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Dec 31, 2020
Broadway Financial Q4 2020 Earnings Report
Broadway Financial Corporation reported a net loss for the fourth quarter of 2020, primarily due to merger-related costs, post-merger integration expenses, and private placements of equity capital.
Key Takeaways
Broadway Financial Corporation reported a net loss of $581 thousand, or ($0.02) per share, for the fourth quarter of 2020. The loss was primarily due to costs associated with the pending merger with CFBanc Corporation, post-merger integration, and related private placements of equity capital.
Net loss of $581 thousand, or ($0.02) per share, for Q4 2020.
Loss primarily due to merger-related costs and post-merger integration expenses.
Net interest income after loan loss provision increased by $363 thousand.
Received a $203 thousand grant from the U.S. Department of the Treasury’s CDFI Fund.
Forward Guidance
The company anticipates the merger with CFBanc Corporation will be approved and consummated at the start of the second quarter.
Positive Outlook
- Merger expected to create the largest Black-led Minority Depository Institution in the United States.
- Pro forma assets of approximately $900 million expected after merger.
- New investors committed to providing over $32.8 million of gross proceeds from the sale of shares of new common equity.
- Capital to grow combined loan portfolio expected.
- Expansion of depository assets to greater than $1 billion expected.
Challenges Ahead
- Potential for delays in completing the merger.
- Risk of failure to obtain necessary stockholder approvals.
- Possibility that the merger may be more expensive to complete than anticipated.
- Potential adverse reactions from the Company’s employee and customers to the announcement of the merger.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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