Broadway Financial Corporation Reports Nominal Increase in Net Earnings for the Year.Business Editors LOS LOS Length of stay, see there ANGELES--(BUSINESS WIRE)--Feb. 15, 2002 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 $685,000, or $0.75 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 year ended December December: see month. 31, 2001, compared to $677,000, or $0.74 per diluted share, for the year ended December 31, 2000. While net interest income after provision for loan losses increased $442,000, or 7.18%, compared to the prior year, non-interest expense increased by $534,000, or 9.33%, primarily attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to increased compensation costs, savings operation losses and fixed asset write-offs. For the three-month period ended December 31, 2001, the Company reported net earnings of $108,000, or $0.11 per diluted share, compared to breakeven breakeven 1. The level of output or sales necessary to cover fixed expenses. Companies in industries that have high fixed costs and, consequently, high breakevens, such as automobile and steel manufacturing, are likely to exhibit large fluctuations net earnings for the corresponding three-month period in 2000. Fourth-quarter earnings for the current year were adversely impacted by 1) savings operation losses of $68,000, 2) write-offs of fixed assets fixed assets npl → activo sg fijo fixed assets npl → immobilisations fpl fixed assets fix npl → relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc abandoned computer equipment amounting to $48,000 and 3) other net expenses of $88,000. Net interest income after provision for loan losses increased from $6.2 million for the year ended December 31, 2000, to $6.6 million for the same period in 2001. The increase was attributable primarily to the growth in interest-earning assets, offset by the effect of the decline in the net interest rate spread during the year, and a lower provision for loan losses in 2001 compared to the prior year. Total non-interest expense increased from $5.7 million for the year ended December 31, 2000, to $6.3 million for the same period in 2001. The increase was primarily attributable to higher compensation costs of $327,000, savings operation losses of $185,000 and fixed asset write-offs of $106,000. Loans receivable, net increased $7.1 million, or 5.62%, from $126.8 million at December 31, 2000, to $133.9 million at December 31, 2001. Loans held for sale increased $7.3 million from $59,000 at December 31, 2000, to $7.4 million at December 31, 2001. The Bank had curtailed lending in 2000 and re-entered the lending market in 2001. The ramp up Ramp Up To increase a company's operations in anticipation of increased demand. Notes: A company might 'ramp up' operations if they just signed a contract creating substantially more demand for their product. See also: Demand, Economies of Scale of lending volume was slower than anticipated due to the highly competitive marketplace. The allowance for loan losses as a percentage of total loans was 1.10% at December 31, 2001 and 2000. The Bank's non-performing assets to total assets ratio improved to 0.26% at December 31, 2001, compared to 0.38% at December 31, 2000. The Bank's allowance for loan losses as a percentage of non-performing loans A non-performing loan is a loan that is in default or close to being in default. Many loans become non-performing after being in default for 3 months, but this can depend on the contract terms. was 335.68% at December 31, 2001, compared to 224.84% at December 31, 2000. At December 31, 2001 and 2000, the Bank had no foreclosed real estate assets. Total deposits increased $9.6 million, or 6.75%, from $141.6 million at December 31, 2000, to $151.2 million at December 31, 2001. The increase in deposits when added to loan and mortgage-backed Mortgage-backed may refer to:
For the year ended December 31, 2001, the Company's return on average equity was 4.79% compared to 4.83% for the prior year. The return on average assets was 0.39% for the year ended December 31, 2001, compared to 0.41% for the prior year. The ratio of non-interest expense to average assets was 3.54% for the year ended December 31, 2001, compared to 3.48% for the prior year. 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. that 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:
adj. Associated with or offering complete service: full-service gasoline pumps; full-service banks. branches, three in the city of Los Angeles
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, except share amounts)
(Unaudited)
Dec. 31, Dec. 31,
2001 2000
Assets:
Cash $ 2,639 $ 5,367
Fed funds sold 2,600 4,900
Interest-bearing deposits 5,028 --
Investment securities held to maturity -- 10,623
Investment securities available for sale 4,604 --
Mortgage-backed securities held to maturity 13,931 10,748
Loans receivable, net 133,937 126,815
Loans receivable held for sale, at lower of
cost or fair value 7,362 59
Accrued interest receivable 943 1,071
Investments in capital stock of Federal Home
Loan Bank, at cost 1,399 1,316
Office properties and equipment, net 6,001 6,357
Other assets 457 670
Total assets $ 178,901 $ 167,926
Liabilities and stockholders' equity:
Deposits $ 151,156 $ 141,594
Advances from Federal Home Loan Bank 11,000 10,000
Advance payments by borrowers for taxes
and insurance 224 194
Deferred income taxes 404 402
Other liabilities 1,489 1,759
Total liabilities 164,273 153,949
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 at December 31,
2001, and December 31, 2000 1 1
Common stock, $.01 par value, authorized
3,000,000 shares; issued and outstanding
910,538 and 901,333 shares at December 31,
2001, and December 31, 2000, respectively 10 10
Additional paid-in capital 9,481 9,460
Accumulated other comprehensive gain,
net of taxes 2 --
Retained earnings - substantially restricted 5,804 5,322
Treasury stock - 51,197 and 60,402 shares, at
cost at December 31, 2001, and December 31,
2000, respectively (469) (554)
Unearned Employee Stock Ownership Plan shares (201) (262)
Total stockholders' equity 14,628 13,977
Total liabilities and stockholders' equity $ 178,901 $ 167,926
BROADWAY FINANCIAL CORPORATION
AND SUBSIDIARIES
Consolidated Statements of Operations
(Dollars in thousands, except per share amounts)
(Unaudited)
Three Months Ended Year ended
December 31, December 31,
2001 2000 2001 2000
Interest on loans receivable $ 2,900 $ 2,722 $ 11,452 $ 10,751
Interest on investment
securities 49 163 246 643
Interest on mortgage-backed
securities 205 178 744 750
Other interest income 33 75 556 141
Total interest income 3,187 3,138 12,998 12,285
Interest on deposits 1,291 1,383 5,673 4,963
Interest on borrowings 129 175 580 809
Total interest expense 1,420 1,558 6,253 5,772
Net interest income before
provision for loan losses 1,767 1,580 6,745 6,513
Provision for loan losses 45 90 150 360
Net interest income after
provision for loan losses 1,722 1,490 6,595 6,153
Non-interest income:
Service charges 196 143 685 588
Gain (loss) on loan
receivable held for sale 6 -- 5 (116)
Other 56 36 133 282
Total non-interest income 258 179 823 754
Non-interest expense:
Compensation and benefits 827 758 3,261 2,934
Occupancy expense, net 289 502 1,167 1,412
Advertising and promotional
expense 41 65 163 190
Professional services 233 73 402 287
Real estate operations, net -- (9) -- (87)
Contracted security services 43 41 164 162
Telephone and postage 56 38 216 163
Stationery, printing and
supplies 20 21 109 127
Other 288 180 775 535
Total non-interest expense 1,797 1,669 6,257 5,723
Earnings before income taxes 183 -- 1,161 1,184
Income taxes 75 -- 476 507
Net earnings $ 108 $ -- $ 685 $ 677
Other comprehensive income:
Unrealized income (loss) on
securities available
for sale $ 4 $ -- $ 4 $ --
Income tax benefits (2) -- (2) --
Other comprehensive income 2 -- 2 --
Comprehensive earnings $ 110 $ -- $ 687 $ 677
Net earnings 108 -- 685 677
Dividends paid on
preferred stock (7) (7) (28) (28)
Earnings available to
common shareholders $ 101 $ (7) $ 657 $ 649
Earnings per share - basic $ 0.11 $ (0.01) $ 0.75 $ 0.74
Earnings per share - diluted $ 0.11 $ (0.01) $ 0.75 $ 0.74
Dividend declared per share
- common stock $ 0.05 $ 0.05 $ 0.20 $ 0.20
Basic weighted average shares
outstanding 888,324 873,087 879,049 882,325
Diluted weighted average shares
outstanding 893,542 873,087 881,918 882,325
BROADWAY FINANCIAL CORPORATION
AND SUBSIDIARIES
Selected Ratios and Data
(Dollars in thousands)
As of December 31, Well-Capitalized
2001 2000 Requirement
Broadway Federal Bank, f.s.b.
Regulatory Capital Ratios:
Tangible capital 7.13% 7.42% 5.00%
Core capital 7.13% 7.42% 6.00%
Total Risk-Based Capital 12.10% 13.26% 10.00%
Asset Quality Ratios and Data:
Non-performing loans as a
percentage of total loans 0.33% 0.49%
Non-performing assets as a
percentage of total assets 0.26% 0.38%
Allowance for loan losses as
a percentage of total loans 1.10% 1.10%
Allowance for loan losses as
a percentage of
non-performing loans 335.68% 224.84%
Allowance for losses as a
percentage of
non-performing assets (1) 335.68% 224.84%
Non-performing assets:
Non-accrual loans $ 468 $ 632
Real estate acquired
through foreclosure -- --
Total non-performing
assets $ 468 $ 632
Three Months Ended Year Ended
December 31, December 31,
2001 2000 2001 2000
Performance Ratios:
Return on average assets 0.24% 0.00% 0.39% 0.41%
Return on average equity 2.95% 0.00% 4.79% 4.83%
Average equity to average assets 8.16% 8.62% 8.11% 8.53%
Non-interest expense to average assets 4.01% 4.07% 3.55% 3.48%
Efficiency ratio 90.76% 100.00% 84.35% 82.86%
Net interest rate spread (2) 4.09% 4.15% 3.95% 4.19%
Net interest margin (3) 4.28% 4.29% 4.16% 4.28%
(1) Allowance for losses includes valuation allowances on loans and
real estate acquired through foreclosure.
(2) Net interest rate spread represents the difference between the
yield on average interest-earning assets and the cost of
interest-bearing liabilities before provision for loan losses.
(3) Net interest margin represents net interest income before
provision for loan losses as a percentage of average
interest-earning assets.
BROADWAY FINANCIAL CORPORATION
AND SUBSIDIARIES
Support for Calculations
(Dollars in thousands)
Three Months Ended Year Ended
December 31, December 31,
2001 2000 2001 2000
Total assets $ 178,901 $ 167,926 $ 178,901 $ 167,926
Total gross loans $ 142,870 $ 129,241 $ 142,870 $ 129,241
Total equity $ 14,628 $ 13,977 $ 14,628 $ 13,977
Average assets $ 179,228 $ 164,041 $ 176,508 $ 164,345
Average loans $ 139,689 $ 125,462 $ 133,743 $ 127,433
Average equity $ 14,631 $ 14,143 $ 14,311 $ 14,011
Average interest-earning
assets $ 165,228 $ 147,262 $ 162,346 $ 152,277
Average interest-bearing
liabilities $ 156,732 $ 142,550 $ 154,203 $ 148,728
Net income $ 108 $ -- $ 685 $ 677
Total income $ 1,980 $ 1,669 $ 7,418 $ 6,907
Non-interest expense $ 1,797 $ 1,669 $ 6,257 $ 5,723
Efficiency ratio 90.76% 100.00% 84.35% 82.86%
Non-accrual loans $ 468 $ 632 $ 468 $ 632
REO, net $ -- $ -- $ -- $ --
ALLL $ 1,571 $ 1,421 $ 1,571 $ 1,421
REO-Allowance $ -- $ -- $ -- $ --
Interest income $ 3,187 $ 3,138 $ 12,998 $ 12,285
Interest expense $ 1,420 $ 1,558 $ 6,253 $ 5,772
Net interest income
before provision $ 1,767 $ 1,580 $ 6,745 $ 6,513
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