Loading...
•
Mar 31, 2020
Broadway Financial Q1 2020 Earnings Report
Reported a net loss due to provision for loan losses and increased compensation costs, offset by net interest income and fee income increases.
Key Takeaways
Broadway Financial Corporation reported a net loss of $33 thousand, or $0.00 per share, for the first quarter of 2020, compared to net income of $277 thousand, or $0.01 per diluted share, for the first quarter of 2019. The results were impacted by the COVID-19 pandemic and a challenging interest rate environment.
Net loss of $33 thousand, or $0.00 per share, compared to net income of $277 thousand, or $0.01 per diluted share in Q1 2019.
Loan originations exceeded $65 million, a 20.8% increase compared to Q4 2019.
Net interest income increased by $85 thousand compared to Q1 2019.
Non-performing loans and assets were $280 thousand, representing 0.06% of Broadway’s assets.
Broadway Financial
Broadway Financial
Forward Guidance
Broadway is being cautious about originating new loans, defensively pricing and structuring loan products, and closely monitoring the loan portfolio given the economic uncertainty.
Positive Outlook
- Implementing plans to reduce non-interest expenses.
- Improving operating efficiency.
- Improving the profitability of Broadway.
- Strong capital base.
- Long-standing customer relationships.
Challenges Ahead
- Unclear economic environment.
- Cautious approach to originating new loans.
- Defensive pricing and structuring of loan products.
- Extra vigilance in monitoring portfolio.
- Potential significant impacts of the COVID-19 Pandemic