Business
Broadway Financial Corporation Reports Results for the Second Quarter 2021
Results reflect the Merger with CFBanc Corporation on April 1 and Completion of Private Placements of Common Stock on April 6, 2021 LOS ANGELES--(BUSINESS
About this update from Broadway Financial Corporation
[{"type":"text","content":"\nResults reflect the Merger with CFBanc Corporation on April 1 and Completion of Private Placements of Common Stock on April 6, 2021\n\n LOS ANGELES--(BUSINESS WIRE)--\nBroadway Financial Corporation (“Broadway”, “we” or the “Company”) (NASDAQ Capital Market: BYFC), reported consolidated net income of $701 thousand, or $0.01 per diluted share, for the second quarter of 2021, compared to a consolidated net loss of $3.5 million, or $(0.13) per share for the first quarter of 2021 and consolidated net income of $216 thousand, or $0.01 per diluted share, for the second quarter of 2020.\n\nResults for the second quarter of 2021 reflect the consolidated operations of CFBanc Corporation (“CFBanc”), including CFBanc’s subsidiary, City First Bank of D.C., National Association, as, on April 1, 2021: (i) CFBanc was merged into Broadway, with Broadway as the surviving entity, and (ii) Broadway’s former subsidiary, Broadway Federal Bank, f.s.b., was merged into City First Bank of D.C., National Association (with City First Bank of D.C., National Association as the surviving entity and the resultant bank being renamed City First Bank, National Association) (collectively, the “Merger”). Accordingly, results for the second quarter of 2021 include the operations of Broadway and its current subsidiary, City First Bank, National Association (the “Bank”), whereas results for the first quarter of 2021 and the first half of 2020 include the results of Broadway Financial Corporation and its former subsidiary, Broadway Federal Bank, f.s.b.\n\nNet income for the second quarter of 2021 was favorably impacted by an increase of $2.7 million, or 89.4%, in net interest income after loan loss provision compared to the second quarter of 2020, and a grant award of $1.8 million from the U.S. Department of the Treasury’s Community Development Financial Institution (“CDFI”) Fund, and negatively impacted by an effective tax rate of 71.3%, which reflected changes in the assumptions for the Company’s estimated annualized tax expense and an increase of $369 thousand in the valuation allowance on the Company’s deferred tax assets. The issuance of 18,474,000 shares of common stock in the private placements that closed a few days after the Merger triggered a limitation on the use of the Company’s deferred tax assets. As previously disclosed in the Company’s filings with ...