
Other assets |
|
2,290 |
|
|
- |
|
||
Deposits |
|
(353,721 |
) |
|
- |
|
||
FHLB advances |
|
(3,166 |
) |
|
- |
|
||
Securities sold under agreements to repurchase |
|
(59,945 |
) |
|
- |
|
||
Other borrowings |
|
(14,000 |
) |
|
- |
|
||
Deferred taxes |
|
(717 |
) |
|
- |
|
||
Accrued expenses and other liabilities |
|
(4,064 |
) |
|
- |
|
||
Preferred stock |
|
(3,000 |
) |
|
- |
|
||
Common stock |
|
(63,257 |
) |
|
- |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20210816005720/en/
FAQ
What were Broadway Financial Corporation's earnings in Q2 2021?
What significant event occurred on April 1, 2021 for Broadway Financial Corporation?
How did the merger impact Broadway's financials?
What was the net interest income for Broadway in Q2 2021?
How much capital did Broadway Financial raise after the merger?