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Broadway Financial Corp. Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: November 15, 2010 04:46PM
Broadway Financial Corp. (BYFC) filed Quarterly Report for the period ended 2010-09-30. Broadway Financial Corp. has a market cap of $4.46 million; its shares were traded at around $2.56 with and P/S ratio of 0.15. 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 nine months ended September 30, 2010, non-interest income totaled $1.6 million compared to $1.1 million for the same period a year ago. The increase was primarily due to $750 thousand of financial assistance award and $105 thousand of grant from CDFI, which were included with other non-interest income on the income statement. These increases were partially offset by $136 thousand of net losses on sale of loans and $88 thousand of net losses on sale of REO.
Total assets were $508.9 million at September 30, 2010, which represented a decrease of $12.2 million from December 31, 2009. During the first nine months of 2010, cash and cash equivalents increased by $14.7 million, net loans (including loans held for sale) decreased by $19.7 million, securities decreased by $6.4 million, REO increased by $1.5 million and other assets decreased by $2.2 million.
Our gross loan portfolio decreased to $435.4 million at September 30, 2010 from $453.1 million at December 31, 2009. The $17.7 million decrease in our loan portfolio primarily consisted of a $12.3 million decrease in our commercial real estate loan portfolio, a $5.0 million decrease in commercial loans and a $5.8 million decrease in our one-to-four family residential real estate loan portfolio, which decreases were partially offset by a $5.8 million increase in our multi-family residential real estate loan portfolio.
Deposits totaled $370.9 million at September 30, 2010 compared to $385.5 million at December 31, 2009. During the first nine months of 2010, our core deposits (NOW, demand, money market and passbook accounts) decreased $7.2 million and represented 30% of total deposits at September 30, 2010 and December 31, 2009. Our certificates of deposit (CDs) decreased $7.5 million during 2010 and represented 70% of total deposits at September 30, 2010 and December 31, 2009. The $7.5 million decrease in our CDs included a $65.1 million reduction in our brokered deposits, which was partially offset by a $57.6 million increase in our regular CDs. Brokered deposits represented 10% of total deposits at September 30, 2010 compared to 26% at December 31, 2009.
At September 30, 2010 our allowance for loan losses was $18.5 million, or 4.24% of our gross loans, compared to $20.5 million, or 4.52% of our gross loans, at year-end 2009. The ratio of the allowance for loan losses to non-performing loans was 61.60% at September 30, 2010, compared to 66.20% at year-end 2009. The $2.0 million decrease in the allowance for loan losses from December 31, 2009 to September 30, 2010 was due to net loan charge-offs of $4.6 million partially offset by $2.6 million of provisions for loan losses for the first nine months of 2010. Of the $4.6 million loan charge-offs during the first nine months of 2010, $3.1 million were specifically reserved for at year-end 2009 and $1.5 million were specifically reserved for in 2010.
At September 30, 2010, non-performing assets were $39.3 million, or 7.71% of total assets, compared to $37.0 million, or 7.10% of total assets, at December 31, 2009. Total non-performing assets at September 30, 2010 were comprised of $35.7 million in non-accrual loans and $3.5 million in REO. During 2010, non-accrual loans increased by $805 thousand 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 $22.4 million of commercial real estate loans, $4.9 million of one-to-four family residential real estate loans, $2.3 million of multi-family residential real estate loans, $3.8 million of commercial loans and $2.3 million of secured consumer loans. During 2010, REO increased by $1.5 million from the end of 2009. At September 30, 2010 the Banks REO consisted of three one-to-four family residential properties, three multi-family residential properties and four 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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