Business
Broadway Financial Corporation Announces Results for 2nd Quarter 2022
LOS ANGELES--(BUSINESS WIRE)-- Broadway Financial Corporation (“Broadway”, “we”, or the “Company”) (NASDAQ Capital Market: BYFC) reported consolidated net
About this update from Broadway Financial Corporation
[{"type":"text","content":" LOS ANGELES--(BUSINESS WIRE)--\nBroadway Financial Corporation (“Broadway”, “we”, or the “Company”) (NASDAQ Capital Market: BYFC) reported consolidated net earnings of $1.9 million, or $0.03 per diluted share, for the second quarter of 2022, compared to consolidated net earnings of $701 thousand, or $0.01 per diluted share, for the second quarter of 2021 and consolidated net earnings of $958 thousand, or $0.01 per diluted share, for the first quarter of 2022. These three periods reflect the consolidated operations of CFBanc Corporation (“CFB”), which was merged with and into Broadway on April 1, 2021 (the “Merger”).\n\nFor the first six months of 2022, the Company reported net earnings of $2.8 million, or $0.04 per diluted share, compared to a net loss of $2.8 million, or ($0.06) per diluted share for the first six months of 2021, which was significantly impacted by Merger-related costs of $5.6 million ($4.2 million net of tax). The Company’s results for the first six months of 2021 reflect the consolidated operations of CFB after the Merger on April 1, 2021.\n\nAs previously announced, during the latter part of the second quarter the Company closed a private placement of shares of the Company’s Senior Non-Cumulative Perpetual Preferred Stock, Series C (“Series C Preferred Stock”), pursuant to a Purchase Agreement with the United States Department of the Treasury (the “Purchaser”) as part of the Emergency Capital Investment Program (“ECIP”), which has provided funding to Minority Depository Institutions and Community Development Financial Institutions to increase access to capital for underserved communities that may have been disproportionately impacted by the economic effects of the COVID-19 pandemic. Pursuant to the Purchase Agreement, the Purchaser acquired an aggregate of 150,000 shares of Series C Preferred Stock for an aggregate purchase price equal to $150.0 million in cash, which is intended to qualify as Tier 1 Capital. The initial dividend rate of the Series C Preferred Stock is zero percent for the first two years after issuance, and thereafter the floor dividend rate is 0.50% and the ceiling dividend rate is 2.00%. While the Company works to deploy the proceeds, the funds are being invested in liquid investments and short-term securities.\n\nDuring the second quarter of 2022 net interest income increased by $2.2 mi...