Business
Broadway Financial Corporation Announces Results for 1st Quarter 2021
Merger of Equals with CFBanc Corporation Closed April 1, 2021 LOS ANGELES--(BUSINESS WIRE)-- Broadway Financial Corporation (“Broadway”) (NASDAQ Capital
About this update from Broadway Financial Corporation
[{"type":"text","content":"\nMerger of Equals with CFBanc Corporation Closed April 1, 2021\n\n LOS ANGELES--(BUSINESS WIRE)--\nBroadway Financial Corporation (“Broadway”) (NASDAQ Capital Market: BYFC), reported a consolidated net loss of $3.5 million, or ($0.13) per share, for the first quarter of 2021, compared to a consolidated net loss of $33 thousand, or $0.00 per share, for the first quarter of 2020.\n\nThe results for the first quarter of 2021 and 2020 are results of Broadway Financial Corporation and its subsidiary, Broadway Federal Bank, f.s.b. ( “Broadway Bank” or the “Bank”) on a standalone basis, and do not include any results of CFBanc Corporation and its subsidiaries.\n\nBroadway Financial Corporation completed its merger with CFBanc Corporation on April 1, 2021, with Broadway Financial Corporation continuing as the surviving entity. Immediately following this merger, Broadway Bank merged with and into City First Bank of D.C, National Association with City First Bank of D.C., National Association continuing as the surviving entity (which concurrently changed its name to City First Bank, National Association). Following the merger, Broadway completed the sale of 18,474,000 shares of common stock in private placements with institutional and accredited investors, raising $32.9 million in gross proceeds, with both the merger and completed private placement significantly increasing Broadway’s total equity capitalization and potential for growth and increased lending in low-to-moderate income communities.\n\nThe loss during the first quarter of 2021 was primarily due to merger-related expenses of $5.4 million, which included $3.4 million in severance and other compensation costs, $1.8 million in professional service expenses and $213 thousand for insurance.\n\nBrenda Battey, Chief Financial Officer of Broadway and its former subsidiary Broadway Bank, commented, “The first quarter was an eventful quarter in the history of Broadway. While financial results were adversely affected by non-recurring expenses associated with the merger with CFBanc Corporation, Broadway finished the quarter without any delinquencies or requests from customers for loan modifications related to the enduring COVID-19 Pandemic. Excluding the merger-related expenses, Broadway had a nominal loss for the quarter, reflecting compression in net interest margins, which has been per...