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Broadway Financial Corp. Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: August 16, 2010 09:25PM
Broadway Financial Corp. (BYFC) filed Quarterly Report for the period ended 2010-06-30. Broadway Financial Corp. has a market cap of $5.38 million; its shares were traded at around $3.084 with and P/S ratio of 0.18. Broadway Financial Corp. had an annual average earning growth of 21.5% over the past 10 years. GuruFocus rated Broadway Financial Corp. the business predictability rank of 3-star.
Highlight of Business Operations:
For the six months ended June 30, 2010, net earnings totaled $1.8 million, or $0.72 per diluted common share, up $1.1 million when compared with net earnings of $696 thousand, or $0.20 per diluted common share, for the same period in 2009.
Net loan charge-offs for the quarter ended June 30, 2010 totaled $2.0 million (of which $144 thousand represented three one-to-four family loans, $1.7 million represented a commercial loan and $74 thousand represented two unsecured consumer loans) compared to $924 thousand for the first quarter of 2010 (of which $429 thousand represented two overdrafted NOW accounts, $366 thousand represented three one-to-four family loans and $129 thousand represented four commercial real estate loans) and $0 for the 2009 second quarter. Of the $2.0 million loan charge-offs during the second quarter of 2010, $1.3 million were specifically reserved for at year-end 2009 and $689 thousand were specifically reserved for in 2010. Net loan charge-offs as a percent of average loans was approximately 42 basis points for the quarter ended June 30, 2010.
For the six months ended June 30, 2010, non-interest income (loss) totaled ($89) thousand compared to $413 thousand for the same period a year ago. The decrease primarily reflects a $136 thousand net loss on sale of loans, a $197 thousand higher provision for losses on loans held-for-sale and a $109 thousand lower service charges for the first six months of 2010.
Our gross loan portfolio decreased to $441.8 million at June 30, 2010 from $453.1 million at December 31, 2009. The $11.3 million decrease in our loan portfolio primarily consisted of a $10.5 million decrease in our commercial real estate loan portfolio, a $5.8 million decrease in commercial loans and a $2.8 million decrease in our one-to-four family residential real estate loan portfolio, which decreases were partially offset by an $8.7 million increase in our multi-family residential real estate loan portfolio.
At June 30, 2010, the allowance for loan losses was $18.5 million, or 4.18% of total gross loans receivable, excluding loans receivable held-for-sale, compared to $20.5 million, or 4.52% of total gross loans receivable, excluding loans receivable held-for-sale, at December 31, 2009. The $2.0 million decrease in the allowance for loan losses from December 31, 2009 to June 30, 2010 was due to net loan charge-offs of $2.9 million partially offset by $883 thousand of provisions for loan losses for the first six months of 2010. Of the $2.9 million loan charge-offs during the first six months of 2010, $1.7 million were specifically reserved for at year-end 2009 and $1.2 million were specifically reserved for in 2010.
At June 30, 2010, non-performing assets were $37.3 million, or 6.77% of total assets, compared to $37.0 million, or 7.10% of total assets, at December 31, 2009. Total non-performing assets at June 30, 2010 were comprised of $32.9 million in non-accrual loans and $4.5 million in REO. During the latest quarter, non-accrual loans declined by $1.2 million from the balance at the end of the first quarter of 2010 and by $2.1 million from the balance at the end of 2009. These loans consist of delinquent loans that are 90 days or more past due and troubled debt restructurings that do not qualify for accrual status. The non-accrual loans included $19.1 million of commercial real estate loans, $5.1 million of one-to-four family residential real estate loans, $2.3 million of multi-family residential real estate loans, $4.0 million of commercial loans and $2.3 million of secured consumer loans. During the second quarter, REO increased by $2.3 million from the end of the first quarter and by $2.4 million from the end of 2009. At June 30, 2010 the Banks REO consisted of three one-to-four family residential properties and five commercial real estate properties, three of which are church buildings. We are continuing to monitor our portfolio closely and working with borrowers to maximize the value of our assets. In addition, we are pursuing selective sales of classified assets and REO.
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