Business
Broadway Financial Corporation Reports Results for the Third Quarter of 2021
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 income of $182 thousand, or $0.00 per diluted share, for the third quarter of 2021, compared to consolidated net income of $701 thousand, or $0.01 per diluted share for the second quarter of 2021 and a consolidated net loss of $244 thousand, or $(0.01) per share, for the third quarter of 2020.\n\nResults for the third and second quarters of 2021 include the consolidated operations of CFBanc Corporation, which was merged into Broadway on April 1, 2021 (the “Merger”).\n\nNet income for the third quarter of 2021 increased by $426 thousand compared to the third quarter of 2020 primarily due to an increase of $2.2 million in net interest income after loan loss provision and an increase of $496 thousand in grant and fee income, which were partially offset by additional operating expenses of $1.7 million from combining operations of the two banks after the Merger and building systems and hiring additional personnel. Also, during the third quarter of 2021 the Company incurred $383 thousand of data processing costs to migrate the Company’s information systems to a common platform and amortized $131 thousand of the core deposit intangible asset that was recorded in connection with the Merger. Net income for the third quarter of 2021 was $519 thousand lower than the net income for the second quarter of 2021 due to a special grant award of $1.8 million recognized in the second quarter. As previously reported, the income from that award was partially offset by the effects of a change in the estimate of income tax expense for the year, the establishment of a valuation allowance of $370 thousand on the deferred tax asset due to a limitation on the use of net operating loss carryforwards, and Merger-related expenses of $207 thousand, all of which were recorded during the second quarter of 2021.\n\nFor the nine months ended September 30, 2021, the Company reported a net loss of $2.6 million, or $(0.05) per share, compared to a net loss of $61 thousand or $0.00 per share for the comparable period in 2020. The net loss during the first nine months of 2021 was primarily due to Merger-related costs of $5.6 million ($4.2 million net of tax). In addition, during the first nine months of 2021 the C...