Broadway Financial (US:BYFC) Prnewswire·2025-07-29 23:30Core Viewpoint - Broadway Financial Corporation reported revised financial results for the first quarter of 2025, indicating a significant net loss compared to the previous year, primarily due to operational challenges and increased expenses related to fraud and credit losses [1][2][4]. Financial Performance - The company reported a consolidated net loss before preferred dividends of $1.9 million, or ($0.21) per diluted share, for Q1 2025, compared to a net loss of $164 thousand, or ($0.02) per diluted share, for Q1 2024 [2]. - Net loss attributable to common stockholders was $2.6 million in Q1 2025 after deducting preferred dividends of $750 thousand, compared to a net loss of $164 thousand in Q1 2024 [2]. - The diluted loss per common share was ($0.30) for Q1 2025, compared to ($0.02) for Q1 2024 [2]. Income and Expenses - Net interest income increased by $521 thousand, or 6.9%, to $8.0 million in Q1 2025 compared to Q1 2024, driven by lower interest expenses on borrowings and increased interest and fees on loans [3][5]. - Non-interest expenses rose by $2.4 million, or 30.6%, to $10.2 million in Q1 2025, primarily due to a $1.9 million loss from wire fraud and increased compensation and benefits expenses [11]. - The provision for credit losses increased to $689 thousand in Q1 2025 from $260 thousand in Q1 2024, mainly due to one new non-accrual loan [8]. Deposits and Borrowings - 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 [14]. - Total borrowings decreased by $93.9 million to $168.2 million at March 31, 2025, primarily due to a reduction in FHLB advances [15]. Capital and Asset Quality - Stockholders' equity was $284.6 million, or 23.0% of total assets, at March 31, 2025, compared to $285.2 million, or 21.9% of total assets, at December 31, 2024 [16]. - The company maintained strong capital ratios, with a Community Bank Leverage Ratio of 15.24% at March 31, 2025, up from 13.96% at December 31, 2024 [9][16]. - Non-accrual loans to total loans stood at 0.09%, and non-performing loans to total assets were at 0.07% as of March 31, 2025, indicating strong credit quality despite the addition of non-accrual loans [10][9]. Strategic Initiatives - The company executed an ECIP Securities Purchase Option Agreement with the U.S. Treasury, allowing for the potential repurchase of Series C Preferred Stock at a favorable price upon meeting certain conditions [4]. - The CEO expressed optimism about the company's ability to achieve strategic goals and improve profitability while serving low-to-moderate income communities [4].