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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.
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
Historical Earnings Impact
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Avg. Return Before/After Earnings
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