Broadway Financial Corporation · NASDAQ:BYFC
Broadway Financial — Shareholder Meeting (October 2022)
22 slides from Broadway Financial's shareholder meeting presentation, Oct 21, 2022
Slide 1: October 19, 2022 Annual Meeting of Stockholders
October 19, 2022 Annual Meeting of Stockholders
Slide 2: Cautionary Forward-Looking Statements
1 Cautionary Forward-Looking Statements This presentation is for informational purposes only and does not purport to include a complete discussion of the topics mentioned and should not be relied upon as a basis for making an investment decision in the Company’s securities. This presentation also in
Slide 3: Who We Are
2 WHO WE ARE Largest African American-led Minority Depository Institution in the U.S. A Minority Depository Institution (MDI) and Community Development Financial Institution (CDFI) Our Bank Holding Company is Broadway Financial Corporation (“Broadway”) A Delaware Public Benefit Corporation striving
Slide 4: Building on Our Historic Merger of Equals
3 BUILDING ON OUR HISTORIC MERGER OF EQUALS Completed Merger of Equals with CFBanc Corporation on April 1, 2021 Building on a 75-year legacy of serving historically excluded urban, minority communities Broadway was formed in 1946 to provide home loans to minority consumers in south Los Angeles, incl
Slide 5: Our Differentiated Purpose
4 OUR DIFFERENTIATED PURPOSE Broadway is one of two publicly traded public benefit corporations in the financial services industry “The corporation will focus on the low- and moderate-income urban communities served in ways that are efficient and profitable, that increase access to credit and capita
Slide 6: Our Business Strategy
5 OUR BUSINESS STRATEGY District of Columbia, Baltimore and their surrounding communities, The counties of Los Angeles, Ventura, Riverside, Orange, San Diego, San Bernardino and Santa Barbara, California Multifamily Affordable Housing (investment & development) Nonprofit Finance (facilities & enterp
Slide 7: Targeted Lending Customer Segments
6 TARGETED LENDING CUSTOMER SEGMENTS Multi-family affordable housing Focus on financing smaller multi-family properties with loans generally ranging from $500K to $6 million for properties with 5 – 50 units Large banks have difficulty originating and servicing this segment Demand is extremely high f
Slide 8: Loan Portfolio Mix
LOAN PORTFOLIO MIX* 7 * Gross Loans Receivable
Slide 9: Deposit Mix
DEPOSIT MIX At 06/30/2022 - Total $816.2 ($mms) = $182.7; 22% ™ $106.9; 13% = $526.6; 65% m= Non-interest bearing deposits =MMDA&savings = Certificates of deposit cityfirst BROADWAY
Slide 10: Year to Date Achievements
9 YEAR TO DATE ACHIEVEMENTS Grew interest income by 17.2% in 1st half of 2022, compared to the 2nd half of 2021 Have increased gross and net interest income every quarter since the Merger Increased net interest margins by 63 bp, or 27.9%, since 3rd Qtr. 2021 Maintained pristine asset quality No deli
Slide 11: Year to Date Achievements
10 YEAR TO DATE ACHIEVEMENTS Received an “Outstanding” CRA* rating in September 2022; reaffirming City First’s unbroken track record of “Outstanding” ratings For community development lending from 2019 through 2021 in the D.C. & SoCal markets Received equity capital under the U.S. Treasury’s Emergen
Slide 12: ECIP Preferred Is Attractive Growth Capital
11 ECIP PREFERRED IS ATTRACTIVE GROWTH CAPITAL The ECIP Preferred has the following attractive terms: No dividend requirements for two years; thereafter floor rate of 50 basis points and ceiling rate of 2.0% Dividend rates in years 2 through 10 are based on $ amount of qualified loan originations co
Slide 13: Growing Revenue Stream
GROWING REVENUE STREAM* 12 * Merger was completed on April 1, 2021 The Merger has improved our business model as quarterly interest income has increased 225% since the Merger and 23.5% since the 2nd quarter of 2021.
Slide 14: Improving Margins
IMPROVING MARGINS* 13 * Merger was completed on April 1, 2021 Our net interest margin has increased 27.9% since the 3rd Qtr. Of 2021 as we capture the opportunities to improve our asset utilization created by the Merger
Slide 15: Decreasing Cost of Funds
DECREASING COST OF FUNDS* 14 * Merger was completed on April 1, 2021 We have improved our funding mix, which has lowered our cost of funds by 69% since the Merger
Slide 16: Growth Since Merger
GROWTH SINCE MERGER* 15 * Numbers and percentages based on actual consolidated balances as of June 30, 2022, compared to pro forma consolidated balances as of March 31, 2021 Total Assets Total Deposits Total Loans Cash, Equivalents & Securities Increased 55.7%, or over $185 million Increased 28.2%,
Slide 17: Strong Balance Sheet
16 STRONG BALANCE SHEET* $285 million in total equity or 23.3% of total assets of $1.22 billion 15.9% Community Bank Leverage Ratio $518 million of cash, cash equivalents, and securities 79.5% gross loans to deposit ratio 0.1% in non-accrual loans as a percentage of total loans of $647 million 77.6%
Slide 18: Capitalization as of June 30, 2022
CAPITALIZATION AS OF JUNE 30, 2022 17
Slide 19: Values and Success Drivers
VALUES AND SUCCESS DRIVERS 18 We are intently focused on: Improving asset utilization Capturing efficiencies and cost savings from the Merger Enhancing resource aggregation (capital and deposit) Expanding revenue through improved offerings Fusing the operating culture aligned on mission and value dr
Slide 20: Go Forward Vision
19 GO FORWARD VISION Increase scale and expand impact Within existing markets and potentially to other high potential urban markets Continuing to evaluate further partnerships to expand capabilities Leverage the strengths of the combined entity Increase margins by redeploying low interest earning as
Slide 21: Investment Platform for Impact Investors
20 INVESTMENT PLATFORM FOR IMPACT INVESTORS We are a leading national investment platform for impact investors and depositors Largest African-American-led MDI in the U.S. with an “Outstanding” CRA rating Bicoastal footprint with operations in Washington, D.C. and Los Angeles Publicly traded common s
Slide 22: October 19, 2022 Annual Meeting of Stockholders
October 19, 2022 Annual Meeting of Stockholders
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