Broadway Financial Corporation Reports First Quarter Net Earnings.LOS ANGELES Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. -- Broadway Broadway, famous thoroughfare in New York City. It extends from Bowling Green near the foot of Manhattan island N to 262d St. in the Bronx. Throughout its length Broadway is chiefly a commercial street. Financial Corporation (the "Company") (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :BYFC), the holding company of Broadway Federal Bank, f.s.b. (the "Bank"), today reported net earnings of $342,000 or $0.20 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share for the three months ended March 31, 2005, compared to $467,000 or $0.24 per diluted share for the three months ended March 31, 2004. Compared to 2004, first quarter net earnings decreased 26.77%. President Paul Paul, 1901–64, king of the Hellenes (1947–64), brother and successor of George II. He married (1938) Princess Frederika of Brunswick. During Paul's reign Greece followed a pro-Western policy, and the Cyprus question was temporarily resolved. C. Hudson Hudson, towns, United States Hudson. 1 Industrial town (1990 pop. 17,233), Middlesex co., E central Mass., on the Assabet River, in an apple-growing region; settled c.1699, inc. 1866. stated, "The reduced quarterly earnings are primarily attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to margin compression compression, external stress applied to an object or substance, tending to cause a decrease in volume (see pressure). Gases can be compressed easily, solids and liquids to a very small degree if at all. caused by rising interest rates and higher compensation costs associated with increased compliance costs." Hudson went on to explain, "Management is focused on improving the net interest rate spread by originating retail commercial real estate loans with higher rates and by attracting lower cost core deposits. We are also implementing a plan to increase retail banking fee income to offset margin volatility Volatility 1. A statistical measure of the tendency of a market or security to rise or fall sharply within a period of time. 2. A variable in option pricing formulas that denotes the extent to which the return of the underlying asset will fluctuate between now and the . With the flattening
The flattening, ellipticity, or oblateness of an oblate spheroid is the "squashing" of the spheroid's pole, down towards its equator. yield curve, 2005 is going to be a challenging year for us, but we are optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about loan growth and margins for the second half of the year." Net Earnings The change in net earnings, comparing 2005 to 2004, was primarily attributable to decreases in net interest income and non-interest income, and an increase in non-interest expense. Net interest income before provision for loan losses decreased $89,000 or 3.80% for the three months ended March 31, 2005 compared to the same period in 2004. Non-interest income decreased $23,000 or 6.04% for the three months ended March 31, 2005 compared to the same period in 2004. Non-interest expense increased $86,000 or 4.41% for the three months ended March 31, 2005 compared to the same period in 2004. Net Interest Income Net interest income before provision for loan losses decreased to $2,256,000 for the three months ended March 31, 2005, from $2,345,000 for the same period in 2004. A three-month rate/volume analysis indicates that the $89,000 decrease was primarily attributable to the impact of a decrease in the net interest rate spread of 85 basis points (rate impact), which resulted in a decrease in net interest income of $435,000 partially offset by the impact of the growth in average interest-earning assets of $49.0 million or 21.45%, and interest-bearing Adj. 1. interest-bearing - of financial obligations on which interest is paid liabilities of $50.1 million or 23.15%, which resulted in an increase in net interest income of $346,000 (volume impact). The net interest rate spread for the three months ended March 31, 2005 was 3.16% compared to 4.01% for the same period in 2004. The 85 basis point decrease in spread was attributable to the decline in the weighted average yield on interest earning assets Earning Assets Any income-earning asset owned by a company. Notes: These assets are generally interest-bearing accounts, bonds, and securities available for sale. See also: Asset, Asset Valuation, Earnings, Net Interest Margin and the increase in the weighted average cost of funds Cost of Funds The interest rate paid on an outstanding loan. Notes: Money isn't free! Cost