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Jun 30, 2024
Broadway Financial Q2 2024 Earnings Report
Second quarter results for 2024 were announced, with the company returning to profitability.
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.