Broadway Financial Q2 2024 Earnings Report
Key Takeaways
Broadway Financial Corporation reported consolidated net earnings of $269 thousand, or $0.03 per diluted share, for the second quarter of 2024. Net interest income increased by $650 thousand, or 8.9%, to $7.9 million compared to the second quarter of 2023. Total gross loans receivable increased by $59.0 million to $946.8 million at June 30, 2024, compared to December 31, 2023.
Net earnings were $269 thousand, or $0.03 per diluted share.
Net interest income increased by $650 thousand, or 8.9%, to $7.9 million.
Total gross loans receivable increased by $59.0 million to $946.8 million.
Total interest income increased by $3.8 million, or 33.1%.
Broadway Financial
Broadway Financial
Forward Guidance
The company is focused on serving low-to-moderate income communities within its target markets and is confident in its ability to execute its plans due to investments in its team and a strong base of equity capital.
Positive Outlook
- The Company was able to return to profitability.
- Total interest income increased by 33%.
- Net interest income after provision for credit losses increased 14%.
- Total interest income has increased in each of the thirteen quarters since the merger of Broadway and CFBanc Corporation.
- Improving yields on interest-earning assets, which have increased by 160 basis points, or almost 52%, since the end of March 2022.
Challenges Ahead
- Bottom-line performance has continued to suffer from the compression in our net interest margin.
- Performance was impacted by remediation steps undertaken to address identified weaknesses in controls over financial disclosures.
- Non-interest expense increased due to investments in people to enhance operational capabilities.
- Net interest margin decreased to 2.41% for the second quarter of 2024 from 2.52% for the second quarter of 2023.
- Total assets decreased by $8.1 million at June 30, 2024, compared to December 31, 2023.