Broadway Financial Corporation Announces Results for 1st Quarter 2022
Net earnings for the first quarter of 2022 include the consolidated operations of
Results for the first quarter of 2022 were favorably impacted by an increase in net interest income of
First Quarter 2022 Highlights:
-
Total assets increased to over
$1.1 billion , representing an increase of over 18%, since the Merger. - Loan originations grew by over 125% compared to the first quarter of 2021.
-
Total loans exceeded
$650 million at the end of the first quarter, representing growth of 11% since the Merger. - Net interest income increased over 150% compared to the first quarter of 2021.
- The Company exchanged all outstanding shares of Series A Preferred Stock for newly issued shares of Class A Common Stock.
Chief Executive Officer,
“I also wish to highlight that during the first quarter we completed the exchange of the Company’s Series A Preferred Stock for newly issued shares of Class A Common Stock, which eliminated the 4% dividend requirement on the Series A Preferred and further simplified our capital structure in preparation for the anticipated issuance of
Net Interest Income
First Quarter of 2022 Compared to First Quarter of 2021
Net interest income before loan loss provision for the first quarter of 2022 totaled
Interest income and fees on loans receivable increased by
Interest income on securities increased by
Other interest income increased by
Interest expense for the first quarter of 2022 decreased by
Interest expense on deposits decreased by
Interest expense on borrowings decreased by
The net interest margin increased to 2.76% for the first quarter of 2022 from 2.40% for the first quarter of 2021, primarily due to an increase in the volume of interest-earning assets (mainly due to an increase in the average balance of loans receivable), the contribution of higher loan yields earned on the commercial loan portfolio acquired in the Merger and a decrease in the average rate paid on interest-bearing liabilities of 48 basis points.
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For the three months ended |
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(Dollars in Thousands) |
Average Balance |
Interest |
Average Yield/ Cost |
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Average Balance |
Interest |
Average Yield/ Cost |
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Assets |
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Interest-earning assets: |
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Interest-earning deposits |
$ |
220,266 |
$ |
84 |
0.15 |
% |
$ |
98,183 |
$ |
35 |
0.14 |
% |
|||||
Securities |
|
160,968 |
|
553 |
1.37 |
% |
|
10,414 |
|
56 |
2.15 |
% |
|||||
Loans receivable (1) |
|
653,493 |
|
7,336 |
4.49 |
% |
|
361,487 |
|
3,644 |
4.03 |
% |
|||||
FRB and FHLB stock |
|
3,046 |
|
38 |
4.99 |
% |
|
3,431 |
|
42 |
4.90 |
% |
|||||
Total interest-earning assets |
|
1,037,773 |
$ |
8,011 |
3.09 |
% |
|
473,515 |
$ |
3,777 |
3.19 |
% |
|||||
Non-interest-earning assets |
|
74,542 |
|
|
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|
|
11,064 |
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Total assets |
$ |
1,112,315 |
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$ |
484,579 |
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Liabilities and Stockholders’ Equity |
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Interest-bearing liabilities: |
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Money market deposits |
$ |
207,078 |
$ |
189 |
0.37 |
% |
$ |
76,750 |
$ |
81 |
0.42 |
% |
|||||
Passbook deposits |
|
66,825 |
|
8 |
0.05 |
% |
|
64,044 |
|
57 |
0.36 |
% |
|||||
NOW and other demand deposits |
|
230,461 |
|
39 |
0.07 |
% |
|
54,650 |
|
7 |
0.05 |
% |
|||||
Certificate accounts |
|
201,446 |
|
114 |
0.23 |
% |
|
120,857 |
|
238 |
0.79 |
% |
|||||
Total deposits |
|
705,810 |
|
350 |
0.20 |
% |
|
316,301 |
|
383 |
0.48 |
% |
|||||
FHLB advances |
|
77,849 |
|
342 |
1.76 |
% |
|
110,500 |
|
527 |
1.91 |
% |
|||||
Junior subordinated debentures |
|
- |
|
- |
0.00 |
% |
|
3,275 |
|
22 |
2.69 |
% |
|||||
Other borrowings |
|
68,019 |
|
147 |
0.86 |
% |
|
- |
|
- |
0.00 |
% |
|||||
Total borrowings |
|
145,868 |
|
489 |
1.34 |
% |
|
113,775 |
|
549 |
1.93 |
% |
|||||
Total interest-bearing liabilities |
|
851,678 |
$ |
839 |
0.39 |
% |
|
430,076 |
$ |
932 |
0.87 |
% |
|||||
Non-interest-bearing liabilities |
|
121,912 |
|
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|
5,832 |
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Stockholders’ equity |
|
138,725 |
|
48,671 |
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Total liabilities and stockholders’ equity |
$ |
1,112,315 |
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$ |
484,579 |
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Net interest rate spread (2) |
|
|
$ |
7,712 |
2.70 |
% |
|
|
$ |
2,845 |
2.32 |
% |
|||||
Net interest rate margin (3) |
|
|
|
|
2.76 |
% |
|
|
|
|
2.40 |
% |
|||||
Ratio of interest-earning assets to interest-bearing liabilities |
|
|
121.85 |
% |
|
|
|
|
110.10 |
% |
(1) |
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Amount is net of deferred loan fees, loan discounts and loans in process, and includes deferred origination costs and loan premiums. |
(2) |
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Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities. |
(3) |
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Net interest rate margin represents net interest income as a percentage of average interest-earning assets. |
Loan Loss Provision
The Company recorded a loan loss provision of
Non-interest Income
Non-interest income for the first quarter of 2022 totaled
Non-interest Expense
Total non-interest expense was
Income Taxes
Income taxes are computed by applying the statutory federal income tax rate of 21% and the
The Company had a valuation allowance of
Balance Sheet Summary
Total assets increased by
Loans held for investment, net of the allowance for loan losses, increased by
Deposits increased by
Total borrowings decreased by
Stockholders’ equity was
At
During the first quarter of 2022 the Company completed the exchange of all the outstanding Series A Fixed Rate Cumulative Redeemable Preferred Stock, with an aggregate liquidation value of
This press release shall not constitute an offer to sell, a solicitation of an offer to sell, or the solicitation of an offer to buy any securities.