of funds is the cost of borrowing money. See also: Interest Rate Cost of funds Interest rate associated with borrowing money. on interest-bearing liabilities. The yield on interest-earning assets declined 41 basis points to 5.39% for the three months ended March 31, 2005 from 5.80% for the same period in 2004. The weighted average cost of funds increased 44 basis points to 2.23% for the three months ended March 31, 2005 compared to 1.79% for the same period in 2004. The primary spread (weighted average interest rate on loans minus weighted average interest rate on deposits) at March 31, 2005 was 3.65% compared to 4.20% at March 31, 2004, a decline of 55 basis points. Non-interest Income Non-interest income totaled $358,000 in the first quarter of 2005, down $23,000 from a year ago. The decrease primarily reflected a $109,000 decline in gains from sales of loans, as there were no loan sales during the first quarter of 2005. This was partially offset by an $85,000 increase in loan prepayment Prepayment 1. The payment of a debt obligation prior to its due date. 2. The excess payment over a scheduled debt repayment amount. Notes: 1. Examples include deferred expenses such as rent and early loan repayments. 2. fee income, included in service charges which increased $46,000. Non-interest Expense Total non-interest expense totaled $2,034,000 in the first quarter of 2005, up $86,000 from a year ago, primarily due to increases in compensation and benefits costs and occupancy Gaining or having physical possession of real property subject to, or in the absence of, legal right or title. In a fire insurance policy, for example, the term occupancy expenses. Provision for Loan Losses During the first quarter of 2005, provision for loan losses totaled $10,000 compared to $0 in 2004. At March 31, 2005, the allowance for loan losses as a percentage of total loans was 0.61% compared to 0.60% at December December: see month. 31, 2004 and 0.62% at March 31, 2004. Assets, Loan Originations The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. and Deposits At March 31, 2005, assets totaled $297.8 million, up $21.2 million or 7.68% from year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. 2004. During the first quarter of 2005, loan payoffs exceeded total loan originations, including loan purchases, resulting in a decrease of $0.9 million in loans receivable, including loans held for sale. In addition, investment securities available for sale decreased $4.0 million, while mortgage-backed securities Mortgage-backed securities (MSBs) Securities backed by a pool of mortgage loans. ("MBS See Mb/sec. MBS - mobile broadband services ") held to maturity increased $26.0 million. The build up in liquidity from loan repayments, deposit inflows and borrowings was invested in short duration MBS. Loan originations were $6.6 million for the three months ended March 31, 2005 compared to $33.2 million for the same period in 2004. Loan purchases totaled $10.3 million for the three months ended March 31, 2005 whereas there were no loan purchases for the same period in 2004. Loan repayments amounted to $17.9 million for the three months ended March 31, 2005 compared to $10.5 million for the same period in 2004. Loan originations decreased substantially due in part to rising interest rates and the Company's plan to focus on retail versus wholesale loan funding. Loan volumes are expected to increase over the next several quarters, absent a sharp rise in interest rates. Deposits totaled $210.0 million at March 31, 2005, up $14.1 million or 7.19% since the end of 2004. During the first quarter of 2005, core deposits (NOW, demand, money market and passbook accounts) increased $3.1 million, while certificates of deposit increased $11.0 million. A substantial portion of the increase in certificates of deposit was from brokered deposits. At March 31, 2005, core deposits represented 49.15% of total deposits compared to 51.13% at December 31, 2004 and 43.63% at March 31, 2004. Non-Performing Assets Non-performing assets amounted to $113,000 at March 31, 2005 compared to $114,000 at December 31, 2004 and $79,000 at March 31, 2004. The Bank's non-performing assets to total assets ratio was 0.04% at March 31, 2005 compared to 0.04% at December 31, 2004 and 0.03% at March 31, 2004. At March 31, 2005, December 31, 2004 and March 31, 2004, the Bank had no loans in foreclosure foreclosure Legal proceeding by which a borrower's rights to a mortgaged property may be extinguished if the borrower fails to live up to the obligations agreed to in the loan contract. or REO reo Noun NZ a language [Maori] (real estate owned Real Estate Owned Property owned by a lender - usually a bank - after an unsuccessful sale at a foreclosure auction. This is common because most of the properties up for sale at these auctions are worth less than the total amount owed to the bank: the minimum bid in most ) properties. Performance Ratios For the three months ended March 31, 2005, the Company's annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. return on average equity decreased to 8.94% compared to 11.16% for the same period in 2004. This was primarily attributable to the decrease in net earnings in 2005. The annualized return on average assets also decreased to 0.48% for the three months ended March 31, 2005 compared to 0.79% for the same period in 2004. The annualized ratio of non-interest expense to average assets improved to 2.85% for the three months ended March 31, 2005 compared to 3.29% for the same period in 2004, reflecting the higher growth in average assets compared to the rate of growth in non-interest expense. The efficiency ratio was 77.81% in first quarter 2005 compared to 71.46% in first quarter 2004, reflecting lower revenues compared to non-interest expenses for the first quarter of 2005 as compared to the same period in 2004. About us Broadway Federal Bank, f.s.b. is a community-oriented savings bank savings bank, financial institution that, until recently, performed only the following functions: receiving savings deposits of individuals, investing them, and providing a modest return to its depositors in the form of interest. , which primarily originates residential mortgage loans and conducts funds acquisition in the geographic geographic /geo·graph·ic/ (je?o-graf´ik) in pathology, of or referring to a pattern that is well demarcated, resembling outlines on a map. geographic pertaining to geography. areas known as Mid-City Mid-City can refer to:
Financing required for the operation of a business, composed of long-term and working capital plus fixed assets. necessary to be deemed "well capitalized Capitalized Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year. " for regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. capital purposes. Shareholders, analysts and others seeking information about the Company are invited to write to: Broadway Financial Corporation, Investor Relations Investor relations The process by which the corporation communicates with its investors. , 4800 Wilshire Not to be confused with Wiltshire. Wilshire may refer to:
BROADWAY FINANCIAL CORPORATION
AND SUBSIDIARIES
Consolidated Balance Sheets
(Dollars in thousands)
(Unaudited)
March 31, Dec. 31,
2005 2004
--------- ---------
Assets
Cash $4,208 $3,998
Fed funds sold 3,000 3,500
Investment securities available for sale - 3,980
Investment securities held to maturity 2,000 2,000
Mortgage-backed securities held to maturity 43,140 17,172
Loans receivable held for sale, at lower of cost
or fair value 2,100 1,145
Loans receivable, net 232,291 234,196
Accrued interest receivable 1,151 1,056
Investments in capital stock of Federal Home Loan
Bank, at cost 2,957 2,827
Office properties and equipment, net 5,662 5,725
Other assets 1,260 939
--------- ---------
Total assets $297,769 $276,538
========= =========
Liabilities and stockholders' equity
Deposits $209,992 $195,912
Advances from Federal Home Loan Bank 62,905 55,317
Junior subordinated debentures 6,000 6,000
Advance payments by borrowers for taxes and
insurance 126 472
Deferred income taxes 986 982
Other liabilities 2,380 2,758
--------- ---------
Total liabilities 282,389 261,441
--------- ---------
Stockholders' Equity:
Preferred non-convertible, non-cumulative,
and non-voting stock, $.01 par value,
authorized 1,000,000 shares; issued and
outstanding 55,199 shares of series A
and 100,000 shares of series B at
March 31, 2005 and December 31, 2004 2 2
Common stock, $.01 par value, authorized
3,000,000 shares; issued 1,868,942 shares
at March 31, 2005 and December 31, 2004;
outstanding 1,520,347 shares at March 31,
2005 and December 31, 2004 19 19
Additional paid-in capital 10,443 10,425
Accumulated other comprehensive loss, net of
taxes - (7)
Retained earnings-substantially restricted 9,808 9,561
Treasury stock-at cost, 348,595 shares at March
31, 2005 and December 31, 2004 (4,859) (4,859)
Unearned Employee Stock Ownership Plan shares (33) (44)
--------- ---------
Total stockholders' equity 15,380 15,097
--------- ---------
Total liabilities and stockholders' equity $297,769 $276,538
========= =========
BROADWAY FINANCIAL CORPORATION
AND SUBSIDIARIES
Consolidated Statements of Operations and Comprehensive Earnings
