Business
Broadway Financial Corporation Announces Results for Fourth Quarter and Full Year 2020
Received Regulatory Approvals Necessary for Pending Merger with CFBanc Corporation Special Meeting to Vote on Merger and Private Placements Set for March 17
About this update from Broadway Financial Corporation
[{"type":"text","content":"\nReceived Regulatory Approvals Necessary for Pending Merger with CFBanc Corporation\n\nSpecial Meeting to Vote on Merger and Private Placements Set for March 17\n\n LOS ANGELES--(BUSINESS WIRE)--\nBroadway Financial Corporation (the “Company”) (NASDAQ Capital Market: BYFC), parent company of Broadway Federal Bank, f.s.b. (the “Bank”), today reported a net loss of $581 thousand, or ($0.02) per share, for the fourth quarter of 2020 compared to a net loss of $69 thousand, or less than $0.01 per share, for the fourth quarter of 2019 and a net loss of $244 thousand, or ($0.01) per diluted share for the prior quarter.\n\nThe loss during the fourth quarter of 2020 was primarily due to costs associated with the pending merger with CFBanc Corporation, post-merger integration, and related private placements of equity capital. During the fourth quarter of 2020, the Company accrued $580 thousand of bonuses for key employees and incurred $241 thousand of professional service fees that were related to the pending merger and planning for post-merger integration and the private placements. The professional service fees related to the pending merger are not deductible for tax purposes. As a result, income tax expense was $71 thousand higher than normal during the fourth quarter of 2020. These costs in the fourth quarter were partially offset by an increase in net interest income after loan loss provision, which increased by $363 thousand, and gain on sale of loans, which increased by $77 thousand. Also, results during the fourth quarter of 2020 included a grant of $203 thousand from the U.S. Department of the Treasury’s Community Development Financial Institution (“CDFI”) Fund, whereas the same grant was received during an earlier quarter of 2019.\n\nFor the year ended December 31, 2020, the Company reported a net loss of $642 thousand, or ($0.02) per share, compared to a net loss of $206 thousand, or ($0.01) per share, for the year ended December 31, 2019. The loss during the year ended December 31, 2020 was primarily due to higher professional service fees of $1.2 million, of which $960 thousand pertained to merger-related expenses and $243 thousand related to costs incurred to respond to actions by a former stockholder. In addition, compensation expense increased by $1.0 million compared to the same period of 2019. These higher costs in 2020...