About
Stockholders, analysts, and others seeking information about the Company are invited to write to:
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, including as a result of the military conflict between
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) | ||||||||||
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Selected Financial Condition Data and Ratios: | ||||||||||
Cash and cash equivalents |
$ |
246,106 |
|
$ |
231,520 |
|
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Securities available-for-sale, at fair value |
|
170,308 |
|
|
156,396 |
|
||||
Loans receivable held for investment |
|
656,914 |
|
|
651,904 |
|
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Allowance for loan losses |
|
(3,539 |
) |
|
(3,391 |
) |
||||
Loans receivable held for investment, net of allowance |
|
653,375 |
|
|
648,513 |
|
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Total assets |
|
1,131,125 |
|
|
1,093,505 |
|
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Deposits |
|
839,714 |
|
|
788,502 |
|
||||
FHLB advances |
|
73,001 |
|
|
85,952 |
|
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Securities sold under agreements to repurchase |
|
56,003 |
|
|
51,960 |
|
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Notes payable |
|
14,000 |
|
|
14,000 |
|
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Total stockholders' equity |
|
136,213 |
|
|
141,000 |
|
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Book value per share |
$ |
1.85 |
|
$ |
1.92 |
|
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Equity to total assets |
|
12.04 |
% |
|
12.89 |
% |
||||
Asset Quality Ratios: | ||||||||||
Non-accrual loans to total loans |
|
0.10 |
% |
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0.10 |
% |
||||
Non-performing assets to total assets |
|
0.06 |
% |
|
0.06 |
% |
||||
Allowance for loan losses to total gross loans |
|
0.54 |
% |
|
0.52 |
% |
||||
Allowance for loan losses to non-performing loans |
|
541.96 |
% |
|
495.80 |
% |
||||
Non-Performing Assets: | ||||||||||
Non-accrual loans |
$ |
653 |
|
$ |
684 |
|
||||
Loans delinquent 90 days or more and still accruing |
|
- |
|
|
- |
|
||||
Real estate acquired through foreclosure |
|
- |
|
|
- |
|
||||
Total non-performing assets |
$ |
653 |
|
$ |
684 |
|
||||
Delinquent loans (including less than 30 days delinquent) |
$ |
2,944 |
|
$ |
2,423 |
|
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Three Months Ended |
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Selected Operating Data and Ratios: |
2022 |
2021 |
||||||||
Interest income |
$ |
8,011 |
|
$ |
3,777 |
|
||||
Interest expense |
|
839 |
|
|
932 |
|
||||
Net interest income |
|
7,172 |
|
|
2,845 |
|
||||
Loan loss provision |
|
147 |
|
|
- |
|
||||
Net interest income after loan loss provision |
|
7,025 |
|
|
2,845 |
|
||||
Non-interest income |
|
280 |
|
|
123 |
|
||||
Non-interest expense |
|
(5,960 |
) |
|
(8,627 |
) |
||||
Income (loss) before income taxes |
|
1,345 |
|
|
(5,659 |
) |
||||
Income tax expense (benefit) |
|
363 |
|
|
(2,172 |
) |
||||
Net income (loss) |
$ |
982 |
|
$ |
(3,487 |
) |
||||
Net income - non-controlling interest |
|
24 |
|
|
- |
|
||||
Net income (loss) |
$ |
958 |
|
$ |
(3,487 |
) |
||||
Earnings per common share-diluted |
$ |
0.01 |
|
$ |
(0.13 |
) |
||||
Loan originations (1) |
$ |
54,705 |
|
$ |
23,961 |
|
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Net recoveries to average loans |
|
(0.00 |
)% |
(2 |
) |
|
(0.00 |
)% |
||
Return on average assets |
|
0.35 |
% |
(2 |
) |
|
-2.88 |
% |
||
Return on average equity |
|
2.83 |
% |
(2 |
) |
|
-28.66 |
% |
||
Net interest margin |
|
2.76 |
% |
(2 |
) |
|
2.40 |
% |
(1) |
Does not include net deferred origination costs. | |
(2) |
Annualized |
View source version on businesswire.com: https://www.businesswire.com/news/home/20220510006481/en/
Investor Relations
Investor.relations@broadwayfederalbank.com
Source: