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Broadway Financial Corporation Announces Results for 3rd Quarter 2020
LOS ANGELES--(BUSINESS WIRE)-- Broadway Financial Corporation (the “Company”) (The Nasdaq Stock Market LLC: BYFC), parent company of Broadway Federal Bank,
About this update from Broadway Financial Corporation
[{"type":"text","content":" LOS ANGELES--(BUSINESS WIRE)--\nBroadway Financial Corporation (the “Company”) (The Nasdaq Stock Market LLC: BYFC), parent company of Broadway Federal Bank, f.s.b. (the “Bank”), today reported a net loss of $244 thousand, or ($0.01) per diluted share, for the third quarter of 2020, compared to a net loss of $279 thousand, or ($0.01) per diluted share, for the third quarter of 2019.\n\nDuring the third quarter of 2020, the Bank increased net interest income after loan loss provision by $1 million because of growth in the loan portfolio, a decrease in the cost of funds and a decrease in loan loss provision. The growth in net interest income was more than offset by an increase in non-interest expense of $588 thousand, a decrease in non-interest income of $138 thousand, and an increase in income tax expense of $271 thousand. During the quarter, professional services expense increased to $840 thousand, of which $595 thousand was associated with the pending merger with CFBanc Corporation. As certain merger-related expenses are non-deductible, income tax expense was higher than expected by $167 thousand during the third quarter.\n\nFor the nine months ended September 30, 2020, the Company reported a net loss of $61 thousand, or ($0.00) per diluted share, compared to a net loss of $137 thousand, or ($0.01) per diluted share, for the nine months ended September 30, 2019. The loss during the nine months ended September 30, 2020 was primarily due to merger-related expenses of $718 thousand, as well as $210 thousand of expenses incurred to respond to actions by a former stockholder. During the nine months ended September 30, 2020, the Company increased net interest income before loan loss provision (recapture) by $1.6 million compared to the same period of 2019 because of growth in the loan portfolio and a decrease in the cost of funds. These increases were partially offset by a loan loss provision of $29 thousand recorded during the nine months ended September 30, 2020 compared to a loan loss recapture of $301 thousand recorded during the same period of 2019. Also, there was no grant income in the nine months ended September 30, 2020 but the Bank received a grant of $233 thousand from the U.S. Department of the Treasury’s Community Development Financial Institution (“CDFI”) Fund during the nine months ended September 30, 2019. During the ...