Broadway Financial (US:BYFC) Prnewswireยท2025-01-27 13:30Core Insights - Broadway Financial Corporation reported a net income of $1.3 million for Q4 2024, down from $2.6 million in Q4 2023, reflecting a decrease of $1.3 million [1][3] - The company experienced a significant decline in net income attributable to common stockholders, which was $550 thousand in Q4 2024 compared to $2.6 million in Q4 2023 [1][3] - The diluted earnings per common share decreased to $0.06 in Q4 2024 from $0.31 in Q4 2023, influenced by a grant income of $3.7 million received in the previous year [1][3] Financial Performance - Net interest income for Q4 2024 increased by $850 thousand, or 11.9%, to $8.0 million compared to $7.1 million in Q4 2023, driven by higher interest income [2][7] - Total interest income rose by $3.1 million, or 24.9%, in Q4 2024 compared to Q4 2023, with a yield on average interest-earning assets increasing by 55 basis points to 4.78% [8][10] - For the full year 2024, net interest income before provision for credit losses totaled $31.8 million, an increase of $2.3 million, or 7.8%, from $29.5 million in 2023 [10] Non-Interest Income and Expenses - Non-interest income for Q4 2024 was $560 thousand, a significant drop from $4.5 million in Q4 2023, primarily due to the absence of the prior year's grant [13] - Total non-interest expense decreased to $7.2 million in Q4 2024 from $7.7 million in Q4 2023, mainly due to reduced professional services expenses [14] - For the year ended December 31, 2024, non-interest expense totaled $29.9 million, an increase of $2.5 million, or 9.3%, from $27.4 million in 2023 [15] Balance Sheet Highlights - Total assets decreased by $71.7 million to $1.3 billion as of December 31, 2024, primarily due to declines in securities available-for-sale and cash equivalents [19] - Loans held for investment increased by $88.4 million to $968.9 million at December 31, 2024, driven by loan originations of $157.7 million [20] - Deposits rose by $62.8 million to $745.4 million at December 31, 2024, with significant growth in Insured Cash Sweep and Certificate of Deposit Registry Service deposits [22] Credit Quality and Allowance for Credit Losses - The allowance for credit losses increased to $8.1 million as of December 31, 2024, compared to $7.3 million a year earlier, reflecting growth in the loan portfolio [12] - The company recorded a recovery of credit losses of $489 thousand in Q4 2024, contrasting with a provision for credit losses of $125 thousand in Q4 2023 [11] Income Taxes - The income tax expense for Q4 2024 was $516 thousand, down from $1.2 million in Q4 2023, reflecting a decrease in pre-tax income [16] - For the year ended December 31, 2024, income tax expense was $814 thousand, compared to $2.0 million in 2023, due to a decrease in pretax earnings [17]