Financial Performance - Consolidated net loss before preferred dividends for Q1 2025 was $451 thousand, or ($0.05) per diluted share, compared to a net loss of $164 thousand, or ($0.02) per diluted share in Q1 2024[1]. - The net loss attributable to common stockholders for the three months ended March 31, 2025, was $1,201,000, compared to a loss of $164,000 in the prior year[28]. - The return on average assets declined to (0.39)% from (0.05)% year-over-year[23]. Interest Income and Margin - Net interest income increased by $521 thousand, or 6.9%, to $8.0 million in Q1 2025, driven by lower interest expense on borrowings and increased interest and fees on loans receivable[2]. - Net interest income for the three months ended March 31, 2025, was $8,045,000, compared to $7,524,000 for the same period in 2024[28]. - The net interest margin improved by 43 basis points to 2.70% in Q1 2025, up from 2.27% in Q1 2024, due to an increase in the yield on average loan balances[4]. - The net interest margin improved to 2.70% from 2.27% year-over-year[23]. - Net interest income for the period was $8,045 thousand, resulting in a net interest rate spread of 2.15%, up from 1.43% in the previous year[29]. - The average yield on loans receivable increased to 5.29% from 4.89% year-over-year, indicating improved loan performance[29]. - The average interest rate on interest-bearing liabilities was 2.67%, compared to 3.02% in the prior year, reflecting a decrease in borrowing costs[29]. Credit Losses and Asset Quality - Provision for credit losses increased to $689 thousand in Q1 2025 from $260 thousand in Q1 2024, primarily due to one new non-accrual loan[9]. - The provision for credit losses increased to $689,000 from $260,000, reflecting higher expected credit losses[28]. - The allowance for credit losses increased to $8.8 million as of March 31, 2025, compared to $8.1 million as of December 31, 2024[9]. - Non-accrual loans increased to $860,000, up from $264,000, indicating a rise in asset quality concerns[23]. Deposits and Assets - Total deposits grew by $31.1 million, or 4.2%, to $776.5 million at March 31, 2025, compared to $745.4 million at December 31, 2024[4]. - Total deposits rose to $746,004 thousand, a significant increase from $575,380 thousand, representing a growth of approximately 30%[29]. - Total assets decreased to $1,230,013,000 from $1,303,711,000[26]. - Total interest-earning assets decreased to $1,208,984 thousand for the three months ended March 31, 2025, compared to $1,328,416 thousand for the same period in 2024, reflecting a decline of approximately 9%[29]. Expenses and Equity - Total non-interest expense rose by $444 thousand, or 5.7%, to $8.3 million in Q1 2025, mainly due to a $1.0 million increase in compensation and benefits expense[10]. - Stockholders' equity was $286.0 million, or 23.3% of total assets, at March 31, 2025, compared to $285.2 million, or 21.9% of total assets, at December 31, 2024[16]. - Stockholders' equity increased to $286,645 thousand, up from $281,662 thousand, showing a modest growth[29]. - The equity to total assets ratio improved to 23.27% from 21.87%[23]. - Capital ratios remain strong with a Community Bank Leverage Ratio of 15.36% at March 31, 2025, compared to 13.96% at December 31, 2024[4]. Borrowings and Liabilities - Total borrowings decreased by $103.4 million to $158.8 million at March 31, 2025, primarily due to a $117.5 million decrease in FHLB advances[15]. - Total liabilities decreased to $943,809,000 from $1,018,335,000[26]. Future Outlook - The company did not report any new product launches or significant market expansions during this period[29]. - Future outlook remains cautious due to market conditions, with no specific guidance provided for upcoming quarters[29].
Broadway Financial (BYFC) - 2025 Q1 - Quarterly Results