(Dollars in thousands, except per share amounts)
(Unaudited)
Three Months ended
March 31,
---------------------
2005 2004
---------- ----------
Interest on loans receivable $3,358 $3,112
Interest on mortgage-backed securities 243 126
Interest on investment securities 35 46
Other interest income 103 27
---------- ----------
Total interest income 3,739 3,311
---------- ----------
Interest on deposits 1,012 783
Interest on borrowings 471 183
---------- ----------
Total interest expense 1,483 966
---------- ----------
Net interest income before provision for loan
losses 2,256 2,345
Provision for loan losses 10 -
---------- ----------
Net interest income after provision for
loan losses 2,246 2,345
---------- ----------
Non-interest income:
Service charges 310 264
Gain on sale of loans held for sale - 109
Gain (loss) on sale of securities available
for sale 15 (12)
Other 33 20
---------- ----------
Total non-interest income 358 381
---------- ----------
Non-interest expense:
Compensation and benefits 1,212 1,157
Occupancy expense, net 293 255
Information services 152 166
Professional services 141 122
Office service and supplies 96 105
Other 140 143
---------- ----------
Total non-interest expense 2,034 1,948
---------- ----------
Earnings before income taxes 570 778
Income taxes 228 311
---------- ----------
Net earnings $342 $467
========== ==========
Other comprehensive income, net of tax:
Unrealized gain (loss) on securities available
for sale $(8) $99
Reclassification of realized net loss included
in net earnings 20 12
Income tax effect (5) (43)
---------- ----------
Other comprehensive income, net of tax 7 68
---------- ----------
Comprehensive earnings $349 $535
========== ==========
Net earnings $342 $467
Dividends paid on preferred stock (19) (19)
---------- ----------
Earnings available to common shareholders $323 $448
========== ==========
Earnings per share-basic $0.21 $0.26
Earnings per share-diluted $0.20 $0.24
Dividend declared per share-common stock $0.04 $0.04
Basic weighted average shares outstanding 1,513,189 1,752,021
Diluted weighted average shares outstanding 1,590,725 1,853,338
BROADWAY FINANCIAL CORPORATION
AND SUBSIDIARIES
Selected Ratios and Data
(Dollars in thousands)
As of March 31,
-------------------
2005 2004
--------- ---------
Regulatory Capital Ratios:
Tangible capital 6.70% 7.46%
Core capital 6.70% 7.46%
Total Risk-Based capital 11.15% 11.09%
Asset Quality Ratios and Data:
Non-performing loans as a percentage
of total gross loans 0.05% 0.04%
Non-performing assets as a percentage
of total assets 0.04% 0.03%
Allowance for loan losses as a percentage
of total gross loans 0.61% 0.62%
Allowance for loan losses as a percentage
of non-performing loans 1265.49% 1660.76%
Allowance for losses as a percentage
of non-performing assets 1265.49% 1660.76%
Non-performing assets:
Non-accrual loans $113 $79
Real estate acquired through foreclosure - -
--------- ---------
Total non-performing assets $113 $79
========= =========
Three Months ended
March 31,
-------------------
2005 2004
--------- ---------
Performance Ratios:
Return on average assets 0.48% 0.79%
Return on average equity 8.94% 11.16%
Average equity to average assets 5.35% 7.08%
Non-interest expense to average assets 2.85% 3.29%
Efficiency ratio (1) 77.81% 71.46%
Net interest rate spread (2) 3.16% 4.01%
Effective net interest rate spread (3) 3.25% 4.11%
(1) Efficiency ratio represents non-interest expense divided by net
interest income before provision for loan losses plus non-interest
income.
(2) Net interest rate spread represents the difference between the
yield on average interest-earning assets and the cost of
interest-bearing liabilities.
(3) Effective net interest rate spread represents net interest income
as a percentage of average interest-earning assets.
BROADWAY FINANCIAL CORPORATION
AND SUBSIDIARIES
Support for Calculations
(Dollars in thousands)
Three Months ended
March 31,
-------------------
2005 2004
--------- ---------
Total assets $297,769 $239,735
Total gross loans $233,721 $211,363
Total equity $15,380 $12,897
Average assets $285,946 $236,563
Average loans $233,760 $204,090
Average equity $15,299 $16,737
Average interest-earning assets $277,474 $228,474
Average interest-bearing liabilities $266,396 $216,327
Net income $342 $467
Total income $2,614 $2,726
Non-interest expense $2,034 $1,948
Efficiency ratio 77.81% 71.46%
Non-accrual loans $113 $79
REO, net $- $-
ALLL $1,430 $1,312
REO-Allowance $- $-
Interest income $3,739 $3,311
Interest expense $1,483 $966
Net interest income $2,256 $2,345
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion