Broadway Financial Corporation Announces Revised Net Earnings for First Quarter Ended March 31, 2012

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Broadway Financial Corporation Announces Revised Net Earnings for First Quarter Ended March 31, 2012

LOS ANGELES--(BUSINESS WIRE)-- Broadway Financial Corporation (the "Company") (NAS: BYFC) , parent company of Broadway Federal Bank, f.s.b. (the "Bank"), today announced its revised results for the quarter ended March 31, 2012.

Our previously reported results for the quarter have been revised because some of the provisions that we had included in the results for the first quarter of 2012 are now reflected in our restated results for 2011. In addition, the revision to the results for the first quarter of 2012 reflect conclusions regarding our valuation allowances reached by the Office of the Controller of Currency during its recently completed supervisory examination of the Bank.


Based on these changes, we are reporting net earnings of $154,000 for the first quarter of 2012, whereas previously we had reported a loss of $60,000. In contrast, we reported a net loss of $129,000 for the first quarter of 2011. After deducting preferred dividends and related discount accretion on the Series D and E Perpetual Cumulative Preferred Stock held by the U.S. Department of the Treasury, we are now reporting a loss to common stockholders of $132,000, as compared to a previously announced loss of $346,000 for the first quarter of 2012 and a loss of $412,000 for the first quarter of 2011.

A summary of the effects of these corrections on the Company's consolidated balance sheet as of March 31, 2012 and consolidated statement of operations for the quarter then ended is included with this release. More detailed information regarding our financial condition at March 31, 2012 and our results of operations for the three months then ended will be contained in our report on Form 10-Q for the first quarter of 2012 to be filed shortly with the Securities and Exchange Commission.

About Broadway Financial Corporation

Broadway Financial Corporation conducts its operations through its wholly-owned subsidiary, Broadway Federal Bank, f.s.b., which is the leading community-oriented savings bank in Southern California serving low to moderate income communities. We offer a variety of residential and commercial real estate loan products for consumers, businesses, and non-profit organizations, other loan products, and a variety of deposit products, including checking, savings and money market accounts, certificates of deposits and retirement accounts. The Bank operates three full service branches, two in the city of Los Angeles, and one located in the nearby city of Inglewood, California.

Shareholders, analysts and others seeking information about the Company are invited to write to: Broadway Financial Corporation, Investor Relations, 4800 Wilshire Blvd., Los Angeles, CA 90010, or visit our website at www.broadwayfederalbank.com.

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based upon our management's current expectations, and involve risks and uncertainties. Actual results or performance may differ materially from those suggested, expressed, or implied by the forward-looking statements due to a wide range of factors including, but not limited to, the general business environment, the real estate market, competitive conditions in the business and geographic areas in which the Company conducts its business, regulatory actions or changes and other risks detailed in the Company's reports filed with the Securities and Exchange Commission. The Company undertakes no obligation to publicly revise any forward-looking statement to reflect any future events or circumstances, except to the extent required by law.

 
BROADWAY FINANCIAL CORPORATION
AND SUBSIDIARIES
Consolidated Balance Sheets
(Dollars in thousands)
 As Originally Announced  As Revised As Restated
March 31,March 31,December 31,
 2012 Adjustments 2012  2011 
(Unaudited)(Unaudited)
ASSETS
Cash$13,572$-$13,572$12,127
Federal funds sold 31,605  -  31,605  19,470 
Cash and cash equivalents45,177-45,17731,597
 
Securities available for sale, at fair value18,027-18,02718,979
Loans receivable held for sale, net13,277(369)12,90812,983
Loans receivable, net of allowance of $17,752 and $17,299313,276(3,698)309,578322,770
Accrued interest receivable1,601-1,6011,698
Federal Home Loan Bank (FHLB) stock, at cost3,901-3,9014,089
Office properties and equipment, net4,548-4,5484,626
Real estate owned (REO)4,335(377)3,9586,699
Bank owned life insurance2,629-2,6292,609
Investment in affordable housing partnership1,629-1,6291,675
Deferred tax assets828(56)772850
Other assets 4,155  (23) 4,132  5,162 
Total assets$413,383 $(4,523)$408,860 $413,737 
 
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits$290,352$-$290,352$294,686
Federal Home Loan Bank advances83,000-83,00083,000
Junior subordinated debentures6,000-6,0006,000
Other borrowings5,000-5,0005,000
Advance payments by borrowers for taxes and insurance335-335813
Other liabilities 5,904  -  5,904  5,962 
Total liabilities 390,591  -  390,591  395,461 
 
Stockholders' Equity:

Senior preferred, cumulative and non-voting stock, $0.01 par value, authorized, issued and outstanding 9,000 shares of Series D at March 31, 2012 and December 31, 2011; liquidation preference of $9,844 at March 31, 2012 and $9,731 at December 31, 2011

8,963-8,9638,963

Senior preferred, cumulative and non-voting stock, $0.01 par value, authorized, issued and outstanding 6,000 shares of Series E at March 31, 2012 and December 31, 2011; liquidation preference of $6,563 at March 31, 2012 and $6,488 at December 31, 2011

5,974-5,9745,974

Preferred, non-cumulative and non-voting stock, $.01 par value, authorized 985,000 shares; issued and outstanding 55,199 shares of Series A, 100,000 shares of Series B and 76,950 shares of Series C at March 31, 2012 and December 31, 2011; liquidation preference of $552 for Series A, $1,000 for Series B and $1,000 for Series C at March 31, 2012 and December 31, 2011

3,657-3,6573,657
Preferred stock discount(896)-(896)(994)

Common stock, $.01 par value, authorized 8,000,000 shares at March 31, 2012 and December 31, 2011; issued 2,013,942 shares at March 31, 2012 and December 31, 2011; outstanding 1,744,565 shares at March 31, 2012 and December 31, 2011

20-2020
Additional paid-in capital10,844-10,84410,824
Accumulated deficit(2,904)(4,523)(7,427)(7,295)

Accumulated other comprehensive income, net of taxes of $400 at March 31, 2012 and December 31, 2011

578-578571
Treasury stock-at cost, 269,377 shares at March 31, 2012 and December 31, 2011 (3,444) -  (3,444) (3,444)
Total stockholders' equity 22,792  (4,523) 18,269  18,276 
 
Total liabilities and stockholders' equity$413,383 $(4,523)$408,860 $413,737 
 
BROADWAY FINANCIAL CORPORATION
AND SUBSIDIARIES
Consolidated Statements of Operations and Comprehensive Earnings (Loss)
(Dollars in thousands, except per share amounts)
(Unaudited)
 Three Months Ended March 31,
As Originally Announced  As Revised 
 2012 Adjustments 2012  2011 
 
Interest and fees on loans receivable$5,330$-$5,330$6,384
Interest on securities148-148181
Other interest income 16  -  16  9 
Total interest income 5,494  -  5,494  6,574 
 
Interest on deposits975-9751,239
Interest on borrowings 833  -  833  989 
Total interest expense 1,808  -  1,808  2,228 
 
Net interest income before provision for loan losses3,686-3,6864,346
Provision for loan losses 427  532  959  1,240 
Net interest income after provision for loan losses 3,259  (532) 2,727  3,106 
 
Non-interest income:
Service charges153-153182
Net losses on mortgage banking activities(166)-(166)(25)
Net gains (losses) on sales of REO272140412(15)
Other 24  -  24  39 
Total non-interest income 283  140  423  181 
 
Non-interest expense:
Compensation and benefits1,589-1,5891,809
Occupancy expense, net287-287354
Information services213-213227
Professional services108-108168
Provision for losses on loans held for sale503(505)(2)20
Provision for losses on REO160(179)(19)80
FDIC insurance217-217283
Office services and supplies109-109142
Other 419  -  419  419 
Total non-interest expense 3,605  (684) 2,921  3,502 
 
Earnings (loss) before income taxes(63)292229(215)
Income tax expense (benefit) (3) 78  75   Read Full Story

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