Fri, May 24, 8:48 PM (421 days ago)
Broadway Financial Corporation's Q1 2024 10-Q report reveals a mixed performance. Total assets decreased by $4.9 million to $1.37 billion, primarily due to a significant reduction in cash and cash equivalents ($38.1 million) and securities available-for-sale ($23.7 million), offset by a $46 million growth in loans receivable. Total liabilities also decreased by $4.3 million, driven by reductions in notes payable and securities sold under agreements to repurchase, partially offset by a $12.9 million increase in deposits. Net interest income fell by 9.1% to $7.5 million, attributed to higher interest expenses from increased borrowing costs and a rise in average interest-earning liabilities. The net interest margin contracted to 2.27% from 2.96% a year ago. Non-interest expense rose by $1.6 million due to higher professional services and compensation costs. The company reported a net loss of $162 thousand, down from a net income of $1.6 million in Q1 2023. The allowance for credit losses increased to $7.6 million, reflecting portfolio growth. Non-performing loans stood at $401 thousand. Despite the challenges, the company maintained strong capital ratios, with a Community Bank Leverage Ratio of 13.65%. Future liquidity appears stable with adequate funding sources and capital reserves.